Custom separately managed accounts: Efficient solutions to client challenges

An investment may be risky and may not be suitable for a client’s goals, objectives, and risk tolerance. An investment’s value may be volatile, and any investment involves the risk that you may lose money. Performance for individual accounts will differ from performance for composites due to factors, including but not limited to, account size, trading restrictions, account objectives and restrictions, contributions and withdrawals, cash held in the account and applicable fees. FIWA does not claim compliance with Global Investment Performance Standards (GIPS).

The value of a strategy’s investments will vary in response to many factors, including adverse issuer, political, regulatory, market, or economic developments. The value of an individual security or a particular type of security can be more volatile than and perform differently from the market as a whole. Nearly all accounts are subject to volatility in non-U.S. markets, either through direct exposure or indirect effects on U.S. markets from events abroad, including fluctuations in foreign currency exchange rates and, in the case of less developed markets, currency illiquidity. Events such as natural disasters, pandemics, epidemics, and social unrest in one country, region, or financial market may adversely impact issuers in a different country, region, or financial market. Performance could be negatively impacted if the value of a portfolio holding were harmed by such political or economic conditions or events. Moreover, such negative political and economic conditions and events could disrupt the processes necessary for investment operations.

Accounts that are tax-managed (“Taxable Accounts” or “Accounts”) invest generally in equity securities and are managed using investing techniques that seek to enhance after-tax returns, including, without limitation, harvesting tax losses and the potential deferral of capital gains. FIWA seeks to provide, consistent with the client-mandated investment guidelines, improved returns over the designated benchmark on an after-tax basis, including by considering the potential effects of capital gains when making investment decisions. The Accounts are actively managed for federal income taxes but are not managed in consideration of state or local taxes; foreign taxes; federal tax rules applicable to entities; or estate, gift, or generation-skipping transfer taxes. FIWA cannot guarantee the effectiveness of these investing techniques. The gain/loss for any account is applied in the month incurred and there is no carry forward. We assume that taxes are paid from outside the account. Taxes are recognized in the month in which they are incurred. This may inflate the value of some short-term losses if they are offset by long term gains in subsequent months. After-tax returns do not take into account the tax consequences associated with income accruals or U.S. federal income tax limitations on capital losses. After-tax earnings shown do not reflect any miscellaneous income that could be reported on a Form 1099.

SMA refers to Separately Managed Account.

Fidelity Brokerage Services LLC (“FBS”), an affiliate of FIWA, is a registered broker-dealer. FBS distributes FIWA’s Accounts as a paid solicitor.

Fidelity Institutional Wealth Adviser LLC (“FIWA”) is a registered investment adviser and an indirect, wholly owned subsidiary of FMR LLC. FIWA provides customized separately managed account portfolios that consider tax effects for taxable clients. FIWA has retained the services of its affiliate, Fidelity Management & Research Company LLC (“FMR”), to manage these accounts, subject to FIWA’s supervision and oversight.

Fidelity Investments provides investment products through Fidelity Distributors Company LLC; clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC; and institutional advisory services through Fidelity Institutional Wealth Adviser LLC.