Fidelity^® Select Industrials Portfolio: Investment Approach

• Fidelity^® Select Industrials Fund is a sector-based equity-focused strategy that seeks to outperform its benchmark through active management.
• We believe that uncertainty provides investment opportunity. Stock prices can become disengaged from a company's intrinsic (fair) value at cyclical extremes because of investor overreaction.
• Cyclical stocks exhibit repeatable patterns. We believe this can present opportunities for a disciplined investor whose time horizon spans the next cycle.
• We strive to capitalize on these opportunities through intensive, academic-style research on cyclical drivers and company-specific fundamentals, along with disciplined portfolio construction. The fund's success is predicated on finding the right mix of undervalued cyclicals and more-consistent earnings growers throughout the cycle.
• Sector strategies could be used by investors as alternatives to individual stocks for either tactical- or strategic-allocation purposes.