Unitholders have voted in favour of proposals to change the investment objectives of Fidelity Income Trust Fund and Fidelity Monthly High Income Fund, Fidelity Investments Canada ULC said Thursday.

These proposals are the result of expected changes to the tax rules for income trusts that are scheduled to take effect on Jan. 1, 2011.

Fidelity will be filing amendments to the Simplified Prospectus of each of these funds to reflect the new investment objectives and changes to investment strategies. The new investment objectives, along with new names for the funds, will be effective July 19. Fidelity Income Trust Fund will be renamed Fidelity Dividend Plus Fund. Fidelity Monthly High Income Fund will be renamed Fidelity Income Allocation Fund.

As a consequence of the changes in the investment objective of the Fidelity Income Trust Fund, Fidelity will also file prospectus amendments for Fidelity Monthly Income Fund, the Fidelity Dividend Fund, and the Fidelity Dividend Class. Each of these funds invest approximately 20% of their assets in the Fidelity Income Trust Fund. The funds will continue to invest in Fidelity Dividend Plus Fund under its new investment objective in similar proportions. The change in the investment strategies reflects the now broader investment objective of the Fidelity Dividend Plus Fund.

New management and trailer fees for Fidelity Income Allocation Fund

Fidelity also announced that it will be lowering the management and trailer fees of the Fidelity Income Allocation Fund to reflect its higher exposure to fixed income securities under its new investment objective.

The management fee for the Series B/S5/S8 ISC will change to 1.40% from 1.70%. The management fee for Series A/T5/T8/DSC/LL/LL2 will change to 1.55% from 1.85%. The management fee for Series F/F5/F8 will change to 0.65% from 0.70%.

The trailer fee for Series B/S8/ISC and Series A/T5/T8/LL will change from to 0.75% from 1.00% For Series A/T5/T8/DSC/LL2, it will change to 0.375% from 0.50%. Trailer fees are included in the management fees cited above.

These changes to fees are effective July 19, 2010.

IE