UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03407
Fidelity Boylston Street Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | March 31 |
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Date of reporting period: | March 31, 2013 |
Item 1. Reports to Stockholders
Strategic Advisers® Multi-Manager Target Date Funds -
Income, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055
Annual Report
March 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Strategic Advisers Multi-Manager Income Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2005 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2010 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2015 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2020 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2025 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2030 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2035 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2040 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2045 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2050 Fund | Investment Summary Investments Financial Statements | |
Strategic Advisers Multi-Manager 2055 Fund | Investment Summary Investments Financial Statements | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
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Distributions |
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Board Approval of Investment Advisory Contracts and Management Fees |
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Annual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5095 (plan accounts) or 1-800-544-3455 (all other accounts) to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 20, 2012 to March 31, 2013). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (October 1, 2012 to March 31, 2013).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in underlying funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in underlying funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
Strategic Advisers Multi-Manager Income Fund | .06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,017.10 | $ .17 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.63 | $ .30 D |
Strategic Advisers Multi-Manager 2005 Fund | .06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,027.00 | $ .17 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.63 | $ .30 D |
Strategic Advisers Multi-Manager 2010 Fund | .06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.00 | $ .17 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.63 | $ .30 D |
Strategic Advisers Multi-Manager 2015 Fund | .09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,036.00 | $ .26 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.48 | $ .45 D |
Strategic Advisers Multi-Manager 2020 Fund | .09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,040.00 | $ .26 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.48 | $ .45 D |
Strategic Advisers Multi-Manager 2025 Fund | .09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,048.00 | $ .26 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.48 | $ .45 D |
Strategic Advisers Multi-Manager 2030 Fund | .09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,050.00 | $ .26 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.48 | $ .45 D |
Strategic Advisers Multi-Manager 2035 Fund | .10% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.00 | $ .29 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.43 | $ .50 D |
| Annualized | Beginning | Ending | Expenses Paid |
Strategic Advisers Multi-Manager 2040 Fund | .10% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,057.00 | $ .29 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.43 | $ .50 D |
Strategic Advisers Multi-Manager 2045 Fund | .10% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,059.00 | $ .29 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.43 | $ .50 D |
Strategic Advisers Multi-Manager 2050 Fund | .10% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,060.00 | $ .29 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.43 | $ .50 D |
Strategic Advisers Multi-Manager 2055 Fund | .10% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.00 | $ .29 C |
HypotheticalA |
| $ 1,000.00 | $ 1,024.43 | $ .50 D |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Actual expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 102/365 (to reflect the period December 20, 2012 to March 31, 2013).
D Hypothetical expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
* The fees and expenses of the underlying funds in which the Funds invest are not included in the Funds' annualized expense ratio.
Annual Report
Strategic Advisers Multi-Manager Income Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 2.0 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 3.9 |
Strategic Advisers Growth Multi-Manager Fund Class F | 3.3 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 2.0 |
Strategic Advisers Value Multi-Manager Fund Class F | 3.9 |
| 13.1 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 4.2 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 1.3 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.5 |
Fidelity Series Floating Rate High Income Fund Class F | 1.2 |
Fidelity Series Real Estate Income Fund Class F | 0.4 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 4.7 |
| 6.8 |
Inflation-Protected Bond Funds | |
Fidelity Series Inflation-Protected Bond Index Fund Class F | 11.8 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 21.3 |
Short-Term Funds | |
Fidelity Institutional Money Market Portfolio Class F | 21.7 |
Fidelity Short-Term Bond Fund Class F | 17.8 |
| 39.5 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 2.0% |
| |
Domestic Equity Funds | 13.1% |
| |
Developed International Equity Funds | 4.2% |
| |
Emerging Markets Equity Funds | 1.3% |
| |
High Yield Bond Funds | 6.8% |
| |
Inflation-Protected Bond Funds | 11.8% |
| |
Investment Grade Bond Funds | 21.3% |
| |
Short-Term Funds | 39.5% |
|
Expected | |||
Commodity Funds | 2.0% |
| |
Domestic Equity Funds | 12.6% |
| |
Developed International Equity Funds | 4.2% |
| |
Emerging Markets Equity Funds | 1.2% |
| |
High Yield Bond Funds | 5.0% |
| |
Inflation-Protected Bond Funds | 12.0% |
| |
Investment Grade Bond Funds | 23.0% |
| |
Short-Term Funds | 40.0% |
|
The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager Income Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 15.1% | |||
Shares | Value | ||
Commodity Funds - 2.0% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 229 | $ 1,998 | |
Domestic Equity Funds - 13.1% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 320 | 4,006 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 273 | 3,325 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 160 | 2,033 | |
Strategic Advisers Value Multi-Manager Fund Class F | 315 | 4,016 | |
TOTAL DOMESTIC EQUITY FUNDS | 13,380 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $14,404) |
| ||
International Equity Funds - 5.5% | |||
|
|
|
|
Developed International Equity Funds - 4.2% | |||
Strategic Advisers International Multi-Manager Fund Class F | 380 | 4,260 | |
Emerging Markets Equity Funds - 1.3% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 126 | 1,310 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $5,417) |
| ||
Bond Funds - 39.9% | |||
|
|
|
|
High Yield Bond Funds - 6.8% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 49 | 537 | |
Fidelity Series Floating Rate High Income Fund Class F | 110 | 1,173 | |
| |||
Shares | Value | ||
Fidelity Series Real Estate Income Fund Class F | 33 | $ 379 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 451 | 4,807 | |
TOTAL HIGH YIELD BOND FUNDS | 6,896 | ||
Inflation-Protected Bond Funds - 11.8% | |||
Fidelity Series Inflation-Protected Bond Index Fund Class F | 1,051 | 11,969 | |
Investment Grade Bond Funds - 21.3% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 2,149 | 21,684 | |
TOTAL BOND FUNDS (Cost $40,949) |
| ||
Short-Term Funds - 39.5% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Class F | 22,105 | 22,105 | |
Fidelity Short-Term Bond Fund Class F | 2,108 | 18,128 | |
TOTAL SHORT-TERM FUNDS (Cost $40,213) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $100,983) | 101,730 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (13) | ||
NET ASSETS - 100% | $ 101,717 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager Income Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $100,983) - See accompanying schedule | $ 101,730 | |
Receivable from investment adviser for expense reductions | 25 | |
Total assets | 101,755 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 33 | |
Transfer agent fee payable | 5 | |
Total liabilities | 38 | |
|
|
|
Net Assets | $ 101,717 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,310 | |
Undistributed net investment income | 117 | |
Accumulated undistributed net realized gain (loss) on investments | 543 | |
Net unrealized appreciation (depreciation) on investments | 747 | |
Net Assets, for 10,031 shares outstanding | $ 101,717 | |
Net Asset Value, offering price and redemption price per share ($101,717 ÷ 10,031 shares) | $ 10.14 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 443 |
|
|
|
Expenses | ||
Transfer agent fees | $ 16 | |
Tax expense | 25 |
|
Total expenses before reductions | 41 |
|
Expense reductions | (25) | 16 |
Net investment income (loss) | 427 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 27 | |
Capital gain distributions from underlying funds | 516 |
|
Total net realized gain (loss) |
| 543 |
Change in net unrealized appreciation (depreciation) on underlying funds | 747 | |
Net gain (loss) | 1,290 | |
Net increase (decrease) in net assets resulting from operations | $ 1,717 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 427 |
Net realized gain (loss) | 543 |
Change in net unrealized appreciation (depreciation) | 747 |
Net increase (decrease) in net assets resulting from operations | 1,717 |
Distributions to shareholders from net investment income | (310) |
Share transactions | 100,000 |
Reinvestment of distributions | 310 |
Net increase (decrease) in net assets resulting from share transactions | 100,310 |
Total increase (decrease) in net assets | 101,717 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $117) | $ 101,717 |
Other Information Shares | |
Sold | 10,000 |
Issued in reinvestment of distributions | 31 |
Net increase (decrease) | 10,031 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .04 |
Net realized and unrealized gain (loss) | .13 |
Total from investment operations | .17 |
Distributions from net investment income | (.03) |
Net asset value, end of period | $ 10.14 |
Total Return B, H | 1.71% |
Ratios to Average Net Assets D, F |
|
Expenses before reductions | .15% A |
Expenses net of fee waivers, if any | .06% A |
Expenses net of all reductions | .06% A |
Net investment income (loss) | 1.52% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 102 |
Portfolio turnover rate | 0% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2005 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 3.8 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 6.7 |
Strategic Advisers Growth Multi-Manager Fund Class F | 5.6 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 3.4 |
Strategic Advisers Value Multi-Manager Fund Class F | 6.8 |
| 22.5 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 7.3 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 2.2 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.7 |
Fidelity Series Floating Rate High Income Fund Class F | 1.1 |
Fidelity Series Real Estate Income Fund Class F | 0.5 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 4.6 |
| 6.9 |
Inflation-Protected Bond Funds | |
Fidelity Series Inflation-Protected Bond Index Fund Class F | 9.4 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 17.8 |
Short-Term Funds | |
Fidelity Institutional Money Market Portfolio Class F | 16.5 |
Fidelity Short-Term Bond Fund Class F | 13.6 |
| 30.1 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 3.8% |
| |
Domestic Equity Funds | 22.5% |
| |
Developed International Equity Funds | 7.3% |
| |
Emerging Markets Equity Funds | 2.2% |
| |
High Yield Bond Funds | 6.9% |
| |
Inflation-Protected Bond Funds | 9.4% |
| |
Investment Grade Bond Funds | 17.8% |
| |
Short-Term Funds | 30.1% |
|
Expected | |||
Commodity Funds | 3.6% |
| |
Domestic Equity Funds | 20.4% |
| |
Developed International Equity Funds | 6.8% |
| |
Emerging Markets Equity Funds | 2.0% |
| |
High Yield Bond Funds | 5.0% |
| |
Inflation-Protected Bond Funds | 9.7% |
| |
Investment Grade Bond Funds | 19.6% |
| |
Short-Term Funds | 32.9% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2005 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 26.3% | |||
Shares | Value | ||
Commodity Funds - 3.8% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 444 | $ 3,876 | |
Domestic Equity Funds - 22.5% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 553 | 6,928 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 473 | 5,753 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 275 | 3,501 | |
Strategic Advisers Value Multi-Manager Fund Class F | 543 | 6,933 | |
TOTAL DOMESTIC EQUITY FUNDS | 23,115 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $25,315) |
| ||
International Equity Funds - 9.5% | |||
|
|
|
|
Developed International Equity Funds - 7.3% | |||
Strategic Advisers International Multi-Manager Fund Class F | 665 | 7,449 | |
Emerging Markets Equity Funds - 2.2% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 218 | 2,277 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $9,460) |
| ||
Bond Funds - 34.1% | |||
|
|
|
|
High Yield Bond Funds - 6.9% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 62 | 676 | |
Fidelity Series Floating Rate High Income Fund Class F | 110 | 1,173 | |
| |||
Shares | Value | ||
Fidelity Series Real Estate Income Fund Class F | 42 | $ 495 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 446 | 4,755 | |
TOTAL HIGH YIELD BOND FUNDS | 7,099 | ||
Inflation-Protected Bond Funds - 9.4% | |||
Fidelity Series Inflation-Protected Bond Index Fund Class F | 843 | 9,604 | |
Investment Grade Bond Funds - 17.8% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 1,817 | 18,332 | |
TOTAL BOND FUNDS (Cost $35,346) |
| ||
Short-Term Funds - 30.1% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Class F | 16,995 | 16,995 | |
Fidelity Short-Term Bond Fund Class F | 1,620 | 13,932 | |
TOTAL SHORT-TERM FUNDS (Cost $30,911) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,032) | 102,679 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (12) | ||
NET ASSETS - 100% | $ 102,667 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2005 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,032) - See accompanying schedule | $ 102,679 | |
Receivable from investment adviser for expense reductions | 27 | |
Total assets | 102,706 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 34 | |
Transfer agent fee payable | 5 | |
Total liabilities | 39 | |
|
|
|
Net Assets | $ 102,667 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 460 | |
Accumulated undistributed net realized gain (loss) on investments | 560 | |
Net unrealized appreciation (depreciation) on investments | 1,647 | |
Net Assets, for 10,000 shares outstanding | $ 102,667 | |
Net Asset Value, offering price and redemption price per share ($102,667 ÷ 10,000 shares) | $ 10.27 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 476 |
|
|
|
Expenses | ||
Transfer agent fees | $ 16 | |
Tax expense | 27 |
|
Total expenses before reductions | 43 |
|
Expense reductions | (27) | 16 |
Net investment income (loss) | 460 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 57 | |
Capital gain distributions from underlying funds | 503 |
|
Total net realized gain (loss) |
| 560 |
Change in net unrealized appreciation (depreciation) on underlying funds | 1,647 | |
Net gain (loss) | 2,207 | |
Net increase (decrease) in net assets resulting from operations | $ 2,667 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 460 |
Net realized gain (loss) | 560 |
Change in net unrealized appreciation (depreciation) | 1,647 |
Net increase (decrease) in net assets resulting from operations | 2,667 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 102,667 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $460) | $ 102,667 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .05 |
Net realized and unrealized gain (loss) | .22 |
Total from investment operations | .27 |
Net asset value, end of period | $ 10.27 |
Total Return B, H | 2.70% |
Ratios to Average Net Assets D, F |
|
Expenses before reductions | .15% A |
Expenses net of fee waivers, if any | .06% A |
Expenses net of all reductions | .06% A |
Net investment income (loss) | 1.63% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 103 |
Portfolio turnover rate | 1% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2010 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 5.1 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 9.2 |
Strategic Advisers Growth Multi-Manager Fund Class F | 7.7 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 4.7 |
Strategic Advisers Value Multi-Manager Fund Class F | 9.2 |
| 30.8 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 9.8 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 3.0 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.7 |
Fidelity Series Floating Rate High Income Fund Class F | 1.1 |
Fidelity Series Real Estate Income Fund Class F | 0.5 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 4.6 |
| 6.9 |
Inflation-Protected Bond Funds | |
Fidelity Series Inflation-Protected Bond Index Fund Class F | 10.2 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 21.6 |
Short-Term Funds | |
Fidelity Institutional Money Market Portfolio Class F | 6.9 |
Fidelity Short-Term Bond Fund Class F | 5.7 |
| 12.6 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 5.1% |
| |
Domestic Equity Funds | 30.8% |
| |
Developed International Equity Funds | 9.8% |
| |
Emerging Markets Equity Funds | 3.0% |
| |
High Yield Bond Funds | 6.9% |
| |
Inflation-Protected Bond Funds | 10.2% |
| |
Investment Grade Bond Funds | 21.6% |
| |
Short-Term Funds | 12.6% |
|
Expected | |||
Commodity Funds | 5.2% |
| |
Domestic Equity Funds | 29.4% |
| |
Developed International Equity Funds | 9.7% |
| |
Emerging Markets Equity Funds | 2.9% |
| |
High Yield Bond Funds | 5.0% |
| |
Inflation-Protected Bond Funds | 10.5% |
| |
Investment Grade Bond Funds | 23.1% |
| |
Short-Term Funds | 14.2% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2010 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 35.9% | |||
Shares | Value | ||
Commodity Funds - 5.1% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 611 | $ 5,338 | |
Domestic Equity Funds - 30.8% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 763 | 9,550 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 652 | 7,933 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 379 | 4,825 | |
Strategic Advisers Value Multi-Manager Fund Class F | 749 | 9,558 | |
TOTAL DOMESTIC EQUITY FUNDS | 31,866 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $34,892) |
| ||
International Equity Funds - 12.8% | |||
|
|
|
|
Developed International Equity Funds - 9.8% | |||
Strategic Advisers International Multi-Manager Fund Class F | 907 | 10,161 | |
Emerging Markets Equity Funds - 3.0% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 299 | 3,114 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $12,911) |
| ||
Bond Funds - 38.7% | |||
|
|
|
|
High Yield Bond Funds - 6.9% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 62 | 676 | |
Fidelity Series Floating Rate High Income Fund Class F | 110 | 1,173 | |
| |||
Shares | Value | ||
Fidelity Series Real Estate Income Fund Class F | 46 | $ 538 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 447 | 4,766 | |
TOTAL HIGH YIELD BOND FUNDS | 7,153 | ||
Inflation-Protected Bond Funds - 10.2% | |||
Fidelity Series Inflation-Protected Bond Index Fund Class F | 925 | 10,536 | |
Investment Grade Bond Funds - 21.6% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 2,215 | 22,352 | |
TOTAL BOND FUNDS (Cost $40,411) |
| ||
Short-Term Funds - 12.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Class F | 7,142 | 7,142 | |
Fidelity Short-Term Bond Fund Class F | 681 | 5,855 | |
TOTAL SHORT-TERM FUNDS (Cost $12,990) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,204) | 103,517 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (12) | ||
NET ASSETS - 100% | $ 103,505 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2010 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,204) - See accompanying schedule | $ 103,517 | |
Receivable from investment adviser for expense reductions | 33 | |
Total assets | 103,550 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 40 | |
Transfer agent fee payable | 5 | |
Total liabilities | 45 | |
|
|
|
Net Assets | $ 103,505 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 531 | |
Accumulated undistributed net realized gain (loss) on investments | 661 | |
Net unrealized appreciation (depreciation) on investments | 2,313 | |
Net Assets, for 10,000 shares outstanding | $ 103,505 | |
Net Asset Value, offering price and redemption price per share ($103,505 ÷ 10,000 shares) | $ 10.35 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 547 |
|
|
|
Expenses | ||
Transfer agent fees | $ 16 | |
Tax expense | 33 |
|
Total expenses before reductions | 49 |
|
Expense reductions | (33) | 16 |
Net investment income (loss) | 531 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 57 | |
Capital gain distributions from underlying funds | 604 |
|
Total net realized gain (loss) |
| 661 |
Change in net unrealized appreciation (depreciation) on underlying funds | 2,313 | |
Net gain (loss) | 2,974 | |
Net increase (decrease) in net assets resulting from operations | $ 3,505 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 531 |
Net realized gain (loss) | 661 |
Change in net unrealized appreciation (depreciation) | 2,313 |
Net increase (decrease) in net assets resulting from operations | 3,505 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 103,505 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $531) | $ 103,505 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .05 |
Net realized and unrealized gain (loss) | .30 |
Total from investment operations | .35 |
Net asset value, end of period | $ 10.35 |
Total Return B, H | 3.50% |
Ratios to Average Net Assets D, F |
|
Expenses before reductions | .17% A |
Expenses net of fee waivers, if any | .06% A |
Expenses net of all reductions | .06% A |
Net investment income (loss) | 1.87% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 104 |
Portfolio turnover rate | 1% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2015 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 5.4 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 9.6 |
Strategic Advisers Growth Multi-Manager Fund Class F | 8.0 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 4.8 |
Strategic Advisers Value Multi-Manager Fund Class F | 9.6 |
| 32.0 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 10.2 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 3.1 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.6 |
Fidelity Series Floating Rate High Income Fund Class F | 1.1 |
Fidelity Series Real Estate Income Fund Class F | 0.6 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 4.6 |
| 6.9 |
Inflation-Protected Bond Funds | |
Fidelity Series Inflation-Protected Bond Index Fund Class F | 10.1 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 22.5 |
Short-Term Funds | |
Fidelity Institutional Money Market Portfolio Class F | 5.4 |
Fidelity Short-Term Bond Fund Class F | 4.4 |
| 9.8 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 5.4% |
| |
Domestic Equity Funds | 32.0% |
| |
Developed International Equity Funds | 10.2% |
| |
Emerging Markets Equity Funds | 3.1% |
| |
High Yield Bond Funds | 6.9% |
| |
Inflation-Protected Bond Funds | 10.1% |
| |
Investment Grade Bond Funds | 22.5% |
| |
Short-Term Funds | 9.8% |
|
Expected | |||
Commodity Funds | 5.5% |
| |
Domestic Equity Funds | 31.1% |
| |
Developed International Equity Funds | 10.3% |
| |
Emerging Markets Equity Funds | 3.0% |
| |
High Yield Bond Funds | 5.0% |
| |
Inflation-Protected Bond Funds | 10.6% |
| |
Investment Grade Bond Funds | 24.4% |
| |
Short-Term Funds | 10.1% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2015 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 37.4% | |||
Shares | Value | ||
Commodity Funds - 5.4% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 639 | $ 5,577 | |
Domestic Equity Funds - 32.0% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 795 | 9,954 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 680 | 8,273 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 395 | 5,029 | |
Strategic Advisers Value Multi-Manager Fund Class F | 781 | 9,970 | |
TOTAL DOMESTIC EQUITY FUNDS | 33,226 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $36,392) |
| ||
International Equity Funds - 13.3% | |||
|
|
|
|
Developed International Equity Funds - 10.2% | |||
Strategic Advisers International Multi-Manager Fund Class F | 943 | 10,566 | |
Emerging Markets Equity Funds - 3.1% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 310 | 3,234 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $13,423) |
| ||
Bond Funds - 39.5% | |||
|
|
|
|
High Yield Bond Funds - 6.9% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 62 | 676 | |
Fidelity Series Floating Rate High Income Fund Class F | 110 | 1,173 | |
| |||
Shares | Value | ||
Fidelity Series Real Estate Income Fund Class F | 51 | $ 590 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 446 | 4,755 | |
TOTAL HIGH YIELD BOND FUNDS | 7,194 | ||
Inflation-Protected Bond Funds - 10.1% | |||
Fidelity Series Inflation-Protected Bond Index Fund Class F | 914 | 10,416 | |
Investment Grade Bond Funds - 22.5% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 2,313 | 23,335 | |
TOTAL BOND FUNDS (Cost $41,318) |
| ||
Short-Term Funds - 9.8% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Class F | 5,550 | 5,550 | |
Fidelity Short-Term Bond Fund Class F | 529 | 4,551 | |
TOTAL SHORT-TERM FUNDS (Cost $10,095) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,228) | 103,649 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (23) | ||
NET ASSETS - 100% | $ 103,626 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2015 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,228) - See accompanying schedule | $ 103,649 | |
Receivable from investment adviser for expense reductions | 34 | |
Total assets | 103,683 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 49 | |
Transfer agent fee payable | 8 | |
Total liabilities | 57 | |
|
|
|
Net Assets | $ 103,626 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 535 | |
Accumulated undistributed net realized gain (loss) on investments | 670 | |
Net unrealized appreciation (depreciation) on investments | 2,421 | |
Net Assets, for 10,000 shares outstanding | $ 103,626 | |
Net Asset Value, offering price and redemption price per share ($103,626 ÷ 10,000 shares) | $ 10.36 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 561 |
|
|
|
Expenses | ||
Transfer agent fees | $ 26 | |
Tax expense | 34 |
|
Total expenses before reductions | 60 |
|
Expense reductions | (34) | 26 |
Net investment income (loss) | 535 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 55 | |
Capital gain distributions from underlying funds | 615 |
|
Total net realized gain (loss) |
| 670 |
Change in net unrealized appreciation (depreciation) on underlying funds | 2,421 | |
Net gain (loss) | 3,091 | |
Net increase (decrease) in net assets resulting from operations | $ 3,626 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 535 |
Net realized gain (loss) | 670 |
Change in net unrealized appreciation (depreciation) | 2,421 |
Net increase (decrease) in net assets resulting from operations | 3,626 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 103,626 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $535) | $ 103,626 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .05 |
Net realized and unrealized gain (loss) | .31 |
Total from investment operations | .36 |
Net asset value, end of period | $ 10.36 |
Total Return B, H | 3.60% |
Ratios to Average Net Assets D, F |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .09% A |
Expenses net of all reductions | .09% A |
Net investment income (loss) | 1.88% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 104 |
Portfolio turnover rate | 1% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2020 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 5.9 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 10.5 |
Strategic Advisers Growth Multi-Manager Fund Class F | 8.8 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 5.3 |
Strategic Advisers Value Multi-Manager Fund Class F | 10.5 |
| 35.1 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 11.2 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 3.4 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.8 |
Fidelity Series Floating Rate High Income Fund Class F | 1.1 |
Fidelity Series Real Estate Income Fund Class F | 0.6 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 5.2 |
| 7.7 |
Inflation-Protected Bond Funds | |
Fidelity Series Inflation-Protected Bond Index Fund Class F | 8.3 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 21.7 |
Short-Term Funds | |
Fidelity Institutional Money Market Portfolio Class F | 3.7 |
Fidelity Short-Term Bond Fund Class F | 3.0 |
| 6.7 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 5.9% |
| |
Domestic Equity Funds | 35.1% |
| |
Developed International Equity Funds | 11.2% |
| |
Emerging Markets Equity Funds | 3.4% |
| |
High Yield Bond Funds | 7.7% |
| |
Inflation-Protected Bond Funds | 8.3% |
| |
Investment Grade Bond Funds | 21.7% |
| |
Short-Term Funds | 6.7% |
|
Expected | |||
Commodity Funds | 5.9% |
| |
Domestic Equity Funds | 33.4% |
| |
Developed International Equity Funds | 11.0% |
| |
Emerging Markets Equity Funds | 3.3% |
| |
High Yield Bond Funds | 5.5% |
| |
Inflation-Protected Bond Funds | 9.0% |
| |
Investment Grade Bond Funds | 24.2% |
| |
Short-Term Funds | 7.7% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2020 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 41.0% | |||
Shares | Value | ||
Commodity Funds - 5.9% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 703 | $ 6,133 | |
Domestic Equity Funds - 35.1% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 874 | 10,939 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 748 | 9,093 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 434 | 5,524 | |
Strategic Advisers Value Multi-Manager Fund Class F | 858 | 10,953 | |
TOTAL DOMESTIC EQUITY FUNDS | 36,509 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $39,994) |
| ||
International Equity Funds - 14.6% | |||
|
|
|
|
Developed International Equity Funds - 11.2% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,040 | 11,647 | |
Emerging Markets Equity Funds - 3.4% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 342 | 3,567 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $14,797) |
| ||
Bond Funds - 37.7% | |||
|
|
|
|
High Yield Bond Funds - 7.7% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 74 | 805 | |
Fidelity Series Floating Rate High Income Fund Class F | 110 | 1,173 | |
| |||
Shares | Value | ||
Fidelity Series Real Estate Income Fund Class F | 54 | $ 632 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 510 | 5,446 | |
TOTAL HIGH YIELD BOND FUNDS | 8,056 | ||
Inflation-Protected Bond Funds - 8.3% | |||
Fidelity Series Inflation-Protected Bond Index Fund Class F | 758 | 8,630 | |
Investment Grade Bond Funds - 21.7% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 2,234 | 22,544 | |
TOTAL BOND FUNDS (Cost $39,546) |
| ||
Short-Term Funds - 6.7% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Class F | 3,795 | 3,795 | |
Fidelity Short-Term Bond Fund Class F | 362 | 3,109 | |
TOTAL SHORT-TERM FUNDS (Cost $6,901) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,238) | 103,990 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (22) | ||
NET ASSETS - 100% | $ 103,968 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2020 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,238) - See accompanying schedule | $ 103,990 | |
Receivable from investment adviser for expense reductions | 34 | |
Total assets | 104,024 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 48 | |
Transfer agent fee payable | 8 | |
Total liabilities | 56 | |
|
|
|
Net Assets | $ 103,968 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 561 | |
Accumulated undistributed net realized gain (loss) on investments | 655 | |
Net unrealized appreciation (depreciation) on investments | 2,752 | |
Net Assets, for 10,000 shares outstanding | $ 103,968 | |
Net Asset Value, offering price and redemption price per share ($103,968 ÷ 10,000 shares) | $ 10.40 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 587 |
|
|
|
Expenses | ||
Transfer agent fees | $ 26 | |
Tax expense | 34 |
|
Total expenses before reductions | 60 |
|
Expense reductions | (34) | 26 |
Net investment income (loss) | 561 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 65 | |
Capital gain distributions from underlying funds | 590 |
|
Total net realized gain (loss) |
| 655 |
Change in net unrealized appreciation (depreciation) on underlying funds | 2,752 | |
Net gain (loss) | 3,407 | |
Net increase (decrease) in net assets resulting from operations | $ 3,968 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 561 |
Net realized gain (loss) | 655 |
Change in net unrealized appreciation (depreciation) | 2,752 |
Net increase (decrease) in net assets resulting from operations | 3,968 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 103,968 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $561) | $ 103,968 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .06 |
Net realized and unrealized gain (loss) | .34 |
Total from investment operations | .40 |
Net asset value, end of period | $ 10.40 |
Total Return B, H | 4.00% |
Ratios to Average Net AssetsD, F |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .09% A |
Expenses net of all reductions | .09% A |
Net investment income (loss) | 1.97% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 104 |
Portfolio turnover rate | 1% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2025 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 7.2 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 12.8 |
Strategic Advisers Growth Multi-Manager Fund Class F | 10.7 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 6.5 |
Strategic Advisers Value Multi-Manager Fund Class F | 12.8 |
| 42.8 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 13.5 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 4.2 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.8 |
Fidelity Series Floating Rate High Income Fund Class F | 1.0 |
Fidelity Series Real Estate Income Fund Class F | 0.5 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 6.7 |
| 9.0 |
Inflation-Protected Bond Funds | |
Fidelity Series Inflation-Protected Bond Index Fund Class F | 5.4 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 17.2 |
Short-Term Funds | |
Fidelity Institutional Money Market Portfolio Class F | 0.4 |
Fidelity Short-Term Bond Fund Class F | 0.3 |
| 0.7 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 7.2% |
| |
Domestic Equity Funds | 42.8% |
| |
Developed International Equity Funds | 13.5% |
| |
Emerging Markets Equity Funds | 4.2% |
| |
High Yield Bond Funds | 9.0% |
| |
Inflation-Protected Bond Funds | 5.4% |
| |
Investment Grade Bond Funds | 17.2% |
| |
Short-Term Funds | 0.7% |
|
Expected | |||
Commodity Funds | 7.3% |
| |
Domestic Equity Funds | 41.1% |
| |
Developed International Equity Funds | 13.6% |
| |
Emerging Markets Equity Funds | 4.0% |
| |
High Yield Bond Funds | 7.3% |
| |
Inflation-Protected Bond Funds | 6.1% |
| |
Investment Grade Bond Funds | 19.5% |
| |
Short-Term Funds | 1.1% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2025 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 50.0% | |||
Shares | Value | ||
Commodity Funds - 7.2% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 869 | $ 7,583 | |
Domestic Equity Funds - 42.8% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 1,072 | 13,418 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 917 | 11,152 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 532 | 6,777 | |
Strategic Advisers Value Multi-Manager Fund Class F | 1,053 | 13,432 | |
TOTAL DOMESTIC EQUITY FUNDS | 44,779 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $49,112) |
| ||
International Equity Funds - 17.7% | |||
|
|
|
|
Developed International Equity Funds - 13.5% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,266 | 14,182 | |
Emerging Markets Equity Funds - 4.2% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 416 | 4,343 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $18,017) |
| ||
Bond Funds - 31.6% | |||
|
|
|
|
High Yield Bond Funds - 9.0% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 74 | 805 | |
Fidelity Series Floating Rate High Income Fund Class F | 96 | 1,018 | |
| |||
Shares | Value | ||
Fidelity Series Real Estate Income Fund Class F | 51 | $ 590 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 657 | 7,014 | |
TOTAL HIGH YIELD BOND FUNDS | 9,427 | ||
Inflation-Protected Bond Funds - 5.4% | |||
Fidelity Series Inflation-Protected Bond Index Fund Class F | 497 | 5,663 | |
Investment Grade Bond Funds - 17.2% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 1,790 | 18,061 | |
TOTAL BOND FUNDS (Cost $33,341) |
| ||
Short-Term Funds - 0.7% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Class F | 414 | 414 | |
Fidelity Short-Term Bond Fund Class F | 40 | 342 | |
TOTAL SHORT-TERM FUNDS (Cost $755) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,225) | 104,794 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (24) | ||
NET ASSETS - 100% | $ 104,770 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2025 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,225) - See accompanying schedule | $ 104,794 | |
Receivable from investment adviser for expense reductions | 34 | |
Total assets | 104,828 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 50 | |
Transfer agent fee payable | 8 | |
Total liabilities | 58 | |
|
|
|
Net Assets | $ 104,770 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 594 | |
Accumulated undistributed net realized gain (loss) on investments | 607 | |
Net unrealized appreciation (depreciation) on investments | 3,569 | |
Net Assets, for 10,000 shares outstanding | $ 104,770 | |
Net Asset Value, offering price and redemption price per share ($104,770 ÷ 10,000 shares) | $ 10.48 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 620 |
|
|
|
Expenses | ||
Transfer agent fees | $ 26 | |
Tax expense | 34 |
|
Total expenses before reductions | 60 |
|
Expense reductions | (34) | 26 |
Net investment income (loss) | 594 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 62 | |
Capital gain distributions from underlying funds | 545 |
|
Total net realized gain (loss) |
| 607 |
Change in net unrealized appreciation (depreciation) on underlying funds | 3,569 | |
Net gain (loss) | 4,176 | |
Net increase (decrease) in net assets resulting from operations | $ 4,770 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 594 |
Net realized gain (loss) | 607 |
Change in net unrealized appreciation (depreciation) | 3,569 |
Net increase (decrease) in net assets resulting from operations | 4,770 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 104,770 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $594) | $ 104,770 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .06 |
Net realized and unrealized gain (loss) | .42 |
Total from investment operations | .48 |
Net asset value, end of period | $ 10.48 |
Total Return B, H | 4.80% |
Ratios to Average Net Assets D, F |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .09% A |
Expenses net of all reductions | .09% A |
Net investment income (loss) | 2.08% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 105 |
Portfolio turnover rate | 1% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2030 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 7.6 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 13.4 |
Strategic Advisers Growth Multi-Manager Fund Class F | 11.2 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 6.8 |
Strategic Advisers Value Multi-Manager Fund Class F | 13.5 |
| 44.9 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 14.2 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 4.3 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.7 |
Fidelity Series Floating Rate High Income Fund Class F | 0.9 |
Fidelity Series Real Estate Income Fund Class F | 0.5 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 6.8 |
| 8.9 |
Inflation-Protected Bond Funds | |
Fidelity Series Inflation-Protected Bond Index Fund Class F | 2.6 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 17.5 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 7.6% |
| |
Domestic Equity Funds | 44.9% |
| |
Developed International Equity Funds | 14.2% |
| |
Emerging Markets Equity Funds | 4.3% |
| |
High Yield Bond Funds | 8.9% |
| |
Inflation-Protected Bond Funds | 2.6% |
| |
Investment Grade Bond Funds | 17.5% |
|
Expected | |||
Commodity Funds | 7.7% |
| |
Domestic Equity Funds | 43.8% |
| |
Developed International Equity Funds | 14.4% |
| |
Emerging Markets Equity Funds | 4.3% |
| |
High Yield Bond Funds | 7.5% |
| |
Inflation-Protected Bond Funds | 3.1% |
| |
Investment Grade Bond Funds | 19.2% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2030 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 52.5% | |||
Shares | Value | ||
Commodity Funds - 7.6% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 918 | $ 8,014 | |
Domestic Equity Funds - 44.9% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 1,127 | 14,114 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 965 | 11,730 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 560 | 7,130 | |
Strategic Advisers Value Multi-Manager Fund Class F | 1,107 | 14,127 | |
TOTAL DOMESTIC EQUITY FUNDS | 47,101 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $51,696) |
| ||
International Equity Funds - 18.5% | |||
|
|
|
|
Developed International Equity Funds - 14.2% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,329 | 14,888 | |
Emerging Markets Equity Funds - 4.3% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 437 | 4,554 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $18,910) |
| ||
Bond Funds - 29.0% | |||
Shares | Value | ||
High Yield Bond Funds - 8.9% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 74 | $ 805 | |
Fidelity Series Floating Rate High Income Fund Class F | 88 | 936 | |
Fidelity Series Real Estate Income Fund Class F | 46 | 538 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 667 | 7,118 | |
TOTAL HIGH YIELD BOND FUNDS | 9,397 | ||
Inflation-Protected Bond Funds - 2.6% | |||
Fidelity Series Inflation-Protected Bond Index Fund Class F | 236 | 2,693 | |
Investment Grade Bond Funds - 17.5% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 1,820 | 18,359 | |
TOTAL BOND FUNDS (Cost $30,580) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,186) | 105,006 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (23) | ||
NET ASSETS - 100% | $ 104,983 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2030 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,186) - See accompanying schedule | $ 105,006 | |
Receivable from investment adviser for expense reductions | 33 | |
Total assets | 105,039 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 48 | |
Transfer agent fee payable | 8 | |
Total liabilities | 56 | |
|
|
|
Net Assets | $ 104,983 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 612 | |
Accumulated undistributed net realized gain (loss) on investments | 551 | |
Net unrealized appreciation (depreciation) on investments | 3,820 | |
Net Assets, for 10,000 shares outstanding | $ 104,983 | |
Net Asset Value, offering price and redemption price per share ($104,983 ÷ 10,000 shares) | $ 10.50 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 638 |
|
|
|
Expenses | ||
Transfer agent fees | $ 26 | |
Tax expense | 33 |
|
Total expenses before reductions | 59 |
|
Expense reductions | (33) | 26 |
Net investment income (loss) | 612 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 60 | |
Capital gain distributions from underlying funds | 491 |
|
Total net realized gain (loss) |
| 551 |
Change in net unrealized appreciation (depreciation) on underlying funds | 3,820 | |
Net gain (loss) | 4,371 | |
Net increase (decrease) in net assets resulting from operations | $ 4,983 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 612 |
Net realized gain (loss) | 551 |
Change in net unrealized appreciation (depreciation) | 3,820 |
Net increase (decrease) in net assets resulting from operations | 4,983 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 104,983 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $612) | $ 104,983 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .06 |
Net realized and unrealized gain (loss) | .44 |
Total from investment operations | .50 |
Net asset value, end of period | $ 10.50 |
Total Return B, H | 5.00% |
Ratios to Average Net Assets D, F |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .09% A |
Expenses net of all reductions | .09% A |
Net investment income (loss) | 2.14% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 105 |
Portfolio turnover rate | 1% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expense had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2035 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 8.8 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 15.5 |
Strategic Advisers Growth Multi-Manager Fund Class F | 12.8 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 7.8 |
Strategic Advisers Value Multi-Manager Fund Class F | 15.5 |
| 51.6 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 16.3 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 4.9 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.8 |
Fidelity Series Floating Rate High Income Fund Class F | 0.8 |
Fidelity Series Real Estate Income Fund Class F | 0.5 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 6.8 |
| 8.9 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 9.5 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 8.8% |
| |
Domestic Equity Funds | 51.6% |
| |
Developed International Equity Funds | 16.3% |
| |
Emerging Markets Equity Funds | 4.9% |
| |
High Yield Bond Funds | 8.9% |
| |
Investment Grade Bond Funds | 9.5% |
|
Expected | |||
Commodity Funds | 8.8% |
| |
Domestic Equity Funds | 50.0% |
| |
Developed International Equity Funds | 16.5% |
| |
Emerging Markets Equity Funds | 4.9% |
| |
High Yield Bond Funds | 7.5% |
| |
Inflation-Protected Bond Funds | 0.1% |
| |
Investment Grade Bond Funds | 12.2% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2035 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 60.4% | |||
Shares | Value | ||
Commodity Funds - 8.8% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 1,275 | $ 11,132 | |
Domestic Equity Funds - 51.6% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 1,563 | 19,571 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 1,335 | 16,233 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 776 | 9,873 | |
Strategic Advisers Value Multi-Manager Fund Class F | 1,540 | 19,644 | |
TOTAL DOMESTIC EQUITY FUNDS | 65,321 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $71,699) |
| ||
International Equity Funds - 21.2% | |||
|
|
|
|
Developed International Equity Funds - 16.3% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,847 | 20,685 | |
Emerging Markets Equity Funds - 4.9% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 597 | 6,226 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $26,171) |
| ||
Bond Funds - 18.4% | |||
Shares | Value | ||
High Yield Bond Funds - 8.9% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 89 | $ 967 | |
Fidelity Series Floating Rate High Income Fund Class F | 98 | 1,040 | |
Fidelity Series Real Estate Income Fund Class F | 51 | 593 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 809 | 8,629 | |
TOTAL HIGH YIELD BOND FUNDS | 11,229 | ||
Investment Grade Bond Funds - 9.5% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 1,193 | 12,041 | |
TOTAL BOND FUNDS (Cost $23,253) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $121,123) | 126,634 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (31) | ||
NET ASSETS - 100% | $ 126,603 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2035 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $121,123) - See accompanying schedule | $ 126,634 | |
Receivable from investment adviser for expense reductions | 33 | |
Total assets | 126,667 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 53 | |
Transfer agent fee payable | 11 | |
Total liabilities | 64 | |
|
|
|
Net Assets | $ 126,603 | |
Net Assets consist of: |
| |
Paid in capital | $ 120,000 | |
Undistributed net investment income | 617 | |
Accumulated undistributed net realized gain (loss) on investments | 475 | |
Net unrealized appreciation (depreciation) on investments | 5,511 | |
Net Assets, for 11,984 shares outstanding | $ 126,603 | |
Net Asset Value, offering price and redemption price per share ($126,603 ÷ 11,984 shares) | $ 10.56 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 649 |
|
|
|
Expenses | ||
Transfer agent fees | $ 35 | |
Tax expense | 32 |
|
Total expenses before reductions | 67 | |
Expense reductions | (35) | 32 |
Net investment income (loss) | 617 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 49 | |
Capital gain distributions from underlying funds | 426 |
|
Total net realized gain (loss) |
| 475 |
Change in net unrealized appreciation (depreciation) on underlying funds | 5,511 | |
Net gain (loss) | 5,986 | |
Net increase (decrease) in net assets resulting from operations | $ 6,603 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 617 |
Net realized gain (loss) | 475 |
Change in net unrealized appreciation (depreciation) | 5,511 |
Net increase (decrease) in net assets resulting from operations | 6,603 |
Share transactions | 120,000 |
Total increase (decrease) in net assets | 126,603 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $617) | $ 126,603 |
Other Information Shares | |
Sold | 11,984 |
Financial Highlights
Period ended March 31, | 2013 F |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .05 |
Net realized and unrealized gain (loss) | .51 |
Total from investment operations | .56 |
Net asset value, end of period | $ 10.56 |
Total Return B, C | 5.60% |
Ratios to Average Net Assets E, G |
|
Expenses before reductions | .20% A |
Expenses net of fee waivers, if any | .10% A |
Expenses net of all reductions | .10% A |
Net investment income (loss) | 1.84% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 127 |
Portfolio turnover rate | 1% H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F For the period December 20, 2012 (commencement of operations) to March 31, 2013.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
H Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2040 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 8.9 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 15.7 |
Strategic Advisers Growth Multi-Manager Fund Class F | 13.1 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 8.0 |
Strategic Advisers Value Multi-Manager Fund Class F | 15.7 |
| 52.5 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 16.5 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 5.0 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.8 |
Fidelity Series Floating Rate High Income Fund Class F | 0.8 |
Fidelity Series Real Estate Income Fund Class F | 0.4 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 6.9 |
| 8.9 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 8.2 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 8.9% |
| |
Domestic Equity Funds | 52.5% |
| |
Developed International Equity Funds | 16.5% |
| |
Emerging Markets Equity Funds | 5.0% |
| |
High Yield Bond Funds | 8.9% |
| |
Investment Grade Bond Funds | 8.2% |
|
Expected | |||
Commodity Funds | 9.1% |
| |
Domestic Equity Funds | 51.5% |
| |
Developed International Equity Funds | 17.0% |
| |
Emerging Markets Equity Funds | 5.0% |
| |
High Yield Bond Funds | 7.5% |
| |
Investment Grade Bond Funds | 9.9% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2040 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 61.4% | |||
Shares | Value | ||
Commodity Funds - 8.9% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 1,081 | $ 9,435 | |
Domestic Equity Funds - 52.5% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 1,327 | 16,616 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 1,135 | 13,803 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 660 | 8,402 | |
Strategic Advisers Value Multi-Manager Fund Class F | 1,304 | 16,642 | |
TOTAL DOMESTIC EQUITY FUNDS | 55,463 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $60,872) |
| ||
International Equity Funds - 21.5% | |||
|
|
|
|
Developed International Equity Funds - 16.5% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,556 | 17,424 | |
Emerging Markets Equity Funds - 5.0% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 512 | 5,340 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $22,143) |
| ||
Bond Funds - 17.1% | |||
Shares | Value | ||
High Yield Bond Funds - 8.9% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 74 | $ 805 | |
Fidelity Series Floating Rate High Income Fund Class F | 74 | 782 | |
Fidelity Series Real Estate Income Fund Class F | 39 | 453 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 687 | 7,331 | |
TOTAL HIGH YIELD BOND FUNDS | 9,371 | ||
Investment Grade Bond Funds - 8.2% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 864 | 8,721 | |
TOTAL BOND FUNDS (Cost $18,073) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,088) | 105,754 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (25) | ||
NET ASSETS - 100% | $ 105,729 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2040 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,088) - See accompanying schedule | $ 105,754 | |
Receivable from investment adviser for expense reductions | 32 | |
Total assets | 105,786 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 49 | |
Transfer agent fee payable | 8 | |
Total liabilities | 57 | |
|
|
|
Net Assets | $ 105,729 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 586 | |
Accumulated undistributed net realized gain (loss) on investments | 477 | |
Net unrealized appreciation (depreciation) on investments | 4,666 | |
Net Assets, for 10,000 shares outstanding | $ 105,729 | |
Net Asset Value, offering price and redemption price per share ($105,729 ÷ 10,000 shares) | $ 10.57 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 613 |
|
|
|
Expenses | ||
Transfer agent fees | $ 28 | |
Tax expense | 32 |
|
Total expenses before reductions | 60 | |
Expense reductions | (33) | 27 |
Net investment income (loss) | 586 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 54 | |
Capital gain distributions from underlying funds | 423 |
|
Total net realized gain (loss) |
| 477 |
Change in net unrealized appreciation (depreciation) on underlying funds | 4,666 | |
Net gain (loss) | 5,143 | |
Net increase (decrease) in net assets resulting from operations | $ 5,729 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 586 |
Net realized gain (loss) | 477 |
Change in net unrealized appreciation (depreciation) | 4,666 |
Net increase (decrease) in net assets resulting from operations | 5,729 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 105,729 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $586) | $ 105,729 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 F |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .06 |
Net realized and unrealized gain (loss) | .51 |
Total from investment operations | .57 |
Net asset value, end of period | $ 10.57 |
Total Return B, C | 5.70% |
Ratios to Average Net Assets E, G |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .10% A |
Expenses net of all reductions | .10% A |
Net investment income (loss) | 2.04% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 106 |
Portfolio turnover rate | 1% H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F For the period December 20, 2012 (commencement of operations) to March 31, 2013.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
H Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2045 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 9.3 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 16.1 |
Strategic Advisers Growth Multi-Manager Fund Class F | 13.4 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 8.2 |
Strategic Advisers Value Multi-Manager Fund Class F | 16.1 |
| 53.8 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 16.9 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of Funds Class F | 5.1 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.7 |
Fidelity Series Floating Rate High Income Fund Class F | 0.4 |
Fidelity Series Real Estate Income Fund Class F | 0.4 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 8.9 |
| 10.4 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 4.5 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 9.3% |
| |
Domestic Equity Funds | 53.8% |
| |
Developed International Equity Funds | 16.9% |
| |
Emerging Markets Equity Funds | 5.1% |
| |
High Yield Bond Funds | 10.4% |
| |
Investment Grade Bond Funds | 4.5% |
|
Expected | |||
Commodity Funds | 9.3% |
| |
Domestic Equity Funds | 52.7% |
| |
Developed International Equity Funds | 17.4% |
| |
Emerging Markets Equity Funds | 5.2% |
| |
High Yield Bond Funds | 9.6% |
| |
Investment Grade Bond Funds | 5.8% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2045 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 63.1% | |||
Shares | Value | ||
Commodity Funds - 9.3% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 1,128 | $ 9,848 | |
Domestic Equity Funds - 53.8% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 1,363 | 17,065 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 1,166 | 14,177 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 678 | 8,631 | |
Strategic Advisers Value Multi-Manager Fund Class F | 1,340 | 17,093 | |
TOTAL DOMESTIC EQUITY FUNDS | 56,966 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $62,680) |
| ||
International Equity Funds - 22.0% | |||
|
|
|
|
Developed International Equity Funds - 16.9% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,596 | 17,882 | |
Emerging Markets Equity Funds - 5.1% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 525 | 5,471 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $22,711) |
| ||
Bond Funds - 14.9% | |||
Shares | Value | ||
High Yield Bond Funds - 10.4% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 74 | $ 805 | |
Fidelity Series Floating Rate High Income Fund Class F | 37 | 391 | |
Fidelity Series Real Estate Income Fund Class F | 33 | 390 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 880 | 9,387 | |
TOTAL HIGH YIELD BOND FUNDS | 10,973 | ||
Investment Grade Bond Funds - 4.5% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 475 | 4,790 | |
TOTAL BOND FUNDS (Cost $15,689) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,080) | 105,930 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (26) | ||
NET ASSETS - 100% | $ 105,904 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2045 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,080) - See accompanying schedule | $ 105,930 | |
Receivable from investment adviser for expense reductions | 32 | |
Total assets | 105,962 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 50 | |
Transfer agent fee payable | 8 | |
Total liabilities | 58 | |
|
|
|
Net Assets | $ 105,904 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 591 | |
Accumulated undistributed net realized gain (loss) on investments | 463 | |
Net unrealized appreciation (depreciation) on investments | 4,850 | |
Net Assets, for 10,000 shares outstanding | $ 105,904 | |
Net Asset Value, offering price and redemption price per share ($105,904 ÷ 10,000 shares) | $ 10.59 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 619 |
|
|
|
Expenses | ||
Transfer agent fees | $ 28 | |
Tax expense | 32 |
|
Total expenses before reductions | 60 |
|
Expense reductions | (32) | 28 |
Net investment income (loss) | 591 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 51 | |
Capital gain distributions from underlying funds | 412 |
|
Total net realized gain (loss) |
| 463 |
Change in net unrealized appreciation (depreciation) on underlying funds | 4,850 | |
Net gain (loss) | 5,313 | |
Net increase (decrease) in net assets resulting from operations | $ 5,904 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 591 |
Net realized gain (loss) | 463 |
Change in net unrealized appreciation (depreciation) | 4,850 |
Net increase (decrease) in net assets resulting from operations | 5,904 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 105,904 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $591) | $ 105,904 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 E |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) C | .06 |
Net realized and unrealized gain (loss) | .53 |
Total from investment operations | .59 |
Net asset value, end of period | $ 10.59 |
Total Return B, H | 5.90% |
Ratios to Average Net Assets D, F |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .10% A |
Expenses net of all reductions | .10% A |
Net investment income (loss) | 2.05% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 106 |
Portfolio turnover rate | 1% G |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E For the period December 20, 2012 (commencement of operations) to March 31, 2013.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
G Amount not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2050 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 9.3 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 16.3 |
Strategic Advisers Growth Multi-Manager Fund Class F | 13.6 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 8.3 |
Strategic Advisers Value Multi-Manager Fund Class F | 16.3 |
| 54.5 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 17.1 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of FundsClass F | 5.3 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.8 |
Fidelity Series Floating Rate High Income Fund Class F | 0.1 |
Fidelity Series Real Estate Income Fund Class F | 0.3 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 9.1 |
| 10.3 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 3.5 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 9.3% |
| |
Domestic Equity Funds | 54.5% |
| |
Developed International Equity Funds | 17.1% |
| |
Emerging Markets Equity Funds | 5.3% |
| |
High Yield Bond Funds | 10.3% |
| |
Investment Grade Bond Funds | 3.5% |
|
Expected | |||
Commodity Funds | 9.4% |
| |
Domestic Equity Funds | 53.1% |
| |
Developed International Equity Funds | 17.6% |
| |
Emerging Markets Equity Funds | 5.2% |
| |
High Yield Bond Funds | 10.0% |
| |
Investment Grade Bond Funds | 4.7% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2050 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 63.8% | |||
Shares | Value | ||
Commodity Funds - 9.3% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 1,130 | $ 9,862 | |
Domestic Equity Funds - 54.5% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 1,383 | 17,311 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 1,183 | 14,384 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 688 | 8,753 | |
Strategic Advisers Value Multi-Manager Fund Class F | 1,359 | 17,337 | |
TOTAL DOMESTIC EQUITY FUNDS | 57,785 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $63,453) |
| ||
International Equity Funds - 22.4% | |||
|
|
|
|
Developed International Equity Funds - 17.1% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,622 | 18,162 | |
Emerging Markets Equity Funds - 5.3% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 533 | 5,562 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $23,075) |
| ||
Bond Funds - 13.8% | |||
Shares | Value | ||
High Yield Bond Funds - 10.3% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 74 | $ 805 | |
Fidelity Series Floating Rate High Income Fund Class F | 11 | 113 | |
Fidelity Series Real Estate Income Fund Class F | 30 | 348 | |
Strategic Advisers Income Opportunities Fund of Funds Class F | 908 | 9,691 | |
TOTAL HIGH YIELD BOND FUNDS | 10,957 | ||
Investment Grade Bond Funds - 3.5% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 365 | 3,683 | |
TOTAL BOND FUNDS (Cost $14,552) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,080) | 106,011 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (24) | ||
NET ASSETS - 100% | $ 105,987 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2050 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,080) - See accompanying schedule | $ 106,011 | |
Receivable from investment adviser for expense reductions | 32 | |
Total assets | 106,043 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 47 | |
Transfer agent fee payable | 9 | |
Total liabilities | 56 | |
|
|
|
Net Assets | $ 105,987 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 589 | |
Accumulated undistributed net realized gain (loss) on investments | 467 | |
Net unrealized appreciation (depreciation) on investments | 4,931 | |
Net Assets, for 10,000 shares outstanding | $ 105,987 | |
Net Asset Value, offering price and redemption price per share ($105,987 ÷ 10,000 shares) | $ 10.60 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 616 |
|
|
|
Expenses | ||
Transfer agent fees | $ 28 | |
Tax expense | 32 |
|
Total expenses before reductions | 60 | |
Expense reductions | (33) | 27 |
Net investment income (loss) | 589 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 57 | |
Capital gain distributions from underlying funds | 410 |
|
Total net realized gain (loss) |
| 467 |
Change in net unrealized appreciation (depreciation) on underlying funds | 4,931 | |
Net gain (loss) | 5,398 | |
Net increase (decrease) in net assets resulting from operations | $ 5,987 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 589 |
Net realized gain (loss) | 467 |
Change in net unrealized appreciation (depreciation) | 4,931 |
Net increase (decrease) in net assets resulting from operations | 5,987 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 105,987 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $589) | $ 105,987 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 F |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .06 |
Net realized and unrealized gain (loss) | .54 |
Total from investment operations | .60 |
Net asset value, end of period | $ 10.60 |
Total Return B, C | 6.00% |
Ratios to Average Net Assets E, G |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .10% A |
Expenses net of all reductions | .10% A |
Net investment income (loss) | 2.04% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 106 |
Portfolio turnover rate | 1% H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F For the period December 20, 2012 (commencement of operations) to March 31, 2013.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
H Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2055 Fund
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of March 31, 2013 | |
| % of fund's |
Commodity Funds | |
Fidelity Series Commodity Strategy Fund Class F | 9.8 |
Domestic Equity Funds | |
Strategic Advisers Core Multi-Manager Fund Class F | 17.0 |
Strategic Advisers Growth Multi-Manager Fund Class F | 14.2 |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 8.6 |
Strategic Advisers Value Multi-Manager Fund Class F | 17.0 |
| 56.8 |
Developed International Equity Funds | |
Strategic Advisers International Multi-Manager Fund Class F | 17.8 |
Emerging Markets Equity Funds | |
Strategic Advisers Emerging Markets Fund of FundsClass F | 5.4 |
High Yield Bond Funds | |
Fidelity Series Emerging Markets Debt Fund Class F | 0.7 |
Fidelity Series Real Estate Income Fund Class F | 0.3 |
Strategic Advisers Income Opportunities Fund of Funds Class F | 8.9 |
| 9.9 |
Investment Grade Bond Funds | |
Strategic Advisers Core Income Multi-Manager Fund Class F | 0.3 |
Net Other Assets (Liabilities)* | 0.0 |
| 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) | |||
Period end | |||
Commodity Funds | 9.8% |
| |
Domestic Equity Funds | 56.8% |
| |
Developed International Equity Funds | 17.8% |
| |
Emerging Markets Equity Funds | 5.4% |
| |
High Yield Bond Funds | 9.9% |
| |
Investment Grade Bond Funds | 0.3% |
|
Expected | |||
Commodity Funds | 9.8% |
| |
Domestic Equity Funds | 55.8% |
| |
Developed International Equity Funds | 18.4% |
| |
Emerging Markets Equity Funds | 5.5% |
| |
High Yield Bond Funds | 10.0% |
| |
Investment Grade Bond Funds | 0.5% |
|
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The current allocation is based on the fund's holdings as of March 31, 2013. The expected allocation represents the fund's anticipated allocation at September 30, 2013. |
Annual Report
Strategic Advisers Multi-Manager 2055 Fund
Investments March 31, 2013
Showing Percentage of Net Assets
Domestic Equity Funds - 66.6% | |||
Shares | Value | ||
Commodity Funds - 9.8% | |||
Fidelity Series Commodity Strategy Fund Class F (a) | 1,189 | $ 10,380 | |
Domestic Equity Funds - 56.8% | |||
Strategic Advisers Core Multi-Manager Fund Class F | 1,443 | 18,068 | |
Strategic Advisers Growth Multi-Manager Fund Class F | 1,234 | 15,007 | |
Strategic Advisers Small-Mid Cap Multi-Manager Fund Class F | 719 | 9,149 | |
Strategic Advisers Value Multi-Manager Fund Class F | 1,417 | 18,083 | |
TOTAL DOMESTIC EQUITY FUNDS | 60,307 | ||
TOTAL DOMESTIC EQUITY FUNDS (Cost $66,310) |
| ||
International Equity Funds - 23.2% | |||
|
|
|
|
Developed International Equity Funds - 17.8% | |||
Strategic Advisers International Multi-Manager Fund Class F | 1,687 | 18,898 | |
Emerging Markets Equity Funds - 5.4% | |||
Strategic Advisers Emerging Markets Fund of Funds Class F | 555 | 5,784 | |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $24,005) |
| ||
Bond Funds - 10.2% | |||
Shares | Value | ||
High Yield Bond Funds - 9.9% | |||
Fidelity Series Emerging Markets Debt Fund Class F | 74 | $ 805 | |
Fidelity Series Real Estate Income Fund Class F | 26 | 306 | |
Strategic Advisers Income Opportunities Fund of FundsClass F | 882 | 9,411 | |
TOTAL HIGH YIELD BOND FUNDS | 10,522 | ||
Investment Grade Bond Funds - 0.3% | |||
Strategic Advisers Core Income Multi-Manager Fund Class F | 31 | 311 | |
TOTAL BOND FUNDS (Cost $10,719) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $101,034) | 106,202 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (5) | ||
NET ASSETS - 100% | $ 106,197 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Strategic Advisers Multi-Manager 2055 Fund
Financial Statements
Statement of Assets and Liabilities
| March 31, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (cost $101,034) - See accompanying schedule | $ 106,202 | |
Receivable for investments sold | 18 | |
Receivable from investment adviser for expense reductions | 32 | |
Total assets | 106,252 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 46 | |
Transfer agent fee payable | 9 | |
Total liabilities | 55 | |
|
|
|
Net Assets | $ 106,197 | |
Net Assets consist of: |
| |
Paid in capital | $ 100,000 | |
Undistributed net investment income | 572 | |
Accumulated undistributed net realized gain (loss) on investments | 457 | |
Net unrealized appreciation (depreciation) on investments | 5,168 | |
Net Assets, for 10,000 shares outstanding | $ 106,197 | |
Net Asset Value, offering price and redemption price per share ($106,197 ÷ 10,000 shares) | $ 10.62 |
Statement of Operations
| For the period December 20, 2012 | |
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 600 |
|
|
|
Expenses | ||
Transfer agent fees | $ 29 | |
Tax expense | 32 |
|
Total expenses before reductions | 61 | |
Expense reductions | (33) | 28 |
Net investment income (loss) | 572 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 53 | |
Capital gain distributions from underlying funds | 404 |
|
Total net realized gain (loss) |
| 457 |
Change in net unrealized appreciation (depreciation) on underlying funds | 5,168 | |
Net gain (loss) | 5,625 | |
Net increase (decrease) in net assets resulting from operations | $ 6,197 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 572 |
Net realized gain (loss) | 457 |
Change in net unrealized appreciation (depreciation) | 5,168 |
Net increase (decrease) in net assets resulting from operations | 6,197 |
Share transactions | 100,000 |
Total increase (decrease) in net assets | 106,197 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $572) | $ 106,197 |
Other Information Shares | |
Sold | 10,000 |
Financial Highlights
Period ended March 31, | 2013 F |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .06 |
Net realized and unrealized gain (loss) | .56 |
Total from investment operations | .62 |
Net asset value, end of period | $ 10.62 |
Total Return B, C | 6.20% |
Ratios to Average Net Assets E, G |
|
Expenses before reductions | .21% A |
Expenses net of fee waivers, if any | .10% A |
Expenses net of all reductions | .10% A |
Net investment income (loss) | 1.98% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 106 |
Portfolio turnover rate | 1% H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F For the period December 20, 2012 (commencement of operations) to March 31, 2013.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
H Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended March 31, 2013
1. Organization.
Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund (the Funds) are funds of Fidelity Boylston Street Trust (the Trust). The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware statutory trust. Each Fund is authorized to issue an unlimited number of shares. The Funds may invest primarily in affiliated and unaffiliated mutual funds (the Underlying Funds). The Funds are available only to certain employer-sponsored retirement plans and Fidelity brokerage or mutual fund accounts.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with the Underlying Funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. During the period, each Fund accrued excise taxes on undistributed net investment income and undistributed short-term capital gains which is included in Tax expense on each Statement of Operations. As of March 31, 2013, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds.
Annual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized | Gross unrealized | Net unrealized |
Strategic Advisers Multi-Manager Income Fund | $ 100,983 | $ 1,276 | $ (529) | $ 747 |
Strategic Advisers Multi-Manager 2005 Fund | 101,032 | 2,120 | (473) | 1,647 |
Strategic Advisers Multi-Manager 2010 Fund | 101,204 | 2,867 | (554) | 2,313 |
Strategic Advisers Multi-Manager 2015 Fund | 101,228 | 2,983 | (562) | 2,421 |
Strategic Advisers Multi-Manager 2020 Fund | 101,238 | 3,278 | (526) | 2,752 |
Strategic Advisers Multi-Manager 2025 Fund | 101,225 | 4,003 | (434) | 3,569 |
Strategic Advisers Multi-Manager 2030 Fund | 101,186 | 4,200 | (380) | 3,820 |
Strategic Advisers Multi-Manager 2035 Fund | 121,123 | 5,788 | (277) | 5,511 |
Strategic Advisers Multi-Manager 2040 Fund | 101,088 | 4,909 | (243) | 4,666 |
Strategic Advisers Multi-Manager 2045 Fund | 101,080 | 5,056 | (206) | 4,850 |
Strategic Advisers Multi-Manager 2050 Fund | 101,080 | 5,126 | (195) | 4,931 |
Strategic Advisers Multi-Manager 2055 Fund | 101,034 | 5,334 | (166) | 5,168 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed | Undistributed | Net unrealized |
Strategic Advisers Multi-Manager Income Fund | $ 596 | $ 64 | $ 747 |
Strategic Advisers Multi-Manager 2005 Fund | 958 | 62 | 1,647 |
Strategic Advisers Multi-Manager 2010 Fund | 1,118 | 74 | 2,313 |
Strategic Advisers Multi-Manager 2015 Fund | 1,130 | 75 | 2,421 |
Strategic Advisers Multi-Manager 2020 Fund | 1,145 | 71 | 2,752 |
Strategic Advisers Multi-Manager 2025 Fund | 1,136 | 65 | 3,569 |
Strategic Advisers Multi-Manager 2030 Fund | 1,108 | 55 | 3,820 |
Strategic Advisers Multi-Manager 2035 Fund | 1,042 | 50 | 5,511 |
Strategic Advisers Multi-Manager 2040 Fund | 1,013 | 50 | 4,666 |
Strategic Advisers Multi-Manager 2045 Fund | 1,004 | 50 | 4,850 |
Strategic Advisers Multi-Manager 2050 Fund | 1,006 | 50 | 4,931 |
Strategic Advisers Multi-Manager 2055 Fund | 978 | 51 | 5,168 |
The tax character of distributions paid was as follows:
March 31, 2013 |
|
| Ordinary Income |
Strategic Advisers Multi-Manager Income Fund | $ 310 |
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
Strategic Advisers Multi-Manager Income Fund | 101,367 | 410 |
Strategic Advisers Multi-Manager 2005 Fund | 101,938 | 963 |
Strategic Advisers Multi-Manager 2010 Fund | 102,118 | 972 |
Strategic Advisers Multi-Manager 2015 Fund | 102,130 | 958 |
Strategic Advisers Multi-Manager 2020 Fund | 102,313 | 1,141 |
Strategic Advisers Multi-Manager 2025 Fund | 102,266 | 1,106 |
Strategic Advisers Multi-Manager 2030 Fund | 102,164 | 1,040 |
Strategic Advisers Multi-Manager 2035 Fund | 121,896 | 823 |
Strategic Advisers Multi-Manager 2040 Fund | 101,926 | 893 |
Strategic Advisers Multi-Manager 2045 Fund | 101,885 | 858 |
Strategic Advisers Multi-Manager 2050 Fund | 101,977 | 956 |
Strategic Advisers Multi-Manager 2055 Fund | 101,797 | 815 |
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), an affiliate of Fidelity Management & Research Company (FMR), provides the Funds with investment management related services. The Funds do not pay any fees for these services.
Other Transactions. Strategic Advisers has entered into an administration agreement with FMR under which FMR provides management and administrative services (other than investment advisory services) necessary for the operation of each Fund. Pursuant to this agreement, FMR pays all expenses of each Fund, excluding the transfer agent fees, the compensation of the independent Trustees and certain other expenses such as interest expense. FMR also contracts with other Fidelity companies to perform the services necessary for the operation of each Fund. The Funds do not pay any fees for these services.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of Strategic Advisers, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets:
Strategic Advisers Multi-Manager Income Fund | .06% |
Strategic Advisers Multi-Manager 2005 Fund | .06% |
Strategic Advisers Multi-Manager 2010 Fund | .06% |
Strategic Advisers Multi-Manager 2015 Fund | .09% |
Strategic Advisers Multi-Manager 2020 Fund | .09% |
Strategic Advisers Multi-Manager 2025 Fund | .09% |
Strategic Advisers Multi-Manager 2030 Fund | .09% |
Strategic Advisers Multi-Manager 2035 Fund | .10% |
Strategic Advisers Multi-Manager 2040 Fund | .10% |
Strategic Advisers Multi-Manager 2045 Fund | .10% |
Strategic Advisers Multi-Manager 2050 Fund | .10% |
Strategic Advisers Multi-Manager 2055 Fund | .10% |
5. Expense Reductions.
Strategic Advisers contractually agreed to reimburse each Fund to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through May 31, 2014. Some expenses, for example interest expense, are excluded from this reimbursement.
The following Funds were in reimbursement during the period:
| Expense Limitations | Reimbursement |
Strategic Advisers Multi-Manager 2035 Fund | .10% | $ 3 |
Strategic Advisers Multi-Manager 2040 Fund | .10% | 1 |
Strategic Advisers Multi-Manager 2050 Fund | .10% | 1 |
Strategic Advisers Multi-Manager 2055 Fund | .10% | 1 |
In addition, Strategic Advisers agreed to reimburse the Funds' tax expense in the amounts:
| Reimbursement |
Strategic Advisers Multi-Manager Income Fund | $ 25 |
Strategic Advisers Multi-Manager 2005 Fund | 27 |
Strategic Advisers Multi-Manager 2010 Fund | 33 |
Strategic Advisers Multi-Manager 2015 Fund | 34 |
Strategic Advisers Multi-Manager 2020 Fund | 34 |
Strategic Advisers Multi-Manager 2025 Fund | 34 |
Strategic Advisers Multi-Manager 2030 Fund | 33 |
Strategic Advisers Multi-Manager 2035 Fund | 32 |
Strategic Advisers Multi-Manager 2040 Fund | 32 |
Strategic Advisers Multi-Manager 2045 Fund | 32 |
Strategic Advisers Multi-Manager 2050 Fund | 32 |
Strategic Advisers Multi-Manager 2055 Fund | 32 |
Annual Report
6. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers or its affiliates were the owners of record of 100% of the total outstanding shares of the Funds.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Boylston Street Trust and the Shareholders of Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund:
We have audited the accompanying statements of assets and liabilities of Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund (the Funds), each a fund of Fidelity Boylston Street Trust, including the schedules of investments, as of March 31, 2013, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the period from December 20, 2012 (commencement of operations) to March 31, 2013. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2013, by correspondence with the custodians. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund as of March 31, 2013, the results of their operations, the changes in their net assets, and the financial highlights for the period from December 20, 2012 (commencement of operations) to March 31, 2013, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 21, 2013
Annual Report
Trustees and Officers
The Trustees and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each Strategic Advisers Multi-Manager Target Date Fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each Strategic Advisers Multi-Manager Target Date Fund's activities, review contractual arrangements with companies that provide services to each Strategic Advisers Multi-Manager Target Date Fund, oversee management of the risks associated with such activities and contractual arrangements, and review each Strategic Advisers Multi-Manager Target Date Fund's performance. If the interests of a Strategic Advisers Multi-Manager Target Date Fund and an underlying Fidelity fund were to diverge, a conflict of interest could arise and affect how the Trustees fulfill their fiduciary duties to the affected funds. Strategic Advisers has structured the Strategic Advisers Multi-Manager Target Date Funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, Strategic Advisers and the Trustees would take reasonable steps to minimize and, if possible, eliminate the conflict. Except for Elizabeth S. Acton and James C. Curvey, each of the Trustees oversees 219 funds advised by FMR or an affiliate. Ms. Acton oversees 201 funds advised by FMR or an affiliate. Mr. Curvey oversees 453 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person of the trust and the funds (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5095 (plan accounts) or 1-800-544-3455 (all other accounts).
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Abigail P. Johnson (1961) | |
| Year of Election or Appointment: 2009 Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
James C. Curvey (1935) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co. (2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
| Year of Election or Appointment: 2013 Ms. Acton is Trustee of certain Trusts. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (November 2011-April 2012), Executive Vice President, Chief Financial Officer (April 2002-November 2011), and Treasurer (May 2004-May 2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
Albert R. Gamper, Jr. (1942) | |
| Year of Election or Appointment: 2007 Mr. Gamper is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2012-present). Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Barnabas Health Care System. Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
| Year of Election or Appointment: 2010 Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
| Year of Election or Appointment: 2008 Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
| Year of Election or Appointment: 2009 Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S. mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
| Year of Election or Appointment: 2007 Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
| Year of Election or Appointment: 2001 Ms. Knowles is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2012-present). Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present). Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007). |
Kenneth L. Wolfe (1939) | |
| Year of Election or Appointment: 2007 Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). Mr. Wolfe previously served as Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-2012). |
Annual Report
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Executive Officers:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupation | |
Stephanie J. Dorsey (1969) | |
| Year of Election or Appointment: 2013 President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously, Ms. Dorsey served as Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds (2008-2013), Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Charles S. Morrison (1960) | |
| Year of Election or Appointment: 2012 Vice President of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Morrison also serves as President, Fixed Income and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Fixed Income Division. |
Derek L. Young (1964) | |
| Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds. Mr. Young is also a Trustee of other investment companies advised by Strategic Advisers, Inc. (Strategic Advisers) (2012-present), President and a Director of Strategic Advisers (2011-present), President of Fidelity Global Asset Allocation (GAA) (2011-present), and Vice Chairman of Pyramis Global Advisors LLC (2011-present). Previously, Mr. Young served as Chief Investment Officer of GAA (2009-2011) and as a portfolio manager. |
Andrew Windmueller (1960) | |
| Year of Election or Appointment: 2012 Vice President of Fidelity's Asset Allocation Funds. Mr. Windmueller also serves as Chief Investment Officer of Strategic Advisers, Inc. (2011-present), Chief Investment Officer for Global Asset Allocation Multi-Asset Class Strategies (2011-present), and is an employee of Fidelity Investments (2000-present). |
Scott C. Goebel (1968) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
Ramon Herrera (1974) | |
| Year of Election or Appointment: 2012 Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Herrera also serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2004-present). |
Elizabeth Paige Baumann (1968) | |
| Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Baumann also serves as AML Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2012-present), Chief AML Officer of FMR LLC (2012-present), and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Christine Reynolds (1958) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Michael H. Whitaker (1967) | |
| Year of Election or Appointment: 2008 Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
| Year of Election or Appointment: 2011 Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Stephen Sadoski (1971) | |
| Year of Election or Appointment: 2013 Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Sadoski also serves as Deputy Treasurer of other Fidelity funds (2012-present) and is an employee of Fidelity Investments (2012-present). Previously, Mr. Sadoski served as Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds (2012-2013), an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche (1997-2009). |
Adrien E. Deberghes (1967) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President and Assistant Treasurer (2011-present) and Deputy Treasurer (2008-present) of other Fidelity funds, and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Kenneth B. Robins (1969) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008). |
Gary W. Ryan (1958) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Jonathan Davis (1968) | |
| Year of Election or Appointment: 2010 Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Fund | Pay Date | Record Date | Dividends | Capital Gains |
Strategic Advisers Multi-Manager Income Fund | 05/06/13 | 05/03/13 | $0.011 | $0.055 |
Strategic Advisers Multi-Manager 2005 Fund | 05/13/13 | 05/10/13 | $0.046 | $0.057 |
Strategic Advisers Multi-Manager 2010 Fund | 05/13/13 | 05/10/13 | $0.053 | $0.068 |
Strategic Advisers Multi-Manager 2015 Fund | 05/13/13 | 05/10/13 | $0.054 | $0.068 |
Strategic Advisers Multi-Manager 2020 Fund | 05/13/13 | 05/10/13 | $0.043 | $0.051 |
Strategic Advisers Multi-Manager 2025 Fund | 05/13/13 | 05/10/13 | $0.060 | $0.061 |
Strategic Advisers Multi-Manager 2030 Fund | 05/13/13 | 05/10/13 | $0.059 | $0.054 |
Strategic Advisers Multi-Manager 2035 Fund | 05/13/13 | 05/10/13 | $0.050 | $0.040 |
Strategic Advisers Multi-Manager 2040 Fund | 05/13/13 | 05/10/13 | $0.055 | $0.045 |
Strategic Advisers Multi-Manager 2045 Fund | 05/13/13 | 05/10/13 | $0.059 | $0.047 |
Strategic Advisers Multi-Manager 2050 Fund | 05/13/13 | 05/10/13 | $0.059 | $0.048 |
Strategic Advisers Multi-Manager 2055 Fund | 05/13/13 | 05/10/13 | $0.056 | $0.046 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended March 31, 2013, or, if subsequently determined to be different, the net capital gain of such year.
Fund | |
Strategic Advisers Multi-Manager Income Fund | $64 |
Strategic Advisers Multi-Manager 2005 Fund | $62 |
Strategic Advisers Multi-Manager 2010 Fund | $74 |
Strategic Advisers Multi-Manager 2015 Fund | $75 |
Strategic Advisers Multi-Manager 2020 Fund | $71 |
Strategic Advisers Multi-Manager 2025 Fund | $65 |
Strategic Advisers Multi-Manager 2030 Fund | $55 |
Strategic Advisers Multi-Manager 2035 Fund | $50 |
Strategic Advisers Multi-Manager 2040 Fund | $50 |
Strategic Advisers Multi-Manager 2045 Fund | $50 |
Strategic Advisers Multi-Manager 2050 Fund | $50 |
Strategic Advisers Multi-Manager 2055 Fund | $51 |
A percentage of the dividends distributed during the fiscal year for the following funds was derived from interest on U.S. Government securities which is generally exempt from state income tax:
Strategic Advisers Multi-Manager Income Fund | 33.54% |
Strategic Advisers Multi-Manager 2005 Fund | 26.48% |
Strategic Advisers Multi-Manager 2010 Fund | 24.72% |
Strategic Advisers Multi-Manager 2015 Fund | 24.04% |
Strategic Advisers Multi-Manager 2020 Fund | 20.21% |
Strategic Advisers Multi-Manager 2025 Fund | 13.59% |
Strategic Advisers Multi-Manager 2030 Fund | 7.79% |
Strategic Advisers Multi-Manager 2035 Fund | 1.42% |
Strategic Advisers Multi-Manager 2040 Fund | 1.22% |
Strategic Advisers Multi-Manager 2045 Fund | 0.71% |
Strategic Advisers Multi-Manager 2050 Fund | 0.54% |
Strategic Advisers Multi-Manager 2055 Fund | 0.09% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Strategic Advisers Multi-Manager Income Fund |
|
February 2013 | 46% |
March 2013 | 46% |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
Strategic Advisers Multi-Manager Income Fund |
|
February 2013 | 38% |
March 2013 | 38% |
The fund will notify shareholders in January 2014 of amounts for use in preparing 2013 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Strategic Advisers Multi-Manager Target Date Funds
On November 15, 2012, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract and administration agreement (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, Strategic Advisers, Inc. (Strategic Advisers), and the administrator, FMR, including the backgrounds of the funds' investment personnel, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Strategic Advisers' investment staff, including its size, education, experience, and resources, as well as Strategic Advisers' and FMR's approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in their deliberations, the Board considered Strategic Advisers' trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by FMR and its affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians and subcustodians.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment Performance. Each fund is a new fund and therefore had no historical performance for the Board to review at the time it approved each fund's Advisory Contracts. The Board considered the Investment Advisers' strength in managing asset allocation funds, which the Board is familiar with through its supervision of the Fidelity Freedom funds.
Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to each fund under the Advisory Contracts should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's proposed management fee and projected total expense ratio in reviewing the Advisory Contracts and also considered that each fund will bear indirectly the expenses of the underlying funds in which it invests. The Board noted that each fund would not pay a management fee for investment advisory services.
The Board noted that Strategic Advisers has contractually agreed to reimburse each fund to the extent that total operating expenses (excluding interest, taxes, brokerage commissions, extraordinary expenses, and acquired fund fees and expenses, if any), as a percentage of its average net assets, exceed 0.10%, and that this arrangement, which will remain in effect through May 31, 2014, may not be changed without the Board's approval.
The Board noted that each fund's projected total expense ratio of 0.10%, excluding fees and expenses of the underlying funds, would rank above the median of funds with similar Lipper investment objective categories and comparable management fee characteristics, and that, when underlying fund fees and expenses were included, certain funds (Strategic Advisers Multi-Manager 2025 Fund through 2055 Fund) would remain over median in large part due to their investments in underlying equity funds. In this regard, the Board also noted that the expense ratios of the funds that will invest a relatively larger amount in underlying fixed income funds (Strategic Advisers Multi-Manager Income Fund and Strategic Advisers Multi-Manager 2005 Fund through 2020 Fund) would rank below median. The Board considered that unlike other funds in the Lipper group that invest primarily in affiliated funds, the funds will have exposure to both affiliated and unaffiliated funds. In its review of each fund's projected total expense ratio, the Board also considered that although the funds pay transfer agency fees, each fund invests in underlying funds or classes of funds that do not pay transfer agency fees to avoid charging fund-paid transfer agent fees at both fund levels. The Board further noted that FMR pays all other expenses of each fund, with limited exceptions.
Based on its review, the Board concluded that each fund's projected total expense ratio was reasonable in light of the services that each fund and its shareholders will receive and the other factors considered.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Costs of the Services and Profitability. Each fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of each fund at the time it approved the Advisory Contracts. In connection with its future renewal of each fund's Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders.
Economies of Scale. The Board concluded that because the funds do not pay management fees and FMR pays all other expenses of each fund, with limited exceptions, economies of scale cannot be realized by the funds, but may be realized by the other Fidelity funds in which each fund invests, some of which may benefit from breakpoints in the group fee arrangement.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be approved.
Annual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
Administrator
Fidelity Management & Research Company
Boston, MA
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
OLF-UANN-0513 1.954273.100
Item 2. Code of Ethics
As of the end of the period, March 31, 2013, Fidelity Boylston Street Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that James H. Keyes is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Keyes is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, "Deloitte Entities") in the last fiscal year for services rendered to Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund (the "Funds"):
Services Billed by Deloitte Entities
March 31, 2013 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Strategic Advisers Multi-Manager Income Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2005 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2010 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2015 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2020 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2025 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2030 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2035 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2040 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2045 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2050 Fund | $12,000 | $- | $4,500 | $100 |
Strategic Advisers Multi-Manager 2055 Fund | $12,000 | $- | $4,500 | $100 |
A Amounts may reflect rounding.
B Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund commenced operations on December 20, 2012.
The following table presents fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds ("Fund Service Providers"):
Services Billed by Deloitte Entities
| March 31, 2013A,B |
Audit-Related Fees | $910,000 |
Tax Fees | $- |
All Other Fees | $1,270,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund's commencement operations.
"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
"All Other Fees" represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for the last fiscal year of the Funds are as follows:
Billed By | March 31, 2013 A,B |
Deloitte Entities | $2,330,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Strategic Advisers Multi-Manager Income Fund, Strategic Advisers Multi-Manager 2005 Fund, Strategic Advisers Multi-Manager 2010 Fund, Strategic Advisers Multi-Manager 2015 Fund, Strategic Advisers Multi-Manager 2020 Fund, Strategic Advisers Multi-Manager 2025 Fund, Strategic Advisers Multi-Manager 2030 Fund, Strategic Advisers Multi-Manager 2035 Fund, Strategic Advisers Multi-Manager 2040 Fund, Strategic Advisers Multi-Manager 2045 Fund, Strategic Advisers Multi-Manager 2050 Fund and Strategic Advisers Multi-Manager 2055 Fund's commencement operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds' last fiscal year relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Boylston Street Trust
By: | /s/Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
|
|
Date: | May 28, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
|
|
Date: | May 28, 2013 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | May 28, 2013 |