Alternative investment
strategies

Diversification does not ensure a profit or guarantee against a loss.

The Russell 1000 Index is a market capitalization-weighted index designed to measure the performance of the large cap segment of the U.S. equity market.

ICE BofA U.S. High Yield Index is a market capitalization-weighted index of U.S. dollar-denominated, below investment-grade corporate debt publicly issued in the U.S. market.

NFI ODCE Index (NCREIF), short for NCREIF Fund Index Open End Diversified Core Equity, is an index of investment returns reporting on both a historical and current basis the results of 38 open end commingled private real estate funds pursuing a core investment strategy, some of which have performance histories dating back to the 1970s.

HFRI Macro Total Index: Investment managers who trade a broad range of strategies in which the investment process is predicated on movements in underlying economic variables and the impact these have on equity, fixed income, hard currency, and commodity markets. Managers employ a variety of techniques, both discretionary and systematic analysis, combinations of topdown and bottom-up theses, quantitative and fundamental approaches, and long and short-term holding periods. Although some strategies employ relative value techniques, macro strategies are distinct from relative value strategies in that the primary investment thesis is predicated on predicted or future movements in the underlying instruments, rather than realization of a valuation discrepancy between securities. In a similar way, while both macro and equity hedge managers may hold equity securities, the overriding investment thesis is predicated on the impact movements in underlying macroeconomic variables may have on security prices, as opposed to equity hedge, in which the fundamental characteristics of the company are the most significant and integral to investment thesis. In order to be considered for inclusion in the HFRI Monthly Indices, a hedge fund manager must submit a complete set of information to the HFR Database. Additionally, all HFRI constituents are required to report in U.S. dollars monthly, net of all fees, performance, and assets under management. Constituent funds must have either $50 million assets under management or at least $10 million USD assets under management on the last reported month prior to the index rebalance and have been actively trading for at least 12 months.

HFRI EH Equity Market Neutral Index: Equity market-neutral strategies employ sophisticated quantitative techniques of analyzing price data to ascertain information about future price movement and relationships between select securities for purchase and sale. These can include both factor-based and statistical arbitrage/trading strategies. Factor-based investment strategies include strategies in which the investment thesis is predicated on the systematic analysis of common relationships between securities. In many but not all cases, portfolios are constructed to be neutral to one or multiple variables, such as broader equity markets in dollar or beta terms, and leverage is frequently employed to enhance the return profile of the positions identified. Statistical arbitrage/trading strategies consist of strategies in which the investment thesis is predicated on exploiting pricing anomalies that may occur as a function of expected mean reversion inherent in security prices; high-frequency techniques may be employed and trading strategies may also be employed on the basis of technical analysis or opportunistically to exploit new information the investment manager believes has not been fully, completely, or accurately discounted into current security prices. Equity market-neutral strategies typically maintain characteristic net equity market exposure no greater than 10% long or short.

SG CTA Index is designed to track the largest 20 (by AUM) CTAs and be representative of the managed futures space. Managers must be open to new investment and report returns on a daily basis.

Dow Jones U.S Total Stock Market Index (Total Return) is a float-adjusted market capitalization-weighted index of all equity securities of US headquartered companies with readily available price data.

Bloomberg U.S. Aggregate Bond Index: The Bloomberg U.S. Aggregate Bond Index is a broad-based, market-value-weighted benchmark that measures the performance of the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. Sectors in the index include Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.

ICE BofA US 3M Trsy Bill TR USD (ICE BofA 3 Month U.S. Treasury Bill Total Return US Dollar): an unmanaged index that measures the performance of a single, outstanding U.S. Treasury bill issue that matures closest to, but not beyond, three months from the monthly rebalancing date.

MSCI ACWI (All Country World Index) ex USA Index measures the performance of large- and mid-cap global equities, excluding the United States. It includes both developed and emerging market countries, capturing approximately 85% of the global equity market outside the U.S. and providing a broad view of international stock market performance.  ​

The CTA Index is equally weighted, and rebalanced and reconstituted annually.

Commodity interest trading involves substantial risk of loss.

Digital assets are speculative and highly volatile, and their market movements are very difficult to predict. Investors also face other risks, including significant and negative price swings, flash crashes, and fraud and cybersecurity risks. Digital assets may also be more susceptible to market manipulation than securities. They can become illiquid at any time and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment.

Fidelity Diversifying Solutions LLC (“FDS”) is a U.S. registered investment adviser, and CFTC registered commodity pool operator and registered commodity trading advisor. FDS is an indirect, wholly owned subsidiary of FMR LLC. Products and services may be presented by Fidelity Distributors Company LLC (FDC), a non-exclusive financial intermediary affiliated with FDS and compensated for such services.