Large Company Growth Stock Fund

Transcription

1 Large Company Growth Stock Fund Volatility Meter* The Investment volatility, when shown, is a function of the investment option's Morningstar 3-year Risk Rating. The Asset Category volatility is based on the average standard deviation of investment options in this asset category. Low Moderate High Asset Category *For illustrative purposes only. The Asset Category volatility measure will always be displayed. If the Investment volatility measure is not displayed, the investment may have fewer than three years of history or the data may not be available. Fund Issuer Massachusetts SMART Plan Underlying Asset Allocation Wellington Large Cap Growth - 45% JPM Large Cap Growth - 30% Fidelity Growth Company CIT Pool - 20% NT Russell 1000 Growth - 5% Asset Category Large Growth Investment Objective & Strategy The investment seeks capital appreciation. The fund invests primarily in common stocks. It may invest in companies the advisor believes have above-average growth potential. Growth may be measured by factors such as earnings or revenue. The advisor may invest the fund's assets in domestic and foreign issuers. Risk Profile Large-cap investments may be most appropriate for someone willing to accept some degree of market volatility in return for potential long-term capital growth. Stock investments tend to be more volatile than bond, stable value or money market investments. Asset Allocation 1 % of Assets Equity Cash & Equivale Largest Holdings % of Assets Amazon Com Inc Facebook Inc Com USD CL 'A' Netflix Inc Com Stk Saleforce Com Inc Com Stk Alphabet Inc Cap Stk USD CL C Adobe Sys Inc Com Apple Inc Com Stk NVIDIA Corp Com Paypal Hldgs Inc Com Servicenow Inc Com USD Percent of Total Net Assets 22.10% Large Cap Period Ending: 06/30/2018 Net Expense Ratio Gross Expense Ratio Inception Date Data Effective Date.41%.41% 06/01/ /30/2018 Please consider the investment objectives, risks, fees and expenses carefully before investing. For this and other important information about investments offered through your Plan, you may obtain mutual fund prospectuses for registered investment options and/or disclosure documents from your registered representative or Plan website. Read them carefully before investing. The gross and net expense ratio, if shown, reflect the most current data available at the time of production, which may differ from the data effective date. The Net expense ratio shown is net of any fee waivers or expense reimbursements. FUNDOV 08/27/2018 Page 1 of Large Company Growth Stock Fund GP22/

2 Glossary & Investment Option Disclosures 3-Year Risk Rating Alpha Beta Equity Style Box Portfolio Turnover R 2 R-squared Sharpe Ratio Standard Deviation An annualized measure of a fund's downside volatility over a three-year period. Morningstar Risk Rating is derived directly from Morningstar Risk, which is an assessment of the variations in a fund's monthly returns, with an emphasis on downside variations, in comparison to similar funds. In each Morningstar Category, the top 10% of investments earn a High rating, the next 22.5% Above Average, the middle 35% Average, the next 22.5% Below Average, and the bottom 10% Low. Investments with less than three years of performance history are not rated. Alpha is a measure of the difference between a portfolio s actual returns and its expected performance, given its level of risk as measured by beta. A positive Alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative Alpha indicates the portfolio has underperformed, given the expectations established by beta. Beta is a measure of a portfolio's sensitivity to market movements. The beta of the market is 1.00 by definition. Morningstar calculates beta by comparing a portfolio's excess return over T-bills to the benchmark's excess return over T-bills, so a beta of 1.10 shows that the portfolio has performed 10% better than its benchmark in up markets and 10% worse in down markets, assuming all other factors remain constant. Conversely, a beta of 0.85 indicates that the portfolio's excess return is expected to perform 15% worse than the benchmark s excess return during up markets and 15% better during down markets. The Morningstar U.S. Equity Style Box is a grid that provides a graphical representation of the investment style of stocks and portfolios. It classifies securities according to market capitalization (the vertical axis) and 10 growth and value factors (the horizontal axis) and allows us to provide analysis on a 3-by-3 Style Box - as well as providing the traditional style box assignment, which is the basis for the Morningstar Category. Two of the style categories, value and growth, are common to both stocks and portfolios. However, for stocks, the central column of the style box represents the core style (those stocks for which neither value nor growth characteristics dominate); for portfolios, it represents the blend style (a mixture of growth and value stocks or mostly core stocks). Furthermore, the core style for stocks is wider than the blend style for portfolios. In general, a growth-oriented fund will hold the stocks of companies that the portfolio manager believes will increase earnings faster than the rest of the market. A value-oriented fund contains mostly stocks the manager thinks are currently undervalued in price and will eventually see their worth recognized by the market. A blend fund might be a mix of growth stocks and value stocks, or it may contain stocks that exhibit both characteristics. Portfolio turnover is a measure of the portfolio manager s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio s holdings that have changed over the past year. R 2, also known as the Coefficient of Determination, reflects the percentage of a portfolio's movement that can be explained by the movement of its primary benchmark over the past three years. An R-squared of 100 indicates that all movement of a fund can be explained by the movement of the index. A risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the fund's historical risk-adjusted performance. The Sharpe ratio is calculated for the past 36-month period by dividing a fund's annualized excess returns by the standard deviation of a fund's annualized excess returns. Since this ratio uses standard deviation as its risk measure, it is most appropriately applied when analyzing a fund that is an investor's sole holding. The Sharpe Ratio can be used to compare two funds directly on how much risk a fund had to bear to earn excess return over the risk-free rate. Standard deviation is a statistical measurement of dispersion about an average, which, for a mutual fund, depicts how widely the returns varied over the past three years. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Standard deviation is most appropriate for measuring risk if it is for a fund that is an investor's only holding. The figure can not be combined for more than one fund because the standard deviation for a portfolio of multiple funds is a function of not only the individual standard deviations, but also of the degree of correlation among the funds' returns. If a fund's returns follow a normal distribution, then approximately 68 percent of the time they will fall within one standard deviation of the mean return for the fund, and 95 percent of the time within two standard deviations. Morningstar computes standard deviation using the trailing monthly total returns for the appropriate time period. All of the monthly standard deviations are then annualized. All Glossary terms are sourced from Morningstar, Inc., except "Fixed" and/or "Stable Value" when shown. Funds may impose redemption fees and/or transfer restrictions, if assets are held for less than the published holding period. For more information, see the fund s prospectus and/or disclosure documents. The trademarks, logos, service marks and design elements used are owned by their respective owners and are used by permission. Holdings and composition of holdings are subject to change. Although data is gathered from reliable sources, the completeness or accuracy of the data shown cannot be guaranteed. All information is the most current as it is provided by the data source. Where data obtained from Morningstar, 2018 Morningstar, Inc. All Rights Reserved. The data: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The responsibility for the content contained in the website(s) provided (if shown) is entirely that of the website owner. Endorsement is neither declared nor implied. Fee and performance information on the website(s) listed may differ for funds offered through an individual or group variable annuity. U.S. Treasury securities, where listed, are guaranteed as to the timely payment of principal and interest if held to maturity. Investment options are neither issued nor guaranteed by the U.S. government. GWFS Equities, Inc., or one or more of its affiliates, may receive a fee from the investment option provider for providing certain recordkeeping, distribution and administrative services. The Inception Date listed is the date the fund began operations. The Data Effective Date is the date for which the most current data is available. The Period Ending Date is the date for which the fund fact sheet is produced. A benchmark index, if shown, is not actively managed, does not have a defined investment objective, and does not incur fees or expenses. Therefore, performance of a fund will generally be less than its benchmark index. You cannot invest directly in a benchmark index. 1 The allocations shown here are subject to change. The fund allocations are based on an investment strategy based on risk and return. Unless otherwise noted, investments are not deposits, insured by the FDIC or any federal government agency, or bank guaranteed and may lose value Great-West Life & Annuity Insurance Company. All rights reserved. FUNDOV 08/27/2018 Page 2 of Large Company Growth Stock Fund GP22/

3 The following are fact sheets for each of the underlying fund

4 QUARTERLY FACT SHEET AS OF 30 JUNE 2018 MA Deferred Comp Dynamic Growth INVESTMENT SUMMARY The Dynamic Growth approach seeks to provide long-term total returns in excess of the Russell 3000 Growth Index. The approach pursues this objective by seeking to identify companies experiencing accelerating growth or sustained high levels of growth that are underappreciated by the marketplace. We believe that a flexible approach to identifying growth creates a broad opportunity set and that opportunities particularly arise where our expectations differ significantly from consensus. It is also our conviction that early identification of change leads to excess returns and that a valuation overlay can function as a form of risk management. A key tenet of our approach is that changes in investor perceptions drive stock prices. Therefore, it is critical not only to identify companies exhibiting strong growth characteristics, but also to understand if the company s prospects are well-understood by the broader market. Non-consensus views can be driven by new products, market share changes, misunderstood business models, or changing pricing dynamics that can lead to profit growth in excess of investor expectations and coincident multiple expansion. Our investment process focuses on securities offering what we consider to be superior growth characteristics and attempts to identify these and other catalysts that drive relative outperformance over a 12- to 18-month period. The portfolio typically holds 60 or more securities. KEY INVESTMENT PROFESSIONALS St e p h e n M o r t i m e r SMD, Equity Portfolio Manager M i c h a e l T. C a r m e n, C FA SMD, Equity Portfolio Manager St eve n C. A n g e l i, C FA SMD, Equity Portfolio Manager Mario E. Abularach, CFA, CMT S M D, E q u i t y Re s e a r c h A n a l y s t Ra n j i t Ra m a c h a n d r a n, C FA V P, E q u i t y Re s e a r c h A n a l y s t J o h n S c h n e i d e r, C FA V P, E q u i t y Re s e a r c h A n a l y s t J o e C h u n g V P, E q u i t y Re s e a r c h A n a l y s t Peter A. Blain, CFA Re s e a r c h A s s o c i a te Prof Exp. (Yrs) WMC Exp. (Yrs) PERFORMANCE (%) Annualized Portfolio Returns Periods Ended 30 June 2018 YTD 3 Mos 1 Yr Since Inception Mass Deferred Comp Plan Dynamic Growth (Gross) Mass Deferred Comp Plan Dynamic Growth (Net) Russell 3000 Growth PORTFOLIO DETAILS Inception Date 25 September 2016 Assets USD 633 million Style All Cap Growth Primary Benchmark Russell 3000 Growth Index Holdings Typically SECTOR DISTRIBUTION Cons Staples Info Technology Industrials Real Estate Health Care Financials Telecom Svcs Energy Utilities Materials Cons Discretionary Mass Deferred Comp Plan Dynamic Growth Russell 3000 Growth Index TOP 10 HOLDINGS Company Name Industry % Equities % of Index Amazon.com Retailing 7.2% 5.0% Facebook Software & Svcs salesforce.com Software & Svcs N e t fl i x Re t a i l i n g PayPal Holdings Software & Svcs Adobe Sys Software & Svcs NVIDIA Semiconductor & Semi Equip Workday Software & Svcs ServiceNow Software & Svcs Costar Group Commercial & Professional Svcs Total of Top % 13.2% Totals may not add due to rounding.

5 MA Deferred Comp Dynamic Growth PORTFOLIO CHARACTERISTICS Mass Deferred Comp Plan Dynamic Growth Russell 3000 Growth Index Asset-Weighted Market USD billion USD billion Capitalization Current P/E Median 22.9x 17.1x Historical EPS 19.3% 15.8% Growth (5-Yr) Number of Holdings 57 1,756 ROE (Trailing 12 Months) 14.7% 32.7% 2

6 MA Deferred Comp Dynamic Growth Wellington Management Company LLP BOSTON, MA TEL: CHICAGO, IL TEL: RADNOR, PA TEL: SAN FRANCISCO, CA TEL: Wellington Management Australia Pty Ltd SYDNEY TEL: Wellington Management Canada ULC TORONTO, ON TEL: Wellington Management Hong Kong Ltd HONG KONG TEL: BEIJING REPRESENTATIVE OFFICE TEL: Wellington Management International Ltd LONDON TEL: FRANKFURT TEL: Wellington Management Japan Pte Ltd TOKYO TEL: Wellington Management Singapore Pte Ltd SINGAPORE TEL: Wellington Management Switzerland GmbH ZURICH TEL: ABOUT WELLINGTON MANAGEMENT Tracing our roots to 1928, Wellington Management is one of the largest independent investment management firms in the world. We are a private firm whose sole business is investment management, and we serve as investment adviser for institutional clients in over 50 countries. Our most distinctive strength is our commitment to proprietary, independent research the foundation upon which our investment approaches are built. Our commitment to investment excellence is evidenced by our significant presence and long-term track records in nearly all sectors of the liquid, global securities markets. We offer an extensive array of investment approaches across a broad range of equity, fixed income, currency, specialty, alternative, and multi-asset strategies. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS AND AN INVESTMENT CAN LOSE VALUE. Past results are not necessarily indicative of future results. There can be no assurance nor should it be assumed that future investment performance of any strategy will conform to any performance examples set forth in this material or that the portfolio s underlying investments will be able to avoid losses. The investment results and any portfolio compositions set forth in this material are provided for illustrative purposes only and may not be indicative of the future investment results or future portfolio composition. The composition, size of, and risks associated with an investment in the strategy may differ substantially from the examples set forth in this material. An investment can lose value. Principal Risks Common Stock Risk Common stock are subject to many factors, including economic conditions, government regulations, market sentiment, local and international political events, and environmental and technological issues as well as the profitability and viability of the individual company. Equity security prices may decline as a result of adverse changes in these factors, and there is no assurance that a portfolio manager will be able to predict these changes. Some equity markets are more volatile than others and may present higher risks of loss. Common stock represents an equity or ownership interest in an issuer. Additional Risks Concentration Risk Concentration risk is the risk of amplified losses that may occur from having a large percentage of your investments in a particular security, issuer, industry, or country. The investments may move in the same direction in reaction to the conditions of the industries, sectors, countries and regions of investment, and a single security or issuer could have a significant impact on the portfolio s risk and returns. Liquidity Risk Investments with low liquidity may experience market value volatility because they are thinly traded (such as small cap and private equity or private placement bonds). Since there is no guarantee that these securities could be sold at fair value, sales may occur at a discount. In the event of a full liquidation, these securities may need to be held after liquidation date. Private Equity Risk Private equity is capital that is not listed on a public exchange, that directly invests in private companies or buyout public companies. Less information is available about these companies, and this lack of transparency makes valuation difficult. A portfolio may experience difficulty selling illiquid private equity securities and, in some cases, may be unable to value or sell certain securities for an indefinite period of time, even in the event of a full redemption. Restricted Security Risk Restricted securities are securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer. These securities may not be transferable until certain criteria are met and under the federal securities laws, generally may be resold only to qualified institutional buyers, resulting in liquidity risk. Smaller Capitalization Stock Risk The share prices of small and mid-cap companies may exhibit greater volatility than the share prices of larger capitalization companies. In addition, shares of small and mid-cap companies are often less liquid than larger capitalization companies.

7 Wellington Management Composite: Dynamic Growth Schedule of Performance Returns from 01 January 2008 to 31 December 2017 Period Gross Net Benchmark Number of Internal Composite Mkt.Value Total Firm Assets Return (%) Return (%) Return (%) Portfolios Dispersion (%) (USD Mil) (USD Mil) < 6 N/M , < 6 N/M 1, , < 6 N/M 1, , < 6 N/M 1, , < 6 N/M 1, , < 6 N/M 2, , < 6 N/M 2, , < 6 N/M 2, , < 6 N/M 2, , < 6 N/M 2,852 1,080,307 Benchmark: Russell 3000 Growth N/M: For years where there are less than six portfolios throughout the performance period, Internal Dispersion is not meaningful. Composite Description: Portfolios included in the Dynamic Growth Composite seek long-term total return in excess of the Russell 3000 Growth Index by investing in securities with a market capitalization typically greater than US$1 billion. Composite Creation Date: The composite creation date is December Composite Membership: All fully discretionary, fee paying portfolios are eligible for inclusion in the composite. Fee Schedule: The institutional separate account fee schedule for this product is: Market Value Annual Fee On the first US$25 million 0.75% On the next US$25 million 0.65 Over US$50 million 0.55 Benchmark Definition: Russell 3000 Growth measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. Firm: For purposes of GIPS compliance, the Firm is defined as all portfolios managed by Wellington Management Company LLP, an independently owned, SEC-registered investment adviser, as well as its affiliates (collectively, Wellington Management). Wellington Management provides investment advisory services to institutions around the world. GIPS : Wellington Management claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. Wellington Management has been independently verified for the periods 1 January 1993 to 31 December The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Performance Calculation: Gross performance results are net of trading expenses. Returns are gross of withholding taxes on dividends, interest and capital gains. Returns, market values, and assets are reported in USD except when otherwise noted. Returns, market values and assets reported in currencies other than USD are calculated by converting the USD monthly return and assets using the appropriate exchange rate (official 4:00 p.m. London closing spot rates). Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Net of fees performance reflects the deduction of the highest tier investment management fee ("model fee") that would be charged based on the fee schedule appropriate to you for this mandate, without the benefit of breakpoints and is calculated by subtracting 1/12th of the model fee from monthly gross composite returns. Please be advised that the composite may include members that are effectively subject to higher management fees that are inapplicable to you. Performance net of model fees is intended to provide the most appropriate example of the impact management fees would have for you. Pool investors will experience costs in excess of investment management fees, such as operating expenses and custodial fees. These indirect costs are not reflected in the model fee, or net of fees performance. Internal Dispersion: The dispersion measure presented is the asset-weighted standard deviation. The asset-weighted standard deviation measures the dispersion of individual portfolio returns relative to the asset-weighted composite return. Only portfolios that have been included in the composite for the full period are included in the standard deviation calculation. Limitations imposed by client guidelines or by law on a portfolio's ability to invest in certain securities or instruments, such as IPO securities, and/or implementation of the firm's Trade Allocation Policies and Procedures, may cause the portfolio's performance to differ from that of the composite. External Dispersion: The dispersion measure presented is the three-year annualized ex-post standard deviation. It measures the variability of the composite and the benchmark(s) over the preceding 36-month period. For periods prior to 1 January 2011, the Firm was not required to present the three-year annualized ex-post standard deviation. 3-Year Standard Deviation (%) Year Composite Benchmark Composite Listing: Wellington Management's list of composite descriptions is available upon request. Other Matters: This material contains summary information regarding the investment approach described herein and is not a complete description of the investment objectives, policies, guidelines, or portfolio management and research that supports this investment approach. Any decision to engage Wellington Management should be based upon a review of the terms of the investment management agreement and the specific investment objectives, policies, and guidelines that apply under the terms of such agreement. Past Performance: Past results are not necessarily indicative of future results and an investment can lose value. Page 1 of 1 DYNGROWTOT 2018 Wellington Management Company LLP. All rights reserved. Generated on: 22 March 2018

8 0903c02a822b6c53 STRATEGY PROFILE June 30, 2018 J.P. Morgan Growth Advantage Strategy

9 0903c02a822b6c53 PAGE 2 of 2 STRATEGY PROFILE June 30, 2018 J.P. Morgan Growth Advantage Strategy NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

10 U.S. Equity Fidelity Growth Company Commingled Pool Information on this investment option was provided by your plan sponsor, plan trustee, investment manager, trustee or third party data provider. This investment is not a mutual fund. Hypothetical Growth of $10,000 1,2 (12/13/2013-6/30/2018) n Fidelity Growth Company Commingled Pool $21,222 n Large Growth $16, K 19.20K 16.80K 14.40K 12.00K Equity StyleMap * 5 (AS OF 4/30/2018) Details Large Growth *93.71% Fund Assets Covered Fund Inception 12/13/ The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted. Performance 2,3,4 Average Annual Total Returns Monthly (AS OF 6/30/2018) YTD (Monthly) 1 Yr 3 Yrs 5 Yrs 10 Yrs Life Fidelity Growth Company Commingled Pool 11.56% 28.67% 18.53% % Russell 3000 Growth 7.44% 22.47% 14.63% 16.14% 11.78% 14.43% Large Growth 7.51% 20.58% 12.21% 14.37% 10.23% -- Quarter-End (AS OF 6/30/2018) Fidelity Growth Company Commingled Pool 28.67% 18.53% % NAV on 6/30/2018 $21.23 Exp Ratio (Gross) 9/30/2017 Exp Ratio (Net) 9/30/ % ($4.30 per $1000) 0.43% ($4.30 per $1000) Management Fee 0.43% Turnover Rate 9/30/2017 Portfolio Net Assets ($M) 6/30/2018 Share Class Net Assets ($M) 6/30/ % $29, $14, Calendar Year Returns 2,3 (AS OF 6/30/2018) Fidelity Growth Company Commingled Pool 14.30% 8.26% 6.39% 37.80% 11.56% Russell 3000 Growth 12.44% 5.09% 7.39% 29.59% 7.44% Large Growth 10.00% 3.60% 3.23% 27.67% 7.51% Investment Approach l Top 10 Holdings 6 (AS OF 6/30/2018) 36.62% NVIDIA CORP AMAZON.COM INC APPLE INC ALPHABET INC CL A FACEBOOK INC CL A SALESFORCE.COM INC MICROSOFT CORP LULULEMON ATHLETICA INC ADIDAS AG ALPHABET INC CL C % of Total Portfolio: 36.62% 414 holdings as of 6/30/2018 Fidelity Growth Company Commingled Pool is a diversified domestic equity strategy that invests across a spectrum of companies, from blue chip to aggressive growth. Fund Manager(s) Primary Manager: Steven S Wymer (since 12/13/2013) Volatility Measures Beta 6/30/2018 R 2 6/30/2018 Sharpe Ratio 6/30/ l Our investment approach is anchored by the philosophy that the market often underestimates the duration of a company's growth, particularly in cases where the resiliency and extensibility of the business model are underappreciated. Standard Deviation 6/30/ l We focus on firms operating in well-positioned industries and niches that we find capable of delivering persistent sales and earnings growth. l This approach typically leads us to companies that we think have the potential to unlock shareholder value through either a growth-enhancing product cycle or an internal catalyst such as a turnaround or acquisition. l We believe it critical that companies fund their own growth through the cash they generate and Page 1 of 4

11 U.S. Equity Investment Approach (continued) benefit from management teams focused on creating long-term shareholder value. Asset Allocation 6,7,8,9 (AS OF 6/30/2018) Domestic Equities 90.78% International Equities 8.99% Cash & Net Other Assets 0.23% Bonds 0.00% Major Market Sectors 6 (AS OF 6/30/2018) n Portfolio Weight n Russell 3000 Growth Information Technology 44.75% Consumer Discretionary 22.06% Regional Diversification 6,10 (AS OF 6/30/2018) United States 91.06% Europe 3.99% Emerging Markets 3.30% Canada 1.22% Asia-Pacific ex Japan 0.29% Japan 0.13% Other 0.01% Health Care 16.96% Industrials 5.03% Consumer Staples 4.61% Financials 2.84% Energy 2.01% Materials 0.81% Telecommunication Services 0.48% Real Estate 0.22% Fund Overview Objective The portfolio's investment objective is to seek to provide capital appreciation over a market cycle relative to the Russell 3000 Growth Index through the active management of equities across a broad segment of the equity markets. Strategy The portfolio's investment philosophy is to capitalize on the strength of Fidelity's internal research by selecting those stocks that are found to be attractive by Fidelity's proprietary fundamental research by investing in companies that the manager believes have above-average growth potential. The portfolio may invest in domestic and foreign issuers. Generally, the portfolio's universe includes common stocks with market capitalization consistent with the Russell 3000 Growth Index. Risk The value of the fund's domestic and foreign investments will vary from day to day in response to many factors, such as adverse issuer, political, regulatory, market, or economic developments. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. Foreign investments involve greater risks than those of U.S. investments, as well as exposure to currency fluctuations. 'Growth' stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks. You may have a gain or loss when you sell your units. Additional Disclosures The Fidelity Growth Company Commingled Pool is a collective investment trust maintained under the Fidelity Group Trust for Employee Benefit Plans, and is managed by Fidelity Management Trust Company (FMTC). It is not insured by the FDIC.This description is only intended to provide a brief overview of this investment option, which is available only to eligible retirement plans and is not offered to the general public.russell 3000 Growth Index is a market-capitalization-weighted index designed to measure the performance of the broad growth segment of the U.S. equity market. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth rates.this investment option is not a mutual fund. Glossary Of Terms Beta: A measure of a portfolio's sensitivity to market movements (as represented by a benchmark index). The benchmark index has a beta of 1.0. A beta of more (less) than 1.0 indicates that a fund's historical returns have fluctuated more (less) than the benchmark index. Beta is a more reliable measure of volatility when used in combination with a high R 2 which indicates a high correlation between the movements in a fund's returns and movements in a benchmark index. Page 2 of 4

12 U.S. Equity Exp Ratio (Gross): Expense ratio is a measure of what it costs to operate an investment, expressed as a percentage of its assets, as a dollar amount, or in basis points. These are costs the investor pays through a reduction in the investment's rate of return. For a mutual fund, the gross expense ratio is the total annual fund or class operating expenses directly paid by the fund from the fund's most recent prospectus (before waivers or reimbursements). This ratio also includes Acquired Fund Fees and Expenses, which are expenses indirectly incurred by a fund through its ownership of shares in other investment companies. If the investment option is not a mutual fund, the expense ratio may be calculated using methodologies that differ from those used for mutual funds. Exp Ratio (Net): Expense ratio is a measure of what it costs to operate an investment, expressed as a percentage of its assets, as a dollar amount, or in basis points. These are costs the investor pays through a reduction in the investment's rate of return. For a mutual fund, the net expense ratio is the total annual fund or class operating expenses directly paid by the fund from the fund's most recent prospectus, after any fee waiver and/or expense reimbursements that will reduce any fund operating expenses. This ratio also includes Acquired Fund Fees and Expenses, which are expenses indirectly incurred by a fund through its ownership of shares in other investment companies. This number does not include any fee waiver arrangement or expense reimbursement that may be terminated without agreement of the fund's board of trustees during the one-year period. If the investment option is not a mutual fund, the expense ratio may be calculated using methodologies that differ from those used for mutual funds. Net Asset Value (NAV): The dollar value of one mutual fund's share, excluding any sales charges or redemption fees. The NAV is calculated by subtracting liabilities from the value of a fund's total assets and dividing it by the number of fund's shares outstanding. Portfolio Net Assets ($M): The difference between a portfolio's total assets and liabilities, including all share classes of the fund. R2: A measurement of how closely the portfolio's performance correlates with the performance of the fund's primary benchmark index or equivalent. R 2 is a proportion which ranges between 0.00 and An R 2 of 1.00 indicates perfect correlation to the benchmark index, that is, all of the portfolio's fluctuations are explained by performance fluctuations of the index, while an R 2 of 0.00 indicates no correlation. Therefore, the lower the R 2, the more the fund's performance is affected by factors other than the market as measured by that benchmark index. An R 2 value of less than 0.5 indicates that the Annualized Alpha and Beta are not reliable performance statistics. Russell 3000 Growth: The Russell 3000 Growth Index is an unmanaged market capitalization-weighted index of growth-oriented stocks of U.S. domiciled companies that are included in the Russell 3000 Index. Growth-oriented stocks tend to have higher price-to-book ratios and higher forecasted growth values. Share Class Net Assets ($M): The difference between the total assets and liabilities of a single share class of a fund. Sharpe Ratio - Arithmetic: The Sharpe ratio is a measure of historical risk-adjusted performance. It is calculated by dividing the fund's excess returns (the fund's average annual return for the period minus the 3-month "risk free" return rate) and dividing it by the standard deviation of the fund's returns. The higher the ratio, the better the fund's return per unit of risk. The three month "risk free" rate used is the 90-day Treasury Bill rate. Standard Deviation: Statistical measure of how much a return varies over an extended period of time. The more variable the returns, the larger the standard deviation. Investors may examine historical standard deviation in conjunction with historical returns to decide whether an investment's volatility would have been acceptable given the returns it would have produced. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation does not indicate how an investment actually performed, but it does indicate the volatility of its returns over time. Standard deviation is annualized. The returns used for this calculation are not load-adjusted. Turnover Rate: The lesser of amounts of purchases or sales of long-term portfolio securities divided by the monthly average value of long-term securities owned by the fund. Important Information 2016 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses. Your plan sponsor has directed Fidelity to make this investment product available to you through your workplace savings plan. Information on this investment product was provided by the product's investment manager, trustee, or issuer, by Morningstar Inc. or other commercial database, or by the plan sponsor. Although Fidelity believes data gathered from these third-party sources is reliable, it does not review such information and cannot warrant it to be accurate, complete or timely. Fidelity is not responsible for any damages arising from any use of this third-party information. Generally, the issuer of collective investment trusts is the underlying trust or investment vehicle which issues the units; the issuer of a stock fund is the company which issues the shares; the issuer of options such as separate accounts and strategies is the plan which makes them available; the issuer of a fixed return option is the insurance company or other company which offers the investment; the issuer of an annuity contract is the insurance company and/or the insurance company separate account. 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Generally, the issuer of a mutual fund is the fund or trust which issues the shares; the issuer of collective investment trusts is the underlying trust or investment vehicle which issues the units; the issuer of a stock fund is the company which issues the shares; the issuer of options such as separate accounts and strategies is the plan which makes them available; the issuer of a fixed return option is the insurance company or other company which offers the investment; the issuer of an annuity contract is the insurance company and/or the insurance company separate account. 1. This chart illustrates the performance of a hypothetical $10,000 investment made in this investment product (and a benchmark or category average, if shown) from the beginning date shown or on the inception date of the product (whichever is later). Some products do not have monthly performance data available back to inception date. The inception date used for products with underlying funds, or multiple shares classes, or are offered as a separate account, strategy or sub account, may be the inception date of the underlying fund, the earliest share class of the product, or the date composite performance for the product was first made available. The product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Benchmark returns include reinvestment of capital gains and dividends, if any, but do not reflect any fees or expenses. It is not possible to invest in an index. Past performance is no guarantee of future results. This chart is not intended to imply any future performance of the investment product. 2. The Morningstar Category Average is the average return for the peer group based on the returns of each individual fund within the group, for the period shown. This average assumes reinvestment of dividends. 3. Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Life of fund figures are reported as of the commencement date to the period indicated and are cumulative if the fund is less than one year old. Total returns do not reflect the fund's [%] sales charge. If sales charges were included, total returns would have been lower. 4. Percent Rank in Category is the fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. % Rank in Category is based on total returns which include reinvested dividends and capital gains, if any, and exclude sales charges. Multiple share classes of a fund have a common portfolio but impose different expense structures. Past performance is no guarantee of future results. 5. Equity StyleMap depictions of mutual fund characteristics are produced using data and calculations provided by Morningstar, Inc. StyleMaps SM estimate characteristics of a fund's equity holdings over two dimensions: market capitalization and valuation. The percentage of fund assets represented by these holdings is indicated beside each StyleMap. Current StyleMap characteristics are calculated each time Morningstar receives updated portfolio holdings from a fund and are denoted with a dot. Historical StyleMap characteristics are calculated for the shorter of either the past 3 years or the life of the fund, and are represented by the shading of the box(es) previously occupied by the dot. StyleMap characteristics represent an approximate profile of the fund's equity holdings (e.g., domestic stocks, foreign stocks, and American Depositary Receipts), are based on historical data, and are not predictive of the fund's future investments. Although the data are gathered from reliable sources, accuracy and completeness cannot be guaranteed. 6. Any holdings, asset allocation, diversification breakdowns or other composition data shown are as of the date indicated and are subject to change at any time. They may not be representative of the fund's Page 3 of 4

13 U.S. Equity current or future investments. The Top Ten Holdings and Top 5 Issuers do not include money market instruments or futures contracts, if any. Depository receipts are normally combined with the underlying security. Some breakdowns may be intentionally limited to a particular asset class or other subset of the fund's entire portfolio, particularly in multi-asset class funds where the attributes of the equity and fixed income portions are different. Under the asset allocation section, international (or foreign) assets may be reported differently depending on how an investment option reports its holdings. Some do not report international (or foreign) holdings here, but instead report them in a "Regional Diversification" section. Some report them in this section in addition to the equity, bond and other allocation shown. Others report international (or foreign) holding as a subset of the equity and bond allocations shown. If the allocation without the foreign component equals (or rounds to) 100%, then international (or foreign) is a subset of the equity and bond percentage shown. Any remaining country allocations comprising less than one percent of the portfolio are combined in the OTHER category. 7. The percent of net assets invested in both domestic and foreign Equities (common stocks, preferred stocks, rights and warrants, convertible preferred stocks and stock index futures and options), Bond (all debt instruments, including investment grade, non-investment grade, non-rated securities and convertible bonds), and Cash & Net Other Assets (cash, repurchase agreements, receivables and payables). 8. "Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation. 9. Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the Portfolio Composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number. 10. Please note Regional Diversification information is based on the equity components only OA8201 Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI Report as of 7/20/2018 Page 4 of 4

14 Northern Trust COLLECTIVE RUSSELL 1000 GROWTH INDEX FUND - NON-LENDING As Of June 30, 2018 Key Facts Inception Fund Size ($M) Portfolio Turnover (%) 04/23/ , EQUITIES INVESTMENT OBJECTIVE The primary objective of the Northern Trust Russell 1000 Growth Index Fund is to approximate the risk and return characteristics of the Russell 1000 Growth Index. This Index is commonly used to represent the large cap segment of the U.S. market with a focus on the "growth" style of investing. Benchmark Russell 1000 Growth Fund Performance Fees and Expenses Total Admin Expenses (%) Total Annual Operating Expense (%) Per $1000 Investment ($) Portfolio Information Trailing Returns (%) 25.0% 20.0% 15.0% 10.0% 5.0% Fund Index 0.0% Number of Equity Securities Weighted Avg. Cap. ($B) Price to Earnings as of 06/30/ Month Year-to- Date 1-Year 3-Year 5-Year 10-Year Since Inception Price to Book Dividend Yield (%) Fund Benchmark Year EPS (%) Return on Equity (%) Top Holdings(% of fund) Fund Index Apple Inc Microsoft Corporation Amazon.com, Inc Calendar Year Returns (%) 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% All performance periods greater than 1-year are annualized. Facebook, Inc. Class A Alphabet Inc. Class C Alphabet Inc. Class A Visa Inc. Class A UnitedHealth Group Incorporated Home Depot, Inc Boeing Company Fund Benchmark INVESTOR STRATEGY To achieve its objective, the Fund employs a replication technique which generally seeks to hold each index constituent in its proportional index weight. The Fund may make limited use of futures and/or options for the purpose of maintaining equity exposure. This Fund may not participate in securities lending. INVESTMENT MANAGER Northern Trust is a global multi-asset class investment manager serving clients worldwide. Through the combined resources of the Northern Trust Company, Northern Trust Investments, Inc., Northern Trust Global Investments Limited, and its subsidiaries, a broad range of investment products and services are offered to personal and institutional markets around the globe. Collective Russell 1000 Growth Index Fund - Non-Lending 1 of 4 northerntrust.com

15 COLLECTIVE RUSSELL 1000 GROWTH INDEX FUND - NON-LENDING Sector Breakdown (% of fund) Fund Index Information Technology Consumer Discretionary Health Care Year Risk Statistics Tracking Error* 0.03 Tracking error is a measure of the volatility of the differences in the return between a fund and its benchmark. The smaller the tracking error, the more the fund resembles the benchmark regarding risk and return characteristics. Beta* 1.00 Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Industrials Consumer Staples Annualized Standard Deviation Standard deviation is a measure of risk. In this case risk is represented by the fund s price movements up or down over time. Financials *Measured against the Fund's benchmark Real Estate Materials Energy Telecommunication Services For More Information Please contact Northern Trust at Fees and expenses are one of several factors that participants and beneficiaries should consider when making investment decisions. The cumulative effect of fees and expenses can substantially reduce the growth of a retirement account; beneficiaries can visit the Employee Benefit Security Administration s website for an example demonstrating the long term effect of fees and expenses. The information provided in the Investment Profile and this disclosure statement should not be considered a recommendation to purchase or sell a particular security. The fund is a collective investment fund and is privately offered. Prospectuses are not required and prices are not available in local publications. To obtain pricing information, please contact your service representative. Please note that the information provided in the Investment Profile and this disclosure statement may not meet all of the disclosure requirements for an ERISA section 404(c) plan, as described in the Department of Labor regulations under section 404(c). In addition, the information disclosed in the Investment Profile and this disclosure statement may not meet the requirements of Department of Labor Rule 404a-5 of ERISA ( Rule 404a-5 ). Plan Sponsors intending to comply with such regulations will need to provide Plan participants with additional information. The performance information shown represents past performance and is not a guarantee of future results. Current performance may be lower or higher than the information shown. Performance is shown gross of investment management, but net of total administrative expenses (see additional disclosure information). Periods greater than one year are annualized except where indicated. Returns reflect the reinvestment of dividends and other earnings and are shown before the deduction of your investment management fees, unless indicated otherwise. Returns would be further reduced by investment management fees. Index performance returns do not reflect any management fees, transaction costs or expenses. It is not possible to invest directly in any index. There are risks involved in investing including possible loss of principal. There is no guarantee that the investment objectives of any fund or strategy will be met. Risk controls and models do not promise any level of performance or guarantee against loss of principal. The information provided herein does not constitute individual investment advice for a Plan participant or investor, is only informational in nature and should not be used by a Plan participant or investor as a primary basis for making an investment decision. NOT FDIC INSURED May lose value/no bank guarantee Collective Russell 1000 Growth Index Fund - Non-Lending 2 of 4 northerntrust.com