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Asset allocation

ASSET ALLOCATION

Allocate your investments strategically across the asset classes to:

? Help reduce portfolio risk and volatility

? Match your investment strategy to your time horizon, financial situation, and risk tolerance

? Enhance potential for increased and more consistent returns

? Tap into market opportunities

? Avoid the pitfalls of market timing

Short Term

Bonds

Stocks

Note: Implementing this type of strategy exposes your portfolio to market risk and does not ensure a profit or protect against loss.

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Develop Your Plan: Asset Allocation and Portfolio Efficiency

Asset allocation can help you improve portfolio efficiency.

January 1926?December 2012 Performance

100% Intermediate-Term Government Bonds

Allocated Portfolio

100%

Short-Term Investments Stocks

Intermediate-Term Government Bonds

50%

20% 30%

Return: 5.36% Volatility: 4.40%

Return: 6.01% Volatility: 4.57%

This chart was prepared by Strategic Advisers, Inc., using data provided by Ibbotson Associates, Inc., as of 12/31/2012. Stocks are represented by S&P 500? Index, which is an unmanaged group of securities and is considered to be representative of the stock market in general; intermediate-term government bonds are represented by the Intermediate-Term U.S. Government Bond Index; Treasury bills are represented by the 30-day U.S. Treasury bill. Risk is measured by standard deviation calculated using the average monthly returns. Standard deviation does not indicate how the securities actually performed but indicates the volatility of their returns over time. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Stock prices are more volatile than those of other securities. Government bonds and corporate bonds have more moderate short-term price fluctuation than stocks but provide lower potential long-term returns. U.S. Treasury bills maintain a stable value if held to maturity, but returns are only slightly above the inflation rate. It is not possible to invest directly in an index.

Past performance is no guarantee of future results, and results may vary based on market conditions and an individual's particular asset allocation and security selection. These sample strategies show how portfolios may be created with different risk and return characteristics to help meet a customer's goals. You should choose your own investments based on your particular objectives and situation. Asset allocation does not ensure a profit or guarantee against a loss.

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UNDERSTAND YOUR RISK TOLERANCE

Understand your risk tolerance

How conservatively or aggressively you choose to invest depends on your time horizon, current financial situation, and risk tolerance.

Short-term goal

Time Horizon

Long-term goal

LESS AGGRESSIVE

PROFILE

No emergency funds Decreasing future income Large amount of debt

Adequate emergency funds Increasing future income Small amount of debt

Current Financial Situation

MORE AGGRESSIVE PROFILE

Market changes cause anxiety

Risk Tolerance

Comfort with market changes

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Fidelity Brokerage Services, Member NYSE, SIPC, 900 Salem St. Smithfield RI 02917. Copyright 2011 FMR LLC. All rights reserved.

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T ARGET ASSET M IXES

Target Asset Mixes

Short Term

100% Short Term

Conservative

6% Int'l

50% Bonds

30% Short Term

14% Stocks

Balanced

10% Short 15% Term Int'l

40% Bonds

35% Stocks

Growth

5% Short Term

21% Int'l

25% Bonds

49% Stocks

Aggressive

Most

Growth Aggressive

25% Int'l

15% Bonds

60% Stocks

30% Int'l

70% Stocks

May be appropriate for investors who:

? Seek to preserve capital

? Seek to minimize fluctuations in market values

? Seek potential for capital appreciation and some growth

? Have a preference for growth

? Seek aggressive growth

? Can accept the lowest returns in exchange for price stability

? Take an incomeoriented approach with some potential for capital appreciation

? Can withstand moderate fluctuations in market value

? Can withstand significant fluctuations in market value

? Can tolerate wide fluctuations in market values, especially over the short term

? Seek very aggressive growth

? Can tolerate very wide fluctuations in market values, especially over the short term

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Asset Mix Returns

When allocating your portfolio, consider the return and volatility trade-offs.

Short-Term

Conservative

Balanced

Growth

Aggressive Growth

Most Aggressive

Short-Term Investments Domestic Stocks Bonds Foreign Stocks

100%

6% 30%

50% 14%

10%

15%

35% 40%

5%

21% 25% 49%

25% 15% 60%

30% 70%

200%

200%

Annual Ranges of Return

150%

150%

100%

100%

50% 15.20% 11.13%50%

0% -0.04%

-50%

0% 0.06%

-50%

-100%

-100%

Average Return:

3.54%

200%

150%

31.06% -17.67%

100%

17.24%50% 0%

-0.37%-50%

-100% 6.02%

200%

150%

76.57%

100%

23.14%50%

-40.64%

0% -6.18%

-50% -100%

7.92%

200%

109.55%

150% 100% 27.27%50%

-52.92%

0% -10.43%-50%

-100%

8.85%

136.07%

200% 150%

100% 31.91%50%

0%

-13.78%-50%

-60.78%

-100%

9.48%

162.89%

36.12%

-17.36% -67.56%

9.93%

Highest One-Year Return Lowest One-Year Return Highest Five-Year Return Lowest Five-Year Return

Bars show the range of annual returns for each asset mix over the period of January 1926?December 2012.

Data Source: Ibbotson Associates, Inc., 2011 (1926?2012). Past performance is no guarantee of future results. Returns include the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not represent the actual or implied performance of any investment option. Domestic stocks are represented by the S&P 500? Index. The S&P 500? Index is a registered service mark of The McGraw-Hill Companies, Inc., and is a widely recognized, unmanaged index of 500 U.S. common stocks. Bonds are represented by the U.S. Intermediate-Term U.S. Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income. Short-term instruments are represented by U.S. Treasury bills, which are backed by the full faith and credit of the U.S. government. It is not possible to invest directly in an index. Stock prices are more volatile than those of other securities. Government bonds and corporate bonds have more moderate short-term price fluctuation than stocks but provide lower potential long-term returns. U.S. Treasury bills maintain a stable value (if held to maturity), but returns are generally only slightly above the inflation rate. Foreign stocks are represented by the Morgan Stanley Capital International Europe, Australasia, Far East Index for the period from 1970 to the last calendar year. Foreign stocks prior to 1970 are represented by the S&P 500? Index. The purpose of the target asset mixes is to show how target asset mixes may be created with different risk and return characteristics to help meet a participant's goals. You should choose your own investments based on your particular objectives and situation. Remember that you may change how your account is invested. Be sure to review your decisions periodically to make sure they are still consistent with your goals. These target asset mixes were developed by Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company.

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