Investment Manager Fidelity Management & Research.

100%

Specialty U.S. stock fund, focusing on growth-oriented companies of all sizes

Russell 3000 Growth Index

Actively Managed

Fidelity Management & Research

Fees and expenses are only one of several factors that should be considered when making investment decisions. More information on fees and expenses can be found in the FAQs on the MyFRS.com website.

On an annual basis, marketing companies estimate the fees that FRS Investment Plan participants will pay as a percentage of their mutual fund account assets; e.g., 0.50% per year. These figures reflect any rebates or reductions negotiated by the State Board of Administration and are published in the Fund Profiles and other plan materials.

However, the actual fees you would pay as an investor in a mutual fund are not guaranteed and will vary over time when expressed as a percent of asset values. Mutual fund boards of directors can change fees without the FRS's permission. Changes occur throughout the year in the day-to-day expenditures made by mutual funds to cover their operating expenses and these changes are passed through to shareholders. The amount of assets under management changes from period to period and so fees expressed as a ratio of assets will vary, even if the actual dollar expenditures do not. Also, some mutual funds have fees that can rise or fall depending on performance compared to a benchmark.

The actual expenses paid for mutual funds included in the FRS Investment Plan are detailed in their annual or semi-annual reports for previous periods. These reports are available free of charge by calling the MyFRS Financial Guidance Line (1-866-446-9377). Please note that these reports will not reflect any rebates or reductions negotiated by the State Board of Administration.

There are no specifically assigned research analysts on any of our funds, as they are a pooled resource. This fund is run out of our Boston office. On a global basis, the Fidelity Research Analysts are broken out by 7 major industry sectors: Consumers, Cyclicals, Financials, Healthcare, Natural Resources, Technology, and Utilities. There are 4 Industry Sector Leaders for each sector, one based in Boston, one in London, one in Hong Kong, and one in Tokyo. So essentially these 28 senior sector analysts are responsible for all coverage of that particular sector on a global basis, and also typically run our sector funds (Select Portfolios). There are a total of 263 analysts worldwide.

The primary focus of the stock selection process is on companies with strong fundamentals and a favorable business outlook, both for the company and the industry alike. The company must also show strong revenue and earnings growth potential, as well as accelerating market share growth potential. Finally, management seeks to invest in companies that display what the fund manager calls "self-help opportunities", such as restructuring, cost-cutting or new management.

The Fund's benchmark is the Russell 3000 Growth Index and the Lipper Peer Group is the Growth Funds Average. This is done through monthly idea meetings with the group leader and other Portfolio Managers, an in-depth Quarterly Fund Review (QFR) with equity division Senior VP, frequent travel to visit companies, and attending industry conferences. With regard to 75% of the fund's total net assets, no more than 25% of the fund's assets can be invested in any one industry sector. Also, with regard to 75% of the fund's total net assets, the fund is limited to a maximum of 10% of outstanding shares in any one issuer.

The sell decision may be triggered if the company's business fundamentals deteriorate or if the stock price exhibits unreasonably high valuations based on the fundamentals. Also, if the fund manager sees a lack of execution by management, the decision to sell may be reached.