The Hong Kong Polytechnic University MPF Member Briefing Sep 2016 - - PowerPoint PPT Presentation

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For investment professional use only and not for general public distribution

The Hong Kong Polytechnic University

MPF Member Briefing

Sep 2016

Silvia Kong Client Director

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Fidelity Retirement Master Trust (“FRMT”)

Please note:

• You should consider your own risk tolerance level and financial circumstances before making any

investment choices. When, in your selection of funds, you are in doubt as to whether a certain fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and/or professional advice and choose the fund(s) most suitable for you taking into account your circumstances.

• The MPF Conservative Fund under the Fidelity Retirement Master Trust does not guarantee the

repayment of capital.

• You should not invest based on this document alone and should read the Principal Brochure of

Fidelity Retirement Master Trust for further information.

• Fidelity SaveEasy Funds are not savings deposits and involve investment risks and this product

may not be suitable for everyone. Investors should also consider factors other than age and review their own investment objectives.

• Fidelity Hong Kong Tracker Fund is subject to market risk of the sector or market tracked by the

relevant index, tracking error risk, passive management risk, early termination risk, etc. Please refer to the “Risk Factors” sub-section in the Principal Brochure of Fidelity Retirement Master Trust for further information.

• Funds with exposure to RMB denominated debt securities issued or distributed outside mainland

China, will subject to RMB currency risk, RMB exchange risk and risk of limited pool of investments.

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Contents

Fidelity Retirement Master Trust Investment performance Market review & outlook Member services Appendix

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Fidelity Retirement Master Trust

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A dedicated partnership delivering a leading MPF solution

FIL Investment Management (Hong Kong) Limited HSBC Institutional Trust (Asia) Limited

• Scheme Sponsor
• Investment Manager1
• Trustee
• Custodian
• Administrator

1 Fidelity is the investment manager for all of the constituent funds under FRMT with the exception of the FRMT – Hong Kong Tracker Fund, which is managed by State Street Global

Advisors (SSgA).

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Fidelity Retirement Master Trust 19 choices to cater for your risk appetite

^ Investors are reminded that the above only represents the target asset allocations of the Constituent Fund and the actual asset allocations will at times vary considerably from that shown above as market, political, structural, economic and other conditions change. For the actual asset allocations of each Constituent Fund, you may refer to the fund fact sheet of the relevant Constituent Fund which is available on the Fidelity Website. ~ Fidelity Hong Kong Tracker Fund is subject to market risk of the sector or market tracked by the relevant index, tracking error risk, passive management risk, early termination risk,

• etc. Please refer to the “Risk Factors” sub-section in the Principal Brochure of FRMT for further information.

◊ RMB Bond Fund is denominated in HKD only and not in RMB. The Constituent Fund is subject to RMB currency risk and exchange risk, risk of limited pool of investments, etc. Please refer to the “Risk Factors” sub-section in the Principal Brochure of FRMT for further information. Δ Fees and charges of MPF Conservative Funds can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit deduction. The MPF Conservative Fund under the FRMT uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. The purchase of a unit in the MPF Conservative Fund is not the same as placing funds on deposit with a bank or deposit-taking company.

Newly added on 16 May 2016

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Fidelity Retirement Master Trust SaveEasy Funds

▲ The SaveEasy Funds will initially have greater exposure to underlying funds investing into equities (which risk/return rating is 5). However, as the SaveEasy Funds draw closer to the applicable target year, the SaveEasy Funds would have a greater exposure to underlying funds investing into bonds and cash (risk/return rating will move down to 2 gradually). As and when the SaveEasy Funds exposures change, the risk/return rating of the SaveEasy Funds would move lower down the risk/ return rating scale. Please refer to the sub- section headed “Risk and Return Profile” and the chart displaying the Fidelity SaveEasy Funds Asset Rolldown in the sub-section headed “SaveEasy Funds” in the Principal Brochure of FRMT for details. ▲ The Fidelity SaveEasy Funds Asset Rolldown Chart above provides a simple method for investors to view the indicative asset allocations and also the shift in their risk/return profile over the duration of the particular SaveEasy Fund. Investors are reminded that this is an indicative rolldown and at any particular point in time actual portfolios may vary considerably from that shown above as market, political, structural, economic and other conditions change. The actual asset allocations in respect of the SaveEasy Funds may change at the discretion of FIL Investment Management (Hong Kong) Limited (“Fidelity”) without unitholders’ approval, notice to unitholders or approval from the Securities and Futures Commission / Mandatory Provident Fund Schemes Authority. * Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives.

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Reduction of management fees – MPF Conservative Fund and Hong Kong Bond Fund

Effective 16 May 2016

* Fees and charges of MPF Conservative Funds can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit deduction. The MPF Conservative Fund under the FRMT uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. The purchase of a unit in the MPF Conservative Fund is not the same as placing funds on deposit with a bank or deposit-taking company. Source: Fidelity International, May 2016

Name of Constituent Fund Existing Fund Management Fee (% p.a. of NAV) New Fund Management Fee (% p.a. of NAV) MPF Conservative Fund* 1.08% p.a. of NAV

0.93% p.a. of NAV

Hong Kong Bond Fund Up to 1.45% p.a. of NAV Up to 1.20% p.a. of NAV

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Fidelity Retirement Master Trust Recognized for outstanding performance

The above awards are for reference only, it is not indicative of the actual performance of the constituent funds. The third party mark appearing in this material is the property of the respective owner and not by Fidelity. The awards only represent Morningstar’s Best MPF Scheme Award Methodology (for details, please visit: awards.morningstar.com). The results are based on the quantitative and qualitative assessment of an MPF scheme as of 31 Dec 2015. The quantitative assessment is based on 1-year, 3-year and 5-year risk-adjusted returns of each constituent fund. The qualitative assessment is based on product diversity, transparency and disclosure, and investor experience of each MPF scheme from 1 Jan 2015 to 31 Dec 2015. Source: Fidelity International

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Investment performance

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FRMT performance vs median (as at 31 Aug 2016)

YTD (%) 3 Months (%) 1 Year (%) 3 Years (% p.a.) 5 Years (% p.a.) 10 Years (% p.a.) Index Tracking Funds Fidelity Hong Kong Tracker Fund Fund 7.21 11.81 8.62 3.83

• Median

7.19 11.80 8.53 4.44

• Equity Funds

Hong Kong Equity Fund Fund 5.29 11.63 8.20 4.02 3.23 6.36 Median 4.95 10.81 7.23 3.56 3.24 5.22 Asia Pacific Equity Fund Fund 10.49 8.65 14.72 5.05 4.24 7.06 Median 10.07 8.29 8.47 4.61 3.43 1.92 Global Equity Fund Fund 1.86 1.85 3.35 6.19 8.29 3.79 Median 1.63 2.79 2.82 5.09 7.02 2.30 Lifecycle Funds Growth Fund Fund 2.69 4.74 4.07 4.31 5.40 4.80 Median 2.65 5.01 3.86 3.50 4.48 3.18 Balanced Fund Fund 3.60 4.28 4.64 3.87 4.48 4.62 Median 4.08 4.39 4.72 3.14 3.95 3.68 Stable Growth Fund Fund 4.58 3.72 5.23 3.42 3.57 4.35 Median 4.70 3.79 5.15 2.64 2.63 3.26 Capital Stable Fund Fund 5.17 3.10 5.32 2.69 2.45 3.80 Median 5.17 3.10 5.12 2.25 1.60 2.90

Blue highlights represent funds that are in line with or outperform median. Source: Morningstar, net of fees, in HKD

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FRMT performance vs median (as at 31 Aug 2016)

YTD (%) 3 Months (%) 1 Year (%) 3 Years (% p.a.) 5 Years (% p.a.) 10 Years (% p.a.) Bond and Money Markets Funds Hong Kong Bond Fund Fund 3.65 1.97 4.51 3.34 1.84 2.90 Median 3.05 1.63 3.98 2.78 1.10 2.23 World Bond Fund Fund 7.79 2.73 7.19 2.43 1.41 3.12 Median 6.65 2.39 6.39 1.46

• 0.22

2.38 RMB Bond Fund Fund

• Median
• MPF Conservative Fund*

Fund 0.00 0.00 0.00 0.00 0.00 0.43 Median 0.00 0.00 0.01 0.07 0.04 0.53

Blue highlights represent funds that are in line with or outperform median; yellow highlights represent funds with no relevant median for comparison purpose.

* Fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit deduction. MPF Conservative Fund under the Fidelity Retirement

Master Trust uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. Source: Morningstar, net of fees, in HKD

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FRMT performance vs median (as at 31 Aug 2016)

YTD (%) 3 Months (%) 1 Year (%) 3 Years (% p.a.) 5 Years (% p.a.) 10 Years (% p.a.) SaveEasy Funds Fidelity SaveEasy 2050 Fund Fund 1.42 4.87

• Median
• Fidelity SaveEasy 2045 Fund

Fund 2.14 5.00

• Median
• Fidelity SaveEasy 2040 Fund

Fund 2.73 5.10 4.18 4.52 5.72

• Median
• Fidelity SaveEasy 2035 Fund

Fund 2.73 5.03 4.26 4.46 5.63

• Median
• Fidelity SaveEasy 2030 Fund

Fund 2.73 5.03 4.34 4.46 5.64

• Median
• Fidelity SaveEasy 2025 Fund

Fund 2.80 4.95 4.33 4.45 5.58

• Median
• Fidelity SaveEasy 2020 Fund

Fund 3.31 4.70 4.78 4.65 5.56

• Median
• Blue highlights represent funds that are in line with or outperform median; yellow highlights represent funds with no relevant median for comparison purpose.

* Fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit deduction. MPF Conservative Fund

under the Fidelity Retirement Master Trust uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. Source: Morningstar, net of fees, in HKD

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Market review & outlook

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Market review (as at 30 Jun 2016)

I-ER-MO-2Q08MgmtMkt-HM08/0837 Source: Fidelity International * Citigroup World Government Bond Index (Unhedged, Non-exempt Authority 10% capped)

Hong Kong

• Recent China hard data generally softened. Industrial production remained unchanged while fixed

asset investment dipped to the slowest since 2000.

• For the third year running, MSCI has chosen not to include mainland-listed companies into its index.

North America

• The Fed left interest rate unchanged at its June meeting as it continues to monitor inflation indicators

and global economic and financial developments. It also said Brexit a potential risk to the economy. Europe

• The UK has voted to leave the European Union, with 52% voting to leave.
• The ECB started its corporate sector purchase programme (CSPP) on 8 Jun 2016.

Japan

• Prime Minister Abe postponed Japan’s sales-tax hike from April 2017 to October 2019.
• Despite weaker growth and inflation, the Bank of Japan kept monetary policy unchanged.

Asia Pacific

• Central banks in Asia remain accommodative, the Bank of Korea cut its benchmark policy rate to

1.25% while the Central Bank of China (Taiwan) also lowered its rediscount rate to 1.375%. Bonds

• Heightened political risk from the EU referendum sent government bond yields lower, in particular,

the UK government bond yields.

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Bonds – Sovereign bonds are overbought in the short term

Source: Thomson Reuters Datastream, latest data point June 2016

Yields for UK Gilts Yields for US Treasury

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US – Increase in earnings is supporting consumption

Source: Thomson Reuters Datastream, latest data point May 2016

Average hourly earnings Personal Consumption Expenditure

Source: Thomson Reuters Datastream, latest data point Apr 2016

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China – Domestic demands have stabilized

Source: Thomson Reuters Datastream, latest data point Jun 2016

Retail Sales Growth Imports

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Japan – Survey results indicate deteriorating outlook

Economic Watcher Survey

Source: Thomson Reuters Datastream, latest data point May 2016

BoJ announced negative interest rate policy

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Europe – Post-Brexit outlook on UK

Source: MarcoBond, May 2016

Large current account deficit could become a problem Risk of Scotland to seek for another independence vote

Source: Telegraph.co.uk

• 6
• 5
• 4
• 3
• 2
• 1

1 2 3 Q4-70 Q4-72 Q4-74 Q4-76 Q4-78 Q4-80 Q4-82 Q4-84 Q4-86 Q4-88 Q4-90 Q4-92 Q4-94 Q4-96 Q4-98 Q4-00 Q4-02 Q4-04 Q4-06 Q4-08 Q4-10 Q4-12 Q4-14 UK Current account deficit (% of GDP, 4qma) ■ Remain ■ Leave

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Market outlook (as at July 2016)

Source: Fidelity International

• The macro environment should experience a period of stabilization following the

implementation of support measures by the Chinese authorities.

• The government is likely to put stability above structural reform in the near-term if growth

does weaken significantly. Neutral/ Positive

• The near-term implication of the UK “leave” vote could be that it pushes back the prospect of

Fed rate hike.

• Consumption remains well supported by rising wages and Brexit is unlikely to change this.

Positive

• The UK stepping away from the EU is a strong deglobalization signal. A shift away from

globalization and free trade has negative implications for growth and return expectations.

• The process of leaving the EU is also likely to be complex; trade, immigration and financial

services need to be re-negotiated separately and these require lengthy political talks. Negative

• Japan’s economy looks feeble, and is in a precarious situation with inflation collapsing and

the yen strengthening.

• While the current economic backdrop warrants the BoJ to introduce new supporting

measures, the continuous inaction by the BoJ is also keeping the market anxious. Neutral/ Negative

• The impact of Brexit to Asia through trades is relatively small.
• Growth potential in the region remains strong driven by a young population, a widening

middle class that favors consumption and continuous investment in infrastructure. Positive

• Uncertainty is likely to result in looser central bank policy and support bonds but the asset

class is overbought in the short term.

• Bond markets showing greater divergence and an increasing amount of bonds with negative

yields. Negative Hong Kong

• N. America

Japan Europe Bonds Asia Pacific

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Member services

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Source: Fidelity International

Fidelity Website– www.fidelity.com.hk

Monthl hly I Invest estment ent R Report 2016 016 O Outloo

• ok

Fund und Pr Price ces a s and D nd Detai ails s

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Member login https//www.fidelity.com.hk

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Activate your online account

Input your ID and last 4 digits of your mobile number

• Source : Fidelity International

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MPF

Effective 1 Aug 2016

* Please note that the final asset allocation percentage after switching process might be different due to price fluctuation.

Enhanced MPF asset switching process

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MPF

* Please note that the final asset allocation percentage after switching process might be different due to price fluctuation.

Enhanced MPF asset switching process

Effective 1 Aug 2016

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Switching channels and cut-off time

• r

Fidelity Investor Hotline Form

• r

Fidelity Online

https://www.fidelity.com.hk 2629 2629 Mail or fax to HSBC Institutional Trust Services (Asia) Limited

Cut-off time:

4pm on every business day

Fund price:

SAME business day

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Fidelity Website – www.fidelity.com.hk Fidelity Retirement Hotline – (852) 2629 2629

• 24-hour Interactive Voice Response System
• Member Service Hotline Centre

– Monday – Friday ， 9am to 6pm – Saturday，9am to 1pm

Fidelity Investor Centre

• Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong

Kong

• Monday – Friday, 9am to 6pm (by appointment)

Service channels

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Appendix

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Calendar year performance – FRMT

2011 (%) 2012 (%) 2013 (%) 2014 (%) 2015 (%) Index Tracking Funds Fidelity Hong Kong Tracker Fund

• 7.36*

3.97

• 5.38

Equity Funds Hong Kong Equity Fund

• 22.31

20.65 7.70 3.07

• 4.89

Asia Pacific Equity Fund

• 16.86

20.85 3.92 4.09

• 6.55

Global Equity Fund

• 10.91

16.59 24.93 4.47

• 0.65

Lifecycle Funds Growth Fund

• 14.52

16.74 17.23 1.52

• 1.89

Balanced Fund

• 10.61

14.15 12.72 1.45

• 2.15

Stable Growth Fund

• 6.52

11.50 8.60 1.45

• 2.58

Capital Stable Fund

• 2.65

8.54 4.56 1.22

• 3.05

Bond and Money Market Funds Hong Kong Bond Fund 5.00 3.96

• 3.36

3.93 1.49 World Bond Fund 5.08 5.26

• 2.20

2.15

• 3.91

MPF Conservative Fund 0.00 0.00 0.00 0.00 0.00 SaveEasy Funds Fidelity SaveEasy 2050 Fund

• Fidelity SaveEasy 2045 Fund
• Fidelity SaveEasy 2040 Fund
• 15.76

18.24 17.72 1.57

• 1.83

Fidelity SaveEasy 2035 Fund

• 15.84

18.10 17.62 1.55

• 1.92

Fidelity SaveEasy 2030 Fund

• 15.72

17.86 17.84 1.47

• 1.85

Fidelity SaveEasy 2025 Fund

• 15.35

17.57 17.54 1.54

• 1.85

Fidelity SaveEasy 2020 Fund

• 14.73

16.93 16.52 1.58

• 1.38

* Since launch date to the end of launch year. Fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit deduction. MPF Conservative Fund under the Fidelity Retirement Master Trust uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. Source: Fidelity International, net of fees, in HKD

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Equity Fund Mixed Asset Fund Bond Fund MPF Conservative Fund

Maximum: 2.29% Maximum: 2.11% Maximum:1.90% Maximum: 1.21% Minimum: 0.63% Minimum: 0.70% Minimum: 0.78% Minimum: 0.13% Average 1.58% Average 1.72% Average 1.38%

Average 0.69%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

Comparison of Fund Expense Ratio

Remark: Fund Expense Ratio = Fund Total Expenditure / Fund Total Asset The above average FER figures for FIL’s MPF funds are taken as the sum of FER divided by the number of funds in that fund category Source: Mandatory Provident Fund Schemes Authority's website as at 4 Jul 2016

Average of FIL’s MPF Equity Funds: 1.37 % Average of FIL’s MPF Bond Funds: 1.51% Fidelity MPF Conservative Fund：0.13% Average of FIL’s MPF Mixed Assets Funds: 1.54%

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Asset allocation – FRMT (as at 31 Jul 2016)

Global Equity Fund Growth Fund Balanced Fund Stable Growth Fund Capital Stable Fund Fund (%) Bmk (%) Fund (%) Bmk (%) Fund (%) Bmk (%) Fund (%) Bmk (%) Fund (%) Bmk (%) Equities 100.16 100.00 92.61 90.00 72.27 70.00 52.19 50.00 32.13 30.00 Hong Kong 1.89 1.31 30.76 30.00 24.66 24.00 17.74 17.00 10.76 10.00 Americas 58.90 58.12 19.13 18.00 15.05 14.00 11.06 10.00 7.01 6.00 Europe 20.35 22.38 17.15 18.00 13.13 14.00 9.20 10.00 5.15 6.00 Japan 8.88 8.85 12.37 12.00 9.32 9.00 6.73 6.50 4.19 4.00 Asia Pacific* 10.14 9.34 13.20 12.00 10.11 9.00 7.46 6.50 5.02 4.00 Bonds 0.00 0.00 4.06 7.00 22.53 25.00 42.53 45.00 57.61 60.00 Cash

• 0.16

0.00 3.33 3.00 5.20 5.00 5.28 5.00 10.26 10.00

For details of bmk, please refer to appendix Percentages may not add up to 100% due to rounding. Source: Fidelity International * For Global Equity Fund, Asia Pacific may include exposure to other markets

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Asset allocation – FRMT (as at 31 Jul 2016)

Fidelity SaveEasy 2050 Fund Fidelity SaveEasy 2045 Fund Fidelity SaveEasy 2040 Fund Fidelity SaveEasy 2035 Fund Fund (%) Bmk (%) Fund (%) Bmk (%) Fund (%) Bmk (%) Fund (%) Bmk (%) Equities 100.16 100.00 100.15 100.00 99.76 99.50 99.20 98.30 Hong Kong 34.32 34.00 34.45 34.00 34.23 33.82 33.89 33.42 Americas 20.36 20.00 20.16 20.00 20.27 19.90 20.16 19.66 Europe 18.68 20.00 18.76 20.00 18.30 19.90 18.52 19.66 Japan 13.43 13.00 13.40 13.00 13.35 12.94 13.19 12.78 Asia Pacific 13.37 13.00 13.38 13.00 13.61 12.94 13.44 12.78 Bonds 0.00 0.00 0.00 0.00 0.38 0.50 0.95 1.70 Cash

• 0.16

0.00

• 0.15

0.00

• 0.14

0.00

• 0.15

0.00

For details of bmk, please refer to appendix Percentages may not add up to 100% due to rounding. Source: Fidelity International

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Asset allocation – FRMT (as at 31 Jul 2016)

Fidelity SaveEasy 2030 Fund Fidelity SaveEasy 2025 Fund Fidelity SaveEasy 2020 Fund Fund (%) Bmk (%) Fund (%) Bmk (%) Fund (%) Bmk (%) Equities 97.63 96.50 93.43 91.80 81.54 79.40 Hong Kong 33.28 32.80 31.83 31.22 27.52 27.00 Americas 19.89 19.30 19.18 18.36 16.91 15.88 Europe 18.28 19.30 17.33 18.36 15.10 15.88 Japan 12.97 12.55 12.29 11.93 10.67 10.32 Asia Pacific 13.21 12.55 12.80 11.93 11.34 10.32 Bonds 2.52 3.50 6.71 8.20 18.58 20.60 Cash

• 0.15

0.00

• 0.14

0.00

• 0.12

0.00

For details of bmk, please refer to appendix Percentages may not add up to 100% due to rounding. Source: Fidelity International

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Important information

This material is for pension employers internal use only and not for external distribution. All external distribution requires prior written approval from Fidelity. This document has been prepared by Fidelity for client reporting purposes only and may not be reproduced or circulated without consent from Fidelity. FIL Limited and its subsidiaries (including FIL Investment Management (Hong Kong) Limited, 富達基金(香港)有限公司) are commonly referred to as Fidelity or Fidelity International. This document is not a promotional material. It is not an invitation to subscribe for shares in a fund nor construed as an offer to buy or sell any securities. Investment involves risks. This material contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an

• ffer to buy or sell any financial instruments. The information contained in this material is only accurate on the date such information is published on this
• material. Opinions or forecasts contained herein are subject to change without prior notice.

This material is issued by FIL Investment Management (Hong Kong) Limited and it has not been reviewed by the Securities and Futures Commission. Investment involves risks. Past performance is not indicative of future performance. Please refer to the Principal Brochure of Fidelity Retirement Master Trust for further information including the risk factors. Fees and charges of MPF conservative funds can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit deduction. The MPF Conservative Fund under the Fidelity Retirement Master Trust uses method (i) and, therefore, its unit prices / NAV / fund performance have incorporated the impact of fees and charges. The purchase of a Unit in the MPF Conservative Fund is not the same as placing funds on deposit with a bank or deposit- taking company. Fidelity SaveEasy Funds are not savings deposits and involve investment risks. This product may not be suitable for everyone. Investor should also consider factors other than age and review their own investment objectives. Funds with exposure to RMB denominated debt securities issued or distributed outside mainland China, will subject to RMB currency risk, RMB exchange risk and risk of limited pool of investments. Risk/Return Rating is defined using a 5-point risk/return scale as 1 = Lowest risk/return, 2 = Low risk/return, 3 = Medium risk/return, 4 = High risk/return, 5 = Highest risk/return. The risk/return profile for each Constituent Fund is created by FIL Investment Management (Hong Kong) Limited (“Fidelity”) after consideration of the “Risk Factors” described in the Principal Brochure of Fidelity Retirement Master Trust, prevailing market, political, structural, economic and

• ther conditions, and the anticipated asset allocation of each Constituent Fund. The risk/return ratings are provided by Fidelity to investor for reference only

and may be subject to change according to regular review (at least once a year) by Fidelity depending on the market conditions. Investor should always consider their individual risk and return profile. For the current risk/return rating of each Constituent Fund, please refer to the “Fund prices & performance” section on Fidelity Website. Reference in this material to specific securities is included for illustration only and should not be construed as a recommendation to buy or sell the same. Performance of the security is not a representation of the Fund’s performance. The Fund’s past holdings are not indicative of existing and future holdings.