Fidelity Growth Company Commingled Pool

QUARTERLY REVIEW | AS OF JUNE 30, 2024

Fidelity? Growth Company Commingled Pool

Investment Approach

? Fidelity? Growth Company Commingled Pool is a domestic equity strategy that invests across a spectrum of companies, from blue chip to aggressive growth.

? Our investment approach is anchored by the philosophy that the market often underestimates the duration of a company's growth, particularly in cases where the resiliency and extensibility of the business model are underappreciated.

? We focus on firms operating in well-positioned industries and niches that we find capable of delivering persistent sales and earnings growth.

? This approach typically leads us to companies that we think have the potential to unlock shareholder value through either a growth-enhancing product cycle or an internal catalyst such as a turnaround or acquisition.

? We believe it critical that companies fund their own growth ? through the cash they generate ? and benefit from management teams focused on creating long-term shareholder value.

PERFORMANCE SUMMARY

Cumulative

3 Month

YTD

1 Year

Annualized

3 Year

5 Year

10 Year/ LOP1

Fidelity Growth Company Commingled Pool Class A Gross Expense Ratio: 0.43% 2

8.84%

26.10% 38.72%

9.39%

23.76% 19.27%

Russell 3000 Growth Index

7.80% 19.90% 32.22% 10.33% 18.55% 15.75%

1 Life of Pool (LOP) if performance is less than 10 years. Pool inception date: 12/13/2013. 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 Growth Company 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: Steven Wymer

Start Date: December 13, 2013

Size (in millions): $88,656.64 The value of the fund's domestic and foreign investments will vary from day to day in response to many factors, such as adverse issuer, political, regulatory, market, or economic developments. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. Foreign investments involve greater risks than those of U.S. investments, as well as exposure to currency fluctuations. 'Growth' stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks. You may have a gain or loss when you sell your units.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

QUARTERLY REVIEW: Fidelity? Growth Company Commingled Pool | AS OF JUNE 30, 2024

Performance Review

For the quarter, the pool gained 8.88%, topping the 7.80% advance of the benchmark, the Russell 3000? Growth Index. As always, we focused on firms operating in well-positioned industries and niches that we believe are capable of delivering persistent sales and earnings growth. Importantly, given our focus, long-term performance continues to favor the pool over the benchmark.

U.S. growth stocks shook off a rough April and rose steadily due to resilient corporate profits, a frenzy over generative artificial intelligence and the Federal Reserve's likely pivot to cutting interest rates later this year. Amid this favorable backdrop for higher-risk assets, the index continued its late-2023 momentum and reached midyear just shy of its all-time closing high. Growth stocks led the narrow rally, with only two of 11 sectors within the Russell 3000? Growth Index topping the broader market.

Large-cap growth stocks once again topped the performance leaderboard, adding to a strong year-to-date gain in what was a relatively quiet three months for asset markets. In April, the index returned -4.41%, as inflation remained stickier than expected, spurring doubts of a soft landing for the economy. Reversing course, the benchmark rose 5.96% in May. Tech stocks, particularly AIrelated names, came back into focus, while the bull market finally began to reflect broader participation. At its June meeting, the Fed bumped up its inflation forecast and reduced its outlook from three cuts to one in 2024. The market followed suit, reducing its rate-cut expectations for the second straight quarter. Still, signs of inflation easing helped the benchmark gain 6.43% for the month, boosting its year-to-date result to 19.90%.

For the quarter, growth shares handily topped value, as the Russell 3000? Value Index returned -2.25% in Q2. By sector within the Russell 3000? Growth Index, a continued rally in the stock prices of the largest U.S. companies by market capitalization ? concentrated in information technology (+15%) and communication services (+14%), fanned by AI fervor ? once again stood out. Within tech, semiconductor-related firms gained about 27%, with AI-focused chipmakers Nvidia (+37%) and Broadcom (+22%) leading the way. Hardware and equipment stocks (+21%) also powered the surge, paced by personal-electronics maker Apple (+23%). In communication services, Google parent Alphabet advanced about 21%, while , from the consumer discretionary sector, was up 7%. Conversely, notable laggards included materials (-7%), industrials (-5%) and financials (-5%).

We're pleased that stock selection contributed to performance versus the benchmark for the quarter, led by tech, where semiconductor-related holdings stood out. Here, the pool's top individual contributor by far was a sizable investment in chipmaker Nvidia. After years of investment in the development of chips and software for AI, Nvidia dominates the market for advanced graphics chips that are the lifeblood of new generative AI systems. In midMay, the firm reported financial results for the three months ending April 28 that far exceeded analysts' expectations ? sales roughly tripled, and earnings surged about sevenfold, each setting a quarterly record. In addition, management raised its financial forecast for the firm's next fiscal quarter. We reduced the pool's exposure to Nvidia the past three months, but it was by far the top holding, at roughly 17% of assets, and overweight as of midyear.

Also in tech, an overweight in Pure Storage was the second-largest contributor. Within the sector, the pool owns larger-than-benchmark holdings in niche companies that appear to be attractive, secular growers, including Pure Storage. Shares of the storage hardware and software firm advanced about 24% in Q2, as growth accelerated from strong demand for its all-flash enterprise storage offerings. We modestly added to the stock because we think the firm stands to benefit from further earnings growth. It was among the pool's top holdings and overweights as of June 30.

Conversely, stock selection and an overweight in consumer discretionary hurt, with an outsized stake in longtime pool holding lululemon athletica the biggest individual detractor. Within the sector, we focus on areas with strong underlying growth trends, including athletic apparel brands and retailers. Indeed, lululemon was the pool's No. 9 holding and second-biggest overweight on June 30. But the stock returned -24% the past three months, as the company's earnings growth slowed in response to some execution issues and new product offerings from competitors.

Turning back to tech, it hurt to overweight cloud-software company Salesforce (-15%). Its shares fell sharply in May after the company reported its first quarter of weaker-than-expected revenue since 2006, and also cut its outlook for subscription revenue for the fiscal year. Management cited increased spending scrutiny by its corporate customers. Still, the stock remains a sizable holding and overweight at the end of June, given our positive view of Salesforce' s longer-term growth prospects.

LARGEST CONTRIBUTORS VS. BENCHMARK

Holding

Market Segment

Average Relative Relative Contribution Weight (basis points)*

NVIDIA Corp.

Information Technology

7.72%

192

Pure Storage, Inc. Class A

Information Technology

1.37%

20

Alnylam Pharmaceuticals, Inc.

Health Care

0.30%

16

AbbVie, Inc.

Health Care

-0.94%

13

The Home Depot, Inc.

Consumer Discretionary

-0.65%

13

* 1 basis point = 0.01%.

LARGEST DETRACTORS VS. BENCHMARK

Holding

Market Segment

Average Relative Relative Contribution Weight (basis points)*

lululemon athletica, Inc.

Consumer Discretionary

2.36%

-87

Apple, Inc.

Information Technology

-1.89%

-28

Salesforce, Inc.

Information Technology

0.94%

-24

Broadcom, Inc.

Information Technology

-1.67%

-22

Viking Therapeutics, Inc. Health Care

0.37%

-20

* 1 basis point = 0.01%.

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

QUARTERLY REVIEW: Fidelity? Growth Company Commingled Pool | AS OF JUNE 30, 2024

Outlook and Positioning

As of midyear, the economy appears generally stable against a backdrop of moderating inflation. This bodes well for equities, as we expect earnings to grow and likely to be aided by flat-to-lower interest rates in the near future.

Additionally, geopolitical risk remains. The Russia?Ukraine and Israel?Hamas wars could broaden, threatening to bring the U.S. and/or other countries into a wider conflict. We expect that economic developments will be uneven and challenge some industries and companies harder than others.

As a result of this risk, we continue to focus on companies we think can prosper in an uncertain environment, and we plan to be even more selective in selecting stocks. Specifically, we have increased the pool's positions in some large-capitalization stocks, which we believe can hold up better if there is an unexpected downturn.

In all sectors, the pool holds companies with above-benchmark, long-term growth in sales and earnings per share, reflecting our view that growth for advantaged companies can persist for years.

The pool's allocation to information technology remained by far the largest area of investment, at about 48% of assets at the end of June, making it the top sector overweight. Here, we favor niche companies that we consider attractive, secular growers. For instance, we prefer differentiated semiconductor-related businesses that help power AI and machine-learning workloads, video gaming, and autonomous vehicles. These include AI-focused chipmakers Nvidia and Advanced Micro Devices, among others.

The pool's second-largest area of investment and No. 2 overweight as of quarter end was consumer discretionary, where our allocation represented 16% of assets, down a bit from March 31. Here, ecommerce giant was a big holding and overweight as the second half of 2024 begins.

We are bullish on leaders in athletic apparel and footwear, leading e-commerce providers of goods and services, and off-priced retailers that have executed well and have grown their brands globally. Holdings reflecting this include lululemon athletica and Dick's Sporting Goods, the latter a non-benchmark position we added to the past three months.

The portfolio holds larger-than-benchmark positions in footwear brands Deckers Outdoor and Sketchers, both of which are top-20 holdings at the end of June. We think several secular trends and factors support continued growth for each.

At the end of June, the pool is overweight health care stocks. Here, we focus on companies with differentiated products and pipelines, especially since innovation across multiple modalities will lead to shorter periods of market exclusivity and more competition. Since many early-stage biotechnology firms need capital to grow, those with ample free cash and good data on their programs could lead to them being an attractive buy opportunity during periods of uncertainty. In Q2, we established several small positions in promising biotech stocks that were trading at an attractive price.

Notable sector underweights include financials, industrials and consumer staples.

MARKET-SEGMENT DIVERSIFICATION

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

Index Pool Weight Weight

Relative Weight

Relative Change From Prior Quarter

48.32% 45.83% 2.49% -1.29%

16.15% 12.69%

13.91% 10.56%

2.24% 2.13%

-0.53% 0.05%

11.38% 4.29% 3.26% 2.70% 0.52% 0.46% 0.11% 0.00% 0.00%

12.20% 5.74% 5.67% 3.81% 0.76% 0.64% 0.77% 0.11% 0.00%

-0.82% -1.45% -2.41% -1.11% -0.24% -0.18% -0.66% -0.11% 0.00%

0.41% 0.50% 0.65% 0.02% 0.07% -0.01% 0.09% -0.01% 0.00%

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

49.4x 34.5x 9.8x 32.4x 15.5%

21.0% 136.2% 42.5% 25.0%

1504.0 1279.0

15.0

Index

36.0x 28.4x 12.0x 26.1x 30.4%

15.3% 38.7% 22.2% 22.1%

1448.0 815.2

2.3

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

QUARTERLY REVIEW: Fidelity? Growth Company Commingled Pool | AS OF JUNE 30, 2024

LARGEST OVERWEIGHTS BY HOLDING

Holding NVIDIA Corp. lululemon athletica, Inc. Pure Storage, Inc. Class A Nutanix, Inc. Class A Deckers Outdoor Corp.

Market Segment Information Technology Consumer Discretionary Information Technology Information Technology Consumer Discretionary

Relative Weight

7.54% 1.86% 1.43% 1.05% 1.02%

LARGEST UNDERWEIGHTS BY HOLDING

Holding Microsoft Corp. Apple, Inc. Broadcom, Inc. Meta Platforms, Inc. Class A Tesla, Inc.

Market Segment Information Technology Information Technology Information Technology Communication Services Consumer Discretionary

Relative Weight

-3.70% -1.86% -1.75% -1.31% -1.03%

10 LARGEST HOLDINGS

Holding

Market Segment

NVIDIA Corp.

Information Technology

Apple, Inc.

Information Technology

Microsoft Corp.

Information Technology

, Inc. Alphabet, Inc. Class A Alphabet, Inc. Class C Meta Platforms, Inc. Class A

Consumer Discretionary Communication Services Communication Services Communication Services

Eli Lilly & Co.

Health Care

lululemon athletica, Inc.

Consumer Discretionary

Pure Storage, Inc. Class A

Information Technology

10 Largest Holdings as a % of Net Assets

55.39%

Total Number of Holdings

606

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.

ASSET ALLOCATION

Asset Class

Index Pool Weight Weight

Relative Weight

Relative Change From Prior Quarter

Domestic Equities

96.38% 99.62% -3.24% -0.25%

International Equities 3.42%

0.38%

3.04%

0.19%

Developed Markets

2.39%

0.16%

2.23%

0.21%

Emerging Markets 1.00%

0.22%

0.78%

-0.03%

Tax-Advantaged Domiciles

0.03%

0.00%

0.03%

0.01%

Bonds

0.07%

0.00%

0.07%

0.02%

Cash & Net Other Assets

0.13%

0.00%

0.13%

0.04%

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.

3-YEAR RISK/RETURN STATISTICS

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

Pool 1.10 23.67% 0.26 5.32% -0.18 0.96

Index 1.00 21.08% 0.34

----

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

QUARTERLY REVIEW: Fidelity? Growth Company Commingled Pool | AS OF JUNE 30, 2024

Definitions and Important Information

Information provided in, and presentation of, this document are for informational and educational purposes only and are not a recommendation to take any particular action, or any action at all, nor an offer or solicitation to buy or sell any securities or services presented. It is not investment advice. Fidelity does not provide legal or tax advice.

Before making any investment decisions, you should consult with your own professional advisers and take into account all of the particular facts and circumstances of your individual situation. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in these materials because they have a financial interest in them, 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 Trailing measures the growth in reported earnings per share over trailing one- and five-year periods.

Earnings-Per-Share Growth (IBES 1-Year Forecast) measures the growth in reported earnings per share as estimated by Wall Street analysts.

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.

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 3000 Growth Index is a market-capitalization-weighted index designed to measure the performance of the broad growth segment of the U.S. equity market. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth rates.

Russell 3000 Value Index is a market capitalization?weighted index designed to measure the performance of the broad value segment of the U.S. equity market. It includes those Russell 3000 Index companies with a lower price-to-book ratio and lower forecasted growth rate.

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.

5 |

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download