Fidelity Low-Priced Stock Commingled Pool

[Pages:6]QUARTERLY REVIEW | AS OF SEPTEMBER 30, 2022

Fidelity? Low-Priced Stock Commingled Pool

Investment Approach

? Fidelity? Low-Priced Stock Commingled Pool implements an opportunistic approach, rooted in a strict valuation bias that focuses predominantly on small- and mid-cap companies trading at or below $35 per share or with an earnings yield at or above the median for the Russell 2000? Index.

? Our investment process is based on the belief that many low-priced companies are mispriced and that there are opportunities in so-called 'non-glamour' stocks.

? We seek to buy higher-quality companies with stable growth prospects and that trade at a discount to our estimation of intrinsic (fair) value.

? We supplement these holdings with stakes in firms for which we believe near-term prospects appear challenged, but where we see a meaningful disparity between price and value. We look for opportunities both within and outside the pool's benchmark.

? In managing the pool, we invest with a long-term time horizon and global perspective, seeking to deliver attractive risk-adjusted returns by emphasizing companies we believe offer a degree of downside protection, assessed through rigorous analysis of each firm's income statement and balance sheet.

PERFORMANCE SUMMARY

Cumulative

3 Month

YTD

1 Year

Annualized

3 Year

5 Year

10 Year/ LOP1

Fidelity Low-Priced Stock Commingled Pool Gross Expense Ratio: 0.48% 2

-4.36% -16.88% -11.79% 8.66% 6.46% 7.40%

Russell 2000 Index

-2.19% -25.10% -23.50% 4.29% 3.55% 5.49%

1 Life of Pool (LOP) if performance is less than 10 years. Pool inception date: 03/14/2014. 2 This expense ratio is from the most recent annual report.

Past performance 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 holdings. Current performance may be higher or lower than the performance stated. To learn more or to obtain the most recent month-end performance visit or call your plan's toll free number. Cumulative total returns are reported as of the period indicated.

The Fidelity Low-Priced Stock Commingled Pool is a collective investment trust under the Fidelity Group Trust for Employee Benefit Plans and is managed by Fidelity Management Trust Company (FMTC). It is not a mutual fund. This information is only intended to provide a brief overview of this investment option, which is available only to certain qualified plans and is not offered to the general public. Investments in the pool are not guaranteed by the manager, the plan sponsor or insured by the FDIC.

For definitions and other important information, please see the Definitions and Important Information section of this Quarterly Review.

Manager: Sam Chamovitz Morgen Peck Joel Tillinghast

Start Date: March 14, 2014

Size (in millions): $3,577.39

Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. 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. The securities of small, less well-known companies may be more volatile than those of larger companies. Investments in foreign securities involve risks in addition to those of U.S. investments, including increased political and economic risk, as well as exposure to currency fluctuations. You may have a gain or loss when you sell your units.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

QUARTERLY REVIEW: Fidelity? Low-Priced Stock Commingled Pool | AS OF SEPTEMBER 30, 2022

Performance Review

For the quarter, the shares of the pool returned -4.36%, underperforming the -2.19% result of the benchmark Russell 2000? Index. Longer-term performance comparisons remain favorable. For example, Fidelity? Low-Priced Stock Commingled Pool (-11.79%) significantly outpaced its benchmark (-23.50%) for the 12 months ending September 30, 2022.

The pool trailed its benchmark in the third quarter amid a modest rebound for small-cap growth stocks, which lagged small-cap value stocks ? the focus of the pool ? in prior quarters. In Q3, the Russell 2000? Growth Index gained 0.24%, topping the -4.61% result of the Russell 2000? Value Index. Within the broad Russell 2000? Index, the health care (+7%) sector held up best, followed by energy (+6%), which benefited from elevated prices for crude oil and natural gas. Conversely, the interest rate sensitive real estate (-13%) sector lagged by the widest margin, hurt by the U.S. Federal Reserve's aggressive rate-tightening campaign. The growth-oriented communication services sector returned -11%.

The pool's underperformance of the benchmark the past three months was due to stock selection, especially in health care, consumer discretionary and information technology. A large overweighting in consumer staples also notably hurt.

U.K.-based apparel retailer Next was the largest individual relative detractor. Shares of the company returned roughly -23% for the quarter, falling in September after Next lowered financial guidance for its fiscal year 2023, citing an uncertain macro environment. Next ended the quarter as the pool's 7th-largest holding.

In the technology hardware & equipment industry, our stake in Seagate Technology Holdings (-25%) meaningfully detracted. Shares of the disk-drive manufacturer were pressured after the company reported lower-than-expected earnings in late July, due to weakness in its legacy PC-disk-drive business and a broad-based correction in channel inventory.

Conversely, the pool's position in off-price retailing company Ross Stores (+20%) was the top individual relative contributor this quarter. The stock benefited from the company's better-than-expected Q2 earnings report, issued in August. Although we trimmed our position in Ross the past three months, it was the pool's eighthlargest holding at quarter end.

Lastly, our shares of utility provider PG&E gained roughly 25% the past quarter, boosted by the firm's late-July financial report, in which PG&E stated that equity financing needs were lower than previously expected and that liability revisions were relatively minor. Also, PG&E affirmed its outlook for long-term growth.

Outlook and Positioning

As of September 30, we're dealing with unusually high uncertainty and a number of headwinds ? elevated inflation, rising rates and an ongoing ground war in Europe ? that, quite frankly, are unmatched for many investors. We are trying to be cognizant of the impact these developments could have on the companies held in the pool, as well as on consumer spending and sentiment. This plays into our investment process, as we favor businesses that have compelling demand for their products and services, regardless of the macro backdrop. At the same time, we are keeping an "eyes wide open" mentality, looking to take advantage of opportunities in overly punished companies where we believe there is dislocation between the stock price and the intrinsic value of their businesses.

We don't manage the pool based on a macro view. Rather, we believe we serve the pool best by finding the biggest dislocation between price and value...and that ties back to the conversations we are having with management teams to determine if they are thinking and preparing for a broad range of outcomes for the next one to five years. We continue to focus on management teams that are thinking about a variety of scenarios and preparing for those that could affect their businesses ? economic recession, high inflation, rising input costs and borrowing rates, to name a few - and trying to be opportunistic.

In terms of positioning, there were no major changes to the pool's sector allocations. As always, thank you for your confidence in our stewardship of the pool, and in Fidelity Investments.

CHARACTERISTICS

Valuation Price/Earnings Trailing Price/Earnings (IBES 1-Year Forecast) Price/Book Price/Cash Flow Return on Equity (5-Year Trailing) Growth Sales/Share Growth 1-Year (Trailing) Earnings/Share Growth 1-Year (Trailing) Earnings/Share Growth 1-Year (IBES Forecast) Earnings/Share Growth 5-Year (Trailing) Size Weighted Average Market Cap ($ Billions) Weighted Median Market Cap ($ Billions) Median Market Cap ($ Billions)

Pool

9.7x 8.3x 1.5x 6.7x 12.8%

18.5% 46.0% 8.7% 10.1%

46.8 7.8 0.7

Index

23.6x 16.1x 1.9x 14.7x 6.9%

19.4% 238.2% 32.5% 14.1%

2.5 2.3 0.9

2 | For definitions and other important information, please see Definitions and Important Information section of this Quarterly Review.

QUARTERLY REVIEW: Fidelity? Low-Priced Stock Commingled Pool | AS OF SEPTEMBER 30, 2022

MARKET-SEGMENT DIVERSIFICATION

10 LARGEST HOLDINGS

Market Segment Consumer Discretionary Health Care Financials Consumer Staples Energy Information Technology Industrials Materials Utilities Communication Services Real Estate Other

Index Pool Weight Weight

Relative Weight

Relative Change From Prior Quarter

17.32% 14.52% 12.85% 12.71% 12.08%

10.22% 18.85% 17.25% 3.45% 6.14%

7.10% -4.33% -4.40% 9.26% 5.94%

-0.83% -1.54% 0.68% 0.49% 0.86%

10.47% 6.68% 4.69% 1.22%

12.81% 14.81% 4.00% 3.41%

-2.34% -8.13% 0.69% -2.19%

0.19% -0.02% 0.27% 0.35%

0.78% 0.28% 0.00%

2.70% 6.36% 0.00%

-1.92% -6.08% 0.00%

0.17% 0.97% 0.00%

Holding

Market Segment

UnitedHealth Group, Inc. AutoZone, Inc. Metro, Inc. Elevance Health, Inc.

Health Care Consumer Discretionary Consumer Staples Health Care

Monster Beverage Corp.

Consumer Staples

Unum Group

Financials

Next PLC

Consumer Discretionary

Ross Stores, Inc. Murphy Oil Corp. Chord Energy Corp. 10 Largest Holdings as a % of Net Assets

Consumer Discretionary Energy Energy

28.78%

Total Number of Holdings

858

The 10 largest holdings are as of the end of the reporting period, and may not be representative of the pool's current or future investments. Holdings do not include money market investments.

3-YEAR RISK/RETURN STATISTICS

ASSET ALLOCATION

Asset Class

Index Pool Weight Weight

Relative Weight

Relative Change From Prior Quarter

Domestic Equities

61.24% 98.45% -37.21% 2.75%

International Equities 32.38%

1.55% 30.83% -1.14%

Developed Markets

24.32%

1.19% 23.13% -0.81%

Emerging Markets 8.06%

0.26%

7.80%

-0.32%

Tax-Advantaged Domiciles

0.00%

0.10% -0.10% -0.01%

Bonds

0.00%

0.00%

0.00%

0.00%

Cash & Net Other Assets

6.38%

0.00%

6.38%

-1.61%

Net Other Assets can include pool receivables, pool payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the pool composition categories. Depending on the extent to which the pool invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

Beta Standard Deviation Sharpe Ratio Tracking Error Information Ratio R-Squared 3 years of data required.

Pool 0.74 20.60% 0.39 10.43% 0.42 0.84

Index 1.00 25.47% 0.15

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3 | For definitions and other important information, please see Definitions and Important Information section of this Quarterly Review.

QUARTERLY REVIEW: Fidelity? Low-Priced Stock Commingled Pool | AS OF SEPTEMBER 30, 2022

Definitions and Important Information

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, 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.

CHARACTERISTICS Earnings-Per-Share Growth measures the growth in reported earnings per share over the specified past time period.

Median Market Cap identifies the median market capitalization of the pool or benchmark as determined by the underlying security market caps.

Price-to-Book (P/B) Ratio is the ratio of a company's current share price to reported accumulated profits and capital.

Price/Cash Flow is the ratio of a company's current share price to its trailing 12-months cash flow per share.

Price-to-Earnings (P/E) Ratio (IBES 1-Year Forecast) is the ratio of a company's current share price to Wall Street analysts' estimates of earnings.

Price-to-Earnings (P/E) Ratio Trailing is the ratio of a company's current share price to its trailing 12-months earnings per share.

Return on Equity (ROE) 5-Year Trailing is the ratio of a company's last five years historical profitability to its shareholders' equity. Preferred stock is included as part of each company's net worth.

Sales-Per-Share Growth measures the growth in reported sales over the specified past time period.

Weighted Average Market Cap identifies the market capitalization of the average equity holding as determined by the dollars invested in the pool or benchmark.

Weighted Median Market Cap identifies the market capitalization of the median equity holding as determined by the dollars invested in the pool or benchmark.

IMPORTANT POOL INFORMATION

Relative positioning data presented in this commentary is based on the pool's primary benchmark (index) unless a secondary benchmark is provided to assess performance.

Joel Tillinghast plans to step down from his portfolio management responsibilities in Q4 2023, but will remain at Fidelity as a senior advisor to the Fidelity equity team. On November 16, 2021, Sam Chamovitz and Morgen Peck became co-lead managers of the pool alongside Joel, after having served as co-managers since April 2017 and May 2016, respectively, and will remain co-lead managers following Joel's retirement from managing the pool.

On July 27, 2022, the Low-Priced Stock portfolio management team assumed responsibility for all of the fund's industrials assets, while removing John Mirshekari.

On September 29, 2022, Shadman Riaz came off of the fund.

INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices include reinvestment of dividends and interest income unless otherwise noted.

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.

MARKET-SEGMENT WEIGHTS Market-segment weights illustrate examples of sectors or industries in which the pool may invest, and may not be representative of the pool's current or future investments. They should not be construed or used as a recommendation for any sector or industry.

RELATIVE WEIGHTS Relative weights represents the % of pool assets in a particular market segment, asset class or credit quality relative to the benchmark. A positive number represents an overweight, and a negative number is an underweight. The pool's benchmark is listed immediately under the pool name in the Performance Summary.

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Fidelit y Invest ment s GIPS? Composit e Report

LOW-PRICED STOCK COM POSITE (USD) VERSUS RUSSELL 2000 INDEX

Period

Composite Return (Gross%) Composite Return (Net%) Benchmark Return (%) Number of Portfolios Total Composite Assets End of Period ($M ) Composite 3 Year Standard Deviat ion (Gross%) Benchmark 3 Year Standard Deviation (%) Asset Weighted Standard Deviation (Gross%) Tot al Firm Asset s ($B)

YTD 2022

(16.78) (17.10) (25.10)

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