July 24, 2019

Latest Investment Trends from

Fidelity Portfolio Managers

Chris Lin

Portfolio Manager

Eddie Yoon

Sector Leader/Portfolio Manager

Background and Investment Philosophy

Portfolio Manager Profile: Christopher Lin

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Current

Responsibilities

Previous

ResponsibilitiesTenure Education

Fidelity OTC Portfolio

2017–Present

Fidelity OTC Commingled Pool

2017–Present

Fidelity and Fidelity Advisor

Stock Selector Mid Cap Funds

Co-manager

2016–2018

Fidelity Select Computers

Portfolio

2013–2018

Fidelity Select and Fidelity

Advisor Semiconductors

Portfolio Co-manager

2009–2013

Research Analyst

2006–2017

Research Associate

2003–2006

Fidelity Investments

Since 2003

Harvard University

BA, 2003

OVER 15 YEARS of asset management experience

Source: Fidelity Investments.

Investment Philosophy

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Most mispricings are a function of the market either over or underestimating the

durability of a business.

Finding companies with a competitive advantage, barriers to entry, pricing power,

and strong management should deliver superior earnings over the long term.

Still an analyst at heart; believes bottom-up, fundamental analysis is the best way

to exploit inappropriate valuations in the market.

◼

◼

◼

Current

Responsibilities

Previous

ResponsibilitiesTenure Education

Fidelity Select Health Care

Portfolio

2008–Present

Fidelity Advisor Health Care Fund

2008–Present

Fidelity VIP Health Care

2008–Present

Fidelity Select Medical

Technology and Devices Portfolio

2007–Present

Prior to Fidelity

Analyst/Portfolio Co-Manager, JP

Morgan

2005–2006

Analyst, JP Morgan

2002–2005

Fidelity Investments

Since 2006

Industry Experience

Since 2002

Brown University

BA, 2002

OVER 15 YEARS of asset management experience

Portfolio Manager Profile: Eddie Yoon

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Source: Fidelity Investments.

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Investment Philosophy

Stockpicking: High-quality, bottom-up fundamental research can uncover new

innovations and business trends before other market participants.

It’s All about Free Cash Flow (FCF)/share: Stock prices in the long run are a

reflection of the underlying free cash flow that is available to shareholders.

Capital Allocation Matters: A management team’s capital deployment can add or

destroy meaningful value over time.

◼

◼

◼

Source: Fidelity Investments.

Outlook & Themes

Nasdaq Composite as a BenchmarkWhile the Nasdaq has been closely correlated with the growth indices historically,

it has outperformed them over most time periods

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ROLLING 3-YEAR CUMULATIVE

RETURNS AS OF 6/30/19

TOTAL CUMULATIVE RETURNS

AS OF 6/30/19

-100%

0%

100%

200%

300%

400%

500%

Jan-97 Jan-00 Jan-03 Jan-06 Jan-09 Jan-12 Jan-15 Jan-18

Cu

mu

lati

ve

Re

turn

S&P 500 R1000 Growth R3000 Growth NASDAQ

Source: Fidelity Investments, Factset.

Past performance is no guarantee of future results Indexes are unmanaged. It is not possible to invest directly in an index. Not intended to represent the

performance of any Fidelity fund.

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

5YR 10YR 15YR 20YR

S&P 500 R1000 Growth R 3000 Growth NASDAQ

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For illustrative purposes only.

The companies mentioned here are not necessarily holdings invested in by FMR LLC. References to specific companies should not be construed as a recommendation or

investment advice. The statements and opinions are subject to change at any time, based on market and other conditions.

2020s

Machine Learning

2010s

Mobile

2000s

Web

1990s

Desktop

1970s - 1980s

Mainframe

Evolution of Technology Market Leadership

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Favorable Demographics

0%

25%

1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Over

85

Over

65

HEALTH CARE SPENDING

PER CAPITA, BY AGE

Sources: Top and Bottom Left: JP Morgan, Center for Medicare and Medicaid Services, Census Bureau, as of 11/30/17.

Right chart: World Bank, as of 12/31/15.

PORTION OF U.S. POPULATION OF

A PARTICULAR AGE GROUP

$3,552 $4,458

$9,513

$16,872

$32,411

0–18 19–44 45–64 65–84 85+

Census Forecast

Aging demographics is a global phenomenon.

In the U.S., approximately 10,000 people turn 65 every day

Globalization of Health CareAdoption by emerging markets

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$4,562

$313 $95 $18 $42

$9,536

$780 $524$64

$425

United States Brazil Russia India China

2000 2015

PER CAPITA TOTAL EXPENDITURE ON HEALTH (U.S.$)

What about Association

of Southeast Asian

Nations’ population of

630M+?

Source: World Bank, as of 12/31/16. Note: Data at average U.S.$ exchange rate for the year.

283%

Combined

Population

~3,100,000,000

Fast-growing emerging markets are spending a lower percent of their GDP on health care,

and per capita spending is rising quickly.

+109%

U.S

Expenditures ?

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Life Cycle of a Biotechnology TherapyCapital users in first 10 years, profitable in subsequent years

Source: Fidelity Investments. For illustration purposes.

EARNINGS TRAJECTORY FROM R&D THROUGH LAUNCH

Probability of

success

is very low

44%

9%

Phase 1

Phase 3–10 0 +10 +20Tim

e (

Ye

ars

)

Earnings ($)

Regulatory–1 to 0

Launch0 to 3

Earnings Power3+

Clinical–10 to –1

The Future: Value-Based Medical Delivery and Payment

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LOW HIGH

Simple. Personalized.

Focused on holistic health.

Right care at right time. Convenient access.

Face-to-face. Aligned incentives.

Cloud-

Telemedicine

HIGH LOW

Hospitals

Ambulatory Service Centers

Free-Standing ER

Retail Health/Urgent Centers

Doctors’ Offices

INTEGRATED CARE DELIVERY

Chronic Care

Programs

Specialists

PCPHouse

Hospitals

Urgent

Care

Pharmacy/Medication

Management

Labs

DENSITY

COST

Source: Blue Cross Blue Shield Texas, Humana.

Patient

Important Information: Market Indices

The NASDAQ Composite® Index measures all Nasdaq® domestic and international based common type stocks listed on The Nasdaq Stock Market®

(Nasdaq). This index is ordinarily

calculated without regard to cash dividends of the index securities. Oversight responsibility for the Index, including methodology, is handled by NASDAQ

OMX.

The Russell 1000 Growth Index is a market capitalization–weighted index designed to measure the performance of the large-cap

growth segment of the U.S. equity market.

The Russell 3000 Growth Index is a market-capitalization-weighted index designed to measure the performance of the broad growth segment of the

U.S. equity market. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth rates.

The S&P 500® is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to

represent U.S. equity performance. S&P 500 is a registered service mark of The McGraw-Hill Companies, Inc., and has been licensed for use by

Fidelity Distributors Corporation and its affiliates.

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Important Information

The information presented reflects the opinions of the presenter, as of 07/24/2019 and do not necessarily represent the views of Fidelity Investments.

These opinions are subject to change at any time based on market or other conditions. These materials are provided for informational purposes only

and should not be used or construed as a recommendation of any security, sector, or investment strategy. Please consult your tax or financial advisor

for additional information concerning your specific situation.

To the extent any investment information in this material constitutes a recommendation, it is not meant to be impartial investment advice or advice in a

fiduciary capacity, is not intended to be used as a primary basis for your investment decisions, is based on facts and circumstances at the point in time it

is made, and will not be updated if facts or circumstances change unless you contact Fidelity and ask for a new recommendation. Fidelity and its

representatives have a financial interest in any investment alternatives or transactions described in this material. Fidelity receives compensation from

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indirectly, by Fidelity may vary based on such funds, products and services, which can create a conflict of interest for Fidelity and its representatives.

It is not possible to invest directly in an index. All market indices are unmanaged.

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or

economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The fund may have

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guarantee of future results.

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carefully.

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892597.1.0

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