Strategic Advisers Funds - Fidelity Investments

QUARTERLY INVESTMENT COMMENTARY | AS OF JUNE 30, 2023

Strategic Advisers? Funds

Key Takeaways

? In the second quarter of 2023, seven of 14 Strategic Advisers Funds

outpaced their respective benchmarks, one performed about in line and six trailed. Longer-term comparisons remained solid.

? Continued global economic expansion, falling commodity prices and

generally disinflationary trends provided a favorable environment for risk assets in Q2. U.S. equities led the way, powered by a small group of large-cap growth stocks.

? Within the domestic equity market, growth-oriented equities handily

outpaced their value counterparts across the market-capitalization spectrum. Market leadership was narrow, largely dominated by a handful of sizable information technology companies. From a factor standpoint, high-growth outperformed, quality was about in line with the broader market and low volatility lagged.

? Looking abroad, international developed-markets (DM) equities were

unable to keep pace with the U.S. but topped emerging-markets (EM) stocks. Within DM, Japan was the top-performing country, followed by several markets in Europe, while the Asia Pacific ex Japan region trailed. Among major EM economies, Brazil fared the best, whereas China notably underperformed.

? Against a backdrop of rising short- and long-term interest rates,

taxable U.S. investment-grade bonds posted modestly negative returns this past quarter. High-yield corporate credit and EM debt were among the few categories to deliver positive returns. Municipal bond performance, while negative overall, held up better than most areas of the taxable market.

? Turning to alternative strategies, trend-following managed futures and

global macro approaches did well, while defensive strategies and those focused on commodities struggled.

* 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 JUNE 30, 2023

Market Recap

Asset prices around the world rallied, producing mixed returns in the second quarter of 2023 amid continued global economic expansion, falling commodity prices, a slowing in the pace of inflation in some markets, and an easing in the pace of monetary policy tightening by the U.S. Federal Reserve and other central banks. In June, the Fed held interest rates steady ? its first pause ? and signaled it was prepared to raise rates next month if the economy and inflation do not cool further. This backdrop provided a favorable backdrop for higher-risk assets, causing sentiment to improve among investors.

Against this dynamic backdrop, domestic stocks advanced 8.39% for the quarter, according to the Dow Jones U.S. Total Stock Market Index. The top-performing sectors were information technology (+17%), consumer discretionary (+13%) and communication services (+12%). Conversely, utilities (-3%) trailed by the widest margin, while energy was roughly flat, in part due to falling prices for crude oil. The consumer staples (+1%) sector also lagged, as did real estate and materials (+2% each). Large-capitalization stocks outpaced smalland mid-caps for the quarter, while growth topped value.

Overseas, international equities gained 2.51% for the second quarter, as measured by the MSCI ACWI (All Country World Index) ex USA Index. By region within the index, Japan (+6%), Canada (+4%) and Europe ex U.K. (+3%) led the way. In contrast, Asia Pacific ex Japan (-2%) trailed the most, followed by emerging markets (+1%) and the U.K. (+2%). From a sector perspective, two growth-oriented groups stood out to the upside: information technology and industrials (+6% each). Financials (+5%), utilities and energy (+4% each) also fared well. On the other hand, communication services (-5%) stocks lagged by the widest margin. Materials (-3%) also notably underperformed.

Turning to fixed income, U.S. taxable investment-grade bonds returned -0.84% in Q2, per the Bloomberg U.S. Aggregate Bond Index. All major market segments in the index posted a negative return, with the exception of short-term U.S. Treasuries. U.S. corporate bonds were roughly flat, along with agency bonds and commercial mortgage-backed securities. The Bloomberg Municipal Bond Index was essentially flat as investor demand for tax-exempt debt cooled from its robust first-quarter pace though this was counterbalanced by a manageable supply of new issuance. Elsewhere with bond markets, high-yield (+1.61%) and emergingmarkets debt (+1.53%) advanced as well. Lastly, U.S. Treasury Inflation-Protected Securities (-1.42%) came under pressure whereas short-term bonds increased 1.26%.

BROAD ASSET CLASS RETURNS (%) PERIOD ENDING JUNE 30, 2023

2013

Best

36.8

33.5

P

32.5

e

32.4

r f

21.2

o

14.7

r

m

0.1

a n

-2.0

c

-2.3

e -2.6

-5.6

Worst

-6.6

Dispersion of Returns*

43.4

2014 13.7 13.5 13.0 12.1 9.1 7.1 6.0 5.5 0.9 0.1 -1.8 -4.2

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

Calendar-Year Returns 2016 2017 2018 2019

17.6 37.8 1.9 36.4 17.5 30.2 1.3 31.5 17.3 24.5 0.0 27.8 12.0 21.8 -0.3 26.5

11.6 10.2 7.1 4.0 3.0 2.6 0.3

16.8 13.7 9.3 7.5 5.4 3.5 1.9

-1.5 -2.3 -4.4 -4.6 -8.3 -10.0 -13.9

22.8 18.9 14.4 14.4 8.7 7.5 6.9

0.2

0.9 -14.2 2.3

17.3 36.9 16.1 34.1

2020 38.5 20.0 18.7 18.4 8.4 7.8 7.5 6.1 5.9 5.2 2.8 0.7

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

30.9

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

30.6

Average Annual

Cumulative

5 Year 3 Year 1 Year 6 Mos 3 Mos

15.1 12.3 8.1 6.5

14.6 14.3 13.7 12.3

27.1 19.6 17.7 13.6

29.0 16.9 11.5 8.8

12.8 8.7 5.2 4.1

4.8

9.5 11.5 5.4

3.1

3.2

3.2

8.9

5.1

1.6

2.8

2.7

6.8

5.1

1.5

1.8

1.3

3.7

3.8

1.2

1.6

1.1

3.2

2.7

1.0

1.3

-0.6

2.2

2.4

-0.1

0.8 -2.7 -0.9 2.1 -0.8

0.8 -4.0 -0.9 1.5 -1.4

14.4 18.6 28.0 27.5 14.2

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 JUNE 30, 2023

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 second quarter of 2023

J.S. Results were mixed. Seven of the Funds outpaced their respective benchmarks, one performed roughly in line and six trailed. Relative to peer group averages, eight Funds outperformed, two were in line and four underperformed. Looking back over the trailing 12 months, eight of 13 Funds topped their benchmarks while five lagged. 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 of the key drivers of the Funds' performance the past three months

J.S. The global equity market rally that began in the first quarter continued despite ongoing debate about the U.S. economic outlook. As expected, the U.S. Federal Reserve paused its rate-hiking program during the quarter. Meanwhile, many central banks overseas continued to raise interest rates as global inflation remained high.

In the U.S., information technology stocks rose 16%, largely due to investor exuberance related to artificial intelligence. So far this year, more than two-thirds of the stocks in the S&P 500? have lagged the index. Outside the U.S., Japan led the way among international developed-markets. While the majority of emerging markets (EM) advanced, the MSCI EM index was up less than 1%, held back by weakness in China. As for fixed income, high-yield credit spreads tightened and remain below average, indicating that the market does not seem overly concerned about a recession.

Q: Any final thoughts for clients, Cathy

C.P. Investors now believe that any recessionary risks have been delayed until 2024. The key questions, however, are how high do interest rates need to be to contain inflation, and can Fed policy slow growth without pushing the economy into recession. Given this looming prospect, our portfolio management teams have become slightly more defensive. Asset-class-wise, our equity managers are making modest adjustments to reduce risk, trimming exposure to value stocks and emphasizing quality and low-volatility factors. In fixed income, managers are incrementally tilting toward U.S. Treasuries and cash over corporate credit.

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 JUNE 30, 2023

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

"For the three months ending June 30, 2023, the Fund gained 8.77%, slightly topping the 8.74% advance of the benchmark S&P 500? index and topping the peer group average. In Q2, reduced concern about the health of U.S. banks, excitement about technology developments in artificial intelligence (AI) and optimism that the Fed was nearing the end of its rate-hiking program provided a favorable backdrop for risk assets.

"Within the Fund, sub-adviser T. Rowe Price (+10%) and Fidelity? Growth Company Fund (+15%) were the top contributors versus the benchmark. T. Rowe Price runs a sector-neutral core strategy and benefited from broadly positive security selection, led by picks in the information technology sector ? particularly among semiconductor companies ? as well as health care and industrials. Fidelity Growth Company's highgrowth style performed well amid the risk-driven market environment. An outsized position in Nvidia, a maker of graphics chips used in video games, cloud computing and AI provided a major boost to this fund's performance. JPMorgan Investment Management's (+9%) Large Cap Research mandate also added value, led by investment choices in communication services, industrials and energy.

"On the downside, Brandywine Global Investment Management (+2%), LSV Asset Management (+4%) and another JPMorgan (+4%) strategy were the largest relative detractors. The common theme with these three managers is that they each pursue valuedriven strategies. Brandywine was hurt by adverse overall positioning in communication services and health care. In the case of LSV and JPMorgan, positive sector allocation was beneficial but weak stock selection across several sectors notably hurt. This quarter, we increased the Fund's allocation to the large-cap core mandate from Wellington Management. We also made adjustments to other underlying managers in order to modestly boost exposure to quality and low volatility, while trimming our value 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

89.0%

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

26.1%

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

15.8%

PineBridge Investments LLC U.S. Equity

8.0%

AllianceBernstein L.P. U.S. Equity

7.1%

Brandywine Global Investment Management U. S. Equity

5.5%

FIAM LLC U.S. Equity - Sector Managed

5.1%

DE Shaw Investment Management, LLC U.S. Equity

4.2%

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

4.1%

LSV Asset Management U.S. Equity

4.0%

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

2.6%

Principal Global Investors, LLC U.S. Equity

2.2%

ClariVest Asset Management LLC U.S. Equity

2.2%

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

2.1%

Top Mutual Fund Positions

5.3%

Fidelity Growth Company Fund

5.3%

Remaining Investments

5.7%

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 JUNE 30, 2023

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

"For the three months ending June 30, 2023, the Fund gained 5.01%, modestly trailing the 5.22% advance of the benchmark Russell 2500 Index but outpacing the peer group average. Within the smallto-mid-cap equity market, the former topped the latter while growth outperformed value. Sector-wise, industrials, information technology and health care led the way, whereas utilities and materials trailed the most. Low-quality stocks, which tend to be more volatile, outperformed.

"Within the Fund, the SMID-Cap Value mandate from sub-adviser River Road (+2%), the SMID Select strategy sub-advised by ArrowMark Partners (+3%) and Boston Partners Global Investors (+4%) were the biggest relative detractors. River Road's quality value approach was out of favor this quarter, while picks among industrials stock also hurt. ArrowMark's opportunistic core approach has a quality orientation, which proved to be a headwind in Q2. Elsewhere, Boston Partners' all-weather value strategy faced an uphill climb stylistically. On the plus side, sub-adviser Portolan Capital Management (+11%) was the top relative contributor. This manager employs an opportunistic core strategy, which, historically, has outperformed when high-volatility stocks are leading the market. It benefited from favorable overall positioning in tech, fueled by a sizable position in Super Micro Computer, a firm that provides products for the artificial intelligence market. The U.S. SmallMid Cap Quality Focus Index mandate from Geode (+6%) ? a quantitative strategy ? provided a further boost, aided by investment choices in financials and an overweight in industrials.

"In April, we reallocated all the assets from the FIAM? SMID Cap Core strategy to William Blair, a subadviser we hired in Q1 that runs a quality-focused SMID-cap core mandate. We also liquidated the Fund's investment in T. Rowe Price Institutional Small Cap Stock Fund due to the upcoming retirement of its lead portfolio manager. These assets also were redeployed to William Blair."

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

84.4%

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

12.5%

Geode U.S. Equity

8.8%

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

8.7%

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

7.5%

Portolan Capital Management U.S. Equity

7.5%

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

7.3%

LSV Asset Management U.S. Equity

7.1%

William Blair Invst Mgmt U.S. Equity

6.3%

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

5.7%

ArrowMark Colorado Holdings LLC U.S. Equity

5.6%

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

5.3%

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

2.1%

Top Mutual Fund Positions

20.4%

Fidelity Securities Lending Cash Central Fund 5.14%

6.4%

Fidelity Advisor Small Cap Growth Fund Class Z

6.0%

Fidelity SAI Small-Mid Cap 500 Index Fund

5.9%

PIMCO StocksPLUS Small Fund Institutional Class

2.1%

Remaining Investments

-4.8%

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.

QUARTERLY INVESTMENT COMMENTARY | AS OF JUNE 30, 2023

BLENDED - International Stocks

Strategic Advisers? International Fund (FILFX)

Wilfred Chilangwa Portfolio Manager

Portfolio Manager Discussion

"For the three months ending June 30, 2023, the Fund gained 3.71%, outpacing the 3.06% advance of the benchmark MSCI EAFE Index and also topping the peer group average. Within international developed markets (DM), Japan led the way, followed by several markets in Europe, whereas the Asia Pacific ex Japan region lagged. Stylistically, growth and value stocks alternated leadership throughout Q2, resulting in the unusual outcome of both information technology and banking stocks being the best performers. The Fund's style-neutral positioning versus the benchmark aided performance amid this shifting backdrop.

"Within the Fund, sub-adviser Causeway Capital Management (+5%) and Fidelity? SAI Japan Stock Index Fund (+6%) contributed the most versus the benchmark. Causeway follows a traditional value approach and benefited from stock selection among financials and industrials firms in the Europe ex U.K. region. Fidelity? SAI Japan Stock Index Fund mirrored the strong performance of that market. Turning to emerging markets (EM), out-of-benchmark stakes in tech firms also added value. Sub-adviser T. Rowe Price (+4%) provided an added lift, benefiting from non-benchmark exposure to the U.S. and EM. There were no major relative detractors in Q2, however Fidelity? SAI International Low Volatility Index Fund (+3%) and the iShares MSCI Australia ETF (+0.2%) were slight negatives. Minimum volatility strategies were generally out of favor during the quarter. Australia, meanwhile, was one of the weakestperforming markets in the MSCI EAFE.

"In June, we hired Wellington Management to manage an International Research Equity mandate. This is a sector-neutral, core strategy that focuses exclusively on international DM. As of quarter end, we continued to keep the portfolio's overall risk level and style tilts close to the benchmark, relying on the expertise of our underlying managers to navigate the current environment."

FUND OBJECTIVE/APPROACH

Strategic Advisers? International Fund (the Fund) is a multimanager investment strategy that seeks capital appreciation by investing primarily in a broadly diversified portfolio of non-U.S. equity securities.

FUND RISKS

Foreign securities are subject to interest-rate, currencyexchange-rate, economic, and political risks, all of which may be magnified in emerging markets. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. 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

46.0%

Arrowstreet Capital, LP International Equity

7.0%

Causeway Capital Mgmt LLC International Equity

6.9%

T ROWE PRICE International Equity

6.6%

Thompson Siegel & Walmsley LLC International Equity

6.5%

MFS International Equity - Research

6.2%

MFS International Value - Equity

6.0%

William Blair Invst Mgmt International Equity

4.0%

Wellington Management Co LLP/USA International Equity - Research

2.8%

Top Mutual Fund Positions

38.2%

Fidelity SAI International Low Volatility Index Fund

5.6%

Artisan International Value Fund Investor Class

5.0%

Fidelity Advisor International Discovery Fund Class Z

5.0%

Fidelity SAI Japan Stock Index Fund

4.8%

Fidelity Overseas Fund

4.0%

Oakmark International Fund Investor Class

3.5%

Fidelity Diversified International Fund

3.0%

Fidelity SAI International Value Index Fund

2.8%

iShares MSCI EAFE Value ETF

2.5%

JOHCM International Select Fund Investor Shares

2.0%

Remaining Investments

15.8%

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.

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

QUARTERLY INVESTMENT COMMENTARY | AS OF JUNE 30, 2023

BLENDED - International Stocks

Strategic Advisers? Emerging Markets Fund (FSAMX)

FUND OBJECTIVE/APPROACH

Strategic Advisers? Emerging Markets Fund (the Fund) is a multimanager investment strategy that seeks capital appreciation by investing primarily in a broadly diversified portfolio of emergingmarkets equity securities.

Wilfred Chilangwa Portfolio Manager

Portfolio Manager Discussion

"For the three months ending June 30, 2023, the Fund gained 1.88%, outpacing the 0.90% advance of the benchmark MSCI Emerging Markets (EM) Index but trailing the peer group average. The big story in Q2 was China's falling equity market. The nation's -10% return aided many active managers who were underweight the world's second-largest economy and biggest component in the index. There was sizable performance divergence among EM countries this past quarter. For example, Brazil (+21%) was the best performer among major economies, whereas Turkey returned about -11%.

"Within the Fund, Fidelity? SAI Emerging Markets Value Index Fund (+4%), along with sub-advisers Schroders Asset Management (+3%) and Acadian Asset Management (+4%), led the way. Fidelity? SAI EM Value Index Fund slightly benefited from security selection and an underweight in China, favorable positioning India, as well as investment choices in Saudi Arabia. An overweight to Brazil provided a notable boost to Schroders' result, as did security selection in financials. Acadian employs a quantitative strategy combining country and economic inputs with bottom-up metrics. This quarter, picks among valueoriented stocks in China, plus investment choices in Taiwan and Saudi Arabia, fueled its return. In contrast, the Greater China mandate from subadviser FIL (-8%) detracted. Advantageous positioning in Taiwan was beneficial but poor security selection in China was a negative. Sector-wise, picks among consumer discretionary firms hurt most. The iShares? MSCI China Index ETF (-9%), which tracks that market's performance, also was detrimental.

"Looking ahead, current low valuations in China and the potential for its recovery to accelerate could boost sentiment and provide a tailwind for EM stocks as a whole. Overall, we plan to keep the Fund's country allocations closely aligned with the benchmark and rely on the stock picking of our underlying managers to navigate the current environment."

FUND RISKS

Foreign securities are subject to interest-rate, currencyexchange-rate, economic, and political risks, all of which may be magnified in emerging markets. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. 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

58.4%

Schroders Emerging Markets Equity

13.3%

FIAM LLC Emerging Markets Equity

13.2%

Acadian Asset Management LLC Emerging Markets Equity

7.6%

FIAM LLC Emerging Markets Equity Concentrated

6.7%

T ROWE PRICE Emerging Markets Equity

5.7%

Causeway Capital Mgmt LLC Emerging Markets Equity

4.1%

Somerset Capt Mgt Emerging Markets Equity

3.4%

FIL Investment Advisors (Bermuda) Emerging Markets Equity

2.3%

FIL Investment Advisors (Bermuda) Emerging Markets Equity - Greater China

2.1%

Top Mutual Fund Positions

36.7%

Fidelity SAI Emerging Markets Value Index Fund

10.9%

Fidelity SAI Emerging Markets Low Volatility Index Fund

8.2%

Fidelity Advisor Emerging Markets Fund Class Z

7.1%

Goldman Sachs Emerging Markets Equity Fund Institutional Shares

3.3%

Fidelity SAI Emerging Markets Index Fund

2.9%

Invesco Developing Markets Fund Class R6

2.3%

Aberdeen Emerging Markets Fund Institutional Service Class

2.0%

Remaining Investments

4.9%

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.

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

QUARTERLY INVESTMENT COMMENTARY | AS OF JUNE 30, 2023

BLENDED - Bonds

Strategic Advisers? Core Income Fund (FPCIX)

FUND OBJECTIVE/APPROACH

Strategic Advisers? Core Income Fund (the Fund) is a multimanager investment strategy that seeks high current income by investing primarily in U.S. investment-grade debt securities.

Jonathan Duggan Portfolio Manager

Portfolio Manager Discussion

"For the three months ending June 30, 2023, the Fund returned -0.58%, outpacing the -0.84% result of the benchmark Bloomberg U.S. Aggregate Bond Index but performing about in line with the peer group average. In Q2, shifting market sentiment was evident in month-to-month results. To this point, after gaining ground in April ? a continuation of the bond market rally that began late last year ? the index turned lower in May, when worries about the U.S. debt ceiling and the prospect of a U.S. government default unnerved investors. The trend continued in June, when the index fell further amid persistently strong economic data that suggested the Fed might need to keep raising rates, as well as maintain them higher for longer than previously anticipated.

"Within the Fund, exposure to U.S. Treasury holdings ? which serve liquidity and risk-management purposes in the portfolio ? dampened performance the past three months. Even though short-term bond yields rose more than long-term yields, long-maturity U.S. Treasuries underperformed the Fund's benchmark. On the plus side, Fidelity? SAI Total Bond Fund (0%) and PIMCO Mortgage Opportunities and Bond Fund (+1%) added value versus the benchmark. The former benefited from having less interest-rate sensitivity than the broader benchmark, along with positions in emerging-markets debt and high-yield corporate credit. PIMCO also was helped by its favorable interest-rate sensitivity, as well as an emphasis on mortgage credit bonds.

"During the quarter, we reduced exposure to the Core Plus mandate from sub-adviser TCW when one of the lead managers for the strategy left the firm. Overall, we continued to increase allocations among core strategies emphasizing MBS and intermediatematurity investment-grade credit, seeking to keep the Fund positioned close to the benchmark."

FUND RISKS

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. The fund may invest in lower-quality debt securities that involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Prepayment of principal prior to a securities maturity can cause greater price volatility if interest rates change. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which may be magnified in emerging markets. The fund can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) that may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. 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

29.4%

FIAM LLC Taxable Bond - Core

10.9%

PGIM, Inc. Taxable Bond - Core

5.2%

PGIM, Inc. Taxable Bond

5.2%

TCW Investment Management Company LLC Taxable Bond - Core

5.2%

FIAM LLC Fixed Income Securitized

2.9%

Top Mutual Fund Positions

53.3%

PIMCO Total Return Fund Institutional Class

12.1%

Fidelity SAI Total Bond Fund

10.4%

Western Asset Core Bond Fund Class I

7.2%

Fidelity SAI U.S. Treasury Bond Index Fund

4.6%

DoubleLine Total Return Bond Fund Class N

3.6%

iShares 7-10 Year Treasury Bond ETF

3.6%

Western Asset Core Plus Bond Fund Class I

3.4%

PIMCO Mortgage Opportunities Fund Institutional Class

3.1%

Voya Intermediate Bond Fund Class I

2.9%

American Funds The Bond Fund of America Class F2

2.4%

Remaining Investments

17.3%

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.

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

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