Fidelity Global Investment Grade Bond ETF Series L Trust · NEO:FCIG

Fidelity Global Investment Grade Bond ETF Series L Trust — Fidelity Investments Canada ULC — Fidelity FOCUS 2022 Scottsdale

13 slides from Fidelity Global Investment Grade Bond ETF Series L Trust's conference presentation, October 2022

1. Slide 1: A CIO perspective and market outlook

   A CIO perspective and market outlook Andrew Marchese Chief Investment Officer and Portfolio Manager October 2022 1 © 2022 FIDELITY INVESTMENTS CANADA ULC FOR ADVISOR USE ONLY 629627-v2022926

2. Slide 2: Follow profits…

   Follow profits… 2 © 2022 FIDELITY INVESTMENTS CANADA ULC FOR ADVISOR USE ONLY 629627-v2022926

3. Slide 3: Four pillars of the equity market

   Four pillars of the equity market Earnings Interest rates Liquidity Valuation Source: Fidelity Investments Canada ULC. 3 © 2022 FIDELITY INVESTMENTS CANADA ULC FOR ADVISOR USE ONLY 629627-v2022926

4. Slide 4: Executive summary

   Executive summary 1 The decline in long-duration assets year-to-date has been entirely due to valuation derating as a result of rapidly rising interest rates, secondary to higher-than-expected and persistent inflation, and declining liquidity from the financial system 2 Equity performance and leader

5. Slide 5: Global economic cycle

   Global economic cycle Australia, Japan, Korea, India Brazil, Mexico Recession U.S. Canada U.K., Eurozone + China* Economic growth – Early Mid Late Relative performance of economically sensitive assets Green = Strong The diagram above is a hypothetical illustration of the business cycle, the pattern

6. Slide 6: Interest rates/inflation

   Interest rates/inflation How do central banks extricate themselves from an unprecedented debt and liquidity backdrop? Implied policy Implied policy 1-year change Year-to-date Country/region Current rate 1-year 2-year (bps) change (bps) U.S. 3.13% 4.62% 4.04% 149 300 Canada 3.25% 4.03% 3.55% 78 300 E

7. Slide 7: Are central banks behind the curve?

   Are central banks behind the curve? U.S. monetary policy 8 7 6 Restrictive 5 Restrictive 4 Restrictive R* regression 3 model 2.14 2 1 Neutral 1.21 0 0.41 -1 Accommodative -2 -3 Accommodative Real Fed policy rate -4 Atlanta Fed shadow real FF rate -5 Real FF curve (TIPS forward curve) -6 Accommodativ

8. Slide 8: Global money supply

   Global money supply Quantitative tightening will likely need to continue over the long term 4,900 $105.5 4,700 $103.5 4,500 $101.5 4,300 $99.5 $98.1 4,100 $97.5 3,900 3,837 $95.5 3,700 $93.5 3,500 $91.5 3,300 $89.5 3,100 $87.5 2,900 $85.5 2,700 S&P 500 (LHS) $83.5 2,500 Global money supply - USD $tr

9. Slide 9: Profits (and forecasts) have been remarkably resilient

   Profits (and forecasts) have been remarkably resilient  Note, however, that forward profit outlook S&P 500 EPS growth for the S&P is highly correlated with the manufacturing index, service ISM and new order growth F12 months +13.6%  Contraction in the ISM Manufacturing Index below 50 is correlated

10. Slide 10: What is the outlook for PMIs?

    What is the outlook for PMIs? CRB Index 100%  The two-year change in the CRB Index leads an inverse change in 80% the ISM Manufacturing Index by 18 months on average 60%  The YoY change in the Fed funds 2-year % change 40% rate leads the ISM New Orders 20% Index by 18 months on average 0%  ISM ne

11. Slide 11: But an ISM index below 50 should be cause to think “offensively”

    But an ISM index below 50 should be cause to think “offensively” 75 70 65 60 Index level 55 50 45 40 35 30 Manufacturing Services New orders 25 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Source: Bloomberg. Monthly periods between July 1997 and August 2022. Manufacturing is repr

12. Slide 12: Valuation

    Valuation 1 Pockets of equities have become more normalized in terms of valuation, the caveat being the interest rate outlook 2 Markets tend to lead GDP, PMI and profits peaks and troughs by 3–12 months 3 Much like 2021, a view into central bank policy for 2023 will help shape investment outcomes 4

13. Slide 13: Important notice

    Important notice For advisor use only. No recipient is authorized to pass this communication on to any other person whatsoever or reproduce it by any means without the prior written consent of Fidelity. Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated

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