Investments into the FF II Swiss Franc Currency Fund Suspended

We are in a historically low interest environment and the rates now available for Swiss Franc investments are very low. The yield of the fund is closely linked to the cash interest rates available in the market and this has led to the reduction of the fund’s yield.

As with any investment fund, there are expenses involved in running the Fidelity Funds II – Swiss Franc Currency Fund.  Currently the fees and expenses are in excess of the income being received by the fund.  However, to the extent possible, the fund’s yield is being maintained at a positive rate to the benefit of existing shareholders as Fidelity is currently bearing a number of the fees and expenses of the fund.  If the fund was to receive further inflows at this time, the cost of bearing fund fees and expenses could become more difficult to maintain. Accordingly, this could result in Fidelity being unable to continue to take measures in support of the fund’s yield.

The Fund is likely to stay closed to new investments until it is no longer in a position where the expenses exceed the income being generated from the fund’s investments. This is likely to continue until Swiss Franc interest rates begin to rise again. Fidelity will continue to monitor the situation and updates on the fund’s status regarding new subscriptions will appear on this web site.

If you have any questions regarding this suspension please contact your usual Fidelity representative.