Strategic Advisers^® Fidelity Alternatives Fund: Investment Approach

• Strategic Advisers^® Fidelity Alternatives Fund (the Fund) is a multi-manager investment strategy that seeks positive total returns over a complete market cycle (generally five to eight years) through multiple "alternative" or non-traditional strategies.
• The Fund provides diversified exposure to multiple investment vehicles – including sub-advised strategies, mutual funds and, at times, exchange-traded funds (ETFs) – selected from what we believe are the best ideas of Strategic Advisers' research department. Evaluating the tradeoff between cost, liquidity and investment flexibility helps to determine what we believe is the optimal investment mix.
• Our investment process emphasizes prudent manager selection based on the view that different investment approaches may outperform at different times over a full market cycle, and that combining these investment disciplines may result in a more consistent performance profile.
• We believe the ability to utilize the distinctive skills of a variety of managers helps provide investment diversification and also may provide the portfolio manager(s) more flexibility to invest more adeptly throughout the market cycle, and potentially allow for better risk management.