M&A - Fidelity Merrimack Street Trust

Form Type: CORRESP

Filing Date: 2025-02-04

Corporate Action: Merger

Type: Update

Accession Number: 000156256525000020

Filing Summary: On January 29, 2025, comments were received from Daniel Greenspan regarding Fidelity Merrimack Street Trust which includes the Fidelity Municipal Bond Index Fund and Fidelity Systematic Municipal Bond Index ETF. The correspondence confirms that the registration statement for the ETF will not be utilized for the sale of shares until the merger is finalized. Additionally, it was confirmed that no further disclosures are necessary under Item 8 of Form N-14, and the presented fees in the Annual Operating Expenses table are current. There is also a confirmation that the fund does not have an expense reimbursement arrangement at this time. The correspondence discusses the reasons for the proposed reorganization, highlighting the Board's determination that it is in the best interests of shareholders, without needing further revisions to these disclosures.

Form Type: N-14

Filing Date: 2025-01-03

Corporate Action: Merger

Type: New

Accession Number: 000113322825000086

Filing Summary: On January 3, 2025, Fidelity Merrimack Street Trust filed a registration statement under Form N-14 regarding the planned conversion of Fidelity® Municipal Bond Index Fund into an exchange-traded fund (ETF) named Fidelity® Systematic Municipal Bond Index ETF. The Board of Trustees approved the reorganization on September 19, 2024, stating that the conversion is in the best interest of shareholders and will not dilute their interests. Shareholders of the Fund will receive ETF shares equal to their vested value in the existing fund during the conversion, scheduled for April 4, 2025, which will be executed as a tax-free reorganization. The newly created ETF will follow a different index focusing on municipal bonds with improved risk-adjusted performance and liquidity, and it will enable benefits such as lower expenses and greater trading flexibility. Shareholders not wishing to participate can exchange or redeem their shares before the conversion date. The document outlines the management structure, addresses, and contact information for shareholder inquiries, emphasizing the lack of need for additional shareholder votes for the reorganization. Detailed comparisons of the ETF and mutual fund structures, potential risks, and shareholder actions that may impact tax liabilities were also included.