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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT (No. 002-73133)
UNDER THE SECURITIES ACT OF 1933
[X]
Pre-Effective Amendment No.
[ ]
Post-Effective Amendment No. 83
[X]
and
REGISTRATION STATEMENT (No. 811-03221)
UNDER THE INVESTMENT COMPANY ACT OF 1940
[X]
Amendment No. 83
[X]
Fidelity Charles Street Trust
(Exact Name of Registrant as Specified in Charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address Of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number: 617-563-7000
Eric D. Roiter, Secretary
82 Devonshire Street
Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
( )
immediately upon filing pursuant to paragraph (b).
(X)
on (June 29, 2007) pursuant to paragraph (b) at 5:30 p.m. Eastern Time.
( )
60 days after filing pursuant to paragraph (a)(1) at 5:30 p.m. Eastern Time.
( )
on ( ) pursuant to paragraph (a)(1) of Rule 485 at 5:30 p.m. Eastern
Time.
( )
75 days after filing pursuant to paragraph (a)(2) at 5:30 p.m. Eastern Time.
( )
on ( ) pursuant to paragraph (a)(2) of Rule 485 at 5:30 p.m. Eastern Time.
If appropriate, check the following box:
( )
this post-effective amendment designates a new effective date for a previously
filed post-effective amendment.
Like securities of all mutual
funds, these securities have
not been approved or
disapproved by the
Securities and Exchange
Commission, and the
Securities and Exchange
Commission has not
determined if this prospectus
is accurate or complete. Any
representation to the
contrary is a criminal
offense.
Fidelity Advisor
Asset ManagerSM70%
<R>(formerly Fidelity® Advisor Asset Allocation Fund)</R>
<R>Class A</R>
<R>(Fund 726)</R>
<R>Class T</R>
<R>(Fund 730)</R>
<R>Class B</R>
<R>(Fund 727)</R>
<R>Class C</R>
<R>(Fund 728)</R>
Prospectus
<R>June 29, 2007</R>
(fidelity_logo_graphic)
82 Devonshire Street, Boston, MA 02109
Fund Summary |
Investment Summary |
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Performance |
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Fee Table |
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Fund Basics |
Investment Details |
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Valuing Shares |
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Shareholder Information |
Buying and Selling Shares |
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Exchanging Shares |
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Account Features and Policies |
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Dividends and Capital Gain Distributions |
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Tax Consequences |
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Fund Services |
Fund Management |
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Fund Distribution |
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Appendix |
Financial Highlights |
Prospectus
Investment Objective
Advisor Asset Manager 70% seeks to maximize total return over the long-term by allocating its assets among stocks, bonds, short-term instruments, and other investments.
Principal Investment Strategies
Principal Investment Risks
An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money.
Prospectus
Fund Summary - continued
The following information is intended to help you understand the risks of investing in the fund. The information illustrates the changes in the fund's performance from year to year, as represented by the performance of Class T, and compares each class's performance to the performance of a market index over various periods of time. Each class of the fund also compares its performance to the performance of a combination of market indexes over various periods of time. Returns (before and after taxes) are based on past results and are not an indication of future performance.
The returns in the chart do not include the effect of Class T's front-end sales charge. If the effect of the sales charge were reflected, returns would be lower than those shown.
<R>Advisor Asset Manager 70% - Class T</R> |
||||||||||
<R>Calendar Years</R> |
|
|
<R>1999</R> |
<R>2000</R> |
<R>2001</R> |
<R>2002</R> |
<R>2003</R> |
<R>2004</R> |
<R>2005</R> |
<R>2006</R> |
|
|
|
<R>16.22%</R> |
<R>-2.87%</R> |
<R>-9.57%</R> |
<R>-14.88%</R> |
<R>24.55%</R> |
<R>11.54%</R> |
<R>9.68%</R> |
<R>10.15%</R> |
<R>
</R>
<R>During the periods shown in the chart for Class T of Advisor Asset Manager 70%:</R> |
<R>Returns</R> |
<R>Quarter ended</R> |
<R>Highest Quarter Return</R> |
<R> 14.40%</R> |
<R>December 31, 1999</R> |
<R>Lowest Quarter Return</R> |
<R> -13.81%</R> |
<R>September 30, 2001</R> |
<R>Year-to-Date Return</R> |
<R> 2.07%</R> |
<R>March 31, 2007</R> |
Average Annual Returns
The returns in the following table include the effect of Class A's and Class T's maximum applicable front-end sales charge and Class B's and Class C's contingent deferred sales charge (CDSC). After-tax returns are calculated using the historical highest individual federal marginal income tax rates, but do not reflect the impact of state or local taxes. After-tax returns for Class T are shown in the table below and after-tax returns for other classes will vary. Return After Taxes on Distributions and Sale of Fund Shares may be higher than other returns for the same period due to a tax benefit of realizing a capital loss upon the sale of fund shares. Actual after-tax returns may differ depending on your individual circumstances. The after-tax returns shown are not relevant if you hold your shares in a retirement account or in another tax-deferred arrangement.
Prospectus
<R>For the periods ended |
<R>Past 1 |
<R>Past 5 |
<R>Life of |
<R>Advisor Asset Manager 70%</R> |
|
|
|
<R>Class A - Return Before Taxes</R> |
<R> 4.07%</R> |
<R> 6.42%</R> |
<R> 4.43%</R> |
<R>Class T - Return Before Taxes</R> |
<R> 6.30%</R> |
<R> 6.63%</R> |
<R> 4.45%</R> |
<R> Return After Taxes on Distributions</R> |
<R> 4.88%</R> |
<R> 5.94%</R> |
<R> 3.85%</R> |
<R> Return After Taxes on Distributions and Sale of Fund Shares</R> |
<R> 4.58%</R> |
<R> 5.50%</R> |
<R> 3.59%</R> |
<R>Class B - Return Before Taxes</R> |
<R> 4.58%</R> |
<R> 6.53%</R> |
<R> 4.49%B</R> |
<R>Class C - Return Before Taxes</R> |
<R> 8.55%</R> |
<R> 6.86%</R> |
<R> 4.41%</R> |
<R>S&P 500® (reflects no deduction for fees, expenses, or taxes)</R> |
<R> 15.79%</R> |
<R> 6.19%</R> |
<R> 3.46%</R> |
<R>Fidelity Asset Manager 70% Composite Index |
<R> 12.05%</R> |
<R> 5.88%</R> |
<R> 4.21%</R> |
A From December 28, 1998.
B Returns reflect the conversion of Class B shares to Class A shares after a maximum of seven years.
Standard & Poor's 500SM Index (S&P 500®) is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Fidelity Asset Manager 70% Composite Index is a hypothetical representation of the performance of the fund's three asset classes according to their respective weightings in the fund's neutral mix (70% stocks, 25% bonds, and 5% short-term/money market instruments). The following indexes are used to represent the fund's asset classes when calculating the composite index: stocks - a combination of the Dow Jones Wilshire 5000 Composite IndexSM (Dow Jones Wilshire 5000) (60%) and the Morgan Stanley Capital InternationalSM Europe, Australasia, Far East (MSCI® EAFE®) Index (10%), bonds - the Lehman Brothers® U.S. Aggregate Index, and short-term/money market instruments - the Lehman Brothers 3-Month Treasury Bill Index. Prior to July 1, 2006, the S&P 500 was used for the stock class.
Dow Jones Wilshire 5000 is a float-adjusted market capitalization-weighted index of substantially all equity securities of U.S. headquartered companies with readily available price data.
MSCI EAFE Index is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of developed stock markets outside the United States and Canada and excludes certain market segments unavailable to U.S. based investors. Index returns for periods after January 1, 1997 are adjusted for tax withholding rates applicable to U.S. based mutual funds organized as Massachusetts business trusts.
Lehman Brothers U.S. Aggregate Index is a market value-weighted index of taxable investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. The index is designed to represent the performance of the U.S. investment-grade fixed-rate bond market.
Prospectus
Fund Summary - continued
Lehman Brothers 3-Month Treasury Bill Index is a market value-weighted index of investment-grade fixed-rate public obligations of the U.S. Treasury with maturities of 3 months. It excludes zero coupon strips.
The following table describes the fees and expenses that are incurred when you buy, hold, or sell Class A, Class T, Class B, or Class C shares of the fund. The annual class operating expenses provided below for Class B do not reflect the effect of any voluntary expense reimbursements or reduction of certain expenses during the period. The annual class operating expenses provided below for Class A, Class T, and Class C do not reflect the effect of any reduction of certain expenses during the period.
Shareholder fees (paid by the investor directly)
|
<R>Class A</R> |
|
<R>Class T</R> |
|
<R>Class B</R> |
|
<R>Class C</R> |
<R>Maximum sales charge (load) on purchases (as a % of offering price)A</R> |
<R>5.75%B</R> |
|
<R>3.50%C</R> |
|
<R>None</R> |
|
<R>None</R> |
<R>Maximum contingent deferred sales charge (as a % of the lesser of |
<R>NoneF</R> |
|
<R>NoneG</R> |
|
<R>5.00%H</R> |
|
<R>1.00%I</R> |
<R>Sales charge (load) on reinvested distributions</R> |
<R>None</R> |
|
<R>None</R> |
|
<R>None</R> |
|
<R>None</R> |
A The actual sales charge may be higher due to rounding.
B Lower front-end sales charges for Class A may be available with purchase of $50,000 or more.
C Lower front-end sales charges for Class T may be available with purchase of $50,000 or more.
D The actual contingent deferred sales charge may be higher due to rounding.
E A contingent deferred sales charge may be charged when you sell your shares or if your shares are redeemed because your account falls below the account minimum for any reason, including solely due to declines in net asset value per share.
F Class A purchases of $1 million or more will not be subject to a front-end sales charge but may be subject, upon redemption, to a contingent deferred sales charge that declines over 2 years from 1.00% to 0%.
G Class T purchases of $1 million or more will not be subject to a front-end sales charge but may be subject, upon redemption, to a contingent deferred sales charge of 0.25% if redeemed less than one year after purchase.
H Declines over 6 years from 5.00% to 0%.
I On Class C shares redeemed less than one year after purchase.
Prospectus
Annual operating expenses (paid from class assets)
|
<R>Class A</R> |
|
<R>Class T</R> |
|
<R>Class B</R> |
|
<R>Class C</R> |
<R>Management fee</R> |
<R>0.57%</R> |
|
<R>0.57%</R> |
|
<R>0.57%</R> |
|
<R>0.57%</R> |
<R>Distribution and/or Service (12b-1) fees</R> |
<R>0.25%</R> |
|
<R>0.50%</R> |
|
<R>1.00%</R> |
|
<R>1.00%</R> |
<R>Other expenses</R> |
<R>0.42%</R> |
|
<R>0.43%</R> |
|
<R>0.48%</R> |
|
<R>0.41%</R> |
<R>Total annual class operating expensesA</R> |
<R>1.24%</R> |
|
<R>1.50%</R> |
|
<R>2.05%</R> |
|
<R>1.98%</R> |
A FMR has voluntarily agreed to reimburse Class A, Class T, Class B, and Class C of the fund to the extent that total operating expenses (excluding interest, taxes, certain securities lending costs, brokerage commissions, and extraordinary expenses), as a percentage of their respective average net assets, exceed the following rates:
|
<R>Class A</R> |
<R>Effective |
<R>Class T</R> |
<R>Effective |
<R>Class B</R> |
<R>Effective |
<R>Class C</R> |
<R>Effective |
<R>Advisor Asset Manager 70%</R> |
<R>1.25%</R> |
<R>2/1/05</R> |
<R>1.50%</R> |
<R>2/1/05</R> |
<R>2.00%</R> |
<R>2/1/05</R> |
<R>2.00%</R> |
<R>2/1/05</R> |
These arrangements may be discontinued by FMR at any time.
This example helps you compare the cost of investing in the fund with the cost of investing in other mutual funds.
Let's say, hypothetically, that each class's annual return is 5% and that your shareholder fees and each class's annual operating expenses are exactly as described in the fee table. This example illustrates the effect of fees and expenses, but is not meant to suggest actual or expected fees and expenses or returns, all of which may vary. For every $10,000 you invested, here's how much you would pay in total expenses if you sell all of your shares at the end of each time period indicated and if you hold your shares:
|
<R>Class A</R> |
<R>Class T</R> |
<R>Class B</R> |
<R>Class C</R> |
||||
|
<R>Sell All |
<R>Hold |
<R>Sell All |
<R>Hold |
<R>Sell All |
<R>Hold |
<R>Sell All |
<R>Hold |
<R>1 year</R> |
<R>$ 694</R> |
<R>$ 694</R> |
<R>$ 497</R> |
<R>$ 497</R> |
<R>$ 708</R> |
<R>$ 208</R> |
<R>$ 301</R> |
<R>$ 201</R> |
<R>3 years</R> |
<R>$ 946</R> |
<R>$ 946</R> |
<R>$ 807</R> |
<R>$ 807</R> |
<R>$ 943</R> |
<R>$ 643</R> |
<R>$ 621</R> |
<R>$ 621</R> |
<R>5 years</R> |
<R>$ 1,217</R> |
<R>$ 1,217</R> |
<R>$ 1,140</R> |
<R>$ 1,140</R> |
<R>$ 1,303</R> |
<R>$ 1,103</R> |
<R>$ 1,068</R> |
<R>$ 1,068</R> |
<R>10 years</R> |
<R>$ 1,989</R> |
<R>$ 1,989</R> |
<R>$ 2,078</R> |
<R>$ 2,078</R> |
<R>$ 2,074A</R> |
<R>$ 2,074A</R> |
<R>$ 2,306</R> |
<R>$ 2,306</R> |
A Reflects conversion to Class A shares after a maximum of seven years.
Prospectus
Investment Objective
Advisor Asset Manager 70% seeks to maximize total return over the long-term by allocating its assets among stocks, bonds, short-term instruments, and other investments.
Principal Investment Strategies
The fund organizes its investments into three main asset classes: the stock class (equity securities of all types), the bond class (fixed-income securities maturing in more than one year), and the short-term/money market class (fixed-income securities maturing in one year or less). The fund's neutral mix is 70% stock class, 25% bond class, and 5% short-term/money market class.
Fidelity Management & Research Company (FMR) can overweight or underweight each asset class within the following ranges:
In managing the fund, FMR seeks to outperform the following composite benchmark, which is designed to represent the neutral mix:
The fund's portfolio manager allocates the fund's assets across asset classes. The portfolio manager generally uses other Fidelity managers to handle investments within each asset class, either through subportfolios, which are portions of the fund's assets assigned to other managers by the fund's portfolio manager, or through central funds, which are specialized Fidelity investment vehicles designed to be used by Fidelity funds.
FMR will not try to pinpoint the precise moment when a major reallocation should be made. Instead, FMR regularly reviews the fund's allocation and makes changes gradually to favor investments that it believes will provide the most favorable outlook for achieving the fund's objective.
Stock Class. The fund invests in stocks mainly by investing in Fidelity sector central funds. Each sector central fund is managed in an effort to outperform a different sector of the U.S. stock market. At present, these sectors include consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecom services and utilities. The fund invests in all of the sector central funds in combination in an effort to outperform the U.S. market as a whole.
In addition to the sector central funds, the fund may invest a portion of its assets in one or more international stock subportfolios managed in an effort to outperform foreign stock markets. The portfolio manager decides how much to allocate to the international subportfolios based mainly on the allocation to foreign stocks in the fund's composite benchmark.
Prospectus
Fund Basics - continued
The sector central funds are managed against U.S. benchmarks, but are not limited to U.S. stocks, and the sector fund managers have discretion to make foreign investments. As a result, the fund's total allocation to foreign stocks could be substantially higher than the fund's composite benchmark might suggest.
Bond Class. Most of the bond class is invested using central funds, each of which focuses on a particular type of fixed-income securities. At present, these include Tactical Income Central Fund (investment-grade bonds), High Income Central Fund 1 (high-yield securities), and Floating Rate Central Fund (floating rate loans and other floating rate securities). The fund may also buy other types of bonds or central funds focusing on other types of bonds.
Short-Term/Money Market Class. Investments in this class may include Money Market Central Fund, which invests in money market instruments, and Ultra-Short Central Fund, which invests in U.S. dollar-denominated money market and investment-grade debt securities and repurchase agreements.
The fund can invest in all types of stocks, bonds, and derivatives, directly or through central funds, and may make investments that do not fall into any of the three asset classes discussed above. The portfolio manager may also use derivatives to manage asset allocation: for example, by buying stock index futures to increase the fund's allocation to stocks.
Although the underlying Fidelity central funds are categorized generally as stock, bond (investment-grade or high yield), and short-term/money market funds, many of the underlying Fidelity central funds may invest in a mix of securities of foreign and domestic issuers, investment-grade and high yield bonds, and other securities.
In addition to the principal investment strategies discussed above, FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund.
If FMR's strategies do not work as intended, the fund may not achieve its objective.
Description of Principal Security Types
Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy of the issuer. Equity securities include common stocks, preferred stocks, convertible securities, and warrants.
Debt securities are used by issuers to borrow money. The issuer usually pays a fixed, variable, or floating rate of interest, and must repay the amount borrowed, usually at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay current interest but are sold at a discount from their face values. Debt securities include corporate bonds, government securities, repurchase agreements, mortgage and other asset-backed securities, and other securities that FMR believes have debt-like characteristics, including hybrids and synthetic securities.
Prospectus
Money market securities are high-quality, short-term securities that pay a fixed, variable, or floating interest rate. Securities are often specifically structured so that they are eligible investments for a money market fund. For example, in order to satisfy the maturity restrictions for a money market fund, some money market securities have demand or put features, which have the effect of shortening the security's maturity. Money market securities include bank certificates of deposit, bankers' acceptances, bank time deposits, notes, commercial paper, and U.S. Government securities.
Central Funds are special types of investment vehicles created by Fidelity for use by the Fidelity funds and other advisory clients. Central funds incur certain costs related to their investment activity (such as custodial fees and expenses), but do not pay additional management fees to Fidelity. The investment results of the portions of the fund's assets invested in the central funds will be based upon the investment results of those funds.
Principal Investment Risks
Many factors affect the fund's performance. The fund's share price and yield change daily based on changes in market conditions and interest rates and in response to other economic, political, or financial developments. The fund's reaction to these developments will be affected by the types and maturities of securities in which the fund invests, the financial condition, industry and economic sector, and geographic location of an issuer, and the fund's level of investment in the securities of that issuer. When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money.
The following factors can significantly affect the fund's performance:
Stock Market Volatility. The value of equity securities fluctuates in response to issuer, political, market, and economic developments. In the short term, equity prices can fluctuate dramatically in response to these developments. Different parts of the market and different types of equity securities can react differently to these developments. For example, large cap stocks can react differently from small cap stocks, and "growth" stocks can react differently from "value" stocks. Issuer, political, or economic developments can affect a single issuer, issuers within an industry or economic sector or geographic region, or the market as a whole.
Interest Rate Changes. Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities and mortgage securities can be more sensitive to interest rate changes. In other words, the longer the maturity of a security, the greater the impact a change in interest rates could have on the security's price. In addition, short-term and long-term interest rates do not necessarily move in the same amount or the same direction. Short-term securities tend to react to changes in short-term interest rates, and long-term securities tend to react to changes in long-term interest rates.
Prospectus
Fund Basics - continued
Foreign Exposure. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial, and other operational risks; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently from the U.S. market.
Investing in emerging markets can involve risks in addition to and greater than those generally associated with investing in more developed foreign markets. The extent of economic development; political stability; market depth, infrastructure, and capitalization; and regulatory oversight can be less than in more developed markets. Emerging market economies can be subject to greater social, economic, regulatory, and political uncertainties. All of these factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.
Prepayment. Many types of debt securities, including mortgage securities, are subject to prepayment risk. Prepayment risk occurs when the issuer of a security can repay principal prior to the security's maturity. Securities subject to prepayment can offer less potential for gains during a declining interest rate environment and similar or greater potential for loss in a rising interest rate environment. In addition, the potential impact of prepayment features on the price of a debt security can be difficult to predict and result in greater volatility.
Issuer-Specific Changes. Changes in the financial condition of an issuer or counterparty, changes in specific economic or political conditions that affect a particular type of security or issuer, and changes in general economic or political conditions can affect a security's or instrument's credit quality or value. The value of securities of smaller, less well-known issuers can be more volatile than that of larger issuers. Lower-quality debt securities (those of less than investment-grade quality) and certain types of other securities tend to be particularly sensitive to these changes.
Lower-quality debt securities and certain types of other securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities and certain types of other securities often fluctuates in response to company, political, or economic developments and can decline significantly over short periods of time or during periods of general or regional economic difficulty. Derivatives can provide investment exposure greater than their cost. A small change in the underlying asset, instrument, or index can lead to a significant loss.
Prospectus
In response to market, economic, political, or other conditions, the fund or one or more underlying central funds may temporarily use a different investment strategy for defensive purposes. If FMR does so, different factors could affect the fund's performance and the fund may not achieve its investment objective.
Fundamental Investment Policies
The policy discussed below is fundamental, that is, subject to change only by shareholder approval.
Advisor Asset Manager 70% seeks to maximize total return over the long term by allocating its assets among stocks, bonds, short-term instruments, and other investments.
The fund is open for business each day the New York Stock Exchange (NYSE) is open.
A class's net asset value per share (NAV) is the value of a single share. Fidelity normally calculates each class's NAV as of the close of business of the NYSE, normally 4:00 p.m. Eastern time. However, NAV may be calculated earlier if trading on the NYSE is restricted or as permitted by the Securities and Exchange Commission (SEC). The fund's assets are valued as of this time for the purpose of computing each class's NAV.
To the extent that the fund's assets are traded in other markets on days when the fund is not open for business, the value of the fund's assets may be affected on those days. In addition, trading in some of a fund's assets may not occur on days when the fund is open for business.
The fund's assets are valued primarily on the basis of market quotations, official closing prices, or on the basis of information furnished by a pricing service. Certain short-term securities are valued on the basis of amortized cost. If market quotations, official closing prices, or information furnished by a pricing service is not readily available or does not accurately reflect fair value for a security or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security will be valued by another method that the Board of Trustees believes accurately reflects fair value in accordance with the Board's fair value pricing policies. For example, arbitrage opportunities may exist when trading in a portfolio security or securities is halted and does not resume before the fund calculates its NAV. These arbitrage opportunities may enable short-term traders to dilute the NAV of long-term investors. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio security values occur after the close of the overseas market but prior to the close of the U.S. market. Fair value pricing will be used for high yield debt and floating rate loans when available pricing information is determined to be stale or for other reasons not to accurately reflect fair value. To the extent the fund invests in other open-end funds, the fund will calculate its NAV using the NAV of the underlying funds in which it invests as described in the underlying funds' prospectuses. The fund may invest in other Fidelity funds that use the same fair value pricing policies as the fund or in Fidelity money market funds. A security's valuation may differ depending on the method used for determining value. Fair valuation of a fund's portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there is no assurance that fair value pricing policies will prevent dilution of the fund's NAV by short-term traders. While the fund has policies regarding excessive trading, these too may not be effective to prevent short-term NAV arbitrage trading, particularly in regard to omnibus accounts.
Prospectus
General Information
For account, product, and service information, please call 1-877-208-0098 (8:30 a.m. - 7:00 p.m. Eastern time, Monday through Friday).
Please use the following addresses:
Buying or Selling Shares
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
Overnight Express
Fidelity Investments
100 Crosby Parkway
Covington, KY 41015
You may buy or sell Class A, Class T, Class B, and Class C shares of the fund through a retirement account or an investment professional. When you invest through a retirement account or an investment professional, the procedures for buying, selling, and exchanging Class A, Class T, Class B, and Class C shares of the fund and the account features and policies may differ. Additional fees may also apply to your investment in Class A, Class T, Class B, and Class C shares of the fund, including a transaction fee if you buy or sell Class A, Class T, Class B, and Class C shares of the fund through a broker or other investment professional.
Certain methods of contacting Fidelity, such as by telephone, may be unavailable or delayed (for example, during periods of unusual market activity).
The different ways to set up (register) your account with Fidelity are listed in the following table.
Ways to Set Up Your Account |
Individual or Joint Tenant For your general investment needs |
Retirement For tax-advantaged retirement savings |
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Gifts or Transfers to a Minor (UGMA, UTMA) To invest for a child's education or other future needs |
Trust For money being invested by a trust |
Business or Organization For investment needs of corporations, associations, partnerships, or other groups |
The fund may reject for any reason, or cancel as permitted or required by law, any purchase orders, including exchanges.
For example, the fund may reject any purchase orders, including exchanges, from market timers or investors that, in FMR's opinion, may be disruptive to the fund.
Prospectus
Shareholder Information - continued
Frequent purchases and sales of fund shares can harm shareholders in various ways, including reducing the returns to long-term shareholders by increasing costs to the fund (such as brokerage commissions), disrupting portfolio management strategies, and diluting the value of the shares of long-term shareholders in cases in which fluctuations in markets are not fully priced into the fund's NAV. Accordingly, the Board of Trustees has adopted policies and procedures designed to discourage excessive or short-term trading of fund shares. However, there is the risk that the fund's policies and procedures will prove ineffective in whole or in part to detect or prevent frequent trading. The fund may alter its policies at any time without prior notice to shareholders.
There is no minimum holding period and shareholders can sell their shares at any time. Shareholders will ordinarily comply with the fund's policies regarding excessive trading by allowing 90 days to pass after each investment before they sell or exchange from the fund. The fund may take action if shares are held longer than 90 days if the trading is disruptive for other reasons such as unusually large trade size. The fund reserves the right, but does not have the obligation, to reject any purchase or exchange transaction at any time. In addition, the fund reserves the right to impose restrictions on purchases or exchanges at any time or conditions that are more restrictive on disruptive, excessive, or short-term trading than those that are otherwise stated in this prospectus.
Excessive trading activity is measured by the number of roundtrip transactions in a shareholder's account. A roundtrip transaction occurs when a shareholder buys and then sells shares of a fund within 30 days. Shareholders are limited to two roundtrip transactions per fund within any rolling 90-day period, subject to an overall limit of four roundtrip transactions across all Fidelity funds over a rolling 12-month period. Roundtrip transactions are counted at the shareholder account level for this purpose and each class of a multiple class fund is treated separately. Transactions of $1,000 or less, systematic withdrawal and/or contribution programs, mandatory retirement distributions, and transactions initiated by a plan sponsor will not count toward the roundtrip limits. For employer-sponsored retirement plans, only participant directed exchanges will count toward the roundtrip limits.
Shareholders with two or more roundtrip transactions in a single fund within a rolling 90-day period will be blocked from making additional purchases or exchange purchases of the fund for 85 days. Shareholders with four or more roundtrip transactions across all Fidelity funds within any rolling 12-month period will be blocked for 85 days from additional purchases or exchange purchases across all Fidelity funds. Any roundtrip within 12 months of the expiration of a multi-fund block will initiate another multi-fund block for an 85-day period. For repeat offenders, FMR may, but does not have the obligation to, impose long-term or permanent blocks on purchase or exchange purchase transactions in any account under the shareholder's common control at any time, other than a participant's account held through an employer-sponsored retirement plan. Employer-sponsored retirement plan participants whose activity triggers a purchase or exchange block will be permitted one trade every calendar quarter. In the event of a block, employer and participant contributions and loan repayments by the participant may still be invested in the fund.
Prospectus
Qualified wrap programs will be monitored by matching the adviser's orders for purchase, exchange, or sale transactions in fund shares to determine if the adviser's orders comply with the fund's frequent trading policies. Additions to and withdrawals from a qualified wrap program by the adviser's client will not be matched with transactions initiated by the adviser. Therefore if the adviser buys shares of a fund and an individual client subsequently sells shares of the same fund within 30 days, the client's transaction is not matched with the adviser's and therefore does not count as a roundtrip. However, client initiated transactions are subject to the fund's policies on frequent trading and individual clients will be subject to restrictions due to their frequent trading in a wrap account. Excessive trading by an adviser will lead to fund blocks and the wrap program will cease to be a qualified wrap program. If the wrap program is blocked from making additional purchases or exchange purchases of a fund because of excessive trading by the adviser the wrap program will no longer be considered qualified and any transaction whether initiated by the adviser or the client will be matched when counting roundtrips. Wrap account client purchases and sale transactions will be monitored under the fund's monitoring policy as though the wrap clients were fund shareholders. A qualified wrap program is: (i) a program whose adviser certifies that it has investment discretion over $100 million or more in client assets invested in mutual funds at the time of the certification, (ii) a program in which the adviser directs transactions in the accounts participating in the program in concert with changes in a model portfolio, and (iii) managed by an adviser who agrees to give FMR sufficient information to permit FMR to identify the individual accounts in the wrap program.
The fund's excessive trade monitoring policy described above does not apply to transactions initiated by the trustee or adviser to a donor-advised charitable gift fund, qualified fund-of-fund(s) or other strategy funds, or omnibus accounts. Trustees or advisers of donor-advised charitable gift funds must certify to the fund's satisfaction that they either work from an asset allocation model or direct transactions in their accounts in concert with changes in a model portfolio and that participants are limited in their ability to influence investments by the trust. A qualified fund-of-fund(s) is a mutual fund, qualified tuition program, or other strategy fund consisting of qualified plan assets that either applies the Fidelity fund's policies on frequent trading to shareholders at the fund-of-fund(s) level, or demonstrates that the fund-of-fund(s) has policies designed to control frequent trading and that they are reasonably likely to be effective as determined by the Fidelity fund's Treasurer. The adviser to the fund-of-fund(s) must also demonstrate to the Fidelity fund's Treasurer that its investment strategy will not lead to excessive trading. Omnibus accounts are maintained by intermediaries acting on behalf of multiple investors whose individual trades are not ordinarily disclosed to the fund. Short-term trading by these investors is likely to go undetected by the fund and may increase costs and disrupt portfolio management. The fund will monitor aggregate trading in qualified fund-of-funds and known omnibus accounts to attempt to identify disruptive trades, focusing on transactions in excess of $250,000. There is no assurance that these policies will be effective, or will successfully detect or deter market timing.
Prospectus
Shareholder Information - continued
The fund's Treasurer is authorized to suspend the fund's policies during periods of severe market turbulence or national emergency.
The fund does not knowingly accommodate frequent purchases and redemptions of fund shares by investors, except as provided under the fund's policies with respect to known omnibus accounts, qualified fund-of-fund(s), qualified wrap accounts, donor-advised charitable gift funds, and 30 day roundtrips.
Buying Shares
The price to buy one share of Class A or Class T is the class's offering price or the class's NAV, depending on whether you pay a front-end sales charge.
For Class B or Class C, the price to buy one share is the class's NAV. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a CDSC upon redemption.
If you pay a front-end sales charge, your price will be Class A's or Class T's offering price. When you buy Class A or Class T shares at the offering price, Fidelity deducts the appropriate sales charge and invests the rest in Class A or Class T shares of the fund. If you qualify for a front-end sales charge waiver, your price will be Class A's or Class T's NAV.
The offering price of Class A or Class T is its NAV plus the sales charge. The offering price is calculated by dividing Class A's or Class T's NAV by the difference between one and the applicable front-end sales charge percentage and rounding to the nearest cent.
The dollar amount of the sales charge for Class A or Class T is the difference between the offering price of the shares purchased and the NAV of those shares. Since the offering price per share is calculated to the nearest cent using standard rounding criteria, the percentage sales charge you actually pay may be higher or lower than the sales charge percentages shown in this prospectus due to rounding. The impact of rounding may vary with the amount of your investment and the size of the class's NAV.
Your investment professional can help you choose the class of shares that best suits your investment needs.
Your shares will be bought at the next offering price or NAV, as applicable, calculated after your order is received in proper form.
It is the responsibility of your investment professional to transmit your order to buy shares to Fidelity before the close of business on the day you place your order.
Prospectus
<R>The fund has authorized certain intermediaries to accept orders to buy shares on its behalf. When authorized intermediaries receive an order in proper form, the order is considered as being placed with the fund, and shares will be bought at the next offering price or NAV, as applicable, calculated after the order is received by the authorized intermediary. Orders by funds of funds for which FMR or an affliliate serves as investment manager will be treated as received by the fund at the same time that the corresponding orders are received in proper form by the funds of funds.</R>
The fund may stop offering shares completely or may offer shares only on a limited basis, for a period of time or permanently.
When you place an order to buy shares, note the following:
Shares can be bought or sold through investment professionals using an automated order placement and settlement system that guarantees payment for orders on a specified date.
Certain financial institutions that meet creditworthiness criteria established by Fidelity Distributors Corporation (FDC) may enter confirmed purchase orders on behalf of customers by phone, with payment to follow no later than close of business on the next business day. If payment is not received by that time, the order will be canceled and the financial institution will be liable for any losses.
Minimums |
|
To Open an Account |
$2,500 |
For certain Fidelity Advisor retirement accountsA |
$500 |
Through regular investment plansB |
$100 |
To Add to an Account |
$100 |
Minimum Balance |
$1,000 |
For certain Fidelity Advisor retirement accountsA |
None |
A Fidelity Advisor Traditional IRA, Roth IRA, Rollover IRA, SEP-IRA, and Keogh accounts.
B An account may be opened with a minimum of $100, provided that a regular investment plan is established at the time the account is opened.
Prospectus
Shareholder Information - continued
There is no minimum account balance or initial or subsequent purchase minimum for (i) certain Fidelity retirement accounts funded through salary deduction, or accounts opened with the proceeds of distributions from such retirement accounts or (ii) certain mutual fund wrap program accounts. An eligible wrap program must offer asset allocation services, charge an asset-based fee to its participants for asset allocation and/or other advisory services, and meet trading and other operational requirements under an appropriate agreement with FDC. In addition, the fund may waive or lower purchase minimums in other circumstances.
Purchase and account minimums are waived for purchases of Class T shares with distributions from a Fidelity Defined Trust account.
Purchase amounts of more than $49,999 will not be accepted for Class B shares.
Key Information |
|
Phone |
To Open an Account
To Add to an Account
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Mail |
To Open an Account
To Add to an Account
|
In Person |
To Open an Account
To Add to an Account
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Wire |
To Open an Account
To Add to an Account
|
Automatically |
To Open an Account
To Add to an Account
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Selling Shares
The price to sell one share of Class A, Class T, Class B, or Class C is the class's NAV, minus any applicable CDSC.
If appropriate to protect shareholders, the fund may impose a redemption fee on redemptions from the fund.
Any applicable CDSC is calculated based on your original redemption amount.
Your shares will be sold at the next NAV calculated after your order is received in proper form, minus any applicable CDSC. Normally, redemptions will be processed by the next business day, but it may take up to seven days to pay the redemption proceeds if making immediate payment would adversely affect the fund.
It is the responsibility of your investment professional to transmit your order to sell shares to Fidelity before the close of business on the day you place your order.
<R>The fund has authorized certain intermediaries to accept orders to sell shares on its behalf. When authorized intermediaries receive an order in proper form, the order is considered as being placed with the fund, and shares will be sold at the next NAV calculated, minus any applicable CDSC, after the order is received by the authorized intermediary. Orders by funds of funds for which FMR or an affliliate serves as investment manager will be treated as received by the fund at the same time that the corresponding orders are received in proper form by the funds of funds.</R>
Certain requests must include a signature guarantee. It is designed to protect you and Fidelity from fraud. Your request must be made in writing and include a signature guarantee if any of the following situations apply:
Prospectus
Shareholder Information - continued
You should be able to obtain a signature guarantee from a bank, broker, dealer, credit union (if authorized under state law), securities exchange or association, clearing agency, or savings association. A notary public cannot provide a signature guarantee.
When you place an order to sell shares, note the following:
Key Information |
|
Phone |
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Mail |
Individual, Joint Tenant, Sole Proprietorship, UGMA, UTMA
Retirement Account
Trust
Business or Organization
Executor, Administrator, Conservator, Guardian
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In Person |
Individual, Joint Tenant, Sole Proprietorship, UGMA, UTMA
Retirement Account
Trust
Business or Organization
Executor, Administrator, Conservator, Guardian
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Automatically |
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An exchange involves the redemption of all or a portion of the shares of one fund and the purchase of shares of another fund.
As a Class A shareholder, you have the privilege of exchanging Class A shares of the fund for the same class of shares of other Fidelity funds that offer Advisor classes of shares at NAV or for Daily Money Class shares of Treasury Fund, Prime Fund, or Tax-Exempt Fund.
Prospectus
Shareholder Information - continued
As a Class T shareholder, you have the privilege of exchanging Class T shares of the fund for the same class of shares of other Fidelity funds that offer Advisor classes of shares at NAV or for Daily Money Class shares of Treasury Fund, Prime Fund, or Tax-Exempt Fund. If you purchased your Class T shares through certain investment professionals that have signed an agreement with FDC, you also have the privilege of exchanging your Class T shares for shares of Fidelity Capital Appreciation Fund.
As a Class B shareholder, you have the privilege of exchanging Class B shares of the fund for the same class of shares of other Fidelity funds that offer Advisor classes of shares or for Advisor B Class shares of Treasury Fund.
As a Class C shareholder, you have the privilege of exchanging Class C shares of the fund for the same class of shares of other Fidelity funds that offer Advisor classes of shares or for Advisor C Class shares of Treasury Fund.
However, you should note the following policies and restrictions governing exchanges:
The fund may terminate or modify the exchange privileges in the future.
Other funds may have different exchange restrictions and minimums, and may impose redemption fees of up to 2.00% of the amount exchanged. Check each fund's prospectus for details.
Prospectus
Features
The following features are available to buy and sell shares of the fund.
<R>Automatic Investment and Withdrawal Programs. Fidelity offers convenient services that let you automatically transfer money into your account, between accounts, or out of your account. While automatic investment programs do not guarantee a profit and will not protect you against loss in a declining market, they can be an excellent way to invest for retirement, a home, educational expenses, and other long-term financial goals. Automatic withdrawal or exchange programs can be a convenient way to provide a consistent income flow or to move money between your investments.</R>
Fidelity Advisor Systematic Investment Program |
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Minimum $100 |
Minimum $100 |
Frequency Monthly, bimonthly, quarterly, |
Procedures
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To direct distributions from a Fidelity Defined Trust to Class T of a Fidelity fund that offers Advisor classes of shares. |
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Minimum Not Applicable |
Minimum Not Applicable |
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Procedures
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Fidelity Advisor Systematic Exchange Program |
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Minimum $100 |
Frequency Monthly, quarterly, |
Procedures
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<R>Fidelity Advisor Systematic Withdrawal Program |
<R>Minimum</R> <R>$100</R> |
<R>Maximum</R> <R>$50,000</R> |
<R>Frequency</R> <R>Class A and Class T: Monthly, quarterly, or semi-annually</R>
<R>Class B and Class C: Monthly or quarterly</R> |
<R>Procedures</R>
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Prospectus
Shareholder Information - continued
Other Features. The following other features are also available to buy and sell shares of the fund.
Wire |
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Fidelity Advisor Money Line |
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Policies
The following policies apply to you as a shareholder.
Statements and reports that Fidelity sends to you include the following:
To reduce expenses, only one copy of most financial reports and prospectuses may be mailed, even if more than one person in a household holds shares of the fund. Call Fidelity at 1-877-208-0098 if you need additional copies of financial reports or prospectuses. If you do not want the mailing of these documents to be combined with those for other members of your household, call Fidelity at 1-877-208-0098.
You may initiate many transactions by telephone or electronically. Fidelity will not be responsible for any loss, cost, expense, or other liability resulting from unauthorized transactions if it follows reasonable security procedures designed to verify the identity of the investor. Fidelity will request personalized security codes or other information, and may also record calls. For transactions conducted through the Internet, Fidelity recommends the use of an Internet browser with 128-bit encryption. You should verify the accuracy of your confirmation statements upon receipt and notify Fidelity immediately of any discrepancies in your account activity. If you do not want the ability to sell and exchange by telephone, call Fidelity for instructions. Additional documentation may be required from corporations, associations, and certain fiduciaries.
Prospectus
When you sign your account application, you will be asked to certify that your social security or taxpayer identification number (TIN) is correct and that you are not subject to backup withholding for failing to report income to the IRS. If you violate IRS regulations, the IRS can require the fund to withhold an amount subject to the applicable backup withholding rate from your taxable distributions and redemptions.
You may also be asked to provide additional information in order for Fidelity to verify your identity in accordance with requirements under anti-money laundering regulations. Accounts may be restricted and/or closed, and the monies withheld, pending verification of this information or as otherwise required under these and other federal regulations.
If your account balance falls below $1,000 for any reason, including solely due to declines in NAV, you will be given 30 days' notice to reestablish the minimum balance. If you do not increase your balance, Fidelity may close your account and send the proceeds to you. Your shares will be sold at the NAV, minus any applicable CDSC, on the day your account is closed. Accounts not subject to account minimums will not be closed for failure to maintain a minimum balance.
Fidelity may charge a fee for certain services, such as providing historical account documents.
The fund earns dividends, interest, and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. The fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions.
The fund normally pays dividends in April, July, October, and December and pays capital gain distributions in December and January. Beginning in 2007, the fund normally pays capital gain distributions in December.
Distribution Options
When you open an account, specify on your application how you want to receive your distributions. The following distribution options are available for each class:
1. Reinvestment Option. Your dividends and capital gain distributions will be automatically reinvested in additional shares of the same class of the fund. If you do not indicate a choice on your application, you will be assigned this option.
Prospectus
Shareholder Information - continued
2. Income-Earned Option. Your capital gain distributions will be automatically reinvested in additional shares of the same class of the fund. Your dividends will be paid in cash.
3. Cash Option. Your dividends and capital gain distributions will be paid in cash.
4. Directed Dividends® Option. Your dividends will be automatically invested in the same class of shares of another identically registered Fidelity fund that offers Advisor classes of shares or shares of certain identically registered Fidelity funds. Your capital gain distributions will be automatically invested in the same class of shares of another identically registered Fidelity fund that offers Advisor classes of shares or shares of certain identically registered Fidelity funds, automatically reinvested in additional shares of the same class of the fund, or paid in cash.
Not all distribution options are available for every account. If the option you prefer is not listed on your account application, or if you want to change your current option, contact your investment professional directly or call Fidelity.
If you elect to receive distributions paid in cash by check and the U.S. Postal Service does not deliver your checks, your distribution option may be converted to the Reinvestment Option. You will not receive interest on amounts represented by uncashed distribution checks.
As with any investment, your investment in the fund could have tax consequences for you. If you are not investing through a tax-advantaged retirement account, you should consider these tax consequences.
Taxes on distributions. Distributions you receive from the fund are subject to federal income tax, and may also be subject to state or local taxes.
For federal tax purposes, certain of the fund's distributions, including dividends and distributions of short-term capital gains, are taxable to you as ordinary income, while certain of the fund's distributions, including distributions of long-term capital gains, are taxable to you generally as capital gains. A percentage of certain distributions of dividends may qualify for taxation at long-term capital gains rates (provided certain holding period requirements are met).
<R>If you buy shares when a fund has realized but not yet distributed income or capital gains, you will be "buying a dividend" by paying the full price for the shares and then receiving a portion of the price back in the form of a taxable distribution.</R>
<R>Any taxable distributions you receive from the fund will normally be taxable to you when you receive them, regardless of your distribution option.</R>
<R>Taxes on transactions. Your redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment in the fund generally is the difference between the cost of your shares and the price you receive when you sell them. </R>
Prospectus
The fund is a mutual fund, an investment that pools shareholders' money and invests it toward a specified goal.
FMR is the fund's manager. The address of FMR and its affiliates, unless otherwise indicated below, is 82 Devonshire Street, Boston, Massachusetts 02109.
<R>As of December 31, 2006, FMR had approximately $1.6 billion in discretionary assets under management.</R>
As the manager, FMR has overall responsibility for directing the fund's investments and handling its business affairs.
Fidelity Investments Money Management, Inc. (FIMM), at One Spartan Way, Merrimack, New Hampshire 03054, serves as a sub-adviser for the fund. FIMM may provide investment advisory services for the fund.
<R>FIMM is an affiliate of FMR. As of December 31, 2006, FIMM had approximately $370.3 billion in discretionary assets under management.</R>
FMR Co., Inc. (FMRC) serves as a sub-adviser for the fund. FMRC has day-to-day responsibility for choosing investments for the fund.
<R>FMRC is an affiliate of FMR. As of December 31, 2006, FMRC had approximately $766.7 billion in discretionary assets under management.</R>
Fidelity Research & Analysis Company (FRAC), formerly known as Fidelity Management & Research (Far East) Inc., serves as a sub-adviser for the fund. FRAC, an affiliate of FMR, was organized in 1986 to provide investment research and advice on issuers based outside the United States and currently also provides investment research and advice on domestic issuers. FRAC may provide investment research and advice for the fund and may also provide investment advisory services for the fund.
Affiliates assist FMR with foreign investments:
Prospectus
Fund Services - continued
Dick Habermann is vice president and portfolio manager of Advisor Asset Manager 70%, which he has managed since December 1998. He also manages other Fidelity funds. Since joining Fidelity Investments in 1968, Mr. Habermann has held several positions including portfolio manager, director of research for FMRC, division head for international equities and director of international research, and chief investment officer for Fidelity International Limited (FIL).
The statement of additional information (SAI) provides additional information about the compensation of, any other accounts managed by, and any fund shares held by Mr. Habermann, as well as the managers of the central funds in which the fund is invested as of the date of this prospectus.
From time to time a manager, analyst, or other Fidelity employee may express views regarding a particular company, security, industry, or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
The fund pays a management fee to FMR. The management fee is calculated and paid to FMR every month. The fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve, and multiplying the result by the fund's average net assets throughout the month.
The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above 0.52%, and it drops as total assets under management increase.
<R>For September 2006, the group fee rate was 0.27%. The individual fund fee rate is 0.30%.</R>
<R>The total management fee for the fiscal period ended September 30, 2006, was 0.57% of the fund's average net assets.</R>
FMR pays FIMM, FMRC, and FMR U.K. for providing sub-advisory services. FMR and its affiliates pay FRAC for providing sub-advisory services. FMR pays FIIA for providing sub-advisory services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FRAC in turn pays FIJ for providing sub-advisory services.
<R>The basis for the Board of Trustees approving the management contract and sub-advisory agreements for the fund is available in the fund's annual report for the fiscal period ended September 30, 2006.</R>
Prospectus
FMR may, from time to time, agree to reimburse a class for management fees and other expenses above a specified limit. FMR retains the ability to be repaid by a class if expenses fall below the specified limit prior to the end of the fiscal year. Reimbursement arrangements, which may be discontinued by FMR at any time, can decrease a class's expenses and boost its performance.
The fund is composed of multiple classes of shares. All classes of the fund have a common investment objective and investment portfolio.
FDC distributes each class's shares.
Intermediaries, including banks, broker-dealers, and other service-providers, may receive from FMR, FDC, and/or their affiliates compensation for their services intended to result in the sale of class shares. This compensation may take the form of:
These payments are described in more detail on the following pages and in the SAI.
You may pay a sales charge when you buy or sell your Class A, Class T, Class B, or Class C shares.
FDC collects the sales charge.
As described in detail on the following pages, you may be entitled to a waiver of your sales charge, or to pay a reduced sales charge, when you buy or sell Class A, Class T, Class B, or Class C shares.
Prospectus
Fund Services - continued
The front-end sales charge will be reduced for purchases of Class A and Class T shares according to the sales charge schedules below.
Sales Charges and Concessions - Class A
|
Sales Charge |
|
|
|
As a % of |
As an |
Investment |
Up to $49,999B |
5.75% |
6.10% |
5.00% |
$50,000 to $99,999 |
4.50% |
4.71% |
3.75% |
$100,000 to $249,999 |
3.50% |
3.63% |
2.75% |
$250,000 to $499,999 |
2.50% |
2.56% |
2.00% |
$500,000 to $999,999 |
2.00% |
2.04% |
1.75% |
$1,000,000 to $3,999,999 |
None |
None |
1.00% |
$4,000,000 to $24,999,999 |
None |
None |
0.50% |
$25,000,000 or more |
None |
None |
0.25% |
A The actual sales charge you pay may be higher or lower than those calculated using these percentages due to rounding. The impact of rounding may vary with the amount of your investment and the size of the class's NAV.
B Purchases of $5.00 or less will not pay a sales charge.
Investments in Class A shares of $1 million or more may, upon redemption for any reason, including failure to maintain the account minimum, be assessed a CDSC based on the following schedule:
From Date |
Contingent Deferred |
Less than 1 year |
1.00% |
1 year to less than 2 years |
0.50% |
2 years or more |
0.00% |
A The actual sales charge you pay may be higher or lower than those calculated using these percentages due to rounding. The impact of rounding may vary with the amount of your investment and the size of the class's NAV.
When exchanging Class A shares of one fund for Class A shares of another Fidelity fund that offers Advisor classes of shares or Daily Money Class shares of Treasury Fund, Prime Fund, or Tax-Exempt Fund, your Class A shares retain the CDSC schedule in effect when they were originally bought.
Sales Charges and Concessions - Class T
|
Sales Charge |
|
|
|
As a % of |
As an |
Investment |
Up to $49,999 |
3.50% |
3.63% |
3.00% |
$50,000 to $99,999 |
3.00% |
3.09% |
2.50% |
$100,000 to $249,999 |
2.50% |
2.56% |
2.00% |
$250,000 to $499,999 |
1.50% |
1.52% |
1.25% |
$500,000 to $999,999 |
1.00% |
1.01% |
0.75% |
$1,000,000 or more |
None |
None |
0.25% |
A The actual sales charge you pay may be higher or lower than those calculated using these percentages due to rounding. The impact of rounding may vary with the amount of your investment and the size of the class's NAV.
Prospectus
Investments in Class T shares of $1 million or more may, upon redemption less than one year after purchase, for any reason, including failure to maintain the account minimum, be assessed a CDSC of 0.25%. The actual CDSC you pay may be higher or lower than that calculated using this percentage due to rounding. The impact of rounding may vary with the amount of your investment and the size of the class's NAV.
When exchanging Class T shares of one fund for Class T shares of another Fidelity fund that offers Advisor classes of shares or Daily Money Class shares of Treasury Fund, Prime Fund, or Tax-Exempt Fund, your Class T shares retain the CDSC schedule in effect when they were originally bought.
Class A or Class T shares purchased by an individual or company through the Combined Purchase, Rights of Accumulation, or Letter of Intent program may receive a reduced front-end sales charge according to the sales charge schedules above. To qualify for a Class A or Class T front-end sales charge reduction under one of these programs, you must notify Fidelity in advance of your purchase.
Combined Purchase, Rights of Accumulation, and Letter of Intent Programs. The following qualify as an "individual" or "company" for the purposes of determining eligibility for the Combined Purchase and Rights of Accumulation program: an individual, spouse, and their children under age 21 purchasing for his/her or their own account; a trustee, administrator, or other fiduciary purchasing for a single trust estate or a single fiduciary account or for a single or parent-subsidiary group of "employee benefit plans" (except SEP and SARSEP plans and plans covering self-employed individuals and their employees (formerly Keogh/H.R. 10 plans)) and 403(b) programs; and tax-exempt organizations (as defined in Section 501(c)(3) of the Internal Revenue Code). The following qualify as an "individual" or "company" for the purposes of determining eligibility for the Letter of Intent program: an individual, spouse, and their children under age 21 purchasing for his/her or their own account; a trustee, administrator, or other fiduciary purchasing for a single trust estate or a single fiduciary account (except SEP and SARSEP plans and plans covering self-employed individuals and their employees (formerly Keogh/H.R. 10 plans)); an IRA or plans covering sole-proprietors (formerly Keogh/H.R. 10 plans); plans investing through the Fidelity Advisor 403(b) program; and tax-exempt organizations (as defined in Section 501(c)(3) of the Internal Revenue Code).
Combined Purchase. To receive a Class A or Class T front-end sales charge reduction, if you are a new shareholder, you may combine your purchase of Class A or Class T shares with purchases of: (i) Class A, Class T, Class B, and Class C shares of any Fidelity fund that offers Advisor classes of shares, (ii) Advisor B Class shares and Advisor C Class shares of Treasury Fund, and (iii) Class A Units (New and Old), Class B Units (New and Old), Class C Units, Class D Units, and Class P Units of the Fidelity Advisor 529 Plan. For your purchases to be aggregated for the purpose of qualifying for the Combined Purchase program, they must be made on the same day through one intermediary.
Prospectus
Fund Services - continued
Rights of Accumulation. To receive a Class A or Class T front-end sales charge reduction, if you are an existing shareholder, you may add to your purchase of Class A or Class T shares the current value of your holdings in: (i) Class A, Class T, Class B, and Class C shares of any Fidelity fund that offers Advisor classes of shares, (ii) Advisor B Class shares and Advisor C Class shares of Treasury Fund, (iii) Daily Money Class shares of Treasury Fund, Prime Fund, or Tax-Exempt Fund acquired by exchange from any Fidelity fund that offers Advisor classes of shares, (iv) Class O shares of Advisor Diversified Stock Fund and Destiny II, and (v) Class A Units (New and Old), Class B Units (New and Old), Class C Units, Class D Units, and Class P Units of the Fidelity Advisor 529 Plan. The current value of your holdings is determined at the NAV at the close of business on the day prior to your purchase of Class A or Class T shares. The current value of your holdings will be added to your purchase of Class A or Class T shares for the purpose of qualifying for the Rights of Accumulation program. For your purchases and holdings to be aggregated for the purpose of qualifying for the Rights of Accumulation program, they must have been made through one intermediary.
Letter of Intent. You may receive a Class A or Class T front-end sales charge reduction on your purchases of Class A and Class T shares made during a 13-month period by signing a Letter of Intent (Letter). You must file your Letter with Fidelity within 90 days of the start of your purchases toward completing your Letter. Each Class A or Class T purchase you make toward completing your Letter will be entitled to the reduced front-end sales charge applicable to the total investment indicated in the Letter. Purchases of the following may be aggregated for the purpose of completing your Letter: (i) Class A and Class T shares of any Fidelity fund that offers Advisor classes of shares (except those acquired by exchange from Daily Money Class shares of Treasury Fund, Prime Fund, or Tax-Exempt Fund that had been previously exchanged from a Fidelity fund that offers Advisor classes of shares), (ii) Class B and Class C shares of any Fidelity fund that offers Advisor classes of shares, (iii) Advisor B Class shares and Advisor C Class shares of Treasury Fund, and (iv) Class A Units (New and Old), Class B Units (New and Old), Class C Units, Class D Units, and Class P Units of the Fidelity Advisor 529 Plan. Reinvested income and capital gain distributions will not be considered purchases for the purpose of completing your Letter. For your purchases to be aggregated for the purpose of completing your Letter, they must be made through one intermediary. Your initial purchase toward completing your Letter must be at least 5% of the total investment specified in your Letter. Fidelity will register Class A or Class T shares equal to 5% of the total investment specified in your Letter in your name and will hold those shares in escrow. You will earn income, dividends and capital gain distributions on escrowed Class A and Class T shares. The escrow will be released when you complete your Letter. You are not obligated to complete your Letter. If you do not complete your Letter, you must pay the increased front-end sales charges due. If you do not pay the increased front-end sales charges within 20 days after the date your Letter expires, Fidelity will redeem sufficient escrowed Class A or Class T shares to pay any applicable front-end sales charges. If you purchase more than the amount specified in your Letter and qualify for additional Class A or Class T front-end sales charge reductions, the front-end sales charge will be adjusted to reflect your total purchase at the end of 13 months and the surplus amount will be applied to your purchase of additional Class A or Class T shares at the then-current offering price applicable to the total investment.
Prospectus
Detailed information about these programs also is available on www.advisor.fidelity.com. In order to obtain the benefit of a front-end sales charge reduction for which you may be eligible, you may need to inform your investment professional of other accounts you, your spouse, or your children maintain with your investment professional or other investment professionals from the same intermediary.
Class B shares may, upon redemption for any reason, including failure to maintain the account minimum, be assessed a CDSC based on the following schedule:
From Date |
Contingent Deferred |
Less than 1 year |
5% |
1 year to less than 2 years |
4% |
2 years to less than 3 years |
3% |
3 years to less than 4 years |
3% |
4 years to less than 5 years |
2% |
5 years to less than 6 years |
1% |
6 years to less than 7 yearsB |
0% |
A The actual CDSC you pay may be higher or lower than those calculated using these percentages due to rounding. The impact of rounding may vary with the amount of your investment and the size of the class's NAV.
B After a maximum of seven years, Class B shares will convert automatically to Class A shares of the fund.
When exchanging Class B shares of one fund for Class B shares of another Fidelity fund that offers Advisor classes of shares or Advisor B Class shares of Treasury Fund, your Class B shares retain the CDSC schedule in effect when they were originally bought.
Except as provided below, investment professionals receive as compensation from FDC, at the time of sale, a concession equal to 4.00% of your purchase of Class B shares. For purchases of Class B shares through reinvested dividends or capital gain distributions, investment professionals do not receive a concession at the time of sale.
Class C shares may, upon redemption less than one year after purchase, for any reason, including failure to maintain the account minimum, be assessed a CDSC of 1.00%. The actual CDSC you pay may be higher or lower than that calculated using this percentage due to rounding. The impact of rounding may vary with the amount of your investment and the size of the class's NAV.
Prospectus
Fund Services - continued
Except as provided below, investment professionals will receive as compensation from FDC, at the time of the sale, a concession equal to 1.00% of your purchase of Class C shares. For purchases of Class C shares made for an intermediary-sponsored managed account program, employee benefit plan, 403(b) program or plan covering a sole-proprietor (formerly Keogh/H.R. 10 plan) or through reinvested dividends or capital gain distributions, investment professionals do not receive a concession at the time of sale.
The CDSC for Class B and Class C shares will be calculated based on the lesser of the cost of each class's shares, as applicable, at the initial date of purchase or the value of those shares, as applicable, at redemption, not including any reinvested dividends or capital gains. Class B and Class C shares acquired through reinvestment of dividends or capital gain distributions will not be subject to a CDSC. In determining the applicability and rate of any CDSC at redemption, shares representing reinvested dividends and capital gains will be redeemed first, followed by those shares that have been held for the longest period of time.
A front-end sales charge will not apply to the following Class A shares:
1. Purchased for an employee benefit plan. For this purpose, employee benefit plans generally include profit sharing, 401(k), and 403(b) plans, but do not include: IRAs; SIMPLE, SEP, or SARSEP plans; plans covering self-employed individuals and their employees (formerly Keogh/H.R. 10 plans); health savings accounts; or plans investing through the Fidelity Advisor 403(b) program;
2. Purchased for an insurance company separate account used to fund annuity contracts for employee benefit plans (as defined above);
3. Purchased by broker-dealer, registered investment adviser, insurance company, trust institution or bank trust department managed account programs that charge an asset-based fee;
4. Purchased by a bank trust officer, registered representative, or other employee (or a member of one of their immediate families) of intermediaries having agreements with FDC. A member of the immediate family of a bank trust officer, a registered representative, or other employee of intermediaries having agreements with FDC, is a spouse of one of those individuals, an account for which one of those individuals is acting as custodian for a minor child, and a trust account that is registered for the sole benefit of a minor child of one of those individuals;
5. Purchased by the Fidelity Investments Charitable Gift Fund;
6. Purchased to repay a loan against Class A or Class B shares held in the investor's Fidelity Advisor 403(b) program; or
7. Purchased by broker-dealer, registered investment adviser, insurance company, trust institution, or bank trust department health savings account programs.
Prospectus
A front-end sales charge will not apply to the following Class T shares:
1. Purchased for an employee benefit plan. For this purpose, employee benefit plans generally include profit sharing, 401(k), and 403(b) plans, but do not include: IRAs; SIMPLE, SEP, or SARSEP plans; plans covering self-employed individuals and their employees (formerly Keogh/H.R. 10 plans); health savings accounts; or plans investing through the Fidelity Advisor 403(b) program;
2. Purchased for an insurance company separate account used to fund annuity contracts for employee benefit plans (as defined above);
3. Purchased by broker-dealer, registered investment adviser, insurance company, trust institution or bank trust department managed account programs that charge an asset-based fee;
4. Purchased for a Fidelity or Fidelity Advisor account (including purchases by exchange) with the proceeds of a distribution from (i) an insurance company separate account used to fund annuity contracts for employee benefit plans, 403(b) programs, or plans covering sole-proprietors (formerly Keogh/H.R. 10 plans) that are invested in Fidelity Advisor or Fidelity funds, or (ii) an employee benefit plan, a 403(b) program other than a Fidelity Advisor 403(b) program, or plan covering a sole-proprietor (formerly Keogh/H.R. 10 plan) that is invested in Fidelity Advisor or Fidelity funds. (Distributions other than those transferred to an IRA account must be transferred directly into a Fidelity account.);
5. Purchased for any state, county, or city, or any governmental instrumentality, department, authority or agency;
6. Purchased by a current or former Trustee or officer of a Fidelity fund or a current or retired officer, director or regular employee of FMR Corp. or Fidelity International Limited (FIL) or their direct or indirect subsidiaries (a Fidelity Trustee or employee), the spouse of a Fidelity Trustee or employee, a Fidelity Trustee or employee acting as custodian for a minor child, or a person acting as trustee of a trust for the sole benefit of the minor child of a Fidelity Trustee or employee;
7. Purchased by a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more;
8. Purchased by the Fidelity Investments Charitable Gift Fund;
9. Purchased by a bank trust officer, registered representative, or other employee (or a member of one of their immediate families) of intermediaries having agreements with FDC. A member of the immediate family of a bank trust officer, a registered representative, or other employee of intermediaries having agreements with FDC, is a spouse of one of those individuals, an account for which one of those individuals is acting as custodian for a minor child, and a trust account that is registered for the sole benefit of a minor child of one of those individuals;
Prospectus
Fund Services - continued
10. Purchased for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code);
11. Purchased with distributions of income, principal, and capital gains from Fidelity Defined Trusts;
12. Purchased to repay a loan against Class T shares held in the investor's Fidelity Advisor 403(b) program; or
13. Purchased by broker-dealer, registered investment adviser, insurance company, trust institution, or bank trust department health savings account programs.
Pursuant to Rule 22d-1 under the Investment Company Act of 1940 (1940 Act), FDC exercises its right to waive Class A's and Class T's front-end sales charge on shares acquired through reinvestment of dividends and capital gain distributions or in connection with a fund's merger with or acquisition of any investment company or trust. FDC also exercises its right to waive Class A's front-end sales charge on purchases of $5.00 or less.
<R>The CDSC may be waived on the redemption of shares (applies to Class A, Class B, Class C and Class T, unless otherwise noted):</R>
<R>A form may be required.</R>
<R>1. For disability or death;</R>
<R>2. From employer-sponsored retirement plans (except SIMPLE IRAs, SEPs, and SARSEPs) starting the year in which age 70 1/2 is attained;</R>
<R>3. For minimum required distributions from Traditional IRAs, Rollover IRAs, SIMPLE IRAs, SEPs, and SARSEPs (excludes Roth accounts) starting the year in which age 70 1/2 is attained;</R>
<R>4. Through the Fidelity Advisor Systematic Withdrawal Program, if the amount does not exceed 12% of the account balance in a rolling 12-month period;</R>
<R>5. (Applicable to Class A and Class T only) Held by insurance company separate accounts;</R>
<R>6. (Applicable to Class A and Class T only) From an employee benefit plan (except SIMPLE IRAs, SEPs, SARSEPs and plans covering self-employed individuals and their employees) or 403(b) programs (except Fidelity Advisor 403(b) programs for which Fidelity or an affiliate serves as custodian);</R>
<R>7. (Applicable to Class A and Class T only) Purchased by the Fidelity Investments Charitable Gift Fund;</R>
<R>8. (Applicable to Class A and Class T only) On which a finder's fee was eligible to be paid to an investment professional at the time of purchase, but was not paid because payment was declined (to determine your eligibility for this CDSC waiver, please ask your investment professional if he or she received a finder's fee at the time of purchase);</R>
<R>9. (Applicable to Class C only) On which investment professionals did not receive a concession at the time of purchase.</R>
Prospectus
You may be required to submit a waiver form with these transactions.
To qualify for a Class A or Class T front-end sales charge reduction or waiver, you must notify Fidelity in advance of your purchase.
You may be required to notify Fidelity in advance of your redemption to qualify for a Class A, Class T, Class B, or Class C CDSC waiver.
Information on sales charge reductions and waivers, including CDSC waivers, is available free of charge on www.advisor.fidelity.com.
Finder's Fees. Finder's fees may be paid to investment professionals who sell Class A and Class T shares in purchase amounts of $1 million or more. For Class A share purchases, investment professionals may be compensated at the time of purchase with a finder's fee at the rate of 1.00% of the purchase amount for purchases of $1 million up to $4 million, 0.50% of the purchase amount for purchases of $4 million up to $25 million, and 0.25% of the purchase amount for purchases of $25 million or more. For Class T purchases, investment professionals may be compensated at the time of purchase with a finder's fee at the rate of 0.25% of the purchase amount.
Investment professionals may be eligible for a finder's fee on the following purchases of Class A and Class T shares made through broker-dealers and banks: a trade that brings the value of the accumulated account(s) of an investor, including a 403(b) program or an employee benefit plan (except a SEP or SARSEP plan or a plan covering self-employed individuals and their employees (formerly a Keogh/H.R. 10 plan)), over $1 million; a trade for an investor with an accumulated account value of $1 million or more; and an incremental trade toward an investor's $1 million Letter.
Finder's fees are not paid in connection with purchases of Class A or Class T shares by insurance company separate accounts or the Fidelity Investments Charitable Gift Fund, or purchases of Class A or Class T shares made with the proceeds from the redemption of shares of any Fidelity fund.
To qualify to receive a finder's fee, an investment professional must notify Fidelity in advance, and may be required to enter into an agreement with FDC in order to receive the finder's fee.
Reinstatement Privilege. If you have sold all or part of your Class A, Class T, Class B, or Class C shares of the fund, you may reinvest an amount equal to all or a portion of the redemption proceeds in the same class of the fund or another Fidelity fund that offers Advisor classes of shares, at the NAV next determined after receipt in proper form of your investment order, provided that such reinvestment is made within 90 days of redemption. Under these circumstances, the dollar amount of the CDSC you paid, if any, on shares will be reimbursed to you by reinvesting that amount in Class A, Class T, Class B, or Class C shares, as applicable. You must reinstate your Class A, Class T, Class B, or Class C shares into an account with the same registration. This privilege may be exercised only once by a shareholder with respect to the fund and certain restrictions may apply. For purposes of the CDSC schedule, the holding period will continue as if the Class A, Class T, Class B, or Class C shares had not been redeemed.
Prospectus
Fund Services - continued
To qualify for the reinstatement privilege, you must notify Fidelity in writing in advance of your reinvestment.
Conversion Feature. After a maximum of seven years from the initial date of purchase, Class B shares and any capital appreciation associated with those shares convert automatically to Class A shares of the fund. Conversion to Class A shares will be made at NAV. At the time of conversion, a portion of the Class B shares bought through the reinvestment of dividends or capital gains (Dividend Shares) will also convert to Class A shares. The portion of Dividend Shares that will convert is determined by the ratio of your converting Class B non-Dividend Shares to your total Class B non-Dividend Shares.
Class A has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. Under the plan, Class A is authorized to pay FDC a monthly 12b-1 (distribution) fee as compensation for providing services intended to result in the sale of Class A shares. Class A may pay this 12b-1 (distribution) fee at an annual rate of 0.50% of its average net assets, or such lesser amount as the Trustees may determine from time to time. Currently, the Trustees have not approved such payments. The Trustees may approve 12b-1 (distribution) fee payments at an annual rate of up to 0.50% of Class A's average net assets when the Trustees believe that it is in the best interests of Class A shareholders to do so.
In addition, pursuant to the Class A plan, Class A pays FDC a monthly 12b-1 (service) fee at an annual rate of 0.25% of Class A's average net assets throughout the month for providing shareholder support services.
Except as provided below, during the first year of investment and thereafter, FDC may reallow up to the full amount of this 12b-1 (service) fee to intermediaries (such as banks, broker-dealers, and other service-providers), including its affiliates, for providing shareholder support services. For purchases of Class A shares on which a finder's fee was paid to intermediaries, after the first year of investment, FDC may reallow up to the full amount of the 12b-1 (service) fee paid by such shares to intermediaries, including its affiliates, for providing shareholder support services.
Class T has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. Under the plan, Class T is authorized to pay FDC a monthly 12b-1 (distribution) fee as compensation for providing services intended to result in the sale of Class T shares. Class T may pay this 12b-1 (distribution) fee at an annual rate of 0.50% of its average net assets, or such lesser amount as the Trustees may determine from time to time. Class T currently pays FDC a monthly 12b-1 (distribution) fee at an annual rate of 0.25% of its average net assets throughout the month. Class T's 12b-1 (distribution) fee rate may be increased only when the Trustees believe that it is in the best interests of Class T shareholders to do so.
Prospectus
FDC may reallow up to the full amount of this 12b-1 (distribution) fee to intermediaries (such as banks, broker-dealers, and other service-providers), including its affiliates, for providing services intended to result in the sale of Class T shares.
In addition, pursuant to the Class T plan, Class T pays FDC a monthly 12b-1 (service) fee at an annual rate of 0.25% of Class T's average net assets throughout the month for providing shareholder support services.
FDC may reallow up to the full amount of this 12b-1 (service) fee to intermediaries (such as banks, broker-dealers, and other service-providers), including its affiliates, for providing shareholder support services.
Class B has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. Under the plan, Class B is authorized to pay FDC a monthly 12b-1 (distribution) fee as compensation for providing services intended to result in the sale of Class B shares. Class B currently pays FDC a monthly 12b-1 (distribution) fee at an annual rate of 0.75% of its average net assets throughout the month.
In addition, pursuant to the Class B plan, Class B pays FDC a monthly 12b-1 (service) fee at an annual rate of 0.25% of Class B's average net assets throughout the month for providing shareholder support services.
FDC may reallow up to the full amount of this 12b-1 (service) fee to intermediaries (such as banks, broker-dealers, and other service-providers), including its affiliates, for providing shareholder support services.
Class C has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. Under the plan, Class C is authorized to pay FDC a monthly 12b-1 (distribution) fee as compensation for providing services intended to result in the sale of Class C shares. Class C currently pays FDC a monthly 12b-1 (distribution) fee at an annual rate of 0.75% of its average net assets throughout the month.
In addition, pursuant to the Class C plan, Class C pays FDC a monthly 12b-1 (service) fee at an annual rate of 0.25% of Class C's average net assets throughout the month for providing shareholder support services.
Normally, after the first year of investment, FDC may reallow up to the full amount of the 12b-1 (distribution) fees to intermediaries (such as banks, broker-dealers, and other service-providers), including its affiliates, for providing services intended to result in the sale of Class C shares and may reallow up to the full amount of the 12b-1 (service) fee to intermediaries, including its affiliates, for providing shareholder support services.
For purchases of Class C shares made for an intermediary-sponsored managed account program, employee benefit plan, 403(b) program or plan covering a sole-proprietor (formerly Keogh/H.R. 10 plan) or through reinvestment of dividends or capital gain distributions, during the first year of investment and thereafter, FDC may reallow up to the full amount of this 12b-1 (distribution) fee paid by such shares to intermediaries, including its affiliates, for providing services intended to result in the sale of Class C shares and may reallow up to the full amount of this 12b-1 (service) fee paid by such shares to intermediaries, including its affiliates, for providing shareholder support services.
Prospectus
Fund Services - continued
Any fees paid out of the class's assets on an ongoing basis pursuant to the Distribution and Service Plan will increase the cost of your investment and may cost you more than paying other types of sales charges.
In addition to the above payments, the plan specifically recognizes that FMR may make payments from its management fee revenue, past profits, or other resources to FDC for expenses incurred in connection with providing services intended to result in the sale of the applicable class's shares and/or shareholder support services. FMR, directly or through FDC or one or more affiliates, may pay significant amounts to intermediaries that provide those services. Currently, the Board of Trustees of the fund has authorized such payments for each class. Please speak with your investment professional to learn more about any payments his or her firm may receive from FMR, FDC, and/or their affiliates, as well as fees and/or commissions the investment professional charges. You should also consult disclosures made by your investment professional at the time of purchase.
No dealer, sales representative, or any other person has been authorized to give any information or to make any representations, other than those contained in this prospectus and in the related SAI, in connection with the offer contained in this prospectus. If given or made, such other information or representations must not be relied upon as having been authorized by the fund or FDC. This prospectus and the related SAI do not constitute an offer by the fund or by FDC to sell shares of the fund to or to buy shares of the fund from any person to whom it is unlawful to make such offer.
Prospectus
<R>The financial highlights tables are intended to help you understand each class's financial history for the past 5 years. Certain information reflects financial results for a single class share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the class (assuming reinvestment of all dividends and distributions). The annual information has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the fund's financial highlights and financial statements, is included in the fund's annual report. A free copy of the annual report is available upon request.</R>
Advisor Asset Manager 70% - Class A
|
<R>Six months |
<R>Ten months |
|
||||
|
<R>(Unaudited)</R> |
<R>2006G</R> |
<R>2005J</R> |
<R>2004J</R> |
<R>2003J</R> |
<R>2002J</R> |
<R>2001J</R> |
<R>Selected Per-Share Data</R> |
|
|
|
|
|
||
<R>Net asset value, beginning of period </R> |
<R>$ 12.10</R> |
<R>$ 12.48</R> |
<R>$ 11.10</R> |
<R>$ 9.93</R> |
<R>$ 8.77</R> |
<R>$ 9.83</R> |
<R>$ 11.02</R> |
<R>Income from Investment Operations</R> |
|
|
|
|
|
|
|
<R>Net investment income (loss) E </R> |
<R> .12</R> |
<R> .17</R> |
<R> .10</R> |
<R> .08</R> |
<R> .12</R> |
<R> .15</R> |
<R> .20</R> |
<R>Net realized and unrealized gain (loss) </R> |
<R> .74</R> |
<R> .54</R> |
<R> 1.36</R> |
<R> 1.17</R> |
<R> 1.16</R> |
<R> (1.05)</R> |
<R> (1.20)</R> |
<R>Total from investment operations </R> |
<R> .86</R> |
<R> .71</R> |
<R> 1.46</R> |
<R> 1.25</R> |
<R> 1.28</R> |
<R> (.90)</R> |
<R> (1.00)</R> |
<R>Distributions from net investment income </R> |
<R> (.13)</R> |
<R> (.13)</R> |
<R> (.08)</R> |
<R> (.08)</R> |
<R> (.12)</R> |
<R> (.16)</R> |
<R> (.19)</R> |
<R>Distributions from net realized gain </R> |
<R> (.41)</R> |
<R> (.96)</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R>Total distributions </R> |
<R> (.54)</R> |
<R> (1.09)</R> |
<R> (.08)</R> |
<R> (.08)</R> |
<R> (.12)</R> |
<R> (.16)</R> |
<R> (.19)</R> |
<R>Net asset value, end of period </R> |
<R>$ 12.42</R> |
<R>$ 12.10</R> |
<R>$ 12.48</R> |
<R>$ 11.10</R> |
<R>$ 9.93</R> |
<R>$ 8.77</R> |
<R>$ 9.83</R> |
<R>Total Return B, C, D </R> |
<R> 7.25%</R> |
<R> 6.04%</R> |
<R> 13.22%</R> |
<R> 12.66%</R> |
<R> 14.79%</R> |
<R> (9.28)%</R> |
<R> (9.13)%</R> |
<R>Ratios to Average Net Assets H</R> |
|
|
|
|
|
||
<R>Expenses before reductions </R> |
<R> 1.21%A</R> |
<R> 1.24% A</R> |
<R> 1.26%</R> |
<R> 1.28%</R> |
<R> 1.27%</R> |
<R> 1.29%</R> |
<R> 1.26%</R> |
<R>Expenses net of fee waivers, if any </R> |
<R> 1.21%A</R> |
<R> 1.24% A</R> |
<R> 1.26%</R> |
<R> 1.28%</R> |
<R> 1.27%</R> |
<R> 1.29%</R> |
<R> 1.26%</R> |
<R>Expenses net of all reductions </R> |
<R> 1.19%A</R> |
<R> 1.22% A</R> |
<R> 1.23%</R> |
<R> 1.25%</R> |
<R> 1.23%</R> |
<R> 1.25%</R> |
<R> 1.23%</R> |
<R>Net investment income (loss) </R> |
<R> 1.97%A</R> |
<R> 1.72% A</R> |
<R> .85%</R> |
<R> .75%</R> |
<R> 1.33%</R> |
<R> 1.65%</R> |
<R> 1.97%</R> |
<R>Supplemental Data</R> |
|
|
|
|
|
|
|
<R>Net assets, end of period (000 omitted) </R> |
<R>$ 101,502</R> |
<R>$ 76,226</R> |
<R>$ 52,137</R> |
<R>$ 36,512</R> |
<R>$ 36,234</R> |
<R>$ 29,894</R> |
<R>$ 14,487</R> |
<R>Portfolio turnover rate F,I </R> |
<R> 16%A</R> |
<R> 105% A</R> |
<R> 125%</R> |
<R> 106%</R> |
<R> 99%</R> |
<R> 120%</R> |
<R> 165%</R> |
A <R>Annualized</R>
B <R>Total returns for periods of less than one year are not annualized.</R>
C <R>Total returns would have been lower had certain expenses not been reduced during the periods shown.</R>
D <R>Total returns do not include the effect of the sales charges.</R>
E <R>Calculated based on average shares outstanding during the period.</R>
F <R>Amount does not include the portfolio activity of any underlying Fidelity Central Funds.</R>
G <R>For the ten month period ended September 30. The Fund changed its fiscal year from November 30 to September 30, effective September 30, 2006.</R>
H <R>Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expense paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less then .01% to .01%.</R>
I <R>The portfolio turnover rate does not include the activity from in-kind exchanges.</R>
J <R>For the period ended November 30.</R>
Prospectus
Appendix - continued
Advisor Asset Manager 70% - Class T
|
<R>Six months |
<R>Ten months |
|
||||
|
<R>(Unaudited)</R> |
<R>2006G</R> |
<R>2005J</R> |
<R>2004J</R> |
<R>2003J</R> |
<R>2002J</R> |
<R>2001J</R> |
<R>Selected Per-Share Data</R> |
|
|
|
|
|
||
<R>Net asset value, beginning of period </R> |
<R>$ 12.05</R> |
<R>$ 12.42</R> |
<R>$ 11.05</R> |
<R>$ 9.90</R> |
<R>$ 8.75</R> |
<R>$ 9.79</R> |
<R>$ 10.99</R> |
<R>Income from Investment Operations</R> |
|
|
|
|
|
|
|
<R>Net investment income (loss) E </R> |
<R> .10</R> |
<R> .14</R> |
<R> .07</R> |
<R> .05</R> |
<R> .09</R> |
<R> .13</R> |
<R> .17</R> |
<R>Net realized and unrealized gain (loss) </R> |
<R> .73</R> |
<R> .55</R> |
<R> 1.35</R> |
<R> 1.17</R> |
<R> 1.15</R> |
<R> (1.05)</R> |
<R> (1.19)</R> |
<R>Total from investment operations </R> |
<R> .83</R> |
<R> .69</R> |
<R> 1.42</R> |
<R> 1.22</R> |
<R> 1.24</R> |
<R> (.92)</R> |
<R> (1.02)</R> |
<R>Distributions from net investment income </R> |
<R> (.12)</R> |
<R> (.10)</R> |
<R> (.05)</R> |
<R> (.07)</R> |
<R> (.09)</R> |
<R> (.12)</R> |
<R> (.18)</R> |
<R>Distributions from net realized gain </R> |
<R> (.41)</R> |
<R> (.96)</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R>Total distributions </R> |
<R> (.53)</R> |
<R> (1.06)</R> |
<R> (.05)</R> |
<R> (.07)</R> |
<R> (.09)</R> |
<R> (.12)</R> |
<R> (.18)</R> |
<R>Net asset value, end of period </R> |
<R>$ 12.35</R> |
<R>$ 12.05</R> |
<R>$ 12.42</R> |
<R>$ 11.05</R> |
<R>$ 9.90</R> |
<R>$ 8.75</R> |
<R>$ 9.79</R> |
<R>Total Return B, C, D </R> |
<R> 6.98%</R> |
<R> 5.90%</R> |
<R> 12.83%</R> |
<R> 12.39%</R> |
<R> 14.33%</R> |
<R> (9.50)%</R> |
<R> (9.35)%</R> |
<R>Ratios to Average Net Assets H</R> |
|
|
|
|
|
||
<R>Expenses before reductions </R> |
<R> 1.47%A</R> |
<R> 1.50% A</R> |
<R> 1.52%</R> |
<R> 1.57%</R> |
<R> 1.59%</R> |
<R> 1.56%</R> |
<R> 1.55%</R> |
<R>Expenses net of fee waivers,if any </R> |
<R> 1.47%A</R> |
<R> 1.50% A</R> |
<R> 1.52%</R> |
<R> 1.57%</R> |
<R> 1.59%</R> |
<R> 1.56%</R> |
<R> 1.55%</R> |
<R>Expenses net of all reductions </R> |
<R> 1.46%A</R> |
<R> 1.48% A</R> |
<R> 1.50%</R> |
<R> 1.55%</R> |
<R> 1.56%</R> |
<R> 1.53%</R> |
<R> 1.52%</R> |
<R>Net investment income (loss) </R> |
<R> 1.70%A</R> |
<R> 1.45% A</R> |
<R> .58%</R> |
<R> .46%</R> |
<R> 1.00%</R> |
<R> 1.38%</R> |
<R> 1.69%</R> |
<R>Supplemental Data</R> |
|
|
|
|
|
|
|
<R>Net assets, end of period (000 omitted) </R> |
<R>$ 74,354</R> |
<R>$ 72,582</R> |
<R>$ 62,862</R> |
<R>$ 57,816</R> |
<R>$ 54,298</R> |
<R>$ 45,804</R> |
<R>$ 71,346</R> |
<R>Portfolio turnover rate F,I </R> |
<R> 16%A</R> |
<R> 105% A</R> |
<R> 125%</R> |
<R> 106%</R> |
<R> 99%</R> |
<R> 120%</R> |
<R> 165%</R> |
A <R>Annualized</R>
B <R>Total returns for periods of less than one year are not annualized.</R>
C <R>Total returns would have been lower had certain expenses not been reduced during the periods shown.</R>
D <R>Total returns do not include the effect of the sales charges.</R>
E <R>Calculated based on average shares outstanding during the period.</R>
F <R>Amount does not include the portfolio activity of any underlying Fidelity Central Funds.</R>
G <R>For the ten month period ended September 30. The Fund changed its fiscal year from November 30 to September 30, effective September 30, 2006.</R>
H <R>Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expense paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less then .01% to .01%.</R>
I <R>The portfolio turnover rate does not include the activity from in-kind exchanges.</R>
J <R>For the period ended November 30.</R>
Prospectus
Advisor Asset Manager 70% - Class B
|
<R>Six months |
<R>Ten months |
|
||||
|
<R>(Unaudited)</R> |
<R>2006G</R> |
<R>2005J</R> |
<R>2004J</R> |
<R>2003J</R> |
<R>2002J</R> |
<R>2001J</R> |
<R>Selected Per-Share Data</R> |
|
|
|
|
|
||
<R>Net asset value, beginning of period </R> |
<R>$ 11.99</R> |
<R>$ 12.36</R> |
<R>$ 11.01</R> |
<R>$ 9.87</R> |
<R>$ 8.73</R> |
<R>$ 9.78</R> |
<R>$ 10.96</R> |
<R>Income from Investment Operations</R> |
|
|
|
|
|
|
|
<R>Net investment income (loss) E </R> |
<R> .07</R> |
<R> .09</R> |
<R> .01</R> |
<R> (.01)</R> |
<R> .04</R> |
<R> .08</R> |
<R> .12</R> |
<R>Net realized and unrealized gain (loss) </R> |
<R> .73</R> |
<R> .55</R> |
<R> 1.34</R> |
<R> 1.17</R> |
<R> 1.15</R> |
<R> (1.05)</R> |
<R> (1.19)</R> |
<R>Total from investment operations </R> |
<R> .80</R> |
<R> .64</R> |
<R> 1.35</R> |
<R> 1.16</R> |
<R> 1.19</R> |
<R> (.97)</R> |
<R> (1.07)</R> |
<R>Distributions from net investment income </R> |
<R> (.10)</R> |
<R> (.05)</R> |
<R> -</R> |
<R> (.02)</R> |
<R> (.05)</R> |
<R> (.08)</R> |
<R> (.11)</R> |
<R>Distributions from net realized gain </R> |
<R> (.41)</R> |
<R> (.96)</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R>Total distributions </R> |
<R> (.51)</R> |
<R> (1.01)</R> |
<R> -</R> |
<R> (.02)</R> |
<R> (.05)</R> |
<R> (.08)</R> |
<R> (.11)</R> |
<R>Net asset value, end of period </R> |
<R>$ 12.28</R> |
<R>$ 11.99</R> |
<R>$ 12.36</R> |
<R>$ 11.01</R> |
<R>$ 9.87</R> |
<R>$ 8.73</R> |
<R>$ 9.78</R> |
<R>Total Return B, C, D </R> |
<R> 6.75%</R> |
<R> 5.45%</R> |
<R> 12.26%</R> |
<R> 11.77%</R> |
<R> 13.72%</R> |
<R> (10.00)%</R> |
<R> (9.80)%</R> |
<R>Ratios to Average Net Assets H</R> |
|
|
|
|
|
||
<R>Expenses before reductions </R> |
<R> 2.02%A</R> |
<R> 2.05% A</R> |
<R> 2.08%</R> |
<R> 2.14%</R> |
<R> 2.12%</R> |
<R> 2.10%</R> |
<R> 2.04%</R> |
<R>Expenses net of fee waivers, if any </R> |
<R> 2.00%A</R> |
<R> 2.00% A</R> |
<R> 2.04%</R> |
<R> 2.14%</R> |
<R> 2.12%</R> |
<R> 2.10%</R> |
<R> 2.04%</R> |
<R>Expenses net of all reductions </R> |
<R> 1.99%A</R> |
<R> 1.99% A</R> |
<R> 2.01%</R> |
<R> 2.11%</R> |
<R> 2.08%</R> |
<R> 2.06%</R> |
<R> 2.01%</R> |
<R>Net investment income (loss) </R> |
<R> 1.17%A</R> |
<R> .95% A</R> |
<R> .07%</R> |
<R> (.11)%</R> |
<R> .48%</R> |
<R> .84%</R> |
<R> 1.20%</R> |
<R>Supplemental Data</R> |
|
|
|
|
|
|
|
<R>Net assets, end of period (000 omitted) </R> |
<R>$ 37,961</R> |
<R>$ 38,555</R> |
<R>$ 40,236</R> |
<R>$ 32,642</R> |
<R>$ 25,463</R> |
<R>$ 19,261</R> |
<R>$ 21,599</R> |
<R>Portfolio turnover rate F,I </R> |
<R> 16%A</R> |
<R> 105% A</R> |
<R> 125%</R> |
<R> 106%</R> |
<R> 99%</R> |
<R> 120%</R> |
<R> 165%</R> |
A <R>Annualized</R>
B <R>Total returns for periods of less than one year are not annualized.</R>
C <R>Total returns would have been lower had certain expenses not been reduced during the periods shown.</R>
D <R>Total returns do not include the effect of the contingent deferred sales charge.</R>
E <R>Calculated based on average shares outstanding during the period.</R>
F <R>Amount does not include the portfolio activity of any underlying Fidelity Central Funds.</R>
G <R>For the ten month period ended September 30. The Fund changed its ficsal year from November 30 to September 30, effective September 30, 2006.</R>
H <R>Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expense paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less then .01% to .01%.</R>
I <R>The portfolio turnover rate does not include the activity from in-kind exchanges.</R>
J <R>For the period ended November 30.</R>
Prospectus
Appendix - continued
Advisor Asset Manager 70% - Class C
|
<R>Six months |
<R>Ten months |
|
||||
|
<R>(Unaudited)</R> |
<R>2006G</R> |
<R>2005J</R> |
<R>2004J</R> |
<R>2003J</R> |
<R>2002J</R> |
<R>2001J</R> |
<R>Selected Per-Share Data</R> |
|
|
|
|
|
||
<R>Net asset value, beginning of period </R> |
<R>$ 11.97</R> |
<R>$ 12.36</R> |
<R>$ 11.01</R> |
<R>$ 9.87</R> |
<R>$ 8.72</R> |
<R>$ 9.77</R> |
<R>$ 10.94</R> |
<R>Income from Investment Operations</R> |
|
|
|
|
|
|
|
<R>Net investment income (loss) E </R> |
<R> .07</R> |
<R> .09</R> |
<R> .01</R> |
<R> (.01)</R> |
<R> .05</R> |
<R> .08</R> |
<R> .12</R> |
<R>Net realized and unrealized gain (loss) </R> |
<R> .74</R> |
<R> .54</R> |
<R> 1.35</R> |
<R> 1.17</R> |
<R> 1.15</R> |
<R> (1.05)</R> |
<R> (1.18)</R> |
<R>Total from investment operations </R> |
<R> .81</R> |
<R> .63</R> |
<R> 1.36</R> |
<R> 1.16</R> |
<R> 1.20</R> |
<R> (.97)</R> |
<R> (1.06)</R> |
<R>Distributions from net investment income </R> |
<R> (.10)</R> |
<R> (.06)</R> |
<R> (.01)</R> |
<R> (.02)</R> |
<R> (.05)</R> |
<R> (.08)</R> |
<R> (.11)</R> |
<R>Distributions from net realized gain </R> |
<R> (.41)</R> |
<R> (.96)</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R>Total distributions </R> |
<R> (.51)</R> |
<R> (1.02)</R> |
<R> (.01)</R> |
<R> (.02)</R> |
<R> (.05)</R> |
<R> (.08)</R> |
<R> (.11)</R> |
<R>Net asset value, end of period </R> |
<R>$ 12.27</R> |
<R>$ 11.97</R> |
<R>$ 12.36</R> |
<R>$ 11.01</R> |
<R>$ 9.87</R> |
<R>$ 8.72</R> |
<R>$ 9.77</R> |
<R>Total Return B, C, D </R> |
<R> 6.83%</R> |
<R> 5.37%</R> |
<R> 12.31%</R> |
<R> 11.77%</R> |
<R> 13.85%</R> |
<R> (10.01)%</R> |
<R> (9.73)%</R> |
<R>Ratios to Average Net Assets H</R> |
|
|
|
|
|
||
<R>Expenses before reductions </R> |
<R> 1.95%A</R> |
<R> 1.98% A</R> |
<R> 2.02%</R> |
<R> 2.08%</R> |
<R> 2.08%</R> |
<R> 2.07%</R> |
<R> 2.02%</R> |
<R>Expenses net of fee waivers, if any </R> |
<R> 1.95%A</R> |
<R> 1.98% A</R> |
<R> 2.02%</R> |
<R> 2.08%</R> |
<R> 2.08%</R> |
<R> 2.07%</R> |
<R> 2.02%</R> |
<R>Expenses net of all reductions </R> |
<R> 1.94%A</R> |
<R> 1.97% A</R> |
<R> 1.99%</R> |
<R> 2.05%</R> |
<R> 2.05%</R> |
<R> 2.03%</R> |
<R> 1.99%</R> |
<R>Net investment income (loss) </R> |
<R> 1.22%A</R> |
<R> .97% A</R> |
<R> .09%</R> |
<R> (.05)%</R> |
<R> .52%</R> |
<R> .88%</R> |
<R> 1.22%</R> |
<R>Supplemental Data</R> |
|
|
|
|
|
|
|
<R>Net assets, end of period (000 omitted) </R> |
<R>$ 46,208</R> |
<R>$ 41,117</R> |
<R>$ 31,397</R> |
<R>$ 20,023</R> |
<R>$ 13,150</R> |
<R>$ 9,574</R> |
<R>$ 11,037</R> |
<R>Portfolio turnover rate F,I </R> |
<R> 16%A</R> |
<R> 105% A</R> |
<R> 125%</R> |
<R> 106%</R> |
<R> 99%</R> |
<R> 120%</R> |
<R> 165%</R> |
A <R>Annualized</R>
B <R>Total returns for periods of less than one year are not annualized.</R>
C <R>Total returns would have been lower had certain expenses not been reduced during the periods shown.</R>
D <R>Total returns do not include the effect of the contingent deferred sales charge.</R>
E <R>Calculated based on average shares outstanding during the period.</R>
F <R>Amount does not include the portfolio activity of any underlying Fidelity Central Funds.</R>
G <R>For the ten month period ended September 30. The Fund changed its fiscal year from November 30 to September 30, effective September 30, 2006.</R>
H <R>Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expense paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less then .01% to .01%.</R>
I <R>The portfolio turnover rate does not include the activity from in-kind exchanges.</R>
J <R>For the period ended November 30.</R>
Prospectus
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT To help the government fight the funding of terrorism and money laundering activities, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT ACT), requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account. For individual investors opening an account: When you open an account, you will be asked for your name, address, date of birth, and other information that will allow Fidelity to identify you. You may also be asked to provide documents that may help to establish your identity, such as your driver's license. For investors other than individuals: When you open an account, you will be asked for the name of the entity, its principal place of business and taxpayer identification number (TIN) and may be requested to provide information on persons with authority or control over the account such as name, residential address, date of birth and social security number. You may also be asked to provide documents, such as drivers' licenses, articles of incorporation, trust instruments or partnership agreements and other information that will help Fidelity identify the entity. |
You can obtain additional information about the fund. A description of the fund's policies and procedures for disclosing its holdings is available in its SAI and on Fidelity's web sites. The SAI also includes more detailed information about the fund and its investments. The SAI is incorporated herein by reference (legally forms a part of the prospectus). The fund's annual and semi-annual reports also include additional information. The fund's annual report includes a discussion of the fund's holdings and recent market conditions and the fund's investment strategies that affected performance.
For a free copy of any of these documents or to request other information or ask questions about the fund, call Fidelity at 1-877-208-0098. In addition, you may visit Fidelity's web site at www.advisor.fidelity.com for a free copy of a prospectus, SAI, or annual or semi-annual report or to request other information.
The SAI, the fund's annual and semi-annual reports and other related materials are available from the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) Database on the SEC's web site (http://www.sec.gov). You can obtain copies of this information, after paying a duplicating fee, by sending a request by e-mail to publicinfo@sec.gov or by writing the Public Reference Section of the SEC, Washington, D.C. 20549-0102. You can also review and copy information about the fund, including the fund's SAI, at the SEC's Public Reference Room in Washington, D.C. Call 1-202-551-8090 for information on the operation of the SEC's Public Reference Room. Investment Company Act of 1940, File Number, 811-03221 |
Fidelity, Fidelity Investments & (Pyramid) Design, Fidelity Advisor Money Line, and Directed Dividends are registered trademarks of FMR Corp.
Fidelity Advisor Asset Manager is a service mark of FMR Corp.
The third party marks appearing above are the marks of their respective owners.
<R>1.729818.108 AAL-pro-1106-01</R>
Like securities of all mutual funds, these securities have not been approved or disapproved by the Securities and Exchange Commission, and the Securities and Exchange Commission has not determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
Fidelity Advisor
Asset ManagerSM 70%
<R>(formerly Fidelity® Advisor Asset Allocation Fund)</R>
<R>Institutional Class</R>
<R>(Fund 729)</R>
Prospectus
<R>June 29, 2007</R>
(fidelity_logo_graphic)
82 Devonshire Street, Boston, MA 02109
Fund Summary |
Investment Summary |
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|
Performance |
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|
Fee Table |
|
Fund Basics |
Investment Details |
|
|
Valuing Shares |
|
Shareholder Information |
Buying and Selling Shares |
|
|
Exchanging Shares |
|
|
Account Features and Policies |
|
|
Dividends and Capital Gain Distributions |
|
|
Tax Consequences |
|
Fund Services |
Fund Management |
|
|
Fund Distribution |
|
Appendix |
Financial Highlights |
Prospectus
Investment Objective
Advisor Asset Manager 70% seeks to maximize total return over the long-term by allocating its assets among stocks, bonds, short-term instruments, and other investments.
Principal Investment Strategies
Principal Investment Risks
An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Prospectus
Fund Summary - continued
When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money.
The following information is intended to help you understand the risks of investing in the fund. The information illustrates the changes in the fund's performance from year to year, as represented by the performance of Institutional Class, and compares Institutional Class's performance to the performance of a market index over various periods of time. Institutional Class of the fund also compares its performance to the performance of a combination of market indexes over various periods of time. Returns (before and after taxes) are based on past results and are not an indication of future performance.
<R>Advisor Asset Manager 70% - Institutional Class</R> |
||||||||||
<R>Calendar Years</R> |
|
|
<R>1999</R> |
<R>2000</R> |
<R>2001</R> |
<R>2002</R> |
<R>2003</R> |
<R>2004</R> |
<R>2005</R> |
<R>2006</R> |
|
|
|
<R>16.83%</R> |
<R>-2.45%</R> |
<R>-8.90%</R> |
<R>-14.54%</R> |
<R>25.39%</R> |
<R>12.39%</R> |
<R>10.18%</R> |
<R>10.80%</R> |
<R>
</R>
<R>During the periods shown in the chart for |
<R>Returns</R> |
<R>Quarter ended</R> |
<R>Highest Quarter Return</R> |
<R> 14.55%</R> |
<R>December 31, 1999</R> |
<R>Lowest Quarter Return</R> |
<R> -13.74%</R> |
<R>September 30, 2001</R> |
<R>Year-to-Date Return</R> |
<R> 2.22%</R> |
<R>March 31, 2007</R> |
Average Annual Returns
After-tax returns are calculated using the historical highest individual federal marginal income tax rates, but do not reflect the impact of state or local taxes. Return After Taxes on Distributions and Sale of Fund Shares may be higher than other returns for the same period due to a tax benefit of realizing a capital loss upon the sale of fund shares. Actual after-tax returns may differ depending on your individual circumstances. The after-tax returns shown are not relevant if you hold your shares in a retirement account or in another tax-deferred arrangement.
Prospectus
<R>For the periods ended |
<R>Past 1 |
<R>Past 5 |
<R>Life of |
<R>Advisor Asset Manager 70%</R> |
|
|
|
<R>Institutional Class - Return Before Taxes</R> |
<R> 10.80%</R> |
<R> 8.02%</R> |
<R> 5.51%</R> |
<R> Return After Taxes on Distributions</R> |
<R> 9.19%</R> |
<R> 7.18%</R> |
<R> 4.77%</R> |
<R> Return After Taxes on Distributions and |
<R> 7.59%</R> |
<R> 6.65%</R> |
<R> 4.45%</R> |
<R>S&P 500® (reflects no deduction for fees, expenses, or taxes)</R> |
<R> 15.79%</R> |
<R> 6.19%</R> |
<R> 3.46%</R> |
<R>Fidelity Asset Manager 70% Composite Index |
<R> 12.05%</R> |
<R> 5.88%</R> |
<R> 4.21%</R> |
A From December 28, 1998.
Standard & Poor's 500SM Index (S&P 500®) is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
<R>Fidelity Asset Manager 70% Composite Index is a hypothetical representation of the performance of the fund's three asset classes according to their respective weightings in the fund's neutral mix (70% stocks, 25% bonds, and 5% short-term/money market instruments). The following indexes are used to represent the fund's asset classes when calculating the composite index: stocks - a combination of the Dow Jones Wilshire 5000 Composite IndexSM (Dow Jones Wilshire 5000) (60%) and the Morgan Stanley Capital InternationalSM Europe, Australasia, and Far East (MSCI® EAFE®) Index (10%), bonds - the Lehman Brothers® U.S. Aggregate Index, and short-term/money market instruments - the Lehman Brothers 3-Month Treasury Bill Index. Prior to July 1, 2006, the S&P 500 Index was used for the stock class.</R>
Dow Jones Wilshire 5000 is a float-adjusted market capitalization-weighted index of substantially all equity securities of U.S. headquartered companies with readily available price data.
MSCI EAFE Index is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of developed stock markets outside the United States and Canada and excludes certain market segments unavailable to U.S. based investors. Index returns for periods after January 1, 1997 are adjusted for tax withholding rates applicable to U.S. based mutual funds organized as Massachusetts business trusts.
<R>Lehman Brothers U.S. Aggregate Index is a market value-weighted index of taxable investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. The index is designed to represent the performance of the U.S. investment-grade fixed-rate bond market.</R>
<R>Lehman Brothers 3-Month Treasury Bill Index is a market value-weighted index of investment-grade fixed-rate public obligations of the U.S. Treasury with maturities of 3 months. It excludes zero coupon strips.</R>
Prospectus
Fund Summary - continued
<R>The following table describes the fees and expenses that are incurred when you buy, hold, or sell Institutional Class shares of the fund. The annual class operating expenses provided below for Institutional Class do not reflect the effect of any reduction of certain expenses during the period.</R>
Shareholder fees (paid by the investor directly)
|
Institutional Class |
Sales charge (load) on purchases and reinvested distributions |
None |
Deferred sales charge (load) on redemptions |
None |
Annual operating expenses (paid from class assets)
|
<R>Institutional Class</R> |
<R>Management fee</R> |
<R>0.57%</R> |
<R>Distribution and/or Service (12b-1) fees</R> |
<R>None</R> |
<R>Other expenses</R> |
<R>0.40%</R> |
<R>Total annual class operating expensesA</R> |
<R>0.97%</R> |
A Effective February 1, 2005, FMR has voluntarily agreed to reimburse Institutional Class of the fund to the extent that total operating expenses (excluding interest, taxes, certain securities lending costs, brokerage commissions, and extraordinary expenses), as a percentage of its average net assets, exceed 1.00%. This arrangement may be discontinued by FMR at any time.
This example helps you compare the cost of investing in the fund with the cost of investing in other mutual funds.
Let's say, hypothetically, that Institutional Class's annual return is 5% and that your shareholder fees and Institutional Class's annual operating expenses are exactly as described in the fee table. This example illustrates the effect of fees and expenses, but is not meant to suggest actual or expected fees and expenses or returns, all of which may vary. For every $10,000 you invested, here's how much you would pay in total expenses if you sell all of your shares at the end of each time period indicated:
|
<R>Institutional Class</R> |
<R>1 year</R> |
<R>$ 99</R> |
<R>3 years</R> |
<R>$ 309</R> |
<R>5 years</R> |
<R>$ 536</R> |
<R>10 years</R> |
<R>$ 1,190</R> |
Prospectus
Investment Objective
Advisor Asset Manager 70% seeks to maximize total return over the long-term by allocating its assets among stocks, bonds, short-term instruments, and other investments.
Principal Investment Strategies
The fund organizes its investments into three main asset classes: the stock class (equity securities of all types), the bond class (fixed-income securities maturing in more than one year), and the short-term/money market class (fixed-income securities maturing in one year or less). The fund's neutral mix is 70% stock class, 25% bond class, and 5% short-term/money market class.
Fidelity Management & Research Company (FMR) can overweight or underweight each asset class within the following ranges:
In managing the fund, FMR seeks to outperform the following composite benchmark, which is designed to represent the neutral mix:
The fund's portfolio manager allocates the fund's assets across asset classes. The portfolio manager generally uses other Fidelity managers to handle investments within each asset class, either through subportfolios, which are portions of the fund's assets assigned to other managers by the fund's portfolio manager, or through central funds, which are specialized Fidelity investment vehicles designed to be used by Fidelity funds.
FMR will not try to pinpoint the precise moment when a major reallocation should be made. Instead, FMR regularly reviews the fund's allocation and makes changes gradually to favor investments that it believes will provide the most favorable outlook for achieving the fund's objective.
Stock Class. The fund invests in stocks mainly by investing in Fidelity sector central funds. Each sector central fund is managed in an effort to outperform a different sector of the U.S. stock market. At present, these sectors include consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecom services and utilities. The fund invests in all of the sector central funds in combination in an effort to outperform the U.S. market as a whole.
In addition to the sector central funds, the fund may invest a portion of its assets in one or more international stock subportfolios managed in an effort to outperform foreign stock markets. The portfolio manager decides how much to allocate to the international subportfolios based mainly on the allocation to foreign stocks in the fund's composite benchmark. The sector central funds are managed against U.S. benchmarks, but are not limited to U.S. stocks, and the sector fund managers have discretion to make foreign investments. As a result, the fund's total allocation to foreign stocks could be substantially higher than the fund's composite benchmark might suggest.
Prospectus
Fund Basics - continued
Bond Class. Most of the bond class is invested using central funds, each of which focuses on a particular type of fixed-income securities. At present, these include Tactical Income Central Fund (investment-grade bonds), High Income Central Fund 1 (high-yield securities), and Floating Rate Central Fund (floating rate loans and other floating rate securities). The fund may also buy other types of bonds or central funds focusing on other types of bonds.
Short-Term/Money Market Class. Investments in this class may include Money Market Central Fund, which invests in money market instruments, and Ultra-Short Central Fund, which invests in U.S. dollar-denominated money market and investment-grade debt securities and repurchase agreements.
The fund can invest in all types of stocks, bonds, and derivatives, directly or through central funds, and may make investments that do not fall into any of the three asset classes discussed above. The portfolio manager may also use derivatives to manage asset allocation: for example, by buying stock index futures to increase the fund's allocation to stocks.
Although the underlying Fidelity central funds are categorized generally as stock, bond (investment-grade or high yield), and short-term/money market funds, many of the underlying Fidelity central funds may invest in a mix of securities of foreign and domestic issuers, investment-grade and high yield bonds, and other securities.
In addition to the principal investment strategies discussed above, FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund.
If FMR's strategies do not work as intended, the fund may not achieve its objective.
Description of Principal Security Types
Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy of the issuer. Equity securities include common stocks, preferred stocks, convertible securities, and warrants.
Debt securities are used by issuers to borrow money. The issuer usually pays a fixed, variable, or floating rate of interest, and must repay the amount borrowed, usually at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay current interest but are sold at a discount from their face values. Debt securities include corporate bonds, government securities, repurchase agreements, mortgage and other asset-backed securities, and other securities that FMR believes have debt-like characteristics, including hybrids and synthetic securities.
Prospectus
Money market securities are high-quality, short-term securities that pay a fixed, variable, or floating interest rate. Securities are often specifically structured so that they are eligible investments for a money market fund. For example, in order to satisfy the maturity restrictions for a money market fund, some money market securities have demand or put features, which have the effect of shortening the security's maturity. Money market securities include bank certificates of deposit, bankers' acceptances, bank time deposits, notes, commercial paper, and U.S. Government securities.
Central Funds are special types of investment vehicles created by Fidelity for use by the Fidelity funds and other advisory clients. Central funds incur certain costs related to their investment activity (such as custodial fees and expenses), but do not pay additional management fees to Fidelity. The investment results of the portions of the fund's assets invested in the central funds will be based upon the investment results of those funds.
Principal Investment Risks
Many factors affect the fund's performance. The fund's share price and yield change daily based on changes in market conditions and interest rates and in response to other economic, political, or financial developments. The fund's reaction to these developments will be affected by the types and maturities of securities in which the fund invests, the financial condition, industry and economic sector, and geographic location of an issuer, and the fund's level of investment in the securities of that issuer. When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money.
The following factors can significantly affect the fund's performance:
Stock Market Volatility. The value of equity securities fluctuates in response to issuer, political, market, and economic developments. In the short term, equity prices can fluctuate dramatically in response to these developments. Different parts of the market and different types of equity securities can react differently to these developments. For example, large cap stocks can react differently from small cap stocks, and "growth" stocks can react differently from "value" stocks. Issuer, political, or economic developments can affect a single issuer, issuers within an industry or economic sector or geographic region, or the market as a whole.
Interest Rate Changes. Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities and mortgage securities can be more sensitive to interest rate changes. In other words, the longer the maturity of a security, the greater the impact a change in interest rates could have on the security's price. In addition, short-term and long-term interest rates do not necessarily move in the same amount or the same direction. Short-term securities tend to react to changes in short-term interest rates, and long-term securities tend to react to changes in long-term interest rates.
Prospectus
Fund Basics - continued
Foreign Exposure. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial, and other operational risks; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently from the U.S. market.
Investing in emerging markets can involve risks in addition to and greater than those generally associated with investing in more developed foreign markets. The extent of economic development; political stability; market depth, infrastructure, and capitalization; and regulatory oversight can be less than in more developed markets. Emerging market economies can be subject to greater social, economic, regulatory, and political uncertainties. All of these factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.
Prepayment. Many types of debt securities, including mortgage securities, are subject to prepayment risk. Prepayment risk occurs when the issuer of a security can repay principal prior to the security's maturity. Securities subject to prepayment can offer less potential for gains during a declining interest rate environment and similar or greater potential for loss in a rising interest rate environment. In addition, the potential impact of prepayment features on the price of a debt security can be difficult to predict and result in greater volatility.
Issuer-Specific Changes. Changes in the financial condition of an issuer or counterparty, changes in specific economic or political conditions that affect a particular type of security or issuer, and changes in general economic or political conditions can affect a security's or instrument's credit quality or value. The value of securities of smaller, less well-known issuers can be more volatile than that of larger issuers. Lower-quality debt securities (those of less than investment-grade quality) and certain types of other securities tend to be particularly sensitive to these changes.
Lower-quality debt securities and certain types of other securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities and certain types of other securities often fluctuates in response to company, political, or economic developments and can decline significantly over short periods of time or during periods of general or regional economic difficulty. Derivatives can provide investment exposure greater than their cost. A small change in the underlying asset, instrument, or index can lead to a significant loss.
Prospectus
In response to market, economic, political, or other conditions, the fund or one or more underlying central funds may temporarily use a different investment strategy for defensive purposes. If FMR does so, different factors could affect the fund's performance and the fund may not achieve its investment objective.
Fundamental Investment Policies
The policy discussed below is fundamental, that is, subject to change only by shareholder approval.
Advisor Asset Manager 70% seeks to maximize total return over the long term by allocating its assets among stocks, bonds, short-term instruments, and other investments.
The fund is open for business each day the New York Stock Exchange (NYSE) is open.
A class's net asset value per share (NAV) is the value of a single share. Fidelity normally calculates Institutional Class's NAV as of the close of business of the NYSE, normally 4:00 p.m. Eastern time. However, NAV may be calculated earlier if trading on the NYSE is restricted or as permitted by the Securities and Exchange Commission (SEC). The fund's assets are valued as of this time for the purpose of computing Institutional Class's NAV.
To the extent that the fund's assets are traded in other markets on days when the fund is not open for business, the value of the fund's assets may be affected on those days. In addition, trading in some of the fund's assets may not occur on days when the fund is open for business.
The fund's assets are valued primarily on the basis of market quotations, official closing prices, or on the basis of information furnished by a pricing service. Certain short-term securities are valued on the basis of amortized cost. If market quotations, official closing prices, or information furnished by a pricing service is not readily available or does not accurately reflect fair value for a security or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security will be valued by another method that the Board of Trustees believes accurately reflects fair value in accordance with the Board's fair value pricing policies. For example, arbitrage opportunities may exist when trading in a portfolio security or securities is halted and does not resume before the fund calculates its NAV. These arbitrage opportunities may enable short-term traders to dilute the NAV of long-term investors. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio security values occur after the close of the overseas market but prior to the close of the U.S. market. Fair value pricing will be used for high yield debt and floating rate loans when available pricing information is determined to be stale or for other reasons not to accurately reflect fair value. To the extent the fund invests in other open-end funds, the fund will calculate its NAV using the NAV of the underlying funds in which it invests as described in the underlying funds' prospectuses. The fund may invest in other Fidelity funds that use the same fair value pricing policies as the fund or in Fidelity money market funds. A security's valuation may differ depending on the method used for determining value. Fair valuation of a fund's portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there is no assurance that fair value pricing policies will prevent dilution of the fund's NAV by short-term traders. While the fund has policies regarding excessive trading, these too may not be effective to prevent short-term NAV arbitrage trading, particularly in regard to omnibus accounts.
Prospectus
General Information
For account, product, and service information, please call 1-877-208-0098 (8:30 a.m. - 7:00 p.m. Eastern time, Monday through Friday).
Please use the following addresses:
Buying or Selling Shares
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
Overnight Express
Fidelity Investments
100 Crosby Parkway
Covington, KY 41015
You may buy or sell Institutional Class shares of the fund through a retirement account or an investment professional. When you invest through a retirement account or an investment professional, the procedures for buying, selling, and exchanging Institutional Class shares of the fund and the account features and policies may differ. Additional fees may also apply to your investment in Institutional Class shares of the fund, including a transaction fee if you buy or sell Institutional Class shares of the fund through a broker or other investment professional.
Certain methods of contacting Fidelity, such as by telephone, may be unavailable or delayed (for example, during periods of unusual market activity).
The different ways to set up (register) your account with Fidelity are listed in the following table.
Ways to Set Up Your Account |
Individual or Joint Tenant For your general investment needs |
Retirement For tax-advantaged retirement savings |
|
|
|
|
|
|
|
|
Gifts or Transfers to a Minor (UGMA, UTMA) To invest for a child's education or other future needs |
Trust For money being invested by a trust |
Business or Organization For investment needs of corporations, associations, partnerships, or other groups |
The fund may reject for any reason, or cancel as permitted or required by law, any purchase orders, including exchanges.
For example, the fund may reject any purchase orders, including exchanges, from market timers or investors that, in FMR's opinion, may be disruptive to the fund.
Frequent purchases and sales of fund shares can harm shareholders in various ways, including reducing the returns to long-term shareholders by increasing costs to the fund (such as brokerage commissions), disrupting portfolio management strategies, and diluting the value of the shares of long-term shareholders in cases in which fluctuations in markets are not fully priced into the fund's NAV. Accordingly, the Board of Trustees has adopted policies and procedures designed to discourage excessive or short-term trading of fund shares. However, there is the risk that the fund's policies and procedures will prove ineffective in whole or in part to detect or prevent frequent trading. The fund may alter its policies at any time without prior notice to shareholders.
Prospectus
Shareholder Information - continued
There is no minimum holding period and shareholders can sell their shares at any time. Shareholders will ordinarily comply with the fund's policies regarding excessive trading by allowing 90 days to pass after each investment before they sell or exchange from the fund. The fund may take action if shares are held longer than 90 days if the trading is disruptive for other reasons such as unusually large trade size. The fund reserves the right, but does not have the obligation, to reject any purchase or exchange transaction at any time. In addition, the fund reserves the right to impose restrictions on purchases or exchanges at any time or conditions that are more restrictive on disruptive, excessive, or short-term trading than those that are otherwise stated in this prospectus.
Excessive trading activity is measured by the number of roundtrip transactions in a shareholder's account. A roundtrip transaction occurs when a shareholder buys and then sells shares of a fund within 30 days. Shareholders are limited to two roundtrip transactions per fund within any rolling 90-day period, subject to an overall limit of four roundtrip transactions across all Fidelity funds over a rolling 12-month period. Roundtrip transactions are counted at the shareholder account level for this purpose and each class of a multiple class fund is treated separately. Transactions of $1,000 or less, systematic withdrawal and/or contribution programs, mandatory retirement distributions, and transactions initiated by a plan sponsor will not count toward the roundtrip limits. For employer-sponsored retirement plans, only participant directed exchanges will count toward the roundtrip limits.
Shareholders with two or more roundtrip transactions in a single fund within a rolling 90-day period will be blocked from making additional purchases or exchange purchases of the fund for 85 days. Shareholders with four or more roundtrip transactions across all Fidelity funds within any rolling 12-month period will be blocked for 85 days from additional purchases or exchange purchases across all Fidelity funds. Any roundtrip within 12 months of the expiration of a multi-fund block will initiate another multi-fund block for an 85-day period. For repeat offenders, FMR may, but does not have the obligation to, impose long-term or permanent blocks on purchase or exchange purchase transactions in any account under the shareholder's common control at any time, other than a participant's account held through an employer-sponsored retirement plan. Employer-sponsored retirement plan participants whose activity triggers a purchase or exchange block will be permitted one trade every calendar quarter. In the event of a block, employer and participant contributions and loan repayments by the participant may still be invested in the fund.
Prospectus
Qualified wrap programs will be monitored by matching the adviser's orders for purchase, exchange, or sale transactions in fund shares to determine if the adviser's orders comply with the fund's frequent trading policies. Additions to and withdrawals from a qualified wrap program by the adviser's client will not be matched with transactions initiated by the adviser. Therefore if the adviser buys shares of a fund and an individual client subsequently sells shares of the same fund within 30 days, the client's transaction is not matched with the adviser's and therefore does not count as a roundtrip. However, client initiated transactions are subject to the fund's policies on frequent trading and individual clients will be subject to restrictions due to their frequent trading in a wrap account. Excessive trading by an adviser will lead to fund blocks and the wrap program will cease to be a qualified wrap program. If the wrap program is blocked from making additional purchases or exchange purchases of a fund because of excessive trading by the adviser the wrap program will no longer be considered qualified and any transaction whether initiated by the adviser or the client will be matched when counting roundtrips. Wrap account client purchases and sale transactions will be monitored under the fund's monitoring policy as though the wrap clients were fund shareholders. A qualified wrap program is: (i) a program whose adviser certifies that it has investment discretion over $100 million or more in client assets invested in mutual funds at the time of the certification, (ii) a program in which the adviser directs transactions in the accounts participating in the program in concert with changes in a model portfolio, and (iii) managed by an adviser who agrees to give FMR sufficient information to permit FMR to identify the individual accounts in the wrap program.
The fund's excessive trade monitoring policy described above does not apply to transactions initiated by the trustee or adviser to a donor-advised charitable gift fund, qualified fund-of-fund(s) or other strategy funds, or omnibus accounts. Trustees or advisers of donor-advised charitable gift funds must certify to the fund's satisfaction that they either work from an asset allocation model or direct transactions in their accounts in concert with changes in a model portfolio and that participants are limited in their ability to influence investments by the trust. A qualified fund-of-fund(s) is a mutual fund, qualified tuition program, or other strategy fund consisting of qualified plan assets that either applies the Fidelity fund's policies on frequent trading to shareholders at the fund-of-fund(s) level, or demonstrates that the fund-of-fund(s) has policies designed to control frequent trading and that they are reasonably likely to be effective as determined by the Fidelity fund's Treasurer. The adviser to the fund-of-fund(s) must also demonstrate to the Fidelity fund's Treasurer that its investment strategy will not lead to excessive trading. Omnibus accounts are maintained by intermediaries acting on behalf of multiple investors whose individual trades are not ordinarily disclosed to the fund. Short-term trading by these investors is likely to go undetected by the fund and may increase costs and disrupt portfolio management. The fund will monitor aggregate trading in qualified fund-of-funds and known omnibus accounts to attempt to identify disruptive trades, focusing on transactions in excess of $250,000. There is no assurance that these policies will be effective, or will successfully detect or deter market timing.
Prospectus
Shareholder Information - continued
The fund's Treasurer is authorized to suspend the fund's policies during periods of severe market turbulence or national emergency.
The fund does not knowingly accommodate frequent purchases and redemptions of fund shares by investors, except as provided under the fund's policies with respect to known omnibus accounts, qualified fund-of-fund(s), qualified wrap accounts, donor-advised charitable gift funds, and 30 day roundtrips.
Buying Shares
Institutional Class shares are offered to:
1. Employee benefit plans investing through an intermediary. For this purpose, employee benefit plans generally include profit sharing, 401(k), and 403(b) plans, but do not include: IRAs; SIMPLE, SEP, or SARSEP plans; plans covering self-employed individuals and their employees (formerly Keogh/H.R. 10 plans); health savings accounts; or plans investing through the Fidelity Advisor 403(b) program;
2. Insurance company separate accounts;
3. Broker-dealer, registered investment adviser, insurance company, trust institution and bank trust department managed account programs that charge an asset-based fee;
4. Current or former Trustees or officers of a Fidelity fund or current or retired officers, directors, or regular employees of FMR Corp. or Fidelity International Limited (FIL) or their direct or indirect subsidiaries (Fidelity Trustee or employee), spouses of Fidelity Trustees or employees, Fidelity Trustees or employees acting as a custodian for a minor child, or persons acting as trustee of a trust for the sole benefit of the minor child of a Fidelity Trustee or employee;
5. Qualified tuition programs for which FMR or an affiliate serves as investment manager, or mutual funds managed by Fidelity or other parties;
6. Non-U.S. public and private retirement programs and non-U.S. insurance companies, if approved by Fidelity; and
7. Broker-dealer, registered investment adviser, insurance company, trust institution and bank trust department health savings account programs.
The price to buy one share of Institutional Class is the class's NAV. Institutional Class shares are sold without a sales charge.
Your shares will be bought at the next NAV calculated after your order is received in proper form.
It is the responsibility of your investment professional to transmit your order to buy shares to Fidelity before the close of business on the day you place your order.
<R>The fund has authorized certain intermediaries to accept orders to buy shares on its behalf. When authorized intermediaries receive an order in proper form, the order is considered as being placed with the fund, and shares will be bought at the next NAV calculated after the order is received by the authorized intermediary. Orders by funds of funds for which FMR or an affiliate serves as investment manager will be treated as received by the fund at the same time that the corresponding orders are received in proper form by the funds of funds.</R>
Prospectus
The fund may stop offering shares completely or may offer shares only on a limited basis, for a period of time or permanently.
When you place an order to buy shares, note the following:
Institutional Class shares can be bought or sold through investment professionals using an automated order placement and settlement system that guarantees payment for orders on a specified date.
Certain financial institutions that meet creditworthiness criteria established by Fidelity Distributors Corporation (FDC) may enter confirmed purchase orders on behalf of customers by phone, with payment to follow no later than close of business on the next business day. If payment is not received by that time, the order will be canceled and the financial institution will be liable for any losses.
Minimums |
|
To Open an Account |
$2,500 |
For certain Fidelity Advisor retirement accountsA |
$500 |
Through regular investment plansB |
$100 |
To Add to an Account |
$100 |
Minimum Balance |
$1,000 |
For certain Fidelity Advisor retirement accountsA |
None |
A Fidelity Advisor Traditional IRA, Roth IRA, Rollover IRA, SEP-IRA, and Keogh accounts.
B An account may be opened with a minimum of $100, provided that a regular investment plan is established at the time the account is opened.
There is no minimum account balance or initial or subsequent purchase minimum for (i) investments through Portfolio Advisory ServicesSM , (ii) certain Fidelity retirement accounts funded through salary deduction, or accounts opened with the proceeds of distributions from such retirement accounts, (iii) investments through a mutual fund or a qualified tuition program for which FMR or an affiliate serves as investment manager, or (iv) certain mutual fund wrap program accounts. An eligible wrap program must offer asset allocation services, charge an asset-based fee to its participants for asset allocation and/or other advisory services, and meet trading and other operational requirements under an appropriate agreement with FDC. In addition, the fund may waive or lower purchase minimums in other circumstances.
Prospectus
Shareholder Information - continued
Key Information |
|
Phone |
To Open an Account
To Add to an Account
|
Mail |
To Open an Account
To Add to an Account
|
In Person |
To Open an Account
To Add to an Account
|
Wire |
To Open an Account
To Add to an Account
|
Automatically |
To Open an Account
To Add to an Account
|
Prospectus
Selling Shares
The price to sell one share of Institutional Class is the class's NAV.
If appropriate to protect shareholders, the fund may impose a redemption fee on redemptions from the fund.
Your shares will be sold at the next NAV calculated after your order is received in proper form. Normally, redemptions will be processed by the next business day, but it may take up to seven days to pay the redemption proceeds if making immediate payment would adversely affect the fund.
It is the responsibility of your investment professional to transmit your order to sell shares to Fidelity before the close of business on the day you place your order.
<R>The fund has authorized certain intermediaries to accept orders to sell shares on its behalf. When authorized intermediaries receive an order in proper form, the order is considered as being placed with the fund, and shares will be sold at the next NAV calculated after the order is received by the authorized intermediary. Orders by funds of funds for which FMR or an affiliate serves as investment manager will be treated as received by the fund at the same time that the corresponding orders are received in proper form by the funds of funds.</R>
Certain requests must include a signature guarantee. It is designed to protect you and Fidelity from fraud. Your request must be made in writing and include a signature guarantee if any of the following situations apply:
You should be able to obtain a signature guarantee from a bank, broker, dealer, credit union (if authorized under state law), securities exchange or association, clearing agency, or savings association. A notary public cannot provide a signature guarantee.
When you place an order to sell shares, note the following:
Prospectus
Shareholder Information - continued
Key Information |
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Phone |
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Mail |
Individual, Joint Tenant, Sole Proprietorship, UGMA, UTMA
Retirement Account
Trust
Business or Organization
Executor, Administrator, Conservator, Guardian
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In Person |
Individual, Joint Tenant, Sole Proprietorship, UGMA, UTMA
Retirement Account
Trust
Business or Organization
Executor, Administrator, Conservator, Guardian
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Automatically |
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An exchange involves the redemption of all or a portion of the shares of one fund and the purchase of shares of another fund.
As an Institutional Class shareholder, you have the privilege of exchanging your Institutional Class shares for Institutional Class shares of other Fidelity funds that offer Advisor classes of shares or for shares of Fidelity funds.
However, you should note the following policies and restrictions governing exchanges:
The fund may terminate or modify the exchange privileges in the future.
Prospectus
Shareholder Information - continued
Other funds may have different exchange restrictions and minimums, and may impose redemption fees of up to 2.00% of the amount exchanged. Check each fund's prospectus for details.
Features
The following features are available to buy and sell shares of the fund.
Automatic Investment and Withdrawal Programs. Fidelity offers convenient services that let you automatically transfer money into your account, between accounts, or out of your account. While automatic investment programs do not guarantee a profit and will not protect you against loss in a declining market, they can be an excellent way to invest for retirement, a home, educational expenses, and other long-term financial goals. Automatic withdrawal or exchange programs can be a convenient way to provide a consistent income flow or to move money between your investments.
Fidelity Advisor Systematic Investment Program |
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Minimum $100 |
Minimum $100 |
Frequency Monthly, bimonthly, quarterly, |
Procedures
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Fidelity Advisor Systematic Withdrawal Program |
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Minimum $100 |
Maximum $50,000 |
Frequency Monthly, quarterly, or |
Procedures
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Other Features. The following other features are also available to buy and sell shares of the fund.
Wire |
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Fidelity Advisor Money Line |
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Prospectus
Shareholder Information - continued
Policies
The following policies apply to you as a shareholder.
Statements and reports that Fidelity sends to you include the following:
To reduce expenses, only one copy of most financial reports and prospectuses may be mailed, even if more than one person in a household holds shares of the fund. Call Fidelity at 1-877-208-0098 if you need additional copies of financial reports or prospectuses. If you do not want the mailing of these documents to be combined with those for other members of your household, call Fidelity at 1-877-208-0098.
You may initiate many transactions by telephone or electronically. Fidelity will not be responsible for any loss, cost, expense, or other liability resulting from unauthorized transactions if it follows reasonable security procedures designed to verify the identity of the investor. Fidelity will request personalized security codes or other information, and may also record calls. For transactions conducted through the Internet, Fidelity recommends the use of an Internet browser with 128-bit encryption. You should verify the accuracy of your confirmation statements upon receipt and notify Fidelity immediately of any discrepancies in your account activity. If you do not want the ability to sell and exchange by telephone, call Fidelity for instructions. Additional documentation may be required from corporations, associations, and certain fiduciaries.
When you sign your account application, you will be asked to certify that your social security or taxpayer identification number (TIN) is correct and that you are not subject to backup withholding for failing to report income to the IRS. If you violate IRS regulations, the IRS can require the fund to withhold an amount subject to the applicable backup withholding rate from your taxable distributions and redemptions.
You may also be asked to provide additional information in order for Fidelity to verify your identity in accordance with requirements under anti-money laundering regulations. Accounts may be restricted and/or closed, and the monies withheld, pending verification of this information or as otherwise required under these and other federal regulations.
If your account balance falls below $1,000 for any reason, including solely due to declines in NAV, you will be given 30 days' notice to reestablish the minimum balance. If you do not increase your balance, Fidelity may close your account and send the proceeds to you. Your shares will be sold at the NAV on the day your account is closed. Accounts not subject to account minimums will not be closed for failure to maintain a minimum balance.
Prospectus
Fidelity may charge a fee for certain services, such as providing historical account documents.
The fund earns dividends, interest, and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. The fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions.
The fund normally pays dividends in April, July, October, and December and pays capital gain distributions in December and January. Beginning in 2007, the fund normally pays capital gain distributions in December.
Distribution Options
When you open an account, specify on your application how you want to receive your distributions. The following distribution options are available for Institutional Class:
1. Reinvestment Option. Your dividends and capital gain distributions will be automatically reinvested in additional Institutional Class shares of the fund. If you do not indicate a choice on your application, you will be assigned this option.
2. Income-Earned Option. Your capital gain distributions will be automatically reinvested in additional Institutional Class shares of the fund. Your dividends will be paid in cash.
3. Cash Option. Your dividends and capital gain distributions will be paid in cash.
4. Directed Dividends® Option. Your dividends will be automatically invested in Institutional Class shares of another identically registered Fidelity fund that offers Advisor classes of shares or shares of identically registered Fidelity funds. Your capital gain distributions will be automatically invested in Institutional Class shares of another identically registered Fidelity fund that offers Advisor classes of shares or shares of identically registered Fidelity funds, automatically reinvested in additional Institutional Class shares of the fund, or paid in cash.
Not all distribution options are available for every account. If the option you prefer is not listed on your account application, or if you want to change your current option, contact your investment professional directly or call Fidelity.
If you elect to receive distributions paid in cash by check and the U.S. Postal Service does not deliver your checks, your distribution option may be converted to the Reinvestment Option. You will not receive interest on amounts represented by uncashed distribution checks.
As with any investment, your investment in the fund could have tax consequences for you. If you are not investing through a tax-advantaged retirement account, you should consider these tax consequences.
Taxes on distributions. Distributions you receive from the fund are subject to federal income tax, and may also be subject to state or local taxes.
Prospectus
Shareholder Information - continued
For federal tax purposes, certain of the fund's distributions, including dividends and distributions of short-term capital gains, are taxable to you as ordinary income, while certain of the fund's distributions, including distributions of long-term capital gains, are taxable to you generally as capital gains. A percentage of certain distributions of dividends may qualify for taxation at long-term capital gains rates (provided certain holding period requirements are met).
<R>If you buy shares when a fund has realized but not yet distributed income or capital gains, you will be "buying a dividend" by paying the full price for the shares and then receiving a portion of the price back in the form of a taxable distribution.</R>
<R>Any taxable distributions you receive from the fund will normally be taxable to you when you receive them, regardless of your distribution option.</R>
<R>Taxes on transactions. Your redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment in the fund generally is the difference between the cost of your shares and the price you receive when you sell them.</R>
Prospectus
The fund is a mutual fund, an investment that pools shareholders' money and invests it toward a specified goal.
FMR is the fund's manager. The address of FMR and its affiliates, unless otherwise indicated below, is 82 Devonshire Street, Boston, Massachusetts 02109.
<R>As of December 31, 2006, FMR had approximately $1.6 billion in discretionary assets under management.</R>
As the manager, FMR has overall responsibility for directing the fund's investments and handling its business affairs.
Fidelity Investments Money Management, Inc. (FIMM), at One Spartan Way, Merrimack, New Hampshire 03054, serves as a sub-adviser for the fund. FIMM may provide investment advisory services for the fund.
<R>FIMM is an affiliate of FMR. As of December 31, 2006, FIMM had approximately $370.3 billion in discretionary assets under management.</R>
FMR Co., Inc. (FMRC) serves as a sub-adviser for the fund. FMRC has day-to-day responsibility for choosing investments for the fund.
<R>FMRC is an affiliate of FMR. As of December 31, 2006, FMRC had approximately $766.7 billion in discretionary assets under management.</R>
Fidelity Research & Analysis Company (FRAC), formerly known as Fidelity Management & Research (Far East) Inc., serves as a sub-adviser for the fund. FRAC, an affiliate of FMR, was organized in 1986 to provide investment research and advice on issuers based outside the United States and currently also provides investment research and advice on domestic issuers. FRAC may provide investment research and advice for the fund and may also provide investment advisory services for the fund.
Affiliates assist FMR with foreign investments:
Prospectus
Fund Services - continued
Dick Habermann is vice president and portfolio manager of Advisor Asset Manager 70%, which he has managed since December 1998. He also manages other Fidelity funds. Since joining Fidelity Investments in 1968, Mr. Habermann has held several positions including portfolio manager, director of research for FMRC, division head for international equities and director of international research, and chief investment officer for Fidelity International Limited (FIL).
The statement of additional information (SAI) provides additional information about the compensation of, any other accounts managed by, and any fund shares held by Mr. Habermann, as well as the managers of the central funds in which the fund is invested as of the date of this prospectus.
From time to time a manager, analyst, or other Fidelity employee may express views regarding a particular company, security, industry, or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
The fund pays a management fee to FMR. The management fee is calculated and paid to FMR every month. The fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve, and multiplying the result by the fund's average net assets throughout the month.
The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above 0.52%, and it drops as total assets under management increase.
<R>For September 2006, the group fee rate was 0.27%. The individual fund fee rate is 0.30%.</R>
<R>The total management fee for the fiscal period ended September 30, 2006, was 0.57% of the fund's average net assets.</R>
FMR pays FIMM, FMRC, and FMR U.K. for providing sub-advisory services. FMR and its affiliates pay FRAC for providing sub-advisory services. FMR pays FIIA for providing sub-advisory services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FRAC in turn pays FIJ for providing sub-advisory services.
The basis for the Board of Trustees approving the management contract and sub-advisory agreements for the fund is available in the fund's annual report for the fiscal period ended September 30, 2006.
Prospectus
FMR may, from time to time, agree to reimburse a class for management fees and other expenses above a specified limit. FMR retains the ability to be repaid by a class if expenses fall below the specified limit prior to the end of the fiscal year. Reimbursement arrangements, which may be discontinued by FMR at any time, can decrease a class's expenses and boost its performance.
The fund is composed of multiple classes of shares. All classes of the fund have a common investment objective and investment portfolio.
FDC distributes Institutional Class's shares.
Intermediaries, including banks, broker-dealers, and other service-providers, may receive from FMR, FDC, and/or their affiliates compensation for their services intended to result in the sale of Institutional Class shares. This compensation may take the form of payments for additional distribution-related activities and/or shareholder services and payments for educational seminars and training, including seminars sponsored by FMR or an affiliate, or by an intermediary. These payments are described in more detail on the following pages and in the SAI.
Institutional Class has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (1940 Act) that recognizes that FMR may use its management fee revenues, as well as its past profits or its resources from any other source, to pay FDC for expenses incurred in connection with providing services intended to result in the sale of Institutional Class shares and/or shareholder support services. FMR, directly or through FDC, may pay significant amounts to intermediaries, such as banks, broker-dealers, and other service-providers, that provide those services. Currently, the Board of Trustees of the fund has authorized such payments for Institutional Class. Please speak with your investment professional to learn more about any payments his or her firm may receive from FMR, FDC, and/or their affiliates, as well as fees and/or commissions the investment professional charges. You should also consult disclosures made by your investment professional at the time of purchase.
If payments made by FMR to FDC or to intermediaries under the Institutional Class's Distribution and Service Plan were considered to be paid out of Institutional Class's assets on an ongoing basis, they might increase the cost of your investment and might cost you more than paying other types of sales charges.
No dealer, sales representative, or any other person has been authorized to give any information or to make any representations, other than those contained in this prospectus and in the related SAI, in connection with the offer contained in this prospectus. If given or made, such other information or representations must not be relied upon as having been authorized by the fund or FDC. This prospectus and the related SAI do not constitute an offer by the fund or by FDC to sell shares of the fund to or to buy shares of the fund from any person to whom it is unlawful to make such offer.
Prospectus
<R>The financial highlights table is intended to help you understand Institutional Class's financial history for the past 5 years. Certain information reflects financial results for a single class share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the class (assuming reinvestment of all dividends and distributions). The annual information has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the fund's financial highlights and financial statements, is included in the fund's annual report. A free copy of the annual report is available upon request.</R>
Selected Per-Share Data and Ratios
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<R>Six months |
<R>Ten months |
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<R>(Unaudited)</R> |
<R>2006F</R> |
<R>2005I</R> |
<R>2004I</R> |
<R>2003I</R> |
<R>2002I</R> |
<R>2001I</R> |
<R>Selected Per-Share Data</R> |
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<R>Net asset value, beginning of period </R> |
<R>$ 12.14</R> |
<R>$ 12.51</R> |
<R>$ 11.14</R> |
<R>$ 9.95</R> |
<R>$ 8.78</R> |
<R>$ 9.85</R> |
<R>$ 11.04</R> |
<R>Income from Investment Operations</R> |
|
|
|
|
|
|
|
<R>Net investment income (loss) D </R> |
<R> .14</R> |
<R> .19</R> |
<R> .14</R> |
<R> .11</R> |
<R> .15</R> |
<R> .16</R> |
<R> .24</R> |
<R>Net realized and unrealized gain (loss) </R> |
<R> .73</R> |
<R> .56</R> |
<R> 1.36</R> |
<R> 1.19</R> |
<R> 1.15</R> |
<R> (1.04)</R> |
<R> (1.21)</R> |
<R>Total from investment operations </R> |
<R> .87</R> |
<R> .75</R> |
<R> 1.50</R> |
<R> 1.30</R> |
<R> 1.30</R> |
<R> (.88)</R> |
<R> (.97)</R> |
<R>Distributions from net investment income </R> |
<R> (.15)</R> |
<R> (.16)</R> |
<R> (.13)</R> |
<R> (.11)</R> |
<R> (.13)</R> |
<R> (.19)</R> |
<R> (.22)</R> |
<R>Distributions from net realized gain </R> |
<R> (.41)</R> |
<R> (.96)</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R>Total distributions </R> |
<R> (.56)</R> |
<R> (1.12)</R> |
<R> (.13)</R> |
<R> (.11)</R> |
<R> (.13)</R> |
<R> (.19)</R> |
<R> (.22)</R> |
<R>Net asset value, end of period </R> |
<R>$ 12.45</R> |
<R>$ 12.14</R> |
<R>$ 12.51</R> |
<R>$ 11.14</R> |
<R>$ 9.95</R> |
<R>$ 8.78</R> |
<R>$ 9.85</R> |
<R>Total Return B, C </R> |
<R> 7.25%</R> |
<R> 6.37%</R> |
<R> 13.56%</R> |
<R> 13.17%</R> |
<R> 15.03%</R> |
<R> (9.07)%</R> |
<R> (8.86)%</R> |
<R>Ratios to Average Net Assets G</R> |
|
|
|
|
|
||
<R>Expenses before reductions </R> |
<R> .99%A</R> |
<R> .97% A</R> |
<R> .93%</R> |
<R> .92%</R> |
<R> 1.13%</R> |
<R> 1.11%</R> |
<R> .95%</R> |
<R>Expenses net of fee waivers, if any </R> |
<R> .99%A</R> |
<R> .97% A</R> |
<R> .93%</R> |
<R> .92%</R> |
<R> 1.13%</R> |
<R> 1.11%</R> |
<R> .95%</R> |
<R>Expenses net of all reductions </R> |
<R> .97%A</R> |
<R> .96% A</R> |
<R> .91%</R> |
<R> .89%</R> |
<R> 1.09%</R> |
<R> 1.07%</R> |
<R> .92%</R> |
<R>Net investment income (loss) </R> |
<R> 2.19%A</R> |
<R> 1.98% A</R> |
<R> 1.17%</R> |
<R> 1.11%</R> |
<R> 1.47%</R> |
<R> 1.84%</R> |
<R> 2.29%</R> |
<R>Supplemental Data</R> |
|
|
|
|
|
|
|
<R>Net assets, end of period (000 omitted) </R> |
<R>$ 4,255</R> |
<R>$ 4,072</R> |
<R>$ 1,768</R> |
<R>$ 787</R> |
<R>$ 707</R> |
<R>$ 5,359</R> |
<R>$ 745</R> |
<R>Portfolio turnover rate E,H </R> |
<R> 16%A</R> |
<R> 105% A</R> |
<R> 125%</R> |
<R> 106%</R> |
<R> 99%</R> |
<R> 120%</R> |
<R> 165%</R> |
A <R>Annualized</R>
B <R>Total returns for periods of less than one year are not annualized.</R>
C <R>Total returns would have been lower had certain expenses not been reduced during the periods shown.</R>
D <R>Calculated based on average shares outstanding during the period.</R>
E <R>Amount does not include the portfolio activity of any underlying Fidelity Central Funds.</R>
F <R>For the ten month period ended September 30. The fund changed its fiscal year from November 30 to September 30, effective September 30, 2006.</R>
G <R>Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expense paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less then .01% to .01%.</R>
H <R>The portfolio turnover rate does not include the activity from in-kind exchanges.</R>
I <R>For the period ended November 30.</R>
Prospectus
Notes
IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT To help the government fight the funding of terrorism and money laundering activities, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT ACT), requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account. For individual investors opening an account: When you open an account, you will be asked for your name, address, date of birth, and other information that will allow Fidelity to identify you. You may also be asked to provide documents that may help to establish your identity, such as your driver's license. For investors other than individuals: When you open an account, you will be asked for the name of the entity, its principal place of business and taxpayer identification number (TIN) and may be requested to provide information on persons with authority or control over the account such as name, residential address, date of birth and social security number. You may also be asked to provide documents, such as drivers' licenses, articles of incorporation, trust instruments or partnership agreements and other information that will help Fidelity identify the entity. |
You can obtain additional information about the fund. A description of the fund's policies and procedures for disclosing its holdings is available in its SAI and on Fidelity's web sites. The SAI also includes more detailed information about the fund and its investments. The SAI is incorporated herein by reference (legally forms a part of the prospectus). The fund's annual and semi-annual reports also include additional information. The fund's annual report includes a discussion of the fund's holdings and recent market conditions and the fund's investment strategies that affected performance.
For a free copy of any of these documents or to request other information or ask questions about the fund, call Fidelity at 1-877-208-0098. In addition, you may visit Fidelity's web site at www.advisor.fidelity.com for a free copy of a prospectus, SAI, or annual or semi-annual report or to request other information.
The SAI, the fund's annual and semi-annual reports and other related materials are available from the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) Database on the SEC's web site (http://www.sec.gov). You can obtain copies of this information, after paying a duplicating fee, by sending a request by e-mail to publicinfo@sec.gov or by writing the Public Reference Section of the SEC, Washington, D.C. 20549-0102. You can also review and copy information about the fund, including the fund's SAI, at the SEC's Public Reference Room in Washington, D.C. Call 1-202-551-8090 for information on the operation of the SEC's Public Reference Room. Investment Company Act of 1940, File Number, 811-03221 |
Fidelity, Fidelity Investments & (Pyramid) Design, Fidelity Advisor Money Line, and Directed Dividends are registered trademarks of FMR Corp.
Portfolio Advisory Services and Fidelity Advisor Asset Manager are service marks of FMR Corp.
The third party marks appearing above are the marks of their respective owners.
<R>1.729819.108 AALI-pro-1106-01</R>
<R>Fidelity Advisor Asset ManagerSM 70%</R>
<R>(formerly Fidelity® Advisor Asset Allocation Fund)</R>
<R>A Fund of Fidelity Charles Street Trust</R>
<R>Class A, Class T, Class B, Class C, and Institutional Class</R>
<R>STATEMENT OF ADDITIONAL INFORMATION</R>
<R>June 29, 2007</R>
This statement of additional information (SAI) is not a prospectus. Portions of the fund's annual reports are incorporated herein. The annual reports are supplied with this SAI.
<R>To obtain a free additional copy of the prospectus or SAI, dated June 29, 2007, or an annual report, please call Fidelity at 1-877-208-0098 or visit Fidelity's web site at www.advisor.fidelity.com.</R>
TABLE OF CONTENTS |
PAGE |
Investment Policies and Limitations |
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Portfolio Transactions |
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Valuation |
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Buying, Selling, and Exchanging Information |
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Distributions and Taxes |
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Trustees and Officers |
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Control of Investment Advisers |
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Management Contract |
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Proxy Voting Guidelines |
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Distribution Services |
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Transfer and Service Agent Agreements |
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Description of the Trust |
|
Financial Statements |
|
Fund Holdings Information |
|
Appendix |
<R>AAL/AALI-ptb-1106-01
1.836166.101</R>
(fidelity_logo_graphic)
82 Devonshire Street, Boston, MA 02109
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the prospectus. Unless otherwise noted, whenever an investment policy or limitation states a maximum percentage of the fund's assets that may be invested in any security or other asset, or sets forth a policy regarding quality standards, such standard or percentage limitation will be determined immediately after and as a result of the fund's acquisition of such security or other asset. Accordingly, any subsequent change in values, net assets, or other circumstances will not be considered when determining whether the investment complies with the fund's investment policies and limitations.
The fund's fundamental investment policies and limitations cannot be changed without approval by a "majority of the outstanding voting securities" (as defined in the Investment Company Act of 1940 (1940 Act)) of the fund. However, except for the fundamental investment limitations listed below, the investment policies and limitations described in this SAI are not fundamental and may be changed without shareholder approval.
The following are the fund's fundamental investment limitations set forth in their entirety.
Diversification
The fund may not with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, or securities of other investment companies) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer.
Senior Securities
The fund may not issue senior securities, except in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise permitted under the Investment Company Act of 1940.
Borrowing
The fund may not borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation.
Underwriting
The fund may not underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities or in connection with investments in other investment companies.
Concentration
The fund may not purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry.
For purposes of the fund's concentration limitation discussed above, with respect to any investment in Fidelity® Money Market Central Fund and/or any non-money market central fund, Fidelity Management & Research Company (FMR) looks through to the holdings of the central fund.
For purposes of the fund's concentration limitation discussed above, FMR may analyze the characteristics of a particular issuer and security and assign an industry or sector classification consistent with those characteristics in the event that the third party classification provider used by FMR does not assign a classification.
Real Estate
The fund may not purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business).
Commodities
The fund may not purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities).
Loans
The fund may not lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements, or to acquisitions of loans, loan participations or other forms of debt instruments.
Pooled Funds
The following investment limitations are not fundamental and may be changed without shareholder approval.
Short Sales
The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short.
Margin Purchases
The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin.
Borrowing
The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of the fundamental borrowing investment limitation).
Illiquid Securities
The fund does not currently intend to purchase any security if, as a result, more than 10% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued.
For purposes of the fund's illiquid securities limitation discussed above, if through a change in values, net assets, or other circumstances, the fund were in a position where more than 10% of its net assets were invested in illiquid securities, it would consider appropriate steps to protect liquidity.
Commodities
Loans
The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 15% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) assuming any unfunded commitments in connection with the acquisition of loans, loan participations, or other forms of debt instruments. (This limitation does not apply to purchases of debt securities, to repurchase agreements, or to acquisitions of loans, loan participations or other forms of debt instruments.)
Pooled Funds
In addition to the fund's fundamental and non-fundamental limitations discussed above:
For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" on page <Click Here>.
The following pages contain more detailed information about types of instruments in which the fund may invest, strategies FMR may employ in pursuit of the fund's investment objective, and a summary of related risks. FMR may not buy all of these instruments or use all of these techniques unless it believes that doing so will help the fund achieve its goal.
Affiliated Bank Transactions. A fund may engage in transactions with financial institutions that are, or may be considered to be, "affiliated persons" of the fund under the 1940 Act. These transactions may involve repurchase agreements with custodian banks; short-term obligations of, and repurchase agreements with, the 50 largest U.S. banks (measured by deposits); municipal securities; U.S. Government securities with affiliated financial institutions that are primary dealers in these securities; short-term currency transactions; and short-term borrowings. In accordance with exemptive orders issued by the Securities and Exchange Commission (SEC), the Board of Trustees has established and periodically reviews procedures applicable to transactions involving affiliated financial institutions.
Asset Allocation The stock class includes domestic and foreign equity securities of all types (other than adjustable rate preferred stocks, which are included in the bond class). Securities in the stock class may include common stocks, fixed-rate preferred stocks (including convertible preferred stocks), warrants, rights, depositary receipts, securities of closed-end investment companies, and other equity securities issued by companies of any size, located anywhere in the world.
The bond class includes all varieties of domestic and foreign fixed-income securities maturing in more than one year. Securities in this asset class may include bonds, notes, adjustable-rate preferred stocks, convertible bonds, mortgage-related and asset-backed securities, domestic and foreign government and government agency securities, zero coupon bonds, and other intermediate and long-term securities. These securities may be denominated in U.S. dollars or foreign currency.
The short-term/money market class includes all types of domestic and foreign short-term and money market instruments. Short-term and money market instruments may include commercial paper, notes, and other corporate debt securities, government securities issued by U.S. or foreign governments or their agencies or instrumentalities, bank deposits and other financial institution obligations, repurchase agreements involving any type of security, and other similar short-term instruments. These instruments may be denominated in U.S. dollars or foreign currency.
FMR may use its judgment to place a security in the most appropriate asset class based on its investment characteristics. Fixed-income securities may be classified in the bond or short-term/money market class according to interest rate sensitivity as well as maturity. The fund may also make other investments that do not fall within these asset classes. In making asset allocation decisions, FMR will evaluate projections of risk, market conditions, economic conditions, volatility, yields, and returns. FMR's management will use database systems to help analyze past situations and trends, research specialists in each of the asset classes to help in securities selection, portfolio management professionals to determine asset allocation and to select individual securities, and its own credit analysis as well as credit analyses provided by rating services.
Asset-Backed Securities represent interests in pools of mortgages, loans, receivables, or other assets. Payment of interest and repayment of principal may be largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds, or other credit enhancements. Asset-backed security values may also be affected by other factors including changes in interest rates, the availability of information concerning the pool and its structure, the creditworthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities providing the credit enhancement. In addition, these securities may be subject to prepayment risk.
Borrowing. The fund may borrow from banks or from other funds advised by FMR or its affiliates, or through reverse repurchase agreements. If the fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If the fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage.
Cash Management. A fund can hold uninvested cash or can invest it in cash equivalents such as money market securities, repurchase agreements, or shares of money market or short-term bond funds. Generally, these securities offer less potential for gains than other types of securities.
Central Funds are special types of investment vehicles created by Fidelity for use by the Fidelity funds and other advisory clients. FMR uses central funds to invest in particular security types or investment disciplines, or for cash management. Central funds incur certain costs related to their investment activity (such as custodial fees and expenses), but do not pay additional management fees to Fidelity. The investment results of the portions of the fund's assets invested in the central funds will be based upon the investment results of those funds.
Common Stock represents an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock.
Convertible Securities are bonds, debentures, notes, or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at a stated exchange ratio. A convertible security may also be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a fund is called for redemption or conversion, the fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a third party.
Convertible securities generally have less potential for gain or loss than common stocks. Convertible securities generally provide yields higher than the underlying common stocks, but generally lower than comparable non-convertible securities. Because of this higher yield, convertible securities generally sell at prices above their "conversion value," which is the current market value of the stock to be received upon conversion. The difference between this conversion value and the price of convertible securities will vary over time depending on changes in the value of the underlying common stocks and interest rates. When the underlying common stocks decline in value, convertible securities will tend not to decline to the same extent because of the interest or dividend payments and the repayment of principal at maturity for certain types of convertible securities. However, securities that are convertible other than at the option of the holder generally do not limit the potential for loss to the same extent as securities convertible at the option of the holder. When the underlying common stocks rise in value, the value of convertible securities may also be expected to increase. At the same time, however, the difference between the market value of convertible securities and their conversion value will narrow, which means that the value of convertible securities will generally not increase to the same extent as the value of the underlying common stocks. Because convertible securities may also be interest-rate sensitive, their value may increase as interest rates fall and decrease as interest rates rise. Convertible securities are also subject to credit risk, and are often lower-quality securities.
Debt Securities are used by issuers to borrow money. The issuer usually pays a fixed, variable, or floating rate of interest, and must repay the amount borrowed, usually at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay interest but are sold at a deep discount from their face values. Debt securities include corporate bonds, government securities, repurchase agreements, and mortgage and other asset-backed securities.
Exposure to Foreign Markets. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations may involve significant risks in addition to the risks inherent in U.S. investments.
Foreign investments involve risks relating to local political, economic, regulatory, or social instability, military action or unrest, or adverse diplomatic developments, and may be affected by actions of foreign governments adverse to the interests of U.S. investors. Such actions may include expropriation or nationalization of assets, confiscatory taxation, restrictions on U.S. investment or on the ability to repatriate assets or convert currency into U.S. dollars, or other government intervention. Additionally, governmental issuers of foreign debt securities may be unwilling to pay interest and repay principal when due and may require that the conditions for payment be renegotiated. There is no assurance that FMR will be able to anticipate these potential events or counter their effects. In addition, the value of securities denominated in foreign currencies and of dividends and interest paid with respect to such securities will fluctuate based on the relative strength of the U.S. dollar.
It is anticipated that in most cases the best available market for foreign securities will be on an exchange or in over-the-counter (OTC) markets located outside of the United States. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers may be less liquid and more volatile than securities of comparable U.S. issuers. Foreign security trading, settlement and custodial practices (including those involving securities settlement where fund assets may be released prior to receipt of payment) are often less developed than those in U.S. markets, and may result in increased risk or substantial delays in the event of a failed trade or the insolvency of, or breach of duty by, a foreign broker-dealer, securities depository, or foreign subcustodian. In addition, the costs associated with foreign investments, including withholding taxes, brokerage commissions, and custodial costs, are generally higher than with U.S. investments.
Foreign markets may offer less protection to investors than U.S. markets. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to U.S. issuers. Adequate public information on foreign issuers may not be available, and it may be difficult to secure dividends and information regarding corporate actions on a timely basis. In general, there is less overall governmental supervision and regulation of securities exchanges, brokers, and listed companies than in the United States. OTC markets tend to be less regulated than stock exchange markets and, in certain countries, may be totally unregulated. Regulatory enforcement may be influenced by economic or political concerns, and investors may have difficulty enforcing their legal rights in foreign countries.
Some foreign securities impose restrictions on transfer within the United States or to U.S. persons. Although securities subject to such transfer restrictions may be marketable abroad, they may be less liquid than foreign securities of the same class that are not subject to such restrictions.
American Depositary Receipts (ADRs) as well as other "hybrid" forms of ADRs, including European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs), are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the United States or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution in the issuer's home country. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. ADRs are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. However, ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. These risks include foreign exchange risk as well as the political and economic risks of the underlying issuer's country.
The risks of foreign investing may be magnified for investments in emerging markets. Security prices in emerging markets can be significantly more volatile than those in more developed markets, reflecting the greater uncertainties of investing in less established markets and economies. In particular, countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets, and may have less protection of property rights than more developed countries. The economies of countries with emerging markets may be based on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme and volatile debt burdens or inflation rates. Local securities markets may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of holdings difficult or impossible at times.
Foreign Currency Transactions. A fund may conduct foreign currency transactions on a spot (i.e., cash) or forward basis (i.e., by entering into forward contracts to purchase or sell foreign currencies). Although foreign exchange dealers generally do not charge a fee for such conversions, they do realize a profit based on the difference between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency at one rate, while offering a lesser rate of exchange should the counterparty desire to resell that currency to the dealer. Forward contracts are customized transactions that require a specific amount of a currency to be delivered at a specific exchange rate on a specific date or range of dates in the future. Forward contracts are generally traded in an interbank market directly between currency traders (usually large commercial banks) and their customers. The parties to a forward contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated currency exchange.
The following discussion summarizes the principal currency management strategies involving forward contracts that could be used by a fund. A fund may also use swap agreements, indexed securities, and options and futures contracts relating to foreign currencies for the same purposes.
A "settlement hedge" or "transaction hedge" is designed to protect a fund against an adverse change in foreign currency values between the date a security is purchased or sold and the date on which payment is made or received. Entering into a forward contract for the purchase or sale of the amount of foreign currency involved in an underlying security transaction for a fixed amount of U.S. dollars "locks in" the U.S. dollar price of the security. Forward contracts to purchase or sell a foreign currency may also be used by a fund in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected by FMR.
A fund may also use forward contracts to hedge against a decline in the value of existing investments denominated in foreign currency. For example, if a fund owned securities denominated in pounds sterling, it could enter into a forward contract to sell pounds sterling in return for U.S. dollars to hedge against possible declines in the pound's value. Such a hedge, sometimes referred to as a "position hedge," would tend to offset both positive and negative currency fluctuations, but would not offset changes in security values caused by other factors. A fund could also hedge the position by selling another currency expected to perform similarly to the pound sterling. This type of hedge, sometimes referred to as a "proxy hedge," could offer advantages in terms of cost, yield, or efficiency, but generally would not hedge currency exposure as effectively as a direct hedge into U.S. dollars. Proxy hedges may result in losses if the currency used to hedge does not perform similarly to the currency in which the hedged securities are denominated.
A fund may enter into forward contracts to shift its investment exposure from one currency into another. This may include shifting exposure from U.S. dollars to a foreign currency, or from one foreign currency to another foreign currency. This type of strategy, sometimes known as a "cross-hedge," will tend to reduce or eliminate exposure to the currency that is sold, and increase exposure to the currency that is purchased, much as if a fund had sold a security denominated in one currency and purchased an equivalent security denominated in another. Cross-hedges protect against losses resulting from a decline in the hedged currency, but will cause a fund to assume the risk of fluctuations in the value of the currency it purchases.
Successful use of currency management strategies will depend on FMR's skill in analyzing currency values. Currency management strategies may substantially change a fund's investment exposure to changes in currency exchange rates and could result in losses to a fund if currencies do not perform as FMR anticipates. For example, if a currency's value rose at a time when FMR had hedged a fund by selling that currency in exchange for dollars, a fund would not participate in the currency's appreciation. If FMR hedges currency exposure through proxy hedges, a fund could realize currency losses from both the hedge and the security position if the two currencies do not move in tandem. Similarly, if FMR increases a fund's exposure to a foreign currency and that currency's value declines, a fund will realize a loss. There is no assurance that FMR's use of currency management strategies will be advantageous to a fund or that it will hedge at appropriate times.
Fund's Rights as an Investor. The fund does not intend to direct or administer the day-to-day operations of any company. A fund, however, may exercise its rights as a shareholder or lender and may communicate its views on important matters of policy to management, the Board of Directors, shareholders of a company, and holders of other securities of the company when FMR determines that such matters could have a significant effect on the value of the fund's investment in the company. The activities in which a fund may engage, either individually or in conjunction with others, may include, among others, supporting or opposing proposed changes in a company's corporate structure or business activities; seeking changes in a company's directors or management; seeking changes in a company's direction or policies; seeking the sale or reorganization of the company or a portion of its assets; supporting or opposing third-party takeover efforts; supporting the filing of a bankruptcy petition; or foreclosing on collateral securing a security. This area of corporate activity is increasingly prone to litigation and it is possible that a fund could be involved in lawsuits related to such activities. FMR will monitor such activities with a view to mitigating, to the extent possible, the risk of litigation against a fund and the risk of actual liability if a fund is involved in litigation. No guarantee can be made, however, that litigation against a fund will not be undertaken or liabilities incurred. The fund's proxy voting guidelines are included in this SAI.
Futures, Options, and Swaps. The following paragraphs pertain to futures, options, and swaps: Combined Positions, Correlation of Price Changes, Futures Contracts, Futures Margin Payments, Limitations on Futures, Options, and Swap Transactions, Liquidity of Options and Futures Contracts, Options and Futures Relating to Foreign Currencies, OTC Options, Purchasing Put and Call Options, Writing Put and Call Options, and Swap Agreements.
Combined Positions involve purchasing and writing options in combination with each other, or in combination with futures or forward contracts, to adjust the risk and return characteristics of the overall position. For example, purchasing a put option and writing a call option on the same underlying instrument would construct a combined position whose risk and return characteristics are similar to selling a futures contract. Another possible combined position would involve writing a call option at one strike price and buying a call option at a lower price, to reduce the risk of the written call option in the event of a substantial price increase. Because combined options positions involve multiple trades, they result in higher transaction costs and may be more difficult to open and close out.
Correlation of Price Changes. Because there are a limited number of types of exchange-traded options and futures contracts, it is likely that the standardized contracts available will not match a fund's current or anticipated investments exactly. A fund may invest in options and futures contracts based on securities with different issuers, maturities, or other characteristics from the securities in which the fund typically invests, which involves a risk that the options or futures position will not track the performance of the fund's other investments.
Options and futures prices can also diverge from the prices of their underlying instruments, even if the underlying instruments match a fund's investments well. Options and futures prices are affected by such factors as current and anticipated short-term interest rates, changes in volatility of the underlying instrument, and the time remaining until expiration of the contract, which may not affect security prices the same way. Imperfect correlation may also result from differing levels of demand in the options and futures markets and the securities markets, from structural differences in how options and futures and securities are traded, or from imposition of daily price fluctuation limits or trading halts. A fund may purchase or sell options and futures contracts with a greater or lesser value than the securities it wishes to hedge or intends to purchase in order to attempt to compensate for differences in volatility between the contract and the securities, although this may not be successful in all cases. If price changes in a fund's options or futures positions are poorly correlated with its other investments, the positions may fail to produce anticipated gains or result in losses that are not offset by gains in other investments.
Futures Contracts. In purchasing a futures contract, the buyer agrees to purchase a specified underlying instrument at a specified future date. In selling a futures contract, the seller agrees to sell a specified underlying instrument at a specified future date. The price at which the purchase and sale will take place is fixed when the buyer and seller enter into the contract. Some currently available futures contracts are based on specific securities, such as U.S. Treasury bonds or notes, some are based on indices of securities prices, such as the Standard & Poor's 500 IndexSM (S&P 500®), and some are based on Eurodollars. Futures can be held until their delivery dates, or can be closed out before then if a liquid secondary market is available.
Positions in Eurodollar futures reflect market expectations of forward levels of three-month London Interbank Offered Rate (LIBOR) rates.
The value of a futures contract tends to increase and decrease in tandem with the value of its underlying instrument. Therefore, purchasing futures contracts will tend to increase a fund's exposure to positive and negative price fluctuations in the underlying instrument, much as if it had purchased the underlying instrument directly. When a fund sells a futures contract, by contrast, the value of its futures position will tend to move in a direction contrary to the market. Selling futures contracts, therefore, will tend to offset both positive and negative market price changes, much as if the underlying instrument had been sold.
Futures Margin Payments. The purchaser or seller of a futures contract is not required to deliver or pay for the underlying instrument unless the contract is held until the delivery date. However, both the purchaser and seller are required to deposit "initial margin" with a futures broker, known as a futures commission merchant (FCM), when the contract is entered into. Initial margin deposits are typically equal to a percentage of the contract's value. If the value of either party's position declines, that party will be required to make additional "variation margin" payments to settle the change in value on a daily basis. The party that has a gain may be entitled to receive all or a portion of this amount. Initial and variation margin payments do not constitute purchasing securities on margin for purposes of a fund's investment limitations. In the event of the bankruptcy or insolvency of an FCM that holds margin on behalf of a fund, the fund may be entitled to return of margin owed to it only in proportion to the amount received by the FCM's other customers, potentially resulting in losses to the fund. A fund is required to segregate liquid assets equivalent to the fund's outstanding obligations under the contract in excess of the initial margin and variation margin, if any.
Limitations on Futures, Options, and Swap Transactions. The trust, on behalf of the fund, has filed with the National Futures Association a notice claiming an exclusion from the definition of the term "commodity pool operator" (CPO) under the Commodity Exchange Act, as amended, and the rules of the Commodity Futures Trading Commission promulgated thereunder, with respect to the fund's operation. Accordingly, the fund is not subject to registration or regulation as a CPO.
The fund will not: (a) sell futures contracts, purchase put options, write call options, or enter into swap agreements if, as a result, more than 25% of the fund's total assets would be hedged with futures and/or options and/or swap agreements under normal conditions; (b) purchase futures contracts, write put options, or enter into swap agreements (other than swaps entered into for hedging purposes under (a)) if, as a result, the fund's total obligations upon settlement or exercise of purchased futures contracts and written put options plus the notional amount of any such swaps would exceed 25% of its total assets under normal conditions; or (c) purchase call options if, as a result, the current value of option premiums for call options purchased by the fund would exceed 5% of the fund's total assets. These limitations do not apply to options attached to or acquired or traded together with their underlying securities, and do not apply to securities that incorporate features similar to futures, options, or swaps.
The above limitations on the fund's investments in futures contracts, options, and swaps, and the fund's policies regarding futures contracts, options, and swaps discussed elsewhere in this SAI are not fundamental policies and may be changed as regulatory agencies permit.
Liquidity of Options and Futures Contracts. There is no assurance a liquid secondary market will exist for any particular options or futures contract at any particular time. Options may have relatively low trading volume and liquidity if their strike prices are not close to the underlying instrument's current price. In addition, exchanges may establish daily price fluctuation limits for options and futures contracts, and may halt trading if a contract's price moves upward or downward more than the limit in a given day. On volatile trading days when the price fluctuation limit is reached or a trading halt is imposed, it may be impossible to enter into new positions or close out existing positions. If the secondary market for a contract is not liquid because of price fluctuation limits or otherwise, it could prevent prompt liquidation of unfavorable positions, and potentially could require a fund to continue to hold a position until delivery or expiration regardless of changes in its value. As a result, a fund's access to other assets held to cover its options or futures positions could also be impaired.
Options and Futures Relating to Foreign Currencies. Currency futures contracts are similar to forward currency exchange contracts, except that they are traded on exchanges (and have margin requirements) and are standardized as to contract size and delivery date. Most currency futures contracts call for payment or delivery in U.S. dollars. The underlying instrument of a currency option may be a foreign currency, which generally is purchased or delivered in exchange for U.S. dollars, or may be a futures contract. The purchaser of a currency call obtains the right to purchase the underlying currency, and the purchaser of a currency put obtains the right to sell the underlying currency.
The uses and risks of currency options and futures are similar to options and futures relating to securities or indices, as discussed above. A fund may purchase and sell currency futures and may purchase and write currency options to increase or decrease its exposure to different foreign currencies. Currency options may also be purchased or written in conjunction with each other or with currency futures or forward contracts. Currency futures and options values can be expected to correlate with exchange rates, but may not reflect other factors that affect the value of a fund's investments. A currency hedge, for example, should protect a Yen-denominated security from a decline in the Yen, but will not protect a fund against a price decline resulting from deterioration in the issuer's creditworthiness. Because the value of a fund's foreign-denominated investments changes in response to many factors other than exchange rates, it may not be possible to match the amount of currency options and futures to the value of the fund's investments exactly over time.
OTC Options. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of OTC options (options not traded on exchanges) generally are established through negotiation with the other party to the option contract. While this type of arrangement allows the purchaser or writer greater flexibility to tailor an option to its needs, OTC options generally are less liquid and involve greater credit risk than exchange-traded options, which are guaranteed by the clearing organization of the exchanges where they are traded.
Purchasing Put and Call Options. By purchasing a put option, the purchaser obtains the right (but not the obligation) to sell the option's underlying instrument at a fixed strike price. In return for this right, the purchaser pays the current market price for the option (known as the option premium). Options have various types of underlying instruments, including specific securities, indices of securities prices, and futures contracts. The purchaser may terminate its position in a put option by allowing it to expire or by exercising the option. If the option is allowed to expire, the purchaser will lose the entire premium. If the option is exercised, the purchaser completes the sale of the underlying instrument at the strike price. A purchaser may also terminate a put option position by closing it out in the secondary market at its current price, if a liquid secondary market exists.
The buyer of a typical put option can expect to realize a gain if security prices fall substantially. However, if the underlying instrument's price does not fall enough to offset the cost of purchasing the option, a put buyer can expect to suffer a loss (limited to the amount of the premium, plus related transaction costs).
The features of call options are essentially the same as those of put options, except that the purchaser of a call option obtains the right to purchase, rather than sell, the underlying instrument at the option's strike price. A call buyer typically attempts to participate in potential price increases of the underlying instrument with risk limited to the cost of the option if security prices fall. At the same time, the buyer can expect to suffer a loss if security prices do not rise sufficiently to offset the cost of the option.
Writing Put and Call Options. The writer of a put or call option takes the opposite side of the transaction from the option's purchaser. In return for receipt of the premium, the writer assumes the obligation to pay the strike price for the option's underlying instrument if the other party to the option chooses to exercise it. The writer may seek to terminate a position in a put option before exercise by closing out the option in the secondary market at its current price. If the secondary market is not liquid for a put option, however, the writer must continue to be prepared to pay the strike price while the option is outstanding, regardless of price changes. When writing an option on a futures contract, a fund will be required to make margin payments to an FCM as described above for futures contracts.
If security prices rise, a put writer would generally expect to profit, although its gain would be limited to the amount of the premium it received. If security prices remain the same over time, it is likely that the writer will also profit, because it should be able to close out the option at a lower price. If security prices fall, the put writer would expect to suffer a loss. This loss should be less than the loss from purchasing the underlying instrument directly, however, because the premium received for writing the option should mitigate the effects of the decline.
Writing a call option obligates the writer to sell or deliver the option's underlying instrument, in return for the strike price, upon exercise of the option. The characteristics of writing call options are similar to those of writing put options, except that writing calls generally is a profitable strategy if prices remain the same or fall. Through receipt of the option premium, a call writer mitigates the effects of a price decline. At the same time, because a call writer must be prepared to deliver the underlying instrument in return for the strike price, even if its current value is greater, a call writer gives up some ability to participate in security price increases.
Swap Agreements can be individually negotiated and structured to include exposure to a variety of different types of investments or market factors. Depending on their structure, swap agreements may increase or decrease a fund's exposure to long- or short-term interest rates (in the United States or abroad), foreign currency values, mortgage securities, corporate borrowing rates, or other factors such as security prices or inflation rates. Swap agreements can take many different forms and are known by a variety of names, including interest rate swaps (where the parties exchange a floating rate for a fixed rate), total return swaps (where the parties exchange a floating rate for the total return of a security or index), and credit default swaps (where one party pays a fixed rate and the other agrees to buy a specific issuer's debt at par upon the occurrence of certain agreed events, including for example, if the issuer is bankrupt, defaults on any of its debt obligations or makes arrangements with a creditor to modify a debt obligation).
In a typical cap or floor agreement, one party agrees to make payments only under specified circumstances, usually in return for payment of a fee by the other party. For example, the buyer of an interest rate cap obtains the right to receive payments to the extent that a specified interest rate exceeds an agreed-upon level, while the seller of an interest rate floor is obligated to make payments to the extent that a specified interest rate falls below an agreed-upon level. An interest rate collar combines elements of buying a cap and selling a floor.
Swap agreements will tend to shift a fund's investment exposure from one type of investment to another. For example, if the fund agreed to exchange payments in dollars for payments in foreign currency, the swap agreement would tend to decrease the fund's exposure to U.S. interest rates and increase its exposure to foreign currency and interest rates. Caps and floors have an effect similar to buying or writing options. Depending on how they are used, swap agreements may increase or decrease the overall volatility of a fund's investments and its share price and yield.
Swap agreements also may allow a fund to acquire or reduce credit exposure to a particular issuer. The most significant factor in the performance of swap agreements is the change in the factors that determine the amounts of payments due to and from a fund. If a swap agreement calls for payments by the fund, the fund must be prepared to make such payments when due. In the case of a physically settled credit default swap written by the fund, the fund must be prepared to pay par for and take possession of eligible debt of a defaulted issuer. If a swap counterparty's creditworthiness declines, the risk that they may not perform may increase, potentially resulting in a loss to the fund. In the case of a credit default swap written by the fund, the fund will experience a loss if a credit event occurs and the credit of the underlying referenced entity (the debt issuer as to which credit protection has been written) has deteriorated. Although there can be no assurance that the fund will be able to do so, the fund may be able to reduce or eliminate its exposure under a swap agreement either by assignment or other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. The fund may have limited ability to eliminate its exposure under a credit default swap if the credit of the underlying referenced entity has declined.
Illiquid Securities cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. Difficulty in selling securities may result in a loss or may be costly to a fund. Under the supervision of the Board of Trustees, FMR determines the liquidity of a fund's investments and, through reports from FMR, the Board monitors investments in illiquid securities. In determining the liquidity of a fund's investments, FMR may consider various factors, including (1) the frequency and volume of trades and quotations, (2) the number of dealers and prospective purchasers in the marketplace, (3) dealer undertakings to make a market, and (4) the nature of the security and the market in which it trades (including any demand, put or tender features, the mechanics and other requirements for transfer, any letters of credit or other credit enhancement features, any ratings, the number of holders, the method of soliciting offers, the time required to dispose of the security, and the ability to assign or offset the rights and obligations of the security).
Indexed Securities are instruments whose prices are indexed to the prices of other securities, securities indices, currencies, precious metals or other commodities, or other financial indicators. Indexed securities typically, but not always, are debt securities or deposits whose value at maturity or coupon rate is determined by reference to a specific instrument or statistic.
Gold-indexed securities typically provide for a maturity value that depends on the price of gold, resulting in a security whose price tends to rise and fall together with gold prices. Currency-indexed securities typically are short-term to intermediate-term debt securities whose maturity values or interest rates are determined by reference to the values of one or more specified foreign currencies, and may offer higher yields than U.S. dollar-denominated securities. Currency-indexed securities may be positively or negatively indexed; that is, their maturity value may increase when the specified currency value increases, resulting in a security that performs similarly to a foreign-denominated instrument, or their maturity value may decline when foreign currencies increase, resulting in a security whose price characteristics are similar to a put on the underlying currency. Currency-indexed securities may also have prices that depend on the values of a number of different foreign currencies relative to each other.
The performance of indexed securities depends to a great extent on the performance of the security, currency, or other instrument to which they are indexed, and may also be influenced by interest rate changes in the United States and abroad. Indexed securities may be more volatile than the underlying instruments. Indexed securities are also subject to the credit risks associated with the issuer of the security, and their values may decline substantially if the issuer's creditworthiness deteriorates. Recent issuers of indexed securities have included banks, corporations, and certain U.S. Government agencies.
Advisor Asset Manager 70% may purchase securities indexed to the price of precious metals as an alternative to direct investment in precious metals. Because the value of these securities is directly linked to the price of gold or other precious metals, they involve risks and pricing characteristics similar to direct investments in precious metals. The fund will purchase precious metals-indexed securities only when FMR is satisfied with the creditworthiness of the issuers liable for payment. The securities generally will earn a nominal rate of interest while held by the fund, and may have maturities of one year or more. In addition, the securities may be subject to being put by the fund to the issuer, with payment to be received on no more than seven days' notice. The put feature would ensure the liquidity of the notes in the absence of an active secondary market.
Interfund Borrowing and Lending Program. Pursuant to an exemptive order issued by the SEC, a fund may lend money to, and borrow money from, other funds advised by FMR or its affiliates. A fund will borrow through the program only when the costs are equal to or lower than the cost of bank loans, and will lend through the program only when the returns are higher than those available from an investment in repurchase agreements. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one day's notice. A fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
<R>Investment-Grade Debt Securities. Investment-grade debt securities include all types of debt instruments that are of medium and high-quality. Investment-grade debt securities include repurchase agreements collateralized by U.S. Government securities as well as repurchase agreements collateralized by equity securities, non-investment-grade debt, and all other instruments in which a fund can perfect a security interest, provided the repurchase agreement counterparty has an investment-grade rating. Some investment-grade debt securities may possess speculative characteristics and may be more sensitive to economic changes and to changes in the financial conditions of issuers. An investment-grade rating means the security or issuer is rated investment-grade by Moody's® Investors Service, Standard & Poor's® (S&P®), Fitch Inc., Dominion Bond Rating Service Limited, or another credit rating agency designated as a nationally recognized statistical rating organization (NRSRO) by the SEC, or is unrated but considered to be of equivalent quality by FMR.</R>
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates (loans and loan participations), to suppliers of goods or services (trade claims or other receivables), or to other parties. Direct debt instruments involve a risk of loss in case of default or insolvency of the borrower and may offer less legal protection to the purchaser in the event of fraud or misrepresentation, or there may be a requirement that a fund supply additional cash to a borrower on demand.
Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the borrower for payment of interest and repayment of principal. If scheduled interest or principal payments are not made, the value of the instrument may be adversely affected. Loans that are fully secured provide more protections than an unsecured loan in the event of failure to make scheduled interest or principal payments. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the borrower's obligation, or that the collateral could be liquidated. Indebtedness of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative. Borrowers that are in bankruptcy or restructuring may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Direct indebtedness of developing countries also involves a risk that the governmental entities responsible for the repayment of the debt may be unable, or unwilling, to pay interest and repay principal when due.
Investments in loans through direct assignment of a financial institution's interests with respect to a loan may involve additional risks. For example, if a loan is foreclosed, the purchaser could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, a purchaser could be held liable as a co-lender. Direct debt instruments may also involve a risk of insolvency of the lending bank or other intermediary.
A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. Unless, under the terms of the loan or other indebtedness, the purchaser has direct recourse against the borrower, the purchaser may have to rely on the agent to apply appropriate credit remedies against a borrower. If assets held by the agent for the benefit of a purchaser were determined to be subject to the claims of the agent's general creditors, the purchaser might incur certain costs and delays in realizing payment on the loan or loan participation and could suffer a loss of principal or interest.
Direct indebtedness may include letters of credit, revolving credit facilities, or other standby financing commitments that obligate purchasers to make additional cash payments on demand. These commitments may have the effect of requiring a purchaser to increase its investment in a borrower at a time when it would not otherwise have done so, even if the borrower's condition makes it unlikely that the amount will ever be repaid.
The fund limits the amount of total assets that it will invest in any one issuer or in issuers within the same industry (see the fund's investment limitations). For purposes of these limitations, a fund generally will treat the borrower as the "issuer" of indebtedness held by the fund. In the case of loan participations where a bank or other lending institution serves as financial intermediary between a fund and the borrower, if the participation does not shift to the fund the direct debtor-creditor relationship with the borrower, SEC interpretations require a fund, in appropriate circumstances, to treat both the lending bank or other lending institution and the borrower as "issuers" for these purposes. Treating a financial intermediary as an issuer of indebtedness may restrict a fund's ability to invest in indebtedness related to a single financial intermediary, or a group of intermediaries engaged in the same industry, even if the underlying borrowers represent many different companies and industries.
Lower-Quality Debt Securities. Lower-quality debt securities include all types of debt instruments that have poor protection with respect to the payment of interest and repayment of principal, or may be in default. These securities are often considered to be speculative and involve greater risk of loss or price changes due to changes in the issuer's capacity to pay. The market prices of lower-quality debt securities may fluctuate more than those of higher-quality debt securities and may decline significantly in periods of general economic difficulty, which may follow periods of rising interest rates.
The market for lower-quality debt securities may be thinner and less active than that for higher-quality debt securities, which can adversely affect the prices at which the former are sold. Adverse publicity and changing investor perceptions may affect the liquidity of lower-quality debt securities and the ability of outside pricing services to value lower-quality debt securities.
Because the risk of default is higher for lower-quality debt securities, FMR's research and credit analysis are an especially important part of managing securities of this type. FMR will attempt to identify those issuers of high-yielding securities whose financial condition is adequate to meet future obligations, has improved, or is expected to improve in the future. FMR's analysis focuses on relative values based on such factors as interest or dividend coverage, asset coverage, earnings prospects, and the experience and managerial strength of the issuer.
A fund may choose, at its expense or in conjunction with others, to pursue litigation or otherwise to exercise its rights as a security holder to seek to protect the interests of security holders if it determines this to be in the best interest of the fund's shareholders.
Mortgage Securities are issued by government and non-government entities such as banks, mortgage lenders, or other institutions. A mortgage security is an obligation of the issuer backed by a mortgage or pool of mortgages or a direct interest in an underlying pool of mortgages. Some mortgage securities, such as collateralized mortgage obligations (or "CMOs"), make payments of both principal and interest at a range of specified intervals; others make semiannual interest payments at a predetermined rate and repay principal at maturity (like a typical bond). Mortgage securities are based on different types of mortgages, including those on commercial real estate or residential properties. Stripped mortgage securities are created when the interest and principal components of a mortgage security are separated and sold as individual securities. In the case of a stripped mortgage security, the holder of the "principal-only" security (PO) receives the principal payments made by the underlying mortgage, while the holder of the "interest-only" security (IO) receives interest payments from the same underlying mortgage.
Fannie Maes and Freddie Macs are pass-through securities issued by Fannie Mae and Freddie Mac, respectively. Fannie Mae and Freddie Mac, which guarantee payment of interest and repayment of principal on Fannie Maes and Freddie Macs, respectively, are federally chartered corporations supervised by the U.S. Government that act as governmental instrumentalities under authority granted by Congress. Fannie Mae and Freddie Mac are authorized to borrow from the U.S. Treasury to meet their obligations. Fannie Maes and Freddie Macs are not backed by the full faith and credit of the U.S. Government.
The value of mortgage securities may change due to shifts in the market's perception of issuers and changes in interest rates. In addition, regulatory or tax changes may adversely affect the mortgage securities market as a whole. Non-government mortgage securities may offer higher yields than those issued by government entities, but also may be subject to greater price changes than government issues. Mortgage securities are subject to prepayment risk, which is the risk that early principal payments made on the underlying mortgages, usually in response to a reduction in interest rates, will result in the return of principal to the investor, causing it to be invested subsequently at a lower current interest rate. Alternatively, in a rising interest rate environment, mortgage security values may be adversely affected when prepayments on underlying mortgages do not occur as anticipated, resulting in the extension of the security's effective maturity and the related increase in interest rate sensitivity of a longer-term instrument. The prices of stripped mortgage securities tend to be more volatile in response to changes in interest rates than those of non-stripped mortgage securities.
To earn additional income for a fund, FMR may use a trading strategy that involves selling (or buying) mortgage securities and simultaneously agreeing to purchase (or sell) mortgage securities on a later date at a set price. This trading strategy may increase interest rate exposure and result in an increased turnover of the fund's portfolio which increases costs and may increase taxable gains.
Precious Metals. Precious metals, such as gold, silver, platinum, and palladium, at times have been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable monetary and political policies such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. The prices of gold and other precious metals, however, are less subject to local and company-specific factors than securities of individual companies. As a result, precious metals may be more or less volatile in price than securities of companies engaged in precious metals-related businesses. Investments in precious metals can present concerns such as delivery, storage and maintenance, possible illiquidity, and the unavailability of accurate market valuations. Although precious metals can be purchased in any form, including bullion and coins, FMR intends to purchase only those forms of precious metals that are readily marketable and that can be stored in accordance with custody regulations applicable to mutual funds. A fund may incur higher custody and transaction costs for precious metals than for securities. Also, precious metals investments do not pay income.
For a fund to qualify as a regulated investment company under current federal tax law, gains from selling precious metals may not exceed 10% of the fund's gross income for its taxable year. This tax requirement could cause a fund to hold or sell precious metals or securities when it would not otherwise do so.
Preferred Stock represents an equity or ownership interest in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred and common stock.
Real Estate Investment Trusts. Equity real estate investment trusts own real estate properties, while mortgage real estate investment trusts make construction, development, and long-term mortgage loans. Their value may be affected by changes in the value of the underlying property of the trusts, the creditworthiness of the issuer, property taxes, interest rates, and tax and regulatory requirements, such as those relating to the environment. Both types of trusts are dependent upon management skill, are not diversified, and are subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and the possibility of failing to qualify for tax-free status of income under the Internal Revenue Code and failing to maintain exemption from the 1940 Act.
Repurchase Agreements involve an agreement to purchase a security and to sell that security back to the original seller at an agreed-upon price. The resale price reflects the purchase price plus an agreed-upon incremental amount which is unrelated to the coupon rate or maturity of the purchased security. As protection against the risk that the original seller will not fulfill its obligation, the securities are held in a separate account at a bank, marked-to-market daily, and maintained at a value at least equal to the sale price plus the accrued incremental amount. The value of the security purchased may be more or less than the price at which the counterparty has agreed to purchase the security. In addition, delays or losses could result if the other party to the agreement defaults or becomes insolvent. The fund will engage in repurchase agreement transactions with parties whose creditworthiness has been reviewed and found satisfactory by FMR.
Restricted Securities are subject to legal restrictions on their sale. Difficulty in selling securities may result in a loss or be costly to a fund. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (1933 Act), or in a registered public offering. Where registration is required, the holder of a registered security may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, the holder might obtain a less favorable price than prevailed when it decided to seek registration of the security.
Reverse Repurchase Agreements. In a reverse repurchase agreement, a fund sells a security to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase that security at an agreed-upon price and time. The fund will enter into reverse repurchase agreements with parties whose creditworthiness has been reviewed and found satisfactory by FMR. Such transactions may increase fluctuations in the market value of fund assets and may be viewed as a form of leverage.
Securities Lending. A fund may lend securities to parties such as broker-dealers or other institutions, including Fidelity Brokerage Services LLC (FBS LLC). FBS LLC is a member of the New York Stock Exchange (NYSE) and an indirect subsidiary of FMR Corp.
Securities lending allows a fund to retain ownership of the securities loaned and, at the same time, earn additional income. The borrower provides the fund with collateral in an amount at least equal to the value of the securities loaned. The fund maintains the ability to obtain the right to vote or consent on proxy proposals involving material events affecting securities loaned. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. These delays and costs could be greater for foreign securities. If a fund is not able to recover the securities loaned, a fund may sell the collateral and purchase a replacement investment in the market. The value of the collateral could decrease below the value of the replacement investment by the time the replacement investment is purchased. Loans will be made only to parties deemed by FMR to be in good standing and when, in FMR's judgment, the income earned would justify the risks.
Cash received as collateral through loan transactions may be invested in other eligible securities, including shares of a money market fund. Investing this cash subjects that investment, as well as the securities loaned, to market appreciation or depreciation.
Securities of Other Investment Companies, including shares of closed-end investment companies, unit investment trusts, and open-end investment companies, represent interests in professionally managed portfolios that may invest in any type of instrument. Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but may involve additional expenses at the investment company-level, such as portfolio management fees and operating expenses. Certain types of investment companies, such as closed-end investment companies, issue a fixed number of shares that trade on a stock exchange or over-the-counter at a premium or a discount to their net asset value per share (NAV). Others are continuously offered at NAV, but may also be traded in the secondary market.
The extent to which a fund can invest in securities of other investment companies is limited by federal securities laws.
Short Sales "Against the Box" are short sales of securities that a fund owns or has the right to obtain (equivalent in kind or amount to the securities sold short). If a fund enters into a short sale against the box, it will be required to set aside securities equivalent in kind and amount to the securities sold short (or securities convertible or exchangeable into such securities) and will be required to hold such securities while the short sale is outstanding. The fund will incur transaction costs, including interest expenses, in connection with opening, maintaining, and closing short sales against the box.
Short Sales. Stocks underlying a fund's convertible security holdings can be sold short. For example, if FMR anticipates a decline in the price of the stock underlying a convertible security held by a fund, it may sell the stock short. If the stock price subsequently declines, the proceeds of the short sale could be expected to offset all or a portion of the effect of the stock's decline on the value of the convertible security. The fund currently intends to hedge no more than 15% of its total assets with short sales on equity securities underlying its convertible security holdings under normal circumstances.
A fund will be required to set aside securities equivalent in kind and amount to those sold short (or securities convertible or exchangeable into such securities) and will be required to hold them aside while the short sale is outstanding. A fund will incur transaction costs, including interest expenses, in connection with opening, maintaining, and closing short sales.
Stripped Securities are the separate income or principal components of a debt security. The risks associated with stripped securities are similar to those of other debt securities, although stripped securities may be more volatile, and the value of certain types of stripped securities may move in the same direction as interest rates. U.S. Treasury securities that have been stripped by a Federal Reserve Bank are obligations issued by the U.S. Treasury.
Temporary Defensive Policies. The fund reserves the right to invest without limitation in preferred stocks and investment-grade debt instruments for temporary, defensive purposes.
Variable and Floating Rate Securities provide for periodic adjustments in the interest rate paid on the security. Variable rate securities provide for a specified periodic adjustment in the interest rate, while floating rate securities have interest rates that change whenever there is a change in a designated benchmark rate or the issuer's credit quality. Some variable or floating rate securities are structured with put features that permit holders to demand payment of the unpaid principal balance plus accrued interest from the issuers or certain financial intermediaries.
Warrants. Warrants are instruments which entitle the holder to buy an equity security at a specific price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss.
Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments.
When-Issued and Forward Purchase or Sale Transactions involve a commitment to purchase or sell specific securities at a predetermined price or yield in which payment and delivery take place after the customary settlement period for that type of security. Typically, no interest accrues to the purchaser until the security is delivered.
When purchasing securities pursuant to one of these transactions, the purchaser assumes the rights and risks of ownership, including the risks of price and yield fluctuations and the risk that the security will not be issued as anticipated. Because payment for the securities is not required until the delivery date, these risks are in addition to the risks associated with a fund's investments. If a fund remains substantially fully invested at a time when a purchase is outstanding, the purchases may result in a form of leverage. When a fund has sold a security pursuant to one of these transactions, the fund does not participate in further gains or losses with respect to the security. If the other party to a delayed-delivery transaction fails to deliver or pay for the securities, a fund could miss a favorable price or yield opportunity or suffer a loss.
A fund may renegotiate a when-issued or forward transaction and may sell the underlying securities before delivery, which may result in capital gains or losses for the fund.
Zero Coupon Bonds do not make interest payments; instead, they are sold at a discount from their face value and are redeemed at face value when they mature. Because zero coupon bonds do not pay current income, their prices can be more volatile than other types of fixed-income securities when interest rates change. In calculating a fund's dividend, a portion of the difference between a zero coupon bond's purchase price and its face value is considered income.
All orders for the purchase or sale of portfolio securities are placed on behalf of the fund by FMR pursuant to authority contained in the management contract. FMR may also be responsible for the placement of portfolio transactions for other investment companies and investment accounts for which it has or its affiliates have investment discretion. In selecting brokers or dealers (including affiliates of FMR), FMR generally considers: the execution price; the size and type of the transaction; the nature and character of the markets for the security to be purchased or sold; the execution efficiency, settlement capability, and financial condition of the firm; the execution services rendered on a continuing basis; the reasonableness of any compensation paid; arrangements for payment of fund expenses, if applicable; and the provision of additional brokerage and research products and services, if applicable.
For futures transactions, the selection of an FCM is generally based on the overall quality of execution and other services provided by the FCM.
If FMR grants investment management authority to a sub-adviser (see the section entitled "Management Contracts"), that sub-adviser is authorized to provide the services described in the sub-advisory agreement, and will do so in accordance with the policies described in this section.
Purchases and sales of securities on a securities exchange are effected through brokers who receive compensation for their services. Compensation may also be paid in connection with riskless principal transactions (in both OTC securities and securities listed on an exchange) and agency OTC transactions executed with an electronic communications network (ECN) or an alternative trading system.
Securities may be purchased from underwriters at prices that include underwriting fees.
Generally, compensation relating to investments traded on foreign exchanges will be higher than for investments traded on U.S. exchanges and may not be subject to negotiation.
Futures transactions are executed and cleared through FCMs who receive compensation for their services.
The fund may execute portfolio transactions with brokers or dealers (who are not affiliates of FMR) that provide products and services. These products and services may include: economic, industry, or company research reports or investment recommendations; subscriptions to financial publications or research data compilations; compilations of securities prices, earnings, dividends, and similar data; computerized databases; quotation equipment and services; research or analytical computer software and services; products or services that assist in effecting transactions, including services of third-party computer systems developers directly related to research and brokerage activities; and effecting securities transactions and performing functions incidental thereto (such as clearance and settlement). The receipt of these products and services has not reduced FMR's normal research activities in providing investment advice to the fund. FMR's expenses could be increased, however, if it attempted to generate these additional products and services through its own efforts.
Certain of the products and services FMR receives from brokers or dealers are furnished by brokers or dealers on their own initiative, either in connection with a particular transaction or as part of their overall services. In addition, FMR may request a broker or dealer to provide a specific proprietary or third-party product or service. While FMR takes into account the products and services provided by a broker or dealer in determining whether compensation paid is reasonable, neither FMR nor the fund incurs an obligation to the broker, dealer, or third party to pay for any product or service (or portion thereof) by generating a certain amount of compensation or otherwise.
Brokers or dealers that execute transactions for the fund may receive compensation that is in excess of the amount of compensation that other brokers or dealers might have charged, in recognition of the products and services they have provided. Before causing the fund to pay such higher compensation, FMR will make a good faith determination that the compensation is reasonable in relation to the value of the products and services provided viewed in terms of the particular transaction for the fund or FMR's overall responsibilities to the fund or other investment companies and investment accounts. Typically, these products and services assist FMR or its affiliates in terms of its overall investment responsibilities to the fund and other investment companies and investment accounts; however, each product or service received may not benefit the fund.
FMR may place trades with certain brokers with which it is under common control, including National Financial Services LLC (NFS), provided it determines that these affiliates' trade execution abilities and costs are comparable to those of non-affiliated, qualified brokerage firms. FMR does not allocate trades to NFS in exchange for brokerage and research products and services of the type sometimes known as "soft dollars." FMR trades with its affiliated brokers on an execution-only basis.
FMR may allocate brokerage transactions to brokers or dealers (who are not affiliates of FMR) who have entered into arrangements with FMR under which the broker-dealer allocates a portion of the compensation paid by a fund toward the reduction of that fund's expenses.
The Trustees of the fund periodically review FMR's performance of its responsibilities in connection with the placement of portfolio transactions on behalf of the fund and review the compensation paid by the fund over representative periods of time to determine if they are reasonable in relation to the benefits to the fund.
<R>For the fiscal periods ended September 30, 2006, the fund's portfolio turnover rates were 105% (annualized for the period December 1, 2005 to September 30, 2006) and 125% as of November 30, 2005, respectively.</R>
A fund may pay compensation including both commissions and spreads in connection with the placement of portfolio transactions. Significant changes in brokerage commissions paid by a fund from year to year may result from changing asset levels throughout the year, shareholder activity, and/or portfolio turnover.
The following table shows the total amount of brokerage commissions paid by the fund, comprising commissions paid on securities and/or futures transactions, as applicable, for the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004. The total amount of brokerage commissions paid is stated as a dollar amount and a percentage of the fund's average net assets.
<R>Fiscal Year |
|
<R>Dollar |
<R>Percentage
of Average |
<R>2006A</R> |
|
<R>$ 193,527</R> |
<R> 0.09%</R> |
<R>2005B</R> |
|
<R>$ 285,920</R> |
<R> 0.18%</R> |
<R>2004B</R> |
|
<R>$ 235,505</R> |
<R> 0.17%</R> |
A For the fiscal period December 1, 2005 to September 30, 2006.
B For the fiscal year ended November 30.
<R>During the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, the fund paid brokerage commissions of $1,344, $2,944, and $1,527, respectively, to NFS. NFS is paid on a commission basis. During the fiscal period ended September 30, 2006, this amounted to approximately 0.69% of the aggregate brokerage commissions paid by the fund for transactions involving approximately 2.80% of the aggregate dollar amount of transactions for which the fund paid brokerage commissions. The difference between the percentage of aggregate brokerage commissions paid to, and the percentage of the aggregate dollar amount of transactions effected through, NFS is a result of the low commission rates charged by NFS.</R>
<R>During the fiscal period ended September 30, 2006, the fund paid $115,955 in brokerage commissions to firms for providing research services involving approximately $115,483,217 of transactions. The provision of research services was not necessarily a factor in the placement of all this business with such firms.</R>
The Trustees of the fund have approved procedures in conformity with Rule 10f-3 under the 1940 Act whereby a fund may purchase securities that are offered in underwritings in which an affiliate of FMR participates. These procedures prohibit the fund from directly or indirectly benefiting an FMR affiliate in connection with such underwritings. In addition, for underwritings where an FMR affiliate participates as a principal underwriter, certain restrictions may apply that could, among other things, limit the amount of securities that the fund could purchase in the underwritings.
From time to time the Trustees will review whether the recapture for the benefit of the fund of some portion of the compensation paid by the fund on portfolio transactions is legally permissible and advisable. The Trustees intend to continue to review whether recapture opportunities are available and are legally permissible and, if so, to determine in the exercise of their business judgment whether it would be advisable for the fund to participate, or continue to participate, in the commission recapture program.
Although the Trustees and officers of the fund are substantially the same as those of other funds managed by FMR or its affiliates, investment decisions for the fund are made independently from those of other funds or investment accounts (including proprietary accounts) managed by FMR or its affiliates. The same security is often held in the portfolio of more than one of these funds or investment accounts. Simultaneous transactions are inevitable when several funds and investment accounts are managed by the same investment adviser, particularly when the same security is suitable for the investment objective of more than one fund or investment account.
When two or more funds or investment accounts are simultaneously engaged in the purchase or sale of the same security, including a futures contract, the prices and amounts are allocated in accordance with procedures believed to be appropriate and equitable to each fund or investment account. In some cases this system could have a detrimental effect on the price or value of the security as far as the fund is concerned. In other cases, however, the ability of the fund to participate in volume transactions will produce better executions and prices for the fund. It is the current opinion of the Trustees that the desirability of retaining FMR as investment adviser to the fund outweighs any disadvantages that may be said to exist from exposure to simultaneous transactions.
Each class's NAV is the value of a single share. The NAV of each class is computed by adding the class's pro rata share of the value of the fund's investments, cash, and other assets, subtracting the class's pro rata share of the fund's liabilities, subtracting the liabilities allocated to the class, and dividing the result by the number of shares of that class that are outstanding.
Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price (on the local exchange) is unavailable, the last evaluated quote or closing bid price normally is used. Securities of other open-end investment companies are valued at their respective NAVs.
Debt securities and other assets for which market quotations are readily available may be valued at market values determined by such securities' most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which they normally are traded, as furnished by recognized dealers in such securities or assets. Or, debt securities and convertible securities may be valued on the basis of information furnished by a pricing service that uses a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Use of pricing services has been approved by the Board of Trustees. A number of pricing services are available, and the fund may use various pricing services or discontinue the use of any pricing service.
Futures contracts and options are valued on the basis of market quotations, if available.
Independent brokers or quotation services provide prices of foreign securities in their local currency. Fidelity Service Company, Inc. (FSC) gathers all exchange rates daily at the close of the NYSE using the last quoted price on the local currency and then translates the value of foreign securities from their local currencies into U.S. dollars. Any changes in the value of forward contracts due to exchange rate fluctuations and days to maturity are included in the calculation of NAV. If an event that is expected to materially affect the value of a portfolio security occurs after the close of an exchange or market on which that security is traded, then that security will be valued in good faith by a committee appointed by the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less for which market quotations and information furnished by a pricing service are not readily available are valued either at amortized cost or at original cost plus accrued interest, both of which approximate current value.
The procedures set forth above need not be used to determine the value of the securities owned by the fund if, in the opinion of a committee appointed by the Board of Trustees, some other method would more accurately reflect the fair value of such securities. For example, securities and other assets for which there is no readily available market value may be valued in good faith by a committee appointed by the Board of Trustees. In making a good faith determination of the value of a security, the committee may review price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading.
BUYING, SELLING, AND EXCHANGING INFORMATION
The fund may make redemption payments in whole or in part in readily marketable securities or other property pursuant to procedures approved by the Trustees if FMR determines it is in the best interests of the fund. Such securities or other property will be valued for this purpose as they are valued in computing each class's NAV. Shareholders that receive securities or other property will realize, upon receipt, a gain or loss for tax purposes, and will incur additional costs and be exposed to market risk prior to and upon sale of such securities or other property.
The fund may invest a substantial amount of its assets in one or more series of central funds. For federal income tax purposes, certain central funds ("partnership central funds") intend to be treated as partnerships that are not "publicly traded partnerships" and, as a result, will not be subject to federal income tax. A fund, as an investor in a partnership central fund, will be required to take into account in determining its federal income tax liability its share of the partnership central fund's income, gains, losses, deductions, and credits, without regard to whether it has received any cash distributions from the partnership central fund.
A partnership central fund will allocate at least annually among its investors, including the fund, each investor's share of the partnership central fund's net investment income, net realized capital gains, and any other items of income, gain, loss, deduction or credit.
Dividends. A portion of the fund's income may qualify for the dividends-received deduction available to corporate shareholders. Because the fund may earn income that does not qualify for the deduction, certain dividends received by the fund will be not be deductible. A portion of the fund's dividends, when distributed to individual shareholders, may qualify for taxation at long-term capital gains rates (provided certain holding period requirements are met), or may be exempt from state and local taxation to the extent that they are derived from certain U.S. Government securities and meet certain requirements.
Capital Gain Distributions. The fund's long-term capital gain distributions are federally taxable to shareholders generally as capital gains.
Returns of Capital. If the fund's distributions exceed its taxable income and capital gains realized during a taxable year, all or a portion of the distributions made in the same taxable year may be recharacterized as a return of capital to shareholders. A return of capital distribution will generally not be taxable, but will reduce each shareholder's cost basis in the fund and result in a higher reported capital gain or lower reported capital loss when those shares on which the distribution was received are sold.
Foreign Tax Credit or Deduction. Foreign governments may withhold taxes on dividends and interest earned by the fund with respect to foreign securities. Foreign governments may also impose taxes on other payments or gains with respect to foreign securities. Because the fund does not currently anticipate that securities of foreign issuers will constitute more than 50% of its total assets at the end of its fiscal year, shareholders should not expect to be eligible to claim a foreign tax credit or deduction on their federal income tax returns with respect to foreign taxes withheld.
Tax Status of the Fund. The fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code so that it will not be liable for federal tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company, and avoid being subject to federal income or excise taxes at the fund level, the fund intends to distribute substantially all of its net investment income and net realized capital gains within each calendar year as well as on a fiscal year basis, and intends to comply with other tax rules applicable to regulated investment companies.
Other Tax Information. The information above is only a summary of some of the tax consequences generally affecting the fund and its shareholders, and no attempt has been made to discuss individual tax consequences. It is up to you or your tax preparer to determine whether the sale of shares of the fund resulted in a capital gain or loss or other tax consequence to you. In addition to federal income taxes, shareholders may be subject to state and local taxes on fund distributions, and shares may be subject to state and local personal property taxes. Investors should consult their tax advisers to determine whether a fund is suitable to their particular tax situation.
<R>The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Each of the Trustees oversees 353 funds advised by FMR or an affiliate.</R>
<R>The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.</R>
<R>Interested Trustees*:</R>
<R>Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.</R>
<R>Name, Age; Principal Occupation</R> |
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<R>Edward C. Johnson 3d (76)</R> |
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<R>Year of Election or Appointment: 1981</R> <R>Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL).</R> |
<R>* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.</R>
<R>Independent Trustees:</R>
<R>Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.</R>
<R>Name, Age; Principal Occupation</R> |
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<R>Dennis J. Dirks (58)</R> |
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<R>Year of Election or Appointment: 2005 </R> <R>Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).</R> |
<R>Albert R. Gamper, Jr. (65)</R> |
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<R>Year of Election or Appointment: 2006</R> <R>Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.</R> |
<R>George H. Heilmeier (70)</R> |
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<R>Year of Election or Appointment: 2004</R> <R>Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.</R> |
<R>James H. Keyes (66)</R> |
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<R>Year of Election or Appointment: 2007 </R> <R>Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).</R> |
<R>Marie L. Knowles (60)</R> |
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<R>Year of Election or Appointment: 2001</R> <R>Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.</R> |
<R>Ned C. Lautenbach (63)</R> |
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<R>Year of Election or Appointment: 2000</R> <R>Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.</R> |
<R>Cornelia M. Small (62)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.</R> |
<R>William S. Stavropoulos (67)</R> |
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<R>Year of Election or Appointment: 2001</R> <R>Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.</R> |
<R>Kenneth L. Wolfe (68)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present).</R> |
<R>Advisory Board Members and Executive Officers:</R>
<R>Correspondence intended for each executive officer, Mr. Curvey, and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.</R>
<R>Name, Age; Principal Occupation</R> |
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<R>James C. Curvey (71)</R> |
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<R>Year of Election or Appointment: 2007</R> <R>Member of the Advisory Board of Fidelity Charles Street Trust. Mr. Curvey is Vice Chairman (2006-present) and Director of FMR Corp. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR Corp. (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).</R> |
<R>Peter S. Lynch (63)</R> |
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<R>Year of Election or Appointment: 2003 </R> <R>Member of the Advisory Board of Fidelity Charles Street Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.</R> |
<R>Kimberley H. Monasterio (43)</R> |
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<R>Year of Election or Appointment: 2007</R> <R>President and Treasurer of Advisor Asset Manager 70%. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).</R> |
<R>Boyce I. Greer (51)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Vice President of Advisor Asset Manager 70%. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).</R> |
<R>David L. Murphy (59)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Vice President of Advisor Asset Manager 70%. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002).</R> |
<R>Thomas J. Silvia (45)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Vice President of Advisor Asset Manager 70%. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004).</R> |
<R>Richard C. Habermann (66)</R> |
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<R>Year of Election or Appointment: 1998</R> <R>Vice President of Advisor Asset Manager 70%. Mr. Habermann also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Habermann worked as a portfolio manager, director of international research, and chief investment officer for Fidelity International Limited (FIL). Mr. Habermann also serves as Senior Vice President of FMR (1993) and FMR Co., Inc. (2001).</R> |
<R>Eric D. Roiter (58)</R> |
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<R>Year of Election or Appointment: 1998</R> <R>Secretary of Advisor Asset Manager 70%. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).</R> |
<R>Scott C. Goebel (39)</R> |
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<R>Year of Election or Appointment: 2007</R> <R>Assistant Secretary of Advisor Asset Manager 70%. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR.</R> |
<R>R. Stephen Ganis (41)</R> |
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<R>Year of Election or Appointment: 2006</R> <R>Anti-Money Laundering (AML) officer of Advisor Asset Manager 70%. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).</R> |
<R>Joseph B. Hollis (59)</R> |
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<R>Year of Election or Appointment: 2006</R> <R>Chief Financial Officer of Advisor Asset Manager 70%. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).</R> |
<R>Kenneth A. Rathgeber (59)</R> |
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<R>Year of Election or Appointment: 2004</R> <R>Chief Compliance Officer of Advisor Asset Manager 70%. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).</R> |
<R>Bryan A. Mehrmann (46)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Deputy Treasurer of Advisor Asset Manager 70%. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).</R> |
<R>Kenneth B. Robins (37)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Deputy Treasurer of Advisor Asset Manager 70%. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).</R> |
<R>Robert G. Byrnes (40)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Assistant Treasurer of Advisor Asset Manager 70%. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).</R> |
<R>Peter L. Lydecker (53)</R> |
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<R>Year of Election or Appointment: 2004</R> <R>Assistant Treasurer of Advisor Asset Manager 70%. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.</R> |
<R>Gary W. Ryan (48)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Assistant Treasurer of Advisor Asset Manager 70%. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).</R> |
<R>Salvatore Schiavone (41)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Assistant Treasurer of Advisor Asset Manager 70%. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003).</R> |
<R>Standing Committees of the Fund's Trustees. The Board of Trustees has established various committees to support the Independent Trustees in acting independently in pursuing the best interests of the Fidelity funds and their shareholders. The committees facilitate the timely and efficient consideration of all matters of importance to Independent Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements. Currently, the Board of Trustees has 12 standing committees. The members of each committee are Independent Trustees.</R>
<R>The Operations Committee is composed of all of the Independent Trustees, with Mr. Lautenbach currently serving as Chair. The committee normally meets monthly (except August), or more frequently as called by the Chair, and serves as a forum for consideration of issues of importance to, or calling for particular determinations by, the Independent Trustees. The committee also considers matters involving potential conflicts of interest between the funds and FMR and its affiliates and reviews proposed contracts and the proposed continuation of contracts between the Fidelity funds and FMR and its affiliates, and annually reviews and makes recommendations regarding contracts with third parties unaffiliated with FMR, including insurance coverage and custody agreements. The committee also monitors additional issues including the nature, levels and quality of services provided to shareholders, significant litigation, and the voting of proxies of portfolio companies. The committee also has oversight of compliance issues not specifically within the scope of any other committee. The committee is also responsible for definitive action on all compliance matters involving the potential for significant reimbursement by FMR. During the fiscal year ended April 30, 2007, the committee held 16 meetings.</R>
<R>The Fair Value Oversight Committee is composed of all of the Independent Trustees, with Mr. Lautenbach currently serving as Chair. The committee normally meets quarterly, or more frequently as called by the Chair. The Fair Value Oversight Committee monitors and establishes policies concerning procedures and controls regarding the valuation of fund investments and monitors matters of disclosure to the extent required to fulfill its statutory responsibilities. The committee also reviews actions taken by FMR's Fair Value Committee. During the fiscal year ended April 30, 2007, the committee held four meetings.</R>
<R>The Board of Trustees has established three Fund Oversight Committees: the Equity Committee (composed of Messrs. Stavropoulos (Chair), Gamper, and Lautenbach), the Fixed-Income, International, and Special Committee (composed of Ms. Small (Chair), Ms. Knowles, and Mr. Dirks), and the Select and Asset Allocation Committee (composed of Dr. Heilmeier (Chair), Messrs. Keyes and Wolfe). Each committee normally meets in conjunction with in-person meetings of the Board of Trustees, or more frequently as called by the Chair of the respective committee. Each committee develops an understanding of and reviews the investment objectives, policies, and practices of each fund under its oversight. Each committee also monitors investment performance, compliance by each relevant Fidelity fund with its investment policies and restrictions and reviews appropriate benchmarks, competitive universes, unusual or exceptional investment matters, the personnel and other resources devoted to the management of each fund and all other matters bearing on each fund's investment results. The Fixed-Income, International, and Special Committee also receives reports required under Rule 2a-7 of the 1940 Act and has oversight of research bearing on credit quality, investment structures and other fixed-income issues, and of international research. The Select and Asset Allocation Committee has oversight of FMR's equity investment research. Each committee will review and recommend any required action to the Board in respect of specific funds, including new funds, changes in fundamental and non-fundamental investment policies and restrictions, partial or full closing to new investors, fund mergers, fund name changes, and liquidations of funds. The members of each committee may organize working groups to make recommendations concerning issues related to funds that are within the scope of the committee's review. These working groups report to the committee or to the Independent Trustees, or both, as appropriate. Each working group may request from FMR such information from FMR as may be appropriate to the working group's deliberations. During the fiscal year ended April 30, 2007, the Equity Committee held 12 meetings, the Fixed-Income, International, and Special Committee held 13 meetings, and the Select and Asset Allocation Committee held 12 meetings.</R>
<R>The Board of Trustees has established two Fund Contract Committees: the Equity Contract Committee (composed of Messrs. Stavropoulos (Chair), Gamper, and Lautenbach, Dr. Heilmeier, and Ms. Small) and the Fixed-Income Contract Committee (composed of Ms. Small (Chair), Mr. Dirks, and Ms. Knowles). Each committee will ordinarily meet as needed to consider matters related to the renewal of fund investment advisory agreements. The committees will assist the Independent Trustees in their consideration of investment advisory agreements of each fund. Each committee receives information on and makes recommendations concerning the approval of investment advisory agreements between the Fidelity funds and FMR and its affiliates and any non-FMR affiliate that serves as a sub-adviser to a Fidelity fund (collectively, investment advisers) and the annual review of these contracts. The Fixed-Income Contract Committee will be responsible for investment advisory agreements of the fixed-income funds. The Equity Contract Committee will be responsible for the investment advisory agreements of all other funds. With respect to each fund under its purview, each committee: requests and receives information on the nature, extent, and quality of services provided to the shareholders of the Fidelity funds by the investment advisers and their respective affiliates, fund performance, the investment performance of the investment adviser, and such other information as the committee determines to be reasonably necessary to evaluate the terms of the investment advisory agreements; considers the cost of the services to be provided and the profitability and other benefits that the investment advisers and their respective affiliates derive or will derive from their contractual arrangements with each of the funds (including tangible and intangible "fall-out benefits"); considers the extent to which economies of scale would be realized as the funds grow and whether fee levels reflect those economies of scale for the benefit of fund investors; considers methodologies for determining the extent to which the funds benefit from economies of scale and refinements to these methodologies; considers information comparing the services to be rendered and the amount to be paid under the funds' contracts with those under other investment advisory contracts entered into with FMR and its affiliates and other investment advisers, such as contracts with other registered investment companies or other types of clients; considers such other matters and information as may be necessary and appropriate to evaluate investment advisory agreements of the funds; and makes recommendations to the Board concerning the approval or renewal of investment advisory agreements. Each committee will consult with the other committees of the Board of Trustees, and in particular with the Audit Committee and the applicable Fund Oversight Committees, in carrying out its responsibilities. Each committee's responsibilities are guided by Sections 15(c) and 36(b) of the 1940 Act. While each committee consists solely of Independent Trustees, its meetings may, depending upon the subject matter, be attended by one or more senior members of FMR's management or representatives of a sub-adviser not affiliated with FMR. During the fiscal year ended April 30, 2007, the Equity Contract Committee held five meetings and the Fixed-Income Contract Committee held three meetings.</R>
<R>The Shareholder, Distribution and Brokerage Committee is composed of Messrs. Dirks (Chair), Gamper, and Stavropoulos, and Ms. Small. The committee normally meets monthly (except August), or more frequently as called by the Chair. Regarding shareholder services, the committee considers the structure and amount of the Fidelity funds' transfer agency fees and fees, including direct fees to investors (other than sales loads), such as bookkeeping and custodial fees, and the nature and quality of services rendered by FMR and its affiliates or third parties (such as custodians) in consideration of these fees. The committee also considers other non-investment management services rendered to the Fidelity funds by FMR and its affiliates, including pricing and bookkeeping services. Regarding brokerage, the committee monitors and recommends policies concerning the securities transactions of the Fidelity funds. The committee periodically reviews the policies and practices with respect to efforts to achieve best execution, commissions paid to firms supplying research and brokerage services or paying fund expenses, and policies and procedures designed to assure that any allocation of portfolio transactions is not influenced by the sale of Fidelity fund shares. The committee also monitors brokerage and other similar relationships between the Fidelity funds and firms affiliated with FMR that participate in the execution of securities transactions. Regarding the distribution of fund shares, the committee considers issues bearing on the various distribution channels employed by the Fidelity funds, including issues regarding Rule 18f-3 plans and related consideration of classes of shares, sales load structures (including breakpoints), load waivers, selling concessions and service charges paid to intermediaries, Rule 12b-1 plans, contingent deferred sales charges, and finders' fees, and other means by which intermediaries are compensated for selling fund shares or providing shareholder servicing, including revenue sharing. The committee also considers issues bearing on the preparation and use of advertisements and sales literature for the Fidelity funds, policies and procedures regarding frequent purchase of Fidelity fund shares, and selective disclosure of portfolio holdings. During the fiscal year ended April 30, 2007, the Shareholder, Distribution and Brokerage Committee held 13 meetings.</R>
<R>The Audit Committee is composed of Ms. Knowles (Chair), Dr. Heilmeier, and Messrs. Keyes and Wolfe. All committee members must be able to read and understand fundamental financial statements, including a company's balance sheet, income statement, and cash flow statement. At least one committee member will be an "audit committee financial expert" as defined by the SEC. The committee will have at least one committee member in common with the Compliance Committee. The committee normally meets monthly (except August), or more frequently as called by the Chair. The committee meets separately at least four times a year with the Fidelity funds' Treasurer, with personnel responsible for the internal audit function of FMR Corp., and with the Fidelity funds' outside auditors. The committee has direct responsibility for the appointment, compensation, and oversight of the work of the outside auditors employed by the Fidelity funds. The committee assists the Trustees in overseeing and monitoring: (i) the systems of internal accounting and financial controls of the Fidelity funds and the funds' service providers, (ii) the financial reporting processes of the Fidelity funds, (iii) the independence, objectivity and qualification of the auditors to the Fidelity funds, (iv) the annual audits of the Fidelity funds' financial statements, and (v) the accounting policies and disclosures of the Fidelity funds. The committee considers and acts upon (i) the provision by any outside auditor of any non-audit services for any Fidelity fund, and (ii) the provision by any outside auditor of certain non-audit services to Fidelity fund service providers and their affiliates to the extent that such approval (in the case of this clause (ii)) is required under applicable regulations of the SEC. In furtherance of the foregoing, the committee has adopted (and may from time to time amend or supplement) and provides oversight of policies and procedures for non-audit engagements by outside auditors of the Fidelity funds. It is responsible for approving all audit engagement fees and terms for the Fidelity funds, resolving disagreements between a fund and any outside auditor regarding any fund's financial reporting, and has sole authority to hire and fire any auditor. Auditors of the funds report directly to the committee. The committee will obtain assurance of independence and objectivity from the outside auditors, including a formal written statement delineating all relationships between the auditor and the Fidelity funds and any service providers consistent with Independent Standards Board Standard No. 1. The committee will receive reports of compliance with provisions of the Auditor Independence Regulations relating to the hiring of employees or former employees of the outside auditors. It oversees and receives reports on the Fidelity funds' service providers' internal controls and reviews the adequacy and effectiveness of the service providers' accounting and financial controls, including: (i) any significant deficiencies or material weaknesses in the design or operation of internal controls over financial reporting that are reasonably likely to adversely affect the Fidelity funds' ability to record, process, summarize, and report financial data; (ii) any change in the fund's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the fund's internal control over financial reporting; and (iii) any fraud, whether material or not, that involves management or other employees who have a significant role in the Fidelity funds' or service providers internal controls over financial reporting. The committee will review with counsel any legal matters that may have a material impact on the Fidelity funds' financial statements and any material reports or inquiries received from regulators or governmental agencies. These matters may also be reviewed by the Compliance Committee or the Operations Committee. The Chair of the Audit Committee will coordinate with the Chair of the Compliance Committee, as appropriate. The committee reviews at least annually a report from each outside auditor describing any material issues raised by the most recent internal quality control, peer review, or Public Company Accounting Oversight Board examination of the auditing firm and any material issues raised by any inquiry or investigation by governmental or professional authorities of the auditing firm and in each case any steps taken to deal with such issues. The committee will oversee and receive reports on the Fidelity funds' financial reporting process, will discuss with FMR, the Fidelity funds' Treasurer, outside auditors and, if appropriate, internal audit personnel of FMR Corp. their qualitative judgments about the appropriateness and acceptability of accounting principles and financial disclosure practices used or proposed for adoption by the Fidelity funds, and will review with FMR, the Fidelity funds' Treasurer, outside auditor, and internal auditor personnel of FMR Corp. (to the extent relevant) the results of audits of the Fidelity funds' financial statements. The committee will review periodically the Fidelity funds' major internal controls exposures and the steps that have been taken to monitor and control such exposures. During the fiscal year ended April 30, 2007, the committee held 15 meetings.</R>
<R>The Governance and Nominating Committee is composed of Messrs. Lautenbach (Chair), Stavropoulos, and Wolfe. The committee meets as called by the Chair. With respect to fund governance and board administration matters, the committee periodically reviews procedures of the Board of Trustees and its committees (including committee charters) and periodically reviews compensation of Independent Trustees. The committee monitors corporate governance matters and makes recommendations to the Board of Trustees on the frequency and structure of the Board of Trustee meetings and on any other aspect of Board procedures. It acts as the administrative committee under the retirement plan for Independent Trustees who retired prior to December 30, 1996 and under the fee deferral plan for Independent Trustees. It reviews the performance of legal counsel employed by the Fidelity funds and the Independent Trustees. On behalf of the Independent Trustees, the committee will make such findings and determinations as to the independence of counsel for the Independent Trustees as may be necessary or appropriate under applicable regulations or otherwise. The committee is also responsible for Board administrative matters applicable to Independent Trustees, such as expense reimbursement policies and compensation for attendance at meetings, conferences and other events. The committee monitors compliance with, acts as the administrator of, and makes determinations in respect of, the provisions of the code of ethics and any supplemental policies regarding personal securities transactions applicable to the Independent Trustees. The committee monitors the functioning of each Board committee and makes recommendations for any changes, including the creation or elimination of standing or ad hoc Board committees. The committee monitors regulatory and other developments to determine whether to recommend modifications to the committee's responsibilities or other Trustee policies and procedures in light of rule changes, reports concerning "best practices" in corporate governance and other developments in mutual fund governance. The committee meets with Independent Trustees at least once a year to discuss matters relating to fund governance. The committee recommends that the Board establish such special or ad hoc Board committees as may be desirable or necessary from time to time in order to address ethical, legal, or other matters that may arise. The committee also oversees the annual self-evaluation of the Board of Trustees and establishes procedures to allow it to exercise this oversight function. In conducting this oversight, the committee shall address all matters that it considers relevant to the performance of the Board of Trustees and shall report the results of its evaluation to the Board of Trustees, including any recommended amendments to the principles of governance, and any recommended changes to the Fidelity funds' or the Board of Trustees' policies, procedures, and structures. The committee reviews periodically the size and composition of the Board of Trustees as a whole and recommends, if necessary, measures to be taken so that the Board of Trustees reflects the appropriate balance of knowledge, experience, skills, expertise, and diversity required for the Board as a whole and contains at least the minimum number of Independent Trustees required by law. The committee makes nominations for the election or appointment of Independent Trustees and non-management Members of any Advisory Board, and for membership on committees. The committee shall have authority to retain and terminate any third-party advisers, including authority to approve fees and other retention terms. Such advisers may include search firms to identify Independent Trustee candidates and board compensation consultants. The committee may conduct or authorize investigations into or studies of matters within the committee's scope of responsibilities, and may retain, at the Fidelity funds' expense, such independent counsel or other advisers as it deems necessary. The committee will consider nominees to the Board of Trustees recommended by shareholders based upon the criteria applied to candidates presented to the committee by a search firm or other source. Recommendations, along with appropriate background material concerning the candidate that demonstrates his or her ability to serve as an Independent Trustee of the Fidelity funds, should be submitted to the Chair of the committee at the address maintained for communications with Independent Trustees. If the committee retains a search firm, the Chair will generally forward all such submissions to the search firm for evaluation. With respect to the criteria for selecting Independent Trustees, it is expected that all candidates will possess the following minimum qualifications: (i) unquestioned personal integrity; (ii) not an interested person of FMR or its affiliates within the meaning of the 1940 Act; (iii) does not have a material relationship (e.g., commercial, banking, consulting, legal, or accounting) that could create an appearance of lack of independence in respect of FMR and its affiliates; (iv) has the disposition to act independently in respect of FMR and its affiliates and others in order to protect the interests of the funds and all shareholders; (v) ability to attend 11 meetings per year; (vi) demonstrates sound business judgment gained through broad experience in significant positions where the candidate has dealt with management, technical, financial, or regulatory issues; (vii) sufficient financial or accounting knowledge to add value in the complex financial environment of the Fidelity funds; (viii) experience on corporate or other institutional oversight bodies having similar responsibilities, but which board memberships or other relationships could not result in business or regulatory conflicts with the funds; and (ix) capacity for the hard work and attention to detail that is required to be an effective Independent Trustee in light of the Fidelity funds' complex regulatory, operational, and marketing setting. The Governance and Nominating Committee may determine that a candidate who does not have the type of previous experience or knowledge referred to above should nevertheless be considered as a nominee if the Governance and Nominating Committee finds that the candidate has additional qualifications such that his or her qualifications, taken as a whole, demonstrate the same level of fitness to serve as an Independent Trustee. During the fiscal year ended April 30, 2007, the committee held 10 meetings.</R>
<R>The Board of Trustees established the Compliance Committee (composed of Ms. Small (Chair), Ms. Knowles, and Messrs. Stavropoulos and Wolfe) in May 2005. The committee normally meets quarterly, or more frequently as called by the Chair. The committee oversees the administration and operation of the compliance policies and procedures of the Fidelity funds and their service providers as required by Rule 38a-1 of the 1940 Act. The committee is responsible for the review and approval of policies and procedures relating to (i) provisions of the Code of Ethics, (ii) anti-money laundering requirements, (iii) compliance with investment restrictions and limitations, (iv) privacy, (v) recordkeeping, and (vi) other compliance policies and procedures which are not otherwise delegated to another committee. The committee has responsibility for recommending to the Board the designation of a Chief Compliance Officer (CCO) of the Fidelity funds. The committee serves as the primary point of contact between the CCO and the Board, it oversees the annual performance review and compensation of the CCO, and if required, makes recommendations to the Board with respect to the removal of the appointed CCO. The committee receives reports of significant correspondence with regulators or governmental agencies, employee complaints or published reports which raise concerns regarding compliance matters, and copies of significant non-routine correspondence with the SEC. The committee receives reports from the CCO including the annual report concerning the funds' compliance policies as required by Rule 38a-1, quarterly reports in respect of any breaches of fiduciary duty or violations of federal securities laws, and reports on any other compliance or related matters that may have a significant impact on the funds. The committee will recommend to the Board, what actions, if any, should be taken with respect to such reports. During the fiscal year ended April 30, 2007, the committee held 17 meetings.</R>
<R>The Proxy Voting Committee is composed of Messrs. Gamper (Chair), Dirks, and Keyes. The committee will meet as needed to review the fund's proxy voting policies, consider changes to the policies, and review the manner in which the policies have been applied. The committee will receive reports on the manner in which proxy votes have been cast under the proxy voting policies and reports on consultations between the fund's investment advisers and portfolio companies concerning matters presented to shareholders for approval. The committee will address issues relating to the fund's annual voting report filed with the SEC. The committee will receive reports concerning the implementation of procedures and controls designed to ensure that the proxy voting policies are implemented in accordance with their terms. The committee will consider FMR's recommendations concerning certain non-routine proposals not covered by the proxy voting policies. The committee will receive reports with respect to steps taken by FMR to assure that proxy voting has been done without regard to any other FMR relationships, business or otherwise, with that portfolio company. The committee will make recommendations to the Board concerning the casting of proxy votes in circumstances where FMR has determined that, because of a conflict of interest, the proposal to be voted on should be reviewed by the Board. During the fiscal year ended April 30, 2007, the committee held three meetings. </R>
<R>The following table sets forth information describing the dollar range of equity securities beneficially owned by each Trustee in the fund and in all funds in the aggregate within the same fund family overseen by the Trustee for the calendar year ended December 31, 2006.</R>
<R>Interested Trustees</R> |
|
<R>DOLLAR RANGE OF |
<R>Edward C. Johnson 3d</R> |
<R>Advisor Asset Manager 70%</R> |
<R>none</R> |
<R>AGGREGATE DOLLAR RANGE OF FUND SHARES IN ALL FUNDS OVERSEEN WITHIN FUND FAMILY</R> |
<R>over $100,000</R> |
<R>Independent Trustees</R> |
|||||
<R>DOLLAR RANGE OF |
<R>Dennis J. |
<R>Albert R. |
<R>George H. Heilmeier</R> |
<R>James H. Keyes</R> |
<R>Marie L. Knowles</R> |
<R>Advisor Asset Manager 70%</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>AGGREGATE DOLLAR RANGE OF FUND SHARES IN ALL FUNDS OVERSEEN WITHIN FUND FAMILY</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>none</R> |
<R>over $100,000</R> |
<R>DOLLAR RANGE OF |
<R>Ned C. Lautenbach</R> |
<R>Cornelia M. Small</R> |
<R>William S. Stavropoulos</R> |
<R>Kenneth L. Wolfe</R> |
<R>Advisor Asset Manager 70%</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>AGGREGATE DOLLAR RANGE OF FUND SHARES IN ALL FUNDS OVERSEEN WITHIN FUND FAMILY</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>The following table sets forth information describing the compensation of each Trustee and Member of the Advisory Board for his or her services for the fiscal period between December 1, 2005 and September 30, 2006, or calendar year ended December 31, 2006, as applicable.</R>
<R>Compensation Table1</R> |
|||||||
<R>AGGREGATE |
<R>Dennis J. Dirks</R> |
<R>Albert R. |
<R>Robert M. |
<R>George H. |
<R>James H. |
<R>Marie L. |
|
<R>Advisor Asset Manager 70%</R> |
<R>$ 55</R> |
<R>$ 54</R> |
<R>$ 67</R> |
<R>$ 53</R> |
<R>$ 37</R> |
<R>$ 58</R> |
|
<R>TOTAL COMPENSATION |
<R>$ 363,500</R> |
<R>$ 362,000</R> |
<R>$ 435,788</R> |
<R>$ 354,000</R> |
<R>$ 295,500</R> |
<R>$ 389,000</R> |
|
<R>AGGREGATE |
<R>Ned C. |
<R>Marvin L. |
<R>William O. |
<R>Cornelia M. |
<R>William S. |
<R>Kenneth L. |
<R>Advisor Asset Manager 70%</R> |
<R>$ 55</R> |
<R>$ 8</R> |
<R>$ 53</R> |
<R>$ 54</R> |
<R>$ 54</R> |
<R>$ 54</R> |
<R>TOTAL COMPENSATION |
<R>$ 369,333</R> |
<R>$ 0</R> |
<R>$ 403,500B</R> |
<R>$ 362,000</R> |
<R>$ 358,500</R> |
<R>$ 359,500</R> |
<R>1 Edward C. Johnson 3d, James C. Curvey, and Peter S. Lynch are interested persons and are compensated by FMR.</R>
<R>2 During the period from June 1, 2005 through December 31, 2005, Mr. Gamper served as a Member of the Advisory Board. Effective January 1, 2006, Mr. Gamper serves as a Member of the Board of Trustees.</R>
<R>3 Dr. Gates served on the Board of Trustees through December 2006.</R>
<R>4 During the period from March 1, 2006 through December 31, 2006, Mr. Keyes served as a Member of the Advisory Board. Effective January 1, 2007, Mr. Keyes serves as a Member of the Board of Trustees.</R>
<R>5 Mr. Mann served on the Board of Trustees through December 1, 2005.</R>
<R>6 Mr. McCoy served on the Board of Trustees through January 1, 2007.</R>
<R>A Reflects compensation received for the calendar year ended December 31, 2006 for 350 funds of 58 trusts (including Fidelity Central Investment Portfolios LLC). Compensation figures include cash, amounts required to be deferred, and may include amounts deferred at the election of Trustees. For the calendar year ended December 31, 2006, the Trustees accrued required deferred compensation from the funds as follows: Dennis J. Dirks, $148,500; Albert R. Gamper, $146,670; Robert M. Gates, $189,144; George H. Heilmeier, $148,500; Marie L. Knowles, $163,500; Ned C. Lautenbach, $152,667; William O. McCoy, $148,500; Cornelia M. Small, $148,500; William S. Stavropoulos, $148,500; and Kenneth L. Wolfe, $148,500. Certain of the Independent Trustees elected voluntarily to defer a portion of their compensation as follows: Ned C. Lautenbach, $39,213; and William O. McCoy, $85,287.</R>
<R>B Compensation figures include cash and may include amounts deferred at Mr. McCoy's election under a deferred compensation plan adopted by the other open-end registered investment companies in the fund complex (Other Open-End Funds). Pursuant to the deferred compensation plan, Mr. McCoy, as an Independent Trustee, may elect to defer receipt of all or a portion of his annual fees. Amounts deferred under the deferred compensation plan are credited to an account established for Mr. McCoy on the books of the Other Open-End Funds. Interest is accrued on amounts deferred under the deferred compensation plan. For the calendar year ended December 31, 2006, Mr. McCoy voluntarily elected to defer $47,000.</R>
<R>As of April 30, 2007, the Trustees, Members of the Advisory Board, and officers of the fund owned, in the aggregate, less than 1% of the fund's total outstanding shares.</R>
<R>As of April 30, 2007, the following owned of record and/or beneficially 5% or more (up to and including 25%) of the fund's outstanding shares:</R>
<R>Advisor Asset Manager 70%: Class A: UBS AG, Jersey City, NJ (20.46%); Ameriprise Financial Corporation, Minneapolis, MN (7.56%); Citigroup, Inc., New York, NY (6.21%); Amsouth Bank, Birmingham, AL (5.09%).</R>
<R>Advisor Asset Manager 70%: Class T: Citigroup, Inc., New York, NY (9.32%); Wachovia/Prudential Financial Advisors, LLC, Charlotte, NC (5.50%).</R>
<R>Advisor Asset Manager 70%: Class B: BankAmerica Corp., Charlotte, NC (9.49%); Ameriprise Financial Corporation, Minneapolis, MN (6.51%); Merrill Lynch, Jacksonville, FL (5.63%).</R>
<R>Advisor Asset Manager 70%: Class C: Citigroup, Inc., New York, NY (9.29%); H. Beck, Inc., Rockville, MD (7.39%); LPL Financial Services, Inc., San Diego, CA (5.70%); Merrill Lynch, Jacksonville, FL (5.35%).</R>
<R>Advisor Asset Manager 70%: Institutional Class: MMC Securities Corp, New York, NY (51.64%); ING, El Segundo, CA (12.23%); Waukesha State Bank, Waukesha, WI (10.53%); Fidelity Distributors Corporation, Boston, MA (6.06%); Merrill Lynch, Jacksonville, FL (5.81%); Wells Fargo Bank, San Diego, CA (5.40%).</R>
CONTROL OF INVESTMENT ADVISERS
FMR Corp., organized in 1972, is the ultimate parent company of FMR, Fidelity Investments Money Management, Inc. (FIMM), Fidelity Management & Research (U.K.) Inc. (FMR U.K.), Fidelity Research & Analysis Company (FRAC), formerly known as Fidelity Management & Research (Far East) Inc, and FMR Co., Inc. (FMRC). The voting common stock of FMR Corp. is divided into two classes. Class B is held predominantly by members of the Edward C. Johnson 3d family and is entitled to 49% of the vote on any matter acted upon by the voting common stock. Class A is held predominantly by non-Johnson family member employees of FMR Corp. and its affiliates and is entitled to 51% of the vote on any such matter. The Johnson family group and all other Class B shareholders have entered into a shareholders' voting agreement under which all Class B shares will be voted in accordance with the majority vote of Class B shares. Under the 1940 Act, control of a company is presumed where one individual or group of individuals owns more than 25% of the voting stock of that company. Therefore, through their ownership of voting common stock and the execution of the shareholders' voting agreement, members of the Johnson family may be deemed, under the 1940 Act, to form a controlling group with respect to FMR Corp.
At present, the primary business activities of FMR Corp. and its subsidiaries are: (i) the provision of investment advisory, management, shareholder, investment information and assistance and certain fiduciary services for individual and institutional investors; (ii) the provision of securities brokerage services; (iii) the management and development of real estate; and (iv) the investment in and operation of a number of emerging businesses.
Fidelity International Limited (FIL), a Bermuda company formed in 1968, is the ultimate parent company of Fidelity International Investment Advisors (FIIA), Fidelity Investments Japan Limited (FIJ), and Fidelity International Investment Advisors (U.K.) Limited (FIIA(U.K.)L). Edward C. Johnson 3d, Johnson family members, and various trusts for the benefit of the Johnson family own, directly or indirectly, more than 25% of the voting common stock of FIL. At present, the primary business activities of FIL and its subsidiaries are the provision of investment advisory services to non-U.S. investment companies and private accounts investing in securities throughout the world.
FMR, FIMM, FMRC, FMR U.K., FRAC, FIJ, FIIA, FIIA(U.K.)L (the Investment Advisers), FDC, and the fund have adopted codes of ethics under Rule 17j-1 of the 1940 Act that set forth employees' fiduciary responsibilities regarding the fund, establish procedures for personal investing, and restrict certain transactions. Employees subject to the codes of ethics, including Fidelity investment personnel, may invest in securities for their own investment accounts, including securities that may be purchased or held by the fund.
The fund has entered into a management contract with FMR, pursuant to which FMR furnishes investment advisory and other services.
Management Services. Under the terms of its management contract with the fund, FMR acts as investment adviser and, subject to the supervision of the Board of Trustees, has overall responsibility for directing the investments of the fund in accordance with its investment objective, policies and limitations. FMR also provides the fund with all necessary office facilities and personnel for servicing the fund's investments, compensates all officers of the fund and all Trustees who are interested persons of the trust or of FMR, and all personnel of the fund or FMR performing services relating to research, statistical and investment activities.
In addition, FMR or its affiliates, subject to the supervision of the Board of Trustees, provide the management and administrative services necessary for the operation of the fund. These services include providing facilities for maintaining the fund's organization; supervising relations with custodians, transfer and pricing agents, accountants, underwriters and other persons dealing with the fund; preparing all general shareholder communications and conducting shareholder relations; maintaining the fund's records and the registration of the fund's shares under federal securities laws and making necessary filings under state securities laws; developing management and shareholder services for the fund; and furnishing reports, evaluations and analyses on a variety of subjects to the Trustees.
Management-Related Expenses. In addition to the management fee payable to FMR and the fees payable to the transfer, dividend disbursing, and shareholder servicing agent and pricing and bookkeeping agent, and the costs associated with securities lending, as applicable, the fund or each class thereof, as applicable, pays all of its expenses that are not assumed by those parties. The fund pays for the typesetting, printing, and mailing of its proxy materials to shareholders, legal expenses, and the fees of the custodian, auditor, and Independent Trustees. The fund's management contract further provides that the fund will pay for typesetting, printing, and mailing prospectuses, statements of additional information, notices, and reports to shareholders; however, under the terms of the fund's transfer agent agreement, the transfer agent bears these costs. Other expenses paid by the fund include interest, taxes, brokerage commissions, the fund's proportionate share of insurance premiums and Investment Company Institute dues, and the costs of registering shares under federal securities laws and making necessary filings under state securities laws. The fund is also liable for such non-recurring expenses as may arise, including costs of any litigation to which the fund may be a party, and any obligation it may have to indemnify its officers and Trustees with respect to litigation.
Management Fee. For the services of FMR under the management contract, the fund pays FMR a monthly management fee which has two components: a group fee rate and an individual fund fee rate.
The group fee rate is based on the monthly average net assets of all of the registered investment companies with which FMR has management contracts.
GROUP FEE RATE SCHEDULE |
EFFECTIVE ANNUAL FEE RATES |
||||
Average Group |
Annualized |
Group Net |
Effective Annual Fee |
||
0 |
- |
$3 billion |
.5200% |
$ 1 billion |
.5200% |
3 |
- |
6 |
.4900 |
50 |
.3823 |
6 |
- |
9 |
.4600 |
100 |
.3512 |
9 |
- |
12 |
.4300 |
150 |
.3371 |
12 |
- |
15 |
.4000 |
200 |
.3284 |
15 |
- |
18 |
.3850 |
250 |
.3219 |
18 |
- |
21 |
.3700 |
300 |
.3163 |
21 |
- |
24 |
.3600 |
350 |
.3113 |
24 |
- |
30 |
.3500 |
400 |
.3067 |
30 |
- |
36 |
.3450 |
450 |
.3024 |
36 |
- |
42 |
.3400 |
500 |
.2982 |
42 |
- |
48 |
.3350 |
550 |
.2942 |
48 |
- |
66 |
.3250 |
600 |
.2904 |
66 |
- |
84 |
.3200 |
650 |
.2870 |
84 |
- |
102 |
.3150 |
700 |
.2838 |
102 |
- |
138 |
.3100 |
750 |
.2809 |
138 |
- |
174 |
.3050 |
800 |
.2782 |
174 |
- |
210 |
.3000 |
850 |
.2756 |
210 |
- |
246 |
.2950 |
900 |
.2732 |
246 |
- |
282 |
.2900 |
950 |
.2710 |
282 |
- |
318 |
.2850 |
1,000 |
.2689 |
318 |
- |
354 |
.2800 |
1,050 |
.2669 |
354 |
- |
390 |
.2750 |
1,100 |
.2649 |
390 |
- |
426 |
.2700 |
1,150 |
.2631 |
426 |
- |
462 |
.2650 |
1,200 |
.2614 |
462 |
- |
498 |
.2600 |
1,250 |
.2597 |
498 |
- |
534 |
.2550 |
1,300 |
.2581 |
534 |
- |
587 |
.2500 |
1,350 |
.2566 |
587 |
- |
646 |
.2463 |
1,400 |
.2551 |
646 |
- |
711 |
.2426 |
|
|
711 |
- |
782 |
.2389 |
|
|
782 |
- |
860 |
.2352 |
|
|
860 |
- |
946 |
.2315 |
|
|
946 |
- |
1,041 |
.2278 |
|
|
1,041 |
- |
1,145 |
.2241 |
|
|
1,145 |
- |
1,260 |
.2204 |
|
|
Over |
|
1,260 |
.2167 |
|
|
<R>The group fee rate is calculated on a cumulative basis pursuant to the graduated fee rate schedule shown above on the left. The schedule above on the right shows the effective annual group fee rate at various asset levels, which is the result of cumulatively applying the annualized rates on the left. For example, the effective annual fee rate at $1,098 billion of group net assets - the approximate level for September 2006 - was 0.2650%, which is the weighted average of the respective fee rates for each level of group net assets up to $1,098 billion.</R>
<R>The fund's individual fund fee rates is 0.30%. Based on the average group net assets of the funds advised by FMR for September 2006, the fund's annual management fee rate would be calculated as follows:</R>
<R>Fund</R> |
<R>Group Fee Rate</R> |
|
<R>Individual Fund Fee Rate</R> |
|
<R>Management Fee Rate</R> |
<R>Advisor Asset Manager 70%</R> |
<R>0.2650%</R> |
<R>+</R> |
<R>0.30%</R> |
<R>=</R> |
<R>0.5650%</R> |
One-twelfth of the management fee rate is applied to the fund's average net assets for the month, giving a dollar amount which is the fee for that month.
<R>For the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, the fund paid FMR management fees of $1,001,556, $922,438, and $789,578, respectively.</R>
FMR may, from time to time, voluntarily reimburse all or a portion of a class's operating expenses (exclusive of interest, taxes, certain securities lending costs, brokerage commissions, and extraordinary expenses), which is subject to revision or discontinuance. FMR retains the ability to be repaid for these expense reimbursements in the amount that expenses fall below the limit prior to the end of the fiscal year.
Expense reimbursements by FMR will increase a class's returns and yield, and repayment of the reimbursement by a class will lower its returns and yield.
Expense reimbursements by FMR will increase a class's returns, and repayment of the reimbursement by a class will lower its returns.
Sub-Adviser - FIMM. On behalf of the fund, FMR has entered into a sub-advisory agreement with FIMM pursuant to which FIMM has day-to-day responsibility for choosing certain types of investments for the fund.
Under the terms of the sub-advisory agreement for the fund, FMR pays FIMM fees equal to 50% of the management fee payable to FMR with respect to that portion of the fund's assets that is managed by FIMM. The fees paid to FIMM are not reduced by any voluntary or mandatory expense reimbursements that may be in effect from time to time.
<R>On behalf of the fund, for the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, FMR paid FIMM fees of $0, $13,657, and $22,662, respectively.</R>
Sub-Adviser - FMRC. On behalf of the fund, FMR has entered into a sub-advisory agreement with FMRC pursuant to which FMRC has day-to-day responsibility for choosing certain types of investments for the fund.
Under the terms of the sub-advisory agreement for the fund, FMR pays FMRC fees equal to 50% of the management fee payable to FMR with respect to that portion of the fund's assets that is managed by FMRC. The fees paid to FMRC are not reduced by any voluntary or mandatory expense reimbursements that may be in effect from time to time.
<R>On behalf of the fund, for the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, FMR paid FMRC fees of $490,057, $438,507, and $367,488, respectively.</R>
Sub-Advisers - FIIA, FIIA(U.K.)L, and FIJ. On behalf of the fund, FMR has entered into a master international research agreement with FIIA. On behalf of the fund, FIIA, in turn, has entered into sub-research agreements with FIIA(U.K.)L and FIJ. Pursuant to the research agreements, FMR may receive investment advice and research services concerning issuers and countries outside the United States.
Under the terms of the master international research agreement, FMR pays FIIA an amount based on the fund's international net assets relative to the international assets of other registered investment companies with which FMR has management contracts. Under the terms of the sub-research agreements, FIIA pays FIIA(U.K.)L and FIJ an amount equal to the administrative costs incurred in providing investment advice and research services for a fund.
For providing investment advice and research services pursuant to the research agreements, fees paid to FIIA on behalf of the fund for the past three fiscal years are shown in the following table.
<R>Fiscal Year
Ended |
|
|
|
<R>FIIA</R> |
<R>2006A</R> |
|
|
|
<R>$ 4,775</R> |
<R>2005B</R> |
|
|
|
<R>$ 0</R> |
<R>2004B</R> |
|
|
|
<R>$ 4,205</R> |
A For the fiscal period December 1, 2005 to September 30, 2006.
B For the fiscal year ended November 30.
Sub-Adviser - FRAC. On behalf of the fund, FMR and FRAC have entered into a research agreement. Pursuant to the research agreement, FRAC provides investment advice and research services on domestic issuers. The Board of Trustees approved the new research agreement with FRAC on January 19, 2006.
Under the terms of the research agreement, FMR agrees, in the aggregate, to pay FRAC a monthly fee equal to 110% of FRAC's costs incurred in providing investment advice and research services for the fund.
Sub-Advisers - FMR U.K., FRAC, and FIJ. On behalf of the fund, FMR has entered into sub-advisory agreements with FMR U.K., FRAC, and FIJ. On behalf of the fund, FRAC has entered into a sub-advisory agreement with FIJ. Pursuant to the sub-advisory agreements, FMR may receive from the sub-advisers investment research and advice on issuers outside the United States (non-discretionary services) and FMR may grant the sub-advisers investment management authority and the authority to buy and sell securities if FMR believes it would be beneficial to the fund (discretionary services).
Under the terms of the sub-advisory agreements, for providing non-discretionary investment advice and research services the sub-advisers are compensated as follows:
Under the terms of the sub-advisory agreements, for providing discretionary investment management and executing portfolio transactions, the sub-advisers are compensated as follows:
For the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, no fees were paid to FMR U.K., FRAC, and FIJ on behalf of the fund for providing non-discretionary investment advice and research services pursuant to the sub-advisory agreements.
For the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, no fees were paid to FMR U.K. on behalf of the fund for providing discretionary investment management and execution of portfolio transactions pursuant to the sub-advisory agreement.
For providing discretionary investment management and execution of portfolio transactions pursuant to the sub-advisory agreements, fees paid to FRAC and FIJ for the past three fiscal years are shown in the following table.
<R>Fiscal Year
Ended |
|
<R>FRAC</R> |
<R>Fees Paid
by FRAC to |
<R>2006A</R> |
|
<R>$ 521</R> |
<R>$ 13,176</R> |
<R>2005B</R> |
|
<R>$ 83</R> |
<R>$ 4,779</R> |
<R>2004B</R> |
|
<R>$ 69</R> |
<R>$ 3,888</R> |
A For the fiscal period December 1, 2005 to September 30, 2006.
B For the fiscal year ended November 30.
Richard Habermann is the portfolio manager of the fund and receives compensation for his services. As of September 30, 2006, portfolio manager compensation generally consists of a fixed base salary determined periodically (typically annually), a bonus and, in certain cases, participation in several types of equity-based compensation plans. A portion of the portfolio manager's compensation may be deferred based on criteria established by FMR or at the election of the portfolio manager.
The portfolio manager's base salary is determined by level of responsibility and tenure at FMR or its affiliates. The primary components of the portfolio manager's bonus are based on how the portfolio manager allocates the assets of asset allocation funds and accounts among their asset classes, which results in monthly impact scores, as described below. Mr. Habermann receives a monthly impact score for each month of his tenure as manager of an asset allocation fund or account. The monthly impact scores are weighted according to his tenure on his fund(s) and account(s) and the average asset size of those fund(s) and account(s) over his tenure. The bonus is based on the aggregate impact scores for applicable annual periods eventually encompassing periods of up to five years. A smaller, subjective component of Mr. Habermann's bonus is based on the portfolio manager's overall contribution to management of FMR. The portion of Mr. Habermann's bonus that is based on his performance as portfolio manager of the fund is based on how he allocates the fund's assets among the stock, bond, and short-term/money market asset classes, which are represented by the components of the Asset Manager 70% Composite Index. The components of the Asset Manager 70% Composite Index and their relative weightings in Advisor Asset Manager 70%'s neutral mix are 60% Dow Jones Wilshire 5000; 10% MSCI EAFE Index; 25% Lehman Brothers Aggregate Bond Index; and 5% Lehman Brothers 3-Month US Treasury Bill Index. Mr. Habermann's bonus as portfolio manager of the fund is based on the percentage of the fund actually invested in each asset class. The percentage overweight or percentage underweight in each asset class relative to the neutral mix is multiplied by the performance of the index that represents that asset class over the measurement period, resulting in a positive or negative impact score.
The portfolio manager's compensation plan may give rise to potential conflicts of interest. Although investors in the fund may invest through either tax-deferred accounts or taxable accounts, the portfolio manager's compensation is linked to the pre-tax performance of the fund, rather than its after-tax performance. The portfolio manager's base pay tends to increase with additional and more complex responsibilities that include increased assets under management and a portion of the bonus relates to marketing efforts, which together indirectly link compensation to sales. When a portfolio manager takes over a fund or an account, the time period over which performance is measured may be adjusted to provide a transition period in which to assess the portfolio. The management of multiple funds and accounts (including proprietary accounts) may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees as the portfolio manager must allocate his time and investment ideas across multiple funds and accounts. In addition, a fund's trade allocation policies and procedures may give rise to conflicts of interest if the fund's orders do not get fully executed due to being aggregated with those of other accounts managed by FMR or an affiliate. The portfolio manager may execute transactions for another fund or account that may adversely impact the value of securities held by a fund. Securities selected for other funds or accounts may outperform the securities selected for the fund. Portfolio managers may be permitted to invest in the funds they manage, even if a fund is closed to new investors. Trading in personal accounts, which may give rise to potential conflicts of interest, is restricted by a fund's Code of Ethics.
<R>The following table provides information relating to other accounts managed by Mr. Habermann as of September 30, 2006:</R>
|
<R>Registered |
<R>Other
Pooled
Investment |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>7</R> |
<R>none</R> |
<R>none</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed</R> |
<R>$ 17,619</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Advisor Asset Manager 70% ($232 (in millions) assets managed).</R>
<R>As of September 30, 2006, the dollar range of shares of the fund beneficially owned by Mr. Habermann was none.</R>
The portfolio manager has allocated assets of the fund to certain central funds and an international equity sub-portfolio. As of the date of this SAI, the stock, bond and short-term/money market asset classes of the fund are invested in the following central funds:
Central Fund |
Portfolio Manager |
Stock Class: |
|
Consumer Discretionary Central Fund |
Martin Zinny |
Consumer Staples Central Fund |
Robert Lee |
Energy Central Fund |
John Dowd |
Financials Central Fund |
Charles Hebard |
Health Care Central Fund |
Matthew Sabel |
Industrials Central Fund |
Chris Bartel |
Information Technology Central Fund |
Yun-Min Chai |
Materials Central Fund |
Chris Bartel |
Telecom Services Central Fund |
Brian Younger |
Utilities Central Fund |
Douglas Simmons |
|
|
Bond Class: |
|
Tactical Income Central Fund |
Jeffrey Moore |
High Income Central Fund 1 |
Matthew Conti |
Floating Rate High Income Central Fund |
Harley Lank |
|
|
Money Market/Short-Term Class: |
|
Cash Central Fund |
Timothy Huyck |
<R>As of September 30, 2006, the international equity sub-portfolio and the following three central funds represent the largest percentage of the fund's assets: Tactical Income Central Fund, Financials Central Fund and Information Technology Central Fund. The central fund portfolio managers are compensated for the management of their respective central funds, and are not separately compensated for their services to the fund. </R>
<R>Darren Maupin manages the international equity sub-portfolio of the fund and receives compensation for his services. Jeffrey Moore is the portfolio manager of Tactical Income Central Fund and receives compensation for his services. As of September 30, 2006 (October 31, 2006 for Mr. Maupin), portfolio manager compensation generally consists of a fixed base salary determined periodically (typically annually), a bonus and, in certain cases, participation in several types of equity-based compensation plans. A portion of each portfolio manager's compensation may be deferred based on criteria established by FMR or at the election of the portfolio manager.</R>
Each portfolio manager's base salary is determined by level of responsibility and tenure at FMR or its affiliates.
The primary components of Mr. Maupin's bonus are based on (i) the pre-tax investment performance of the portfolio manager's fund(s) and account(s) measured against a benchmark index and within a defined peer group assigned to each fund or account, and (ii) the investment performance of other FMR international equity funds and accounts. The pre-tax investment performance of the portfolio manager's fund(s) and account(s) is weighted according to the portfolio manager's tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over the portfolio manager's tenure. Each component is calculated separately over the portfolio manager's tenure on those fund(s) and account(s) over a measurement period that initially is contemporaneous with the portfolio manager's tenure, but that eventually encompasses rolling periods of up to five years for the comparison to a benchmark index, and rolling periods of up to three years for the comparison to a Morningstar peer group. A smaller, subjective component of the portfolio manager's bonus is based on the portfolio manager's overall contribution to management of FMR. The portion of the portfolio manager's bonus that is linked to the investment performance of the fund is based on the pre-tax investment performance of the portion of the fund's assets he manages measured against the MSCI All Country World ex US Index (net MA tax), and within the Morningstar Foreign Large Cap Blend, Foreign Large Cap Value and Foreign Large Cap Growth Categories.
The primary components of Mr. Moore's bonus are based on (i) the pre-tax investment performance of the portfolio manager's fund(s) and account(s) measured against a benchmark index assigned to each fund or account, and (ii) the investment performance of other FMR taxable bond funds and accounts. The pre-tax investment performance of the portfolio manager's fund(s) and account(s) is weighted according to his tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over his tenure. Each component is calculated separately over his tenure on those fund(s) and account(s) over a measurement period, that initially is contemporaneous with his tenure, but that eventually encompasses a rolling period of up to three years. A subjective component of the portfolio manager's bonus is based on the portfolio manager's overall contribution to management of FMR. The portion of Mr. Moore's bonus that is linked to the investment performance of Tactical Income Central Fund is based on the fund's pre-tax investment performance measured against the Lehman Brothers Aggregate Bond Index.
Each portfolio manager also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FMR Corp., FMR's parent company. FMR Corp. is a diverse financial services company engaged in various activities that include fund management, brokerage, retirement and employer administrative services.
A portfolio manager's compensation plan may give rise to potential conflicts of interest. A portfolio manager's base pay tends to increase with additional and more complex responsibilities that include increased assets under management and a portion of the bonus relates to marketing efforts, which together indirectly link compensation to sales. When a portfolio manager takes over a fund or an account, the time period over which performance is measured may be adjusted to provide a transition period in which to assess the portfolio. The management of multiple funds and accounts (including proprietary accounts) may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees as a portfolio manager must allocate his time and investment ideas across multiple funds and accounts. In addition, a fund's trade allocation policies and procedures may give rise to conflicts of interest if the fund's orders do not get fully executed due to being aggregated with those of other accounts managed by FMR or an affiliate. A portfolio manager may execute transactions for another fund or account that may adversely impact the value of securities held by a fund. Securities selected for other funds or accounts may outperform the securities selected for the fund. Portfolio managers may be permitted to invest in the funds they manage, even if a fund is closed to new investors. Trading in personal accounts, which may give rise to potential conflicts of interest, is restricted by a fund's Code of Ethics.
<R>The following table provides information relating to other accounts managed by Mr. Maupin as of October 31, 2006:</R>
|
<R>Registered |
<R>Other
Pooled
Investment |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>6</R> |
<R>7</R> |
<R>none</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>2</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed</R> |
<R>$ 2,140</R> |
<R>$ 737</R> |
<R>none</R> |
<R>Assets Managed with Performance-Based Advisory Fees</R> |
<R>$ 1,544</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Advisor Asset Manager 70% ($10 (in millions) assets managed). </R>
<R>As of October 31, 2006, the dollar range of shares of the fund beneficially owned by Mr. Maupin was none.</R>
<R>The following table provides information relating to other accounts managed by Mr. Moore as of September 30, 2006:</R>
|
<R>Registered |
<R>Other
Pooled
Investment |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>3</R> |
<R>4</R> |
<R>10</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed</R> |
<R>$ 15,736</R> |
<R>$ 1,687</R> |
<R>$ 4,889</R> |
<R>Assets Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Tactical Income Central Fund ($5,070 (in millions) assets managed).</R>
<R>As of September 30, 2006, the dollar range of shares of Tactical Income Central Fund beneficially owned by Mr. Moore was none.</R>
Charles Hebard is the manager of Financials Central Fund and receives compensation for his services. Yun-Min Chai is the manager of Information Technology Central Fund and receives compensation for his services.
Each sector fund manager receives compensation for his services as a research analyst and as a portfolio manager under a single compensation plan. As of September 30, 2006, each sector fund manager's compensation generally consists of a fixed base salary determined periodically (typically annually), a bonus and, in certain cases, participation in several types of equity-based compensation plans. A portion of each sector fund manager's compensation may be deferred based on criteria established by FMR or at the election of the sector fund manager.
Each sector fund manager's base salary is determined primarily by level of experience and skills, and performance as a research analyst and sector fund manager at FMR or its affiliates. A portion of each sector fund manager's bonus relates to his performance as a research analyst and is based on the Director of Research's assessment of the research analyst's performance and may include factors such as portfolio manager survey-based assessments, which relate to analytical work and investment results within the relevant sector(s) and impact on other equity funds and accounts as a research analyst, and the research analyst's contributions to the research groups and to FMR. Another component of the bonus is based upon (i) the pre-tax investment performance of the sector fund manager's fund(s) and account(s) measured against a benchmark index (which may be a customized industry benchmark index developed by FMR) assigned to each fund or account, (ii) the pre-tax investment performance of the research analyst's recommendations measured against a benchmark index corresponding to the research analyst's assignment universe and against a broadly diversified equity index, and (iii) the investment performance of other FMR equity funds and accounts within the sector fund manager's designated sector team. The pre-tax investment performance of each sector fund manager's fund(s) and account(s) is weighted according to the sector fund manager's tenure on those fund(s) and account(s). The component of the bonus relating to the Director of Research's assessment is calculated over a one-year period, and each other component of the bonus is calculated over a measurement period that initially is contemporaneous with each sector fund manager's tenure, but that eventually encompasses rolling periods of up to five years. The portion of each sector fund manager's bonus that is linked to the investment performance of his fund is based on the fund's pre-tax investment performance measured against the index identified below for the fund. Each sector fund manager also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FMR Corp., FMR's parent company. FMR Corp. is a diverse financial services company engaged in various activities that include fund management, brokerage, retirement, and employer administrative services.
Fund |
Benchmark Index |
Financials Central Fund |
MSCI US Investable Market Financials Index |
Information Technology Central Fund |
MSCI US Investable Market Information Technology Index |
A sector fund manager's compensation plan may give rise to potential conflicts of interest. Although investors in a fund may invest through either tax-deferred accounts or taxable accounts, a sector fund manager's compensation is linked to the pre-tax performance of the fund, rather than its after-tax performance. A sector fund manager's base pay and bonus opportunity tend to increase with the sector fund manager's level of experience and skills relative to research and fund assignments. The management of multiple funds and accounts (including proprietary accounts) may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees as a sector fund manager must allocate his time and investment ideas across multiple funds and accounts. In addition, a Select fund's trade allocation policies and procedures may give rise to conflicts of interest if the Select fund's orders do not get fully executed due to being aggregated with those of other accounts managed by FMR or an affiliate. A sector fund manager may execute transactions for another fund or account that may adversely impact the value of securities held by the sector fund. Securities selected for other funds or accounts may outperform the securities selected for the sector fund. Trading in personal accounts, which may give rise to potential conflicts of interest, is restricted by a fund's Code of Ethics. Furthermore, the potential exists that a sector fund manager's responsibilities as a portfolio manager of a fund may not be entirely consistent with his responsibilities as a research analyst providing recommendations to other Fidelity portfolio managers.
<R>The following table provides information relating to other accounts managed by Mr. Hebard as of September 30, 2006:</R>
|
<R>Registered |
<R>Other
Pooled
Investment |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>7</R> |
<R>none</R> |
<R>none</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>1</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed</R> |
<R>$ 2,873</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed with Performance-Based Advisory Fees</R> |
<R>$ 269</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Financials Central Fund ($1,531 (in millions) assets managed). </R>
<R>The following table provides information relating to other accounts managed by Mr. Chai as of September 30, 2006:</R>
|
<R>Registered |
<R>Other
Pooled
Investment |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>6</R> |
<R>none</R> |
<R>none</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed</R> |
<R>$ 2,471</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Information Technology Central Fund ($1,054 (in millions) assets managed). </R>
<R>The following table provides the dollar range of shares of a fund beneficially owned by its sector fund manager as of September 30, 2006:</R>
Sector Fund Manager |
Fund(s) |
Dollar Range of Shares |
Charles Hebard |
Financial Services Central Fund |
none |
Yun-Min Chai |
Information Technology Central Fund |
none |
<R>The following Proxy Voting Guidelines were established by the Board of Trustees of the funds, after consultation with Fidelity. (The guidelines are reviewed periodically by Fidelity and by the Independent Trustees of the Fidelity funds, and, accordingly, are subject to change.)</R>
<R>I. General Principles</R>
<R> A. Voting of shares will be conducted in a manner consistent with the best interests of mutual fund shareholders as follows: (i) securities of a portfolio company will generally be voted in a manner consistent with the Proxy Voting Guidelines; and (ii) voting will be done without regard to any other Fidelity companies' relationship, business or otherwise, with that portfolio company.</R>
<R> B. The FMR Investment & Advisor Compliance Department votes proxies. In the event an Investment & Advisor Compliance employee has a personal conflict with a portfolio company or an employee or director of a portfolio company, that employee will withdraw from making any proxy voting decisions with respect to that portfolio company. A conflict of interest arises when there are factors that may prompt one to question whether a Fidelity employee is acting solely in the best interests of Fidelity and its customers. Employees are expected to avoid situations that could present even the appearance of a conflict between their interests and the interests of Fidelity and its customers.</R>
<R> C. Except as set forth herein, FMR will generally vote in favor of routine management proposals.</R>
<R> D. Non-routine proposals will generally be voted in accordance with the guidelines.</R>
<R> E. Non-routine proposals not covered by the guidelines or involving other special circumstances will be evaluated on a case-by-case basis with input from the appropriate FMR analyst or portfolio manager, as applicable, subject to review by an attorney within FMR's General Counsel's office and a member of senior management within FMR's Investment and Advisor Compliance Department. A significant pattern of such proposals or other special circumstances will be referred to the Fund Board Proxy Voting Committee or its designee.</R>
<R> F. FMR will vote on shareholder proposals not specifically addressed by the guidelines based on an evaluation of a proposal's likelihood to enhance the economic returns or profitability of the portfolio company or to maximize shareholder value. Where information is not readily available to analyze the economic impact of the proposal, FMR will generally abstain.</R>
<R> G. Many Fidelity Funds invest in voting securities issued by companies that are domiciled outside the United States and are not listed on a U.S. securities exchange. Corporate governance standards, legal or regulatory requirements and disclosure practices in foreign countries can differ from those in the United States. When voting proxies relating to non-U.S. securities, FMR will generally evaluate proposals in the context of these guidelines, but FMR may, where applicable and feasible, take into consideration differing laws and regulations in the relevant foreign market in determining how to vote shares.</R>
<R> H. In certain non-U.S. jurisdictions, shareholders voting shares of a portfolio company may be restricted from trading the shares for a period of time around the shareholder meeting date. Because such trading restrictions can hinder portfolio management and could result in a loss of liquidity for a fund, FMR will generally not vote proxies in circumstances where such restrictions apply. In addition, certain non-U.S. jurisdictions require voting shareholders to disclose current share ownership on a fund-by-fund basis. When such disclosure requirements apply, FMR will generally not vote proxies in order to safeguard fund holdings information.</R>
<R> I. Where a management-sponsored proposal is inconsistent with the guidelines, FMR may receive a company's commitment to modify the proposal or its practice to conform to the guidelines, and FMR will generally support management based on this commitment. If a company subsequently does not abide by its commitment, FMR will generally withhold authority for the election of directors at the next election</R>
<R>II. Definitions (as used in this document)</R>
<R> A. Anti-Takeover Provision - includes fair price amendments; classified boards; "blank check" preferred stock; golden and tin parachutes; supermajority provisions; Poison Pills; and any other provision that eliminates or limits shareholder rights.</R>
<R> B. Golden parachute - accelerated options and/or employment contracts for officers and directors that will result in a lump sum payment of more than three times annual compensation (salary and bonus) in the event of termination following a change in control.</R>
<R> C. Tin parachute - accelerated options and/or employment contracts for employees beyond officers and directors that will result in a lump sum payment in the event of termination.</R>
<R> D. Greenmail - payment of a premium to repurchase shares from a shareholder seeking to take over a company through a proxy contest or other means.</R>
<R> E. Sunset provision - a condition in a charter or plan that specifies an expiration date.</R>
<R> F. Permitted Bid Feature - a provision suspending the application of a Poison Pill, by shareholder referendum, in the event a potential acquirer announces a bona fide offer for all outstanding shares.</R>
<R> G. Poison Pill - a strategy employed by a potential take-over/target company to make its stock less attractive to an acquirer. Poison Pills are generally designed to dilute the acquirer's ownership and value in the event of a take-over.</R>
<R> H. Large Capitalization Company - a company included in the Russell 1000 stock index.</R>
<R> I. Small Capitalization Company - a company not included in the Russell 1000 stock index that is not a Micro-Capitalization Company.</R>
<R> J. Micro-Capitalization Company - a company with a market capitalization under US $300 million.</R>
<R>III. Directors</R>
<R> A. Incumbent Directors</R>
<R> FMR will generally vote in favor of incumbent and nominee directors except where one or more such directors clearly appear to have failed to exercise reasonable judgment.</R>
<R> FMR will also generally withhold authority for the election of all directors or directors on responsible committees if:</R>
<R> 1. An Anti-Takeover Provision was introduced, an Anti-Takeover Provision was extended, or a new Anti-Takeover Provision was adopted upon the expiration of an existing Anti-Takeover Provision, without shareholder approval except as set forth below.</R>
<R> With respect to Poison Pills, however, FMR will consider not withholding authority on the election of directors if all of the following conditions are met when a Poison Pill is introduced, extended, or adopted:</R>
<R> a. The Poison Pill includes a Sunset Provision of less than 5 years;</R>
<R> b. The Poison Pill includes a Permitted Bid Feature;</R>
<R> c. The Poison Pill is linked to a business strategy that will result in greater value for the shareholders; and</R>
<R> d. Shareholder approval is required to reinstate the Poison Pill upon expiration.</R>
<R> FMR will also consider not withholding authority on the election of directors when one or more of the conditions above are not met if a board is willing to strongly consider seeking shareholder ratification of, or adding above conditions noted a. and b. to an existing Poison Pill. In such a case, if the company does not take appropriate action prior to the next annual shareholder meeting, FMR will withhold authority on the election of directors.</R>
<R> 2. The company refuses, upon request by FMR, to amend the Poison Pill to allow Fidelity to hold an aggregate position of up to 20% of a company's total voting securities and of any class of voting securities.</R>
<R> 3. Within the last year and without shareholder approval, a company's board of directors or compensation committee has repriced outstanding options.</R>
<R> 4. The company failed to act in the best interests of shareholders when approving executive compensation, taking into account such factors as: (i) whether the company used an independent compensation committee; and (ii) whether the compensation committee engaged independent compensation consultants; and (iii) whether it has been proven that the company engaged in options backdating.</R>
<R> 5. To gain FMR's support on a proposal, the company made a commitment to modify a proposal or practice to conform to these guidelines and the company has failed to act on that commitment.</R>
<R> 6. The director attended fewer than 75% of the aggregate number of meetings of the board or its committees on which the director served during the company's prior fiscal year, absent extenuating circumstances.</R>
<R> B. Indemnification</R>
<R> FMR will generally vote in favor of charter and by-law amendments expanding the indemnification of directors and/or limiting their liability for breaches of care unless FMR is otherwise dissatisfied with the performance of management or the proposal is accompanied by Anti-Takeover Provisions.</R>
<R> C. Independent Chairperson</R>
<R> FMR will generally vote against shareholder proposals calling for or recommending the appointment of a non-executive or independent chairperson. However, FMR will consider voting for such proposals in limited cases if, based upon particular facts and circumstances, appointment of a non-executive or independent chairperson appears likely to further the interests of shareholders and to promote effective oversight of management by the board of directors.</R>
<R> D. Majority Director Elections</R>
<R> FMR will generally vote in favor of proposals calling for directors to be elected by an affirmative majority of votes cast in a board election, provided that the proposal allows for plurality voting standard in the case of contested elections (i.e., where there are more nominees than board seats). FMR may consider voting against such shareholder proposals where a company's board has adopted an alternative measure, such as a director resignation policy, that provides a meaningful alternative to the majority voting standard and appropriately addresses situations where an incumbent director fails to receive the support of a majority of the votes cast in an uncontested election.</R>
<R>IV. Compensation</R>
<R> A. Equity Award Plans (including stock options, restricted stock awards, and other stock awards).</R>
<R> FMR will generally vote against Equity Award Plans or amendments to authorize additional shares under such plans if:</R>
<R> 1. (a) The dilution effect of the shares outstanding and available for issuance pursuant to all plans, plus any new share requests is greater than 10% for a Large Capitalization Company, 15% for a Small Capitalization Company or 20% for a Micro-Capitalization Company; and (b) there were no circumstances specific to the company or the plans that lead FMR to conclude that the level of dilution in the plan or the amendments is acceptable.</R>
<R> 2. In the case of stock option plans, (a) the offering price of options is less than 100% of fair market value on the date of grant, except that the offering price may be as low as 85% of fair market value if the discount is expressly granted in lieu of salary or cash bonus; (b) the plan's terms allow repricing of underwater options; or (c) the board/committee has repriced options outstanding under the plan in the past two years.</R>
<R> 3. The plan may be materially altered without shareholder approval, including increasing the benefits accrued to participants under the plan; increasing the number of securities which may be issued under the plan; modifying the requirements for participation in the plan; or including a provision allowing the Board to lapse or waive restrictions at its discretion.</R>
<R> 4. Awards to non-employee directors are subject to management discretion.</R>
<R> 5. In the case of stock awards, the restriction period, or holding period after exercise, is less than 3 years for non-performance-based awards, and less than 1 year for performance-based awards.</R>
<R> FMR will consider approving an Equity Award Plan or an amendment to authorize additional shares under such plan if, without complying with the guidelines immediately above, the following two conditions are met:</R>
<R> 1. The shares are granted by a compensation committee composed entirely of independent directors; and</R>
<R> 2. The shares are limited to 5% (large capitalization company) and 10% (small capitalization company) of the shares authorized for grant under the plan.</R>
<R> B. Equity Exchanges and Repricing</R>
<R> FMR will generally vote in favor of a management proposal to exchange shares or reprice outstanding options if the proposed exchange or repricing is consistent with the interests of shareholders, taking into account such factors as:</R>
<R> 1. Whether the proposal excludes senior management and directors;</R>
<R> 2. Whether the equity proposed to be exchanged or repriced exceeded FMR's dilution thresholds when initially granted;</R>
<R> 3. Whether the exchange or repricing proposal is value neutral to shareholders based upon an acceptable pricing model;</R>
<R> 4. The company's relative performance compared to other companies within the relevant industry or industries;</R>
<R> 5. Economic and other conditions affecting the relevant industry or industries in which the company competes; and</R>
<R> 6. Any other facts or circumstances relevant to determining whether an exchange or repricing proposal is consistent with the interests of shareholders.</R>
<R> C. Employee Stock Purchase Plans</R>
<R> FMR will generally vote against employee stock purchase plans if the plan violates any of the criteria in section IV(A) above, except that the minimum stock purchase price may be equal to or greater than 85% of the stock's fair market value if the plan constitutes a reasonable effort to encourage broad based participation in the company's equity. In the case of non-U.S. company stock purchase plans, FMR may permit a lower minimum stock purchase price equal to the prevailing "best practices" in the relevant non-U.S. market, provided that the minimum stock purchase price must be at least 75% of the stock's fair market value.</R>
<R> D. Employee Stock Ownership Plans (ESOPs)</R>
<R> FMR will generally vote in favor of non-leveraged ESOPs. For leveraged ESOPs, FMR may examine the company's state of incorporation, existence of supermajority vote rules in the charter, number of shares authorized for the ESOP, and number of shares held by insiders. FMR may also examine where the ESOP shares are purchased and the dilution effect of the purchase. FMR will generally vote against leveraged ESOPs if all outstanding loans are due immediately upon change in control.</R>
<R> E. Executive Compensation</R>
<R> FMR will generally vote against management proposals on stock-based compensation plans or other compensation plans if such proposals are inconsistent with the interests of shareholders, taking into account such factors as: (i) whether the company has an independent compensation committee; and (ii) whether the compensation committee has authority to engage independent compensation consultants.</R>
<R> F. Bonus Plans and Tax Deductibility Proposals</R>
<R>FMR will generally vote in favor of cash and stock incentive plans that are submitted for shareholder approval in order to qualify for favorable tax treatment under Section 162(m) of the Internal Revenue Code, provided that the plan includes well defined and appropriate performance criteria, and with respect to any cash component, that the maximum award per participant is clearly stated and is not unreasonable or excessive.</R>
<R>V. Anti-Takeover Provisions</R>
<R> FMR will generally vote against a proposal to adopt or approve the adoption of an Anti-Takeover Provision unless:</R>
<R> A. The Poison Pill includes the following features:</R>
<R> 1. A sunset provision of no greater than 5 years;</R>
<R> 2. Linked to a business strategy that is expected to result in greater value for the shareholders;</R>
<R> 3.Requires shareholder approval to be reinstated upon expiration or if amended;</R>
<R> 4.Contains a Permitted Bid Feature; and</R>
<R> 5. Allows the Fidelity funds to hold an aggregate position of up to 20% of a company's total voting securities and of any class of voting securities.</R>
<R> B. An Anti-Greenmail proposal that does not include other Anti-Takeover Provisions; or</R>
<R> C. It is a fair price amendment that considers a two-year price history or less.</R>
<R> FMR will generally vote in favor of proposals to eliminate Anti-Takeover Provisions. In the case of proposals to declassify a board of directors, FMR will generally vote against such a proposal if the issuer's Articles of Incorporation or applicable statutes include a provision whereby a majority of directors may be removed at any time, with or without cause, by written consent, or other reasonable procedures, by a majority of shareholders entitled to vote for the election of directors.</R>
<R>VI. Capital Structure/Incorporation</R>
<R> A. Increases in Common Stock</R>
<R> FMR will generally vote against a provision to increase a Company's common stock if such increase will result in a total number of authorized shares greater than 3 times the current number of outstanding and scheduled to be issued shares, including stock options, except in the case of real estate investment trusts, where an increase that will result in a total number of authorized shares up to 5 times the current number of outstanding and scheduled to be issued shares is generally acceptable.</R>
<R> B. New Classes of Shares</R>
<R> FMR will generally vote against the introduction of new classes of stock with differential voting rights.</R>
<R> C. Cumulative Voting Rights</R>
<R> FMR will generally vote against the introduction and in favor of the elimination of cumulative voting rights.</R>
<R> D. Acquisition or Business Combination Statutes</R>
<R> FMR will generally vote in favor of proposed amendments to a company's certificate of incorporation or by-laws that enable the company to opt out of the control shares acquisition or business combination statutes.</R>
<R> E. Incorporation or Reincorporation in Another State or Country</R>
<R> FMR will generally vote against shareholder proposals calling for or recommending that a portfolio company reincorporate in the United States and vote in favor of management proposals to reincorporate in a jurisdiction outside the United States if (i) it is lawful under United States, state and other applicable law for the company to be incorporated under the laws of the relevant foreign jurisdiction and to conduct its business and (ii) reincorporating or maintaining a domicile in the United States would likely give rise to adverse tax or other economic consequences detrimental to the interests of the company and its shareholders. However, FMR will consider supporting such shareholder proposals and opposing such management proposals in limited cases if, based upon particular facts and circumstances, reincorporating in or maintaining a domicile in the relevant foreign jurisdiction gives rise to significant risks or other potential adverse consequences that appear reasonably likely to be detrimental to the interests of the company or its shareholders.</R>
<R>VII. Auditors</R>
<R> A. FMR will generally vote against shareholder proposals calling for or recommending periodic rotation of a portfolio company's auditor. FMR will consider voting for such proposals in limited cases if, based upon particular facts and circumstances, a company's board of directors and audit committee clearly appear to have failed to exercise reasonable business judgment in the selection of the company's auditor.</R>
<R> B. FMR will generally vote against shareholder proposals calling for or recommending the prohibition or limitation of the performance of non-audit services by a portfolio company's auditor. FMR will also generally vote against shareholder proposals calling for or recommending removal of a company's auditor due to, among other reasons, the performance of non-audit work by the auditor. FMR will consider voting for such proposals in limited cases if, based upon particular facts and circumstances, a company's board of directors and audit committee clearly appear to have failed to exercise reasonable business judgment in the oversight of the performance of the auditor for audit or non-audit services for the company.</R>
<R>VIII. Shares of Investment Companies</R>
<R> A. When a Fidelity Fund invests in an underlying Fidelity fund, FMR will vote in the same proportion as all other shareholders of such underlying fund or class ("echo voting").</R>
<R> B. Certain Fidelity Funds may invest in shares of Fidelity Central Funds. Central Fund shares, which are held exclusively by Fidelity funds or accounts managed by an FMR affiliate, will be voted in favor of proposals recommended by the Central Funds' Board of Trustees.</R>
<R>IX. Other</R>
<R> A. Voting Process</R>
<R> FMR will generally vote in favor of proposals to adopt confidential voting and independent vote tabulation practices.</R>
<R> B. Regulated Industries</R>
<R> Voting of shares in securities of any regulated industry (e.g. U.S. banking) organization shall be conducted in a manner consistent with conditions that may be specified by the industry's regulator (e.g. the Federal Reserve Board) for a determination under applicable law (e.g. federal banking law) that no Fund or group of Funds has acquired control of such organization.</R>
<R>To view a fund's proxy voting record for the most recent 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the SEC's web site at www.sec.gov.</R>
The fund has entered into a distribution agreement with FDC, an affiliate of FMR. The principal business address of FDC is 82 Devonshire Street, Boston, Massachusetts 02109. FDC is a broker-dealer registered under the Securities Exchange Act of 1934 and a member of the National Association of Securities Dealers, Inc. The distribution agreement calls for FDC to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the fund, which are continuously offered. Promotional and administrative expenses in connection with the offer and sale of shares are paid by FMR.
Sales charge revenues collected and retained by FDC for the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004 are shown in the following table.
|
|
<R>Sales Charge Revenue</R> |
<R>Deferred Sales Charge Revenue</R> |
||
|
<R>Fiscal Year |
<R>Amount |
<R>Amount |
<R>Amount |
<R>Amount |
<R>Class A</R> |
<R>September 30, 2006A</R> |
<R>$ 156,913</R> |
<R>$ 72,529</R> |
<R>$ 0</R> |
<R>$ 0</R> |
|
<R>2005B</R> |
<R>$ 132,417</R> |
<R>$ 67,222</R> |
<R>$ 0</R> |
<R>$ 0</R> |
|
<R>2004B</R> |
<R>$ 109,468</R> |
<R>$ 35,144</R> |
<R>$ 0</R> |
<R>$ 0</R> |
<R>Class T</R> |
<R>September 30, 2006A</R> |
<R>$ 101,024</R> |
<R>$ 23,090</R> |
<R>$ 405</R> |
<R>$ 405</R> |
|
<R>2005B</R> |
<R>$ 87,967</R> |
<R>$ 22,082</R> |
<R>$ 34</R> |
<R>$ 34</R> |
|
<R>2004B</R> |
<R>$ 57,835</R> |
<R>$ 11,539</R> |
<R>$ 0</R> |
<R>$ 0</R> |
<R>Class B</R> |
<R>September 30, 2006A</R> |
<R>--</R> |
<R>--</R> |
<R>$ 63,969</R> |
<R>$ 63,969</R> |
|
<R>2005B</R> |
<R>--</R> |
<R>--</R> |
<R>$ 77,532</R> |
<R>$ 77,532</R> |
|
<R>2004B</R> |
<R>--</R> |
<R>--</R> |
<R>$ 108,470</R> |
<R>$ 108,470</R> |
<R>Class C</R> |
<R>September 30, 2006A</R> |
<R>--</R> |
<R>--</R> |
<R>$ 5,587</R> |
<R>$ 5,587</R> |
|
<R>2005B</R> |
<R>--</R> |
<R>--</R> |
<R>$ 6,051</R> |
<R>$ 6,051</R> |
|
<R>2004B</R> |
<R>--</R> |
<R>--</R> |
<R>$ 2,448</R> |
<R>$ 2,448</R> |
A For the fiscal period December 1, 2005 to September 30, 2006.
B For the fiscal year ended November 30.
The Trustees have approved Distribution and Service Plans on behalf of Class A, Class T, Class B, Class C, and Institutional Class (the Plans) pursuant to Rule 12b-1 under the 1940 Act (the Rule). The Rule provides in substance that a mutual fund may not engage directly or indirectly in financing any activity that is primarily intended to result in the sale of shares of the fund except pursuant to a plan approved on behalf of the fund under the Rule. The Plans, as approved by the Trustees, allow Class A, Class T, Class B, Class C, and Institutional Class and FMR to incur certain expenses that might be considered to constitute direct or indirect payment by the fund of distribution expenses.
The Rule 12b-1 Plan adopted for Class A, Class T, Class B, and Class C, of the fund is described in the prospectus for that class.
The table below shows the distribution and service fees paid for Class A, Class T, Class B, and Class C of the fund for the fiscal period ended September 30, 2006.
|
<R>Distribution |
<R>Distribution |
<R>Distribution |
<R>Service
Fees |
<R>Service
Fees |
<R>Service
Fees |
<R>Class A</R> |
<R>--</R> |
<R>--</R> |
<R>--</R> |
<R>$ 132,821</R> |
<R>$ 128,527</R> |
<R>$ 4,294</R> |
<R>Class T</R> |
<R>$ 144,493</R> |
<R>$ 144,429</R> |
<R>$ 64</R> |
<R>$ 144,493</R> |
<R>$ 144,429</R> |
<R>$ 64</R> |
<R>Class B</R> |
<R>$ 250,366</R> |
<R>--</R> |
<R>$ 250,366</R> |
<R>$ 83,455</R> |
<R>$ 83,415</R> |
<R>$ 40</R> |
<R>Class C</R> |
<R>$ 228,085</R> |
<R>$ 162,111</R> |
<R>$ 65,974</R> |
<R>$ 76,029</R> |
<R>$ 54,038</R> |
<R>$ 21,991</R> |
* Amounts retained by FDC represent fees paid to FDC but not yet reallowed to intermediaries as of the close of the period reported and fees paid to FDC that are not eligible to be reallowed to intermediaries. Amounts not eligible for reallowance are retained by FDC for use in its capacity as distributor.
** This amount is retained by FDC for use in its capacity as distributor.
Under the Institutional Class Plan, if the payment of management fees by the fund to FMR is deemed to be indirect financing by the fund of the distribution of its shares, such payment is authorized by the Plan. The Institutional Class Plan specifically recognizes that FMR may use its management fee revenue, as well as its past profits or its other resources, to pay FDC for expenses incurred in connection with providing services intended to result in the sale of Institutional Class shares and/or shareholder support services. In addition, the Institutional Class Plan provides that FMR, directly or through FDC, may pay significant amounts to intermediaries, such as banks, broker-dealers, and other service-providers, that provide those services. Currently, the Board of Trustees has authorized such payments for Institutional Class shares.
Under each Class A, Class T, Class B, and Class C Plan, if the payment of management fees by the fund to FMR is deemed to be indirect financing by the fund of the distribution of its shares, such payment is authorized by each Plan. Each Class A, Class T, Class B, and Class C Plan specifically recognizes that FMR may use its management fee revenue, as well as its past profits or its other resources, to pay FDC for expenses incurred in connection with providing services intended to result in the sale of Class A, Class T, Class B, and Class C shares and/or shareholder support services, including payments of significant amounts made to intermediaries that provide those services. Currently, the Board of Trustees has authorized such payments for Class A, Class T, Class B, and Class C shares.
Prior to approving the Plan, the Trustees carefully considered all pertinent factors relating to the implementation of the Plan, and determined that there is a reasonable likelihood that the Plan will benefit Institutional Class of the fund and its shareholders. In particular, the Trustees noted that the Institutional Class Plan does not authorize payments by Institutional Class of the fund other than those made to FMR under its management contract with the fund. To the extent that the Plan gives FMR and FDC greater flexibility in connection with the distribution of Institutional Class shares, additional sales of Institutional Class shares or stabilization of cash flows may result. Furthermore, certain shareholder support services may be provided more effectively under the Plan by local entities with whom shareholders have other relationships.
Each Class A, Class T, Class B, and Class C Plan does not provide for specific payments by the applicable class of any of the expenses of FDC, or obligate FDC or FMR to perform any specific type or level of distribution activities or incur any specific level of expense in connection with distribution activities.
The fund may execute portfolio transactions with, and purchase securities issued by, depository institutions that receive payments under the Plans. No preference for the instruments of such depository institutions will be shown in the selection of investments.
FDC may compensate intermediaries that satisfy certain criteria established from time to time by FDC relating to the level or type of services provided by the intermediary, the sale or expected sale of significant amounts of shares, or other factors.
TRANSFER AND SERVICE AGENT AGREEMENTS
Each class of the fund has entered into a transfer agent agreement with Fidelity Investments Institutional Operations Company (FIIOC), an affiliate of FMR, which is located at 82 Devonshire Street, Boston, Massachusetts 02109. Under the terms of the agreement, FIIOC (or an agent, including an affiliate) performs transfer agency, dividend disbursing, and shareholder services for each class of the fund.
For providing transfer agency services, FIIOC receives a position fee and an asset-based fee each paid monthly with respect to each position in the fund. For retail accounts, these fees are based on fund type. For certain institutional accounts, these fees are based on size of position and fund type. For institutional retirement accounts, these fees are based on account type and fund type. The position fees are subject to increase based on postage rate changes.
The asset-based fees are subject to adjustment if the year-to-date total return of the S&P 500 exceeds a positive or negative 15%.
In addition, FIIOC receives the pro rata portion of the transfer agency fees applicable to shareholder accounts in a qualified tuition program (QTP), as defined under the Small Business Job Protection Act of 1996, managed by FMR or an affiliate, and in each Advisor Freedom Fund, a fund of funds managed by an FMR affiliate, according to the percentage of the QTP's or Advisor Freedom Fund's assets that is invested in the fund.
FIIOC pays out-of-pocket expenses associated with providing transfer agent services. In addition, FIIOC bears the expense of typesetting, printing, and mailing prospectuses, statements of additional information, and all other reports, notices, and statements to existing shareholders, with the exception of proxy statements.
The fund has entered into a service agent agreement with FSC, an affiliate of FMR (or an agent, including an affiliate). The fund has also entered into a securities lending administration agreement with FSC. Under the terms of the agreements, FSC calculates the NAV and dividends for each class of the fund, maintains the fund's portfolio and general accounting records, and administers the fund's securities lending program.
For providing pricing and bookkeeping services, FSC receives a monthly fee based on the fund's average daily net assets throughout the month.
The annual rates for pricing and bookkeeping services for the fund are 0.0475% of the first $500 million of average net assets, 0.0340% of average net assets between $500 million and $3.5 billion, 0.0040% of average net assets between $3.5 billion and $25 billion, and 0.0018% of average net assets in excess of $25 billion.
In addition, the fund is subject to a multiple class surcharge of 10% of the asset-based fee.
<R>For the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, the fund paid FSC pricing and bookkeeping fees of $79,120, $68,406, and $71,429, respectively.</R>
For administering the fund's securities lending program, FSC is paid based on the number and duration of individual securities loans.
<R>For the fiscal period from December 1, 2005 to September 30, 2006 and for the fiscal years ended November 30, 2005 and 2004, the fund paid FSC $1,390, $1,315, and $1,690, respectively, for securities lending.</R>
Trust Organization. Fidelity Advisor Asset Manager 70% is a fund of Fidelity Charles Street Trust, an open-end management investment company created under an initial declaration of trust dated July 7, 1981. On September 27, 2006, Fidelity Advisor Asset Manager 70% changed its name from Fidelity Advisor Asset Allocation Fund to Fidelity Advisor Asset Manager 70%. Currently, there are six funds offered in the trust: Fidelity Advisor Asset Manager 70%, Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85%, and Fidelity Global Balanced Fund. The Trustees are permitted to create additional funds in the trust and to create additional classes of the fund.
The assets of the trust received for the issue or sale of shares of each fund and all income, earnings, profits, and proceeds thereof, subject to the rights of creditors, are allocated to such fund, and constitute the underlying assets of such fund. The underlying assets of each fund in the trust shall be charged with the liabilities and expenses attributable to such fund, except that liabilities and expenses may be allocated to a particular class. Any general expenses of the trust shall be allocated between or among any one or more of the funds or classes.
Shareholder Liability. The trust is an entity commonly known as a "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for the obligations of the trust.
The Declaration of Trust contains an express disclaimer of shareholder liability for the debts, liabilities, obligations, and expenses of the trust or fund. The Declaration of Trust provides that the trust shall not have any claim against shareholders except for the payment of the purchase price of shares and requires that each agreement, obligation, or instrument entered into or executed by the trust or the Trustees relating to the trust or to a fund shall include a provision limiting the obligations created thereby to the trust or to one or more funds and its or their assets. The Declaration of Trust further provides that shareholders of a fund shall not have a claim on or right to any assets belonging to any other fund.
The Declaration of Trust provides for indemnification out of each fund's property of any shareholder or former shareholder held personally liable for the obligations of the fund solely by reason of his or her being or having been a shareholder and not because of his or her acts or omissions or for some other reason. The Declaration of Trust also provides that each fund shall, upon request, assume the defense of any claim made against any shareholder for any act or obligation of the fund and satisfy any judgment thereon. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which a fund itself would be unable to meet its obligations. FMR believes that, in view of the above, the risk of personal liability to shareholders is remote. Claims asserted against one class of shares may subject holders of another class of shares to certain liabilities.
Voting Rights. Each fund's capital consists of shares of beneficial interest. As a shareholder, you are entitled to one vote for each dollar of net asset value you own. The voting rights of shareholders can be changed only by a shareholder vote. Shares may be voted in the aggregate, by fund, and by class.
The shares have no preemptive or, for Class A, Class T, Class C, and Institutional Class shares, conversion rights. Shares are fully paid and nonassessable, except as set forth under the heading "Shareholder Liability" above.
The trust or a fund or a class may be terminated upon the sale of its assets to, or merger with, another open-end management investment company, series, or class thereof, or upon liquidation and distribution of its assets. The Trustees may reorganize, terminate, merge, or sell all or a portion of the assets of the trust or a fund or a class without prior shareholder approval. In the event of the dissolution or liquidation of the trust, shareholders of each of its funds are entitled to receive the underlying assets of such fund available for distribution. In the event of the dissolution or liquidation of a fund or a class, shareholders of that fund or that class are entitled to receive the underlying assets of the fund or class available for distribution.
Custodians. State Street Bank and Trust Company, 1776 Heritage Drive, Quincy, Massachusetts, is custodian of the assets of the fund. The custodian is responsible for the safekeeping of the fund's assets and the appointment of any subcustodian banks and clearing agencies. The Bank of New York and JPMorgan Chase Bank, each headquartered in New York, also may serve as special purpose custodians of certain assets in connection with repurchase agreement transactions.
FMR, its officers and directors, its affiliated companies, Members of the Advisory Board, and Members of the Board of Trustees may, from time to time, conduct transactions with various banks, including banks serving as custodians for certain funds advised by FMR. Transactions that have occurred to date include mortgages and personal and general business loans. In the judgment of FMR, the terms and conditions of those transactions were not influenced by existing or potential custodial or other fund relationships.
<R>Independent Registered Public Accounting Firm. PricewaterhouseCoopers LLP, 125 High Street, Boston, Massachusetts, independent registered public accounting firm, examines financial statements for the fund and provides other audit, tax, and related services.</R>
The fund's financial statements and financial highlights for the fiscal period ended September 30, 2006 and report of the independent registered public accounting firm, are included in the fund's annual report and are incorporated herein by reference.
The fund views holdings information as sensitive and limits its dissemination. The Board authorized FMR to establish and administer guidelines for the dissemination of fund holdings information, which may be amended at any time without prior notice. FMR's Disclosure Policy Committee (comprised of executive officers of FMR and its affiliates) evaluates disclosure policy with the goal of serving the fund's best interests by striking an appropriate balance between providing information about the fund's portfolio and protecting the fund from potentially harmful disclosure. The Board reviews the administration and modification of these guidelines and receives reports from the fund's chief compliance officer periodically.
<R>The fund will provide a full list of holdings monthly on www.advisor.fidelity.com 30 days after the month-end (excluding high income security holdings, which generally will be presented as an aggregate position monthly and included in a list of full holdings 60 days after its fiscal quarter end).</R>
<R>The fund will provide its top ten holdings (excluding cash and futures) as of the end of the calendar quarter on Fidelity's web site 15 or more days after the calendar quarter-end.</R>
This information will be available on the web site until updated for the next applicable period.
The Use of Holdings In Connection With Fund Operations. Material non-public holdings information may be provided as part of the investment activities of the fund to: entities which, by explicit agreement or by virtue of their respective duties to the fund, are required to maintain the confidentiality of the information disclosed; other parties if legally required; or persons FMR believes will not misuse the disclosed information. These entities, parties, and persons include: the fund's trustees; the fund's manager, its sub-advisers and their affiliates whose access persons are subject to a code of ethics; contractors who are subject to a confidentiality agreement; the fund's auditors; the fund's custodians; proxy voting service providers; financial printers; pricing service vendors; broker-dealers in connection with the purchase or sale of securities or requests for price quotations or bids on one or more securities; securities lending agents; counsel to the fund or its Independent Trustees; regulatory authorities; stock exchanges and other listing organizations; parties to litigation; an issuer, regarding the number of shares of the issuer (or percentage of outstanding shares) held by the fund; and third-parties in connection with a bankruptcy proceeding relating to a fund holding. Non-public holdings information may also be provided to issuers regarding the number or percentage of its shares that are owned by a fund and in connection with redemptions in kind.
Other Uses Of Holdings Information. In addition, the fund may provide material non-public holdings information to (i) third-parties that calculate information derived from holdings for use by FMR or its affiliates, (ii) third parties that supply their analyses of holdings (but not the holdings themselves) to their clients (including sponsors of retirement plans or their consultants), (iii) ratings and rankings organizations, and (iv) an investment adviser, trustee, or their agents to whom holdings are disclosed for due diligence purposes or in anticipation of a merger involving the fund. Each individual request is reviewed by the Disclosure Policy Committee which must find, in its sole discretion that, based on the specific facts and circumstances, the disclosure appears unlikely to be harmful to the fund. Entities receiving this information must have in place control mechanisms to reasonably ensure or otherwise agree that, (a) the holdings information will be kept confidential, (b) no employee shall use the information to effect trading or for their personal benefit, and (c) the nature and type of information that they, in turn, may disclose to third-parties is limited. FMR relies primarily on the existence of non-disclosure agreements and/or control mechanisms when determining that disclosure is not likely to be harmful to the fund.
At this time, the entities receiving information described in the preceding paragraph are: Factset Research Systems Inc. (full holdings daily, on the next business day); Kynex Inc. (full holdings weekly, one business day after the end of the week); Thomson Vestek (full holdings, as of the end of the calendar quarter, 15 calendar days after the calendar quarter-end); Standard & Poor's Rating Services (full holdings weekly, four or more calendar days after the end of the week); Moody's Investors Service (full holdings weekly, four or more calendar days after the end of the week); and Anacomp Inc. (full or partial holdings daily, on the next business day).
FMR, its affiliates, or the fund will not enter into any arrangements with third-parties from which they derive consideration for the disclosure of material non-public holdings information. If, in the future, FMR desired to make such an arrangement, it would seek prior Board approval and any such arrangements would be disclosed in the fund's SAI.
There can be no assurance that the fund's policies and procedures with respect to disclosure of fund portfolio holdings will prevent the misuse of such information by individuals and firms that receive such information.
Fidelity and Fidelity Investments & (Pyramid) Design are registered trademarks of FMR Corp.
Fidelity Advisor Asset Manager is a service mark of FMR Corp.
The third party marks appearing above are the marks of their respective owners.
Like securities of all mutual funds, these securities have not been approved or disapproved by the Securities and Exchange Commission, and the Securities and Exchange Commission has not determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
Fidelity®
Global Balanced
Fund
<R>(fund number 334, trading symbol FGBLX)</R>
Prospectus
<R>June 29, 2007</R>
(fidelity_logo_graphic)
82 Devonshire Street, Boston, MA 02109
Fund Summary |
Investment Summary |
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Performance |
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Fee Table |
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Fund Basics |
Investment Details |
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|
Valuing Shares |
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Shareholder Information |
Buying and Selling Shares |
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Exchanging Shares |
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|
Features and Policies |
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Dividends and Capital Gain Distributions |
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Tax Consequences |
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Fund Services |
Fund Management |
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Fund Distribution |
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Appendix |
Financial Highlights |
Prospectus
Investment Objective
Global Balanced Fund seeks income and capital growth consistent with reasonable risk.
Principal Investment Strategies
Principal Investment Risks
An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money.
The following information is intended to help you understand the risks of investing in the fund. The information illustrates the changes in the fund's performance from year to year, and compares the fund's performance to the performance of a market index, a combination of market indexes, and an additional index over various periods of time. Returns (before and after taxes) are based on past results and are not an indication of future performance.
<R>Global Balanced</R> |
||||||||||
<R>Calendar Years</R> |
<R>1997</R> |
<R>1998</R> |
<R>1999</R> |
<R>2000</R> |
<R>2001</R> |
<R>2002</R> |
<R>2003</R> |
<R>2004</R> |
<R>2005</R> |
<R>2006</R> |
|
<R>12.52%</R> |
<R>17.75%</R> |
<R>23.03%</R> |
<R>-5.97%</R> |
<R>-8.15%</R> |
<R>-6.14%</R> |
<R>29.90%</R> |
<R>13.67%</R> |
<R>9.00%</R> |
<R>13.70%</R> |
<R>
</R>
<R>During the periods shown in the chart for Global Balanced:</R> |
<R>Returns</R> |
<R>Quarter ended</R> |
<R>Highest Quarter Return</R> |
<R> 14.26%</R> |
<R>December 31, 1999</R> |
<R>Lowest Quarter Return</R> |
<R> -9.91%</R> |
<R>September 30, 2002</R> |
<R>Year-to-Date Return</R> |
<R> 3.10%</R> |
<R>March 31, 2007</R> |
Prospectus
Fund Summary - continued
Average Annual Returns
After-tax returns are calculated using the historical highest individual federal marginal income tax rates, but do not reflect the impact of state or local taxes. Return After Taxes on Distributions and Sale of Fund Shares may be higher than other returns for the same period due to a tax benefit of realizing a capital loss upon the sale of fund shares. Actual after-tax returns may differ depending on your individual circumstances. The after-tax returns shown are not relevant if you hold your shares in a retirement account or in another tax-deferred arrangement.
<R>For the periods ended |
<R>Past 1 |
<R>Past 5 |
<R>Past
10 |
<R>Global Balanced</R> |
|
|
|
<R>Return Before Taxes</R> |
<R> 13.70%</R> |
<R> 11.42%</R> |
<R> 9.23%</R> |
<R>Return After Taxes on Distributions</R> |
<R> 11.55%</R> |
<R> 10.37%</R> |
<R> 8.18%</R> |
<R>Return After Taxes on Distributions and Sale of Fund Shares</R> |
<R> 10.59%</R> |
<R> 9.62%</R> |
<R> 7.66%</R> |
<R>Morgan Stanley Capital InternationalSM (MSCI®) World Index |
<R> 20.50%</R> |
<R> 10.39%</R> |
<R> 7.85%</R> |
<R>Citigroup® World Government Bond Index (reflects no deduction for fees, expenses, or taxes)</R> |
<R> 6.12%</R> |
<R> 8.41%</R> |
<R> 5.24%</R> |
<R>Fidelity Global Balanced Composite Index (reflects no deduction for fees, expenses, or taxes)</R> |
<R> 14.63%</R> |
<R> 9.67%</R> |
<R> 7.02%</R> |
Morgan Stanley Capital InternationalSM (MSCI®) World Index is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of developed stock markets throughout the world and excludes certain market segments unavailable to U.S. based investors. Index returns for periods after October 31, 2001 are adjusted for tax withholding rates applicable to U.S. based mutual funds organized as Massachusetts business trusts.
Citigroup® World Government Bond Index is a market value-weighted index of investment-grade debt issues traded in various world government bond markets.
Fidelity Global Balanced Composite Index is a hypothetical representation of the performance of the fund's general investment categories and uses a weighting of 60% equity and 40% bond. The following indexes are used to represent the fund's investment categories when calculating the composite index: equity - the MSCI World Index, and bond - the Citigroup World Government Bond Index.
The following table describes the fees and expenses that are incurred when you buy, hold, or sell shares of the fund. The annual fund operating expenses provided below for the fund do not reflect the effect of any reduction of certain expenses during the period.
Shareholder fees (paid by the investor directly)
Sales charge (load) on purchases and reinvested distributions |
None |
Deferred sales charge (load) on redemptions |
None |
Redemption fee on shares held less than 30 days (as a % of amount redeemed)A |
1.00% |
A A redemption fee may be charged when you sell your shares or if your shares are redeemed because your fund balance falls below the balance minimum for any reason, including solely due to declines in net asset value per share.
Annual operating expenses (paid from fund assets)
<R>Management fee </R> |
<R>0.72%</R> |
<R>Distribution and/or Service (12b-1) fees</R> |
<R>None</R> |
<R>Other expenses </R> |
<R>0.46%</R> |
<R>Total annual fund operating expensesA</R> |
<R>1.18%</R> |
<R>A Effective February 1, 2005, FMR has voluntarily agreed to reimburse Global Balanced to the extent that total operating expenses (excluding interest, taxes, certain securities lending costs, brokerage commissions, and extraordinary expenses), as a percentage of its average net assets, exceed 1.25%. This arrangement may be discontinued by FMR at any time.</R>
Prospectus
This example helps you compare the cost of investing in the fund with the cost of investing in other mutual funds.
Let's say, hypothetically, that the fund's annual return is 5% and that your shareholder fees and the fund's annual operating expenses are exactly as described in the fee table. This example illustrates the effect of fees and expenses, but is not meant to suggest actual or expected fees and expenses or returns, all of which may vary. For every $10,000 you invested, here's how much you would pay in total expenses if you sell all of your shares at the end of each time period indicated:
<R>1 year</R> |
<R>$ 120</R> |
<R>3 years</R> |
<R>$ 375</R> |
<R>5 years</R> |
<R>$ 649</R> |
<R>10 years</R> |
<R>$ 1,432</R> |
Prospectus
Investment Objective
Global Balanced Fund seeks income and capital growth consistent with reasonable risk.
Principal Investment Strategies
Fidelity Management & Research Company (FMR) invests the fund's assets in equity and debt securities, including lower-quality debt securities, issued anywhere in the world, including the United States. The proportions of the fund's assets invested in each type of security vary based on FMR's interpretation of economic conditions and underlying security values. However, FMR always invests at least 25% of the fund's total assets in fixed-income senior securities (including debt securities and preferred stock).
FMR normally diversifies the fund's investments across different countries and regions. In allocating the fund's investments across countries and regions, FMR will consider the size of the market in each country and region relative to the size of the world market as a whole.
In buying and selling securities for the fund, FMR generally analyzes the issuer of a security using fundamental factors (e.g., growth potential, earnings estimates, and management) and evaluates each security's current price relative to its estimated long-term value.
In addition to the principal investment strategies discussed above, FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund.
FMR may also use various techniques, such as buying and selling futures contracts and exchange traded funds, to increase or decrease the fund's exposure to changing security prices, interest rates, or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective.
Description of Principal Security Types
Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy of the issuer. Equity securities include common stocks, preferred stocks, convertible securities, and warrants.
Debt securities are used by issuers to borrow money. The issuer usually pays a fixed, variable, or floating rate of interest, and must repay the amount borrowed, usually at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay current interest but are sold at a discount from their face values. Debt securities include corporate bonds, government securities, repurchase agreements, mortgage and other asset-backed securities, and other securities that FMR believes have debt-like characteristics, including hybrids and synthetic securities.
Principal Investment Risks
Many factors affect the fund's performance. The fund's share price changes daily based on changes in market conditions and interest rates and in response to other economic, political, or financial developments. The fund's reaction to these developments will be affected by the types of securities in which the fund invests, the financial condition, industry and economic sector, and geographic location of an issuer, and the fund's level of investment in the securities of that issuer. When you sell your shares they may be worth more or less than what you paid for them, which means that you could lose money.
The following factors can significantly affect the fund's performance:
Stock Market Volatility. The value of equity securities fluctuates in response to issuer, political, market, and economic developments. In the short term, equity prices can fluctuate dramatically in response to these developments. Different parts of the market and different types of equity securities can react differently to these developments. For example, large cap stocks can react differently from small cap stocks, and "growth" stocks can react differently from "value" stocks. Issuer, political, or economic developments can affect a single issuer, issuers within an industry or economic sector or geographic region, or the market as a whole. Terrorism and related geo-political risks have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally.
Interest Rate Changes. Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities and mortgage securities can be more sensitive to interest rate changes.
Foreign Exposure. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial, and other operational risks; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently from the U.S. market.
Investing in emerging markets can involve risks in addition to and greater than those generally associated with investing in more developed foreign markets. The extent of economic development; political stability; market depth, infrastructure, and capitalization; and regulatory oversight can be less than in more developed markets. Emerging market economies can be subject to greater social, economic, regulatory, and political uncertainties. All of these factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.
Prepayment. Many types of debt securities, including mortgage securities, are subject to prepayment risk. Prepayment risk occurs when the issuer of a security can repay principal prior to the security's maturity. Securities subject to prepayment can offer less potential for gains during a declining interest rate environment and similar or greater potential for loss in a rising interest rate environment. In addition, the potential impact of prepayment features on the price of a debt security can be difficult to predict and result in greater volatility.
Prospectus
Fund Basics - continued
Issuer-Specific Changes. Changes in the financial condition of an issuer or counterparty, changes in specific economic or political conditions that affect a particular type of security or issuer, and changes in general economic or political conditions can affect a security's or instrument's credit quality or value. The value of securities of smaller, less well-known issuers can be more volatile than that of larger issuers. Lower-quality debt securities (those of less than investment-grade quality) and certain types of other securities tend to be particularly sensitive to these changes.
Lower-quality debt securities and certain types of other securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities and certain types of other securities often fluctuates in response to company, political, or economic developments and can decline significantly over short periods of time or during periods of general or regional economic difficulty.
In response to market, economic, political, or other conditions, FMR may temporarily use a different investment strategy for defensive purposes. If FMR does so, different factors could affect the fund's performance and the fund may not achieve its investment objective.
Fundamental Investment Policies
The policy discussed below is fundamental, that is, subject to change only by shareholder approval.
Global Balanced Fund seeks income and capital growth consistent with reasonable risk.
Country or Geographic Region
FMR considers non-U.S. securities to include investments that are tied economically to a particular country or region outside the U.S. FMR considers a number of factors to determine whether an investment is tied economically to a particular country or region including: the source of government guarantees (if any); the primary trading market; the issuer's domicile, sources of revenue, and location of assets; whether the investment is included in an index representative of a particular country or region; and whether the investment is exposed to the economic fortunes and risks of a particular country or region.
The fund is open for business each day the New York Stock Exchange (NYSE) is open.
The fund's net asset value per share (NAV) is the value of a single share. Fidelity normally calculates the fund's NAV as of the close of business of the NYSE, normally 4:00 p.m. Eastern time. However, NAV may be calculated earlier if trading on the NYSE is restricted or as permitted by the Securities and Exchange Commission (SEC). The fund's assets are valued as of this time for the purpose of computing the fund's NAV.
To the extent that the fund's assets are traded in other markets on days when the fund is not open for business, the value of the fund's assets may be affected on those days. In addition, trading in some of the fund's assets may not occur on days when the fund is open for business.
The fund's assets are valued primarily on the basis of market quotations or official closing prices. Certain short-term securities are valued on the basis of amortized cost. If market quotations or official closing prices are not readily available or do not accurately reflect fair value for a security or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security will be valued by another method that the Board of Trustees believes accurately reflects fair value in accordance with the Board's fair value pricing policies. For example, arbitrage opportunities may exist when trading in a portfolio security or securities is halted and does not resume before a fund calculates its NAV. These arbitrage opportunities may enable short-term traders to dilute the NAV of long-term investors. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio security values occur after the close of the overseas market but prior to the close of the U.S. market. Fair value pricing will be used for high yield debt and floating rate loans when available pricing information is determined to be stale or for other reasons not to accurately reflect fair value. To the extent the fund invests in other open-end funds, the fund will calculate its NAV using the NAV of the underlying funds in which it invests as described in the underlying funds' prospectuses. The fund may invest in other Fidelity funds that use the same fair value pricing policies as the fund or in Fidelity money market funds. A security's valuation may differ depending on the method used for determining value. Fair valuation of the fund's portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there is no assurance that fair value pricing policies will prevent dilution of the fund's NAV by short-term traders. While the fund has policies regarding excessive trading, these too may not be effective to prevent short-term NAV arbitrage trading, particularly in regard to omnibus accounts.
Prospectus
General Information
Fidelity Investments was established in 1946 to manage one of America's first mutual funds. Today, Fidelity is the largest mutual fund company in the country, and is known as an innovative provider of high-quality financial services to individuals and institutions.
In addition to its mutual fund business, the company operates one of America's leading brokerage firms, Fidelity Brokerage Services LLC. Fidelity is also a leader in providing tax-advantaged retirement plans for individuals investing on their own or through their employer.
You may buy or sell shares of the fund through a Fidelity brokerage account or a Fidelity mutual fund account. If you buy or sell shares of the fund (other than by exchange) through a Fidelity brokerage account, your transactions generally involve your Fidelity brokerage core (a settlement vehicle included as part of your Fidelity brokerage account).
If you do not currently have a Fidelity brokerage account or a Fidelity mutual fund account and would like to invest in the fund, you may need to complete an application. For more information about a Fidelity brokerage account or a Fidelity mutual fund account, please visit Fidelity's web site at www.fidelity.com, call 1-800-FIDELITY, or visit a Fidelity Investor Center (call 1-800-544-9797 for the center nearest you).
You may also buy or sell shares of the fund through a retirement account (such as an IRA or an account funded through salary deduction) or an investment professional. Retirement specialists are available at 1-800-544-4774 to answer your questions about Fidelity retirement products. If you buy or sell shares of the fund through a retirement account or an investment professional, the procedures for buying, selling, and exchanging shares of the fund and the account features, policies, and fees may differ from those discussed in this prospectus. Fees in addition to those discussed in this prospectus may also apply. For example, you may be charged a transaction fee if you buy or sell shares of the fund through a non-Fidelity broker or other investment professional.
Buying and Selling Information |
Internet www.fidelity.com |
Phone Fidelity Automated Service Telephone (FAST®) 1-800-544-5555 To reach a Fidelity representative 1-800-544-6666 |
Additional purchases: Redemptions: |
TDD - Service for the Deaf and Hearing Impaired 1-800-544-0118 (9:00 a.m. - 9:00 p.m. Eastern time) |
You should include the following information with any order to buy, sell, or exchange shares:
|
Certain methods of contacting Fidelity, such as by telephone or electronically, may be unavailable or delayed (for example, during periods of unusual market activity). In addition, the level and type of service available may be restricted based on criteria established by Fidelity.
Minimums |
|
Initial Purchase |
$2,500 |
For Fidelity Simplified Employee Pension-IRA and Keogh accounts, and Non-Fidelity Prototype Retirement accounts |
$500 |
Through regular investment plans in Fidelity Traditional IRAs, Roth IRAs, and Rollover IRAsA |
$200 |
Subsequent Purchase |
$250 |
Through regular investment plans |
$100 |
Balance |
$2,000 |
For Fidelity Simplified Employee Pension-IRA and Keogh accounts, and Non-Fidelity Prototype Retirement accounts |
$500 |
A Requires monthly purchases of $200 until fund balance is $2,500.
There is no minimum balance or initial or subsequent purchase minimum for investments through Portfolio Advisory ServicesSM , a mutual fund or a qualified tuition program for which FMR or an affiliate serves as investment manager, certain Fidelity retirement accounts funded through salary deduction, or fund positions opened with the proceeds of distributions from such retirement accounts. In addition, the fund may waive or lower purchase minimums in other circumstances.
Prospectus
Shareholder Information - continued
The fund may reject for any reason, or cancel as permitted or required by law, any purchase orders, including exchanges.
For example, the fund may reject any purchase orders, including exchanges, from market timers or investors that, in FMR's opinion, may be disruptive to the fund.
Frequent purchases and sales of fund shares can harm shareholders in various ways, including reducing the returns to long-term shareholders by increasing costs to the fund (such as brokerage commissions), disrupting portfolio management strategies, and diluting the value of the shares of long-term shareholders in cases in which fluctuations in markets are not fully priced into the fund's NAV. Accordingly, the Board of Trustees has adopted policies and procedures designed to discourage excessive or short-term trading of fund shares. However, there is the risk that the fund's policies and procedures will prove ineffective in whole or in part to detect or prevent frequent trading. The fund may alter its policies at any time without prior notice to shareholders.
There is no minimum holding period and shareholders can sell their shares at any time. Shareholders will ordinarily comply with the fund's policies regarding excessive trading by allowing 90 days to pass after each investment before they sell or exchange from the fund. The fund may take action if shares are held longer than 90 days if the trading is disruptive for other reasons such as unusually large trade size. The fund reserves the right, but does not have the obligation, to reject any purchase or exchange transaction at any time. In addition, the fund reserves the right to impose restrictions on purchases or exchanges at any time or conditions that are more restrictive on disruptive, excessive, or short-term trading than those that are otherwise stated in this prospectus. In addition to these policies, the fund imposes a short-term redemption fee on redemptions from the fund which is discussed in "Selling Shares."
Excessive trading activity is measured by the number of roundtrip transactions in a shareholder's account. A roundtrip transaction occurs when a shareholder buys and then sells shares of a fund within 30 days. Shareholders are limited to two roundtrip transactions per fund within any rolling 90-day period, subject to an overall limit of four roundtrip transactions across all Fidelity funds over a rolling 12-month period. Transactions of $1,000 or less, systematic withdrawal and/or contribution programs, mandatory retirement distributions, and transactions initiated by a plan sponsor will not count toward the roundtrip limits. For employer-sponsored retirement plans, only participant directed exchanges will count toward the roundtrip limits.
Shareholders with two or more roundtrip transactions in a single fund within a rolling 90-day period will be blocked from making additional purchases or exchange purchases of the fund for 85 days. Shareholders with four or more roundtrip transactions across all Fidelity funds within any rolling 12-month period will be blocked for 85 days from additional purchases or exchange purchases across all Fidelity funds. Any roundtrip within 12 months of the expiration of a multi-fund block will initiate another multi-fund block for an 85-day period. For repeat offenders, FMR may, but does not have the obligation to, impose long-term or permanent blocks on purchase or exchange purchase transactions in any account under the shareholder's common control at any time, other than a participant's account held through an employer-sponsored retirement plan. Employer-sponsored retirement plan participants whose activity triggers a purchase or exchange block will be permitted one trade every calendar quarter. In the event of a block, employer and participant contributions and loan repayments by the participant may still be invested in the fund.
Qualified wrap programs will be monitored by matching the adviser's orders for purchase, exchange, or sale transactions in fund shares to determine if the adviser's orders comply with the fund's frequent trading policies. Additions to and withdrawals from a qualified wrap program by the adviser's client will not be matched with transactions initiated by the adviser. Therefore if the adviser buys shares of a fund and an individual client subsequently sells shares of the same fund within 30 days, the client's transaction is not matched with the adviser's and therefore does not count as a roundtrip. However, client initiated transactions are subject to the fund's policies on frequent trading and individual clients will be subject to restrictions due to their frequent trading in a wrap account. Excessive trading by an adviser will lead to fund blocks and the wrap program will cease to be a qualified wrap program. If the wrap program is blocked from making additional purchases or exchange purchases of a fund because of excessive trading by the adviser the wrap program will no longer be considered qualified and any transaction whether initiated by the adviser or the client will be matched when counting roundtrips. Wrap account client purchases and sale transactions will be monitored under the fund's monitoring policy as though the wrap clients were fund shareholders. A qualified wrap program is: (i) a program whose adviser certifies that it has investment discretion over $100 million or more in client assets invested in mutual funds at the time of the certification, (ii) a program in which the adviser directs transactions in the accounts participating in the program in concert with changes in a model portfolio, and (iii) managed by an adviser who agrees to give FMR sufficient information to permit FMR to identify the individual accounts in the wrap program.
The fund's excessive trade monitoring policy described above does not apply to transactions initiated by the trustee or adviser to a donor-advised charitable gift fund, qualified fund-of-fund(s) or other strategy funds, or omnibus accounts. Trustees or advisers of donor-advised charitable gift funds must certify to the fund's satisfaction that they either work from an asset allocation model or direct transactions in their accounts in concert with changes in a model portfolio and that participants are limited in their ability to influence investments by the trust. A qualified fund-of-fund(s) is a mutual fund, qualified tuition program, or other strategy fund consisting of qualified plan assets that either applies the Fidelity funds' policies on frequent trading to shareholders at the fund-of-fund(s) level, or demonstrates that the fund-of-fund(s) has policies designed to control frequent trading and that they are reasonably likely to be effective as determined by the Fidelity funds' Treasurer. The adviser to the fund-of-fund(s) must also demonstrate to the Fidelity funds' Treasurer that its investment strategy will not lead to excessive trading. Omnibus accounts are maintained by intermediaries acting on behalf of multiple investors whose individual trades are not ordinarily disclosed to the fund. Short-term trading by these investors is likely to go undetected by the fund and may increase costs and disrupt portfolio management. The fund will monitor aggregate trading in qualified fund-of-funds and known omnibus accounts to attempt to identify disruptive trades, focusing on transactions in excess of $250,000. There is no assurance that these policies will be effective, or will successfully detect or deter market timing.
Prospectus
The fund's Treasurer is authorized to suspend the fund's policies during periods of severe market turbulence or national emergency.
The fund does not knowingly accommodate frequent purchases and redemptions of fund shares by investors, except as provided under the fund's policies with respect to known omnibus accounts, qualified fund-of-fund(s), qualified wrap accounts, donor-advised charitable gift funds, and 30 day roundtrips.
Buying Shares
The price to buy one share of the fund is the fund's NAV. The fund's shares are sold without a sales charge.
Your shares will be bought at the next NAV calculated after your investment is received in proper form.
<R>The fund has authorized certain intermediaries to accept orders to buy shares on its behalf. When authorized intermediaries receive an order in proper form, the order is considered as being placed with the fund, and shares will be bought at the next NAV calculated after the order is received by the authorized intermediary. Orders by funds of funds for which FMR or an affiliate serves as investment manager will be treated as received by the fund at the same time that the corresponding orders are received in proper form by the funds of funds.</R>
The fund may stop offering shares completely or may offer shares only on a limited basis, for a period of time or permanently.
If you place an order to buy shares and your payment is not received and collected, your purchase may be canceled and you could be liable for any losses or fees the fund or Fidelity has incurred.
Certain financial institutions that have entered into sales agreements with Fidelity Distributors Corporation (FDC) may enter confirmed purchase orders on behalf of customers by phone, with payment to follow no later than the time when the fund is priced on the following business day. If payment is not received by that time, the order will be canceled and the financial institution could be held liable for resulting fees or losses.
Under applicable anti-money laundering regulations and other federal regulations, purchase orders may be suspended, restricted, or canceled and the monies may be withheld.
Selling Shares
The price to sell one share of the fund is its NAV, minus the short-term redemption fee, if applicable.
If you sell your shares after holding them less than 30 days, a 1.00% short-term redemption fee may be deducted from the redemption amount. For this purpose, shares held longest will be treated as being redeemed first and shares held shortest as being redeemed last. The fees are paid to the fund, not Fidelity, and are designed to help offset the brokerage commissions, market impact, and other costs associated with short-term shareholder trading.
The short-term redemption fee does not apply to: (i) redemptions of shares acquired by reinvesting dividends and distributions; (ii) rollovers, transfers, and changes of account registration within a fund as long as the money never leaves the fund; and (iii) redemptions in kind.
The fund also permits waivers of the short-term redemption fee for the following transactions:
The application of short-term redemption fees and waivers may vary among intermediaries and certain intermediaries may not apply the waivers listed above. If you purchase or sell fund shares through an intermediary, you should contact your intermediary for more information on whether the short-term redemption fee will be applied to redemptions of your shares.
The fund reserves the right to modify or eliminate the short-term redemption fee or waivers at any time. Investment advisers or their affiliates may pay short-term redemption fees on behalf of investors in managed accounts. Unitized group accounts consisting of qualified plan assets may be treated as a single account for redemption fee purposes.
Fidelity seeks to identify intermediaries that hold fund shares in omnibus accounts and will refuse their purchase orders if they do not agree to track and remit short-term redemption fees based on the transactions of underlying investors. There are no assurances that Fidelity will successfully identify all intermediaries or that the intermediaries will properly assess short-term redemption fees.
Your shares will be sold at the next NAV calculated after your order is received in proper form, minus the short-term redemption fee, if applicable. Normally, redemptions will be processed by the next business day, but it may take up to seven days to pay the redemption proceeds if making immediate payment would adversely affect the fund.
Prospectus
Shareholder Information - continued
<R>The fund has authorized certain intermediaries to accept orders to sell shares on its behalf. When authorized intermediaries receive an order in proper form, the order is considered as being placed with the fund, and shares will be sold at the next NAV calculated, minus the short-term redemption fee, if applicable, after the order is received by the authorized intermediary. Orders by funds of funds for which FMR or an affiliate serves as investment manager will be treated as received by the fund at the same time that the corresponding orders are received in proper form by the funds of funds.</R>
Certain requests must include a signature guarantee. It is designed to protect you and Fidelity from fraud. If you hold your shares in a Fidelity mutual fund account and submit your request to Fidelity by mail, your request must be made in writing and include a signature guarantee if any of the following situations apply:
You should be able to obtain a signature guarantee from a bank, broker (including Fidelity Investor Centers), dealer, credit union (if authorized under state law), securities exchange or association, clearing agency, or savings association. A notary public cannot provide a signature guarantee.
When you place an order to sell shares, note the following:
To sell shares issued with certificates, call Fidelity for instructions. The fund no longer issues share certificates.
An exchange involves the redemption of all or a portion of the shares of one fund and the purchase of shares of another fund.
As a shareholder, you have the privilege of exchanging shares of the fund for shares of other Fidelity funds.
However, you should note the following policies and restrictions governing exchanges:
The fund may terminate or modify the exchange privilege in the future.
Other funds may have different exchange restrictions and minimums, and may impose redemption fees of up to 2.00% of the amount exchanged. Check each fund's prospectus for details.
Features
The following features may be available to buy and sell shares of the fund or to move money to and from your account, depending on whether you are investing through a Fidelity brokerage account or a Fidelity mutual fund account. Please visit Fidelity's web site at www.fidelity.com or call 1-800-544-6666 for more information.
Prospectus
Electronic Funds Transfer: electronic money movement through the Automated Clearing House
- Make periodic (automatic) purchases of Fidelity fund shares or payments to your Fidelity brokerage account. - Make periodic (automatic) redemptions of Fidelity fund shares or withdrawals from your Fidelity brokerage account. |
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Wire: electronic money movement through the Federal Reserve wire system
|
||
Automatic Transactions: periodic (automatic) transactions
|
Policies
The following policies apply to you as a shareholder.
Statements that Fidelity sends to you include the following:
To reduce expenses, only one copy of most financial reports and prospectuses may be mailed to households, even if more than one person in a household holds shares of the fund. Call Fidelity at 1-800-544-8544 if you need additional copies of financial reports or prospectuses. If you do not want the mailing of these documents to be combined with those for other members of your household, contact Fidelity in writing at P.O. Box 770001, Cincinnati, Ohio 45277-0002.
Electronic copies of most financial reports and prospectuses are available at Fidelity's web site. To participate in Fidelity's electronic delivery program, call Fidelity or visit Fidelity's web site for more information.
You may initiate many transactions by telephone or electronically. Fidelity will not be responsible for any loss, cost, expense, or other liability resulting from unauthorized transactions if it follows reasonable security procedures designed to verify the identity of the investor. Fidelity will request personalized security codes or other information, and may also record calls. For transactions conducted through the Internet, Fidelity recommends the use of an Internet browser with 128-bit encryption. You should verify the accuracy of your confirmation statements upon receipt and notify Fidelity immediately of any discrepancies in your account activity. If you do not want the ability to sell and exchange by telephone, call Fidelity for instructions.
You may be asked to provide additional information in order for Fidelity to verify your identity in accordance with requirements under anti-money laundering regulations. Accounts may be restricted and/or closed, and the monies withheld, pending verification of this information or as otherwise required under these and other federal regulations.
Fidelity may deduct a small balance maintenance fee of $12.00 from a fund balance with a value of less than $2,000. It is expected that fund balances will be valued on the second Friday in November of each calendar year. Fund positions opened after September 30 will not be subject to the fee for that calendar year. The fee, which is payable to Fidelity, is designed to offset in part the relatively higher costs of servicing smaller fund positions. This fee will not be deducted from fund positions opened after January 1 of that calendar year if those positions use regular investment plans.
You will be given 30 days' notice to reestablish the minimum balance if your fund balance falls below $2,000 ($500 for fund balances in Fidelity Simplified Employee Pension-IRA and Keogh accounts, and Non-Fidelity Prototype Retirement accounts), for any reason, including solely due to declines in NAV. If you do not increase your balance, Fidelity may sell all of your shares and send the proceeds to you. Your shares will be sold at the NAV, minus the short-term redemption fee, if applicable, on the day Fidelity closes your fund position. Certain fund positions are not subject to these balance requirements and will not be closed for failure to maintain a minimum balance.
Fidelity may charge a fee for certain services, such as providing historical account documents.
The fund earns dividends, interest, and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. The fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions.
Prospectus
Shareholder Information - continued
The fund normally pays dividends and capital gain distributions in December.
Distribution Options
<R>When you open an account, specify on your application how you want to receive your distributions. The following distribution options are available for the fund:</R>
1. Reinvestment Option. Your dividends and capital gain distributions will be automatically reinvested in additional shares of the fund. If you do not indicate a choice on your application, you will be assigned this option.
2. Income-Earned Option. Your capital gain distributions will be automatically reinvested in additional shares of the fund. Your dividends will be paid in cash.
3. Cash Option. Your dividends and capital gain distributions will be paid in cash.
4. Directed Dividends® Option. Your dividends will be automatically invested in shares of another identically registered Fidelity fund. Your capital gain distributions will be automatically invested in shares of another identically registered Fidelity fund, automatically reinvested in additional shares of the fund, or paid in cash.
If the distribution option you prefer is not listed on your account application, or if you want to change your current distribution option, visit Fidelity's web site at www.fidelity.com or call 1-800-544-6666 for more information.
If you elect to receive distributions paid in cash by check and the U.S. Postal Service does not deliver your checks, your distribution option may be converted to the Reinvestment Option. You will not receive interest on amounts represented by uncashed distribution checks.
If your dividend check(s) remains uncashed for more than six months, your check(s) may be invested in additional shares of the fund at the next NAV calculated on the day of the investment.
As with any investment, your investment in the fund could have tax consequences for you. If you are not investing through a tax-advantaged retirement account, you should consider these tax consequences.
Taxes on distributions. Distributions you receive from the fund are subject to federal income tax, and may also be subject to state or local taxes.
For federal tax purposes, certain of the fund's distributions, including dividends and distributions of short-term capital gains, are taxable to you as ordinary income, while certain of the fund's distributions, including distributions of long-term capital gains, are taxable to you generally as capital gains. A percentage of certain distributions of dividends may qualify for taxation at long-term capital gains rates (provided certain holding period requirements are met).
If you buy shares when a fund has realized but not yet distributed income or capital gains, you will be "buying a dividend" by paying the full price for the shares and then receiving a portion of the price back in the form of a taxable distribution.
Any taxable distributions you receive from the fund will normally be taxable to you when you receive them, regardless of your distribution option.
Taxes on transactions. Your redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment in the fund generally is the difference between the cost of your shares and the price you receive when you sell them.
Prospectus
The fund is a mutual fund, an investment that pools shareholders' money and invests it toward a specified goal.
FMR is the fund's manager. The address of FMR and its affiliates, unless otherwise indicated below, is 82 Devonshire Street, Boston, Massachusetts 02109.
<R>As of December 31, 2006, FMR had approximately $1.6 billion in discretionary assets under management.</R>
As the manager, FMR has overall responsibility for directing the fund's investments and handling its business affairs.
<R>FMR Co., Inc. (FMRC) serves as a sub-adviser for the fund. FMRC has day-to-day responsibility for choosing investments for the fund.</R>
<R>FMRC is an affiliate of FMR. As of December 31, 2006, FMRC had approximately $766.7 billion in discretionary assets under management.</R>
<R>Fidelity Research & Analysis Company (FRAC), formerly known as Fidelity Management & Research (Far East) Inc., serves as a sub-adviser for the fund. FRAC, an affiliate of FMR, was organized in 1986 to provide investment research and advice on issuers based outside the United States and currently also provides investment research and advice on domestic issuers. FRAC may provide investment research and advice and may also provide investment advisory services for the fund.</R>
Affiliates assist FMR with foreign investments:
Derek Young is vice president and lead manager of Global Balanced Fund, which he has managed since January 2006. He also manages other Fidelity funds. Since joining Fidelity Investments in 1996, Mr. Young has worked as director of Risk Management, senior vice president of Strategic Services and portfolio manager.
Ruben Calderon is assistant manager of Global Balanced Fund, which he has managed since December 2006. Since joining Fidelity Investments in 1995, Mr. Calderon has worked as a research analyst and asset allocation strategist.
<R>Melissa Reilly is vice president and co-manager of Global Balanced Fund, which she has managed since May 2007. She also manages other Fidelity funds. Prior to joining Fidelity Investments in 2004, Ms. Reilly worked for Putnam Investments as a research analyst, senior vice president and portfolio manager from 1999 until 2004.</R>
<R>Leon Tucker is vice president and co-manager of Global Balanced Fund, which he has managed since April 2007. Since joining Fidelity Investments in 1997, Mr. Tucker has worked as an analyst, director of research in Hong Kong and portfolio manager.</R>
<R></R>
Ronald Slattery is vice president and co-manager of Global Balanced Fund, which he has managed since December 2004. Since joining Fidelity Investments in 1999, Mr. Slattery has worked as an analyst, director of research in Tokyo and portfolio manager.
John Lo is co-manager of Global Balanced Fund, which he has managed since February 2007. Since joining Fidelity Investments in 1993, Mr. Lo has worked as both an investment analyst and as a portfolio manager. In conjunction with his portfolio management responsibilities, he is currently the country head of Equity Investments for Fidelity International Limited in Singapore.
Andrew Weir is vice president and co-manager of Global Balanced Fund, which he has managed since January 2006. Since joining Fidelity Investments in 1997, Mr. Weir has worked as a quantitative research analyst, director of research and portfolio manager.
<R>The statement of additional information (SAI) provides additional information about the compensation of, any other accounts managed by, and any fund shares held by Messrs. Young, Calderon, Feingold, Tucker, Lo, Weir, and Ms. Reilly.</R>
From time to time a manager, analyst, or other Fidelity employee may express views regarding a particular company, security, industry, or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Prospectus
Fund Services - continued
<R>The fund pays a management fee to FMR. The management fee is calculated and paid to FMR every month. The fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve, and multiplying the result by the fund's average net assets throughout the month.</R>
The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above 0.52%, and it drops as total assets under management increase.
<R>For October 2006, the group fee rate was 0.26%. The individual fund fee rate is 0.45%.</R>
<R>The total management fee for the fiscal year ended October 31, 2006, was 0.72% of the fund's average net assets.</R>
FMR pays FMRC and FMR U.K. for providing sub-advisory services. FMR and its affiliates pay FRAC for providing sub-advisory services. FMR pays FIIA for providing sub-advisory services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FRAC in turn pays FIJ for providing sub-advisory services.
<R>The basis for the Board of Trustees approving the management contract and sub-advisory agreements for the fund is available in the fund's semi-annual report for the fiscal period ended April 30, 2007, and annual report for the fiscal period ended October 31, 2006.</R>
FMR may, from time to time, agree to reimburse the fund for management fees and other expenses above a specified limit. FMR retains the ability to be repaid by the fund if expenses fall below the specified limit prior to the end of the fiscal year. Reimbursement arrangements, which may be discontinued by FMR at any time, can decrease the fund's expenses and boost its performance.
FDC distributes the fund's shares.
Intermediaries, including retirement plan sponsors, service-providers, and administrators, may receive from FMR, FDC, and/or their affiliates compensation for providing recordkeeping and administrative services, as well as other retirement plan expenses, and compensation for services intended to result in the sale of shares of the fund. These payments are described in more detail on the following pages and in the SAI.
The fund has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (1940 Act) that recognizes that FMR may use its management fee revenues, as well as its past profits or its resources from any other source, to pay FDC for expenses incurred in connection with providing services intended to result in the sale of fund shares and/or shareholder support services. FMR, directly or through FDC, may pay significant amounts to intermediaries, including retirement plan sponsors, service-providers, and administrators, that provide those services. Currently, the Board of Trustees of the fund has authorized such payments.
<R>If payments made by FMR to FDC or to intermediaries under the Distribution and Service Plan were considered to be paid out of the fund's assets on an ongoing basis, they might increase the cost of your investment and might cost you more than paying other types of sales charges.</R>
From time to time, FDC may offer special promotional programs to investors who purchase shares of Fidelity funds. For example, FDC may offer merchandise, discounts, vouchers, or similar items to investors who purchase shares of certain Fidelity funds during certain periods. To determine if you qualify for any such programs, contact Fidelity or visit our web site at www.fidelity.com.
No dealer, sales representative, or any other person has been authorized to give any information or to make any representations, other than those contained in this prospectus and in the related SAI, in connection with the offer contained in this prospectus. If given or made, such other information or representations must not be relied upon as having been authorized by the fund or FDC. This prospectus and the related SAI do not constitute an offer by the fund or by FDC to sell shares of the fund to or to buy shares of the fund from any person to whom it is unlawful to make such offer.
Prospectus
<R>The financial highlights table is intended to help you understand the fund's financial history for the past 5 years. Certain information reflects financial results for a single share of the fund. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose reports, along with the fund's financial highlights and financial statements, is included in the fund's annual report. A free copy of the annual report is available upon request.</R>
Selected Per-Share Data and Ratios
<R>Years ended October 31,</R> |
<R>2006</R> |
<R>2005</R> |
<R>2004</R> |
<R>2003</R> |
<R>2002</R> |
<R>Selected Per-Share Data </R> |
|
|
|
|
|
<R>Net asset value, beginning of period </R> |
<R>$ 21.95</R> |
<R>$ 19.69</R> |
<R>$ 18.06</R> |
<R>$ 14.84</R> |
<R>$ 15.36</R> |
<R>Income from Investment Operations</R> |
|
|
|
|
|
<R>Net investment income (loss) B </R> |
<R> .28</R> |
<R> .17E</R> |
<R> .10F</R> |
<R> .15</R> |
<R> .17</R> |
<R>Net realized and unrealized gain (loss) </R> |
<R> 2.66</R> |
<R> 2.54</R> |
<R> 1.85</R> |
<R> 3.29</R> |
<R> (.66)</R> |
<R>Total from investment operations </R> |
<R> 2.94</R> |
<R> 2.71</R> |
<R> 1.95</R> |
<R> 3.44</R> |
<R> (.49)</R> |
<R>Distributions from net investment income </R> |
<R> (.14)</R> |
<R> (.13)</R> |
<R> (.32)</R> |
<R> (.22)</R> |
<R> (.03)</R> |
<R>Distributions from net realized gain </R> |
<R> (1.67)</R> |
<R> (.32)</R> |
<R> -</R> |
<R> -</R> |
<R> -</R> |
<R>Total distributions </R> |
<R> (1.81)</R> |
<R> (.45)</R> |
<R> (.32)</R> |
<R> (.22)</R> |
<R> (.03)</R> |
<R>Redemption fees added to paid in capital B </R> |
<R> - H</R> |
<R> - H</R> |
<R> - H</R> |
<R> - H</R> |
<R> - H</R> |
<R>Net asset value, end of period </R> |
<R>$ 23.08</R> |
<R>$ 21.95</R> |
<R>$ 19.69</R> |
<R>$ 18.06</R> |
<R>$ 14.84</R> |
<R>Total Return A </R> |
<R> 14.23%</R> |
<R> 13.92%</R> |
<R> 10.93%</R> |
<R> 23.49%</R> |
<R> (3.20)%</R> |
<R>Ratios to Average Net Assets C, G</R> |
|
|
|
|
|
<R>Expenses before reductions </R> |
<R> 1.18%</R> |
<R> 1.17%</R> |
<R> 1.20%</R> |
<R> 1.29%</R> |
<R> 1.29%</R> |
<R>Expenses net of fee waivers, if any </R> |
<R> 1.18%</R> |
<R> 1.17%</R> |
<R> 1.20%</R> |
<R> 1.29%</R> |
<R> 1.29%</R> |
<R>Expenses net of all reductions </R> |
<R> 1.14%</R> |
<R> 1.15%</R> |
<R> 1.19%</R> |
<R> 1.28%</R> |
<R> 1.27%</R> |
<R>Net investment income (loss) </R> |
<R> 1.27%</R> |
<R> .80%E</R> |
<R> .54%F</R> |
<R> .98%</R> |
<R> 1.07%</R> |
<R>Supplemental Data</R> |
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|
|
|
|
<R>Net assets, end of period (000 omitted) </R> |
<R>$ 260,144</R> |
<R>$ 191,247</R> |
<R>$ 137,619</R> |
<R>$ 115,864</R> |
<R>$ 88,263</R> |
<R>Portfolio turnover rate D </R> |
<R> 208%</R> |
<R> 95%</R> |
<R> 94%</R> |
<R> 113%</R> |
<R> 126%</R> |
A <R>Total returns would have been lower had certain expenses not been reduced during the periods shown.</R>
B <R>Calculated based on average shares outstanding during the period.</R>
C <R>Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expense of any underlying Fidelity Central Funds.</R>
D <R>Amount does not include the portfolio activity of any underlying Fidelity Central Funds.</R>
E <R>Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .66%.</R>
F <R>Net investment income per share includes approximately $.05 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income to average net assets would have been .26%.</R>
G <R>Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.</R>
H <R>Amount represents less than $.01 per share.</R>
Prospectus
Notes
Notes
Notes
IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT To help the government fight the funding of terrorism and money laundering activities, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT ACT), requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account. For individual investors opening an account: When you open an account, you will be asked for your name, address, date of birth, and other information that will allow Fidelity to identify you. You may also be asked to provide documents that may help to establish your identity, such as your driver's license. For investors other than individuals: When you open an account, you will be asked for the name of the entity, its principal place of business and taxpayer identification number (TIN) and may be requested to provide information on persons with authority or control over the account such as name, residential address, date of birth and social security number. You may also be asked to provide documents, such as drivers' licenses, articles of incorporation, trust instruments or partnership agreements and other information that will help Fidelity identify the entity. |
You can obtain additional information about the funds. A description of the fund's policies and procedures for disclosing its holdings is available in the fund's SAI and on Fidelity's web sites. The SAI also includes more detailed information about the fund and its investments. The SAI is incorporated herein by reference (legally forms a part of the prospectus). The fund's annual and semi-annual reports also include additional information. The fund's annual report includes a discussion of the fund's holdings and recent market conditions and the fund's investment strategies that affected performance.
For a free copy of any of these documents or to request other information or ask questions about the fund, call Fidelity at 1-800-544-8544. In addition, you may visit Fidelity's web site at www.fidelity.com for a free copy of a prospectus, SAI, or annual or semi-annual report or to request other information.
The SAI, the fund's annual and semi-annual reports and other related materials are available from the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) Database on the SEC's web site (http://www.sec.gov). You can obtain copies of this information, after paying a duplicating fee, by sending a request by e-mail to publicinfo@sec.gov or by writing the Public Reference Section of the SEC, Washington, D.C. 20549-0102. You can also review and copy information about the funds, including the fund's SAI, at the SEC's Public Reference Room in Washington, D.C. Call 1-202-551-8090 for information on the operation of the SEC's Public Reference Room. Investment Company Act of 1940, File Number, 811-03221 |
Fidelity, Fidelity Investments & (Pyramid) Design, FAST, Fidelity GoalPlanner, and Directed Dividends are registered trademarks of FMR Corp.
Portfolio Advisory Services is a service mark of FMR Corp.
The third party marks appearing above are the marks of their respective owners.
<R>1.848647.100 GBL-pro-0607</R>
Fidelity® Global Balanced Fund
A Fund of Fidelity Charles Street Trust
STATEMENT OF ADDITIONAL INFORMATION
<R>June 29, 2007</R>
This statement of additional information (SAI) is not a prospectus. Portions of the fund's annual report are incorporated herein. The annual report is supplied with this SAI.
<R>To obtain a free additional copy of the prospectus or SAI, dated June 29, 2007, or an annual report, please call Fidelity at 1-800-544-8544 or visit Fidelity's web site at www.fidelity.com.</R>
TABLE OF CONTENTS |
PAGE |
Investment Policies and Limitations |
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Special Considerations Regarding Canada |
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Special Considerations Regarding Europe |
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Special Considerations Regarding Japan |
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Special Considerations Regarding Asia Pacific Region (ex Japan) |
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Special Considerations Regarding Latin America |
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Special Considerations Regarding Emerging Markets |
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Special Considerations Regarding Russia |
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Portfolio Transactions |
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Valuation |
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Buying, Selling, and Exchanging Information |
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Distributions and Taxes |
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Trustees and Officers |
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Control of Investment Advisers |
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<R>Management Contract</R> |
<R><Click Here></R> |
Proxy Voting Guidelines |
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Distribution Services |
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Transfer and Service Agent Agreements |
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Description of the Trust |
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Financial Statements |
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Fund Holdings Information |
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Appendix |
<R>GBL-ptb-0607
1.848648.100</R>
(fidelity_logo_graphic)
82 Devonshire Street, Boston, MA 02109
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the prospectus. Unless otherwise noted, whenever an investment policy or limitation states a maximum percentage of the fund's assets that may be invested in any security or other asset, or sets forth a policy regarding quality standards, such standard or percentage limitation will be determined immediately after and as a result of the fund's acquisition of such security or other asset. Accordingly, any subsequent change in values, net assets, or other circumstances will not be considered when determining whether the investment complies with the fund's investment policies and limitations.
The fund's fundamental investment policies and limitations cannot be changed without approval by a "majority of the outstanding voting securities" (as defined in the Investment Company Act of 1940 (1940 Act)) of the fund. However, except for the fundamental investment limitations listed below, the investment policies and limitations described in this SAI are not fundamental and may be changed without shareholder approval.
The following are the fund's fundamental investment limitations set forth in their entirety.
Diversification
The fund may not with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, or securities of other investment companies) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer.
Senior Securities
The fund may not issue senior securities, except in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise permitted under the Investment Company Act of 1940.
Borrowing
The fund may not borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation.
Underwriting
The fund may not underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities or in connection with investments in other investment companies.
Concentration
The fund may not purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry.
For purposes of the fund's concentration limitation discussed above, with respect to any investment in Fidelity Money Market Central Fund and/or any non-money market central fund, Fidelity Management & Research Company (FMR) looks through to the holdings of the central fund.
For purposes of the fund's concentration limitation discussed above, FMR may analyze the characteristics of a particular issuer and security and assign an industry or sector classification consistent with those characteristics in the event that the third party classification provider used by FMR does not assign a classification.
Real Estate
The fund may not purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business).
Commodities
The fund may not purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities).
Loans
The fund may not lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements, or to acquisitions of loans, loan participations or other forms of debt instruments.
Pooled Funds
The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objective, policies, and limitations as the fund.
The following investment limitations are not fundamental and may be changed without shareholder approval.
Short Sales
The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short.
Margin Purchases
The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin.
Borrowing
The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of the fundamental borrowing investment limitation).
Illiquid Securities
The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued.
For purposes of the fund's illiquid securities limitation discussed above, if through a change in values, net assets, or other circumstances, the fund were in a position where more than 15% of its net assets were invested in illiquid securities, it would consider appropriate steps to protect liquidity.
Loans
The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 15% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) assuming any unfunded commitments in connection with the acquisition of loans, loan participations, or other forms of debt instruments. (This limitation does not apply to purchases of debt securities, to repurchase agreements, or to acquisitions of loans, loan participations or other forms of debt instruments.)
Pooled Funds
The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objective, policies, and limitations as the fund.
In addition to the fund's fundamental and non-fundamental limitations discussed above:
For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" on page <Click Here>.
For purposes of investing at least 25% of the fund's total assets in fixed-income senior securities, FMR interprets "total assets" to exclude collateral received for securities lending transactions and treats investment-grade debt securities, lower-quality debt securities, and preferred stock as "fixed-income senior securities."
The following pages contain more detailed information about types of instruments in which the fund may invest, strategies FMR may employ in pursuit of the fund's investment objective, and a summary of related risks. FMR may not buy all of these instruments or use all of these techniques unless it believes that doing so will help the fund achieve its goal.
Affiliated Bank Transactions. A fund may engage in transactions with financial institutions that are, or may be considered to be, "affiliated persons" of the fund under the 1940 Act. These transactions may involve repurchase agreements with custodian banks; short-term obligations of, and repurchase agreements with, the 50 largest U.S. banks (measured by deposits); municipal securities; U.S. Government securities with affiliated financial institutions that are primary dealers in these securities; short-term currency transactions; and short-term borrowings. In accordance with exemptive orders issued by the Securities and Exchange Commission (SEC), the Board of Trustees has established and periodically reviews procedures applicable to transactions involving affiliated financial institutions.
Asset-Backed Securities represent interests in pools of mortgages, loans, receivables, or other assets. Payment of interest and repayment of principal may be largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds, or other credit enhancements. Asset-backed security values may also be affected by other factors including changes in interest rates, the availability of information concerning the pool and its structure, the creditworthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities providing the credit enhancement. In addition, these securities may be subject to prepayment risk.
Borrowing. The fund may borrow from banks or from other funds advised by FMR or its affiliates, or through reverse repurchase agreements. If the fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If the fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage.
Cash Management. A fund can hold uninvested cash or can invest it in cash equivalents such as money market securities, repurchase agreements, or shares of money market or short-term bond funds. Generally, these securities offer less potential for gains than other types of securities.
Central Funds are special types of investment vehicles created by Fidelity for use by the Fidelity funds and other advisory clients. FMR uses central funds to invest in particular security types or investment disciplines, or for cash management. Central funds incur certain costs related to their investment activity (such as custodial fees and expenses), but do not pay additional management fees to Fidelity. The investment results of the portions of the fund's assets invested in the central funds will be based upon the investment results of those funds.
Common Stock represents an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock.
Convertible Securities are bonds, debentures, notes, or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at a stated exchange ratio. A convertible security may also be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by the fund is called for redemption or conversion, the fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a third party.
Convertible securities generally have less potential for gain or loss than common stocks. Convertible securities generally provide yields higher than the underlying common stocks, but generally lower than comparable non-convertible securities. Because of this higher yield, convertible securities generally sell at prices above their "conversion value," which is the current market value of the stock to be received upon conversion. The difference between this conversion value and the price of convertible securities will vary over time depending on changes in the value of the underlying common stocks and interest rates. When the underlying common stocks decline in value, convertible securities will tend not to decline to the same extent because of the interest or dividend payments and the repayment of principal at maturity for certain types of convertible securities. However, securities that are convertible other than at the option of the holder generally do not limit the potential for loss to the same extent as securities convertible at the option of the holder. When the underlying common stocks rise in value, the value of convertible securities may also be expected to increase. At the same time, however, the difference between the market value of convertible securities and their conversion value will narrow, which means that the value of convertible securities will generally not increase to the same extent as the value of the underlying common stocks. Because convertible securities may also be interest-rate sensitive, their value may increase as interest rates fall and decrease as interest rates rise. Convertible securities are also subject to credit risk, and are often lower-quality securities.
Country or Geographic Region. FMR considers a number of factors to determine whether an investment is tied economically to a particular country or region including: whether the investment is issued or guaranteed by a particular government or any of its agencies, political subdivisions, or instrumentalities; whether the investment has its primary trading market in a particular country or region; whether the issuer is organized under the laws of, derives at least 50% of its revenues from, or has at least 50% of its assets in a particular country or region; whether the investment is included in an index representative of a particular country or region; and whether the investment is exposed to the economic fortunes and risks of a particular country or region.
Debt Securities are used by issuers to borrow money. The issuer usually pays a fixed, variable, or floating rate of interest, and must repay the amount borrowed, usually at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay interest but are sold at a deep discount from their face values. Debt securities include corporate bonds, government securities, repurchase agreements, and mortgage and other asset-backed securities.
Exposure to Foreign Markets. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations may involve significant risks in addition to the risks inherent in U.S. investments.
Foreign investments involve risks relating to local political, economic, regulatory, or social instability, military action or unrest, or adverse diplomatic developments, and may be affected by actions of foreign governments adverse to the interests of U.S. investors. Such actions may include expropriation or nationalization of assets, confiscatory taxation, restrictions on U.S. investment or on the ability to repatriate assets or convert currency into U.S. dollars, or other government intervention. Additionally, governmental issuers of foreign debt securities may be unwilling to pay interest and repay principal when due and may require that the conditions for payment be renegotiated. There is no assurance that FMR will be able to anticipate these potential events or counter their effects. In addition, the value of securities denominated in foreign currencies and of dividends and interest paid with respect to such securities will fluctuate based on the relative strength of the U.S. dollar.
It is anticipated that in most cases the best available market for foreign securities will be on an exchange or in over-the-counter (OTC) markets located outside of the United States. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers may be less liquid and more volatile than securities of comparable U.S. issuers. Foreign security trading, settlement and custodial practices (including those involving securities settlement where fund assets may be released prior to receipt of payment) are often less developed than those in U.S. markets, and may result in increased risk or substantial delays in the event of a failed trade or the insolvency of, or breach of duty by, a foreign broker-dealer, securities depository, or foreign subcustodian. In addition, the costs associated with foreign investments, including withholding taxes, brokerage commissions, and custodial costs, are generally higher than with U.S. investments.
Foreign markets may offer less protection to investors than U.S. markets. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to U.S. issuers. Adequate public information on foreign issuers may not be available, and it may be difficult to secure dividends and information regarding corporate actions on a timely basis. In general, there is less overall governmental supervision and regulation of securities exchanges, brokers, and listed companies than in the United States. OTC markets tend to be less regulated than stock exchange markets and, in certain countries, may be totally unregulated. Regulatory enforcement may be influenced by economic or political concerns, and investors may have difficulty enforcing their legal rights in foreign countries.
Some foreign securities impose restrictions on transfer within the United States or to U.S. persons. Although securities subject to such transfer restrictions may be marketable abroad, they may be less liquid than foreign securities of the same class that are not subject to such restrictions.
American Depositary Receipts (ADRs) as well as other "hybrid" forms of ADRs, including European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs), are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the United States or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution in the issuer's home country. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. ADRs are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. However, ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. These risks include foreign exchange risk as well as the political and economic risks of the underlying issuer's country.
The risks of foreign investing may be magnified for investments in emerging markets. Security prices in emerging markets can be significantly more volatile than those in more developed markets, reflecting the greater uncertainties of investing in less established markets and economies. In particular, countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets, and may have less protection of property rights than more developed countries. The economies of countries with emerging markets may be based on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme and volatile debt burdens or inflation rates. Local securities markets may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of holdings difficult or impossible at times.
Foreign Currency Transactions. The fund may conduct foreign currency transactions on a spot (i.e., cash) or forward basis (i.e., by entering into forward contracts to purchase or sell foreign currencies). Although foreign exchange dealers generally do not charge a fee for such conversions, they do realize a profit based on the difference between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency at one rate, while offering a lesser rate of exchange should the counterparty desire to resell that currency to the dealer. Forward contracts are customized transactions that require a specific amount of a currency to be delivered at a specific exchange rate on a specific date or range of dates in the future. Forward contracts are generally traded in an interbank market directly between currency traders (usually large commercial banks) and their customers. The parties to a forward contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated currency exchange.
The following discussion summarizes the principal currency management strategies involving forward contracts that could be used by the fund. The fund may also use swap agreements, indexed securities, and options and futures contracts relating to foreign currencies for the same purposes.
A "settlement hedge" or "transaction hedge" is designed to protect a fund against an adverse change in foreign currency values between the date a security is purchased or sold and the date on which payment is made or received. Entering into a forward contract for the purchase or sale of the amount of foreign currency involved in an underlying security transaction for a fixed amount of U.S. dollars "locks in" the U.S. dollar price of the security. Forward contracts to purchase or sell a foreign currency may also be used by the fund in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected by FMR.
The fund may also use forward contracts to hedge against a decline in the value of existing investments denominated in foreign currency. For example, if the fund owned securities denominated in pounds sterling, it could enter into a forward contract to sell pounds sterling in return for U.S. dollars to hedge against possible declines in the pound's value. Such a hedge, sometimes referred to as a "position hedge," would tend to offset both positive and negative currency fluctuations, but would not offset changes in security values caused by other factors. The fund could also hedge the position by selling another currency expected to perform similarly to the pound sterling. This type of hedge, sometimes referred to as a "proxy hedge," could offer advantages in terms of cost, yield, or efficiency, but generally would not hedge currency exposure as effectively as a direct hedge into U.S. dollars. Proxy hedges may result in losses if the currency used to hedge does not perform similarly to the currency in which the hedged securities are denominated.
The fund may enter into forward contracts to shift its investment exposure from one currency into another. This may include shifting exposure from U.S. dollars to a foreign currency, or from one foreign currency to another foreign currency. This type of strategy, sometimes known as a "cross-hedge," will tend to reduce or eliminate exposure to the currency that is sold, and increase exposure to the currency that is purchased, much as if the fund had sold a security denominated in one currency and purchased an equivalent security denominated in another. Cross-hedges protect against losses resulting from a decline in the hedged currency, but will cause the fund to assume the risk of fluctuations in the value of the currency it purchases.
Successful use of currency management strategies will depend on FMR's skill in analyzing currency values. Currency management strategies may substantially change the fund's investment exposure to changes in currency exchange rates and could result in losses to the fund if currencies do not perform as FMR anticipates. For example, if a currency's value rose at a time when FMR had hedged the fund by selling that currency in exchange for dollars, the fund would not participate in the currency's appreciation. If FMR hedges currency exposure through proxy hedges, the fund could realize currency losses from both the hedge and the security position if the two currencies do not move in tandem. Similarly, if FMR increases the fund's exposure to a foreign currency and that currency's value declines, the fund will realize a loss. There is no assurance that FMR's use of currency management strategies will be advantageous to the fund or that it will hedge at appropriate times.
Foreign Repurchase Agreements. Foreign repurchase agreements involve an agreement to purchase a foreign security and to sell that security back to the original seller at an agreed-upon price in either U.S. dollars or foreign currency. Unlike typical U.S. repurchase agreements, foreign repurchase agreements may not be fully collateralized at all times. The value of a security purchased by the fund may be more or less than the price at which the counterparty has agreed to repurchase the security. In the event of default by the counterparty, the fund may suffer a loss if the value of the security purchased is less than the agreed-upon repurchase price, or if the fund is unable to successfully assert a claim to the collateral under foreign laws. As a result, foreign repurchase agreements may involve higher credit risks than repurchase agreements in U.S. markets, as well as risks associated with currency fluctuations. In addition, as with other emerging market investments, repurchase agreements with counterparties located in emerging markets or relating to emerging markets may involve issuers or counterparties with lower credit ratings than typical U.S. repurchase agreements.
Fund's Rights as Investors. The fund does not intend to direct or administer the day-to-day operations of any company. The fund, however, may exercise its rights as a shareholder or lender and may communicate its views on important matters of policy to management, the Board of Directors, shareholders of a company, and holders of other securities of the company when FMR determines that such matters could have a significant effect on the value of the fund's investment in the company. The activities in which the fund may engage, either individually or in conjunction with others, may include, among others, supporting or opposing proposed changes in a company's corporate structure or business activities; seeking changes in a company's directors or management; seeking changes in a company's direction or policies; seeking the sale or reorganization of the company or a portion of its assets; supporting or opposing third-party takeover efforts; supporting the filing of a bankruptcy petition; or foreclosing on collateral securing a security. This area of corporate activity is increasingly prone to litigation and it is possible that the fund could be involved in lawsuits related to such activities. FMR will monitor such activities with a view to mitigating, to the extent possible, the risk of litigation against the fund and the risk of actual liability if the fund is involved in litigation. No guarantee can be made, however, that litigation against the fund will not be undertaken or liabilities incurred. The fund's proxy voting guidelines are included in this SAI.
Futures, Options, and Swaps. The following paragraphs pertain to futures, options, and swaps: Combined Positions, Correlation of Price Changes, Futures Contracts, Futures Margin Payments, Limitations on Futures and Options Transactions, Liquidity of Options and Futures Contracts, Options and Futures Relating to Foreign Currencies, OTC Options, Purchasing Put and Call Options, Writing Put and Call Options, and Swap Agreements.
Combined Positions involve purchasing and writing options in combination with each other, or in combination with futures or forward contracts, to adjust the risk and return characteristics of the overall position. For example, purchasing a put option and writing a call option on the same underlying instrument would construct a combined position whose risk and return characteristics are similar to selling a futures contract. Another possible combined position would involve writing a call option at one strike price and buying a call option at a lower price, to reduce the risk of the written call option in the event of a substantial price increase. Because combined options positions involve multiple trades, they result in higher transaction costs and may be more difficult to open and close out.
Correlation of Price Changes. Because there are a limited number of types of exchange-traded options and futures contracts, it is likely that the standardized contracts available will not match the fund's current or anticipated investments exactly. The fund may invest in options and futures contracts based on securities with different issuers, maturities, or other characteristics from the securities in which the fund typically invests, which involves a risk that the options or futures position will not track the performance of the fund's other investments.
Options and futures prices can also diverge from the prices of their underlying instruments, even if the underlying instruments match the fund's investments well. Options and futures prices are affected by such factors as current and anticipated short-term interest rates, changes in volatility of the underlying instrument, and the time remaining until expiration of the contract, which may not affect security prices the same way. Imperfect correlation may also result from differing levels of demand in the options and futures markets and the securities markets, from structural differences in how options and futures and securities are traded, or from imposition of daily price fluctuation limits or trading halts. The fund may purchase or sell options and futures contracts with a greater or lesser value than the securities it wishes to hedge or intends to purchase in order to attempt to compensate for differences in volatility between the contract and the securities, although this may not be successful in all cases. If price changes in the fund's options or futures positions are poorly correlated with its other investments, the positions may fail to produce anticipated gains or result in losses that are not offset by gains in other investments.
Futures Contracts. In purchasing a futures contract, the buyer agrees to purchase a specified underlying instrument at a specified future date. In selling a futures contract, the seller agrees to sell a specified underlying instrument at a specified future date. The price at which the purchase and sale will take place is fixed when the buyer and seller enter into the contract. Some currently available futures contracts are based on specific securities and some are based on indices of securities prices. Futures can be held until their delivery dates, or can be closed out before then if a liquid secondary market is available.
Futures may be based on foreign indexes such as the Compagnie des Agents de Change 40 Index (CAC 40) in France, the Deutscher Aktienindex (DAX 30) in Germany, the Financial Times Stock Exchange Eurotop 100 Index (FTSE Eurotop 100) in Europe, the IBEX 35 Index (IBEX 35) in Spain, the Financial Times Stock Exchange 100 Index (FTSE 100) in the United Kingdom, the Australian Stock Exchange All Ordinaries Index (ASX All Ordinaries) in Australia, the Hang Seng Index in Hong Kong, and the Nikkei Stock Average (Nikkei 225), the Nikkei Stock Index 300 (Nikkei 300), and the Tokyo Stock Exchange Stock Price Index (TOPIX) in Japan.
The value of a futures contract tends to increase and decrease in tandem with the value of its underlying instrument. Therefore, purchasing futures contracts will tend to increase the fund's exposure to positive and negative price fluctuations in the underlying instrument, much as if it had purchased the underlying instrument directly. When the fund sells a futures contract, by contrast, the value of its futures position will tend to move in a direction contrary to the market. Selling futures contracts, therefore, will tend to offset both positive and negative market price changes, much as if the underlying instrument had been sold.
Futures Margin Payments. The purchaser or seller of a futures contract is not required to deliver or pay for the underlying instrument unless the contract is held until the delivery date. However, both the purchaser and seller are required to deposit "initial margin" with a futures broker, known as a futures commission merchant (FCM), when the contract is entered into. Initial margin deposits are typically equal to a percentage of the contract's value. If the value of either party's position declines, that party will be required to make additional "variation margin" payments to settle the change in value on a daily basis. The party that has a gain may be entitled to receive all or a portion of this amount. Initial and variation margin payments do not constitute purchasing securities on margin for purposes of the fund's investment limitations. In the event of the bankruptcy or insolvency of an FCM that holds margin on behalf of the fund, the fund may be entitled to return of margin owed to it only in proportion to the amount received by the FCM's other customers, potentially resulting in losses to the fund. The fund is required to segregate liquid assets equivalent to the fund's outstanding obligations under the contract in excess of the initial margin and variation margin, if any.
Although futures exchanges generally operate similarly in the United States and abroad, foreign futures exchanges may follow trading, settlement, and margin procedures that are different from those for U.S. exchanges. Futures contracts traded outside the United States may involve greater risk of loss than U.S.-traded contracts, including potentially greater risk of losses due to insolvency of a futures broker, exchange member, or other party that may owe initial or variation margin to the fund. Because initial and variation margin payments may be measured in foreign currency, a futures contract traded outside the United States may also involve the risk of foreign currency fluctuation.
Limitations on Futures and Options Transactions. The trust, on behalf of the fund, has filed with the National Futures Association a notice claiming an exclusion from the definition of the term "commodity pool operator" (CPO) under the Commodity Exchange Act, as amended, and the rules of the Commodity Futures Trading Commission promulgated thereunder, with respect to the fund's operation. Accordingly, the fund is not subject to registration or regulation as a CPO.
The fund will not: (a) sell futures contracts, purchase put options, or write call options if, as a result, more than 25% of the fund's total assets would be hedged with futures and options under normal conditions; (b) purchase futures contracts or write put options if, as a result, the fund's total obligations upon settlement or exercise of purchased futures contracts and written put options would exceed 25% of its total assets under normal conditions; or (c) purchase call options if, as a result, the current value of option premiums for call options purchased by the fund would exceed 5% of the fund's total assets. These limitations do not apply to options attached to or acquired or traded together with their underlying securities, and do not apply to securities that incorporate features similar to options.
The above limitations on the fund's investments in futures contracts and options, and the fund's policies regarding futures contracts and options discussed elsewhere in this SAI are not fundamental policies and may be changed as regulatory agencies permit.
Liquidity of Options and Futures Contracts. There is no assurance a liquid secondary market will exist for any particular options or futures contract at any particular time. Options may have relatively low trading volume and liquidity if their strike prices are not close to the underlying instrument's current price. In addition, exchanges may establish daily price fluctuation limits for options and futures contracts, and may halt trading if a contract's price moves upward or downward more than the limit in a given day. On volatile trading days when the price fluctuation limit is reached or a trading halt is imposed, it may be impossible to enter into new positions or close out existing positions. If the secondary market for a contract is not liquid because of price fluctuation limits or otherwise, it could prevent prompt liquidation of unfavorable positions, and potentially could require the fund to continue to hold a position until delivery or expiration regardless of changes in its value. As a result, the fund's access to other assets held to cover its options or futures positions could also be impaired.
Options and Futures Relating to Foreign Currencies. Currency futures contracts are similar to forward currency exchange contracts, except that they are traded on exchanges (and have margin requirements) and are standardized as to contract size and delivery date. Most currency futures contracts call for payment or delivery in U.S. dollars. The underlying instrument of a currency option may be a foreign currency, which generally is purchased or delivered in exchange for U.S. dollars, or may be a futures contract. The purchaser of a currency call obtains the right to purchase the underlying currency, and the purchaser of a currency put obtains the right to sell the underlying currency.
The uses and risks of currency options and futures are similar to options and futures relating to securities or indices, as discussed above. The fund may purchase and sell currency futures and may purchase and write currency options to increase or decrease its exposure to different foreign currencies. Currency options may also be purchased or written in conjunction with each other or with currency futures or forward contracts. Currency futures and options values can be expected to correlate with exchange rates, but may not reflect other factors that affect the value of the fund's investments. A currency hedge, for example, should protect a Yen-denominated security from a decline in the Yen, but will not protect the fund against a price decline resulting from deterioration in the issuer's creditworthiness. Because the value of the fund's foreign-denominated investments changes in response to many factors other than exchange rates, it may not be possible to match the amount of currency options and futures to the value of the fund's investments exactly over time.
OTC Options. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of OTC options (options not traded on exchanges) generally are established through negotiation with the other party to the option contract. While this type of arrangement allows the purchaser or writer greater flexibility to tailor an option to its needs, OTC options generally are less liquid and involve greater credit risk than exchange-traded options, which are guaranteed by the clearing organization of the exchanges where they are traded.
Purchasing Put and Call Options. By purchasing a put option, the purchaser obtains the right (but not the obligation) to sell the option's underlying instrument at a fixed strike price. In return for this right, the purchaser pays the current market price for the option (known as the option premium). Options have various types of underlying instruments, including specific securities, indices of securities prices, and futures contracts. The purchaser may terminate its position in a put option by allowing it to expire or by exercising the option. If the option is allowed to expire, the purchaser will lose the entire premium. If the option is exercised, the purchaser completes the sale of the underlying instrument at the strike price. A purchaser may also terminate a put option position by closing it out in the secondary market at its current price, if a liquid secondary market exists.
The buyer of a typical put option can expect to realize a gain if security prices fall substantially. However, if the underlying instrument's price does not fall enough to offset the cost of purchasing the option, a put buyer can expect to suffer a loss (limited to the amount of the premium, plus related transaction costs).
The features of call options are essentially the same as those of put options, except that the purchaser of a call option obtains the right to purchase, rather than sell, the underlying instrument at the option's strike price. A call buyer typically attempts to participate in potential price increases of the underlying instrument with risk limited to the cost of the option if security prices fall. At the same time, the buyer can expect to suffer a loss if security prices do not rise sufficiently to offset the cost of the option.
Writing Put and Call Options. The writer of a put or call option takes the opposite side of the transaction from the option's purchaser. In return for receipt of the premium, the writer assumes the obligation to pay the strike price for the option's underlying instrument if the other party to the option chooses to exercise it. The writer may seek to terminate a position in a put option before exercise by closing out the option in the secondary market at its current price. If the secondary market is not liquid for a put option, however, the writer must continue to be prepared to pay the strike price while the option is outstanding, regardless of price changes. When writing an option on a futures contract, the fund will be required to make margin payments to an FCM as described above for futures contracts.
If security prices rise, a put writer would generally expect to profit, although its gain would be limited to the amount of the premium it received. If security prices remain the same over time, it is likely that the writer will also profit, because it should be able to close out the option at a lower price. If security prices fall, the put writer would expect to suffer a loss. This loss should be less than the loss from purchasing the underlying instrument directly, however, because the premium received for writing the option should mitigate the effects of the decline.
Writing a call option obligates the writer to sell or deliver the option's underlying instrument, in return for the strike price, upon exercise of the option. The characteristics of writing call options are similar to those of writing put options, except that writing calls generally is a profitable strategy if prices remain the same or fall. Through receipt of the option premium, a call writer mitigates the effects of a price decline. At the same time, because a call writer must be prepared to deliver the underlying instrument in return for the strike price, even if its current value is greater, a call writer gives up some ability to participate in security price increases.
Swap Agreements can be individually negotiated and structured to include exposure to a variety of different types of investments or market factors. Depending on their structure, swap agreements may increase or decrease the fund's exposure to long- or short-term interest rates (in the United States or abroad), foreign currency values, mortgage securities, corporate borrowing rates, or other factors such as security prices or inflation rates. Swap agreements can take many different forms and are known by a variety of names.
In a typical cap or floor agreement, one party agrees to make payments only under specified circumstances, usually in return for payment of a fee by the other party. For example, the buyer of an interest rate cap obtains the right to receive payments to the extent that a specified interest rate exceeds an agreed-upon level, while the seller of an interest rate floor is obligated to make payments to the extent that a specified interest rate falls below an agreed-upon level. An interest rate collar combines elements of buying a cap and selling a floor.
Swap agreements will tend to shift the fund's investment exposure from one type of investment to another. For example, if the fund agreed to exchange payments in dollars for payments in foreign currency, the swap agreement would tend to decrease the fund's exposure to U.S. interest rates and increase its exposure to foreign currency and interest rates. Caps and floors have an effect similar to buying or writing options. Depending on how they are used, swap agreements may increase or decrease the overall volatility of the fund's investments and its share price.
Swap agreements also may allow the fund to acquire or reduce credit exposure to a particular issuer. The most significant factor in the performance of swap agreements is the change in the factors that determine the amounts of payments due to and from the fund. If a swap agreement calls for payments by the fund, the fund must be prepared to make such payments when due. If a swap counterparty's creditworthiness declines, the risk that they may not perform may increase, potentially resulting in a loss to the fund. Although there can be no assurance that the fund will be able to do so, the fund may be able to reduce or eliminate its exposure under a swap agreement either by assignment or other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party.
Illiquid Securities cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. Difficulty in selling securities may result in a loss or may be costly to the fund. Under the supervision of the Board of Trustees, FMR determines the liquidity of the fund's investments and, through reports from FMR, the Board monitors investments in illiquid securities. In determining the liquidity of the fund's investments, FMR may consider various factors, including (1) the frequency and volume of trades and quotations, (2) the number of dealers and prospective purchasers in the marketplace, (3) dealer undertakings to make a market, and (4) the nature of the security and the market in which it trades (including any demand, put or tender features, the mechanics and other requirements for transfer, any letters of credit or other credit enhancement features, any ratings, the number of holders, the method of soliciting offers, the time required to dispose of the security, and the ability to assign or offset the rights and obligations of the security).
Indexed Securities are instruments whose prices are indexed to the prices of other securities, securities indices, currencies, or other financial indicators. Indexed securities typically, but not always, are debt securities or deposits whose value at maturity or coupon rate is determined by reference to a specific instrument or statistic.
Currency-indexed securities typically are short-term to intermediate-term debt securities whose maturity values or interest rates are determined by reference to the values of one or more specified foreign currencies, and may offer higher yields than U.S. dollar-denominated securities. Currency-indexed securities may be positively or negatively indexed; that is, their maturity value may increase when the specified currency value increases, resulting in a security that performs similarly to a foreign-denominated instrument, or their maturity value may decline when foreign currencies increase, resulting in a security whose price characteristics are similar to a put on the underlying currency. Currency-indexed securities may also have prices that depend on the values of a number of different foreign currencies relative to each other.
The performance of indexed securities depends to a great extent on the performance of the security, currency, or other instrument to which they are indexed, and may also be influenced by interest rate changes in the United States and abroad. Indexed securities may be more volatile than the underlying instruments. Indexed securities are also subject to the credit risks associated with the issuer of the security, and their values may decline substantially if the issuer's creditworthiness deteriorates. Recent issuers of indexed securities have included banks, corporations, and certain U.S. Government agencies.
Interfund Borrowing and Lending Program. Pursuant to an exemptive order issued by the SEC, the fund may lend money to, and borrow money from, other funds advised by FMR or its affiliates. The fund will borrow through the program only when the costs are equal to or lower than the cost of bank loans, and will lend through the program only when the returns are higher than those available from an investment in repurchase agreements. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one day's notice. The fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
Investment-Grade Debt Securities. Investment-grade debt securities include all types of debt instruments that are of medium and high-quality. Investment-grade debt securities include repurchase agreements collateralized by U.S. Government securities as well as repurchase agreements collateralized by equity securities, non-investment-grade debt, and all other instruments in which the fund can perfect a security interest, provided the repurchase agreement counterparty has an investment-grade rating. Some investment-grade debt securities may possess speculative characteristics and may be more sensitive to economic changes and to changes in the financial conditions of issuers. An investment-grade rating means the security or issuer is rated investment-grade by Moody's® Investors Service, Standard & Poor's® (S&P®), Fitch Inc., Dominion Bond Rating Service Limited, or another credit rating agency designated as a nationally recognized statistical rating organization (NRSRO) by the SEC, or is unrated but considered to be of equivalent quality by FMR.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates (loans and loan participations), to suppliers of goods or services (trade claims or other receivables), or to other parties. Direct debt instruments involve a risk of loss in case of default or insolvency of the borrower and may offer less legal protection to the purchaser in the event of fraud or misrepresentation, or there may be a requirement that the fund supply additional cash to a borrower on demand.
Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the borrower for payment of interest and repayment of principal. If scheduled interest or principal payments are not made, the value of the instrument may be adversely affected. Loans that are fully secured provide more protections than an unsecured loan in the event of failure to make scheduled interest or principal payments. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the borrower's obligation, or that the collateral could be liquidated. Indebtedness of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative. Borrowers that are in bankruptcy or restructuring may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Direct indebtedness of developing countries also involves a risk that the governmental entities responsible for the repayment of the debt may be unable, or unwilling, to pay interest and repay principal when due.
Investments in loans through direct assignment of a financial institution's interests with respect to a loan may involve additional risks. For example, if a loan is foreclosed, the purchaser could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, a purchaser could be held liable as a co-lender. Direct debt instruments may also involve a risk of insolvency of the lending bank or other intermediary.
A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. Unless, under the terms of the loan or other indebtedness, the purchaser has direct recourse against the borrower, the purchaser may have to rely on the agent to apply appropriate credit remedies against a borrower. If assets held by the agent for the benefit of a purchaser were determined to be subject to the claims of the agent's general creditors, the purchaser might incur certain costs and delays in realizing payment on the loan or loan participation and could suffer a loss of principal or interest.
Direct indebtedness may include letters of credit, revolving credit facilities, or other standby financing commitments that obligate purchasers to make additional cash payments on demand. These commitments may have the effect of requiring a purchaser to increase its investment in a borrower at a time when it would not otherwise have done so, even if the borrower's condition makes it unlikely that the amount will ever be repaid.
The fund limits the amount of total assets that it will invest in any one issuer or in issuers within the same industry (see the fund's investment limitations). For purposes of these limitations, the fund generally will treat the borrower as the "issuer" of indebtedness held by the fund. In the case of loan participations where a bank or other lending institution serves as financial intermediary between the fund and the borrower, if the participation does not shift to the fund the direct debtor-creditor relationship with the borrower, SEC interpretations require the fund, in appropriate circumstances, to treat both the lending bank or other lending institution and the borrower as "issuers" for these purposes. Treating a financial intermediary as an issuer of indebtedness may restrict the fund's ability to invest in indebtedness related to a single financial intermediary, or a group of intermediaries engaged in the same industry, even if the underlying borrowers represent many different companies and industries.
Lower-Quality Debt Securities. Lower-quality debt securities include all types of debt instruments that have poor protection with respect to the payment of interest and repayment of principal, or may be in default. These securities are often considered to be speculative and involve greater risk of loss or price changes due to changes in the issuer's capacity to pay. The market prices of lower-quality debt securities may fluctuate more than those of higher-quality debt securities and may decline significantly in periods of general economic difficulty, which may follow periods of rising interest rates.
The market for lower-quality debt securities may be thinner and less active than that for higher-quality debt securities, which can adversely affect the prices at which the former are sold. Adverse publicity and changing investor perceptions may affect the liquidity of lower-quality debt securities and the ability of outside pricing services to value lower-quality debt securities.
Because the risk of default is higher for lower-quality debt securities, FMR's research and credit analysis are an especially important part of managing securities of this type. FMR will attempt to identify those issuers of high-yielding securities whose financial condition is adequate to meet future obligations, has improved, or is expected to improve in the future. FMR's analysis focuses on relative values based on such factors as interest or dividend coverage, asset coverage, earnings prospects, and the experience and managerial strength of the issuer.
The fund may choose, at its expense or in conjunction with others, to pursue litigation or otherwise to exercise its rights as a security holder to seek to protect the interests of security holders if it determines this to be in the best interest of the fund's shareholders.
Mortgage Securities are issued by government and non-government entities such as banks, mortgage lenders, or other institutions. A mortgage security is an obligation of the issuer backed by a mortgage or pool of mortgages or a direct interest in an underlying pool of mortgages. Some mortgage securities, such as collateralized mortgage obligations (or "CMOs"), make payments of both principal and interest at a range of specified intervals; others make semiannual interest payments at a predetermined rate and repay principal at maturity (like a typical bond). Mortgage securities are based on different types of mortgages, including those on commercial real estate or residential properties. Stripped mortgage securities are created when the interest and principal components of a mortgage security are separated and sold as individual securities. In the case of a stripped mortgage security, the holder of the "principal-only" security (PO) receives the principal payments made by the underlying mortgage, while the holder of the "interest-only" security (IO) receives interest payments from the same underlying mortgage.
Fannie Maes and Freddie Macs are pass-through securities issued by Fannie Mae and Freddie Mac, respectively. Fannie Mae and Freddie Mac, which guarantee payment of interest and repayment of principal on Fannie Maes and Freddie Macs, respectively, are federally chartered corporations supervised by the U.S. Government that act as governmental instrumentalities under authority granted by Congress. Fannie Mae and Freddie Mac are authorized to borrow from the U.S. Treasury to meet their obligations. Fannie Maes and Freddie Macs are not backed by the full faith and credit of the U.S. Government.
The value of mortgage securities may change due to shifts in the market's perception of issuers and changes in interest rates. In addition, regulatory or tax changes may adversely affect the mortgage securities market as a whole. Non-government mortgage securities may offer higher yields than those issued by government entities, but also may be subject to greater price changes than government issues. Mortgage securities are subject to prepayment risk, which is the risk that early principal payments made on the underlying mortgages, usually in response to a reduction in interest rates, will result in the return of principal to the investor, causing it to be invested subsequently at a lower current interest rate. Alternatively, in a rising interest rate environment, mortgage security values may be adversely affected when prepayments on underlying mortgages do not occur as anticipated, resulting in the extension of the security's effective maturity and the related increase in interest rate sensitivity of a longer-term instrument. The prices of stripped mortgage securities tend to be more volatile in response to changes in interest rates than those of non-stripped mortgage securities.
To earn additional income for the fund, FMR may use a trading strategy that involves selling (or buying) mortgage securities and simultaneously agreeing to purchase (or sell) mortgage securities on a later date at a set price. This trading strategy may increase interest rate exposure and result in an increased turnover of the fund's portfolio which increases costs and may increase taxable gains.
Preferred Securities represent an equity or ownership interest in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred securities and common stock.
Repurchase Agreements involve an agreement to purchase a security and to sell that security back to the original seller at an agreed-upon price. The resale price reflects the purchase price plus an agreed-upon incremental amount which is unrelated to the coupon rate or maturity of the purchased security. As protection against the risk that the original seller will not fulfill its obligation, the securities are held in a separate account at a bank, marked-to-market daily, and maintained at a value at least equal to the sale price plus the accrued incremental amount. The value of the security purchased may be more or less than the price at which the counterparty has agreed to purchase the security. In addition, delays or losses could result if the other party to the agreement defaults or becomes insolvent. The fund will engage in repurchase agreement transactions with parties whose creditworthiness has been reviewed and found satisfactory by FMR.
Restricted Securities are subject to legal restrictions on their sale. Difficulty in selling securities may result in a loss or be costly to the fund. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (1933 Act), or in a registered public offering. Where registration is required, the holder of a registered security may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, the holder might obtain a less favorable price than prevailed when it decided to seek registration of the security.
Reverse Repurchase Agreements. In a reverse repurchase agreement, the fund sells a security to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase that security at an agreed-upon price and time. The fund will enter into reverse repurchase agreements with parties whose creditworthiness has been reviewed and found satisfactory by FMR. Such transactions may increase fluctuations in the market value of fund assets and may be viewed as a form of leverage.
Securities Lending. The fund may lend securities to parties such as broker-dealers or other institutions, including Fidelity Brokerage Services LLC (FBS LLC). FBS LLC is a member of the New York Stock Exchange (NYSE) and an indirect subsidiary of FMR Corp.
Securities lending allows the fund to retain ownership of the securities loaned and, at the same time, earn additional income. The borrower provides the fund with collateral in an amount at least equal to the value of the securities loaned. The fund maintains the ability to obtain the right to vote or consent on proxy proposals involving material events affecting securities loaned. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. These delays and costs could be greater for foreign securities. If the fund is not able to recover the securities loaned, the fund may sell the collateral and purchase a replacement investment in the market. The value of the collateral could decrease below the value of the replacement investment by the time the replacement investment is purchased. Loans will be made only to parties deemed by FMR to be in good standing and when, in FMR's judgment, the income earned would justify the risks.
Cash received as collateral through loan transactions may be invested in other eligible securities, including shares of a money market fund. Investing this cash subjects that investment, as well as the securities loaned, to market appreciation or depreciation.
Securities of Other Investment Companies, including shares of closed-end investment companies, unit investment trusts, and open-end investment companies, represent interests in professionally managed portfolios that may invest in any type of instrument. Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but may involve additional expenses at the investment company-level, such as portfolio management fees and operating expenses. Certain types of investment companies, such as closed-end investment companies, issue a fixed number of shares that trade on a stock exchange or over-the-counter at a premium or a discount to their net asset value per share (NAV). Others are continuously offered at NAV, but may also be traded in the secondary market.
The extent to which the fund can invest in securities of other investment companies is limited by federal securities laws.
Short Sales "Against the Box" are short sales of securities that the fund owns or has the right to obtain (equivalent in kind or amount to the securities sold short). If the fund enters into a short sale against the box, it will be required to set aside securities equivalent in kind and amount to the securities sold short (or securities convertible or exchangeable into such securities) and will be required to hold such securities while the short sale is outstanding. The fund will incur transaction costs, including interest expenses, in connection with opening, maintaining, and closing short sales against the box.
Short Sales. Stocks underlying the fund's convertible security holdings can be sold short. For example, if FMR anticipates a decline in the price of the stock underlying a convertible security held by the fund, it may sell the stock short. If the stock price subsequently declines, the proceeds of the short sale could be expected to offset all or a portion of the effect of the stock's decline on the value of the convertible security. The fund currently intends to hedge no more than 15% of its total assets with short sales on equity securities underlying its convertible security holdings under normal circumstances.
The fund will be required to set aside securities equivalent in kind and amount to those sold short (or securities convertible or exchangeable into such securities) and will be required to hold them aside while the short sale is outstanding. The fund will incur transaction costs, including interest expenses, in connection with opening, maintaining, and closing short sales.
Sovereign Debt Obligations are issued or guaranteed by foreign governments or their agencies, including debt of Latin American nations or other developing countries. Sovereign debt may be in the form of conventional securities or other types of debt instruments such as loans or loan participations. Sovereign debt of developing countries may involve a high degree of risk, and may be in default or present the risk of default. Governmental entities responsible for repayment of the debt may be unable or unwilling to repay principal and pay interest when due, and may require renegotiation or rescheduling of debt payments. In addition, prospects for repayment of principal and payment of interest may depend on political as well as economic factors. Although some sovereign debt, such as Brady Bonds, is collateralized by U.S. Government securities, repayment of principal and payment of interest is not guaranteed by the U.S. Government.
Temporary Defensive Policies. The fund reserves the right to invest without limitation in preferred stocks and investment-grade debt instruments for temporary, defensive purposes.
Warrants. Warrants are instruments which entitle the holder to buy an equity security at a specific price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss.
Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments.
Zero Coupon Bonds do not make interest payments; instead, they are sold at a discount from their face value and are redeemed at face value when they mature. Because zero coupon bonds do not pay current income, their prices can be more volatile than other types of fixed-income securities when interest rates change. In calculating the fund's dividend, a portion of the difference between a zero coupon bond's purchase price and its face value is considered income.
SPECIAL CONSIDERATIONS REGARDING CANADA
Political. Canada's parliamentary system of government is, in general, stable. One of the provinces, Quebec, which has a predominantly French-speaking population, does have a "separatist" opposition party whose objective is to achieve sovereignty and increased self-governing legal and financial powers. To date, referendums on Quebec sovereignty have been defeated, but the issue remains unresolved. In case a referendum about the independence of Quebec were successful, then the Canadian federal government may be obliged to negotiate with Quebec.
Economic. Canada is a major producer of commodities such as forest products, metals, agricultural products, and energy related products like oil, gas, and hydroelectricity. Accordingly, changes in the supply and demand of base commodity resources and industrial and precious metals and materials, both domestically and internationally, can have a significant effect on Canadian market performance.
The United States is Canada's largest trading partner and developments in economic policy do have a significant impact on the Canadian economy. The expanding economic and financial integration of the United States, Canada, and Mexico through the NAFTA Agreement may make the Canadian economy and securities market more sensitive to North American trade patterns. Growth in developing nations overseas, particularly China, may change the composition of Canada's trade and foreign investment composition in the near future.
SPECIAL CONSIDERATIONS REGARDING EUROPE
The European Union (EU) is an intergovernmental and supranational union of most Western European countries and a growing number of Eastern European countries, each is known as a member state. One of the key activities of the EU is the establishment and administration of a common single market, consisting of, among other things, a single currency and a common trade policy. In order to pursue this goal, member states established, among other things, the European Economic and Monetary Union (EMU) which sets out different stages and commitments that member states need to follow to achieve greater economic policy coordination and monetary cooperation, including the adoption of a single currency, the euro. Many member states have adopted, and other member states are generally expected to eventually adopt, the euro as their single currency. When a member state adopts the euro as its currency, the member state no longer controls its own monetary policies. Instead, the authority to direct monetary policy is exercised by the European Central Bank. However, certain countries do not qualify for the euro and thus risk being left behind.
While economic and monetary convergence in the EU may offer new opportunities for those investing in the region, investors should be aware that the success of the EU is not wholly assured. European countries can be significantly affected by the tight fiscal and monetary controls that the EMU imposes on its members or requires candidates for EMU membership to comply with. Europe must grapple with a number of challenges, any one of which could threaten the survival of this monumental undertaking. The countries adopting the euro must adjust to a unified monetary system, the absence of exchange rate flexibility, and the loss of economic sovereignty. Europe's economies are diverse, its governments are decentralized, and its cultures differ widely. Unemployment in some European countries has historically been higher than in the United States and could pose political risk. One or more member states might exit the EU, placing its currency and banking system in jeopardy. Major issues currently facing the EU cover its membership, structure, procedures and policies; they include the adoption, abandonment or adjustment of the new constitutional treaty, the EU's enlargement to the south and east, and resolving the EU's problematic fiscal and democratic accountability. Efforts of the member states to continue to unify their economic and monetary policies may increase the potential for similarities in the movements of European markets and reduce the benefit of diversification within the region.
Political. The EU has been extending its influence to the east. It has accepted several Eastern European countries as new members, and has plans to accept several more in the medium-term. It is hoped that membership for these states will help cement economic and political stability. For these countries, membership serves as a strong political impetus to employ tight fiscal and monetary policies. Nevertheless, new member states which were former Soviet satellites remain burdened to various extents by the inherited inefficiencies of centrally planned economies similar to what existed under the old Soviet Union. Further expansion of the EU has long-term economic benefits, but certain European countries are not viewed as currently suitable for membership, especially the troubled economies of countries further east. Also, as the EU continues to enlarge, the candidate countries' accessions may grow more controversial. Some member states may repudiate certain candidate countries joining the EU upon concerns about the possible economic, immigration, and cultural implications that may result from such enlargement. The current and future status of the EU therefore continues to be the subject of political controversy, with widely differing views both within and between member states. For example, a large segment of the population in the United Kingdom may be indifferent or opposed to the EU, while other countries are generally more in favor of European integration.
It is possible that the gap between rich and poor within the EU's member countries, and particularly among new members that have not met the requirements for joining the EMU may increase, and that realigning traditional alliances could alter trading relationships and potentially provoke divisive socioeconomic splits.
In the transition to the single economic system, significant political decisions will be made which may affect the market regulation, subsidization, and privatization across all industries, from agricultural products to telecommunications.
Economic. The EU economy is expected to grow further over the next decade as more countries join the EU - especially considering that the new member states are usually poorer than the EU average, and hence the expected fast GDP growth will help achieve the dynamic of the united Europe. The EU's economic growth has been below that of the United States most years since 1990, and the economic performance of several of its key members, including Germany and Italy, is a matter of serious concern to policy makers.
As economic conditions across member states vary from robust to dismal, there is continued concern about national-level support for the euro and the accompanying coordination of fiscal and wage policy among EMU member countries. According to the Maastricht treaty, member countries must maintain tight control over inflation, public debt, and budget deficit in order to qualify for participation in the euro. These requirements severely limit EMU member countries' ability to implement monetary policy to address regional economic conditions.
Currency. Investing in euro-denominated securities entails risk of being exposed to a currency that may not fully reflect the strengths and weaknesses of the disparate European economies. Many European countries rely heavily upon export-dependent businesses and any strength in the exchange rate between the euro and the U.S. dollar can have either a positive or a negative effect upon corporate profits.
Nordic Countries. Faced with stronger global competition, the Nordic countries - Denmark, Finland, Norway, and Sweden - have had to scale down their historically generous welfare programs, resulting in drops in domestic demand and increased unemployment. Major industries in the region, such as forestry, agriculture, and oil, are heavily resource-dependent and face pressure as a result of high labor costs. Pension reform, union regulation, and further cuts in liberal social programs will likely need to be addressed as the Nordic countries face increased international competition.
Eastern Europe. Investing in the securities of Eastern European issuers is highly speculative and involves risks not usually associated with investing in the more developed markets of Western Europe. Political and economic reforms are too recent to establish a definite trend away from centrally planned economies and state-owned industries.
Many Eastern European countries continue to move towards market economies at different paces with appropriately different characteristics. Most Eastern European markets suffer from thin trading activity, dubious investor protections, and often a dearth of reliable corporate information. Information and transaction costs, differential taxes, and sometimes political or transfer risk give a comparative advantage to the domestic investor rather than the foreign investor. In addition, these markets are particularly sensitive to social, political, economic, and currency events in Russia and may suffer heavy losses as a result of their trading and investment links to the Russian economy and currency.
SPECIAL CONSIDERATIONS REGARDING JAPAN
Government-industry cooperation, a strong work ethic, mastery of high technology, emphasis on education, and a comparatively small defense allocation have helped Japan advance with extraordinary speed to become one of the largest economic powers along with the United States and the EU. Despite its impressive history, investors face special risks when investing in Japan.
Economic. For three decades from the 1960s through the 1980s, Japan's overall real economic growth had been spectacular. However, growth slowed markedly in the 1990s and Japan's economy fell into a long recession. At present, the Japanese economy could be recovering from this long recession, although uncertainties about its recovery remain. Japan's huge government debt, the aging of the population, an unstable financial sector, low domestic consumption, and certain corporate structural weaknesses are some of the major long-term problems.
Overseas trade is important to Japan's economy. Japan has few natural resources and must export to pay for its imports of these basic requirements. Japan's economic growth is significantly driven by its exports. Domestic or foreign trade sanctions or other protectionist measures could adversely impact Japan's economy. Japan has experienced earthquakes and tidal waves of varying degrees of severity, and the risks of such phenomena and the resulting damage continue to exist.
A pressing need to sustain Japan's economic recovery and improve its economic growth is the task of overhauling the nation's financial institutions and securing public support for taxpayer-funded bailouts. Banks, in particular, may have to reform themselves to become more competitive. Successful financial sector reform would contribute to Japan's economic recovery at home and would benefit other economies in Asia. Internal conflict over the proper way to reform the banking system exists.
SPECIAL CONSIDERATIONS REGARDING ASIA PACIFIC REGION (EX JAPAN)
Many countries in the region have historically faced political uncertainty, corruption, military intervention, and social unrest. Examples include the ethnic, sectarian, and separatist violence found in Indonesia, and the nuclear arms threats between India and Pakistan. To the extent that such events continue in the future, they can be expected to have a negative effect on economic and securities market conditions in the region.
Economic. The economies of many countries in the region are heavily dependent on international trade and are accordingly affected by protective trade barriers and the economic conditions of their trading partners, principally, the U.S., Japan, China, and the European Union.
Korea. Investors should be aware that investing in Korea involves risks not typically associated with investing in the U.S. securities markets. Relations between North Korea and South Korea remain tense and the possibility of military action between two countries still exists. Corporate and financial sector restructuring initiated by the Korean government, in conjunction with the IMF, after the 1997-1998 Asian financial crisis can be expected to continue but its full impact cannot be predicted yet. Korean economy's reliance on international trade and other Asian economies makes it highly sensitive to fluctuations in international commodity prices, currency exchange rates and government regulation.
China Region. As with all transition economies, China's ability to develop and sustain a credible legal, regulatory, monetary, and socioeconomic system could influence the course of outside investment. Hong Kong is closely tied to China, economically and through China's 1997 acquisition of the country as a Special Autonomous Region (SAR). Hong Kong's success depends, in large part, on its ability to retain the legal, financial, and monetary systems that allow economic freedom and market expansion. Although many Taiwanese companies heavily invest in China, a state of hostility continues to exist between China and Taiwan, which Beijing has long deemed a part of China and has made a nationalist cause of recovering it. Taiwan's political stability and ability to sustain its economic growth could be significantly affected by its political and economic relationship with China.
Southeast Asia. In addition to the risks inherent in investing in the emerging markets, the risks of investing in Southeast Asia merit special consideration. Indonesia has restored financial stability and pursued sober fiscal policies since the 1997-1998 Asian financial crisis, but many economic development problems remain, including high unemployment, a fragile banking sector, endemic corruption, inadequate infrastructure, a poor investment climate, and unequal resource distribution among regions. In addition, Indonesia continues to be at risk of ethnic, sectarian, and separatist violence. Keys to future growth remain internal reform, peaceful resolution of internal conflicts, building up the confidence of international and domestic investors, and strong global economic growth. In late December 2004, a major tsunami took nearly 127,000 lives, left more than 93,000 people missing and nearly 441,000 people displaced, and destroyed $4.5 to $5.0 billion worth of property. The negative effects of the tsunami are still felt today, and similar natural disasters could happen again.
SPECIAL CONSIDERATIONS REGARDING LATIN AMERICA
As an emerging market, Latin America historically suffered from social, political, and economic instability. For investors, this has meant additional risk caused by periods of regional conflict, political corruption, totalitarianism, protectionist measures, nationalization, hyperinflation, debt crises, sudden and large currency devaluation, and intervention by the military in civilian and economic spheres. However, in some Latin American countries, a move to sustainable democracy and a more mature and accountable political environment is under way. Domestic economies have been deregulated, privatization of state-owned companies is almost completed and foreign trade restrictions have been relaxed. Nonetheless, to the extent that events such as those listed above continue in the future, they could reverse favorable trends toward market and economic reform, privatization, and removal of trade barriers, and result in significant disruption in securities markets in the region. Investors in the region continue to face a number of potential risks.
A number of Latin American countries are among the largest debtors of developing countries and have a long history of foreign debt and default. The majority of the region's economies have become highly dependent upon foreign credit and loans from external sources to fuel their state-sponsored economic plans. Historically, government profligacy and ill-conceived plans for modernization have exhausted these resources with little benefit accruing to the economy. Most countries have been forced to restructure their loans or risk default on their debt obligations. In addition, interest on the debt is subject to market conditions and may reach levels that would impair economic activity and create a difficult and costly environment for borrowers. Accordingly, these governments may be forced to reschedule or freeze their debt repayment, which could negatively affect local markets.
SPECIAL CONSIDERATIONS REGARDING EMERGING MARKETS
Investing in companies domiciled in emerging market countries may be subject to potentially higher risks than investments in developed countries. These risks include: (i) less social, political, and economic stability; (ii) greater illiquidity and price volatility due to smaller or limited local capital markets for such securities, or low or non-existent trading volumes; (iii) foreign exchanges and broker-dealers may be subject to less scrutiny and regulation by local authorities; (iv) local governments may decide to seize or confiscate securities held by foreign investors and/or local governments may decide to suspend or limit an issuer's ability to make dividend or interest payments; (v) local governments may limit or entirely restrict repatriation of invested capital, profits, and dividends; (vi) capital gains may be subject to local taxation, including on a retroactive basis; (vii) issuers facing restrictions on dollar or euro payments imposed by local governments may attempt to make dividend or interest payments to foreign investors in the local currency; (viii) investors may experience difficulty in enforcing legal claims related to the securities and/or local judges may favor the interests of the issuer over those of foreign investors; (ix) bankruptcy judgments may only be permitted to be paid in the local currency; (x) limited public information regarding the issuer may result in greater difficulty in determining market valuations of the securities, and (xi) lax financial reporting on a regular basis, substandard disclosure, and differences in accounting standards may make it difficult to ascertain the financial health of an issuer.
SPECIAL CONSIDERATIONS REGARDING RUSSIA
Investing in Russian securities is highly speculative and involves significant risks and special considerations not typically associated with investing in the securities markets of the U.S. and most other developed countries.
Political. Over the past century, Russia has experienced political and economic turbulence and has endured decades of communist rule under which tens of millions of its citizens were collectivized into state agricultural and industrial enterprises. Since the collapse of the Soviet Union, Russia's government has been faced with the daunting task of stabilizing its domestic economy, while transforming it into a modern and efficient structure able to compete in international markets and respond to the needs of its citizens. However, to date, many of the country's economic reform initiatives have floundered as the proceeds of IMF and other economic assistance have been squandered or stolen. In this environment, there is always the risk that the nation's government will abandon the current program of economic reform and replace it with radically different political and economic policies that would be detrimental to the interests of foreign and private investors.
Economic. Many of Russia's businesses have failed to mobilize the available factors of production because the country's privatization program virtually ensured the predominance of the old management teams that are largely nonmarket-oriented in their management approach. Poor accounting standards, inept management, pervasive corruption, insider trading and crime, and inadequate regulatory protection for the rights of investors all pose a significant risk, particularly to foreign investors. In addition, there is the risk that the Russian tax system will not be reformed to prevent inconsistent, retroactive, and/or exorbitant taxation, or, in the alternative, the risk that a reformed tax system may result in the inconsistent and unpredictable enforcement of the new tax laws.
Compared to most national stock markets, the Russian securities market suffers from a variety of problems not encountered in more developed markets. There is little long-term historical data on the Russian securities market because it is relatively new and a substantial proportion of securities transactions in Russia are privately negotiated outside of stock exchanges. The inexperience of the Russian securities market and the limited volume of trading in securities in the market may make obtaining accurate prices on portfolio securities from independent sources more difficult than in more developed markets. Additionally, there is little solid corporate information available to investors. As a result, it may be difficult to assess the value or prospects of an investment in Russian companies.
Because of the recent formation of the Russian securities market as well as the underdeveloped state of the banking and telecommunications systems, settlement, clearing and registration of securities transactions are subject to significant risks. Ownership of shares (except where shares are held through depositories that meet the requirements of the 1940 Act) is defined according to entries in the company's share register and normally evidenced by extracts from the register or by formal share certificates. However, there is no central registration system for shareholders and these services are carried out by the companies themselves or by registrars located throughout Russia. These registrars are not necessarily subject to effective state supervision nor are they licensed with any governmental entity and it is possible for the fund to lose its registration through fraud, negligence, or even mere oversight. While the fund will endeavor to ensure that its interest continues to be appropriately recorded either itself or through a custodian or other agent inspecting the share register and by obtaining extracts of share registers through regular confirmations, these extracts have no legal enforceability and it is possible that subsequent illegal amendment or other fraudulent act may deprive the fund of its ownership rights or improperly dilute its interests. In addition, while applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for the fund to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. Furthermore, significant delays or problems may occur in registering the transfer of securities, which could cause the fund to incur losses due to a counterparty's failure to pay for securities the fund has delivered or the fund's inability to complete its contractual obligations because of theft or other reasons.
The Russian economy is heavily dependent upon the export of a range of commodities including most industrial metals, forestry products, oil, and gas. Accordingly, it is strongly affected by international commodity prices and is particularly vulnerable to any weakening in global demand for these products.
Currency. Foreign investors also face a high degree of currency risk when investing in Russian securities and a lack of available currency hedging instruments. In a surprise move in August 1998, Russia devalued the ruble, defaulted on short-term domestic bonds, and imposed a moratorium on the repayment of its international debt and the restructuring of the repayment terms. These actions have negatively affected Russian borrowers' ability to access international capital markets and have had a damaging impact on the Russian economy. In light of these and other government actions, foreign investors could face the possibility of further devaluations. In addition, there is the risk the government may impose capital controls on foreign portfolio investments in the event of extreme financial or political crisis. Such capital controls would prevent the sale of a portfolio of foreign assets and the repatriation of investment income and capital.
All orders for the purchase or sale of portfolio securities are placed on behalf of the fund by FMR pursuant to authority contained in the management contract. FMR may also be responsible for the placement of portfolio transactions for other investment companies and investment accounts for which it has or its affiliates have investment discretion. If FMR grants investment management authority to a sub-adviser (see the section entitled "Management Contracts"), that sub-adviser is authorized to provide the services described in the sub-advisory agreement, and in accordance with the policies described in this section.
Purchases and sales of equity securities on a securities exchange or over-the-counter (OTC) are effected through brokers who receive compensation for their services. Generally, compensation relating to securities traded on foreign exchanges will be higher than compensation relating to securities traded on U.S. exchanges and may not be subject to negotiation. Compensation may also be paid in connection with principal transactions (in both OTC securities and securities listed on an exchange) and agency OTC transactions executed with an electronic communications network (ECN) or an alternative trading system. Equity securities may be purchased from underwriters at prices that include underwriting fees.
Purchases and sales of fixed-income securities are generally made with an issuer or a primary market-maker acting as principal. Although there is no stated brokerage commission paid by the fund for any fixed-income security, the price paid by the fund to an underwriter includes the disclosed underwriting fee and prices in secondary trades usually include an undisclosed dealer commission or markup reflecting the spread between the bid and ask prices of the fixed-income security.
The Trustees of the fund periodically review FMR's performance of its responsibilities in connection with the placement of portfolio transactions on behalf of the fund. The Trustees also review the compensation paid by the fund over representative periods of time to determine if it was reasonable in relation to the benefits to the fund.
The Selection of Brokers
In selecting brokers or dealers (including affiliates of FMR) to execute the fund's portfolio transactions, FMR considers factors deemed relevant in the context of a particular trade and in regard to FMR's overall responsibilities with respect to the fund and other investment accounts, including any instructions from the fund's portfolio manager, which may emphasize, for example, speed of execution over other factors. The factors considered will influence whether it is appropriate to execute an order using electronic communications networks (ECNs), electronic channels including algorithmic trading, or by actively working an order. Other factors deemed relevant may include, but are not limited to: price; the size and type of the transaction; the reasonableness of compensation to be paid, including spreads and commission rates; the speed and certainty of trade executions, including broker willingness to commit capital; the nature and characteristics of the markets for the security to be purchased or sold, including the degree of specialization of the broker in such markets or securities; the availability of liquidity in the security, including the liquidity and depth afforded by a market center or market-maker; the reliability of a market center or broker; the broker's overall trading relationship with FMR; the trader's assessment of whether and how closely the broker likely will follow the trader's instructions to the broker; the degree of anonymity that a particular broker or market can provide; the potential for avoiding market impact; the execution services rendered on a continuing basis; the execution efficiency, settlement capability, and financial condition of the firm; arrangements for payment of fund expenses, if applicable; and the provision of additional brokerage and research products and services, if applicable. In seeking best execution, FMR may select a broker using a trading method for which the broker may charge a higher commission than its lowest available commission rate. FMR also may select a broker that charges more than the lowest available commission rate available from another broker. For futures transactions, the selection of an FCM is generally based on the overall quality of execution and other services provided by the FCM.
The Acquisition of Brokerage and Research Products and Services
Brokers (who are not affiliates of FMR) that execute transactions for the fund may receive higher compensation from the fund than other brokers might have charged the fund, in recognition of the value of the brokerage or research products and services they provide to FMR or its affiliates.
Research Products and Services. These products and services may include: economic, industry, company, municipal, sovereign (U.S. and non-U.S.), legal, or political research reports; market color; company meeting facilitation; and investment recommendations. FMR may request that a broker provide a specific proprietary or third-party product or service. Some of these products and services supplement FMR's own research activities in providing investment advice to the fund.
Execution Services. In addition, products and services may include those that assist in the execution, clearing, and settlement of securities transactions, as well as other incidental functions (including but not limited to communication services related to trade execution, order routing and algorithmic trading, post-trade matching, exchange of messages among brokers or dealers, custodians and institutions, and the use of electronic confirmation and affirmation of institutional trades).
Mixed-Use Products and Services. In addition to receiving brokerage and research products and services via written reports and computer-delivered services, such reports may also be provided by telephone and in personal meetings with securities analysts, corporate and industry spokespersons, economists, academicians and government representatives and others with relevant professional expertise. FMR and its affiliates may use commission dollars to obtain certain products or services that are not used exclusively in FMR's or its affiliates' investment decision-making process (mixed-use products or services). In those circumstances, FMR or its affiliates will make a good faith judgment to evaluate the various benefits and uses to which they intend to put the mixed-use product or service, and will pay for that portion of the mixed-use product or service that does not qualify as brokerage and research products and services with their own resources (referred to as "hard dollars").
Benefit to FMR. FMR's expenses would likely be increased if it attempted to generate these additional products and services through its own efforts, or if it paid for these products or services itself. Certain of the brokerage and research products and services FMR receives from brokers are furnished by brokers on their own initiative, either in connection with a particular transaction or as part of their overall services. Some of these products or services may not have an explicit cost associated with such product or service.
FMR's Decision-Making Process. Before causing the fund to pay a particular level of compensation, FMR will make a good faith determination that the compensation is reasonable in relation to the value of the brokerage and/or research products and services provided to FMR, viewed in terms of the particular transaction for the fund or FMR's overall responsibilities to the fund or other investment companies and investment accounts. While FMR may take into account the brokerage and/or research products and services provided by a broker in determining whether compensation paid is reasonable, neither FMR nor the fund incur an obligation to any broker, dealer, or third party to pay for any product or service (or portion thereof) by generating a specific amount of compensation or otherwise. Typically, these products and services assist FMR and its affiliates in terms of its overall investment responsibilities to the fund and other investment companies and investment accounts; however, each product or service received may not benefit the fund. Certain funds or investment accounts may use brokerage commissions to acquire brokerage and research products and services that may also benefit other funds or accounts managed by FMR or its affiliates.
Hard Dollar Research Contracts. FMR has arrangements with certain third-party research providers and brokers through whom FMR effects fund trades, whereby FMR may pay with hard dollars for all or a portion of the cost of research products and services purchased from such research providers or brokers. Even with such hard dollar payments, FMR may cause the fund to pay more for execution than the lowest commission rate available from the broker providing research products and services to FMR, or that may be available from another broker. FMR views its hard dollar payments for research products and services as likely to reduce the fund's total commission costs even though it is expected that in such hard dollar arrangements the commissions available for recapture and to pay fund expenses, as described below, will decrease. FMR's determination to pay for research products and services separately, rather than bundled with fund commissions, is wholly voluntary on FMR's part and may be extended to additional brokers or discontinued with any broker participating in this arrangement.
Commission Recapture
FMR may allocate brokerage transactions to brokers (who are not affiliates of FMR) who have entered into arrangements with FMR under which the broker, using predetermined methodology, rebates a portion of the compensation paid by the fund to offset that fund's expenses, which may be paid to FMR or its affiliates. Not all brokers with whom the fund trades have agreed to participate in brokerage commission recapture. FMR expects that brokers from whom FMR purchases research products and services with hard dollars are unlikely to participate in commission recapture.
Affiliated Transactions
FMR may place trades with certain brokers, including National Financial Services LLC (NFS), with whom it is under common control provided FMR determines that these affiliates' trade execution abilities and costs are comparable to those of non-affiliated, qualified brokerage firms.
The Trustees of the fund have approved procedures whereby the fund may purchase securities that are offered in underwritings in which an affiliate of FMR participates. In addition, for underwritings where an FMR affiliate participates as a principal underwriter, certain restrictions may apply that could, among other things, limit the amount of securities that the fund could purchase in the underwritings.
Trade Allocation
Although the Trustees and officers of the fund are substantially the same as those of other funds managed by FMR or its affiliates, investment decisions for the fund are made independently from those of other funds or investment accounts (including proprietary accounts) managed by FMR or its affiliates. The same security is often held in the portfolio of more than one of these funds or investment accounts. Simultaneous transactions are inevitable when several funds and investment accounts are managed by the same investment adviser, particularly when the same security is suitable for the investment objective of more than one fund or investment account.
When two or more funds or investment accounts are simultaneously engaged in the purchase or sale of the same security, including a futures contract, the prices and amounts are allocated in accordance with procedures believed by FMR to be appropriate and equitable to the fund or investment account. In some cases adherence to these procedures could have a detrimental effect on the price or value of the security as far as the fund is concerned. In other cases, however, the ability of the fund to participate in volume transactions will produce better executions and prices for the funds.
Commissions Paid
The fund may pay compensation including both commissions and spreads in connection with the placement of portfolio transactions. The amount of brokerage commissions paid by the fund may change from year to year because of, among other things, changing asset levels, shareholder activity, and/or portfolio turnover.
<R>For the fiscal periods ended October 31, 2006 and 2005, the fund's portfolio turnover rates were 208% and 95%, respectively. Variations in turnover rate may be due to a fluctuating volume of shareholder purchase and redemption orders, market conditions, and/or changes in FMR's investment outlook.</R>
The following table shows the total amount of brokerage commissions paid by the fund, comprising commissions paid on securities and/or futures transactions, as applicable, for the fiscal years ended October 31, 2006, 2005, and 2004. The total amount of brokerage commissions paid is stated as a dollar amount and a percentage of the fund's average net assets.
<R>Fiscal
Year |
|
<R>Dollar |
<R>Percentage
of |
<R>2006</R> |
|
<R>$ 562,857</R> |
<R> 0.25%</R> |
<R>2005</R> |
|
<R>$ 251,818</R> |
<R> 0.14%</R> |
<R>2004</R> |
|
<R>$ 207,343</R> |
<R> 0.16%</R> |
<R></R>
<R></R>
<R></R>
<R>During the fiscal years ended October 31, 2006, 2005, and 2004, the fund paid brokerage commissions of $3,423, $6,805, and $4,397, respectively, to NFS. NFS is paid on a commission basis. During the fiscal year ended October 31, 2006, this amounted to approximately 0.61% of the aggregate brokerage commissions paid by the fund for transactions involving approximately 3.14% of the aggregate dollar amount of transactions for which the fund paid brokerage commissions. The difference between the percentage of aggregate brokerage commissions paid to, and the percentage of the aggregate dollar amount of transactions effected through, NFS is a result of the low commission rates charged by NFS.</R>
<R>During the fiscal year ended October 31, 2006, the fund paid $157,591 in brokerage commissions to firms for providing research services involving approximately $128,365,566 of transactions.</R>
<R></R>
The Trustees of the fund have approved procedures in conformity with Rule 10f-3 under the 1940 Act whereby the fund may purchase securities that are offered in underwritings in which an affiliate of FMR participates. These procedures prohibit the fund from directly or indirectly benefiting an FMR affiliate in connection with such underwritings. In addition, for underwritings where an FMR affiliate participates as a principal underwriter, certain restrictions may apply that could, among other things, limit the amount of securities that the fund could purchase in the underwritings.
From time to time the Trustees will review whether the recapture for the benefit of the fund of some portion of the compensation paid by the fund on portfolio transactions is legally permissible and advisable. The Trustees intend to continue to review whether recapture opportunities are available and are legally permissible and, if so, to determine in the exercise of their business judgment whether it would be advisable for the fund to participate, or continue to participate, in the commission recapture program.
Although the Trustees and officers of the fund are substantially the same as those of other funds managed by FMR or its affiliates, investment decisions for the fund are made independently from those of other funds or investment accounts (including proprietary accounts) managed by FMR or its affiliates. The same security is often held in the portfolio of more than one of these funds or investment accounts. Simultaneous transactions are inevitable when several funds and investment accounts are managed by the same investment adviser, particularly when the same security is suitable for the investment objective of more than one fund or investment account.
When two or more funds or investment accounts are simultaneously engaged in the purchase or sale of the same security, including a futures contract, the prices and amounts are allocated in accordance with procedures believed to be appropriate and equitable to the fund or investment account. In some cases this system could have a detrimental effect on the price or value of the security as far as the fund is concerned. In other cases, however, the ability of the fund to participate in volume transactions will produce better executions and prices for the fund. It is the current opinion of the Trustees that the desirability of retaining FMR as investment adviser to the fund outweighs any disadvantages that may be said to exist from exposure to simultaneous transactions.
The fund's NAV is the value of a single share. The NAV of the fund is computed by adding the value of the fund's investments, cash, and other assets, subtracting its liabilities, and dividing the result by the number of shares outstanding.
Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price (on the local exchange) is unavailable, the last evaluated quote or closing bid price normally is used. Securities of other open-end investment companies are valued at their respective NAVs.
Debt securities and other assets for which market quotations are readily available may be valued at market values determined by such securities' most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which they normally are traded, as furnished by recognized dealers in such securities or assets. Or, debt securities and convertible securities may be valued on the basis of information furnished by a pricing service that uses a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Use of pricing services has been approved by the Board of Trustees. A number of pricing services are available, and the fund may use various pricing services or discontinue the use of any pricing service.
Futures contracts and options are valued on the basis of market quotations, if available.
Independent brokers or quotation services provide prices of foreign securities in their local currency. Fidelity Service Company, Inc. (FSC) gathers all exchange rates daily at the close of the NYSE using the last quoted price on the local currency and then translates the value of foreign securities from their local currencies into U.S. dollars. Any changes in the value of forward contracts due to exchange rate fluctuations and days to maturity are included in the calculation of NAV. If an event that is expected to materially affect the value of a portfolio security occurs after the close of an exchange or market on which that security is traded, then that security will be valued in good faith by a committee appointed by the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less for which market quotations and information furnished by a pricing service are not readily available are valued either at amortized cost or at original cost plus accrued interest, both of which approximate current value.
The procedures set forth above need not be used to determine the value of the securities owned by the fund if, in the opinion of a committee appointed by the Board of Trustees, some other method would more accurately reflect the fair value of such securities. For example, securities and other assets for which there is no readily available market value may be valued in good faith by a committee appointed by the Board of Trustees. In making a good faith determination of the value of a security, the committee may review price movements in futures contracts and American Depositary Receipts (ADRs), market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading.
BUYING, SELLING, AND EXCHANGING INFORMATION
The fund may make redemption payments in whole or in part in readily marketable securities or other property pursuant to procedures approved by the Trustees if FMR determines it is in the best interests of the fund. Such securities or other property will be valued for this purpose as they are valued in computing the fund's NAV. Shareholders that receive securities or other property will realize, upon receipt, a gain or loss for tax purposes, and will incur additional costs and be exposed to market risk prior to and upon sale of such securities or other property.
Dividends. Because the fund invests significantly in foreign securities, corporate shareholders should not expect fund dividends to qualify for the dividends-received deduction. However, a percentage of dividends distributed to individual shareholders may qualify for taxation at long-term capital gains rates (provided certain holding period requirements are met). Short-term capital gains are taxable at ordinary income tax rates, but do not qualify for the dividends-received deduction.
Capital Gain Distributions. The fund's long-term capital gain distributions are federally taxable to shareholders generally as capital gains.
Returns of Capital. If the fund's distributions exceed its taxable income and capital gains realized during a taxable year, all or a portion of the distributions made in the same taxable year may be recharacterized as a return of capital to shareholders. A return of capital distribution will generally not be taxable, but will reduce each shareholder's cost basis in the fund and result in a higher reported capital gain or lower reported capital loss when those shares on which the distribution was received are sold.
Foreign Tax Credit or Deduction. Foreign governments may withhold taxes on dividends and interest earned by the fund with respect to foreign securities. Foreign governments may also impose taxes on other payments or gains with respect to foreign securities. If, at the close of its fiscal year, more than 50% of the fund's total assets is invested in securities of foreign issuers, the fund may elect to pass through eligible foreign taxes paid and thereby allow shareholders to take a deduction or, if they meet certain holding period requirements with respect to fund shares, a credit on their individual tax returns. Special rules may apply to the credit for individuals who receive dividends qualifying for the long-term capital gains tax rate.
Tax Status of the Fund. The fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code so that it will not be liable for federal tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company, and avoid being subject to federal income or excise taxes at the fund level, the fund intends to distribute substantially all of its net investment income and net realized capital gains within each calendar year as well as on a fiscal year basis, and intends to comply with other tax rules applicable to regulated investment companies.
Other Tax Information. The information above is only a summary of some of the tax consequences generally affecting the fund and its shareholders, and no attempt has been made to discuss individual tax consequences. It is up to you or your tax preparer to determine whether the sale of shares of the fund resulted in a capital gain or loss or other tax consequence to you. In addition to federal income taxes, shareholders may be subject to state and local taxes on fund distributions, and shares may be subject to state and local personal property taxes. Investors should consult their tax advisers to determine whether the fund is suitable to their particular tax situation.
<R>The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Each of the Trustees oversees 353 funds advised by FMR or an affiliate.</R>
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
<R>Name, Age; Principal Occupation</R> |
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<R>Edward C. Johnson 3d (76)</R> |
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<R>Year of Election or Appointment: 1981</R> <R>Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL).</R> |
<R>* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.</R>
<R>Independent Trustees:</R>
<R>Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.</R>
<R>Name, Age; Principal Occupation</R> |
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<R>Dennis J. Dirks (58)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).</R> |
<R>Albert R. Gamper, Jr. (65)</R> |
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<R>Year of Election or Appointment: 2006</R> <R>Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.</R> |
<R>George H. Heilmeier (70)</R> |
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<R>Year of Election or Appointment: 2004</R> <R>Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.</R> |
<R>James H. Keyes (66)</R> |
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<R>Year of Election or Appointment: 2007</R> <R>Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).</R> |
<R>Marie L. Knowles (60)</R> |
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<R>Year of Election or Appointment: 2001</R> <R>Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.</R> |
<R>Ned C. Lautenbach (63)</R> |
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<R>Year of Election or Appointment: 2000</R> <R>Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.</R> |
<R>Cornelia M. Small (62)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.</R> |
<R>William S. Stavropoulos (67)</R> |
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<R>Year of Election or Appointment: 2001</R> <R>Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.</R> |
<R>Kenneth L. Wolfe (68)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present).</R> |
<R>Advisory Board Members and Executive Officers:</R>
<R>Correspondence intended for each executive officer, Mr. Curvey, and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.</R>
<R>Name, Age; Principal Occupation</R> |
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<R>James C. Curvey (71)</R> |
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<R>Year of Election or Appointment: 2007</R> <R>Member of the Advisory Board of Fidelity Charles Street Trust. Mr. Curvey also serves as a Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is Vice Chairman (2006-present) and Director of FMR Corp. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR Corp. (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).</R> |
<R>Peter S. Lynch (63)</R> |
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<R>Year of Election or Appointment: 2003</R> <R>Member of the Advisory Board of Fidelity Charles Street Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.</R> |
<R>Kimberley H. Monasterio (43)</R> |
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<R>Year of Election or Appointment: 2007</R> <R>President and Treasurer of Global Balanced. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).</R> |
<R>Dwight D. Churchill (53)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Vice President of Global Balanced. Mr. Churchill also serves as Vice President of certain Equity Funds (2005-present). Mr. Churchill is Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Churchill served as Senior Vice President of Fidelity Investments Money Management, Inc. (2005-2006), Head of Fidelity's Fixed-Income Division (2000-2005), Vice President of Fidelity's Money Market Funds (2000-2005), Vice President of Fidelity's Bond Funds, and Senior Vice President of FMR.</R> |
<R>Eric M. Wetlaufer (45)</R> |
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<R>Year of Election or Appointment: 2006</R> <R>Vice President of Global Balanced. Mr. Wetlaufer also serves as Vice President of certain International Equity Funds (2006-present). Mr. Wetlaufer is Senior Vice President of FMR (2006-present) and FMR Co., Inc. (2006-present), and President and Director of Fidelity Management & Research (U.K.) Inc. (2006-present) and Fidelity Research & Analysis Company (2006-present). Before joining Fidelity Investments in 2005, Mr. Wetlaufer was a partner in Oxhead Capital Management (2004-2005). Previously, Mr. Wetlaufer served as a Chief Investment Officer of Putnam Investments (1997-2003).</R> |
<R>Derek L. Young (42)</R> |
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<R>Year of Election or Appointment: 2006 </R> <R>Vice President of Global Balanced. Mr. Young also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Young worked as a research analyst and a portfolio manager. Mr. Young also serves as a Vice President of FMR and FMR Co., Inc. (2004).</R> |
<R>Eric D. Roiter (58)</R> |
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<R>Year of Election or Appointment: 1998</R> <R>Secretary of Global Balanced. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).</R> |
<R>Scott C. Goebel (39)</R> |
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<R>Year of Election or Appointment: 2007</R> <R>Assistant Secretary of Global Balanced. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR.</R> |
<R>R. Stephen Ganis (41)</R> |
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<R>Year of Election or Appointment: 2006</R> <R>Anti-Money Laundering (AML) officer of Global Balanced. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).</R> |
<R>Joseph B. Hollis (59)</R> |
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<R>Year of Election or Appointment: 2006</R> <R>Chief Financial Officer of Global Balanced. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).</R> |
<R>Kenneth A. Rathgeber (59)</R> |
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<R>Year of Election or Appointment: 2004</R> <R>Chief Compliance Officer of Global Balanced. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).</R> |
<R>Bryan A. Mehrmann (46)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Deputy Treasurer of Global Balanced. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).</R> |
<R>Kenneth B. Robins (37)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Deputy Treasurer of Global Balanced. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).</R> |
<R>Robert G. Byrnes (40)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Assistant Treasurer of Global Balanced. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).</R> |
<R>Peter L. Lydecker (53)</R> |
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<R>Year of Election or Appointment: 2004</R> <R>Assistant Treasurer of Global Balanced. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.</R> |
<R>Gary W. Ryan (48)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Assistant Treasurer of Global Balanced. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).</R> |
<R>Salvatore Schiavone (41)</R> |
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<R>Year of Election or Appointment: 2005</R> <R>Assistant Treasurer of Global Balanced. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003).</R> |
<R>Standing Committees of the Fund's Trustees. The Board of Trustees has established various committees to support the Independent Trustees in acting independently in pursuing the best interests of the Fidelity funds and their shareholders. The committees facilitate the timely and efficient consideration of all matters of importance to Independent Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements. Currently, the Board of Trustees has 12 standing committees. The members of each committee are Independent Trustees.</R>
<R>The Operations Committee is composed of all of the Independent Trustees, with Mr. Lautenbach currently serving as Chair. The committee normally meets monthly (except August), or more frequently as called by the Chair, and serves as a forum for consideration of issues of importance to, or calling for particular determinations by, the Independent Trustees. The committee also considers matters involving potential conflicts of interest between the funds and FMR and its affiliates and reviews proposed contracts and the proposed continuation of contracts between the Fidelity funds and FMR and its affiliates, and annually reviews and makes recommendations regarding contracts with third parties unaffiliated with FMR, including insurance coverage and custody agreements. The committee also monitors additional issues including the nature, levels and quality of services provided to shareholders, significant litigation, and the voting of proxies of portfolio companies. The committee also has oversight of compliance issues not specifically within the scope of any other committee. The committee is also responsible for definitive action on all compliance matters involving the potential for significant reimbursement by FMR. During the fiscal year ended October 31, 2006, the committee held 12 meetings.</R>
<R>The Fair Value Oversight Committee is composed of all of the Independent Trustees, with Mr. Lautenbach currently serving as Chair. The committee normally meets quarterly, or more frequently as called by the Chair. The Fair Value Oversight Committee monitors and establishes policies concerning procedures and controls regarding the valuation of fund investments and monitors matters of disclosure to the extent required to fulfill its statutory responsibilities. The committee also reviews actions taken by FMR's Fair Value Committee. During the fiscal year ended October 31, 2006, the committee held three meetings.</R>
<R>The Board of Trustees has established three Fund Oversight Committees: the Equity Committee (composed of Messrs. Stavropoulos (Chair), Gamper, and Lautenbach), the Fixed-Income, International, and Special Committee (composed of Ms. Small (Chair), Ms. Knowles, and Mr. Dirks), and the Select and Asset Allocation Committee (composed of Dr. Heilmeier (Chair), Messrs. Keyes and Wolfe). Each committee normally meets in conjunction with in-person meetings of the Board of Trustees, or more frequently as called by the Chair of the respective committee. Each committee develops an understanding of and reviews the investment objectives, policies, and practices of each fund under its oversight. Each committee also monitors investment performance, compliance by each relevant Fidelity fund with its investment policies and restrictions and reviews appropriate benchmarks, competitive universes, unusual or exceptional investment matters, the personnel and other resources devoted to the management of each fund and all other matters bearing on each fund's investment results. The Fixed-Income, International, and Special Committee also receives reports required under Rule 2a-7 of the 1940 Act and has oversight of research bearing on credit quality, investment structures and other fixed-income issues, and of international research. The Select and Asset Allocation Committee has oversight of FMR's equity investment research. Each committee will review and recommend any required action to the Board in respect of specific funds, including new funds, changes in fundamental and non-fundamental investment policies and restrictions, partial or full closing to new investors, fund mergers, fund name changes, and liquidations of funds. The members of each committee may organize working groups to make recommendations concerning issues related to funds that are within the scope of the committee's review. These working groups report to the committee or to the Independent Trustees, or both, as appropriate. Each working group may request from FMR such information from FMR as may be appropriate to the working group's deliberations. During the fiscal year ended October 31, 2006, the Equity Committee held 10 meetings, the Fixed-Income, International, and Special Committee held 11 meetings, and the Select and Asset Allocation Committee held 10 meetings.</R>
<R>The Board of Trustees has established two Fund Contract Committees: the Equity Contract Committee (composed of Messrs. Stavropoulos (Chair), Gamper, and Lautenbach, Dr. Heilmeier, and Ms. Small) and the Fixed-Income Contract Committee (composed of Ms. Small (Chair), Mr. Dirks, and Ms. Knowles). Each committee will ordinarily meet as needed to consider matters related to the renewal of fund investment advisory agreements. The committees will assist the Independent Trustees in their consideration of investment advisory agreements of each fund. Each committee receives information on and makes recommendations concerning the approval of investment advisory agreements between the Fidelity funds and FMR and its affiliates and any non-FMR affiliate that serves as a sub-adviser to a Fidelity fund (collectively, investment advisers) and the annual review of these contracts. The Fixed-Income Contract Committee will be responsible for investment advisory agreements of the fixed-income funds. The Equity Contract Committee will be responsible for the investment advisory agreements of all other funds. With respect to each fund under its purview, each committee: requests and receives information on the nature, extent, and quality of services provided to the shareholders of the Fidelity funds by the investment advisers and their respective affiliates, fund performance, the investment performance of the investment adviser, and such other information as the committee determines to be reasonably necessary to evaluate the terms of the investment advisory agreements; considers the cost of the services to be provided and the profitability and other benefits that the investment advisers and their respective affiliates derive or will derive from their contractual arrangements with each of the funds (including tangible and intangible "fall-out benefits"); considers the extent to which economies of scale would be realized as the funds grow and whether fee levels reflect those economies of scale for the benefit of fund investors; considers methodologies for determining the extent to which the funds benefit from economies of scale and refinements to these methodologies; considers information comparing the services to be rendered and the amount to be paid under the funds' contracts with those under other investment advisory contracts entered into with FMR and its affiliates and other investment advisers, such as contracts with other registered investment companies or other types of clients; considers such other matters and information as may be necessary and appropriate to evaluate investment advisory agreements of the funds; and makes recommendations to the Board concerning the approval or renewal of investment advisory agreements. Each committee will consult with the other committees of the Board of Trustees, and in particular with the Audit Committee and the applicable Fund Oversight Committees, in carrying out its responsibilities. Each committee's responsibilities are guided by Sections 15(c) and 36(b) of the 1940 Act. While each committee consists solely of Independent Trustees, its meetings may, depending upon the subject matter, be attended by one or more senior members of FMR's management or representatives of a sub-adviser not affiliated with FMR. During the fiscal year ended October 31, 2006, each Fund Contract Committee held four meetings.</R>
<R>The Shareholder, Distribution and Brokerage Committee is composed of Messrs. Dirks (Chair), Gamper, and Stavropoulos, and Ms. Small. The committee normally meets monthly (except August), or more frequently as called by the Chair. Regarding shareholder services, the committee considers the structure and amount of the Fidelity funds' transfer agency fees and fees, including direct fees to investors (other than sales loads), such as bookkeeping and custodial fees, and the nature and quality of services rendered by FMR and its affiliates or third parties (such as custodians) in consideration of these fees. The committee also considers other non-investment management services rendered to the Fidelity funds by FMR and its affiliates, including pricing and bookkeeping services. Regarding brokerage, the committee monitors and recommends policies concerning the securities transactions of the Fidelity funds. The committee periodically reviews the policies and practices with respect to efforts to achieve best execution, commissions paid to firms supplying research and brokerage services or paying fund expenses, and policies and procedures designed to assure that any allocation of portfolio transactions is not influenced by the sale of Fidelity fund shares. The committee also monitors brokerage and other similar relationships between the Fidelity funds and firms affiliated with FMR that participate in the execution of securities transactions. Regarding the distribution of fund shares, the committee considers issues bearing on the various distribution channels employed by the Fidelity funds, including issues regarding Rule 18f-3 plans and related consideration of classes of shares, sales load structures (including breakpoints), load waivers, selling concessions and service charges paid to intermediaries, Rule 12b-1 plans, contingent deferred sales charges, and finders' fees, and other means by which intermediaries are compensated for selling fund shares or providing shareholder servicing, including revenue sharing. The committee also considers issues bearing on the preparation and use of advertisements and sales literature for the Fidelity funds, policies and procedures regarding frequent purchase of Fidelity fund shares, and selective disclosure of portfolio holdings. During the fiscal year ended October 31, 2006, the Shareholder, Distribution and Brokerage Committee held 12 meetings.</R>
<R>The Audit Committee is composed of Ms. Knowles (Chair), Dr. Heilmeier, and Messrs. Keyes and Wolfe. All committee members must be able to read and understand fundamental financial statements, including a company's balance sheet, income statement, and cash flow statement. At least one committee member will be an "audit committee financial expert" as defined by the SEC. The committee will have at least one committee member in common with the Compliance Committee. The committee normally meets monthly (except August), or more frequently as called by the Chair. The committee meets separately at least four times a year with the Fidelity funds' Treasurer, with personnel responsible for the internal audit function of FMR Corp., and with the Fidelity funds' outside auditors. The committee has direct responsibility for the appointment, compensation, and oversight of the work of the outside auditors employed by the Fidelity funds. The committee assists the Trustees in overseeing and monitoring: (i) the systems of internal accounting and financial controls of the Fidelity funds and the funds' service providers, (ii) the financial reporting processes of the Fidelity funds, (iii) the independence, objectivity and qualification of the auditors to the Fidelity funds, (iv) the annual audits of the Fidelity funds' financial statements, and (v) the accounting policies and disclosures of the Fidelity funds. The committee considers and acts upon (i) the provision by any outside auditor of any non-audit services for any Fidelity fund, and (ii) the provision by any outside auditor of certain non-audit services to Fidelity fund service providers and their affiliates to the extent that such approval (in the case of this clause (ii)) is required under applicable regulations of the SEC. In furtherance of the foregoing, the committee has adopted (and may from time to time amend or supplement) and provides oversight of policies and procedures for non-audit engagements by outside auditors of the Fidelity funds. It is responsible for approving all audit engagement fees and terms for the Fidelity funds, resolving disagreements between a fund and any outside auditor regarding any fund's financial reporting, and has sole authority to hire and fire any auditor. Auditors of the funds report directly to the committee. The committee will obtain assurance of independence and objectivity from the outside auditors, including a formal written statement delineating all relationships between the auditor and the Fidelity funds and any service providers consistent with Independent Standards Board Standard No. 1. The committee will receive reports of compliance with provisions of the Auditor Independence Regulations relating to the hiring of employees or former employees of the outside auditors. It oversees and receives reports on the Fidelity funds' service providers' internal controls and reviews the adequacy and effectiveness of the service providers' accounting and financial controls, including: (i) any significant deficiencies or material weaknesses in the design or operation of internal controls over financial reporting that are reasonably likely to adversely affect the Fidelity funds' ability to record, process, summarize, and report financial data; (ii) any change in the fund's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the fund's internal control over financial reporting; and (iii) any fraud, whether material or not, that involves management or other employees who have a significant role in the Fidelity funds' or service providers internal controls over financial reporting. The committee will review with counsel any legal matters that may have a material impact on the Fidelity funds' financial statements and any material reports or inquiries received from regulators or governmental agencies. These matters may also be reviewed by the Compliance Committee or the Operations Committee. The Chair of the Audit Committee will coordinate with the Chair of the Compliance Committee, as appropriate. The committee reviews at least annually a report from each outside auditor describing any material issues raised by the most recent internal quality control, peer review, or Public Company Accounting Oversight Board examination of the auditing firm and any material issues raised by any inquiry or investigation by governmental or professional authorities of the auditing firm and in each case any steps taken to deal with such issues. The committee will oversee and receive reports on the Fidelity funds' financial reporting process, will discuss with FMR, the Fidelity funds' Treasurer, outside auditors and, if appropriate, internal audit personnel of FMR Corp. their qualitative judgments about the appropriateness and acceptability of accounting principles and financial disclosure practices used or proposed for adoption by the Fidelity funds, and will review with FMR, the Fidelity funds' Treasurer, outside auditor, and internal auditor personnel of FMR Corp. (to the extent relevant) the results of audits of the Fidelity funds' financial statements. The committee will review periodically the Fidelity funds' major internal controls exposures and the steps that have been taken to monitor and control such exposures. During the fiscal year ended October 31, 2006, the committee held 14 meetings.</R>
<R>The Governance and Nominating Committee is composed of Messrs. Lautenbach (Chair), Stavropoulos, and Wolfe. The committee meets as called by the Chair. With respect to fund governance and board administration matters, the committee periodically reviews procedures of the Board of Trustees and its committees (including committee charters) and periodically reviews compensation of Independent Trustees. The committee monitors corporate governance matters and makes recommendations to the Board of Trustees on the frequency and structure of the Board of Trustee meetings and on any other aspect of Board procedures. It acts as the administrative committee under the retirement plan for Independent Trustees who retired prior to December 30, 1996 and under the fee deferral plan for Independent Trustees. It reviews the performance of legal counsel employed by the Fidelity funds and the Independent Trustees. On behalf of the Independent Trustees, the committee will make such findings and determinations as to the independence of counsel for the Independent Trustees as may be necessary or appropriate under applicable regulations or otherwise. The committee is also responsible for Board administrative matters applicable to Independent Trustees, such as expense reimbursement policies and compensation for attendance at meetings, conferences and other events. The committee monitors compliance with, acts as the administrator of, and makes determinations in respect of, the provisions of the code of ethics and any supplemental policies regarding personal securities transactions applicable to the Independent Trustees. The committee monitors the functioning of each Board committee and makes recommendations for any changes, including the creation or elimination of standing or ad hoc Board committees. The committee monitors regulatory and other developments to determine whether to recommend modifications to the committee's responsibilities or other Trustee policies and procedures in light of rule changes, reports concerning "best practices" in corporate governance and other developments in mutual fund governance. The committee meets with Independent Trustees at least once a year to discuss matters relating to fund governance. The committee recommends that the Board establish such special or ad hoc Board committees as may be desirable or necessary from time to time in order to address ethical, legal, or other matters that may arise. The committee also oversees the annual self-evaluation of the Board of Trustees and establishes procedures to allow it to exercise this oversight function. In conducting this oversight, the committee shall address all matters that it considers relevant to the performance of the Board of Trustees and shall report the results of its evaluation to the Board of Trustees, including any recommended amendments to the principles of governance, and any recommended changes to the Fidelity funds' or the Board of Trustees' policies, procedures, and structures. The committee reviews periodically the size and composition of the Board of Trustees as a whole and recommends, if necessary, measures to be taken so that the Board of Trustees reflects the appropriate balance of knowledge, experience, skills, expertise, and diversity required for the Board as a whole and contains at least the minimum number of Independent Trustees required by law. The committee makes nominations for the election or appointment of Independent Trustees and non-management Members of any Advisory Board, and for membership on committees. The committee shall have authority to retain and terminate any third-party advisers, including authority to approve fees and other retention terms. Such advisers may include search firms to identify Independent Trustee candidates and board compensation consultants. The committee may conduct or authorize investigations into or studies of matters within the committee's scope of responsibilities, and may retain, at the Fidelity funds' expense, such independent counsel or other advisers as it deems necessary. The committee will consider nominees to the Board of Trustees recommended by shareholders based upon the criteria applied to candidates presented to the committee by a search firm or other source. Recommendations, along with appropriate background material concerning the candidate that demonstrates his or her ability to serve as an Independent Trustee of the Fidelity funds, should be submitted to the Chair of the committee at the address maintained for communications with Independent Trustees. If the committee retains a search firm, the Chair will generally forward all such submissions to the search firm for evaluation. With respect to the criteria for selecting Independent Trustees, it is expected that all candidates will possess the following minimum qualifications: (i) unquestioned personal integrity; (ii) not an interested person of FMR or its affiliates within the meaning of the 1940 Act; (iii) does not have a material relationship (e.g., commercial, banking, consulting, legal, or accounting) that could create an appearance of lack of independence in respect of FMR and its affiliates; (iv) has the disposition to act independently in respect of FMR and its affiliates and others in order to protect the interests of the funds and all shareholders; (v) ability to attend 11 meetings per year; (vi) demonstrates sound business judgment gained through broad experience in significant positions where the candidate has dealt with management, technical, financial, or regulatory issues; (vii) sufficient financial or accounting knowledge to add value in the complex financial environment of the Fidelity funds; (viii) experience on corporate or other institutional oversight bodies having similar responsibilities, but which board memberships or other relationships could not result in business or regulatory conflicts with the funds; and (ix) capacity for the hard work and attention to detail that is required to be an effective Independent Trustee in light of the Fidelity funds' complex regulatory, operational, and marketing setting. The Governance and Nominating Committee may determine that a candidate who does not have the type of previous experience or knowledge referred to above should nevertheless be considered as a nominee if the Governance and Nominating Committee finds that the candidate has additional qualifications such that his or her qualifications, taken as a whole, demonstrate the same level of fitness to serve as an Independent Trustee. During the fiscal year ended October 31, 2006, the committee held 10 meetings.</R>
<R>The Board of Trustees established the Compliance Committee (composed of Ms. Small (Chair), Ms. Knowles, and Messrs. Stavropoulos and Wolfe) in May 2005. The committee normally meets quarterly, or more frequently as called by the Chair. The committee oversees the administration and operation of the compliance policies and procedures of the Fidelity funds and their service providers as required by Rule 38a-1 of the 1940 Act. The committee is responsible for the review and approval of policies and procedures relating to (i) provisions of the Code of Ethics, (ii) anti-money laundering requirements, (iii) compliance with investment restrictions and limitations, (iv) privacy, (v) recordkeeping, and (vi) other compliance policies and procedures which are not otherwise delegated to another committee. The committee has responsibility for recommending to the Board the designation of a Chief Compliance Officer (CCO) of the Fidelity funds. The committee serves as the primary point of contact between the CCO and the Board, it oversees the annual performance review and compensation of the CCO, and if required, makes recommendations to the Board with respect to the removal of the appointed CCO. The committee receives reports of significant correspondence with regulators or governmental agencies, employee complaints or published reports which raise concerns regarding compliance matters, and copies of significant non-routine correspondence with the SEC. The committee receives reports from the CCO including the annual report concerning the funds' compliance policies as required by Rule 38a-1, quarterly reports in respect of any breaches of fiduciary duty or violations of federal securities laws, and reports on any other compliance or related matters that may have a significant impact on the funds. The committee will recommend to the Board, what actions, if any, should be taken with respect to such reports. During the fiscal year ended October 31, 2006, the committee held 21 meetings.</R>
<R>The Proxy Voting Committee is composed of Messrs. Gamper (Chair), Dirks, and Keyes. The committee will meet as needed to review the fund's proxy voting policies, consider changes to the policies, and review the manner in which the policies have been applied. The committee will receive reports on the manner in which proxy votes have been cast under the proxy voting policies and reports on consultations between the fund's investment advisers and portfolio companies concerning matters presented to shareholders for approval. The committee will address issues relating to the fund's annual voting report filed with the SEC. The committee will receive reports concerning the implementation of procedures and controls designed to ensure that the proxy voting policies are implemented in accordance with their terms. The committee will consider FMR's recommendations concerning certain non-routine proposals not covered by the proxy voting policies. The committee will receive reports with respect to steps taken by FMR to assure that proxy voting has been done without regard to any other FMR relationships, business or otherwise, with that portfolio company. The committee will make recommendations to the Board concerning the casting of proxy votes in circumstances where FMR has determined that, because of a conflict of interest, the proposal to be voted on should be reviewed by the Board. During the fiscal year ended October 31, 2006, the committee held two meetings.</R>
<R>The following table sets forth information describing the dollar range of equity securities beneficially owned by each Trustee in the fund and in all funds in the aggregate within the same fund family overseen by the Trustee for the calendar year ended December 31, 2006.</R>
<R>Interested Trustees</R> |
||
<R>DOLLAR RANGE OF |
<R>Edward C. Johnson 3d</R> |
|
<R>Global Balanced</R> |
<R>none</R> |
|
<R>AGGREGATE DOLLAR RANGE OF FUND SHARES IN ALL FUNDS OVERSEEN WITHIN FUND FAMILY</R> |
<R>over $100,000</R> |
|
<R>Independent Trustees</R> |
|||||
<R>DOLLAR RANGE OF |
<R>Dennis J. Dirks</R> |
<R>Albert R. Gamper, Jr.</R> |
<R>George H. Heilmeier</R> |
<R>James H. Keyes</R> |
<R>Marie L. Knowles</R> |
<R>Global Balanced</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>AGGREGATE DOLLAR RANGE OF FUND SHARES IN ALL FUNDS OVERSEEN WITHIN FUND FAMILY</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>none</R> |
<R>over $100,000</R> |
<R>DOLLAR RANGE OF |
<R>Ned C. Lautenbach</R> |
<R>Cornelia M. Small</R> |
<R>William S. Stavropoulos</R> |
<R>Kenneth L. Wolfe</R> |
<R>Global Balanced</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>AGGREGATE DOLLAR RANGE OF FUND SHARES IN ALL FUNDS OVERSEEN WITHIN FUND FAMILY</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>over $100,000</R> |
<R>The following table sets forth information describing the compensation of each Trustee and Member of the Advisory Board for his or her services for the fiscal year ended October 31, 2006, or calendar year ended December 31, 2006, as applicable.</R>
<R>Compensation Table1</R> |
|||||||
<R>AGGREGATE |
<R>Dennis J. |
<R>Albert R. |
<R>Robert M. |
<R>George H. |
<R>James H. |
<R>Marie L. |
|
<R>Global Balanced</R> |
<R>$ 70</R> |
<R>$ 69</R> |
<R>$ 85</R> |
<R>$ 67</R> |
<R>$ 46</R> |
<R>$ 75</R> |
|
<R>TOTAL COMPENSATION |
<R>$ 363,500</R> |
<R>$ 362,000</R> |
<R>$ 435,788</R> |
<R>$ 354,000</R> |
<R>$ 295,500</R> |
<R>$ 389,000</R> |
|
<R>AGGREGATE |
<R>Ned C. |
<R>Marvin L. |
<R>William
O. |
<R>Cornelia
M. |
<R>William
S. |
<R>Kenneth
L. |
|
<R>Global Balanced</R> |
<R>$ 70</R> |
<R>$ 16</R> |
<R>$ 68</R> |
<R>$ 70</R> |
<R>$ 69</R> |
<R>$ 69</R> |
|
<R>TOTAL COMPENSATION |
<R>$ 369,333</R> |
<R>$ 0</R> |
<R>$ 403,500B</R> |
<R>$ 362,000</R> |
<R>$ 358,500</R> |
<R>$ 359,500</R> |
|
<R>1 Edward C. Johnson 3d, James C. Curvey, and Peter S. Lynch are interested persons and are compensated by FMR.</R>
<R>2 During the period from June 1, 2005 through December 31, 2005, Mr. Gamper served as a Member of the Advisory Board. Effective January 1, 2006, Mr. Gamper serves as a Member of the Board of Trustees.</R>
<R>3 Dr. Gates served on the Board of Trustees through December 2006.</R>
<R>4 During the period from March 1, 2006 through December 31, 2006, Mr. Keyes served as a Member of the Advisory Board. Effective January 1, 2007, Mr. Keyes serves as a Member of the Board of Trustees.</R>
<R>5 Mr. Mann served on the Board of Trustees through December 31, 2005.</R>
<R>6 Mr. McCoy served on the Board of Trustees through January 1, 2007.</R>
<R>A Reflects compensation received for the calendar year ended December 31, 2006 for 350 funds of 58 trusts (including Fidelity Central Investment Portfolios LLC). Compensation figures include cash, amounts required to be deferred, and may include amounts deferred at the election of Trustees. For the calendar year ended December 31, 2006, the Trustees accrued required deferred compensation from the funds as follows: Dennis J. Dirks, $148,500; Albert R. Gamper, $146,670; Robert M. Gates, $189,144; George H. Heilmeier, $148,500; Marie L. Knowles, $163,500; Ned C. Lautenbach, $152,667; William O. McCoy, $148,500; Cornelia M. Small, $148,500; William S. Stavropoulos, $148,500; and Kenneth L. Wolfe, $148,500. Certain of the Independent Trustees elected voluntarily to defer a portion of their compensation as follows: Ned C. Lautenbach, $39,213; and William O. McCoy, $85,287.</R>
<R>B Compensation figures include cash and may include amounts deferred at Mr. McCoy's election under a deferred compensation plan adopted by the other open-end registered investment companies in the fund complex (Other Open-End Funds). Pursuant to the deferred compensation plan, Mr. McCoy, as an Independent Trustee, may elect to defer receipt of all or a portion of his annual fees. Amounts deferred under the deferred compensation plan are credited to an account established for Mr. McCoy on the books of the Other Open-End Funds. Interest is accrued on amounts deferred under the deferred compensation plan. For the calendar year ended December 31, 2006, Mr. McCoy voluntarily elected to defer $47,000.</R>
<R>As of April 30, 2007, the Trustees, Members of the Advisory Board, and officers of the fund owned, in the aggregate, less than 1% of the fund's total outstanding shares.</R>
<R>As of April 30, 2007, the following owned of record and/or beneficially 5% or more (up to and including 25%) of the fund's outstanding shares:</R>
<R>NRG Energy, Inc., Princeton, NJ (7.01%); General Motors Corporation, New York, NY (5.32%).</R>
CONTROL OF INVESTMENT ADVISERS
FMR Corp., organized in 1972, is the ultimate parent company of FMR, Fidelity Management & Research (U.K.) Inc. (FMR U.K.), Fidelity Research & Analysis Company (FRAC), formerly known as Fidelity Management & Research (Far East) Inc., and FMR Co., Inc. (FMRC). The voting common stock of FMR Corp. is divided into two classes. Class B is held predominantly by members of the Edward C. Johnson 3d family and is entitled to 49% of the vote on any matter acted upon by the voting common stock. Class A is held predominantly by non-Johnson family member employees of FMR Corp. and its affiliates and is entitled to 51% of the vote on any such matter. The Johnson family group and all other Class B shareholders have entered into a shareholders' voting agreement under which all Class B shares will be voted in accordance with the majority vote of Class B shares. Under the 1940 Act, control of a company is presumed where one individual or group of individuals owns more than 25% of the voting stock of that company. Therefore, through their ownership of voting common stock and the execution of the shareholders' voting agreement, members of the Johnson family may be deemed, under the 1940 Act, to form a controlling group with respect to FMR Corp.
At present, the primary business activities of FMR Corp. and its subsidiaries are: (i) the provision of investment advisory, management, shareholder, investment information and assistance and certain fiduciary services for individual and institutional investors; (ii) the provision of securities brokerage services; (iii) the management and development of real estate; and (iv) the investment in and operation of a number of emerging businesses.
Fidelity International Limited (FIL), a Bermuda company formed in 1968, is the ultimate parent company of Fidelity International Investment Advisors (FIIA), Fidelity Investments Japan Limited (FIJ), and Fidelity International Investment Advisors (U.K.) Limited (FIIA(U.K.)L). Edward C. Johnson 3d, Johnson family members, and various trusts for the benefit of the Johnson family own, directly or indirectly, more than 25% of the voting common stock of FIL. At present, the primary business activities of FIL and its subsidiaries are the provision of investment advisory services to non-U.S. investment companies and private accounts investing in securities throughout the world.
FMR, FMRC, FMR U.K., FRAC, FIJ, FIIA, FIIA(U.K.)L (the Investment Advisers), FDC, and the fund have adopted codes of ethics under Rule 17j-1 of the 1940 Act that set forth employees' fiduciary responsibilities regarding the fund, establish procedures for personal investing, and restrict certain transactions. Employees subject to the codes of ethics, including Fidelity investment personnel, may invest in securities for their own investment accounts, including securities that may be purchased or held by the fund.
The fund has entered into a management contract with FMR, pursuant to which FMR furnishes investment advisory and other services.
Management Services. Under the terms of its management contract with the fund, FMR acts as investment adviser and, subject to the supervision of the Board of Trustees, has overall responsibility for directing the investments of the fund in accordance with its investment objective, policies and limitations. FMR also provides the fund with all necessary office facilities and personnel for servicing the fund's investments, compensates all officers of the fund and all Trustees who are interested persons of the trust or of FMR, and all personnel of the fund or FMR performing services relating to research, statistical and investment activities.
In addition, FMR or its affiliates, subject to the supervision of the Board of Trustees, provide the management and administrative services necessary for the operation of the fund. These services include providing facilities for maintaining the fund's organization; supervising relations with custodians, transfer and pricing agents, accountants, underwriters and other persons dealing with the fund; preparing all general shareholder communications and conducting shareholder relations; maintaining the fund's records and the registration of the fund's shares under federal securities laws and making necessary filings under state securities laws; developing management and shareholder services for the fund; and furnishing reports, evaluations and analyses on a variety of subjects to the Trustees.
Management-Related Expenses. In addition to the management fee payable to FMR and the fees payable to the transfer, dividend disbursing, and shareholder servicing agent and pricing and bookkeeping agent, and the costs associated with securities lending, as applicable, the fund pays all of its expenses that are not assumed by those parties. The fund pays for the typesetting, printing, and mailing of its proxy materials to shareholders, legal expenses, and the fees of the custodian, auditor, and Independent Trustees. The fund's management contract further provides that the fund will pay for typesetting, printing, and mailing prospectuses, statements of additional information, notices, and reports to shareholders; however, under the terms of the fund's transfer agent agreement, the transfer agent bears these costs. Other expenses paid by the fund include interest, taxes, brokerage commissions, the fund's proportionate share of insurance premiums and Investment Company Institute dues, and the costs of registering shares under federal securities laws and making necessary filings under state securities laws. The fund is also liable for such non-recurring expenses as may arise, including costs of any litigation to which the fund may be a party, and any obligation it may have to indemnify its officers and Trustees with respect to litigation.
Management Fees. For the services of FMR under the management contract, Global Balanced pays FMR a monthly management fee which has two components: a group fee rate and an individual fund fee rate.
The group fee rate is based on the monthly average net assets of all of the registered investment companies with which FMR has management contracts.
GROUP FEE RATE SCHEDULE |
EFFECTIVE ANNUAL FEE RATES |
||||
Average Group |
Annualized |
Group Net |
Effective Annual Fee |
||
0 |
- |
$3 billion |
.5200% |
$ 1 billion |
.5200% |
3 |
- |
6 |
.4900 |
50 |
.3823 |
6 |
- |
9 |
.4600 |
100 |
.3512 |
9 |
- |
12 |
.4300 |
150 |
.3371 |
12 |
- |
15 |
.4000 |
200 |
.3284 |
15 |
- |
18 |
.3850 |
250 |
.3219 |
18 |
- |
21 |
.3700 |
300 |
.3163 |
21 |
- |
24 |
.3600 |
350 |
.3113 |
24 |
- |
30 |
.3500 |
400 |
.3067 |
30 |
- |
36 |
.3450 |
450 |
.3024 |
36 |
- |
42 |
.3400 |
500 |
.2982 |
42 |
- |
48 |
.3350 |
550 |
.2942 |
48 |
- |
66 |
.3250 |
600 |
.2904 |
66 |
- |
84 |
.3200 |
650 |
.2870 |
84 |
- |
102 |
.3150 |
700 |
.2838 |
102 |
- |
138 |
.3100 |
750 |
.2809 |
138 |
- |
174 |
.3050 |
800 |
.2782 |
174 |
- |
210 |
.3000 |
850 |
.2756 |
210 |
- |
246 |
.2950 |
900 |
.2732 |
246 |
- |
282 |
.2900 |
950 |
.2710 |
282 |
- |
318 |
.2850 |
1,000 |
.2689 |
318 |
- |
354 |
.2800 |
1,050 |
.2669 |
354 |
- |
390 |
.2750 |
1,100 |
.2649 |
390 |
- |
426 |
.2700 |
1,150 |
.2631 |
426 |
- |
462 |
.2650 |
1,200 |
.2614 |
462 |
- |
498 |
.2600 |
1,250 |
.2597 |
498 |
- |
534 |
.2550 |
1,300 |
.2581 |
534 |
- |
587 |
.2500 |
1,350 |
.2566 |
587 |
- |
646 |
.2463 |
1,400 |
.2551 |
646 |
- |
711 |
.2426 |
|
|
711 |
- |
782 |
.2389 |
|
|
782 |
- |
860 |
.2352 |
|
|
860 |
- |
946 |
.2315 |
|
|
946 |
- |
1,041 |
.2278 |
|
|
1,041 |
- |
1,145 |
.2241 |
|
|
1,145 |
- |
1,260 |
.2204 |
|
|
Over |
|
1,260 |
.2167 |
|
|
<R>The group fee rate is calculated on a cumulative basis pursuant to the graduated fee rate schedule shown above on the left. The schedule above on the right shows the effective annual group fee rate at various asset levels, which is the result of cumulatively applying the annualized rates on the left. For example, the effective annual fee rate at $1,124 billion of group net assets - the approximate level for October 2006 - was 0.2640%, which is the weighted average of the respective fee rates for each level of group net assets up to $1,124 billion.</R>
<R>The individual fund fee rate for Global Balanced is 0.45%. Based on the average group net assets of the funds advised by FMR for October 2006, the fund's annual management fee rate would be calculated as follows:</R>
<R>Fund</R> |
<R>Group Fee Rate</R> |
|
<R>Individual Fund Fee Rate</R> |
|
<R>Management Fee Rate</R> |
<R>Global Balanced</R> |
<R>0.2640%</R> |
<R>+</R> |
<R>0.4500%</R> |
<R>=</R> |
<R>0.7140%</R> |
<R>One-twelfth of the management fee rate is applied to the fund's average net assets for the month, giving a dollar amount which is the fee for that month.</R>
<R>For the fiscal the fiscal years ended October 31, 2006, 2005 and 2004, the fund paid FMR management fees of $1,623,828, $1,273,258, and $949,971, respectively.</R>
FMR may, from time to time, voluntarily reimburse all or a portion of the fund's operating expenses (exclusive of interest, taxes, certain securities lending costs, brokerage commissions, and extraordinary expenses), which is subject to revision or discontinuance. FMR retains the ability to be repaid for these expense reimbursements in the amount that expenses fall below the limit prior to the end of the fiscal year.
Expense reimbursements by FMR will increase the fund's returns and yield, and repayment of the reimbursement by the fund will lower its returns and yield.
Sub-Adviser - FMRC. On behalf of the fund, FMR has entered into a sub-advisory agreement with FMRC pursuant to which FMRC has day-to-day responsibility for choosing investments for the fund.
Under the terms of the sub-advisory agreements for the fund, FMR pays FMRC fees equal to 50% of the management fee (including any performance adjustment) payable to FMR under its management contract with the fund. The fees paid to FMRC are not reduced by any voluntary or mandatory expense reimbursements that may be in effect from time to time.
<R>On behalf of the fund, for the fiscal years ended October 31, 2006, 2005, and 2004, FMR paid FMRC fees of $499,301, $541,893, and $388,887, respectively.</R>
Sub-Advisers - FIIA, FIIA(U.K.)L, and FIJ. On behalf of the fund, FMR has entered into a master international research agreement with FIIA. On behalf of the fund, FIIA, in turn, has entered into sub-research agreements with FIIA(U.K.)L and FIJ. Pursuant to the research agreements, FMR may receive investment advice and research services concerning issuers and countries outside the United States.
Under the terms of the master international research agreement, FMR pays FIIA an amount based on the fund's international net assets relative to the international assets of other registered investment companies with which FMR has management contracts. Under the terms of the sub-research agreements, FIIA pays FIIA(U.K.)L and FIJ an amount equal to the administrative costs incurred in providing investment advice and research services for the fund.
For the past three fiscal years, no fees were paid to FIIA(U.K.)L and FIJ on behalf of the fund for providing investment advice and research services pursuant to the research agreements.
For providing investment advice and research services pursuant to the research agreements, fees paid to FIIA for the past three fiscal years are shown in the following table.
<R>Fiscal
Year |
|
<R>FIIA</R> |
<R>2006</R> |
|
<R>$ 38,390</R> |
<R>2005</R> |
|
<R>$ 3,190</R> |
<R>2004</R> |
|
<R>$ 40,875</R> |
Sub-Adviser - FRAC. On behalf of the fund, FMR, FMRC, and FRAC have entered into a research agreement. Pursuant to the research agreement, FRAC provides investment advice and research services on domestic issuers. The Board of Trustees approved the new research agreement with FRAC on January 19, 2006.
Under the terms of the research agreement, FMR and FMRC agree, in the aggregate, to pay FRAC a monthly fee equal to 110% of FRAC's costs incurred in providing investment advice and research services for the fund.
Sub-Advisers - FMR U.K., FRAC, FIIA, FIIA(U.K.)L, and FIJ. On behalf of the fund, FMR has entered into sub-advisory agreements with FMR U.K., FRAC, and FIIA. On behalf of the fund, FIIA, in turn, has entered into a sub-advisory agreement with FIIA(U.K.)L and FIJ. On behalf of the fund, FRAC has entered into a sub-advisory agreement with FIJ. Pursuant to the sub-advisory agreements, FMR may receive from the sub-advisers investment research and advice on issuers outside the United States (non-discretionary services) and FMR may grant the sub-advisers investment management authority and the authority to buy and sell securities if FMR believes it would be beneficial to the fund (discretionary services).
Under the terms of the sub-advisory agreements, for providing non-discretionary investment advice and research services the sub-advisers are compensated as follows:
Under the terms of the sub-advisory agreements, for providing discretionary investment management and executing portfolio transactions, the sub-advisers are compensated as follows:
<R>Average Group Assets</R> |
<R>Annualized Fee Rate</R> |
||
<R>from $0 |
- |
$500 million</R> |
<R>0.30%</R> |
<R>$500 million |
- |
$1 billion</R> |
<R>0.25%</R> |
<R>over |
- |
$1 billion</R> |
<R>0.20%</R> |
FIIA(U.K.)L's fee will not exceed 50% of the fee that FIIA receives from FMR for services provided on behalf of the fund.
Average Group Assets |
Annualized Fee Rate |
||
from $0 |
- |
$200 million |
0.30% |
$200 million |
- |
$500 million |
0.25% |
over |
- |
$500 million |
0.20% |
FIJ's fee will not exceed 50% of the fee that FIIA receives from FMR for services provided on behalf of the fund.
For the past three fiscal years, no fees were paid to FMR U.K., FRAC, FIIA, FIIA(U.K.)L, and FIJ on behalf of the fund for providing non-discretionary investment advice and research services pursuant to the sub-advisory agreements.
For the past three fiscal years, no fees were paid to FMR U.K. and FIIA(U.K.)L on behalf of the fund for providing discretionary investment management and execution of portfolio transactions pursuant to the sub-advisory agreements.
For providing discretionary investment management and execution of portfolio transactions pursuant to the sub-advisory agreements, fees paid to FRAC, FIIA, and FIJ on behalf of the fund for the past three fiscal years are shown in the following table.
<R>Fiscal
Year |
|
<R>FRAC</R> |
<R>FIIA</R> |
<R>FIJ</R> |
<R>2006</R> |
|
<R>$ 0</R> |
<R>$ 8,145</R> |
<R>$ 0</R> |
<R>2005</R> |
|
<R>$ 0</R> |
<R>$ 35,921</R> |
<R>$ 10,395</R> |
<R>2004</R> |
|
<R>$ 386</R> |
<R>$ 90,017</R> |
<R>$ 23,274</R> |
<R>Derek Young is the lead manager of Global Balanced and receives compensation for his services as described below. Jeffrey Feingold, Melissa Reilly, Leon Tucker, John Lo, and Andy Weir are co-managers of the fund; each manages a separate portion of the fund's assets and receives compensation for his or her services as described below. Ruben Calderon is assistant manager of Global Balanced and receives compensation as described below. As of the dates listed below, portfolio manager compensation generally consists of a fixed base salary determined periodically (typically annually), a bonus, in certain cases, participation in several types of equity-based compensation plans, and, if applicable, relocation plan benefits. A portion of each portfolio manager's compensation may be deferred based on criteria established by FMR or Fidelity Investments Ltd. (FIL), as applicable, or at the election of the portfolio manager.</R>
<R>As of October 31, 2006, the lead manager's base salary is determined by level of responsibility and tenure at FMR or its affiliates. The primary components of the lead manager's bonus are based on (i) the pre-tax investment performance of the lead manager's fund(s) and account(s) measured against a benchmark index assigned to each fund or account and (ii) the investment performance of other FMR equity funds and accounts. The pre-tax investment performance of the lead manager's fund(s) and account(s) is weighted according to his tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over his tenure. Each component is calculated separately over the lead manager's tenure on those fund(s) and account(s) over a measurement period, that initially is contemporaneous with his tenure, but that eventually encompasses rolling periods of up to five years. Another component of the lead manager's bonus is based on how he allocates the fund's assets among the asset classes of the fund, which are represented by a composite index, the components of which are 60% MSCI® World Index and 40% Citigroup® World Government Bond Index. The lead manager's bonus is based on the percentage of the fund actually invested in each asset class. The percentage overweight or percentage underweight in each asset class relative to the neutral mix is multiplied by the performance of the index that represents that asset class over the measurement period, resulting in a positive or negative impact score. The lead manager receives a monthly impact score for each month of his tenure as lead manager on the fund. The bonus is based on the aggregate impact scores for applicable annual periods eventually encompassing periods of up to five years. A subjective component of the lead manager's bonus is based on his overall contribution to management of FMR. The portion of the lead manager's bonus that is linked to the investment performance of Global Balanced is based on the pre-tax investment performance of the fund's assets measured against a composite index, the components of which are 60% MSCI World Index and 40% Citigroup World Government Bond Index. Mr. Young also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FMR Corp., FMR's parent company. FMR Corp. is a diverse financial services company engaged in various activities that include fund management, brokerage, retirement, and employer administrative services. If requested to relocate their primary residence, portfolio managers also may be eligible to receive benefits, such as home sale assistance and payment of certain moving expenses, under relocation plans for most full-time employees of FMR Corp. and its affiliates.</R>
<R>As of October 31, 2006, Mr. Feingold's base salary is determined by level of responsibility and tenure at FMR or its affiliates. The primary components of the portfolio manager's bonus are based on (i) the pre-tax investment performance of the portfolio manager's fund(s) and account(s) measured against a benchmark index and within a defined peer group assigned to each fund or account. The pre-tax investment performance of the portfolio manager's fund(s) and account(s) is weighted according to his tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over his tenure. Each component is calculated separately over the portfolio manager's tenure on those fund(s) and account(s) over a measurement period that initially is contemporaneous with the portfolio manager's tenure, but that eventually encompasses rolling periods of up to five years for the comparison to a benchmark index, and rolling periods of up to three years for the comparison to a peer group. A smaller, subjective component of the portfolio manager's bonus is based on the portfolio manager's overall contribution to management of FMR. The portion of the portfolio manager's bonus that is linked to the investment performance of Global Balanced is based on the pre-tax investment performance of the portion of the fund's assets he manages measured against the S&P 500 Index, and the pre-tax investment performance of the portion of the fund's assets he manages within the Morningstar Large Cap Blend Category. Mr. Feingold also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FMR Corp., FMR's parent company. FMR Corp. is a diverse financial services company engaged in various activities that include fund management, brokerage, retirement, and employer administrative services. If requested to relocate their primary residence, portfolio managers also may be eligible to receive benefits, such as home sale assistance and payment of certain moving expenses, under relocation plans for most full-time employees of FMR Corp. and its affiliates. </R>
<R>As of May 31, 2007, Ms. Reilly's base salary is determined by level of responsibility and tenure at FMR or its affiliates. The primary components of the portfolio manager's bonus are based on (i) the pre-tax investment performance of the portfolio manager's fund(s) and account(s) measured against a benchmark index and within a defined peer group assigned to each fund or account, and (ii) the investment performance of other FMR international equity funds and accounts. The pre-tax investment performance of the portfolio manager's fund(s) and account(s) is weighted according to the portfolio manager's tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over the portfolio manager's tenure. Each component is calculated separately over the portfolio manager's tenure on those fund(s) and account(s) over a measurement period that initially is contemporaneous with the portfolio manager's tenure, but that eventually encompasses rolling periods of up to five years for the comparison to a benchmark index, and rolling periods of up to three years for the comparison to a peer group. A smaller, subjective component of the portfolio manager's bonus is based on the portfolio manager's overall contribution to management of FMR. The portion of the portfolio manager's bonus that is linked to the investment performance of Global Balanced is based on the pre-tax investment performance of the portion of the fund's assets she manages measured against the MSCI Europe Index (net MA tax), and the pre-tax investment performance of the portion of the fund's assets she manages within the Morningstar Europe Stock Category. Ms. Reilly also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FMR Corp., FMR's parent company. FMR Corp. is a diverse financial services company engaged in various activities that include fund management, brokerage, retirement, and employer administrative services. If requested to relocate their primary residence, portfolio managers also may be eligible to receive benefits, such as home sale assistance and payment of certain moving expenses, under relocation plans for most full-time employees of FMR Corp. and its affiliates.</R>
<R>As of April 30, 2007, Mr. Tucker's base salary is determined by level of responsibility and tenure at FIL or its affiliates. The primary components of the portfolio manager's bonus are based on (i) the pre-tax investment performance of the portfolio manager's fund(s) and account(s) measured against a benchmark index and within a defined peer group assigned to each fund or account, if applicable, and (ii) the investment performance of a broad range of other equity funds and accounts managed by FIL affiliates. The pre-tax investment performance of the portfolio manager's fund(s) and account(s) is weighted according to his tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over his tenure. Each component is calculated separately over the portfolio manager's tenure on those fund(s) and account(s) over a measurement period that initially is contemporaneous with his tenure, but that eventually encompasses rolling periods of up to five years. A smaller, subjective component of the portfolio manager's bonus is based on the portfolio manager's overall contribution to management of FIL. The portion of the portfolio manager's bonus that is linked to the investment performance of Global Balanced is based on the pre-tax investment performance of the portion of the fund's assets he manages measured against the MSCI Japan Index. Mr. Tucker also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FIL. If requested to relocate their primary residence, portfolio managers also may be eligible to receive benefits, such as home sale assistance and payment of certain moving expenses, under relocation plans for most full-time employees of FIL and its affiliates.</R>
<R>As of February 28, 2007, Mr. Lo's base salary is determined by level of responsibility and tenure at FIL or its affiliates. The primary components of the portfolio manager's bonus are based on (i) the pre-tax investment performance of the portfolio manager's master accounts measured against a benchmark index and within a defined peer group assigned to each master account, if applicable, and (ii) the investment performance of a broad range of other equity funds and accounts managed by FIL affiliates. The pre-tax investment performance of the portfolio manager's master accounts is weighted according to his tenure on those master accounts and the average asset size of those master accounts over his tenure. Each component is calculated separately over the portfolio manager's tenure on those master accounts over a measurement period that initially is contemporaneous with his tenure, but that eventually encompasses rolling periods of up to five years. A smaller, subjective component of the portfolio manager's bonus is based on the portfolio manager's overall contribution to management of FIL. The portion of the portfolio manager's bonus that is linked to the investment performance of the master account for the investment discipline in which the portion of the assets of Global Balanced that he manages is invested is based on the pre-tax investment performance of the master account measured against the MSCI Pacific Basin ex Japan Index. Mr. Lo also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FIL. If requested to relocate their primary residence, portfolio managers also may be eligible to receive benefits, such as home sale assistance and payment of certain moving expenses, under relocation plans for most full-time employees of FIL and its affiliates.</R>
<R>As of October 31, 2006, Mr. Weir's base salary is determined by level of responsibility and tenure at FIL or its affiliates. The primary components of the portfolio manager's bonus are based on (i) the pre-tax investment performance of the portfolio manager's fund(s) and account(s) measured against a benchmark index assigned to each fund or account, if applicable, and (ii) the investment performance of other fixed income funds and accounts managed by FIL affiliates. The pre-tax investment performance of the portfolio manager's fund(s) and account(s) is weighted according to his tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over his tenure. Each component is calculated separately over the portfolio manager's tenure on those fund(s) and account(s) over a measurement period that initially is contemporaneous with his tenure, but that eventually encompasses rolling periods of up to three years. A smaller, subjective component of the portfolio manager's bonus is based on the co-manager's overall contribution to management of FIL. The portion of the portfolio manager's bonus that is linked to the investment performance of Global Balanced is based on the pre-tax investment performance of the portion of the fund's assets he manages measured against the Citigroup World Government Bond Index. Mr. Weir also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FIL. If requested to relocate their primary residence, portfolio managers also may be eligible to receive benefits, such as home sale assistance and payment of certain moving expenses, under relocation plans for most full-time employees of FIL and its affiliates.</R>
<R>As of December 31, 2006, Mr. Calderon's base salary is determined by level of responsibility and tenure at FMR or its affiliates. The primary components of the assistant manager's bonus are based on the pre-tax investment performance of the assistant manager's fund(s) and account(s) measured against a benchmark index assigned to each fund or account. The pre-tax investment performance of the assistant manager's fund(s) and account(s) is weighted according to his tenure on those fund(s) and account(s) and the average asset size of those fund(s) and account(s) over his tenure. Each component is calculated separately over the assistant manager's tenure on those fund(s) and account(s) over a measurement period, that initially is contemporaneous with his tenure, but that eventually encompasses rolling periods of up to five years. Another component of the assistant manager's bonus is based on how he allocates the fund's assets among the asset classes of the fund, which are represented by a composite index, the components of which are 60% MSCI World Index and 40% Citigroup World Government Bond Index. The assistant manager's bonus is based on the percentage of the fund actually invested in each asset class. The percentage overweight or percentage underweight in each asset class relative to the neutral mix is multiplied by the performance of the index that represents that asset class over the measurement period, resulting in a positive or negative impact score. The assistant manager receives a monthly impact score for each month of his tenure as assistant manager on the fund. The bonus is based on the aggregate impact scores for applicable annual periods eventually encompassing periods of up to five years. A subjective component of the assistant manager's bonus is based on the assistant manager's overall contribution to management of FMR. The portion of the assistant manager's bonus that is linked to the investment performance of Global Balanced is based on the pre-tax investment performance of the fund's assets measured against a composite index, the components of which are 60% MSCI World Index and 40% Citigroup World Government Bond Index. Mr. Calderon also is compensated under equity-based compensation plans linked to increases or decreases in the net asset value of the stock of FMR Corp., FMR's parent company. FMR Corp. is a diverse financial services company engaged in various activities that include fund management, brokerage, retirement, and employer administrative services. If requested to relocate their primary residence, portfolio managers also may be eligible to receive benefits, such as home sale assistance and payment of certain moving expenses, under relocation plans for most full-time employees of FMR Corp. and its affiliates.</R>
<R>A portfolio manager's compensation plan may give rise to potential conflicts of interest. Although investors in the fund may invest through either tax-deferred accounts or taxable accounts, the portfolio manager's compensation is linked to the pre-tax performance of the fund, rather than its after-tax performance. A portfolio manager's base pay tends to increase with additional and more complex responsibilities that include increased assets under management and a portion of the bonus relates to marketing efforts, which together indirectly link compensation to sales. When a portfolio manager takes over a fund or an account, the time period over which performance is measured may be adjusted to provide a transition period in which to assess the portfolio. The management of multiple funds and accounts (including proprietary accounts) may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees as a portfolio manager must allocate his time and investment ideas across multiple funds and accounts. In addition, a fund's trade allocation policies and procedures may give rise to conflicts of interest if the fund's orders do not get fully executed due to being aggregated with those of other accounts managed by FMR or an affiliate. A portfolio manager may execute transactions for another fund or account that may adversely impact the value of securities held by a fund. Securities selected for other funds or accounts may outperform the securities selected for the fund. Portfolio managers may be permitted to invest in the funds they manage, even if a fund is closed to new investors. Trading in personal accounts, which may give rise to potential conflicts of interest, is restricted by a fund's Code of Ethics.</R>
<R>The following table provides information relating to other accounts managed by Mr. Young as of October 31, 2006:</R>
|
<R>Registered |
<R>Other
Pooled |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>7</R> |
<R>1</R> |
<R>4</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed (in millions)</R> |
<R>$ 14,758</R> |
<R>none</R> |
<R>$ 1,356</R> |
<R>Assets Managed with Performance-Based Advisory Fees (in millions)</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Global Balanced ($260 (in millions) assets managed). The amount of assets managed of the fund reflects trades and other assets as of the close of the business day prior to the fund's fiscal year-end.</R>
<R>As of October 31, 2006, the dollar range of shares of Global Balanced beneficially owned by Mr. Young was none.</R>
<R>The following table provides information relating to other accounts managed by Mr. Feingold as of October 31, 2006:</R>
|
<R>Registered |
<R>Other
Pooled |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>1</R> |
<R>1</R> |
<R>none</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>1</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed (in millions)</R> |
<R>$ 1,329</R> |
<R>$ 74</R> |
<R>none</R> |
<R>Assets Managed with Performance-Based Advisory Fees (in millions)</R> |
<R>$ 1,329</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Global Balanced ($74 (in millions) assets managed). The amount of assets managed of the fund reflects trades and other assets as of the close of the business day prior to the fund's fiscal year-end.</R>
<R>As of October 31, 2006, the dollar range of shares Global Balanced beneficially owned by Mr. Feingold was $50,001 - $100,000.</R>
<R> The following table provides information relating to other accounts managed by Mr. Lo as of February 28, 2007:</R>
|
<R>Registered |
<R>Other
Pooled |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>none</R> |
<R>6</R> |
<R>45</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed (in millions)</R> |
<R>none</R> |
<R>$ 470</R> |
<R>$ 1,936</R> |
<R>Assets Managed with Performance-Based Advisory Fees (in millions)</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Global Balanced ($ 15 (in millions) assets managed).</R>
<R>As of February 28, 2007, the dollar range of shares of Global Balanced beneficially owned by Mr. Lo was none.</R>
<R>The following table provides information relating to other accounts managed by Mr. Weir as of October 31, 2006:</R>
|
<R>Registered |
<R>Other
Pooled |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>none</R> |
<R>8</R> |
<R>9</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed (in millions)</R> |
<R>none</R> |
<R>$ 1,453</R> |
<R>$ 1,701</R> |
<R>Assets Managed with Performance-Based Advisory Fees (in millions)</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Global Balanced ($98 (in millions) assets managed). The amount of assets managed of the fund reflects trades and other assets as of the close of the business day prior to the fund's fiscal year-end.</R>
<R>As of October 31, 2006, the dollar range of shares of Global Balanced beneficially owned by Mr. Weir was none.</R>
<R>The following table provides information relating to other accounts managed by Mr. Calderon as of December 31, 2006:</R>
|
<R>Registered |
<R>Other
Pooled |
<R>Other |
<R>Number of Accounts Managed</R> |
<R>1</R> |
<R>none</R> |
<R>1</R> |
<R>Number of Accounts Managed with Performance-Based Advisory Fees</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>Assets Managed (in millions)</R> |
<R>$ 275</R> |
<R>none</R> |
<R>$ 2</R> |
<R>Assets Managed with Performance-Based Advisory Fees (in millions)</R> |
<R>none</R> |
<R>none</R> |
<R>none</R> |
<R>* Includes Global Balanced ($275 (in millions) assets managed).</R>
<R>As of December 31, 2006, the dollar range of shares of Global Balanced beneficially owned by Mr. Calderon was none.</R>
<R>Leon Tucker was appointed co-manager of Global Balanced effective April 2007. Information with respect to his other accounts managed and beneficial holdings will be made available in a supplement to this SAI.</R>
<R>Melissa Reilly was appointed co-manager of Global Balanced effective May 2007. Information with respect to her other accounts managed and beneficial holdings will be made available in a supplement to this SAI.</R>
<R>PROXY VOTING GUIDELINES</R>
<R>The following Proxy Voting Guidelines were established by the Board of Trustees of the funds, after consultation with Fidelity. (The guidelines are reviewed periodically by Fidelity and by the Independent Trustees of the Fidelity funds, and, accordingly, are subject to change.)</R>
<R>I. General Principles</R>
<R> A. Voting of shares will be conducted in a manner consistent with the best interests of mutual fund shareholders as follows: (i) securities of a portfolio company will generally be voted in a manner consistent with the Proxy Voting Guidelines; and (ii) voting will be done without regard to any other Fidelity companies' relationship, business or otherwise, with that portfolio company.</R>
<R> B. The FMR Investment & Advisor Compliance Department votes proxies. In the event an Investment & Advisor Compliance employee has a personal conflict with a portfolio company or an employee or director of a portfolio company, that employee will withdraw from making any proxy voting decisions with respect to that portfolio company. A conflict of interest arises when there are factors that may prompt one to question whether a Fidelity employee is acting solely in the best interests of Fidelity and its customers. Employees are expected to avoid situations that could present even the appearance of a conflict between their interests and the interests of Fidelity and its customers.</R>
<R> C. Except as set forth herein, FMR will generally vote in favor of routine management proposals.</R>
<R> D. Non-routine proposals will generally be voted in accordance with the guidelines.</R>
<R> E. Non-routine proposals not covered by the guidelines or involving other special circumstances will be evaluated on a case-by-case basis with input from the appropriate FMR analyst or portfolio manager, as applicable, subject to review by an attorney within FMR's General Counsel's office and a member of senior management within FMR's Investment and Advisor Compliance Department. A significant pattern of such proposals or other special circumstances will be referred to the Fund Board Proxy Voting Committee or its designee.</R>
<R> F. FMR will vote on shareholder proposals not specifically addressed by the guidelines based on an evaluation of a proposal's likelihood to enhance the economic returns or profitability of the portfolio company or to maximize shareholder value. Where information is not readily available to analyze the economic impact of the proposal, FMR will generally abstain.</R>
<R> G. Many Fidelity Funds invest in voting securities issued by companies that are domiciled outside the United States and are not listed on a U.S. securities exchange. Corporate governance standards, legal or regulatory requirements and disclosure practices in foreign countries can differ from those in the United States. When voting proxies relating to non-U.S. securities, FMR will generally evaluate proposals in the context of these guidelines, but FMR may, where applicable and feasible, take into consideration differing laws and regulations in the relevant foreign market in determining how to vote shares.</R>
<R> H. In certain non-U.S. jurisdictions, shareholders voting shares of a portfolio company may be restricted from trading the shares for a period of time around the shareholder meeting date. Because such trading restrictions can hinder portfolio management and could result in a loss of liquidity for a fund, FMR will generally not vote proxies in circumstances where such restrictions apply. In addition, certain non-U.S. jurisdictions require voting shareholders to disclose current share ownership on a fund-by-fund basis. When such disclosure requirements apply, FMR will generally not vote proxies in order to safeguard fund holdings information.</R>
<R> I. Where a management-sponsored proposal is inconsistent with the guidelines, FMR may receive a company's commitment to modify the proposal or its practice to conform to the guidelines, and FMR will generally support management based on this commitment. If a company subsequently does not abide by its commitment, FMR will generally withhold authority for the election of directors at the next election.</R>
<R>II. Definitions (as used in this document)</R>
<R> A. Anti-Takeover Provision - includes fair price amendments; classified boards; "blank check" preferred stock; golden and tin parachutes; supermajority provisions; Poison Pills; and any other provision that eliminates or limits shareholder rights.</R>
<R> B. Golden parachute - accelerated options and/or employment contracts for officers and directors that will result in a lump sum payment of more than three times annual compensation (salary and bonus) in the event of termination following a change in control.</R>
<R> C. Tin parachute - accelerated options and/or employment contracts for employees beyond officers and directors that will result in a lump sum payment in the event of termination.</R>
<R> D. Greenmail - payment of a premium to repurchase shares from a shareholder seeking to take over a company through a proxy contest or other means.</R>
<R> E. Sunset provision - a condition in a charter or plan that specifies an expiration date.</R>
<R> F. Permitted Bid Feature - a provision suspending the application of a Poison Pill, by shareholder referendum, in the event a potential acquirer announces a bona fide offer for all outstanding shares.</R>
<R> G. Poison Pill - a strategy employed by a potential take-over/target company to make its stock less attractive to an acquirer. Poison Pills are generally designed to dilute the acquirer's ownership and value in the event of a take-over.</R>
<R> H. Large Capitalization Company - a company included in the Russell 1000® stock index.</R>
<R> I. Small Capitalization Company - a company not included in the Russell 1000 stock index that is not a Micro-Capitalization Company.</R>
<R> J. Micro-Capitalization Company - a company with a market capitalization under US $300 million.</R>
<R>III. Directors</R>
<R> A. Incumbent Directors</R>
<R> FMR will generally vote in favor of incumbent and nominee directors except where one or more such directors clearly appear to have failed to exercise reasonable judgment.</R>
<R> FMR will also generally withhold authority for the election of all directors or directors on responsible committees if:</R>
<R> 1. An Anti-Takeover Provision was introduced, an Anti-Takeover Provision was extended, or a new Anti-Takeover Provision was adopted upon the expiration of an existing Anti-Takeover Provision, without shareholder approval except as set forth below.</R>
<R> With respect to Poison Pills, however, FMR will consider not withholding authority on the election of directors if all of the following conditions are met when a Poison Pill is introduced, extended, or adopted:</R>
<R> a. The Poison Pill includes a Sunset Provision of less than 5 years;</R>
<R> b. The Poison Pill includes a Permitted Bid Feature;</R>
<R> c. The Poison Pill is linked to a business strategy that will result in greater value for the shareholders; and</R>
<R> d. Shareholder approval is required to reinstate the Poison Pill upon expiration.</R>
<R> FMR will also consider not withholding authority on the election of directors when one or more of the conditions above are not met if a board is willing to strongly consider seeking shareholder ratification of, or adding above conditions noted a. and b. to an existing Poison Pill. In such a case, if the company does not take appropriate action prior to the next annual shareholder meeting, FMR will withhold authority on the election of directors.</R>
<R> 2. The company refuses, upon request by FMR, to amend the Poison Pill to allow Fidelity to hold an aggregate position of up to 20% of a company's total voting securities and of any class of voting securities.</R>
<R> 3. Within the last year and without shareholder approval, a company's board of directors or compensation committee has repriced outstanding options.</R>
<R> 4. The company failed to act in the best interests of shareholders when approving executive compensation, taking into account such factors as: (i) whether the company used an independent compensation committee; and (ii) whether the compensation committee engaged independent compensation consultants; and (iii) whether it has been proven that the company engaged in options backdating.</R>
<R> 5. To gain FMR's support on a proposal, the company made a commitment to modify a proposal or practice to conform to these guidelines and the company has failed to act on that commitment.</R>
<R> 6. The director attended fewer than 75% of the aggregate number of meetings of the board or its committees on which the director served during the company's prior fiscal year, absent extenuating circumstances.</R>
<R> B. Indemnification</R>
<R> FMR will generally vote in favor of charter and by-law amendments expanding the indemnification of directors and/or limiting their liability for breaches of care unless FMR is otherwise dissatisfied with the performance of management or the proposal is accompanied by Anti-Takeover Provisions.</R>
<R> C. Independent Chairperson</R>
<R> FMR will generally vote against shareholder proposals calling for or recommending the appointment of a non-executive or independent chairperson. However, FMR will consider voting for such proposals in limited cases if, based upon particular facts and circumstances, appointment of a non-executive or independent chairperson appears likely to further the interests of shareholders and to promote effective oversight of management by the board of directors.</R>
<R> D. Majority Director Elections</R>
<R> FMR will generally vote in favor of proposals calling for directors to be elected by an affirmative majority of votes cast in a board election, provided that the proposal allows for plurality voting standard in the case of contested elections (i.e., where there are more nominees than board seats). FMR may consider voting against such shareholder proposals where a company's board has adopted an alternative measure, such as a director resignation policy, that provides a meaningful alternative to the majority voting standard and appropriately addresses situations where an incumbent director fails to receive the support of a majority of the votes cast in an uncontested election.</R>
<R>IV. Compensation</R>
<R> A. Equity Award Plans (including stock options, restricted stock awards, and other stock awards).</R>
<R> FMR will generally vote against Equity Award Plans or amendments to authorize additional shares under such plans if:</R>
<R> 1. (a) The dilution effect of the shares outstanding and available for issuance pursuant to all plans, plus any new share requests is greater than 10% for a Large Capitalization Company, 15% for a Small Capitalization Company or 20% for a Micro-Capitalization Company; and (b) there were no circumstances specific to the company or the plans that lead FMR to conclude that the level of dilution in the plan or the amendments is acceptable.</R>
<R> 2. In the case of stock option plans, (a) the offering price of options is less than 100% of fair market value on the date of grant, except that the offering price may be as low as 85% of fair market value if the discount is expressly granted in lieu of salary or cash bonus; (b) the plan's terms allow repricing of underwater options; or (c) the board/committee has repriced options outstanding under the plan in the past two years.</R>
<R> 3. The plan may be materially altered without shareholder approval, including increasing the benefits accrued to participants under the plan; increasing the number of securities which may be issued under the plan; modifying the requirements for participation in the plan; or including a provision allowing the Board to lapse or waive restrictions at its discretion.</R>
<R> 4. Awards to non-employee directors are subject to management discretion.</R>
<R> 5. In the case of stock awards, the restriction period, or holding period after exercise, is less than 3 years for non-performance-based awards, and less than 1 year for performance-based awards.</R>
<R> FMR will consider approving an Equity Award Plan or an amendment to authorize additional shares under such plan if, without complying with the guidelines immediately above, the following two conditions are met:</R>
<R> 1. The shares are granted by a compensation committee composed entirely of independent directors; and</R>
<R> 2. The shares are limited to 5% (large capitalization company) and 10% (small capitalization company) of the shares authorized for grant under the plan.</R>
<R> B. Equity Exchanges and Repricing</R>
<R> FMR will generally vote in favor of a management proposal to exchange shares or reprice outstanding options if the proposed exchange or repricing is consistent with the interests of shareholders, taking into account such factors as:</R>
<R> 1. Whether the proposal excludes senior management and directors;</R>
<R> 2. Whether the equity proposed to be exchanged or repriced exceeded FMR's dilution thresholds when initially granted;</R>
<R> 3. Whether the exchange or repricing proposal is value neutral to shareholders based upon an acceptable pricing model;</R>
<R> 4. The company's relative performance compared to other companies within the relevant industry or industries;</R>
<R> 5. Economic and other conditions affecting the relevant industry or industries in which the company competes; and</R>
<R> 6. Any other facts or circumstances relevant to determining whether an exchange or repricing proposal is consistent with the interests of shareholders.</R>
<R> C. Employee Stock Purchase Plans</R>
<R> FMR will generally vote against employee stock purchase plans if the plan violates any of the criteria in section IV(A) above, except that the minimum stock purchase price may be equal to or greater than 85% of the stock's fair market value if the plan constitutes a reasonable effort to encourage broad based participation in the company's equity. In the case of non-U.S. company stock purchase plans, FMR may permit a lower minimum stock purchase price equal to the prevailing "best practices" in the relevant non-U.S. market, provided that the minimum stock purchase price must be at least 75% of the stock's fair market value.</R>
<R> D. Employee Stock Ownership Plans (ESOPs)</R>
<R> FMR will generally vote in favor of non-leveraged ESOPs. For leveraged ESOPs, FMR may examine the company's state of incorporation, existence of supermajority vote rules in the charter, number of shares authorized for the ESOP, and number of shares held by insiders. FMR may also examine where the ESOP shares are purchased and the dilution effect of the purchase. FMR will generally vote against leveraged ESOPs if all outstanding loans are due immediately upon change in control.</R>
<R> E. Executive Compensation</R>
<R> FMR will generally vote against management proposals on stock-based compensation plans or other compensation plans if such proposals are inconsistent with the interests of shareholders, taking into account such factors as: (i) whether the company has an independent compensation committee; and (ii) whether the compensation committee has authority to engage independent compensation consultants.</R>
<R> F. Bonus Plans and Tax Deductibility Proposals</R>
<R>FMR will generally vote in favor of cash and stock incentive plans that are submitted for shareholder approval in order to qualify for favorable tax treatment under Section 162(m) of the Internal Revenue Code, provided that the plan includes well defined and appropriate performance criteria, and with respect to any cash component, that the maximum award per participant is clearly stated and is not unreasonable or excessive.</R>
<R>V. Anti-Takeover Provisions</R>
<R> FMR will generally vote against a proposal to adopt or approve the adoption of an Anti-Takeover Provision unless:</R>
<R> A. The Poison Pill includes the following features:</R>
<R> 1. A sunset provision of no greater than 5 years;</R>
<R> 2. Linked to a business strategy that is expected to result in greater value for the shareholders;</R>
<R> 3. Requires shareholder approval to be reinstated upon expiration or if amended;</R>
<R> 4. Contains a Permitted Bid Feature; and</R>
<R> 5. Allows the Fidelity funds to hold an aggregate position of up to 20% of a company's total voting securities and of any class of voting securities.</R>
<R> B. An Anti-Greenmail proposal that does not include other Anti-Takeover Provisions; or</R>
<R> C. It is a fair price amendment that considers a two-year price history or less.</R>
<R> FMR will generally vote in favor of proposals to eliminate Anti-Takeover Provisions. In the case of proposals to declassify a board of directors, FMR will generally vote against such a proposal if the issuer's Articles of Incorporation or applicable statutes include a provision whereby a majority of directors may be removed at any time, with or without cause, by written consent, or other reasonable procedures, by a majority of shareholders entitled to vote for the election of directors.</R>
<R>VI. Capital Structure/Incorporation</R>
<R> A. Increases in Common Stock</R>
<R> FMR will generally vote against a provision to increase a Company's common stock if such increase will result in a total number of authorized shares greater than 3 times the current number of outstanding and scheduled to be issued shares, including stock options, except in the case of real estate investment trusts, where an increase that will result in a total number of authorized shares up to 5 times the current number of outstanding and scheduled to be issued shares is generally acceptable.</R>
<R> B. New Classes of Shares</R>
<R> FMR will generally vote against the introduction of new classes of stock with differential voting rights.</R>
<R> C. Cumulative Voting Rights</R>
<R> FMR will generally vote against the introduction and in favor of the elimination of cumulative voting rights.</R>
<R> D. Acquisition or Business Combination Statutes</R>
<R> FMR will generally vote in favor of proposed amendments to a company's certificate of incorporation or by-laws that enable the company to opt out of the control shares acquisition or business combination statutes.</R>
<R> E. Incorporation or Reincorporation in Another State or Country</R>
<R> FMR will generally vote against shareholder proposals calling for or recommending that a portfolio company reincorporate in the United States and vote in favor of management proposals to reincorporate in a jurisdiction outside the United States if (i) it is lawful under United States, state and other applicable law for the company to be incorporated under the laws of the relevant foreign jurisdiction and to conduct its business and (ii) reincorporating or maintaining a domicile in the United States would likely give rise to adverse tax or other economic consequences detrimental to the interests of the company and its shareholders. However, FMR will consider supporting such shareholder proposals and opposing such management proposals in limited cases if, based upon particular facts and circumstances, reincorporating in or maintaining a domicile in the relevant foreign jurisdiction gives rise to significant risks or other potential adverse consequences that appear reasonably likely to be detrimental to the interests of the company or its shareholders.</R>
<R>VII. Auditors</R>
<R> A. FMR will generally vote against shareholder proposals calling for or recommending periodic rotation of a portfolio company's auditor. FMR will consider voting for such proposals in limited cases if, based upon particular facts and circumstances, a company's board of directors and audit committee clearly appear to have failed to exercise reasonable business judgment in the selection of the company's auditor.</R>
<R> B. FMR will generally vote against shareholder proposals calling for or recommending the prohibition or limitation of the performance of non-audit services by a portfolio company's auditor. FMR will also generally vote against shareholder proposals calling for or recommending removal of a company's auditor due to, among other reasons, the performance of non-audit work by the auditor. FMR will consider voting for such proposals in limited cases if, based upon particular facts and circumstances, a company's board of directors and audit committee clearly appear to have failed to exercise reasonable business judgment in the oversight of the performance of the auditor for audit or non-audit services for the company.</R>
<R>VIII. Shares of Investment Companies</R>
<R> A. When a Fidelity Fund invests in an underlying Fidelity fund, FMR will vote in the same proportion as all other shareholders of such underlying fund or class ("echo voting").</R>
<R> B. Certain Fidelity Funds may invest in shares of Fidelity Central Funds. Central Fund shares, which are held exclusively by Fidelity funds or accounts managed by an FMR affiliate, will be voted in favor of proposals recommended by the Central Funds' Board of Trustees.</R>
<R>IX. Other</R>
<R> A. Voting Process</R>
<R> FMR will generally vote in favor of proposals to adopt confidential voting and independent vote tabulation practices.</R>
<R> B. Regulated Industries</R>
<R> Voting of shares in securities of any regulated industry (e.g. U.S. banking) organization shall be conducted in a manner consistent with conditions that may be specified by the industry's regulator (e.g. the Federal Reserve Board) for a determination under applicable law (e.g. federal banking law) that no Fund or group of Funds has acquired control of such organization.</R>
<R>To view a fund's proxy voting record for the most recent 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the SEC's web site at www.sec.gov.</R>
The fund has entered into a distribution agreement with FDC, an affiliate of FMR. The principal business address of FDC is 82 Devonshire Street, Boston, Massachusetts 02109. FDC is a broker-dealer registered under the Securities Exchange Act of 1934 and a member of the National Association of Securities Dealers, Inc. The distribution agreements call for FDC to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the fund, which are continuously offered at NAV. Promotional and administrative expenses in connection with the offer and sale of shares are paid by FMR.
<R>The Trustees have approved a Distribution and Service Plan with respect to shares of the fund (the Plan) pursuant to Rule 12b-1 under the 1940 Act (the Rule). The Plan, as approved by the Trustees, allow the fund and FMR to incur certain expenses that might be considered to constitute indirect payment by the fund of distribution expenses.</R>
<R>Under the Plan, if the payment of management fees by the fund to FMR is deemed to be indirect financing by the fund of the distribution of its shares, such payment is authorized by the Plan. The Plan specifically recognizes that FMR may use its management fee revenue, as well as its past profits or its other resources, to pay FDC for expenses incurred in connection with providing services intended to result in the sale of fund shares and/or shareholder support services. In addition, the Plan provides that FMR, directly or through FDC, may pay significant amounts to intermediaries, including retirement plan sponsors, service-providers and administrators, that provide those services. Currently, the Board of Trustees has authorized such payments for shares of the fund.</R>
Prior to approving the Plan, the Trustees carefully considered all pertinent factors relating to the implementation of the Plan, and determined that there is a reasonable likelihood that the Plan will benefit the fund and its shareholders. In particular, the Trustees noted that the Plan does not authorize payments by the fund other than those made to FMR under its management contract with the fund. To the extent that the Plan gives FMR and FDC greater flexibility in connection with the distribution of fund shares, additional sales of fund shares or stabilization of cash flows may result. Furthermore, certain shareholder support services may be provided more effectively under the Plan by local entities with whom shareholders have other relationships.
FDC or an affiliate may compensate, or upon direction make payments for certain retirement plan expenses to, intermediaries, including retirement plan sponsors, service-providers and administrators. A number of factors are considered in determining whether to pay these additional amounts. Such factors may include, without limitation, the level or type of services provided by the intermediary, the level or expected level of assets or sales of shares, and other factors. In addition to such payments, FDC or an affiliate may offer other incentives such as sponsorship of educational or client seminars relating to current products and issues, payments or reimbursements for travel and related expenses associated with due diligence trips that an intermediary may undertake in order to explore possible business relationships with affiliates of FDC, and/or payments of costs and expenses associated with attendance at seminars, including travel, lodging, entertainment and meals. Certain of the payments described above may be significant to an intermediary. As permitted by SEC and National Association of Securities Dealers rules, FDC or any affiliate may pay or allow other incentives or payments to intermediaries.
The fund's transfer agent or an affiliate may also make payments and reimbursements to certain intermediaries, including retirement plan sponsors, service-providers and administrators, for providing recordkeeping and administrative services to plan participants or for providing other services to retirement plans. Please see "Transfer and Service Agent Agreements" in this SAI for more information.
FDC or an affiliate may also make payments to banks, broker-dealers and other service providers for distribution-related activities and/or shareholder services. If you have purchased shares of the fund through an investment professional, please speak with your investment professional to learn more about any payments his or her firm may receive from FMR, FDC and/or their affiliates, as well as fees and/or commissions the investment professional charges. You should also consult disclosures made by your investment professional at the time of purchase.
Any of the payments described in this section may represent a premium over payments made by other fund families. Investment professionals may have an added incentive to recommend the fund over others offered by competing fund families, or retirement plan sponsors may take these payments into account when deciding whether to include the fund as a plan investment option.
TRANSFER AND SERVICE AGENT AGREEMENTS
The fund has entered into a transfer agent agreement with FSC, an affiliate of FMR, which is located at 82 Devonshire Street, Boston, Massachusetts 02109. Under the terms of the agreement, FSC (or an agent, including an affiliate) performs transfer agency, dividend disbursing, and shareholder services for the fund.
For providing transfer agency services, FSC receives a position fee and an asset-based fee each paid monthly with respect to each position in the fund. For retail accounts, these fees are based on fund type. For certain institutional accounts, these fees are based on size of position and fund type. For institutional retirement accounts, these fees are based on account type and fund type. The position fees are subject to increase based on postage rate changes.
The asset-based fees are subject to adjustment if the year-to-date total return of the S&P 500 exceeds a positive or negative 15%.
FSC also collects fees charged in connection with providing certain types of services such as exchanges, closing out fund balances, maintaining fund positions with low balances, checkwriting, wire transactions, and providing historical account research.
In addition, FSC receives the pro rata portion of the transfer agency fees applicable to shareholder accounts in a qualified tuition program (QTP), as defined under the Small Business Job Protection Act of 1996, managed by FMR or an affiliate and in each Fidelity Freedom Fund and Fidelity Four-in-One Index Fund, funds of funds managed by an FMR affiliate, according to the percentage of the QTP's, Freedom Fund's, or Fidelity Four-in-One Index Fund's assets that is invested in the fund, subject to certain limitations in the case of Fidelity Four-in-One Index Fund.
FSC pays out-of-pocket expenses associated with providing transfer agent services. In addition, FSC bears the expense of typesetting, printing, and mailing prospectuses, statements of additional information, and all other reports, notices, and statements to existing shareholders, with the exception of proxy statements.
Many fund shares are owned by certain intermediaries for the benefit of their customers. Since the fund often does not maintain an account for shareholders in those instances, some or all of the recordkeeping services for these accounts may be performed by third parties. FSC or an affiliate may make payments to intermediaries for recordkeeping and other services.
Retirement plans may also hold fund shares in the name of the plan or its trustee, rather than the plan participant. In situations where FSC or an affiliate does not provide recordkeeping services to a retirement plan, plan recordkeepers, who may have affiliated financial intermediaries who sell shares of the fund, may, upon direction, be paid for providing recordkeeping services to plan participants. Payments may also be made, upon direction, for other plan expenses.
In certain situations where FSC or an affiliate provides recordkeeping services to a retirement plan, payments may be made to pay for plan expenses. The amount of such payments may be based on investments in particular Fidelity funds, or may be fixed for a given period of time. Upon direction, payments may be made to plan sponsors, or at the direction of plan sponsors, third parties, for expenses incurred in connection with the plans.
The fund has also entered into a service agent agreement with FSC. The fund has also entered into a securities lending administration agreement with FSC. Under the terms of the agreements, FSC calculates the NAV and dividends for the fund, maintains the fund's portfolio and general accounting records, and administers the fund's securities lending program.
For providing pricing and bookkeeping services, FSC receives a monthly fee based on the fund's average daily net assets throughout the month.
The annual rates for pricing and bookkeeping services for the fund are 0.0500% of the first $500 million of average net assets, 0.0400% of average net assets between $500 million and $3.5 billion, 0.0040% of average net assets between $3.5 billion and $25 billion, and 0.0018% of average net assets in excess of $25 billion.
<R>For the fiscal years ended October 31, 2006, 2005, and 2004, the fund paid FSC pricing and bookkeeping fees of $113,352, $88,221, and $67,561, respectively.</R>
For administering the fund's securities lending program, FSC is paid based on the number and duration of individual securities loans.
<R>For the fiscal years ended October 31, 2006, 2005, and 2004, the fund paid FSC $265, $72, and $62, respectively, for securities lending.</R>
Trust Organization. Fidelity Global Balanced Fund is a fund of Fidelity Charles Street Trust, an open-end management investment company created under an initial declaration of trust dated July 7, 1981. Currently, there are six funds offered in the trust: Fidelity Advisor Asset Manager 70%, Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, Fidelity Asset Manager 85%, and Fidelity Global Balanced Fund. The Trustees are permitted to create additional funds in the trust and to create additional classes of the funds.
The assets of the trust received for the issue or sale of shares of each fund and all income, earnings, profits, and proceeds thereof, subject to the rights of creditors, are allocated to such fund, and constitute the underlying assets of such fund. The underlying assets of each fund in the trust shall be charged with the liabilities and expenses attributable to such fund. Any general expenses of the trust shall be allocated between or among any one or more of its funds.
Shareholder Liability. The trust is an entity commonly known as a "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for the obligations of the trust.
The Declaration of Trust contains an express disclaimer of shareholder liability for the debts, liabilities, obligations, and expenses of the trust or fund. The Declaration of Trust provides that the trust shall not have any claim against shareholders except for the payment of the purchase price of shares and requires that each agreement, obligation, or instrument entered into or executed by the trust or the Trustees relating to the trust or to a fund shall include a provision limiting the obligations created thereby to the trust or to one or more funds and its or their assets. The Declaration of Trust further provides that shareholders of a fund shall not have a claim on or right to any assets belonging to any other fund.
The Declaration of Trust provides for indemnification out of each fund's property of any shareholder or former shareholder held personally liable for the obligations of the fund solely by reason of his or her being or having been a shareholder and not because of his or her acts or omissions or for some other reason. The Declaration of Trust also provides that each fund shall, upon request, assume the defense of any claim made against any shareholder for any act or obligation of the fund and satisfy any judgment thereon. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which a fund itself would be unable to meet its obligations. FMR believes that, in view of the above, the risk of personal liability to shareholders is remote.
Voting Rights. The fund's capital consists of shares of beneficial interest. As a shareholder, you are entitled to one vote for each dollar of net asset value you own. The voting rights of shareholders can be changed only by a shareholder vote. Shares may be voted in the aggregate, by fund, and by class.
The shares have no preemptive or conversion rights. Shares are fully paid and nonassessable, except as set forth under the heading "Shareholder Liability" above.
The trust or a fund or a class may be terminated upon the sale of its assets to, or merger with, another open-end management investment company, series, or class thereof, or upon liquidation and distribution of its assets. The Trustees may reorganize, terminate, merge, or sell all or a portion of the assets of the trust or a fund or a class without prior shareholder approval. In the event of the dissolution or liquidation of the trust, shareholders of each of its funds are entitled to receive the underlying assets of such fund available for distribution. In the event of the dissolution or liquidation of a fund or a class, shareholders of that fund or that class are entitled to receive the underlying assets of the fund or class available for distribution.
<R>Custodians. Brown Brothers Harriman & Co., 40 Water Street, Boston, Massachusetts, is custodian of the assets of the fund. The custodian is responsible for the safekeeping of a fund's assets and the appointment of any subcustodian banks and clearing agencies. The Bank of New York and JPMorgan Chase Bank, each headquartered in New York, also may serve as a special purpose custodian of certain assets in connection with repurchase agreement transactions.</R>
FMR, its officers and directors, its affiliated companies, Members of the Advisory Board, and Members of the Board of Trustees may, from time to time, conduct transactions with various banks, including banks serving as custodians for certain funds advised by FMR. The Boston branch of the fund's custodian leases its office space from an affiliate of FMR at a lease payment which, when entered into, was consistent with prevailing market rates. Transactions that have occurred to date include mortgages and personal and general business loans. In the judgment of FMR, the terms and conditions of those transactions were not influenced by existing or potential custodial or other fund relationships.
<R>Independent Registered Public Accounting Firm. PricewaterhouseCoopers LLP, 125 High Street, Boston, Massachusetts, independent registered public accounting firm, examines financial statements for the fund and provides other audit, tax, and related services.</R>
The fund's financial statements and financial highlights for the fiscal year ended October 31, 2006, and report of the independent registered public accounting firm, are included in the fund's annual report and are incorporated herein by reference.
The fund views holdings information as sensitive and limits its dissemination. The Board authorized FMR to establish and administer guidelines for the dissemination of fund holdings information, which may be amended at any time without prior notice. FMR's Disclosure Policy Committee (comprising executive officers of FMR) evaluates disclosure policy with the goal of serving the fund's best interests by striking an appropriate balance between providing information about the fund's portfolio and protecting the fund from potentially harmful disclosure. The Board reviews the administration and modification of these guidelines and receives reports from the fund's chief compliance officer periodically.
<R>The fund will provide a full list of holdings monthly on www.fidelity.com 30 days after the month-end (excluding high income security holdings, which generally will be presented as an aggregate position monthly and included in a list of full holdings 60 days after its fiscal quarter end).</R>
<R>The fund will provide its top ten holdings (excluding cash and futures) as of the end of the calendar quarter on Fidelity's web site 15 or more days after the calendar quarter-end.</R>
This information will be available on the web site until updated for the next applicable period.
The fund may also from time to time provide specific fund level performance attribution information and statistics to the Board or third parties, such as fund shareholders or prospective fund shareholders, members of the press, consultants, and ratings and ranking organizations.
The Use of Holdings In Connection With Fund Operations. Material non-public holdings information may be provided as part of the investment activities of the fund to: entities which, by explicit agreement or by virtue of their respective duties to the fund, are required to maintain the confidentiality of the information disclosed; other parties if legally required; or persons FMR believes will not misuse the disclosed information. These entities, parties, and persons include: the fund's trustees; the fund's manager, its sub-advisers and their affiliates whose access persons are subject to a code of ethics; contractors who are subject to a confidentiality agreement; the fund's auditors; the fund's custodians; proxy voting service providers; financial printers; pricing service vendors; broker-dealers in connection with the purchase or sale of securities or requests for price quotations or bids on one or more securities; securities lending agents; counsel to the fund or its Independent Trustees; regulatory authorities; stock exchanges and other listing organizations; parties to litigation; an issuer, regarding the number of shares of the issuer (or percentage of outstanding shares) held by the fund; and third-parties in connection with a bankruptcy proceeding relating to the fund holding. Non-public holdings information may also be provided to issuers regarding the number or percentage of its shares that are owned by the fund and in connection with redemptions in kind.
Other Uses Of Holdings Information. In addition, the fund may provide material non-public holdings information to (i) third-parties that calculate information derived from holdings for use by FMR or its affiliates, (ii) third parties that supply their analyses of holdings (but not the holdings themselves) to their clients (including sponsors of retirement plans or their consultants), (iii) ratings and rankings organizations, and (iv) an investment adviser, trustee, or their agents to whom holdings are disclosed for due diligence purposes or in anticipation of a merger involving the fund. Each individual request is reviewed by the Disclosure Policy Committee which must find, in its sole discretion that, based on the specific facts and circumstances, the disclosure appears unlikely to be harmful to the fund. Entities receiving this information must have in place control mechanisms to reasonably ensure or otherwise agree that, (a) the holdings information will be kept confidential, (b) no employee shall use the information to effect trading or for their personal benefit, and (c) the nature and type of information that they, in turn, may disclose to third-parties is limited. FMR relies primarily on the existence of non-disclosure agreements and/or control mechanisms when determining that disclosure is not likely to be harmful to the fund.
At this time, the entities receiving information described in the preceding paragraph are: Factset Research Systems Inc. (full holdings daily, on the next business day); Kynex Inc. (full holdings weekly, one business day after the end of the week); Thomson Vestek (full holdings, as of the end of the calendar quarter, 15 calendar days after the calendar quarter-end); Standard & Poor's Rating Services (full holdings weekly, four or more calendar days after the end of the week); Moody's Investors Service (full holdings weekly, four or more calendar days after the end of the week); and Anacomp Inc. (full or partial holdings daily, on the next business day).
FMR, its affiliates, or the fund will not enter into any arrangements with third-parties from which they derive consideration for the disclosure of material non-public holdings information. If, in the future, FMR desired to make such an arrangement, it would seek prior Board approval and any such arrangements would be disclosed in the fund's SAI.
There can be no assurance that the fund's policies and procedures with respect to disclosure of fund portfolio holdings will prevent the misuse of such information by individuals and firms that receive such information.
Fidelity and Fidelity Investments & (Pyramid) Design are registered trademarks of FMR Corp.
The third party marks appearing above are the marks of their respective owners.
Fidelity Charles Street Trust
Post-Effective Amendment No. 83
PART C. OTHER INFORMATION
Item 23. Exhibits
(a) (1) Amended and Restated Declaration of Trust, dated September 19, 2001, is incorporated herein by reference to Exhibit (a)(1) of Post-Effective Amendment No. 72.
(2) Amendment to the Declaration of Trust, dated September 15, 2004, is incorporated herein by reference to Exhibit (a)(2) of Post-Effective Amendment No. 75.
(b) Bylaws of the Trust, as amended and dated June 17, 2004, are incorporated herein by reference to Exhibit (b) of Fidelity Summer Street Trust's (File No. 002-58542) Post-Effective Amendment No. 63.
(c) Not applicable.
(d) (1) Management Contract between Fidelity Asset Manager (currently known as Fidelity Asset Manager 50%) and Fidelity Management & Research Company, dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(1) of Post-Effective Amendment No. 71.
(2) Management Contract between Fidelity Asset Manager: Aggressive (currently known as Fidelity Asset Manager 85%) and Fidelity Management & Research Company, dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(2) of Post-Effective Amendment No. 71.
(3) Management Contract between Fidelity Asset Manager: Growth (currently known as Fidelity Asset Manager 70%) and Fidelity Management & Research Company, dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(3) of Post-Effective Amendment No. 71.
(4) Management Contract between Fidelity Asset Manager: Income (currently known as Fidelity Asset Manager 20%) and Fidelity Management & Research Company, dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(4) of Post-Effective Amendment No. 72.
(5) Form of Management Contract between Fidelity Advisor Asset Manager 70% and Fidelity Management & Research Company is filed herein as Exhibit (d)(5).
(6) Form of Management Contract between Fidelity Global Balanced Fund and Fidelity Management & Research Company is filed herein as Exhibit (d)(6).
(7) Form of Management Contract between Fidelity Broad Market Opportunities Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit (d)(7) of Post-Effective Amendment No. 82.
(8) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Money Management, (FIMM) Inc., on behalf of Fidelity Asset Manager (currently known as Fidelity Asset Manager 50%), dated January 1, 1999, is incorporated herein by reference to Exhibit (d)(8) of Post-Effective Amendment No. 73.
(9) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. (currently known as Fidelity Research & Analysis Company (FRAC)), on behalf of Fidelity Asset Manager (currently known as Fidelity Asset Manager 50%), dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(7) of Post-Effective Amendment No. 70.
(10) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc., on behalf of Fidelity Asset Manager (currently known as Fidelity Asset Manager 50%), dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(6) of Post-Effective Amendment No. 70.
(11) Sub-Advisory Agreement between Fidelity Management and Research Company and FMR Co., Inc., on behalf of Fidelity Asset Manager (currently known as Fidelity Asset Manager 50%), dated January 1, 2001, is incorporated herein by reference to Exhibit (d)(23) of Post-Effective Amendment No. 72.
(12) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Money Management, (FIMM) Inc., on behalf of Fidelity Asset Manager: Aggressive (currently known as Fidelity Asset Manager 85%), dated September 16, 1999, is incorporated herein by reference to Exhibit (d)(20) of Post-Effective Amendment No. 70.
(13) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. (currently known as Fidelity Research & Analysis Company (FRAC)), on behalf of Fidelity Asset Manager: Aggressive (currently known as Fidelity Asset Manager 85%), dated September 16, 1999, is incorporated herein by reference to Exhibit (d)(19) of Post-Effective Amendment No. 70.
(14) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc., on behalf of Fidelity Asset Manager: Aggressive (currently known as Fidelity Asset Manager 85%), dated September 16, 1999, is incorporated herein by reference to Exhibit (d)(18) of Post-Effective Amendment No. 70.
(15) Sub-Advisory Agreement between Fidelity Management and Research Company and FMR Co., Inc., on behalf of Fidelity Asset Manager: Aggressive (currently known as Fidelity Asset Manager 85%), dated January 1, 2001, is incorporated herein by reference to Exhibit (d)(24) of Post-Effective Amendment No. 72.
(16) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Money Management, (FIMM) Inc., on behalf of Fidelity Asset Manager: Growth (currently known as Fidelity Asset Manager 70%), dated January 1, 1999, is incorporated herein by reference to Exhibit (d)(14) of Post-Effective Amendment No. 73.
(17) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. (currently known as Fidelity Research & Analysis Company (FRAC)), on behalf of Fidelity Asset Manager: Growth (currently known as Fidelity Asset Manager 70%), dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(10) of Post-Effective Amendment No. 70.
(18) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc., on behalf of Fidelity Asset Manager: Growth (currently known as Fidelity Asset Manager 70%), dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(9) of Post-Effective Amendment No. 70.
(19) Sub-Advisory Agreement between Fidelity Management and Research Company and FMR Co., Inc., on behalf of Fidelity Asset Manager: Growth (currently known as Fidelity Asset Manager 70%), dated January 1, 2001, is incorporated herein by reference to Exhibit (d)(25) of Post-Effective Amendment No. 72.
(20) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Money Management, Inc. (FIMM), on behalf of Fidelity Asset Manager: Income (currently known as Fidelity Asset Manager 20%), dated January 1, 1999, is incorporated herein by reference to Exhibit (d)(17) of Post-Effective Amendment No. 73.
(21) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. (currently known as Fidelity Research & Analysis Company (FRAC)), on behalf of Fidelity Asset Manager: Income (currently known as Fidelity Asset Manager 20%), dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(13) of Post-Effective Amendment No. 70.
(22) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc., on behalf of Fidelity Asset Manager: Income (currently known as Fidelity Asset Manager 20%), dated November 1, 1999, is incorporated herein by reference to Exhibit (d)(12) of Post-Effective Amendment No. 70.
(23) Sub-Advisory Agreement between Fidelity Management and Research Company and FMR Co., Inc., on behalf of Fidelity Asset Manager: Income (currently known as Fidelity Asset Manager 20%), dated January 1, 2001, is incorporated herein by reference to Exhibit (d)(26) of Post-Effective Amendment No. 72.
(24) Form of Sub-Advisory Agreement between Fidelity Management & Research Company, on behalf of Fidelity Advisor Asset Manager 70% and Fidelity Management & Research (U.K.) Inc., is filed herein as Exhibit (d)(24).
(25) Form of Sub-Advisory Agreement between Fidelity Management & Research Company, on behalf of Fidelity Advisor Asset Manager 70% and Fidelity Management & Research (Far East) Inc. (currently Fidelity Research & Analysis Company), is filed herein as Exhibit (d)(25).
(26) Form of Sub-Advisory Agreement between Fidelity Management & Research Company, on behalf of Fidelity Advisor Asset Manager 70% and Fidelity Investments Money Management, Inc., is filed herein as Exhibit (d)(26).
(27) Form of Sub-Advisory Agreement between FMR Co., Inc., on behalf of Fidelity Advisor Asset Manager 70% and Fidelity Management & Research Company, is filed herein as Exhibit (d)(27).
(28) Form of Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Global Balanced Fund, is filed herein as Exhibit (d)(28).
(29) Form of Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc., (currently Fidelity Research & Analysis Company) on behalf of Fidelity Global Balanced Fund, is filed herein as Exhibit (d)(29).
(30) Form of Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Global Balanced Fund, is filed herein as Exhibit (d)(30).
(31) Form of Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited, on behalf of Fidelity Global Balanced Fund, is filed herein as Exhibit (d)(31).
(32) Form of Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity Investments Japan Limited on behalf of Fidelity Global Balanced Fund, is filed herein as Exhibit (d)(32).
(33) Form of Sub-Advisory Agreement between FMR Co., Inc. and Fidelity Management & Research Company, on behalf of Fidelity Global Balanced Fund, is filed herein as Exhibit (d)(33).
(34) Form of Sub-Advisory Agreement between FMR Co., Inc. and Fidelity Management & Research Company, on behalf of Fidelity Broad Market Opportunities Fund, is incorporated herein by reference to Exhibit (d)(34) of Post-Effective Amendment No. 82.
(35) Form Of Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc., on behalf of Fidelity Broad Market Opportunities Fund, is incorporated herein by reference to Exhibit (d)(35) of Post-Effective Amendment No. 82.
(36) Form Of Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. (currently Fidelity Research & Analysis Company), on behalf of Fidelity Broad Market Opportunities Fund, is incorporated herein by reference to (d)(36) of Post-Effective Amendment No. 82.
(37) Amended and Restated Sub-Advisory Agreement, dated August 1, 2001, between Fidelity Management & Research (Far East) Inc. (currently Fidelity Research & Analysis Company) and Fidelity Investments Japan Limited, on behalf of the Registrant is incorporated herein by reference to Exhibit (d)(17) of Fidelity Hastings Street Trust's (File No. 002-11517) Post-Effective Amendment No. 108.
(38) Form of Schedule A to the Amended and Restated Sub-Advisory Agreement, dated August 1, 2001, between Fidelity Management & Research (Far East) Inc. (currently Fidelity Research & Analysis Company) and Fidelity Investments Japan Limited, on behalf of the Registrant is filed herein as Exhibit (d)(38).
(39) Master International Research Agreement, dated July 1, 2003, between Fidelity Management & Research Company and Fidelity International Investment Advisors, on behalf of the Registrant is incorporated herein by reference to Exhibit (d)(19) of Fidelity Hastings Street Trust's (File No. 002-11517) Post-Effective Amendment No. 110.
(40) Form of Schedule A to the Master International Research Agreement, dated July 1, 2003, between Fidelity Management & Research Company and Fidelity International Investment Advisors, on behalf of the Registrant is filed herein as Exhibit (d)(40).
(41) Sub-Research Agreement, dated July 1, 2003, between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited, on behalf of the Registrant is incorporated herein by reference to Exhibit (d)(21) of Fidelity Hastings Street Trust's (File No. 002-11517) Post-Effective Amendment No. 110.
(42) Form of Schedule A to the Sub-Research Agreement, dated July 1, 2003, between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited, on behalf of the Registrant is filed herein as Exhibit (d)(42).
(43) Sub-Research Agreement, dated July 1, 2003, between Fidelity International Investment Advisors and Fidelity Investments Japan Limited, on behalf of the Registrant is incorporated herein by reference to Exhibit (d)(23) of Fidelity Hastings Street Trust's (File No. 002-11517) Post-Effective Amendment No. 110.
(44) Form of Schedule A to the Sub-Research Agreement, dated July 1, 2003, between Fidelity International Investment Advisors and Fidelity Investments Japan Limited, on behalf of the Registrant is filed herein as Exhibit (d)(44).
(45) General Research Services Agreement and Schedule B, each dated January 20, 2006, among Fidelity Management & Research Company, FMR Co., Inc., Fidelity Investments Money Management Inc., and Fidelity Research & Analysis Company, on behalf of the Registrant is incorporated herein by reference to Exhibit (d)(38) of Variable Insurance Products Fund's (File No. 002-75010) Post-Effective Amendment No. 62.
(46) Form of Schedule A to the General Research Services Agreement, dated January 20, 2006, among Fidelity Management & Research Company, FMR Co., Inc., Fidelity Investments Money Management Inc., and Fidelity Research & Analysis Company, on behalf of the Registrant is filed herein as Exhibit (d)(46).
(e) (1) Amended and Restated General Distribution Agreement, dated May 1, 2006, between Fidelity Charles Street Trust on behalf of Fidelity Asset Manager (currently known as Fidelity Asset Manager 50%) and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit (e)(1) of Post-Effective Amendment No. 82.
(2) Amended and Restated General Distribution Agreement, dated May 1, 2006, between Fidelity Charles Street Trust on behalf of Fidelity Asset Manager: Aggressive (currently known as Fidelity Asset Manager 85%) and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit (e)(2) of Post-Effective Amendment No. 82.
(3) Amended and Restated General Distribution Agreement, dated May 1, 2006, between Fidelity Charles Street Trust on behalf of Fidelity Asset Manager: Growth (currently known as Fidelity Asset Manager 70%) and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit (e)(3) of Post-Effective Amendment No. 82.
(4) Amended and Restated General Distribution Agreement, dated May 1, 2006, between Fidelity Charles Street Trust on behalf of Fidelity Asset Manager: Income (currently known as Fidelity Asset Manager 20%) and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit (e)(4) of Post-Effective Amendment No. 82.
(5) Form of General Distribution Agreement between Fidelity Charles Street Trust on behalf of Fidelity Advisor Asset Manager 70% and Fidelity Distributors Corporation is filed herein as Exhibit (e)(5).
(6) Form of General Distribution Agreement between Fidelity Charles Street Trust on behalf of Fidelity Global Balanced Fund and Fidelity Distributors Corporation is filed herein as Exhibit (e)(6).
(7) Form of General Distribution Agreement between Fidelity Broad Market Opportunities Fund and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit (e)(7) of Post-Effective Amendment No. 82.
(8) Form of Selling Dealer Agreement (most recently revised April 2006) is incorporated herein by reference to Exhibit (e)(6) of Post-Effective Amendment No. 77.
(9) Form of Bank Agency Agreement (most recently revised April 2006) is incorporated herein by reference to Exhibit (e)(7) of Post-Effective Amendment No. 77.
(10) Form of Selling Dealer Agreement for Bank-Related Transactions (most recently revised April 2006) is incorporated herein by reference to Exhibit (e)(8) of Post-Effective Amendment No. 77.
(f) The Fee Deferral Plan for Independent Trustees and Trustees of the Fidelity Funds, effective as of September 15, 1995 and amended through May 14, 2006 is incorporated herein by reference to Exhibit (f)(1) of Fidelity Central Investment Portfolios LLC (File No. 811-21667) Amendment No. 6.
(g) (1) Custodian Agreement and Appendix B, C, D, and E, dated January 1, 2007, between JPMorgan Chase Bank, N.A. and Fidelity Charles Street Trust on behalf of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, and Fidelity Asset Manager 85% are incorporated herein by reference to Exhibit (g)(2) of Fidelity Advisor Series I's (File No. 002-84776) Post-Effective Amendment No. 72.
(2) Appendix A, dated March 26, 2007, to the Custodian Agreement, dated January 1, 2007, between JPMorgan Chase Bank, N.A. and Fidelity Charles Street Trust on behalf of Fidelity Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, and Fidelity Asset Manager 85% is incorporated herein by reference to Exhibit (g)(5) of Variable Insurance Products Fund II's (File No. 033-20773) Post-Effective Amendment No. 52.
(3) Form of Custodian Agreement and Appendix B, C, D, and E between Brown Brothers Harriman & Company and Fidelity Charles Street Trust on behalf of Fidelity Global Balanced Fund are filed herein as Exhibit (g)(3).
(4) Form of Appendix A to the Custodian Agreement between Brown Brothers Harriman & Company and Fidelity Charles Street Trust on behalf of Fidelity Global Balanced Fund is filed herein as Exhibit (g)(4).
(5) Form of Custodian Agreement and Appendix A, B, C, D, and E between State Street Bank and Trust Company and Fidelity Charles Street Trust on behalf of Fidelity Advisor Asset Manager 70% are filed herein as Exhibit (g)(5).
(6) Fidelity Group Repo Custodian Agreement among The Bank of New York, J.P. Morgan Securities, Inc., and the Registrant, dated February 12, 1996, is incorporated herein by reference to Exhibit 8(d) of Fidelity Institutional Cash Portfolios' (currently known as Fidelity Colchester Street Trust) (File No. 002-74808) Post-Effective Amendment No. 31.
(7) Schedule 1 to the Fidelity Group Repo Custodian Agreement between The Bank of New York and the Registrant, dated February 12, 1996, is incorporated herein by reference to Exhibit 8(e) of Fidelity Institutional Cash Portfolios' (currently known as Fidelity Colchester Street Trust) (File No. 002-74808) Post-Effective Amendment No. 31.
(8) Fidelity Group Repo Custodian Agreement among Chemical Bank, Greenwich Capital Markets, Inc., and the Registrant, dated November 13, 1995, is incorporated herein by reference to Exhibit 8(f) of Fidelity Institutional Cash Portfolios' (currently known as Fidelity Colchester Street Trust) (File No. 002-74808) Post-Effective Amendment No. 31.
(9) Schedule 1 to the Fidelity Group Repo Custodian Agreement between Chemical Bank and the Registrant, dated November 13, 1995, is incorporated herein by reference to Exhibit 8(g) of Fidelity Institutional Cash Portfolios' (currently known as Fidelity Colchester Street Trust) (File No. 002-74808) Post-Effective Amendment No. 31.
(10) Joint Trading Account Custody Agreement between The Bank of New York and the Registrant, dated May 11, 1995, is incorporated herein by reference to Exhibit 8(h) of Fidelity Institutional Cash Portfolios' (currently known as Fidelity Colchester Street Trust) (File No. 002-74808) Post-Effective Amendment No. 31.
(11) First Amendment to Joint Trading Account Custody Agreement between The Bank of New York and the Registrant, dated July 14, 1995, is incorporated herein by reference to Exhibit 8(i) of Fidelity Institutional Cash Portfolios' (currently known as Fidelity Colchester Street Trust) (File No. 002-74808) Post-Effective Amendment No. 31.
(12) Form of Schedule A-1 to the Fidelity Group Repo Custodian Agreements, Schedule 1s to the Fidelity Group Repo Custodian Agreements, Joint Trading Account Custody Agreement, and First Amendment to the Joint Trading Account Custody Agreement, between the respective parties and the Registrant, is filed herein as Exhibit (g)(12).
(h) Not applicable.
(i) (1) Legal Opinion of Dechert LLP for Fidelity Advisor Asset Manager 70%, and Fidelity Global Balanced FundJune 25, 2007, is filed herein as Exhibit (i)(1).
(2) Legal Opinion of Dechert LLP for Fidelity Advisor Asset Manager 20%, Fidelity Asset Manager 50%, Fidelity Asset Manager 70%, and Fidelity Asset Manager 85%, dated November 27, 2006, is incorporated herein by reference to Exhibit (i) of Post-Effective Amendment No. 80.
(j) Consent of PricewaterhouseCoopers LLP, dated June 26, 2007, is filed herein as Exhibit (j).
(k) Not applicable.
(l) Not applicable.
(m) (1) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Asset Manager (currently known as Fidelity Asset Manager 50%) is incorporated herein by reference to Exhibit (m)(1) of Post-Effective Amendment No. 71.
(2) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Asset Manager: Aggressive (currently known as Fidelity Asset Manager 85%) is incorporated herein by reference to Exhibit (m)(2) of Post-Effective Amendment No. 70.
(3) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Asset Manager: Growth (currently known as Fidelity Asset Manager 70%) is incorporated herein by reference to Exhibit (m)(3) of Post-Effective Amendment No. 71.
(4) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Asset Manager: Income (currently known as Fidelity Asset Manager 20%) is incorporated herein by reference to Exhibit (m)(4) of Post-Effective Amendment No. 71.
(5) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 20%: Class A is incorporated herein by reference to Exhibit (m)(5) of Post-Effective Amendment No. 79.
(6) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 20%: Class T is incorporated herein by reference to Exhibit (m)(6) of Post-Effective Amendment No. 79.
(7) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 20%: Class B is incorporated herein by reference to Exhibit (m)(7) of Post-Effective Amendment No. 79.
(8) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 20%: Class C is incorporated herein by reference to Exhibit (m)(8) of Post-Effective Amendment No. 79.
(9) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 20%: Institutional Class is incorporated herein by reference to Exhibit (m)(9) of Post-Effective Amendment No. 79.
(10) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 50%: Class A is incorporated herein by reference to Exhibit (m)(10) of Post-Effective Amendment No. 79.
(11) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 50%: Class T is incorporated herein by reference to Exhibit (m)(11) of Post-Effective Amendment No. 79.
(12) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 50%: Class B is incorporated herein by reference to Exhibit (m)(12) of Post-Effective Amendment No. 79.
(13) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 50%: Class C is incorporated herein by reference to Exhibit (m)(13) of Post-Effective Amendment No. 79.
(14) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 50%: Institutional Class is incorporated herein by reference to Exhibit (m)(14) of Post-Effective Amendment No. 79.
(15) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 85%: Class A is incorporated herein by reference to Exhibit (m)(15) of Post-Effective Amendment No. 79.
(16) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 85%: Class T is incorporated herein by reference to Exhibit (m)(16) of Post-Effective Amendment No. 79.
(17) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 85%: Class B is incorporated herein by reference to Exhibit (m)(17) of Post-Effective Amendment No. 79.
(18) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 85%: Class C is incorporated herein by reference to Exhibit (m)(18) of Post-Effective Amendment No. 79.
(19) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 85%: Institutional Class is incorporated herein by reference to Exhibit (m)(19) of Post-Effective Amendment No. 79.
(20) Form of Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 70%: Class A is filed herein as Exhibit (m)(20).
(21) Form of Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 70%: Class T is filed herein as Exhibit (m)(21).
(22) Form of Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 70%: Class B is filed herein as Exhibit (m)(22).
(23) Form of Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 70%: Class C is filed herein as Exhibit (m)(23).
(24) Form of Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Advisor Asset Manager 70%: Institutional Class is filed herein as Exhibit (m)(24).
(25) Form of Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Global Balanced Fund is filed herein as Exhibit (m)(25).
(26) Form of Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Broad Market Opportunities Fund is incorporated herein by reference to Exhibit (m)(26) of Post-Effective Amendment No. 82.
(n) (1) Multiple Class of Shares Plan pursuant to Rule 18f-3 for Fidelity Advisor Funds, dated April 20, 2006, on behalf of Fidelity Charles Street Trust on behalf of Fidelity Advisor Asset Manager 20%, Fidelity Advisor Asset Manager 50%, Fidelity Advisor Asset Manager 70%, and Fidelity Advisor Asset Manager 85% is incorporated herein by reference to Exhibit (n)(1) of Fidelity Investment Trust's (File No. 002-90649) Post-Effective Amendment No. 95.
(2) Schedule I, dated April 1, 2007, to the Multiple Class of Shares Plan pursuant to Rule 18f-3 for Fidelity Advisor Funds, dated April 20, 2006, on behalf of Fidelity Advisor Asset Manager 20%, Fidelity Advisor Asset Manager 50%, and Fidelity Advisor Asset Manager 85% is incorporated herein by reference to Exhibit (n)(2) of Fidelity California Municipal Trust's (File No. 002-83367) Post-Effective Amendment No. 54.
(3) Form of Schedule I to the Multiple Class of Shares Plan pursuant to Rule 18f-3 for Fidelity Advisor Funds, dated April 20, 2006, on behalf of Fidelity Advisor Asset Manager 70% is filed herein as Exhibit (n)(3).
(p) (1) Code of Ethics, dated February 15, 2007, adopted by each funds and Fidelity Management & Research Company, Fidelity Investments Money Management, Inc., FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, and Fidelity Distributors Corporation pursuant to Rule 17j-1 is incorporated herein by reference to Exhibit (p)(1) of Fidelity Congress Street Fund's (File No. 811-00971) Amendment No. 30.
(p) (2) Code of Ethics, dated March 2007, adopted by Fidelity International Limited (FIL), Fidelity Investments Japan Limited, Fidelity International Investment Advisors, and Fidelity International Investment Advisors (U.K.) Limited pursuant to Rule 17j-1 is incorporated herein by reference to Exhibit (p)(2) of Fidelity New York Municipal Trust II's (File No. 811-06398) Post-Effective Amendment No. 24.
Item 24. Trusts Controlled by or under Common Control with this Trust
The Board of Trustees of the Trust is the same as the board of other Fidelity funds, each of which has Fidelity Management & Research Company, or an affiliate, as its investment adviser. In addition, the officers of the Trust are substantially identical to those of the other Fidelity funds. Nonetheless, the Trust takes the position that it is not under common control with other Fidelity funds because the power residing in the respective boards and officers arises as the result of an official position with the respective trusts.
Item 25. Indemnification
Article XI, Section 2 of the Declaration of Trust sets forth the reasonable and fair means for determining whether indemnification shall be provided to any past or present Trustee or officer. It states that the Trust shall indemnify any present or past trustee or officer to the fullest extent permitted by law against liability, and all expenses reasonably incurred by him or her in connection with any claim, action, suit or proceeding in which he or she is involved by virtue of his or her service as a trustee or officer and against any amount incurred in settlement thereof. Indemnification will not be provided to a person adjudged by a court or other adjudicatory body to be liable to the Trust or its shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties (collectively, "disabling conduct"), or not to have acted in good faith in the reasonable belief that his or her action was in the best interest of the Trust. In the event of a settlement, no indemnification may be provided unless there has been a determination, as specified in the Declaration of Trust, that the officer or trustee did not engage in disabling conduct.
Pursuant to Section 11 of the Distribution Agreement, the Trust agrees to indemnify and hold harmless the Distributor and each of its directors and officers and each person, if any, who controls the Distributor within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Trust (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Trust does not agree to indemnify the Distributor or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Trust by or on behalf of the Distributor. In no case is the indemnity of the Trust in favor of the Distributor or any person indemnified to be deemed to protect the Distributor or any person against any liability to the Issuer or its security holders to which the Distributor or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement.
Pursuant to the agreement by which Fidelity Service Company, Inc. ("FSC") is appointed transfer agent, the Trust agrees to indemnify and hold FSC harmless against any losses, claims, damages, liabilities or expenses (including reasonable counsel fees and expenses) resulting from:
(1) any claim, demand, action or suit brought by any person other than the Trust, including by a shareholder, which names FSC and/or the Trust as a party and is not based on and does not result from FSC's willful misfeasance, bad faith or negligence or reckless disregard of duties, and arises out of or in connection with FSC's performance under the Transfer Agency Agreement; or
(2) any claim, demand, action or suit (except to the extent contributed to by FSC's willful misfeasance, bad faith or negligence or reckless disregard of its duties) which results from the negligence of the Trust, or from FSC's acting upon any instruction(s) reasonably believed by it to have been executed or communicated by any person duly authorized by the Trust, or as a result of FSC's acting in reliance upon advice reasonably believed by FSC to have been given by counsel for the Trust, or as a result of FSC's acting in reliance upon any instrument or stock certificate reasonably believed by it to have been genuine and signed, countersigned or executed by the proper person.
Pursuant to the agreement by which Fidelity Investments Institutional Operations Company, Inc. ("FIIOC") is appointed transfer agent, the Registrant agrees to indemnify and hold FIIOC harmless against any losses, claims, damages, liabilities or expenses (including reasonable counsel fees and expenses) resulting from:
(1) any claim, demand, action or suit brought by any person other than the Registrant, including by a shareholder, which names FIIOC and/or the Registrant as a party and is not based on and does not result from FIIOC's willful misfeasance, bad faith or negligence or reckless disregard of duties, and arises out of or in connection with FIIOC's performance under the Transfer Agency Agreement; or
(2) any claim, demand, action or suit (except to the extent contributed to by FIIOC's willful misfeasance, bad faith or negligence or reckless disregard of duties) which results from the negligence of the Registrant, or from FIIOC's acting upon any instruction(s) reasonably believed by it to have been executed or communicated by any person duly authorized by the Registrant, or as a result of FIIOC's acting in reliance upon advice reasonably believed by FIIOC to have been given by counsel for the Registrant, or as a result of FIIOC's acting in reliance upon any instrument or stock certificate reasonably believed by it to have been genuine and signed, countersigned or executed by the proper person.
Item 26. Business and Other Connections of Investment Advisers
(1) FIDELITY MANAGEMENT & RESEARCH COMPANY (FMR)
FMR serves as investment adviser to a number of other investment companies. The directors and officers of the Adviser have held, during the past two fiscal years, the following positions of a substantial nature.
Edward C. Johnson 3d |
Chairman of the Board and Director of Fidelity Management & Research Company (FMR), FMR Co., Inc. (FMRC), Fidelity Research & Analysis Company (FRAC), and Fidelity Investments Money Management, Inc. (FIMM); Chief Executive Officer, Chairman of the Board, and Director of FMR Corp.; Trustee of funds advised by FMR. |
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Abigail P. Johnson |
Previously served as President and Director of FMR, FMRC, and FIMM (2005), Senior Vice President of funds advised by FMR (2005), and Trustee of funds advised by FMR (2006). Currently a Director and Vice Chairman (2006) of FMR Corp., President of Fidelity Employer Service Co. (FESCO) (2005), and President and a Director of Fidelity Investments Institutional Operations Company, Inc. (FIIOC) (2005). |
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Peter S. Lynch |
Vice Chairman and Director of FMR and FMRC and member of the Advisory Board of funds advised by FMR (2003).
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Thomas Allen |
Vice President of FMR, FMRC, and funds advised by FMR. |
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Paul Antico |
Vice President of FMR, FMRC, and a fund advised by FMR. |
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Ramin Arani |
Vice President of FMR, FMRC, and funds advised by FMR. |
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John Avery |
Vice President of FMR, FMRC, and a fund advised by FMR. |
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David Bagnani |
Vice President of FMR and FMRC (2004). |
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Robert Bertelson |
Vice President of FMR, FMRC, and funds advised by FMR. |
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Stephen Binder |
Previously served as Vice President of FMR, FMRC and a fund advised by FMR (2006). |
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William Bower |
Vice President of FMR, FMRC, and funds advised by FMR. |
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Philip L. Bullen |
Senior Vice President of FMR and FMRC; Vice President of certain Equity funds advised by FMR; Previously served as President and Director of FRAC and Fidelity Management & Research (U.K.) Inc. (FMR U.K.) (2006) and Director of Strategic Advisers, Inc. (2005). |
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Steve Buller |
Vice President of FMR, FMRC, and a fund advised by FMR. |
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John J. Burke |
Senior Vice President of FMR (2006); Previously served as Vice President of FMR (2006).
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John H. Carlson |
Senior Vice President of FMR and FMRC (2003); Vice President of funds advised by FMR; Previously served as Vice President of FMR and FMRC (2003). |
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Stephen Calhoun |
Vice President of FMR, FMRC (2005), and funds advised by FMR. |
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James Catudal |
Vice President of FMR, FMRC, and funds advised by FMR. |
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Ren Y. Cheng |
Vice President of FMR, FMRC, and funds advised by FMR; Previously served as Vice President of Strategic Advisers, Inc. (2005). |
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C. Robert Chow |
Vice President of FMR, FMRC, and a fund advised by FMR. |
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Dwight D. Churchill |
Executive Vice President of FMR and FMRC (2005); Vice President of Equity funds advised by FMR; Previously served as Senior Vice President of FMR (2005) and FIMM (2006). |
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William Carlyle Coash |
Vice President of FMR and FMRC (2006). |
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Timothy Cohen |
Vice President of FMR, FMRC (2003), and funds advised by FMR. |
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Katherine Collins |
Senior Vice President of FMR and FMRC (2003); Previously served as Vice President of FMR and FMRC (2003). |
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Michael Connolly |
Vice President of FMR and FMRC. |
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Brian B. Conroy |
Senior Vice President of FMR and FMRC (2006). |
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Matthew Conti |
Vice President of FMR, FMRC (2003), and funds advised by FMR. |
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William Danoff |
Senior Vice President of FMR, FMRC, and Vice President of funds advised by FMR. |
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Joseph Day |
Previously served as Vice President of FMR and FMRC (2006). |
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Scott E. DeSano |
Previously served as Senior Vice President of FMR and FMRC (2005). |
|
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Penelope Dobkin |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
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Julie Donovan |
Vice President of FMR and FMRC (2003). |
|
|
Walter C. Donovan |
Executive Vice President of FMR and FMRC (2005); Vice President of High Income funds advised by FMR; Previously served as Senior Vice President of FMR and FMRC (2003). |
|
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Bettina Doulton |
Senior Vice President of FMR and FMRC; Previously served as Vice President of funds advised by FMR. |
|
|
Stephen DuFour |
Vice President of FMR, FMRC, and funds advised by FMR.
|
William Eigen |
Previously served as Vice President of FMR, FMRC, Strategic Advisers, Inc., and funds advised by FMR (2005).
|
Michael Elizondo |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Brian Peter Enyeart |
Vice President of FMR and FMRC (2006). |
|
|
Bahaa Fam |
Previously served as Vice President of FMR and FMRC (2006); Vice President of funds advised by FMR. |
|
|
Jeffrey Feingold |
Vice President of FMR, FMRC (2005), and a fund advised by FMR. |
|
|
Robert Scott Feldman |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Richard B. Fentin |
Senior Vice President of FMR and FMRC and Vice President of funds advised by FMR. |
|
|
Keith Ferguson |
Previously served as Vice President of FMR and FMRC (2005). |
|
|
Karen Firestone |
Previously served as Vice President of FMR, FMRC, and funds advised by FMR (2005). |
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|
|
|
Jay Freedman |
Previously served as Assistant Secretary of FMR, FMRC and Fidelity Distributors Corporation (FDC), and Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc. and FMR Corp. (2006).
|
Matthew H. Friedman |
Vice President of FMR and FMRC (2006). |
|
|
Matthew Fruhan |
Vice President of FMR, FMRC (2006), and funds advised by FMR. |
|
|
Robert M. Gervis |
Vice President of FMR and FMRC (2006). |
|
|
Christopher J. Goudie |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Boyce I. Greer |
Executive Vice President of FMR and FMRC (2005); Senior Vice President of FIMM (2006); Vice President of the Select, Asset Allocation, Fixed-Income, and Money Market funds advised by FMR. |
|
|
Robert J. Haber |
Previously served as Senior Vice President of FMR and FMRC (2006); Vice President of a fund advised by FMR. |
|
|
Richard C. Habermann |
Senior Vice President of FMR and FMRC and Vice President of funds advised by FMR. |
|
|
John F. Haley |
Previously served as Vice President of FMR and FMRC (2007). |
|
|
Karen Hammond |
Executive Vice President of FMR (2005); Previously served as Assistant Treasurer of FMR, FMRC, FMR U.K., FRAC, and FIMM, Vice President of FMR U.K., FRAC, FIMM, and Strategic Advisers, Inc., and Treasurer of Strategic Advisers, Inc. and FMR Corp. (2005). |
|
|
Brian J. Hanson |
Vice President of FMR, FMRC (2004), and funds advised by FMR. |
|
|
James Harmon |
Vice President of FMR, FMRC, and a fund advised by FMR. |
|
|
Ian Hart |
Vice President of FMR, FMRC and a fund advised by FMR. |
|
|
Teresa A. Hassara |
Vice President of FMR (2005). |
|
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Timothy F. Hayes |
Previously served as Executive Vice President of FMR (2006). |
|
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John Hebble |
Vice President of FMR (2003). |
|
|
Timothy Heffernan |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Thomas Hense |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Cesar Hernandez |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Bruce T. Herring |
Senior Vice President of FMR (2006); Vice President of FMRC and of certain Equity funds advised by FMR; Previously served as Vice President of FMR (2006). |
|
|
Adam Hetnarski |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
John J. Hitt |
Assistant Secretary of FMR, FMRC, FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., FDC, and FMR Corp. (2006). |
|
|
Frederick D. Hoff, Jr. |
Vice President of FMR, FMRC, and a fund advised by FMR. |
|
|
Brian Hogan |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Michael T. Jenkins |
Vice President of FMR and FMRC (2004).
|
David B. Jones |
Vice President of FMR. |
|
|
Sonu Kalra |
Vice President of FMR, FMRC (2006), and a fund advised by FMR. |
|
|
Rajiv Kaul |
Previously served as Vice President of FMR and FMRC (2006); Vice President of funds advised by FMR. |
|
|
Steven Kaye |
Previously served as Senior Vice President of FMR and FMRC and Vice President of a fund advised by FMR (2007).
|
Jonathan Kelly |
Vice President of FMR, FMRC (2003), and funds advised by FMR.
|
William Kennedy |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Francis V. Knox, Jr. |
Previously served as Vice President of FMR and Assistant Treasurer of funds advised by FMR (2005). |
|
|
Karen Korn |
Vice President of FMR and FMRC (2006). |
|
|
Deborah Foye Kuenstner |
Previously served as Senior Vice President of FMR and FMRC (2006). |
|
|
Harry W. Lange |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Harley Lank |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Thomas P. Lavin |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Robert A. Lawrence |
Senior Vice President of FMR and FMRC (2006); Vice President of High Income funds advised by FMR; Previously served as Director of Geode, President of Fidelity Strategic Investments, and Vice President of FMR Corp. (2005). |
|
|
Maxime Lemieux |
Previously served as Vice President of FMR and FMRC (2006); Vice President of a fund advised by FMR. |
|
|
Harris Leviton |
Previously served as Vice President of FMR, FMRC, and funds advised by FMR (2006). |
|
|
Douglas Lober |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
James MacDonald |
Previously served as Senior Vice President of FMR (2005). |
|
|
Robert B. MacDonald |
Vice President of Strategic Advisers, Inc. (2004). |
|
|
Richard R. Mace |
Senior Vice President of FMR and FMRC and Vice President of funds advised by FMR. |
|
|
Charles A. Mangum |
Senior Vice President of FMR and FMRC (2005); Vice President of funds advised by FMR; Previously served as Vice President of FMR and FMRC (2005). |
|
|
Darren Maupin |
Vice President of FMR, FMRC (2006), and funds advised by FMR. |
|
|
Kevin McCarey |
Previously served as Vice President of FMR, FMRC, and funds advised by FMR (2006). |
|
|
Christine McConnell |
Vice President of FMR, FMRC (2003), and a fund advised by FMR. |
|
|
John B. McDowell |
Senior Vice President of FMR and FMRC and Vice President of certain Equity funds advised by FMR. |
|
|
Neal P. Miller |
Vice President of FMR, FMRC, and a fund advised by FMR.
|
Peter J. Millington |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Robert Minicus |
Vice President of FMR and FMRC (2006). |
|
|
Jeffrey Mitchell |
Vice President of FMR and FMRC (2003). |
|
|
Eric M. Mollenhauer |
Vice President of FMR and FMRC (2004).
|
|
|
Kimberley Monasterio |
Assistant Treasurer of FMR (2006), President and Treasurer of funds advised by FMR (2007). |
|
|
Charles S. Morrison |
Vice President of FMR and Money Market funds advised by FMR; Senior Vice President of FIMM (2003); Previously served as Vice President of FIMM (2003). |
|
|
David L. Murphy |
Executive Vice President of FMR (2005); Vice President of Fixed-Income and Money Market funds advised by FMR; Senior Vice President of FIMM (2003); Previously served as Vice President of FMR (2005) and FIMM (2003). |
|
|
Charles L. Myers |
Vice President of FMR, FMRC (2006), and a fund advised by FMR. |
|
|
Steve Neff |
Senior Vice President of FMR (2005). |
|
|
Mark Notkin |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Scott Offen |
Vice President of FMR, FMRC (2003), and a fund advised by FMR.
|
Fatima Penrose |
Previously served as Senior Vice President of FMR (2006) and Vice President of FMR (2005). |
|
|
Shep Perkins |
Vice President of FMR (2006), FMRC (2004), and a fund advised by FMR. |
|
|
Stephen Petersen |
Senior Vice President of FMR and FMRC and Vice President of funds advised by FMR.
|
John R. Porter |
Vice President of FMR, FMRC (2004), and funds advised by FMR. |
|
|
Keith Quinton |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Alan Radlo |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Larry Rakers |
Vice President of FMR, FMRC, and funds advised by FMR.
|
William R. Ralls |
Previously served as Vice President of FMR (2005). |
|
|
Kenneth A. Rathgeber |
Chief Compliance Officer of FMR, FMRC, FMR U.K., FRAC, FIMM, and Strategic Advisers, Inc. (2005). |
|
|
Christine Reynolds |
Senior Vice President of FMR (2007); Previously served as President and Treasurer of funds advised by FMR (2007); Vice President of FMR and Anti-Money Laundering Officer (2006). |
|
|
Kennedy Richardson |
Vice President of FMR and FMRC. |
|
|
Clare S. Richer |
Previously served as Senior Vice President of FMR (2005); Chief Financial Officer (2005), Executive Vice President (2005), and Treasurer of FMR Corp. (2006). |
|
|
Kenneth Robins |
Assistant Treasurer of FMR (2006). |
|
|
Graeme Rockett |
Vice President of FMR, FMRC (2006), and funds advised by FMR. |
|
|
Eric D. Roiter |
Vice President, General Counsel, and Secretary of FMR and FMRC; Secretary of funds advised by FMR; Assistant Secretary of FMR U.K., FRAC, and FIMM; Previously served as Vice President and Secretary of FDC (2005).
|
Stephen Rosen |
Vice President of FMR, FMRC (2004), and a fund advised by FMR. |
|
|
Louis Salemy |
Previously served as Vice President of FMR, FMRC, and funds advised by FMR (2006). |
|
|
Lee H. Sandwen |
Previously served as Vice President of FMR and FMRC (2006). |
|
|
Peter Saperstone |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Andy H. Sassine |
Vice President of FMR, FMRC (2006), and a fund advised by FMR. |
|
|
Chrisopher Linden Sharpe |
Vice President of FMR, FMRC (2006), and funds advised by FMR. |
|
|
Jonathan Allen Shelon |
Vice President of FMR, FMRC (2006), and funds advised by FMR. |
|
|
J. Fergus Shiel |
Vice President of FMR, FMRC (2006), and funds advised by FMR. |
|
|
Beso Sikharulidze |
Previously served as Vice President of FMR, FMRC, and a fund advised by FMR (2005). |
|
|
Carol A. Smith-Fachetti |
Vice President of FMR and FMRC. |
|
|
Steven J. Snider |
Previously served as Vice President of FMR and FMRC (2006); Vice President of a fund advised by FMR. |
|
|
Mark P. Snyderman |
Vice President of FMR, FMRC (2004), and funds advised by FMR. |
|
|
Thomas T. Soviero |
Senior Vice President of FMR and FMRC (2005); Vice President of funds advised by FMR; Previously served as Vice President of FMR and FMRC (2005). |
|
|
George Stairs |
Vice President of FMR, FMRC (2006), and a fund advised by FMR. |
|
|
Robert E. Stansky |
Senior Vice President of FMR and FMRC; Previously served as a Vice President of a fund advised by FMR. |
|
|
Nicholas E. Steck |
Senior Vice President of FMR (2006); Compliance Officer of FMR (2006), FMRC (2006), FMR U.K., FRAC, FIMM (2006), Strategic Advisers, Inc. (2005), and FMR Corp.; Previously served as Vice President of FMR (2006). |
|
|
Cynthia C. Strauss |
Vice President of FMR and FMRC (2006). |
|
|
Susan Sturdy |
Assistant Secretary of FMR, FMRC, and FDC; Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., and FMR Corp. (2006); Previously served as Assistant Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., and FMR Corp. (2006). |
|
|
Yolanda Taylor |
Vice President of FMR and FMRC. |
|
|
Victor Thay |
Vice President of FMR, FMRC (2003), and a fund advised by FMR. |
|
|
Richard S. Thompson |
Vice President of FMR, FMRC (2006), and a fund advised by FMR. |
|
|
Joel C. Tillinghast |
Senior Vice President of FMR, FMRC, and Vice President of a fund advised by FMR.
|
Matthew C. Torrey |
Vice President of FMR and FMRC (2004). |
|
|
Robert Tuckett |
Vice President of FMR. |
|
|
Jennifer Uhrig |
Senior Vice President of FMR (2005); Vice President of FMRC and funds advised by FMR; Previously served as Vice President of FMR (2005). |
|
|
George A. Vanderheiden |
Senior Vice President of FMR and FMRC. |
|
|
Robert B. Von Rekowsky |
Vice President of FMR, FMRC (2004), and funds advised by FMR.
|
Samuel Wald |
Vice President of FMR, FMRC (2006), and funds advised by FMR. |
|
|
J. Gregory Wass |
Assistant Treasurer of FMR, FMRC, FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., FDC and FMR Corp. (2003); Vice President, Taxation, of FMR Corp. |
|
|
Jason Weiner |
Vice President of FMR, FMRC, and funds advised by FMR. |
|
|
Eric Wetlaufer |
Senior Vice President of FMR and FMRC (2006); President and Director of FMR U.K. and FRAC (2006); Vice President of certain Equity funds advised by FMR. |
|
|
Ellen Wilson |
Executive Vice President, Human Resources, of FMR Corp. (2004). |
|
|
Steven S. Wymer |
Senior Vice President of FMR (2005); Vice President of FMRC and a fund advised by FMR; Previously served as Vice President of FMR (2005). |
|
|
JS Wynant |
Vice President of FMR and FMRC; Treasurer of FMR, FMRC, FMR U.K., FRAC, and FIMM.
|
Derek L. Young |
Vice President of FMR, FMRC (2004), and funds advised by FMR. |
(2) FMR CO., INC. (FMRC)
FMRC provides investment advisory services to Fidelity Management & Research Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d |
Chairman of the Board and Director of FMRC, FMR, FRAC, and FIMM ; Chief Executive Officer, Chairman of the Board and Director of FMR Corp.; Trustee of funds advised by FMR. |
|
|
Abigail P. Johnson |
Previously served as President and Director of FMRC, FMR, and FIMM (2005), Senior Vice President of funds advised by FMR (2005), and Trustee of funds advised by FMR (2006). Currently a Director and Vice Chairman (2006) of FMR Corp., President of FESCO (2005), and President and a Director of FIIOC (2005). |
|
|
Peter S. Lynch |
Vice Chairman and Director of FMRC and FMR and member of the Advisory Board of funds advised by FMR (2003). |
|
|
Thomas Allen |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Paul Antico |
Vice President of FMRC, FMR, and a fund advised by FMR. |
|
|
Ramin Arani |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
John Avery |
Vice President of FMRC, FMR, and a fund advised by FMR.
|
David Bagnani |
Vice President of FMRC and FMR (2004). |
|
|
Robert Bertelson |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Stephen Binder |
Previously served as Vice President of FMRC, FMR, and a fund advised by FMR (2006). |
|
|
William Bower |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Philip L. Bullen |
Senior Vice President of FMRC and FMR; Vice President of certain Equity Funds advised by FMR; Previously served as President and Director of FRAC and FMR U.K. (2006), and Director of Strategic Advisers, Inc. (2005). |
|
|
Steve Buller |
Vice President of FMRC, FMR, and a fund advised by FMR. |
|
|
Steven Calhoun |
Vice President of FMRC, FMR (2005), and funds advised by FMR. |
|
|
John H. Carlson |
Senior Vice President of FMRC and FMR (2003); Vice President of funds advised by FMR; Previously served as Vice President of FMRC and FMR (2003). |
|
|
James Catudal |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Ren Y. Cheng |
Vice President of FMRC, FMR and funds advised by FMR; Previously served as Vice President of Strategic Advisers, Inc. (2005). |
|
|
C. Robert Chow |
Vice President of FMRC, FMR, and a fund advised by FMR. |
|
|
|
|
Dwight D. Churchill |
Executive Vice President of FMRC and FMR (2005); Vice President of Equity funds advised by FMR; Previously served as Senior Vice President of FMR (2005) and FIMM (2006).
|
William Carlyle Coash |
Vice President of FMRC and FMR (2006). |
|
|
Timothy Cohen |
Vice President of FMRC, FMR (2003), and funds advised by FMR. |
|
|
Katherine Collins |
Senior Vice President of FMRC and FMR (2003); Previously served as Vice President of FMRC and FMR (2003). |
|
|
Michael Connolly |
Vice President of FMRC and FMR. |
|
|
Brian B. Conroy |
Senior Vice President of FMRC and FMR (2006). |
|
|
Matthew Conti |
Vice President of FMRC, FMR (2003), and funds advised by FMR. |
|
|
William Danoff |
Senior Vice President of FMRC and FMR and Vice President of funds advised by FMR. |
|
|
Joseph Day |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Scott E. DeSano |
Previously served as Senior Vice President of FMRC and FMR (2005). |
|
|
Penelope Dobkin |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Julie Donovan |
Vice President of FMRC and FMR (2003). |
|
|
Walter C. Donovan |
Executive Vice President of FMRC and FMR (2005); Vice President of High Income funds advised by FMR; Previously served as Senior Vice President of FMRC and FMR (2005). |
|
|
Bettina Doulton |
Senior Vice President of FMRC and FMR; Previously served as Vice President of funds advised by FMR. |
|
|
Stephen DuFour |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
William Eigen |
Previously served as Vice President of FMRC, FMR, Strategic Advisers, Inc., and funds advised by FMR (2005).
|
Michael Elizondo |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Brian Peter Enyeart |
Vice President of FMRC and FMR (2006). |
|
|
Bahaa Fam |
Previously served as Vice President of FMRC and FMR (2006); Vice President of funds advised by FMR. |
|
|
Jeffrey Feingold |
Vice President of FMRC, FMR (2005), and a fund advised by FMR. |
|
|
Robert Scott Feldman |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Richard B. Fentin |
Senior Vice President of FMRC and FMR and Vice President of funds advised by FMR. |
|
|
Keith Ferguson |
Previously served as Vice President of FMRC and FMR (2005). |
|
|
Karen Firestone |
Previously served as Vice President of FMRC, FMR, and funds advised by FMR (2005). |
|
|
Jay Freedman |
Previously served as Assistant Secretary of FMRC, FMR, FDC and Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc. and FMR Corp. (2006). |
|
|
Matthey H. Friedman |
Vice President of FMRC and FMR (2006). |
|
|
Matthew Fruhan |
Vice President of FMRC, FMR (2006), and funds advised by FMR. |
|
|
Robert M. Gervis |
Vice President of FMRC and FMR (2006). |
|
|
Christopher J. Goudie |
Previously served as Vice President of FMRC and FMR (2006).
|
|
|
Boyce I. Greer |
Executive Vice President of FMRC and FMR (2005); Senior Vice President of FIMM (2006); Vice President of the Select, Asset Allocation, Fixed-Income, and Money Market funds advised by FMR.
|
|
|
Robert J. Haber |
Previously served as Senior Vice President of FMRC and FMR (2006); Vice President of a fund advised by FMR. |
|
|
Richard C. Habermann |
Senior Vice President of FMRC and FMR and Vice President of funds advised by FMR. |
|
|
John F. Haley |
Previously served as Vice President of FMRC and FMR (2007). |
|
|
Karen Hammond |
Previously served as Assistant Treasurer of FMRC, FMR, FMR U.K., FRAC, and FIMM, Vice President of FMR U.K., FRAC, FIMM, and Strategic Advisers, Inc., and Treasurer of Strategic Advisers, Inc. and FMR Corp.(2005); Executive Vice President of FMR (2005).
|
Brian J. Hanson |
Vice President of FMRC, FMR (2004), and funds advised by FMR.
|
James Harmon |
Vice President of FMRC, FMR, and a fund advised by FMR. |
|
|
Ian Hart |
Vice President of FMRC, FMR and a fund advised by FMR. |
|
|
Timothy Heffernan |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Thomas Hense |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Cesar Hernandez |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Bruce T. Herring |
Vice President of FMRC and of certain Equity funds advised by FMR; Senior Vice President of FMR (2006); Previously served as Vice President of FMR (2006). |
|
|
Adam Hetnarski |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
John J. Hitt |
Assistant Secretary of FMRC, FMR, FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., FDC, and FMR Corp. (2006). |
|
|
Frederick D. Hoff, Jr. |
Vice President of FMRC, FMR, and a fund advised by FMR. |
|
|
Brian Hogan |
Vice President of FMRC, FMR, and funds advised by FMR.
|
Michael T. Jenkins |
Vice President of FMRC and FMR (2004). |
|
|
Sonu Kalra |
Vice President of FMRC, FMR (2006), and a fund advised by FMR. |
|
|
Rajiv Kaul |
Previously served as Vice President of FMRC and FMR (2006); Vice President of funds advised by FMR. |
|
|
Steven Kaye |
Senior Vice President of FMRC and FMR and Vice President of a fund advised by FMR. |
|
|
Jonathan Kelly |
Vice President of FMRC, FMR (2003), and funds advised by FMR. |
|
|
William Kennedy |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Karen R. Korn |
Vice President of FMRC and FMR (2006). |
|
|
Deborah Foye Kuenstner |
Previously served as Senior Vice President of FMRC and FMR (2006). |
|
|
Harry W. Lange |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Harley Lank |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Thomas P. Lavin |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Robert A. Lawrence |
Senior Vice President of FMRC and FMR (2006); Vice President of High Income funds advised by FMR; Previously served as Director of Geode, President of Fidelity Strategic Investments, and Vice President of FMR Corp. (2005). |
|
|
Maxime Lemieux |
Previously served as Vice President of FMRC and FMR (2006); Vice President of a fund advised by FMR. |
|
|
Harris Leviton |
Previously served as Vice President of FMRC, FMR, and funds advised by FMR (2006). |
|
|
Douglas Lober |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Robert B. MacDonald |
Previously served as Vice President of FMRC and FMR (2004); Vice President of Strategic Advisers, Inc. (2004). |
|
|
Richard R. Mace |
Senior Vice President of FMRC and FMR and Vice President of funds advised by FMR. |
|
|
Charles A. Mangum |
Senior Vice President of FMRC and FMR (2005); Vice President of funds advised by FMR; Previously served as Vice President of FMRC and FMR (2005). |
|
|
Darren Maupin |
Vice President of FMRC, FMR (2006), and funds advised by FMR. |
|
|
Kevin McCarey |
Previously served as Vice President of FMRC, FMR, and funds advised by FMR (2006). |
|
|
Christine McConnell |
Vice President of FMRC, FMR (2003), and a fund advised by FMR. |
|
|
John B. McDowell |
Senior Vice President of FMRC and FMR and Vice President of certain Equity funds advised by FMR. |
|
|
Neal P. Miller |
Vice President of FMRC, FMR, and a fund advised by FMR.
|
Peter J. Millington |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Robert Minicus |
Vice President of FMRC and FMR (2006). |
|
|
Jeffrey Mitchell |
Vice President of FMRC and FMR (2003). |
|
|
Eric M. Mollenhauer |
Vice President of FMRC and FMR (2004).
|
Charles L. Myers |
Vice President of FMRC, FMR (2006), and a fund advised by FMR. |
|
|
Mark Notkin |
Vice President of FMRC, FMR, and funds advised by FMR.
|
Scott Offen |
Vice President of FMRC, FMR (2003), and a fund advised by FMR. |
|
|
Shep Perkins |
Vice President of FMRC (2004), FMR (2006), and a fund advised by FMR.
|
Stephen Petersen |
Senior Vice President of FMRC and FMR and Vice President of funds advised by FMR. |
|
|
John R. Porter |
Vice President of FMRC, FMR (2004), and funds advised by FMR.
|
Keith Quinton |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Alan Radlo |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Larry Rakers |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Kenneth A. Rathgeber |
Chief Compliance Officer of FMRC, FMR, FMR U.K., FRAC, FIMM, and Strategic Advisers, Inc. (2005). |
|
|
Kennedy Richardson |
Vice President of FMRC and FMR. |
|
|
Graeme Rockett |
Vice President of FMRC, FMR (2006), and funds advised by FMR. |
|
|
Eric D. Roiter |
Vice President, General Counsel, and Secretary of FMRC and FMR; Secretary of funds advised by FMR; Assistant Secretary of FMR U.K., FRAC, and FIMM; Previously served as Vice President and Secretary of FDC (2005). |
|
|
Stephen Rosen |
Vice President of FMRC, FMR (2004), and a fund advised by FMR.
|
Louis Salemy |
Previously served as Vice President of FMRC, FMR, and funds advised by FMR (2006). |
|
|
Lee H. Sandwen |
Previously served as Vice President of FMRC and FMR (2006). |
|
|
Peter Saperstone |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Andy H. Sassine |
Vice President of FMRC, FMR (2006), and a fund advised by FMR. |
|
|
Chrisopher Linden Sharpe |
Vice President of FMRC, FMR (2006), and funds advised by FMR. |
|
|
Jonathan Allen Shelon |
Vice President of FMRC, FMR (2006), and funds advised by FMR. |
|
|
J. Fergus Shiel |
Vice President of FMRC, FMR (2006), and funds advised by FMR. |
|
|
Beso Sikharulidze |
Previously served as Vice President of FMRC, FMR, and a fund advised by FMR (2005). |
|
|
Carol A. Smith-Fachetti |
Vice President of FMRC and FMR. |
|
|
Steven J. Snider |
Previously served as Vice President of FMRC, FMR, and a fund advised by FMR (2006). |
|
|
Mark P. Snyderman |
Vice President of FMRC, FMR (2004), and funds advised by FMR.
|
Thomas T. Soviero |
Senior Vice President of FMRC and FMR (2005); Vice President of funds advised by FMR; Previously served as Vice President of FMRC and FMR (2005). |
|
|
George Stairs |
Vice President of FMRC, FMR (2006), and a fund advised by FMR. |
|
|
Robert E. Stansky |
Senior Vice President of FMRC and FMR; Previously served as Vice President of a fund advised by FMR. |
|
|
Nicholas E. Steck |
Compliance Officer of FMRC (2006), FMR (2006), FMR U.K., FRAC, FIMM (2006), Strategic Advisers, Inc. (2005), and FMR Corp.; Senior Vice President of FMR (2006); Previously served as Vice President of FMR (2006). |
|
|
Cynthia C. Strauss |
Vice President of FMRC and FMR (2006). |
|
|
Susan Sturdy |
Assistant Secretary of FMRC, FMR, and FDC; Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., and FMR Corp. (2006); Previously served as Assistant Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., and FMR Corp. (2006). |
|
|
Yolanda Taylor |
Vice President of FMRC and FMR. |
|
|
Victor Thay |
Vice President of FMRC, FMR (2003), and a fund advised by FMR. |
|
|
Richard S. Thompson |
Vice President of FMRC, FMR (2006), and a fund advised by FMR. |
|
|
Joel C. Tillinghast |
Senior Vice President of FMRC, FMR, and Vice President of a fund advised by FMR. |
|
|
Matthew C. Torrey |
Vice President of FMRC and FMR (2004).
|
Jennifer Uhrig |
Vice President of FMRC and funds advised by FMR; Senior Vice President of FMR (2005); Previously served as Vice President of FMR (2005). |
|
|
George A. Vanderheiden |
Senior Vice President of FMRC and FMR. |
|
|
Robert B. Von Rekowsky |
Vice President of FMRC, FMR (2004), and funds advised by FMR.
|
Samuel Wald |
Vice President of FMRC, FMR (2006), and funds advised by FMR. |
|
|
J. Gregory Wass |
Assistant Treasurer of FMRC, FMR, FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., FDC and FMR Corp. (2003); Vice President, Taxation, of FMR Corp. |
|
|
Jason Weiner |
Vice President of FMRC, FMR, and funds advised by FMR. |
|
|
Eric Wetlaufer |
Senior Vice President of FMRC and FMR (2006); President and Director of FMR U.K. and FRAC (2006); Vice President of certain Equity funds advised by FMR. |
|
|
Steven S. Wymer |
Vice President of FMRC and a fund advised by FMR; Senior Vice President of FMR (2005); Previously served as Vice President of FMR (2005). |
|
|
JS Wynant |
Vice President of FMRC and FMR; Treasurer of FMRC, FMR, FMR U.K., FRAC, and FIMM.
|
Derek L. Young |
Vice President of FMRC, FMR (2004), and funds advised by FMR. |
(3) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.)
FMR U.K. provides investment advisory services to Fidelity Management & Research Company and Fidelity Management Trust Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years.
Simon Fraser |
Director, Chairman of the Board, Chief Executive Officer of FMR U.K.; Previously served as Director and President of Fidelity International Investment Advisors (FIIA) (2005), Director and Chief Executive Officer of Fidelity International Investment Advisors (U.K.) Limited (FIIA(U.K.)L) (2005), and Senior Vice President of FMR U.K. (2003). |
|
|
Eric Wetlaufer |
President and Director of FMR U.K. and FRAC (2006); Senior Vice President of FMR and FMRC (2006); Vice President of certain Equity funds advised by FMR. |
|
|
Philip Bullen |
Previously served as President and Director of FMR U.K. (2006), FRAC (2006), and Director of Strategic Advisers, Inc. (2005); Senior Vice President of FMR and FMRC; Vice President of certain Equity funds advised by FMR. |
|
|
Andrew Flaster |
Compliance Officer of FMR U.K.
|
Jay Freedman |
Previously served as Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., and FMR Corp., and Assistant Secretary of FMR, FMRC, and FDC (2006). |
|
|
Karen Hammond |
Previously served as Assistant Treasurer of FMR U.K., FMR, FMRC, FRAC, and FIMM, Vice President of FMR U.K., FRAC, FIMM, and Strategic Advisers, Inc., and Treasurer of Strategic Advisers, Inc. and FMR Corp. (2005); Executive Vice President of FMR (2005).
|
John J. Hitt |
Assistant Secretary of FMR U.K., FMR, FMRC, FRAC, FIMM, Strategic Advisers, Inc., FDC, and FMR Corp. (2006).
|
Kenneth A. Rathgeber |
Chief Compliance Officer of FMR U.K., FMR, FMRC, FRAC, FIMM, and Strategic Advisers, Inc. (2005).
|
Eric D. Roiter |
Assistant Secretary of FMR U.K., FRAC, and FIMM; Vice President, General Counsel, and Secretary of FMR and FMRC; Secretary of funds advised by FMR; Previously served as Vice President and Secretary of FDC (2005). |
Nicholas E. Steck |
Compliance Officer of FMR U.K., FMR (2006), FMRC (2006), FRAC, FIMM (2006), Strategic Advisers, Inc. (2005) and FMR Corp.; Senior Vice President of FMR (2006); Previously served as Vice President of FMR (2006). |
|
|
Susan Sturdy |
Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., and FMR Corp. (2006); Assistant Secretary of FMR, FMRC, and FDC; Previously served as Assistant Secretary of FMR U.K., FRAC, FIMM, Strategic Advisers, Inc., and FMR Corp. (2006). |
|
|
J. Gregory Wass |
Assistant Treasurer of FMR U.K., FMR, FMRC, FRAC, FIMM, Strategic Advisers, Inc., FDC, and FMR Corp. (2003); Vice President, Taxation, of FMR Corp. |
|
|
JS Wynant |
Treasurer of FMR U.K., FMR, FMRC, FRAC, and FIMM; Vice President of FMR and FMRC. |
|
|
(4) FIDELITY RESEARCH & ANALYSIS COMPANY (FRAC)
FRAC provides investment advisory services to Fidelity Management & Research Company, Fidelity Management Trust Company, FMR Co., Inc., and Fidelity Investments Money Management, Inc. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d |
Chairman of the Board and Director of FRAC, FMR, FMRC, and FIMM; Chief Executive Officer, Chairman of the Board and Director of FMR Corp.; Trustee of funds advised by FMR. |
|
|
Eric Wetlaufer |
President and Director of FRAC and FMR U.K. (2006); Senior Vice President of FMR and FMRC (2006); Vice President of certain Equity funds advised by FMR. |
|
|
Philip Bullen |
Previously served as President and Director of FRAC and FMR U.K. (2006) and Director of Strategic Advisers, Inc. (2005); Senior Vice President of FMR and FMRC; Vice President of certain Equity funds advised by FMR. |
|
|
Jay Freedman |
Previously served as Secretary of FRAC, FMR U.K., FIMM, Strategic Advisers, Inc., and FMR Corp., and Assistant Secretary of FMR, FMRC, and FDC (2006).
|
Karen Hammond |
Previously served as Assistant Treasurer of FRAC, FMR, FMRC, FMR U.K., and FIMM, Vice President of FRAC, FMR U.K., FIMM, and Strategic Advisers, Inc., and Treasurer of Strategic Advisers, Inc. and FMR Corp. (2005); Executive Vice President of FMR (2005).
|
John J. Hitt |
Assistant Secretary of FRAC, FMR, FMRC, FMR U.K., FIMM, Strategic Advisers, Inc., FDC, and FMR Corp. (2006).
|
|
|
Kenneth A. Rathgeber |
Chief Compliance Officer of FRAC, FMR, FMRC, FMR U.K., FIMM, and Strategic Advisers, Inc. (2005).
|
Eric D. Roiter |
Assistant Secretary of FRAC, FMR U.K., and FIMM; Vice President, General Counsel, and Secretary of FMR and FMRC; Secretary of funds advised by FMR; Previously served as Vice President and Secretary of FDC (2005). |
|
|
Nicholas E. Steck |
Compliance Officer of FRAC, FMR (2006), FMRC (2006), FMR U.K., FIMM (2006), Strategic Advisers, Inc. (2005) and FMR Corp.; Senior Vice President of FMR (2006); Previously served as Vice President of FMR (2006). |
|
|
Susan Sturdy |
Secretary of FRAC, FMR U.K., FIMM, Strategic Advisers, Inc., and FMR Corp. (2006); Assistant Secretary of FMR, FMRC, and FDC; Previously served as Assistant Secretary of FRAC, FMR U.K., FIMM, Strategic Advisers, Inc., and FMR Corp. (2006). |
|
|
J. Gregory Wass |
Assistant Treasurer of FRAC, FMR, FMRC, FMR U.K., FIMM, Strategic Advisers, Inc., FDC, and FMR Corp. (2003); Vice President, Taxation, of FMR Corp. |
|
|
JS Wynant |
Treasurer of FRAC, FMR, FMRC, FMR U.K., and FIMM; Vice President of FMR and FMRC. |
|
|
(5) FIDELITY INVESTMENTS MONEY MANAGEMENT, INC. (FIMM)
FIMM provides investment advisory services to Fidelity Management & Research Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d |
Chairman of the Board and Director of FIMM, FMR, FMRC, and FRAC; Chief Executive Officer, Chairman of the Board and Director of FMR Corp.; Trustee of funds advised by FMR. |
|
|
Abigail P. Johnson |
Previously served as President and Director of FIMM, FMR, and FMRC (2005), Senior Vice President of funds advised by FMR (2005), and Trustee of funds advised by FMR (2006). Currently a Director and Vice Chairman (2006) of FMR Corp., President of FESCO (2005), and President and a Director of FIIOC (2005). |
|
|
Dwight D. Churchill |
Previously served as Senior Vice President of FIMM (2006) and FMR (2005); Executive Vice President of FMR and FMRC (2005); Vice President of Equity funds advised by FMR. |
|
|
Jay Freedman |
Previously served as Secretary of FIMM, FMR U.K., FRAC, Strategic Advisers, Inc., and FMR Corp. and Assistant Secretary of FMR, FMRC, and FDC (2006). |
|
|
Boyce I. Greer |
Senior Vice President of FIMM (2006); Executive Vice President of FMR and FMRC (2005); Vice President of the Select, Asset Allocation, Fixed-Income, and Money Market funds advised by FMR. |
|
|
Karen Hammond |
Previously served as Assistant Treasurer of FIMM, FMR, FMRC, FMR U.K., and FRAC, Vice President of FIMM, FMR U.K., FRAC, and Strategic Advisers, Inc. and Treasurer of Strategic Advisers, Inc. and FMR Corp. (2005); Executive Vice President of FMR (2005). |
|
|
John J. Hitt |
Assistant Secretary of FIMM, FMR, FMRC, FMR U.K., FRAC, Strategic Advisers, Inc., FDC, and FMR Corp. (2006). |
|
|
Michael Kearney |
Assistant Treasurer of FIMM (2005). |
|
|
Charles S. Morrison |
Senior Vice President of FIMM (2003); Vice President of FMR and Money Market funds advised by FMR; Previously served as Vice President of FIMM (2003). |
|
|
David L. Murphy |
Senior Vice President of FIMM (2003); Executive Vice President of FMR (2005); Vice President of Fixed-Income and Money Market funds advised by FMR; Previously served as Vice President of FIMM (2003) and FMR (2005). |
|
|
Kenneth A. Rathgeber |
Chief Compliance Officer of FIMM, FMR, FMRC, FMR U.K., FRAC, and Strategic Advisers, Inc. (2005). |
|
|
Eric D. Roiter |
Assistant Secretary of FIMM, FMR U.K., and FRAC; Vice President, General Counsel, and Secretary of FMR and FMRC; Secretary of funds advised by FMR; Previously served as Vice President and Secretary of FDC (2005). |
|
|
Thomas J. Silvia |
Senior Vice President of FIMM (2005); Vice President of Fixed-Income funds advised by FMR. |
|
|
Nicholas E. Steck |
Compliance Officer of FIMM (2006), FMR (2006), FMRC (2006), FMR U.K., FRAC, Strategic Advisers, Inc. (2005) and FMR Corp.; Senior Vice President of FMR (2006); Previously served as Vice President of FMR (2006). |
|
|
Susan Sturdy |
Secretary of FIMM, FMR U.K., FRAC, Strategic Advisers, Inc., and FMR Corp. (2006); Assistant Secretary of FMR, FMRC, and FDC; Previously served as Assistant Secretary of FIMM, FMR U.K., FRAC, Strategic Advisers, Inc., and FMR Corp. (2006). |
|
|
J. Gregory Wass |
Assistant Treasurer of FIMM, FMR, FMRC, FMR U.K., FRAC, Strategic Advisers, Inc., FDC and FMR Corp. (2003); Vice President, Taxation, of FMR Corp. |
|
|
JS Wynant |
Treasurer of FIMM, FMR, FMRC, FMR U. K., and FRAC; Vice President of FMR and FMRC. |
|
|
(6) FIDELITY INTERNATIONAL INVESTMENT ADVISORS (FIIA)
The directors and officers of FIIA have held, during the past two fiscal years, the following positions of a substantial nature.
Michael Gordon |
President (2005) and Director (2002) of FIIA; President, Chief Executive Officer, and Director of FIIA (U.K.)L (2005). |
|
|
Chris Coombe |
Chief Financial Officer of FIIA (2006); Director of FIJ (2006). |
|
|
Simon Fraser |
Previously served as Director and President of FIIA (2005), Director and Chief Executive Officer of FIIA(U.K.)L (2005), and Senior Vice President of FMR U.K. (2003); Director, Chairman of the Board, Chief Executive Officer of FMR U.K. |
|
|
Brett Goodin |
Director of FIIA. |
|
|
Simon M. Haslam |
Director of FIIA; Previously served as Director of FIJ (2007). |
|
|
David Holland |
Previously served as Director and Vice President of FIIA (2006); Director of FIJ (2005). |
|
|
Kathryn Matthews |
Director of FIIA (2005). |
|
|
Samantha Miller |
Previously served as HK Compliance Officer of FIIA (2005). |
|
|
Frank Mutch |
Director of FIIA. |
|
|
Allan Pelvang |
Director and Vice President of FIIA (2006). |
|
|
Peter Phillips |
Previously served as Director of FIIA (2006). |
|
|
Rosalie Powell |
Assistant Secretary of FIIA. |
|
|
David J. Saul |
Director of FIIA. |
|
|
Graham Seed |
Secretary of FIIA (2004).
|
Andrew Steward |
Previously served as Chief Financial Officer of FIIA and Director of FIGEST (2006); Previously served as Director of FIIA(U.K.)L (2007).
|
Robert Stewart |
Director of FIIA (2004).
|
Ann Stock |
Chief Compliance Officer of FIIA (2005); Director of FIIA(U.K.)L (2003). |
|
|
Andrew Wells |
Director of FIIA (2005). |
|
|
Natalie Wilson |
Assistant Secretary of FIIA (2007). |
|
|
Nigel White |
Previously served as Chief Compliance Officer of FIIA (2005). |
(7) FIDELITY INTERNATIONAL INVESTMENT ADVISORS (U.K.) LIMITED (FIIA(U.K.)L)
The directors and officers of FIIA(U.K.)L have held, during the past two fiscal years, the following positions of a substantial nature.
Michael Gordon |
President, Chief Executive Officer, and Director of FIIA (U.K.)L (2005); President (2005) and Director (2002) of FIIA.
|
Simon Fraser |
Previously served as Director and Chief Executive Officer of FIIA(U.K.)L (2005), Director and President of FIIA (2005), and Senior Vice President of FMR U.K. (2003); Director, Chairman of the Board, Chief Executive Officer of FMR U.K.
|
Ian Jones |
Chief Compliance Officer of FIIA(U.K.)L (2004). |
|
|
Nicky Richards |
Director of FIIA(U.K.)L (2006) |
|
|
Andrew Steward |
Previously served as Director of FIIA(U.K.)L (2007); Previously served as Chief Financial Officer of FIIA and Director of FIGEST (2006). |
|
|
Ann Stock |
Director of FIIA(U.K.)L (2003); Chief Compliance Officer of FIIA (2005). |
|
|
Richard Wane |
Director of FIIA(U.K.)L (2003). |
|
|
Principal business addresses of the investment adviser, sub-advisers and affiliates.
Fidelity Management & Research Company (FMR)
245 Summer Street
Boston, MA 02210
FMR Co., Inc. (FMRC)
245 Summer Street
Boston, MA 02210
Fidelity Management & Research (U.K.) Inc. (FMR U.K.)
245 Summer Street
Boston, MA 02210
Fidelity Research & Analysis Company (FRAC)
245 Summer Street
Boston, MA 02210
Fidelity Investments Money Management, Inc. (FIMM)
One Spartan Way
Merrimack, NH 03054
Fidelity International Investment Advisors (FIIA)
Pembroke Hall,
42 Crow Lane,
Pembroke HM 19, Bermuda
Fidelity International Investment Advisors (U.K.) Limited (FIIA(U.K.)L)
25 Cannon Street
London, England EC4M5TA
Fidelity Investments Japan Limited (FIJ)
Shiroyama Trust Tower
4-3-1, Toranomon, Minato-ku,
Tokyo, Japan 105-6019
Strategic Advisers, Inc.
245 Summer Street
Boston, MA 02210
FMR Corp.
82 Devonshire Street
Boston, MA 02109
Fidelity Distributors Corporation (FDC)
82 Devonshire Street
Boston, MA 02109
Item 27. Principal Underwriters
(a) Fidelity Distributors Corporation (FDC) acts as distributor for all funds advised by FMR or an affiliate.
(b) |
|
|
Name and Principal |
Positions and Offices |
Positions and Offices |
Business Address* |
with Underwriter |
with Fund |
Steven Akin |
Director and President (2006) |
None |
Susan Boudrot |
Chief Compliance Officer (2004) |
None |
Scott Goebel |
Vice President and Secretary (2006) |
None |
Jane Greene |
Treasurer and Controller |
None |
John J. Hitt |
Assistant Secretary (2006) |
None |
Craig Huntley |
Executive Vice President (2006) |
None |
William F. Loehning |
Executive Vice President (2003) |
None |
Ellyn A. McColgan |
Director |
None |
Susan Sturdy |
Assistant Secretary |
None |
J. Gregory Wass |
Assistant Treasurer |
None |
* 82 Devonshire Street, Boston, MA
(c) Not applicable.
Item 28. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by Section 31(a) of the 1940 Act and the Rules promulgated thereunder are maintained by Fidelity Management & Research Company, Fidelity Service Company, Inc. or Fidelity Investments Institutional Operations Company, Inc., 82 Devonshire Street, Boston, MA 02109, or the funds' custodian, JPMorgan Chase Bank, 270 Park Avenue, New York, NY. The Bank of New York, headquartered in New York, also may serve as a special purpose custodian of certain assets in connection with repurchase agreement transactions.
Item 29. Management Services
Not applicable.
Item 30. Undertakings
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for the effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 83 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Boston, and Commonwealth of Massachusetts, on the 28th day of June 2007.
|
Fidelity Charles Street Trust |
||
|
By |
/s/Kimberley Monasterio |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| |
|
Kimberley Monasterio, President |
|
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.
(Signature) |
|
(Title) |
(Date) |
|
|
|
|
/s/Kimberley Monasterio |
|
President and Treasurer |
June 28, 2007 |
Kimberley Monasterio |
|
(Principal Executive Officer) |
|
|
|
|
|
/s/Joseph B. Hollis |
|
Chief Financial Officer |
June 28, 2007 |
Joseph B. Hollis |
|
(Principal Financial Officer) |
|
|
|
|
|
/s/Edward C. Johnson 3d |
(dagger) |
Trustee |
June 28, 2007 |
Edward C. Johnson 3d |
|
|
|
|
|
|
|
/s/Dennis J. Dirks |
* |
Trustee |
June 28, 2007 |
Dennis J. Dirks |
|
|
|
|
|
|
|
/s/Albert R. Gamper |
* |
Trustee |
June 28, 2007 |
Albert R. Gamper |
|
|
|
|
|
|
|
/s/George H. Heilmeier |
* |
Trustee |
June 28, 2007 |
George H. Heilmeier |
|
|
|
|
|
|
|
/s/James H. Keyes |
* |
Trustee |
June 28, 2007 |
James H. Keyes |
|
|
|
|
|
|
|
/s/Marie L. Knowles |
* |
Trustee |
June 28, 2007 |
Marie L. Knowles |
|
|
|
|
|
|
|
/s/Ned C. Lautenbach |
* |
Trustee |
June 28, 2007 |
Ned C. Lautenbach |
|
|
|
|
|
|
|
/s/Cornelia M. Small |
* |
Trustee |
June 28, 2007 |
Cornelia M. Small |
|
|
|
|
|
|
|
/s/William S. Stavropoulos |
* |
Trustee |
June 28, 2007 |
William S. Stavropoulos |
|
|
|
|
|
|
|
/s/Kenneth L. Wolfe |
* |
Trustee |
June 28, 2007 |
Kenneth L. Wolfe |
|
|
|
|
|
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* Signature affixed by Abigail P. Johnson, pursuant to a power of attorney dated April 1, 2007 and filed herewith.
* By: /s/Joseph R. Fleming
Joseph R. Fleming, pursuant to a power of attorney dated May 17, 2007 and filed herewith.
POWER OF ATTORNEY
I, the undersigned President and Director or Trustee, as the case may be, of the following investment companies:
Fidelity Aberdeen Street Trust Fidelity Advisor Series I Fidelity Advisor Series II Fidelity Advisor Series IV Fidelity Advisor Series VII Fidelity Advisor Series VIII Fidelity Beacon Street Trust Fidelity Boylston Street Trust Fidelity California Municipal Trust Fidelity California Municipal Trust II Fidelity Capital Trust Fidelity Central Investment Portfolios LLC Fidelity Charles Street Trust Fidelity Colchester Street Trust Fidelity Commonwealth Trust Fidelity Concord Street Trust Fidelity Congress Street Fund Fidelity Contrafund Fidelity Court Street Trust Fidelity Court Street Trust II Fidelity Covington Trust Fidelity Destiny Portfolios Fidelity Devonshire Trust Fidelity Exchange Fund Fidelity Financial Trust Fidelity Fixed-Income Trust Fidelity Garrison Street Trust Fidelity Hanover Street Trust Fidelity Hastings Street Trust |
Fidelity Hereford Street Trust Fidelity Income Fund Fidelity Investment Trust Fidelity Magellan Fund Fidelity Massachusetts Municipal Trust Fidelity Money Market Trust Fidelity Mt. Vernon Street Trust Fidelity Municipal Trust Fidelity Municipal Trust II Fidelity New York Municipal Trust Fidelity New York Municipal Trust II Fidelity Newbury Street Trust Fidelity Oxford Street Trust Fidelity Phillips Street Trust Fidelity Puritan Trust Fidelity Revere Street Trust Fidelity School Street Trust Fidelity Securities Fund Fidelity Select Portfolios Fidelity Summer Street Trust Fidelity Trend Fund Fidelity Union Street Trust Fidelity Union Street Trust II Variable Insurance Products Fund Variable Insurance Products Fund II Variable Insurance Products Fund III Variable Insurance Products Fund IV Variable Insurance Products Fund V |
in addition to any other investment company for which Fidelity Management & Research Company or an affiliate acts as investment adviser and for which the undersigned individual serves as President and Director or Trustee, (collectively, the "Funds"), hereby revoke all previous powers of attorney I have given to sign and otherwise act in my name and behalf in matters involving the Funds and hereby constitute and appoint Abigail P. Johnson my true and lawful attorney-in-fact, with full power of substitution, and with full power to said attorney-in-fact to sign for me and in my name in the appropriate capacity, all Registration Statements of the Funds on Form N-1A, Form N-8A, Form N-14, or any successors thereto, any and all subsequent Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said Registration Statements or any successors thereto, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and on my behalf in connection therewith as said attorney-in-fact deems necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. I hereby ratify and confirm all that said attorney-in-fact or her substitutes may do or cause to be done by virtue hereof. This power of attorney is effective for all documents filed on or after April 1, 2007.
WITNESS my hand on the date set forth below.
/s/Edward C. Johnson 3d |
April 1, 2007 |
Edward C. Johnson 3d |
|
POWER OF ATTORNEY
We, the undersigned Directors or Trustees, as the case may be, of the following investment companies:
Fidelity Aberdeen Street Trust Fidelity Advisor Series I Fidelity Advisor Series II Fidelity Advisor Series IV Fidelity Advisor Series VII Fidelity Advisor Series VIII Fidelity Beacon Street Trust Fidelity Boylston Street Trust Fidelity California Municipal Trust Fidelity California Municipal Trust II Fidelity Capital Trust Fidelity Central Investment Portfolios LLC Fidelity Charles Street Trust Fidelity Colchester Street Trust Fidelity Commonwealth Trust Fidelity Concord Street Trust Fidelity Congress Street Fund Fidelity Contrafund Fidelity Court Street Trust Fidelity Court Street Trust II Fidelity Covington Trust Fidelity Destiny Portfolios Fidelity Devonshire Trust Fidelity Exchange Fund Fidelity Financial Trust Fidelity Fixed-Income Trust Fidelity Garrison Street Trust Fidelity Hanover Street Trust Fidelity Hastings Street Trust |
Fidelity Hereford Street Trust Fidelity Income Fund Fidelity Investment Trust Fidelity Magellan Fund Fidelity Massachusetts Municipal Trust Fidelity Money Market Trust Fidelity Mt. Vernon Street Trust Fidelity Municipal Trust Fidelity Municipal Trust II Fidelity New York Municipal Trust Fidelity New York Municipal Trust II Fidelity Newbury Street Trust Fidelity Oxford Street Trust Fidelity Phillips Street Trust Fidelity Puritan Trust Fidelity Revere Street Trust Fidelity School Street Trust Fidelity Securities Fund Fidelity Select Portfolios Fidelity Summer Street Trust Fidelity Trend Fund Fidelity Union Street Trust Fidelity Union Street Trust II Variable Insurance Products Fund Variable Insurance Products Fund II Variable Insurance Products Fund III Variable Insurance Products Fund IV Variable Insurance Products Fund V |
plus any other investment company for which Fidelity Management & Research Company or an affiliate acts as investment adviser and for which the undersigned individuals serve as Directors or Trustees (collectively, the "Funds"), hereby revoke all previous powers of attorney we have given to sign and otherwise act in our names and behalf in matters involving the Funds and hereby constitute and appoint Joseph R. Fleming, John V. O'Hanlon, Robert W. Helm and Anthony H. Zacharski each of them singly, our true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for us and in our names in the appropriate capacities, all Registration Statements of the Funds on Form N-1A, Form N-8A, Form N-14, or any successors thereto, any and all subsequent Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said Registration Statements or any successors thereto, and any supplements or other instruments in connection therewith, and generally to do all such things in our names and behalf in connection therewith as said attorneys-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. We hereby ratify and confirm all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. This power of attorney is effective for all documents filed on or after May 17, 2007.
WITNESS our hands on this seventeenth day of May 2007.
/s/James C. Curvey |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
/s/Marie L. Knowles |
James C. Curvey |
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Marie L. Knowles |
/s/Dennis J. Dirks |
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/s/Ned C. Lautenbach |
Dennis J. Dirks |
|
Ned C. Lautenbach |
/s/Albert R. Gamper |
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/s/Cornelia M. Small |
Albert R. Gamper |
|
Cornelia M. Small |
/s/George H. Heilmeier |
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/s/William S. Stavropoulos |
George H. Heilmeier |
|
William S. Stavropoulos |
/s/James H. Keyes |
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/s/Kenneth L. Wolfe |
James H. Keyes |
|
Kenneth L. Wolfe |
POWER OF ATTORNEY
I, the undersigned Secretary of the investment companies for which Fidelity Management & Research Company or an affiliate acts as investment adviser (collectively, the "Funds"), hereby severally constitute and appoint Joseph R. Fleming, John V. O'Hanlon, Robert W. Helm and Anthony H. Zacharski, each of them singly, my true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate capacity, any and all representations with respect to the consistency of foreign language translation prospectuses with the original prospectuses filed in connection with the Post-Effective Amendments for the Funds as said attorneys-in-fact deem necessary or appropriate to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact, or their substitutes may do or cause to be done by virtue hereof. This power of attorney is effective for all documents filed on or after July 1, 2006.
WITNESS my hand on this first day of July, 2006.
/s/Eric D. Roiter
Eric D. Roiter
Exhibit (d)(5)
FORM OF
MANAGEMENT CONTRACT
between
FIDELITY CHARLES STREET TRUST:
FIDELITY ADVISOR ASSET MANAGER 70%
and
FIDELITY MANAGEMENT & RESEARCH COMPANY
AGREEMENT made this th day of , 200 , by and between Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity Advisor Asset Manager 70% (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below.
1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees.
(b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle.
The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract.
(c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio.
2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise.
3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee.
(a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule:
Average Group |
Annualized |
0 - $3 billion |
.5200% |
3 - 6 |
.4900 |
6 - 9 |
.4600 |
9 - 12 |
.4300 |
12 - 15 |
.4000 |
15 - 18 |
.3850 |
18 - 21 |
.3700 |
21 - 24 |
.3600 |
24 - 30 |
.3500 |
30 - 36 |
.3450 |
36 - 42 |
.3400 |
42 - 48 |
.3350 |
48 - 66 |
.3250 |
66 - 84 |
.3200 |
84 - 102 |
.3150 |
102 - 138 |
.3100 |
138 - 174 |
.3050 |
174 - 210 |
.3000 |
210 - 246 |
.2950 |
246 - 282 |
.2900 |
282 - 318 |
.2850 |
318 - 354 |
.2800 |
354 - 390 |
.2750 |
390 - 426 |
.2700 |
426 - 462 |
.2650 |
462 - 498 |
.2600 |
498 - 534 |
.2550 |
534 - 587 |
.2500 |
587 - 646 |
.2463 |
646 - 711 |
.2426 |
711 - 782 |
.2389 |
782 - 860 |
.2352 |
860 - 946 |
.2315 |
946 - 1,041 |
.2278 |
1,041 - 1,145 |
.2241 |
1,145 - 1,260 |
.2204 |
over 1,260 |
.2167 |
(b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be 0.30%.
The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month.
(c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month.
4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto.
5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument.
6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Contract may be modified by mutual consent subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment.
7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios.
8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Commission.
IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(6)
FORM OF
MANAGEMENT CONTRACT
between
FIDELITY CHARLES STREET TRUST:
FIDELITY GLOBAL BALANCED FUND
and
FIDELITY MANAGEMENT & RESEARCH COMPANY
AGREEMENT made as of this day of , 200 , by and between Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity Global Balanced Fund (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below.
1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Advisor. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees.
(b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle.
The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract.
(c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Advisor. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio.
2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise.
3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee.
(a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule:
Average Group Assets |
Annualized Rate |
0 - $3 billion |
.5200% |
3 - 6 |
.4900 |
6 - 9 |
.4600 |
9 - 12 |
.4300 |
12 - 15 |
.4000 |
15 - 18 |
.3850 |
18 - 21 |
.3700 |
21 - 24 |
.3600 |
24 - 30 |
.3500 |
30 - 36 |
.3450 |
36 - 42 |
.3400 |
42 - 48 |
.3350 |
48 - 66 |
.3250 |
66 - 84 |
.3200 |
84 - 102 |
.3150 |
102 - 138 |
.3100 |
138 - 174 |
.3050 |
174 - 210 |
.3000 |
210 - 246 |
.2950 |
246 - 282 |
.2900 |
282 - 318 |
.2850 |
318 - 354 |
.2800 |
354 - 390 |
.2750 |
390 - 426 |
.2700 |
426 - 462 |
.2650 |
462 - 498 |
.2600 |
498 - 534 |
.2550 |
534 - 587 |
.2500 |
587 - 646 |
.2463 |
646 - 711 |
.2426 |
711 - 782 |
.2389 |
782 - 860 |
.2352 |
860 - 946 |
.2315 |
946 - 1,041 |
.2278 |
1,041 - 1,145 |
.2241 |
1,145 - 1,260 |
.2204 |
Over 1,260 |
.2167 |
(b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be 0.45%.
The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month.
(c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month.
4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto.
5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument.
6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 2008, and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Contract may be modified by mutual consent subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment.
7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios.
8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Commission.
IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(24)
FORM OF
SUB-ADVISORY AGREEMENT
between
FIDELITY MANAGEMENT & RESEARCH COMPANY
and
FIDELITY MANAGEMENT & RESEARCH (U.K.) INC.
and
FIDELITY CHARLES STREET TRUST ON BEHALF OF
FIDELITY ADVISOR ASSET MANAGER 70%
AGREEMENT made this day of , 200 , by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Management & Research (U.K.) Inc. (hereinafter called the "Sub-Advisor"); and Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Fidelity Advisor Asset Manager 70% (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons have personnel in various locations throughout the world and have been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities.
(a) Investment Advice: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses.
(b) Investment Management: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees.
(c) Subsidiaries and Affiliates: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder.
2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable.
3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder.
(a) Investment Advisory Fee: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 110% of the Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph (a) of paragraph 1 of this Agreement. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time.
(b) Investment Management Fee: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers or reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements.
(c) Provision of Multiple Services: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph (1) for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefore; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise.
7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(25)
FORM OF
SUB-ADVISORY AGREEMENT
between
FIDELITY MANAGEMENT & RESEARCH COMPANY
and
FIDELITY MANAGEMENT & RESEARCH (Far East) INC.
and
FIDELITY CHARLES STREET TRUSTI ON BEHALF OF
FIDELITY ADVISOR ASSET MANAGER 70%
AGREEMENT made this day of , 200 , by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Management & Research (Far East) Inc. (hereinafter called the "Sub-Advisor"); and Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Fidelity Advisor Asset Manager 70% (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons have personnel in various locations throughout the world and have been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities.
(a) Investment Advice: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses.
(b) Investment Management: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money, or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees.
(c) Subsidiaries and Affiliates: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder.
2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable.
3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder.
(a) Investment Advisory Fee: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 105% of the Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph (a) of paragraph 1 of this Agreement. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time.
(b) Investment Management Fee: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers and reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements.
(c) Provision of Multiple Services: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefore; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise.
7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(26)
FORM OF
SUB-ADVISORY AGREEMENT
between
FIDELITY INVESTMENTS MONEY MANAGEMENT, INC.
and
FIDELITY MANAGEMENT & RESEARCH COMPANY
AGREEMENT made this day of , 200 , by and between Fidelity Investments Money Management, Inc., a New Hampshire corporation with principal offices at 1 Spartan Way, Merrimack, New Hampshire (hereinafter called the ´´Sub-Adviser") and Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the ´´Adviser").
WHEREAS the Adviser has entered into a Management Contract with Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the ´´Fund"), on behalf of Fidelity Advisor Asset Manager 70% (hereinafter called the ´´Portfolio"), pursuant to which the Adviser is to act as investment manager and adviser to the Portfolio, and
WHEREAS the Sub-Adviser was formed for the purpose of providing investment management of money market and fixed-income mutual funds, both taxable and tax-exempt, advising generally with respect to money market and fixed-income instruments, and managing or providing advice with respect to cash management.
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Adviser and the Sub-Adviser agree as follows:
1. (a) The Sub-Adviser shall, subject to the supervision of the Adviser, direct the investments of all or such portion of the Portfolio's assets as the Adviser shall designate in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of l940 and rules thereunder, as amended from time to time (the ´´l940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser or Sub-Adviser. The Sub-Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all personnel of the Sub-Adviser performing services for the Portfolio relating to research, statistical and investment activities. The Sub-Adviser is authorized, in its discretion and without prior consultation with the Portfolio or the Adviser, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees.
(b) The Sub-Adviser shall also furnish such reports, evaluations, information or analyses to the Fund and the Adviser as the Fund's Board of Trustees or the Adviser may request from time to time or as the Sub-Adviser may deem to be desirable. The Sub-Adviser shall make recommendations to the Fund's Board of Trustees with respect to Portfolio policies, and shall carry out such policies as are adopted by the Trustees. The Sub-Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Sub-Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Agreement and which are not otherwise furnished by the Adviser.
(c) The Sub-Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Adviser, which may include brokers or dealers affiliated with the Adviser or Sub-Adviser. The Sub-Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or the other accounts over which the Sub-Adviser, Adviser or their affiliates exercise investment discretion. The Sub-Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
2. As compensation for the services to be furnished by the Sub-Adviser hereunder, the Adviser agrees to pay the Sub-Adviser a monthly fee equal to 50% of the management fee which the Portfolio is obligated to pay the Adviser under the Portfolio's Management Contract with the Adviser in respect of that portion of the Portfolio's assets managed by the Sub-Adviser during such month. Such fee shall not be reduced to reflect expense reimbursements or fee waivers by the Adviser, if any, in effect from time to time.
3. It is understood that Trustees, officers, and shareholders of the Fund are or may be or become interested in the Adviser or the Sub-Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser or the Sub-Adviser are or may be or become similarly interested in the Fund, and that the Adviser or the Sub-Adviser may be or become interested in the Fund as a shareholder or otherwise.
4. It is understood that the Portfolio will pay all its expenses other than those expressly stated to be payable by the Sub-Adviser hereunder or by the Adviser under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are ´´interested persons" of the Fund, the Sub-Adviser or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto.
5. The Services of the Sub-Adviser to the Adviser are not to be deemed to be exclusive, the Sub-Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Adviser's ability to meet all of its obligations with respect to rendering investment advice hereunder. The Sub-Adviser shall for all purposes be an independent contractor and not an agent or employee of the Adviser or the Fund.
6. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Adviser, the Sub-Adviser shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
7. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 7, this Agreement shall continue in force until July 31, 2008, and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Fund's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretive releases of, the Commission.
(c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 7, the terms of any continuance or modification of the Agreement must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to such Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Adviser, the Sub-Adviser or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically upon the termination of the Management Contract between the Fund, on behalf of the Portfolio, and the Adviser. This Agreement shall terminate automatically in the event of its assignment.
8. The Sub-Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Fund and agrees that any obligations of the Fund or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Adviser seek satisfaction of any such obligation from the Trustees or any individual Trustee.
9. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS, WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS PROVISIONS THEREOF.
The terms ´´registered investment company," ´´vote of a majority of the outstanding voting securities," ´´assignment," and ´´interested persons," when used herein, shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(27)
FORM OF
SUB-ADVISORY AGREEMENT
between
FMR CO., INC. and
FIDELITY MANAGEMENT & RESEARCH COMPANY
AGREEMENT made this day of , 200 , by and between FMR Co., Inc., a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the ´´Sub-Adviser") and Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the ´´Adviser").
WHEREAS the Adviser has entered into a Management Contract with Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the ´´Fund"), on behalf of Fidelity Advisor Asset Manager 70% (hereinafter called the ´´Portfolio"), pursuant to which the Adviser is to act as investment manager and adviser to the Portfolio, and
WHEREAS the Sub-Adviser was formed for the purpose of providing investment management of equity and high income funds and advising generally with respect to equity and high income instruments.
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Adviser and the Sub-Adviser agree as follows:
1. (a) The Sub-Adviser shall, subject to the supervision of the Adviser, direct the investments of all or such portion of the Portfolio's assets as the Adviser shall designate in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the ´´1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser or Sub-Adviser. The Sub-Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all personnel of the Sub-Adviser performing services for the Portfolio relating to research, statistical and investment activities. The Sub-Adviser is authorized, in its discretion and without prior consultation with the Portfolio or the Adviser, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees.
(b) The Sub-Adviser shall also furnish such reports, evaluations, information or analyses to the Fund and the Adviser as the Fund's Board of Trustees or the Adviser may request from time to time or as the Sub-Adviser may deem to be desirable. The Sub-Adviser shall make recommendations to the Fund's Board of Trustees with respect to Portfolio policies, and shall carry out such policies as are adopted by the Trustees. The Sub-Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Sub-Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Agreement and which are not otherwise furnished by the Adviser.
(c) The Sub-Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Adviser, which may include brokers or dealers affiliated with the Adviser or Sub-Adviser. The Sub-Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or the other accounts over which the Sub-Adviser, Adviser or their affiliates exercise investment discretion. The Sub-Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
2. As compensation for the services to be furnished by the Sub-Adviser hereunder, the Adviser agrees to pay the Sub-Adviser a monthly fee equal to 50% of the management fee (including performance adjustments, if any) that the Portfolio is obligated to pay the Adviser under the Portfolio's Management Contract with the Adviser in respect of that portion of the Portfolio's assets managed by the Sub-Adviser during such month. Such fee shall not be reduced to reflect expense reimbursements or fee waivers by the Adviser, if any, in effect from time to time.
3. It is understood that Trustees, officers, and shareholders of the Fund are or may be or become interested in the Adviser or the Sub-Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser or the Sub-Adviser are or may be or become similarly interested in the Fund, and that the Adviser or the Sub-Adviser may be or become interested in the Fund as a shareholder or otherwise.
4. It is understood that the Portfolio will pay all its expenses other than those expressly stated to be payable by the Sub-Adviser hereunder or by the Adviser under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are ´´interested persons" of the Fund, the Sub-Adviser or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto.
5. The Services of the Sub-Adviser to the Adviser are not to be deemed to be exclusive, the Sub-Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Adviser's ability to meet all of its obligations with respect to rendering investment advice hereunder. The Sub-Adviser shall for all purposes be an independent contractor and not an agent or employee of the Adviser or the Fund.
6. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Adviser, the Sub-Adviser shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
7. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 7, this Agreement shall continue in force until July 2008, and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Fund's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretive releases of, the Commission.
(c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 7, the terms of any continuance or modification of the Agreement must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to such Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Adviser, the Sub-Adviser or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically upon the termination of the Management Contract between the Fund, on behalf of the Portfolio, and the Adviser. This Agreement shall terminate automatically in the event of its assignment.
8. The Sub-Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Fund and agrees that any obligations of the Fund or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Adviser seek satisfaction of any such obligation from the Trustees or any individual Trustee.
9. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS, WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS PROVISIONS THEREOF.
The terms ´´registered investment company," ´´vote of a majority of the outstanding voting securities," ´´assignment," and ´´interested persons," when used herein, shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibir (d)(28)
FORM OF
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY MANAGEMENT & RESEARCH COMPANY
AND
FIDELITY MANAGEMENT & RESEARCH (U.K.) INC.
AND
FIDELITY CHARLES STREET TRUST ON BEHALF OF
FIDELITY GLOBAL BALANCED FUND
AGREEMENT made this day of , 200 , by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Management & Research Company (U.K.) Inc. (hereinafter called the "Sub-Advisor"); and Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Fidelity Global Balanced Fund (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons have personnel in various locations throughout the world and have been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities.
(a) Investment Advice: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses.
(b) Investment Management: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees.
(c) Subsidiaries and Affiliates: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder.
2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable.
3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder.
(a) Investment Advisory Fee: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 110% of the Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph (a) of paragraph 1 of this Agreement. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time.
(b) Investment Management Fee: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers or reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements.
(c) Provision of Multiple Services: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph (1) for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise.
7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(29)
FORM OF
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY MANAGEMENT & RESEARCH COMPANY
AND
FIDELITY MANAGEMENT & RESEARCH (Far East) INC.
AND
FIDELITY CHARLES STREET TRUST ON BEHALF OF
FIDELITY GLOBAL BALANCED FUND
AGREEMENT made this day of , 200 , by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Management & Research (Far East) Inc. (hereinafter called the "Sub-Advisor"); and Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Fidelity Global Balanced Fund (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons have personnel in various locations throughout the world and have been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities.
(a) Investment Advice: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses.
(b) Investment Management: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money, or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees.
(c) Subsidiaries and Affiliates: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder.
2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable.
3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder.
(a) Investment Advisory Fee: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 105% of the Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph (a) of paragraph 1 of this Agreement. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time.
(b) Investment Management Fee: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers and reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements.
(c) Provision of Multiple Services: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise.
7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(30)
FORM OF
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY INTERNATIONAL INVESTMENT ADVISORS
AND
FIDELITY MANAGEMENT & RESEARCH COMPANY
AND
FIDELITY CHARLES STREET TRUST ON BEHALF OF FIDELITY GLOBAL BALANCED FUND
AGREEMENT made this day of , 200 , by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity International Investment Advisors, a Bermuda company with principal offices at Pembroke Hall, Pembroke, Bermuda (hereinafter called the "Sub-Advisor"); and Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Fidelity Global Balanced Fund (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons have personnel in various locations throughout the world and have been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities.
(a) Investment Advice: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses.
(b) Investment Management: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money, or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees.
(c) Subsidiaries and Affiliates: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder.
2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable.
3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder.
(a) Investment Advisory Fee: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to: (i) 30% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment advice divided by the net assets of the Portfolio for that month. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time.
(b) Investment Management Fee: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 57% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 57% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers and reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements.
(c) Provision of Multiple Services: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise.
7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(31)
FORM OF
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY INTERNATIONAL INVESTMENT ADVISORS (U.K.) LIMITED
AND
FIDELITY INTERNATIONAL INVESTMENT ADVISORS
AGREEMENT made this day of , 200 , by and between Fidelity International Investment Advisors (U.K.) Limited, 27-28 Lovat Lane, London, England (hereinafter called the "U.K. Sub-Advisor") and Fidelity International Investment Advisors, a Bermuda company with principal offices at Pembroke Hall, Pembroke, Bermuda (hereinafter called the "Sub-Advisor").
WHEREAS Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Advisor"), has entered into a Management Contract with Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust"), on behalf of Fidelity Global Balanced Fund (hereinafter called the "Portfolio"), pursuant to which the Advisor is to act as investment advisor to the Portfolio, and
WHEREAS, the Sub-Advisor has entered into a Sub-Advisory Agreement with the Advisor (the "Sub-Advisory Agreement") pursuant to which the Sub-Advisor, directly or through certain of its subsidiaries or other affiliated persons, shall provide investment advice or investment management and order execution services to the Portfolio, and
WHEREAS the U.K. Sub-Advisor has personnel in Western Europe and has been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located outside of North America, principally in the U.K. and Europe.
NOW THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Sub-Advisor and the U.K. Sub-Advisor agree as follows:
1. Duties: The Sub-Advisor may, in its discretion, appoint the U.K. Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio, in connection with the Sub-Advisor's duties under the Sub-Advisory Agreement. The services and the portion of the investments of the Portfolio advised or managed by the U.K. Sub-Advisor shall be as agreed upon from time to time by the Sub-Advisor and the U.K. Sub-Advisor. The U.K. Sub-Advisor shall pay the salaries and fees of all personnel of the U.K. Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities.
(a) Investment Advice: If and to the extent requested by the Sub-Advisor, the U.K. Sub-Advisor shall provide investment advice to the Sub-Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Sub-Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses.
(b) Investment Management: If and to the extent requested by the Sub-Advisor, the U.K. Sub-Advisor shall manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or the Advisor may impose with respect to the Portfolio by notice to the U.K. Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the U.K. Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the U.K. Sub-Advisor may select. The U.K. Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Sub-Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money or lending securities on behalf of the Portfolio. All investment management and any other activities of the U.K. Sub-Advisor shall at all times be subject to the control and direction of the Sub-Advisor, the Advisor and the Trust's Board of Trustees.
2. Information to be Provided to the Trust and the Advisor: The U.K. Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust, the Advisor, and the Sub-Advisor as the Trust's Board of Trustees, the Advisor or the Sub-Advisor may reasonably request from time to time, or as the U.K. Sub-Advisor may deem to be desirable.
3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the U.K. Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the U.K. Sub-Advisor, which may include brokers or dealers affiliated with the Advisor, Sub-Advisor or U.K. Sub-Advisor. The U.K. Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the U.K. Sub-Advisor, the Sub-Advisor or Advisor exercise investment discretion. The U.K. Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the U.K. Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the U.K. Sub-Advisor, the Sub-Advisor or the Advisor have with respect to accounts over which they exercise investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Sub-Advisor shall compensate the U.K. Sub-Advisor on the following basis for the services to be furnished hereunder.
(a) Sub-Advisory Fee: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Sub-Advisor agrees to pay the U.K. Sub-Advisor a monthly sub-advisory fee (the "U.K. Sub-Advisory Fee"). The U.K. Sub-Advisory Fee shall be equal to 110% of the U.K. Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph (a) of paragraph 1 of this Agreement. The U.K. Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Sub-Advisor or Advisor, if any, in effect from time to time.
(b) Investment Management Fee: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor agrees to pay the U.K. Sub-Advisor a monthly investment management fee (the "UK Investment Management Fee"). The UK Investment Management Fee shall be equal to a percentage of the monthly average net assets of the Portfolio managed by the U.K. Sub-Advisor pursuant to subparagraph 1(b) of this Agreement, calculated on a cumulative basis based upon a monthly average of the aggregate of all net assets managed by the U.K. Sub-Advisor on behalf of the Sub-Advisor pursuant to sub-advisory arrangements ("Average Group Assets") in accordance with the following fee schedule:
Average Group Assets |
Annualized Fee Rate |
$0 - $500 million |
0.30% |
$500 million - $1 billion |
0.25% |
over $1 billion |
0.20% |
, provided that in no event shall the UK Investment Management Fee exceed 50% of the sub-advisory fees received by the Sub-Advisor in respect of the Portfolio from the Advisor pursuant to the Sub-Advisory Agreement, and provided further that, for purposes of calculating the fee rates set forth above, any assets managed by the U.K. Sub-Advisor on behalf of the Sub-Advisor pursuant to a sub-advisory arrangement where a fee cap is being applied to reduce the U.K. Sub-Advisor's fee to less than the rates set forth above shall be excluded from Average Group Assets.
(c) Provision of Multiple Services: If the U.K. Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the U.K. Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the U.K. Sub-Advisor hereunder, by the Sub-Advisor under the Sub-Advisory Agreement or by the Advisor under the Management Contract with the Portfolio.
6. Interested Persons: It is understood that the Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor, the Sub-Advisor or the U.K. Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor, the Sub-Advisor or the U.K. Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor, the Sub-Advisor or the U.K. Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise.
7. Services to Other Companies or Accounts: The Services of the U.K. Sub-Advisor to the Sub-Advisor are not to be deemed to be exclusive, the U.K. Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the U.K. Sub-Advisor's ability to meet all of its obligations hereunder. The U.K. Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor, the Sub-Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the U.K. Sub-Advisor, the U.K. Sub-Advisor shall not be subject to liability to the Sub-Advisor, the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Advisor, the Sub-Advisor, the U.K. Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment.
10. Limitation of Liability: The U.K. Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the U.K. Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the U.K. Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(32)
FORM OF
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY INVESTMENTS JAPAN LIMITED
AND
FIDELITY INTERNATIONAL INVESTMENT ADVISORS
AGREEMENT made this day of , 200 , by and between Fidelity International Investment Advisors, a Bermuda company with principal offices at Pembroke Hall, 42 Crow Lane, Pembroke, HM 19, Bermuda (hereinafter called the "Sub-Advisor"), and Fidelity Investments Japan Limited, a Japanese company with principal offices at Across Shinkawa Bldg. 8-8, Shinkawa 1-chome, Chuo-ku, Tokyo 104-0033, Japan (hereinafter called the "Japan Sub-Advisor").
WHEREAS, Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Advisor"), has entered into a Management Contract with Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust"), on behalf of Fidelity Global Balanced Fund} (hereinafter called the "Portfolio"), pursuant to which the Advisor has agreed to act as investment advisor to the Portfolio; and
WHEREAS, the Sub-Advisor has entered into a Sub-Advisory Agreement with the Advisor (the "Sub-Advisory Agreement") pursuant to which the Sub-Advisor, directly or through certain of its subsidiaries or other affiliated persons, shall provide investment advice or investment management and order execution services to the Portfolio; and
WHEREAS, the Japan Sub-Advisor has personnel in Japan and has been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located outside of North America, principally in Japan and the Far East;
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Sub-Advisor and the Japan Sub-Advisor agree as follows:
1. Duties: The Sub-Advisor may, in its discretion, appoint the Japan Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio, in connection with the Sub-Advisor's duties under the Sub-Advisory Agreement. The services and the portion of the investments of the Portfolio to be advised or managed by the Japan Sub-Advisor shall be as agreed upon from time to time by the Sub-Advisor and the Japan Sub-Advisor. The Japan Sub-Advisor shall pay the salaries and fees of all personnel of the Japan Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities.
(a) Investment Advice: If and to the extent requested by the Sub-Advisor, the Japan Sub-Advisor shall provide investment advice to the Sub-Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Sub-Advisor such factual information, research reports and investment recommendations as the Sub-Advisor may reasonably require. Such information may include written and oral reports and analyses.
(b) Investment Management: If and to the extent requested by the Sub-Advisor, the Japan Sub-Advisor shall, subject to the supervision of the Sub-Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the"1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or the Advisor may impose with respect to the Portfolio by notice to the Japan Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Japan Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Japan Sub-Advisor may select. The Japan Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Sub-Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money, or lending securities on behalf of the Portfolio. All investment management and any other activities of the Japan Sub-Advisor shall at all times be subject to the control and direction of the Sub-Advisor, the Advisor and the Trust's Board of Trustees.
(c) Subsidiaries and Affiliates: The Japan Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Japan Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder.
2. Information to be Provided to the Trust and the Advisor: The Japan Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust, the Advisor and the Sub-Advisor as the Trust's Board of Trustees, the Advisor or the Sub-Advisor may reasonably request from time to time, or as the Japan Sub-Advisor may deem to be desirable.
3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Japan Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Japan Sub-Advisor, which may include brokers or dealers affiliated with the Advisor, the Sub-Advisor or the Japan Sub-Advisor. The Japan Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Japan Sub-Advisor, the Sub-Advisor or the Advisor exercise investment discretion. The Japan Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Japan Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Japan Sub-Advisor, the Sub-Advisor or the Advisor have with respect to accounts over which they exercise investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Sub-Advisor shall compensate the Japan Sub-Advisor on the following basis for the services to be furnished hereunder.
(a) Sub-Advisory Fee: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Sub-Advisor agrees to pay the Japan Sub-Advisor a monthly sub-advisory fee (the "Japan Sub-Advisory Fee"). The Japan Sub-Advisory Fee shall be equal to 105% of the Japan Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph 1(a) of this Agreement. The Japan Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Sub-Advisor or the Advisor, if any, in effect from time to time.
(b) Investment Management Fee: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor agrees to pay the Japan Sub-Advisor a monthly investment management fee (the "Japan Investment Management Fee"). The Japan Investment Management Fee shall be equal to a percentage of the monthly average net assets of the Portfolio managed by the Japan Sub-Advisor pursuant to subparagraph 1(b) of this Agreement, calculated on a cumulative basis based upon a monthly average of the aggregate of all net assets managed by the Japan Sub-Advisor on behalf of the Sub-Advisor pursuant to sub-advisory arrangements ("Average Group Assets") in accordance with the following fee schedule:
Average Group Assets |
Annualized Fee Rate |
$0 - $200 million |
0.30% |
$200 million - $500 million |
0.25% |
over $500 million |
0.20% |
, provided that in no event shall the Japan Investment Management Fee exceed 50% of the sub-advisory fees received by the Sub-Advisor in respect of the Portfolio from the Advisor pursuant to the Sub-Advisory Agreement, and provided further that, for purposes of calculating the fee rates set forth above, any assets managed by the Japan Sub-Advisor on behalf of the Sub-Advisor pursuant to a sub-advisory arrangement where a fee cap is being applied to reduce the Japan Sub-Advisor's fee to less than the rates set forth above shall be excluded from Average Group Assets.
(c) Provision of Multiple Services: If the Japan Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the Japan Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Japan Sub-Advisor hereunder, by the Sub-Advisor under the Sub-Advisor Agreement, or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Japan Sub-Advisor, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor, the Sub-Advisor or the Japan Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Sub-Advisor or the Japan Sub-Advisor are or may be or become similarly interested in the Trust, and that the Sub-Advisor, the Advisor or the Japan Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise.
7. Services to Other Companies or Accounts: The services of the Japan Sub-Advisor to the Sub-Advisor are not to be deemed to be exclusive, the Japan Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Japan Sub-Advisor's ability to meet all of its obligations hereunder. The Japan Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor, the Sub-Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Japan Sub-Advisor, the Japan Sub-Advisor shall not be subject to liability to the Sub-Advisor, the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 2008 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission.
(c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Advisor, the Sub-Advisor, the Japan Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment.
10. Limitation of Liability: The Japan Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Japan Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Japan Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(33)
FORM OF
SUB-ADVISORY AGREEMENT
between
FMR CO., INC. and
FIDELITY MANAGEMENT & RESEARCH COMPANY
AGREEMENT made this day of , 200 , by and between FMR Co., Inc., a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the ´´Sub-Adviser") and Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the ´´Adviser").
WHEREAS the Adviser has entered into a Management Contract with Fidelity Charles Street Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the ´´Fund"), on behalf of Fidelity Global Balanced Fund (hereinafter called the ´´Portfolio"), pursuant to which the Adviser is to act as investment manager and adviser to the Portfolio, and
WHEREAS the Sub-Adviser was formed for the purpose of providing investment management of equity and high income funds and advising generally with respect to equity and high income instruments.
NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Adviser and the Sub-Adviser agree as follows:
1. (a) The Sub-Adviser shall, subject to the supervision of the Adviser, direct the investments of all or such portion of the Portfolio's assets as the Adviser shall designate in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the ´´1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser or Sub-Adviser. The Sub-Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all personnel of the Sub-Adviser performing services for the Portfolio relating to research, statistical and investment activities. The Sub-Adviser is authorized, in its discretion and without prior consultation with the Portfolio or the Adviser, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees.
(b) The Sub-Adviser shall also furnish such reports, evaluations, information or analyses to the Fund and the Adviser as the Fund's Board of Trustees or the Adviser may request from time to time or as the Sub-Adviser may deem to be desirable. The Sub-Adviser shall make recommendations to the Fund's Board of Trustees with respect to Portfolio policies, and shall carry out such policies as are adopted by the Trustees. The Sub-Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Sub-Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Agreement and which are not otherwise furnished by the Adviser.
(c) The Sub-Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Adviser, which may include brokers or dealers affiliated with the Adviser or Sub-Adviser. The Sub-Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or the other accounts over which the Sub-Adviser, Adviser or their affiliates exercise investment discretion. The Sub-Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio.
2. As compensation for the services to be furnished by the Sub-Adviser hereunder, the Adviser agrees to pay the Sub-Adviser a monthly fee equal to 50% of the management fee (including performance adjustments, if any) that the Portfolio is obligated to pay the Adviser under the Portfolio's Management Contract with the Adviser in respect of that portion of the Portfolio's assets managed by the Sub-Adviser during such month. Such fee shall not be reduced to reflect expense reimbursements or fee waivers by the Adviser, if any, in effect from time to time.
3. It is understood that Trustees, officers, and shareholders of the Fund are or may be or become interested in the Adviser or the Sub-Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser or the Sub-Adviser are or may be or become similarly interested in the Fund, and that the Adviser or the Sub-Adviser may be or become interested in the Fund as a shareholder or otherwise.
4. It is understood that the Portfolio will pay all its expenses other than those expressly stated to be payable by the Sub-Adviser hereunder or by the Adviser under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are ´´interested persons" of the Fund, the Sub-Adviser or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto.
5. The Services of the Sub-Adviser to the Adviser are not to be deemed to be exclusive, the Sub-Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Adviser's ability to meet all of its obligations with respect to rendering investment advice hereunder. The Sub-Adviser shall for all purposes be an independent contractor and not an agent or employee of the Adviser or the Fund.
6. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Adviser, the Sub-Adviser shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.
7. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 7, this Agreement shall continue in force until July 2008, and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Fund's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretive releases of, the Commission.
(c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 7, the terms of any continuance or modification of the Agreement must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to such Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval.
(d) Either the Adviser, the Sub-Adviser or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically upon the termination of the Management Contract between the Fund, on behalf of the Portfolio, and the Adviser. This Agreement shall terminate automatically in the event of its assignment.
8. The Sub-Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Fund and agrees that any obligations of the Fund or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Adviser seek satisfaction of any such obligation from the Trustees or any individual Trustee.
9. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS, WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS PROVISIONS THEREOF.
The terms ´´registered investment company," ´´vote of a majority of the outstanding voting securities," ´´assignment," and ´´interested persons," when used herein, shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above.
SIGNATURE LINES OMITTED
Exhibit (d)(38)
Schedule A
FORM OF
Trusts and Portfolios covered by the Sub-Advisory Agreement,
dated as of August 1, 2001,
between
Fidelity Management & Research (Far East), Inc.
(Currently Fidelity Research & Analysis Company)
and
Fidelity Investments Japan Limited
Name of Trust |
Name of Portfolio |
Type of Fund |
Effective Date |
Fidelity Charles Street Trust |
Fidelity Advisor Asset Manager 70% |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Balanced Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Dividend Growth Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Growth Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Income Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Value Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Fifty Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Growth & Income Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Growth Opportunities Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Large Cap Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Leveraged Company Stock Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Small Cap Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Strategic Growth Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Value Strategies Fund |
Equity |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Floating Rate High Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Advantage Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Intermediate Bond Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap II Fund |
Equity |
07/15/04 |
Fidelity Advisor Series II |
Fidelity Advisor Mortgage Securities Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series II |
Fidelity Advisor Short Fixed-Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series II |
Fidelity Advisor Strategic Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series I |
Fidelity Advisor Value Fund |
Equity |
11/20/03 |
Fidelity Advisor Series I |
Fidelity Real Estate High Income Fund |
Fixed-Income |
12/01/02 |
Fidelity Advisor Series VII |
Fidelity Advisor Biotechnology Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII
|
Fidelity Advisor Communications Equipment Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Consumer Discretionary Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Electronics Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Energy Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Financial Services Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Health Care Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Industrials Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Real Estate Fund |
Equity |
07/18/02 |
Fidelity Advisor Series VII |
Fidelity Advisor Technology Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VII |
Fidelity Advisor Utilities Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Diversified International Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Asia Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Fund |
Equity |
09/18/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Europe Capital Appreciation Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Global Capital Appreciation Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor International Capital Appreciation Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Japan Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Korea Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Latin America Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Overseas Fund |
Equity |
08/01/01 |
Fidelity Advisor Series VIII |
Fidelity Advisor Value Leaders Fund |
Equity |
04/17/03 |
Fidelity Beacon Street Trust |
Fidelity Advisor Tax Managed Stock Fund |
Equity |
08/01/01 |
Fidelity Beacon Street Trust |
Fidelity Tax Managed Stock Fund |
Equity |
08/01/01 |
Fidelity Capital Trust |
Fidelity Capital Appreciation Fund |
Equity |
08/01/01 |
Fidelity Capital Trust |
Fidelity Disciplined Equity Fund |
Equity |
08/01/01 |
Fidelity Capital Trust |
Fidelity Focused Stock Fund |
Equity |
08/01/01 |
Fidelity Capital Trust |
Fidelity Small Cap Independence Fund |
Equity |
08/01/01 |
Fidelity Capital Trust |
Fidelity Stock Selector |
Equity |
08/01/01 |
Fidelity Capital Trust |
Fidelity Value Fund |
Equity |
08/01/01 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 20% |
Equity |
08/01/01 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 50% |
Equity |
08/01/01 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 70% |
Equity |
08/01/01 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 85% |
Equity |
08/01/01 |
Fidelity Charles Street Trust |
Fidelity Broad Market Opportunities Fund |
Equity |
|
Fidelity Fixed-Income Trust |
Fidelity Intermediate Bond Fund |
Fixed-Income |
08/01/01 |
Fidelity Commonwealth Trust |
Fidelity Large Cap Stock Fund |
Equity |
08/01/01 |
Fidelity Commonwealth Trust |
Fidelity Mid Cap Stock Fund |
Equity |
08/01/01 |
Fidelity Commonwealth Trust |
Fidelity NASDAQ Composite Index Fund |
Equity |
08/11/03 |
Fidelity Commonwealth Trust |
Fidelity NASDAQ Composite Tracking Stock |
Equity |
08/11/03 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Retirement Fund |
Equity |
08/01/01 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Stock Fund |
Equity |
08/01/01 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Real Return Fund |
Fixed-Income |
07/21/05 |
Fidelity Contrafund |
Fidelity Advisor New Insights Fund |
Equity |
07/17/03 |
Fidelity Contrafund |
Fidelity Contrafund |
Equity |
08/01/01 |
Fidelity Destiny Portfolios |
Fidelity Advisor Capital Development Fund |
Equity |
08/01/01 |
Fidelity Destiny Portfolios |
Fidelity Advisor Diversified Stock Fund |
Equity |
08/01/01 |
Fidelity Devonshire Trust |
Fidelity Equity-Income Fund |
Equity |
08/01/01 |
Fidelity Devonshire Trust |
Fidelity Large Cap Growth Fund |
Equity |
10/18/01 |
Fidelity Devonshire Trust |
Fidelity Large Cap Value Fund |
Equity |
10/18/01 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Growth Fund |
Equity |
10/18/01 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Value Fund |
Equity |
10/18/01 |
Fidelity Devonshire Trust |
Fidelity Real Estate Investment Portfolio |
Equity |
08/01/01 |
Fidelity Devonshire Trust |
Fidelity Utilities Fund |
Equity |
08/01/01 |
Fidelity Financial Trust |
Fidelity Convertible Securities Fund |
Equity |
08/01/01 |
Fidelity Financial Trust |
Fidelity Equity-Income II Fund |
Equity |
08/01/01 |
Fidelity Financial Trust |
Fidelity Independence Fund |
Equity |
08/01/01 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Dividend & Income Fund |
Fixed-Income |
11/20/03 |
Fidelity Summer Street Trust |
Fidelity Focused High Income Fund |
Fixed-Income |
07/15/04 |
Fidelity Summer Street Trust |
Fidelity High Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Fixed-Income Trust |
Fidelity Inflation-Protected Bond Fund |
Fixed-Income |
06/20/02 |
Fidelity Fixed-Income Trust |
Fidelity Investment Grade Bond Fund |
Fixed-Income |
08/01/01 |
Fidelity Fixed-Income Trust |
Fidelity Short-Term Bond Fund |
Fixed-Income |
08/01/01 |
Fidelity Hastings Street Trust |
Fidelity Fifty |
Equity |
08/01/01 |
Fidelity Hastings Street Trust |
Fidelity Fund |
Equity |
08/01/01 |
Fidelity Hastings Street Trust |
Fidelity Growth & Income II Portfolio |
Equity |
08/01/01 |
Fidelity Hastings Street Trust |
Fidelity Growth Discovery Fund |
Equity |
08/01/01 |
Fidelity Income Fund |
Fidelity Ginnie Mae Fund |
Fixed-Income |
08/01/01 |
Fidelity Income Fund |
Fidelity Intermediate Government Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Income Fund |
Fidelity Total Bond Fund |
Fixed-Income |
09/19/02 |
Fidelity Investment Trust |
Fidelity Aggressive International Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Canada Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity China Region Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Diversified International Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Emerging Markets Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Europe Capital Appreciation Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Europe Fund |
Equity |
08/01/01 |
Fidelity Charles Street Trust |
Fidelity Global Balanced Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity International Discovery Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity International Small Cap Fund |
Equity |
07/18/02 |
Fidelity Investment Trust |
Fidelity International Small Cap Opportunities Fund |
Equity |
07/21/05 |
Fidelity Investment Trust |
Fidelity International Value Fund |
Equity |
05/18/06 |
Fidelity Investment Trust |
Fidelity Japan Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Japan Smaller Companies Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Latin America Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Nordic Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Overseas Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Pacific Basin Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Southeast Asia Fund |
Equity |
08/01/01 |
Fidelity Investment Trust |
Fidelity Worldwide Fund |
Equity |
08/01/01 |
Fidelity Magellan Fund |
Fidelity Magellan Fund |
Equity |
08/01/01 |
Fidelity Mt. Vernon Street Trust |
Fidelity Aggressive Growth Fund |
Equity |
08/01/01 |
Fidelity Mt. Vernon Street Trust |
Fidelity Growth Company Fund |
Equity |
08/01/01 |
Fidelity Mt. Vernon Street Trust |
Fidelity New Millennium Fund |
Equity |
08/01/01 |
Fidelity Puritan Trust |
Fidelity Balanced Fund |
Equity |
08/01/01 |
Fidelity Puritan Trust |
Fidelity Low-Priced Stock Fund |
Equity |
08/01/01 |
Fidelity Puritan Trust |
Fidelity Puritan Fund |
Equity |
08/01/01 |
Fidelity Puritan Trust |
Fidelity Value Discovery Fund |
Equity |
11/14/02 |
Fidelity Summer Street Trust |
Fidelity New Markets Income Fund |
Fixed-Income |
08/01/01 |
Fidelity School Street Trust |
Fidelity Strategic Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Securities Fund |
Fidelity Advisor Aggressive Growth Fund |
Equity |
08/01/01 |
Fidelity Securities Fund |
Fidelity Blue Chip Growth Fund |
Equity |
08/01/01 |
Fidelity Securities Fund |
Fidelity Blue Chip Value Fund |
Equity |
04/17/03 |
Fidelity Securities Fund |
Fidelity Dividend Growth Fund |
Equity |
08/01/01 |
Fidelity Securities Fund |
Fidelity Growth & Income Portfolio |
Equity |
08/01/01 |
Fidelity Securities Fund |
Fidelity International Real Estate Fund |
Equity |
07/15/04 |
Fidelity Securities Fund |
Fidelity Leveraged Company Stock Fund |
Equity |
08/01/01 |
Fidelity Securities Fund |
Fidelity OTC Portfolio |
Equity |
08/01/01 |
Fidelity Securities Fund |
Fidelity Real Estate Income Fund |
Equity |
01/16/03 |
Fidelity Securities Fund |
Fidelity Small Cap Growth Fund |
Equity |
09/16/04 |
Fidelity Securities Fund |
Fidelity Small Cap Value Fund |
Equity |
09/16/04 |
Fidelity Select Portfolios |
Air Transportation Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Automotive Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Banking Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Biotechnology Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Brokerage and Investment Management Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Chemicals Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Communications Equipment Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Computers Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Construction and Housing Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Consumer Discretionary Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Consumer Staples Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Defense and Aerospace Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Electronics Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Energy Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Energy Service Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Environmental Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Financial Services Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Gold Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Health Care Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Home Finance Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Industrial Equipment Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Industrials Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Insurance Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
IT Services Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Leisure Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Materials Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Medical Delivery Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Medical Equipment and Systems Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Multimedia Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Natural Gas Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Natural Resources Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Networking and Infrastructure Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Paper and Forest Products Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Pharmaceuticals Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Retailing Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Software and Computer Services Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Technology Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Telecommunications Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Transportation Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Utilities Growth Portfolio |
Equity |
08/01/01 |
Fidelity Select Portfolios |
Wireless Portfolio |
Equity |
08/01/01 |
Fidelity Summer Street Trust |
Fidelity Capital & Income Fund |
Fixed-Income |
08/01/01 |
Fidelity Trend Fund |
Fidelity Trend Fund |
Equity |
08/01/01 |
Fidelity Summer Street Trust |
Fidelity Export and Multinational Fund |
Equity |
08/01/01 |
Variable Insurance Products Fund |
Equity-Income Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
Growth Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
High Income Portfolio |
Fixed-Income |
08/01/01 |
Variable Insurance Products Fund |
Overseas Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund |
Value Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund V |
Asset Manager Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund V |
Asset Manager: Growth Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund II |
Contrafund Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund III |
Aggressive Growth Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund III |
Balanced Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund III |
Dynamic Capital Appreciation Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund III |
Growth & Income Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund III |
Growth Opportunities Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund III |
Mid Cap Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund III |
Value Strategies Portfolio |
Equity |
02/14/02 |
Variable Insurance Products Fund IV |
Consumer Discretionary Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund IV |
Consumer Staples Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Energy Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund IV |
Financial Services Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund IV |
Growth Stock Portfolio |
Equity |
11/14/02 |
Variable Insurance Products Fund IV |
Health Care Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund IV |
Industrials Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund IV |
International Capital Appreciation Portfolio |
Equity |
11/18/04 |
Variable Insurance Products Fund IV |
Materials Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Real Estate Portfolio |
Equity |
07/18/02 |
Variable Insurance Products Fund IV |
Strategic Income Portfolio |
Fixed-Income |
11/20/03 |
Variable Insurance Products Fund IV |
Technology Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund IV |
Telecommunications Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Utilities Portfolio |
Equity |
08/01/01 |
Variable Insurance Products Fund IV |
Value Leaders Portfolio |
Equity |
04/17/03 |
[SIGNATURE LINES OMITTED]
Exhibit (d)(40)
Note: This Schedule A lists the trusts and portfolios covered by the Master International Research Agreement between FMR & FIIA.
Schedule A
FORM OF
Trusts and Portfolios Covered by the Sub-Research Agreement, dated as of July 1, 2003, between
Fidelity Management & Research Company
and
Fidelity International Investment Advisors
Name of Trust |
Name of Portfolio |
Type of Fund |
Effective Date |
|
|
|
|
Fidelity Advisor Series I |
Fidelity Advisor Balanced Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Dividend Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Income Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Value Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Fifty Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Growth & Income Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Growth Opportunities Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Large Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Leveraged Company Stock Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Small Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Strategic Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Value Strategies Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Floating Rate High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Advantage Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap II Fund |
Equity |
07/15/04 |
Fidelity Advisor Series II |
Fidelity Advisor Strategic Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Value Fund |
Equity |
11/20/03 |
Fidelity Advisor Series I |
Fidelity Real Estate High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Biotechnology Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII
|
Fidelity Advisor Communications Equipment Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Consumer Discretionary Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Electronics Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Energy Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Financial Services Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Health Care Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Industrials Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Real Estate Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Technology Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Utilities Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Diversified International Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Asia Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Fund |
Equity |
09/18/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Europe Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Global Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor International Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Japan Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Korea Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Latin America Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Overseas Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Value Leaders Fund |
Equity |
07/01/03 |
Fidelity Beacon Street Trust |
Fidelity Advisor Tax Managed Stock Fund |
Equity |
07/01/03 |
Fidelity Beacon Street Trust |
Fidelity Tax Managed Stock Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Disciplined Equity Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Focused Stock Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Small Cap Independence Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Stock Selector |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Value Fund |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Advisor Asset Manager 70% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 20% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 50% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 70% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 85% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Broad Market Opportunities Fund |
Equity |
|
Fidelity Commonwealth Trust |
Fidelity Large Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Mid Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Retirement Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Real Return Fund |
Fixed-Income |
07/21/05 |
Fidelity Contrafund |
Fidelity Advisor New Insights Fund |
Equity |
07/17/03 |
Fidelity Contrafund |
Fidelity Contrafund |
Equity |
07/01/03 |
Fidelity Destiny Portfolios |
Fidelity Advisor Capital Development Fund |
Equity |
07/01/03 |
Fidelity Destiny Portfolios |
Fidelity Advisor Diversified Stock Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Equity-Income Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Large Cap Growth Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Large Cap Value Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Growth Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Value Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Real Estate Investment Portfolio |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Utilities Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Convertible Securities Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Equity-Income II Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Independence Fund |
Equity |
07/01/03 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Dividend & Income Fund |
Fixed-Income |
11/20/03 |
Fidelity Summer Street Trust |
Fidelity Focused High Income Fund |
Fixed-Income |
07/15/04 |
Fidelity Summer Street Trust |
Fidelity High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Fifty |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Fund |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Growth & Income II Portfolio |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Growth Discovery Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Aggressive International Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Canada Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity China Region Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Diversified International Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Emerging Markets Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Europe Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Europe Fund |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Global Balanced Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Discovery Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Small Cap Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Small Cap Opportunities Fund |
Equity |
07/21/05 |
Fidelity Investment Trust |
Fidelity International Value Fund |
Equity |
05/18/06 |
Fidelity Investment Trust |
Fidelity Japan Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Japan Smaller Companies Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Latin America Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Nordic Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Overseas Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Pacific Basin Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Southeast Asia Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Worldwide Fund |
Equity |
07/01/03 |
Fidelity Magellan Fund |
Fidelity Magellan Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity Aggressive Growth Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity Growth Company Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity New Millennium Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Balanced Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Low-Priced Stock Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Puritan Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Value Discovery Fund |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity New Markets Income Fund |
Fixed-Income |
07/01/03 |
Fidelity School Street Trust |
Fidelity Strategic Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Securities Fund |
Fidelity Advisor Aggressive Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Blue Chip Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Blue Chip Value Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Dividend Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Growth & Income Portfolio |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity International Real Estate Fund |
Equity |
07/15/04 |
Fidelity Securities Fund |
Fidelity Leveraged Company Stock Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity OTC Portfolio |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Real Estate Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Securities Fund |
Fidelity Small Cap Growth Fund |
Equity |
09/16/04 |
Fidelity Securities Fund |
Fidelity Small Cap Value Fund |
Equity |
09/16/04 |
Fidelity Select Portfolios |
Air Transportation Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Automotive Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Banking Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Biotechnology Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Brokerage and Investment Management Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Chemicals Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Communications Equipment Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Computers Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Construction and Housing Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Consumer Discretionary Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Consumer Staples Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Defense and Aerospace Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Electronics Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Energy Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Energy Service Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Environmental Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Financial Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Gold Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Health Care Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Home Finance Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Industrial Equipment Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Industrials Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Insurance Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
IT Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Leisure Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Materials Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Medical Delivery Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Medical Equipment and Systems Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Multimedia Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Natural Gas Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Natural Resources Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Networking and Infrastructure Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Paper and Forest Products Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Pharmaceuticals Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Retailing Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Software and Computer Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Technology Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Telecommunications Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Transportation Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Utilities Growth Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Wireless Portfolio |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity Capital & Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Trend Fund |
Fidelity Trend Fund |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity Export and Multinational Fund |
Equity |
07/01/03 |
Variable Insurance Products Fund |
Equity-Income Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
Growth Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
High Income Portfolio |
Fixed-Income |
07/01/03 |
Variable Insurance Products Fund |
Overseas Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund |
Value Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund V |
Asset Manager Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund V |
Asset Manager: Growth Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund II |
Contrafund Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Aggressive Growth Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Balanced Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Dynamic Capital Appreciation Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Growth & Income Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Growth Opportunities Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Mid Cap Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Value Strategies Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Consumer Discretionary Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Consumer Staples Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Energy Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Financial Services Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Growth Stock Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Health Care Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Industrials Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
International Capital Appreciation Portfolio |
Equity |
11/18/04 |
Variable Insurance Products Fund IV |
Materials Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Real Estate Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Strategic Income Portfolio |
Fixed-Income |
11/20/03 |
Variable Insurance Products Fund IV |
Technology Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Telecommunications Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Utilities Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Value Leaders Portfolio |
Equity |
07/01/03 |
Solely for purposes of Section 3 ("Compensation") of the Agreement, the following funds are deemed listed on Schedule A:
Name of LLC |
Name of Portfolio |
Type of Fund |
Effective Date |
Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Discretionary Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Staples Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Energy Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Financials Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Floating Rate Central Fund |
Equity |
11/18/04 |
Fidelity Central Investment Portfolios LLC |
Fidelity Health Care Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity High Income Central Fund 1 |
Equity |
9/16/04 |
Fidelity Central Investment Portfolios LLC |
Fidelity Industrials Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Information Technology Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Materials Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Specialized High Income Central Fund |
Equity |
07/21/05 |
Fidelity Central Investment Portfolios LLC |
Fidelity Telcom Services Central Fund |
Equity |
07/21/06 |
Fidelity Central Investment Portfolios LLC |
Fidelity Utilities Central Fund |
Equity |
07/21/06 |
[SIGNATURE LINES OMITTED]
Exhibit (d)(42)
Schedule A
FORM OF
Trusts and Portfolios Covered by the Sub-Research Agreement, dated as of July 1, 2003
between
Fidelity International Investment Advisors
and
Fidelity International Investment Advisors (U.K.) Limited
Name of Trust |
Name of Portfolio |
Type of Fund |
Effective Date |
|
|
|
|
Fidelity Charles Street Trust |
Fidelity Advisor Asset Manager 70% |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Balanced Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Dividend Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Income Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Value Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Fifty Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Growth & Income Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Growth Opportunities Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Large Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Leveraged Company Stock Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Small Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Strategic Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Value Strategies Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Floating Rate High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Advantage Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap II Fund |
Equity |
07/15/04 |
Fidelity Advisor Series II |
Fidelity Advisor Strategic Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Value Fund |
Equity |
11/20/03 |
Fidelity Advisor Series I |
Fidelity Real Estate High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Biotechnology Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII
|
Fidelity Advisor Communications Equipment Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Consumer Discretionary Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Electronics Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Energy Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Financial Services Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Health Care Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Industrials Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Real Estate Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Technology Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Utilities Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Diversified International Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Asia Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Fund |
Equity |
09/18/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Europe Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Global Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor International Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Japan Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Korea Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Latin America Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Overseas Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Value Leaders Fund |
Equity |
07/01/03 |
Fidelity Beacon Street Trust |
Fidelity Advisor Tax Managed Stock Fund |
Equity |
07/01/03 |
Fidelity Beacon Street Trust |
Fidelity Tax Managed Stock Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Disciplined Equity Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Focused Stock Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Small Cap Independence Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Stock Selector |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Value Fund |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 20% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 50% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 70% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 85% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Broad Market Opportunities Fund |
Equity |
|
Fidelity Commonwealth Trust |
Fidelity Large Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Mid Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Retirement Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Real Return Fund |
Fixed-Income |
07/21/05 |
Fidelity Contrafund |
Fidelity Advisor New Insights Fund |
Equity |
07/17/03 |
Fidelity Contrafund |
Fidelity Contrafund |
Equity |
07/01/03 |
Fidelity Destiny Portfolios |
Fidelity Advisor Capital Development Fund |
Equity |
07/01/03 |
Fidelity Destiny Portfolios |
Fidelity Advisor Diversified Stock Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Equity-Income Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Large Cap Growth Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Large Cap Value Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Growth Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Value Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Real Estate Investment Portfolio |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Utilities Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Convertible Securities Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Equity-Income II Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Independence Fund |
Equity |
07/01/03 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Dividend & Income Fund |
Fixed-Income |
11/20/03 |
Fidelity Summer Street Trust |
Fidelity Focused High Income Fund |
Fixed-Income |
07/15/04 |
Fidelity Summer Street Trust |
Fidelity High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Fifty |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Fund |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Growth & Income II Portfolio |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Growth Discovery Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Aggressive International Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Canada Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity China Region Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Diversified International Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Emerging Markets Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Europe Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Europe Fund |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Global Balanced Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Discovery Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Small Cap Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Small Cap Opportunities Fund |
Equity |
07/21/05 |
Fidelity Investment Trust |
Fidelity International Value Fund |
Equity |
05/18/06 |
Fidelity Investment Trust |
Fidelity Japan Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Japan Smaller Companies Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Latin America Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Nordic Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Overseas Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Pacific Basin Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Southeast Asia Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Worldwide Fund |
Equity |
07/01/03 |
Fidelity Magellan Fund |
Fidelity Magellan Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity Aggressive Growth Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity Growth Company Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity New Millennium Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Balanced Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Low-Priced Stock Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Puritan Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Value Discovery Fund |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity New Markets Income Fund |
Fixed-Income |
07/01/03 |
Fidelity School Street Trust |
Fidelity Strategic Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Securities Fund |
Fidelity Advisor Aggressive Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Blue Chip Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Blue Chip Value Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Dividend Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Growth & Income Portfolio |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity International Real Estate Fund |
Equity |
07/15/04 |
Fidelity Securities Fund |
Fidelity Leveraged Company Stock Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity OTC Portfolio |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Real Estate Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Securities Fund |
Fidelity Small Cap Growth Fund |
Equity |
09/16/04 |
Fidelity Securities Fund |
Fidelity Small Cap Value Fund |
Equity |
09/16/04 |
Fidelity Select Portfolios |
Air Transportation Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Automotive Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Banking Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Biotechnology Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Brokerage and Investment Management Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Chemicals Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Communications Equipment Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Computers Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Construction and Housing Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Consumer Discretionary Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Consumer Staples Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Defense and Aerospace Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Electronics Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Energy Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Energy Service Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Environmental Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Financial Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Gold Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Health Care Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Home Finance Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Industrial Equipment Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Industrials Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Insurance Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
IT Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Leisure Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Materials Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Medical Delivery Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Medical Equipment and Systems Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Multimedia Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Natural Gas Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Natural Resources Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Networking and Infrastructure Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Paper and Forest Products Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Pharmaceuticals Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Retailing Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Software and Computer Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Technology Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Telecommunications Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Transportation Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Utilities Growth Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Wireless Portfolio |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity Capital & Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Trend Fund |
Fidelity Trend Fund |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity Export and Multinational Fund |
Equity |
07/01/03 |
Variable Insurance Products Fund |
Equity-Income Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
Growth Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
High Income Portfolio |
Fixed-Income |
07/01/03 |
Variable Insurance Products Fund |
Overseas Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund |
Value Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund V |
Asset Manager Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund V |
Asset Manager: Growth Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund II |
Contrafund Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Aggressive Growth Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Balanced Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Dynamic Capital Appreciation Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Growth & Income Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Growth Opportunities Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Mid Cap Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Value Strategies Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Consumer Discretionary Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Consumer Staples Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Energy Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Financial Services Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Growth Stock Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Health Care Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Industrials Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
International Capital Appreciation Portfolio |
Equity |
11/18/04 |
Variable Insurance Products Fund IV |
Materials Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Real Estate Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Strategic Income Portfolio |
Fixed-Income |
11/20/03 |
Variable Insurance Products Fund IV |
Technology Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Telecommunications Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Utilities Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Value Leaders Portfolio |
Equity |
07/01/03 |
[SIGNATURE LINES OMITTED]
Exhibit (d)(44)
Schedule A
FORM OF
Trusts and Portfolios Covered by the Sub-Research Agreement, dated as of July 1, 2003, between
Fidelity International Investment Advisors
and
Fidelity Investments Japan Limited
Name of Trust |
Name of Portfolio |
Type of Fund |
Effective Date |
|
|
|
|
Fidelity Charles Street Trust |
Fidelity Advisor Asset Manager 70% |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Balanced Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Dividend Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Income Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Value Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Fifty Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Growth & Income Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Growth Opportunities Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Large Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Leveraged Company Stock Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Small Cap Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Strategic Growth Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Value Strategies Fund |
Equity |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Floating Rate High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Advantage Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap II Fund |
Equity |
07/15/04 |
Fidelity Advisor Series II |
Fidelity Advisor Strategic Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series I |
Fidelity Advisor Value Fund |
Equity |
11/20/03 |
Fidelity Advisor Series I |
Fidelity Real Estate High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Biotechnology Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII
|
Fidelity Advisor Communications Equipment Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Consumer Discretionary Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Electronics Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Energy Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Financial Services Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Health Care Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Industrials Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Real Estate Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Technology Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VII |
Fidelity Advisor Utilities Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Diversified International Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Asia Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Fund |
Equity |
09/18/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Europe Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Global Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor International Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Japan Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Korea Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Latin America Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Overseas Fund |
Equity |
07/01/03 |
Fidelity Advisor Series VIII |
Fidelity Advisor Value Leaders Fund |
Equity |
07/01/03 |
Fidelity Beacon Street Trust |
Fidelity Advisor Tax Managed Stock Fund |
Equity |
07/01/03 |
Fidelity Beacon Street Trust |
Fidelity Tax Managed Stock Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Disciplined Equity Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Focused Stock Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Small Cap Independence Fund |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Stock Selector |
Equity |
07/01/03 |
Fidelity Capital Trust |
Fidelity Value Fund |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 20% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 50% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 70% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Asset Manager 85% |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Broad Market Opportunities Fund |
Equity |
|
Fidelity Commonwealth Trust |
Fidelity Large Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Mid Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Retirement Fund |
Equity |
07/01/03 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Stock Fund |
Equity |
07/01/03 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Real Return Fund |
Fixed-Income |
07/21/05 |
Fidelity Contrafund |
Fidelity Advisor New Insights Fund |
Equity |
07/17/03 |
Fidelity Contrafund |
Fidelity Contrafund |
Equity |
07/01/03 |
Fidelity Destiny Portfolios |
Fidelity Advisor Capital Development Fund |
Equity |
07/01/03 |
Fidelity Destiny Portfolios |
Fidelity Advisor Diversified Stock Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Equity-Income Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Large Cap Growth Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Large Cap Value Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Growth Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Mid Cap Value Fund |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Real Estate Investment Portfolio |
Equity |
07/01/03 |
Fidelity Devonshire Trust |
Fidelity Utilities Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Convertible Securities Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Equity-Income II Fund |
Equity |
07/01/03 |
Fidelity Financial Trust |
Fidelity Independence Fund |
Equity |
07/01/03 |
Fidelity Fixed-Income Trust |
Fidelity Strategic Dividend & Income Fund |
Fixed-Income |
11/20/03 |
Fidelity Summer Street Trust |
Fidelity Focused High Income Fund |
Fixed-Income |
07/15/04 |
Fidelity Summer Street Trust |
Fidelity High Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Fifty |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Fund |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Growth & Income II Portfolio |
Equity |
07/01/03 |
Fidelity Hastings Street Trust |
Fidelity Growth Discovery Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Aggressive International Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Canada Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity China Region Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Diversified International Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Emerging Markets Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Europe Capital Appreciation Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Europe Fund |
Equity |
07/01/03 |
Fidelity Charles Street Trust |
Fidelity Global Balanced Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Discovery Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Small Cap Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity International Small Cap Opportunities Fund |
Equity |
07/21/05 |
Fidelity Investment Trust |
Fidelity International Value Fund |
Equity |
05/18/06 |
Fidelity Investment Trust |
Fidelity Japan Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Japan Smaller Companies Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Latin America Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Nordic Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Overseas Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Pacific Basin Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Southeast Asia Fund |
Equity |
07/01/03 |
Fidelity Investment Trust |
Fidelity Worldwide Fund |
Equity |
07/01/03 |
Fidelity Magellan Fund |
Fidelity Magellan Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity Aggressive Growth Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity Growth Company Fund |
Equity |
07/01/03 |
Fidelity Mt. Vernon Street Trust |
Fidelity New Millennium Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Balanced Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Low-Priced Stock Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Puritan Fund |
Equity |
07/01/03 |
Fidelity Puritan Trust |
Fidelity Value Discovery Fund |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity New Markets Income Fund |
Fixed-Income |
07/01/03 |
Fidelity School Street Trust |
Fidelity Strategic Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Securities Fund |
Fidelity Advisor Aggressive Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Blue Chip Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Blue Chip Value Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Dividend Growth Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Growth & Income Portfolio |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity International Real Estate Fund |
Equity |
07/15/04 |
Fidelity Securities Fund |
Fidelity Leveraged Company Stock Fund |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity OTC Portfolio |
Equity |
07/01/03 |
Fidelity Securities Fund |
Fidelity Real Estate Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Securities Fund |
Fidelity Small Cap Growth Fund |
Equity |
09/16/04 |
Fidelity Securities Fund |
Fidelity Small Cap Value Fund |
Equity |
09/16/04 |
Fidelity Select Portfolios |
Air Transportation Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Automotive Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Banking Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Biotechnology Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Brokerage and Investment Management Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Chemicals Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Communications Equipment Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Computers Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Construction and Housing Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Consumer Discretionary Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Consumer Staples Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Defense and Aerospace Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Electronics Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Energy Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Energy Service Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Environmental Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Financial Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Gold Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Health Care Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Home Finance Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Industrial Equipment Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Industrials Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Insurance Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
IT Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Leisure Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Materials Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Medical Delivery Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Medical Equipment and Systems Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Multimedia Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Natural Gas Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Natural Resources Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Networking and Infrastructure Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Paper and Forest Products Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Pharmaceuticals Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Retailing Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Software and Computer Services Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Technology Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Telecommunications Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Transportation Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Utilities Growth Portfolio |
Equity |
07/01/03 |
Fidelity Select Portfolios |
Wireless Portfolio |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity Capital & Income Fund |
Fixed-Income |
07/01/03 |
Fidelity Trend Fund |
Fidelity Trend Fund |
Equity |
07/01/03 |
Fidelity Summer Street Trust |
Fidelity Export and Multinational Fund |
Equity |
07/01/03 |
Variable Insurance Products Fund |
Equity-Income Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
Growth Portfolio |
Equity |
01/01/05 |
Variable Insurance Products Fund |
High Income Portfolio |
Fixed-Income |
07/01/03 |
Variable Insurance Products Fund |
Overseas Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund |
Value Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund V |
Asset Manager Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund V |
Asset Manager: Growth Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund II |
Contrafund Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Aggressive Growth Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Balanced Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Dynamic Capital Appreciation Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Growth & Income Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Growth Opportunities Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Mid Cap Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund III |
Value Strategies Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Consumer Discretionary Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Consumer Staples Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Energy Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Financial Services Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Growth Stock Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Health Care Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Industrials Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
International Capital Appreciation Portfolio |
Equity |
11/18/04 |
Variable Insurance Products Fund IV |
Materials Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Real Estate Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Strategic Income Portfolio |
Fixed-Income |
11/20/03 |
Variable Insurance Products Fund IV |
Technology Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Telecommunications Portfolio |
Equity |
03/15/07 |
Variable Insurance Products Fund IV |
Utilities Portfolio |
Equity |
07/01/03 |
Variable Insurance Products Fund IV |
Value Leaders Portfolio |
Equity |
07/01/03 |
[SIGNATURE LINES OMITTED]
Exhibit (d)(46)
FORM OF
SCHEDULE A
To the General Research Services Agreement
Dated as of January 20, 2006
Trust |
Fund |
Fidelity Charles Street Trust |
Fidelity Advisor Asset Manager 70% |
Fidelity Advisor Series I |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Series I |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Series I |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Series I |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Series I |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Series I |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Series I |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Series I |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Series I |
Fidelity Advisor Growth Opportunities Fund |
Fidelity Advisor Series I |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Series I |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Series I |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Series I |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Series I |
Fidelity Advisor Value Strategies Fund |
Fidelity Advisor Series I |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Series II |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Series I |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor Series I |
Fidelity Advisor High Income Fund |
Fidelity Advisor Series II |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap II Fund |
Fidelity Advisor Series II |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Series II |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Series II |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Series II |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Series I |
Fidelity Advisor Value Fund |
Fidelity Advisor Series IV |
Fidelity Institutional Short-Intermediate Government Fund |
Fidelity Advisor Series I |
Fidelity Real Estate High Income Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Health Care Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Technology Fund |
Fidelity Advisor Series VII |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Japan Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Korea Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Series VIII |
Fidelity Advisor Value Leaders Fund |
Fidelity Beacon Street Trust |
Fidelity Advisor Tax Managed Stock Fund |
Fidelity Beacon Street Trust |
Fidelity Tax Managed Stock Fund |
Fidelity California Municipal Trust |
Fidelity California Municipal Income Fund |
Fidelity California Municipal Trust |
Fidelity California Short-Intermediate Tax-Free Bond Fund |
Fidelity California Municipal Trust II |
Fidelity California AMT Tax-Free Money Market Fund |
Fidelity California Municipal Trust II |
Fidelity California Municipal Money Market Fund |
Fidelity Capital Trust |
Fidelity Capital Appreciation Fund |
Fidelity Capital Trust |
Fidelity Disciplined Equity Fund |
Fidelity Capital Trust |
Fidelity Focused Stock Fund |
Fidelity Capital Trust |
Fidelity Small Cap Independence Fund |
Fidelity Capital Trust |
Fidelity Stock Selector |
Fidelity Capital Trust |
Fidelity Value Fund |
Fidelity Central Investment Portfolios II LLC |
Fidelity 1-3 Year Duration Securitized Bond Central Fund |
Fidelity Central Investment Portfolios II LLC |
Fidelity 2-5 Year Duration Securitized Bond Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Discretionary Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Staples Central Fund |
Fidelity Central Investment Portfolios II LLC |
Fidelity Corporate Bond 1-5 Year Central Fund |
Fidelity Central Investment Portfolios II LLC |
Fidelity Corporate Bond 1-10 Year Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Energy Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Financials Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Floating Rate Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Health Care Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity High Income Central Fund 1 |
Fidelity Central Investment Portfolios LLC |
Fidelity Industrials Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Information Technology Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Materials Central Fund |
Fidelity Central Investment Portfolios II LLC |
Fidelity Mortgage Backed Securities Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Specialized High Income Central Fund
|
Fidelity Central Investment Portfolios II LLC |
Fidelity Tactical Income Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Telecom Services Central Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity Utilities Central Fund |
Fidelity Charles Street Trust |
Fidelity Asset Manager |
Fidelity Charles Street Trust |
Fidelity Asset Manager: Aggressive |
Fidelity Charles Street Trust |
Fidelity Asset Manager: Growth |
Fidelity Charles Street Trust |
Fidelity Asset Manager: Income |
Fidelity Charles Street Trust |
Fidelity Broad Market Opportunities Fund |
Fidelity Colchester Street Trust |
Government Portfolio |
Fidelity Colchester Street Trust |
Money Market Portfolio |
Fidelity Colchester Street Trust |
Prime Money Market Portfolio |
Fidelity Colchester Street Trust |
Tax-Exempt Portfolio |
Fidelity Colchester Street Trust |
Treasury Only Portfolio |
Fidelity Colchester Street Trust |
Treasury Portfolio |
Fidelity Fixed-Income Trust |
Fidelity Intermediate Bond Fund |
Fidelity Commonwealth Trust |
Fidelity Large Cap Stock Fund |
Fidelity Commonwealth Trust |
Fidelity Mid-Cap Stock Fund |
Fidelity Commonwealth Trust |
Fidelity Small Cap Retirement Fund |
Fidelity Commonwealth Trust |
Fidelity Small Cap Stock Fund |
Fidelity Fixed-Income Trust |
Fidelity Strategic Real Return Fund |
Fidelity Fixed-Income Trust |
Fidelity U.S. Bond Index Fund |
Fidelity Fixed-Income Trust |
Spartan Intermediate Treasury Bond Index Fund |
Fidelity Fixed-Income Trust |
Spartan Long Term Treasury Bond Index Fund |
Fidelity Fixed-Income Trust |
Spartan Short Term Treasury Bond Index Fund |
Fidelity Congress Street Fund |
Fidelity Congress Street Fund |
Fidelity Contrafund |
Fidelity Advisor New Insights Fund |
Fidelity Contrafund |
Fidelity Contrafund |
Fidelity Court Street Trust |
Fidelity Connecticut Municipal Income Fund |
Fidelity Court Street Trust |
Fidelity Florida Municipal Income Fund |
Fidelity Court Street Trust |
Fidelity New Jersey Municipal Income Fund |
Fidelity Court Street Trust II |
Fidelity Connecticut Municipal Money Market Fund |
Fidelity Court Street Trust II |
Fidelity Florida Municipal Money Market Fund |
Fidelity Court Street Trust II |
Fidelity New Jersey AMT Tax-Free Money Market Fund |
Fidelity Court Street Trust II |
Fidelity New Jersey Municipal Money Market Fund |
Fidelity Destiny Portfolios |
Destiny I |
Fidelity Destiny Portfolios |
Destiny II |
Fidelity Devonshire Trust |
Fidelity Equity-Income Fund |
Fidelity Devonshire Trust |
Fidelity Large Cap Growth Fund |
Fidelity Devonshire Trust |
Fidelity Large Cap Value Fund |
Fidelity Devonshire Trust |
Fidelity Mid Cap Growth Fund |
Fidelity Devonshire Trust |
Fidelity Mid Cap Value Fund |
Fidelity Devonshire Trust |
Fidelity Real Estate Investment Portfolio |
Fidelity Fixed-Income Trust |
Fidelity Tax-Free Bond Fund |
Fidelity Devonshire Trust |
Fidelity Utilities Fund |
Fidelity Exchange Fund |
Fidelity Exchange Fund |
Fidelity Financial Trust |
Fidelity Convertible Securities Fund |
Fidelity Financial Trust |
Fidelity Equity-Income II Fund |
Fidelity Financial Trust |
Fidelity Independence Fund |
Fidelity Fixed-Income Trust |
Fidelity Strategic Dividend & Income Fund |
Fidelity Summer Street Trust |
Fidelity Focused High Income Fund |
Fidelity Summer Street Trust |
Fidelity High Income Fund |
Fidelity Fixed-Income Trust |
Fidelity Inflation-Protected Bond Fund |
Fidelity Fixed-Income Trust |
Fidelity Investment Grade Bond Fund |
Fidelity Fixed-Income Trust |
Fidelity Short-Term Bond Fund |
Fidelity Fixed-Income Trust |
Spartan Government Income Fund |
Fidelity Garrison Street Trust |
Fidelity Money Market Central Fund |
Fidelity Garrison Street Trust |
Fidelity Ultra-Short Central Fund |
Fidelity Garrison Street Trust |
Fidelity VIP Investment Grade Central Investment Portfolio |
Fidelity Hastings Street Trust |
Fidelity Discovery Fund |
Fidelity Hastings Street Trust |
Fidelity Fifty |
Fidelity Hastings Street Trust |
Fidelity Fund |
Fidelity Hastings Street Trust |
Fidelity Growth & Income II Portfolio |
Fidelity Hereford Street Trust |
Fidelity Government Money Market Fund |
Fidelity Hereford Street Trust |
Fidelity Money Market Fund |
Fidelity Hereford Street Trust |
Fidelity U.S. Treasury Money Market Fund |
Fidelity Income Fund |
Fidelity Ginnie Mae Fund |
Fidelity Income Fund |
Fidelity Government Income Fund |
Fidelity Income Fund |
Fidelity Intermediate Government Income Fund |
Fidelity Income Fund |
Fidelity Total Bond Fund |
Fidelity Income Fund |
Fidelity Ultra-Short Bond Fund |
Fidelity Investment Trust |
Fidelity Aggressive International Fund |
Fidelity Investment Trust |
Fidelity Canada Fund |
Fidelity Investment Trust |
Fidelity China Region Fund |
Fidelity Investment Trust |
Fidelity Diversified International Fund |
Fidelity Investment Trust |
Fidelity Emerging Markets Fund |
Fidelity Investment Trust |
Fidelity Europe Capital Appreciation Fund |
Fidelity Investment Trust |
Fidelity Europe Fund |
Fidelity Charles Street Trust |
Fidelity Global Balanced Fund |
Fidelity Investment Trust |
Fidelity International Discovery Fund |
Fidelity Investment Trust |
Fidelity International Small Cap Fund |
Fidelity Investment Trust |
Fidelity International Small Cap Opportunities Fund |
Fidelity Investment Trust |
Fidelity International Value Fund |
Fidelity Investment Trust |
Fidelity Japan Fund |
Fidelity Investment Trust |
Fidelity Japan Smaller Companies Fund |
Fidelity Investment Trust |
Fidelity Latin America Fund |
Fidelity Investment Trust |
Fidelity Nordic Fund |
Fidelity Investment Trust |
Fidelity Overseas Fund |
Fidelity Investment Trust |
Fidelity Pacific Basin Fund |
Fidelity Investment Trust |
Fidelity Southeast Asia Fund |
Fidelity Investment Trust |
Fidelity Worldwide Fund |
Fidelity Magellan Fund |
Fidelity Magellan Fund |
Fidelity Massachusetts Municipal Trust |
Fidelity Massachusetts AMT Tax-Free Money Market Fund |
Fidelity Massachusetts Municipal Trust |
Fidelity Massachusetts Municipal Income Fund |
Fidelity Massachusetts Municipal Trust |
Fidelity Massachusetts Municipal Money Market Fund |
Fidelity Money Market Trust |
Retirement Government Money Market Portfolio |
Fidelity Money Market Trust |
Retirement Money Market Portfolio |
Fidelity Mt. Vernon Street Trust |
Fidelity Aggressive Growth Fund |
Fidelity Mt. Vernon Street Trust |
Fidelity Growth Company Fund |
Fidelity Mt. Vernon Street Trust |
Fidelity New Millennium Fund |
Fidelity Municipal Trust |
Fidelity Michigan Municipal Income Fund |
Fidelity Municipal Trust |
Fidelity Minnesota Municipal Income Fund |
Fidelity Municipal Trust |
Fidelity Municipal Income Fund |
Fidelity Municipal Trust |
Fidelity Ohio Municipal Income Fund |
Fidelity Municipal Trust |
Fidelity Pennsylvania Municipal Income Fund |
Fidelity Municipal Trust |
Fidelity Short-Intermediate Municipal Income Fund |
Fidelity Municipal Trust II |
Fidelity Michigan Municipal Money Market Fund |
Fidelity Municipal Trust II |
Fidelity Ohio Municipal Money Market Fund |
Fidelity Municipal Trust II |
Fidelity Pennsylvania Municipal Money Market Fund |
Fidelity Newbury Street Trust |
Prime Fund |
Fidelity Newbury Street Trust |
Tax-Exempt Fund |
Fidelity Newbury Street Trust |
Treasury Fund |
Fidelity New York Municipal Trust |
Fidelity New York Municipal Income Fund |
Fidelity New York Municipal Trust II |
Fidelity New York AMT Tax-Free Money Market Fund |
Fidelity New York Municipal Trust II |
Fidelity New York Municipal Money Market Fund |
Fidelity Phillips Street Trust |
Fidelity Cash Reserves |
Fidelity Phillips Street Trust |
Fidelity U.S. Government Reserves |
Fidelity Puritan Trust |
Fidelity Balanced Fund |
Fidelity Puritan Trust |
Fidelity Low-Priced Stock Fund |
Fidelity Puritan Trust |
Fidelity Puritan Fund |
Fidelity Puritan Trust |
Fidelity Value Discovery Fund |
Fidelity Revere Street Trust |
Fidelity Cash Central Fund |
Fidelity Revere Street Trust |
Fidelity Municipal Cash Central Fund |
Fidelity Revere Street Trust |
Fidelity Securities Lending Cash Central Fund |
Fidelity Revere Street Trust |
Fidelity Tax-Free Cash Central Fund |
Fidelity School Street Trust |
Fidelity Intermediate Municipal Income Fund |
Fidelity Summer Street Trust |
Fidelity New Markets Income Fund |
Fidelity School Street Trust |
Fidelity Strategic Income Fund |
Fidelity Securities Fund |
Fidelity Advisor Aggressive Growth Fund |
Fidelity Securities Fund |
Fidelity Blue Chip Growth Fund |
Fidelity Securities Fund |
Fidelity Blue Chip Value Fund |
Fidelity Securities Fund |
Fidelity Dividend Growth Fund |
Fidelity Securities Fund |
Fidelity Growth & Income Portfolio |
Fidelity Securities Fund |
Fidelity International Real Estate Fund |
Fidelity Securities Fund |
Fidelity Leveraged Company Stock Fund |
Fidelity Securities Fund |
Fidelity OTC Portfolio |
Fidelity Securities Fund |
Fidelity Real Estate Income Fund |
Fidelity Securities Fund |
Fidelity Small Cap Growth Fund |
Fidelity Securities Fund |
Fidelity Small Cap Value Fund |
Fidelity Select Portfolios |
Air Transportation Portfolio |
Fidelity Select Portfolios |
Automotive Portfolio |
Fidelity Select Portfolios |
Banking Portfolio |
Fidelity Select Portfolios |
Biotechnology Portfolio |
Fidelity Select Portfolios |
Brokerage and Investment Management Portfolio |
Fidelity Select Portfolios |
Business Services and Outsourcing Portfolio |
Fidelity Select Portfolios |
Chemicals Portfolio |
Fidelity Select Portfolios |
Computers Portfolio |
Fidelity Select Portfolios |
Construction and Housing Portfolio |
Fidelity Select Portfolios |
Consumer Industries Portfolio |
Fidelity Select Portfolios |
Cyclical Industries Portfolio |
Fidelity Select Portfolios |
Defense and Aerospace Portfolio |
Fidelity Select Portfolios |
Developing Communications Portfolio |
Fidelity Select Portfolios |
Electronics Portfolio |
Fidelity Select Portfolios |
Energy Portfolio |
Fidelity Select Portfolios |
Energy Service Portfolio |
Fidelity Select Portfolios |
Environmental Portfolio |
Fidelity Select Portfolios |
Financial Services Portfolio |
Fidelity Select Portfolios |
Food and Agriculture Portfolio |
Fidelity Select Portfolios |
Gold Portfolio |
Fidelity Select Portfolios |
Health Care Portfolio |
Fidelity Select Portfolios |
Home Finance Portfolio |
Fidelity Select Portfolios |
Industrial Equipment Portfolio |
Fidelity Select Portfolios |
Industrial Materials Portfolio |
Fidelity Select Portfolios |
Insurance Portfolio |
Fidelity Select Portfolios |
Leisure Portfolio |
Fidelity Select Portfolios |
Medical Delivery Portfolio |
Fidelity Select Portfolios |
Medical Equipment and Systems Portfolio |
Fidelity Fixed-Income Portfolios |
Money Market Portfolio |
Fidelity Select Portfolios |
Multimedia Portfolio |
Fidelity Select Portfolios |
Natural Gas Portfolio |
Fidelity Select Portfolios |
Natural Resources Portfolio |
Fidelity Select Portfolios |
Networking and Infrastructure Portfolio |
Fidelity Select Portfolios |
Paper and Forest Products Portfolio |
Fidelity Select Portfolios |
Pharmaceuticals Portfolio |
Fidelity Select Portfolios |
Retailing Portfolio |
Fidelity Select Portfolios |
Software and Computer Services Portfolio |
Fidelity Select Portfolios |
Technology Portfolio |
Fidelity Select Portfolios |
Telecommunications Portfolio |
Fidelity Select Portfolios |
Transportation Portfolio |
Fidelity Select Portfolios |
Utilities Growth Portfolio |
Fidelity Select Portfolios |
Wireless Portfolio |
Fidelity Summer Street Trust |
Fidelity Capital & Income Fund |
Fidelity Trend Fund |
Fidelity Trend Fund |
Fidelity Union Street Trust |
Fidelity Arizona Municipal Income Fund |
Fidelity Summer Street Trust |
Fidelity Export and Multinational Fund |
Fidelity Union Street Trust |
Fidelity Maryland Municipal Income Fund |
Fidelity Union Street Trust II |
Fidelity AMT Tax-Free Money Fund |
Fidelity Union Street Trust II |
Fidelity Arizona Municipal Money Market Fund |
Fidelity Union Street Trust II |
Fidelity Municipal Money Market Fund |
Massachusetts Municipal Depository Trust |
Massachusetts Municipal Depository Trust |
Variable Insurance Products Fund |
Equity-Income Portfolio |
Variable Insurance Products Fund |
Growth Portfolio |
Variable Insurance Products Fund |
High Income Portfolio |
Variable Insurance Products Fund V |
Money Market Portfolio |
Variable Insurance Products Fund |
Overseas Portfolio |
Variable Insurance Products Fund |
Value Portfolio |
Variable Insurance Products Fund V |
Asset Manager Portfolio |
Variable Insurance Products Fund V |
Asset Manager: Growth Portfolio |
Variable Insurance Products Fund II |
Contrafund Portfolio |
Variable Insurance Products Fund V |
Investment Grade Bond Portfolio |
Variable Insurance Products Fund III |
Aggressive Growth Portfolio |
Variable Insurance Products Fund III |
Balanced Portfolio |
Variable Insurance Products Fund III |
Dynamic Capital Appreciation Portfolio |
Variable Insurance Products Fund III |
Growth & Income Portfolio |
Variable Insurance Products Fund III |
Growth Opportunities Portfolio |
Variable Insurance Products Fund III |
Mid Cap Portfolio |
Variable Insurance Products Fund III |
Value Strategies Portfolio |
Variable Insurance Products Fund IV |
Consumer Industries Portfolio |
Variable Insurance Products Fund IV |
Consumer Staples Portfolio |
Variable Insurance Products Fund IV |
Cyclical Industries Portfolio |
Variable Insurance Products Fund IV |
Financial Services Portfolio |
Variable Insurance Products Fund IV |
Growth Stock Portfolio |
Variable Insurance Products Fund IV |
Health Care Portfolio |
Variable Insurance Products Fund IV |
International Capital Appreciation Portfolio |
Variable Insurance Products Fund IV |
Materials Portfolio |
Variable Insurance Products Fund IV |
Natural Resources Portfolio |
Variable Insurance Products Fund IV |
Real Estate Portfolio |
Variable Insurance Products Fund IV |
Strategic Income Portfolio |
Variable Insurance Products Fund IV |
Technology Portfolio |
Variable Insurance Products Fund IV |
Telecommunications Portfolio |
Variable Insurance Products Fund IV |
Utilities Portfolio |
Variable Insurance Products Fund IV |
Value Leaders Portfolio |
[SIGNATURE LINES OMITTED]
Exhibit (e)(5)
FORM OF
GENERAL DISTRIBUTION AGREEMENT
between
FIDELITY CHARLES STREET TRUST
and
FIDELITY DISTRIBUTORS CORPORATION
Agreement made this th day of , 200 , between Fidelity Charles Street Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity Advisor Asset Manager 70%, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors").
In consideration of the mutual promises and undertakings herein contained, the parties agree as follows:
1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR") or any of its affiliates.
2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company.
3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale.
4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee and, unless otherwise agreed upon by the Issuer and Distributors, the Issuer shall be entitled to receive all of such fees.
5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer.
6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. The Distributor will not direct remuneration from commissions paid by the Issuer for portfolio securities transactions to a broker or dealer for promoting or selling fund shares.
7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate.
8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer.
9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer.
10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders.
As provided in the Distribution and Service Plan adopted by the Issuer, it is recognized by the Issuer that FMR or its affiliates may make payment to Distributors with respect to any expenses incurred in the distribution of shares of the Issuer, such payments payable from the past profits or other resources of FMR or its affiliates including management fees paid to it by the Issuer.
11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of wilful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares.
Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares.
12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until April 30, 2008 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party.
13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts.
14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series.
15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written.
SIGNATURE LINES OMITTED
Exhibit (e)(6)
FORM OF
GENERAL DISTRIBUTION AGREEMENT
between
FIDELITY CHARLES STREET TRUST
and
FIDELITY DISTRIBUTORS CORPORATION
Agreement made this day of , 200 , between Fidelity Charles Street Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity Global Balanced Fund, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors").
In consideration of the mutual promises and undertakings herein contained, the parties agree as follows:
1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR") or any of its affiliates.
2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company.
3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale.
4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee and, unless otherwise agreed upon by the Issuer and Distributors, the Issuer shall be entitled to receive all of such fees.
5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer.
6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. The Distributor will not direct remuneration from commissions paid by the Issuer for portfolio securities transactions to a broker or dealer for promoting or selling fund shares.
7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate.
8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer.
9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer.
10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders.
As provided in the Distribution and Service Plan adopted by the Issuer, it is recognized by the Issuer that FMR or its affiliates may make payment to Distributors with respect to any expenses incurred in the distribution of shares of the Issuer, such payments payable from the past profits or other resources of FMR or its affiliates including management fees paid to it by the Issuer.
11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of wilful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares.
Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares.
12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until April 30, 2008 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party.
13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts.
14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series.
15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof.
IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written.
SIGNATURE LINES OMITTED
Exhibit (g)(3)
FORM OF
CUSTODIAN AGREEMENT
Dated as of
Between
Each of the Investment Companies
Listed on Appendix "A" Attached Hereto
and
BROWN BROTHERS HARRIMAN AND COMPANY
TABLE OF CONTENTS
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ARTICLE I APPOINTMENT OF CUSTODIAN |
1 |
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ARTICLE II POWERS AND DUTIES OF CUSTODIAN |
1 |
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Section 2.01. |
Safekeeping |
2 |
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Section 2.02 |
Manner of Holding Securities and Other Assets |
2 |
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Section 2.03 |
Security Purchases |
3 |
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Section 2.04 |
Exchanges of Securities |
4 |
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Section 2.05 |
Sales of Securities |
5 |
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Section 2.06 |
Depositary Receipts |
5 |
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Section 2.07 |
Exercise of Rights; Tender Offers |
6 |
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Section 2.08 |
Stock Dividends, Rights, Etc |
6 |
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Section 2.09 |
Options |
6 |
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Section 2.10 |
Futures Contracts |
6 |
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Section 2.11 |
Borrowing |
7 |
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Section 2.12 |
Interest Bearing Deposits |
7 |
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Section 2.13 |
Foreign Exchange Transactions |
8 |
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Section 2.14 |
Securities Loans |
9 |
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Section 2.15 |
Collections |
9 |
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Section 2.16 |
Dividends, Distributions and Redemptions |
9 |
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Section 2.17 |
Proceeds from Shares Sold |
10 |
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Section 2.18 |
Proxies, Notices, Etc |
10 |
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Section 2.19 |
Bills and Other Disbursements |
10 |
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Section 2.20 |
Nondiscretionary Functions |
10 |
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Section 2.21 |
Bank Accounts |
11 |
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Section 2.22 |
Deposit of Fund Assets in Securities Systems and Eligible Securities Depositories |
12 |
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Section 2.23 |
Other Transfers |
16 |
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Section 2.24 |
Establishment of Segregated Account |
16 |
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Section 2.25 |
Custodian's Books and Records |
16 |
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Section 2.26 |
Opinion of Fund's Independent Certified Pulic Accountants |
17 |
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Section 2.27 |
Reports by Independent Certified Public Accountants |
17 |
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Section 2.28 |
Overdraft Facility |
17 |
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Section 2.29 |
Insurance Requirements |
18 |
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Section 2.30 |
Provision of Information |
19 |
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Section 2.31 |
Compliance and Internal Control Reports |
19 |
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Section 2.32 |
Local Regulatory Matters |
19 |
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ARTICLE III PROPER INSTRUCTIONS, SPECIAL INSTRUCTIONS AND RELATED MATTERS |
19 |
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Section 3.01 |
Proper Instructions and Special Instructions |
19 |
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Section 3.02 |
Authorized Persons |
20 |
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Section 3.03 |
Persons Having Access to Assets of the Porfolios |
20 |
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Section 3.04 |
Actions of Custodian Based on Proper Instructions and Special Instructions |
21 |
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ARTICLE IV SUBCUSTODIANS |
21 |
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Section 4.01. |
Domestic Subcustodians |
21 |
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Section 4.02. |
Foreign Subcustodians and Interim Subcustodians |
21 |
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Section 4.03. |
Special Subcustodians |
24 |
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Section 4.04 |
Termination of a Subcustodian |
25 |
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Section 4.05 |
Certification Regarding Foreign Subcustodians |
25 |
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ARTICLE V STANDARD OF CARE; INDEMNIFICATION |
26 |
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Section 5.01 |
Standard of Care |
26 |
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Section 5.02 |
Liability of Custodian for Actions of Other Persons |
27 |
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Section 5.03 |
Indemnification |
28 |
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Section 5.04 |
Investment Limitations |
29 |
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Section 5.05 |
Fund's Right to Proceed |
29 |
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ARTICLE VI COMPENSATION |
30 |
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ARTICLE VII TERMINATION |
30 |
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Section 7.01 |
Termination of Agreement as to One or More Funds |
30 |
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Section 7.02. |
Termination as to One or More Portfolios |
31 |
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ARTICLE VIII DEFINED TERMS |
31 |
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ARTICLE IX MISCELLANEOUS |
32 |
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Section 9.01. |
Execution of Documents, Etc |
32 |
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Section 9.02. |
Representative Capacity; Nonrecourse Obligations |
33 |
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Section 9.03. |
Several Obligations of the Funds and the Portfolios |
33 |
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Section 9.04 |
Representations and Warranties |
33 |
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Section 9.05 |
Entire Agreement |
34 |
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Section 9.06 |
Waivers and Amendments |
34 |
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Section 9.07 |
Interpretation |
35 |
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Section 9.08 |
Captions |
35 |
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Section 9.09. |
Governing Law |
35 |
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Section 9.10. |
Notices |
35 |
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Section 9.11. |
Assignment |
36 |
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Section 9.12. |
Counterparts |
36 |
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Section 9.13 |
Consent to Recording |
36 |
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Section 9.14 |
Confidentiality; Reporting under Securities Exchange Act of 1934 |
36 |
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Section 9.15 |
Survival of Obligations |
37 |
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Section 9.16 |
Additional Services |
37 |
APPENDICES
Appendix "A" |
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List of Funds and Portfolios |
Appendix "B" |
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List of Additional Custodians, Special Subcustodians and Foreign Subcustodians |
Appendix "C" |
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Procedures Relating to Custodian' Security Interest |
Appendix "D" |
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List of Central Funds and Fund of Funds Portfolios |
Appendix "E" |
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List of Transfer Agent Accounts and Foreign Exchange Accounts |
CUSTODIAN AGREEMENT
AGREEMENT made as of the day of 200 between each of the Investment Companies Listed on Appendix "A" hereto, as the same may be amended from time to time, (each a "Fund" and collectively the "Funds") and Brown Brothers Harriman & Company (the "Custodian").
WITNESSETH
WHEREAS, each Fund may itself represent, or may be organized with one or more series of shares each of which shall represent, an interest in a separate portfolio of cash, securities and other assets (all such existing and additional series now or hereafter listed on Appendix "A" being hereinafter referred to individually, as a "Portfolio," and collectively, as the "Portfolios"); and
WHEREAS, each Fund desires to appoint the Custodian as custodian on behalf of each of its Portfolios in accordance with the provisions of the Investment Company Act of 1940, as amended (the "1940 Act"), and the rules and regulations thereunder, under the terms and conditions set forth in this Agreement, and the Custodian has agreed so to act as custodian.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:
ARTICLE I
APPOINTMENT OF CUSTODIAN
On behalf of each of its Portfolios, each Fund hereby employs and appoints the Custodian as a custodian, subject to the terms and provisions of this Agreement. Each Fund shall deliver to the Custodian, or shall cause to be delivered to the Custodian, cash, securities and other assets owned by each of its Portfolios from time to time during the term of this Agreement and shall specify to which of its Portfolios such cash, securities and other assets are to be specifically allocated.
ARTICLE II
POWERS AND DUTIES OF CUSTODIAN
As custodian, the Custodian shall have and perform the powers and duties set forth in this Article II. Pursuant to and in accordance with Article IV hereof, the Custodian may appoint one or more Subcustodians or may maintain assets with one or more Eligible Securities Depositories (each as hereinafter defined) to exercise the powers and perform the duties of the Custodian set forth in this Article II and references to the Custodian in this Article II shall include any Subcustodian or Eligible Securities Depository so appointed or utilized, as applicable.
ARTICLE II.1. Safekeeping. The Custodian shall keep safely all cash, securities and other assets of each Fund's Portfolios delivered to the Custodian and, on behalf of such Portfolios, the Custodian shall, from time to time, accept delivery of cash, securities and other assets for safekeeping.
ARTICLE II.2. Manner of Holding Securities and Other Assets.
(a) Except to the extent precluded by Section 8-501(d) of the Uniform Commercial Code as in effect in the Commonwealth of Massachusetts ("UCC"), the Custodian shall hold all securities and other assets, other than cash, of a Fund's Portfolio that are delivered to it hereunder in a "securities account" with the Custodian for and in the name of such Portfolio and, except to the extent precluded by Section 8-501(d) of the UCC, shall treat all such assets, other than cash, as "financial assets" as those terms are used in the UCC. The Custodian shall at all times hold securities or other financial assets held for each Fund's Portfolios either: (i) by physical possession of the certificated securities or instruments representing such financial assets, in either registered or bearer form; or (ii) in book-entry form by maintaining "security entitlements," within the meaning of the UCC, with respect to such financial assets with (A) a Securities System (as hereinafter defined) in accordance with the provisions of Section 2.22(a) below or (B) an Eligible Securities Depository in accordance with the provisions of Section 2.22(b) below. The standards for the performance of the duties and obligations of the Custodian under UCC Article 8, including without limitation Section 8-504 through Section 8-508, with respect to securities entitlements of a Fund or its Portfolio(s) shall be as set forth under this Agreement.
(b) The Custodian shall at all times hold registered securities of each Portfolio in the name of the Custodian, the Portfolio or a nominee of either of them, unless specifically directed by Proper Instructions to hold such registered securities in so-called street name; provided that, in any event, all such securities and other assets shall be held in an account of the Custodian containing only assets of a Portfolio, or only assets held by the Custodian as a fiduciary or custodian for customers; and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein.
(c) Notwithstanding the provisions of the foregoing paragraphs of this Section 2.02, the Custodian is hereby authorized to maintain the shares of certain open-end management investment companies, managed by Fidelity Management & Research Company ("FMR") or its affiliates or successors as listed on Appendix "D" hereto, as the same may be amended from time to time in accordance with Section 9.06(e) hereof, (the "Central Funds") owned by the Portfolios, in book-entry form directly with the transfer agent or a designated sub-transfer agent of each such Central Fund ("Central Funds Transfer Agent"), subject to and in accordance with the following provisions:
(i) Such Central Fund shares shall be maintained in separate custodian accounts for each Portfolio in the Custodian's name or nominee, as custodian for such Portfolio or Portfolios.
(ii) The Custodian will implement appropriate control procedures (the "Central Fund Control Procedures") to ensure that (A) only authorized personnel of the Custodian will be authorized to give instructions to the Central Fund Transfer Agent in connection with a Portfolio's purchase or sale of Central Fund shares, (B) trade instructions sent to the Central Fund Transfer Agent are properly acknowledged by the Central Fund Transfer Agent, and (C) the Central Fund Transfer Agent's records of each Portfolio's holdings of Central Fund shares are properly reconciled with the Custodian's records.
(d) Notwithstanding the provisions of the foregoing paragraphs of this Section 2.02, the Custodian is hereby authorized to maintain the shares of certain open-end management investment companies (the "Underlying Funds") owned by one or more of the Fidelity Fund of Funds as listed on Appendix "D" hereto, as the same may be amended from time to time in accordance with the provisions of Section 9.06(e) hereof, (each a "Fund of Funds Portfolio" and collectively the "Fund of Funds Portfolios") in book-entry form directly with the transfer agent or a designated sub-transfer agent of each such Underlying Fund (an "Underlying Fund Transfer Agent"), subject to and in accordance with the following provisions:
(i) Such Underlying Fund shares shall be maintained in separate custodian accounts for each Fund of Funds Portfolio in the Custodian's name or nominee, as the custodian for such Fund of Funds Portfolio.
(ii) The Custodian will implement appropriate control procedures (the "Fund of Funds Portfolio Control Procedures") to ensure that the Underlying Fund Transfer Agent's records of each Fund of Funds Portfolio's holdings of Underlying Fund shares are properly reconciled with the Custodian's records.
ARTICLE II.3. Security Purchases. Upon receipt of Proper Instructions (as hereinafter defined), the Custodian shall pay for and receive securities purchased for the account of a Portfolio, provided that, payment shall be made by the Custodian only upon receipt of the securities by: (1) the Custodian; (2) a clearing corporation of a national securities exchange of which the Custodian is a member; (3) a Securities System; or (4) an Eligible Securities Depository. Notwithstanding the foregoing, upon receipt of Proper Instructions: (i) in the case of a repurchase agreement, the Custodian may release funds to a Securities System prior to the receipt of advice from the Securities System that the securities underlying such repurchase agreement have been transferred by book-entry into the Account (as hereinafter defined) maintained with such Securities System by the Custodian, provided that, the Custodian's instructions to the Securities System require that the Securities System may make payment of such funds to the other party to the repurchase agreement only upon transfer by book-entry of the securities underlying the repurchase agreement into the Account; (ii) in the case of time deposits, call account deposits, currency deposits, and other deposits, foreign exchange transactions, futures contracts or options, pursuant to Sections 2.09, 2.10, 2.12 and 2.13 hereof, the Custodian may make payment therefor before receipt of an advice or confirmation evidencing said deposit or entry into such transaction; (iii) in the case of the purchase of securities, the settlement of which occurs outside of the United States of America, the Custodian may make payment therefor and receive delivery of such securities in accordance with local custom and practice generally accepted by Institutional Clients (as hereinafter defined) in the country in which the settlement occurs, but in all events subject to the standard of care set forth in Article V hereof; (iv) in the case of the purchase of securities in which, in accordance with standard industry custom and practice generally accepted by Institutional Clients with respect to such securities, the receipt of such securities and the payment therefor take place in different countries, the Custodian may receive delivery of such securities and make payment therefor in accordance with standard industry custom and practice for such securities generally accepted by Institutional Clients, but in all events subject to the standard of care set forth in Article V hereof; (v) in the case of the purchase of Central Fund shares, the Custodian shall pay for and receive Central Fund shares purchased for the account of a Portfolio; provided that (A) the Custodian shall only send instructions to purchase such shares to the Central Fund Transfer Agent in accordance with the Central Fund Control Procedures ("Central Fund Purchase Instructions") upon receipt of Proper Instructions from the Fund, and (B) the Custodian shall release funds to the Central Fund Transfer Agent only after receiving acknowledgment from the Central Fund Transfer Agent that it has received the Central Fund Purchase Instructions; and (vi) in the case of the purchase of Underlying Fund shares for a Fund of Funds Portfolio, the Custodian shall pay for and receive such Underlying Fund shares purchased for the account of a Portfolio, provided that, (A) the Custodian shall only send instructions to purchase such shares to the Underlying Fund Transfer Agent in accordance with the Fund of Funds Portfolio Control Procedures ("Fund of Funds Portfolio Purchase Instructions") upon receipt of instructions from FMR's custody operations and (B) the Custodian shall release funds to the Underlying Fund Transfer Agent only after receiving confirmation from such Underlying Fund Transfer Agent that it has received the Fund of Funds Portfolio Purchase Instructions. For purposes of this Agreement, an "Institutional Client" shall mean a major commercial bank, corporation, insurance company, pension fund or substantially similar institution, which, as a substantial part of its business operations, purchases or sells securities and makes use of custodial services.
ARTICLE II.4. Exchanges of Securities. Upon receipt of Proper Instructions, the Custodian shall exchange securities held by it for the account of a Portfolio for other securities in connection with any reorganization, recapitalization, split-up of shares, change of par value, conversion or other event relating to the securities or the issuer of such securities, and shall deposit any such securities in accordance with the terms of any reorganization or protective plan. The Custodian shall, without receiving Proper Instructions: surrender securities in temporary form for definitive securities; surrender securities for transfer into the name of the Custodian, a Portfolio or a nominee of either of them, as permitted by Section 2.02(b); and surrender securities for a different number of certificates or instruments representing the same number of shares or same principal amount of indebtedness, provided that the securities to be issued will be delivered to the Custodian or a nominee of the Custodian.
ARTICLE II.5. Sales of Securities. (a) Upon receipt of Proper Instructions, the Custodian shall make delivery of securities which have been sold for the account of a Portfolio, but only against payment therefor in the form of: (1) cash, certified check, bank cashier's check, bank credit, or bank wire transfer; (2) credit to the account of the Custodian with a clearing corporation of a national securities exchange of which the Custodian is a member; or (3) credit to the Account of the Custodian with a Securities System or Eligible Securities Depository, in accordance with the provisions of Section 2.22(a) and Section 2.22(b) hereof. Notwithstanding the foregoing, upon the receipt of Proper Instructions: (i) in the case of the sale of securities, the settlement of which occurs outside of the United States of America, such securities shall be delivered and paid for in accordance with local custom and practice generally accepted by Institutional Clients in the country in which the settlement occurs, but in all events subject to the standard of care set forth in Article V hereof; (ii) in the case of the sale of securities in which, in accordance with standard industry custom and practice generally accepted by Institutional Clients with respect to such securities, the delivery of such securities and receipt of payment therefor take place in different countries, the Custodian may deliver such securities and receive payment therefor in accordance with standard industry custom and practice for such securities generally accepted by Institutional Clients, but in all events subject to the standard of care set forth in Article V hereof; (iii) in the case of securities held in physical form, such securities shall be delivered and paid for in accordance with "street delivery custom" to a broker or its clearing agent, against delivery to the Custodian of a receipt for such securities, provided that the Custodian shall have taken reasonable steps to ensure prompt collection of the payment for, or the return of, such securities by the broker or its clearing agent, and provided further that the Custodian shall not be responsible for the selection of or the failure or inability to perform of such broker or its clearing agent; (iv) in the case of Central Fund shares, the Custodian shall release Central Fund shares sold for the account of a Portfolio, provided that (A) the Custodian shall only send instructions to sell such shares to the Central Fund Transfer Agent in accordance with the Central Fund Control Procedures ("Central Fund Sell Instructions") upon receipt of Proper Instructions, and (B) such Central Fund Sell Instructions shall be properly confirmed by the Central Fund Transfer Agent; and (v) in the case of the sale of Underlying Fund shares of a Fund of Funds Portfolio, the Custodian shall release such Underlying Fund shares, provided that, the Custodian shall only send instructions to sell shares to an Underlying Fund Transfer Agent in accordance with the Fund of Funds Portfolio Control Procedures (the "Fund of Funds Portfolio Sell Instructions") upon receipt of Fund of Funds Portfolio Sell Instructions from FMR's custody operations.
ARTICLE II.6. Depositary Receipts. Upon receipt of Proper Instructions, the Custodian shall surrender securities to the depositary used for such securities by an issuer of American Depositary Receipts, Global Depository Receipts or International Depositary Receipts (hereinafter referred to, collectively, as "ADRs"), against a written receipt therefor adequately describing such securities and written evidence satisfactory to the Custodian that the depositary has acknowledged receipt of instructions to issue ADRs with respect to such securities in the name of the Custodian or a nominee of the Custodian, for delivery to the Custodian at such place as the Custodian may from time to time designate. Upon receipt of Proper Instructions, the Custodian shall surrender ADRs to the issuer thereof, against a written receipt therefor adequately describing the ADRs surrendered and written evidence satisfactory to the Custodian that the issuer of the ADRs has acknowledged receipt of instructions to cause its depository to deliver the securities underlying such ADRs to the Custodian.
ARTICLE II.7. Exercise of Rights; Tender Offers. Upon receipt of Proper Instructions, the Custodian shall: (a) deliver warrants, puts, calls, rights or similar securities to the issuer or trustee thereof, or to the agent of such issuer or trustee, for the purpose of exercise or sale, provided that the new securities, cash or other assets, if any, acquired as a result of such actions are to be delivered to the Custodian; and (b) deposit securities upon invitations for tenders thereof, provided that the consideration for such securities is to be paid or delivered to the Custodian, or the tendered securities are to be returned to the Custodian. Notwithstanding any provision of this Agreement to the contrary, the Custodian shall take all necessary action, unless otherwise directed to the contrary in Proper Instructions, to comply with the terms of all mandatory or compulsory exchanges, calls, tenders, redemptions, or similar rights of security ownership, and shall promptly notify each applicable Fund of such action in writing by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing.
ARTICLE II.8. Stock Dividends, Rights, Etc. The Custodian shall receive and collect all stock dividends, rights and other items of like nature and, upon receipt of Proper Instructions, take action with respect to the same as directed in such Proper Instructions.
ARTICLE II.9. Options. Upon receipt of Proper Instructions and in accordance with the provisions of any agreement between the Custodian, any registered broker-dealer and, if necessary, a Fund on behalf of any applicable Portfolio relating to compliance with the rules of the Options Clearing Corporation or of any registered national securities exchange or similar organization(s), the Custodian shall: (a) receive and retain confirmations or other documents, if any, evidencing the purchase or writing of an option on a security or securities index by the applicable Portfolio; (b) pledge or deposit and maintain in a segregated account, as applicable securities (either physically or by book-entry in a Securities System), cash or other assets; and (c) pay, release and/or transfer such securities, cash or other assets in accordance with notices or other communications evidencing the expiration, termination or exercise of such options furnished by the Options Clearing Corporation, the securities or options exchange on which such options are traded, or such other organization as may be responsible for handling such option transactions. Each Fund, on behalf of its applicable Portfolios, and the broker-dealer shall be solely responsible for the sufficiency of assets held in any segregated account established in compliance with applicable margin maintenance requirements and the performance of other terms of any option contract.
ARTICLE II.10. Futures Contracts. Upon receipt of Proper Instructions, the Custodian shall: (a) receive and retain confirmations, if any, evidencing the purchase or sale of a futures contract or an option on a futures contract by the applicable Portfolio; (b) deposit and maintain such cash, securities and other assets designated as initial, maintenance or variation "margin" deposits intended to secure the applicable Portfolio's performance of its obligations under any such futures contracts purchased or sold or any such options on futures contracts written by the Portfolio (i) in a segregated account established in accordance with the provisions of a futures margin procedural agreement among a Fund, on behalf of any applicable Portfolio, the Custodian and any futures commission merchant (a "Procedural Agreement"), designed to comply with the rules of the Commodity Futures Trading Commission and/or any commodity exchange or contract market (such as the Chicago Board of Trade), or any similar organization(s), regarding such margin deposits (a "Segregated Futures Margin Account"), or (ii) in a broker's margin account meeting the requirements of Rule 17f-6 under the 1940 Act, as the same may be amended from time to time (a "Broker's Futures Margin Account"); and (c) release to the applicable Portfolio any such assets held in a Segregated Futures Margin Account, or accept delivery of such assets back from a Broker's Margin Account, as the case may be. In the absence of Proper Instructions, the Custodian may release assets from and/or transfer assets into a Segregated Futures Margin Account only in accordance with the provisions of the applicable Procedural Agreement. Each Fund, on behalf of its applicable Portfolios, and the applicable futures commission merchant shall be solely responsible for the sufficiency of assets held in a Segregated Futures Margin Account or Broker's Futures Margin Account, as the case may be, in compliance with applicable margin maintenance requirements and the performance of any futures contract or option on a futures contract in accordance with its terms. For purposes of determining the Custodian's obligations with respect to any losses resulting from the acts or omissions of any futures commission merchant holding Portfolio assets in a Broker's Futures Margin Account, such futures commission merchant shall be deemed to be an Additional Custodian (as defined below), and the Custodian's liability shall be governed by the provisions of Section 5.02(c) hereof.
ARTICLE II.11. Borrowing. Upon receipt of Proper Instructions, the Custodian shall deliver securities of a Portfolio to lenders or their agents, or otherwise establish a segregated account as agreed to by the applicable Fund on behalf of such Portfolio and the Custodian, as collateral for borrowings effected by such Portfolio, provided that such borrowed money is payable by the lender (a) to or upon the Custodian's order, as Custodian for such Portfolio, and (b) concurrently with delivery of such securities.
ARTICLE II.12. Interest Bearing Deposits. Upon receipt of Proper Instructions directing the Custodian to purchase interest bearing fixed term and call deposits (hereinafter referred to collectively, as "Interest Bearing Deposits") for the account of a Portfolio, the Custodian shall purchase such Interest Bearing Deposits in the name of the Portfolio with such banks or trust companies (including the Custodian, any Subcustodian or any subsidiary or affiliate of the Custodian) (hereinafter referred to as "Banking Institutions") and in such amounts as the applicable Fund may direct pursuant to Proper Instructions. Such Interest Bearing Deposits may be denominated in U.S. Dollars or other currencies, as the applicable Fund on behalf of its Portfolio may determine and direct pursuant to Proper Instructions. The Custodian shall include in its records with respect to the assets of each Portfolio appropriate notation as to the amount and currency of each such Interest Bearing Bank Deposit, the accepting Banking Institution and all other appropriate details, and shall retain such forms of advice or receipt evidencing such account, if any, as may be forwarded to the Custodian by the Banking Institution. The responsibilities of the Custodian to each Fund for Interest Bearing Deposits accepted on the Custodian's books in the United States of America on behalf of the Fund's Portfolios shall be that of a U.S. bank for a similar deposit. The responsibilities of the Custodian to each Fund for Interest Bearing Deposits accepted on the Custodian's books in one of its non-U.S. branches on behalf of the Fund's Portfolios shall be that of a non-U.S. branch of a U.S. bank for a similar deposit. With respect to Interest Bearing Deposits other than those accepted on the Custodian's books, (a) the Custodian shall be responsible for the collection of income as set forth in Section 2.15 and the transmission of cash and instructions to and from such accounts; and (b) the Custodian shall have no duty with respect to the selection of the Banking Institution or, so long as the Custodian acts in accordance with Proper Instructions, for the failure of such Banking Institution to pay upon demand. Upon receipt of Proper Instructions, the Custodian shall take such reasonable actions as the applicable Fund deems necessary or appropriate to cause each such Interest Bearing Deposit Account to be insured to the maximum extent possible by all applicable deposit insurers including, without limitation, the Federal Deposit Insurance Corporation.
ARTICLE II.13. Foreign Exchange Transactions.
(a) Foreign Exchange Transactions Other Than as Principal. Upon receipt of Proper Instructions, the Custodian shall settle foreign exchange contracts or options to purchase and sell foreign currencies for spot and future delivery on behalf of and for the account of a Portfolio with such currency brokers or Banking Institutions as the applicable Fund may determine and direct pursuant to Proper Instructions. The Custodian shall be responsible for the transmission of cash and instructions to and from the currency broker or Banking Institution with which the contract or option is made, the safekeeping of all certificates and other documents and agreements evidencing or relating to such foreign exchange transactions and the maintenance of proper records as set forth in Section 2.25. The Custodian shall have no duty with respect to the selection of the currency brokers or Banking Institutions with which a Fund deals on behalf of its Portfolios or, so long as the Custodian acts in accordance with Proper Instructions, for the failure of such brokers or Banking Institutions to comply with the terms of any contract or option.
(b) Foreign Exchange Contracts as Principal. The Custodian shall not be obligated to enter into foreign exchange transactions as principal. However, if the Custodian has made available to a Fund its services as a principal in foreign exchange transactions, upon receipt of Proper Instructions, the Custodian shall enter into foreign exchange contracts or options to purchase and sell foreign currencies for spot and future delivery on behalf of and for the account of a Portfolio of such Fund with the Custodian as principal. The Custodian shall be responsible for the selection of the currency brokers or Banking Institutions and the failure of such currency brokers or Banking Institutions to comply with the terms of any contract or option.
(c) Payments. Notwithstanding anything to the contrary contained herein, upon receipt of Proper Instructions the Custodian may, in connection with a foreign exchange contract, make free outgoing payments of cash in the form of U.S. Dollars or foreign currency prior to receipt of confirmation of such foreign exchange contract or confirmation that the countervalue currency completing such contract has been delivered or received.
ARTICLE II.14. Securities Loans. Upon receipt of Proper Instructions, the Custodian shall, in connection with loans of securities by a Portfolio, deliver securities of such Portfolio to the borrower thereof prior to receipt of the collateral, if any, for such borrowing; provided that, in cases of loans of securities secured by cash collateral, the Custodian's instructions to the Securities System shall require that the Securities System deliver the securities of the Portfolio to the borrower thereof only upon receipt of the collateral for such borrowing. Upon receipt of Proper Instructions, the Custodian shall release the collateral received in respect of a loan of securities to the borrower against receipt of the loaned securities.
ARTICLE II.15. Collections. The Custodian shall, and shall cause each Subcustodian to: (a) collect amounts due and payable to each Fund with respect to portfolio securities and other assets of each of such Fund's Portfolios; (b) promptly credit to the account of each applicable Portfolio all income and other payments relating to portfolio securities and other assets held by the Custodian hereunder upon Custodian's receipt of such income or payments or as otherwise agreed in writing by the Custodian and the applicable Fund; (c) promptly endorse and deliver any instruments required to effect such collections; (d) promptly execute ownership and other certificates and affidavits for all federal, state and foreign tax purposes in connection with receipt of income, capital gains or other payments with respect to portfolio securities and other assets of each applicable Portfolio, or in connection with the purchase, sale or transfer of such securities or other assets; and (e) promptly file any certificates or other affidavits for the refund or reclaim of foreign taxes paid, and promptly notify each applicable Fund of any changes to law, interpretative rulings or procedures regarding such reclaims, and otherwise use all available measures customarily used to minimize the imposition of foreign taxes at source, and promptly inform each applicable Fund of alternative means of minimizing such taxes of which the Custodian shall become aware (or with the exercise of reasonable care should have become aware); provided, however, that with respect to portfolio securities registered in so-called street name, the Custodian shall use its best efforts to collect amounts due and payable to each Fund with respect to its Portfolios. The Custodian shall promptly notify each applicable Fund in writing by facsimile transmission, or in such other manner as each such Fund and the Custodian may agree in writing, if any amount payable with respect to portfolio securities or other assets of the Portfolios of such Fund(s) is not received by the Custodian when due. The Custodian shall not be responsible for the collection of amounts due and payable with respect to portfolio securities or other assets that are in default.
ARTICLE II.16. Dividends, Distributions and Redemptions. The Custodian shall promptly release funds or securities: (a) upon receipt of Proper Instructions, to one or more Distribution Accounts designated by the applicable Fund or Funds in such Proper Instructions; or (b) upon receipt of Special Instructions, as otherwise directed by the applicable Fund or Funds, for the purpose of the payment of dividends or other distributions to shareholders of each applicable Portfolio, and payment to shareholders who have requested repurchase or redemption of their shares of the Portfolio(s) (collectively, the "Shares"). For purposes of this Agreement, a "Distribution Account" shall mean an account established at a Banking Institution designated by the applicable Fund on behalf of one or more of its Portfolios in Special Instructions.
ARTICLE II.17. Proceeds from Shares Sold. The Custodian shall receive funds representing cash payments received for Shares issued or sold from time to time by the Funds, and shall promptly credit such funds to the account(s) of the applicable Portfolio(s). The Custodian shall promptly notify each applicable Fund of Custodian's receipt of cash in payment for Shares issued by such Fund by facsimile transmission or in such other manner as the Fund and Custodian may agree in writing. Upon receipt of Proper Instructions, the Custodian shall: (a) deliver all federal funds received by the Custodian in payment for Shares in payment for such investments as may be set forth in such Proper Instructions and at a time agreed upon between the Custodian and the applicable Fund; and (b) make federal funds available to the applicable Fund as of specified times agreed upon from time to time by the applicable Fund and the Custodian, in the amount of checks received in payment for Shares which are deposited to the accounts of each applicable Portfolio.
ARTICLE II.18. Proxies, Notices, Etc. The Custodian shall deliver to each applicable Fund, in the most expeditious manner practicable, all forms of proxies, all notices of meetings, and any other notices or announcements affecting or relating to securities owned by one or more of the applicable Fund's Portfolios that are received by the Custodian, any Subcustodian, or any nominee of either of them (or with the exercise of reasonable care that the Custodian, any Subcustodian, or any nominee of either of them should have become aware), and, upon receipt of Proper Instructions, the Custodian shall execute and deliver, or cause such Subcustodian or nominee to execute and deliver, such proxies or other authorizations as may be required. The Custodian recognizes that this requirement applies to all securities and that each Fund's investments in non-U.S. securities may entail proxies and notices, which, for the avoidance of doubt, are explicitly covered hereunder. In the event that a Fund invests in non-U.S. securities in a market in which the Custodian does not offer proxy voting services, the Custodian shall promptly notify such Fund. Except as directed pursuant to Proper Instructions, neither the Custodian nor any Subcustodian or nominee shall vote upon any such securities, or execute any proxy to vote thereon, or give any consent or take any other action with respect thereto. In the event that the Custodian is unable to vote upon any such securities in accordance with Proper Instructions for any reason including, but not limited to, the failure of the applicable Fund to deliver any necessary powers of attorney or other documentation, the Custodian shall promptly notify (subject to market practices and rules) the applicable Fund.
ARTICLE II.19. Bills and Other Disbursements. Upon receipt of Proper Instructions, the Custodian shall pay or cause to be paid, all bills, statements, or other obligations of each Portfolio.
ARTICLE II.20. Nondiscretionary Functions. The Custodian shall attend to all nondiscretionary details in connection with the sale, exchange, substitution, purchase, transfer or other dealings with securities or other assets of each Portfolio held by the Custodian, except as otherwise directed from time to time pursuant to Proper Instructions.
ARTICLE II.21. Bank Accounts.
(a) Accounts with the Custodian and any Subcustodians. The Custodian shall open and operate a bank account or accounts (hereinafter referred to collectively, as "Bank Accounts") on the books of the Custodian or any Subcustodian provided that such account(s) shall be in the name of the Custodian or a nominee of the Custodian, for the account of a Portfolio, and shall be subject only to the draft or order of the Custodian; and provided further, however, that such Bank Accounts in countries other than the United States of America may be held in an account of the Custodian containing only assets held by the Custodian as a fiduciary or custodian for customers, and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein. Such Bank Accounts may be denominated in either U.S. Dollars or other currencies. The responsibilities of the Custodian to each applicable Fund for deposits accepted on the Custodian's books in the United States of America shall be that of a U.S. bank for a similar deposit. The responsibilities of the Custodian to each applicable Fund for deposits accepted on the Custodian's books in its non-U.S. branches shall be that of a non-U.S. branch of a U.S. bank for a similar deposit. The responsibilities of the Custodian to each applicable Fund for deposits accepted on any Subcustodian's books shall be governed by the provisions of Section 5.02.
(b) Accounts With Other Banking Institutions. The Custodian may open and operate Bank Accounts on behalf of a Portfolio, in the name of the Custodian or a nominee of the Custodian, at a Banking Institution other than the Custodian or any Subcustodian, provided that such account(s) shall be in the name of the Custodian or a nominee of the Custodian, for the account of a Portfolio, and shall be subject only to the draft or order of the Custodian; provided however, that such Bank Accounts may be held in an account of the Custodian containing only assets held by the Custodian as a fiduciary or custodian for customers, and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein. Such Bank Accounts may be denominated in either U.S. Dollars or other currencies. Subject to the provisions of Section 5.01(a), the Custodian shall be responsible for the selection of the Banking Institution and for the failure of such Banking Institution to pay according to the terms of the deposit.
(c) Transfer Agent and Foreign Exchange Settlement Accounts. The Custodian maintains certain Bank Accounts at the Custodian on behalf of the Funds (the "Transfer Agent Accounts") to facilitate the efficient transfer of cash to and from (i) the Bank Accounts established and maintained at the Custodian and (ii) bank accounts established and maintained at Banking Institutions other than the Custodian or any Subcustodian. The Custodian also maintains certain Bank Accounts at the Custodian on behalf of the Funds (the "Foreign Exchange Accounts") to facilitate the settlement of foreign currency transactions on a net basis, for immediate further allocation to those Funds participating in each foreign currency transaction. Each of the Funds and Custodian agree that the Custodian shall provide the Transfer Agent Accounts and the Foreign Exchange Accounts established and maintained by such Custodian with the same treatment as other Bank Accounts established and maintained pursuant to this Agreement, and any and all applicable representations, warranties, covenants, conditions, agreement, rights, obligations or duties of the Funds or the Custodian with respect to such Transfer Agent Accounts and Foreign Exchange Accounts shall be governed by the corresponding provisions of this Agreement. The Custodian shall also specify in the records it maintains with respect to the Funds and their Bank Accounts and any other records maintained or required to be maintained by this Agreement or applicable regulatory requirements by the Custodian, its relationship as Custodian pursuant to which the Transfer Agent Accounts and the Foreign Exchange Accounts are maintained in order to comply with the any applicable rules, regulations, or other requirements of the Federal Deposit Insurance Corporation. The Custodian agrees that such records shall be conclusive evidence of the individual and not joint interest of each Fund in any amounts then credited to the Transfer Agent Accounts or the Foreign Exchange Accounts. Each of the Transfer Agent Accounts and Foreign Exchange Accounts designated by the Funds is set forth on Appendix E to this Agreement, as the same may be amended from time to time in accordance with the terms of this Agreement. The Funds have authorized Fidelity Service Company, Inc., Fidelity Investments Institutional Operations Company, Inc. or any successor thereof to act on their behalf with respect to transactions involving the Transfer Agent Accounts.
(d) Deposit Insurance. Upon receipt of Proper Instructions, the Custodian shall take such reasonable actions as the applicable Fund deems necessary or appropriate to cause each deposit account established by the Custodian pursuant to this Section 2.21 to be insured to the maximum extent possible by all applicable deposit insurers including, without limitation, the Federal Deposit Insurance Corporation.
ARTICLE II.22. Deposit of Fund Assets in Securities Systems and Eligible Securities Depositories. (a) The Custodian may deposit and/or maintain domestic securities owned by a Portfolio in: (1) The Depository Trust Company; (2) any book-entry system as provided in (i) Subpart O of Treasury Circular No. 300, 31 CFR 306.115, (ii) Subpart B of Treasury Circular Public Debt Series No. 27-76, 31 CFR 350.2, or (iii) the book-entry regulations of federal agencies substantially in the form of 31 CFR 306.115; or (3) any other domestic clearing agency registered with the Securities and Exchange Commission ("SEC") under Section 17A of the Securities Exchange Act of 1934 (or as may otherwise be authorized by the SEC to serve in the capacity of depository or clearing agent for the securities or other assets of investment companies) which acts as a securities depository and the use of which each applicable Fund has previously approved by Special Instructions (as hereinafter defined) (each of the foregoing being referred to in this Agreement as a "Securities System"). Use of a Securities System shall be in accordance with applicable Federal Reserve Board and SEC rules and regulations, if any, and subject to the following provisions:
(a) The Custodian may deposit and/or maintain securities held hereunder in a Securities System, provided that such securities are represented in an account ("Account") of the Custodian in the Securities System which Account shall not contain any assets of the Custodian other than assets held as a fiduciary, custodian, or otherwise for customers and shall be so designated on the books and records of the Securities System.
(i) The Securities System shall be obligated to comply with the Custodian's directions with respect to the securities held in such Account and shall not be entitled to a lien against the assets in such Account for extensions of credit to the Custodian other than for payment of the purchase price of such assets.
(1) Each Fund hereby designates the Custodian as the party in whose name any securities deposited by the Custodian in the Account are to be registered or recorded.
(2) The books and records of the Custodian shall at all times identify those securities belonging to each Portfolio which are maintained in a Securities System.
(3) The Custodian shall pay for securities purchased for the account of a Portfolio only upon (w) receipt of advice from the Securities System that such securities have been transferred to the Account of the Custodian, and (x) the making of an entry on the records of the Custodian to reflect such payment and transfer for the account of such Portfolio. The Custodian shall transfer securities sold for the account of a Portfolio only upon (y) receipt of advice from the Securities System that payment for such securities has been transferred to the Account of the Custodian, and (z) the making of an entry on the records of the Custodian to reflect such transfer and payment for the account of such Portfolio. The Custodian shall at all times maintain suitable documentation, such as confirmations, position statements and other records, stored in an easily accessible format, commensurate with industry and regulatory standards, that shall identify transfers of securities from the Securities System for the account of such Portfolio. The Custodian shall deliver to each applicable Fund on the next succeeding Business Day daily transaction reports which shall include each day's transactions in the Securities System for the account of each applicable Portfolio. Such transaction reports shall be delivered to each applicable Fund or any agent designated by such Fund pursuant to Proper Instructions, by computer or in such other manner as such Fund and the Custodian may agree in writing.
(4) The Custodian shall, if requested by a Fund pursuant to Proper Instructions, provide such Fund with all reports obtained by the Custodian or any Subcustodian with respect to a Securities System's accounting system, internal accounting control and procedures for safeguarding securities deposited in the Securities System.
(5) Upon receipt of Special Instructions, the Custodian shall terminate the use of any Securities System (except the federal book-entry system) on behalf of any Portfolio as promptly as practicable and shall take all actions reasonably practicable to safeguard the securities of any Portfolio maintained with such Securities System.
(b) The Custodian may deposit and/or maintain "Foreign Assets" (as defined in Rule 17f-5 under the 1940 Act, as the same may be amended from time to time ("Rule 17f-5")), owned by a Portfolio in a securities depository located outside the United States of America that the Custodian has determined meets the definition of "Eligible Securities Depository" under Rule 17f-7(b)(1) under the 1940 Act, as the same may be amended from time to time ("Rule 17f-7"), or that has otherwise been made exempt pursuant to an exemptive order of the SEC or no-action letter of the staff of the SEC (each of the foregoing being referred to in this Agreement as an "Eligible Securities Depository"), provided that prior to the deposit or maintenance of Foreign Assets of a Fund with a securities depository located outside the United States of America, the Custodian shall have certified in writing to the Fund, on behalf of its Portfolios, that the securities depository is an "Eligible Securities Depository". Use of an Eligible Securities Depository shall be in accordance with applicable SEC rules and regulations, in particular Rule 17f-7 under the 1940 Act, and subject to the following provisions:
(i) The Custodian or any Subcustodian may deposit and/or maintain Foreign Assets held hereunder in an Eligible Securities Depository, provided that such Foreign Assets are represented in an Account of the Custodian or Subcustodian in the Eligible Securities Depository which Account shall not contain any assets of the Custodian or Subcustodian other than assets held as a fiduciary, custodian, or otherwise for customers and shall be so designated on the books and records of the Eligible Securities Depository unless the Fund by Special Instructions permits another manner of holding, representing and/or designating a Fund's Foreign Assets.
(1) The Custodian shall, in accordance with the standard of care set forth in Section 5.01(a) hereof, be responsible for: (A) providing the Fund or its designee, on behalf of its applicable Portfolio(s), an analysis (in form and substance reasonably satisfactory to the Fund) of the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository; (B) establishing a system to monitor the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository; (C) monitoring the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository on a continuing basis; and (D) promptly notifying the Fund of any material change in the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository.
(2) The Eligible Securities Depository shall be obligated to comply with the Custodian's or Subcustodian's directions with respect to the Foreign Assets held in such Account, provided that the Foreign Assets held in such Account shall not be subject to any right, charge, security interest, lien or claim of any kind in favor of the Custodian or Subcustodian (or either of their respective creditors), except a claim for reasonable payment for their safe custody or administration.
(3) Each Fund hereby designates the Custodian or each Subcustodian as the party in whose name any Foreign Assets deposited by the Custodian or the Subcustodian in the Account are to be registered or recorded, provided, however, that the Custodian may register or record Foreign Assets of a Fund in the name of the Fund or other nominee for the Fund upon the Custodian's provision of written notice to the Fund of such proposed registration or recordation at least 5 Business Days prior to such registration or recordation.
(4) The books and records of the Custodian shall at all times identify those Foreign Assets belonging to each Portfolio which are maintained in an Eligible Securities Depository.
(5) The Custodian shall pay for Foreign Assets purchased for the account of a Portfolio only upon (w) receipt of advice from the Eligible Securities Depository that such Foreign Assets have been transferred to the Account of the Custodian or Subcustodian, and (x) the making of an entry on the records of the Custodian to reflect such payment and transfer for the account of such Portfolio, provided however, if required under the laws of the jurisdiction in which the Eligible Securities Depository is located or pursuant to the rules of an Eligible Securities Depository, the Custodian may receive delivery of such securities and make payment therefor in accordance with such applicable laws or rules of the Eligible Securities Depository, but in all events subject to the standard of care set forth in Section 5.01(a) hereof. The Custodian or Subcustodian shall transfer Foreign Assets sold for the account of a Portfolio only upon (y) receipt of advice from the Eligible Securities Depository that payment for such Foreign Assets has been transferred to the Account of the Custodian or Subcustodian, and (z) the making of an entry on the records of the Custodian to reflect such transfer and payment for the account of such Portfolio, provided however, if required under the laws of the jurisdiction in which the Eligible Securities Depository is located or pursuant to the rules of an Eligible Securities Depository, the Custodian may make payment therefor and receive delivery of such securities in accordance with such applicable laws or rules of the Eligible Securities Depository, but in all events subject to the standard of care set forth in Section 5.01(a) hereof. Copies of all advices from the Eligible Securities Depository (or other suitable documentation commensurate with industry and regulatory standards) relating to transfers of Foreign Assets for the account of a Portfolio shall identify such Portfolio or the Custodian or Subcustodian who is holding the assets of such Portfolio and shall be maintained for such Portfolio by the Custodian. The Custodian shall deliver to each applicable Fund no later than the next succeeding Business Day, or at such other time or times as such Fund and the Custodian may agree in writing, daily transaction reports which shall include each day's transactions in the Eligible Securities Depository for the account of each applicable Portfolio. Such transaction reports shall be delivered to each applicable Fund or any agent designated by such Fund pursuant to Proper Instructions, by electronic device or system (including without limitation, computers) or in such other manner as such Fund and the Custodian may agree in writing.
(6) The Custodian shall, if requested by a Fund or its designee pursuant to Proper Instructions, provide such Fund with all reports obtained by the Custodian or any Subcustodian with respect to an Eligible Securities Depository's accounting system, internal accounting controls, and procedures for safeguarding Foreign Assets deposited in the Eligible Securities Depository.
(7) The Custodian (A) shall terminate the use of any Eligible Securities Depository on behalf of any Portfolio as soon as reasonably practicable and shall take all actions reasonably practicable to safeguard the Foreign Assets of any Portfolio maintained with such Eligible Securities Depository: (1) upon receipt of Special Instructions; or (2), in the absence of the receipt of Special Instructions, if the custody arrangement with the Eligible Securities Depository at any time ceases to satisfy the requirements of Rule 17f-7(b)(1), and (B) shall provide the Funds or their respective designees, on behalf of the Portfolios, with written notification of any termination of the Custodian's use of an Eligible Securities Depository at least 90 Business Days prior to the effective date of the proposed termination, unless the Funds in their discretion permit a shorter notification period.
(8) Each Eligible Securities Depository through which the Custodian maintains Foreign Assets of the applicable Portfolio(s) and the countries where they may hold Foreign Assets of the applicable Portfolio(s) shall be listed on Appendix "B" attached hereto, as the same may be amended from time to time in accordance with the provisions of Section 9.06(c) hereof.
ARTICLE II.23. Other Transfers.
(a) Upon receipt of Proper Instructions, the Custodian shall transfer to or receive from a third party that has been appointed to serve as an additional custodian of one or more Portfolios (an "Additional Custodian") securities, cash and other assets of such Portfolio(s) in accordance with such Proper Instructions. Each Additional Custodian shall be identified as such on Appendix "B", as the same may be amended from time to time in accordance with the provisions of Section 9.06(c) hereof.
(b) Upon receipt of Special Instructions, the Custodian shall make such other dispositions of securities, funds or other property of a Portfolio in a manner or for purposes other than as expressly set forth in this Agreement, provided that the Special Instructions relating to such disposition shall include a statement of the purpose for which the delivery is to be made, the amount of funds and/or securities to be delivered, and the name of the person or persons to whom delivery is to be made, and shall otherwise comply with the provisions of Sections 3.01 and 3.03 hereof.
ARTICLE II.24. Establishment of Segregated Account. Upon receipt of Proper Instructions, the Custodian shall establish and maintain on its books a segregated account or accounts for and on behalf of a Portfolio, into which account or accounts may be transferred cash and/or securities or other assets of such Portfolio, including securities maintained by the Custodian in a Securities System pursuant to Section 2.22(a) hereof or an Eligible Securities Depository pursuant to Section 2.22(b) hereof, said account or accounts to be maintained: (a) for the purposes set forth in Sections 2.09, 2.10 and 2.11 hereof; (b) for the purposes of compliance by the Portfolio with the procedures required by Investment Company Act Release No. 10666, or any subsequent release or releases of the SEC or SEC rules or regulations relating to the maintenance of segregated accounts by registered investment companies; or (c) for such other purposes as set forth, from time to time, in Special Instructions.
ARTICLE II.25. Custodian's Books and Records. The Custodian shall provide any assistance reasonably requested by a Fund in the preparation of reports to such Fund's shareholders and others, audits of accounts, and other ministerial matters of like nature. The Custodian shall maintain complete and accurate records with respect to securities and other assets held for the accounts of each Portfolio as required by the rules and regulations of the SEC applicable to investment companies registered under the 1940 Act, including: (a) journals or other records of original entry containing a detailed and itemized daily record of all receipts and deliveries of securities (including certificate and transaction identification numbers, if any), and all receipts and disbursements of cash; (b) ledgers or other records reflecting (i) securities in transfer, (ii) securities in physical possession, (iii) securities borrowed, loaned or collateralizing obligations of each Portfolio, (iv) monies borrowed and monies loaned (together with a record of the collateral therefor and substitutions of such collateral), (v) dividends and interest received, (vi) the amount of tax withheld by any person in respect of any collection made by the Custodian or any Subcustodian, and (vii) the amount of reclaims or refunds for foreign taxes paid; and (c) cancelled checks and bank records related thereto. The Custodian shall keep such other books and records of each Fund as such Fund shall reasonably request. All such books and records maintained by the Custodian shall be maintained in a form acceptable to the applicable Fund and in compliance with the rules and regulations of the SEC, including, but not limited to, books and records required to be maintained by Section 31(a) of the 1940 Act and the rules and regulations from time to time adopted thereunder. All books and records maintained by the Custodian pursuant to this Agreement shall at all times be the property of each applicable Fund and shall be available during normal business hours for inspection and use by such Fund and its agents, including, without limitation, its independent certified public accountants. Notwithstanding the preceding sentence, no Fund shall take any actions or cause the Custodian to take any actions which would cause, either directly or indirectly, the Custodian to violate any applicable laws, regulations or orders.
ARTICLE II.26. Opinion of Fund's Independent Certified Public Accountants. The Custodian shall take all reasonable action as a Fund may request to obtain from year to year favorable opinions from such Fund's independent certified public accountants with respect to the Custodian's activities hereunder in connection with the preparation of the Fund's Form N-1A and the Fund's Form N-CSR or other periodic reports to the SEC and with respect to any other requirements of the SEC or the 1940 Act and the rules and regulations thereunder.
ARTICLE II.27. Reports by Independent Certified Public Accountants. At the request of a Fund, the Custodian shall deliver to such Fund a written report prepared by the Custodian's independent certified public accountants with respect to the services provided by the Custodian under this Agreement, including, without limitation, the Custodian's accounting system, internal accounting control and procedures for safeguarding cash, securities and other assets, including cash, securities and other assets deposited and/or maintained in a Securities System, Eligible Securities Depository or with a Subcustodian. Such report shall be of sufficient scope and in sufficient detail as may reasonably be required by any Fund and as may reasonably be obtained by the Custodian.
ARTICLE II.28. Overdraft Facility. In the event that the Custodian is directed by Proper Instructions to make any payment or transfer of funds on behalf of a Portfolio for which there would be, at the close of business on the date of such payment or transfer, insufficient funds held by the Custodian on behalf of such Portfolio, the Custodian may, in its discretion, provide an overdraft (an "Overdraft") to the applicable Fund on behalf of such Portfolio, in an amount sufficient to allow the completion of such payment. In the event of an overdraft to a Transfer Agent Account, upon request by the Custodian, the Funds shall promptly identify which Funds or which of their Portfolios are responsible for such overdraft in such Transfer Agent Accounts. Any Overdraft provided hereunder: (a) shall be payable on the next Business Day, unless otherwise agreed by the applicable Fund and the Custodian; and (b) shall accrue interest from the date of the Overdraft to the date of payment in full by the applicable Fund on behalf of the applicable Portfolio at a rate agreed upon in writing, from time to time, by the Custodian and the applicable Fund. The Custodian and each Fund acknowledge that the purpose of such Overdrafts is to temporarily finance the purchase or sale of securities for prompt delivery in accordance with the terms hereof, or to meet emergency expenses not reasonably foreseeable by such Fund. The Custodian shall promptly notify each applicable Fund in writing (an "Overdraft Notice") of any Overdraft by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing. At the request of the Custodian, each applicable Fund, on behalf of one or more of its Portfolios, shall pledge, assign and grant to the Custodian a security interest in certain specified securities of the applicable Portfolio, as security for Overdrafts provided to such Portfolio, under the terms and conditions set forth in Appendix "C" attached hereto. Notwithstanding anything herein to the contrary, except to the extent expressly provided for in Appendix "C", the Custodian hereby waives and agrees that it shall not claim, assert or enforce a lien, encumbrance or security interest in any of the assets of any Portfolio.
ARTICLE II.29. Insurance Requirements.
(a) The Custodian shall, at its own expense, procure and maintain: (i) workers compensation insurance for its own employees in an amount not less than the statutory limits under all applicable statutes, rules and regulations in each of the states in which Custodian operates and under all applicable federal statutes, rules and regulations, (ii) employers liability insurance in an amount not less than $1,000,000 per occurrence, (iii) comprehensive general liability insurance in an amount not less than $1,000,000 per occurrence, (iv) comprehensive automobile liability (including automobile non-ownership liability) insurance in a combined single limit amount of not less than $1,000,000 per occurrence, (v) umbrella or excess liability insurance providing coverages in excess of the coverages listed in (ii), (iii) and (iv) above in an amount not less than $5,000,000 per occurrence, (vi) errors and omission liability insurance in an amount not less than $10,000,000 per claim, (vii) a fidelity bond in an amount not less than $10,000,000 per loss, and (viii) electronic and computer crime insurance in an amount not less than $10,000,000 per loss, provided however that the term "Custodian" in this Section 2.29 shall not include a Subcustodian or Eligible Securities Depository. Nothing in this Section 2.29 shall be deemed to limit the Custodian's liability to the types or coverage amounts specified above or to limit any coverage under any of Custodian's insurance policies.
(b) Concurrent with the execution of this Agreement and, upon the request of a Fund, on each anniversary thereafter, Custodian shall provide a "certificate of insurance" to each Fund that evidences that policies, bonds or similar agreements providing the types and amounts of coverage specified in paragraph (a) of this section 2.29 have been entered into and are in full force and effect.
ARTICLE II.30. Provision of Information. At the request of a Fund, the Custodian shall promptly provide to such Fund all information relating to such Fund's, or any of its Portfolio's, cash, securities, and other assets which may be reasonably requested by such Fund in order to determine the amount to be paid to the Custodian under Article VI hereof. Such information shall be delivered to such Fund at such time(s) and in such form(s) specified by such Fund.
ARTICLE II.31. Compliance and Internal Control Reports. The Custodian shall promptly notify each Fund of each determination of significant deficiencies, material weaknesses or inadequacies in the internal accounting controls of the Custodian. In addition, in order to assist the Fund in complying with its obligations under applicable laws and regulations, the Custodian shall promptly provide to each Fund such periodic reports and reasonable documentation relating to the services provided by the Custodian to the Fund as the Fund may request from time to time, including, but not limited to, certifications regarding compliance with procedures for safekeeping, recordkeeping and reporting of the Fund's assets and transactions pursuant to this Agreement.
ARTICLE II.32. Local Regulatory Matters. The Custodian shall assist each Fund in complying with regulations and market practices of jurisdictions other than the United States of America applicable to the Fund's Foreign Assets as the Fund may reasonably request from time to time. Such assistance may include, but not be limited to, soliciting information and guidance from depositories, exchanges and regulators; obtaining legal opinions at the expense of the relevant Fund or Funds but only after such Fund or Funds have been notified and agree in writing to the amount of such expenses; acting as a Fund's representative (if required by local law) in making filings; and providing such other assistance with respect to its Foreign Assets as the Fund may reasonably request. Based on what the Custodian considers to be reasonably reliable sources of information, including its Foreign Subcustodians, Custodian shall inform each Fund as to the Custodian's understanding of the Fund's rights, duties and obligations under regulations and market practices of jurisdictions other than the United States of America in connection with actions taken by the Fund or the Custodian, including, but not limited to, corporate actions involving the Fund's securities.
ARTICLE III
PROPER INSTRUCTIONS, SPECIAL INSTRUCTIONS
AND RELATED MATTERS
ARTICLE III.1. Proper Instructions and Special Instructions.
(a) Proper Instructions. As used herein, the term "Proper Instructions" shall mean: (i) a tested telex, a written (including, without limitation, facsimile transmission) request, direction, instruction or certification signed or initialed by or on behalf of the applicable Fund by one or more Authorized Persons (as hereinafter defined); (ii) a telephonic or other oral communication by one or more Authorized Persons; or (iii) a communication effected directly between an electro-mechanical or electronic device or system (including, without limitation, computers) by or on behalf of the applicable Fund by one or more Authorized Persons; provided, however, that communications of the types described in clauses (ii) and (iii) above purporting to be given by an Authorized Person shall be considered Proper Instructions only if the Custodian reasonably believes such communications to have been given by an Authorized Person with respect to the transaction involved. Proper Instructions in the form of oral communications shall be confirmed by the applicable Fund by tested telex or in writing in the manner set forth in clause (i) above, but the lack of such confirmation shall in no way affect any action taken by the Custodian in reliance upon such oral instructions prior to the Custodian's receipt of such confirmation. Proper Instructions may relate to specific transactions or to types or classes of transactions, and may be in the form of standing instructions.
(b) Special Instructions. As used herein, the term "Special Instructions" shall mean Proper Instructions countersigned or confirmed in writing by the Treasurer or any Deputy or Assistant Treasurer of the applicable Fund or any other person designated by the Treasurer of such Fund in writing, which countersignature or confirmation shall be (i) included on the same instrument containing the Proper Instructions or on a separate instrument relating thereto, and (ii) delivered by hand, by facsimile transmission, or in such other manner as the applicable Fund and the Custodian agree in writing.
(c) Address for Proper Instructions and Special Instructions. Proper Instructions and Special Instructions shall be delivered to the Custodian at the address and/or telephone, telecopy or telex number agreed upon from time to time by the Custodian and the applicable Fund.
ARTICLE III.2. Authorized Persons. Concurrently with the execution of this Agreement and from time to time thereafter, as appropriate, each Fund shall deliver to the Custodian, duly certified as appropriate by a Treasurer or any Deputy or Assistant Treasurer of such Fund, a certificate setting forth: (a) the names, titles, signatures and scope of authority of all persons authorized to give Proper Instructions or any other notice, request, direction, instruction, certificate or instrument on behalf of such Fund (collectively, the "Authorized Persons" and individually, an "Authorized Person"); and (b) the names, titles and signatures of those persons authorized to issue Special Instructions. Such certificate may be accepted and relied upon by the Custodian as conclusive evidence of the facts set forth therein and shall be considered to be in full force and effect until delivery to the Custodian of a similar certificate to the contrary. Upon delivery of a certificate which deletes the name(s) of a person previously authorized by a Fund to give Proper Instructions or to issue Special Instructions, such persons shall no longer be considered an Authorized Person or authorized to issue Special Instructions for that Fund.
ARTICLE III.3. Persons Having Access to Assets of the Portfolios. Notwithstanding anything to the contrary contained in this Agreement, no Authorized Person, Trustee, officer, employee or agent of any Fund shall have physical access to the assets of any Portfolio of that Fund held by the Custodian nor shall the Custodian deliver any assets of a Portfolio for delivery to an account of such person; provided, however, that nothing in this Section 3.03 shall prohibit (a) any Authorized Person from giving Proper Instructions, or any person authorized to issue Special Instructions from issuing Special Instructions, so long as such action does not result in delivery of or access to assets of any Portfolio prohibited by this Section 3.03; or (b) each Fund's independent certified public accountants from examining or reviewing the assets of the Portfolios of the Fund held by the Custodian. Each Fund shall deliver to the Custodian a written certificate identifying such Authorized Persons, Trustees, officers, employees and agents of such Fund.
ARTICLE III.4. Actions of Custodian Based on Proper Instructions and Special Instructions. So long as and to the extent that the Custodian acts in accordance with (a) Proper Instructions or Special Instructions, as the case may be, and (b) the terms of this Agreement, the Custodian shall not be responsible for the title, validity or genuineness of any property, or evidence of title thereof, received by it or delivered by it pursuant to this Agreement.
ARTICLE IV
SUBCUSTODIANS
The Custodian may, from time to time, in accordance with the relevant provisions of this Article IV, appoint one or more Domestic Subcustodians, Foreign Subcustodians, Interim Subcustodians and Special Subcustodians to act on behalf of a Portfolio. (For purposes of this Agreement, all duly appointed Domestic Subcustodians, Foreign Subcustodians, Interim Subcustodians, and Special Subcustodians are hereinafter referred to collectively, as "Subcustodians.")
ARTICLE IV.1. Domestic Subcustodians. The Custodian may, at any time and from time to time, appoint any bank as defined in Section 2(a)(5) of the 1940 Act meeting the requirements of a custodian under Section 17(f) of the 1940 Act and the rules and regulations thereunder, to act on behalf of one or more Portfolios as a subcustodian for purposes of holding cash, securities and other assets of such Portfolios and performing other functions of the Custodian within the United States (a "Domestic Subcustodian"); provided that, the Custodian shall notify each applicable Fund in writing of the identity and qualifications of any proposed Domestic Subcustodian at least thirty (30) days prior to appointment of such Domestic Subcustodian, and such Fund may, in its sole discretion, by written notice to the Custodian executed by an Authorized Person disapprove of the appointment of such Domestic Subcustodian. If, following notice by the Custodian to each applicable Fund regarding appointment of a Domestic Subcustodian and the expiration of thirty (30) days after the date of such notice, such Fund shall have failed to notify the Custodian of its disapproval thereof, the Custodian may, in its discretion, appoint such proposed Domestic Subcustodian as its subcustodian.
ARTICLE IV.2. Foreign Subcustodians and Interim Subcustodians.
(a) Foreign Subcustodians. Subject to and in accordance with the following provisions, the Board of Trustees or other governing body or entity of each Fund, on behalf of its applicable Portfolio(s), hereby delegates its responsibilities as set forth in Rule 17f-5 under the 1940 Act, to the Custodian and appoints the Custodian as its "Foreign Custody Manager" (as such term is defined in Rule 17f-5), and the Custodian hereby accepts such delegation and appointment and agrees to (1) act on behalf of the applicable Fund(s) and Portfolio(s) in such capacity, (2) perform the responsibilities set forth in Rule 17f-5, and (3) exercise the standard of care set forth in Section 5.01(a) hereof in performing its responsibilities hereunder and under Rule 17f-5, except to the extent Rule 17f-5 provides a higher standard, in which case that standard shall apply.
(i) Subject to and in accordance with the provisions of Rule 17f-5, the Custodian may, at any time and from time to time, appoint: (A) any "Qualified Foreign Bank" (as such term is defined in Rule 17f-5), (B) any majority-owned direct or indirect subsidiary of a "U.S. Bank" (as such term is defined in Rule 17f-5) or U.S. bank holding company meeting the requirements of an "Eligible Foreign Custodian," (as such term is defined in Rule 17f-5), (C) any other entity which by order of the SEC, or by no-action letter of the staff of the SEC is exempt from meeting the requirements of an "Eligible Foreign Custodian" as set forth in Rule 17f-5, to act on behalf of the applicable Fund(s) and Portfolio(s) as a subcustodian for purposes of holding "Foreign Assets" (as defined in Rule 17f-5), or (D) any "Bank" (as such term is defined in the 1940 Act) that qualifies as and may serve as a custodian under Section 17(f) of the 1940 Act (each a "Foreign Subcustodian").
(ii) Without limiting the foregoing, the Custodian shall be responsible for (A) determining that each applicable Fund's or Portfolio's Foreign Assets, if maintained with each Foreign Subcustodian, will be subject to the standard of care set forth in Section 5.01(a) hereof after considering all factors relevant to the safekeeping of such assets including, without limitation, those factors set forth in the provisions of paragraph (c)(1) of Rule 17f-5, (B) ensuring that each foreign custody arrangement with a Foreign Subcustodian is governed by a written contract with the Custodian meeting the requirements of paragraph (c)(2) of Rule 17f-5 which will provide reasonable care for each applicable Fund's or Portfolio's Foreign Assets based on the standard of care set forth in Section 5.01(a) hereof , (C) determining that each contract with a Foreign Custodian shall include the provisions specified in paragraph (c)(2)(i)(A) through (F) of Rule 17f-5 or alternatively, in lieu of any or all of such (c)(2)(i)(A) through (F) provisions, such other provisions as the Custodian reasonably determines will provide, in their entirety, the same or greater level of care and protection for the Foreign Assets of each Fund or Portfolio as such specified provisions in their entirety, (D) establishing a system to monitor the appropriateness of maintaining each applicable Fund's or Portfolio's Foreign Assets with each Foreign Subcustodian pursuant to paragraph (c)(1) of Rule 17f-5 and to monitor the performance of each Foreign Subcustodian under the subcustodian agreement between the Custodian and the Foreign Subcustodian, (E) monitoring the appropriateness of maintaining each applicable Fund's and Portfolio's Foreign Assets with each Foreign Subcustodian pursuant to paragraph (c)(1) of Rule 17f-5 and the performance of each Foreign Subcustodian under the subcustodian agreement between the Custodian and the Foreign Subcustodian, and (F) promptly notifying each applicable Fund or Portfolio whenever an arrangement described in the preceding clause (E) no longer satisfies the requirements of Rule 17f-5.
(iii) The Custodian shall prepare written reports to the Board of Trustees or other governing body or entity of each Fund, on behalf of its applicable Portfolio(s), on an annual basis showing (A) the identity and qualifications of each Foreign Subcustodian authorized by the Custodian to hold Foreign Assets of the Fund(s) and Portfolio(s), (B) the placement of the Fund's and Portfolio's Foreign Assets with each such Foreign Subcustodian, (C) the country or countries in which each Foreign Subcustodian is authorized to hold Foreign Assets of the applicable Fund(s) and Portfolio(s) and (D) any material changes to the Custodian's foreign custody arrangements for the applicable Fund(s) and Portfolio(s) since the submission of the Custodian's last written report to the applicable Fund's Board of Trustees or other governing body or entity pursuant to this Section 4.02(a)(iii), including without limitation:
(1) changes in the Foreign Subcustodians included in the Custodian's global custody network or arrangements;
(1) any change, including any amendment or modification to the subcustodian agreements between the Custodian and each of the Foreign Subcustodians, that could materially affect the ability of a Foreign Subcustodian to perform its duties in respect of the applicable Funds, or Portfolios' Foreign Assets.
In addition to the annual reports required by clause (a) (iii) above, the Custodian shall submit promptly (but in no event later than 5 Business Days after the event giving rise to a reporting requirement) interim reports to the Board of Trustees or other governing body or entity of each applicable Fund, on behalf of its applicable Portfolio(s), of any changes that have or could materially affect the ability of a Foreign Subcustodian to perform its duties in respect of the Funds' and Portfolios' assets and any actions that the Custodian has taken or proposes to take in connection with such changes.
(iv) Each duly appointed Foreign Subcustodian and the countries where and clearing agencies through which they may hold Foreign Assets of the applicable Fund(s) and Portfolio(s) shall be listed on Appendix "B" attached hereto and dated as of the date of this Agreement, as the same may be amended from time to time, in accordance with the provisions of Section 9.06(c) hereof.
(v) Each Fund shall be responsible for informing the Custodian sufficiently in advance of a proposed investment by itself or by one of its Portfolios which is to be held in a country in which no Foreign Subcustodian is authorized to act, in order that there shall be sufficient time for the Custodian to effect the appropriate arrangements with a proposed foreign subcustodian.
(vi) The Custodian shall provide the Funds or their respective designees, on behalf of their Portfolios, with written notification of any (A) proposed change in the Foreign Subcustodians included in the Custodian's global custody network or arrangements at least 30 Business Days prior to the effective date of the proposed change, if practicable or (B) termination, in whole or with respect to one or more specified jurisdictions, of its acceptance of the Board of Trustees or other governing body or entity of a Fund, on behalf of its applicable Portfolio(s), delegation and appointment as the Fund's "Foreign Custody Manager" at least 90 Business Days prior to the effective date of the proposed change or termination, unless, in either case, the Funds in their discretion permit a shorter notification period.
(b) Interim Subcustodians. Notwithstanding the foregoing, in the event that a Portfolio shall invest in a security or other asset to be held in a country in which no Foreign Subcustodian is authorized to act, the Custodian shall promptly notify the applicable Fund in writing by facsimile transmission or in such other manner as such Fund and Custodian shall agree in writing of the unavailability of an approved Foreign Subcustodian in such country; and the Custodian shall, upon receipt of Special Instructions, appoint any Person designated by the applicable Fund in such Special Instructions to hold such security or other asset. The subcustodian agreement between the Custodian and any Interim Custodian (as hereinafter defined) shall comply with the provisions of the 1940 Act and the rules and regulations thereunder (including Rule 17f-5, if applicable) and the terms and provisions of this Agreement. The Custodian shall comply with Section 4.02 (a)(i), (ii), (iii), and (vi) hereof with respect to the appointment of an Interim Custodian. (Any Person appointed as a subcustodian pursuant to this Section 4.02(b) is hereinafter referred to as an "Interim Subcustodian.")
ARTICLE IV.3. Special Subcustodians. Upon receipt of Special Instructions, the Custodian shall, on behalf of one or more Portfolios, appoint one or more banks, trust companies or other entities designated in such Special Instructions to act as a subcustodian for purposes of: (i) effecting third-party repurchase transactions with banks, brokers, dealers or other entities through the use of a common custodian or subcustodian; (ii) establishing a joint trading account for the applicable Portfolio(s) and other registered open-end management investment companies for which Fidelity Management & Research Company serves as investment adviser, through which such Portfolios and such other investment companies shall collectively participate in certain repurchase transactions; (iii) providing depository and clearing agency services with respect to certain variable rate demand note securities; and (iv) effecting any other transactions designated by each applicable Fund in Special Instructions. (Each such designated subcustodian is hereinafter referred to as a "Special Subcustodian.") Each such duly appointed Special Subcustodian shall be listed on Appendix "B" attached hereto, as it may be amended from time to time in accordance with the provisions of Section 9.05(c) hereof. In connection with the appointment of any Special Subcustodian, the Custodian shall enter into a subcustodian agreement with the Special Subcustodian in form and substance approved by each applicable Fund, provided that such agreement shall in all events comply with the provisions of the 1940 Act and the rules and regulations thereunder (including Rule17f-5, if applicable) and the terms and provisions of this Agreement. If any Special Custodian is a Foreign Custodian, the Custodian shall comply with Section 4.02 of this Agreement. The Custodian shall not amend any subcustodian agreement entered into with a Special Subcustodian, or agree to change or permit any changes thereunder, or waive any rights under such agreement, except upon prior approval pursuant to Special Instructions.
ARTICLE IV.4. Termination of a Subcustodian. The Custodian shall (i) cause each Domestic Subcustodian and Foreign Subcustodian to, and (ii) use its best efforts to cause each Interim Subcustodian and Special Subcustodian to, perform all of its obligations in accordance with the terms and conditions of the subcustodian agreement between the Custodian and such Subcustodian. In the event that the Custodian is unable to cause such Subcustodian to fully perform its obligations thereunder, the Custodian shall forthwith, upon the receipt of Special Instructions, terminate such Subcustodian with respect to each applicable Fund and, if necessary or desirable, appoint a replacement Subcustodian in accordance with the provisions of Section 4.01 or Section 4.02, as the case may be. In addition to the foregoing, the Custodian (A) may, at any time in its discretion, upon written notification to each applicable Fund, terminate any Domestic Subcustodian, Foreign Subcustodian or Interim Subcustodian, and (B) shall, upon receipt of Special Instructions, terminate any Subcustodian with respect to each applicable Fund, in accordance with the termination provisions under the applicable subcustodian agreement.
ARTICLE IV.5. Certification Regarding Foreign Subcustodians. Each report presented to the Board of Trustees of each Fund, on behalf of itself or its applicable Portfolio(s), by the Custodian pursuant to Section 4.02(a)(iii) above shall be accompanied by a certificate representing that (A) the Custodian has established a system to monitor the appropriateness of maintaining the Fund's or Portfolio's Foreign Assets with each Foreign Subcustodian pursuant to paragraph (c)(1) of Rule 17f-5 and to monitor the performance of each Foreign Subcustodian under the subcustodian agreement between the Custodian and the Foreign Subcustodian, (B) the Custodian has monitored all Foreign Subcustodians and each Foreign Subcustodian continues to be an "Eligible Foreign Custodian," (as such term is defined in Rule 17f-5), (C) each Foreign Subcustodian continues to provide the standard of care set forth in Section 5.01(a) hereof, after considering all relevant factors, including without limitation, those factors set forth in paragraph (c)(1) of Rule 17f-5, (D) all foreign custody agreements between the Custodian and the Foreign Subcustodians continue to meet the requirements of paragraph (c)(2) of Rule 17f-5, (E) since the submission of the last report pursuant to Section 4.02(a)(iii) above, there have been no material adverse changes to the Custodian's foreign custody network or arrangements other than those reported to the Board of Trustees or other governing body or entity of the Fund, on behalf of itself or its applicable Portfolios, in the accompanying report, and (F) the information included in the report is true, accurate and complete in all material respects.
ARTICLE V
STANDARD OF CARE; INDEMNIFICATION
ARTICLE V.1. Standard of Care.
(a) General Standard of Care. The Custodian shall exercise reasonable care, prudence and diligence in carrying out all of its duties and obligations under this Agreement (or such higher standard, if any, under Rule 17f-4), and shall be liable to each Fund for all losses, damages and expenses suffered or incurred by such Fund or its Portfolio(s) resulting from the failure of the Custodian to exercise such reasonable care and diligence (or to comport with such higher standard of care under Rule 17f-4, if any).
(b) Actions Prohibited by Applicable Law, Etc. In no event shall the Custodian incur liability hereunder if the Custodian or any Subcustodian, Securities System or Eligible Securities Depository, or any subcustodian, securities depository or securities system utilized by any such Subcustodian, or any nominee of the Custodian or any Subcustodian (individually, a "Person") is prevented, forbidden or delayed from performing, or omits to perform, any act or thing which this Agreement provides shall be performed or omitted to be performed, by reason of: (i) any provision of any present or future law or regulation or order of the United States of America, or any state thereof, or of any foreign country, or political subdivision thereof or of any court of competent jurisdiction; or (ii) any act of God or war or other similar circumstance beyond the control of the Custodian, unless, in each case, such delay or nonperformance is caused by (A) the negligence, misfeasance or misconduct of the applicable Person, or (B) a malfunction or failure of equipment operated or utilized by the applicable Person other than a malfunction or failure beyond such Person's control and which could not reasonably be anticipated and/or prevented by such Person.
(c) Mitigation by Custodian. Upon the occurrence of any event which causes or may cause any loss, damage or expense to any Fund or Portfolio, (i) the Custodian shall promptly notify the applicable Fund or Portfolio of the occurrence of such event, (ii) the Custodian shall cause any applicable Domestic Subcustodian or Foreign Subcustodian to, and (iii) the Custodian shall use its best efforts to cause any applicable Interim Subcustodian, Special Subcustodian or Eligible Securities Depository to, use all commercially reasonable efforts and take all reasonable steps under the circumstances to mitigate the effects of such event and to avoid continuing harm to the Funds and the Portfolios.
(d) Advice of Counsel. The Custodian shall be entitled to receive and act upon advice of counsel on all matters. The Custodian shall be without liability for any action reasonably taken or omitted in good faith pursuant to the advice of (i) counsel for the applicable Fund or Funds, or (ii) at the expense of the Custodian, such other counsel as the applicable Fund(s) and the Custodian may agree upon; provided however, with respect to the performance of any action or omission of any action upon such advice, the Custodian shall be required to conform to the standard of care set forth in Section 5.01(a).
(e) Expenses of the Funds. In addition to the liability of the Custodian under this Article V, the Custodian shall be liable to each applicable Fund for all reasonable costs and expenses incurred by such Fund in connection with any claim by such Fund against the Custodian arising from the obligations of the Custodian hereunder, including, without limitation, all reasonable attorneys' fees and expenses incurred by such Fund in asserting any such claim, and all expenses incurred by such Fund in connection with any investigations, lawsuits or proceedings relating to such claim; provided that, such Fund has recovered from the Custodian for such claim.
(f) Liability for Past Records. The Custodian shall have no liability in respect of any loss, damage or expense suffered by a Fund, insofar as such loss, damage or expense arises from the performance of the Custodian's duties hereunder by reason of the Custodian's reliance upon records that were maintained for such Fund by entities other than the Custodian prior to the Custodian's appointment as custodian for such Fund.
ARTICLE V.2. Liability of Custodian for Actions of Other Persons.
(a) Domestic Subcustodians and Foreign Subcustodians. The Custodian shall be liable for the actions or omissions of any Domestic Subcustodian or any Foreign Subcustodian to the same extent as if such action or omission was performed by the Custodian itself. In the event of any loss, damage or expense suffered or incurred by a Fund caused by or resulting from the actions or omissions of any Domestic Subcustodian or Foreign Subcustodian for which the Custodian would otherwise be liable, the Custodian shall promptly reimburse such Fund in the amount of any such loss, damage or expense.
(b) Interim Subcustodians. Notwithstanding the provisions of Section 5.01 to the contrary, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the actions or omissions of an Interim Subcustodian unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided however, in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against such Interim Subcustodian to protect the interests of the Funds and the Portfolios.
(c) Special Subcustodians and Additional Custodians. Notwithstanding the provisions of Section 5.01 to the contrary and except as otherwise provided in any subcustodian agreement to which the Custodian, a Fund and any Special Subcustodian or Additional Custodian are parties, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the actions or omissions of a Special Subcustodian or Additional Subcustodian, unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided however, that in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against any Special Subcustodian or Additional Custodian to protect the interests of the Funds and the Portfolios.
(d) Securities Systems and Eligible Securities Depositories. Notwithstanding the provisions of Section 5.01 to the contrary, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the use by the Custodian of a Securities System or Eligible Securities Depository, unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided however, that in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against the Securities System or Eligible Securities Depository to protect the interests of the Funds and the Portfolios.
(e) Reimbursement of Expenses. Each Fund agrees to reimburse the Custodian for all reasonable out-of-pocket expenses incurred by the Custodian on behalf of such Fund in connection with the fulfillment of its obligations under this Section 5.02; provided however, that such reimbursement shall not apply to expenses occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian.
ARTICLE V.3. Indemnification.
(a) Indemnification Obligations. Subject to the limitations set forth in this Agreement, each Fund severally and not jointly agrees to indemnify and hold harmless the Custodian and its nominees from all loss, damage and expense (including reasonable attorneys' fees) suffered or incurred by the Custodian or its nominee caused by or arising from actions taken by the Custodian on behalf of such Fund in the performance of its duties and obligations under this Agreement; provided however, that such indemnity shall not apply to loss, damage and expense occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian or its nominee. In addition, each Fund agrees severally and not jointly to indemnify any Person against any liability incurred by reason of taxes assessed to such Person, or other loss, damage or expenses incurred by such Person, resulting from the fact that securities and other property of such Fund's Portfolios are registered in the name of such Person; provided however, that in no event shall such indemnification be applicable to income, franchise or similar taxes which may be imposed or assessed against any Person.
(b) Notice of Litigation, Right to Prosecute, Etc. No Fund shall be liable for indemnification under this Section 5.03 unless a Person shall have promptly notified such Fund in writing of the commencement of any litigation or proceeding brought against such Person in respect of which indemnity may be sought under this Section 5.03. With respect to claims in such litigation or proceedings for which indemnity by a Fund may be sought and subject to applicable law and the ruling of any court of competent jurisdiction, such Fund shall be entitled to participate in any such litigation or proceeding and, after written notice from such Fund to any Person, such Fund may assume the defense of such litigation or proceeding with counsel of its choice at its own expense in respect of that portion of the litigation for which such Fund may be subject to an indemnification obligation; provided however, a Person shall be entitled to participate in (but not control) at its own cost and expense, the defense of any such litigation or proceeding if such Fund has not acknowledged in writing its obligation to indemnify the Person with respect to such litigation or proceeding. If such Fund is not permitted to participate or control such litigation or proceeding under applicable law or by a ruling of a court of competent jurisdiction, such Person shall reasonably prosecute such litigation or proceeding. A Person shall not consent to the entry of any judgment or enter into any settlement in any such litigation or proceeding without providing each applicable Fund with adequate notice of any such settlement or judgment, and without each such Fund's prior written consent. All Persons shall submit written evidence to each applicable Fund with respect to any cost or expense for which they are seeking indemnification in such form and detail as such Fund may reasonably request.
ARTICLE V.4. Investment Limitations. If the Custodian has otherwise complied with the terms and conditions of this Agreement in performing its duties generally, and more particularly in connection with the purchase, sale or exchange of securities made by or for a Portfolio, the Custodian shall not be liable to the applicable Fund and such Fund agrees to indemnify the Custodian and its nominees, for any loss, damage or expense suffered or incurred by the Custodian and its nominees arising out of any violation of any investment or other limitation to which such Fund is subject.
ARTICLE V.5. Fund's Right to Proceed. Notwithstanding anything to the contrary contained herein, each Fund shall have, at its election upon reasonable notice to the Custodian, the right to enforce, to the extent permitted by any applicable agreement and applicable law, the Custodian's rights against any Subcustodian, Securities System, Eligible Securities Depository or other Person for loss, damage or expense caused such Fund by such Subcustodian, Securities System, Eligible Securities Depository or other Person, and shall be entitled to enforce the rights of the Custodian with respect to any claim against such Subcustodian, Securities System, Eligible Securities Depository or other Person, which the Custodian may have as a consequence of any such loss, damage or expense, if and to the extent that such Fund has not been made whole for any such loss or damage. If the Custodian makes such Fund whole for any such loss or damage, the Custodian shall retain the ability to enforce its rights directly against such Subcustodian, Securities System, Eligible Securities Depository or other Person. Upon such Fund's election to enforce any rights of the Custodian under this Section 5.05, such Fund shall reasonably prosecute all actions and proceedings directly relating to the rights of the Custodian in respect of the loss, damage or expense incurred by such Fund; provided that, so long as such Fund has acknowledged in writing its obligation to indemnify the Custodian under Section 5.03 hereof with respect to such claim, such Fund shall retain the right to settle, compromise and/or terminate any action or proceeding in respect of the loss, damage or expense incurred by such Fund without the Custodian's consent and provided further, that if such Fund has not made an acknowledgment of its obligation to indemnify, such Fund shall not settle, compromise or terminate any such action or proceeding without the written consent of the Custodian, which consent shall not be unreasonably withheld or delayed. The Custodian agrees to cooperate with each Fund and take all actions reasonably requested by such Fund in connection with such Fund's enforcement of any rights of the Custodian. Each Fund agrees to reimburse the Custodian for all reasonable out-of-pocket expenses incurred by the Custodian on behalf of such Fund in connection with the fulfillment of its obligations under this Section 5.05; provided, however, that such reimbursement shall not apply to expenses occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian.
ARTICLE VI
COMPENSATION
On behalf of each of its Portfolios, each Fund shall compensate the Custodian in an amount, and at such times, as may be agreed upon in writing, from time to time, by the Custodian and such Fund.
ARTICLE VII
TERMINATION
ARTICLE VII.1. Termination of Agreement as to One or More Funds. With respect to each Fund, this Agreement shall continue in full force and effect until the first to occur of: (a) termination by the Custodian by an instrument in writing delivered or mailed to such Fund, such termination to take effect not sooner than ninety (90) days after the date of such delivery; (b) termination by such Fund by an instrument in writing delivered or mailed to the Custodian, such termination to take effect not sooner than thirty (30) days after the date of such delivery; or (c) termination by such Fund by written notice delivered to the Custodian, based upon such Fund's determination that there is a reasonable basis to conclude that the Custodian is insolvent or that the financial condition of the Custodian is deteriorating in any material respect, in which case termination shall take effect upon the Custodian's receipt of such notice or at such later time as such Fund shall designate. In the event of termination pursuant to this Section 7.01 by any Fund (a "Terminating Fund"), each Terminating Fund shall make payment of all accrued fees and unreimbursed expenses with respect to such Terminating Fund within a reasonable time following termination and delivery of a statement to the Terminating Fund setting forth such fees and expenses. Each Terminating Fund shall identify in any notice of termination a successor custodian or custodians to which the cash, securities and other assets of its Portfolios shall, upon termination of this Agreement with respect to such Terminating Fund, be delivered. In the event that no written notice designating a successor custodian shall have been delivered to the Custodian on or before the date when termination of this Agreement as to a Terminating Fund shall become effective, the Custodian may deliver to a bank or trust company doing business in Boston, Massachusetts, of its own selection, having an aggregate capital, surplus, and undivided profits, as shown by its last published report, of not less than $25,000,000, all securities and other assets of such Terminating Fund's Portfolios held by the Custodian and all instruments held by the Custodian relative thereto and all other property of the Terminating Fund's Portfolios held by the Custodian under this Agreement. Thereafter, such bank or trust company shall be the successor of the Custodian with respect to such Terminating Fund under this Agreement. In the event that securities and other assets of such Terminating Fund's Portfolios remain in the possession of the Custodian after the date of termination hereof with respect to such Terminating Fund owing to a failure of the Terminating Fund to appoint a successor custodian, the Custodian shall be entitled to compensation for its services in accordance with the fee schedule most recently in effect, for such period as the Custodian retains possession of such securities and other assets, and the provisions of this Agreement relating to the duties and obligations of the Custodian and the Terminating Fund shall remain in full force and effect. In the event of the appointment of a successor custodian, it is agreed that the cash, securities and other property owned by a Terminating Fund and held by the Custodian, any Subcustodian or nominee shall be delivered to the successor custodian; and the Custodian agrees to cooperate with such Terminating Fund in the execution of documents and performance of other actions necessary or desirable in order to substitute the successor custodian for the Custodian under this Agreement.
ARTICLE VII.2. Termination as to One or More Portfolios. This Agreement may be terminated as to one or more of a Fund's Portfolios (but less than all of its Portfolios) by delivery of an amended Appendix "A" deleting such Portfolios pursuant to Section 9.06(b) hereof, in which case termination as to such deleted Portfolios shall take effect thirty (30) days after the date of such delivery. The execution and delivery of an amended Appendix "A" which deletes one or more Portfolios shall constitute a termination of this Agreement only with respect to such deleted Portfolio(s), shall be governed by the preceding provisions of Section 7.01 as to the identification of a successor custodian and the delivery of cash, securities and other assets of the Portfolio(s) so deleted, and shall not affect the obligations of the Custodian and any Fund hereunder with respect to the other Portfolios set forth in Appendix "A," as amended from time to time.
ARTICLE VIII
DEFINED TERMS
The following terms are defined in the following sections:
Term |
Section |
Account |
2.22 |
ADRs |
2.06 |
Additional Custodian |
2.23(a) |
Authorized Person(s) |
3.02 |
Bank Accounts |
2.21(a) |
Banking Institution |
2.12 |
Broker's Futures Margin Account |
2.10 |
Business Day |
Appendix "C" |
Central Fund |
2.02(c) |
Central Fund Control Procedures |
2.02(c) |
Central Fund Purchase Instructions |
2.03(v) |
Central Fund Sell Instructions |
2.05(iv) |
Central Fund Transfer Agent |
2.02(c) |
Distribution Account |
2.16 |
Domestic Subcustodian |
4.01 |
Eligible Securities Depository |
2.22(b) |
Foreign Exchange Account |
2.21(c) |
Foreign Subcustodian |
4.02(a) |
Fund of Funds Portfolio |
2.02(d) |
Fund of Funds Portfolio Control Procedures |
2.02(d)(ii) |
Fund of Funds Portfolio Purchase Instructions |
2.03(vi) |
Fund of Funds Portfolio Sell Instructions |
2.05(v) |
Fund |
Preamble |
Institutional Client |
2.03 |
Interest Bearing Deposits |
2.12 |
Interim Subcustodian |
4.02(b) |
Overdraft |
2.28 |
Overdraft Notice |
2.28 |
Person |
5.01(b) |
Portfolio |
Preamble |
Procedural Agreement |
2.10 |
Proper Instructions |
3.01(a) |
SEC |
2.22(a) |
Securities System |
2.22(a) |
Segregated Futures Margin Account |
2.10 |
Shares |
2.16 |
Special Instructions |
3.01(b) |
Special Subcustodian |
4.03 |
Subcustodian |
Article IV |
Terminating Fund |
7.01 |
Transfer Agent Account |
2.21(c) |
Underlying Fund |
2.02(d) |
Underlying Fund Transfer Agent |
2.02(d) |
1940 Act |
Preamble |
ARTICLE IX
MISCELLANEOUS
ARTICLE IX.1. Execution of Documents, Etc.
(a) Actions by each Fund. Upon request, each Fund shall execute and deliver to the Custodian such proxies, powers of attorney or other instruments as may be reasonable and necessary or desirable in connection with the performance by the Custodian or any Subcustodian of their respective obligations to such Fund under this Agreement or any applicable subcustodian agreement with respect to such Fund, provided that the exercise by the Custodian or any Subcustodian of any such rights shall in all events be in compliance with the terms of this Agreement.
(b) Actions by Custodian. Upon receipt of Proper Instructions, the Custodian shall execute and deliver to each applicable Fund or to such other parties as such Fund(s) may designate in such Proper Instructions, all such documents, instruments or agreements as may be reasonable and necessary or desirable in order to effectuate any of the transactions contemplated hereby.
ARTICLE IX.2. Representative Capacity; Nonrecourse Obligations. A COPY OF THE DECLARATION OF TRUST OR OTHER ORGANIZATIONAL DOCUMENT OF EACH FUND IS ON FILE WITH THE SECRETARY OF THE STATE OF THE FUND'S FORMATION, AND NOTICE IS HEREBY GIVEN THAT THIS AGREEMENT IS NOT EXECUTED ON BEHALF OF THE TRUSTEES OF ANY FUND AS INDIVIDUALS, AND THE OBLIGATIONS OF THIS AGREEMENT ARE NOT BINDING UPON ANY OF THE TRUSTEES, OFFICERS, SHAREHOLDERS OR PARTNERS OF ANY FUND INDIVIDUALLY, BUT ARE BINDING ONLY UPON THE ASSETS AND PROPERTY OF EACH FUND'S RESPECTIVE PORTFOLIOS. THE CUSTODIAN AGREES THAT NO SHAREHOLDER, TRUSTEE, OFFICER OR PARTNER OF ANY FUND MAY BE HELD PERSONALLY LIABLE OR RESPONSIBLE FOR ANY OBLIGATIONS OF ANY FUND ARISING OUT OF THIS AGREEMENT.
ARTICLE IX.3. Several Obligations of the Funds and the Portfolios. WITH RESPECT TO ANY OBLIGATIONS OF A FUND ON BEHALF OF ANY OF ITS PORTFOLIOS ARISING OUT OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE OBLIGATIONS ARISING UNDER SECTIONS 2.28, 5.03, 5.05 and ARTICLE VI HEREOF, THE CUSTODIAN SHALL LOOK FOR PAYMENT OR SATISFACTION OF ANY OBLIGATION SOLELY TO THE ASSETS AND PROPERTY OF THE PORTFOLIO TO WHICH SUCH OBLIGATION RELATES AS THOUGH EACH FUND HAD SEPARATELY CONTRACTED WITH THE CUSTODIAN BY SEPARATE WRITTEN INSTRUMENT WITH RESPECT TO EACH OF ITS PORTFOLIOS.
ARTICLE IX.4. Representations and Warranties.
(a) Representations and Warranties of Each Fund. Each Fund hereby severally and not jointly represents and warrants that each of the following shall be true, correct and complete with respect to each Fund at all times during the term of this Agreement: (i) the Fund is duly organized under the laws of its jurisdiction of organization and is registered as an open-end management investment company under the 1940 Act; and (ii) the execution, delivery and performance by the Fund of this Agreement are (w) within its power, (x) have been duly authorized by all necessary action, and (y) will not (A) contribute to or result in a breach of or default under or conflict with any existing law, order, regulation or ruling of any governmental or regulatory agency or authority, or (B) violate any provision of the Fund's corporate charter, Declaration of Trust or other organizational document, or bylaws, or any amendment thereof or any provision of its most recent Prospectus or Statement of Additional Information.
(b) Representations and Warranties of the Custodian. The Custodian hereby represents and warrants to each Fund that each of the following shall be true, correct and complete at all times during the term of this Agreement: (i) the Custodian is duly organized under the laws of its jurisdiction of organization and qualifies to act as a custodian to open-end management investment companies under the provisions of the 1940 Act; (ii) the execution, delivery and performance by the Custodian of this Agreement are (w) within its power, (x) have been duly authorized by all necessary action, and (y) will not (A) contribute to or result in a breach of or default under or conflict with any existing law, order, regulation or ruling of any governmental or regulatory agency or authority, or (B) violate any provision of the Custodian's corporate charter, or other organizational document, or bylaws, or any amendment thereof, (iii) the Custodian is a "Qualified Foreign Bank" (as defined in Rule 17f-5), a "US Bank" (as defined in Rule 17f-5) or an entity which by order of the SEC or by no-action letter of the staff of the SEC is exempt from meeting the requirements of an "Eligible Foreign Custodian" (as set forth in Rule 17f-5), (iv) the Custodian qualifies as a "Primary Custodian" (as defined in Rule 17f-7) and accepts the responsibilities thereof, (iv) the Custodian has entered into policies, bonds or similar arrangements which provide the types and minimum amounts of insurance and related coverage set forth in Section 2.29 hereof and such policies, bonds or similar arrangements are in full force and effect; and (v) the Custodian has in place a business continuity/disaster recovery plan and facilities which, in the event of a disaster affecting the Custodian, will be sufficient to enable the Custodian to resume and continue to perform its obligations under this Agreement without undue delay or disruption.
ARTICLE IX.5. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the Fund, on the one hand, and the Custodian, on the other, with respect to the subject matter hereof and accordingly, supersedes as of the effective date of this Agreement any custodian agreement heretofore in effect between each Fund and the Custodian.
ARTICLE IX.6. Waivers and Amendments. No provision of this Agreement may be waived, amended or terminated except by a statement in writing signed by the party against which enforcement of such waiver, amendment or termination is sought; provided, however: (a) Appendix "A" listing the Portfolios of each Fund for which the Custodian serves as custodian may be amended from time to time to add one or more Portfolios for one or more Funds, by each applicable Fund's execution and delivery to the Custodian of an amended Appendix "A", and the execution of such amended Appendix by the Custodian, in which case such amendment shall take effect immediately upon execution by the Custodian; (b) Appendix "A" may be amended from time to time to delete one or more Portfolios (but less than all of the Portfolios) of one or more of the Funds, by each applicable Fund's execution and delivery to the Custodian of an amended Appendix "A", in which case such amendment shall take effect thirty (30) days after such delivery, unless otherwise agreed by the Custodian and each applicable Fund in writing; (c) Appendix "B" listing Foreign Subcustodians, Eligible Securities Depositories, Special Subcustodians and Additional Custodians approved by any Fund may be amended from time to time to add or delete one or more Foreign Subcustodians, Eligible Securities Depositories, Special Subcustodians or Additional Custodians for a Fund or Funds by either party's execution and delivery to the other party hereto of an amended Appendix "B", in which case such amendment shall take effect immediately upon execution by the other party hereto; (d) Appendix "C" setting forth the procedures relating to the Custodian's security interest with respect to each Fund may be amended only by an instrument in writing executed by each applicable Fund and the Custodian; (e) Appendix "D" listing the Central Funds and Fund of Funds Portfolios for which the Custodian serves as custodian may be amended from time to time to add or delete one or more of the Central Funds or Fund of Funds Portfolios, by each applicable Fund's or Portfolio's execution and delivery to the Custodian of an amended Appendix "D", and the execution of such amended Appendix by the Custodian, in which case such amendment shall take effect immediately upon execution by the Custodian and (f) Appendix "E" listing the Transfer Agent Accounts and Foreign Exchange Accounts for which the Custodian serves as custodian may be amended from time to time to add or delete one or more Bank Accounts, by each applicable Fund's or Portfolio's execution and delivery to the Custodian of an amended Appendix "E" and the execution of such amended Appendix by the Custodian, in which case such amendment shall take effect immediately upon execution by the Custodian.
ARTICLE IX.7. Interpretation. In connection with the operation of this Agreement, the Custodian and any Fund may agree in writing from time to time on such provisions interpretative of or in addition to the provisions of this Agreement with respect to such Fund as may in their joint opinion be consistent with the general tenor of this Agreement. No interpretative or additional provisions made as provided in the preceding sentence shall be deemed to be an amendment of this Agreement or affect any other Fund.
ARTICLE IX.8. Captions. Headings contained in this Agreement, which are included as convenient references only, shall have no bearing upon the interpretation of the terms of the Agreement or the obligations of the parties hereto.
ARTICLE IX.9. Governing Law. Insofar as any question or dispute may arise in connection with the custodianship of foreign securities pursuant to an agreement with a Foreign Subcustodian that is governed by the laws of the State of New York, the provisions of this Agreement shall be construed in accordance with and governed by the laws of the State of New York, provided that in all other instances this Agreement shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts, in each case without giving effect to principles of conflicts of law.
ARTICLE IX.10. Notices. Except in the case of Proper Instructions or Special Instructions, notices and other writings contemplated by this Agreement shall be delivered by hand or by facsimile transmission (provided that in the case of delivery by facsimile transmission, notice shall also be mailed postage prepaid to the parties at the following addresses:
(a) |
If to any Fund: |
|
|
c/o Fidelity Management & Research Company |
|
|
82 Devonshire Street |
|
|
Boston, Massachusetts 02109 |
|
|
Attn: Treasurer of the Fidelity Funds |
|
|
Telephone: |
(617) 563-7000 |
|
Facsimile: |
(617) 476-4195 |
(b) |
If to the Custodian: |
|
|
Brown Brothers Harriman & Company |
|
|
40 Water Street |
|
|
Boston, MA 02109 |
|
|
Attn: Robert D. Stewart, Vice President |
|
|
Telephone: |
617-772-1465 |
|
Facsimile: |
617-742-7145 |
or to such other address as a Fund or the Custodian may have designated in writing to the other.
ARTICLE IX.11. Assignment. This Agreement shall be binding on and shall inure to the benefit of each Fund severally and the Custodian and their respective successors and assigns, provided that, subject to the provisions of Section 7.01 hereof, neither the Custodian nor any Fund may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party.
ARTICLE IX.12. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. With respect to each Fund, this Agreement shall become effective when one or more counterparts have been signed and delivered by such Fund and the Custodian.
ARTICLE IX.13. Consent to Recording. Each Fund and the Custodian hereby agree that each may electronically record all telephonic conversations between them and that any such recordings may be submitted in evidence in any proceedings relating to this Agreement.
ARTICLE IX.14. Confidentiality; Reporting under Securities Exchange Act of 1934. The parties hereto agree that each shall treat confidentially the terms and conditions of this Agreement and all information provided by each party to the other regarding its business and operations. All confidential information provided by a party hereto shall be used by any other party hereto solely for the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall not be disclosed to any third party without the prior consent of such providing party. The foregoing shall not be applicable to any (a) information that is required to be disclosed by judicial or administrative process or otherwise by applicable law or regulation (provided that the party intending to disclose information pursuant to any such requirement shall provide written notice to the other party as far in advance of making such disclosure as practicable, but only to the extent such notice is permissible), (b) information that is publicly available when disclosed (other than information that becomes publicly available through a breach of this Agreement), (c) information that is required to be disclosed to any bank examiner of the Custodian or any Subcustodian, or (d) information that is required to be disclosed to any auditor of the parties hereto or to proxy voting vendors, in either case, provided that such auditors or proxy voting vendors are subject, by law or agreement, to duties of confidentiality at least as extensive as those set forth in this Agreement. In addition, the Custodian shall record all Fund accounts held by the Custodian as beneficial owners objecting to disclosure of identities and holdings for purposes of the Securities Exchange Act of 1934 and any rules thereunder, including but not limited to Rule 14b-2, and shall limit its disclosure with respect to the Funds pursuant to such provisions to the approximate total number of such beneficial owners. The Custodian shall promptly notify the applicable Fund any time any information concerning such Fund is disclosed by the Custodian or any Subcustodian to any third party if such disclosure is made in violation of the foregoing provisions of this Section 9.14.
ARTICLE IX.15. Survival of Obligations. The provisions of Sections 9.01, 9.02, 9.03, 9.09, and 9.14, Section 2.28, Section 3.04, Section 7.01, Article V and Article VI hereof and any other rights or obligations incurred or accrued by any party hereto prior to termination of this Agreement shall survive any termination of this Agreement.
ARTICLE IX.16. Additional Services. If the Funds engage the Custodian to provide any custodial services in addition to the services described herein, the terms of this Agreement shall govern the provision of such services, unless otherwise agreed to by the parties in writing.
[The remainder of this page intentionally left blank.]
IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed in its name and behalf on the day and year first above written.
SIGNATURE LINES OMITTED
APPENDIX B
TO
CUSTODIAN AGREEMENT
BETWEEN
BROWN BROTHERS HARRIMAN & COMPANY
AND
EACH OF THE INVESTMENT
COMPANIES LISTED ON APPENDIX "A" THERETO
DATED AS OF
The following is a list of Additional Custodians, Special Subcustodians, Foreign Subcustodians and Eligible Securities Depositories under the Custodian Agreement dated as of the "Custodian Agreement"):
A. |
Additional Custodians |
|
|
Custodian |
Purpose |
|
Bank of New York |
FICASH |
|
|
FITERM |
B. |
Special Subcustodians: |
|
|
Subcustodian |
Purpose |
|
Bank of New York |
FICASH |
|
|
|
C. |
Foreign Subcustodians: |
|
Country |
Foreign Subcustodian |
Eligible Securities Depositories |
Argentina |
Citibank, N.A., Buenos Aires |
Caja de Valores, S.A.; |
|
BankBoston, N.A., Buenos Aires |
Central de Registracion y |
|
|
Liquidacion de Instrumentos |
|
|
de Endeudamiento Publico (CRYL) |
|
|
|
Australia |
National Australia Bank Ltd., Melbourne |
Austraclear |
|
|
ASX Settlement and Transfer Corporation Pty Ltd. (ASTC) |
|
|
|
Austria |
Bank Austria AG |
Oesterreichische Kontrollbank |
|
|
Aktiengesellschaft (OEKB) |
|
|
|
Bahrain |
HSBC Bank Middle East, Bahrain |
|
|
|
|
Bangladesh |
Standard Chartered Bank, Dhaka |
|
|
|
|
Belgium |
ING Bank Belgium, S.A. |
Caisse Interprofessionnelle de Depot et Virements de Titres (CIK) |
|
|
|
|
|
National Bank of Belgium |
|
|
|
Bermuda |
HSBC |
Bermuda Securities Depository (BSD) |
|
|
|
Botswana |
Stanbic Bank Botswana Ltd. |
|
|
|
|
Brazil |
BankBoston, N.A., Sao Paulo |
Central de Custodia e Liquidacao Financeira de Titulos (CETIP) |
|
Citibank, N.A., Sao Paulo |
Sistema Especial de Liquidacao e Custodian (SELIC) |
|
|
Companhia Brasleira de Liquidacao e Custodia (CBLC) |
|
|
|
Bulgaria |
ING Bank N.V. , SOFIA (ING) |
Bulgarian National Bank |
|
|
Central Security Depository AD |
|
|
|
Canada |
RBC Dexia Investor Services Trust |
Canadian Depository for Securities, |
|
|
Ltd., (CDS) |
|
|
|
Chile |
Citibank, N.A., Santiago |
Deposito Central de Valores, S.A. |
|
|
(DCV) |
|
|
|
China-Shanghai |
Standard Chartered Bank, Shanghai |
China Securities Depository and Clearning Company Limited (CSDCC) - Shanghai Branch |
|
HSBC, Shanghai |
|
|
|
|
China- Shenzhen |
Standard Chartered Bank, Shenzhen |
China Securities Depository and Clearning Company Limited (CSDCC) - Shenzhen Branch |
|
|
|
Colombia |
Cititrust Colombia , S.A., Sociedad Fiduciaria, Bogota |
Deposito Central de Valores (DCV) |
|
|
Deposito Centralizado de Valores |
|
|
(DECEVAL) |
|
|
|
Costa Rica |
Banco BCT SA |
Central de Valores de la Bolsa Nacional de Valores (CEVAL) |
|
|
|
Croatia |
Bank Austria Creditanstalt |
Central Depository Agency Inc. (Sredisnja Depozitama Agencija) |
|
|
|
Cyprus |
The Cyprus Popular Bank Ltd. |
Cyprus Stock Exchange |
|
|
|
Czech Republic |
Citibank, A.S. |
Stredisko Cennych Papiru (SCP) |
|
|
Czech National Bank |
|
|
|
Denmark |
Den Danske Bank, Copenhagen |
Danish Securities Centre-Valerdipapircentralen (VP) |
|
Nordea Bank Danmark A/S |
|
|
|
|
Egypt |
Citibank, N.A., Cairo |
Misr for Clearing, Settlement |
|
|
and Depository |
|
|
Bank of Egypt |
|
|
|
Estonia |
Nordea Bank Finland PLC |
Estonian Central Depository for Securities Ltd. (Eesti Vaartpaberite Keskdepositoorium) |
|
|
|
Finland |
Nordea Bank Finland PLC |
Suomen Arvopaperikeskus Oy (APK) |
|
Svenska Handelsbanken |
|
|
|
|
France |
BNP Paribas Securities Services S.A. |
EUROCLEAR France |
|
CACEIS Bank |
|
|
|
|
Germany |
BNP Paribas, Frankfurt |
Clearstream Banking Frankfurt (CBF) |
|
Deutsche Bank AG |
|
|
|
|
Ghana |
Barclays Bank of Ghana Ltd |
|
|
|
|
Greece |
HSBC Bank Plc, Athens Branch |
Apotherion Titlon A.E. |
|
|
|
|
|
The Bank of Greece |
|
|
|
Hong Kong |
The Hongkong & Shanghai Banking |
Hong Kong Securities Clearing Company Limited |
|
Standard Chartered Bank (SCB), Hong Kong |
The Central Money Market Unit |
|
|
|
Hungary |
Citibank Budapest, Rt. |
Keler |
|
|
|
Iceland |
Landsbanki Island HF |
Icelandic Securities Depository Limited |
|
|
|
India |
Citibank, N.A., Mumbai |
National Securities Depository |
|
Deutsche Bank |
Limited |
|
HongKong and Shanghai Banking Corp. Ltd (HSBC) |
Central Depository Services (India) Limited (CDSL) |
|
|
Reserve Bank of India |
|
|
|
Indonesia |
Citibank, N.A., Jakarta |
PT Kustodian Sentral Efek Indonesia |
|
|
Bank Indonesia |
|
|
|
Ireland |
Bank of Ireland Securities Services (BOISS) |
CREST |
|
|
|
Israel |
Bank Hapoalim, B.M. |
Tel-Aviv Stock Exchange |
|
Mizrahi Tefahot Bank Ltd. |
(TASE) Clearinghouse Ltd. |
|
|
|
Italy |
BNP Paribas, Milan |
Monte Titoli S.P.A. |
|
Citibank, N.A., Milan |
|
|
2S Banca SpA |
|
|
|
|
Jamaica |
CIBC Trust and Merchant Bank Jamaica |
Jamaica Central Securities Depository |
|
|
|
Japan |
The Bank of Tokyo-Mitsubishi, Ltd., |
Japan Securities Depository Center, Inc., (JASDEC, Inc.) |
|
Sumitomo Mitsui Banking Corporation |
Bank of Japan |
|
HongKong & Shanghai Banking Corp., Ltd. (HSBC) |
|
|
|
|
Jordan |
HSBC Bank Middle East |
Jordan Securities Depository Center |
|
|
|
Kazakhstan |
SB HSBC Bank Kazakhstan CJSC |
Kazakhstan Central Securities Depository (CSD) |
|
|
|
Kenya |
Stanbic Bank Kenya, Limited, Nairobi |
Central Bank of Kenya |
|
for The Standard Bank of South Africa, Limited (SBSA) |
|
|
|
|
|
|
|
Latvia |
Nordea Bank plc Riga Branch |
Bank of Latvia |
|
|
Latvian Central Depository |
|
|
|
Lebanon |
HSBC Bank MIddle East, Lebanon |
Banque du Liban (the Central Bank of Lebanon) |
|
|
Midclear |
|
|
|
Lithuania |
Nordea Bank Finland Plc |
Central Securities Depository of Lithuania (CSDL) |
|
|
|
Luxembourg |
Kredietbank Luxembourg (KBL) |
|
|
|
|
Malaysia |
HSBC Bank Malaysia Berhad (HBMB) |
BursaMalaysian Central Depository Sdn. Bhd. |
|
|
Bank Negara Malaysia |
|
|
|
Malawi |
Stanbic Bank Zimbabwe Ltd |
|
|
|
|
Malta |
HSBC Bank Malta Plc |
Malta Stock Exchange/Central Securities Depository |
|
|
|
Mauritius |
Hongkong & Shanghai Banking Corp., Ltd., Port Louis |
Bank of Mauritius |
|
|
Central Depository & Settlement Company Ltd. |
|
|
|
Mexico |
Banco Santander Mexicano SA (BSM) |
S.D. Indeval, SA de CV |
|
Banamex, Mexico |
|
|
|
|
Morocco |
Attijariwafa Bank |
MAROCLEAR |
|
|
|
Namibia |
Standard Bank Namibia Ltd., Windhoek |
|
|
|
|
Netherlands |
Fortis Bank |
Euroclear Nederland |
|
|
|
New Zealand |
National Australia Bank Ltd., Auckland |
New Zealand Central Securities |
|
|
Depository Limited (NZCDS) |
|
|
|
Nigeria |
Stanbic Bank Nigeria Limited |
Central Securities Clearing System Limited (CSCS) |
|
|
|
Norway |
DnB NOR ASA |
Verdipapirsentralen ASA (VPC) |
|
Nordea Bank Norge ASA |
|
|
|
|
Oman |
HSBC Bank Middle East, Oman |
Muscat Depository & Securities Registration Company, MDSRC |
|
|
|
Pakistan |
Standard Chartered Bank, Karachi |
The Central Depository Company of Pakistan Limited |
|
|
State Bank of Pakistan |
|
|
|
|
|
|
Palestine |
HSBC Bank Middle East, PAA |
Central Depository System of the Palestine Securities Exchange, Ltd. |
|
|
|
Panama |
HSBC Bank (Panama) S.A. |
Central Latinoamericana de Valores, S.A. (LatinClear) |
|
|
|
Peru |
Citibank, N.A., Lima |
CAVALI ICLV S.A. |
|
|
|
Philippines |
HSBC |
Philippine Depository Trust Corporation (PCD) |
|
|
|
|
|
The Registry of Scripless Securities |
|
|
|
Poland |
Bank Handlowy W Warxzawie SA (a member of Citigroup) |
Central Register for Treasury Bills |
|
Bank Polska Kasa Opieki SA (BPKO) |
National Depository for Securities |
|
|
|
Portugal |
BNP Paribas Sucursal em Portugal |
Central de Valores Mobiliarios e Sistema de Liquidacao e Compensacao |
|
|
Central Bank of Portugal |
|
|
|
Qatar |
HSBC Bank Middle East |
Doha Securities Market |
|
|
|
Romania |
ING Bank NV, Bucharest |
Bucharest Stock Exchange |
|
|
National Bank of Romania |
|
|
SNCDD - Societatea Nationala de Compensare, Decontare si Depozitare pentru Valori Mobiliare S.A. |
|
|
|
Russia |
Citibank, Moscow |
Bank for Foreign Trade of the Russian Federation (VTB) |
|
ING Bank Eurasia ZAO (INGE) |
Depository Clearing Company |
|
|
National Depository Center |
|
|
|
Singapore |
Hongkong & Shanghai Banking |
Central Depository Pte Ltd. (CDP) |
|
Corp., Ltd., Singapore |
Monetary Authority of Singapore |
|
Standard Chartered Bank (SCB) Singapore |
|
|
Development Bank of Singapore |
|
|
|
|
Slovakia |
ING Bank NV, Bratislava |
Centralny Depozitar Cennych Papierov a.s. (CSD) |
|
|
National Bank of Slovakia |
|
|
|
Slovenia |
Bank Austria Creditanstalt dd LjubLjana |
Central Klirnisko Depotna Drozba |
|
|
KDD |
|
|
|
South Africa |
FirstRand Bank Limited |
The Central Depository (Pty) Ltd. |
|
Standard Bank of South Africa (SBSA) |
Share Transaction Totally Electronic |
South Korea |
|
Korean Security Depository |
|
|
|
Spain |
Banco Bilbao Vizcaya Argentaria SA (BBVA) |
IBERCLEAR |
|
BNP Paribas Securities Services, Madrid |
|
|
Societe Generale Madrid |
|
|
Caceis Bank Espana S.A. |
|
|
|
|
Sri Lanka |
Hongkong & Shanghai Banking Corp. Ltd., |
Central Depository System (CDS) |
|
Colombo |
|
|
|
|
Swaziland |
Standard Bank Swaziland, Limited, |
|
|
|
|
Sweden |
Skandinaviska Enskilda Banken, Stockholm |
Swedish Central Securities Depository & Clearing Organization |
|
|
|
Switzerland |
UBS AG |
SIS SegaInterSettle AG (SIS) |
|
Credit Suisse First Boston (CSFB) |
|
|
|
|
Taiwan |
Standard Chartered Bank, Taipei |
Taiwan Securities Central Depository Co., Ltd (TSCD) |
|
Central Trust of China |
|
|
HongKong and Shanghai Banking Corp. Ltd (HSBC) Taiwan |
|
|
JPMorgan Chase Bank, Taipei Branch |
|
|
|
|
Thailand |
Hongkong & Shanghai Banking Corp. Ltd., |
Thailand Securities Depository |
|
Bangkok |
Company (TSD) |
|
|
Bank of Thailand |
|
|
|
Transnational |
|
Clearstream Euroclear |
Trinidad and Tobago |
Republic Bank Limited |
Trinidad & Tobago Central Bank Trinidad and Tobago Central Securities Depository |
|
|
|
Tunisia |
Banque Internationale Arabe de Tunisie (BIAT) |
Societe Tunisenne Interprofessionnelle de Compensatio et de Depot des Valeurs Mobileres |
|
|
|
Turkey |
Citibank, N.A., Istanbul |
Central Bank of Turkey |
|
|
Takasbank |
|
|
|
Ukraine |
ING Bank Ukraine |
Interregional Securities Union MFS |
|
|
National Bank of Ukraine |
|
|
|
United Arab Emirates |
HSBC Bank Middle East UAE |
Dubai Financial Markets (DFM) |
|
|
|
United Kingdom |
HSBC Plc |
Central Moneymarkets Office |
|
Deutsche Bank AG London |
CREST |
|
|
|
United States |
BBH |
The Depository Trust (DTC) |
|
HSBC, NY |
|
|
|
|
Uruguay |
BankBoston, N.A. Montevideo |
Banco Central (Central Bank of Uruguay) |
|
|
|
Venezuela |
Citibank, N.A., Caracas |
The Caja Venezolana de |
|
Banco Venezolano De Credito (BVC) |
Valores (CVV) |
|
|
Central Bank of Venezuela |
|
|
|
Vietnam |
Hongkong and Shanghai Banking Corporation Ltd. (HSBC), Ho Chi Minh City Branch |
Ho Chi Minh City Securities Trading Center/Vietnam (STC) |
|
|
|
|
|
|
Zambia |
Stanbic Bank Zambia Ltd., Lusaka |
Lusaka Stock Exchange Central Shares Depository Ltd. |
|
|
The Bank of Zamibia |
|
|
|
Zimbabwe |
Stanbic Bank Zimbabwe Ltd., Harare |
|
APPENDIX C
TO THE
CUSTODIAN AGREEMENT
BETWEEN
EACH OF THE INVESTMENT COMPANIES
LISTED ON APPENDIX "A" THERETO
AND
BROWN BROTHERS HARRIMAN & COMPANY
DATED AS OF
PROCEDURES RELATING TO CUSTODIAN'S SECURITY INTEREST
As security for any Overdrafts (as defined in the Custodian Agreement) of any Portfolio, the applicable Fund, on behalf of such Portfolio, shall pledge, assign and grant to the Custodian a security interest in Collateral (as hereinafter defined), under the terms, circumstances and conditions set forth in this Appendix "C".
Section 1. Defined Terms. As used in this Appendix "C" the following terms shall have the following respective meanings:
(a) "Business Day" shall mean any day that is not a Saturday, a Sunday or a day on which the Custodian is closed for business.
(b) "Collateral" shall mean, with respect to any Portfolio, securities held by the Custodian on behalf of the Portfolio having a fair market value (as determined in accordance with the procedures set forth in the prospectus for the Portfolio) equal to the aggregate of all Overdraft Obligations of such Portfolio: (i) identified in any Pledge Certificate executed on behalf of such Portfolio; or (ii) designated by the Custodian for such Portfolio pursuant to Section 3 of this Appendix "C". Such securities shall consist of marketable securities held by the Custodian on behalf of such Portfolio or, if no such marketable securities are held by the Custodian on behalf of such Portfolio, such other securities designated by the applicable Fund in the applicable Pledge Certificate or by the Custodian pursuant to Section 3 of this Appendix "C".
(c) "Overdraft Obligations" shall mean, with respect to any Portfolio, the amount of any outstanding Overdraft(s) provided by the Custodian to such Portfolio together with all accrued interest thereon.
(d) "Pledge Certificate" shall mean a Pledge Certificate in the form attached to this Appendix "C" as Schedule 1 executed by a duly authorized officer of the applicable Fund and delivered by such Fund to the Custodian by facsimile transmission or in such other manner as the applicable Fund and the Custodian may agree in writing.
(e) "Release Certificate" shall mean a Release Certificate in the form attached to this Appendix "C" as Schedule 2 executed by a duly authorized officer of the Custodian and delivered by the Custodian to the applicable Fund by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing.
(f) "Written Notice" shall mean a written notice executed by a duly authorized officer of the party delivering the notice and delivered by facsimile transmission or in such other manner as the applicable Fund and the Custodian shall agree in writing.
Section 2. Pledge of Collateral. To the extent that any Overdraft Obligations of a Portfolio are not satisfied by the close of business on the first Business Day following the Business Day on which the applicable Fund receives Written Notice requesting security for such Overdraft Obligation and stating the amount of such Overdraft Obligation, the applicable Fund, on behalf of such Portfolio, shall pledge, assign and grant to the Custodian a first priority security interest, by delivering to the Custodian, a Pledge Certificate executed by such Fund on behalf of such Portfolio describing the applicable Collateral. Such Written Notice may, in the discretion of the Custodian, be included within or accompany the Overdraft Notice relating to the applicable Overdraft Obligations.
Section 3. Failure to Pledge Collateral. In the event that the applicable Fund shall fail: (a) to pay, on behalf of the applicable Portfolio, the Overdraft Obligation described in such Written Notice; (b) to deliver to the Custodian a Pledge Certificate pursuant to Section 2; or (c) to identify substitute securities pursuant to Section 6 upon the sale or maturity of any securities identified as Collateral, the Custodian may, by Written Notice to the applicable Fund specify Collateral which shall secure the applicable Overdraft Obligation. Such Fund, on behalf of any applicable Portfolio, hereby pledges, assigns and grants to the Custodian a first priority security interest in any and all Collateral specified in such Written Notice; provided that such pledge, assignment and grant of security shall be deemed to be effective only upon receipt by the applicable Fund of such Written Notice.
Section 4. Delivery of Additional Collateral. If at any time the Custodian shall notify a Fund by Written Notice that the fair market value of the Collateral securing any Overdraft Obligation of one of such Fund's Portfolios is less than the amount of such Overdraft Obligation, such Fund, on behalf of the applicable Portfolio, shall deliver to the Custodian, within one (1) Business Day following the Fund's receipt of such Written Notice, an additional Pledge Certificate describing additional Collateral. If such Fund shall fail to deliver such additional Pledge Certificate, the Custodian may specify Collateral which shall secure the unsecured amount of the applicable Overdraft Obligation in accordance with Section 3 of this Appendix C.
Section 5. Release of Collateral. Upon payment by a Fund, on behalf of one of its Portfolios, of any Overdraft Obligation secured by the pledge of Collateral, the Custodian shall promptly deliver to such Fund a Release Certificate pursuant to which the Custodian shall release Collateral from the lien under the applicable Pledge Certificate or Written Notice pursuant to Section 3 having a fair market value equal to the amount paid by such Fund on account of such Overdraft Obligation. In addition, if at any time a Fund shall notify the Custodian by Written Notice that such Fund desires that specified Collateral be released and: (a) that the fair market value of the Collateral securing any Overdraft Obligation shall exceed the amount of such Overdraft Obligation; or (b) that the Fund has delivered a Pledge Certificate substituting Collateral for such Overdraft Obligation, the Custodian shall deliver to such Fund, within one (1) Business Day following the Custodian's receipt of such Written Notice, a Release Certificate relating to the Collateral specified in such Written Notice.
Section 6. Substitution of Collateral. A Fund may substitute securities for any securities identified as Collateral by delivery to the Custodian of a Pledge Certificate executed by such Fund on behalf of the applicable Portfolio, indicating the securities pledged as Collateral.
Section 7. Security for Individual Portfolios' Overdraft Obligations. The pledge of Collateral by a Fund on behalf of any of its individual Portfolios shall secure only the Overdraft Obligations of such Portfolio. In no event shall the pledge of Collateral by one of a Fund's Portfolios be deemed or considered to be security for the Overdraft Obligations of any other Portfolio of such Fund or of any other Fund.
Section 8. Custodian's Remedies. Upon (a) a Fund's failure to pay any Overdraft Obligation of an applicable Portfolio within thirty (30) days after receipt by such Fund of a Written Notice demanding security therefore, and (b) one (1) Business Day's prior Written Notice to such Fund, the Custodian may elect to enforce its security interest in the Collateral securing such Overdraft Obligation, by taking title to (at the then prevailing fair market value), or selling in a commercially reasonable manner, so much of the Collateral as shall be required to pay such Overdraft Obligation in full. Notwithstanding the provisions of any applicable law, including, without limitation, the Uniform Commercial Code, the remedy set forth in the preceding sentence shall be the only right or remedy to which the Custodian is entitled with respect to the pledge and security interest granted pursuant to any Pledge Certificate or Section 3. Without limiting the foregoing, the Custodian hereby waives and relinquishes all contractual and common law rights of set off to which it may now or hereafter be or become entitled with respect to any obligations of any Fund to the Custodian arising under this Appendix "C" to the Agreement.
IN WITNESS WHEREOF, each of the parties has caused this Appendix to be executed in its name and behalf on the day and year first above written.
SIGNATURE LINES OMITTED
SCHEDULE 1
TO
APPENDIX "C"
PLEDGE CERTIFICATE
This Pledge Certificate is delivered pursuant to the Custodian Agreement, dated as of January 1, 2007 (the "Agreement"), between [ ] (the "Fund") and Brown Brothers Harriman & Company (the "Custodian"). Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Agreement. Pursuant to [Section 2 or Section 4] of Appendix "C" attached to the Agreement, the Fund, on behalf of [ ] (the "Portfolio"), hereby pledges, assigns and grants to the Custodian a first priority security interest in the securities listed on Exhibit "A" attached to this Pledge Certificate (collectively, the "Pledged Securities"). Upon delivery of this Pledge Certificate, the Pledged Securities shall constitute Collateral, and shall secure all Overdraft Obligations of the Portfolio described in that certain Written Notice dated, delivered by the Custodian to the Fund. The pledge, assignment and grant of security in the Pledged Securities hereunder shall be subject in all respect to the terms and conditions of the Agreement, including, without limitation, Sections 7 and 8 of Appendix "C" attached thereto.
IN WITNESS WHEREOF, the Fund has caused this Pledge Certificate to be executed in its name, on behalf of the Portfolio this day of ____________.
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
[FUND], on Behalf of [Portfolio] |
|
|
|
|
|
By: |
|
|
Name: |
|
|
Title: |
|
EXHIBIT "A"
TO
PLEDGE CERTIFICATE
Issuer |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Type of |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Certificate/CUSIP |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Number of |
SCHEDULE 2
TO
APPENDIX "C"
RELEASE CERTIFICATE
This Release Certificate is delivered pursuant to the Custodian Agreement, dated as of January 1, 2007 (the "Agreement"), between [ ] (the "Fund") and Brown Brothers Harriman & Company (the "Custodian"). Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Agreement. Pursuant to Section 5 of Appendix "C" attached to the Agreement, the Custodian hereby releases the securities listed on Exhibit "A" attached to this Release Certificate from the lien under the [Pledge Certificate dated ___________, or the Written Notice delivered pursuant to Section 3 of Appendix "C" dated _________ ].
IN WITNESS WHEREOF, the Custodian has caused this Release Certificate to be executed in
its name and on its behalf this ____ day of ___________.
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Brown Brothers Harriman & Company |
|
By: |
|
Name: |
|
Title: |
EXHIBIT "A"
TO
RELEASE CERTIFICATE
Issuer |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Type of |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Certificate/CUSIP |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Number of |
APPENDIX D
TO THE
CUSTODIAN AGREEMENT
BETWEEN
EACH OF THE INVESTMENT COMPANIES
LISTED ON APPENDIX "A" THERETO
AND
BROWN BROTHERS HARRIMAN & COMPANY
DATED AS OF
A. |
Central Funds |
|
Trust |
|
Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity 1-3 Year Duration Securitized Bond Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity 2-5 Year Duration Securitized Bond Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Discretionary Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Staples Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Corporate Bond 1-5 Year Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Corporate Bond 1-10 Year Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Energy Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Financials Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Floating Rate Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Health Care Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity High Income Central Fund 1 |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Industrials Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Information Technology Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Materials Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Mortgage Backed Securities Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Specialized High Income Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Tactical Income Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Telecom Services Central Fund |
|
Fidelity Central Investment Portfolios LLC |
Fidelity Utilities Central Fund |
|
Fidelity Garrison Street Trust |
Fidelity Money Market Central Fund |
|
Fidelity Garrison Street Trust |
Fidelity Ultra-Short Central Fund |
|
Fidelity Garrison Street Trust |
Fidelity Cash Central Fund |
|
Fidelity Garrison Street Trust |
VIP Investment Grade Central Fund |
|
Fidelity Revere Street Trust |
Fidelity Cash Central Fund |
|
Fidelity Revere Street Trust |
Fidelity Municipal Cash Central Fund |
|
Fidelity Revere Street Trust |
Fidelity Securities Lending Cash Central Fund |
|
Fidelity Revere Street Trust |
Fidelity Tax-Free Cash Central Fund |
|
B. |
Fund of Funds |
|
Trust |
|
Fund |
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2005 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2010 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2015 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2020 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2025 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2030 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2035 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2040 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2045 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2050 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom Income Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2000 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2005 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2010 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2015 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2020 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2025 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2030 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2035 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2040 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2045 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom 2050 Fund |
|
Fidelity Aberdeen Street Trust |
Fidelity Freedom Income Fund |
|
Variable Insurance Products Fund IV |
Freedom 2005 Portfolio |
|
Variable Insurance Products Fund IV |
Freedom 2010 Portfolio |
|
Variable Insurance Products Fund IV |
Freedom 2015 Portfolio |
|
Variable Insurance Products Fund IV |
Freedom 2020 Portfolio |
|
Variable Insurance Products Fund IV |
Freedom 2025 Portfolio |
|
Variable Insurance Products Fund IV |
Freedom 2030 Portfolio |
|
Variable Insurance Products Fund IV |
Freedom Income Portfolio |
|
Variable Insurance Products Fund IV |
Freedom Lifetime Income I Portfolio |
|
Variable Insurance Products Fund IV |
Freedom Lifetime Income II Portfolio |
|
Variable Insurance Products Fund IV |
Freedom Lifetime Income III Portfolio |
|
Variable Insurance Products Fund IV |
FundsManager 20% Portfolio |
|
Variable Insurance Products Fund IV |
FundsManager 50% Portfolio |
|
Variable Insurance Products Fund IV |
FundsManager 70% Portfolio |
|
Variable Insurance Products Fund IV |
FundsManager 85% Portfolio |
|
Variable Insurance Products Fund IV |
Investor Freedom 2005 Portfolio |
|
Variable Insurance Products Fund IV |
Investor Freedom 2010 Portfolio |
|
Variable Insurance Products Fund IV |
Investor Freedom 2015 Portfolio |
|
Variable Insurance Products Fund IV |
Investor Freedom 2020 Portfolio |
|
Variable Insurance Products Fund IV |
Investor Freedom 2025 Portfolio |
|
Variable Insurance Products Fund IV |
Investor Freedom 2030 Portfolio |
|
Variable Insurance Products Fund IV |
Investor Freedom Income Portfolio |
APPENDIX E
TO THE
CUSTODIAN AGREEMENT
BETWEEN
EACH OF THE INVESTMENT COMPANIES
LISTED ON APPENDIX "A" THERETO
AND
BROWN BROTHERS HARRIMAN & COMPANY
DATED AS OF:
TRANSFER AGENT ACCOUNTS
Bank Account Operating Name |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Bank Account Number |
FOREIGN EXCHANGE ACCOUNTS
Bank Account Operating Name |
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ |
Bank Account Number |
Exhibit (g)(4)
FORM OF
APPENDIX A
TO
CUSTODIAN AGREEMENT
BETWEEN
BROWN BROTHERS HARRIMAN & COMPANY
AND
EACH OF THE INVESTMENT COMPANIES
DATED AS OF
Trust |
Fund |
Effective Date |
Fidelity Advisor Series I |
Fidelity Advisor Fifty Fund |
January 1, 2007 |
Fidelity Advisor Series I |
Fidelity Advisor Large Cap Fund |
January 1, 2007 |
Fidelity Advisor Series I |
Fidelity Advisor Mid Cap Fund |
January 1, 2007 |
Fidelity Advisor Series I |
Fidelity Advisor Value Strategies Fund |
January 1, 2007 |
Fidelity Advisor Series VII |
Fidelity Advisor Energy Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor Emerging Asia Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor International Capital Appreciation Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor Value Leaders Fund |
January 1, 2007 |
Fidelity Capital Trust |
Fidelity Small Cap Independence Fund |
January 1, 2007 |
Fidelity Capital Trust |
Fidelity Stock Selector Fund |
January 1, 2007 |
Fidelity Commonwealth Trust |
Fidelity Large Cap Stock Fund |
January 1, 2007 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Stock Fund |
January 1, 2007 |
Fidelity Congress Street Fund |
Fidelity Congress Street Fund |
January 1, 2007 |
Fidelity Contrafund |
Fidelity Advisor New Insights Fund |
January 1, 2007 |
Fidelity Contrafund |
Fidelity Contrafund |
January 1, 2007 |
Fidelity Devonshire Trust |
Fidelity Real Estate Investment Portfolio |
January 1, 2007 |
Fidelity Devonshire Trust |
Fidelity Utilities Fund |
January 1, 2007 |
Fidelity Exchange Fund |
Fidelity Exchange Fund |
January 1, 2007 |
Fidelity Hastings Street Trust |
Fidelity Discovery Fund |
January 1, 2007 |
Fidelity Investment Trust |
Fidelity China Region Fund |
January 1, 2007 |
Fidelity Investment Trust |
Fidelity Global Balanced Fund |
January 1, 2007 |
Fidelity Investment Trust |
Fidelity Latin America Fund |
January 1, 2007 |
Fidelity Investment Trust |
Fidelity Nordic Fund |
January 1, 2007 |
Fidelity Puritan Trust |
Fidelity Low-Priced Stock Fund |
January 1, 2007 |
Fidelity Securities Fund |
Fidelity Blue Chip Value Fund |
January 1, 2007 |
Fidelity Select Portfolios |
Air Transportation Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Automotive Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Banking Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Biotechnology Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Brokerage and Investment Management Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Chemicals Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Communications Equipment Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Computers Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Construction and Housing Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Consumer Discretionary Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Consumer Staples Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Defense and Aerospace Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Electronics Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Energy Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Energy Service Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Environmental Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Financial Services Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Gold Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Health Care Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Home Finance Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Industrial Equipment Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Industrials Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Insurance Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
IT Services Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Leisure Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Materials Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Medical Delivery Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Medical Equipment and Systems Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Multimedia Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Natural Gas Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Natural Resources Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Networking and Infrastructure Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Paper and Forest Products Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Pharmaceuticals Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Retailing Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Software and Computer Services Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Technology Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Telecommunications Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Transportation Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Utilities Growth Portfolio |
January 1, 2007 |
Fidelity Select Portfolios |
Wireless Portfolio |
January 1, 2007 |
Variable Insurance Products Fund II |
Contrafund Portfolio |
January 1, 2007 |
Variable Insurance Products Fund III |
Mid Cap Portfolio |
January 1, 2007 |
Variable Insurance Products Fund IV |
International Capital Appreciation Portfolio |
January 1, 2007 |
Variable Insurance Products Fund IV |
Value Leaders Portfolio |
January 1, 2007 |
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Notes:
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1. The deletion of Fidelity Puritan Trust: Fidelity Balanced Fund 2. The deletion of Fidelity Capital Trust: Fidelity Capital Appreciation Fund 3. The deletion of Fidelity Investment Trust: Fidelity Canada Fund 4. The deletion of Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund 5. The deletion of Fidelity Mt. Vernon Street Trust: Fidelity Aggressive Growth Fund 6. The deletion of Fidelity Investment Trust: Fidelity Japan Smaller Companies Fund 7. The deletion of Fidelity Securities Fund: Fidelity OTC Portfolio 8. The deletion of Fidelity Financial Trust: Fidelity Independence Fund
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[SIGNATURE LINES OMITTED]
Exhibit (g)(5)
FORM OF
CUSTODIAN AGREEMENT
Dated as of
Between
Each of the Investment Companies
Listed on Appendix "A" Attached Hereto
and
STATE STREET BANK AND TRUST COMPANY
TABLE OF CONTENTS
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ARTICLE I APPOINTMENT OF CUSTODIAN |
1 |
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ARTICLE II POWERS AND DUTIES OF CUSTODIAN |
1 |
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Section 2.01. |
Safekeeping |
2 |
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Section 2.02 |
Manner of Holding Securities and Other Assets |
2 |
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Section 2.03 |
Security Purchases |
3 |
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Section 2.04 |
Exchanges of Securities |
4 |
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Section 2.05 |
Sales of Securities |
5 |
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Section 2.06 |
Depositary Receipts |
5 |
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Section 2.07 |
Exercise of Rights; Tender Offers |
6 |
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Section 2.08 |
Stock Dividends, Rights, Etc |
6 |
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Section 2.09 |
Options |
6 |
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Section 2.10 |
Futures Contracts |
6 |
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Section 2.11 |
Borrowing |
7 |
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Section 2.12 |
Interest Bearing Deposits |
7 |
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Section 2.13 |
Foreign Exchange Transactions |
8 |
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Section 2.14 |
Securities Loans |
9 |
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Section 2.15 |
Collections |
9 |
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Section 2.16 |
Dividends, Distributions and Redemptions |
9 |
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Section 2.17 |
Proceeds from Shares Sold |
10 |
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Section 2.18 |
Proxies, Notices, Etc |
10 |
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Section 2.19 |
Bills and Other Disbursements |
10 |
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Section 2.20 |
Nondiscretionary Functions |
10 |
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Section 2.21 |
Bank Accounts |
11 |
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Section 2.22 |
Deposit of Fund Assets in Securities Systems and Eligible Securities Depositories |
12 |
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Section 2.23 |
Other Transfers |
16 |
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Section 2.24 |
Establishment of Segregated Account |
16 |
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Section 2.25 |
Custodian's Books and Records |
16 |
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Section 2.26 |
Opinion of Fund's Independent Certified Pulic Accountants |
17 |
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Section 2.27 |
Reports by Independent Certified Public Accountants |
17 |
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Section 2.28 |
Overdraft Facility |
17 |
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Section 2.29 |
Insurance Requirements |
18 |
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Section 2.30 |
Provision of Information |
19 |
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Section 2.31 |
Compliance and Internal Control Reports |
19 |
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Section 2.32 |
Local Regulatory Matters |
19 |
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ARTICLE III PROPER INSTRUCTIONS, SPECIAL INSTRUCTIONS and related Matters |
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Section 3.01 |
Proper Instructions and Special Instructions |
19 |
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Section 3.02 |
Authorized Persons |
20 |
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Section 3.03 |
Persons Having Access to Assets of the Porfolios |
20 |
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Section 3.04 |
Actions of Custodian Based on Proper Instructions and Special Instructions |
21 |
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ARTICLE IV SUBCUSTODIANS |
21 |
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Section 4.01. |
Domestic Subcustodians |
21 |
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Section 4.02. |
Foreign Subcustodians and Interim Subcustodians |
21 |
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Section 4.03. |
Special Subcustodians |
24 |
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Section 4.04 |
Termination of a Subcustodian |
25 |
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Section 4.05 |
Certification Regarding Foreign Subcustodians |
25 |
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ARTICLE V STANDARD OF CARE; INDEMNIFICATION |
26 |
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Section 5.01 |
Standard of Care |
26 |
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Section 5.02 |
Liability of Custodian for Actions of Other Persons |
27 |
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Section 5.03 |
Indemnification |
28 |
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Section 5.04 |
Investment Limitations |
29 |
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Section 5.05 |
Fund's Right to Proceed |
29 |
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ARTICLE VI COMPENSATION |
30 |
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ARTICLE VII TERMINATION |
30 |
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Section 7.01 |
Termination of Agreement as to One or More Funds |
30 |
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Section 7.02. |
Termination as to One or More Portfolios |
31 |
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ARTICLE VIII DEFINED TERMS |
31 |
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ARTICLE IX MISCELLANEOUS |
32 |
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Section 9.01. |
Execution of Documents, Etc |
32 |
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Section 9.02. |
Representative Capacity; Nonrecourse Obligations |
33 |
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Section 9.03. |
Several Obligations of the Funds and the Portfolios |
33 |
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Section 9.04 |
Representations and Warranties |
33 |
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Section 9.05 |
Entire Agreement |
34 |
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Section 9.06 |
Waivers and Amendments |
34 |
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Section 9.07 |
Interpretation |
35 |
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Section 9.08 |
Captions |
35 |
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Section 9.09. |
Governing Law |
35 |
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Section 9.10. |
Notices |
35 |
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Section 9.11. |
Assignment |
36 |
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Section 9.12. |
Counterparts |
36 |
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Section 9.13 |
Consent to Recording |
36 |
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Section 9.14 |
Confidentiality; Reporting under Securities Exchange Act of 1934 |
36 |
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Section 9.15 |
Survival of Obligations |
37 |
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Section 9.16 |
Additional Services |
37 |
APPENDICES
Appendix "A" |
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List of Funds and Portfolios |
Appendix "B" |
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List of Additional Custodians, Special Subcustodians and Foreign Subcustodians |
Appendix "C" |
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Procedures Relating to Custodian' Security Interest |
Appendix "D" |
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List of Central Funds and Fund of Funds Portfolios |
Appendix "E" |
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List of Transfer Agent Accounts and Foreign Exchange Accounts |
CUSTODIAN AGREEMENT
AGREEMENT made as of the day of 200 between each of the Investment Companies Listed on Appendix "A" hereto, as the same may be amended from time to time, (each a "Fund" and collectively the "Funds") and State Street Bank and Trust Company (the "Custodian").
WITNESSETH
WHEREAS, each Fund may itself represent, or may be organized with one or more series of shares each of which shall represent, an interest in a separate portfolio of cash, securities and other assets (all such existing and additional series now or hereafter listed on Appendix "A" being hereinafter referred to individually, as a "Portfolio," and collectively, as the "Portfolios"); and
WHEREAS, each Fund desires to appoint the Custodian as custodian on behalf of each of its Portfolios in accordance with the provisions of the Investment Company Act of 1940, as amended (the "1940 Act"), and the rules and regulations thereunder, under the terms and conditions set forth in this Agreement, and the Custodian has agreed so to act as custodian.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:
ARTICLE I
APPOINTMENT OF CUSTODIAN
On behalf of each of its Portfolios, each Fund hereby employs and appoints the Custodian as a custodian, subject to the terms and provisions of this Agreement. Each Fund shall deliver to the Custodian, or shall cause to be delivered to the Custodian, cash, securities and other assets owned by each of its Portfolios from time to time during the term of this Agreement and shall specify to which of its Portfolios such cash, securities and other assets are to be specifically allocated.
ARTICLE II
POWERS AND DUTIES OF CUSTODIAN
As custodian, the Custodian shall have and perform the powers and duties set forth in this Article II. Pursuant to and in accordance with Article IV hereof, the Custodian may appoint one or more Subcustodians or may maintain assets with one or more Eligible Securities Depositories (each as hereinafter defined) to exercise the powers and perform the duties of the Custodian set forth in this Article II and references to the Custodian in this Article II shall include any Subcustodian or Eligible Securities Depository so appointed or utilized, as applicable.
ARTICLE II.1. Safekeeping. The Custodian shall keep safely all cash, securities and other assets of each Fund's Portfolios delivered to the Custodian and, on behalf of such Portfolios, the Custodian shall, from time to time, accept delivery of cash, securities and other assets for safekeeping.
ARTICLE II.2. Manner of Holding Securities and Other Assets.
(a) Except to the extent precluded by Section 8-501(d) of the Uniform Commercial Code as in effect in the Commonwealth of Massachusetts ("UCC"), the Custodian shall hold all securities and other assets, other than cash, of a Fund's Portfolio that are delivered to it hereunder in a "securities account" with the Custodian for and in the name of such Portfolio and, except to the extent precluded by Section 8-501(d) of the UCC, shall treat all such assets, other than cash, as "financial assets" as those terms are used in the UCC. The Custodian shall at all times hold securities or other financial assets held for each Fund's Portfolios either: (i) by physical possession of the certificated securities or instruments representing such financial assets, in either registered or bearer form; or (ii) in book-entry form by maintaining "security entitlements," within the meaning of the UCC, with respect to such financial assets with (A) a Securities System (as hereinafter defined) in accordance with the provisions of Section 2.22(a) below or (B) an Eligible Securities Depository in accordance with the provisions of Section 2.22(b) below. The standards for the performance of the duties and obligations of the Custodian under UCC Article 8, including without limitation Section 8-504 through Section 8-508, with respect to securities entitlements of a Fund or its Portfolio(s) shall be as set forth under this Agreement.
(b) The Custodian shall at all times hold registered securities of each Portfolio in the name of the Custodian, the Portfolio or a nominee of either of them, unless specifically directed by Proper Instructions to hold such registered securities in so-called street name; provided that, in any event, all such securities and other assets shall be held in an account of the Custodian containing only assets of a Portfolio, or only assets held by the Custodian as a fiduciary or custodian for customers; and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein.
(c) Notwithstanding the provisions of the foregoing paragraphs of this Section 2.02, the Custodian is hereby authorized to maintain the shares of certain open-end management investment companies, managed by Fidelity Management & Research Company ("FMR") or its affiliates or successors as listed on Appendix "D" hereto, as the same may be amended from time to time in accordance with Section 9.06(e) hereof, (the "Central Funds") owned by the Portfolios, in book-entry form directly with the transfer agent or a designated sub-transfer agent of each such Central Fund ("Central Funds Transfer Agent"), subject to and in accordance with the following provisions:
(i) Such Central Fund shares shall be maintained in separate custodian accounts for each Portfolio in the Custodian's name or nominee, as custodian for such Portfolio or Portfolios.
(ii) The Custodian will implement appropriate control procedures (the "Central Fund Control Procedures") to ensure that (A) only authorized personnel of the Custodian will be authorized to give instructions to the Central Fund Transfer Agent in connection with a Portfolio's purchase or sale of Central Fund shares, (B) trade instructions sent to the Central Fund Transfer Agent are properly acknowledged by the Central Fund Transfer Agent, and (C) the Central Fund Transfer Agent's records of each Portfolio's holdings of Central Fund shares are properly reconciled with the Custodian's records.
(d) Notwithstanding the provisions of the foregoing paragraphs of this Section 2.02, the Custodian is hereby authorized to maintain the shares of certain open-end management investment companies (the "Underlying Funds") owned by one or more of the Fidelity Fund of Funds as listed on Appendix "D" hereto, as the same may be amended from time to time in accordance with the provisions of Section 9.06(e) hereof, (each a "Fund of Funds Portfolio" and collectively the "Fund of Funds Portfolios") in book-entry form directly with the transfer agent or a designated sub-transfer agent of each such Underlying Fund (an "Underlying Fund Transfer Agent"), subject to and in accordance with the following provisions:
(i) Such Underlying Fund shares shall be maintained in separate custodian accounts for each Fund of Funds Portfolio in the Custodian's name or nominee, as the custodian for such Fund of Funds Portfolio.
(ii) The Custodian will implement appropriate control procedures (the "Fund of Funds Portfolio Control Procedures") to ensure that the Underlying Fund Transfer Agent's records of each Fund of Funds Portfolio's holdings of Underlying Fund shares are properly reconciled with the Custodian's records.
ARTICLE II.3. Security Purchases. Upon receipt of Proper Instructions (as hereinafter defined), the Custodian shall pay for and receive securities purchased for the account of a Portfolio, provided that, payment shall be made by the Custodian only upon receipt of the securities by: (1) the Custodian; (2) a clearing corporation of a national securities exchange of which the Custodian is a member; (3) a Securities System; or (4) an Eligible Securities Depository. Notwithstanding the foregoing, upon receipt of Proper Instructions: (i) in the case of a repurchase agreement, the Custodian may release funds to a Securities System prior to the receipt of advice from the Securities System that the securities underlying such repurchase agreement have been transferred by book-entry into the Account (as hereinafter defined) maintained with such Securities System by the Custodian, provided that, the Custodian's instructions to the Securities System require that the Securities System may make payment of such funds to the other party to the repurchase agreement only upon transfer by book-entry of the securities underlying the repurchase agreement into the Account; (ii) in the case of time deposits, call account deposits, currency deposits, and other deposits, foreign exchange transactions, futures contracts or options, pursuant to Sections 2.09, 2.10, 2.12 and 2.13 hereof, the Custodian may make payment therefor before receipt of an advice or confirmation evidencing said deposit or entry into such transaction; (iii) in the case of the purchase of securities, the settlement of which occurs outside of the United States of America, the Custodian may make payment therefor and receive delivery of such securities in accordance with local custom and practice generally accepted by Institutional Clients (as hereinafter defined) in the country in which the settlement occurs, but in all events subject to the standard of care set forth in Article V hereof; (iv) in the case of the purchase of securities in which, in accordance with standard industry custom and practice generally accepted by Institutional Clients with respect to such securities, the receipt of such securities and the payment therefor take place in different countries, the Custodian may receive delivery of such securities and make payment therefor in accordance with standard industry custom and practice for such securities generally accepted by Institutional Clients, but in all events subject to the standard of care set forth in Article V hereof; (v) in the case of the purchase of Central Fund shares, the Custodian shall pay for and receive Central Fund shares purchased for the account of a Portfolio; provided that (A) the Custodian shall only send instructions to purchase such shares to the Central Fund Transfer Agent in accordance with the Central Fund Control Procedures ("Central Fund Purchase Instructions") upon receipt of Proper Instructions from the Fund, and (B) the Custodian shall release funds to the Central Fund Transfer Agent only after receiving acknowledgment from the Central Fund Transfer Agent that it has received the Central Fund Purchase Instructions; and (vi) in the case of the purchase of Underlying Fund shares for a Fund of Funds Portfolio, the Custodian shall pay for and receive such Underlying Fund shares purchased for the account of a Portfolio, provided that, (A) the Custodian shall only send instructions to purchase such shares to the Underlying Fund Transfer Agent in accordance with the Fund of Funds Portfolio Control Procedures ("Fund of Funds Portfolio Purchase Instructions") upon receipt of instructions from FMR's custody operations and (B) the Custodian shall release funds to the Underlying Fund Transfer Agent only after receiving confirmation from such Underlying Fund Transfer Agent that it has received the Fund of Funds Portfolio Purchase Instructions. For purposes of this Agreement, an "Institutional Client" shall mean a major commercial bank, corporation, insurance company, pension fund or substantially similar institution, which, as a substantial part of its business operations, purchases or sells securities and makes use of custodial services.
ARTICLE II.4. Exchanges of Securities. Upon receipt of Proper Instructions, the Custodian shall exchange securities held by it for the account of a Portfolio for other securities in connection with any reorganization, recapitalization, split-up of shares, change of par value, conversion or other event relating to the securities or the issuer of such securities, and shall deposit any such securities in accordance with the terms of any reorganization or protective plan. The Custodian shall, without receiving Proper Instructions: surrender securities in temporary form for definitive securities; surrender securities for transfer into the name of the Custodian, a Portfolio or a nominee of either of them, as permitted by Section 2.02(b); and surrender securities for a different number of certificates or instruments representing the same number of shares or same principal amount of indebtedness, provided that the securities to be issued will be delivered to the Custodian or a nominee of the Custodian.
ARTICLE II.5. Sales of Securities. (a) Upon receipt of Proper Instructions, the Custodian shall make delivery of securities which have been sold for the account of a Portfolio, but only against payment therefor in the form of: (1) cash, certified check, bank cashier's check, bank credit, or bank wire transfer; (2) credit to the account of the Custodian with a clearing corporation of a national securities exchange of which the Custodian is a member; or (3) credit to the Account of the Custodian with a Securities System or Eligible Securities Depository, in accordance with the provisions of Section 2.22(a) and Section 2.22(b) hereof. Notwithstanding the foregoing, upon the receipt of Proper Instructions: (i) in the case of the sale of securities, the settlement of which occurs outside of the United States of America, such securities shall be delivered and paid for in accordance with local custom and practice generally accepted by Institutional Clients in the country in which the settlement occurs, but in all events subject to the standard of care set forth in Article V hereof; (ii) in the case of the sale of securities in which, in accordance with standard industry custom and practice generally accepted by Institutional Clients with respect to such securities, the delivery of such securities and receipt of payment therefor take place in different countries, the Custodian may deliver such securities and receive payment therefor in accordance with standard industry custom and practice for such securities generally accepted by Institutional Clients, but in all events subject to the standard of care set forth in Article V hereof; (iii) in the case of securities held in physical form, such securities shall be delivered and paid for in accordance with "street delivery custom" to a broker or its clearing agent, against delivery to the Custodian of a receipt for such securities, provided that the Custodian shall have taken reasonable steps to ensure prompt collection of the payment for, or the return of, such securities by the broker or its clearing agent, and provided further that the Custodian shall not be responsible for the selection of or the failure or inability to perform of such broker or its clearing agent; (iv) in the case of Central Fund shares, the Custodian shall release Central Fund shares sold for the account of a Portfolio, provided that (A) the Custodian shall only send instructions to sell such shares to the Central Fund Transfer Agent in accordance with the Central Fund Control Procedures ("Central Fund Sell Instructions") upon receipt of Proper Instructions, and (B) such Central Fund Sell Instructions shall be properly confirmed by the Central Fund Transfer Agent; and (v) in the case of the sale of Underlying Fund shares of a Fund of Funds Portfolio, the Custodian shall release such Underlying Fund shares, provided that, the Custodian shall only send instructions to sell shares to an Underlying Fund Transfer Agent in accordance with the Fund of Funds Portfolio Control Procedures (the "Fund of Funds Portfolio Sell Instructions") upon receipt of Fund of Funds Portfolio Sell Instructions from FMR's custody operations.
ARTICLE II.6. Depositary Receipts. Upon receipt of Proper Instructions, the Custodian shall surrender securities to the depositary used for such securities by an issuer of American Depositary Receipts, Global Depository Receipts or International Depositary Receipts (hereinafter referred to, collectively, as "ADRs"), against a written receipt therefor adequately describing such securities and written evidence satisfactory to the Custodian that the depositary has acknowledged receipt of instructions to issue ADRs with respect to such securities in the name of the Custodian or a nominee of the Custodian, for delivery to the Custodian at such place as the Custodian may from time to time designate. Upon receipt of Proper Instructions, the Custodian shall surrender ADRs to the issuer thereof, against a written receipt therefor adequately describing the ADRs surrendered and written evidence satisfactory to the Custodian that the issuer of the ADRs has acknowledged receipt of instructions to cause its depository to deliver the securities underlying such ADRs to the Custodian.
ARTICLE II.7. Exercise of Rights; Tender Offers. Upon receipt of Proper Instructions, the Custodian shall: (a) deliver warrants, puts, calls, rights or similar securities to the issuer or trustee thereof, or to the agent of such issuer or trustee, for the purpose of exercise or sale, provided that the new securities, cash or other assets, if any, acquired as a result of such actions are to be delivered to the Custodian; and (b) deposit securities upon invitations for tenders thereof, provided that the consideration for such securities is to be paid or delivered to the Custodian, or the tendered securities are to be returned to the Custodian. Notwithstanding any provision of this Agreement to the contrary, the Custodian shall take all necessary action, unless otherwise directed to the contrary in Proper Instructions, to comply with the terms of all mandatory or compulsory exchanges, calls, tenders, redemptions, or similar rights of security ownership, and shall promptly notify each applicable Fund of such action in writing by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing.
ARTICLE II.8. Stock Dividends, Rights, Etc. The Custodian shall receive and collect all stock dividends, rights and other items of like nature and, upon receipt of Proper Instructions, take action with respect to the same as directed in such Proper Instructions.
ARTICLE II.9. Options. Upon receipt of Proper Instructions and in accordance with the provisions of any agreement between the Custodian, any registered broker-dealer and, if necessary, a Fund on behalf of any applicable Portfolio relating to compliance with the rules of the Options Clearing Corporation or of any registered national securities exchange or similar organization(s), the Custodian shall: (a) receive and retain confirmations or other documents, if any, evidencing the purchase or writing of an option on a security or securities index by the applicable Portfolio; (b) pledge or deposit and maintain in a segregated account, as applicable securities (either physically or by book-entry in a Securities System), cash or other assets; and (c) pay, release and/or transfer such securities, cash or other assets in accordance with notices or other communications evidencing the expiration, termination or exercise of such options furnished by the Options Clearing Corporation, the securities or options exchange on which such options are traded, or such other organization as may be responsible for handling such option transactions. Each Fund, on behalf of its applicable Portfolios, and the broker-dealer shall be solely responsible for the sufficiency of assets held in any segregated account established in compliance with applicable margin maintenance requirements and the performance of other terms of any option contract.
ARTICLE II.10. Futures Contracts. Upon receipt of Proper Instructions, the Custodian shall: (a) receive and retain confirmations, if any, evidencing the purchase or sale of a futures contract or an option on a futures contract by the applicable Portfolio; (b) deposit and maintain such cash, securities and other assets designated as initial, maintenance or variation "margin" deposits intended to secure the applicable Portfolio's performance of its obligations under any such futures contracts purchased or sold or any such options on futures contracts written by the Portfolio (i) in a segregated account established in accordance with the provisions of a futures margin procedural agreement among a Fund, on behalf of any applicable Portfolio, the Custodian and any futures commission merchant (a "Procedural Agreement"), designed to comply with the rules of the Commodity Futures Trading Commission and/or any commodity exchange or contract market (such as the Chicago Board of Trade), or any similar organization(s), regarding such margin deposits (a "Segregated Futures Margin Account"), or (ii) in a broker's margin account meeting the requirements of Rule 17f-6 under the 1940 Act, as the same may be amended from time to time (a "Broker's Futures Margin Account"); and (c) release to the applicable Portfolio any such assets held in a Segregated Futures Margin Account, or accept delivery of such assets back from a Broker's Margin Account, as the case may be. In the absence of Proper Instructions, the Custodian may release assets from and/or transfer assets into a Segregated Futures Margin Account only in accordance with the provisions of the applicable Procedural Agreement. Each Fund, on behalf of its applicable Portfolios, and the applicable futures commission merchant shall be solely responsible for the sufficiency of assets held in a Segregated Futures Margin Account or Broker's Futures Margin Account, as the case may be, in compliance with applicable margin maintenance requirements and the performance of any futures contract or option on a futures contract in accordance with its terms. For purposes of determining the Custodian's obligations with respect to any losses resulting from the acts or omissions of any futures commission merchant holding Portfolio assets in a Broker's Futures Margin Account, such futures commission merchant shall be deemed to be an Additional Custodian (as defined below), and the Custodian's liability shall be governed by the provisions of Section 5.02(c) hereof.
ARTICLE II.11. Borrowing. Upon receipt of Proper Instructions, the Custodian shall deliver securities of a Portfolio to lenders or their agents, or otherwise establish a segregated account as agreed to by the applicable Fund on behalf of such Portfolio and the Custodian, as collateral for borrowings effected by such Portfolio, provided that such borrowed money is payable by the lender (a) to or upon the Custodian's order, as Custodian for such Portfolio, and (b) concurrently with delivery of such securities.
ARTICLE II.12. Interest Bearing Deposits. Upon receipt of Proper Instructions directing the Custodian to purchase interest bearing fixed term and call deposits (hereinafter referred to collectively, as "Interest Bearing Deposits") for the account of a Portfolio, the Custodian shall purchase such Interest Bearing Deposits in the name of the Portfolio with such banks or trust companies (including the Custodian, any Subcustodian or any subsidiary or affiliate of the Custodian) (hereinafter referred to as "Banking Institutions") and in such amounts as the applicable Fund may direct pursuant to Proper Instructions. Such Interest Bearing Deposits may be denominated in U.S. Dollars or other currencies, as the applicable Fund on behalf of its Portfolio may determine and direct pursuant to Proper Instructions. The Custodian shall include in its records with respect to the assets of each Portfolio appropriate notation as to the amount and currency of each such Interest Bearing Bank Deposit, the accepting Banking Institution and all other appropriate details, and shall retain such forms of advice or receipt evidencing such account, if any, as may be forwarded to the Custodian by the Banking Institution. The responsibilities of the Custodian to each Fund for Interest Bearing Deposits accepted on the Custodian's books in the United States of America on behalf of the Fund's Portfolios shall be that of a U.S. bank for a similar deposit. The responsibilities of the Custodian to each Fund for Interest Bearing Deposits accepted on the Custodian's books in one of its non-U.S. branches on behalf of the Fund's Portfolios shall be that of a non-U.S. branch of a U.S. bank for a similar deposit. With respect to Interest Bearing Deposits other than those accepted on the Custodian's books, (a) the Custodian shall be responsible for the collection of income as set forth in Section 2.15 and the transmission of cash and instructions to and from such accounts; and (b) the Custodian shall have no duty with respect to the selection of the Banking Institution or, so long as the Custodian acts in accordance with Proper Instructions, for the failure of such Banking Institution to pay upon demand. Upon receipt of Proper Instructions, the Custodian shall take such reasonable actions as the applicable Fund deems necessary or appropriate to cause each such Interest Bearing Deposit Account to be insured to the maximum extent possible by all applicable deposit insurers including, without limitation, the Federal Deposit Insurance Corporation.
ARTICLE II.13. Foreign Exchange Transactions.
(a) Foreign Exchange Transactions Other Than as Principal. Upon receipt of Proper Instructions, the Custodian shall settle foreign exchange contracts or options to purchase and sell foreign currencies for spot and future delivery on behalf of and for the account of a Portfolio with such currency brokers or Banking Institutions as the applicable Fund may determine and direct pursuant to Proper Instructions. The Custodian shall be responsible for the transmission of cash and instructions to and from the currency broker or Banking Institution with which the contract or option is made, the safekeeping of all certificates and other documents and agreements evidencing or relating to such foreign exchange transactions and the maintenance of proper records as set forth in Section 2.25. The Custodian shall have no duty with respect to the selection of the currency brokers or Banking Institutions with which a Fund deals on behalf of its Portfolios or, so long as the Custodian acts in accordance with Proper Instructions, for the failure of such brokers or Banking Institutions to comply with the terms of any contract or option.
(b) Foreign Exchange Contracts as Principal. The Custodian shall not be obligated to enter into foreign exchange transactions as principal. However, if the Custodian has made available to a Fund its services as a principal in foreign exchange transactions, upon receipt of Proper Instructions, the Custodian shall enter into foreign exchange contracts or options to purchase and sell foreign currencies for spot and future delivery on behalf of and for the account of a Portfolio of such Fund with the Custodian as principal. The Custodian shall be responsible for the selection of the currency brokers or Banking Institutions and the failure of such currency brokers or Banking Institutions to comply with the terms of any contract or option.
(c) Payments. Notwithstanding anything to the contrary contained herein, upon receipt of Proper Instructions the Custodian may, in connection with a foreign exchange contract, make free outgoing payments of cash in the form of U.S. Dollars or foreign currency prior to receipt of confirmation of such foreign exchange contract or confirmation that the countervalue currency completing such contract has been delivered or received.
ARTICLE II.14. Securities Loans. Upon receipt of Proper Instructions, the Custodian shall, in connection with loans of securities by a Portfolio, deliver securities of such Portfolio to the borrower thereof prior to receipt of the collateral, if any, for such borrowing; provided that, in cases of loans of securities secured by cash collateral, the Custodian's instructions to the Securities System shall require that the Securities System deliver the securities of the Portfolio to the borrower thereof only upon receipt of the collateral for such borrowing. Upon receipt of Proper Instructions, the Custodian shall release the collateral received in respect of a loan of securities to the borrower against receipt of the loaned securities.
ARTICLE II.15. Collections. The Custodian shall, and shall cause each Subcustodian to: (a) collect amounts due and payable to each Fund with respect to portfolio securities and other assets of each of such Fund's Portfolios; (b) promptly credit to the account of each applicable Portfolio all income and other payments relating to portfolio securities and other assets held by the Custodian hereunder upon Custodian's receipt of such income or payments or as otherwise agreed in writing by the Custodian and the applicable Fund; (c) promptly endorse and deliver any instruments required to effect such collections; (d) promptly execute ownership and other certificates and affidavits for all federal, state and foreign tax purposes in connection with receipt of income, capital gains or other payments with respect to portfolio securities and other assets of each applicable Portfolio, or in connection with the purchase, sale or transfer of such securities or other assets; and (e) promptly file any certificates or other affidavits for the refund or reclaim of foreign taxes paid, and promptly notify each applicable Fund of any changes to law, interpretative rulings or procedures regarding such reclaims, and otherwise use all available measures customarily used to minimize the imposition of foreign taxes at source, and promptly inform each applicable Fund of alternative means of minimizing such taxes of which the Custodian shall become aware (or with the exercise of reasonable care should have become aware); provided, however, that with respect to portfolio securities registered in so-called street name, the Custodian shall use its best efforts to collect amounts due and payable to each Fund with respect to its Portfolios. The Custodian shall promptly notify each applicable Fund in writing by facsimile transmission, or in such other manner as each such Fund and the Custodian may agree in writing, if any amount payable with respect to portfolio securities or other assets of the Portfolios of such Fund(s) is not received by the Custodian when due. The Custodian shall not be responsible for the collection of amounts due and payable with respect to portfolio securities or other assets that are in default.
ARTICLE II.16. Dividends, Distributions and Redemptions. The Custodian shall promptly release funds or securities: (a) upon receipt of Proper Instructions, to one or more Distribution Accounts designated by the applicable Fund or Funds in such Proper Instructions; or (b) upon receipt of Special Instructions, as otherwise directed by the applicable Fund or Funds, for the purpose of the payment of dividends or other distributions to shareholders of each applicable Portfolio, and payment to shareholders who have requested repurchase or redemption of their shares of the Portfolio(s) (collectively, the "Shares"). For purposes of this Agreement, a "Distribution Account" shall mean an account established at a Banking Institution designated by the applicable Fund on behalf of one or more of its Portfolios in Special Instructions.
ARTICLE II.17. Proceeds from Shares Sold. The Custodian shall receive funds representing cash payments received for Shares issued or sold from time to time by the Funds, and shall promptly credit such funds to the account(s) of the applicable Portfolio(s). The Custodian shall promptly notify each applicable Fund of Custodian's receipt of cash in payment for Shares issued by such Fund by facsimile transmission or in such other manner as the Fund and Custodian may agree in writing. Upon receipt of Proper Instructions, the Custodian shall: (a) deliver all federal funds received by the Custodian in payment for Shares in payment for such investments as may be set forth in such Proper Instructions and at a time agreed upon between the Custodian and the applicable Fund; and (b) make federal funds available to the applicable Fund as of specified times agreed upon from time to time by the applicable Fund and the Custodian, in the amount of checks received in payment for Shares which are deposited to the accounts of each applicable Portfolio.
ARTICLE II.18. Proxies, Notices, Etc. The Custodian shall deliver to each applicable Fund, in the most expeditious manner practicable, all forms of proxies, all notices of meetings, and any other notices or announcements affecting or relating to securities owned by one or more of the applicable Fund's Portfolios that are received by the Custodian, any Subcustodian, or any nominee of either of them (or with the exercise of reasonable care that the Custodian, any Subcustodian, or any nominee of either of them should have become aware), and, upon receipt of Proper Instructions, the Custodian shall execute and deliver, or cause such Subcustodian or nominee to execute and deliver, such proxies or other authorizations as may be required. The Custodian recognizes that this requirement applies to all securities and that each Fund's investments in non-U.S. securities may entail proxies and notices, which, for the avoidance of doubt, are explicitly covered hereunder. In the event that a Fund invests in non-U.S. securities in a market in which the Custodian does not offer proxy voting services, the Custodian shall promptly notify such Fund. Except as directed pursuant to Proper Instructions, neither the Custodian nor any Subcustodian or nominee shall vote upon any such securities, or execute any proxy to vote thereon, or give any consent or take any other action with respect thereto. In the event that the Custodian is unable to vote upon any such securities in accordance with Proper Instructions for any reason including, but not limited to, the failure of the applicable Fund to deliver any necessary powers of attorney or other documentation, the Custodian shall promptly notify (subject to market practices and rules) the applicable Fund.
ARTICLE II.19. Bills and Other Disbursements. Upon receipt of Proper Instructions, the Custodian shall pay or cause to be paid, all bills, statements, or other obligations of each Portfolio.
ARTICLE II.20. Nondiscretionary Functions. The Custodian shall attend to all nondiscretionary details in connection with the sale, exchange, substitution, purchase, transfer or other dealings with securities or other assets of each Portfolio held by the Custodian, except as otherwise directed from time to time pursuant to Proper Instructions.
ARTICLE II.21. Bank Accounts.
(a) Accounts with the Custodian and any Subcustodians. The Custodian shall open and operate a bank account or accounts (hereinafter referred to collectively, as "Bank Accounts") on the books of the Custodian or any Subcustodian provided that such account(s) shall be in the name of the Custodian or a nominee of the Custodian, for the account of a Portfolio, and shall be subject only to the draft or order of the Custodian; and provided further, however, that such Bank Accounts in countries other than the United States of America may be held in an account of the Custodian containing only assets held by the Custodian as a fiduciary or custodian for customers, and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein. Such Bank Accounts may be denominated in either U.S. Dollars or other currencies. The responsibilities of the Custodian to each applicable Fund for deposits accepted on the Custodian's books in the United States of America shall be that of a U.S. bank for a similar deposit. The responsibilities of the Custodian to each applicable Fund for deposits accepted on the Custodian's books in its non-U.S. branches shall be that of a non-U.S. branch of a U.S. bank for a similar deposit. The responsibilities of the Custodian to each applicable Fund for deposits accepted on any Subcustodian's books shall be governed by the provisions of Section 5.02.
(b) Accounts With Other Banking Institutions. The Custodian may open and operate Bank Accounts on behalf of a Portfolio, in the name of the Custodian or a nominee of the Custodian, at a Banking Institution other than the Custodian or any Subcustodian, provided that such account(s) shall be in the name of the Custodian or a nominee of the Custodian, for the account of a Portfolio, and shall be subject only to the draft or order of the Custodian; provided however, that such Bank Accounts may be held in an account of the Custodian containing only assets held by the Custodian as a fiduciary or custodian for customers, and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein. Such Bank Accounts may be denominated in either U.S. Dollars or other currencies. Subject to the provisions of Section 5.01(a), the Custodian shall be responsible for the selection of the Banking Institution and for the failure of such Banking Institution to pay according to the terms of the deposit.
(c) Transfer Agent and Foreign Exchange Settlement Accounts. The Custodian maintains certain Bank Accounts at the Custodian on behalf of the Funds (the "Transfer Agent Accounts") to facilitate the efficient transfer of cash to and from (i) the Bank Accounts established and maintained at the Custodian and (ii) bank accounts established and maintained at Banking Institutions other than the Custodian or any Subcustodian. The Custodian also maintains certain Bank Accounts at the Custodian on behalf of the Funds (the "Foreign Exchange Accounts") to facilitate the settlement of foreign currency transactions on a net basis, for immediate further allocation to those Funds participating in each foreign currency transaction. Each of the Funds and Custodian agree that the Custodian shall provide the Transfer Agent Accounts and the Foreign Exchange Accounts established and maintained by such Custodian with the same treatment as other Bank Accounts established and maintained pursuant to this Agreement, and any and all applicable representations, warranties, covenants, conditions, agreement, rights, obligations or duties of the Funds or the Custodian with respect to such Transfer Agent Accounts and Foreign Exchange Accounts shall be governed by the corresponding provisions of this Agreement. The Custodian shall also specify in the records it maintains with respect to the Funds and their Bank Accounts and any other records maintained or required to be maintained by this Agreement or applicable regulatory requirements by the Custodian, its relationship as Custodian pursuant to which the Transfer Agent Accounts and the Foreign Exchange Accounts are maintained in order to comply with the any applicable rules, regulations, or other requirements of the Federal Deposit Insurance Corporation. The Custodian agrees that such records shall be conclusive evidence of the individual and not joint interest of each Fund in any amounts then credited to the Transfer Agent Accounts or the Foreign Exchange Accounts. Each of the Transfer Agent Accounts and Foreign Exchange Accounts designated by the Funds is set forth on Appendix E to this Agreement, as the same may be amended from time to time in accordance with the terms of this Agreement. The Funds have authorized Fidelity Service Company, Inc., Fidelity Investments Institutional Operations Company, Inc. or any successor thereof to act on their behalf with respect to transactions involving the Transfer Agent Accounts.
(d) Deposit Insurance. Upon receipt of Proper Instructions, the Custodian shall take such reasonable actions as the applicable Fund deems necessary or appropriate to cause each deposit account established by the Custodian pursuant to this Section 2.21 to be insured to the maximum extent possible by all applicable deposit insurers including, without limitation, the Federal Deposit Insurance Corporation.
ARTICLE II.22. Deposit of Fund Assets in Securities Systems and Eligible Securities Depositories. (a) The Custodian may deposit and/or maintain domestic securities owned by a Portfolio in: (1) The Depository Trust Company; (2) any book-entry system as provided in (i) Subpart O of Treasury Circular No. 300, 31 CFR 306.115, (ii) Subpart B of Treasury Circular Public Debt Series No. 27-76, 31 CFR 350.2, or (iii) the book-entry regulations of federal agencies substantially in the form of 31 CFR 306.115; or (3) any other domestic clearing agency registered with the Securities and Exchange Commission ("SEC") under Section 17A of the Securities Exchange Act of 1934 (or as may otherwise be authorized by the SEC to serve in the capacity of depository or clearing agent for the securities or other assets of investment companies) which acts as a securities depository and the use of which each applicable Fund has previously approved by Special Instructions (as hereinafter defined) (each of the foregoing being referred to in this Agreement as a "Securities System"). Use of a Securities System shall be in accordance with applicable Federal Reserve Board and SEC rules and regulations, if any, and subject to the following provisions:
(a) The Custodian may deposit and/or maintain securities held hereunder in a Securities System, provided that such securities are represented in an account ("Account") of the Custodian in the Securities System which Account shall not contain any assets of the Custodian other than assets held as a fiduciary, custodian, or otherwise for customers and shall be so designated on the books and records of the Securities System.
(i) The Securities System shall be obligated to comply with the Custodian's directions with respect to the securities held in such Account and shall not be entitled to a lien against the assets in such Account for extensions of credit to the Custodian other than for payment of the purchase price of such assets.
(1) Each Fund hereby designates the Custodian as the party in whose name any securities deposited by the Custodian in the Account are to be registered or recorded.
(2) The books and records of the Custodian shall at all times identify those securities belonging to each Portfolio which are maintained in a Securities System.
(3) The Custodian shall pay for securities purchased for the account of a Portfolio only upon (w) receipt of advice from the Securities System that such securities have been transferred to the Account of the Custodian, and (x) the making of an entry on the records of the Custodian to reflect such payment and transfer for the account of such Portfolio. The Custodian shall transfer securities sold for the account of a Portfolio only upon (y) receipt of advice from the Securities System that payment for such securities has been transferred to the Account of the Custodian, and (z) the making of an entry on the records of the Custodian to reflect such transfer and payment for the account of such Portfolio. The Custodian shall at all times maintain suitable documentation, such as confirmations, position statements and other records, stored in an easily accessible format, commensurate with industry and regulatory standards, that shall identify transfers of securities from the Securities System for the account of such Portfolio. The Custodian shall deliver to each applicable Fund on the next succeeding Business Day daily transaction reports which shall include each day's transactions in the Securities System for the account of each applicable Portfolio. Such transaction reports shall be delivered to each applicable Fund or any agent designated by such Fund pursuant to Proper Instructions, by computer or in such other manner as such Fund and the Custodian may agree in writing.
(4) The Custodian shall, if requested by a Fund pursuant to Proper Instructions, provide such Fund with all reports obtained by the Custodian or any Subcustodian with respect to a Securities System's accounting system, internal accounting control and procedures for safeguarding securities deposited in the Securities System.
(5) Upon receipt of Special Instructions, the Custodian shall terminate the use of any Securities System (except the federal book-entry system) on behalf of any Portfolio as promptly as practicable and shall take all actions reasonably practicable to safeguard the securities of any Portfolio maintained with such Securities System.
(b) The Custodian may deposit and/or maintain "Foreign Assets" (as defined in Rule 17f-5 under the 1940 Act, as the same may be amended from time to time ("Rule 17f-5")), owned by a Portfolio in a securities depository located outside the United States of America that the Custodian has determined meets the definition of "Eligible Securities Depository" under Rule 17f-7(b)(1) under the 1940 Act, as the same may be amended from time to time ("Rule 17f-7"), or that has otherwise been made exempt pursuant to an exemptive order of the SEC or no-action letter of the staff of the SEC (each of the foregoing being referred to in this Agreement as an "Eligible Securities Depository"), provided that prior to the deposit or maintenance of Foreign Assets of a Fund with a securities depository located outside the United States of America, the Custodian shall have certified in writing to the Fund, on behalf of its Portfolios, that the securities depository is an "Eligible Securities Depository". Use of an Eligible Securities Depository shall be in accordance with applicable SEC rules and regulations, in particular Rule 17f-7 under the 1940 Act, and subject to the following provisions:
(i) The Custodian or any Subcustodian may deposit and/or maintain Foreign Assets held hereunder in an Eligible Securities Depository, provided that such Foreign Assets are represented in an Account of the Custodian or Subcustodian in the Eligible Securities Depository which Account shall not contain any assets of the Custodian or Subcustodian other than assets held as a fiduciary, custodian, or otherwise for customers and shall be so designated on the books and records of the Eligible Securities Depository unless the Fund by Special Instructions permits another manner of holding, representing and/or designating a Fund's Foreign Assets.
(1) The Custodian shall, in accordance with the standard of care set forth in Section 5.01(a) hereof, be responsible for: (A) providing the Fund or its designee, on behalf of its applicable Portfolio(s), an analysis (in form and substance reasonably satisfactory to the Fund) of the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository; (B) establishing a system to monitor the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository; (C) monitoring the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository on a continuing basis; and (D) promptly notifying the Fund of any material change in the custody risks associated with maintaining Foreign Assets with the Eligible Securities Depository.
(2) The Eligible Securities Depository shall be obligated to comply with the Custodian's or Subcustodian's directions with respect to the Foreign Assets held in such Account, provided that the Foreign Assets held in such Account shall not be subject to any right, charge, security interest, lien or claim of any kind in favor of the Custodian or Subcustodian (or either of their respective creditors), except a claim for reasonable payment for their safe custody or administration.
(3) Each Fund hereby designates the Custodian or each Subcustodian as the party in whose name any Foreign Assets deposited by the Custodian or the Subcustodian in the Account are to be registered or recorded, provided, however, that the Custodian may register or record Foreign Assets of a Fund in the name of the Fund or other nominee for the Fund upon the Custodian's provision of written notice to the Fund of such proposed registration or recordation at least 5 Business Days prior to such registration or recordation.
(4) The books and records of the Custodian shall at all times identify those Foreign Assets belonging to each Portfolio which are maintained in an Eligible Securities Depository.
(5) The Custodian shall pay for Foreign Assets purchased for the account of a Portfolio only upon (w) receipt of advice from the Eligible Securities Depository that such Foreign Assets have been transferred to the Account of the Custodian or Subcustodian, and (x) the making of an entry on the records of the Custodian to reflect such payment and transfer for the account of such Portfolio, provided however, if required under the laws of the jurisdiction in which the Eligible Securities Depository is located or pursuant to the rules of an Eligible Securities Depository, the Custodian may receive delivery of such securities and make payment therefor in accordance with such applicable laws or rules of the Eligible Securities Depository, but in all events subject to the standard of care set forth in Section 5.01(a) hereof. The Custodian or Subcustodian shall transfer Foreign Assets sold for the account of a Portfolio only upon (y) receipt of advice from the Eligible Securities Depository that payment for such Foreign Assets has been transferred to the Account of the Custodian or Subcustodian, and (z) the making of an entry on the records of the Custodian to reflect such transfer and payment for the account of such Portfolio, provided however, if required under the laws of the jurisdiction in which the Eligible Securities Depository is located or pursuant to the rules of an Eligible Securities Depository, the Custodian may make payment therefor and receive delivery of such securities in accordance with such applicable laws or rules of the Eligible Securities Depository, but in all events subject to the standard of care set forth in Section 5.01(a) hereof. Copies of all advices from the Eligible Securities Depository (or other suitable documentation commensurate with industry and regulatory standards) relating to transfers of Foreign Assets for the account of a Portfolio shall identify such Portfolio or the Custodian or Subcustodian who is holding the assets of such Portfolio and shall be maintained for such Portfolio by the Custodian. The Custodian shall deliver to each applicable Fund no later than the next succeeding Business Day, or at such other time or times as such Fund and the Custodian may agree in writing, daily transaction reports which shall include each day's transactions in the Eligible Securities Depository for the account of each applicable Portfolio. Such transaction reports shall be delivered to each applicable Fund or any agent designated by such Fund pursuant to Proper Instructions, by electronic device or system (including without limitation, computers) or in such other manner as such Fund and the Custodian may agree in writing.
(6) The Custodian shall, if requested by a Fund or its designee pursuant to Proper Instructions, provide such Fund with all reports obtained by the Custodian or any Subcustodian with respect to an Eligible Securities Depository's accounting system, internal accounting controls, and procedures for safeguarding Foreign Assets deposited in the Eligible Securities Depository.
(7) The Custodian (A) shall terminate the use of any Eligible Securities Depository on behalf of any Portfolio as soon as reasonably practicable and shall take all actions reasonably practicable to safeguard the Foreign Assets of any Portfolio maintained with such Eligible Securities Depository: (1) upon receipt of Special Instructions; or (2), in the absence of the receipt of Special Instructions, if the custody arrangement with the Eligible Securities Depository at any time ceases to satisfy the requirements of Rule 17f-7(b)(1), and (B) shall provide the Funds or their respective designees, on behalf of the Portfolios, with written notification of any termination of the Custodian's use of an Eligible Securities Depository at least 90 Business Days prior to the effective date of the proposed termination, unless the Funds in their discretion permit a shorter notification period.
(8) Each Eligible Securities Depository through which the Custodian maintains Foreign Assets of the applicable Portfolio(s) and the countries where they may hold Foreign Assets of the applicable Portfolio(s) shall be listed on Appendix "B" attached hereto, as the same may be amended from time to time in accordance with the provisions of Section 9.06(c) hereof.
ARTICLE II.23. Other Transfers.
(a) Upon receipt of Proper Instructions, the Custodian shall transfer to or receive from a third party that has been appointed to serve as an additional custodian of one or more Portfolios (an "Additional Custodian") securities, cash and other assets of such Portfolio(s) in accordance with such Proper Instructions. Each Additional Custodian shall be identified as such on Appendix "B", as the same may be amended from time to time in accordance with the provisions of Section 9.06(c) hereof.
(b) Upon receipt of Special Instructions, the Custodian shall make such other dispositions of securities, funds or other property of a Portfolio in a manner or for purposes other than as expressly set forth in this Agreement, provided that the Special Instructions relating to such disposition shall include a statement of the purpose for which the delivery is to be made, the amount of funds and/or securities to be delivered, and the name of the person or persons to whom delivery is to be made, and shall otherwise comply with the provisions of Sections 3.01 and 3.03 hereof.
ARTICLE II.24. Establishment of Segregated Account. Upon receipt of Proper Instructions, the Custodian shall establish and maintain on its books a segregated account or accounts for and on behalf of a Portfolio, into which account or accounts may be transferred cash and/or securities or other assets of such Portfolio, including securities maintained by the Custodian in a Securities System pursuant to Section 2.22(a) hereof or an Eligible Securities Depository pursuant to Section 2.22(b) hereof, said account or accounts to be maintained: (a) for the purposes set forth in Sections 2.09, 2.10 and 2.11 hereof; (b) for the purposes of compliance by the Portfolio with the procedures required by Investment Company Act Release No. 10666, or any subsequent release or releases of the SEC or SEC rules or regulations relating to the maintenance of segregated accounts by registered investment companies; or (c) for such other purposes as set forth, from time to time, in Special Instructions.
ARTICLE II.25. Custodian's Books and Records. The Custodian shall provide any assistance reasonably requested by a Fund in the preparation of reports to such Fund's shareholders and others, audits of accounts, and other ministerial matters of like nature. The Custodian shall maintain complete and accurate records with respect to securities and other assets held for the accounts of each Portfolio as required by the rules and regulations of the SEC applicable to investment companies registered under the 1940 Act, including: (a) journals or other records of original entry containing a detailed and itemized daily record of all receipts and deliveries of securities (including certificate and transaction identification numbers, if any), and all receipts and disbursements of cash; (b) ledgers or other records reflecting (i) securities in transfer, (ii) securities in physical possession, (iii) securities borrowed, loaned or collateralizing obligations of each Portfolio, (iv) monies borrowed and monies loaned (together with a record of the collateral therefor and substitutions of such collateral), (v) dividends and interest received, (vi) the amount of tax withheld by any person in respect of any collection made by the Custodian or any Subcustodian, and (vii) the amount of reclaims or refunds for foreign taxes paid; and (c) cancelled checks and bank records related thereto. The Custodian shall keep such other books and records of each Fund as such Fund shall reasonably request. All such books and records maintained by the Custodian shall be maintained in a form acceptable to the applicable Fund and in compliance with the rules and regulations of the SEC, including, but not limited to, books and records required to be maintained by Section 31(a) of the 1940 Act and the rules and regulations from time to time adopted thereunder. All books and records maintained by the Custodian pursuant to this Agreement shall at all times be the property of each applicable Fund and shall be available during normal business hours for inspection and use by such Fund and its agents, including, without limitation, its independent certified public accountants. Notwithstanding the preceding sentence, no Fund shall take any actions or cause the Custodian to take any actions which would cause, either directly or indirectly, the Custodian to violate any applicable laws, regulations or orders.
ARTICLE II.26. Opinion of Fund's Independent Certified Public Accountants. The Custodian shall take all reasonable action as a Fund may request to obtain from year to year favorable opinions from such Fund's independent certified public accountants with respect to the Custodian's activities hereunder in connection with the preparation of the Fund's Form N-1A and the Fund's Form N-CSR or other periodic reports to the SEC and with respect to any other requirements of the SEC or the 1940 Act and the rules and regulations thereunder.
ARTICLE II.27. Reports by Independent Certified Public Accountants. At the request of a Fund, the Custodian shall deliver to such Fund a written report prepared by the Custodian's independent certified public accountants with respect to the services provided by the Custodian under this Agreement, including, without limitation, the Custodian's accounting system, internal accounting control and procedures for safeguarding cash, securities and other assets, including cash, securities and other assets deposited and/or maintained in a Securities System, Eligible Securities Depository or with a Subcustodian. Such report shall be of sufficient scope and in sufficient detail as may reasonably be required by any Fund and as may reasonably be obtained by the Custodian.
ARTICLE II.28. Overdraft Facility. In the event that the Custodian is directed by Proper Instructions to make any payment or transfer of funds on behalf of a Portfolio for which there would be, at the close of business on the date of such payment or transfer, insufficient funds held by the Custodian on behalf of such Portfolio, the Custodian may, in its discretion, provide an overdraft (an "Overdraft") to the applicable Fund on behalf of such Portfolio, in an amount sufficient to allow the completion of such payment. In the event of an overdraft to a Transfer Agent Account, upon request by the Custodian, the Funds shall promptly identify which Funds or which of their Portfolios are responsible for such overdraft in such Transfer Agent Accounts. Any Overdraft provided hereunder: (a) shall be payable on the next Business Day, unless otherwise agreed by the applicable Fund and the Custodian; and (b) shall accrue interest from the date of the Overdraft to the date of payment in full by the applicable Fund on behalf of the applicable Portfolio at a rate agreed upon in writing, from time to time, by the Custodian and the applicable Fund. The Custodian and each Fund acknowledge that the purpose of such Overdrafts is to temporarily finance the purchase or sale of securities for prompt delivery in accordance with the terms hereof, or to meet emergency expenses not reasonably foreseeable by such Fund. The Custodian shall promptly notify each applicable Fund in writing (an "Overdraft Notice") of any Overdraft by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing. At the request of the Custodian, each applicable Fund, on behalf of one or more of its Portfolios, shall pledge, assign and grant to the Custodian a security interest in certain specified securities of the applicable Portfolio, as security for Overdrafts provided to such Portfolio, under the terms and conditions set forth in Appendix "C" attached hereto. Notwithstanding anything herein to the contrary, except to the extent expressly provided for in Appendix "C", the Custodian hereby waives and agrees that it shall not claim, assert or enforce a lien, encumbrance or security interest in any of the assets of any Portfolio.
ARTICLE II.29. Insurance Requirements.
(a) The Custodian shall, at its own expense, procure and maintain: (i) workers compensation insurance for its own employees in an amount not less than the statutory limits under all applicable statutes, rules and regulations in each of the states in which Custodian operates and under all applicable federal statutes, rules and regulations, (ii) employers liability insurance in an amount not less than $1,000,000 per occurrence, (iii) comprehensive general liability insurance in an amount not less than $1,000,000 per occurrence, (iv) comprehensive automobile liability (including automobile non-ownership liability) insurance in a combined single limit amount of not less than $1,000,000 per occurrence, (v) umbrella or excess liability insurance providing coverages in excess of the coverages listed in (ii), (iii) and (iv) above in an amount not less than $5,000,000 per occurrence, (vi) errors and omission liability insurance in an amount not less than $10,000,000 per claim, (vii) a fidelity bond in an amount not less than $10,000,000 per loss, and (viii) electronic and computer crime insurance in an amount not less than $10,000,000 per loss, provided however that the term "Custodian" in this Section 2.29 shall not include a Subcustodian or Eligible Securities Depository. Nothing in this Section 2.29 shall be deemed to limit the Custodian's liability to the types or coverage amounts specified above or to limit any coverage under any of Custodian's insurance policies.
(b) Concurrent with the execution of this Agreement and, upon the request of a Fund, on each anniversary thereafter, Custodian shall provide a "certificate of insurance" to each Fund that evidences that policies, bonds or similar agreements providing the types and amounts of coverage specified in paragraph (a) of this section 2.29 have been entered into and are in full force and effect.
ARTICLE II.30. Provision of Information. At the request of a Fund, the Custodian shall promptly provide to such Fund all information relating to such Fund's, or any of its Portfolio's, cash, securities, and other assets which may be reasonably requested by such Fund in order to determine the amount to be paid to the Custodian under Article VI hereof. Such information shall be delivered to such Fund at such time(s) and in such form(s) specified by such Fund.
ARTICLE II.31. Compliance and Internal Control Reports. The Custodian shall promptly notify each Fund of each determination of significant deficiencies, material weaknesses or inadequacies in the internal accounting controls of the Custodian. In addition, in order to assist the Fund in complying with its obligations under applicable laws and regulations, the Custodian shall promptly provide to each Fund such periodic reports and reasonable documentation relating to the services provided by the Custodian to the Fund as the Fund may request from time to time, including, but not limited to, certifications regarding compliance with procedures for safekeeping, recordkeeping and reporting of the Fund's assets and transactions pursuant to this Agreement.
ARTICLE II.32. Local Regulatory Matters. The Custodian shall assist each Fund in complying with regulations and market practices of jurisdictions other than the United States of America applicable to the Fund's Foreign Assets as the Fund may reasonably request from time to time. Such assistance may include, but not be limited to, soliciting information and guidance from depositories, exchanges and regulators; obtaining legal opinions at the expense of the relevant Fund or Funds but only after such Fund or Funds have been notified and agree in writing to the amount of such expenses; acting as a Fund's representative (if required by local law) in making filings; and providing such other assistance with respect to its Foreign Assets as the Fund may reasonably request. Based on what the Custodian considers to be reasonably reliable sources of information, including its Foreign Subcustodians, Custodian shall inform each Fund as to the Custodian's understanding of the Fund's rights, duties and obligations under regulations and market practices of jurisdictions other than the United States of America in connection with actions taken by the Fund or the Custodian, including, but not limited to, corporate actions involving the Fund's securities.
ARTICLE III
PROPER INSTRUCTIONS, SPECIAL INSTRUCTIONS
AND RELATED MATTERS
ARTICLE III.1. Proper Instructions and Special Instructions.
(a) Proper Instructions. As used herein, the term "Proper Instructions" shall mean: (i) a tested telex, a written (including, without limitation, facsimile transmission) request, direction, instruction or certification signed or initialed by or on behalf of the applicable Fund by one or more Authorized Persons (as hereinafter defined); (ii) a telephonic or other oral communication by one or more Authorized Persons; or (iii) a communication effected directly between an electro-mechanical or electronic device or system (including, without limitation, computers) by or on behalf of the applicable Fund by one or more Authorized Persons; provided, however, that communications of the types described in clauses (ii) and (iii) above purporting to be given by an Authorized Person shall be considered Proper Instructions only if the Custodian reasonably believes such communications to have been given by an Authorized Person with respect to the transaction involved. Proper Instructions in the form of oral communications shall be confirmed by the applicable Fund by tested telex or in writing in the manner set forth in clause (i) above, but the lack of such confirmation shall in no way affect any action taken by the Custodian in reliance upon such oral instructions prior to the Custodian's receipt of such confirmation. Proper Instructions may relate to specific transactions or to types or classes of transactions, and may be in the form of standing instructions.
(b) Special Instructions. As used herein, the term "Special Instructions" shall mean Proper Instructions countersigned or confirmed in writing by the Treasurer or any Deputy or Assistant Treasurer of the applicable Fund or any other person designated by the Treasurer of such Fund in writing, which countersignature or confirmation shall be (i) included on the same instrument containing the Proper Instructions or on a separate instrument relating thereto, and (ii) delivered by hand, by facsimile transmission, or in such other manner as the applicable Fund and the Custodian agree in writing.
(c) Address for Proper Instructions and Special Instructions. Proper Instructions and Special Instructions shall be delivered to the Custodian at the address and/or telephone, telecopy or telex number agreed upon from time to time by the Custodian and the applicable Fund.
ARTICLE III.2. Authorized Persons. Concurrently with the execution of this Agreement and from time to time thereafter, as appropriate, each Fund shall deliver to the Custodian, duly certified as appropriate by a Treasurer or any Deputy or Assistant Treasurer of such Fund, a certificate setting forth: (a) the names, titles, signatures and scope of authority of all persons authorized to give Proper Instructions or any other notice, request, direction, instruction, certificate or instrument on behalf of such Fund (collectively, the "Authorized Persons" and individually, an "Authorized Person"); and (b) the names, titles and signatures of those persons authorized to issue Special Instructions. Such certificate may be accepted and relied upon by the Custodian as conclusive evidence of the facts set forth therein and shall be considered to be in full force and effect until delivery to the Custodian of a similar certificate to the contrary. Upon delivery of a certificate which deletes the name(s) of a person previously authorized by a Fund to give Proper Instructions or to issue Special Instructions, such persons shall no longer be considered an Authorized Person or authorized to issue Special Instructions for that Fund.
ARTICLE III.3. Persons Having Access to Assets of the Portfolios. Notwithstanding anything to the contrary contained in this Agreement, no Authorized Person, Trustee, officer, employee or agent of any Fund shall have physical access to the assets of any Portfolio of that Fund held by the Custodian nor shall the Custodian deliver any assets of a Portfolio for delivery to an account of such person; provided, however, that nothing in this Section 3.03 shall prohibit (a) any Authorized Person from giving Proper Instructions, or any person authorized to issue Special Instructions from issuing Special Instructions, so long as such action does not result in delivery of or access to assets of any Portfolio prohibited by this Section 3.03; or (b) each Fund's independent certified public accountants from examining or reviewing the assets of the Portfolios of the Fund held by the Custodian. Each Fund shall deliver to the Custodian a written certificate identifying such Authorized Persons, Trustees, officers, employees and agents of such Fund.
ARTICLE III.4. Actions of Custodian Based on Proper Instructions and Special Instructions. So long as and to the extent that the Custodian acts in accordance with (a) Proper Instructions or Special Instructions, as the case may be, and (b) the terms of this Agreement, the Custodian shall not be responsible for the title, validity or genuineness of any property, or evidence of title thereof, received by it or delivered by it pursuant to this Agreement.
ARTICLE IV
SUBCUSTODIANS
The Custodian may, from time to time, in accordance with the relevant provisions of this Article IV, appoint one or more Domestic Subcustodians, Foreign Subcustodians, Interim Subcustodians and Special Subcustodians to act on behalf of a Portfolio. (For purposes of this Agreement, all duly appointed Domestic Subcustodians, Foreign Subcustodians, Interim Subcustodians, and Special Subcustodians are hereinafter referred to collectively, as "Subcustodians.")
ARTICLE IV.1. Domestic Subcustodians. The Custodian may, at any time and from time to time, appoint any bank as defined in Section 2(a)(5) of the 1940 Act meeting the requirements of a custodian under Section 17(f) of the 1940 Act and the rules and regulations thereunder, to act on behalf of one or more Portfolios as a subcustodian for purposes of holding cash, securities and other assets of such Portfolios and performing other functions of the Custodian within the United States (a "Domestic Subcustodian"); provided that, the Custodian shall notify each applicable Fund in writing of the identity and qualifications of any proposed Domestic Subcustodian at least thirty (30) days prior to appointment of such Domestic Subcustodian, and such Fund may, in its sole discretion, by written notice to the Custodian executed by an Authorized Person disapprove of the appointment of such Domestic Subcustodian. If, following notice by the Custodian to each applicable Fund regarding appointment of a Domestic Subcustodian and the expiration of thirty (30) days after the date of such notice, such Fund shall have failed to notify the Custodian of its disapproval thereof, the Custodian may, in its discretion, appoint such proposed Domestic Subcustodian as its subcustodian.
ARTICLE IV.2. Foreign Subcustodians and Interim Subcustodians.
(a) Foreign Subcustodians. Subject to and in accordance with the following provisions, the Board of Trustees or other governing body or entity of each Fund, on behalf of its applicable Portfolio(s), hereby delegates its responsibilities as set forth in Rule 17f-5 under the 1940 Act, to the Custodian and appoints the Custodian as its "Foreign Custody Manager" (as such term is defined in Rule 17f-5), and the Custodian hereby accepts such delegation and appointment and agrees to (1) act on behalf of the applicable Fund(s) and Portfolio(s) in such capacity, (2) perform the responsibilities set forth in Rule 17f-5, and (3) exercise the standard of care set forth in Section 5.01(a) hereof in performing its responsibilities hereunder and under Rule 17f-5, except to the extent Rule 17f-5 provides a higher standard, in which case that standard shall apply.
(i) Subject to and in accordance with the provisions of Rule 17f-5, the Custodian may, at any time and from time to time, appoint: (A) any "Qualified Foreign Bank" (as such term is defined in Rule 17f-5), (B) any majority-owned direct or indirect subsidiary of a "U.S. Bank" (as such term is defined in Rule 17f-5) or U.S. bank holding company meeting the requirements of an "Eligible Foreign Custodian," (as such term is defined in Rule 17f-5), (C) any other entity which by order of the SEC, or by no-action letter of the staff of the SEC is exempt from meeting the requirements of an "Eligible Foreign Custodian" as set forth in Rule 17f-5, to act on behalf of the applicable Fund(s) and Portfolio(s) as a subcustodian for purposes of holding "Foreign Assets" (as defined in Rule 17f-5), or (D) any "Bank" (as such term is defined in the 1940 Act) that qualifies as and may serve as a custodian under Section 17(f) of the 1940 Act (each a "Foreign Subcustodian").
(ii) Without limiting the foregoing, the Custodian shall be responsible for (A) determining that each applicable Fund's or Portfolio's Foreign Assets, if maintained with each Foreign Subcustodian, will be subject to the standard of care set forth in Section 5.01(a) hereof after considering all factors relevant to the safekeeping of such assets including, without limitation, those factors set forth in the provisions of paragraph (c)(1) of Rule 17f-5, (B) ensuring that each foreign custody arrangement with a Foreign Subcustodian is governed by a written contract with the Custodian meeting the requirements of paragraph (c)(2) of Rule 17f-5 which will provide reasonable care for each applicable Fund's or Portfolio's Foreign Assets based on the standard of care set forth in Section 5.01(a) hereof , (C) determining that each contract with a Foreign Custodian shall include the provisions specified in paragraph (c)(2)(i)(A) through (F) of Rule 17f-5 or alternatively, in lieu of any or all of such (c)(2)(i)(A) through (F) provisions, such other provisions as the Custodian reasonably determines will provide, in their entirety, the same or greater level of care and protection for the Foreign Assets of each Fund or Portfolio as such specified provisions in their entirety, (D) establishing a system to monitor the appropriateness of maintaining each applicable Fund's or Portfolio's Foreign Assets with each Foreign Subcustodian pursuant to paragraph (c)(1) of Rule 17f-5 and to monitor the performance of each Foreign Subcustodian under the subcustodian agreement between the Custodian and the Foreign Subcustodian, (E) monitoring the appropriateness of maintaining each applicable Fund's and Portfolio's Foreign Assets with each Foreign Subcustodian pursuant to paragraph (c)(1) of Rule 17f-5 and the performance of each Foreign Subcustodian under the subcustodian agreement between the Custodian and the Foreign Subcustodian, and (F) promptly notifying each applicable Fund or Portfolio whenever an arrangement described in the preceding clause (E) no longer satisfies the requirements of Rule 17f-5.
(iii) The Custodian shall prepare written reports to the Board of Trustees or other governing body or entity of each Fund, on behalf of its applicable Portfolio(s), on an annual basis showing (A) the identity and qualifications of each Foreign Subcustodian authorized by the Custodian to hold Foreign Assets of the Fund(s) and Portfolio(s), (B) the placement of the Fund's and Portfolio's Foreign Assets with each such Foreign Subcustodian, (C) the country or countries in which each Foreign Subcustodian is authorized to hold Foreign Assets of the applicable Fund(s) and Portfolio(s) and (D) any material changes to the Custodian's foreign custody arrangements for the applicable Fund(s) and Portfolio(s) since the submission of the Custodian's last written report to the applicable Fund's Board of Trustees or other governing body or entity pursuant to this Section 4.02(a)(iii), including without limitation:
(1) changes in the Foreign Subcustodians included in the Custodian's global custody network or arrangements;
(1) any change, including any amendment or modification to the subcustodian agreements between the Custodian and each of the Foreign Subcustodians, that could materially affect the ability of a Foreign Subcustodian to perform its duties in respect of the applicable Funds, or Portfolios' Foreign Assets.
In addition to the annual reports required by clause (a) (iii) above, the Custodian shall submit promptly (but in no event later than 5 Business Days after the event giving rise to a reporting requirement) interim reports to the Board of Trustees or other governing body or entity of each applicable Fund, on behalf of its applicable Portfolio(s), of any changes that have or could materially affect the ability of a Foreign Subcustodian to perform its duties in respect of the Funds' and Portfolios' assets and any actions that the Custodian has taken or proposes to take in connection with such changes.
(iv) Each duly appointed Foreign Subcustodian and the countries where and clearing agencies through which they may hold Foreign Assets of the applicable Fund(s) and Portfolio(s) shall be listed on Appendix "B" attached hereto and dated as of the date of this Agreement, as the same may be amended from time to time, in accordance with the provisions of Section 9.06(c) hereof.
(v) Each Fund shall be responsible for informing the Custodian sufficiently in advance of a proposed investment by itself or by one of its Portfolios which is to be held in a country in which no Foreign Subcustodian is authorized to act, in order that there shall be sufficient time for the Custodian to effect the appropriate arrangements with a proposed foreign subcustodian.
(vi) The Custodian shall provide the Funds or their respective designees, on behalf of their Portfolios, with written notification of any (A) proposed change in the Foreign Subcustodians included in the Custodian's global custody network or arrangements at least 30 Business Days prior to the effective date of the proposed change, if practicable or (B) termination, in whole or with respect to one or more specified jurisdictions, of its acceptance of the Board of Trustees or other governing body or entity of a Fund, on behalf of its applicable Portfolio(s), delegation and appointment as the Fund's "Foreign Custody Manager" at least 90 Business Days prior to the effective date of the proposed change or termination, unless, in either case, the Funds in their discretion permit a shorter notification period.
(b) Interim Subcustodians. Notwithstanding the foregoing, in the event that a Portfolio shall invest in a security or other asset to be held in a country in which no Foreign Subcustodian is authorized to act, the Custodian shall promptly notify the applicable Fund in writing by facsimile transmission or in such other manner as such Fund and Custodian shall agree in writing of the unavailability of an approved Foreign Subcustodian in such country; and the Custodian shall, upon receipt of Special Instructions, appoint any Person designated by the applicable Fund in such Special Instructions to hold such security or other asset. The subcustodian agreement between the Custodian and any Interim Custodian (as hereinafter defined) shall comply with the provisions of the 1940 Act and the rules and regulations thereunder (including Rule 17f-5, if applicable) and the terms and provisions of this Agreement. The Custodian shall comply with Section 4.02 (a)(i), (ii), (iii), and (vi) hereof with respect to the appointment of an Interim Custodian. (Any Person appointed as a subcustodian pursuant to this Section 4.02(b) is hereinafter referred to as an "Interim Subcustodian.")
ARTICLE IV.3. Special Subcustodians. Upon receipt of Special Instructions, the Custodian shall, on behalf of one or more Portfolios, appoint one or more banks, trust companies or other entities designated in such Special Instructions to act as a subcustodian for purposes of: (i) effecting third-party repurchase transactions with banks, brokers, dealers or other entities through the use of a common custodian or subcustodian; (ii) establishing a joint trading account for the applicable Portfolio(s) and other registered open-end management investment companies for which Fidelity Management & Research Company serves as investment adviser, through which such Portfolios and such other investment companies shall collectively participate in certain repurchase transactions; (iii) providing depository and clearing agency services with respect to certain variable rate demand note securities; and (iv) effecting any other transactions designated by each applicable Fund in Special Instructions. (Each such designated subcustodian is hereinafter referred to as a "Special Subcustodian.") Each such duly appointed Special Subcustodian shall be listed on Appendix "B" attached hereto, as it may be amended from time to time in accordance with the provisions of Section 9.05(c) hereof. In connection with the appointment of any Special Subcustodian, the Custodian shall enter into a subcustodian agreement with the Special Subcustodian in form and substance approved by each applicable Fund, provided that such agreement shall in all events comply with the provisions of the 1940 Act and the rules and regulations thereunder (including Rule17f-5, if applicable) and the terms and provisions of this Agreement. If any Special Custodian is a Foreign Custodian, the Custodian shall comply with Section 4.02 of this Agreement. The Custodian shall not amend any subcustodian agreement entered into with a Special Subcustodian, or agree to change or permit any changes thereunder, or waive any rights under such agreement, except upon prior approval pursuant to Special Instructions.
ARTICLE IV.4. Termination of a Subcustodian. The Custodian shall (i) cause each Domestic Subcustodian and Foreign Subcustodian to, and (ii) use its best efforts to cause each Interim Subcustodian and Special Subcustodian to, perform all of its obligations in accordance with the terms and conditions of the subcustodian agreement between the Custodian and such Subcustodian. In the event that the Custodian is unable to cause such Subcustodian to fully perform its obligations thereunder, the Custodian shall forthwith, upon the receipt of Special Instructions, terminate such Subcustodian with respect to each applicable Fund and, if necessary or desirable, appoint a replacement Subcustodian in accordance with the provisions of Section 4.01 or Section 4.02, as the case may be. In addition to the foregoing, the Custodian (A) may, at any time in its discretion, upon written notification to each applicable Fund, terminate any Domestic Subcustodian, Foreign Subcustodian or Interim Subcustodian, and (B) shall, upon receipt of Special Instructions, terminate any Subcustodian with respect to each applicable Fund, in accordance with the termination provisions under the applicable subcustodian agreement.
ARTICLE IV.5. Certification Regarding Foreign Subcustodians. Each report presented to the Board of Trustees of each Fund, on behalf of itself or its applicable Portfolio(s), by the Custodian pursuant to Section 4.02(a)(iii) above shall be accompanied by a certificate representing that (A) the Custodian has established a system to monitor the appropriateness of maintaining the Fund's or Portfolio's Foreign Assets with each Foreign Subcustodian pursuant to paragraph (c)(1) of Rule 17f-5 and to monitor the performance of each Foreign Subcustodian under the subcustodian agreement between the Custodian and the Foreign Subcustodian, (B) the Custodian has monitored all Foreign Subcustodians and each Foreign Subcustodian continues to be an "Eligible Foreign Custodian," (as such term is defined in Rule 17f-5), (C) each Foreign Subcustodian continues to provide the standard of care set forth in Section 5.01(a) hereof, after considering all relevant factors, including without limitation, those factors set forth in paragraph (c)(1) of Rule 17f-5, (D) all foreign custody agreements between the Custodian and the Foreign Subcustodians continue to meet the requirements of paragraph (c)(2) of Rule 17f-5, (E) since the submission of the last report pursuant to Section 4.02(a)(iii) above, there have been no material adverse changes to the Custodian's foreign custody network or arrangements other than those reported to the Board of Trustees or other governing body or entity of the Fund, on behalf of itself or its applicable Portfolios, in the accompanying report, and (F) the information included in the report is true, accurate and complete in all material respects.
ARTICLE V
STANDARD OF CARE; INDEMNIFICATION
ARTICLE V.1. Standard of Care.
(a) General Standard of Care. The Custodian shall exercise reasonable care, prudence and diligence in carrying out all of its duties and obligations under this Agreement (or such higher standard, if any, under Rule 17f-4), and shall be liable to each Fund for all losses, damages and expenses suffered or incurred by such Fund or its Portfolio(s) resulting from the failure of the Custodian to exercise such reasonable care and diligence (or to comport with such higher standard of care under Rule 17f-4, if any).
(b) Actions Prohibited by Applicable Law, Etc. In no event shall the Custodian incur liability hereunder if the Custodian or any Subcustodian, Securities System or Eligible Securities Depository, or any subcustodian, securities depository or securities system utilized by any such Subcustodian, or any nominee of the Custodian or any Subcustodian (individually, a "Person") is prevented, forbidden or delayed from performing, or omits to perform, any act or thing which this Agreement provides shall be performed or omitted to be performed, by reason of: (i) any provision of any present or future law or regulation or order of the United States of America, or any state thereof, or of any foreign country, or political subdivision thereof or of any court of competent jurisdiction; or (ii) any act of God or war or other similar circumstance beyond the control of the Custodian, unless, in each case, such delay or nonperformance is caused by (A) the negligence, misfeasance or misconduct of the applicable Person, or (B) a malfunction or failure of equipment operated or utilized by the applicable Person other than a malfunction or failure beyond such Person's control and which could not reasonably be anticipated and/or prevented by such Person.
(c) Mitigation by Custodian. Upon the occurrence of any event which causes or may cause any loss, damage or expense to any Fund or Portfolio, (i) the Custodian shall promptly notify the applicable Fund or Portfolio of the occurrence of such event, (ii) the Custodian shall cause any applicable Domestic Subcustodian or Foreign Subcustodian to, and (iii) the Custodian shall use its best efforts to cause any applicable Interim Subcustodian, Special Subcustodian or Eligible Securities Depository to, use all commercially reasonable efforts and take all reasonable steps under the circumstances to mitigate the effects of such event and to avoid continuing harm to the Funds and the Portfolios.
(d) Advice of Counsel. The Custodian shall be entitled to receive and act upon advice of counsel on all matters. The Custodian shall be without liability for any action reasonably taken or omitted in good faith pursuant to the advice of (i) counsel for the applicable Fund or Funds, or (ii) at the expense of the Custodian, such other counsel as the applicable Fund(s) and the Custodian may agree upon; provided however, with respect to the performance of any action or omission of any action upon such advice, the Custodian shall be required to conform to the standard of care set forth in Section 5.01(a).
(e) Expenses of the Funds. In addition to the liability of the Custodian under this Article V, the Custodian shall be liable to each applicable Fund for all reasonable costs and expenses incurred by such Fund in connection with any claim by such Fund against the Custodian arising from the obligations of the Custodian hereunder, including, without limitation, all reasonable attorneys' fees and expenses incurred by such Fund in asserting any such claim, and all expenses incurred by such Fund in connection with any investigations, lawsuits or proceedings relating to such claim; provided that, such Fund has recovered from the Custodian for such claim.
(f) Liability for Past Records. The Custodian shall have no liability in respect of any loss, damage or expense suffered by a Fund, insofar as such loss, damage or expense arises from the performance of the Custodian's duties hereunder by reason of the Custodian's reliance upon records that were maintained for such Fund by entities other than the Custodian prior to the Custodian's appointment as custodian for such Fund.
ARTICLE V.2. Liability of Custodian for Actions of Other Persons.
(a) Domestic Subcustodians and Foreign Subcustodians. The Custodian shall be liable for the actions or omissions of any Domestic Subcustodian or any Foreign Subcustodian to the same extent as if such action or omission was performed by the Custodian itself. In the event of any loss, damage or expense suffered or incurred by a Fund caused by or resulting from the actions or omissions of any Domestic Subcustodian or Foreign Subcustodian for which the Custodian would otherwise be liable, the Custodian shall promptly reimburse such Fund in the amount of any such loss, damage or expense.
(b) Interim Subcustodians. Notwithstanding the provisions of Section 5.01 to the contrary, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the actions or omissions of an Interim Subcustodian unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided however, in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against such Interim Subcustodian to protect the interests of the Funds and the Portfolios.
(c) Special Subcustodians and Additional Custodians. Notwithstanding the provisions of Section 5.01 to the contrary and except as otherwise provided in any subcustodian agreement to which the Custodian, a Fund and any Special Subcustodian or Additional Custodian are parties, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the actions or omissions of a Special Subcustodian or Additional Subcustodian, unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided however, that in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against any Special Subcustodian or Additional Custodian to protect the interests of the Funds and the Portfolios.
(d) Securities Systems and Eligible Securities Depositories. Notwithstanding the provisions of Section 5.01 to the contrary, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the use by the Custodian of a Securities System or Eligible Securities Depository, unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided however, that in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against the Securities System or Eligible Securities Depository to protect the interests of the Funds and the Portfolios.
(e) Reimbursement of Expenses. Each Fund agrees to reimburse the Custodian for all reasonable out-of-pocket expenses incurred by the Custodian on behalf of such Fund in connection with the fulfillment of its obligations under this Section 5.02; provided however, that such reimbursement shall not apply to expenses occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian.
ARTICLE V.3. Indemnification.
(a) Indemnification Obligations. Subject to the limitations set forth in this Agreement, each Fund severally and not jointly agrees to indemnify and hold harmless the Custodian and its nominees from all loss, damage and expense (including reasonable attorneys' fees) suffered or incurred by the Custodian or its nominee caused by or arising from actions taken by the Custodian on behalf of such Fund in the performance of its duties and obligations under this Agreement; provided however, that such indemnity shall not apply to loss, damage and expense occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian or its nominee. In addition, each Fund agrees severally and not jointly to indemnify any Person against any liability incurred by reason of taxes assessed to such Person, or other loss, damage or expenses incurred by such Person, resulting from the fact that securities and other property of such Fund's Portfolios are registered in the name of such Person; provided however, that in no event shall such indemnification be applicable to income, franchise or similar taxes which may be imposed or assessed against any Person.
(b) Notice of Litigation, Right to Prosecute, Etc. No Fund shall be liable for indemnification under this Section 5.03 unless a Person shall have promptly notified such Fund in writing of the commencement of any litigation or proceeding brought against such Person in respect of which indemnity may be sought under this Section 5.03. With respect to claims in such litigation or proceedings for which indemnity by a Fund may be sought and subject to applicable law and the ruling of any court of competent jurisdiction, such Fund shall be entitled to participate in any such litigation or proceeding and, after written notice from such Fund to any Person, such Fund may assume the defense of such litigation or proceeding with counsel of its choice at its own expense in respect of that portion of the litigation for which such Fund may be subject to an indemnification obligation; provided however, a Person shall be entitled to participate in (but not control) at its own cost and expense, the defense of any such litigation or proceeding if such Fund has not acknowledged in writing its obligation to indemnify the Person with respect to such litigation or proceeding. If such Fund is not permitted to participate or control such litigation or proceeding under applicable law or by a ruling of a court of competent jurisdiction, such Person shall reasonably prosecute such litigation or proceeding. A Person shall not consent to the entry of any judgment or enter into any settlement in any such litigation or proceeding without providing each applicable Fund with adequate notice of any such settlement or judgment, and without each such Fund's prior written consent. All Persons shall submit written evidence to each applicable Fund with respect to any cost or expense for which they are seeking indemnification in such form and detail as such Fund may reasonably request.
ARTICLE V.4. Investment Limitations. If the Custodian has otherwise complied with the terms and conditions of this Agreement in performing its duties generally, and more particularly in connection with the purchase, sale or exchange of securities made by or for a Portfolio, the Custodian shall not be liable to the applicable Fund and such Fund agrees to indemnify the Custodian and its nominees, for any loss, damage or expense suffered or incurred by the Custodian and its nominees arising out of any violation of any investment or other limitation to which such Fund is subject.
ARTICLE V.5. Fund's Right to Proceed. Notwithstanding anything to the contrary contained herein, each Fund shall have, at its election upon reasonable notice to the Custodian, the right to enforce, to the extent permitted by any applicable agreement and applicable law, the Custodian's rights against any Subcustodian, Securities System, Eligible Securities Depository or other Person for loss, damage or expense caused such Fund by such Subcustodian, Securities System, Eligible Securities Depository or other Person, and shall be entitled to enforce the rights of the Custodian with respect to any claim against such Subcustodian, Securities System, Eligible Securities Depository or other Person, which the Custodian may have as a consequence of any such loss, damage or expense, if and to the extent that such Fund has not been made whole for any such loss or damage. If the Custodian makes such Fund whole for any such loss or damage, the Custodian shall retain the ability to enforce its rights directly against such Subcustodian, Securities System, Eligible Securities Depository or other Person. Upon such Fund's election to enforce any rights of the Custodian under this Section 5.05, such Fund shall reasonably prosecute all actions and proceedings directly relating to the rights of the Custodian in respect of the loss, damage or expense incurred by such Fund; provided that, so long as such Fund has acknowledged in writing its obligation to indemnify the Custodian under Section 5.03 hereof with respect to such claim, such Fund shall retain the right to settle, compromise and/or terminate any action or proceeding in respect of the loss, damage or expense incurred by such Fund without the Custodian's consent and provided further, that if such Fund has not made an acknowledgment of its obligation to indemnify, such Fund shall not settle, compromise or terminate any such action or proceeding without the written consent of the Custodian, which consent shall not be unreasonably withheld or delayed. The Custodian agrees to cooperate with each Fund and take all actions reasonably requested by such Fund in connection with such Fund's enforcement of any rights of the Custodian. Each Fund agrees to reimburse the Custodian for all reasonable out-of-pocket expenses incurred by the Custodian on behalf of such Fund in connection with the fulfillment of its obligations under this Section 5.05; provided, however, that such reimbursement shall not apply to expenses occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian.
ARTICLE VI
COMPENSATION
On behalf of each of its Portfolios, each Fund shall compensate the Custodian in an amount, and at such times, as may be agreed upon in writing, from time to time, by the Custodian and such Fund.
ARTICLE VII
TERMINATION
ARTICLE VII.1. Termination of Agreement as to One or More Funds. With respect to each Fund, this Agreement shall continue in full force and effect until the first to occur of: (a) termination by the Custodian by an instrument in writing delivered or mailed to such Fund, such termination to take effect not sooner than ninety (90) days after the date of such delivery; (b) termination by such Fund by an instrument in writing delivered or mailed to the Custodian, such termination to take effect not sooner than thirty (30) days after the date of such delivery; or (c) termination by such Fund by written notice delivered to the Custodian, based upon such Fund's determination that there is a reasonable basis to conclude that the Custodian is insolvent or that the financial condition of the Custodian is deteriorating in any material respect, in which case termination shall take effect upon the Custodian's receipt of such notice or at such later time as such Fund shall designate. In the event of termination pursuant to this Section 7.01 by any Fund (a "Terminating Fund"), each Terminating Fund shall make payment of all accrued fees and unreimbursed expenses with respect to such Terminating Fund within a reasonable time following termination and delivery of a statement to the Terminating Fund setting forth such fees and expenses. Each Terminating Fund shall identify in any notice of termination a successor custodian or custodians to which the cash, securities and other assets of its Portfolios shall, upon termination of this Agreement with respect to such Terminating Fund, be delivered. In the event that no written notice designating a successor custodian shall have been delivered to the Custodian on or before the date when termination of this Agreement as to a Terminating Fund shall become effective, the Custodian may deliver to a bank or trust company doing business in Boston, Massachusetts, of its own selection, having an aggregate capital, surplus, and undivided profits, as shown by its last published report, of not less than $25,000,000, all securities and other assets of such Terminating Fund's Portfolios held by the Custodian and all instruments held by the Custodian relative thereto and all other property of the Terminating Fund's Portfolios held by the Custodian under this Agreement. Thereafter, such bank or trust company shall be the successor of the Custodian with respect to such Terminating Fund under this Agreement. In the event that securities and other assets of such Terminating Fund's Portfolios remain in the possession of the Custodian after the date of termination hereof with respect to such Terminating Fund owing to a failure of the Terminating Fund to appoint a successor custodian, the Custodian shall be entitled to compensation for its services in accordance with the fee schedule most recently in effect, for such period as the Custodian retains possession of such securities and other assets, and the provisions of this Agreement relating to the duties and obligations of the Custodian and the Terminating Fund shall remain in full force and effect. In the event of the appointment of a successor custodian, it is agreed that the cash, securities and other property owned by a Terminating Fund and held by the Custodian, any Subcustodian or nominee shall be delivered to the successor custodian; and the Custodian agrees to cooperate with such Terminating Fund in the execution of documents and performance of other actions necessary or desirable in order to substitute the successor custodian for the Custodian under this Agreement.
ARTICLE VII.2. Termination as to One or More Portfolios. This Agreement may be terminated as to one or more of a Fund's Portfolios (but less than all of its Portfolios) by delivery of an amended Appendix "A" deleting such Portfolios pursuant to Section 9.06(b) hereof, in which case termination as to such deleted Portfolios shall take effect thirty (30) days after the date of such delivery. The execution and delivery of an amended Appendix "A" which deletes one or more Portfolios shall constitute a termination of this Agreement only with respect to such deleted Portfolio(s), shall be governed by the preceding provisions of Section 7.01 as to the identification of a successor custodian and the delivery of cash, securities and other assets of the Portfolio(s) so deleted, and shall not affect the obligations of the Custodian and any Fund hereunder with respect to the other Portfolios set forth in Appendix "A," as amended from time to time.
ARTICLE VIII
DEFINED TERMS
The following terms are defined in the following sections:
Term |
Section |
Account |
2.22 |
ADRs |
2.06 |
Additional Custodian |
2.23(a) |
Authorized Person(s) |
3.02 |
Bank Accounts |
2.21(a) |
Banking Institution |
2.12 |
Broker's Futures Margin Account |
2.10 |
Business Day |
Appendix "C" |
Central Fund |
2.02(c) |
Central Fund Control Procedures |
2.02(c) |
Central Fund Purchase Instructions |
2.03(v) |
Central Fund Sell Instructions |
2.05(iv) |
Central Fund Transfer Agent |
2.02(c) |
Distribution Account |
2.16 |
Domestic Subcustodian |
4.01 |
Eligible Securities Depository |
2.22(b) |
Foreign Exchange Account |
2.21(c) |
Foreign Subcustodian |
4.02(a) |
Fund of Funds Portfolio |
2.02(d) |
Fund of Funds Portfolio Control Procedures |
2.02(d)(ii) |
Fund of Funds Portfolio Purchase Instructions |
2.03(vi) |
Fund of Funds Portfolio Sell Instructions |
2.05(v) |
Fund |
Preamble |
Institutional Client |
2.03 |
Interest Bearing Deposits |
2.12 |
Interim Subcustodian |
4.02(b) |
Overdraft |
2.28 |
Overdraft Notice |
2.28 |
Person |
5.01(b) |
Portfolio |
Preamble |
Procedural Agreement |
2.10 |
Proper Instructions |
3.01(a) |
SEC |
2.22(a) |
Securities System |
2.22(a) |
Segregated Futures Margin Account |
2.10 |
Shares |
2.16 |
Special Instructions |
3.01(b) |
Special Subcustodian |
4.03 |
Subcustodian |
Article IV |
Terminating Fund |
7.01 |
Transfer Agent Account |
2.21(c) |
Underlying Fund |
2.02(d) |
Underlying Fund Transfer Agent |
2.02(d) |
1940 Act |
Preamble |
ARTICLE IX
MISCELLANEOUS
ARTICLE IX.1. Execution of Documents, Etc.
(a) Actions by each Fund. Upon request, each Fund shall execute and deliver to the Custodian such proxies, powers of attorney or other instruments as may be reasonable and necessary or desirable in connection with the performance by the Custodian or any Subcustodian of their respective obligations to such Fund under this Agreement or any applicable subcustodian agreement with respect to such Fund, provided that the exercise by the Custodian or any Subcustodian of any such rights shall in all events be in compliance with the terms of this Agreement.
(b) Actions by Custodian. Upon receipt of Proper Instructions, the Custodian shall execute and deliver to each applicable Fund or to such other parties as such Fund(s) may designate in such Proper Instructions, all such documents, instruments or agreements as may be reasonable and necessary or desirable in order to effectuate any of the transactions contemplated hereby.
ARTICLE IX.2. Representative Capacity; Nonrecourse Obligations. A COPY OF THE DECLARATION OF TRUST OR OTHER ORGANIZATIONAL DOCUMENT OF EACH FUND IS ON FILE WITH THE SECRETARY OF THE STATE OF THE FUND'S FORMATION, AND NOTICE IS HEREBY GIVEN THAT THIS AGREEMENT IS NOT EXECUTED ON BEHALF OF THE TRUSTEES OF ANY FUND AS INDIVIDUALS, AND THE OBLIGATIONS OF THIS AGREEMENT ARE NOT BINDING UPON ANY OF THE TRUSTEES, OFFICERS, SHAREHOLDERS OR PARTNERS OF ANY FUND INDIVIDUALLY, BUT ARE BINDING ONLY UPON THE ASSETS AND PROPERTY OF EACH FUND'S RESPECTIVE PORTFOLIOS. THE CUSTODIAN AGREES THAT NO SHAREHOLDER, TRUSTEE, OFFICER OR PARTNER OF ANY FUND MAY BE HELD PERSONALLY LIABLE OR RESPONSIBLE FOR ANY OBLIGATIONS OF ANY FUND ARISING OUT OF THIS AGREEMENT.
ARTICLE IX.3. Several Obligations of the Funds and the Portfolios. WITH RESPECT TO ANY OBLIGATIONS OF A FUND ON BEHALF OF ANY OF ITS PORTFOLIOS ARISING OUT OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE OBLIGATIONS ARISING UNDER SECTIONS 2.28, 5.03, 5.05 and ARTICLE VI HEREOF, THE CUSTODIAN SHALL LOOK FOR PAYMENT OR SATISFACTION OF ANY OBLIGATION SOLELY TO THE ASSETS AND PROPERTY OF THE PORTFOLIO TO WHICH SUCH OBLIGATION RELATES AS THOUGH EACH FUND HAD SEPARATELY CONTRACTED WITH THE CUSTODIAN BY SEPARATE WRITTEN INSTRUMENT WITH RESPECT TO EACH OF ITS PORTFOLIOS.
ARTICLE IX.4. Representations and Warranties.
(a) Representations and Warranties of Each Fund. Each Fund hereby severally and not jointly represents and warrants that each of the following shall be true, correct and complete with respect to each Fund at all times during the term of this Agreement: (i) the Fund is duly organized under the laws of its jurisdiction of organization and is registered as an open-end management investment company under the 1940 Act; and (ii) the execution, delivery and performance by the Fund of this Agreement are (w) within its power, (x) have been duly authorized by all necessary action, and (y) will not (A) contribute to or result in a breach of or default under or conflict with any existing law, order, regulation or ruling of any governmental or regulatory agency or authority, or (B) violate any provision of the Fund's corporate charter, Declaration of Trust or other organizational document, or bylaws, or any amendment thereof or any provision of its most recent Prospectus or Statement of Additional Information.
(b) Representations and Warranties of the Custodian. The Custodian hereby represents and warrants to each Fund that each of the following shall be true, correct and complete at all times during the term of this Agreement: (i) the Custodian is duly organized under the laws of its jurisdiction of organization and qualifies to act as a custodian to open-end management investment companies under the provisions of the 1940 Act; (ii) the execution, delivery and performance by the Custodian of this Agreement are (w) within its power, (x) have been duly authorized by all necessary action, and (y) will not (A) contribute to or result in a breach of or default under or conflict with any existing law, order, regulation or ruling of any governmental or regulatory agency or authority, or (B) violate any provision of the Custodian's corporate charter, or other organizational document, or bylaws, or any amendment thereof, (iii) the Custodian is a "Qualified Foreign Bank" (as defined in Rule 17f-5), a "US Bank" (as defined in Rule 17f-5) or an entity which by order of the SEC or by no-action letter of the staff of the SEC is exempt from meeting the requirements of an "Eligible Foreign Custodian" (as set forth in Rule 17f-5), (iv) the Custodian qualifies as a "Primary Custodian" (as defined in Rule 17f-7) and accepts the responsibilities thereof, (iv) the Custodian has entered into policies, bonds or similar arrangements which provide the types and minimum amounts of insurance and related coverage set forth in Section 2.29 hereof and such policies, bonds or similar arrangements are in full force and effect; and (v) the Custodian has in place a business continuity/disaster recovery plan and facilities which, in the event of a disaster affecting the Custodian, will be sufficient to enable the Custodian to resume and continue to perform its obligations under this Agreement without undue delay or disruption.
ARTICLE IX.5. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the Fund, on the one hand, and the Custodian, on the other, with respect to the subject matter hereof and accordingly, supersedes as of the effective date of this Agreement any custodian agreement heretofore in effect between each Fund and the Custodian.
ARTICLE IX.6. Waivers and Amendments. No provision of this Agreement may be waived, amended or terminated except by a statement in writing signed by the party against which enforcement of such waiver, amendment or termination is sought; provided, however: (a) Appendix "A" listing the Portfolios of each Fund for which the Custodian serves as custodian may be amended from time to time to add one or more Portfolios for one or more Funds, by each applicable Fund's execution and delivery to the Custodian of an amended Appendix "A", and the execution of such amended Appendix by the Custodian, in which case such amendment shall take effect immediately upon execution by the Custodian; (b) Appendix "A" may be amended from time to time to delete one or more Portfolios (but less than all of the Portfolios) of one or more of the Funds, by each applicable Fund's execution and delivery to the Custodian of an amended Appendix "A", in which case such amendment shall take effect thirty (30) days after such delivery, unless otherwise agreed by the Custodian and each applicable Fund in writing; (c) Appendix "B" listing Foreign Subcustodians, Eligible Securities Depositories, Special Subcustodians and Additional Custodians approved by any Fund may be amended from time to time to add or delete one or more Foreign Subcustodians, Eligible Securities Depositories, Special Subcustodians or Additional Custodians for a Fund or Funds by either party's execution and delivery to the other party hereto of an amended Appendix "B", in which case such amendment shall take effect immediately upon execution by the other party hereto; (d) Appendix "C" setting forth the procedures relating to the Custodian's security interest with respect to each Fund may be amended only by an instrument in writing executed by each applicable Fund and the Custodian; (e) Appendix "D" listing the Central Funds and Fund of Funds Portfolios for which the Custodian serves as custodian may be amended from time to time to add or delete one or more of the Central Funds or Fund of Funds Portfolios, by each applicable Fund's or Portfolio's execution and delivery to the Custodian of an amended Appendix "D", and the execution of such amended Appendix by the Custodian, in which case such amendment shall take effect immediately upon execution by the Custodian and (f) Appendix "E" listing the Transfer Agent Accounts and Foreign Exchange Accounts for which the Custodian serves as custodian may be amended from time to time to add or delete one or more Bank Accounts, by each applicable Fund's or Portfolio's execution and delivery to the Custodian of an amended Appendix "E" and the execution of such amended Appendix by the Custodian, in which case such amendment shall take effect immediately upon execution by the Custodian.
ARTICLE IX.7. Interpretation. In connection with the operation of this Agreement, the Custodian and any Fund may agree in writing from time to time on such provisions interpretative of or in addition to the provisions of this Agreement with respect to such Fund as may in their joint opinion be consistent with the general tenor of this Agreement. No interpretative or additional provisions made as provided in the preceding sentence shall be deemed to be an amendment of this Agreement or affect any other Fund.
ARTICLE IX.8. Captions. Headings contained in this Agreement, which are included as convenient references only, shall have no bearing upon the interpretation of the terms of the Agreement or the obligations of the parties hereto.
ARTICLE IX.9. Governing Law. Insofar as any question or dispute may arise in connection with the custodianship of foreign securities pursuant to an agreement with a Foreign Subcustodian that is governed by the laws of the State of New York, the provisions of this Agreement shall be construed in accordance with and governed by the laws of the State of New York, provided that in all other instances this Agreement shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts, in each case without giving effect to principles of conflicts of law.
ARTICLE IX.10. Notices. Except in the case of Proper Instructions or Special Instructions, notices and other writings contemplated by this Agreement shall be delivered by hand or by facsimile transmission (provided that in the case of delivery by facsimile transmission, notice shall also be mailed postage prepaid to the parties at the following addresses:
(a) |
If to any Fund: |
||
|
c/o Fidelity Management & Research Company |
||
|
82 Devonshire Street |
||
|
Boston, Massachusetts 02109 |
||
|
Attn: |
Treasurer of the Fidelity Funds |
|
|
Telephone: |
(617) 563-7000 |
|
|
Facsimile: |
(617) 476-4195 |
|
(b) |
If to the Custodian: |
||
|
State Street Bank and Trust Company |
||
|
Lafayette Corporate Center/4N |
||
|
2 Avenue de Lafayette |
||
|
Boston, MA 02111 |
||
|
Attn: |
Agostino Bonavito |
|
|
Telephone: |
617-662-3839 |
|
|
Facsimile: |
617-956-5674 |
or to such other address as a Fund or the Custodian may have designated in writing to the other.
ARTICLE IX.11. Assignment. This Agreement shall be binding on and shall inure to the benefit of each Fund severally and the Custodian and their respective successors and assigns, provided that, subject to the provisions of Section 7.01 hereof, neither the Custodian nor any Fund may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party.
ARTICLE IX.12. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. With respect to each Fund, this Agreement shall become effective when one or more counterparts have been signed and delivered by such Fund and the Custodian.
ARTICLE IX.13. Consent to Recording. Each Fund and the Custodian hereby agree that each may electronically record all telephonic conversations between them and that any such recordings may be submitted in evidence in any proceedings relating to this Agreement.
ARTICLE IX.14. Confidentiality; Reporting under Securities Exchange Act of 1934. The parties hereto agree that each shall treat confidentially the terms and conditions of this Agreement and all information provided by each party to the other regarding its business and operations. All confidential information provided by a party hereto shall be used by any other party hereto solely for the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall not be disclosed to any third party without the prior consent of such providing party. The foregoing shall not be applicable to any (a) information that is required to be disclosed by judicial or administrative process or otherwise by applicable law or regulation (provided that the party intending to disclose information pursuant to any such requirement shall provide written notice to the other party as far in advance of making such disclosure as practicable, but only to the extent such notice is permissible), (b) information that is publicly available when disclosed (other than information that becomes publicly available through a breach of this Agreement), (c) information that is required to be disclosed to any bank examiner of the Custodian or any Subcustodian, or (d) information that is required to be disclosed to any auditor of the parties hereto or to proxy voting vendors, in either case, provided that such auditors or proxy voting vendors are subject, by law or agreement, to duties of confidentiality at least as extensive as those set forth in this Agreement. In addition, the Custodian shall record all Fund accounts held by the Custodian as beneficial owners objecting to disclosure of identities and holdings for purposes of the Securities Exchange Act of 1934 and any rules thereunder, including but not limited to Rule 14b-2, and shall limit its disclosure with respect to the Funds pursuant to such provisions to the approximate total number of such beneficial owners. The Custodian shall promptly notify the applicable Fund any time any information concerning such Fund is disclosed by the Custodian or any Subcustodian to any third party if such disclosure is made in violation of the foregoing provisions of this Section 9.14.
ARTICLE IX.15. Survival of Obligations. The provisions of Sections 9.01, 9.02, 9.03, 9.09, and 9.14, Section 2.28, Section 3.04, Section 7.01, Article V and Article VI hereof and any other rights or obligations incurred or accrued by any party hereto prior to termination of this Agreement shall survive any termination of this Agreement.
ARTICLE IX.16. Additional Services. If the Funds engage the Custodian to provide any custodial services in addition to the services described herein, the terms of this Agreement shall govern the provision of such services, unless otherwise agreed to by the parties in writing.
[The remainder of this page is intentionally left blank.]
IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed in its name and behalf on the day and year first above written.
SIGNATURE LINES OMITTED
APPENDIX A
TO
CUSTODIAN AGREEMENT
BETWEEN
STATE STREET BANK AND TRUST COMPANY
AND
EACH OF THE INVESTMENT COMPANIES
DATED AS OF
Trust |
Fund |
Effective |
Fidelity Advisor Series I |
Fidelity Advisor Asset Manager 70% |
January 1, 2007 |
Fidelity Advisor Series I |
Fidelity Advisor Dividend Growth Fund |
January 1, 2007 |
Fidelity Advisor Series I |
Fidelity Advisor Dynamic Capital Appreciation Fund |
January 1, 2007 |
Fidelity Advisor Series I |
Fidelity Advisor Equity Value Fund |
January 1, 2007 |
Fidelity Advisor Series I |
Fidelity Advisor Small Cap Fund |
January 1, 2007 |
Fidelity Advisor Series VII |
Fidelity Advisor Biotechnology Fund |
January 1, 2007 |
Fidelity Advisor Series VII |
Fidelity Advisor Communications Equipment Fund |
January 1, 2007 |
Fidelity Advisor Series VII |
Fidelity Advisor Electronics Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor Diversified International Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor Europe Capital Appreciation Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor Global Capital Appreciation Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor Japan Fund |
January 1, 2007 |
Fidelity Advisor Series VIII |
Fidelity Advisor Latin America Fund |
January 1, 2007 |
Fidelity Beacon Street Trust |
Fidelity Advisor Tax Managed Stock Fund |
January 1, 2007 |
Fidelity Beacon Street Trust |
Fidelity Tax Managed Stock Fund |
January 1, 2007 |
Fidelity Capital Trust |
Fidelity Disciplined Equity Fund |
January 1, 2007 |
Fidelity Commonwealth Trust |
Fidelity Small Cap Retirement Fund |
January 1, 2007 |
Fidelity Destiny Portfolios |
Destiny II |
January 1, 2007 |
Fidelity Destiny Portfolios |
Fidelity Advisor Diversified Stock Fund |
January 1, 2007 |
Fidelity Magellan Fund |
Fidelity Magellan Fund |
January 1, 2007 |
Fidelity Securities Fund |
Fidelity Advisor Aggressive Growth Fund |
January 1, 2007 |
Variable Insurance Products Fund |
Value Portfolio |
January 1, 2007 |
Variable Insurance Products Fund III |
Dynamic Capital Appreciation Portfolio |
January 1, 2007 |
Variable Insurance Products Fund IV |
Energy Portfolio |
January 1, 2007 |
APPENDIX B
TO
CUSTODIAN AGREEMENT
BETWEEN
STATE STREET BANK AND TRUST COMPANY
AND
EACH OF THE INVESTMENT
COMPANIES LISTED ON APPENDIX "A" THERETO
DATED AS OF
The following is a list of Additional Custodians, Special Subcustodians, Foreign Subcustodians and Eligible Securities Depositories under the Custodian Agreement dated as of (the "Custodian Agreement"):
A. ADDITIONAL CUSTODIANS:
CUSTODIAN |
PURPOSE |
BANK OF NEW YORK |
FICASH |
|
FITERM |
B SPECIAL SUBCUSTODIANS
Subcustodian |
Purpose |
Bank of New York |
Ficash |
C. FOREIGN SUBCUSTODIANS
Country |
Subcustodian |
Eligible Securities Depositories |
Argentina |
Citibank, N.A., Buenos Aires |
Caja de Valores S.A. |
|
|
|
Australia |
Westpac Banking Corporation, |
Austraclear Limited |
|
Sydney |
|
|
|
|
|
Citigroup Pty. Limited |
|
|
|
|
Austria |
Erste Bank der oesterreichischen |
Oesterreichische Kontrollbank |
|
Sparkassen AG |
AG (Wertpapiersammelbank |
|
|
Division) |
|
|
|
Bahrain |
HSBC Bank Middle East |
Clearing, Settlement, and Depository |
|
(as delegate of The Honkong and
Shanghai Banking Corporation Limited) |
System of the Bahrain Stock Exchange |
|
|
|
Bangladesh |
Standard Chartered Bank, Dhaka |
Central Depository Bangladesh Limited |
|
|
|
Belgium |
BNP Paribas Securities Services |
Euroclear Belgium |
|
S.A. |
Banque Nationale de Belgique |
|
|
|
Benin |
via Societe Generale de Banques en Cote d'Ivoire, Abidjan, Ivory Coast |
Depositaire Central Banque de Reglement |
|
|
|
Bermuda |
The Bank of Bermuda Limited |
Bermuda Securities Depository |
|
|
|
|
|
|
Botswana |
Barclays Bank of Botswana |
Bank of Botswana |
|
Limited, Gaborone |
|
|
|
|
Brazil |
Citibank, N.A., Sao Paulo |
Sistema Especial de Liquidacao |
|
|
e Custodia (SELIC) |
|
|
|
|
|
Central de Custodia e Liquidacao |
|
|
Financeira de Titulos (CETIP) |
|
|
|
|
|
Companhia Brasileria de Liquidacao e |
|
|
Custodia |
|
|
|
Bulgaria |
ING Bank N.V., Sofia |
Central Depository AD (CDAD) |
|
|
Bulgarian National Bank |
|
|
|
Burkina Faso |
via Societe Generale de Banques en Cote d-Ivoire, Abidjan, Ivory Coast |
Depositaire Central-Banque de Reglement |
|
|
|
|
|
|
Canada |
State Street Trust Company |
The Canadian Depository for |
|
Canada, Toronto |
Securities Limited (CDS) |
|
|
|
|
|
|
Cayman Islands |
Scotiabank & Trust (Cayman) Limited |
None |
|
|
|
Chile |
BankBoston, N.A. |
Deposito Central de Valores S.A. (DCV) |
|
|
|
|
|
|
China - Shanghai |
The Hongkong and Shanghai Banking Corporation Limited, Shanghai Branch |
China Securities Depository and Clearing Corporation Limited, Shanghai Branch |
|
|
|
China - Shenzhen |
The Hongkong and Shanghai Banking Corporation Limited Shenzhen Branch |
China Securities Depository and Clearing Corporation Limited, Shenzhen Branch |
|
|
|
|
|
|
Colombia |
Cititrust Colombia S.A. |
Deposito Centralizado de Valores |
|
Sociedad Fiduciaria, Bogota |
Deposito Centra de Valores de Colombia S.A. (DECEVAL) |
|
|
|
Costa Rica |
Banco BCT S.A. |
Central de Valores S.A. |
|
|
|
Croatia |
Privredna Banka Zagreb d.d. |
Sredisnja Dpozitarna Agencija d.d. |
|
|
|
|
|
|
Cyprus |
Marfin Popular Bank Public Company Ltd. |
Central Depository and Central Registry |
|
|
|
Czech Republic |
Ceskoslovenska Obchodni Banka, A.S., Prague |
Stredisko Cennych Papiru Ceska Republika (SCP) |
|
|
Czech National Bank (CNB) |
|
|
|
Denmark |
Skandinaviska Enskilda Banken AB |
Vaerdipapericentralen |
|
|
|
|
|
|
Ecuador |
Banco de la Produccion S.A. |
None |
|
|
|
Egypt |
HSBC Bank Egypt S.A.E. (as delegate of The Hongkong and |
Misr for Clearing, Settlement and Depository |
|
Shanghai Banking Corporation Ltd.) |
|
|
|
|
Estonia |
AS Hansabank, Ltd., Tallinn |
AS Eesti Väärtpaberite Keskdepositoorium |
|
|
|
Finland |
Skandinaviska Enskilda Banken AB (SEB) (operating through its Helsinki Branch) |
Suomen Arvopaperikeskus |
|
|
|
France |
BNP Paribas Securities Services, Paris |
Euroclear France |
|
Deutsche Bank A.G., Paris Branch |
|
|
|
|
|
|
|
Germany |
Deutsche Bank A.G. |
Clearstream Banking AG, Frankfurt |
|
|
|
Ghana |
Barclays Bank of Ghana Limited, |
None |
|
Accra |
|
|
|
|
Greece |
National Bank of Greece, S.A., |
Apothtirion Tilton A.E. |
|
Athens |
|
|
|
|
|
|
Bank of Greece, System for Monitoring Transactions in Securities in Book-Entry Form |
|
|
|
Guinea-Bissau |
via Societe Generale de Banques en Cote d'Ivoire, Abidjan, Ivory Coast |
Depositaire Central - Banque de Reglement |
|
|
|
|
|
|
|
|
|
Hong Kong |
Standard Chartered Bank, Hong Kong |
Hong Kong Securities Clearing Company Limited |
|
|
|
|
|
Central Money Markets Unit (CMU) |
|
|
|
Hungary |
HVB Bank Hungary Rt. |
Kozponti Elszamolohaz es Ertektar |
|
Budapest |
(Budapest) Rt. (KELER) |
|
|
|
Iceland |
Kaupthing Bank hf. |
Iceland Securities Depository Limited |
|
|
|
India |
Deutsche Bank AG, Mumbai |
National Securities Depository Limited |
|
|
(NSDL) |
|
|
|
|
Hongkong & Shanghai Banking |
Reserve Bank of India |
|
Corporation, Ltd., Mumbai |
|
|
|
Central Depository Services India Limited |
|
|
|
Indonesia |
Deutsche Bank AG |
Bank Indonesia |
|
Jakarta |
|
|
|
PT Kustodian Sentral Efek Indonesia |
|
|
|
Ireland |
Bank of Ireland, Dublin |
None |
|
|
|
Israel |
Bank Hapoalim B.M., Tel Aviv |
Tel Aviv Stock Exchange (TASE) |
|
|
Clearinghouse, Ltd. |
|
|
|
|
|
|
Italy |
BNP Paribas, Milan Deutsche Bank, Milan |
Monte Titoli S.p.A.; |
|
|
|
Ivory Coast |
Societe Generale de Banques |
Depositaire Central - Banque |
|
en Cote d'Ivoire, Abidjan |
De Règlement |
|
|
|
Jamaica |
Bank Nova Scotia Jamaica Ltd. |
Jamaica Central Securities Depository |
|
|
|
|
|
|
Japan |
Mizuho Corporate Bank, Ltd. |
Japan Securities Depository Center |
|
|
|
|
Sumitomo Mitsui Banking Corporation |
Bank of Japan
|
|
|
|
Jordan |
HSBC Bank Middle East Limited |
None |
|
(as delegate of The Hongkong and |
|
|
Shanghai Banking Corporation Ltd.) |
|
|
|
|
Kazakhstan |
HSBC Bank Kazakhstan |
Central Securities Depository |
|
|
|
Kenya |
Barclays Bank of Kenya Limited, |
The Central Bank of Kenya |
|
Nairobi |
Central Depository and Settlement Corp. Ltd. |
|
|
|
Republic of Korea |
The Hongkong and Shanghai |
Korea Securities Depository (KSD) |
|
Banking Corporation Ltd., Seoul |
|
|
|
|
|
Deutsche Bank AG |
|
|
|
|
Latvia |
A/s Hansabanka, Riga |
Latvian Central Depository |
|
|
|
Lebanon |
HSBC Bank Middle East Limited (as delegate of The Hongkong and Shanghai Banking Corporation Ltd.) |
Custodian and Clearing Center of Financial Instruments for Lebanon and the Middle East (Midclear) |
|
|
Banque du Liban |
|
|
|
Lithuania |
SEB Viniaus Bankas AB |
Central Securities Depository of |
|
|
Lithuania |
|
|
|
Malaysia |
Standard Chartered Bank Malaysia Berhad, Kuala Lampur |
Bursa Malaysia Central Depository Sdn. Bhd. (MCD) |
|
|
|
|
|
Bank Negara Malasia |
|
|
|
Mali |
via Societe Generale de Banques |
Depositaire Central - Banque de |
|
|
Reglement |
|
|
|
Malta |
HSBC Bank, Malta |
Central Securities Depository of the Malta Stock Exchange |
|
|
|
Mauritius |
Hongkong and Shanghai Banking Corporation Limited, |
Central Depository & Settlement Co., Ltd. |
|
Mauritius |
|
|
|
Bank of Mauritius (BOM) |
|
|
|
Mexico |
Banco Nacional de Mexico S.A. |
S.D. INDEVAL, S.A. de C.V. |
|
Mexico City |
(Institución para el Deposito de |
|
|
Valores) |
|
|
|
Morocco |
Attijariwafa Bank |
MAROCLEAR |
|
Casablanca |
|
|
|
|
Namibia |
Standard Bank Namibia Ltd |
Bank of Namibia |
|
|
|
Netherlands |
Deutsche Bank AG |
Euroclear Nederland |
|
|
|
|
|
|
New Zealand |
Westpac Banking Corporation Wellington, New Zealand |
New Zealand Central Securities Depository Limited (NZCDS) |
|
|
|
Niger |
via Societe Generale de Bankques en Cote |
Depositaire Central - Banque de Reglement |
|
|
|
Nigeria |
Stanbic Bank Nigeria Ltd. |
Central Securities Clearing System Ltd. |
|
|
|
Norway |
Skandinaviska Enskilda Banken AB (SEB) (operating through its Oslo Branch) |
Verdipapirsentralen (VPS) |
|
|
|
Oman |
HSBC Bank Middle East Limited |
Muscat Depository and Securities |
|
(as delegate of the Hongkong and |
Registration Company, SAOC |
|
Shanghai Banking Corporation Ltd.) |
|
|
|
|
Pakistan |
Deutsche Bank AG, Karachi |
The Central Depository Company of Pakistan Ltd. |
|
|
State Bank of Pakistan |
|
|
|
Palestine |
HSBC Bank Middle East Limited |
Clearing Depository and Settlement, a |
|
(as delegate of the Hongkong and |
dept. of the Palestine Stock Exchange |
|
Shanghai Banking Corporation Ltd.) |
|
|
|
|
Panama |
HSBC Bank (Panama) S.A. |
LatinClear |
|
|
|
|
|
|
Peru |
Citibank del Peru, S.A. |
Caja de Valores y Liquidaciones (CAVAL) |
|
|
|
Philippines |
Standard Chartered Bank, Manila |
Philippine Depository & Trust Corp. |
|
|
|
|
|
Registry of Scripless Securities (ROSS) of the Bureau of Treasury |
|
|
|
|
|
|
|
|
|
Poland |
Bank Handlowy w Warszawie S.A. |
Krajowy Depozyt Papierow Wartosciowych S.A. |
|
|
|
|
|
Central Treasury Bills Registrar |
|
|
|
Portugal |
Banco Comercial Portuguese, S.A., |
INTERBOLSA - Sociedade Gestora |
|
Lisbon |
de Sistemas de Liquidacao e de Sistemas Centralizados de Valores Mobiliarios, S.A. |
|
|
|
Puerto Rico |
Citibank, N.A., Puerto Rico |
see U.S. depositories |
|
|
|
Qatar |
HSBC Bank Middle East Limited (as delegate of the Hongkong and Shanghai Banking Corporation Ltd.) |
Central Clearing and Registration (CCR) (dept. of Doha Securities Market) |
|
|
|
Romania |
ING Bank N.V., Bucharest |
National Bank of Romania |
|
|
|
|
|
Bucharest Stock Exchange (BSE) |
|
|
|
|
|
|
Russia |
ING Bank Eurasia ZAO (ING) |
Vneshtorgbank, Bank for Foreign Trade |
|
Moscow |
of the Russian Federation |
|
|
|
Senegal |
via Societe Generale de Banques en Cote d'Ivoire, Abidjan, Ivory Coast |
Depositaire Central - Banque de Reglement |
|
|
|
Serbia |
HVB Bank Serbia and Montenegro a.d. |
Central Registrar and Central Depository for Securities |
|
|
|
Singapore |
The Development Bank of |
Central Depository (Pte) Ltd. (CDP) |
|
Singapore Ltd., Singapore |
|
|
|
Monetary Authority of Singapore |
|
United Overseas Bank Ltd. |
|
|
|
|
Slovak Republic |
Ceskoslovenska Obchodni |
Centralny depozitar cennych papierov SR, a.s. |
|
|
|
|
|
National Bank of Slovakia (NBS) |
|
|
|
Slovenia |
Banka Austria Creditanstalt d.d., Ljubljana, |
Klirinsko Depotna Druzba (KDD) |
|
|
|
South Africa |
Standard Bank of South Africa |
STRATE |
|
Limited, Johannesburg |
|
|
Nedbank Ltd, Braamfontein |
|
|
|
|
Spain |
Deutsche Bank S.A.E. |
IBERCLEAR |
|
|
|
Sri Lanka |
Hongkong and Shanghai |
Central Depository System (Pvt) |
|
Banking Corp. Ltd., Colombo |
Limited (CDS) |
|
|
|
Swaziland |
Standard Bank Swaziland, |
None |
|
Limited, Mbabane |
|
|
|
|
Sweden |
Skandinaviska Enskilda Banken AB |
Vardepapperscentralen VPC AB |
|
Switzerland |
|
|
|
|
Switzerland |
UBS AG, Zurich |
SegaIntersettle AG (SIS) |
|
|
|
Taiwan |
Central Trust of China, Taipei |
Taiwan Depository and |
|
HSBC Taipei |
Clearing Corporation |
|
Citibank Taipei |
|
|
Deutsche Bank |
|
|
Standard Chartered Bank Taipei |
|
|
|
|
|
|
|
Thailand |
Standard Chartered Bank (Thai) |
Thailand Securities Depository |
|
|
Company Limited (TSD)
|
Togo |
via Societe Generale de Banques en Cote d'Ivoire, Abidjan, Ivory |
Depositaire Central - Banque de Reglement |
|
Coast |
|
|
|
|
Trinidad and Tobago |
Republic Bank Ltd. |
Trinidad and Tobago Central Bank |
|
|
|
Tunisia |
Banque Internationale Arabe de Tunisie |
Société Tunisienne Interprofessionelle pour la Compensation et de Dépôts des Valeurs Mobilières |
|
|
|
Turkey |
Citibank, A.S. |
Central Registry Agency (CRA) |
|
|
|
|
|
Central Bank of Turkey |
|
|
|
Uganda |
Barclays Bank of Uganda Ltd. |
Bank of Uganda |
|
|
|
Ukraine |
ING Bank Ukraine |
National Bank of Ukraine
|
|
|
Mizhregionalny Fondovy Souz |
|
|
|
United Arab Emirates |
HSBC Bank Middle East Limited |
Clearing and Depository System a department of the Dubai Financial Market |
|
|
|
United Kingdom |
State Street Bank and Trust |
CrestCo. Ltd. |
|
Company, Scotland |
|
|
|
|
United States |
State Street Bank and Trust Co. |
Depository Trust Clearing Corporation |
|
|
|
|
|
Federal Reserve Bank |
|
|
|
Uruguay |
BankBoston, N.A. |
Banco Central del Uruguay |
|
|
|
Venezuela |
Citibank, N.A., Caracas |
The Central Bank of Venezuela |
|
|
|
|
|
Caja Venezolana de Valores |
|
|
|
Vietnam |
The Hongkong and Shanghai |
Vietnam Securities Depository (VSD) |
|
Banking Corporation Limited |
|
|
|
|
|
|
|
Zambia |
Barclays Bank of Zambia |
LuSE Central Shares Depository Ltd. |
|
Plc, Lusaka |
Bank of Zambia |
|
|
|
Zimbabwe |
Barclays Bank of Zimbabwe Ltd. |
None
|
|
|
Transnational Euroclear Clearstream (Clearstream Banking, S.A.) |
APPENDIX C
TO THE
CUSTODIAN AGREEMENT
BETWEEN
EACH OF THE INVESTMENT COMPANIES
LISTED ON APPENDIX "A" THERETO
AND
STATE STREET BANK AND TRUST COMPANY
DATED AS OF
PROCEDURES RELATING TO CUSTODIAN'S SECURITY INTEREST
As security for any Overdrafts (as defined in the Custodian Agreement) of any Portfolio, the applicable Fund, on behalf of such Portfolio, shall pledge, assign and grant to the Custodian a security interest in Collateral (as hereinafter defined), under the terms, circumstances and conditions set forth in this Appendix "C".
Section 1. Defined Terms. As used in this Appendix "C" the following terms shall have the following respective meanings:
(a) "Business Day" shall mean any day that is not a Saturday, a Sunday or a day on which the Custodian is closed for business.
(b) "Collateral" shall mean, with respect to any Portfolio, securities held by the Custodian on behalf of the Portfolio having a fair market value (as determined in accordance with the procedures set forth in the prospectus for the Portfolio) equal to the aggregate of all Overdraft Obligations of such Portfolio: (i) identified in any Pledge Certificate executed on behalf of such Portfolio; or (ii) designated by the Custodian for such Portfolio pursuant to Section 3 of this Appendix "C". Such securities shall consist of marketable securities held by the Custodian on behalf of such Portfolio or, if no such marketable securities are held by the Custodian on behalf of such Portfolio, such other securities designated by the applicable Fund in the applicable Pledge Certificate or by the Custodian pursuant to Section 3 of this Appendix "C".
(c) "Overdraft Obligations" shall mean, with respect to any Portfolio, the amount of any outstanding Overdraft(s) provided by the Custodian to such Portfolio together with all accrued interest thereon.
(d) "Pledge Certificate" shall mean a Pledge Certificate in the form attached to this Appendix "C" as Schedule 1 executed by a duly authorized officer of the applicable Fund and delivered by such Fund to the Custodian by facsimile transmission or in such other manner as the applicable Fund and the Custodian may agree in writing.
(e) "Release Certificate" shall mean a Release Certificate in the form attached to this Appendix "C" as Schedule 2 executed by a duly authorized officer of the Custodian and delivered by the Custodian to the applicable Fund by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing.
(f) "Written Notice" shall mean a written notice executed by a duly authorized officer of the party delivering the notice and delivered by facsimile transmission or in such other manner as the applicable Fund and the Custodian shall agree in writing.
Section 2. Pledge of Collateral. To the extent that any Overdraft Obligations of a Portfolio are not satisfied by the close of business on the first Business Day following the Business Day on which the applicable Fund receives Written Notice requesting security for such Overdraft Obligation and stating the amount of such Overdraft Obligation, the applicable Fund, on behalf of such Portfolio, shall pledge, assign and grant to the Custodian a first priority security interest, by delivering to the Custodian, a Pledge Certificate executed by such Fund on behalf of such Portfolio describing the applicable Collateral. Such Written Notice may, in the discretion of the Custodian, be included within or accompany the Overdraft Notice relating to the applicable Overdraft Obligations.
Section 3. Failure to Pledge Collateral. In the event that the applicable Fund shall fail: (a) to pay, on behalf of the applicable Portfolio, the Overdraft Obligation described in such Written Notice; (b) to deliver to the Custodian a Pledge Certificate pursuant to Section 2; or (c) to identify substitute securities pursuant to Section 6 upon the sale or maturity of any securities identified as Collateral, the Custodian may, by Written Notice to the applicable Fund specify Collateral which shall secure the applicable Overdraft Obligation. Such Fund, on behalf of any applicable Portfolio, hereby pledges, assigns and grants to the Custodian a first priority security interest in any and all Collateral specified in such Written Notice; provided that such pledge, assignment and grant of security shall be deemed to be effective only upon receipt by the applicable Fund of such Written Notice.
Section 4. Delivery of Additional Collateral. If at any time the Custodian shall notify a Fund by Written Notice that the fair market value of the Collateral securing any Overdraft Obligation of one of such Fund's Portfolios is less than the amount of such Overdraft Obligation, such Fund, on behalf of the applicable Portfolio, shall deliver to the Custodian, within one (1) Business Day following the Fund's receipt of such Written Notice, an additional Pledge Certificate describing additional Collateral. If such Fund shall fail to deliver such additional Pledge Certificate, the Custodian may specify Collateral which shall secure the unsecured amount of the applicable Overdraft Obligation in accordance with Section 3 of this Appendix C.
Section 5. Release of Collateral. Upon payment by a Fund, on behalf of one of its Portfolios, of any Overdraft Obligation secured by the pledge of Collateral, the Custodian shall promptly deliver to such Fund a Release Certificate pursuant to which the Custodian shall release Collateral from the lien under the applicable Pledge Certificate or Written Notice pursuant to Section 3 having a fair market value equal to the amount paid by such Fund on account of such Overdraft Obligation. In addition, if at any time a Fund shall notify the Custodian by Written Notice that such Fund desires that specified Collateral be released and: (a) that the fair market value of the Collateral securing any Overdraft Obligation shall exceed the amount of such Overdraft Obligation; or (b) that the Fund has delivered a Pledge Certificate substituting Collateral for such Overdraft Obligation, the Custodian shall deliver to such Fund, within one (1) Business Day following the Custodian's receipt of such Written Notice, a Release Certificate relating to the Collateral specified in such Written Notice.
Section 6. Substitution of Collateral. A Fund may substitute securities for any securities identified as Collateral by delivery to the Custodian of a Pledge Certificate executed by such Fund on behalf of the applicable Portfolio, indicating the securities pledged as Collateral.
Section 7. Security for Individual Portfolios' Overdraft Obligations. The pledge of Collateral by a Fund on behalf of any of its individual Portfolios shall secure only the Overdraft Obligations of such Portfolio. In no event shall the pledge of Collateral by one of a Fund's Portfolios be deemed or considered to be security for the Overdraft Obligations of any other Portfolio of such Fund or of any other Fund.
Section 8. Custodian's Remedies. Upon (a) a Fund's failure to pay any Overdraft Obligation of an applicable Portfolio within thirty (30) days after receipt by such Fund of a Written Notice demanding security therefore, and (b) one (1) Business Day's prior Written Notice to such Fund, the Custodian may elect to enforce its security interest in the Collateral securing such Overdraft Obligation, by taking title to (at the then prevailing fair market value), or selling in a commercially reasonable manner, so much of the Collateral as shall be required to pay such Overdraft Obligation in full. Notwithstanding the provisions of any applicable law, including, without limitation, the Uniform Commercial Code, the remedy set forth in the preceding sentence shall be the only right or remedy to which the Custodian is entitled with respect to the pledge and security interest granted pursuant to any Pledge Certificate or Section 3. Without limiting the foregoing, the Custodian hereby waives and relinquishes all contractual and common law rights of set off to which it may now or hereafter be or become entitled with respect to any obligations of any Fund to the Custodian arising under this Appendix "C" to the Agreement.
IN WITNESS WHEREOF, each of the parties has caused this Appendix to be executed in its name and behalf on the day and year first above written.
SIGNATURE LINES OMITTED
SCHEDULE 1
TO
APPENDIX "C"
PLEDGE CERTIFICATE
This Pledge Certificate is delivered pursuant to the Custodian Agreement, dated as of (the "Agreement"), between [ ] (the "Fund") and State Street Bank and Trust Company (the "Custodian"). Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Agreement. Pursuant to [Section 2 or Section 4] of Appendix "C" attached to the Agreement, the Fund, on behalf of [ ] (the "Portfolio"), hereby pledges, assigns and grants to the Custodian a first priority security interest in the securities listed on Exhibit "A" attached to this Pledge Certificate (collectively, the "Pledged Securities"). Upon delivery of this Pledge Certificate, the Pledged Securities shall constitute Collateral, and shall secure all Overdraft Obligations of the Portfolio described in that certain Written Notice dated, delivered by the Custodian to the Fund. The pledge, assignment and grant of security in the Pledged Securities hereunder shall be subject in all respect to the terms and conditions of the Agreement, including, without limitation, Sections 7 and 8 of Appendix "C" attached thereto.
IN WITNESS WHEREOF, the Fund has caused this Pledge Certificate to be executed in its name, on behalf of the Portfolio this day of ____________.
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[FUND], on Behalf of [Portfolio] |
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EXHIBIT "A"
TO
PLEDGE CERTIFICATE
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SCHEDULE 2
TO
APPENDIX "C"
RELEASE CERTIFICATE
This Release Certificate is delivered pursuant to the Custodian Agreement, dated as of (the "Agreement"), between [ ] (the "Fund") and State Street Bank and Trust Company (the "Custodian"). Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Agreement. Pursuant to Section 5 of Appendix "C" attached to the Agreement, the Custodian hereby releases the securities listed on Exhibit "A" attached to this Release Certificate from the lien under the [Pledge Certificate dated ___________, or the Written Notice delivered pursuant to Section 3 of Appendix "C" dated _________ ].
IN WITNESS WHEREOF, the Custodian has caused this Release Certificate to be executed in its name
and on its behalf this ____ day of ___________.
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State Street Bank and Trust Company |
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EXHIBIT "A"
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RELEASE CERTIFICATE
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APPENDIX D
TO THE
CUSTODIAN AGREEMENT
BETWEEN
EACH OF THE INVESTMENT COMPANIES
LISTED ON APPENDIX "A" THERETO
AND
STATE STREET BANK AND TRUST COMPANY
DATED AS OF
A. |
Central Funds |
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Trust |
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Fund |
Fidelity Central Investment Portfolios LLC |
Fidelity 1-3 Year Duration Securitized Bond Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity 2-5 Year Duration Securitized Bond Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Discretionary Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Consumer Staples Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Corporate Bond 1-5 Year Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Corporate Bond 1-10 Year Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Energy Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Financials Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Floating Rate Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Health Care Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity High Income Central Fund 1 |
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Fidelity Central Investment Portfolios LLC |
Fidelity Industrials Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Information Technology Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Materials Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Mortgage Backed Securities Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Specialized High Income Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Tactical Income Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Telecom Services Central Fund |
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Fidelity Central Investment Portfolios LLC |
Fidelity Utilities Central Fund |
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Fidelity Garrison Street Trust |
Fidelity Money Market Central Fund |
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Fidelity Garrison Street Trust |
Fidelity Ultra-Short Central Fund |
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Fidelity Garrison Street Trust |
Fidelity Cash Central Fund |
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Fidelity Garrison Street Trust |
VIP Investment Grade Central Fund |
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Fidelity Revere Street Trust |
Fidelity Cash Central Fund |
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Fidelity Revere Street Trust |
Fidelity Municipal Cash Central Fund |
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Fidelity Revere Street Trust |
Fidelity Securities Lending Cash Central Fund |
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Fidelity Revere Street Trust |
Fidelity Tax-Free Cash Central Fund |
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B. |
Fund of Funds |
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Trust |
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Fund |
Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2005 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2010 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2015 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2020 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2025 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2030 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2035 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2040 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2045 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom 2050 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Advisor Freedom Income Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2000 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2005 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2010 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2015 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2020 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2025 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2030 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2035 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2040 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2045 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom 2050 Fund |
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Fidelity Aberdeen Street Trust |
Fidelity Freedom Income Fund |
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Variable Insurance Products Fund IV |
Freedom 2005 Portfolio |
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Variable Insurance Products Fund IV |
Freedom 2010 Portfolio |
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Variable Insurance Products Fund IV |
Freedom 2015 Portfolio |
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Variable Insurance Products Fund IV |
Freedom 2020 Portfolio |
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Variable Insurance Products Fund IV |
Freedom 2025 Portfolio |
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Variable Insurance Products Fund IV |
Freedom 2030 Portfolio |
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Variable Insurance Products Fund IV |
Freedom Income Portfolio |
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Variable Insurance Products Fund IV |
Freedom Lifetime Income I Portfolio |
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Variable Insurance Products Fund IV |
Freedom Lifetime Income II Portfolio |
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Variable Insurance Products Fund IV |
Freedom Lifetime Income III Portfolio |
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Variable Insurance Products Fund IV |
FundsManager 20% Portfolio |
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Variable Insurance Products Fund IV |
FundsManager 50% Portfolio |
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Variable Insurance Products Fund IV |
FundsManager 70% Portfolio |
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Variable Insurance Products Fund IV |
FundsManager 85% Portfolio |
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Variable Insurance Products Fund IV |
Investor Freedom 2005 Portfolio |
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Variable Insurance Products Fund IV |
Investor Freedom 2010 Portfolio |
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Variable Insurance Products Fund IV |
Investor Freedom 2015 Portfolio |
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Variable Insurance Products Fund IV |
Investor Freedom 2020 Portfolio |
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Variable Insurance Products Fund IV |
Investor Freedom 2025 Portfolio |
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Variable Insurance Products Fund IV |
Investor Freedom 2030 Portfolio |
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Variable Insurance Products Fund IV |
Investor Freedom Income Portfolio |
APPENDIX E
TO THE
CUSTODIAN AGREEMENT
BETWEEN
EACH OF THE INVESTMENT COMPANIES
LISTED ON APPENDIX "A" THERETO
AND
STATE STREET BANK AND TRUST COMPANY
DATED AS OF:
TRANSFER AGENT ACCOUNTS
Bank Account Operating Name |
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Bank Account Number |
FOREIGN EXCHANGE ACCOUNTS
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Bank Account Number |
Exhbit (g)(12)
FORM OF
SCHEDULE A-1
as of December 28, 2006
PART I
FIDELITY ABERDEEN STREET TRUST
Fidelity Advisor Freedom 2005 Fund
Fidelity Advisor Freedom 2010 Fund
Fidelity Advisor Freedom 2015 Fund
Fidelity Advisor Freedom 2020 Fund
Fidelity Advisor Freedom 2025 Fund
Fidelity Advisor Freedom 2030 Fund
Fidelity Advisor Freedom 2035 Fund
Fidelity Advisor Freedom 2040 Fund
Fidelity Advisor Freedom 2045 Fund
Fidelity Advisor Freedom 2050 Fund
Fidelity Advisor Freedom Income Fund
Fidelity Freedom 2000 Fund
Fidelity Freedom 2005 Fund
Fidelity Freedom 2010 Fund
Fidelity Freedom 2015 Fund
Fidelity Freedom 2020 Fund
Fidelity Freedom 2025 Fund
Fidelity Freedom 2030 Fund
Fidelity Freedom 2035 Fund
Fidelity Freedom 2040 Fund
Fidelity Freedom 2045 Fund
Fidelity Freedom 2050 Fund
Fidelity Freedom Income Fund
FIDELITY ADVISOR SERIES I
Fidelity Advisor Asset Manager 70%
Fidelity Advisor Balanced Fund
Fidelity Advisor Dividend Growth Fund
Fidelity Advisor Dynamic Capital Appreciation Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Equity Value Fund
Fidelity Advisor Fifty Fund
Fidelity Advisor Growth & Income Fund
Fidelity Advisor Growth Opportunities Fund
Fidelity Advisor Large Cap Fund
Fidelity Advisor Leveraged Company Stock Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Small Cap Fund
Fidelity Advisor Strategic Growth Fund
Fidelity Advisor Value Strategies Fund
FIDELITY ADVISOR SERIES II
Fidelity Advisor Floating Rate High Income Fund
Fidelity Advisor High Income Advantage Fund
Fidelity Advisor High Income Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Mid Cap II Fund
Fidelity Advisor Mortgage Securities Fund
Fidelity Advisor Short Fixed-Income Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Value Fund
FIDELITY ADVISOR SERIES IV
Fidelity Institutional Short-Intermediate Government Fund
Fidelity Real Estate High Income Fund
FIDELITY ADVISOR SERIES VII
Fidelity Advisor Biotechnology Fund
Fidelity Advisor Consumer Discretionary Fund
Fidelity Advisor Industrials Fund
Fidelity Advisor Communications Equipment Fund
Fidelity Advisor Electronics Fund
Fidelity Advisor Financial Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Energy Fund
Fidelity Advisor Real Estate Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Fund
FIDELITY ADVISOR SERIES VIII
Fidelity Advisor Diversified International Fund
Fidelity Advisor Emerging Asia Fund
Fidelity Advisor Emerging Markets Fund
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor Europe Capital Appreciation Fund
Fidelity Advisor Global Capital Appreciation Fund
Fidelity Advisor International Capital Appreciation Fund
Fidelity Advisor Japan Fund
Fidelity Advisor Korea Fund
Fidelity Advisor Latin America Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor Value Leaders Fund
FIDELITY BEACON STREET TRUST
Fidelity Advisor Tax Managed Stock Fund
Fidelity Tax Managed Stock Fund
FIDELITY CAPITAL TRUST
Fidelity Capital Appreciation Fund
Fidelity Disciplined Equity Fund
Fidelity Focused Stock Fund
Fidelity Small Cap Independence Fund
Fidelity Stock Selector
Fidelity Value Fund
FIDELITY CENTRAL INVESTMENT PORTFOLIOS LLC
Fidelity Floating Rate Central Fund
Fidelity High Income Central Fund 1
Fidelity Specialized High Income Central Fund
Fidelity Tactical Income Central Fund
Fidelity Consumer Discretionary Central Fund
Fidelity Consumer Staples Central Fund
Fidelity Energy Central Fund
Fidelity Financials Central Fund
Fidelity Health Care Central Fund
Fidelity Industrials Central Fund
Fidelity Information Technology Central Fund
Fidelity Materials Central Fund
Fidelity Telecom Services Central Fund
Fidelity Utilities Central Fund
Fidelity 1-3 Year Duration Securitized Bond Central Fund
Fidelity 2-5 Year Duration Securitized Bond Central Fund
Fidelity Corporate Bond 1-5 Year Central Fund
Fidelity Corporate Bond 1-10 Year Central Fund
Fidelity Mortgage Backed Securities Central Fund
FIDELITY CHARLES STREET TRUST
Fidelity Asset Manager 20%
Fidelity Asset Manager 50%
Fidelity Asset Manager 70%
Fidelity Asset Manager 85%
FIDELITY COLCHESTER STREET TRUST
Government Portfolio
Money Market Portfolio
Prime Money Market Portfolio
Treasury Only Portfolio
Treasury Portfolio
FIDELITY COMMONWEALTH TRUST
Fidelity Strategic Real Return Fund
Fidelity Intermediate Bond Fund
Fidelity Large Cap Stock Fund
Fidelity Mid-Cap Stock Fund
Fidelity NASDAQ Composite Index Fund
Fidelity NASDAQ Composite Index Tracking Stock
Fidelity Small Cap Retirement Fund
Fidelity Small Cap Stock Fund
Spartan 500 Index Fund
FIDELITY CONCORD STREET TRUST
Fidelity U.S. Bond Index Fund
Spartan Extended Market Index Fund
Spartan International Index Fund
Spartan Intermediate Treasury Bond Index Fund
Spartan Long-Term Treasury Bond Index Fund
Spartan Short-Term Treasury Bond Index Fund
Spartan Total Market Index Fund
Spartan U.S. Equity Index Fund
FIDELITY CONGRESS STREET FUND
Fidelity Congress Street Fund
FIDELITY CONTRAFUND
Fidelity Advisor New Insights Fund
Fidelity Contrafund
FIDELITY DESTINY PORTFOLIOS
Fidelity Advisor Diversified Stock Fund
Destiny II
FIDELITY DEVONSHIRE TRUST
Fidelity Equity-Income Fund
Fidelity Large Cap Growth Fund
Fidelity Large Cap Value Fund
Fidelity Mid Cap Growth Fund
Fidelity Mid Cap Value Fund
Fidelity Real Estate Investment Portfolio
Fidelity Utilities Fund
FIDELITY EXCHANGE FUND
Fidelity Exchange Fund
FIDELITY FINANCIAL TRUST
Fidelity Convertible Securities Fund
Fidelity Equity-Income II Fund
Fidelity Independence Fund
Fidelity Strategic Dividend & Income Fund
FIDELITY FIXED-INCOME TRUST
Fidelity Focused High Income Fund
Fidelity High Income Fund
Fidelity Inflation-Protected Bond Fund
Fidelity Investment Grade Bond Fund
Fidelity Short-Term Bond Fund
FIDELITY GARRISON STREET TRUST
Fidelity Money Market Central Fund
Fidelity Ultra-Short Central Fund
VIP Investment Grade Central Fund
FIDELITY HASTINGS STREET TRUST
Fidelity Discovery Fund
Fidelity Fifty
Fidelity Fund
Fidelity Growth & Income II Portfolio
FIDELITY HEREFORD STREET TRUST
Fidelity Government Money Market Fund
Fidelity Money Market Fund
Fidelity U.S. Treasury Money Market Fund
FIDELITY INCOME FUND
Fidelity Ginnie Mae Fund
Fidelity Government Income Fund
Fidelity Intermediate Government Income Fund
Fidelity Total Bond Fund
Fidelity Ultra-Short Bond Fund
FIDELITY INVESTMENT TRUST
Fidelity Aggressive International Fund
Fidelity Canada Fund
Fidelity China Region Fund
Fidelity Diversified International Fund
Fidelity Emerging Markets Fund
Fidelity Europe Capital Appreciation Fund
Fidelity Europe Fund
Fidelity Global Balanced Fund
Fidelity International Discovery Fund
Fidelity International Value Fund
Fidelity International Small Cap Fund
Fidelity International Small Cap Opportunities Fund
Fidelity Japan Fund
Fidelity Japan Smaller Companies Fund
Fidelity Latin America Fund
Fidelity Nordic Fund
Fidelity Overseas Fund
Fidelity Pacific Basin Fund
Fidelity Southeast Asia Fund
Fidelity Worldwide Fund
FIDELITY MAGELLAN FUND
Fidelity Magellan Fund
FIDELITY MONEY MARKET TRUST
Retirement Government Money Market Portfolio
Retirement Money Market Portfolio
FIDELITY MT. VERNON STREET TRUST
Fidelity Aggressive Growth Fund
Fidelity Growth Company Fund
Fidelity New Millennium Fund
FIDELITY NEWBURY STREET TRUST
Prime Fund
Treasury Fund
FIDELITY OXFORD STREET TRUST
Fidelity Four-in-One Index Fund
FIDELITY PHILLIPS STREET TRUST
Fidelity Cash Reserves
Fidelity U.S. Government Reserves
FIDELITY PURITAN TRUST
Fidelity Balanced Fund
Fidelity Low-Priced Stock Fund
Fidelity Puritan Fund
Fidelity Value Discovery Fund
FIDELITY REVERE STREET TRUST
Fidelity Cash Central Fund
Fidelity Securities Lending Cash Central Fund
FIDELITY SCHOOL STREET TRUST
Fidelity New Markets Income Fund
Fidelity Strategic Income Fund
FIDELITY SECURITIES FUND
Fidelity Advisor Aggressive Growth Fund
Fidelity Blue Chip Growth Fund
Fidelity Blue Chip Value Fund
Fidelity Dividend Growth Fund
Fidelity Growth & Income Portfolio
Fidelity International Real Estate Fund
Fidelity Leveraged Company Stock Fund
Fidelity OTC Portfolio
Fidelity Real Estate Income Fund
Fidelity Small Cap Growth Fund
Fidelity Small Cap Value Fund
FIDELITY SELECT PORTFOLIOS
Air Transportation Portfolio
Automotive Portfolio
Banking Portfolio
Biotechnology Portfolio
Brokerage and Investment Management Portfolio
Chemicals Portfolio
Communications Equipment Portfolio
Computers Portfolio
Construction and Housing Portfolio
Consumer Discretionary Portfolio
Consumer Staples Portfolio
Defense and Aerospace Portfolio
Electronics Portfolio
Energy Portfolio
Energy Service Portfolio
Environmental Portfolio
Financial Services Portfolio
Gold Portfolio
Health Care Portfolio
Home Finance Portfolio
Industrial Equipment Portfolio
Industrials Portfolio
Insurance Portfolio
IT Services Portfolio
Leisure Portfolio
Materials Portfolio
Medical Delivery Portfolio
Medical Equipment and Systems Portfolio
Money Market Portfolio
Multimedia Portfolio
Natural Gas Portfolio
Natural Resources Portfolio
Networking & Infrastructure Portfolio
Paper and Forest Products Portfolio
Pharmaceuticals Portfolio
Retailing Portfolio
Software and Computer Services Portfolio
Technology Portfolio
Telecommunications Portfolio
Transportation Portfolio
Utilities Growth Portfolio
Wireless Portfolio
FIDELITY SUMMER STREET TRUST
Fidelity Capital & Income Fund
FIDELITY TREND FUND
Fidelity Trend Fund
FIDELITY UNION STREET TRUST
Fidelity Export and Multinational Fund
VARIABLE INSURANCE PRODUCTS FUND
Equity-Income Portfolio
Growth Portfolio
High Income Portfolio
Money Market Portfolio
Overseas Portfolio
Value Portfolio
VARIABLE INSURANCE PRODUCTS FUND II
Asset Manager Portfolio
Asset Manager: Growth Portfolio
Contrafund Portfolio
Disciplined Small Cap Portfolio
Index 500 Portfolio
Investment Grade Bond Portfolio
VARIABLE INSURANCE PRODUCTS FUND III
Aggressive Growth Portfolio
Balanced Portfolio
Dynamic Capital Appreciation Portfolio
Growth & Income Portfolio
Growth Opportunities Portfolio
Mid Cap Portfolio
Value Strategies Portfolio
VARIABLE INSURANCE PRODUCTS FUND IV
Consumer Discretionary Portfolio
Energy Portfolio
Financial Services Portfolio
Freedom 2005 Portfolio
Freedom 2010 Portfolio
Freedom 2015 Portfolio
Freedom 2020 Portfolio
Freedom 2025 Portfolio
Freedom 2030 Portfolio
Freedom Income Portfolio
Freedom Lifetime Income I Portfolio
Freedom Lifetime Income II Portfolio
Freedom Lifetime Income III Portfolio
Funds Manager 20% Portfolio
FundsManager 50% Portfolio
FundsManager 70% Portfolio
FundsManager 85% Portfolio
Growth Stock Portfolio
Health Care Portfolio
Industrials Portfolio
International Capital Appreciation Portfolio
Investor Freedom 2005 Portfolio
Investor Freedom 2010 Portfolio
Investor Freedom 2015 Portfolio
Investor Freedom 2020 Portfolio
Investor Freedom 2025 Portfolio
Investor Freedom 2030 Portfolio
Investor Freedom Income Portfolio
Real Estate Portfolio
Strategic Income Portfolio
Technology Portfolio
Utilities Portfolio
Value Leaders Portfolio
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[SIGNATURE LINES OMITTED]
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Exhibit (i)(1)
Dechert |
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200 Clarendon Street 27th Floor Boston, MA 02116-5021 +1 617 728 7100 Main +1 617 426 6567 Fax www.dechert.com |
June 25, 2007
Fidelity Charles Street Trust
82 Devonshire Street
Boston, MA 02109
Re: Post-Effective Amendment No. 83 to the Registration Statement on Form N-1A
Ladies and Gentlemen:
We have acted as counsel to Fidelity Charles Street Trust, a Massachusetts business trust (the "Trust") and its separate series Fidelity Advisor Asset Manager 70% and Fidelity Global Balanced Fund (the "Funds"), in connection with Post-Effective Amendment No. 83 to the Trust's Registration Statement on Form N-1A (the "Amendment") filed with the Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "Securities Act").
In connection with the opinions set forth herein, you have provided to us originals, copies or facsimile transmissions of, and we have reviewed and relied upon, among other things, copies of the following: the Amendment; the Amended and Restated Declaration of Trust of the Trust dated September 19, 2001, as amended; and the By-Laws of the Trust dated June 17, 2004 (the "By-Laws"). In addition, we have reviewed and relied upon a Certificate issued by the Secretary of the Commonwealth of Massachusetts dated June 22, 2007 with respect to the Trust, which we have assumed remains unchanged as of the date of this letter. We have assumed that the By-Laws have been duly adopted by the Trustees. We have also examined such documents and questions of law as we have concluded are necessary or appropriate for purposes of the opinions expressed below.
In rendering this opinion we have assumed, without independent verification, (i) the due authority of all individuals signing in representative capacities and the genuineness of signatures; (ii) the authenticity, completeness and continued effectiveness of all documents or copies furnished to us; (iii) that any resolutions provided have been duly adopted by the Funds' Board of Trustees; (iv) that the facts contained in the instruments and certificates or statements of public officials; officers and representatives of the Funds on which we have relied for the purposes of this opinion are true and correct; and (v) that no amendments, agreements, resolutions or actions have been approved, executed or adopted which would limit, supersede or modify the items described above. Where documents are referred to in resolutions approved by the Board of Trustees, or in the Amendment, we have assumed such documents are the same as in the most recent form provided to us, whether as an exhibit to the Amendment or otherwise. When any opinion set forth below relates to the existence or standing of the Trust, such opinion is based entirely upon and is limited by the items referred to above, and we understand that the foregoing assumptions, limitations and qualifications are acceptable to you.
Based upon the foregoing, we are of the opinion that:
Fidelity Charles Street Trust
Page 2
1. The Trust has been duly formed and is validly existing as a business trust under the laws of the Commonwealth of Massachusetts; and
2. the Shares registered under the Securities Act, when issued in accordance with the terms described in the Amendment, will be legally issued, fully paid and non-assessable by the Trust.
The opinions expressed herein are limited to the laws of the Commonwealth of Massachusetts and the federal securities laws of the United States. We express no opinion herein with respect to the effect or applicability of the law of any other jurisdiction. The opinions expressed herein are solely for your benefit and may not be relied on in any manner or for any purpose by any other person.
We express no opinion as to any other matter other than as expressly set forth above and no other opinion is intended or may be inferred herefrom. The opinions expressed herein are given as of the date hereof and we undertake no obligation and hereby disclaim any obligation to advise you of any change after the date of this opinion pertaining to any matter referred to herein. We hereby consent to the use of this opinion as an exhibit to the Amendment. In giving such consent, we do not hereby admit that we are within the category of persons whose consent is required by Section 7 of the Securities Act and the rules and regulations thereunder.
Very truly yours,
/s/ Dechert LLP
Dechert LLP
U.S. AUSTIN BOSTON CHARLOTTE HARRISBURG HARTFORD NEW YORK NEWPORT BEACH PALO ALSO PHILADELPHIA PRINCETON |
Exhibit (j)
Consent of Independent Registered Public Accounting Firm
We hereby consent to the incorporation by reference into the Prospectuses and Statement of Additional Information in Post-Effective Amendment No. 83 to the Registration Statement on Form N-1A of Fidelity Charles Street Trust: Fidelity Advisor Asset Manager 70% of our report dated November 22, 2006 on the financial statements and financial highlights included in the September 30, 2006 Annual Report to Shareholders and Fidelity Charles Street Trust: Fidelity Global Balanced Fund of our report dated December 21, 2006 on the financial statements and financial highlights included in the October 31, 2006 Annual Report to Shareholders, which are also incorporated by reference into the Registration Statement.
We further consent to the references to our Firm under the headings "Financial Highlights" in the Prospectuses and "Independent Registered Public Accounting Firm" in the Statements of Additional Information.
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/s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP |
Boston, Massachusetts |
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June 26, 2007 |
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Exhibit (m)(20)
FORM OF
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR ASSET MANAGER 70%
Class A Shares
1. This Distribution and Service Plan (the "Plan"), when effective in accordance with its terms, shall be the written plan contemplated by Rule 12b-1 under the Investment Company Act of 1940, as amended (the "Act") for the Class A shares of Fidelity Advisor Asset Manager 70% ("Class A"), a class of shares of Fidelity Advisor Asset Manager 70% (the "Fund"), a portfolio of Fidelity Charles Street Trust (the "Trust").
2. The Trust has entered into a General Distribution Agreement on behalf of the Fund with Fidelity Distributors Corporation (the "Distributor"), under which the Distributor uses all reasonable efforts, consistent with its other business, to secure purchasers of the Fund's shares of beneficial interest (the "Shares"). Such efforts may include, but neither are required to include nor are limited to, the following: (1) formulation and implementation of marketing and promotional activities, such as mail promotions and television, radio, newspaper, magazine and other mass media advertising; (2) preparation, printing and distribution of sales literature; (3) preparation, printing and distribution of prospectuses of the Fund and reports to recipients other than the existing shareholders of the Fund; (4) obtaining such information, analyses and reports with respect to marketing and promotional activities as the Distributor may, from time to time, deem advisable; (5) making payments to securities dealers and others engaged in the sale of Shares or who engage in shareholder support services ("Investment Professionals"); and (6) providing training, marketing and support to such dealers with respect to the sale of Shares.
3. In consideration for the services provided and the expenses incurred by the Distributor pursuant to the General Distribution Agreement and paragraph 2 hereof, all with respect to Class A Shares, Class A shall pay to the Distributor a fee at the annual rate of 0.50% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class A throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of the Fund's Class A Shares. The Distributor may use all or any portion of the distribution fee received pursuant to the Plan to compensate Investment Professionals who have engaged in the sale of Class A Shares or in shareholder support services with respect to Class A Shares pursuant to agreements with the Distributor, or to pay any of the expenses associated with other activities authorized under paragraph 2 hereof.
4. Separate from any payments made as described in paragraph 3 hereof, Class A shall also pay to the Distributor a service fee at the annual rate of 0.25% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class A throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of Class A Shares, but shall exclude assets attributable to any other class of Shares of the Fund. In accordance with such terms as the Trustees may from time to time establish, the Distributor may use all or a portion of such service fees to compensate Investment Professionals for personal service and/or the maintenance of shareholder accounts, or for other services for which "service fees" lawfully may be paid in accordance with applicable rules and regulations.
5. The Fund presently pays, and will continue to pay, a management fee to Fidelity Management & Research Company (the "Adviser") pursuant to a management agreement between the Fund and the Adviser (the "Management Contract"). It is recognized that the Adviser may use its management fee revenue, as well as its past profits or its resources from any other source, to make payment to the Distributor with respect to any expenses incurred in connection with the distribution of Class A Shares, including the activities referred to in paragraph 2 hereof. To the extent that the payment of management fees by the Fund to the Adviser should be deemed to be indirect financing of any activity primarily intended to result in the sale of Class A Shares within the meaning of Rule 12b-1, then such payment shall be deemed to be authorized by this Plan.
6. This Plan shall become effective upon the approval by a vote of a majority of the Trustees of the Trust, including a majority of Trustees who are not "interested persons" of the Trust (as defined in the Act) and who have no direct or indirect financial interest in the operation of this Plan or in any agreement related to the Plan (the "Independent Trustees"), cast in person at a meeting called for the purpose of voting on this Plan.
7. This Plan shall, unless terminated as hereinafter provided, remain in effect until April 30, 2008, and from year to year thereafter; provided, however, that such continuance is subject to approval annually by a vote of a majority of the Trustees of the Trust, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on this Plan. This Plan may be amended at any time by the Board of Trustees, provided that (a) any amendment to increase materially the fee provided for in paragraphs 3 and 4 hereof shall be effective only upon approval by a vote of a majority of the outstanding voting securities of Class A and (b) any material amendment of this Plan shall be effective only upon approval in the manner provided in the first sentence of this paragraph 7.
8. This Plan may be terminated at any time, without the payment of any penalty, by vote of a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of Class A.
9. During the existence of this Plan, the Trust shall require the Adviser and/or the Distributor to provide the Trust, for review by the Trustees, and the Trustees shall review, at least quarterly, a written report of the amounts expended in connection with financing any activity primarily intended to result in the sale of shares of Class A (making estimates of such costs where necessary or desirable) and the purposes for which such expenditures were made.
10. This Plan does not require the Adviser or Distributor to perform any specific type or level of distribution activities or to incur any specific level of expenses for activities primarily intended to result in the sale of Class A Shares.
11. Consistent with the limitation of shareholder liability as set forth in the Trust's Declaration of Trust, obligation assumed by Class A pursuant to this Plan and any agreement related to this Plan shall be limited in all cases to Class A and its assets and shall not constitute an obligation of any shareholder of the Trust or of any other class of the Fund, series of the Trust or class of such series.
12. If any provision of the Plan shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Plan shall not be affected thereby.
Exhibit (m)(21)
FORM OF
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR ASSET MANAGER 70%
Class T Shares
1. This Distribution and Service Plan (the "Plan"), when effective in accordance with its terms, shall be the written plan contemplated by Rule 12b-1 under the Investment Company Act of 1940, as amended (the "Act") for the Class T shares of Fidelity Advisor Asset Manager 70% ("Class T"), a class of shares of Fidelity Advisor Asset Manager 70% (the "Fund"), a portfolio of Fidelity Charles Street Trust (the "Trust").
2. The Trust has entered into a General Distribution Agreement on behalf of the Fund with Fidelity Distributors Corporation (the "Distributor"), under which the Distributor uses all reasonable efforts, consistent with its other business, to secure purchasers of the Fund's shares of beneficial interest (the "Shares"). Such efforts may include, but neither are required to include nor are limited to, the following: (1) formulation and implementation of marketing and promotional activities, such as mail promotions and television, radio, newspaper, magazine and other mass media advertising; (2) preparation, printing and distribution of sales literature; (3) preparation, printing and distribution of prospectuses of the Fund and reports to recipients other than the existing shareholders of the Fund; (4) obtaining such information, analyses and reports with respect to marketing and promotional activities as the Distributor may, from time to time, deem advisable; (5) making payments to securities dealers and others engaged in the sale of Shares or who engage in shareholder support services ("Investment Professionals"); and (6) providing training, marketing and support to such dealers with respect to the sale of Shares.
3. In consideration for the services provided and the expenses incurred by the Distributor pursuant to the General Distribution Agreement and paragraph 2 hereof, all with respect to Class T Shares, Class T shall pay to the Distributor a fee at the annual rate of 0.50% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class T throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of the Fund's Class T Shares. The Distributor may use all or any portion of the distribution fee received pursuant to the Plan to compensate Investment Professionals who have engaged in the sale of Class T Shares or in shareholder support services with respect to Class T Shares pursuant to agreements with the Distributor, or to pay any of the expenses associated with other activities authorized under paragraph 2 hereof.
4. Separate from any payments made as described in paragraph 3 hereof, Class T shall also pay to the Distributor a service fee at the annual rate of 0.25% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class T throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of Class T Shares, but shall exclude assets attributable to any other class of Shares of the Fund. In accordance with such terms as the Trustees may from time to time establish, the Distributor may use all or a portion of such service fees to compensate Investment Professionals for personal service and/or the maintenance of shareholder accounts, or for other services for which "service fees" lawfully may be paid in accordance with applicable rules and regulations.
5. The Fund presently pays, and will continue to pay, a management fee to Fidelity Management & Research Company (the "Adviser") pursuant to a management agreement between the Fund and the Adviser (the "Management Contract"). It is recognized that the Adviser may use its management fee revenue, as well as its past profits or its resources from any other source, to make payment to the Distributor with respect to any expenses incurred in connection with the distribution of Class T Shares, including the activities referred to in paragraph 2 hereof. To the extent that the payment of management fees by the Fund to the Adviser should be deemed to be indirect financing of any activity primarily intended to result in the sale of Class T Shares within the meaning of Rule 12b-1, then such payment shall be deemed to be authorized by this Plan.
6. This Plan shall become effective upon the approval by a vote of a majority of the Trustees of the Trust, including a majority of Trustees who are not "interested persons" of the Trust (as defined in the Act) and who have no direct or indirect financial interest in the operation of this Plan or in any agreement related to the Plan (the "Independent Trustees"), cast in person at a meeting called for the purpose of voting on this Plan.
7. This Plan shall, unless terminated as hereinafter provided, remain in effect until April 30, 2008, and from year to year thereafter; provided, however, that such continuance is subject to approval annually by a vote of a majority of the Trustees of the Trust, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on this Plan. This Plan may be amended at any time by the Board of Trustees, provided that (a) any amendment to increase materially the fee provided for in paragraphs 3 and 4 hereof shall be effective only upon approval by a vote of a majority of the outstanding voting securities of Class T and (b) any material amendment of this Plan shall be effective only upon approval in the manner provided in the first sentence of this paragraph 7.
8. This Plan may be terminated at any time, without the payment of any penalty, by vote of a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of Class T.
9. During the existence of this Plan, the Trust shall require the Adviser and/or the Distributor to provide the Trust, for review by the Trustees, and the Trustees shall review, at least quarterly, a written report of the amounts expended in connection with financing any activity primarily intended to result in the sale of shares of Class T (making estimates of such costs where necessary or desirable) and the purposes for which such expenditures were made.
10. This Plan does not require the Adviser or Distributor to perform any specific type or level of distribution activities or to incur any specific level of expenses for activities primarily intended to result in the sale of Class T Shares.
11. Consistent with the limitation of shareholder liability as set forth in the Trust's Declaration of Trust, obligation assumed by Class T pursuant to this Plan and any agreement related to this Plan shall be limited in all cases to Class T and its assets and shall not constitute an obligation of any shareholder of the Trust or of any other class of the Fund, series of the Trust or class of such series.
12. If any provision of the Plan shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Plan shall not be affected thereby.
Exhibit (m)(22)
FORM OF
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR ASSET MANAGER 70%
Class B Shares
1. This Distribution and Service Plan (the "Plan"), when effective in accordance with its terms, shall be the written plan contemplated by Rule 12b-1 under the Investment Company Act of 1940, as amended (the "Act") for Class B shares of Fidelity Advisor Asset Manager 70% ("Class B"), a class of shares of Fidelity Advisor Asset Manager 70% (the "Fund"), a series of Fidelity Charles Street Trust (the "Trust").
2. The Trust has entered into a General Distribution Agreement on behalf of the Fund with Fidelity Distributors Corporation (the "Distributor") under which the Distributor uses all reasonable efforts, consistent with its other business, to secure purchasers of the Fund's shares of beneficial interest (the "Shares"). Such efforts may include, but neither are required to include nor are limited to, the following: (1) formulation and implementation of marketing and promotional activities, such as mail promotions and television, radio, newspaper, magazine and other mass media advertising; (2) preparation, printing and distribution of sales literature; (3) preparation, printing and distribution of prospectuses of the Fund and reports to recipients other than existing shareholders of the Fund; (4) obtaining such information, analyses and reports with respect to marketing and promotional activities as the Distributor may, from time to time, deem advisable; (5) making payments to securities dealers and others engaged in the sale of Shares or in shareholder support services ("Investment Professionals"); and (6) providing training, marketing and support to Investment Professionals with respect to the sale of Shares.
3. In accordance with such terms as the Trustees may, from time to time establish, and in conjunction with its services under the General Distribution Agreement with respect to Class B Shares, the Distributor is hereby expressly authorized to make payments to Investment Professionals in connection with the sale of Class B Shares. Such payments may be paid as a percentage of the dollar amount of purchases of Class B Shares attributable to a particular Investment Professional, or may take such other form as may be approved by the Trustees.
4. In consideration of the services provided and the expenses incurred by the Distributor pursuant to the General Distribution Agreement and paragraphs 2 and 3 hereof, all with respect to Class B Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee at the annual rate of 0.75% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class B throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of Class B Shares, but shall exclude assets attributable to any other class of Shares of the Fund. The Distributor may, but shall not be required to, use all or any portion of the distribution fee received pursuant to the Plan to compensate Investment Professionals who have engaged in the sale of Class B Shares or in shareholder support services with respect to Class B Shares pursuant to agreements with the Distributor, or to pay any of the expenses associated with other activities authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in accordance with such terms as the Trustees may from time to time establish, receive all or a portion of any sales charges, including contingent deferred sales charges, which may be imposed upon the sale or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4 hereof, Class B shall also pay to the Distributor a service fee at the annual rate of 0.25% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class B throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of Class B Shares, but shall exclude assets attributable to any other class of Shares of the Fund. In accordance with such terms as the Trustees may from time to time establish, the Distributor may use all or a portion of such service fees to compensate Investment Professionals for personal service and/or the maintenance of shareholder accounts, or for other services for which "service fees" lawfully may be paid in accordance with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management fee to Fidelity Management & Research Company (the "Adviser") pursuant to a management agreement between the Fund and the Adviser (the "Management Contract"). It is recognized that the Adviser may use its management fee revenue, as well as its past profits or its resources from any other source, to make payment to the Distributor with respect to any expenses incurred in connection with the distribution of Class B Shares, including the activities referred to in paragraphs 2 and 3 hereof. To the extent that the payment of management fees by the Fund to the Adviser should be deemed to be indirect financing of any activity primarily intended to result in the sale of Class B Shares within the meaning of Rule 12b-1, then such payment shall be deemed to be authorized by this Plan.
7. This Plan shall become effective upon the approval by a vote of a majority of the Trustees of the Trust, including a majority of Trustees who are not "interested persons" of the Trust (as defined in the Act) and who have no direct or indirect financial interest in the operation of the Plan or in any agreement related to the Plan (the "Independent Trustees"), cast in person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided, remain in effect until April 30, 2008, and from year to year thereafter; provided, however, that such continuance is subject to approval annually by a vote of a majority of the Trustees of the Trust, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on this Plan. This Plan may be amended at any time by the Board of Trustees, provided that (a) any amendment to increase materially the fees provided for in paragraphs 4 and 5 hereof shall be effective only upon approval by a vote of a majority of the outstanding voting securities of Class B and (b) any material amendment of this Plan shall be effective only upon approval in the manner provided in the first sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of any penalty, by vote of a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the Adviser and/or the Distributor to provide the Trust, for review by the Trustees, and the Trustees shall review, at least quarterly, a written report of the amounts expended in connection with financing any activity primarily intended to result in the sale of Class B Shares (making estimates of such costs where necessary or desirable) and the purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform any specific type or level of distribution activities or to incur any specific level of expenses for activities primarily intended to result in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set forth in the Trust's Declaration of Trust, any obligation assumed by Class B pursuant to this Plan and any agreement related to this Plan shall be limited in all cases to Class B and its assets and shall not constitute an obligation of any shareholder of the Trust or of any other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Plan shall not be affected thereby.
Exhibit (m)(23)
FORM OF
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR ASSET MANAGER 70%
Class C Shares
1. This Distribution and Service Plan (the "Plan"), when effective in accordance with its terms, shall be the written plan contemplated by Rule 12b-1 under the Investment Company Act of 1940, as amended (the "Act"), for Class C Shares of Fidelity Advisor Asset Manager 70% ("Class C"), a class of shares of Fidelity Advisor Asset Manager 70% (the "Fund"), a series of Fidelity Charles Street Trust (the "Trust").
2. The Trust has entered into a General Distribution Agreement on behalf of the Fund with Fidelity Distributors Corporation (the "Distributor") under which the Distributor uses all reasonable efforts, consistent with its other business, to secure purchasers of the Fund's shares of beneficial interest (the "Shares"). Such efforts may include, but neither are required to include nor are limited to, the following: (1) formulation and implementation of marketing and promotional activities, such as mail promotions and television, radio, newspaper, magazine and other mass media advertising; (2) preparation, printing and distribution of sales literature; (3) preparation, printing and distribution of prospectuses of the Fund and reports to recipients other than existing shareholders of the Fund; (4) obtaining such information, analyses and reports with respect to marketing and promotional activities as the Distributor may, from time to time, deem advisable; (5) making payments to securities dealers and others engaged in the sale of Shares or in shareholder support services ("Investment Professionals"); and (6) providing training, marketing and support to Investment Professionals with respect to the sale of Shares.
3. In accordance with such terms as the Trustees may, from time to time establish, and in conjunction with its services under the General Distribution Agreement with respect to Class C Shares, the Distributor is hereby expressly authorized to make payments to Investment Professionals in connection with the sale of Class C Shares. Such payments may be paid as a percentage of the dollar amount of purchases of Class C Shares attributable to a particular Investment Professional, or may take such other form as may be approved by the Trustees.
4. In consideration of the services provided and the expenses incurred by the Distributor pursuant to the General Distribution Agreement and paragraphs 2 and 3 hereof, all with respect to Class C Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee at the annual rate of 0.75% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class C throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of Class C Shares, but shall exclude assets attributable to any other class of Shares of the Fund. The Distributor may, but shall not be required to, use all or any portion of the distribution fee received pursuant to the Plan to compensate Investment Professionals who have engaged in the sale of Class C Shares or in shareholder support services with respect to Class C Shares pursuant to agreements with the Distributor, or to pay any of the expenses associated with other activities authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in accordance with such terms as the Trustees may from time to time establish, receive all or a portion of any sales charges, including contingent deferred sales charges, which may be imposed upon the sale or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4 hereof, Class C shall also pay to the Distributor a service fee at the annual rate of 0.25% (or such lesser amount as the Trustees may, from time to time, determine) of the average daily net assets of Class C throughout the month. The determination of daily net assets shall be made at the close of business each day throughout the month and computed in the manner specified in the Fund's then current Prospectus for the determination of the net asset value of Class C Shares, but shall exclude assets attributable to any other class of Shares of the Fund. In accordance with such terms as the Trustees may from time to time establish, the Distributor may use all or a portion of such service fees to compensate Investment Professionals for personal service and/or the maintenance of shareholder accounts, or for other services for which "service fees" lawfully may be paid in accordance with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management fee to Fidelity Management & Research Company (the "Adviser") pursuant to a management agreement between the Fund and the Adviser (the "Management Contract"). It is recognized that the Adviser may use its management fee revenue, as well as its past profits or its resources from any other source, to make payment to the Distributor with respect to any expenses incurred in connection with the distribution of Class C Shares, including the activities referred to in paragraphs 2 and 3 hereof. To the extent that the payment of management fees by the Fund to the Adviser should be deemed to be indirect financing of any activity primarily intended to result in the sale of Class C Shares within the meaning of Rule 12b-1, then such payment shall be deemed to be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a majority of the Trustees of the Trust, including a majority of Trustees who are not "interested persons" of the Trust (as defined in the Act) and who have no direct or indirect financial interest in the operation of the Plan or in any agreement related to the Plan (the "Independent Trustees"), cast in person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided, remain in effect until April 30, 2008, and from year to year thereafter; provided, however, that such continuance is subject to approval annually by a vote of a majority of the Trustees of the Trust, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on this Plan. This Plan may be amended at any time by the Board of Trustees, provided that (a) any amendment to increase materially the fees provided for in paragraphs 4 and 5 hereof shall be effective only upon approval by a vote of a majority of the outstanding voting securities of Class C and (b) any material amendment of this Plan shall be effective only upon approval in the manner provided in the first sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of any penalty, by vote of a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the Adviser and/or the Distributor to provide the Trust, for review by the Trustees, and the Trustees shall review, at least quarterly, a written report of the amounts expended in connection with financing any activity primarily intended to result in the sale of Class C Shares (making estimates of such costs where necessary or desirable) and the purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform any specific type or level of distribution activities or to incur any specific level of expenses for activities primarily intended to result in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set forth in the Trust's Declaration of Trust, any obligation assumed by Class C pursuant to this Plan and any agreement related to this Plan shall be limited in all cases to Class C and its assets and shall not constitute an obligation of any shareholder of the Trust or of any other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Plan shall not be affected thereby.
Exhibit (m)(24)
FORM OF
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR ASSET MANAGER 70%
Institutional Class Shares
1. This Distribution and Service Plan (the "Plan"), when effective in accordance with its terms, shall be the written plan contemplated by Rule 12b-1 under the Investment Company Act of 1940, as amended (the "Act") for Institutional Class Shares of Fidelity Advisor Asset Manager 70% ("Institutional Class"), a class of shares of Fidelity Advisor Asset Manager 70% (the "Fund"), a series of Fidelity Charles Street Trust (the "Trust").
2. The Trust has entered into a General Distribution Agreement on behalf of the Fund with Fidelity Distributors Corporation (the "Distributor") under which the Distributor uses all reasonable efforts, consistent with its other business, to secure purchasers for the Fund's shares of beneficial interest ("Shares"). Under the agreement, the Distributor pays the expenses of printing and distributing any prospectuses, reports and other literature used by the Distributor, advertising, and other promotional activities in connection with the offering of Shares of the Fund for sale to the public. It is recognized that Fidelity Management & Research Company (the "Adviser") may use its management fee revenues as well as past profits or its resources from any other source, to make payment to the Distributor with respect to any expenses incurred in connection with the distribution of Institutional Class Shares, including the activities referred to above.
3. The Adviser directly, or through the Distributor, may, subject to the approval of the Trustees, make payments to securities dealers and other third parties who engage in the sale of Institutional Class Shares or who render shareholder support services, including but not limited to providing office space, equipment and telephone facilities, answering routine inquiries regarding the Fund, processing shareholder transactions and providing such other shareholder services as the Trust may reasonably request.
4. The Institutional Class will not make separate payments as a result of this Plan to the Adviser, Distributor or any other party, it being recognized that the Fund presently pays, and will continue to pay, a management fee to the Adviser. To the extent that any payments made by the Fund to the Adviser, including payment of management fees, should be deemed to be indirect financing of any activity primarily intended to result in the sale of Institutional Class Shares within the meaning of Rule 12b-1, then such payments shall be deemed to be authorized by this Plan.
5. This Plan shall become effective upon the approval by a vote of a majority of the Trustees of the Trust, including a majority of Trustees who are not "interested persons" of the Trust (as defined in the Act) and who have no direct or indirect financial interest in the operation of this Plan or in any agreement related to the Plan (the "Independent Trustees"), cast in person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain in effect until April 30, 2000, and from year to year thereafter, provided, however, that such continuance is subject to approval annually by a vote of a majority of the Trustees of the Trust, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on this Plan. This Plan may be amended at any time by the Board of Trustees, provided that (a) any amendment to authorize direct payments by the Institutional Class to finance any activity primarily intended to result in the sale of Institutional Class Shares, or to increase materially the amount spent by the Institutional Class for distribution shall be effective only upon approval by a vote of a majority of the outstanding voting securities of the Institutional Class, in the case of this Plan, or upon approval by a vote of a majority of the outstanding voting securities of the Fund, in the case of the Management Contract, and (b) any material amendments of this Plan shall be effective only upon approval in the manner provided in the first sentence in this paragraph 6.
7. This Plan may be terminated at any time, without the payment of any penalty, by vote of a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Institutional Class.
8. During the existence of this Plan, the Trust shall require the Adviser and/or Distributor to provide the Trust, for review by the Trustees, and the Trustees shall review, at least quarterly, a written report of the amounts expended in connection with financing any activity primarily intended to result in the sale of Institutional Class Shares (making estimates of such costs where necessary or desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform any specific type or level of distribution activities or to incur any specific level of expenses for activities primarily intended to result in the sale of Institutional Class Shares.
10. Consistent with the limitation of shareholder liability as set forth in the Trust's Declaration of Trust, any obligation assumed by Institutional Class pursuant to this Plan and any agreement related to this Plan shall be limited in all cases to Institutional Class and its assets and shall not constitute an obligation of any shareholder of the Trust or of any other class of the Fund, series of the Trust or class of such series.
11. If any provision of this Plan shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Plan shall not be affected thereby.
Exhibit (m)(25)
FORM OF
DISTRIBUTION AND SERVICE PLAN
of Fidelity Charles Street Trust:
Fidelity Global Balanced Fund
1. This Distribution and Service Plan (the "Plan"), when effective in accordance with its terms, shall be the written plan contemplated by Rule 12b-1 under the Investment Company Act of 1940 (the "Act") of Fidelity Global Balanced Fund (the "Portfolio"), a series of shares of Fidelity Charles Street Trust (the "Trust").
2. The Fund has entered into a General Distribution Agreement with respect to the Portfolio with Fidelity Distributors Corporation (the "Distributor"), a wholly-owned subsidiary of Fidelity Management & Research Company (the "Adviser"), under which the Distributor uses all reasonable efforts, consistent with its other business, to secure purchasers for the Portfolio's shares of beneficial interest ("shares"). Under the agreement, the Distributor pays the expenses of printing and distributing any prospectuses, reports and other literature used by the Distributor, advertising, and other promotional activities in connection with the offering of shares of the Portfolio for sale to the public. It is recognized that the Adviser may use its management fee revenues as well as past profits or its resources from any other source, to make payment to the Distributor with respect to any expenses incurred in connection with the distribution of Portfolio shares, including the activities referred to above.
3. The Adviser directly, or through the Distributor, may, subject to the approval of the Trustees, make payments to securities dealers and other third parties who engage in the sale of shares or who render shareholder support services, including but not limited to providing office space, equipment and telephone facilities, answering routine inquiries regarding the Portfolio, processing shareholder transactions and providing such other shareholder services as the Fund may reasonably request.
4. The Portfolio will not make separate payments as a result of this Plan to the Adviser, Distributor or any other party, it being recognized that the Portfolio presently pays, and will continue to pay, a management fee to the Adviser. To the extent that any payments made by the Portfolio to the Adviser, including payment of management fees, should be deemed to be indirect financing of any activity primarily intended to result in the sale of shares of the Portfolio within the context of Rule 12b-1 under the Act, then such payments shall be deemed to be authorized by this Plan.
5. This Plan shall become effective upon the first business day of the month following approval by a vote of at least a "majority of the outstanding voting securities of the Portfolio" (as defined in the Act), the plan having been approved by a vote of a majority of the Trustees of the Fund, including a majority of Trustees who are not "interested persons" of the Fund (as defined in the Act) and who have no direct or indirect financial interest in the operation of this Plan or in any agreements related to this Plan (the "Independent Trustees"), cast in person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain in effect from the date specified above until April 30, 2008 and from year to year thereafter, provided, however, that such continuance is subject to approval annually by a vote of a majority of the Trustees of the Fund, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on this Plan. This Plan may be amended at any time by the Board of Trustees, provided that (a) any amendment to authorize direct payments by the Portfolio to finance any activity primarily intended to result in the sale of shares of the Portfolio, or to increase materially the amount spent by the Portfolio for distribution shall be effective only upon approval by a vote of a majority of the outstanding voting securities of the Portfolio, and (b) any material amendments of this Plan shall be effective only upon approval in the manner provided in the first sentence in this paragraph.
7. This Plan may be terminated at any time, without the payment of any penalty, by vote of a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Portfolio.
8. During the existence of this Plan, the Fund shall require the Adviser and/or Distributor to provide the Fund, for review by the Fund's Board of Trustees, and the Trustees shall review, at least quarterly, a written report of the amounts expended in connection with financing any activity primarily intended to result in the sale of shares of the Portfolio (making estimates of such costs where necessary or desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform any specific type or level of distribution activities or to incur any specific level of expenses for activities primarily intended to result in the sale of shares of the Portfolio.
10. Consistent with the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document, any obligations assumed by the Portfolio pursuant to this Plan and any agreements related to this Plan shall be limited in all cases to the Portfolio and its assets, and shall not constitute obligations of any other series of shares of the Fund.
11. If any provision of this Plan shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Plan shall not be affected thereby.
Exhibit (n)(3)
FORM OF
SCHEDULE I, DATED ____________, TO MULTIPLE CLASS OF SHARES PLAN FOR
FIDELITY ADVISOR FUNDS, DATED APRIL 20, 2006
FIDELITY ADVISOR SERIES I
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Balanced Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Dividend Growth Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Dynamic Capital Appreciation Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Equity Growth Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Equity Income Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Equity Value Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Fifty Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Floating Rate High Income Fund: |
|
|
|
Fidelity Floating Rate High Income Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.55 |
0.15 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Growth & Income Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Growth |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor High Income Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor High Income Advantage Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Large Cap Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Leveraged |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Mid Cap Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Mid Cap II Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Small Cap Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Strategic Growth Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Value Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Value Strategies Fund: |
|
|
|
Fidelity Value Strategies Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY ADVISOR SERIES II
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Intermediate Bond Fund: |
|
|
|
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Mortgage Securities Fund: |
|
|
|
Fidelity Mortgage Securities Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Municipal Income Fund: |
|
|
|
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Short-Fixed Income Fund: |
|
|
|
Class A** |
front-end |
0.00 |
0.15 |
Class T*** |
front-end |
0.00 |
0.15 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Strategic Income Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY ADVISOR SERIES VII
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Biotechnology Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Communications Equipment Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Consumer Discretionary Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Electronics Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Energy Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Financial Services Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Health Care Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Industrials Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Real Estate Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Technology Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Utilities Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY ADVISOR SERIES VIII
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Diversified |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Emerging Asia Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Emerging Markets Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Emerging Markets Income Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Europe Capital |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Global Capital |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor International |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Japan Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Korea Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Latin America Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Overseas Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Value Leaders Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY ABERDEEN STREET TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Freedom Income Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2005 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2010 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2015 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2020 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2025 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Freedom 2030 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2035 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2040 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2045 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Freedom 2050 Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY BEACON STREET TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE (as a percentage of average net assets) |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Tax Managed Stock Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY CALIFORNIA MUNICIPAL TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity California |
|
|
|
Fidelity California Municipal Income Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY CAPITAL TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Small Cap Independence Fund: |
|
|
|
Fidelity Small Cap Independence Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY CHARLES STREET TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Asset Manager 20%: |
|
|
|
Fidelity Asset Manager 20% |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Asset Manager 50%: |
|
|
|
Fidelity Asset Manager 50% |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Advisor Asset Manager 70%: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Asset Manager 85%: |
|
|
|
Fidelity Asset Manager 85% |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY CONTRAFUND
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE (as a percentage of average net assets) |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor New Insights Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY DEVONSHIRE TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE (as a percentage of average net assets) |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Large Cap Growth Fund: |
|
|
|
Fidelity Large Cap Growth Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Large Cap Value Fund: |
|
|
|
Fidelity Large Cap Value Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Mid Cap Growth Fund: |
|
|
|
Fidelity Mid Cap Growth Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Mid Cap Value Fund: |
|
|
|
Fidelity Mid Cap Value Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY FIXED-INCOME TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Inflation-Protected Bond Fund: |
|
|
|
Fidelity Inflation-Protected Bond Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Investment Grade Bond Fund: |
|
|
|
Fidelity Investment Grade Bond Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Strategic Dividend & Income Fund: |
|
|
|
Fidelity Strategic Dividend & Income Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Strategic Real Return Fund: |
|
|
|
Fidelity Strategic Real Return Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY INCOME FUND
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Government Income Fund: |
|
|
|
Fidelity Government Income Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Total Bond Fund: |
|
|
|
Fidelity Total Bond Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Ultra-Short Bond Fund: |
|
|
|
Fidelity Ultra-Short Bond Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.15 |
Class T*** |
front-end |
0.00 |
0.15 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY INVESTMENT TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Canada Fund: |
|
|
|
Fidelity Canada Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity International Discovery Fund: |
|
|
|
Fidelity International Discovery Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity International Small Cap Fund: |
|
|
|
Fidelity International Small Cap Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity International Small Cap Opportunities Fund: |
|
|
|
Fidelity International Small Cap Opportunities Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity International Value Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY MUNICIPAL TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Short-Intermediate Municipal Income Fund: |
|
|
|
Fidelity Short-Intermediate Municipal Income Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY NEW YORK MUNICIPAL TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity New York Municipal Income Fund: |
|
|
|
Fidelity New York Municipal Income Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
FIDELITY SCHOOL STREET TRUST
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Fidelity Intermediate Municipal Income Fund: |
|
|
|
Fidelity Intermediate Municipal Income Fund |
none |
none |
none |
Class A** |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.00 |
0.25 |
Class B |
contingent deferred |
0.65 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
FIDELITY SECURITIES FUND
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Advisor Aggressive Growth Fund: |
|
|
|
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity International Real Estate Fund: |
|
|
|
Fidelity International Real Estate Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Small Cap Growth Fund: |
|
|
|
Fidelity Small Cap Growth Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Small Cap Opportunities Fund: |
|
|
|
Fidelity Small Cap Opportunities Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Fidelity Small Cap Value Fund: |
|
|
|
Fidelity Small Cap Value Fund |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
FIDELITY SELECT PORTFOLIOS
FUND/CLASS |
SALES CHARGE |
DISTRIBUTION FEE |
SHAREHOLDER SERVICE FEE (as a percentage of |
Consumer Staples Portfolio: |
|
|
|
Consumer Staples |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Gold Portfolio: |
|
|
|
Gold |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Materials Portfolio: |
|
|
|
Materials |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
Telecommunications Portfolio: |
|
|
|
Telecommunications |
none |
none |
none |
Class A* |
front-end |
0.00 |
0.25 |
Class T*** |
front-end |
0.25 |
0.25 |
Class B |
contingent deferred |
0.75 |
0.25 |
Class C |
contingent deferred |
0.75 |
0.25 |
Institutional Class |
none |
none |
none |
______________________________________________________________
*Class A purchases of $1 million or more may be subject, upon redemption, to a contingent deferred sales charge that declines over 2 years from 1.00% to 0%.
**Class A purchases of $1 million or more may be subject, upon redemption, to a contingent deferred sales charge that declines over 2 years from 0.75% to 0%.
***Class T purchases of $1 million or more may be subject, upon redemption, to a contingent deferred sales charge of 0.25% if redeemed less than one year after purchase.
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