Strategic Advisers Funds - Fidelity Investments

QUARTERLY INVESTMENT COMMENTARY | AS OF MARCH 31, 2024

Strategic Advisers? Funds

Key Takeaways

FUND LIST*

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

BLENDED?

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 ¨C continued growth

accompanied by moderate inflation ¨C 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.

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)

* 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

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. ¡ö

BROAD ASSET CLASS RETURNS (%)

PERIOD ENDING MARCH 31, 2024

Calendar-Year Returns

Average Annual

Cumulative

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

5 Year

3 Year

1 Year

6 Mos

3 Mos

13.7

13.6

17.6

37.8

1.9

36.4

38.5

28.7

1.5

42.7

18.5

12.5

39.0

27.2

11.4

13.5

5.7

17.5

30.2

1.3

31.5

20.0

27.6

-7.3

26.3

15.0

11.5

29.9

23.5

10.6

13.0

3.3

17.3

24.5

0.0

27.8

18.7

25.2

-7.5

18.2

10.3

8.1

21.4

21.2

9.0

12.1

1.4

12.0

21.8

-0.3

26.5

18.4

18.2

-8.5

17.4

9.9

5.2

20.3

19.3

6.9

9.1

1.2

11.6

16.8

-1.5

22.8

8.4

12.9

-11.2

13.5

7.7

3.0

15.5

16.8

5.7

7.1

0.5

10.2

13.7

-2.3

18.9

7.8

5.7

-13.0

11.5

4.0

2.6

11.1

10.8

2.4

6.0

0.1

7.1

9.3

-4.4

14.4

7.5

5.3

-14.1

10.5

3.0

2.2

9.5

10.6

1.5

5.5

-0.5

4.0

7.5

-4.6

14.4

6.1

1.5

-16.5

10.3

2.6

0.8

8.6

8.7

1.4

0.9

-2.9

3.0

5.4

-8.3

8.7

5.9

0.0

-18.1

6.4

2.1

-0.4

5.3

7.5

1.3

0.1

-2.9

2.6

3.5

-10.0

7.5

5.2

-1.5

-18.4

5.5

1.6

-1.1

3.1

6.0

0.3

-1.8

-3.8

0.3

1.9

-13.9

6.9

2.8

-1.5

-19.7

5.2

0.9

-2.5

1.7

4.2

-0.4

Worst

-4.2

-14.6

0.2

0.9

-14.2

2.3

0.7

-2.2

-29.1

4.4

0.4

-4.7

1.6

2.7

-0.8

Dispersion

of Returns*

17.9

28.2

17.3

36.9

16.1

34.1

37.8

30.9

30.6

38.3

18.2

17.2

37.3

24.5

12.2

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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

An interview with Chief Investment

Officers John Stone and Cathy Pena

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.

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. ¡ö

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.

FUND RISKS

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."

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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