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BlackRock® Diversified Income Portfolio

This professionally managed account is designed to help you meet the challenges of generating income while managing for risk. It is composed primarily of exchange-traded funds (ETFs)1 that look for exposure to income opportunities in all market environments.

About the BlackRock® Diversified Income Portfolio

Benefits

Greater income potential

This portfolio pursues exposure to both commonly used and lesser-known sources of income in order to seek diversification and yield.

See how lesser-known income sources may help.
An active approach to seeking yield

The investment team has the flexibility to seek attractive income opportunities across all asset classes, sectors, and market environments.

See how an active approach to seeking yield may benefit you.
Focus on risk management The investment team carefully monitors and manages volatility—to a level of risk that is generally consistent with a portfolio comprised of 50% bonds and 50% stocks2—thereby potentially making ups and downs less extreme.
A personal relationship A dedicated financial consultant and portfolio specialist work together to help ensure your managed account and overall financial needs are met.

Account details

Description A portfolio composed primarily of ETFs, but may contain other investment vehicles such as mutual funds.1 The investment team seeks a greater level of income than could otherwise be garnered from exposure to commonly used income sources, while carefully balancing the trade offs between risk and yield.
Minimum investment $200,000
Annual advisory fee An annual advisory fee will be charged—between 0.55% and 1.10%—and will vary based on total assets invested.

Investment management

Investment team

The alliance between Strategic Advisers, Inc., a Fidelity Investments company and registered investment adviser, and BlackRock Investment Management, LLC, brings two industry-leading investment firms together. Strategic Advisers chose to work with BlackRock for a number of reasons, including its long-standing position as a leading provider of exchange-traded funds.

Your Investment Team

Investment strategy Seeks to generate income with the potential for capital appreciation by investing in commonly used and lesser-known sources of income, while carefully balancing the trade-offs between risk and yield.
Investment holdings Composed primarily of ETFs, but may contain other investment vehicles such as mutual funds.1 The portfolio's investment exposure will be diversified among commonly used (e.g., stocks and bonds) and lesser-known (e.g., REITS and bank loans) sources of income to help minimize volatility and balance risk, return, and income potential.

How we keep in touch

Fidelity contacts A portfolio specialist will be your dedicated contact for all your managed account needs. You may also have access to a financial consultant who will be your contact for all your financial needs across Fidelity.
Customized communications You will also have access to an exclusive client website featuring information specific to your account, including monthly statements, quarterly investment reviews, and market insights from Fidelity and BlackRock.
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A Tactical Approach to Finding Income

The BlackRock® Diversified Income Portfolio is tactical in nature, meaning the investment managers have the ability to adjust or shift its asset allocation as market conditions change in order to find attractive income opportunities with an appropriate amount of risk.

As the chart below shows, exposure and weighting to any one type of security can and will shift over time in order to help you get the income you need.

MA_Tactical-Allocation

This chart is for illustrative purposes only and does not predict or depict the portfolio's asset allocation, investment selection/types of investments, or percent holdings the account can invest in. Asset allocation does not ensure a profit or guarantee against loss.

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Meaningful Income Opportunities

As you can see in the chart below, one of the portfolio's greatest strengths is the freedom it has to invest in both commonly-used and lesser-known sources of income—such as ETF exposure to bank loans, preferred stock, and emerging market debt—in order to seek yield.

MA_meaningful-income-opportunities
This chart is for illustrative purposes only and does not predict or depict the portfolio's asset allocation, investment selection/types of investments, or percent holdings the account can invest in.

Source: Bloomberg, Standard & Poor's and U.S. Department of the Treasury as of 12/31/13. Long-term inflation rate (CPI data) is 3.04% sourcedfrom Morningstar from 1926 through 12/31/13. Index yields are shown for illustrative purposes only and do not predict or depict the yield of this product. Securities indexes are unmanaged and are not subject to fees and expenses typically associated with managed accounts or investment funds. You cannot invest directly in an index. Past performance does not guarantee future results. Fixed income yields are represented by Yield to Worst. The yield reflected for Cash is the 3 Month Daily Treasury Yield Curve Rate. All other yields are represented by Current Yield (12-Month Yield). Represented Indices: U.S. Treasury represented by the Barclays U.S. 7-10 Year Treasury Bond Index, including U.S. Treasury securities with a maturity of 7–10 years. Core bonds represented by the Barclays U.S. Aggregate Bond Index, comprising more than 5,000 investment-grade taxable bonds. Investment-grade bonds represented by the Barclays U.S. Aggregate Corporate Total Return Value Unhedged USD Index, consisting of publicly issued, fixed rate, non-convertible investment grade debt securities. High-yield bonds represented by the Barclays High Yield 2% Issuer Capped Index, comprising issues that have at least $150 million par value outstanding, a maximum credit rating of Ba1 or BB+ (including defaulted issues) and at least one year to maturity. Each issuer is limited to 2% of the index. Bank loans represented by the S&P Leveraged Loan Index, designed to reflect the largest facilities in the leveraged loan market. It mirrors the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads, and interest payments. U.S. equity represented by the S&P 500 Index, covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE issues). Global equity represented by the MSCI World Index, consisting of a market value–weighted average of the performance of about 1,350 securities on the stock exchange of selected countries. High-dividend equities represented by the MSCI USA High Dividend Yield Index, reflecting the performance of the high dividend yield of large- and mid-cap stocks in the U.S. Preferred stock represented by the S&P U.S. Preferred Stock Index, measuring the performance of preferred stocks listed in the U.S. with a market capitalization over $100 million. Emerging market debt represented by the Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for external-currency-denominated debt instruments of the emerging markets. U.S. REITs represented by the FTSE NAREIT Equity REITs Index, measuring the stock performance of companies engaged in the ownership and development of the real estate markets. Master limited partnerships represented by the Alerian MLP Index, a market cap–weighted, float-adjusted index composite of the 50 most prominent energy master limited partnerships (MLPs). The yield reflected for Cash is the 3 Month Daily Treasury Yield Curve Rate. Cash yields are based off the 3-Month Treasury Yield Curve Rate. Treasury Yield Curve Rates are commonly referred to as "Constant Maturity Treasury" rates, or CMTs. Yields are interpolated by the Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The yield values are read from the yield curve at fixed maturities, currently 1, 3 and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. Source: U.S. Department of the Treasury, www.treasury.gov, as of 11/13/2013. Diversification does not ensure a profit or guarantee against loss.

Next step

To open a BlackRock Diversified Income Portfolio with Fidelity, start by telling us your financial needs and goals.

Call an investment professional at 800-544-1766.

Ready to get started?

Tell us your financial goals and we'll send you a complimentary investment proposal.

1. The BlackRock Diversified Income Portfolio is composed of exchange-traded products (ETPs)—primarily exchange-traded funds (ETFs)—but may contain other investment vehicles such as mutual funds.
2. The portfolio is represented as being composed of the following: 50% Barclays U.S. Aggregate Bond Index and 50% MSCI World Index.
The Barclays U.S. Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The MSCI World Index represents the performance of stocks in developed market countries (including the U.S.) available for purchase by global investors. Indexes are unmanaged. It is not possible to invest directly in an index.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. 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.

ETPs are subject to market volatility and the risks of their underlying investments, which may include the risks associated with investing in smaller companies, foreign securities, commodities, and fixed income investments. Foreign securities are subject to interest rate, currency-exchange rate, economic, and political risk, all of which are magnified in emerging markets. ETPs that target a small universe of securities, such as a specific region or market sector, are generally subject to greater market volatility as well as to the specific risks associated with that sector, region, or other focus. ETPs that use derivatives, leverage, or complex investment strategies are subject to additional risks. The return of an index ETP is usually different from that of the index it tracks because of fees, expenses, and tracking error. An ETP may trade at a premium or discount to its NAV (or indicative value in the case of exchange-traded notes). Each ETP has a unique risk profile that is detailed in its prospectus, offering circular, or similar material, which should be considered carefully when making investment decisions.

Diversification and asset allocation does not ensure a profit or guarantee against loss.

Strategic Advisers, Inc. and BlackRock Investment Management, LLC are independent entities and are not legally affiliated. Strategic Advisers, Inc. is the investment manager for client accounts and implements trades for the accounts based on the model portfolio of investments it receives from BlackRock Investment Management, LLC. Strategic Advisers, Inc. may select investments for an account that differ from BlackRock Investment Management, LLC’s model.

Fidelity Portfolio Advisory Service®, BlackRock® Diversified Income Portfolio and Fidelity® Strategic Disciplines are services offered through Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments Company. Fidelity® Personalized Portfolios may be offered through the following Fidelity Investments companies: Strategic Advisers, Inc., Fidelity Personal Trust Company, FSB ("FPTC"), a federal savings bank, or Fidelity Management Trust Company ("FMTC"). Non-deposit investment products and trust services offered through FPTC and FMTC and their affiliates are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, are not obligations of any bank, and are subject to risk, including possible loss of principal. These services provide 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.
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