SUPPLEMENT TO THE FIDELITY FREEDOM FUNDS' MAY 20, 1997 PROSPECTUS
The following information replaces similar information found in the
"Description of Underlying Fidelity Funds" section on pages 22-23:
FIDELITY EUROPE FUND is an equity fund that seeks growth of
capital over the long term by investing in securities of issuers that
have their principal activities in Europe. FMR normally invests at
least 65% of the fund's total assets in these securities.
The fund normally diversifies its investments across different
countries. In allocating the fund's assets across countries, FMR will
consider the size of the market in each country relative to the size
of the markets in Europe as a whole. FMR will also consider such
factors as the potential for economic growth, expected levels of
inflation, governmental policies, and the outlook for currency
relationships.
The fund's performance is closely tied to economic and political
conditions within Europe and the European Economic Area (formerly the
Common Market). Some European countries, particularly those in eastern
Europe, have less stable economies than those in western Europe. A
majority of the European economies continue to be weak, and business
and consumer confidence remains low. The movement of many eastern
European countries toward market economies, and the movement toward a
unified common market may significantly affect European economies and
markets. Eastern European countries are considered emerging
markets.
FIDELITY JAPAN FUND is an equity fund that seeks long-term
growth of capital by investing in securities of Japanese issuers. FMR
normally invests at least 65% of the fund's total assets in these
securities. The fund may also invest in securities of other Southeast
Asian issuers.
Japan's economic growth has declined significantly since 1990. The
general government position has deteriorated as a result of weakening
economic growth and unsuccessful stimulus measures taken to support
economic activity and to restore financial stability. Although the
decline in interest rates and fiscal stimulus packages have helped to
contain recessionary forces, uncertainties remain. Japan is also
heavily dependent upon international trade, so its economy is
especially sensitive to trade barriers. In addition, Japan's banking
industry is undergoing problems related to bad loans and declining
values of real estate.
FIDELITY SOUTHEAST ASIA FUND is an equity fund that seeks
capital appreciation by investing in securities of Southeast Asian
issuers. FMR normally invests at least 65% of the fund's total assets
in these securities. Southeast Asia includes Hong Kong, Indonesia,
South Korea, Malaysia, the Philippines, the People's Republic of
China, Singapore, Taiwan, and Thailand. The fund may also invest in
securities of other Asian and South Pacific issuers, but the fund does
not anticipate investing in Japan.
The fund normally diversifies its investments across different
countries. In allocating the fund's assets across countries, FMR will
consider the size of the market in each country relative to the size
of the markets in Southeast Asia as a whole.
Countries in Southeast Asia are in various stages of economic
development - some are considered emerging markets - but each has
unique risks. Most countries in Southeast Asia are heavily dependent
on international trade. Some have prosperous economies, but are
sensitive to world commodity prices. Others are especially vulnerable
to recession in other countries. Some countries in Southeast Asia have
experienced rapid growth, although many have immature financial
sectors, economic problems, or archaic legal systems. The return of
Hong Kong to Chinese dominion will continue to affect all of Southeast
Asia.
FIDELITY GOVERNMENT SECURITIES FUND seeks high current income,
consistent with preservation of principal, by investing in U.S.
Government securities and instruments related to U.S. Government
securities under normal conditions.
Although the fund does not maintain an average maturity within a
specified range, FMR seeks to manage the fund so that it generally
reacts to changes in interest rates similarly to government bonds with
maturities between five and 12 years. In determining a security's
maturity for purposes of calculating the fund's average maturity, an
estimate of the average time for its principal to be paid may be used.
This can be substantially shorter than its stated final maturity. As
of September 30, 1997, the fund's dollar weighted average maturity was
approximately 8.0 years.
The fund normally invests only in U.S. Government securities,
repurchase agreements and other instruments related to U.S. Government
securities. Under normal conditions, FMR will invest at least 65% of
the fund's total assets in U.S. Government securities and repurchase
agreements for U.S. Government securities. Other instruments may
include futures or options on U.S. Government securities or interests
in U.S. Government securities that have been repackaged by dealers or
other third parties. It is important to note that neither the fund's
share price nor yield is guaranteed by the U.S. Government.
The following information replaces similar information found in the
"Dividends, Capital Gains, and Taxes" section, on page 39:
For federal tax purposes, each fund's income and short-term capital
gains are distributed as dividends and taxed as ordinary income;
capital gain distributions are taxed as long-term capital gains. Every
January, Fidelity will send you and the IRS a statement showing the
tax characterization of distributions paid to you in the previous
year.
