LEADERSHIP SERIES FIRST QUARTER 2020 Quarterly Market Update

LEADERSHIP SERIES FIRST QUARTER 2020 Quarterly Market Update PRIMARY CONTRIBUTORS Lisa Emsbo-Mattingly Jake Weinstein, CFA Director of Asset Allocation Research Analyst, Asset Allocation Research Dirk Hofschire, CFA Ryan Carrigan, CFA SVP, Asset Allocation Research Analyst, Asset Allocation Research

Table of Contents 1. Market Summary 2. Economy/Macro Backdrop 3. Asset Markets 4. Long Term Themes

Market Summary

Favorable policy developments, including further monetary easing by the Federal Reserve and a de-escalation of the U. S. -China trade confrontation, provided additional fuel to power stock markets to a strong finish in 2019. The global business cycle registered signs of improvement in some areas, although it remains relatively mature and the late-cycle U. S. backdrop continues to warrant smaller allocation tilts compared with earlier in the cycle. MACRO Q 4 2019 • Favorable policy developments occurred amid signs global growth is no longer deteriorating. OUTLOOK • The U. S. is firmly in the late cycle phase. • Riskier assets rallied sharply. • The global cycle is still mature but becoming less synchronized. • Late cycle phases typically exhibit higher volatility with a wider dispersion of potential outcomes. • Incipient signs that the global trade and industrial recession is ending. • The near term backdrop may favor more global assets over U. S. • Monetary easing is boosting liquidity, though it may be insufficient to materially reaccelerate global growth. • Smaller allocation tilts are warranted compared with earlier in the cycle. • Trade and other policy uncertainty has not been eliminated but may be ebbing. Diversification does not ensure a profit or guarantee against a loss. 4 ASSET MARKETS • Prioritize diversification—including inflation resistant assets—amid significant uncertainty. SUMMARY Policy Improvement in an Uneven, Mature Expansion

The emerging-market and non-U. S. small cap equity segments led the widespread fourth-quarter gains that put an exclamation point on the best returns for global stocks in several years. For the full year 2019, all major asset categories posted strong results. The shift to monetary easing and lower interest rates boosted returns to bonds, SUMMARY Global Equities Finished Terrific 2019 on a High Note and U. S. large cap equities led the outperformance of U. S. versus non-U. S. stocks. Q 4 2019 (%) 1 Year (%) 9. 1 31. 5 U. S. Mid Cap Stocks 7. 1 Real Estate Stocks 0. 8 U. S. Small Cap Stocks Non U. S. Developed Country Stocks Long Government & Credit Bonds U. S. Large Cap Stocks Q 4 2019 (%) 1 Year (%) Emerging Market Stocks 11. 8 18. 4 30. 5 Gold 3. 0 18. 3 26. 0 Emerging Market Bonds 2. 1 14. 4 9. 9 25. 5 High Yield Bonds 2. 6 14. 4 11. 5 25. 0 U. S. Corporate Bonds 1. 1 13. 8 8. 2 22. 0 Investment Grade Bonds 0. 2 8. 7 1. 1 19. 6 Commodities 4. 4 7. 7 20 -Year U. S. Stock Returns Minus IG Bond Returns since 1926 Annualized Return Difference (%) 14 12 10 8 6 4 2 0 2 1946 Average since 1926: 5% 1. 2% 1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. See Appendix for important index information. Assets represented by: Commodities—Bloomberg Commodity Index; Emerging Market Bonds—JP Morgan EMBI Global Index; Emerging Market Stocks—MSCI EM Index; Gold—Gold Bullion, LBMA PM Fix; High Yield Bonds—ICE Bof. AML High Yield Bond Index; Investment Grade Bonds—Bloomberg Barclays U. S. Aggregate Bond Index; Non U. S. Developed Country Stocks—MSCI EAFE Index; Non U. S. Small Cap Stocks—MSCI EAFE Small Cap Index; Real Estate Stocks—FTSE NAREIT Equity Index; U. S. Corporate Bonds—Bloomberg Barclays U. S. Credit Index; U. S. Large Cap Stocks—S&P 500 ® Index; U. S. Mid Cap Stocks—Russell Midcap ® Index; U. S. Small Cap Stocks— Russell 2000 ® Index; Long Government & Credit Bonds—Bloomberg Barclays Long Government & Credit Index. Source: Bloomberg Finance L. P. , Haver Analytics, Fidelity Investments Asset Allocation Research Team (AART), as of 12/31/19. 5 2018

The supremacy of U. S. large cap equity returns during 2019, particularly in the technology sector, underscored the 10 -year outperformance of growth stocks along with U. S. assets more generally. For the decade, the more cyclical U. S. equity sectors performed best, whereas non-U. S. assets, as well as market segments and equity sectors tied to global commodities, fared relatively poorly. Performance of Major Risk Assets (2010– 2019) U. S. Exposure Global Exposure U. S. Equity Sector Performance (2010– 2019) Cyclical Defensive Growth Info Tech Large Caps Consumer Disc Small Caps Health Care Industrials Value Financials HY Bonds Consumer Staples EM Debt Utilities DM Equities Real Estate EM Equities Comm Services* Gold Materials Commodities Energy 5% Inflation Sensitive 0% 5% 10% Total Return (Annualized) 15% 0% 5% 10% 15% Total Return (Annualized) * Sector was defensive for majority of period until change to GICS structure in 2018. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. See Appendix for important index information. Assets represented by: Growth—Russell 3000 ® Growth Index; Large Caps—S&P 500; Small Caps—Russell 2000 ® Index; Value—Russell 3000 ® Value Index; High Yield (HY) Bonds—ICE Bof. AML High Yield Bond Index; Emerging Market (EM) Debt—JP Morgan EMBI Global Index; Non U. S. Developed Market (DM) Equities—MSCI EAFE Index; EM Equities—MSCI EM Index; Gold—Gold Bullion, LBMA PM Fix; Commodities—Bloomberg Commodity Index. Source: Bloomberg Finance L. P. , Fidelity Investments (AART), as of 12/31/19. 6 20% SUMMARY U. S. Growth and Tech Stocks Dominated the Decade

The expansion of price-to-earnings (P/E) multiples accounted for the bulk of the stellar gains for global equities in 2019. In contrast to 2018, when rapid corporate profit growth was negated by reduced P/E ratios, earnings growth was relatively weak in 2019. Declining interest rates and ebbing policy uncertainty likely supported the sizable appreciation in valuations. Equity Index Performance for 2019 P/E Expansion Reinvestment Return EPS Growth Total Return Equity Index Performance for 2018 Dividend Yield P/E Expansion Reinvestment Return Percent Contribution 40% 32% 30% EPS Growth Total Return Dividend Yield 30% 23% 19% 20% 10% 0% 0% 10% 20% 30% -5% -14% DM EM 40% U. S. DM EM U. S. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. DM: Non U. S. Developed Markets. EM: Emerging Markets. Returns are Gross, USD. Equity indexes: United States—MSCI USA Index; DM—MSCI World ex USA Index; EM—MSCI Emerging Markets Index. Reinvestment Return is defined by Morningstar as the difference between compounded monthly total returns and the sum of the sub components. Source: MSCI, Fidelity Investments (AART), as of 12/31/19. 7 SUMMARY Rising Valuations Powered Equity Performance in 2019

Historically, U. S. stocks have outperformed bonds during the late-cycle phase. However, performance patterns in late cycle have tended to be more mixed than during other cycle phases. From late-cycle starts since 1950, stocks have fallen about one-third of the time. Since October 2018—the month we believe the U. S. entered the late-cycle phase—U. S. stocks have outperformed bonds, albeit with significantly greater volatility. U. S. Equity Less IG Debt Cumulative Performance in Late Cycle (1950– 2019) Current Cycle Index Level (Start of Late Cycle = 100) 130 120 110 100 90 80 70 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Months Since Start of Late Cycle Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. Indexes: U. S. Equity—S&P 500 Index; Investment Grade (IG) Debt—Bloomberg Barclays U. S. Aggregate Bond Index. Colored lines represent prior late cycle relative performance. Source: Haver Analytics, Fidelity Investments (AART), as of 12/31/19. 8 23 24 25 26 SUMMARY Stock Performance Less Consistent During Late Cycle

SUMMARY Bond Yields Ticked Up in Q 4 but Sank Notably for the Year Government bond yields declined around the world during 2019, with U. S. 10 -year Treasury bonds dropping roughly 80 basis points. Global central banks’ shift toward monetary easing—particularly the Fed’s pivot— drove down the real cost of borrowing, and real U. S. yields finished the year in barely positive territory. Inflation expectations rose modestly during Q 4, boosting yields amid signs of global economic improvement. 10 -Year U. S. Government Bond Yields Inflation Expectations Real Yields 2019 Yield Change (bps) Nominal Yield Inflation Expectations Real Yields Nominal Yield 4. 00% +6 -83 -77 3. 50% 3. 00% 2. 50% 2. 00% 1. 9% 1. 50% 1. 8% 1. 00% 0. 50% 0. 00% 0. 1% Source: Bloomberg Finance L. P. , Fidelity Investments (AART), as of 12/31/19. 9 Dec 2019 Aug 2019 Apr 2019 Dec 2018 Aug 2018 Apr 2018 Dec 2017 Aug 2017 Apr 2017 Dec 2016 Aug 2016 Apr 2016 Dec 2015 Aug 2015 Apr 2015 Dec 2014 Aug 2014 Apr 2014 Dec 2013 Aug 2013 Apr 2013 Dec 2012 Aug 2012 Apr 2012 Dec 2011 Aug 2011 Apr 2011 Dec 2010 Aug 2010 Apr 2010 1. 00% Dec 2009 0. 50%

Economy/Macro Backdrop

Fidelity’s Asset Allocation Research Team (AART) believes that asset-price fluctuations are driven by a confluence of various factors that evolve over different time horizons. As a result, we employ a framework that analyzes trends among three temporal segments: tactical (short term), business cycle (medium term), and secular (long term). DYNAMIC ASSET ALLOCATION TIMELINE HORIZONS Secular (10– 30 years) Business Cycle (1– 10 years) Tactical (1– 12 months) Portfolio Construction Asset Class | Country/Region | Sectors | Correlations For illustrative purposes only. Source: Fidelity Investments (AART), as of 12/31/19. 11 ECONOMY Multi Time Horizon Asset Allocation Framework

The global economy remains sluggish, but we see signs that conditions are no longer deteriorating. The U. S. is firmly in the late-cycle phase, whereas recessionary conditions in major European nations such as Germany and Italy may be poised for improvement. Overall, the global cycle remains in a mature expansion but with hints of improvement in some areas along with signs of a bottoming in global trade and industrial activity. Business Cycle Framework Spain Brazil, Australia, Canada France U. S. , Japan, South Korea UK Mexico, India Germany, Italy China* Note: The diagram above is a hypothetical illustration of the business cycle. There is not always a chronological, linear progression among the phases of the business cycle, and there have been cycles when the economy has skipped a phase or retraced an earlier one. * A growth recession is a significant decline in activity relative to a country’s long term economic potential. We use the “growth cycle” definition for most developing economies, such as China, because they tend to exhibit strong trend performance driven by rapid factor accumulation and increases in productivity, and the deviation from the trend tends to matter most for asset returns. We use the classic definition of recession, involving an outright contraction in economic activity, for developed economies. 12 Source: Fidelity Investments (AART), as of 12/31/19. ECONOMY Mature but Less Synchronized Global Business Cycle

China’s industrial sector stabilized in early 2019, but unlike it has during prior upturns, the sector’s recovery has not yet catalyzed a sharp rebound in global trade and manufacturing activity. Only 35% of major countries’ Purchasing Manager Indexes are in expansionary territory—near the lowest levels of the past decade. This ratio appears to have bottomed, though, and trade-policy uncertainty may produce less of a headwind in 2020. Global Manufacturing and China Industrial Production Share AART China Diffusion Index represents share of components rising over previous six months. Gray bars represent China growth recessions as defined by AART. Source: ISM, Markit, China National Bureau of Statistics (official data), Haver Analytics, Fidelity Investments (AART), as of 11/30/19. 13 ECONOMY Industrial Recession Ending but Upside Uncertain

ECONOMY China Emphasizing Stability Over Outright Stimulus Unlike during other periods of global softening over the past decade, China’s policymakers are lately emphasizing just enough fiscal and monetary support to maintain stability, but not so much as to reaccelerate growth. In an effort to deal with the aftermath of a decade-long property and leverage boom, policymakers are selectively easing, with an objective of keeping credit growth and the housing market relatively range-bound. China Credit and Property Market Total Credit Growth Housing Sales Year over Year 35% 60% 50% 30% 40% 25% 30% 20% 15% 0% 10% 5% 2007 14 10% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Gray bars represent China growth recessions as defined by AART. Source: China National Bureau of Statistics (official data), Haver Analytics, Fidelity Investments (AART), as of 11/30/19. 2017 2018 20% 2019

ECONOMY Europe: Trade Drag Might be Ebbing, Sentiment Improving The global industrial and trade recession sapped momentum from major European economies, particularly those like Germany, where domestic growth relies heavily on the country’s export sector. In late 2019, signs of a bottoming in manufacturing activity and a de-escalation of trade tensions helped lift business and economic sentiment from depressed levels. Employment Reliance on Foreign Trade Eurozone Economic Sentiment Share of Countries with Improving Sentiment over Last 6 Months Share of Employment from Exports Share (3 Month Moving Average) 30% 100% 25% 75% 20% 50% 15% 10% 25% 15 LEFT: Share of domestic business sector employment sustained by exporting activities. Source: OECD, Fidelity Investments (AART), as of 9/30/19. RIGHT: European Commission, Haver Analytics, Fidelity Investments (AART), as of 11/30/19. 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 0% 2006 U. S. China Japan Mexico Canada UK S. Korea Germany 0% Sweden 5%

Late cycle is often characterized as the phase during which economic and corporate activity peaks. Inflation rates are not always high, but tight labor markets tend to spur faster wage growth, which in turn can lead to more restrictive monetary policy, a flatter yield curve, and pressure on corporate profit margins. The U. S. has hit all of the typical late-cycle milestones, with the exception that credit conditions remain generally favorable. INDICATOR Employment/Wages Monetary Policy Yield Curve Credit Corporate Profits Source: Fidelity Investments (AART), as of 12/31/19. 16 TYPICAL LATE-CYCLE TREND THIS CYCLE Tighter labor markets, higher wages Tighter Flatter then inverted Tighter lending standards and wider credit spreads Χ Margins decline, slower earnings growth ECONOMY U. S. Economy in Late Cycle, but Credit Not Yet Tighter

ECONOMY U. S. Bright Spots: Housing, Labor Market, and Consumer The near-term risk of U. S. recession remains relatively low, with falling interest rates boosting housing activity and keeping consumers’ debt service manageable. Tight employment conditions support consumer spending. However, some leading indicators suggest the labor market is nearing peak levels, including consumers’ extremely favorable assessment of the job market, which tends to be most elevated just prior to recession. U. S. Housing Consumer Assessment of Labor Market Conference Board Survey New Housing Permits Year Over Year (3 Month Moving Average) Jobs: Plentiful Minus Hard to Get 15% 60% 40% 10% 20% 5% 0% 20% 0% 40% 5% 60% 10% Nov 15 80% Nov 16 Nov 17 Nov 18 Nov 19 0 19 19 19 20 20 68 71 74 77 80 83 86 89 92 95 98 01 04 07 10 13 16 19 LEFT: Source: Census, Haver Analytics, Fidelity Investments (AART), as of 11/30/19. RIGHT: Shading represents U. S. economic recession as defined by the National Bureau of Economic Research (NBER). Source: Conference Board, NBER, Haver Analytics, Fidelity Investments (AART), as of 11/30/19. 17

Market consensus expectations for 2020 earnings growth stand at 9%, which would be a big rebound from 2019’s expectations, which declined steadily down to 1. 6%. With companies facing an extremely tight labor market, it’s difficult for earnings growth to accelerate meaningfully absent material improvement in the global economic environment. Thus, we expect profit growth to act as a fundamental late-cycle headwind in 2020. S&P 500 Earnings Growth Estimates 2019 Typical Forms of Earnings Support 2020 Year over Year Top-Line Revenues 12% Global recovery 9. 0% 8% Weaker dollar Boosts sales for exporters and large multi nationals Higher oil prices Helps energy sector Profit Margins 4% Slower wage growth Lowers input costs Dovish Fed Lowers interest expense Financial Engineering 1. 6% Dec 19 Nov 19 Oct 19 Sep 19 Aug 19 Jul 19 Jun 19 May 19 Apr 19 Mar 19 Feb 19 Jan 19 Dec 18 Nov 18 Oct 18 Sep 18 Aug 18 Jul 18 May 18 Apr 18 Mar 18 Jun 18 Buybacks 0% Past performance is no guarantee of future results. Source: Bloomberg Finance L. P. , Fidelity Investments (AART), as of 12/27/19. 18 Boosts EPS ECONOMY Earnings Face A Difficult Expectations Hurdle for 2020

ECONOMY Improving Sentiment Could Reduce the Drag on Capex Capital spending slumped in 2019 amid weak growth and trade-policy disruption, although recent sentiment indicators suggest business confidence may no longer be deteriorating. The de-escalation of the U. S. -China tariff confrontation could provide a boost to business sentiment, although the apparently narrow scope of the deal is considered unlikely to clear the air and spur investment activity on its own. U. S. Capital Investment Real Capex CFO Outlook for Capex Year over Year (4 Quarter Moving Average) Year over Year 30% 10% 25% 8% 20% 6% 15% 4% 10% 5% 2% 0% 0% 5% 2% 10% 4% 15% 6% 20% 8% 25% 30% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Shaded area represents U. S. recession. Source: Bureau of Economic Analysis, Duke Fuqua School of Business/CFO Magazine, Haver Analytics, Fidelity Investments (AART), as of 12/11/19. 19 2017 2018 10% 2019

ECONOMY Monetary Policy Not Fully Transmitting to Corporate Sector Although typical late-cycle tightening of credit conditions has yet to occur in the U. S. , we may be seeing some early warning signs. Despite the Fed’s dovish stance, U. S. banks tightened commercial & industrial lending standards during Q 4. Moreover, the average stock price of technology companies with a recent IPO dropped 40%, a development that might slow the previously ample flow of private equity capital to new firms. Bank Lending Standards for Commercial Loans Stock Returns for Recent Tech IPOs Hundrends % Tightening Minus Easing Median of 16 Largest Tech IPOs 20% 0% 15% 10% Tighter 20% 5% 30% 0% 40% 5% 50% 10% Easier 20 LEFT: Source: Federal Reserve Board, Haver Analytics, Fidelity Investments (AART), as of 11/20/19. RIGHT: IPOs include Lyft, Snap, Pinterest, Spotify, Uber, Dropbox, Peloton, Grubhub, Zoom, Tradeweb, Tesla, Beyond Meat, Smile Direct, Blue Apron, We. Work, and Crowd Strike. Source: Bloomberg Finance L. P. , Fidelity Investments (AART), as of 12/31/19. Nov 19 Oct 19 Sep 19 Aug 19 Jul 19 Jun 19 May 19 2018 2017 2016 2015 2014 2013 2012 80% 2011 25% 2010 70% 2009 20% Apr 19 60% Mar 19 15%

Core inflation has been generally stable at around 2% in recent years, with near-term expectations holding firm. The outlook for oil also is supportive, as prices have generally trended higher over the past several months amid a decline in inventories. The Fed is likely to be more permissive of inflationary pressure than in the past, implying an inclination to keep rates at current levels absent a major inflection in growth or inflation. Oil Price and Inventories U. S. Inflation Core CPI Oil Price (WTI) AART Estimate Year over Year 2. 5% 100% U. S. Crude Oil Inventories (Inverted) Year over Year 15% 80% 10% 60% 2. 3% 40% 5% 20% 0% 2. 0% 0% 20% 5% 40% 1. 8% 60% 10% 80% 21 Jun 2020 Dec 2019 Jun 2019 Dec 2018 Jun 2018 Dec 2017 Jun 2017 Dec 2016 Jun 2016 Dec 2015 Jun 2015 Dec 2014 Jun 2014 Dec 2013 100% Jun 2013 1. 5% 15% De Ju De Ju De Ju De c n c n c n c 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 LEFT: Core CPI: Consumer Price Index excluding food and energy. Source: Bureau of Labor Statistics, Haver Analytics, Fidelity Investments (AART), as of 11/30/19. RIGHT: Source: EIA, CME, Haver Analytics, Fidelity Investments (AART), as of 12/31/19. ECONOMY Inflation Outlook Firm; Federal Reserve Likely on Pause

ECONOMY Central Banks’ Easing Boosts Global Liquidity Growth After normalizing balance sheets for much of 2018, major central banks re-engaged in extraordinary monetary policy in 2019. The ECB restarted QE with 20 billion euros of monthly security purchases, and the Fed began buying $60 B of Treasury bills monthly and expanded its repo operations to relieve money market stress. These actions helped boost asset prices and provide a positive liquidity environment to start 2020. Central Bank Balance Sheets Estimate Total UK Japan Eurozone Billions (12 Month Change) $2, 500 $2, 000 $1, 500 $1, 000 $500 $0 Dotted line estimates future central bank assets: Federal Reserve to purchase $60 B of Treasury bills per month in 2020 Q 1, European Central Bank (ECB) to purchase € 20 B per month in Q 1, Bank of England to maintain constant balance sheet, Bank of Japan to purchase at annualized rate of 22 average purchases over last 12 months. Source: Haver Analytics, Fidelity Investments (AART), as of 11/30/19. Mar 2020 Sep 2019 Mar 2019 Sep 2018 Mar 2018 Sep 2017 Mar 2017 Sep 2016 Mar 2016 Sep 2015 Mar 2015 Sep 2014 Mar 2014 Sep 2013 Mar 2013 Sep 2012 Mar 2011 $1, 000 Sep 2011 $500

Global economic policy uncertainty rose to unprecedented levels in recent years amid an unclear outlook for monetary policies, trade conflict, Brexit, and a host of other issues. However, central banks’ shift to global monetary easing and the de-escalation of the U. S. -China trade confrontation late in 2019 offered hope that uncertainty may prove less of a headwind for business confidence in 2020. Policy Outlook Scorecard Global Economic Policy Uncertainty Unfavorable Favorable Cautious 2019 2020 Index Potential Trend Change Long Term Average = 100 350 Deregulation 300 Monetary Policy 250 200 U. S. Fiscal 150 ROW Fiscal Easier policies in Japan, China, Europe? Trade Policy U. S. China de escalation continues? U. S. Elections Rising uncertainty? 100 50 0 19 19 19 20 20 20 20 20 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 LEFT: ROW: Rest of world Source: Fidelity Investments (AART), as of 12/31/18. RIGHT: Source: Economic Policy Uncertainty, Fidelity Investments (AART), as of 11/30/19. 23 ECONOMY Policy Uncertainty Abated as 2020 Approached

The U. S. and China reportedly reached an agreement during Q 4 to reduce certain U. S. tariffs, providing a tactical boost to sentiment after sustained escalation over the past two years generated a confidence headwind for businesses. However, the deepening geopolitical rivalry makes broader agreement on bilateral commercial issues less tractable, implying U. S. -China tensions remain a medium-term risk to the global trade system. U. S. -China Relationship Global Trade Interdependence Geopolitical Rivalry Strategic Competition Trade Military Hegemony in Asia IT Sector/ Advanced Industrials Consumer and Other Goods Industrial Policy Issues Tariffs/ Market Access • IP protection • Export controls • Investment restrictions RIGHT: The size of the circles represents total trade. The thickness of lines represents the volume of trade flows. The size of the circle and proximity to other countries represent importance and interconnectedness. Gray circles represent other countries. Source: International Monetary Fund, Haver Analytics, Fidelity Investments (AART), as of 12/31/15. 24 China U. S. ECONOMY U. S. China De Escalation Positive but No Game Changer

Fidelity’s Business Cycle Board, composed of portfolio managers responsible for a variety of global asset allocation strategies, believes that, outside of the U. S. , the global economy is showing signs of stabilization after several quarters of deterioration. The Board believes that any advances from here hinge on sustained improvement in corporate sentiment and the effectiveness of global monetary stimulus. Business Cycle Risks U. S. firmly in late cycle phase Monetary and trade policy uncertainty China’s economic slowdown has stabilized China’s uncertain outlook and policy response Asset Allocation Implications Current environment warrants smaller asset allocation tilts and a diversified strategy Policymakers’ shift to a more accommodative stance may support global asset markets Non U. S. equities and inflation sensitive assets are attractive from valuation and diversification perspectives 25 For illustrative purposes only. Diversification does not ensure a profit or guarantee against a loss. Source: Fidelity Investments (AART), as of 12/31/19. ECONOMY Outlook: Market Assessment

Asset Markets

Global equities finished strong in Q 4, with emerging markets leading the way. For 2019 overall, almost all asset classes logged sizable absolute gains, with U. S. growth stocks and the tech sector the top performers. In fixed income, long-duration bonds proved the worst-performing sector in Q 4 but registered nearly a 20% gain for the year. Riskier credit categories such as high yield and EM debt led in Q 4 and had strong full-year results. International Equities and Global Assets Total Return U. S. Equity Styles Total Return Q 4 2019 Growth 10. 7% 35. 8% ACWI ex USA 8. 9% 21. 5% Large Caps 9. 1% 31. 5% Canada 4. 9% 27. 5% Mid Caps 7. 1% 30. 5% EAFE Small Cap 11. 5% 25. 0% Value 7. 5% 26. 3% Europe 8. 8% 23. 8% Small Caps 9. 9% 25. 5% EAFE 8. 2% 22. 0% Japan 7. 6% 19. 6% U. S. Equity Sectors Total Return EM Asia 12. 5% 19. 2% Emerging Markets 11. 8% 18. 4% Fixed Income Total Return Q 4 2019 Long Govt & Credit 1. 1% 19. 6% EM Debt 2. 1% 14. 4% High Yield 2. 6% 14. 4% Credit 1. 1% 13. 8% Aggregate 0. 2% 8. 7% Leveraged Loan 1. 7% 8. 6% TIPS 0. 8% 8. 4% CMBS 0. 3% 8. 3% Municipal 0. 7% 7. 5% Treasuries 0. 8% 6. 9% MBS 0. 7% 6. 4% Q 4 2019 Info Tech 14. 4% 50. 3% Latin America 10. 5% 17. 5% Communication Services 9. 0% 32. 7% EMEA 9. 9% 15. 5% Financials 10. 4% 32. 1% Gold 3. 0% 18. 3% Agency 0. 1% 5. 9% Industrials 5. 5% 29. 3% Commodities 4. 4% 7. 7% ABS 0. 4% 4. 5% Real Estate 0. 5% 29. 0% Consumer Discretionary 4. 5% 27. 9% Consumer Staples 3. 5% 27. 6% Utilities 0. 8% 26. 4% Materials 6. 4% 24. 6% Health Care 14. 4% 20. 8% Energy 5. 5% 11. 8% U. S. Equity Factors Total Return Q 4 2019 Low Volatility 6. 0% 30. 9% Value 11. 3% 30. 0% Quality 8. 1% 27. 9% Size 7. 8% 25. 5% Momentum 5. 3% 25. 4% Yield 8. 5% 24. 3% EM: Emerging Markets. EMEA: Europe, the Middle East, and Africa. For indexes and other important information used to represent above asset categories, see Appendix. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. Sector returns represented by S&P 500 sectors. Sector investing involves risk. Because of its narrow focus, sector investing may be more volatile than 27 investing in more diversified baskets of securities. Source: Bloomberg Finance L. P. , Fidelity Investments (AART), as of 12/31/19. ASSET MARKETS Strong Quarter For Risk Assets, Strong Year for Everything

Typically, the mid-cycle phase favors riskier asset classes, resulting historically in broad-based gains across most asset categories. Meanwhile, late cycle has produced the most mixed performance results of any business-cycle phase. Another frequent feature of the late cycle has been an overall more limited upside for a diversified portfolio, although returns for most asset categories have, on average, been positive. Asset Class Performance in Mid- and Late-Cycle Phases (1950– 2016) Stocks High Yield Commodities Investment Grade Bonds Annual Absolute Return (Average) 20% 10% 0% 28 Mid Cycle: Strong Asset Class Performance Late Cycle: Mixed Asset Class Performance • Favor economically sensitive assets • Broad based gains • Favor inflation resistant assets • Gains more muted Diversification does not ensure a profit or guarantee against a loss. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. Asset class total returns are represented by indexes from the following sources: Fidelity Investments, Morningstar, and Bloomberg Barclays. Fidelity Investments source: a proprietary analysis of historical asset class performance, which is not indicative of future performance. ASSET MARKETS Late Cycle: Less Favorable Risk Return Profile

Historically, this phase of the business cycle has had implications for asset market forward returns. When the U. S. economy has been in the mid-cycle phase, forward 12 -month real returns have been generally positive, displaying a favorable distribution skewed to above-average returns. But as expansion matures into late cycle, the forward distribution of real equity returns has typically displayed a less favorable, more negative skew. Subsequent Stock Market Returns Given Business Cycle Phase (1952– 2019) Late Mid Frequency 4 3 2 1 0 48% 43% 38% 33% 29% 24% 19% 14% 10% 5% 0% 5% 9% 14% 19% 24% Total Return over the Next 12 Months 29 Past performance is no guarantee of future results. The above charts are density plots generated from the 12 month forward returns of a U. S. Equity Index sourced from Fidelity Investments. Source: Standard & Poor’s, Fidelity Investments (AART), as of 9/30/19. 28% 33% 38% 43% ASSET MARKETS Stocks’ Return Profile Less Favorable During Late Cycle

Earnings growth across all regions finished the year on a weak note. U. S profit growth continued to slow following the tax-reform boost in 2018, while non-U. S. earnings growth spent the entire year of 2019 in negative territory. Forward estimates point to market expectations for a significant recovery in earnings growth in 2020, which may be difficult to achieve absent a sustained reacceleration of global growth. Global EPS Growth (Trailing 12 Months) U. S. DM EM Change (Year over Year) 40% 30% Forward EPS 20% 14. 9% 10. 2% 6. 7% 10% 0% 10% 20% 2012 30 2013 2014 2015 2016 2017 Past performance is no guarantee of future results. DM: Developed Markets. EM: Emerging Markets. EPS: Earnings per share. Forward EPS: Next 12 months expectations. Source: MSCI, Bloomberg Finance L. P. , Fidelity Investments (AART), as of 12/31/19. 2018 2019 ASSET MARKETS Expectations for a Reacceleration in Global Earnings

ASSET MARKETS Equity Valuations Rose, Mixed Relative to History Rising stock prices in the U. S. pushed global equity valuations higher during Q 4. In the U. S. , P/E ratios rose further above their long-term historical average; P/Es for non-U. S. developed and emerging markets, on the other hand, remained below their long-term averages. Global Market P/E Ratios DM Trailing P/E EM Trailing P/E U. S. Trailing P/E Forward P/E Ratio 30 25 20 Forward P/E DM Long-Term Average U. S. Long-Term Average EM Long-Term Average 15 DM EM 10 5 2004 31 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 DM: Non U. S. Developed Markets. EM: Emerging Markets. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. See Appendix for important index information. Price to earnings ratio (P/E): stock price divided by earnings per share. Also known as the multiple, P/E gives investors an idea of how much they are paying for a company’s earnings power. Long term average P/E for Emerging Markets includes data for 1988– 2017; for Non U. S. Developed Markets, 1973– 2016; for the United States, 1926– 2017. Indexes: DM—MSCI EAFE Index; EM—MSCI EM Index; United States—S&P 500. Source: Bloomberg Finance L. P. , Fidelity Investments (AART), as of 12/31/19. 2018 2019

CAPE (cyclically adjusted P/E) ratios for international developed- and emerging-market equities remained below those for the U. S. , providing a relatively favorable long-term valuation backdrop for non-U. S. stocks. In Q 4, the U. S. dollar generally depreciated against many of the world’s major currencies; nevertheless, U. S. dollar valuations still remain relatively expensive overall. Cyclically Adjusted P/Es 11/30/19 20 Year Range Shiller CAPE 100 90 Valuation of Major Currencies vs. USD Last 12 Month Range 12/31/19 Valuation of Real Exchange Rates 80 10% Expensive vs. $ 5% 0% 70 5% 60 10% 50 Cheap vs. $ 15% 40 20% 20 25% 10 30% 0 35% Russia Turkey South Korea Spain China UK EM Australia Germany Indonesia Brazil Mexico Italy DM Canada Philippines Japan France India U. S. 30 GBP JPY MXN DM: Developed Markets. EM: Emerging Markets. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. See Appendix for important index information. LEFT: Price to earnings (P/E) ratio (or multiple): stock price divided by earnings per share, which indicates how much investors are paying for a company’s earnings power. Cyclically adjusted earnings are 10 year averages adjusted for inflation. Source: Fact. Set, countries’ statistical organizations, Haver Analytics, Fidelity Investments (AART), as of 11/30/19. RIGHT: GBP—British pound; JPY—Japanese yen; MXN —Mexican peso; CAD—Canadian dollar; EUR—euro; CNY—Chinese yuan. 32 Source: Federal Reserve Board, Haver Analytics, Fidelity Investments (AART), as of 12/31/19. CAD EUR CNY ASSET MARKETS Non U. S. Equity and Currency Valuations Remain Attractive

ASSET MARKETS Muted Inflation Expectations Relative to Recent History Historically, the late cycle has often experienced rising inflation pressure, which has tended to enhance the attractiveness of inflation-sensitive assets such as TIPS and commodities. Our near-term outlook for core inflation is relatively range-bound, but market expectations for inflation (represented by TIPS’ breakeven rates) are at the lower end of their decade-long range, suggesting inflation protection is relatively inexpensive. Relative Asset Performance by Cycle Phase (1950– 2016) Mid U. S. Treasury Breakeven Inflation Rates 10 Year Late Hit Rate Yield 100% 2. 8% 90% 2. 6% 80% 2. 4% 70% LT Average (Since 1998) 2. 2% 60% 2. 0% 50% 1. 8% 40% 1. 6% 30% 1. 4% 20% Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. TIPS: Treasury Inflation Protected Securities. Hit Rate: frequency of one asset class outperforming another. Results are the difference between total returns of the respective periods represented by indexes from the following sources: Fidelity Investments, Morningstar, and Bloomberg Barclays. 33 Fidelity Investments source: proprietary analysis of historical asset class performance, which is not indicative of future performance, as of 12/31/19. 2019 2018 2017 2016 2015 2014 2013 2012 Commodities vs. U. S. Equities 2011 TIPS vs. IG Bonds 2010 1. 0% 0% 2009 1. 2% 10%

A disciplined business-cycle approach to sector allocation seeks to generate active returns by favoring industries that may benefit from cyclical trends. Economically sensitive sectors historically have performed better in the early and mid-cycle phases of an economic expansion. Meanwhile, companies in defensive and more inflation-sensitive sectors have tended to outperform late in the cycle. Business-Cycle Approach to Sectors Sector Financials Real Estate Consumer Discretionary Information Technology Industrials Materials EARLY CYCLE Rebounds MID CYCLE Peaks LATE CYCLE Moderates RECESSION Contracts + ++ ++ + + ++ ++ + ++ ++ ++ Making marginal portfolio allocation changes to manage drawdown risk with sectors may enhance risk adjusted returns during this cycle. Defensive and inflation resistant sectors tend to perform better, while more cyclical sectors underperform. Since performance is generally negative in recessions, investors should focus on the most defensive, historically stable sectors. Consumer Staples Health Care Energy Communication Services Utilities Economically sensitive sectors may tend to outperform, while more defensive sectors have tended to underperform. Past performance is no guarantee of future results. Sectors as defined by GICS. White line is a theoretical representation of the business cycle as it moves through early, mid, late, and recession phases. Green and red shaded portions above respectively represent over or underperformance relative to the broader market; unshaded (white) portions suggest no clear pattern of over or underperformance. Double +/– signs indicate that the sector is showing a consistent signal across all three metrics: full phase average performance, median monthly difference, and cycle hit rate. 34 A single +/– indicates a mixed or less consistent signal. Return data from 1962 to 2016. Source: Fidelity Investments (AART), as of 12/31/19. ASSET MARKETS Business Cycle Approach to Equity Sectors

ASSET MARKETS Equity Styles: Value Starting to Look Attractive Growth outperformed value stocks over the past decade by 3. 5 percentage points on an annualized basis. The growth-value relative performance was highly correlated with commodity prices, which may have stopped declining amid a stabilizing global economy. Equity sectors with a high concentration of value stocks, including financials and energy, could benefit in such an environment. Equity Styles and Commodities Value vs. Growth Raw Industrials Year over Year Relative Equity Sector Weights by Style Index MSCI USA Value Less MSCI USA Growth Relative Weight 25% 20% 15% Value-Oriented Sectors 10% 15% 5% 10% 0% 5% 0% 10% 5% 10% Past performance is no guarantee of future results. LEFT: Value: MSCI USA Value Index; Growth: MSCI USA Growth Index; Raw Industrials: CRB Raw Industrials Index. Source: Commodity Research Bureau, MSCI, Haver Analytics, Fidelity Investments (AART), as of 12/31/19. 35 Info Tech De Ju De Ju De c n c n c 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 Consumer Disc 25% Comm. Svcs 30% Utilities 20% Energy 25% Cons. Staples 15% Financials 20%

During Q 4, risk-on sentiment contributed to modestly higher Treasury rates—but even tighter credit spreads across most bond categories. As a result of accommodative global central banks and benign credit conditions, bond yields generally remain in their lowest decile relative to history, and credit spreads in most categories are generally well below their long-term averages. Fixed Income Yields and Spreads (1993– 2019) Treasury Rates Credit Spread Yield Percentile Spread Percentile Yield and Spread Percentiles 8% 100% 90% 7% 80% 6% 70% 5% 60% 46% 4% 50% 37% 40% 3% 28% 2% 15% 11% 1% 1% 11% 30% 22% 4% 1% 2% Corporate High Yield Emerging Market Debt 0% 20% 10% 0% U. S. Aggregate Bond MBS Long Gov/Credit Corporate Investment Grade Past performance is no guarantee of future results. It is not possible to invest directly in an index. All indexes are unmanaged. See Appendix for important index information. Percentile ranks of yields and spreads based on historical period from 1993 to 2019. MBS: mortgage backed 36 securities. Source: Bloomberg Barclays, Bank of America Merrill Lynch, JP Morgan, Fidelity Investments (AART), as of 12/31/19. ASSET MARKETS Tightening Spreads Pushed Bond Valuations Higher

Long-Term Themes

The performance of different assets has fluctuated widely from year to year, and the magnitude of returns can vary significantly among asset classes in any given year—even among asset classes that are moving in the same direction. A portfolio allocation with a variety of global assets illustrates the potential benefits of diversification. Periodic Table of Returns Past performance is no guarantee of future results. Diversification/asset allocation does not ensure a profit or guarantee against loss. It is not possible to invest directly in an index. All indexes are unmanaged. See Appendix for important index information. Asset classes represented by: Commodities— Bloomberg Commodity Index; Emerging Market Stocks—MSCI Emerging Markets Index; Non U. S. Developed Country Stocks—MSCI EAFE Index; Growth Stocks—Russell 3000 Growth Index; High Yield Bonds—ICE Bof. AML U. S. High Yield Index; Investment Grade Bonds—Bloomberg Barclays U. S. Aggregate Bond Index; Large Cap Stocks—S&P 500 Index; Real Estate/REITs—FTSE NAREIT All Equity Total Return Index; Small Cap Stocks—Russell 2000 Index; Value Stocks—Russell 3000 Value Index. Source: Morningstar, Standard & Poor’s, Haver Analytics, 38 Fidelity Investments (AART), as of 12/31/19. LONG TERM Performance Rotations Underscore Need for Diversification

After decades of rapid global integration, economic openness stalled in recent years amid geopolitical shifts and domestic political pressures in many advanced economies. Changes to global rules may pose risks for incumbent companies, industries, and countries that have benefited the most from the rise of a rule-based global order. These risks include greater uncertainty and lower productivity and corporate profit margins. Trade Globalization Global Imports/GDP • Less rules based and less market oriented global system Ratio 25% Secular Risks for Asset Markets More Globalized • Higher political risk • Inflationary pressures 20% • Pressures on productivity growth and corporate profit margins 15% 10% Less Globalized 5% 19 19 19 19 20 20 61 64 67 70 73 76 79 82 85 88 91 94 97 00 03 06 09 12 15 18 39 Source: International Monetary Fund (IMF), World Bank, Haver Analytics, Fidelity Investments (AART), as of 12/31/19. LONG TERM Secular Trend: Peak Globalization

LONG TERM Secular Forecast: Slower Global Growth, EM to Lead Slowing labor force growth and aging demographics are expected to tamp down global growth over the next two decades. We expect GDP growth of emerging countries to outpace that of developed markets over the long term, providing a relatively favorable secular backdrop for emerging-market equity returns. Real GDP 20 -Year Growth Forecasts vs. History Developed Markets Emerging Markets Last 20 Years Annualized Rate 10% Global Real GDP Growth 9% Last 20 years 20 -year forecast 2. 7% 2. 1% 8% 7% 6% 5% 4% 3% 2% Past performance is no guarantee of future results. EM: Emerging Markets. GDP: Gross Domestic Product. 40 Source: OECD, Fidelity Investments (AART), as of 5/31/19. India Indonesia Philippines Malaysia South Africa Peru Colombia Mexico China Thailand Brazil Turkey Russia U. S. South Korea Sweden Australia UK Canada France Netherlands Germany Japan Italy 0% Spain 1%

Slower population growth and aging demographics will provide a more challenging backdrop for U. S. growth over the next 20 years. Labor force growth has continued to decelerate from its peak in the 1960 s and ‘ 70 s, and since 2000 nearly half of this growth came from immigration. Even if productivity rates reaccelerate, it will be difficult for the U. S. to return to the roughly 3% real GDP growth average since World War II. Real GDP Components Labor Force Productivity 20 -Year AART Projections Real GDP Year over Year Growth (20 Year Average) 4. 5% Labor Force Growth 0. 5% Labor Market Productivity 1. 2% Real GDP Growth 1. 7% 4. 0% 3. 5% Productivity Peak (1949– 1969): 3. 0% 2. 5% 2. 1% 2. 0% Labor Force Peak (1962– 1982): 2. 3% 1. 5% 1. 3% 1. 0% 0. 5% 41 Source: Bureau of Economic Analysis, Bureau of Labor Statistics, Haver Analytics, Fidelity Investments (AART), as of 12/31/19. 2019 2017 2015 2013 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 1969 0. 0% 0. 8% LONG TERM Slower U. S. Economic Growth Likely over the Long Term

Over long periods of time, GDP growth has had a tight positive relationship with long-term government bond yields (yields generally have averaged the same rate as nominal growth). We expect interest rates will rise over the long term to an average that is closer to our 3. 7% nominal GDP forecast, but this implies that rates would settle at a significantly lower level than their historical averages. Nominal Government Bond Yields and GDP Growth U. S. Secular Growth Forecast Historical Observations of Various Countries 10 Year Sovereign Yield (20 Year Average) 18% 16% 14% 12% 10% 8% 6% 4% U. S. Next 20 Years Forecast Yield (3. 7%) 2% U. S. Current Yield (1. 9%) 0% 0% 2% 4% 6% 8% 10% 12% GDP Growth (20 Year Average) 42 GDP: Gross Domestic Product. Source: Official Country Estimates, Haver Analytics, Fidelity Investments (AART), as of 12/31/19. 14% 16% 18% LONG TERM Secular Rate Outlook: Higher Than Now, Lower Than History

Starting in 2014, five major central banks, including the BOJ and ECB, enacted negative policy rates in an effort to boost inflation, bank lending, and economic growth. In fact, the impact of negative rates in Europe and Japan has run counter to these intentions. Aging consumers raised savings rates amid lower interest income, bank lending stayed weak as low loan rates pressured banks’ profit margins, and inflation kept well below target levels. Negative Policy Rate Considerations Intended Central Bank Goals Unintended Consequences Global Bank Stocks U. S. Japan Europe Price Index: June 30, 2014 = 100 170 Stimulates consumption Incentivizes bank lending Stimulates savings (German consumers increased savings rate) Hurts bank margins, reduces loan supply (European/Japan banks in doldrums) 160 150 140 130 120 110 Reduces debt service burden Keeping weak firms alive, low productivity 100 90 Bank stocks represented by MSCI Financials Index at regional level in local currency. Source: Bloomberg Finance L. P. , Fidelity Investments 43 (AART), as of 9/30/19. Sep 19 Dec 18 Mar 18 Jun 17 Sep 16 70 Dec 15 Limited impact in a world of low policy rates Mar 15 Weakens currency Jun 14 80 LONG TERM Unintended Consequences of Extraordinary Monetary Policy

Decades of disinflation have dragged down investors’ long-term inflation expectations, underscoring the importance of inflation protection within portfolio diversification. Technological progress and aging demographics might help keep inflation low; however, we believe several factors, including policy changes and “peak globalization” trends, could potentially cause long-term inflation to rise faster than expected. U. S. Inflation Expectations vs. Fed Target Fed Inflation Target 20 Year Inflation Swap Possible Secular Impact on Inflation PCE Secular Factors Year over Year (2 year moving average) Possible Developments 3. 0% Fed targets higher inflation Policy 2. 5% More stimulative fiscal policy Elderly people: 2. 0% Aging Demographics Spend less (reducing demand) Work less (reducing supply) 1. 5% Peak Globalization More expensive goods/labor Technological Progress More robots, Amazon effect 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 0. 5% 2006 1. 0% LEFT: PCE: Personal Consumption Expenditures. Source: Bureau of Labor Statistics, Bloomberg Finance L. P. , Fidelity Investments (AART), as of 5/31/19. RIGHT: Federal Reserve. Source: Fidelity Investments (AART), as of 6/30/19. 44 Risks to Inflation LONG TERM Secular Inflation: Risks on the Upside?

LONG TERM Market Downturns Can Cause Investors to De Risk Data from millions of retirement plan participants can illustrate how investor behavior may change under varying market conditions. During the past two bear markets, many long-term investors reduced allocations to equities and took years to return to their prior equity contribution rates. Excessive focus on short-term market volatility may hamper the ability to achieve the objectives of a sound, diversified, long-term investment plan. Fidelity Plan Participants’ Contribution to Equities S&P 500 Percentage of New Contributions to Stocks Price Contributions 3000 85% 2800 2600 2400 80% 2200 2000 1800 75% 1600 1400 1200 70% 1000 Data from Fidelity’s recordkeeping platform, which services more than 16 million corporate defined contribution (DC) participants. Stock contributions: the percentage of all new directed deferrals (contributions) into stocks by participants via the available investment options in defined contribution plans administered by Fidelity Investments. Shaded areas represent periods when the stock market (S&P 500 Index) fell by 20% or more peak to trough. 45 Diversification does not ensure a profit or guarantee against loss. Standard & Poor’s, Bloomberg Finance L. P. , Fidelity Investments, as of 9/30/19. 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 600 2000 800 65%

Myopic loss aversion describes a common bias in which greater sensitivity to losses than to gains is compounded by the frequent evaluation of outcomes. Historically, investors who review their portfolios more frequently have tended to shift toward more conservative exposures, as increased monitoring raises the likelihood of seeing (and reacting to) a loss. Impact of Feedback Frequency on Investment Decisions Monthly Yearly Stocks 41% Bonds 30% Bonds 59% In a study, subjects were assigned simulated conditions that were similar to making portfolio decisions on a monthly or yearly basis. Source: Thaler, R. H. , A. Tversky, D. Kahneman, and A. Schwartz. “The Effect of Myopia and Loss Aversion on Risk Taking: An Experimental Test. ” The Quarterly Journal of Economics 112. 2 (1997), used by permission of Oxford University Press; Fidelity Investments (AART), as of 12/31/19. 46 Stocks 70% LONG TERM Myopic Loss Aversion Prompts Risk Averse Behavior

Appendix: Important Information presented herein is for discussion and illustrative purposes only and is not a recommendation or an offer or solicitation to buy or sell any securities. Views expressed are as of the date indicated, based on the informa tion available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the 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 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 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. Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk. Nothing in this content should be considered to be legal or tax advice, and you are encouraged to consult your own lawyer, accountant, or other advisor before making any financial decision. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any security, sector, or investment strategy. Fidelity does not provide legal or tax advice and the information provided herein is general in nature and should not be considered legal or tax advice. Consult with an attorney or a tax professional regarding your specific legal or tax situation. Past performance and dividend rates are historical and do not guarantee future results. Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss. Index or benchmark performance presented in this document does not reflect the deduction of advisory fees, transaction charges, and other expenses, which would reduce performance. Indexes are unmanaged. It is not possible to invest directly in an index. Although bonds generally present less short term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments. Additionally, bonds and short term investments entail greater inflation risk—or the risk that the return of an investment will not keep up with increases in the prices of goods and services— than stocks. Increases in real interest rates can cause the price of inflation protected debt securities to decrease. 47 Stock markets, especially non U. S. markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. The securities of smaller, less well known companies can be more volatile than those of larger companies. Growth stocks can perform differently from the market as a whole and from other types of stocks, and can be more volatile than other types of stocks. Value stocks can perform differently from other types of stocks and can continue to be undervalued by the market for long periods of time. Lower quality debt securities generally offer higher yields but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss. Floating rate loans generally are subject to restrictions on resale, and sometimes trade infrequently in the secondary market; as a result, they may be more difficult to value, buy, or sell. A floating rate loan may not be fully collateralized and therefore may decline significantly in value. The municipal market can be affected by adverse tax, legislative, or political changes, and by the financial condition of the issuers of municipal securities. Interest income generated by municipal bonds is generally expected to be exempt from federal income taxes and, if the bonds are held by an investor resident in the state of issuance, from state and local income taxes. Such interest income may be subject to federal and/or state alternative minimum taxes. Investing in municipal bonds for the purpose of generating tax exempt income may not be appropriate for investors in all tax brackets. Generally, tax exempt municipal securities are not appropriate holdings for tax advantaged accounts such as IRAs and 401(k)s. The commodities industry can be significantly affected by commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions. The gold industry can be significantly affected by international monetary and political developments, such as currency devaluations or revaluations, central bank movements, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. Leverage can magnify the impact that adverse issuer, political, regulatory, market, or economic developments have on a company. In the event of bankruptcy, a company’s creditors take precedence over the company’s stockholders.

Appendix: Important Information Market Indexes Index returns on slide 27 represented by: Growth—Russell 3000 ® Growth Index; Large Caps—S&P 500 ® index; Mid Caps—Russell Midcap ® Index; Small Caps—Russell 2000 ® Index; Value—Russell 3000 ® Value Index; ACWI ex USA—MSCI All Country World Index (ACWI); Canada—MSCI Canada Index; Commodities—Bloomberg Commodity Index; EAFE—MSCI EAFE (Europe, Australasia, Far East) Index; EAFE Small Cap—MSCI EAFE Small Cap Index; EM Asia—MSCI Emerging Markets Asia Index; EMEA (Europe, Middle East, and Africa)—MSCI EM EMEA Index; Emerging Markets (EM)—MSCI EM Index; Europe—MSCI Europe Index; Gold—Gold Bullion Price, LBMA PM Fix; Japan—MSCI Japan Index; Latin America—MSCI EM Latin America Index; ABS (Asset Backed Securities)—Bloomberg Barclays ABS Index; Agency—Bloomberg Barclays U. S. Agency Index; Aggregate—Bloomberg Barclays U. S. Aggregate Bond Index; CMBS (Commercial Mortgage Backed Securities)—Bloomberg Barclays Investment Grade CMBS Index; Credit —Bloomberg Barclays U. S. Credit Bond Index; EM Debt (Emerging Market Debt)—JP Morgan EMBI Global Index; High Yield—ICE Bof. AML U. S. High Yield Index; Leveraged Loan—S&P/LSTA Leveraged Loan Index; Long Government & Credit (Investment Grade) —Bloomberg Barclays Long Government & Credit Index; MBS (Mortgage Backed Securities)—Bloomberg Barclays MBS Index; Municipal—Bloomberg Barclays Municipal Bond Index; TIPS (Treasury Inflation Protected Securities)—Bloomberg Barclays U. S. TIPS Index; Treasuries—Bloomberg Barclays U. S. Treasury Index; Low Volatility—Fidelity U. S. Low Volatility Factor Index; Value—Fidelity U. S. Value Factor Index; Quality—Fidelity U. S. Quality Factor Index; Size—Fidelity Small Mid Factor Index; Momentum—Fidelity U. S. Momentum Factor Index TR; Yield—Fidelity High Dividend Index. Bloomberg Barclays ABS Index is a market value weighted index that covers fixed rate asset backed securities with average lives greater than or equal to one year and that are part of a public deal; the index covers the following collateral types: credit cards, autos, home equity loans, stranded cost utility (rate reduction bonds), and manufactured housing. Bloomberg Barclays CMBS Index is designed to mirror commercial mortgage backed securities of investment grade quality (Baa 3/BBB or above) using Moody’s, S&P, and Fitch, respectively, with maturities of at least one year. Bloomberg Barclays Long U. S. Government Credit Index includes all publicly issued U. S. government and corporate securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more of outstanding face value. Bloomberg Barclays Municipal Bond Index is a market value weighted index of investment grade municipal bonds with maturities of one year or more. Bloomberg Barclays U. S. Agency Bond Index is a market value weighted index of U. S. Agency government and investment grade corporate fixed rate debt issues. Bloomberg Barclays U. S. Aggregate Bond is a broad based, market value weighted benchmark that measures the performance of the investment grade, U. S. dollar denominated, fixed rate taxable bond market. Bloomberg Barclays U. S. Credit Bond Index is a market value weighted index of investment grade corporate fixed rate debt issues with maturities of one year or more. Bloomberg Barclays U. S. MBS Index is a market value weighted index of fixed rate securities that represent interests in pools of mortgage loans, including balloon mortgages, with original terms of 15 and 30 years that are issued by the Government National 48 Mortgage Association (GNMA), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corp. (FHLMC). Bloomberg Barclays U. S. Treasury Inflation-Protected Securities (TIPS) Index (Series-L) is a market value weighted index that measures the performance of inflation protected securities issued by the U. S. Treasury. Bloomberg Barclays U. S. Treasury Bond Index is a market value weighted index of public obligations of the U. S. Treasury with maturities of one year or more. Bloomberg Commodity Index measures the performance of the commodities market. It consists of exchange traded futures contracts on physical commodities that are weighted to account for the economic significance and market liquidity of each commodity. Dow Jones U. S. Total Stock Market Index SM is a full market capitalization weighted index of all equity securities of U. S. headquartered companies with readily available price data. Fidelity U. S. Low Volatility Factor Index is designed to reflect the performance of stocks of large and mid capitalization U. S. companies with lower volatility than the broader market. Fidelity U. S. Value Factor Index is designed to reflect the performance of stocks of large and mid capitalization U. S. companies that have attractive valuations. Fidelity U. S. Quality Factor Index is designed to reflect the performance of stocks of large and mid capitalization U. S. companies with a higher quality profile than the broader market. Fidelity Small-Mid Factor Index is designed to reflect the performance of stocks of small and mid capitalization U. S. companies with attractive valuations, high quality profiles, positive momentum signals, and lower volatility than the broader market. Fidelity U. S. Momentum Factor Index is designed to reflect the performance of stocks of large and mid capital ization U. S. companies that exhibit positive momentum signals. Fidelity High Dividend Index is designed to reflect the performance of stocks of large and mid capitalization dividend paying companies that are expected to continue to pay and grow their dividends. FTSE® National Association of Real Estate Investment Trusts (NAREIT ®) All REITs Index is a market capitalization weighted index that is designed to measure the performance of all tax qualified REITs listed on the NYSE, the American Stock Exchange, or the NASDAQ National Market List. FTSE® NAREIT® Equity REIT Index is an unmanaged market value weighted index based on the last closing price of the month for tax qualified REITs listed on the New York Stock Exchange (NYSE). ICE Bof. AML U. S. High Yield Index is a market capitalization weighted index of U. S. dollar denominated, below investment grade corporate debt publicly issued in the U. S. market. JPM® EMBI Global Index, and its country sub indexes, tracks total returns for the U. S. dollar denominated debt instruments issued by emerging market sovereign and quasi sovereign entities, such as Brady bonds, loans, and Eurobonds. MSCI All Country World Index (ACWI) is a market capitalization weighted index designed to measure the investable equity market performance for global investors of developed and emerging markets. MSCI ACWI (All Country World Index) ex USA Index is a market capitalization weighted index designed to measure the investable equity market performance for global investors of large and mid cap stocks in developed and emerging markets, excluding the United States.

Appendix: Important Information Market Indexes (continued) MSCI Emerging Markets (EM) Index is a market capitalization weighted index designed to measure the investable equity market performance for global investors in emerging markets. MSCI EM Asia Index is a market capitalization weighted index designed to measure equity market performance of EM countries of Asia. MSCI EM Europe, Middle East, and Africa Index is a market capitalization weighted index designed to measure the investable equity market performance for global investors in the EM countries of Europe, the Middle East, and Africa. MSCI EM Latin America Index is a market capitalization weighted index designed to measure the investable equity market performance for global investors in Latin America. MSCI Europe, Australasia, Far East Index (EAFE) is a market capitalization weighted index designed to measure the investable equity market performance for global investors in developed markets, excluding the U. S. and Canada. MSCI EAFE Small Cap Index is a market capitalization weighted index designed to measure the investable equity market performance of small cap stocks for global investors in developed markets, excluding the U. S. and Canada. MSCI USA Index is a market capitalization weighted index designed to measure the performance of the large and mid cap segments of the U. S. equity market. MSCI USA Value Index is a market capitalization weighted index designed to measure the performance of the large and mid cap segments of the U. S. equity market exhibiting overall value style characteristics. MSCI USA Growth Index is a market capitalization weighted index designed to measure the performance of the large and mid cap segments of the U. S. equity market exhibiting overall growth style characteristics. MSCI Europe Index is a market capitalization weighted index that is designed to measure the investable equity market performance for global investors of the developed markets in Europe. MSCI Canada Index is a market capitalization weighted index designed to measure equity market performance in Canada. MSCI Japan Index is a market capitalization weighted index designed to measure equity market performance in Japan. 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. Russell 3000® Index is a market capitalization weighted index designed to measure the performance of the 3, 000 largest companies in the U. S. equity market. 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 small to mid cap value segment of the U. S. equity market. It includes those Russell 3000 Index companies with lower price to book ratios and lower forecasted growth rates. Russell Midcap® Index is a market capitalization weighted index designed to measure the performance of the mid cap segment of the U. S. equity market. It contains approximately 800 of the smallest securities in the Russell 1000 Index. S&P 500® is a market capitalization weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U. S. equity performance. S&P 500 is a registered service mark of The Mc. Graw Hill Companies, Inc. , and has been licensed for use by Fidelity Distributors Corporation and its affiliates. 49 Sectors and Industries are defined by Global Industry Classification Standards (GICS ®), except where noted otherwise. S&P 500 sectors are defined as follows: Consumer Discretionary—companies that tend to be the most sensitive to economic cycles. Consumer Staples—companies whose businesses are less sensitive to economic cycles. Energy—companies whose businesses are dominated by either of the following activities: the construction or provision of oil rigs, drilling equipment, and other energy related services and equipment, including seismic data collection; or the exploration, production, marketing, refining, and/or transportation of oil and gas products, coal, and consumable fuels. Financials—companies involved in activities such as banking, consumer finance, investment banking and brokerage, asset management, insurance and investments, and mortgage real estate investment trusts (REITs). Health Care—companies in two main industry groups: health care equipment suppliers, manufacturers, and providers of health care services; and companies involved in research, development, production, and marketing of pharmaceuticals and biotechnology products. Industrials—companies that manufacture and distribute capital goods, provide commercial services and supplies, or provide transportation services. Information Technology— companies in technology software and services and technology hardware and equipment. Materials—companies that engage in a wide range of commodity related manufacturing. Real Estate—companies in real estate development, operations, and related services, as well as equity REITs. Communication Services—companies that facilitate communication and offer related content through various media; it includes media companies moved from Consumer Discretionary and internet services companies moved from Information Technology. Utilities—companies considered electric, gas, or water utilities, or that operate as independent producers and/or distributors of power. Standard & Poor’s/Loan Syndications and Trading Association (S&P/LSTA) Leveraged Performing Loan Index is a market value weighted index designed to represent the performance of U. S. dollar denominated institutional leveraged performing loan portfolios (excluding loans in payment default) using current market weightings, spreads, and interest payments. Other Indexes Commodity Research Bureau (CRB) Raw Industrials Index is a sub index of 13 markets: burlap, copper scrap, cotton, hides, lead scrap, print cloth, rosin, rubber, steel scrap, tallow, tin, wool tops, and zinc. Consumer Price Index (CPI) is a monthly inflation indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. London Bullion Market Association (LBMA) publishes the international benchmark price of gold in USD, twice daily. LBMA Gold price auction takes place by ICE Benchmark Administration (IBA) at 10: 30 and 15: 00 with the price set in USD per fine troy ounce.

Appendix: Important Information Definitions Correlation coefficient measures the interdependencies of two random variables that range in value from − 1 to +1, indicating perfect negative correlation at − 1, absence of correlation at 0, and perfect positive correlation at +1. Price-to-Earnings (P/E) ratio is the ratio of a company’s current share price to its current earnings, typically trailing 12 months earnings per share. A Forward P/E calculation will typically use an average of analysts’ published estimates of earnings for the next 12 months in the denominator. Excess return is the amount by which a portfolio’s performance exceeds its benchmark, net (in the case of the analysis in this article) or gross of operating expenses, in percentage points. Option-Adjusted Spread (OAS) is the measurement of the spread between a fixed income security’s rate and the risk free rate of return, which is adjusted to take into account any embedded options. The Chartered Financial Analyst ® (CFA®) designation is offered by CFA Institute. To obtain the CFA charter, candidates must pass three exams demonstrating their competence, integrity, and extensive knowledge in accounting, ethical and professional standards, economics, portfolio management, and security analysis, and must also have at least four years of qualifying work experience, among other requirements. Third party marks are the property of their respective owners; all other marks are the property of FMR LLC. Fidelity Institutional Asset Management ® (FIAM®) provides registered investment products via Fidelity Distributors Company LLC and institutional asset management services through FIAM LLC or Fidelity Institutional Asset Management Trust Company. Personal and Workplace investment products are provided by Fidelity Brokerage Services LLC, Member NYSE, SIPC. Fidelity Clearing & Custody Solutions ® provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, (Members NYSE, SIPC). 912636. 1. 3 © 2020 FMR LLC. All rights reserved. 50