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We understand that recent market volatility may cause you to have questions about the protection of your investments. Fidelity is participating in asset protection programs that can assist with safeguarding the security of your investments. Fidelity also offers certain products that are eligible for insurance through the Federal Deposit Insurance Corporation (FDIC).
Assets held in your Fidelity Brokerage Account:Fidelity’s brokerage businesses (Fidelity Brokerage Services LLC and National Financial Services LLC (NFS)) are members of the Securities Investor Protection Corporation (SIPC), and brokerage accounts maintained with Fidelity are protected by SIPC, which protects brokerage accounts of each customer when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing from accounts. SIPC protects brokerage accounts of each customer up to $500,000 in securities, including a limit of $250,000 on claims for cash. Money market funds held in a brokerage account are considered securities. For more information on SIPC coverage, please review the brochure “How SIPC Protects You” available for free download at www.sipc.org In addition to SIPC protection, Fidelity, through NFS, provides its brokerage customers with additional "excess of SIPC" coverage from Lloyd's of London together with other insurers1. The excess of SIPC coverage would only be used when SIPC coverage is exhausted. Like SIPC, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available through Fidelity's excess of SIPC policy is $1 billion. Within Fidelity's excess of SIPC coverage, there is no per account dollar limit on coverage of securities, but there is a per account limit of $1.9 million on coverage of cash awaiting investment. This is the maximum excess of SIPC protection currently available in the brokerage industry. Both SIPC and Excess of SIPC coverage is limited to securities held in brokerage positions, including mutual funds if held in your brokerage account and securities held in book entry form. Neither SIPC nor the additional coverage protects against loss of market value of the securities. Note: Certain assets are not eligible for SIPC protection. Among the assets typically not eligible for SIPC protection are commodity futures contracts, precious metals, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933. In accordance with the SEC rule 15c3-3, often known as the “Customer Protection Rule”, Fidelity protects client securities that are fully paid for by segregating them and ensuring that they are not used for any other purpose, such as for loans to investors or institutions, corporate investment purposes, and spending. This practice helps ensure that customers have access to these securities at all times. Customer assets may still be subject to market risk and volatility. Assets in Fidelity's Money Market Funds:As planned, the U.S. Treasury Department Temporary Guarantee Program for Money Market Funds expired on September 18, 2009. Fidelity's general purpose and tax-exempt money market funds had participated in the program since its inception in September 2008. However, Fidelity's money market funds that invest primarily in U.S. Government and Treasury securities had not participated in the program since April 30, 2009. Under the temporary program, the U.S. Treasury guaranteed the share price of any publicly offered eligible money market mutual fund that applied for and paid a fee to participate in the program. Throughout its duration, the coverage applied only to investments held in participating money market funds as of the close of business on September 19, 2008. Fidelity money market funds continue to invest in high-quality securities, and our customers continue to have full access to their investments any time they wish. Most importantly, we have been proactive in keeping our money market funds safe and in protecting the $1.00 net asset value, which has always been our #1 objective in managing these funds. FDIC eligible investments offered through Fidelity:Deposits to the core position of a Fidelity® Cash Management Account that have been swept to a participating program bank are eligible for FDIC insurance coverage. Deposits to the core position of certain IRAs and Fidelity Health Savings Accounts with the FDIC-Insured Deposit Sweep core position are eligible for FDIC insurance coverage as well. Broker CDs, which are issued by an FDIC-insured institution and held in Fidelity brokerage accounts, are also eligible for FDIC insurance. The coverage maximum for IRAs and brokerage accounts is $250,000 per bank. All FDIC insurance coverage is in accordance with FDIC rules. For further information, please visit www.fdic.gov Assets in Fidelity's Mutual Funds:If you own Fidelity mutual fund shares directly, not through a brokerage account, your investment is in assets that are property of the funds, not Fidelity. The funds and Fidelity are separate and distinct legal entities. The assets of each Fidelity fund are held by its custodian separate from any other assets belonging to Fidelity or any other fund. Neither Fidelity nor its creditors may access the funds’ assets to satisfy financial obligations of Fidelity. While SIPC and Lloyd’s of London protection applies to brokerage accounts, it does not apply to directly–held mutual fund accounts. Assets in your Fidelity Workplace Retirement Accounts including 401(k)s and 403(b)s:As a provider of record keeping services for retirement plans, Fidelity’s services are governed by federal laws. These laws generally requires retirement plan assets to be held in trust, segregated from the employer’ or record keeper’s assets. In most situations, when assets are held in trust, they are protected from creditors in the event that an employer or record keeper has financial problems. How Fidelity can helpWe are committed to providing the help you need to stay on track with your financial goals. Knowledgeable Fidelity representatives are available 24/7 to answer questions or discuss your account. Call us at 1–800–FIDELITY or stop into a Fidelity Investor Center near you. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. |
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