Description
Strategic Advisers Funds - Fidelity
SHORT-
TERM
FIXED INCOME DOMESTIC EQUITY INTERNATIONAL EQUITY
Investment
Grade High Yield Value Blend Growth Developed
Emerging
Markets
Strategic
Advisers
®
Short
Duration
Fund
Strategic
Advisers
®
Core Income
Fund
Strategic
Advisers
®
Income
Opportuni-
ties Fund
Strategic
Advisers
®
Value Fund
Strategic
Advisers
®
Core Fund
Strategic
Advisers
®
Growth Fund
Strategic
Advisers
®
Small-Mid
Cap Fund
Strategic
Advisers
®
International
Fund
Strategic
Advisers
®
Emerging
Markets Fund
How Strategic Advisers
®
Funds ?t into
the model portfolio
In most cases, the Strategic Advisers Funds will
serve as the key building blocks for the model
portfolio. These funds are exclusive to clients
in Fidelity Portfolio Advisory Service
®
and are
structured so that they may include underlying
Fidelity and non-Fidelity mutual funds and
exchange-traded funds (ETFs),* as well as
sub-advised strategies that include individual
securities.
You bene?t from Strategic Advisers’ ability to
choose from an expanded group of managers,
some of whom were previously available only to
large institutional investors, and take advantage
of Fidelity’s scale to provide the potential for
improved pricing relative to other retail investors.
Why Strategic Advisers, Inc. (Strategic Advisers),
uses a variety of managers
Strategic Advisers believes the ability to
utilize the distinctive skills of a variety of
managers helps the model portfolio with
investment diversi?cation and may also provide
portfolio managers more ?exibility to invest
more adeptly throughout the market cycle, and
potentially allow for better risk management for
our clients.
Strategic Advisers
®
Funds Lineup
The chart below showcases nine Strategic Advisers Funds and their investment focus, ranging from the more
conservative Short Duration Fund to the more aggressive Growth, International, and Emerging Markets Funds.
Please refer to your Investment Proposal or speak with a Fidelity representative for a complete listing of the funds
contained in the model portfolio in which you are invested.
* An ETF is similar to a mutual fund in structure, but trades like a stock. The Strategic Advisers Funds can invest in ETFs, which may
trade at a discount to their NAV.
†
Please note that not all the Strategic Advisers Funds have retained sub-advisers.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
“Managers” for Strategic Advisers Funds
may refer to:
• The underlying mutual fund or ETF that
the Funds invest in, or
• The sub-adviser(s) who manages a portion of the
Fund’s assets and is hired to manage them according
to a set investment mandate as outlined by Strategic
Advisers.
†
This means Strategic Advisers outlines how
he or she will manage the Fund’s assets for which he
or she is responsible.
In both cases, however, the Strategic Advisers
portfolio manager continues to oversee and manage
the overall fund.
Strategic Advisers
®
Funds
Investments designed exclusively for clients in Fidelity Portfolio Advisory Service
®
*Pyramis Global Advisors and Strategic Advisers, Inc., are affiliates of each other and of Fidelity Investments.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Strategic Advisers
®
Core Fund
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PORTFOLIO MANAGERS: Niall Devitt, John A. Stone
“ We use a core satellite approach, combining lower-risk strategies with higher-risk, higher-
opportunity managers.”
BENCHMARK: S&P 500
®
Index
1
SUB–ASSET CLASS: Large Cap
SYMBOL: FCSAX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
AllianceBernstein
(AB)
Sub-
Adviser
A risk-managed, core-focused strategy with a momentum bias. Strategic Advisers
believes this strategy offers a long-tenured portfolio manager with a strong historical
track record, employing a ?exible approach to stock selection and portfolio
construction, and a dynamic approach to managing market risk. The investment team
targets companies with potential for strong earnings growth over the next three
years, where the team’s view is different from consensus. Strategic Advisers believes
this strategy may provide positive alpha over a full cycle, while potentially providing
a competitive return in many market environments.
First Eagle
Investment
Management
Sub-
Adviser
High-risk/high-potential-return manager attempts to focus on pricing inef?ciencies
related to corporate and/or global events such as corporate restructuring, M&A, and
consolidation. Due to the investment characteristics of this strategy, Strategic Advisers
expects to have a modest allocation.
J.P. Morgan
Investment
Management Inc.
Sub-
Adviser
An all-weather, large-cap core strategy that seeks to add value from the best ideas of
its fundamentally driven research team.
JPMorgan U.S.
Large Cap Core
Plus Fund (JLPSX)
Mutual
Fund
Fundamentally driven 130/30 fund. Well diversi?ed (175–225 holdings). Style and
sector neutral vs. S&P 500 Index. With investment characteristics similar to the Index,
the fund may serve as a core holding.
Pyramis Global
Advisors*
Sub-
Adviser
Diversi?ed fundamentally driven mega cap portfolio with a relative value discipline.
The strategy emphasizes secular and cyclical opportunities where the manager has a
different view from consensus. Benchmark-relative portfolio construction and the use
of risk-adjusted price targets seek to reduce downside risk.
T. Rowe Price Sub-
Adviser
Portfolio is constructed with roughly 30 industry sleeves, each managed by a sector
analyst; the overall portfolio is designed to be beta, sector, market cap, and style
neutral relative to the S&P 500, with analysts’ stock picking within their sector
intended to drive performance. Since its characteristics are close to the benchmark,
it will serve as a core holding.
Strategic Advisers
®
Growth Fund
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PORTFOLIO MANAGERS: John A. Stone, Vincent Zelenko
“ Vincent and I leverage the depth of Strategic Advisers’ research department to select what we
believe are the best growth-at-a-reasonable-price (GARP), quality growth, aggressive growth,
and opportunistic growth strategies, and combine them in a risk-managed approach.”
BENCHMARK: Russell 1000
®
Growth Index
2
SUB–ASSET CLASS: Large Cap
SYMBOL: FSGFX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
ClariVest Asset
Management
Sub-
Adviser
Quantitative portfolio that provides core set of exposure to Russell 1000 Growth
universe. Strategic Advisers believes the portfolio should deviate less from benchmark
compared to the other managers. Manager attempts to construct a risk-controlled
portfolio of companies believed to be undergoing fundamental change. Founded in
2006 by a team that formerly managed money at a competitor, the ?rm only manages
money for institutional investors.
Fidelity
®
Growth
Company Fund
(FDGRX)
Mutual
Fund
An aggressive, bottom-up, all-cap growth strategy that seeks to bene?t from
thoughtful portfolio construction and a macro-economic awareness. The fund
has bene?ted from the portfolio manager’s strong stock selection built on deep
knowledge of his names and a strong adherence to his strategy. Historically, the
fund’s lower market cap and momentum tilts have helped it outperform in
up-markets, but caused it to lag in down markets.
Loomis, Sayles &
Company
Sub-
Adviser
An opportunistic, contrarian growth strategy with a focus on both quality and long-
term growth that seeks to balance performance in both up and down markets.
Massachusetts
Financial Services
Company (MFS);
Blended Research
Large Cap Growth
Sub-
Adviser
Strategic Advisers views this strategy as a rare, truly all-weather large-cap growth
strategy with tight risk constraints relative to the Fund’s index. The strategy seeks
consistent excess return across various market conditions, driven by a balanced
approach of quantitative and fundamental analysis. Strategic Advisers views MFS’s
deep fundamental research capabilities as a competitive advantage. While this
strategy may be held throughout all market environments, Strategic Advisers believes
performance is most at risk in low-quality rallies following market bottoms.
Pyramis Global
Advisors*
Sub-
Adviser
Expected to provide a more valuation-sensitive approach to growth, investing
through its growth-at-a-reasonable-price (GARP) investment process. Pyramis is the
institutional asset management investment arm of Fidelity Investments and does not
provide retail access to its strategies.
Waddell & Reed
Investment
Management
Company
Sub-
Adviser
Growth-oriented strategy with a quality bias that seeks to identify companies with
established competitive advantages and sustainable growth levels.
*Pyramis Global Advisors and Strategic Advisers, Inc., are affiliates of each other and of Fidelity Investments.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Strategic Advisers
®
Small-Mid Cap Fund
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PORTFOLIO MANAGER: Barry Golden
“ With many companies to choose from, and little attention from Wall Street, smaller-capitalization
stocks provide for a range of attractive investment approaches. Using our in-depth research
process, my goal is to combine the highest conviction strategies into an all-weather portfolio for
investing in this sometimes volatile slice of the market.”
BENCHMARK: Russell 2500
®
Index
3
SUB–ASSET CLASS: Small-Mid Cap
SYMBOL: FSCFX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 4% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Advisory Research Sub-
Adviser
Style-pure traditional value discipline seeks companies believed to be selling at a
discount to net asset value to attempt to minimize downside risk. Advisory Research
believes that deep fundamental due diligence and industry analysis distinguish those
stocks with the best upside potential. Concentrated, low-turnover strategy that seeks to
outperform over full market cycle. Strategic Advisers expects the strategy will deviate
from the benchmark quarter to quarter given concentration. Strategic Advisers believes
the strategy’s quality tilt relative to peers could lag in a deep value market.
AllianceBernstein
(AB)
Sub-
Adviser
An aggressive growth strategy that uses a combination of fundamental and
quantitative research to seek to identify companies with underestimated earnings
growth potential.
Champlain Small
Company Fund
(CIPSX)
Mutual
Fund
Quality-focused small-cap portfolio that seeks companies with solid business models
and strong management teams trading at a discount to intrinsic value. Strategy is
diversi?ed across multiple sectors, but benchmark agnostic in terms of portfolio
construction. Strategic Advisers believes that the portfolio’s quality focus means
the strategy may do well in the later part of the economic cycle or when economic
fundamentals deteriorate.
Fisher
Investments
Sub-
Adviser
An all-weather value manager that uses both top-down and bottom-up research to
identify companies with competitive advantages that bene?t from macro tailwinds.
Strategic Advisers believes that Fisher Investments provides a unique investment
approach, which may lead to a diversi?ed source of returns.
FMI Common
Stock Fund
(FMIMX)
Mutual
Fund
A quality-focused fund with a relative value and small-mid cap bias. This is a
concentrated fund that typically holds between 35–50 positions. The focus on
business quality and valuation should allow for competitive performance across
market cycles.
Goldman Sachs
Small Cap Value
Fund (GSSIX)
Mutual
Fund
Diversi?ed all-weather, quality-focused fund that utilizes a traditional value approach.
We believe the quality orientation leads to good downside protection while
performing in line with the benchmark in up markets. Sector neutrality in the value
space is a differentiator.
Invesco Advisers Sub-
Adviser
A relatively conservative growth-at-a-reasonable-price (GARP) strategy that attempts
to focus on high-quality, sustainable growth companies. The team attempts to use
disciplined, multifaceted stock selection and risk management to drive consistency.
The team seeks to identify ?rms with a history of strong capital allocation trading at
low price/earnings-to-growth ratios. Strategic Advisers believes the strategy’s quality
bias and valuation sensitivity may lead to consistent performance except in low-
quality rallies.
Kennedy Capital
Management
Sub-
Adviser
An all-weather strategy, focused on investing in high-quality small and medium-sized
companies with strong fundamentals at attractive valuations. The ?rm’s investment
focus is entirely on the micro-, small-, and mid-cap stock universes, with a deep
reliance on fundamental research, which has been a key performance driver in the
past. A disciplined approach to portfolio construction and sector concentration is
intended to help mute portfolio volatility, but could also cause the strategy to lag
in certain sector-led market environments. Kennedy Capital Management’s core
objective is long-term, consistent outperformance relative to the Russell 2500 Index
over the full market cycle.
Continued
Strategic Advisers
®
Small-Mid Cap Fund — continued
F
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FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Meridian Growth
Fund
®
Legacy
(MERDX)
Mutual
Fund
Quality-oriented SMID growth fund managed by two experienced, successful
co-portfolio managers focused on seeking to provide downside protection. Strategic
Advisers believes that relative to other quality-tilted small-cap growth peers, this
strategy may provide more upside over the full market cycle, while providing similar
downside protection due to a contrarian bias and a thoughtful portfolio construction
methodology.
Portolan Capital
Management
Sub-
Adviser
An opportunistic, go-anywhere strategy that utilizes a research-focused process in
seeking companies with future earnings power not re?ected in valuations.
RS Investment
Management
Sub-
Adviser
An aggressive growth, quality-tilted strategy that seeks to buy innovative companies
with proven business models. The four-person portfolio management team believes
that sustainable earnings growth drives long-term stock appreciation. We believe
the momentum orientation and concentrated portfolio of high-quality companies
exhibiting strong earnings growth makes this strategy competitive versus peers.
Systematic
Financial
Management
Sub-
Adviser
Portfolio managers seek undervalued stocks where they can con?rm an upturn in
earnings and positive momentum. Benchmark-aware portfolio construction seeks to
provide consistent, all-weather relative performance. Disciplined sell process results
in higher turnover as value is realized. Strategic Advisers believes the strategy could
lag in a low-quality rally or a period in which strong company fundamentals are not
rewarded in the marketplace.
The Boston
Company
Sub-
Adviser
An opportunistic, go-anywhere small-mid cap strategy with a contrarian bias that
seeks to identify stocks trading at a discount to their intrinsic value. Strategic Advisers
believes that this strategy provides access to a differentiated universe of investment
opportunities appropriate at different points in the market cycle.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Strategic Advisers
®
Value Fund
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PORTFOLIO MANAGERS: John A. Stone, Gopal Anantanatarajan
“ Gopal and I leverage the depth of Strategic Advisers’ research department to select what we
believe are the best relative value, traditional value, and deep value managers, and combine
them in a risk-managed approach.”
BENCHMARK: Russell 1000
®
Value Index
4
SUB–ASSET CLASS: Large Cap
SYMBOL: FVSAX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Aristotle Capital
Management
Sub-
Adviser
Strategic Advisers views Aristotle Capital Management’s strategy as an opportunistic,
traditional value strategy that seeks high-quality business franchises selling at attractive
valuations. Key tenets of this manager’s strategy are business economics, maintaining
a long-term approach, and a concentrated portfolio. The portfolio’s concentration and
the manager’s opportunistic style may occasionally cause the strategy’s performance
to be out-of-sync with the benchmark. However, with a historical track record of unique
company insights, coupled with a strong intrinsic value discipline, we believe Aristotle’s
value equity strategy can potentially outperform the Russell 1000 Value Index over the
full market cycle.
Boston Partners
(formerly Robeco
Investment
Management)
Sub-
Adviser
A value-oriented strategy that seeks stocks with an intersection of attractive
valuation, high-quality business fundamentals, and improving trends in earnings.
Strategic Advisers believes the risk-aware portfolio construction process, which
blends qualitative and quantitative inputs, may allow the fund to keep pace in rising
markets, outperform in falling markets, and diversify sources of returns versus other
value managers.
Brandywine
Global
Investment
Management
Sub-
Adviser
Traditional value approach, providing core exposure to the large-cap value asset
class; focuses on valuation, momentum, and risk control; Strategic Advisers considers
their process complementary to other relative value sub-advisers in the portfolio.
Brandywine has been running value strategies for 20 years.
LSV Asset
Management
Sub-
Adviser
Quantitatively run, deep-value process — contrarian approach attempts to focus on
statistically undervalued stocks. Deep-value managers tend to be volatile. However,
Strategic Advisers believes LSV has appropriate risk controls somewhat muting this
volatility. LSV Asset Management, as a ?rm, is focused on value investing through
quantitative models. They are primarily focused on the institutional market. It is dif?cult
for retail investors to gain access to its strategies.
JPMorgan Value
Advantage Fund
(JVASX)
Mutual
Fund
A quality-tilted all-cap strategy run by a tenured and experienced portfolio manager.
Strategic Advisers believes that the portfolio manager has historically demonstrated
skill at shifting the risk pro?le of the fund (beta, sector weights, quality) to align with his
view of opportunities presented in the market, with an overall quality bias.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by
visiting Fidelity.com/holdings.
Strategic Advisers
®
Emerging Markets Fund
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PORTFOLIO MANAGER: Wilfred Chilangwa
“ This fund seeks to provide shareholders with well-diversi?ed emerging markets equity
exposure while leveraging Strategic Advisers’ research and investment ideas.”
BENCHMARK: MSCI Emerging Markets
5
SUB–ASSET CLASS: Emerging Markets
SYMBOL: FSAMX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Aberdeen
Emerging
Markets Fund
(AEMSX)
Mutual
Fund
The fund uses a long-term investment approach based on bottom-up fundamental
analysis, leveraging a research team of generalists stationed in local of?ces. The
portfolio manager looks for high-quality companies that have steady earnings growth,
with a focus on cash-?ows, strong balance sheets, and strong track records. As a result,
historically the fund has had low beta and has been concentrated in names that the
manager believes will perform well over the long term.
Acadian Asset
Management
Sub-
Adviser
Multifactor quantitative investment strategy that combines top-down country/
macro outputs with bottom-up fundamental stock insights in seeking to exploit
market inef?ciencies and drive alpha. Strategic Advisers considers that this strategy’s
structural value tilt tends to be the result of a bias toward inexpensive companies
based on replacement value and cash ?ows. Historically, earnings revisions and price
momentum have also been dominating factors. Despite its value bias, Strategic
Advisers believes this strategy has historically performed like an all-weather portfolio
because of its ability to adjust its positioning quickly.
Causeway
Emerging Markets
Fund (CEMVX)
Mutual
Fund
A differentiated, quantitative, all-weather value approach primarily driven by bottom-
up factors and complemented by top-down macro factors. The strategy maintains a
small-cap bias while the investment process seeks to utilize models that maintain a
good balance between valuations, earnings revision, and momentum factors.
Fidelity
®
Emerging
Markets Fund
(FEMKX)
Mutual
Fund
High beta, fundamental research-driven approach that focuses on growth-at-a-
reasonable-price (GARP) and earnings momentum, seeking to uncover companies that
are growing their earnings within each industry. Strategic Advisers believes the fund is
broadly diversi?ed, but top-down conscious, so sector and country positions tend to
be close to the benchmark.
Lazard Emerging
Markets Equity
Portfolio (LZEMX)
Mutual
Fund
Disciplined emerging markets value approach, focusing on quality companies that are
believed to have stable margins and high returns on equity. Strategic Advisers believes
this approach may emphasize downside protection as the fund has tended to maintain
low beta and be defensively positioned.
M&G Investment
Management
Sub-
Adviser
An opportunistic, all-cap emerging markets strategy that looks for companies that
fall into one of four baskets: deep cyclicals, companies with structural tailwinds,
compounders, and quality. A low turnover, concentrated portfolio with very limited
sector or country biases, as well as a modest value and small-cap tilt.
Oppenheimer
Developing
Markets Fund
(ODVIX)
Mutual
Fund
A concentrated, benchmark-agnostic, and opportunistic growth strategy with a
long-term thematic approach. The strategy seeks companies with durable and
above-average earnings growth and return-on-capital due to their unique competitive
advantages. Strategic Advisers believes this strategy seeks to add value through stock
selection stemming from long-term secular trends and an opportunistic approach that
provides liquidity during times of skepticism.
Continued
Strategic Advisers
®
International Fund
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PORTFOLIO MANAGER: Wilfred Chilangwa
“ This fund seeks to provide shareholders with well-diversi?ed international equity exposure
while leveraging Strategic Advisers’ research and investment ideas across the global markets.”
BENCHMARK: Morgan Stanley Capital International Europe, Australasia, Far East (net MA tax) [MSCI
®
EAFE
®
(net MA tax)]
6
SUB–ASSET CLASS: Developed International
SYMBOL: FILFX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Causeway Capital
Management
Sub-
Adviser
Causeway follows a traditional value, all-cap (generally above $750 million) approach
to international investing. Portfolio managers focus on earnings, dividend and payout
yield, price-to-book-value ratios, and cash ?ow. Developed markets strategy combines a
bottom-up approach to stock picking with proprietary risk management tools. Country,
industry, and security exposures are a residual of the security selection process. Over a
full market cycle, the strategy seeks to outperform with lower volatility relative to the index
and peers.
Fidelity Advisor
®
Diversi?ed
International
Fund (FDVIX)
Mutual
Fund
Core international fund that seeks high-quality, durable businesses that can grow in a
variety of environments.
Fidelity
®
International
Discovery Fund
(FIGRX)
Mutual
Fund
Broadly diversi?ed, GARP, core holding within the Fund. The portfolio manager utilizes
a bottom-up stock selection approach focused on companies that the manager
believes are exhibiting stable return on capital, cash ?ow growth, and reasonable
valuations. While the fund does not typically have large regional or sector deviations
from its benchmark, the MSCI EAFE Index, the manager tends to ?nd his preferred
growth characteristics within mid-cap companies.
Harbor
International
Fund (HAINX)
Mutual
Fund
Opportunistic, high beta fund with signi?cant exposure to global growth and
emerging markets.
Strategic Advisers
®
Emerging Markets Fund — continued
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Somerset Capital
Management
Sub-
Adviser
Fundamental research-driven, opportunistic, all cap, low turnover, concentrated
strategy with a quality growth bias and opportunistic allocation to deep value.
Somerset has a strong track record of adding value in the less ef?cient SMID
cap space.
T. Rowe Price
Emerging
Markets Stock
Fund (PRMSX)
Mutual
Fund
GARP-focused fund with a quality bias that looks for companies with strong franchises,
steady growth, improving margins and cash-?ow generation. Corporate governance
and the strength of the management team are factors that are closely considered. The
fund is built from the bottom up, with a long-term investment horizon (3–5 years), but
also uses a top-down macro screen designed to identify potential problems within
certain countries or regions. Strategic Advisers believes the fund may outperform in
steady growth environments and underperform in momentum markets.
Continued
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Strategic Advisers
®
International Fund — continued
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FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Massachusetts
Financial Services
Company (MFS);
International
Research Equity
Strategy
Sub-
Adviser
Fundamental research-driven and sector-neutral core strategy that follows a growth-
at-a-reasonable-price (GARP) discipline to uncover the companies, within each industry,
that are believed to exhibit the most stable fundamentals through an economic cycle.
Region and country positions are an outcome of the fundamental process.
Massachusetts
Financial Services
Company (MFS);
International
Value Strategy
Sub-
Adviser
All-market capitalization value strategy with a long-term investment focus that Strategic
Advisers believes has rigorous valuation discipline and a contrarian approach. The
portfolio managers seek undervalued companies that they believe have high-quality
franchises or signi?cant potential for improvement. Sector and country positions are
an outcome of the fundamental process. Strategic Advisers believes that the portfolio
managers apply a consistent value-driven investment process and strong downside risk
management. Strategic Advisers believes this strategy could potentially deliver strong
risk-adjusted excess returns over a full market cycle with the most compelling relative
outperformance in risk-averse markets.
Strategic Advisers
®
Core Income Fund
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m
e
PORTFOLIO MANAGER: Gregory Pappas
“ The Core Income Fund is constructed using a combination of top-down and bottom-up
managers that Strategic Advisers believes have the most thoughtful investment strategies within
the ?xed income asset class, a combination that aims to consistently add value over time.”
BENCHMARK: Barclays Aggregate Bond Index
7
SUB–ASSET CLASS: Investment Grade
SYMBOL: FPCIX
INVESTMENT OBJECTIVE: Seeks a high level of current income.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Fidelity
®
Total
Bond Fund
(FTBFX)
Mutual
Fund
The fund is a core-plus investment strategy that allocates assets across investment
grade, high yield, and emerging debt while seeking to minimize active interest rate
risk. The strategy seeks to add value through asset allocation and security selection
driven by bottom-up research of individual issuers.
Metropolitan
West Total Return
Bond Fund
(MWTRX)
Mutual
Fund
Value-oriented, opportunistic, core plus offering that seeks to provide steady
performance in widely varying market conditions. The portfolio management team’s
disciplined, value-conscious focus has allowed them to remain on top of macro-
economic and market fundamentals.
PIMCO Total
Return Bond
Fund (PTTAX)
Mutual
Fund
Strategic Advisers views this fund as a core plus offering with higher risk/return
potential than a traditional core bond fund, as it may rotate into out-of-benchmark
sectors of the market such as high yield and foreign bonds. The investment strategy
is based on top-down global macro analysis that is derived from a number of
different inputs.
Pyramis Global
Advisors —
Core Investment
Grade
Sub-
Adviser
The Pyramis Global Advisors Core Investment Grade Strategy employs a bottom-up,
duration neutral, fundamental investment strategy complemented by top-down
inputs. An integral part of the strategy is intensive risk management with a focus on
low tracking error. Their process emphasizes sector allocation and individual security
selection, while managing duration in line with the index. It’s well diversi?ed across
sectors and issuers. Strategic Advisers views its process as complementary to other
managers in the portfolio.
Western Asset
Core Plus Bond
Fund (WAPAX)
Mutual
Fund
Managed with a core plus focus. Credit-intensive process and opportunistic approach
is supported by the ?rm’s deep and experienced research team. With a strong risk
management framework, Strategic Advisers has conviction in the ?rm’s potential to
deliver consistent performance over a business cycle.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Strategic Advisers
®
Income Opportunities Fund
F
i
x
e
d
I
n
c
o
m
e
PORTFOLIO MANAGER: Gregory Pappas
“ The Income Opportunities Fund provides a diversi?ed approach to what has historically been
a volatile asset class, helping to bene?t our shareholders.”
BENCHMARK: Bank of America Merrill Lynch U.S. High Yield Constrained Index
8
SUB–ASSET CLASS: High Yield
SYMBOL: FPIOX
INVESTMENT OBJECTIVE: Seeks a high level of current income. The fund may also seek capital appreciation.
INVESTMENT APPROACH: Fund of funds. Invests in other mutual funds.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
BlackRock High
Yield Bond
Portfolio (BHYAX)
Mutual
Fund
Slightly more aggressive approach than most other holdings in the Fund as it typically
holds out-of-benchmark positions such as equities, convertibles, and bank loans.
Strategic Advisers believes the fund may be a good diversi?er, but historically it has
been more volatile than other high-yield peers.
Eaton Vance
Income Fund of
Boston (EVIBX)
Mutual
Fund
Fund focuses mostly on high yield bonds with limited equity exposure. Strategic
Advisers believes the fund is managed by an experienced team of investment
professionals that use a bottom-up security selection process, complemented by
a top-down view to aid in downside protection.
Fidelity Advisor
®
High Income
Advantage Fund
(FAHCX)
Mutual
Fund
A high yield offering that leverages Portfolio Manager Harley Lank’s ability to invest
across the capital structure. The Fund makes full use of its broad mandate by investing
in high yield debt, equities, bank loans, convertible bonds and preferred stocks in an
opportunistic manner.
Fidelity
®
Capital
& Income Fund
(FAGIX)
Mutual
Fund
Strategic Advisers believes this fund to have a higher risk/higher potential reward
investment approach when compared to many high-yield peers. It focuses on lower-
quality high-yield issues, and may own up to 20% in equities. Like most Fidelity bond
funds, bottom-up, issue-by-issue research drives selection.
Fidelity
®
High
Income Fund
(SPHIX)
Mutual
Fund
This fund owns mostly high-yield bonds, is benchmark aware, and maintains low
tracking error.
Hotchkis & Wiley
High Yield Fund
(HWHAX)
Mutual
Fund
Fund focuses on higher-rated securities within non-investment-grade bond categories,
but may also own very low-quality bonds, as well as bank loans. The fund is
managed by an experienced investment team and seeks to perform well in a market
environment where credit selection is an important determinant.
Janus High-Yield
Fund (JAHYX)
Mutual
Fund
Quality-biased fund. Management tends to augment their bottom-up focus with
macro views on credit, which look at spreads, underwriting standards, and leveraged
buyout activity, among other things.
T. Rowe Price
High Yield Fund
(PAHIX)
Mutual
Fund
Staple offering that Strategic Advisers believes may be less volatile than many high
yield peers due to diversi?cation. Strategic Advisers believes the fund’s approach
seeks to protect on the downside, while recognizing it may trail more aggressive peers
on the upside.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Strategic Advisers
®
Short Duration Fund
S
h
o
r
t
-
T
e
r
m
PORTFOLIO MANAGER: Gregory Pappas
“ The Short Duration Fund seeks to provide our clients with a diversi?ed investment
approach and disciplined risk management strategy for the short-term bond portion
of a client’s portfolio.”
BENCHMARK: Citigroup 6-Month U.S. Treasury Bill Index
9
SUB–ASSET CLASS: Ultra Short
SYMBOL: FAUDX
INVESTMENT OBJECTIVE: Seeks to obtain a high level of current income consistent with preservation of capital.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Fidelity
®
Conservative
Income Bond
Fund (FCNVX)
Mutual
Fund
A short-duration bond strategy that seeks to generate a high level of current income
and preserve capital by investing primarily in U.S. dollar–denominated money market
and high-quality investment-grade securities. Managed by a Fidelity veteran who has
managed both taxable and municipal money market portfolios. Strategic Advisers
believes the strategy’s concentration in higher-yielding corporate credits may provide
Strategic Advisers Short Duration Fund with a yield advantage over time.
Fidelity
®
Institutional
Money Market—
Money Market
Portfolio (FNSXX)
Mutual
Fund
Money market portfolio that seeks to obtain a high level of current income as is
consistent with the preservation of principal and liquidity.
Fidelity
®
Short-
Term Bond Fund
(FSHBX)
Mutual
Fund
Bottom-up, research-driven investment process that utilizes fundamental,
quantitative, and structured analysis, while also incorporating macroeconomic
inputs. Risk management plays an important role in this short-term bond strategy
as the portfolio manager tends to incrementally build positions — typically with
an investment-grade focus and duration neutral bias. As such, Strategic Advisers
believes this investment approach could lead to reduced volatility during
down markets.
Metropolitan
West Low
Duration Bond
Fund (MWLDX)
Mutual
Fund
Slightly more aggressive investment approach than most other short-term bond
positions in the Fund, as it tends to have more out-of-benchmark exposure. Strategic
Advisers believes the fund may be a good diversi?er, but may have slightly
higher volatility.
PIMCO Short-
Term Fund
(PSFAX)
Mutual
Fund
Actively managed low-duration bond fund that invests in high-quality ?xed income
securities. The strategy seeks to outperform money markets on a consistent basis,
while still providing liquidity and principal security. The investment strategy is based
on top-down global macro analysis, but then combined with bottom-up credit
research. With a specialized portfolio management team, Strategic Advisers has
conviction in the fund’s potential to deliver a consistent level of outperformance.
Pyramis Global
Advisors*
Sub-
Adviser
Fundamental research-driven process that uses a diversi?ed approach which limits
issuer exposure to 2%. The portfolio management team follows a low tracking error
strategy and measures its sector and duration exposure against the Barclays 6-Month
Swap Index.
10
Strategic Advisers believes that Pyramis’ dependable investment
process and eye toward risk management make this an all-weather strategy that may
provide a consistent level of outperformance in many market conditions.
Continued
*Pyramis Global Advisors and Strategic Advisers, Inc., are affiliates of each other and of Fidelity Investments.
Strategic Advisers
®
Short Duration Fund — continued
F
A
U
D
X
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
T. Rowe Price Sub-
Adviser
Strategic Advisers views T. Rowe Price as a conservative, high-quality, short-term
bond manager that maintains a dependable investment approach that seeks to
deliver consistent long-term performance with few surprises. As a key component of
their investment process, individual sector heads, in conjunction with the portfolio
manager, form top-down perspectives and then combine those views with bottom-up
fundamental research from the credit analyst teams. Strategic Advisers believes that
the ?rm’s consistent investment process and extensive resources, and the portfolio
manager’s many years of experience managing short-term bond strategies, may
help them outperform the Barclays 1–3 Year Government/Credit Index
11
with below-
average risk over a full market cycle.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Diversi?cation/asset allocation does not ensure a pro?t or guarantee against loss.
1
S&P 500
®
Index: The S&P 500
®
Index is a registered service mark of The McGraw-Hill Companies, Inc., and has been licensed for use by Fidelity
Distributors Corporation and its af?liates. It is an unmanaged index of the common stock prices of 500 widely held U.S. stocks that includes the
reinvestment of dividends.
2
Russell 1000
®
Growth Index: The Russell 1000
®
Growth Index is an unmanaged market capitalization–weighted index of those stocks of the 1,000
largest U.S.-domiciled companies that exhibit growth-oriented characteristics.
3
Russell 2500
®
Index: The Russell 2500
®
Index is a market capitalization–weighted index designed to measure the performance of the small- to mid-cap
segment of the U.S. equity universe. It includes approximately 2,500 of the smallest securities in the Russell 3000
®
Index.
4
Russell 1000
®
Value Index: The Russell 1000
®
Value Index is an unmanaged market capitalization–weighted index of those stocks of the 1,000 largest
U.S.-domiciled companies that exhibit value-oriented characteristics.
5
MSCI Emerging Markets Index
SM
: The Morgan Stanley Capital International Emerging Markets Index is an unmanaged market capitalization–weighted index
of equity securities of companies in various countries. This index is designed to represent the performance of emerging stock markets throughout the world,
excluding certain market segments unavailable to U.S.-based investors.
6
MSCI
®
EAFE
®
Index (net MA tax): An unmanaged market capitalization–weighted index that is designed to represent the performance of developed stock
markets outside the United States and Canada. The EAFE Index is a registered service mark of Morgan Stanley and has been licensed for use by FMR LLC.
7
Barclays Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index): An unmanaged market value–weighted performance
benchmark for investment-grade ?xed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at
least one year.
8
Bank of America Merrill Lynch U.S. High Yield Constrained Index: The Merrill Lynch U.S. High Yield Constrained Index is a market value–weighted index of all
domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Issues included in the index have maturities of one year
or more and have a credit rating lower than BBB-/Baa3, but are not in default. The Merrill Lynch U.S. High Yield Constrained Index limits any individual issuer to a
maximum of 2% benchmark exposure.
9
Citigroup 6-Month U.S. Treasury Bill Index measures the return equivalent of yield averages of the last six 6-month U.S. Treasury bill month-end rates that are not
marked to market.
10
Barclays 6-Month Swap Index is a principal-weighted index of swaps with 6-month maturities.
11
Barclays 1–3 Year Government/Credit Index: Barclays U.S. 1–3 Year Government/Credit Bond Index is a market value–weighted index of investment-grade
?xed-rate debt securities with maturities from one to three years from the U.S. Treasury, U.S. Government-Related, and U.S. Corporate Indices.
Fidelity Portfolio Advisory Service
®
is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service
provides discretionary money management for a fee.
Brokerage services are provided by Fidelity Brokerage Services LLC. Custody and other services are provided by National Financial Services LLC. Both are Fidelity
Investments companies and members of NYSE and SIPC.
Past performance is no guarantee of future results.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the fund.
The securities of smaller, less well-known companies can be more volatile than those of larger companies.
In general, the bond market is volatile, and ?xed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect
is usually more pronounced for longer-term securities.) Fixed income securities also carry in?ation risk, liquidity risk, call risk, and credit and default risks for both
issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price vol-
atility is not possible. Lower-quality debt securities generally offer higher yields, but they also involve greater risk of default or price changes due to potential changes
in the credit quality of the issuer. Any ?xed income security sold or redeemed prior to maturity may be subject to loss.
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. Value stocks can
perform differently from other types of stocks and can continue to be undervalued by the market for long periods of time.
Stock markets, especially foreign markets, are volatile and can decline signi?cantly in response to adverse issuer, political, regulatory, market, or economic
developments.
Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market, or economic developments, all of which are
magni?ed in emerging markets. These risks are particularly signi?cant for funds that focus on a single country or region.
ETFs may trade at a discount to their NAV and are subject to the market ?uctuations of their underlying investments.
You cannot invest directly in an index.
Strategic Advisers is a registered service mark belonging to FMR LLC.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Contact Fidelity for
a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Fidelity Brokerage Services LLC, Member NYSE and SIPC, 900 Salem Street, Smith?eld, RI 02917
PASR-BRO-Q315
563280.26.1 1.926212.120
For more information or to set up an appointment,
please contact your Fidelity representative.
doc_994196258.pdf
Strategic Advisers Funds - Fidelity
SHORT-
TERM
FIXED INCOME DOMESTIC EQUITY INTERNATIONAL EQUITY
Investment
Grade High Yield Value Blend Growth Developed
Emerging
Markets
Strategic
Advisers
®
Short
Duration
Fund
Strategic
Advisers
®
Core Income
Fund
Strategic
Advisers
®
Income
Opportuni-
ties Fund
Strategic
Advisers
®
Value Fund
Strategic
Advisers
®
Core Fund
Strategic
Advisers
®
Growth Fund
Strategic
Advisers
®
Small-Mid
Cap Fund
Strategic
Advisers
®
International
Fund
Strategic
Advisers
®
Emerging
Markets Fund
How Strategic Advisers
®
Funds ?t into
the model portfolio
In most cases, the Strategic Advisers Funds will
serve as the key building blocks for the model
portfolio. These funds are exclusive to clients
in Fidelity Portfolio Advisory Service
®
and are
structured so that they may include underlying
Fidelity and non-Fidelity mutual funds and
exchange-traded funds (ETFs),* as well as
sub-advised strategies that include individual
securities.
You bene?t from Strategic Advisers’ ability to
choose from an expanded group of managers,
some of whom were previously available only to
large institutional investors, and take advantage
of Fidelity’s scale to provide the potential for
improved pricing relative to other retail investors.
Why Strategic Advisers, Inc. (Strategic Advisers),
uses a variety of managers
Strategic Advisers believes the ability to
utilize the distinctive skills of a variety of
managers helps the model portfolio with
investment diversi?cation and may also provide
portfolio managers more ?exibility to invest
more adeptly throughout the market cycle, and
potentially allow for better risk management for
our clients.
Strategic Advisers
®
Funds Lineup
The chart below showcases nine Strategic Advisers Funds and their investment focus, ranging from the more
conservative Short Duration Fund to the more aggressive Growth, International, and Emerging Markets Funds.
Please refer to your Investment Proposal or speak with a Fidelity representative for a complete listing of the funds
contained in the model portfolio in which you are invested.
* An ETF is similar to a mutual fund in structure, but trades like a stock. The Strategic Advisers Funds can invest in ETFs, which may
trade at a discount to their NAV.
†
Please note that not all the Strategic Advisers Funds have retained sub-advisers.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
“Managers” for Strategic Advisers Funds
may refer to:
• The underlying mutual fund or ETF that
the Funds invest in, or
• The sub-adviser(s) who manages a portion of the
Fund’s assets and is hired to manage them according
to a set investment mandate as outlined by Strategic
Advisers.
†
This means Strategic Advisers outlines how
he or she will manage the Fund’s assets for which he
or she is responsible.
In both cases, however, the Strategic Advisers
portfolio manager continues to oversee and manage
the overall fund.
Strategic Advisers
®
Funds
Investments designed exclusively for clients in Fidelity Portfolio Advisory Service
®
*Pyramis Global Advisors and Strategic Advisers, Inc., are affiliates of each other and of Fidelity Investments.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Strategic Advisers
®
Core Fund
D
o
m
e
s
t
i
c
E
q
u
i
t
y
PORTFOLIO MANAGERS: Niall Devitt, John A. Stone
“ We use a core satellite approach, combining lower-risk strategies with higher-risk, higher-
opportunity managers.”
BENCHMARK: S&P 500
®
Index
1
SUB–ASSET CLASS: Large Cap
SYMBOL: FCSAX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
AllianceBernstein
(AB)
Sub-
Adviser
A risk-managed, core-focused strategy with a momentum bias. Strategic Advisers
believes this strategy offers a long-tenured portfolio manager with a strong historical
track record, employing a ?exible approach to stock selection and portfolio
construction, and a dynamic approach to managing market risk. The investment team
targets companies with potential for strong earnings growth over the next three
years, where the team’s view is different from consensus. Strategic Advisers believes
this strategy may provide positive alpha over a full cycle, while potentially providing
a competitive return in many market environments.
First Eagle
Investment
Management
Sub-
Adviser
High-risk/high-potential-return manager attempts to focus on pricing inef?ciencies
related to corporate and/or global events such as corporate restructuring, M&A, and
consolidation. Due to the investment characteristics of this strategy, Strategic Advisers
expects to have a modest allocation.
J.P. Morgan
Investment
Management Inc.
Sub-
Adviser
An all-weather, large-cap core strategy that seeks to add value from the best ideas of
its fundamentally driven research team.
JPMorgan U.S.
Large Cap Core
Plus Fund (JLPSX)
Mutual
Fund
Fundamentally driven 130/30 fund. Well diversi?ed (175–225 holdings). Style and
sector neutral vs. S&P 500 Index. With investment characteristics similar to the Index,
the fund may serve as a core holding.
Pyramis Global
Advisors*
Sub-
Adviser
Diversi?ed fundamentally driven mega cap portfolio with a relative value discipline.
The strategy emphasizes secular and cyclical opportunities where the manager has a
different view from consensus. Benchmark-relative portfolio construction and the use
of risk-adjusted price targets seek to reduce downside risk.
T. Rowe Price Sub-
Adviser
Portfolio is constructed with roughly 30 industry sleeves, each managed by a sector
analyst; the overall portfolio is designed to be beta, sector, market cap, and style
neutral relative to the S&P 500, with analysts’ stock picking within their sector
intended to drive performance. Since its characteristics are close to the benchmark,
it will serve as a core holding.
Strategic Advisers
®
Growth Fund
D
o
m
e
s
t
i
c
E
q
u
i
t
y
PORTFOLIO MANAGERS: John A. Stone, Vincent Zelenko
“ Vincent and I leverage the depth of Strategic Advisers’ research department to select what we
believe are the best growth-at-a-reasonable-price (GARP), quality growth, aggressive growth,
and opportunistic growth strategies, and combine them in a risk-managed approach.”
BENCHMARK: Russell 1000
®
Growth Index
2
SUB–ASSET CLASS: Large Cap
SYMBOL: FSGFX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
ClariVest Asset
Management
Sub-
Adviser
Quantitative portfolio that provides core set of exposure to Russell 1000 Growth
universe. Strategic Advisers believes the portfolio should deviate less from benchmark
compared to the other managers. Manager attempts to construct a risk-controlled
portfolio of companies believed to be undergoing fundamental change. Founded in
2006 by a team that formerly managed money at a competitor, the ?rm only manages
money for institutional investors.
Fidelity
®
Growth
Company Fund
(FDGRX)
Mutual
Fund
An aggressive, bottom-up, all-cap growth strategy that seeks to bene?t from
thoughtful portfolio construction and a macro-economic awareness. The fund
has bene?ted from the portfolio manager’s strong stock selection built on deep
knowledge of his names and a strong adherence to his strategy. Historically, the
fund’s lower market cap and momentum tilts have helped it outperform in
up-markets, but caused it to lag in down markets.
Loomis, Sayles &
Company
Sub-
Adviser
An opportunistic, contrarian growth strategy with a focus on both quality and long-
term growth that seeks to balance performance in both up and down markets.
Massachusetts
Financial Services
Company (MFS);
Blended Research
Large Cap Growth
Sub-
Adviser
Strategic Advisers views this strategy as a rare, truly all-weather large-cap growth
strategy with tight risk constraints relative to the Fund’s index. The strategy seeks
consistent excess return across various market conditions, driven by a balanced
approach of quantitative and fundamental analysis. Strategic Advisers views MFS’s
deep fundamental research capabilities as a competitive advantage. While this
strategy may be held throughout all market environments, Strategic Advisers believes
performance is most at risk in low-quality rallies following market bottoms.
Pyramis Global
Advisors*
Sub-
Adviser
Expected to provide a more valuation-sensitive approach to growth, investing
through its growth-at-a-reasonable-price (GARP) investment process. Pyramis is the
institutional asset management investment arm of Fidelity Investments and does not
provide retail access to its strategies.
Waddell & Reed
Investment
Management
Company
Sub-
Adviser
Growth-oriented strategy with a quality bias that seeks to identify companies with
established competitive advantages and sustainable growth levels.
*Pyramis Global Advisors and Strategic Advisers, Inc., are affiliates of each other and of Fidelity Investments.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Strategic Advisers
®
Small-Mid Cap Fund
D
o
m
e
s
t
i
c
E
q
u
i
t
y
PORTFOLIO MANAGER: Barry Golden
“ With many companies to choose from, and little attention from Wall Street, smaller-capitalization
stocks provide for a range of attractive investment approaches. Using our in-depth research
process, my goal is to combine the highest conviction strategies into an all-weather portfolio for
investing in this sometimes volatile slice of the market.”
BENCHMARK: Russell 2500
®
Index
3
SUB–ASSET CLASS: Small-Mid Cap
SYMBOL: FSCFX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 4% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Advisory Research Sub-
Adviser
Style-pure traditional value discipline seeks companies believed to be selling at a
discount to net asset value to attempt to minimize downside risk. Advisory Research
believes that deep fundamental due diligence and industry analysis distinguish those
stocks with the best upside potential. Concentrated, low-turnover strategy that seeks to
outperform over full market cycle. Strategic Advisers expects the strategy will deviate
from the benchmark quarter to quarter given concentration. Strategic Advisers believes
the strategy’s quality tilt relative to peers could lag in a deep value market.
AllianceBernstein
(AB)
Sub-
Adviser
An aggressive growth strategy that uses a combination of fundamental and
quantitative research to seek to identify companies with underestimated earnings
growth potential.
Champlain Small
Company Fund
(CIPSX)
Mutual
Fund
Quality-focused small-cap portfolio that seeks companies with solid business models
and strong management teams trading at a discount to intrinsic value. Strategy is
diversi?ed across multiple sectors, but benchmark agnostic in terms of portfolio
construction. Strategic Advisers believes that the portfolio’s quality focus means
the strategy may do well in the later part of the economic cycle or when economic
fundamentals deteriorate.
Fisher
Investments
Sub-
Adviser
An all-weather value manager that uses both top-down and bottom-up research to
identify companies with competitive advantages that bene?t from macro tailwinds.
Strategic Advisers believes that Fisher Investments provides a unique investment
approach, which may lead to a diversi?ed source of returns.
FMI Common
Stock Fund
(FMIMX)
Mutual
Fund
A quality-focused fund with a relative value and small-mid cap bias. This is a
concentrated fund that typically holds between 35–50 positions. The focus on
business quality and valuation should allow for competitive performance across
market cycles.
Goldman Sachs
Small Cap Value
Fund (GSSIX)
Mutual
Fund
Diversi?ed all-weather, quality-focused fund that utilizes a traditional value approach.
We believe the quality orientation leads to good downside protection while
performing in line with the benchmark in up markets. Sector neutrality in the value
space is a differentiator.
Invesco Advisers Sub-
Adviser
A relatively conservative growth-at-a-reasonable-price (GARP) strategy that attempts
to focus on high-quality, sustainable growth companies. The team attempts to use
disciplined, multifaceted stock selection and risk management to drive consistency.
The team seeks to identify ?rms with a history of strong capital allocation trading at
low price/earnings-to-growth ratios. Strategic Advisers believes the strategy’s quality
bias and valuation sensitivity may lead to consistent performance except in low-
quality rallies.
Kennedy Capital
Management
Sub-
Adviser
An all-weather strategy, focused on investing in high-quality small and medium-sized
companies with strong fundamentals at attractive valuations. The ?rm’s investment
focus is entirely on the micro-, small-, and mid-cap stock universes, with a deep
reliance on fundamental research, which has been a key performance driver in the
past. A disciplined approach to portfolio construction and sector concentration is
intended to help mute portfolio volatility, but could also cause the strategy to lag
in certain sector-led market environments. Kennedy Capital Management’s core
objective is long-term, consistent outperformance relative to the Russell 2500 Index
over the full market cycle.
Continued
Strategic Advisers
®
Small-Mid Cap Fund — continued
F
S
C
F
X
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Meridian Growth
Fund
®
Legacy
(MERDX)
Mutual
Fund
Quality-oriented SMID growth fund managed by two experienced, successful
co-portfolio managers focused on seeking to provide downside protection. Strategic
Advisers believes that relative to other quality-tilted small-cap growth peers, this
strategy may provide more upside over the full market cycle, while providing similar
downside protection due to a contrarian bias and a thoughtful portfolio construction
methodology.
Portolan Capital
Management
Sub-
Adviser
An opportunistic, go-anywhere strategy that utilizes a research-focused process in
seeking companies with future earnings power not re?ected in valuations.
RS Investment
Management
Sub-
Adviser
An aggressive growth, quality-tilted strategy that seeks to buy innovative companies
with proven business models. The four-person portfolio management team believes
that sustainable earnings growth drives long-term stock appreciation. We believe
the momentum orientation and concentrated portfolio of high-quality companies
exhibiting strong earnings growth makes this strategy competitive versus peers.
Systematic
Financial
Management
Sub-
Adviser
Portfolio managers seek undervalued stocks where they can con?rm an upturn in
earnings and positive momentum. Benchmark-aware portfolio construction seeks to
provide consistent, all-weather relative performance. Disciplined sell process results
in higher turnover as value is realized. Strategic Advisers believes the strategy could
lag in a low-quality rally or a period in which strong company fundamentals are not
rewarded in the marketplace.
The Boston
Company
Sub-
Adviser
An opportunistic, go-anywhere small-mid cap strategy with a contrarian bias that
seeks to identify stocks trading at a discount to their intrinsic value. Strategic Advisers
believes that this strategy provides access to a differentiated universe of investment
opportunities appropriate at different points in the market cycle.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Strategic Advisers
®
Value Fund
D
o
m
e
s
t
i
c
E
q
u
i
t
y
PORTFOLIO MANAGERS: John A. Stone, Gopal Anantanatarajan
“ Gopal and I leverage the depth of Strategic Advisers’ research department to select what we
believe are the best relative value, traditional value, and deep value managers, and combine
them in a risk-managed approach.”
BENCHMARK: Russell 1000
®
Value Index
4
SUB–ASSET CLASS: Large Cap
SYMBOL: FVSAX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Aristotle Capital
Management
Sub-
Adviser
Strategic Advisers views Aristotle Capital Management’s strategy as an opportunistic,
traditional value strategy that seeks high-quality business franchises selling at attractive
valuations. Key tenets of this manager’s strategy are business economics, maintaining
a long-term approach, and a concentrated portfolio. The portfolio’s concentration and
the manager’s opportunistic style may occasionally cause the strategy’s performance
to be out-of-sync with the benchmark. However, with a historical track record of unique
company insights, coupled with a strong intrinsic value discipline, we believe Aristotle’s
value equity strategy can potentially outperform the Russell 1000 Value Index over the
full market cycle.
Boston Partners
(formerly Robeco
Investment
Management)
Sub-
Adviser
A value-oriented strategy that seeks stocks with an intersection of attractive
valuation, high-quality business fundamentals, and improving trends in earnings.
Strategic Advisers believes the risk-aware portfolio construction process, which
blends qualitative and quantitative inputs, may allow the fund to keep pace in rising
markets, outperform in falling markets, and diversify sources of returns versus other
value managers.
Brandywine
Global
Investment
Management
Sub-
Adviser
Traditional value approach, providing core exposure to the large-cap value asset
class; focuses on valuation, momentum, and risk control; Strategic Advisers considers
their process complementary to other relative value sub-advisers in the portfolio.
Brandywine has been running value strategies for 20 years.
LSV Asset
Management
Sub-
Adviser
Quantitatively run, deep-value process — contrarian approach attempts to focus on
statistically undervalued stocks. Deep-value managers tend to be volatile. However,
Strategic Advisers believes LSV has appropriate risk controls somewhat muting this
volatility. LSV Asset Management, as a ?rm, is focused on value investing through
quantitative models. They are primarily focused on the institutional market. It is dif?cult
for retail investors to gain access to its strategies.
JPMorgan Value
Advantage Fund
(JVASX)
Mutual
Fund
A quality-tilted all-cap strategy run by a tenured and experienced portfolio manager.
Strategic Advisers believes that the portfolio manager has historically demonstrated
skill at shifting the risk pro?le of the fund (beta, sector weights, quality) to align with his
view of opportunities presented in the market, with an overall quality bias.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by
visiting Fidelity.com/holdings.
Strategic Advisers
®
Emerging Markets Fund
I
n
t
e
r
n
a
t
i
o
n
a
l
E
q
u
i
t
y
PORTFOLIO MANAGER: Wilfred Chilangwa
“ This fund seeks to provide shareholders with well-diversi?ed emerging markets equity
exposure while leveraging Strategic Advisers’ research and investment ideas.”
BENCHMARK: MSCI Emerging Markets
5
SUB–ASSET CLASS: Emerging Markets
SYMBOL: FSAMX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Aberdeen
Emerging
Markets Fund
(AEMSX)
Mutual
Fund
The fund uses a long-term investment approach based on bottom-up fundamental
analysis, leveraging a research team of generalists stationed in local of?ces. The
portfolio manager looks for high-quality companies that have steady earnings growth,
with a focus on cash-?ows, strong balance sheets, and strong track records. As a result,
historically the fund has had low beta and has been concentrated in names that the
manager believes will perform well over the long term.
Acadian Asset
Management
Sub-
Adviser
Multifactor quantitative investment strategy that combines top-down country/
macro outputs with bottom-up fundamental stock insights in seeking to exploit
market inef?ciencies and drive alpha. Strategic Advisers considers that this strategy’s
structural value tilt tends to be the result of a bias toward inexpensive companies
based on replacement value and cash ?ows. Historically, earnings revisions and price
momentum have also been dominating factors. Despite its value bias, Strategic
Advisers believes this strategy has historically performed like an all-weather portfolio
because of its ability to adjust its positioning quickly.
Causeway
Emerging Markets
Fund (CEMVX)
Mutual
Fund
A differentiated, quantitative, all-weather value approach primarily driven by bottom-
up factors and complemented by top-down macro factors. The strategy maintains a
small-cap bias while the investment process seeks to utilize models that maintain a
good balance between valuations, earnings revision, and momentum factors.
Fidelity
®
Emerging
Markets Fund
(FEMKX)
Mutual
Fund
High beta, fundamental research-driven approach that focuses on growth-at-a-
reasonable-price (GARP) and earnings momentum, seeking to uncover companies that
are growing their earnings within each industry. Strategic Advisers believes the fund is
broadly diversi?ed, but top-down conscious, so sector and country positions tend to
be close to the benchmark.
Lazard Emerging
Markets Equity
Portfolio (LZEMX)
Mutual
Fund
Disciplined emerging markets value approach, focusing on quality companies that are
believed to have stable margins and high returns on equity. Strategic Advisers believes
this approach may emphasize downside protection as the fund has tended to maintain
low beta and be defensively positioned.
M&G Investment
Management
Sub-
Adviser
An opportunistic, all-cap emerging markets strategy that looks for companies that
fall into one of four baskets: deep cyclicals, companies with structural tailwinds,
compounders, and quality. A low turnover, concentrated portfolio with very limited
sector or country biases, as well as a modest value and small-cap tilt.
Oppenheimer
Developing
Markets Fund
(ODVIX)
Mutual
Fund
A concentrated, benchmark-agnostic, and opportunistic growth strategy with a
long-term thematic approach. The strategy seeks companies with durable and
above-average earnings growth and return-on-capital due to their unique competitive
advantages. Strategic Advisers believes this strategy seeks to add value through stock
selection stemming from long-term secular trends and an opportunistic approach that
provides liquidity during times of skepticism.
Continued
Strategic Advisers
®
International Fund
I
n
t
e
r
n
a
t
i
o
n
a
l
E
q
u
i
t
y
PORTFOLIO MANAGER: Wilfred Chilangwa
“ This fund seeks to provide shareholders with well-diversi?ed international equity exposure
while leveraging Strategic Advisers’ research and investment ideas across the global markets.”
BENCHMARK: Morgan Stanley Capital International Europe, Australasia, Far East (net MA tax) [MSCI
®
EAFE
®
(net MA tax)]
6
SUB–ASSET CLASS: Developed International
SYMBOL: FILFX
INVESTMENT OBJECTIVE: Seeks capital appreciation.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Causeway Capital
Management
Sub-
Adviser
Causeway follows a traditional value, all-cap (generally above $750 million) approach
to international investing. Portfolio managers focus on earnings, dividend and payout
yield, price-to-book-value ratios, and cash ?ow. Developed markets strategy combines a
bottom-up approach to stock picking with proprietary risk management tools. Country,
industry, and security exposures are a residual of the security selection process. Over a
full market cycle, the strategy seeks to outperform with lower volatility relative to the index
and peers.
Fidelity Advisor
®
Diversi?ed
International
Fund (FDVIX)
Mutual
Fund
Core international fund that seeks high-quality, durable businesses that can grow in a
variety of environments.
Fidelity
®
International
Discovery Fund
(FIGRX)
Mutual
Fund
Broadly diversi?ed, GARP, core holding within the Fund. The portfolio manager utilizes
a bottom-up stock selection approach focused on companies that the manager
believes are exhibiting stable return on capital, cash ?ow growth, and reasonable
valuations. While the fund does not typically have large regional or sector deviations
from its benchmark, the MSCI EAFE Index, the manager tends to ?nd his preferred
growth characteristics within mid-cap companies.
Harbor
International
Fund (HAINX)
Mutual
Fund
Opportunistic, high beta fund with signi?cant exposure to global growth and
emerging markets.
Strategic Advisers
®
Emerging Markets Fund — continued
F
S
M
A
X
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Somerset Capital
Management
Sub-
Adviser
Fundamental research-driven, opportunistic, all cap, low turnover, concentrated
strategy with a quality growth bias and opportunistic allocation to deep value.
Somerset has a strong track record of adding value in the less ef?cient SMID
cap space.
T. Rowe Price
Emerging
Markets Stock
Fund (PRMSX)
Mutual
Fund
GARP-focused fund with a quality bias that looks for companies with strong franchises,
steady growth, improving margins and cash-?ow generation. Corporate governance
and the strength of the management team are factors that are closely considered. The
fund is built from the bottom up, with a long-term investment horizon (3–5 years), but
also uses a top-down macro screen designed to identify potential problems within
certain countries or regions. Strategic Advisers believes the fund may outperform in
steady growth environments and underperform in momentum markets.
Continued
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Strategic Advisers
®
International Fund — continued
F
I
L
F
X
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Massachusetts
Financial Services
Company (MFS);
International
Research Equity
Strategy
Sub-
Adviser
Fundamental research-driven and sector-neutral core strategy that follows a growth-
at-a-reasonable-price (GARP) discipline to uncover the companies, within each industry,
that are believed to exhibit the most stable fundamentals through an economic cycle.
Region and country positions are an outcome of the fundamental process.
Massachusetts
Financial Services
Company (MFS);
International
Value Strategy
Sub-
Adviser
All-market capitalization value strategy with a long-term investment focus that Strategic
Advisers believes has rigorous valuation discipline and a contrarian approach. The
portfolio managers seek undervalued companies that they believe have high-quality
franchises or signi?cant potential for improvement. Sector and country positions are
an outcome of the fundamental process. Strategic Advisers believes that the portfolio
managers apply a consistent value-driven investment process and strong downside risk
management. Strategic Advisers believes this strategy could potentially deliver strong
risk-adjusted excess returns over a full market cycle with the most compelling relative
outperformance in risk-averse markets.
Strategic Advisers
®
Core Income Fund
F
i
x
e
d
I
n
c
o
m
e
PORTFOLIO MANAGER: Gregory Pappas
“ The Core Income Fund is constructed using a combination of top-down and bottom-up
managers that Strategic Advisers believes have the most thoughtful investment strategies within
the ?xed income asset class, a combination that aims to consistently add value over time.”
BENCHMARK: Barclays Aggregate Bond Index
7
SUB–ASSET CLASS: Investment Grade
SYMBOL: FPCIX
INVESTMENT OBJECTIVE: Seeks a high level of current income.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Fidelity
®
Total
Bond Fund
(FTBFX)
Mutual
Fund
The fund is a core-plus investment strategy that allocates assets across investment
grade, high yield, and emerging debt while seeking to minimize active interest rate
risk. The strategy seeks to add value through asset allocation and security selection
driven by bottom-up research of individual issuers.
Metropolitan
West Total Return
Bond Fund
(MWTRX)
Mutual
Fund
Value-oriented, opportunistic, core plus offering that seeks to provide steady
performance in widely varying market conditions. The portfolio management team’s
disciplined, value-conscious focus has allowed them to remain on top of macro-
economic and market fundamentals.
PIMCO Total
Return Bond
Fund (PTTAX)
Mutual
Fund
Strategic Advisers views this fund as a core plus offering with higher risk/return
potential than a traditional core bond fund, as it may rotate into out-of-benchmark
sectors of the market such as high yield and foreign bonds. The investment strategy
is based on top-down global macro analysis that is derived from a number of
different inputs.
Pyramis Global
Advisors —
Core Investment
Grade
Sub-
Adviser
The Pyramis Global Advisors Core Investment Grade Strategy employs a bottom-up,
duration neutral, fundamental investment strategy complemented by top-down
inputs. An integral part of the strategy is intensive risk management with a focus on
low tracking error. Their process emphasizes sector allocation and individual security
selection, while managing duration in line with the index. It’s well diversi?ed across
sectors and issuers. Strategic Advisers views its process as complementary to other
managers in the portfolio.
Western Asset
Core Plus Bond
Fund (WAPAX)
Mutual
Fund
Managed with a core plus focus. Credit-intensive process and opportunistic approach
is supported by the ?rm’s deep and experienced research team. With a strong risk
management framework, Strategic Advisers has conviction in the ?rm’s potential to
deliver consistent performance over a business cycle.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s prospectus.
You may also obtain fund information, including a full list of holdings and aggregated holdings of individual securities, by visiting
Fidelity.com/holdings.
Strategic Advisers
®
Income Opportunities Fund
F
i
x
e
d
I
n
c
o
m
e
PORTFOLIO MANAGER: Gregory Pappas
“ The Income Opportunities Fund provides a diversi?ed approach to what has historically been
a volatile asset class, helping to bene?t our shareholders.”
BENCHMARK: Bank of America Merrill Lynch U.S. High Yield Constrained Index
8
SUB–ASSET CLASS: High Yield
SYMBOL: FPIOX
INVESTMENT OBJECTIVE: Seeks a high level of current income. The fund may also seek capital appreciation.
INVESTMENT APPROACH: Fund of funds. Invests in other mutual funds.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
BlackRock High
Yield Bond
Portfolio (BHYAX)
Mutual
Fund
Slightly more aggressive approach than most other holdings in the Fund as it typically
holds out-of-benchmark positions such as equities, convertibles, and bank loans.
Strategic Advisers believes the fund may be a good diversi?er, but historically it has
been more volatile than other high-yield peers.
Eaton Vance
Income Fund of
Boston (EVIBX)
Mutual
Fund
Fund focuses mostly on high yield bonds with limited equity exposure. Strategic
Advisers believes the fund is managed by an experienced team of investment
professionals that use a bottom-up security selection process, complemented by
a top-down view to aid in downside protection.
Fidelity Advisor
®
High Income
Advantage Fund
(FAHCX)
Mutual
Fund
A high yield offering that leverages Portfolio Manager Harley Lank’s ability to invest
across the capital structure. The Fund makes full use of its broad mandate by investing
in high yield debt, equities, bank loans, convertible bonds and preferred stocks in an
opportunistic manner.
Fidelity
®
Capital
& Income Fund
(FAGIX)
Mutual
Fund
Strategic Advisers believes this fund to have a higher risk/higher potential reward
investment approach when compared to many high-yield peers. It focuses on lower-
quality high-yield issues, and may own up to 20% in equities. Like most Fidelity bond
funds, bottom-up, issue-by-issue research drives selection.
Fidelity
®
High
Income Fund
(SPHIX)
Mutual
Fund
This fund owns mostly high-yield bonds, is benchmark aware, and maintains low
tracking error.
Hotchkis & Wiley
High Yield Fund
(HWHAX)
Mutual
Fund
Fund focuses on higher-rated securities within non-investment-grade bond categories,
but may also own very low-quality bonds, as well as bank loans. The fund is
managed by an experienced investment team and seeks to perform well in a market
environment where credit selection is an important determinant.
Janus High-Yield
Fund (JAHYX)
Mutual
Fund
Quality-biased fund. Management tends to augment their bottom-up focus with
macro views on credit, which look at spreads, underwriting standards, and leveraged
buyout activity, among other things.
T. Rowe Price
High Yield Fund
(PAHIX)
Mutual
Fund
Staple offering that Strategic Advisers believes may be less volatile than many high
yield peers due to diversi?cation. Strategic Advisers believes the fund’s approach
seeks to protect on the downside, while recognizing it may trail more aggressive peers
on the upside.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Strategic Advisers
®
Short Duration Fund
S
h
o
r
t
-
T
e
r
m
PORTFOLIO MANAGER: Gregory Pappas
“ The Short Duration Fund seeks to provide our clients with a diversi?ed investment
approach and disciplined risk management strategy for the short-term bond portion
of a client’s portfolio.”
BENCHMARK: Citigroup 6-Month U.S. Treasury Bill Index
9
SUB–ASSET CLASS: Ultra Short
SYMBOL: FAUDX
INVESTMENT OBJECTIVE: Seeks to obtain a high level of current income consistent with preservation of capital.
INVESTMENT APPROACH: Multi-manager fund. Invests in mutual funds and ETFs and utilizes sub-advisers.
Alphabetical listing of managers with allocations of 5% or greater as of 9/30/15.
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
Fidelity
®
Conservative
Income Bond
Fund (FCNVX)
Mutual
Fund
A short-duration bond strategy that seeks to generate a high level of current income
and preserve capital by investing primarily in U.S. dollar–denominated money market
and high-quality investment-grade securities. Managed by a Fidelity veteran who has
managed both taxable and municipal money market portfolios. Strategic Advisers
believes the strategy’s concentration in higher-yielding corporate credits may provide
Strategic Advisers Short Duration Fund with a yield advantage over time.
Fidelity
®
Institutional
Money Market—
Money Market
Portfolio (FNSXX)
Mutual
Fund
Money market portfolio that seeks to obtain a high level of current income as is
consistent with the preservation of principal and liquidity.
Fidelity
®
Short-
Term Bond Fund
(FSHBX)
Mutual
Fund
Bottom-up, research-driven investment process that utilizes fundamental,
quantitative, and structured analysis, while also incorporating macroeconomic
inputs. Risk management plays an important role in this short-term bond strategy
as the portfolio manager tends to incrementally build positions — typically with
an investment-grade focus and duration neutral bias. As such, Strategic Advisers
believes this investment approach could lead to reduced volatility during
down markets.
Metropolitan
West Low
Duration Bond
Fund (MWLDX)
Mutual
Fund
Slightly more aggressive investment approach than most other short-term bond
positions in the Fund, as it tends to have more out-of-benchmark exposure. Strategic
Advisers believes the fund may be a good diversi?er, but may have slightly
higher volatility.
PIMCO Short-
Term Fund
(PSFAX)
Mutual
Fund
Actively managed low-duration bond fund that invests in high-quality ?xed income
securities. The strategy seeks to outperform money markets on a consistent basis,
while still providing liquidity and principal security. The investment strategy is based
on top-down global macro analysis, but then combined with bottom-up credit
research. With a specialized portfolio management team, Strategic Advisers has
conviction in the fund’s potential to deliver a consistent level of outperformance.
Pyramis Global
Advisors*
Sub-
Adviser
Fundamental research-driven process that uses a diversi?ed approach which limits
issuer exposure to 2%. The portfolio management team follows a low tracking error
strategy and measures its sector and duration exposure against the Barclays 6-Month
Swap Index.
10
Strategic Advisers believes that Pyramis’ dependable investment
process and eye toward risk management make this an all-weather strategy that may
provide a consistent level of outperformance in many market conditions.
Continued
*Pyramis Global Advisors and Strategic Advisers, Inc., are affiliates of each other and of Fidelity Investments.
Strategic Advisers
®
Short Duration Fund — continued
F
A
U
D
X
FIRM OR FUND VEHICLE RATIONALE FOR SELECTION
T. Rowe Price Sub-
Adviser
Strategic Advisers views T. Rowe Price as a conservative, high-quality, short-term
bond manager that maintains a dependable investment approach that seeks to
deliver consistent long-term performance with few surprises. As a key component of
their investment process, individual sector heads, in conjunction with the portfolio
manager, form top-down perspectives and then combine those views with bottom-up
fundamental research from the credit analyst teams. Strategic Advisers believes that
the ?rm’s consistent investment process and extensive resources, and the portfolio
manager’s many years of experience managing short-term bond strategies, may
help them outperform the Barclays 1–3 Year Government/Credit Index
11
with below-
average risk over a full market cycle.
Separate investment decisions and the resulting purchase and sale activities of the fund’s sub-advisers might adversely affect the
fund’s performance or lead to disadvantageous tax consequences.
For more information on the investment strategies employed by the Strategic Advisers Funds, please see the fund’s
prospectus. You may also obtain fund information, including a full list of holdings and aggregated holdings of individual
securities, by visiting Fidelity.com/holdings.
Diversi?cation/asset allocation does not ensure a pro?t or guarantee against loss.
1
S&P 500
®
Index: The S&P 500
®
Index is a registered service mark of The McGraw-Hill Companies, Inc., and has been licensed for use by Fidelity
Distributors Corporation and its af?liates. It is an unmanaged index of the common stock prices of 500 widely held U.S. stocks that includes the
reinvestment of dividends.
2
Russell 1000
®
Growth Index: The Russell 1000
®
Growth Index is an unmanaged market capitalization–weighted index of those stocks of the 1,000
largest U.S.-domiciled companies that exhibit growth-oriented characteristics.
3
Russell 2500
®
Index: The Russell 2500
®
Index is a market capitalization–weighted index designed to measure the performance of the small- to mid-cap
segment of the U.S. equity universe. It includes approximately 2,500 of the smallest securities in the Russell 3000
®
Index.
4
Russell 1000
®
Value Index: The Russell 1000
®
Value Index is an unmanaged market capitalization–weighted index of those stocks of the 1,000 largest
U.S.-domiciled companies that exhibit value-oriented characteristics.
5
MSCI Emerging Markets Index
SM
: The Morgan Stanley Capital International Emerging Markets Index is an unmanaged market capitalization–weighted index
of equity securities of companies in various countries. This index is designed to represent the performance of emerging stock markets throughout the world,
excluding certain market segments unavailable to U.S.-based investors.
6
MSCI
®
EAFE
®
Index (net MA tax): An unmanaged market capitalization–weighted index that is designed to represent the performance of developed stock
markets outside the United States and Canada. The EAFE Index is a registered service mark of Morgan Stanley and has been licensed for use by FMR LLC.
7
Barclays Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index): An unmanaged market value–weighted performance
benchmark for investment-grade ?xed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at
least one year.
8
Bank of America Merrill Lynch U.S. High Yield Constrained Index: The Merrill Lynch U.S. High Yield Constrained Index is a market value–weighted index of all
domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Issues included in the index have maturities of one year
or more and have a credit rating lower than BBB-/Baa3, but are not in default. The Merrill Lynch U.S. High Yield Constrained Index limits any individual issuer to a
maximum of 2% benchmark exposure.
9
Citigroup 6-Month U.S. Treasury Bill Index measures the return equivalent of yield averages of the last six 6-month U.S. Treasury bill month-end rates that are not
marked to market.
10
Barclays 6-Month Swap Index is a principal-weighted index of swaps with 6-month maturities.
11
Barclays 1–3 Year Government/Credit Index: Barclays U.S. 1–3 Year Government/Credit Bond Index is a market value–weighted index of investment-grade
?xed-rate debt securities with maturities from one to three years from the U.S. Treasury, U.S. Government-Related, and U.S. Corporate Indices.
Fidelity Portfolio Advisory Service
®
is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service
provides discretionary money management for a fee.
Brokerage services are provided by Fidelity Brokerage Services LLC. Custody and other services are provided by National Financial Services LLC. Both are Fidelity
Investments companies and members of NYSE and SIPC.
Past performance is no guarantee of future results.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the fund.
The securities of smaller, less well-known companies can be more volatile than those of larger companies.
In general, the bond market is volatile, and ?xed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect
is usually more pronounced for longer-term securities.) Fixed income securities also carry in?ation risk, liquidity risk, call risk, and credit and default risks for both
issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price vol-
atility is not possible. Lower-quality debt securities generally offer higher yields, but they also involve greater risk of default or price changes due to potential changes
in the credit quality of the issuer. Any ?xed income security sold or redeemed prior to maturity may be subject to loss.
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. Value stocks can
perform differently from other types of stocks and can continue to be undervalued by the market for long periods of time.
Stock markets, especially foreign markets, are volatile and can decline signi?cantly in response to adverse issuer, political, regulatory, market, or economic
developments.
Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market, or economic developments, all of which are
magni?ed in emerging markets. These risks are particularly signi?cant for funds that focus on a single country or region.
ETFs may trade at a discount to their NAV and are subject to the market ?uctuations of their underlying investments.
You cannot invest directly in an index.
Strategic Advisers is a registered service mark belonging to FMR LLC.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Contact Fidelity for
a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Fidelity Brokerage Services LLC, Member NYSE and SIPC, 900 Salem Street, Smith?eld, RI 02917
PASR-BRO-Q315
563280.26.1 1.926212.120
For more information or to set up an appointment,
please contact your Fidelity representative.
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