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A Differentiated Approach to Equity Investing

For investors seeking a differentiated approach to equity investing, the Fidelity Event Driven Opportunities Fund seeks capital appreciation and may offer potentially lower correlation to the broader equity market over time.

The Fidelity Event Driven Opportunities Fund seeks capital appreciation by investing in companies involved in corporate events, such as corporate reorganizations, changes in beneficial ownership, and deletion from a market index. Event-driven investing attempts to take advantage of mispricing in a company's stock that that may result from these events.

The fund is focused on company-specific events instead of market events, which may be less influenced by macroeconomic conditions over the long term. This lower correlation of event-driven securities may increase attractiveness to investors who are seeking portfolio diversification. Unlike other event-driven strategies that may focus on a single event or special situation, the fund seeks exposure to companies that may be involved in multiple events.

Types of events and the potential opportunity

  What is the event? What is the potential opportunity?
Corporate spinoffs Creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company
  • Mispricing from forced selling by passive funds, may create favorable entry points
  • Focused management teams at the new entity
13D filings Required SEC filing when an investor purchases 5% or more of a company's shares
  • Differentiated view of the impact an active beneficial owner may have on advocating and effecting change over time
Index deletions When a firm is deleted from an equity index, such as the S&P 500
  • Mispricing from forced selling by passive funds, may create favorable entry points
  • May create under-appreciated stocks with low investor expectations

The fund may also invest in other special situations not shown.

Who may want to invest

The Fidelity Event Driven Opportunities Fund may be appropriate for sophisticated investors seeking capital appreciation through exposure to companies involved in corporate events, with potentially lower correlation to the broader equity market over time.

Questions?

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Diversification does not ensure a profit or guarantee against loss.
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. The securities of smaller, less well-known companies can be more volatile than those of larger companies. Growth stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.
The value of securities in companies involved in a special situation event can perform differently from the market as a whole and other types of stocks, and can be more volatile than that of other issuers.
Indexes are unmanaged. It is not possible to invest directly in an index.
The S&P 500 is a market capitalization-weighted index of common stocks and is a registered service mark of the McGraw-Hill Companies, Inc. and has been licensed for use by Fidelity Distributors Corporation.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market or economic developments. These risks are particularly significant for funds that focus on a single country or region.
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