1. For Fidelity® Tax-Managed U.S. Equity Index Strategy, Fidelity® Tax-Managed International Equity Index Strategy, and taxable accounts in Fidelity® Equity-Income Strategy, Fidelity® U.S. Large Cap Equity Strategy, and Fidelity® International Equity Strategy, tax-smart (i.e., tax-sensitive) investing techniques, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, primarily with respect to determining when assets in a client's account should be bought or sold. Assets contributed may be sold for a taxable gain or loss at any time. There are no guarantees as to the effectiveness of the tax-smart investment techniques applied in serving to reduce or minimize a client's overall tax liabilities, or as to the tax results that may be generated by a given transaction.
2. The advisory fee does not cover charges resulting from trades effected with or through broker-dealers other than Fidelity Investments affiliates, mark-ups or mark-downs by broker-dealers, transfer taxes, exchange fees, regulatory fees, odd-lot differentials, handling charges, electronic fund and wire transfer fees, or any other charges imposed by law or otherwise applicable to your account. You will also incur underlying expenses associated with the investment vehicles selected.
3. Generally, ETFs swap securities for securities or redeem securities in kind, while mutual funds generally sell securities to redeem shares. The ETF redemption process is not always able to be executed in a way that avoids all capital gains.
4. Keep in mind that investing, including investing in an SMA, mutual fund, or ETF, involves risk. They are subject to market fluctuation and the risks of their underlying investments. You may gain or lose money. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. ETFs and mutual funds are subject to management fees and other expenses. In addition to any underlying expenses associated with an investment vehicle, SMAs are also subject to an annual advisory fee. Fidelity's SMAs charge gross advisory fees that range from 0.20% to 0.90%, and vary based on total assets invested. The total fees and expenses applicable to mutual funds and ETFs are generally lower than those associated with SMAs. For more information on the specific fees and expenses associated with a particular SMA, mutual fund, or ETF, speak with your investment professional.
S&P 500® Index: A market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
MSCI EAFE Index (Net MA Tax) is an unmanaged, market capitalization–weighted index that is designed to measure the investable equity market performance for global investors in developed markets, excluding the US and Canada. Index returns are adjusted for tax withholding rates applicable to U.S.-based mutual funds organized as Massachusetts business trusts.
Indexes are unmanaged. It is not possible to invest directly in an index. Securities indexes are not subject to fees and expenses typically associated with managed accounts.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
An SMA is not intended to provide a complete investment program. You are responsible for appropriate diversification of assets held outside your SMA.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks—all of which are magnified in emerging markets.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counter parties. Any fixed income security sold or redeemed prior to maturity may be subject to loss. The municipal market can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities. Interest income generated by municipal bonds is generally expected to be exempt from federal income taxes and, if the bonds are held by an investor resident in the state of issuance, state and local income taxes. Such interest income may be subject to federal and/or state alternative minimum taxes. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets. Generally, tax-exempt municipal securities are not appropriate holdings for tax advantaged accounts such as IRAs and 401(k)s.
Fidelity® Strategic Disciplines provides discretionary investment management for a fee. Fidelity® Strategic Disciplines includes the Fidelity® Equity-Income Strategy, the Fidelity® U.S. Large Cap Equity Strategy, the Fidelity® Tax-Managed U.S. Equity Index Strategy, the Fidelity® International Equity Strategy, the Fidelity® Tax-Managed International Equity Index Strategy, the Fidelity® Core Bond Strategy, the Fidelity® Intermediate Municipal Strategy, and the Breckinridge Intermediate Municipal Strategy. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FBS, and NFS are Fidelity Investments companies.
FPWA has engaged Strategic Advisers LLC, a registered investment adviser and a Fidelity Investments company, to provide the day-to-day discretionary portfolio management of Fidelity® Equity Income Strategy, Fidelity® U.S. Large Cap Equity Strategy, Fidelity® International Equity Strategy, Fidelity® Tax-Managed International Equity Index Strategy and Fidelity® Tax-Managed U.S. Equity Index Strategy accounts, including investment selection and trade execution, subject to FPWA's oversight. Strategic Advisers LLC implements trades for Fidelity® Equity Income Strategy Fidelity® International Equity Strategy and Fidelity® U.S. Large Cap Equity Strategy accounts based on the model portfolio of investments it receives from its affiliate, Fidelity Management & Research Company LLC, but may select investments for an account that differ from Fidelity Management & Research Company LLC's model.
FPWA has engaged Fidelity Management & Research Company LLC , a registered investment adviser and a Fidelity Investments company, to provide the day-to-day discretionary portfolio management of Fidelity® Intermediate Municipal Strategy and Fidelity® Core Bond Strategy accounts, including investment selection and trade execution, subject to FPWA's oversight.
FPWA has engaged Breckinridge Capital Advisors, Inc. to provide the day-to-day discretionary portfolio management of Breckinridge Intermediate Municipal Strategy accounts, including investment selection and trade execution, subject to FPWA's oversight. Breckinridge is an independent registered investment adviser and is not affiliated with any Fidelity Investments company.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917