Fidelity's Excessive Trading Policy
Fidelity has long discouraged excessive trading by mutual fund investors. Excessive trading can be expensive and burdensome for long-term shareholders because it can:
Historically, we have used a variety of tools to discourage excessive trading in Fidelity funds, including fair-value pricing, redemption fees and the monitoring of roundtrip transactions.
In 2004, the Securities and Exchange Commission announced that it would require all funds to add more language to their prospectuses about their excessive trading policies. We viewed this as an opportunity to review and further strengthen its policies and procedures around excessive trading. As a result, we adopted new policies concerning excessive trading, effective December 2004.Top
We monitor the number of roundtrip transactions in shareholder accounts. A roundtrip is a mutual fund purchase or exchange purchase followed by a sell or exchange sell within 30 calendar days in the same fund and account. It is important to remember that share aging FIFO (First In First Out) is not considered when buy and sell transactions are evaluated for roundtrips.Top
Fund Level Blocks
Shareholders that place a second roundtrip transaction in the same fund within a 90-day period will be blocked from making additional purchases and exchange purchases into that fund for 85 days. This block will be applied to other accounts under the same registration.
All accounts affected by the fund level block will be monitored for an additional 12 months following the expiration of the block. If another roundtrip occurs in that fund in any of those accounts during this time, another fund level block will be applied for 85 days.Top
Shareholders with four roundtrip transactions in the same account across all Fidelity funds within a rolling 12-month period will be blocked from making additional purchases and exchange purchases into any Fidelity Fund (other than Fidelity money market funds) for 85 days. This block will be applied to all accounts under the same social security number (the "Affected Accounts").
All Affected Accounts will be monitored for an additional 12 months following the expiration of the block. If another roundtrip occurs in any of the Affected Accounts, another block will be applied to those accounts for at least another 85 days.
We believe that these trading policies along with our continued use of fair-value pricing and redemption fees (when appropriate) will help protect investors from the costs associated with excessive or short-term trading and benefit our funds' shareholders.
While these policies are designed to discourage excessive or short-term trading, there is no assurance that these policies will be effective, or will successfully detect or deter market timing.
This is a summary of only Fidelity's fund policies; each fund company has their own excessive trading policy stated in their prospectuses. We invite you to read a more detailed description about the Fidelity Funds' policies in the Buying and Selling section of the Fund's prospectus at http://www.fidelity.com.