FIAM Presentation Template

NCCMT Government & Term Overview NCLGIA Summer Conference July 18, 2018 Not FDIC Insured May Lose Value No Bank Guarantee Not NCUA or NCUSIF insured. May lose value. No credit union guarantee. For institutional use only. l 2018 FMR LLC. All rights reserved. Agenda 1. Global Macroeconomic Update 2. U.S. Economic Review 3. Federal Reserve Interest Rate Policy 4. Government & Term Portfolio Overview 5. Q&A Unless otherwise disclosed to you, in providing this information, Fidelity is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with any investment or transaction described herein. Fiduciaries are solely responsible for exercising independent judgment in evaluating any transaction(s) and are assumed to be capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies. Fidelity has a financial interest in any transaction(s) that fiduciaries, and if applicable, their clients, may enter into involving Fidelitys products or services. 2 For institutional use only. Global Macroeconomic Update

For institutional use only. Business Cycle Framework Note: The diagram above is a hypothetical illustration of the business cycle. There is not always a chronological, linear progression among the phases of the business cycle, and there have been cycles when the economy has skipped a phase or retraced an earlier one. Source: Fidelity Investments (AART), as of 6/8/2018. 4 For institutional use only. Solid Trade Continues to Support Global Growth Diffusion index includes roughly 30 countries. Global trade growth series has been adjusted for changes in the value of the USD. Source: Markit, ISM, Haver Analytics, Fidelity Investments (AART), as of 3/31/18. 5 For institutional use only. Decelerating Chinese Activity Warrants Caution For illustrative purposes only. LEFT and RIGHT: Source: Bloomberg, China National Bureau of Statistics (official data), Fidelity Investments (AART), as of 3/31/18. 6 For institutional use only. Global Inflation Pressures Continue to Firm LEFT: Diffusion index includes roughly 30 countries. Source: Markit, Haver Analytics, Fidelity Investments (AART), as of 3/31/18. RIGHT: Source:

Ministry of Health, Labour & Welfare, Haver Analytics, Fidelity Investments (AART), as of 1/31/18. 7 For institutional use only. QE Unwind to Challenge Global Liquidity Growth Fund Flows: Mutual funds and ETFs. EME: Emerging Market Equity. EMD: Emerging Market Debt. HY: High Yield. Dotted line estimates future central bank assets: Fed to roll-off balance sheet assets by lesser of stated caps or total bonds maturing each month; ECB to begin tapering in January 2018 to EUR30B of monthly purchases for nine months and EUR10B per month in Q4; BOJ to purchase at annualized rate of average purchases over last 12 months; BOE to keep balance sheet constant. Source: Federal Reserve (Fed), Bank of England (BOE), European Central Bank (ECB), Bank of Japan (BOJ), EPFR, Haver Analytics, Fidelity Investments (AART), as of 2/28/18. Table includes weekly flow data as of 3/29/18. 8 For institutional use only. Aggressive U.S. Trade Posture is a Major Risk LEFT: The size of the circles represents total trade. The thickness of lines represents the volume of trade flows. The size of the circle and proximity to other countries represents importance and interconnectedness. Grey circles represent other countries. Source: International Monetary Fund, Haver Analytics, Fidelity Investments (AART), as of 12/31/15. RIGHT: Sectors as defined by the Global Industry Classification Standard (GICS). Source: S&P 500 company data (sector revenue), World Bank (trade/GDP), FactSet, Haver Analytics, Fidelity Investments (AART), as of 12/31/15. 9 For institutional use only. U.S. Economic Review For institutional use only. U.S. Economy a Mix of Mid- and Late-Cycle Dynamics

LEFT: * Listing of both blue and green circles indicates evidence of both mid- and late-cycle traits. Fed: Federal Reserve. Source: Fidelity Investments (AART), as of 3/31/18. RIGHT: Source: Bloomberg Financial L.P., Fidelity Investments (AART), as of 3/31/18. 11 For institutional use only. Maturing Cycles Often Portend Caution, Not Disaster Quintiles refer to ISM Purchasing Manager Index survey. ISM: Institute of Supply Management. Past performance is no guarantee of future results. Source: Data since 1970. Standard & Poors, ISM, Fidelity Investments (AART), as of 3/31/18. 12 For institutional use only. U.S. Corporate Backdrop is Strong, Helped by Tax Cuts LEFT: Past performance is no guarantee of future results. Source: Standard & Poors, Fidelity Investments (AART), as of 2/28/18. RIGHT: Source: Fidelity Investments (AART), as of 3/31/18. 13 For institutional use only. Tight Labor Markets Support Wages, Challenge Margins LEFT: Shading represents U.S. economic recession as defined by the National Bureau of Economic Research (NBER). Source: NBER, Haver Analytics, Fidelity Investments (AART), as of 12/31/17. RIGHT: Source: Demographic projection: Fidelity calculation. Labor Force: Census Bureau, Bureau of Labor Statistics, Haver Analytics, Fidelity Investments (AART), as of 2/28/18. 14 For institutional use only. Cyclical and Secular Inflation: Risks on the Upside?

WTI: West Texas Intermediate crude oil. Headline CPI: Consumer Price Index. LEFT: Scenarios assume AART core CPI and food cost growth rate forecasts under various oil price scenarios for 2018. Source: Bureau of Labor Statistics, Bloomberg Finance L.P., Fidelity Investments (AART), as of 2/28/18. RIGHT: Fed: Federal Reserve. Source: Fidelity Investments (AART), as of 3/31/18. 15 For institutional use only. Pro-Cyclical Fiscal Easing Leads to Higher Deficits Fed: Federal Reserve. LEFT: Expected economic impact per $1 of fiscal stimulus in the two years that follow the stimulus. Source: Congressional Budget Office (CBO), Fidelity Investments (AART), data as of 2/28/15. RIGHT: Prior scenario was as of June 2017, based on CBO projections. Current and alternative scenarios are projections by the CRFB. Alternative scenario assumes various expiring policies will be extended, including recent tax cuts and higher budget caps. Source: Congressional Budget Office, Committee for a Responsible Federal Budget (CRFB), Haver Analytics, Fidelity Investments (AART), as of 9/30/17. 16 For institutional use only. Federal Reserve Interest Rate Policy For institutional use only. Market Rate Hike Expectations are Below the Feds Forecast 5.0% 4.5% 3.5%

June 2018 Federal Reserve Fed Funds Projections 3.0% Median Fed Funds Projection 4.0% Market Expectations As of June 13, 2018 2.5% 2.0% 1.5% 1.0% Market Pricing of Short Rates in 1 Year (Constant-maturity Eurodollar Future)

0.5% 0.0% 5 6 6Funds 6 7 Rate 3 4 4 4 4 5 5 5 Federal 6 Target 7 7 7 8 8 8 8 9 9 9 9 0 0 0 0 1 1 01 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 202 202 202 202 202 202 2 1/ 1/ 0/ 0/ 1/ 1/ 0/ 0/ 1/ 1/ 0/ 0/ 0/ 1/ 0/ 9/ 9/ 9/ 3/ 0/ 1/ 1/ 0/ 0/ 1/ 1/ 0/ 0/ 1/ 1/ 0/ /3 3/3 6/3 9/3 2/3 3/3 6/3 9/3 2/3 3/3 6/3 9/3 2/3 3/3 6/3 9/2 2/2 3/2 6/1 9/3 2/3 3/3 6/3 9/3 2/3 3/3 6/3 9/3 2/3 3/3 6/3 2 1 1 1 1 1 1 1 1 Source: Federal Reserve and Bloomberg as of 6/13/2018. 18 For institutional use only. Federal Reserves Economic Projections

R eal G DP YoY ( % ) U n e m p lo y m e n t R a t e ( % ) PCE YoY (%) Inflation Forecast Inflation 1.80 Unemployment Rate 5.2 5.0 4.8 4.6 4.4 4.2 4.0 3.8 3.6 3.4 3.2

3.2 3.0 2.8 2.6 2.4 2.2 2.0 1.8 1.6 1.4 1.2 1.0 Unemployment Rate Forecast 3.8 6/30/15; 9/30/14; 3.3 3.2 12/31/13; 6/30/14; 12/31/14; 12/31/17; 2.8 2.7

2.7 2.7 9/30/15; 2.6 9/30/17; 6/30/17; 2.4 12/31/15; 3/31/17; 2.2 2.3 GDP 12/31/16; 2.0 2.0 3/31/14; 1.8 9/30/16; 1.7 3/31/16; 1.5 1.4 6/30/16; 1.2 GDP Forecast

Source: Bloomberg and Federal Reserve. Inflation as of 4/30/2018, Unemployment Rate as of 5/31/2018, and GDP as of 3/31/2018. FOMC Forecast based on the central tendency (excludes the three highest and three lowest projections for each variable in each year) as of 6/13/2018. 19 For institutional use only. The Fed Gradually Un-Winds Their Balance Sheet Monthly Runoff Caps vs. Expected Maturities/Prepays $100,000 Treasury Cap MBS Cap Treasury Maturities MBS Prepayments $90,000 Millions $80,000 $70,000 $60,000 $50,000

$40,000 $30,000 $20,000 $10,000 $0 17 17 17 017 18 18 18 18 18 018 019 19 19 19 19 19 20 20 020 20 20 020 2 20 20

20 2 20 20 20 20 20 2 20 20 20 20 20 20 20 2 20 20 / / / / / / /

/ / / / / / / / /2 / / / / / / 30 31 31 31 28 31 28 30 30 31

31 31 30 31 31 31 30 30 31 31 29 30 / / / / / / / / / / / / /

/ / / / / / / / / 6 8 2 4 6 8 2 4 6 8 2 4 6 8 10 12

10 12 10 12 10 12 Source: Federal Reserve as of 9/22/2017. 20 For institutional use only. Fed RRP Utilization Drops with Increased Bill and Repo Supply MAXIMUM ALLOTMENT CAP, FIXED RATE, OUTSTANDING AMOUNTS $500 MM $3B $5B $7B 500 $1B 160 $30B $10B 450

140 400 120 100 300 250 80 200 60 150 40 100 20 50 0 10/7/2013 2/4/2014

5/30/2014 9/23/2014 1/21/2015 5/15/2015 9/10/2015 1/7/2016 5/3/2016 8/25/2016 12/21/2016 4/19/2017 8/11/2017 12/6/2017 4/4/2018 0 Total Fed Term Repo Sources: Federal Reserve and Fidelity Investments as of 5/31/2018. 21 For institutional use only. Total Fed Overnight Repo Fed Repo Rate

Fed Repo Rate (bps) Fed Repo ($Billions) 350 Government & Term Portfolio Overview For institutional use only. NCCMT Government Portfolio Positioning MAY 31, 2018 MAY 31, 2017 1% 17% 5% 4% 3% 22% 21%

2% Overnight Repo Term Repo Fixed GSEs Variable GSEs Treasuries Net Other Assets* 30% 20% 38% 37% Portfolio Characteristics Portfolio Characteristics Weighted Average Maturity (WAM) 35 Days Weighted Average Maturity (WAM) 35 Days

Weighted Average Life (WAL) 89 Days Weighted Average Life (WAL) 95 Days Portfolio diversification is presented to illustrate examples of the securities that each fund has bought and may not be representative of a funds current or future investments. Each funds investments may change at any time. Percentages may not add up to 100 due to rounding. *Net Other Assets may include cash and receivables and payables related to open security or capital stock trades. Source: Fidelity Investments as of 5/31/2018 23 For institutional use only. NCCMT Term Portfolio Positioning MAY 31, 2018 MAY 31, 2017 4% 1%1% 1% 4% 2%

23% 12% North American Banks 25% 16% Asian/Australian Banks Eurozone Banks 1% 2% Nordic/Swiss Banks UK Banks 5% Finance Companies Asset Backed 16%

Auto Finance 25% 13% Other Corporate 20% Government/Repo Net Other Assets* 15% 15% Portfolio Characteristics Option Adjusted Duration (OAD) Portfolio Characteristics 0.08 years Option Adjusted Duration (OAD)

Portfolio diversification is presented to illustrate examples of the securities that each fund has bought and may not be representative of a funds current or future investments. Each funds investments may change at any time. Percentages may not add up to 100 due to rounding. *Net Other Assets may include cash and receivables and payables related to open security or capital stock trades Source: Fidelity Investments; Sector Composition and Fund Characteristics as of 5/31/2018 24 For institutional use only. 0.08 years Second Quarter Investment Strategy and Outlook Investment Strategy Seeking to preserve principal, maintain liquidity and achieve superior risk-adjusted performance Emphasize fundamental and macro research in formulating portfolio structures Manage weighted average maturities (WAM) and weighted average life (WAL) constraints to enhance NAV stability, liquidity and performance Position portfolios based on our assessment of relative value across the money market yield curve within the context of our approved credits Outlook Less regulation, lower taxes, and more assertive foreign policy are policy shifts that may boost growth The Federal Reserve recently increased its estimate of 2018 GDP growth by 0.2% to 2.7% reflecting the benefits of tax-cuts that may extend and accelerate positive investment trends. Estimated 2019 GDP was increased from 2.1% to 2.4% Strengthening economic activity may grow core inflation to the Feds targeted level of around 2% through the end of 2018 Fiscal stimulus may be limited and unfold over years The Fed is still on a path of gradual tightening, given their optimistic outlook

FOMCs forward guidance is still on a gradual path even as inflation trends higher The Fed is forecasting two additional rate hikes in 2018 and three more in 2019 The Fed increased its run-off caps to $30B per month. The plan calls for quarterly increases until the caps reach $50B per month Higher predicted growth and inflation enable the BOE, ECB and BOC opportunities to reduce monetary accommodation Source: Fidelity Investments Asset Management 25 For institutional use only. Q&A For institutional use only. Important Information Not NCUA or NCUSIF insured. May lose value. No credit union guarantee. The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund. Past performance is no guarantee of future results. Investment return will fluctuate, therefore you may have a gain or loss when you sell shares. Diversification does not ensure a profit or guarantee against a loss. Fidelity Conservative Income Bond Fund 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 avoiding losses caused by price volatility by holding them until maturity is not possible. Foreign securities can be more volatile than U.S. markets due to increased risks of adverse issuer, political, regulatory, market or economic developments. Changes in government regulation, interest rates and economic downturns

can have a significant effect on issuers in the financial services sector, including the price of their securities or their ability to meet their payment obligations. Prepayment of principal prior to a security's maturity can cause greater price volatility if interest rates change. The fund can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) that may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. Conservative Ultrashort Bond Funds are not money market funds and will have a fluctuating NAV. Fidelity Government/Treasury Money Market Funds You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the funds sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Fidelitys government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors. Fidelity Institutional Prime Money Market Fund You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the funds liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the funds sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. 27 For institutional use only. Important Information Fidelity Retail Prime and/or Municipal Money Market Funds You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the

Funds liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the funds sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Interest rate increases can cause the price of a money market security to decrease. A decline in the credit quality of an issuer or a provider of credit support or a maturity-shortening structure for a security can cause the price of a money market security to decrease. Before investing, consider the funds and/or accounts investment objectives, risks, charges, and expenses. Contact Fidelity or visit institutional.fidelity.com for a prospectus or, if available, a summary prospectus containing this information, if applicable. Read it carefully. The 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. Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI 02917 For institutional use only. 28 815784.2.0 Not FDIC insured. May lose value. No bank guarantee.

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