Fidelity Absorbing Capital One Funds

Capital One Funds’ board has approved a transfer of assets from each of its six fund portfolios to comparable funds at Fidelity, according to a filing with the Securities and Exchange Commission. The agreement, pending shareholder approval, would go into effect in October.

If approved, the shareholders of each Capital One fund would become shareholders of corresponding class of Fidelity funds. For example, those invested in Capital One’s Capital Appreciation Fundwould switch over to an equivalent fund, such as Fidelity’s Advisor Growth & Income Fund.

In the coming weeks shareholders will receive an updated prospectus and combined proxy statement that provides them with detailed information on this new proposal.A vote is expected to take place at the third quarter shareholder meeting later this year.

At the same meeting, the board also approved a plan to liquidate the Capital One Louisiana Municipal Income Fund.If shareholders also approve this, the Louisiana fund would be liquidated during the third quarter of 2008.