A Building Futures Report: Q2 2013 Trends

Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges, and expenses. For this and other information, call or write Fidelity for a free prospectus or, if available, a summary prospectus. Read it carefully before you invest.

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Based on recordkept data of corporate defined contribution (DC) plans: 20,700 plans 12.4 million participants

Data as of June 30, 2013 unless otherwise noted1

Fidelity’s recordkept database is one of the industry’s most comprehensive proprietary collections of defined contribution

plan and participant information.

Fidelity Investments: An industry leading retirement provider

1 Data in this presentation exclude tax-exempt plans, nonqualified plans, and the FMR Co. plan. This analysis includes data from the Fidelity Advisor 401(k) Program.

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Account Balance

► Currently, the average account balance is $80,600, an increase of 10.7% from one year prior.► The median participant account balance is $23,300.► Account balances are impacted by both participant actions (contributions, withdrawals, etc.) and market action.► Account balances are also impacted by new participants having lower account balances than departing

participants who may roll out their assets.

Key Insights

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Account Balance (10-Yr Continuous Active Participants)

Continuous Active Participants are actively employed with a balance for each year endpoint during the 10-year period.

► The 10-Year Continuous Active Account Balance follows the same participants over time to show what they experienced during the last ten years.

► These participants had a $211,800 average account balance, up from $51,700 ten years prior (15.1% annual increase).

► This account balance increase was 50% due to participant action (net contributions) and 50% due to market increases.

Key Insights

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Deferral Rates

► The average employee deferral rate has remained steady for three years.► Currently, the average employee deferral rate is 8.0%.► Other than participant actions of increasing/decreasing deferrals (next slide), this figure is impacted by new

participants joining the plan having lower deferral rates than departing participants leaving the plan.

Active Participants Only. Mean elective total deferral rates (point-in-time).

Key Insights

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► Overall, 6.0% of participants made an employee deferral increase in the prior 3-months.► In plans that offer Auto-AIP, 8.4% of participants had employee deferral increases in the prior 3-months.► The long-term trend of more employee deferral increases than decreases was interrupted during Q3’08 - Q1’09,

but has resumed since (17 consecutive quarters).► Annual Increase Program (AIP) is a big driver of this trend, see “Deferral Increases due to AIP” slide.

Changes to Employee Deferral Rates

Continuous Active Participants Only (3-month). Mean elective total deferral rates (point-in-time).

Key Insights

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Employee Deferral Increases due to AIP

Key Insights

► Annual Increase Program (AIP) was responsible for 25.7% of deferral increases made in the prior quarter.► AIP represented about one-in-three (35.9%) of all deferral increases in prior 12-months.► The seasonality is due to the majority of AIP increases occurring in Q1.

Continuous Active Participants Only (3-month).

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Auto-Enrollment (AE) Impact to Participation Rate

► Younger, less well-compensated employees benefit from Auto-Enrollment (AE). ► The overall active participation rate is 67.7%, up from 64.1% five years prior due to impact of AE.► In plans who offer AE, the participation rate is 83.6%, which has also increased as more employees become

eligible for AE within those plans.► Further, those employees who are eligible for Auto-Enrollment in AE Plans have a participation rate of 90.3% (i.e.

only 9.7% opt-out).

Key Insights

Data as of 12/31/2012. Active Eligible Employees Only.

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Asset Allocation

► Changes in asset allocation can be driven by market fluctuations, as well as by exchange, contribution, and withdrawal activity.

► Equity = Domestic Equity, International Equity, Company Stock, Specialty, Self-Directed Brokerage► Blended = Target Date Funds, Target Risk Funds, Balanced Funds► Conservative = Short-Term, Stable Value, Fixed Income, Annuity

Key Insights

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100% or 0% Equity Allocations

► For many participants, equity allocation was an “all-or-nothing” decision.► Mainly through the increased use of Target Date Funds, fewer participants now hold such extreme portfolios.► Less than one-in-five participants (16.1%) hold 100% or 0% equity allocations.► For more on this topic, see the Equity Allocation 3D Graph.

Key Insights

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Equity Allocation 3D Graph

Equity Allocation as of 2003-06-30 Equity Allocation as of 2013-06-30

► Target date funds have significantly increased diversification among participants.► Over the last ten years, the percent of participants in the Band** has increased from 19.3% to 47.3%, due to

Target Date Funds and plan use of Target Date Fund (TDF) Default.► The percent of participants holding 100% of their assets in equity has decreased from 25.4% to 10.0%.► Previously, equity allocation was an “all-or-nothing” decision, with few participants creating blended portfolios.

Key Insights

Number of Participants

Participants within +/- 10% points of FF Rolldown**

Legend:

**The “Band” refers to the area +/- 10% point around the Freedom Fund equity rolldown. The Fidelity Freedom Funds® are target date funds designed to become more conservative and to hold a smaller percentage of equities as investors approach their retirement dates. The rolldown assumes that participants will retire in the year they turn age 65. Investors should allocate assets based on individual risk tolerance, investment time horizon, and personal financial situation. A particular asset allocation may be achieved by using different allocations in different accounts or by using the same one across multiple accounts. See Important Additional Information for more details.

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Target Date Fund Adoption

► About one-in-three total participants (32.2%) holds 100% of their assets in Target Date Funds.► For Generation Y, this figure is 53.1%.► This trend has been chiefly driven by the use of Target Date Fund (TDF) Default.► Default options have a sizeable impact on aggregate participant behavior.

Key Insights

Generation Y was born between 1979 – 1991.

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Personal Rate of Return (PRR)*

► The median cumulative participant 1-year personal rate of return (PRR) is 13.9%.► The median cumulative participant 3-year personal rate of return (PRR) is 41.7% (12.3% annualized).► The median cumulative participant 5-year personal rate of return (PRR) is 24.0% (4.4% annualized).► The median cumulative participant 10-year personal rate of return (PRR) is 82.3% (6.2% annualized).

Key Insights

* See Important Additional Information for more details.

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Personal Rate of Return (PRR)*

10-Year Risk*

10-Year Return

HigherLower

Lower

Higherof Participants of Participants

of Participantsof Participants

of Participants of Participants

of Participants

of Participants15.4% 37.0% 52.3%

46.6%

31.3%

53.4%

16.4% 47.7%

► Balanced portfolios such as the Fidelity Freedom Funds® outperformed 47.7% of participants over the 10-year return period.

► Also, 53.4% of participants took on more risk. Of those with higher risk, 30.8% underperformed against their age-based Freedom Fund (16.4% / 53.4%).

► During the 10-year return period, the median participant cumulative return was 82.3% (6.2% annualized).

Key Insights

10-Year Participant Performance vs. Applicable Fidelity Freedom Fund®

“Return” is the time-weighted 10-year cumulative return. “Risk” is the standard deviation of returns, a measure of the volatility of returns. “Applicable” Freedom Fund is the one with the closest target date given the participant’s date of birth, assuming a retirement age of 65. How to read: the top left box would indicate the percent of participants who had higher returnsand lower risk (standard deviation of returns) than their applicable Freedom Fund over the 10-year return period. * See Important Additional Information for more details.

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► Changes in contribution allocation are driven by participant behavior, whereas asset allocation is heavily impacted by market movement.

► Equity = Domestic Equity, International Equity, Company Stock, Specialty, Self-Directed Brokerage (SDB)► Blended = Target Date Funds, Target Risk Funds, Balanced Funds► Conservative = Short-Term, Stable Value, Fixed Income, Annuity

Contribution Allocation

Active Participants Only.

Key Insights

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Employee Contributions

Key Insights

Active Participants Only.

► In the prior 12-months, 85.4% of active participants made employee contributions, up from 81.4% ten years prior.► Also, 84.1% of active participants received employer contributions in the prior 12-month period (not graphed).► Overall, 93.3% of active participants made contributions (employee, employer, or roll-in) in the prior 12-month

period (not graphed).

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Average Contribution Amounts

Key Insights

Active Participants Only.

► The average 12-month employee contribution was $5,930, up from $4,650 ten years prior (per participant making >$0 employee contributions).

► This represents a 2.5% annual increase in employee contribution amounts.► The average 12-month employer contribution was $3,400, up from $2,290 ten years prior (per participant

receiving >$0 employer contributions).► This represents a 4.0% annual increase in employer contribution amounts.

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Plan Design

Key Insights

► Plans offering Auto-Enrollment (AE) has increased to 24.4% of plans, representing 55.5% of the participant base.► Plans offering Roth Deferrals has increased to 40.7% of plans, representing 61.4% of the participant base.► Also, 76.5% of plans offer Annual Increase Program (AIP) and 11.5% of plans offer Auto-AIP.► Also, 78.9% of plans have Target Date Fund (TDF) Default, up from 54.9% five years prior.

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Loans Outstanding

► The percent of active participants with a loan outstanding is 22.3%.► The percent of active participants initiating a loan in the prior 12-months is 10.7%.

Key Insights

Active Participants Only.

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Hardship Withdrawals

► While hardship withdrawals (HWs) continue to increase, they represent a very small portion of active participants.► The percent of active participants taking a hardship withdrawal was 2.3% in the prior 12-months.► In order to take a hardship withdrawal, you have to prove a financial need.► Examples of reasons for HWs: 1) foreclosure, 2) tuition, 3) purchase of primary residence, 4) medical expenses.

Key Insights

Active Participants Only.

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Exchanges

Key Insights

► In the prior 12-months, 10.1% of participants made an exchange.► One reason for this long-term decline is the continued adoption of Target Date Funds (TDF). ► Only 1.4% of participants who held 100% of assets in TDFs made an exchange in the prior 12-months.► See Target Date Fund Adoption slide for more.

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Exchanges In/Out of Equities

Key Insights

► This figure tracks the percent of exchanging participants who had net exchanges into equities, minus the percent of exchanging participants who had net exchanges out of equities in each 3-month period.

► Negative figures indicate that more participants exchanged out of equities than into equities during the period.► Exchanges in/out of equities largely track the movements of the equity markets.

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Participant Demographics – Age Wave

Key Insights

► The median age for participants was 45.6, up from 43.9 ten years prior.► The median tenure for active participants is 7.5 years, while the mean tenure is 10.4 years.► The median salary for active participants is $63,500, while the mean salary is $89,300.

Active Participants only for tenure and salary figures.

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Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges, and expenses. For this and other information, call or write Fidelity for a free prospectus or, if available, a summary prospectus. Read it carefully before you invest.

As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation and your evaluation of the security.

Dollar 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.

Personal Rate of Return (PRR): A measure of portfolio performance that indicates the return earned over a given time period. Personal rate of return used in our analyses (unless otherwise noted) is time weighted, which means it was calculated by subtracting beginning market value from ending market value and dividing by beginning market value for each sub-period. A new sub-period began each time there was cash flow. The sub-period returns were then geometrically linked together to calculate the return for the entire period. All returns shown are historical and include change in share value and reinvestment of dividends and capital gains, if any. Risk is defined as the volatility of historical portfolio returns; it measures the average deviation of a series of historical returns from its mean. Large values of risk indicate large volatility in the historical return series, and small values indicate low volatility.

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

Keep in mind investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Past performance is no guarantee of future results.

Important Additional Information

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Important Additional Information about Charts Showing Participant Equity Holding versus Freedom Funds' Equity RolldownFor the equity rolldown chart, “Equities” are defined as domestic equity, international equity, company stock, and the equity portion of blended investment options. A random sample of 5,000 participant data points are plotted on the related charts. Percentage of assets invested in equities is based on data for participants in the defined contribution plans recordkept by Fidelity with a balance as of quarter end. These plans included both qualified and assetized nonqualified plans (i.e., nonqualified plans informally funded with mutual funds and other securities), as well as single-fund plans, which include Employee Stock Ownership Plans (ESOPs). Plans sponsored by Fidelity Investments for the benefit of its own employees are excluded. The Fidelity Freedom Funds® rolldown schedule on both Exhibits illustrate the Freedom Funds’ target asset allocations among equities and was created by Strategic Advisers, Inc. This rolldown schedule also illustrates how these allocations may change over time. The Freedom fund future target asset allocations may differ from this approximate illustration.

Fidelity Freedom Funds® are designed for investors expecting to retire around the year indicated in each fund's name. Except for the Freedom Income Fund the funds' asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. Ultimately, they are expected to merge with the Freedom Income Fund. The investment risks of each Fidelity Freedom Funds® change over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equityand fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap and, commodity-related, foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates.

For plan sponsor and institutional use only.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI 02917

657533.1.0

Important Additional Information