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

Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.

1. Tax-smart investing techniques, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, Strategic Advisers LLC (Strategic Advisers), primarily with respect to determining when assets in a clients account should be bought or sold. Assets contributed may be sold for a taxable gain or loss at any time. There are no guarantees as to the effectiveness of the tax-smart investing techniques applied in serving to reduce or minimize a clients overall tax liabilities, or as to the tax results that may be generated by a given transaction.

2. Managed portfolio or managed account refer to the discretionary investment management services available through one or more Portfolio Advisory Services accounts for a fee to investors who enroll in Fidelity® Wealth Services. Tax-sensitive Portfolio Advisory Services accounts are managed using tax-smart investing techniques at the discretion of Strategic Advisers. See the Fidelity Wealth Services Program Fundamentals for program details or speak with a Fidelity advisor.

For clients who prefer single-asset class strategies, Strategic Advisers employs multiple tax-smart investing techniques proactively to seek to enhance after-tax returns in Fidelity Tax-Managed U.S. Equity Index Strategy and Fidelity Tax-Managed International Equity Index Strategy accounts enrolled in Fidelity® Strategic Disciplines. For taxable accounts in the Fidelity Equity Income Strategy, Fidelity International Equity Strategy, and Fidelity U.S. Large Cap Equity Strategy through Fidelity Strategic Disciplines, Strategic Advisers could also implement tax-smart investing techniques, on a limited basis, consistent with the strategy, although tax management is not a primary goal of these strategies. See the Fidelity Strategic Disciplines Program Fundamentals (PDF) for program details or speak with a Fidelity advisor.

3. For illustrative purposes only. Based on strategy composites. See Tax-Smart Investing: Could Ben Franklin have been wrong? (PDF) Appendix B for information on the composites. These results are hypothetical and do not represent actual value added to client accounts. Returns for individual clients will vary. Performance shown represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and you may lose money.

Hypothetical examples assume an initial $1 million investment in a Growth with Income Composite (60% stocks/40% bonds and short-term investments). Four start dates are as shown: January 1, 2002, January 1, 2007, January 1, 2012, and January 1, 2017. All scenarios assume no contributions or withdrawals, with dividends and capital gains reinvested in the same Growth with Income Composite. When tax-smart investing techniques were applied, the resulting account values increased by $402,808, $224,933, $33,690, $30,154 respectively.

4. This chart represents the cumulative total tax lot losses harvested or potential tax savings in all accounts in good order in Fidelity Wealth Services tax-sensitive accounts for calendar year 2019 with account values of $50,000 and above with at least 10 holdings. Each tax lot loss within the population of accounts was evaluated. The specific tax rate applicable to the respective client account was applied to calculate the dollar loss of each tax lot, applying the client’s ordinary income tax rate to short-term losses and applying the client’s capital gains tax rate to long-term losses. All capital losses harvested in a single tax year may not result in a tax benefit for that tax year. Any remaining unused capital losses may be carried forward and applied to offset income in future tax years indefinitely. Results will vary. In our analysis over the past three years, cumulative tax savings from tax-loss harvesting differed from year to year and was as small as half the amount shown in the chart. Source: Fidelity Tax Account System as of 12/31/2019.

5. The $160 million value represents the cumulative total tax lot losses harvested in good order in Fidelity® Wealth Services tax-sensitive accounts for calendar year 2019 with account values of $50,000 and above and at least 10 holdings. All capital losses harvested in a single tax year may not result in a tax benefit for that tax year. Any remaining unused capital losses may be carried forward and applied to offset income in future tax years indefinitely. Each tax lot loss within the population of accounts was evaluated and we applied the specific tax rate applicable to the respective client account to calculate the dollar loss of each tax lot. We applied the clients ordinary income tax rate to short-term losses and capital gains tax rate to long-term losses. In our analysis over the past three years, cumulative tax savings from tax-loss harvesting differed from year to year and was as small as half the amount shown in the chart. Source: Fidelity Tax Account System as of 12/31/2019.

6. For a list of eligible investments, see our Program Fundamentals or contact a Fidelity representative. Clients may elect to transfer noneligible securities into their accounts. Should they do so, Strategic Advisers or its designee will liquidate those securities as soon as reasonably practicable, and clients acknowledge that transferring such securities into their accounts acts as a direction to Strategic Advisers to sell any such securities. Clients may realize a taxable gain or loss when these shares are sold, which may affect the after-tax performance/return within their accounts, and Strategic Advisers does not consider the potential tax consequences of these sales when following a clients deemed direction to see such securities. Strategic Advisers reserves the right not to accept otherwise eligible securities, at its sole discretion.

7. While Strategic Advisers does consider the potential tax consequences of the sale of eligible securities used to fund an account managed with tax-smart investing techniques, Strategic Advisers believes that appropriate asset allocation and diversification are of primary importance and applies tax-smart investing techniques as a secondary consideration in managing such accounts. Accordingly, clients who fund an account managed with tax-smart investing techniques with appreciated securities should understand that Strategic Advisers could sell such securities notwithstanding that the sale could trigger significant tax consequences.

Fidelity® Wealth Services provides non-discretionary financial planning and discretionary investment management through one or more Portfolio Advisory Services accounts for a fee. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser, and Fidelity Personal Trust Company, FSB (FPTC), a federal savings bank. Nondeposit investment products and trust services offered through FPTC and its affiliates are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, are not obligations of any bank, and are subject to risk, including possible loss of principal. Discretionary portfolio management services provided by Strategic Advisers LLC (Strategic Advisers), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FPTC, FBS, and NFS are Fidelity Investments companies.

Fidelity® Strategic Disciplines provides nondiscretionary financial planning and discretionary investment management for a fee. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

Reach out

Find us at the office

Exel- Frazzitta street no. 61, 44925 Kingston, Norfolk Island

Give us a ring

Jovanny Boeding
+23 274 947 142
Mon - Fri, 10:00-21:00

Tell us about you