Microsoft 401k BrokerageLink Speciality Fund FAQ

I am interested in investing in specific socially responsible (environmental, social, and governance “(ESG)" and/or religious-affiliated mutual funds. How can I find out if these investments are available through BrokerageLink®?

Some participants in the plan have requested help in finding these types of funds, and the Committee has asked Fidelity to assist with this request. For a one-click experience, there is a link on BrokerageLink Central (NetBenefits® > Quick Links > BrokerageLink) that will take you directly to the Mutual Fund Evaluator tool on Fidelity.com, with the Socially Responsible filter already applied.

Alternatively, to view the list of mutual funds available through BrokerageLink, visit https://fundresearch.fidelity.com/fund-screener

These resources may not identify all the options that you personally consider to be socially responsible or environmental, social, and governance (“ESG”) funds, and may misidentify investments as ESG that you would not personally consider as such. Fidelity does not maintain a separate, searchable category or list of religious-affiliated investments, but you may research specific religious-affiliated investments, fund families, or symbols individually.

Nothing in these resources should be considered an endorsement of a recommendation to invest in, or an indication that Microsoft or the Committee has designated or will monitor or oversee in any way, any of the funds that are identified when following the steps described in this notice.

You may also contact Fidelity at 1-888-810-MSFT (6738) for assistance in determining if your desired investment is available through BrokerageLink. Please note that you must know the name of the fund in order for Fidelity to assist you in finding out if it is available to you in BrokerageLink.

Before investing, consider the funds’ investment objectives, risks, charges, expenses, and available share classes. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

BrokerageLink includes investments beyond those in your plan's lineup. You should compare investments and share classes that are available in your plan's lineup with those available through BrokerageLink, and determine the available investment and share class that is appropriate for your situation. The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance.

MSCI Ratings publishes Environmental, Social and Governance (ESG) ratings on nearly 3,000 companies in North America and over 6,000 companies worldwide. These ratings provide an independent assessment of the sustainable investment value of public companies.

Available funds will be listed according to Morningstar data utilizing Morningstar’s ‘Sustainable Investment’ or ‘Employs Exclusions’ groupings.' Morningstar defines an investment as a “Sustainable Investment” if it is described as focusing on sustainability; impact; or environmental, social, and governance, or ESG; factors in its prospectus or other regulatory filings. At the next level of granularity, “Sustainable Investment” funds are categorized into three distinct groupings. “ESG Funds” primarily incorporate ESG factors into the investment process or engagement activities. “Impact Funds,” in addition to financial return, seek to deliver a measurable impact on specific issues or themes like gender diversity, low carbon, or community development. “Environmental Sector Funds” are strategies that invest in environmentally oriented industries like renewable energy or water.

Morningstar defines “Employs Exclusions” as investments that exclude certain sectors, companies, or practices. This indicator is marked if any exclusions are employed by the investment, even if it is not a “Sustainable Investment” strategy based on the criteria outlined above. Morningstar identifies exclusions in 17 areas including: Norms-Based Screening, Abortion/Stem Cells, Adult Entertainment, Alcohol, Animal Testing, Controversial Weapons, Fur & Specialty Leather, Gambling, GMOs, Military Contracting, Nuclear, Palm Oil, Pesticides, Small Arms, Thermal Coal, Tobacco and Other. “Other” indicates funds that use less common exclusions of controversial industries or regions not included in the previously listed areas.

Please see the fund detail page or fund’s prospectus to understand more about the fund’s investment strategy.

A fund’s ESG criteria will affect the fund’s exposure to certain issuers, industries, sectors, regions and countries and could cause a fund to sell or avoid stocks that subsequently perform well. In addition, stocks that do not meet the ESG criteria could outperform those that do.

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