Index Investing with Fidelity - Product overview October 2021
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Index Investing with Fidelity
Product overview
October 2021
Not FDIC Insured May Lose Value No Bank Guarantee
For institutional use only.Index Investing with Fidelity 1. Overview 2. Investment Philosophy 3. Offerings 4. Equity and Specialty 5. Fixed Income 6. Index Fund Performance Summary 7. Securities Lending 8. Appendix 9. Important Information See Important Information for a discussion of performance data, some of the principal risks related to any of the investment strategies referred to in this presentation, and other information related to this presentation. 2 For institutional use only.
Why Fidelity for Index?
Broad Range Index Fund
Low of Market Management
Cost and Index Expertise
Exposures
Some of the most Fidelity’s lineup offers Fidelity is the second
competitively priced investors access to all largest index mutual
mutual funds and pools core asset class fund provider in the
in the industry. exposures as well as industry, with more than
more specialized indexes. 30 years of index fund
experience.*
*Based on $933 billion in index fund assets under management (AUM) as of 09/30/2021. Source: Morningstar.
3 For institutional use only.Fidelity Index Funds Investment Philosophy
Fidelity seeks to provide investors with low-cost portfolios that tightly track their benchmarks
by focusing on data integrity and employing state-of-the-art trading and risk management tools.
Tracking Risk Tools Securities
Error Management Lending
Work to achieve the Manage multiple risk Utilize state-of-the-art Employ securities
lowest possible factors relative to trading and liquidity lending policies that
tracking error benchmarks management tools seek to generate
revenue and benefit
investors
4 For institutional use only.Fidelity Index Mutual Fund Spectrum
Spanning all core asset classes
Fidelity offers a suite of index mutual funds that covers multiple asset classes
and market caps across domestic and international equity, fixed income, and real estate.
Domestic Equity International Equity Fixed Income
Advisor: Fidelity Investments Advisor: Fidelity Investments
Subadvisor: Geode Capital Management , LLC Subadvisor: Geode Capital Management , LLC Advisor: Fidelity Investments
• Fidelity 500 Index Fund • Fidelity Global ex U.S. Index Fund
• Fidelity Inflation-Protected Bond Index Fund
• Fidelity Extended Market Index Fund • Fidelity International Sustainability Index Fund
• Fidelity Intermediate Treasury Bond Index Fund
• Fidelity Total Market Index Fund • Fidelity Emerging Markets Index Fund
• Fidelity International Bond Index Fund
• Fidelity Large Cap Growth Index Fund • Fidelity International Index Fund
• Fidelity Long-Term Treasury Bond Index Fund
• Fidelity Large Cap Value Index Fund • Fidelity Total International Index Fund
• Fidelity Municipal Bond Index Fund
• Fidelity Mid Cap Index Fund
• Fidelity Short-Term Treasury Bond Index Fund
• Fidelity Mid Cap Growth Index Fund
• Fidelity Short-Term Bond Index Fund
• Fidelity Mid Cap Value Index Fund
• Fidelity Sustainability Bond Index Fund
• Fidelity Small Cap Index Fund
• Fidelity U.S. Bond Index Fund
• Fidelity Small Cap Growth Index Fund
• Fidelity Small Cap Value Index Fund
• Fidelity Nasdaq Composite Index Fund
• Fidelity U.S. Sustainability Index Fund
Specialty Asset Allocation
Advisor: Fidelity Investments Advisor: Fidelity Investments
Subadvisor: Geode Capital Management , LLC
• Fidelity Freedom Income Index Fund • Fidelity Freedom Index 2035 Fund
• Fidelity Real Estate Index Fund
• Fidelity Freedom Index 2005 Fund • Fidelity Freedom Index 2040 Fund
• Fidelity Freedom Index 2010 Fund • Fidelity Freedom Index 2045 Fund
• Fidelity Freedom Index 2015 Fund • Fidelity Freedom Index 2050 Fund
• Fidelity Freedom Index 2020 Fund • Fidelity Freedom Index 2055 Fund
• Fidelity Freedom Index 2025 Fund • Fidelity Freedom Index 2060 Fund
• Fidelity Freedom Index 2030 Fund • Fidelity Freedom Index 2065 Fund
• Fidelity Multi-Asset Index Fund
Fidelity Investments refers collectively to FMR LLC, a U.S. company, and its subsidiaries, including but not limited to Fidelity Management & Research Company (FMR Co.) and FIAM.
Geode Capital Management, LLC serves as the Subadvisor for the Fidelity Index Mutual Funds.
5 For institutional use only.Index Pools Offered through Fidelity
Spanning all core asset classes
Fidelity offers a full lineup of asset allocation and fixed income pools and also distributes a suite of equity and
international equity pools from investment manager Geode Capital Management Trust Company, LLC.
Domestic Equity International Equity Specialty
Investment and Portfolio Management Investment and Portfolio Management Investment and Portfolio Management
Geode Capital Management Trust Company, LLC Geode Capital Management Trust Company, LLC Geode Capital Management Trust Company, LLC
• SpartanSM 500 Index Pool • Spartan Global ex U.S. Index Pool • Spartan Real Estate Index Pool
• Spartan Extended Market Index Pool • Spartan Developed International Index Pool • Spartan Commodity Index Pool
• Spartan Total Market Index Pool • Spartan Emerging Markets Index Pool
• Spartan Large Cap Growth Index Pool • Spartan International Index Pool
• Spartan Large Cap Value Index Pool • Spartan Total International Index Pool
• Spartan Mid Cap Index Pool
• Spartan Small Cap Index Pool
Fixed Income Asset Allocation
Investment and Portfolio Management Investment and Portfolio Management
Fidelity Investments Fidelity Investments
• FIAM U.S. Bond Index Pool • FIAM Index Target Date Income Pool • FIAM Index Target Date 2030 Pool
• FIAM Intermediate Inflation Protected Index Pool • FIAM Index Target Date 2005 Pool • FIAM Index Target Date 2035 Pool
• FIAM Long US Treasury STRIPS Index Pool • FIAM Index Target Date 2010 Pool • FIAM Index Target Date 2040 Pool
• FIAM Index Target Date 2015 Pool • FIAM Index Target Date 2045 Pool
• FIAM Index Target Date 2020 Pool • FIAM Index Target Date 2050 Pool
• FIAM Index Target Date 2025 Pool • FIAM Index Target Date 2055 Pool
• FIAM Index Target Date 2060 Pool
• FIAM Index Target Date 2065 Pool
Geode Capital Management Trust Company, LLC is the investment manager for Spartan Index Pools.
Fidelity Institutional Asset Management Trust Company is the investment manager for the FIAM Pools.
Commingled pools are only available to eligible retirement plans.
6 For institutional use only.Equity and Specialty Index Investment Team For institutional use only.
Equity and Specialty Index Investment Team
Geode Capital Management
Equity Index Investment Team
Portfolio Management Experience Investment Approach
• Subadvisor to Fidelity’s Index funds and manager of proprietary pools Employ systematic portfolio management and trading
• Over $881 billion Equity Index AUM techniques that seek to:
• Managing index mandates since 2002 • Minimize tracking error versus the index
• Comprehensive range of market-cap and factor-based index strategies • Manage explicit and implicit transaction costs
• Portfolio managers have an average of 22 years of industry experience • Mitigate active portfolio risks
• Replicate the index in the most efficient manner, either by
full replication or intelligent substitution
Years of Years with
Team Title Experience Firm
$61
$21
Diane Hsiung CIO – Index and ETF Strategies 27 1
$140 Domestic Cap-Weighted Deane Gyllenhaal Senior Portfolio Manager 31 7
$659
Louis Bottari Senior Portfolio Manager 30 13
Global/International Cap-
EQUITY INDEX AUM Peter Matthew Portfolio Manager 20 14
Weighted $140
BILLIONS ($)
Global/International Factor Robert Regan Portfolio Manager 24 4
$21 Payal Gupta Portfolio Manager 18 2
Domestic Factor $61 Thomas O’Brien, CFA Portfolio Manager 2
$659 30
Navid Sohrabi, CFA Portfolio Manager 19 2
Chris Toth, CFA Portfolio Manager 18 2
Dan Glenn Portfolio Manager 14 3
Josh Posner, CFA Portfolio Manager 15Disciplined Investment Process
Geode Capital Management
Our Approach
Utilize systematic portfolio and trading techniques that seek to maximize implementation efficiencies while minimizing
cost and mitigating active portfolio risks.
Data Validation Portfolio Construction Implementation Post-Trade Analysis
• Use multi-layer • Determine optimal approach to • Minimize explicit • Monitor exposures
validation process achieve objectives transaction costs and risk factors
and market impact
• Control risk and
minimize costs
Risk Management
For illustrative purposes only. Please see Important Information at the end of this presentation for additional details.
9 For institutional use only.Investment Process—Data Validation
Geode Capital Management
Data integrity is the primary driver of successful portfolio construction.
Data Validation Portfolio Construction Implementation Post-Trade Analysis
FACTORS
Index Composition Risk Exposure
Data Validation & Proprietary Reports Reports
Warehouse Data Database Daily Index
Financial Data Performance Announcements
Risk Model
Pricing Data
Pre-Trade Analysis
Cash Exposure
Corporate Actions
Holdings
For illustrative purposes only. Please see Important Information at the end of this presentation for additional details.
10 For institutional use only.Investment Process—Portfolio Construction & Implementation
Geode Capital Management
Rigorous portfolio construction and implementation that seeks to maximize client objectives.
Data Validation Portfolio Construction Implementation Post-Trade Analysis
PRE-TRADE PORTFOLIO POSITIONING
Trade Decision
Equities Futures
Portfolio Construction Implementation Portfolio Construction Implementation
Custom Universe Control Liquid Futures Contracts Efficient Execution
Eligible Markets Commissions/Impact Market Order /BIC Trade
Holdings Currency Exposure
Benchmark Trade Order
Investable Cash Instructions
Transaction Costs Trade Instructions
Objective(s) Timing of Executions
Constraints
Index/Market Calendar
Corporate Actions
For illustrative purposes only. Please see Important Information at the end of this presentation for additional details.
11 For institutional use only.Investment Process—Post-Trade Analysis
Geode Capital Management
Post-trade analysis can validate investment-process integrity.
Data Validation Portfolio Construction Implementation Post-Trade Analysis
Daily Risk Cash Transaction
Weights
Performance Characteristics Levels Cost Analysis
Daily returns are Ensure portfolio risk Timely true-up Measure security, Rigorous analysis
consistent with characteristics are in of equitized industry, and performed for all
expectations line with benchmark cash exposures sector weights vs. execution data
vs. benchmark the benchmark by portfolio/
counterparty/strategy
For illustrative purposes only. Please see Important Information at the end of this presentation for additional details.
12 For institutional use only.Risk and Compliance Oversight
Geode Capital Management
Portfolio and Compliance and Investment Oversight
Risk Analytics Operations
• Real-time cash, futures, and • Daily oversight and tests: leverage, • Monthly investment committee review
Risk mitigation collateral monitoring concentration, client guidelines, pre/post-
• Client portfolio performance review
and compliance • Identify security exceptions
trading activity
• Performance attribution analysis
oversight • Verify daily valuation
• Analyze portfolio exposures vs. • Portfolio risk assessment
are present throughout benchmark • Monitor regulatory compliance and
the entire risk • Daily review of prior day trading
investment guidelines
management process and performance
For illustrative purposes only. Please see Important Information at the end of this presentation for additional details.
13 For institutional use only.Fund Lineup: Domestic Equity
Funds Index Ticker Expense Ratio Approach
DOMESTIC EQUITY
®
Fidelity 500 Index Fund S&P 500 FXAIX 0.015% Fully Replicated
Fidelity Extended Market Index Fund DJ U.S. Completion Total Stock Market FSMAX 0.035% Optimized
®
Fidelity Large Cap Growth Index Fund Russell 1000 Growth FSPGX 0.035% Fully Replicated
®
Fidelity Large Cap Value Index Fund Russell 1000 Value FLCOX 0.035% Fully Replicated
Fidelity Mid Cap Index Fund Russell Midcap FSMDX 0.025% Fully Replicated
Fidelity Mid Cap Growth Index Fund Russell Midcap Growth FMDGX 0.050% Fully Replicated
Fidelity Mid Cap Value Index Fund Russell Midcap Value FIMVX 0.050% Fully Replicated
Fidelity Nasdaq Composite Index Fund Nasdaq Composite FNCMX 0.29% Optimized
®
Fidelity Small Cap Index Fund Russell 2000 FSSNX 0.025% Replicated
Fidelity Small Cap Growth Index Fund Russell 2000 Growth FECGX 0.050% Optimized
Fidelity Small Cap Value Index Fund Russell 2000 Value FISVX 0.050% Replicated
Fidelity Total Market Index Fund DJ U.S. Total Stock Market FSKAX 0.015% Replicated
Fidelity U.S. Sustainability Index Fund MSCI USA ESG Leaders FITLX 0.11% Fully Replicated
Expense ratios as of 9/30/2021.
14 For institutional use only.Fund Lineup: International and Specialty Equity
Funds Index Ticker Expense Ratio Approach
INTERNATIONAL EQUITY
®
Fidelity Emerging Markets Index Fund MSCI Emerging Markets FPADX 0.075% Optimized
Fidelity Global ex U.S. Index Fund MSCI ACWI ex U.S.A FSGGX 0.055% Optimized
®
Fidelity International Index Fund MSCI EAFE FSPSX 0.035% Fully Replicated
Fidelity International Sustainability Index Fund MSCI ACWI ex USA ESG Leaders FNIDX 0.20% Optimized
Fidelity Total International Index Fund MSCI ACWI ex USA IMI FTIHX 0.06% Optimized
SPECIALTY
Fidelity Real Estate Index Fund MSCI US IMI Real Estate 25/25 Index FSRNX 0.07% Optimized
Expense ratios as of 9/30/2021.
15 For institutional use only.Pool Lineup: Equity
Fee Schedule
Pools Index Class C Class D Class E Approach
DOMESTIC EQUITY $1B
®
Spartan 500 Index Pool S&P 500 0.015% 0.013% 0.01% Fully Replicated
Dow Jones U.S. Completion
Spartan Extended Market Index Pool 0.035% 0.033% 0.030% Optimized
Total Stock Market
Dow Jones U.S. Total Stock
Spartan Total Market Index Pool 0.015% 0.013% 0.01% Replicated
Market
®
Spartan Large Cap Growth Index Pool Russell 1000 Growth 0.035% 0.033% 0.03% Fully Replicated
®
Spartan Large Cap Value Index Pool Russell 1000 Value 0.035% 0.033% 0.03% Fully Replicated
Spartan Mid Cap Index Pool Russell Midcap 0.025% 0.023% 0.02% N/A
(pool has not yet funded)
®
Spartan Small Cap Index Pool Russell 2000 0.025% 0.023% 0.02% Replicated
INTERNATIONAL EQUITY
Spartan Developed International Index Pool MSCI World ex U.S.A 0.045% 0.043% 0.04% Replicated
®
Spartan Emerging Markets Index Pool MSCI Emerging Markets 0.075% 0.073% 0.07% Optimized
Spartan Global ex US Index Pool MSCI ACWI ex U.S.A 0.055% 0.053% 0.05% Optimized
®
Spartan International Index Pool MSCI EAFE 0.035% 0.033% 0.03% Replicated
Spartan Total International Index Pool MSCI ACWI ex U.S.A IMI 0.055% 0.053% 0.05% N/A
(pool has not yet funded)
SPECIALTY
Spartan Real Estate Index Pool MSCI US IMI Real Estate 25/50 0.07% 0.06% 0.05% Replicated
Note: Class A limited to certain qualified retirement plans. Expense ratio determined based on plan assets.
Expense ratios as of 9/30/2021. Please see Important Information at the end of this presentation for additional details.
16 For institutional use only.Fixed Income Index Investment Team For institutional use only.
Index Team
Investment approach will vary with mandate
Replication Full Replication Stratified Sampling
strategies vary
TIPS Index Treasury Index U.S. Multisector Bond
U.S. Treasury,
FIXED INCOME Key Sectors U.S. TIPS U.S. Treasury U.S. Agency, Corporates,
INDEX PLATFORM ABS, CMBS, and MBS
Index Liquidity High Very High Mixed
Fund Securities* 45 128 8,158
$171.2B Index Securities* 44 151 12,217
Total AUM
Sources of Risk
Interest Rate
Yield Curve
Sector
Idiosyncratic
$31.0B $46.8B $91.6B
9 Funds 9 Funds 14 Funds
* Fund and Index security counts represent the largest fund and index in each category.
Source: Fidelity Investments. Fidelity AUM noted as of 9/30/21; assets shown above represent those assets managed on the fixed income index team desk. These asset may differ from
previous slides due to varying aggregation methodology. Not all funds are eligible for direct investments. Orange slice in pie chart represents Canadian index fund assets of $1.8B.
See the Glossary at the end of this presentation for terms and definitions.
18 For institutional use only.Investment Process—Portfolio Construction
Fidelity Investments
Seeks to provide investment results that correspond to the aggregate price and interest
Philosophy
performance of the debt securities in a corresponding benchmark index.
Investment
Approach
For each index portfolio, we strive to minimize the ex-post annualized tracking error volatility relative to the
benchmark of that portfolio.
For some index portfolios, where a benchmark may have a large number of securities, we use a portfolio construction
approach called stratified sampling in order to match as closely as possible the following index risk exposures using a
smaller number of securities:
• Interest Rate Risk Exposure (we use option-adjusted duration)
• Yield Curve Risk Exposures (we use key rate durations)
• Sector Risk Exposures (we use PMV, CTD, and contribution to key rate durations)
• Idiosyncratic Risk Exposures (we use PMV and CTD for each issuer)
For illustrative purposes only.
19 For institutional use only.Investment Process—Research and Trading
Fidelity Investments
Over 5,000 Leverage Fidelity’s credit
Over 9,000 securities Utilize
corporate issues research and trading
in the Bloomberg U.S. stratified
full replication capabilities
Aggregate Bond Index sampling
is not practical in security selection
SECURITY
WEIGHTING IN
INDEX PORTFOLIO
Index Risk Factors Research Trading
• Duration • Proprietary fundamental analysis • Market technicals
• Sector • Quantitative analysis • Relative value assessment
• Yield Curve • Relative value assessment • Execution
• Ratings • Industry perspectives
• Equity analyst collaboration
For illustrative purposes only.
20 For institutional use only.Fund Lineup: Fixed Income
Funds Index Ticker Expense Ratio
FIXED INCOME
Fidelity U.S. Bond Index Fund Bloomberg U.S. Aggregate Bond FXNAX 0.025%
Bloomberg Global Aggregate
Fidelity International Bond Index Fund FBIIX 0.06%
ex-USD Float Adjusted RIC Diversified
Fidelity Short-Term Bond Index Fund Bloomberg U.S. 1-5 Year Government/Credit Bond FNSOX 0.03%
Fidelity Short-Term Treasury Bond Index Fund Bloomberg U.S. 1-5 Year Treasury FUMBX 0.03%
Fidelity Sustainability Bond Index Fund Bloomberg MSCI U.S. Aggregate ESG Choice Bond FNDSX 0.10%
Fidelity Intermediate Treasury Bond Index Fund Bloomberg U.S. 5-10 Year Treasury FUAMX 0.03%
Fidelity Long-Term Treasury Bond Index Fund Bloomberg U.S. Long Treasury FNBGX 0.03%
Fidelity Inflation-Protected Bond Index Fund Bloomberg U.S. TIPS FIPDX 0.05%
Fidelity Municipal Bond Index Fund Bloomberg Municipal Bond FMBIX 0.07%
Expense ratios as of 9/30/21.
21 For institutional use only.Pool Lineup: Fixed Income
Fee Schedule
Pools Index Class C
FIXED INCOME ≥ $5M
FIAM U.S. Bond Index Pool Bloomberg U.S. Aggregate Bond 0.025%
FIAM Intermediate Inflation-Protected Bond Index Pool Bloomberg 1-10 Year U.S. TIPS 0.05%
FIAM Long US Treasury STRIPS Index Pool* Bloomberg US STRIPS 25-30 Custom Index 0.03%
Note: Class A limited to certain qualified retirement plans. Expense ratio determined based on plan assets.
Expense ratios as of 9/30/21.
22 For institutional use only.Performance Summary For institutional use only.
Domestic Equity Index Mutual Funds
Performance as of Sept 30, 2021
3-Year
Cumulative Cumulative Inception
Average Annual Total Returns (%) 1-Year 3-Year 5-Year 10-Year Life-of-Fund Tracking
3-Month YTD Date
Error
Fidelity 500 Index Fund 0.58 15.91 29.99 15.98 16.88 16.62 10.96 0.01 2/17/1988
S&P 500 Index 0.58 15.92 30.00 15.99 16.90 16.63 --
Relative Return 0.00 -0.01 -0.01 -0.01 -0.02 -0.01 --
Fidelity Extended Market Index Fund -3.29 11.62 42.22 15.61 16.41 16.30 9.44 0.07 11/5/1997
Dow Jones U.S. Completion Total Stock Market Inde -3.30 11.61 42.19 15.53 16.30 16.16 --
Relative Return 0.01 0.01 0.03 0.08 0.11 0.14 --
Fidelity Large Cap Grow th Index Fund 1.16 14.30 27.31 21.94 22.79 -- 22.06 0.10 6/7/2016
Russell 1000 Grow th Index 1.16 14.30 27.32 22.00 22.84 -- --
Relative Return 0.00 0.00 -0.01 -0.06 -0.05 -- --
Fidelity Large Cap Value Index Fund -0.78 16.08 34.99 10.07 10.95 -- 10.92 0.10 6/7/2016
Russell 1000 Value Index -0.78 16.14 35.01 10.07 10.94 -- --
Relative Return 0.00 -0.06 -0.02 0.00 0.01 -- --
Fidelity Mid Cap Index Fund -0.93 15.15 38.06 14.23 14.37 15.51 14.56 0.07 9/8/2011
Russell MidCap Index -0.93 15.17 38.11 14.22 14.39 15.52 --
Relative Return 0.00 -0.02 -0.05 0.01 -0.02 -0.01 --
Fidelity Mid Cap Grow th Index Fund -0.81 9.59 30.37 -- -- -- 21.83 -- 7/11/2019
Russell Midcap Grow th Index -0.76 9.60 30.45 -- -- -- --
Relative Return -0.05 -0.01 -0.08 -- -- -- --
Fidelity Mid Cap Value Index Fund -1.02 18.15 42.29 -- -- -- 13.34 -- 7/11/2019
Russell Midcap Value Index -1.01 18.24 42.40 -- -- -- --
Relative Return -0.01 -0.09 -0.11 -- -- -- --
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value of an investment will
fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than that quoted. To learn
more or to obtain the most recent month-end or other share-class performance, visit fidelity.com, institutional.fidelity.com, or 401k.com.
It is not possible to invest directly in an index. All market indices are unmanaged. Index performance is not meant to represent that of any Fidelity mutual fund.
See the Important Information at the end of this presentation for more information on any terms.
Source: Fidelity Investments
24 For institutional use only.Domestic Equity Index Mutual Funds
Performance as of Sept 30, 2021
3-Year
Cumulative Cumulative Inception
Average Annual Total Returns (%) 1-Year 3-Year 5-Year 10-Year Life-of-Fund Tracking
3-Month YTD Date
Error
Fidelity Nasdaq Com posite Index Fund -0.24 12.59 30.08 22.54 23.11 20.72 13.06 0.21 9/25/2003
NASDAQ Composite Index -0.23 12.66 30.26 22.67 23.37 20.93 --
Relative Return -0.01 -0.07 -0.18 -0.13 -0.26 -0.21 --
Fidelity Sm all Cap Index Fund -4.40 12.35 47.50 10.60 13.56 14.76 13.82 0.08 9/8/2011
Russell 2000 Index -4.36 12.41 47.68 10.54 13.45 14.63 --
Relative Return -0.04 -0.06 -0.18 0.06 0.11 0.13 --
Fidelity Sm all Cap Grow th Index Fund -5.66 2.82 33.18 -- -- -- 19.22 -- 7/11/2019
Russell 2000 Grow th Index -5.65 2.82 33.27 -- -- -- --
Relative Return -0.01 0.00 -0.09 -- -- -- --
Fidelity Sm all Cap Value Index Fund -3.03 22.81 63.59 -- -- -- 16.14 -- 7/11/2019
Russell 2000 Value Index -2.98 22.92 63.92 -- -- -- --
Relative Return -0.05 -0.11 -0.33 -- -- -- --
Fidelity Total Market Index Fund -0.12 15.11 32.11 15.96 16.83 16.56 8.79 0.02 11/5/1997
Dow Jones U.S. Total Stock Market Index -0.12 15.13 32.13 15.95 16.82 16.56 --
Relative Return 0.00 -0.02 -0.02 0.01 0.01 0.00 --
Fidelity U.S. Sustainability Index Fund 0.90 17.44 31.41 17.41 -- -- 17.13 0.11 5/9/2017
MSCI USA ESG Leaders Index 0.91 17.53 31.56 17.55 -- -- --
Relative Return -0.01 -0.09 -0.15 -0.14 -- -- --
Fidelity Real Estate Index Fund 0.66 22.45 38.17 7.64 5.29 10.24 9.02 0.14 9/8/2011
MSCI US IMI Real Estate 25/25 Index* 0.77 22.56 38.42 7.77 5.36 10.35 --
Relative Return -0.11 -0.11 -0.25 -0.13 -0.07 -0.11 --
* Prior to December 1st 2020, the Fidelity Real Estate Index Fund tracked the performance of the Dow Jones US Select RESI. Index returns that include time periods before December 1st 2020 reflect a blended
index return
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value of an investment will
fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than that quoted. To learn
more or to obtain the most recent month-end or other share-class performance, visit fidelity.com, institutional.fidelity.com, or 401k.com.
It is not possible to invest directly in an index. All market indices are unmanaged. Index performance is not meant to represent that of any Fidelity mutual fund.
See the Important Information at the end of this presentation for more information on any terms.
Source: Fidelity Investments
25 For institutional use only.International Equity Index Mutual Funds
Performance as of Sept 30, 2021
3-Year
Cumulative Cumulative Inception
Average Annual Total Returns (%) 1-Year 3-Year 5-Year 10-Year Life-of-Fund Tracking
3-Month YTD Date
Error
Fidelity International Index Fund -0.85 8.02 25.11 7.68 8.81 8.27 5.37 1.43 11/5/1997
MSCI EAFE Index (Net MA) -0.41 8.54 25.98 7.84 9.04 8.29 --
Relative Return -0.44 -0.52 -0.87 -0.16 -0.23 -0.02 --
Fidelity International Index Fund (ex Fair Value) -0.34 8.52 26.00 7.81 8.97 8.23 -- 0.17
Relative Return (ex Fair Value) 0.07 -0.02 0.02 -0.03 -0.07 -0.06 --
Fidelity Em erging Markets Index Fund -8.55 -1.81 16.65 8.20 8.82 5.88 4.22 1.74 9/8/2011
MSCI Emerging Markets (Net MA)* -8.09 -1.24 18.22 8.61 9.26 6.34 --
Relative Return -0.46 -0.57 -1.57 -0.41 -0.44 -0.46 --
Fidelity Emerging Markets Index Fund (ex Fair Value) -8.19 -1.57 17.46 8.28 8.96 5.82 4.50 0.47
Relative Return (ex Fair Value) -0.10 -0.33 -0.76 -0.33 -0.30 -0.52 --
Fidelity Global ex U.S. Index Fund -3.45 5.49 22.94 7.93 8.79 7.53 6.52 1.37 9/8/2011
MSCI All Country World ex US Index (Net MA) -2.96 6.03 24.10 8.20 9.12 7.64 --
Relative Return -0.49 -0.54 -1.16 -0.27 -0.33 -0.11 --
Fidelity Global ex U.S. Index Fund (ex Fair Value) -3.02 5.83 23.72 8.04 8.93 7.46 6.88 0.22
Relative Return (ex Fair Value) -0.06 -0.20 -0.38 -0.16 -0.19 -0.18 --
Fidelity Total International Index Fund -3.02 6.34 24.21 8.20 8.89 -- 8.92 1.31 6/7/2016
MSCI All Country World ex US IMI Index (Net MA) -2.53 6.90 25.34 8.51 9.30 -- --
Relative Return -0.49 -0.56 -1.13 -0.31 -0.41 -- --
Fidelity Total International Index Fund (ex Fair Value) -2.56 6.70 24.95 8.32 9.04 -- 10.74 0.27
Relative Return (ex Fair Value) -0.03 -0.20 -0.39 -0.19 -0.26 -- --
Fidelity International Sustainability Index Fund -3.08 5.51 20.93 9.02 -- -- 8.21 1.42 5/9/2017
MSCI ACWI EX USA ESG Leaders Index -2.62 6.37 22.51 9.95 -- -- --
Relative Return -0.46 -0.86 -1.58 -0.93 -- -- --
Fidelity International Sustainability Index Fund (ex Fair Value) -2.79 5.83 21.63 9.09 -- -- 8.29 0.21
Relative Return (ex Fair Value) -0.17 -0.54 -0.88 -0.86 -- -- --
* Prior to May 4th 2016, the Fidelity Emerging Markets Index Fund tracked the performance of the FTSE Emerging Index. Index returns that include time periods before May 4th 2016 reflect a blended index return
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value of an investment will
fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than that quoted. To learn
more or to obtain the most recent month-end or other share-class performance, visit fidelity.com, institutional.fidelity.com, or 401k.com.
It is not possible to invest directly in an index. All market indices are unmanaged. Index performance is not meant to represent that of any Fidelity mutual fund.
See the Important Information at the end of this presentation for more information on any terms.
Source: Fidelity Investments
26 For institutional use only.Fixed Income Index Mutual Funds
Performance as of Sept 30, 2021
3-Year
Cumulative Cumulative Inception
Average Annual Total Returns (%) 1-Year 3-Year 5-Year 10-Year Life-of-Fund Tracking
3-Month YTD Date
Error
Fidelity U.S. Bond Index Fund 0.02 -1.68 -0.94 5.36 2.89 2.97 5.76 0.33 03/08/1990
Bloomberg U.S. Aggregate Bond Index 0.05 -1.55 -0.90 5.36 2.94 3.01 --
Relative Return -0.03 -0.13 -0.04 0.00 -0.05 -0.04 --
Fidelity Short-Term Bond Index Fund 0.08 -0.32 0.06 3.56 -- -- 2.55 0.24 10/18/2017
Bloomberg U.S. 1-5 Year Government/Credit Bond Index 0.05 -0.25 0.08 3.62 -- -- --
Relative Return 0.03 -0.07 -0.02 -0.06 -- -- --
Fidelity Short-Term Treasury Bond Index Fund -- -0.57 -0.47 3.25 1.77 1.38 2.56 0.22 12/20/2005
Bloomberg U.S. 1-5 Year Treasury Bond Index 0.02 -0.46 -0.45 3.29 1.81 1.45 --
Relative Return -- -0.11 -0.02 -0.04 -0.04 -0.07 --
Fidelity Intermediate Treasury Bond Index Fund -0.14 -2.78 -3.56 5.59 2.32 2.52 4.36 0.32 12/20/2005
Bloomberg U.S. 5-10 Year Treasury Bond Index -0.06 -2.75 -3.53 5.64 2.39 2.61 --
Relative Return -0.08 -0.03 -0.03 -0.05 -0.07 -0.09 --
Fidelity Long-Term Treasury Bond Index Fund 0.37 -7.36 -10.19 9.18 3.20 4.28 6.19 1.08 12/20/2005
Bloomberg U.S. Long Treasury Index 0.47 -7.49 -10.27 9.22 3.31 4.39 --
Relative Return -0.10 0.13 0.08 -0.04 -0.11 -0.11 --
Fidelity Inflation-Protected Bond Index Fund 1.78 3.54 5.18 7.37 4.23 -- 2.63 0.53 05/16/2012
Bloomberg U.S. TIPS Index (Series-L) 1.75 3.51 5.19 7.45 4.34 -- --
Relative Return 0.03 0.03 -0.01 -0.08 -0.11 -- --
Fidelity Sustainability Bond Index Fund 0.04 -1.77 -1.33 5.16 -- -- 4.76 0.35 06/19/2018
Bloomberg MSCI U.S. Aggregate ESG Choice Bond Index 0.04 -1.60 -1.04 5.29 -- -- --
Relative Return 0.00 -0.17 -0.29 -0.13 -- -- --
Fidelity Municipal Bond Index Fund -0.35 0.54 2.24 -- -- -- 2.14 -- 07/11/2019
Bloomberg Municipal Bond Index -0.27 0.79 2.63 -- -- -- --
Relative Return -0.08 -0.25 -0.39 -- -- -- --
Fidelity International Bond Index Fund 0.08 -1.54 -0.57 -- -- -- 0.79 -- 10/10/2019
Bloomberg Global Agg ex-USD Float Adj RIC Diversified Index (USD Hedged) 0.16 -1.48 -0.44 -- -- -- --
Relative Return -0.08 -0.06 -0.13 -- -- -- --
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value of an investment will
fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than that quoted. To learn
more or to obtain the most recent month-end or other share-class performance, visit fidelity.com, institutional.fidelity.com, or 401k.com.
It is not possible to invest directly in an index. All market indices are unmanaged. Index performance is not meant to represent that of any Fidelity mutual fund.
See the Important Information at the end of this presentation for more information on any terms.
Source: Fidelity Investments
27 For institutional use only.Securities Lending For institutional use only.
Securities Lending Income
Through the conservative management of collateral, we believe Fidelity’s securities lending program benefits
shareholders by enabling Fidelity index funds to generate incremental income while seeking to mitigate risk.
+/– – =
Gross income from Borrower Agent Fund’s compensation
securities-lending rebate/fees* fees for lending securities
activities
* Rebates paid to the borrower or fees received from the borrower are negotiated by the securities lending agent based on the supply and
demand of the securities borrowed.
29 For institutional use only.Summary of Fidelity’s Securities Lending Program
Fidelity Fidelity Fidelity Fidelity Fidelity FIAM FIAM FIAM
FMTC Spartan
Active Equity Zero Active Bond Active Active Passive
Equity Index
Equity Index Index Bond Index Equity Bond Bond
CITs1 CITs
Funds Funds Funds Funds Funds CITs CITs CITs
Lending requirements
Securities lending permitted Yes No
Max that can be loaned from the portfolio 33.3% – – –
Fidelity Agency LendingSM (FAL)
Lending agent Goldman Sachs Agency Lending (GSAL)2
FAL GSAL
Indemnified by lending agent Yes – – –
Collateral requirements
% Collateral required 102% for U.S., 105% for International – – –
Collateral received Cash – – –
Reinvestment requirements
Collateral invested in Fidelity Securities Lending Cash Central Fund3 NT STIF4 – – –
% of securities lending revenue to fund ≥90%5 90% – – –
Max service charge as % of lending income ≤10%5 10% – – –
Fidelity Sector ETFs do not participate in Fidelity’s Lending Program.
1. FMTC Equity CITs are available only to certain eligible retirement plan. 2. Retains either GSAL, a third-party lending agent, and/or FAL, an affiliated agent, to act as
securities lending agent. For more information on Fidelity funds, please see the Statement of Additional Information. For more information on Fidelity pools, please see
the pool’s Declaration of Separate Fund. 3. Current information on the Fidelity Securities Lending Cash Central Fund can be found at http://fundresearch.fidelity.com/
mutual-funds/view-all/31635A303. 4. Northern Trust Collective Short Term Investment Fund (NT STIF) is an investment vehicle for cash reserves that offers a competitive
rate of return through a portfolio of high-grade, short-term, money market instruments. Principal preservation is the prime objective, with liquidity management also
emphasized to provide for redemption of units on any business day. 5. The lending revenue to the fund and the maximum service charge shown are reflective of the
arrangement with GSAL. Lending revenue to the fund when FAL is the lending agent is ≥90.1%.
30 For institutional use only.Fidelity’s Approach to Managing Risk
• Loans are made only to borrowers that meet Fidelity’s stringent standards for
Counterparty creditworthiness of counterparties.
Risk • Fidelity continuously reviews and approves all borrowers and agents.
• Mutual funds have indemnification protection against borrower default when a lending
agent is used.
• Fidelity continually monitors the value of securities on loan and ensures the lending
agent provides for mark-to-market adjustments daily to maintain adequate
collateralization.
• If needed, any additional collateral required to meet these thresholds is delivered on the
Reinvestment next business day.
Risk
• A loan can be terminated for any reason at any time.
• The cash collateral is invested in Fidelity Securities Lending Cash Central fund – a
conservatively managed money market fund managed by Fidelity.*
• Fidelity does not rehypothecate its collateral, i.e., reinvest it in other less liquid
investments in order to gain a higher return.
*Current information about the Fidelity Securities Lending Cash Central Fund can be found at fundresearch.fidelity.com/mutual-funds/view-
all/31635A303. The fund is used for cash investments by other mutual funds, and not available directly to individual investors.
31 For institutional use only.Fidelity Securities Lending Cash Central Fund
Conservatively managed collateral vehicle with high liquidity
Invests in a range of Treasury bills, certificates of deposit, and other stable, short-term investments
Managed in accordance with the risk-limiting provisions of Rule 2a-7 of the ‘40 Act regarding the quality, maturity, liquidity, and
diversification of the fund’s investments
Used as a cash collateral investment by other Fidelity funds; not available directly to individual investors
Does not charge an investment management fee
LIQUID ASSETS (DAILY) 1/2/20–12/31/20 (%) LIQUID ASSETS (WEEKLY) 1/2/20–12/31/20 (%)
100 100
Fidelity Securities Lending Cash Central Fund
Fidelity Securities Lending Cash Central Fund
75 75
Industry Average
50 50
Industry Average 30% requirement
25 25
10% requirement
0 0
01/20 02/20 03/20 04/20 05/20 06/20 07/20 08/20 09/20 10/20 11/20 12/20 01/20 02/20 03/20 04/20 05/20 06/20 07/20 08/20 09/20 10/20 11/20 12/20
Sources: FMR, iMoneyNet (first tier institutional prime industry average). Regulations require that a money market mutual fund hold at least 10% of its total assets in daily liquid
assets that can be readily converted to cash in one business day, and at least 30% of its total assets in weekly liquid assets that can be readily converted to cash in five
business days.
Current information on the Fidelity Securities Lending Cash Central Fund can be found at http://fundresearch.fidelity.com/mutual-funds/view-all/31635A303.
Please see the last page for important information about money market funds including risks.
32 For institutional use only.Appendix For institutional use only.
Important Information
Bloomberg 1–5 Year U.S. Treasury Bond Index measures the performance of short-term U.S. Treasury Securities maturing within one to five years. Returns of the Bloomberg 1–5
Year U.S. Treasury Index do not reflect any deductions for taxes.
Bloomberg U.S. 5–10 Year Treasury Bond Index is a market value-weighted index of investment-grade fixed-rate public obligations of the U.S. Treasury with maturities between five
and 10 years.
Bloomberg U.S. Long Treasury Bond Index is a market value–weighted index of investment-grade fixed-rate public obligations of the U.S. Treasury with maturities of 10 years or
more.
Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. The
index includes Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate pass-throughs), asset-backed securities, and collateralized
mortgage-backed securities (agency and non-agency).
Bloomberg U.S. 1–5 Year Government/Credit Bond Index is a market value-weighted index of fixed-rate investment-grade debt securities with maturities from one to five years from
the U.S. Treasury, U.S. Government- Related, and U.S. Corporate Indexes. The fund normally maintains a dollar-weighted average maturity of three years or less.
Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) Index is an unmanaged index designed to represent securities that protect against adverse inflation and provide a
minimum level or real return. To be included in this index, bonds must have cash flows linked to an inflation index, be sovereign issues denominated in U.S. currency, and have more
than one year to maturity, and, as a portion on the index, total a minimum amount outstanding of 100 million U.S. dollars.
Bloomberg MSCI U.S. Aggregate ESG Choice Bond Index Is composed of U.S. dollar denominated, investment-grade fixed-rate debt issues that apply MSCI ESG Research for
security eligibility.
Bloomberg Municipal Bond Index measures the performance of the Bloomberg U.S. Municipal bond, which covers the USD-denominated Long-Term tax exempt bond market with
four main sectors: state and local general obligation bonds, revenue bonds, insured bonds and pre-refunded bonds.
The Bloomberg Global Aggregate ex-USD Float Adjusted RIC Diversified Index (USD Hedged) is an index that provides a broad-based measure of the global investment grade
fixed-rate debt markets excluding U.S. The foreign currency is hedged back to U.S. dollars.
DJ U.S. Completion Total Stock Market is an unmanaged index that represents all U.S. equity issues with readily available prices, excluding components of the S&P 500.
DJ U.S. Total Stock Market Index is an unmanaged market capitalization-weighted index of over 5,000 U.S. equity securities, containing all actively traded common stocks with readily
available price data.
MSCI Europe, Australasia, Far East (MSCI EAFE) Index (net MA tax) is an unmanaged market capitalization-weighted index of equity securities of companies domiciled in various
countries. The index is designed to represent performance of developed stock markets outside the United States and Canada and excludes certain market segments unavailable to
U.S.-based investors. The index returns for periods after 1/1/1997 are adjusted for tax withholding rates applicable to U.S.-based mutual funds organized as Massachusetts business
trusts.
MSCI All Country World (MSCI ACWI) ex USA Index (net MA tax) is a market capitalization-weighted index of stocks traded in global developed and emerging markets, excluding
the United States. Index returns are adjusted for tax withholding rates applicable to U.S.-based mutual funds organized as Massachusetts business trusts.
MSCI ACWI ex USA ESG Leaders Index is a capitalization weighted index that provides exposure to companies with high Environmental, Social and Governance (ESG) performance
relative to their sector peers. MSCI ACWI ex USA ESG consists of large and mid cap companies across 22 Developed Markets (DM) and 23 Emerging Markets (EM) countries.
MSCI ACWI ex USA Investable Market Index (IMI) captures large, mid and small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States)
and 23 Emerging Markets (EM) countries.* With 6,091 constituents, the index covers approximately 99% of the global equity opportunity set outside the U.S.
MSCI Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 21 emerging countries.
34 For institutional use only.Important Information
Dow Jones U.S. Completion Total Stock Market is an unmanaged index that represents all U.S. equity issues with readily available prices, excluding components of the S&P 500.
Dow Jones U.S. Select Real Estate Securities Index (RESI) represents equity real estate investment trusts (REITs) and real estate operating companies (REOCs) traded in the US.
Dow Jones U.S. Total Stock Market Index is an unmanaged market capitalization-weighted index of over 5,000 U.S. equity securities, containing all actively traded common stocks
with readily available price data.
MSCI US IMI Real Estate 25/25 Index is a modified market capitalization-weighted index of stocks designed to measure the performance of real estate companies in the MSCI US
Investable Market 2500 Index
MSCI USA ESG Leaders Index is a capitalization weighted index that provides exposure to companies with high Environmental, Social and Governance (ESG) performance relative to
their sector peers. MSCI USA ESG consists of large and mid cap companies in the US market. The Index is designed for investors seeking a broad, diversified sustainability
benchmark with relatively low tracking error to the underlying equity market.
NASDAQ Composite Index is a market capitalization-weighted index that is designed to represent the performance of NASDAQ stocks.
Russell 1000 Value Index is a market capitalization-weighted index designed to measure the performance of the large-cap value segment of the U.S. equity market. It includes those
Russell 1000 Index companies with lower price-to-book ratios and lower expected growth rates.
Russell 1000 Growth Index is a market capitalization-weighted index designed to measure the performance of the large-cap growth segment of the U.S. equity market. It includes
those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth rates.
Russell 2000 Index is a market capitalization-weighted index designed to measure the performance of the small-cap segment of the U.S. equity market. It includes approximately
2,000 of the smallest securities in the Russell 3000 Index.
Russell 2000 Growth Index is a market capitalization-weighted index to measure the performance of small-cap growth segment of the US equity universe. It includes those Russell
2000 companies with higher price-to-value ratios and higher forecasted growth values.
Russell 2000 Value Index is a market capitalization-weighted index to measure the performance of small-cap value segment of the US equity universe. It includes those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth values.
Russell Midcap Index is a market capitalization-weighted index designed to measure the performance of the mid-cap segment of the U.S. equity market. It contains approximately 800
of the smallest securities in the Russell 1000 Index.
Russell Midcap Growth Index is a market capitalization-weighted index to measure the performance of the mid-cap growth segment of the US equity universe. It includes Russell
midcap index companies with higher price-to-book ratios and higher forecasted growth values.
Russell Midcap Value Index is a market capitalization-weighted index measures the performance of the mid-cap value segment of the US equity universe. It includes Russell midcap
index companies with lower price-to-book ratios and lower forecasted growth values.
S&P 500 Index is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity
performance.
35 For institutional use only.Important Information
The following information applies to the entirety of this document. Please read this important information carefully before making any investment. Speak with your
relationship manager if you have any questions.
Information provided in this document is for informational and educational purposes only. To the extent any investment information in this material is deemed to be a
recommendation, it is not meant to be impartial investment advice or advice in a fiduciary capacity and is not intended to be used as a primary basis for you or your client’s
investment decisions. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in
them, and receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds,
certain third-party funds and products, and certain investment services. Information presented herein is for discussion and illustrative purposes only and is not a recommendation
nor an offer or solicitation to buy or sell any securities.
Indexes are unmanaged. It is not possible to invest directly in an index.
Risks
The portfolio risk management processes discussed herein include an effort to monitor and manage risk but should not be confused with and do not imply low risk. Risk
management is no guarantee of future performance. There is no guarantee that a particular portfolio will meet its investment objectives.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. The
securities of smaller, less well-known companies can be more volatile than those of larger companies. Foreign securities are subject to interest rate, currency exchange rate,
economic, and political risks, all of which are magnified in emerging markets. The performance of international strategies depends upon currency values, political and regulatory
environments, and overall economic factors in the countries in which they invest. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Foreign exchange rates also can be extremely volatile. The risks
are particularly significant for strategies that focus on a single country or region.
Securities lending is subject to risks, such as the borrowers’ creditworthiness and ability to return the securities borrowed. Income from securities lending is not guaranteed and will
fluctuate over time.
The performance of the fund and its index may vary somewhat due to factors such as fees and expenses of the fund, transaction costs, sample section, regulatory restrictions, and
timing differences associated with additions to and deletions from its index.
You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares, they may be worth more or less than
what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below
required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, have no legal obligation to provide financial support to the fund, and you should not expect
that the sponsor will provide financial support to the fund at any time. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Interest
rate increases can cause the price of a money market security to decrease. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening
structure for a security can cause the price of a money market security to decrease.
The securities, derivatives and currency markets of emerging market countries are generally smaller, less developed, less liquid, and more volatile than those of the United States
and other developed markets, and disclosure and regulatory standards in many respects are less stringent. There also may be a lower level of monitoring and regulation of
markets in emerging market countries and the activities of investors in such markets and enforcement of existing regulations may be extremely limited and arbitrary. Emerging
market countries are more likely to experience political uncertainty and instability, including the risk of war, terrorism, nationalization, limitations on the removal of funds or other
assets, or diplomatic developments that affect investments in these countries. In many cases, there is a heightened possibility of government control of the economy, expropriation
or confiscatory taxation, imposition of withholding taxes on interest payments, or other similar developments.
36 For institutional use only.Important Information
Risks (continued)
Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk, and inflation risk. Increases in real interest
rates can cause the price of inflation-protected debt securities to decrease. Interest payments on inflation-protected debt securities can be unpredictable. Leverage can increase market
exposure and magnify investment risk. Lower quality bonds can be more volatile and have greater risk of default than higher-quality bonds.
Derivatives may be volatile and involve significant risk, such as credit risk, currency risk, leverage risk, counterparty risk, and liquidity risk. Using derivatives can disproportionately
increase losses and reduce opportunities for gains in certain circumstances.
Real Estate is a cyclical industry that is sensitive to interest rates, economic conditions (both nationally and locally), property tax rates, and other factors. Changes in real estate values
or economic downturns can have a significant negative effect on issuers in the real estate industry.
Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.
Investment performance of the Target Date products depends on the performance of the underlying investment options and on the proportion of the assets invested in each underlying
investment option. The investment risk of each Target Date portfolio changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the
portfolio manager. The portfolios are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject
to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Fixed income investments entail issuer default and credit risk, inflation risk, and
interest rate risk (as interest rates rise, bond prices usually fall and vice versa). This effect is usually more pronounced for longer-term securities. Leverage can increase market
exposure, magnify investment risks, and cause losses to be realized more quickly. No target date investment option is considered a complete retirement program and there is no
guarantee any single investment option will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the
portfolios' target dates.
All investment strategies involve risk of loss. Investors should be prepared to bear such losses in connection with any investments. Investments may lose money. Additionally,
investments may be subject to operational risks, which can include risks of loss arising from failures in internal processes, people, or systems, such as routine processing errors or
major systems failures, or from external events, such as exchange outages.
Expense Ratios
For a mutual fund, the Gross Expense Ratio is the total annual fund or class operating expenses directly paid by the fund (before waivers or reimbursements). This ratio also includes
Acquired Fund Fees and Expenses, which are expenses indirectly incurred by a fund through its ownership of shares in other investment companies. If the investment option is not a
mutual fund, the expense ratio may be calculated using methodologies that differ from those used for mutual funds. For commingled pools, the expense ratio may be calculated using
methodologies that differ from those used for mutual funds.
For a mutual fund, the Net Expense Ratio is the total annual fund or class operating expense directly paid by the fund after any fee waiver and/or expense reimbursements that will
reduce any fund operating. This ratio also includes Acquired Fund Fees and Expenses, which are expenses indirectly incurred by a fund through its ownership of shares in other
investment companies. This number does not include any fee waiver arrangement or expense reimbursement that may be terminated without agreement of the fund's board of trustees
during the one-year period. For commingled pools, the expense ratio may be calculated using methodologies that differ from those used for mutual funds.
General
Indexes are unmanaged. It is not possible to invest directly in an index. References to indexes, benchmarks or other measures of relative market performance over a specified period
of time (each, an “index”) are provided for your information only. References to any index do not imply that the portfolio will achieve returns, volatility, or other results similar to the
index. The composition of the index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors,
correlations, concentrations, volatility, or tracking error targets, all of which are subject to change over time.
Past performance is no guarantee of future results.
37 For institutional use only.Important Information
General (continued)
The commingled pools described herein are each established under a Declaration of Separate Fund under the applicable Declaration of Trust managed by its Trustee. EACH
COMMINGLED POOL IS NOT A MUTUAL FUND. The commingled pools are only available to qualified investors as detailed in the applicable Declaration of Trust. Please review
the applicable Declaration of Trust and Declaration of Separate Fund for more complete details. Units of the Commingled Pools are exempt from registration under the Securities
Act of 1933 and the Investment Company Act of 1940. No public or other market will develop for Units of the commingled pools. The units are generally only transferable as
detailed under the applicable Declaration of Trust.
FIAM commingled pools are commingled pools of the FIAM Group Trust for Employee Benefit Plans and are managed by Fidelity Institutional Asset Management Trust Company, a
trust company organized under the laws of the State of New Hampshire.
Fidelity Institutional Asset Management (FIAM) includes the following entities or divisions that provide investment services: Fidelity Institutional Asset Management Trust Company,
a New Hampshire trust company (FIAM TC); FIAM LLC, a U.S. registered investment adviser; the Fidelity Institutional Asset Management division of FMR Investment Management
(UK) Limited, a U.K. registered investment manager and U.S. registered investment adviser; and the Fidelity Institutional Asset Management division of Fidelity Management &
Research (Hong Kong) Limited, a Hong Kong and U.S. registered investment adviser.
“Fidelity Investments” and/or “Fidelity” refers collectively to FMR LLC, a U.S. company, and its subsidiaries, including but not limited to Fidelity Management & Research Company
LLC (FMR) and FIAM LLC.
Geode Capital Management Trust Company, LLC (GCMTC LLC) is a trust company chartered under the laws of the State of New Hampshire and has established the Spartan
Group Trust for Employee Benefit Plans under a Declaration of Trust in order to provide for the collective investment and reinvestment of certain tax-exempt benefit plans that
become participants. Geode Capital Management, LLC (GCM LLC), an affiliate of GCMTC LLC, has agreed to provide support to GCMTC LLC under a support and services
agreement between the GCMTC LLC and GCM LLC.
Certain data and other information in this presentation have been supplied by outside sources and are believed to be reliable and current. Fidelity cannot verify the accuracy of
information from outside sources, and potential investors should be aware that such information is subject to change without notice.
Fidelity has prepared this presentation for, and only intends to provide it to, institutional, sophisticated, and/or qualified investors. Do not distribute or reproduce this report.
The third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliated
company.
Spartan is a service mark of FMR LLC. Used with permission.
Geode Capital Management products and services presented herein are managed by Geode Capital Management, LLC or Geode Capital Management Trust Company, LLC
(Geode), and may be presented by registered broker-dealers Fidelity Distributors Company LLC. or Fidelity Brokerage Services, LLC, Member NYSE, SIPC, each of which may be
compensated for such services.
Products and services presented here are managed by the Fidelity Investments companies of FIAM LLC or FIAM TC. FIAM products and services may be presented by Fidelity
Distributors Company LLC, Fidelity Institutional Wealth Adviser LLC, or Fidelity Brokerage Services, LLC, Member NYSE, SIPC, each a non-exclusive financial intermediary that is
affiliated with FIAM, or Fidelity Investments Canada ULC and FIL Limited, all of which are compensated for such services.
Neither Fidelity nor Geode provides legal or tax advice and we encourage you to consult your own lawyer, accountant, or other advisor before making any investment decision.
38 For institutional use only.You can also read
