Summary

• The Fidelity Asset Manager 50% Fund's core equity allocation strategy – comprised of modest overweight stakes in U.S. and international stocks – contributed to performance versus the Composite index this quarter.
• Security selection among U.S. stocks notably bolstered relative performance for the first quarter, particularly within the information technology sector.
• Stock selection in emerging-markets equities notably contributed to the Fidelity Asset Manager 50% Fund's relative result in Q1, with investment choices in Taiwan and overall positioning in Brazil adding the most value.
• Many global risk assets came under pressure as concern about the viability of artificial intelligence-related investments began to surface and conflict in the Middle East took center stage.
• Following the late-March market rally, Fidelity Asset Manager 50% reduced equity risk in light of growing uncertainty about the war in Iran, inflation and Fed policy.

Market Review

For the first three months of 2026, many global risk assets came under pressure as concern about the viability of artificial intelligence-related investments began to surface and conflict in the Middle East took center