Lateral - Meaghan's View

This document is intended for the general information of financial advisers only. Fidelity does not authorise distribution to retail investors.

The turmoil surrounding Centro Properties Group in December reinforced how we entered the New Year more cautious about the outlook for financial markets and economies than a year ago. Recent heightened volatility creates fresh challenges for advisers and fund managers.

During the good times of the past four years, many clients were happy with their absolute returns. The added bonus of 20% plus annual returns was that they helped reduce the focus on fees. This is sure to change during today’s turbulent times.

Financial advisers who have maintained their client relationships during the good times will be better placed to retain their clients and assets over volatile periods. Those financial advisers who persist with regular client contact and deliver appropriate client education will have set themselves up well if indeed tough times lie ahead.

At Fidelity we try to manage our relationship with advisers in the same way. We believe in regular contact with our clients during good times and bad. We are here to help our clients keep up with investment matters and, more importantly, to help them educate their clients on investment principles.

In 2008, for instance, we are continuing to expand our new web-based volatility tool (fidelitytools.com.au), an interactive website designed to help financial advisers coach their clients on investment principles. Support data is updated at least every month.

We hope you enjoy the third issue of Lateral. We will do our best to help you prosper in 2008. We encourage feedback – please feel free to contact us with any suggested topics or improvements.

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All views expressed in this document are those of Fidelity and should not be construed as an offer or recommendation at any time. Unless otherwise stated, all data is sourced from Bloomberg.

Past performance is not indicative of future performance. The return of capital is not guaranteed.

Volatile times will expose fees