Presentation on theme: "Not FDIC Insured May Lose Value No Bank Guarantee"— Presentation transcript:
1Not FDIC Insured May Lose Value No Bank Guarantee FOR INVESTORSMaintaining perspective in volatile marketsSLIDE OBJECTIVEBegin the presentation.NOTE TO PRESENTERIntroduce the topic and explain that you will be sharing a number of insights to help the audience keep recent market events in perspective and help them take steps to stay on track to meet long-term investment goals.Note: Several slides have animated builds that include several clicks. You may want to familiarize yourself with the slides before giving the presentation.TRANSITIONIntroduce the concept of emotions and their potential effect on investment decisions.Not FDIC Insured May Lose Value No Bank Guarantee1
2Importance of avoiding the emotional roller coaster GREEDExhilarationApprehensionEnthusiasmEnthusiasmPanicConfidenceConfidenceSLIDE OBJECTIVEEngage the audience in the presentation by taking their "emotional temperature" in light of recent market event.NOTE TO PRESENTERDescribe the chart – walk through the cycles of emotion that happen as markets move. Encourage audience participation by asking a few questions:Where are you today on the roller coaster in light of recent market events?Have you felt this way before?Do you tend to feel differently depending on what the market is doing?Say that while it is normal to feel the emotions they are having, the point of today’s presentation is to help them get back to feeling confidence by putting recent volatility into a long-term perspective.TRANSITIONMedia and global events can trigger emotions.CheerDejectionHopeFEAR
3Global events can affect our emotions Middle East and North Africa remain volatileDebt crisis lingers in the U.S. and EuropeAfghan war now longest in U.S. historyGlobal terrorism on the riseSLIDE OBJECTIVEShow current global geopolitical events can trigger the emotions shown in the emotional rollercoaster.NOTE TO PRESENTERSympathize with the audience and admit that events like these can create apprehension. It is understandable why they are fearful. But mention that it is important not to let events like these affect their investment strategy.Ask the audience if other recent global shocks have made them anxious.
4Economic events – and headlines – can seem even worse U.S. economy sees worst downturn since Great DepressionS&P downgrades U.S. debt for the first time in historyU.S. deficit seems out of controlSLIDE OBJECTIVEShow how economic events and headlines can be even scarier than political ones.NOTE TO PRESENTERAgain, mention that while headlines like these can seem alarming, they are meant to persuade people to buy a newspaper, not take action on an investment portfolio.4
5“The only thing we have to fear, is fear itself.” – Franklin Delano RooseveltSLIDE OBJECTIVE:Transition the audience from a discussion about emotions to a discussion about the realities and perspectives on the market.NOTE TO THE PRESENTERMention that when Roosevelt said these words, he was speaking about the nation's ability to get through the Great Depression. But those words are as true today as they ever were, and when it comes to investing, point out that letting fear guide investment decisions can magnify or exacerbate ideas of what can go wrong. In short, fear causes you to ignore positive possibilities.TRANSITIONMention that you are going to give them some perspective to help them overcome their fears.Source: Morey Engle, The Harry M. Rhoads Photograph Collection, Denver Public Library.
6In the short term, markets can go in 3 directions Remain flatMove upMove downSLIDE OBJECTIVEExplain that during any given short-term period in market history, the market moves in one of three directions: flat, upward, or downward.NOTE TO THE PRESENTERThis slide will build – the clicks of your mouse allow you to show flat, up, and down market scenarios.Ask the audience to think about their own emotions in such situations. Think about that emotional roller coaster: When markets move up how do they typically feel – pretty good, pretty smart, etc? When the market goes down, they probably don't feel so great, and so forth.TRANSITIONRemind investors that a myopic view of the market can obscure and distort what happens longer term.
7Long term, the market trend has been up 12/8012/8212/8412/8612/8812/9012/9212/9412/9612/9812/0012/0212/0412/0612/0812/107/11$0$50,000$100,000$150,000$200,000$250,000$300,000SLIDE OBJECTIVEDemonstrate that in spite of short-term market activity, the market moves up over the long term.NOTE TO PRESENTERPoint out that the short-term downward trend in the previous example matters very little when they view the overall chart.Show the audience that by taking a long-term view of the market, short-term movements can become far less significant – overshadowed by the market’s historical upward trend.TRANSITIONAlong the way, sudden shocks happen that can jar the markets.Historical growth of the S&P 500® Index, January 1980–July Initial investment of $10,000. Returns include the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not represent actual or future performance of any Fidelity fund. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. See end of presentation for index definitions.
8Sudden events can disrupt the long-term view $300,000Global financial crisisDot-com bubble burstsIraqWar$250,000World Trade Center bombing9/11$200,000Iraq invades Kuwait$150,000Black Monday$100,000Start of S&L crisisSLIDE OBJECTIVEShow that the market has a history of upward momentum in spite of global and economic crises throughout history.NOTE TO THE PRESENTERReview the events and mention their short-term effect on market movements. Introduce the fact that making investing decisions based on short-term fears can cause them to miss out on long-term gains. There have been frightening events that have occurred throughout history, and unfortunately, today is no different.Point out that after the crisis of 2008 and recent events like those from headlines they just saw, they may be feeling anxious and fearful yet again today.TRANSITIONHowever, there are many facts that suggest that our current situation is not the same as 2008.$50,000$012/8012/8212/8412/8612/8812/9012/9212/9412/9612/9812/0012/0212/0412/0612/0812/107/11Historical growth of the S&P 500 Index, January 1980–July Initial investment of $10,000. Returns include the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not represent actual or future performance of any Fidelity fund. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. See end of presentation for index definitions.
9History is not repeating itself The situation has markedly improved since 2008:Corporate balance sheets are strongerCorporate profits are robustBanks are better capitalizedInterest rates are starting low and staying lowLeading economic indicators are improvingSLIDE OBJECTIVEDemonstrate that while many feel that we are headed for a repeat of 2008, there are some tangible facts that suggest otherwise.NOTE TO THE PRESENTERGo over bullet points showing how many aspects of the economy are stronger today than in 2008.Explain or elaborate on bullets as needed for the audience. For example, point out that leading indicators such as unemployment applications or building permits, factory orders, etc., typically show where the economy is headed, and many of those indicators have been advancing in recent quarters.Point out that for whatever reason, markets sell off periodically and suddenly, and timing the market is next to impossible. In fact, sudden movements are part of investing and should be expected from time to time.TRANSITIONHelp the audience take a breather by asking a couple of interactive questions to lead them into the next slide:How often do you think markets make dramatic movements of, say, 10% or more?Which do you think last longer: down markets or up markets?9
10How often does the market move by at least 10%? Average frequency: once a year0%50%100%150%200%250%-50%-20%34%Average lossAverage gainAverage period of loss: 102 daysAverage period of gain: 223 daysSLIDE OBJECTIVEShow that market ups and downs are a routine part of history, that their severity and length vary, and that periods of gains outstrip losses in length and strength.NOTE TO THE PRESENTEREngage the audience by asking if they consider a 10% drop in the market to be a lot. Ask them how often that happens and how long they think periods of 10% declines last. Then tell them it's time to look at some facts.Say that market movements of 10% or more happen on average about once a year. State the average length of each occurrence, and show the average loss and gain.Now ask how often they think the market moves by 20%? Ask if that feels like a lot to them? Click through the 20% data.Finally, repeat the conversation for the 30% data.Sum up the information by pointing out that, on average:Periods of gains of 10% or more last more than twice as long as periods of lossesof 10% or morePeriods of gains of 20% or more last nearly three times as long as periods oflosses of 20% or morePeriods of gains of 30% or more last nearly four times as long as periods oflosses of 30% or moreFor all percentage movements, periods of gains have produced significantlystronger returns relative to losses during periods of declines.Source: Ned Davis Research, 2/20/28–8/22/11. Bull and bear markets defined as -10/+10% reversals in the S&P 500 Index. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
11How often does the market move by at least 20%? Average period of gain: 885 daysAverage frequency: once every 3 ½ yearsAverage period of loss: 299 days250%200%150%101%100%50%0%-36%-50%Average lossAverage gainSource: Ned Davis Research, 2/20/28–8/22/11. Bull and bear markets defined as -20/+20% reversals in the S&P 500 Index. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
12How often does the market move by at least 30%? 247%Average period of gain: 1,887 daysAverage frequency: once every 6 yearsAverage period of loss: 497 days250%200%150%100%50%0%-50%-48%Average lossAverage gainSource: Ned Davis Research, 2/20/28–8/22/11. Bull and bear markets defined as -30/+30% reversals in the S&P 500 Index. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
13Periods of gains are longer and stronger than periods of declineSLIDE OBJECTIVESummary statement of previous slide showing 10, 20, and 30% movements, which show that on average, periods of gains have lasted longer and produced much stronger gains than periods of loss.NOTE TO PRESENTERIn sum, investors have benefited more from periods of gains than they have been hurt by periods of losses.TRANSITIONWe have seen periods of robust gains since 2008 as well.
14Most recent rebound has been strong as well Cumulative returns from market bottom of recent recession83.6%Dow Jones Industrial Average108.6%NASDAQ91.2%S&P 500 Index90.6%International stocksSLIDE OBJECTIVEShow how the rebound from the lows of the 2008 downturn has been very strong.NOTE TO THE PRESENTERGo over index returns since the recent market trough.Mention that international stocks, including emerging market stocks, have rebounded robustly as well. It can be helpful to have some exposure to stocks outside the U.S.The situation we face today may end up being more like 2010 than 2008:After hitting a low on 8/31/10, the market rebounded 16.4% through the end of the year (12/31/10). Investors who got out of the market in August missed those gains. Moreover, the one-year return from August 1, 2010 to August 1, 2011 was also a robust 16.8%.*We do not know what the rest of 2011 will bring, but have seen some positive signals from the economy and the markets suggesting that we could experience action more like that of 2010 than 2008.TRANSITIONBut no matter what may happen, timing the market is never a good strategy.* Source: FactSet.146.9%Emerging marketsSource: FMRCo, 3/9/09-12/31/10. U.S. stock market returns are represented by total return of Dow Jones Industrial Average, NASDAQ and S&P 500 Index. International stocks and emerging markets are represented by MSCI® EAFE® and MSCI Emerging Markets, respectively. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
15Trying to time the market can be costly Average annual returns for stocks for 30-year period ending 6/30/118.0%8%6.4%5.4%6%3.7%4%2%SLIDE OF OBJECTIVEDemonstrate what can happen when an investor loses his/her long-term vision and misses the 5, 10, or 20 best days in the market by trying to time the market and move to cash. Note: the returns on this slide indicate price returns only and do not include reinvestment of dividends.NOTE TO THE PRESENTERYou can also point out that investors who didn’t flee stocks during the recession of 2008 earned more, as evidenced by average account balance growth for portfolios that changed to:0% stock during the downturn and stayed at 0% stocks = average annual account balance growth of 2.1%*0% stock during the downturn and subsequently resumed stock investing = average account balance growth of 24.9%*Maintained an stock allocation = average account balance growth of 50.3%*TRANSITIONFor all these reasons, it may make more sense to stay invested in stocks.* Source: Fidelity Workplace defined contribution data based on nearly 20,500 recordkept plans and more than 11.6 million recordkept participants as of June 30, Average account balance growth for continuous participants from 9/30/08 through 6/30/11.0%Missing 0 daysBy missing 5 best daysBy missing 10 best daysBy missing 20 best daysSource: FactSet, 6/30/81–6/30/11. Stock returns represented by total return of the S&P 500 Index. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
16Staying the course has been a solid strategy Stocks have rebounded within a year of decline60%40%20%0%-20%SLIDE OBJECTIVEShow that the market has regained its footing many times within a year of a period of decline.NOTE TO PRESENTERTell the audience that time and again, the market has rebounded solidly within 6 or 12 months of a steep market bottom, often erasing and surpassing those short-term losses.Explain the slide as you click through: the grey bars are losses, the blue bars are gains after 6 months, and the green bars are gains after 12 months.TRANSITION:The experience of investors who kept investing during the recession of 2008 are similar – with a strong rebound after market lows.-40%DeclineAfter 6 monthsAfter 12 months-60%1/73–9/741/77–2/7812/80–7/829/87–11/876/90–10/907/98–8/984/00–9/0211/07–3/09Source: Morningstar EnCorr.Stocks are represented by the S&P 500 Index. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
17Investors who kept investing have seen more gains since 2008 Average account balance growth for continuous investors80%63.8%60%51.2%40%25.8%20%SLIDE OBJECTIVEIllustrate the benefits of staying in the market by showing the example of 401(k) investors, many of whom invest steadily by virtue of automatic contributions from their paycheck.NOTE TO THE PRESENTERPoint out that since the recession of 2008 – which rivaled the severity of downturns in the 1970s and 1930s – employees who continued to invest regularly in their 401(k) plans benefitted from strong account balance growth.Employees who stopped investing and made no further contributions saw their accounts grow by 25.8%.Employees who stopped investing but subsequently restarted saw 51.2% account balance increases.But employees who never stopped investing saw 63.8% average account balance growth.TRANSITIONMention that even if you can‘t contribute a lot, it is important to contribute something on a regular basis.0%Stopped investing and did not restartStopped investing and subsequently restartedDid not stop investingFidelity Workplace defined contribution data based on nearly 20,500 recordkept plans and more than 11.6 million recordkept participants as of June 30, Average account balance growth for continuous participants from 9/30/08 through 6/30/11. The analyses exclude tax-exempt accounts and nonqualified plans, but include participant and plan data from the Fidelity Advisor 401(k) Program. · Column 1: 25.8% represents 49,900 participants. Column 2: 51.2% represents 76,900 participants. Column 3: 63.8% represents 3.1 million participants.Past performance is no guarantee of future results.
18Systematic investing can contribute to your growth potential Hypothetical value of investments over time$588,032$352,819$117,6065 years10 years15 years25 years20 years30 years$0$100,000$200,000$300,000$400,000$500,000$600,000$500/month$300/month$100/monthSLIDE OBJECTIVEDemonstrate the benefits of investing a fixed amount on a regular schedule over time and taking advantage of dollar cost averaging.NOTE TO THE PRESENTERPoint out that one potential advantage of contributing even small amounts on a regular basis is dollar cost averaging, which:Encourages discipline through a systematic approachKeeps people investing long termHelps smooth out portfolio performance by enabling investors to purchase more assets when prices are down and fewer assets when prices are upCan help ease anxiety about short-term market fluctuationsEnables investors to benefit from the power of compoundingDollar cost averaging does not ensure a profit or protect against loss in a declining market. For the strategy to be effective, you must continue to purchase shares in both up and down markets. · Hypothetical examples assume a beginning plan account balance of $0; monthly pre-tax contributions of $500, $300, and $100 for 30 years; and an effective annual rate of return of 7%. Ending values do not reflect taxes, fees, or inflation. If they did, amounts would be lower. · Past performance is no guarantee of future results. Performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
19“The key to making money in the stock market is not to get scared out of it." – Peter Lynch
20Market returns have been much more powerful than cash Average annual returns: 1981–201012.0%10.7%9.7%10.0%8.5%8.0%5.1%6.0%3.2%4.0%2.0%SLIDE OBJECTIVEDemonstrate the benefits of remaining invested in stocks and bonds as opposed to staying in cash.NOTE TO PRESENTERShow the difference in returns that investors exposed to bonds or stocks have enjoyed over time. These returns include dividends reinvested.Mention that it may be even harder for investors today to make up losses by staying in cash: 3-month Treasury yields today are a scant 0.02%. They were a much stronger 7.24% in Mention again that with today’s low yields from cash equivalent investments, a cash-only portfolio puts investors at risk of barely keeping up with inflation, another important element of a long-term portfolio.TRANSITIONThis is one reason why diversifying their portfolio is so important.0.0%InflationCash and equivalentsBondsInternational stocksU.S. stocksSource: Morningstar EnCorr This chart represents the average annual return percentage for the investment categories shown for the 30-year period of 1981–2010. Returns include the reinvestment of dividends and other earnings. This chart is for illustrative purposes only and does not represent actual or implied performance of any investment option. Inflation, cash and equivalents, bonds, international stocks, and U.S. stocks are represented by the Consumer Price Index (CPI), Ibbotson U.S. 30-Day T-Bill Index, the Ibbotson U.S. Intermediate Government Bond Index, MSCI EAFE, and the S&P 500 Index, respectively. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. See end of presentation for index definitions.
21Diversification is an effective investment approach SLIDE OBJECTIVEDemonstrate the benefits of diversification.NOTE TO THE PRESENTERRemind the audience that one of the most important considerations is asset allocation, a method of diversifying their portfolio among stocks, bonds, and cash. Show them the chart and ask them to look at the range of colors on the chart and see if they can see a pattern. Note that there is no specific long-term pattern. Asset class winners and losers tend to rotate spots every year or two.Click through the animation on the slide, pointing out the variation in each year's top, middle, and lowest performing asset classes.This highlights the fact that being diversified provides the opportunity to experience positive performance from different asset classes year after year.Their asset allocation plan should be based on their tolerance for risk, their financial situation and goals, and their investment time horizon.Point out that, given their changing financial situations, it may be appropriate for them to tactically rebalance their portfolio with their advisor. They may want to increase their allocations in one area or reduce them in another. However remind them that shifting entirely to cash can be detrimental.TRANSITIONMove to wrap up.Source: FMRCo, 12/31/01–12/31/10. Diversification does not ensure a profit or guarantee against a loss. Bonds, high yield bonds, short-term investments, small-cap stocks, large-cap stocks, and international stocks are represented by the Barclays Capital U.S. Aggregate Bond Index, BofA Merrill Lynch U.S. High Yield Master II Index, Ibbotson U.S. 30-Day T-Bill Index, Russell 2000® Index, S&P 500 Index, and MSCI EAFE Index, respectively. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund. See end of presentation for index definitions.
22What have we learned?Since 2008 the details have changed, but the conclusions remain the same.Some tactical adjustments to your portfolio may be in order.Moving entirely to cash has been costly, while staying in the market has paid off.NOTE TO THE PRESENTERSummarize some key points, including the fact that we are in a different situation from previous periods of market volatility, but the basic elements of sound investing remain the same.They may indeed want to discuss some changes to their portfolio with their advisor, but history shows that exiting the market in favor of a 100% allocation to cash has been detrimental. Staying the course has been a better strategy, historically.When discussing the points on the slide you can also point out that:We’re all human, but letting emotions guide investment decisions is not a good approach.Volatility and market declines are normal – investors should expect them.Historically the stock market recovers, and the long-term direction of the market has been up.There is no permanent safe financial haven and no way to predict which asset classes will outperform others.Market timing – i.e., chasing hot performance and/or trying to avoid bad performance – rarely works for the average investor.Getting an advisor’s help to set a general long-term strategy and to stick with it, is always a good idea.22
23Meet with your advisor and go over your plan Review whether your financial picture has changedDiscuss your risk tolerance and investment horizonDetermine whether your portfolio is appropriately diversifiedInvest regularlySet up ongoing meetings with your advisorSLIDE OBJECTIVEEncourage audience members to take the next step and set up a meeting with their advisor and remind everyone that they are empowered by having a plan.NOTE TO THE PRESENTEREncourage audience members to meet with their advisor and ask questions:Is my portfolio properly diversified? Do I need to rebalance? Am I on track to meet my long-term goals? Should I make adjustments based on the low interest rate environment?Ask audience members to think of more questions they could ask their advisors.Point out that you’re not here to tell the audience specifically what to do with their individual portfolios but instead to simply provide some:Objective insightProfessional knowledgeInsight on the fact that there are actions they can takeGuidance for gaining perspective in these difficult times
24Maintain your confidence GREEDExhilarationApprehensionEnthusiasmEnthusiasmPanicConfidenceConfidenceSLIDE OBJECTIVEEnd the presentation by returning to the beginning concept of emotions and say that one of your goals was to instill a measure of confidence in the audience.NOTE TO THE PRESENTERRemind the audience that they can take control of their emotions – and their financial futures – with a long-term, fact-based perspective.Many investors let their emotional cycle follow the market cycle, and that can be counterproductive, as you’ve just shown them. The better strategy is to maintain an equilibrium of confidence by having a plan, working with their financial advisor, and remembering that they – not the market – are in control of their financial futures.If an investor had taken off sailing around the world about a year ago, in the summer of 2010, he would probably take no notice of the past year's interim volatility when he sails back into port today. Had our investor disembarked on August 2, 2011 amid the Congressional debate over the raising of the debt ceiling, he would have seen that the market return over that one-year period was 11.39%.*Thus, from his point of view, all he would notice is that the market had behaved in line with its historical average, of about 9.8%.State that you hope the presentation has helped alleviate some fear and apprehension and has established more confidence by providing some general direction for successfully coping with the uncertainty in today’s market. Remind them that we can't control the market, but we can control how we invest in the market and what we need to do to manage our reactions to it.Ask if anyone has any questions and thank the audience for coming.* Source: FactSet for the one-year period ended 8/2/11.CheerDejectionHopeFEAR
25Important information Index definitionsStandard & Poor's 500 Index (S&P 500) is an unmanaged market capitalization-weighted index of 500 widely held U.S. stocks and includes reinvestment of dividends.Dow Jones Industrial Average (DJIA) is an unmanaged average of common stocks comprised of major industrial companies and assumes reinvestment of dividends.NASDAQ Composite Index is an unmanaged market capitalization-weighted index that is designed to represent the performance of the National Market System which includes stocks traded only over-the-counter and not on an exchange.MSCI EAFE (Europe, Australasia, Far East) Index is an unmanaged market capitalization-weighted index that is designed to represent the performance of developed stock markets outside the United States and Canada.MSCI Emerging Markets Index is an unmanaged market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of emerging stock markets throughout the world and excludes certain market segments unavailable to U.S. based investors.Consumer Price Index, (CPI) is a widely recognized measure of inflation, calculated by the U.S. government.Ibbotson U.S. 30-Day T-Bill Index is an unmanaged unweighted index which measures the performance of one-month maturity U.S. Treasury Bills. Each month a one-bill portfolio containing the shortest-term bill having not less than one month to maturity is constructed. To measure holding period returns for the one-bill portfolio, the bill is priced as of the last trading day of the previous month-end and as of the last trading day of the current month.Ibbotson U.S. Intermediate Government Bond Index is an unmanaged market value-weighted index of U.S. government fixed-rate debt issues with maturities between one and 10 years.Barclays Capital U.S. Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.Russell 2000 Index is an unmanaged market capitalization-weighted index of the stocks of the 2,000 smallest companies included in the 3,000 largest U.S.-domiciled companies.BofA Merrill Lynch U.S. High Yield Master II Index is an unmanaged index that tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.
26Important information Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund.Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.The securities of smaller, less well-known companies can be more volatile than those of larger companies.Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.In general the bond market is volatile, and fixed-income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed-income securities also carry inflation, credit, and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds.Third-party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliated company.Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact your investment professional or visit advisor.fidelity.com for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.FIDELITY INVESTMENTS INSTITUTIONAL SERVICES COMPANY, INC., 100 SALEM STREET, SMITHFIELD, RI