PORTFOLIO MANAGER Q&A | AS OF FEBRUARY 28, 2021

Fidelity® Select Consumer Discretionary Portfolio

Key Takeaways MARKET RECAP

• For the fiscal year ending February 28, 2021, the fund gained 50.96%, The S&P 500® index gained 31.29% for underperforming the 64.02% result of the MSCI US IMI Consumer the 12 months ending February 28, 2021, Discretionary 25/50 index, but handily outpacing the 31.29% advance a volatile but productive period for U.S. risk assets. The early-2020 outbreak and of the broad-based S&P 500® Index. spread of COVID-19 resulted in stocks • suffering one of the quickest declines on Consumer discretionary stocks handily outpaced the broader U.S. record, through March 23, followed by a equity market the past 12 months, benefiting from positive COVID-19 historic rebound that included the index vaccine news late in the year and greater prospects for economic closing 2020 at an all-time high and reopenings, as well as aggressive support for the financial markets by gaining modest ground in the first two the U.S. Federal Reserve. months of the new year. The crisis and containment efforts caused broad • The fund's underperformance of the MSCI sector index this period contraction in economic activity, along was due largely to Portfolio Manager Katie Shaw's decision to with extreme uncertainty and dislocation underweight electric vehicle maker Tesla – a component of the sector in financial markets. A rapid and index that gained roughly 406%. expansive U.S. monetary/fiscal-policy response partially offset the economic • Overweighting discount retailer Burlington Stores (+19%) also hurt the disruption and fueled the market surge, as did resilient corporate earnings. The fund's relative result because store closures earlier in 2020 to curb the rally slowed in September, when stocks spread of COVID-19 had a negative impact on the business. began a two-month retreat amid • Congress's inability to reach a deal on Conversely, several of the fund's top relative contributors, including additional fiscal stimulus, as well as online travel agency Expedia (105%) and hotel & casino firm Caesars concerns about election uncertainty, Entertainment (+87%), benefited materially from improved optimism indications the U.S. economic recovery about economic reopenings amid regulatory approval of three could be slowing and a new wave of coronavirus vaccines late in the period. COVID-19 cases. A shift in momentum began in October and accelerated • Looking ahead, Katie believes that the U.S. consumer will be resilient following the U.S. elections, with the during the remainder of 2021, largely because of unprecedented fiscal approval of three breakthrough COVID- and monetary stimulus, along with the rollout of COOVID-19 vaccines, 19 vaccines and prospects for additional all of which are likely to result in greater economic reopenings. government stimulus fueling the "reflation trade" through February 28. By • Katie has been actively seeking economically sensitive investment sector for the full 12 months, information technology (+50%) and consumer opportunities, particularly in some areas hardest hit by the pandemic, discretionary (+43%) led all gainers. such as travel, entertainment, restaurants and apparel. Materials (+42%) and communication services (+37%) also stood out. In contrast, the defensive utilities (-3%) and real estate sectors (+5%) notably lagged.

Not FDIC Insured • May Lose Value • No Bank Guarantee PORTFOLIO MANAGER Q&A | AS OF FEBRUARY 28, 2021

Q&A

An interview with Portfolio Manager Katherine Shaw

Katherine Shaw Q: Katie, how did the fund perform for the fiscal Portfolio Manager year ending February 28, 2021฀ The fund gained 50.96% the past 12 months, lagging the Fund Facts 64.02% advance of the MSCI US IMI Consumer Discretionary Trading Symbol: FSCPX 25/50 Index, as well as the peer group average, but handily outpacing the 31.29% advance of the broad-based S&P 500® Start Date: June 29, 1990 Index.

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