Strategic Advisers Funds - Fidelity Investments

QUARTERLY INVESTMENT COMMENTARY | AS OF MARCH 31, 2024

Strategic Advisers? Funds

Key Takeaways

? In the first quarter of 2024, 12 of 14 Strategic Advisers Funds outpaced

their respective benchmarks, whereas two modestly underperformed. At the same time, 10 Funds topped their peer group averages. Longer-term comparisons remained generally favorable as well.

? The sense among investors that the U.S. Federal Reserve may have

engineered a rare soft landing for the economy ? continued growth accompanied by moderate inflation ? provided a supportive backdrop for risk assets in Q1.

? Within the domestic equity market, large-caps outperformed both

mid- and small-caps, led by growth stocks. The communication services, energy, information technology and financials sectors were the best performers. In contrast, the interest-rate-sensitive real estate and utilities categories lagged by comparison. From a factor perspective, momentum fared best, reflecting market participants riskdriven stance. A rally in gold prices, along with higher oil prices, helped push commodities into positive territory as well.

? International developed-markets (DM) stocks rose by single-digits and,

except for Japan, fell short of their U.S. counterparts. Japan advanced 11% and led all markets globally, while the Asia Pacific ex Japan region was the weakest performer, weighed down by Hong Kong. More broadly, emerging-markets (EM) equities trailed DM. Within EM, Taiwan and India stood out to the upside, while Latin American stocks struggled, pressured by Brazil.

? In fixed income, rising U.S. Treasury yields weighed on bond prices,

although riskier categories, including EM debt, high-yield corporates and municipal credit, posted quarterly gains.

? Among alternatives, diversified macro and managed futures strategies

performed well. Conversely, income-focused, market-neutral approaches were hurt by a favorable environment for equity risk.

* These funds are only available to clients enrolled in Fidelity? Wealth Services.

The Blended investment universe uses both Fidelity and non-Fidelity offerings and seeks to enhance risk-adjusted returns through broad diversification across asset classes.

The Fidelity Focused investment universe primarily uses Fidelity offerings and seeks to enhance risk-adjusted returns through broad diversification across asset classes.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

FUND LIST*

BLENDED U.S. Stocks Large Cap Fund (FALCX) Small-Mid Cap Fund (FSCFX) International Stocks International Fund (FILFX) Emerging Markets Fund (FSAMX) Bonds Core Income Fund (FPCIX) Municipal Bond Fund (FSMUX) Income Opportunities Fund (FPIOX) Short-Term Short Duration Fund (FAUDX) Tax-Sensitive Short Duration Fund (FGNSX) Alternatives Alternatives Fund (FSLTX)

FIDELITY U.S. Stocks U.S. Total Stock Fund (FCTDX) International Stocks International Fund (FUSIX) Emerging Markets Fund (FGOMX) Bonds Core Income Fund (FIWGX)

QUARTERLY INVESTMENT COMMENTARY | AS OF MARCH 31, 2024

Market Recap

Continued global economic expansion and a slowing in the pace of inflation contributed to a largely favorable backdrop for risk assets in the first quarter of 2024. U.S. large-cap stocks led the way, followed by non-U.S. equities. Each rallied as investor sentiment shifted to a view that policy interest rates had peaked in most countries following historic monetary tightening by the U.S. Federal Reserve and other key central banks around the world. Both in the U.S. and abroad, growth topped value the past three months.

Against this dynamic backdrop, domestic stocks gained 10.05% for the quarter, according to the Dow Jones U.S. Total Stock Market Index. Among the top-performing sectors were communication services (+14%) and information technology (+12%), which benefited notably from market participants' exuberance over generative intelligence. Financial stocks rose about 12%, propelled by high interest rates. Energy gained 13%, aided by a roughly 15% increase in the price of crude oil. Conversely, the real estate (-1%) sector trailed by the widest margin, as investors dialed back their expectations for the pace and magnitude of expected rate cuts. Consumer discretionary (+6%) also notably lagged. Large-cap stocks topped small-caps for the quarter, while growth outpaced value. Meanwhile, commodities, as measured by the Bloomberg Commodity Index Total Return, advanced 2.19% in Q1.

Looking abroad, international equities as a whole gained 4.74% for the first quarter, as measured by the MSCI ACWI (All Country World Index) ex USA Index. Most regions within the index ticked up in the first three months of 2024. Japan (+11%) fared best, followed by Europe ex U.K. (+6%). In contrast, Asia Pacific ex Japan (-1%) and emerging markets (+2%) underperformed the broader market.

In fixed income, U.S. taxable investment-grade bonds, as measured by the Bloomberg U.S. Aggregate Bond Index, returned -0.78%, as a late-2023 bond rally stalled amid stubborn inflation and strong economic data. Although yield-advantaged, credit-sensitive sectors largely delivered solid excess returns in Q1, results were mixed on a total-return basis. Investment-grade corporate debt topped U.S. Treasurys but slightly trailed U.S. government-related securities. Among securitized segments of the market, commercial mortgagebacked securities and asset-backed securities gained, whereas government-agency mortgage-backed securities underperformed. As for tax-exempt debt, the Bloomberg Municipal Bond Index returned -0.39%, despite favorable supply/demand dynamics for the quarter. Elsewhere, both high-yield (+1.51%) bonds and emergingmarkets debt (1.40%) finished the quarter in positive territory. U.S. Treasury Inflation-Protected Securities (+0.26%) and short-term bonds (+1.30%) also rose.

BROAD ASSET CLASS RETURNS (%) PERIOD ENDING MARCH 31, 2024

2014

Best

13.7

13.5

P

13.0

e

12.1

r f

9.1

o

7.1

r

m

6.0

a n

5.5

c

0.9

e 0.1

-1.8

Worst

-4.2

Dispersion of Returns*

17.9

2015 13.6 5.7 3.3 1.4 1.2 0.5 0.1 -0.5 -2.9 -2.9 -3.8 -14.6

28.2

2016 17.6 17.5 17.3 12.0 11.6 10.2 7.1 4.0 3.0 2.6 0.3 0.2

17.3

Calendar-Year Returns 2017 2018 2019 2020

37.8 30.2 24.5 21.8 16.8 13.7 9.3 7.5 5.4 3.5 1.9 0.9

1.9 1.3 0.0 -0.3 -1.5 -2.3 -4.4 -4.6 -8.3 -10.0 -13.9 -14.2

36.4 31.5 27.8 26.5 22.8 18.9 14.4 14.4 8.7 7.5 6.9 2.3

38.5 20.0 18.7 18.4 8.4 7.8 7.5 6.1 5.9 5.2 2.8 0.7

36.9 16.1 34.1 37.8

2021 28.7 27.6 25.2 18.2 12.9 5.7 5.3 1.5 0.0 -1.5 -1.5 -2.2

2022 1.5 -7.3 -7.5 -8.5 -11.2 -13.0 -14.1 -16.5 -18.1 -18.4 -19.7 -29.1

2023 42.7 26.3 18.2 17.4 13.5 11.5 10.5 10.3 6.4 5.5 5.2 4.4

30.9 30.6 38.3

Average Annual

Cumulative

5 Year 3 Year 1 Year 6 Mos 3 Mos

18.5 15.0 10.3 9.9 7.7 4.0 3.0 2.6 2.1 1.6 0.9 0.4

12.5 11.5 8.1 5.2 3.0 2.6 2.2 0.8 -0.4 -1.1 -2.5 -4.7

39.0 29.9 21.4 20.3 15.5 11.1 9.5 8.6 5.3 3.1 1.7 1.6

27.2 23.5 21.2 19.3 16.8 10.8 10.6 8.7 7.5 6.0 4.2 2.7

11.4 10.6 9.0 6.9 5.7 2.4 1.5 1.4 1.3 0.3 -0.4 -0.8

18.2 17.2 37.3 24.5 12.2

U.S. Core Stocks U.S. Growth Stocks U.S. Value Stocks U.S. SMID-Cap (Small- and

Mid-cap) Stocks

Non-U.S. DevelopedMarkets Stocks

Emerging-Markets Stocks High-Yield Bonds Emerging-Markets Bonds Investment-Grade Bonds Inflation-Protected Bonds Municipal Bonds Short-Term Bonds

Periods greater than one year are annualized. Source: FMR *Difference between best- and worst-performing asset classes over the given time period You cannot invest directly in an index. Past performance is no guarantee of future results. U.S. Core Stocks - S&P 500 Index, U.S. Growth Stocks - Russell 1000 Growth Index, U.S. Value Stocks - Russell 1000 Value Index, U.S. SMID-Cap (Smalland Mid-cap) Stocks - Russell 2500 Index, Non-U.S. Developed-Markets Stocks - MSCI World ex USA Net Mass, Emerging-Markets Stocks - MSCI Emerging Markets Index, High-Yield Bonds - ICE BofA U.S. High Yield Constrained Index, Emerging-Markets Bonds - J.P. Morgan Emerging Markets Bond Index Global, Investment-Grade Bonds - Bloomberg U.S. Aggregate Bond Index, Inflation-Protected Bonds - Bloomberg U.S. 1-10 Year Treasury Inflation-Protected Sevurities (TIPS) Index (Series-L), Municipal Bonds - Bloomberg Municipal Bond Index, Short-Term Bonds - Bloomberg U.S. 3 Month Treasury Bellwether Index

2 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this report.

QUARTERLY INVESTMENT COMMENTARY | AS OF MARCH 31, 2024

Q&A

John Stone Chief Investment Officer

Catherine Pena Chief Investment Officer

Overview of Strategic Advisers Funds

"What are the Strategic Advisers Funds"

? Strategic Advisers Funds are mutual funds, offered exclusively to clients enrolled in Fidelity? Wealth Services. Each Strategic Advisers Fund, also referred to as a multi-structure fund, owns various investment vehicles in a single fund to achieve a specific investment objective. These Funds can serve as the primary building blocks for your Fidelity managed account.

? Strategic Advisers LLC, the investment adviser for the Funds, selects affiliated sub-advisers, unaffiliated sub-advisers (Blended only), mutual funds, exchange-traded funds (ETFs), and other investments for each Fund.

? Our investment process combines proprietary research and investment selection with ongoing monitoring and oversight. Combining various investment vehicles with differing, but complementary, investment styles can be critical to managing risk and enhancing returns over time.

"What does this mean to you"

Strategic Advisers believes there are several benefits to using these Funds, including:

? Access: These Funds allow us to provide you access to institutional strategies within your Fidelity Wealth Services account that are not available to retail investors.

? Control: These Funds provide the opportunity for better control of the investment strategy and risks. We can define specific investment mandates for sub-advisers, a level of control not available through mutual funds or ETFs.

? Pricing: Negotiated management fee schedules with sub-advisers can help lower overall Fund costs.

An interview with Chief Investment Officers John Stone and Cathy Pena

Q: John, how did the Strategic Advisers Funds perform in the first quarter of 2024

J.S. It was a strong start to the year. Twelve of 14 Funds outpaced their respective benchmarks whereas two modestly underperformed. Meanwhile, 10 Funds topped their peer group averages. Looking back over trailing 1-year period, 12 Funds outperformed their benchmarks and nine topped their peer group averages. The longer-term performance of our lineup remained solid, as the majority of Funds surpassed their benchmarks over the past three and five years.

Q: What were some key drivers of the Funds' performance the past three months

J.S. While large cap stocks continued to lead U.S. equity markets higher, the gap between large and small, growth and value tightened significantly from last year. Overseas, Japanese equities led the way, outpacing even U.S. markets. The Nikkei Index continued to eclipse all-time highs during the quarter. Turning to fixed income, yields on U.S. Treasurys rose across the maturity spectrum, reflecting investors' reduced expectations for interest rate cuts by the U.S. Federal Reserve. The uptick in yields led to slightly negative returns for both U.S. Treasurys as well as the broader investment-grade bond market. Corporate credit, as well as high-yield municipal and emerging-markets debt fared best, as fundamentals remained stable and credit spreads compressed. Elsewhere, alternative strategies outperformed cash in Q1, with diversified macro and managed futures strategies performing well, along with commodities.

Q: What do you see ahead, Cathy

C.P. The data is mixed but generally supportive of continued global expansion, in our view. On the positive side, corporate earnings are growing and unemployment remains low. At the same time, recent indications of a potential uptick in inflation, along with strength in the economy, job market and consumer spending have delayed the eventuality of easier Fed monetary policy. This "higher for longer" rate backdrop may ultimately result in an economic slowdown. Within this environment, our Funds are positioned fairly close to their benchmarks.

3 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this report.

QUARTERLY INVESTMENT COMMENTARY | AS OF MARCH 31, 2024

BLENDED - U.S. Stocks

Strategic Advisers? Large Cap Fund (FALCX)

FUND OBJECTIVE/APPROACH

Strategic Advisers? Large Cap Fund (the Fund) is a multimanager investment strategy that seeks capital appreciation by investing primarily in securities and shares of funds with large market capitalizations (which, for purposes of this fund, are those companies with market capitalizations similar to companies in the Russell 1000? Index or the S&P 500? Index).

Niall Devitt Lead Manager

Gopalakrishnan Anantanatarajan Co-Manager

Portfolio Manager Discussion

"In the first quarter of 2024, the Fund gained 11.57%, outperforming the 10.56% advance of the benchmark S&P 500? index and topping the peer group average.

"I'm pleased to report that most of our underlying sub-advisers added value versus the benchmark due to favorable security selection. Specifically, T. Rowe Price (+12%) and JPMorgan Investment Management (+12%) were among the top relative contributors this quarter. The former runs a sector-neutral core strategy and benefited from broadly positive stock picks, especially in the information technology, health care and financials sectors. JPMorgan also manages a core-type approach and did a nice job with investment choices among consumer discretionary, technology and financials companies. Both these managers received a notable lift from their outsized exposure to chipmaker Nvidia, which rose about 82% in Q1. A stake in Fidelity? Growth Company Fund (+15%) was another plus, benefiting from an overweight in Nvidia as well, in addition to a supportive market environment for its high-growth approach. On the downside, Fidelity? SAI U.S. Low Volatility Index Fund (+8%) slightly detracted. This quarter, its defensive positioning could not keep pace with momentum in the S&P 500? index.

"There were several changes to the portfolio in Q1. In January, we defunded growth-focused sub-adviser ClariVest Asset Management after the lead portfolio manager announced plans to retire on March 31. In order to keep the portfolio balanced between growth and value strategies, we also defunded valueoriented Aristotle Capital Management, while maintaining our allocations to value managers in which we have greater conviction. Lastly, in March, we reduced our investment in JPMorgan's Value mandate by half and reallocated those assets into JPMorgan's Large Cap Core strategy. As of quarter end, most of the Fund's assets were allocated to managers pursuing core strategies."

FUND RISKS

Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. These risks may be magnified in foreign markets. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. The fund can invest in ETFs which may trade at a discount to their NAV. Fund of funds bear the risks of the investment strategies of their underlying funds. Securities selected using quantitative analysis can perform differently from the market as a whole as a result of the factors used in the analysis, the weight placed on each factor, and changes in the factors' historical trends.

MANAGER ALLOCATION

Manager

Portfolio Weight

Sub-Adviser Total

83.8%

T. Rowe Price Associates, Inc. U.S. Equity

26.0%

J.P. Morgan Investment Mgmt Inc. U.S. Equity Large Cap

16.5%

PineBridge Investments LLC U.S. Equity

7.9%

AllianceBernstein L.P. U.S. Equity

7.0%

FIAM LLC U.S. Equity - Sector Managed

5.0%

Brandywine Global Investment Management U. S. Equity

4.8%

DE Shaw Investment Management, LLC U.S. Equity

4.4%

Wellington Management Co LLP/USA U.S. Equity - Large Cap

4.2%

LSV Asset Management U.S. Equity

3.4%

Loomis Sayles & Co L.P. U.S. Equity

2.4%

Principal Global Investors, LLC U.S. Equity

2.2%

Top Mutual Fund Positions

10.1%

Fidelity Growth Company Fund

5.3%

Fidelity SAI U.S. Low Volatility Index Fund

2.7%

Fidelity SAI U.S. Large Cap Index Fund

2.1%

Remaining Investments

6.1%

Manager allocations are as of the end of the reporting period and may not be representative of the fund's current or future investments. Excludes money market investments.

4 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this report.

QUARTERLY INVESTMENT COMMENTARY | AS OF MARCH 31, 2024

BLENDED - U.S. Stocks

Strategic Advisers? Small-Mid Cap Fund (FSCFX)

FUND OBJECTIVE/APPROACH

Strategic Advisers? Small-Mid Cap Fund (the Fund) is a multimanager investment strategy that seeks capital appreciation by investing primarily in stocks of small- and mid-cap companies, as defined by the Russell 2500? Index.

Barry Golden Lead Manager

Mark Mahoney Co-Manager

Portfolio Manager Discussion

"In the first quarter of 2024, the Fund gained 8.26%, topping the 6.92% advance of the benchmark Russell 2500? Index and outpacing the peer group average. Within the small-to-mid-cap market, investors largely favored high-quality companies at the larger end of the spectrum, aiding the Fund's underlying active managers.

"Within the portfolio, sub-adviser Portolan Capital Management (+18%) was the foremost relative contributor in Q1 by a sizable margin. This manager benefited from a large position in Super Micro Computer (+255%), a maker of high-end servers and networking solutions for data centers and cloud applications. Picks in consumer-focused sectors also helped. The U.S. Small-Mid Cap Quality Focus Index mandate from Geode (+12%) added value as well. This strategy follows a rules-based index-tracking approach that seeks to own SMID-cap companies exhibiting superior quality characteristics, while also exhibiting a growth bias, both of which drove its strong result. A stake in Fidelity Advisor? Small Cap Growth Fund (+14%) also was advantageous. This fund's emphasis on higher-quality SMID-cap stocks, along with a momentum tilt, served it well in Q1.

On the other hand, the SMID-Cap Growth mandate from ArrowMark Partners (+2%) was the largest relative detractor, pressured by its contrarian approach to the market, which hurt amid the riskdriven momentum this quarter. Fidelity? Small Cap Index Fund (+5%) also modestly detracted. We use this fund as a risk-management position to help manage exposure to small-cap equities.

"This past quarter we increased the Fund's allocation to BlackRock's Russell 2500 Alpha Tilts mandate. This is a quantitative strategy that sticks closely to the sector weights within the Russell 2500 Index and reflects our emphasis on managers offering core strategies."

FUND RISKS

Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. These risks may be magnified in foreign markets. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The securities of smaller, less well-known companies can be more volatile than those of larger companies. The fund can invest in ETFs which may trade at a discount to their NAV. Fund of funds bear the risks of the investment strategies of their underlying funds.

MANAGER ALLOCATION

Manager

Portfolio Weight

Sub-Adviser Total

75.8%

J.P. Morgan Investment Mgmt Inc. U.S. Equity

9.5%

Geode U.S. Equity

8.4%

William Blair Invst Mgmt U.S. Equity

7.8%

Portolan Capital Management U.S. Equity

7.1%

AllianceBernstein L.P. U.S. Equity - Small-Mid Cap Value

6.5%

Boston Partners Global Investors Inc U.S. Equity - Small-Mid Cap Value

5.7%

LSV Asset Management U.S. Equity

5.6%

ArrowMark Colorado Holdings LLC U.S. Equity Small-Mid Cap Growth

5.5%

GW&K Investment Management, LLC U.S. Equity

5.1%

BlackRock Investment Mgmt LLC U.S. Equity

4.9%

ArrowMark Colorado Holdings LLC U.S. Equity

4.9%

River Road Asset Managment, LLC U.S. Equity Small-Mid Cap Value

4.8%

Top Mutual Fund Positions

24.2%

Fidelity Small Cap Index Fund

9.3%

Fidelity Advisor Small Cap Growth Fund Class Z

5.5%

Fidelity SAI Small-Mid Cap 500 Index Fund

4.8%

Fidelity Securities Lending Cash Central Fund 5.39%

4.6%

Remaining Investments

0.0%

Manager allocations are as of the end of the reporting period and may not be representative of the fund's current or future investments. Excludes money market investments.

5 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this report.

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