FIDELITY(REGISTERED TRADEMARK)
FREEDOM
FUNDS - INCOME, 2000, 2010, 2020, 2030
SEMIANNUAL REPORT
SEPTEMBER 30, 1999
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the funds have done over
time.
FUND TALK 14 The managers' review of the
funds' performance, strategy
and outlook.
FREEDOM INCOME 18 Investment Changes
20 Investments
22 Financial Statements
FREEDOM 2000 26 Investment Changes
28 Investments
30 Financial Statements
FREEDOM 2010 34 Investment Changes
36 Investments
38 Financial Statements
FREEDOM 2020 42 Investment Changes
44 Investments
46 Financial Statements
FREEDOM 2030 50 Investment Changes
52 Investments
54 Financial Statements
NOTES 58 Notes to the financial
statements.
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
Other third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
September proved troublesome for the equity markets, as the Dow Jones
Industrial Average shed nearly 1,000 points from its record high set
about a month earlier. Jitters over an exceedingly strong economy and
the direction of short-term interest rates were the primary causes of
the Dow's struggle. Benefiting in part from a mild flight to safety,
prices of the benchmark 30-year Treasury bond were modestly higher for
the month.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. Freedom Funds are already diversified because they
invest in stock, bond and money market funds with both domestic and
foreign exposures. If you have a short investment time horizon, you
might want to consider moving some of your investment into a money
market fund, which seeks income and a stable share price by investing
in high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
FIDELITY FREEDOM INCOME FUND(REGISTERED TRADEMARK)
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Strategic Advisers had not reimbursed certain
fund expenses, the fund's total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM INCOME 1.35% 7.67% 28.73%
FIDELITY FREEDOM INCOME 1.08% 6.89% 29.22%
COMPOSITE
Wilshire 5000 0.68% 26.96% 76.94%
LB Aggregate Bond -0.21% -0.37% 20.43%
LB 3 Month T-Bill 2.43% 4.74% 16.33%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on October 17, 1996. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Fidelity Freedom Income Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Index, the Lehman Brothers Aggregate Bond Index, and the
Lehman Brothers 3 Month Treasury Bill Index according to the composite
benchmark weightings. These benchmarks include reinvested dividends
and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM INCOME 7.67% 8.93%
FIDELITY FREEDOM INCOME 6.89% 9.07%
COMPOSITE
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the
fund had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
Freedom Income FID Freedom Income
LB Aggregate Bond
00369 F0199
LB001
1996/10/17 10000.00 10000.00
10000.00
1996/10/31 10030.00 10028.71
10097.80
1996/11/30 10240.00 10247.43
10270.47
1996/12/31 10179.60 10204.29
10174.95
1997/01/31 10310.89 10344.97
10206.50
1997/02/28 10320.95 10370.50
10232.01
1997/03/31 10199.19 10250.14
10118.44
1997/04/30 10361.97 10421.14
10270.21
1997/05/31 10556.06 10630.51
10367.78
1997/06/30 10709.79 10794.08
10491.16
1997/07/31 11018.25 11099.52
10774.42
1997/08/31 10904.70 10998.75
10682.84
1997/09/30 11101.56 11213.90
10840.94
1997/10/31 11101.33 11223.53
10998.14
1997/11/30 11195.23 11336.98
11048.73
1997/12/31 11290.08 11444.19
11160.32
1998/01/31 11396.39 11537.19
11303.17
1998/02/28 11577.51 11718.56
11294.13
1998/03/31 11716.58 11873.82
11332.53
1998/04/30 11770.00 11948.08
11391.46
1998/05/31 11780.60 11951.40
11499.68
1998/06/30 11933.05 12096.33
11597.23
1998/07/31 11954.76 12074.88
11621.84
1998/08/31 11669.66 11799.62
11811.01
1998/09/30 11955.69 12089.29
12087.52
1998/10/31 12121.51 12262.52
12023.75
1998/11/30 12298.83 12461.41
12091.84
1998/12/31 12543.67 12655.32
12128.21
1999/01/31 12689.53 12803.77
12214.83
1999/02/28 12543.61 12636.89
12001.56
1999/03/31 12701.39 12784.03
12068.15
1999/04/30 12803.33 12941.11
12106.41
1999/05/31 12711.79 12859.08
11999.87
1999/06/30 12872.43 12995.73
11961.55
1999/07/31 12826.25 12912.40
11911.31
1999/08/31 12849.68 12906.59
11905.26
1999/09/30 12872.52 12922.34
12043.41
IMATRL PRASUN SHR__CHT 19990930 19991011 100318 R00000000000039
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Freedom Income Fund on October 17, 1996, when the
fund started. As the chart shows, by September 30, 1999, the value of
the investment would have grown to $12,873 - a 28.73% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Aggregate Bond Index* did over the same period. With dividends and
capital gains, if any, reinvested, the same $10,000 investment would
have grown to $12,043 - a 20.43% increase. With dividends and capital
gains, if any, reinvested, the same $10,000 investment in the Fidelity
Freedom Income Composite Index would have grown to $12,922 - a 29.22%
increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
* LEHMAN BROTHERS AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED
INDEX OF INVESTMENT-GRADE FIXED-RATE DEBT ISSUES, INCLUDING
GOVERNMENT, CORPORATE, ASSET-BACKED, AND MORTGAGE-BACKED SECURITIES,
WITH MATURITIES OF ONE YEAR OR MORE.
FIDELITY FREEDOM 2000 FUND(REGISTERED TRADEMARK)
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Strategic Advisers had not reimbursed certain
fund expenses, the fund's total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2000 1.67% 13.15% 41.38%
FIDELITY FREEDOM 2000 COMPOSITE 0.99% 11.50% 41.31%
Wilshire 5000 0.68% 26.96% 76.94%
MSCI EAFE 7.15% 31.24% 34.92%
LB Aggregate Bond -0.21% -0.37% 20.43%
ML High Yield Master II -0.68% 3.92% 21.65%
LB 3 Month T-Bill 2.43% 4.74% 16.33%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on October 17, 1996. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Fidelity Freedom 2000 Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Index, the Morgan Stanley Capital International Europe,
Australasia and Far East (MSCI EAFE) Index, the Lehman Brothers
Aggregate Bond Index, the Merrill Lynch High Yield Master II Index,
and the Lehman Brothers 3 Month Treasury Bill Index. The index
weightings are adjusted twice a year to reflect the fund's changing
asset allocations. These benchmarks include reinvested dividends and
capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2000 13.15% 12.44%
FIDELITY FREEDOM 2000 COMPOSITE 11.50% 12.42%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the
fund had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
Freedom 2000 FID Freedom 2000
LB Aggregate Bond
00370 F0200
LB001
1996/10/17 10000.00 10000.00
10000.00
1996/10/31 10000.00 10002.52
10097.80
1996/11/30 10340.00 10362.73
10270.47
1996/12/31 10239.47 10280.37
10174.95
1997/01/31 10441.23 10501.92
10206.50
1997/02/28 10451.32 10529.59
10232.01
1997/03/31 10209.21 10300.29
10118.44
1997/04/30 10451.32 10553.16
10270.21
1997/05/31 10806.18 10932.91
10367.78
1997/06/30 11070.24 11220.86
10491.16
1997/07/31 11578.05 11701.60
10774.42
1997/08/31 11313.99 11459.88
10682.84
1997/09/30 11669.45 11831.19
10840.94
1997/10/31 11517.11 11718.65
10998.14
1997/11/30 11669.45 11892.63
11048.73
1997/12/31 11805.30 12041.33
11160.32
1998/01/31 11941.83 12167.55
11303.17
1998/02/28 12319.94 12540.95
11294.13
1998/03/31 12582.51 12825.35
11332.53
1998/04/30 12656.03 12924.39
11391.46
1998/05/31 12591.25 12852.00
11499.68
1998/06/30 12836.88 13081.24
11597.23
1998/07/31 12847.56 13004.08
11621.84
1998/08/31 12067.95 12266.96
11811.01
1998/09/30 12495.13 12674.17
12087.52
1998/10/31 12826.20 13043.73
12023.75
1998/11/30 13189.31 13433.11
12091.84
1998/12/31 13607.24 13793.70
12128.21
1999/01/31 13872.10 14024.94
12214.83
1999/02/28 13618.27 13741.31
12001.56
1999/03/31 13905.21 13992.72
12068.15
1999/04/30 14092.82 14281.73
12106.41
1999/05/31 13912.35 14102.24
11999.87
1999/06/30 14250.30 14366.11
11961.55
1999/07/31 14160.18 14214.06
11911.31
1999/08/31 14182.71 14174.87
11905.26
1999/09/30 14137.65 14131.34
12043.41
IMATRL PRASUN SHR__CHT 19990930 19991011 154651 R00000000000039
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Freedom 2000 Fund on October 17, 1996, when the
fund started. As the chart shows, by September 30, 1999 the value of
the investment would have grown to $14,138 - a 41.38% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Aggregate Bond Index* did over the same period. With dividends and
capital gains, if any, reinvested, the same $10,000 investment would
have grown to $12,043 - a 20.43% increase. With dividends and capital
gains, if any, reinvested, the same $10,000 investment in the Fidelity
Freedom 2000 Composite Index would have grown to $14,131 - a 41.31%
increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
* LEHMAN BROTHERS AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED
INDEX OF INVESTMENT-GRADE FIXED-RATE DEBT ISSUES, INCLUDING
GOVERNMENT, CORPORATE, ASSET-BACKED, AND MORTGAGE-BACKED SECURITIES,
WITH MATURITIES OF ONE YEAR OR MORE.
FIDELITY FREEDOM 2010 FUND(REGISTERED TRADEMARK)
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Strategic Advisers had not reimbursed certain
fund expenses, the fund's total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2010 2.40% 20.24% 55.39%
FIDELITY FREEDOM 2010 COMPOSITE 1.15% 17.41% 53.58%
Wilshire 5000 0.68% 26.96% 76.94%
MSCI EAFE 7.15% 31.24% 34.92%
LB Aggregate Bond -0.21% -0.37% 20.43%
ML High Yield Master II -0.68% 3.92% 21.65%
LB 3 Month T-Bill 2.43% 4.74% 16.33%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on October 17, 1996. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Fidelity Freedom 2010 Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Index, the Morgan Stanley Capital International Europe,
Australasia and Far East (MSCI EAFE) Index, the Lehman Brothers
Aggregate Bond Index, the Merrill Lynch High Yield Master II Index,
and the Lehman Brothers 3 Month Treasury Bill Index. The index
weightings are adjusted twice a year to reflect the fund's changing
asset allocations. These benchmarks include reinvested dividends and
capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2010 20.24% 16.10%
FIDELITY FREEDOM 2010 COMPOSITE 17.41% 15.64%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the
fund had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
Freedom 2010 FID Freedom 2010
S&P 500
00371 F0201
SP001
1996/10/17 10000.00 10000.00
10000.00
1996/10/31 9960.00 9960.03
9982.17
1996/11/30 10430.00 10444.15
10736.72
1996/12/31 10299.25 10344.11
10524.02
1997/01/31 10592.36 10650.17
11181.56
1997/02/28 10602.47 10682.28
11269.23
1997/03/31 10258.82 10367.68
10806.17
1997/04/30 10582.25 10687.67
11451.30
1997/05/31 11099.54 11243.87
12148.46
1997/06/30 11475.28 11654.34
12692.71
1997/07/31 12165.83 12290.45
13702.67
1997/08/31 11749.47 11910.04
12935.04
1997/09/30 12267.38 12438.75
13643.50
1997/10/31 11932.26 12159.15
13187.80
1997/11/30 12145.52 12399.76
13798.27
1997/12/31 12293.47 12582.61
14035.18
1998/01/31 12461.73 12730.82
14190.41
1998/02/28 13071.67 13334.22
15213.83
1998/03/31 13471.28 13772.61
15992.93
1998/04/30 13576.44 13899.05
16153.81
1998/05/31 13404.55 13723.60
15876.13
1998/06/30 13746.61 14042.37
16521.02
1998/07/31 13746.61 13900.44
16345.07
1998/08/31 12346.29 12575.38
13981.90
1998/09/30 12923.52 13080.16
14877.58
1998/10/31 13447.31 13697.21
16087.72
1998/11/30 14024.54 14303.03
17062.80
1998/12/31 14667.60 14867.78
18045.96
1999/01/31 15064.61 15197.64
18800.64
1999/02/28 14711.71 14797.52
18216.32
1999/03/31 15174.90 15183.07
18945.15
1999/04/30 15483.69 15647.12
19678.90
1999/05/31 15201.25 15357.13
19214.28
1999/06/30 15764.68 15805.85
20280.67
1999/07/31 15640.73 15571.25
19647.51
1999/08/31 15663.26 15493.26
19550.25
1999/09/30 15539.31 15357.67
19014.38
IMATRL PRASUN SHR__CHT 19990930 19991011 155754 R00000000000039
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Freedom 2010 Fund on October 17, 1996, when the
fund started. As the chart shows, by September 30, 1999, the value of
the investment would have grown to $15,539 - a 55.39% increase on the
initial investment. For comparison, look at how the S&P 500(registered
trademark) Index* did over the same period. With dividends and capital
gains, if any, reinvested, the same $10,000 investment would have
grown to $19,014 - a 90.14% increase. With dividends and capital
gains, if any, reinvested, the same $10,000 investment in the Fidelity
Freedom 2010 Composite Index would have grown to $15,358 - a 53.58%
increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
* STANDARD & POOR'S 500 INDEX IS A MARKET CAPITALIZATION-WEIGHTED
INDEX OF COMMON STOCKS.
FIDELITY FREEDOM 2020 FUND(REGISTERED TRADEMARK)
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Strategic Advisers had not reimbursed certain
fund expenses, the fund's total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2020 3.03% 25.93% 63.74%
FIDELITY FREEDOM 2020 COMPOSITE 1.36% 22.01% 60.63%
Wilshire 5000 0.68% 26.96% 76.94%
MSCI EAFE 7.15% 31.24% 34.92%
LB Aggregate Bond -0.21% -0.37% 20.43%
ML High Yield Master II -0.68% 3.92% 21.65%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months one year or since
the fund started on October 17, 1996. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Fidelity Freedom 2020 Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Index, the Morgan Stanley Capital International Europe,
Australasia and Far East (MSCI EAFE) Index, the Lehman Brothers
Aggregate Bond Index, and the Merrill Lynch High Yield Master II
Index. The index weightings are adjusted twice a year to reflect the
fund's changing asset allocations. These benchmarks include reinvested
dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2020 25.93% 18.17%
FIDELITY FREEDOM 2020 COMPOSITE 22.01% 17.41%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the
fund had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
Freedom 2020 FID Freedom 2020
S&P 500
00372 F0202
SP001
1996/10/17 10000.00 10000.00
10000.00
1996/10/31 9940.00 9933.36
9982.17
1996/11/30 10460.00 10475.14
10736.72
1996/12/31 10329.39 10372.49
10524.02
1997/01/31 10662.27 10725.50
11181.56
1997/02/28 10672.36 10759.19
11269.23
1997/03/31 10299.13 10408.01
10806.17
1997/04/30 10652.18 10758.63
11451.30
1997/05/31 11249.41 11406.63
12148.46
1997/06/30 11685.20 11878.54
12692.71
1997/07/31 12455.43 12592.27
13702.67
1997/08/31 11958.84 12134.28
12935.04
1997/09/30 12566.91 12750.72
13643.50
1997/10/31 12110.86 12358.92
13187.80
1997/11/30 12364.22 12637.85
13798.27
1997/12/31 12523.50 12836.31
14035.18
1998/01/31 12691.46 12991.52
14190.41
1998/02/28 13457.77 13746.82
15213.83
1998/03/31 13940.66 14286.84
15992.93
1998/04/30 14056.13 14430.61
16153.81
1998/05/31 13821.29 14181.06
15876.13
1998/06/30 14225.30 14555.09
16521.02
1998/07/31 14214.67 14367.31
16345.07
1998/08/31 12354.11 12611.87
13981.90
1998/09/30 13002.65 13165.52
14877.58
1998/10/31 13683.08 13964.36
16087.72
1998/11/30 14406.04 14711.26
17062.80
1998/12/31 15237.35 15423.52
18045.96
1999/01/31 15717.96 15826.76
18800.64
1999/02/28 15313.81 15355.01
18216.32
1999/03/31 15892.72 15846.83
18945.15
1999/04/30 16296.87 16452.72
19678.90
1999/05/31 15948.57 16085.57
19214.28
1999/06/30 16720.82 16698.22
20280.67
1999/07/31 16552.94 16399.02
19647.51
1999/08/31 16586.51 16292.96
19550.25
1999/09/30 16373.87 16062.69
19014.38
IMATRL PRASUN SHR__CHT 19990930 19991012 120337 R00000000000039
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Freedom 2020 Fund on October 17, 1996, when the
fund started. As the chart shows, by September 30, 1999, the value of
the investment would have grown to $16,374 - a 63.74% increase on the
initial investment. For comparison, look at how the S&P 500 Index* did
over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $19,014 -
a 90.14% increase. With dividends and capital gains, if any,
reinvested, the same $10,000 investment in the Fidelity Freedom 2020
Composite Index would have grown to $16,063 - a 60.63% increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
* STANDARD & POOR'S 500 INDEX IS A MARKET CAPITALIZATION-WEIGHTED
INDEX OF COMMON STOCKS.
FIDELITY FREEDOM 2030 FUND(REGISTERED TRADEMARK)
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Strategic Advisers had not reimbursed certain
fund expenses, the fund's total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2030 3.44% 28.33% 65.93%
FIDELITY FREEDOM 2030 COMPOSITE 1.46% 23.55% 61.45%
Wilshire 5000 0.68% 26.96% 76.94%
MSCI EAFE 7.15% 31.24% 34.92%
LB Aggregate Bond -0.21% -0.37% 20.43%
ML High Yield Master II -0.68% 3.92% 21.65%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year or since the fund
started on October 17, 1996. For example, if you had invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Fidelity Freedom 2030 Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Index, the Morgan Stanley Capital International Europe,
Australasia and Far East (MSCI EAFE) Index, the Lehman Brothers
Aggregate Bond Index, and the Merrill Lynch High Yield Master II
Index. The index weightings are adjusted twice a year to reflect the
fund's changing asset allocations. These benchmarks include reinvested
dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 1 YEAR LIFE OF FUND
1999
FIDELITY FREEDOM 2030 28.33% 18.71%
FIDELITY FREEDOM 2030 COMPOSITE 23.55% 17.61%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the
fund had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
Freedom 2030 FID Freedom 2030
S&P 500
00373 F0203
SP001
1996/10/17 10000.00 10000.00
10000.00
1996/10/31 9930.00 9925.43
9982.17
1996/11/30 10460.00 10473.38
10736.72
1996/12/31 10329.39 10374.39
10524.02
1997/01/31 10662.27 10718.38
11181.56
1997/02/28 10682.44 10759.42
11269.23
1997/03/31 10299.13 10411.69
10806.17
1997/04/30 10652.18 10759.30
11451.30
1997/05/31 11289.01 11426.04
12148.46
1997/06/30 11734.10 11912.66
12692.71
1997/07/31 12513.00 12628.10
13702.67
1997/08/31 11997.10 12148.33
12935.04
1997/09/30 12634.39 12781.66
13643.50
1997/10/31 12128.61 12353.86
13187.80
1997/11/30 12381.50 12631.32
13798.27
1997/12/31 12539.75 12829.68
14035.18
1998/01/31 12728.00 12995.84
14190.41
1998/02/28 13522.85 13784.42
15213.83
1998/03/31 14035.31 14344.16
15992.93
1998/04/30 14160.81 14490.24
16153.81
1998/05/31 13910.46 14227.93
15876.13
1998/06/30 14319.91 14605.62
16521.02
1998/07/31 14309.13 14414.17
16345.07
1998/08/31 12272.67 12529.23
13981.90
1998/09/30 12929.94 13067.53
14877.58
1998/10/31 13651.86 13915.36
16087.72
1998/11/30 14438.43 14705.82
17062.80
1998/12/31 15312.95 15449.23
18045.96
1999/01/31 15820.07 15867.76
18800.64
1999/02/28 15401.14 15384.09
18216.32
1999/03/31 16040.56 15911.79
18945.15
1999/04/30 16481.54 16566.13
19678.90
1999/05/31 16108.67 16170.00
19214.28
1999/06/30 16964.19 16836.74
20280.67
1999/07/31 16795.34 16526.71
19647.51
1999/08/31 16829.11 16412.03
19550.25
1999/09/30 16592.71 16144.64
19014.38
IMATRL PRASUN SHR__CHT 19990930 19991012 120118 R00000000000039
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Freedom 2030 Fund on October 17, 1996, when the
fund started. As the chart shows, by September 30, 1999, the value of
the investment would have grown to $16,593 - a 65.93% increase on the
initial investment. For comparison, look at how the S&P 500 Index* did
over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $19,014 -
a 90.14% increase. With dividends and capital gains, if any,
reinvested, the same $10,000 investment in the Fidelity Freedom 2030
Composite Index would have grown to $16,145 - a 61.45% increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
* STANDARD & POOR'S 500 INDEX IS A MARKET CAPITALIZATION-WEIGHTED
INDEX OF COMMON STOCKS.
FUND TALK: THE MANAGERS' OVERVIEW
MARKET RECAP
One of the few things that remained
the same in the U.S. stock and bond
markets during the six-month period
ending September 30, 1999, was
constant change. While the Dow Jones
Industrial Average and Standard &
Poor's 500 Index held on to their
gains for the period, the momentum
the market enjoyed in the second
quarter reversed course as the Dow
and S&P 500 lost 5.40% and 6.24%,
respectively, during the third quarter.
For the six-month period, the Dow
Jones Industrials and S&P 500 index
posted total returns of 6.43% and
0.37%, respectively. With the
exception of the persistently buoyant
technology sector, most stocks were
significantly below their peak levels
as investors sold off equities in light
of the bearish interest-rate outlook.
The combination of ongoing strength
in the U.S. economy and a growing
recovery in global markets prompted
fears of inflation. In an effort to slow
the domestic economy and pre-empt
inflation, the Federal Reserve Board
raised interest rates by 0.25
percentage points on June 30 and
again on August 24. In response
to the interest-rate hikes, and in
anticipation of further increases, the
bellwether 30-year Treasury bond
yield - which moves in the opposite
direction of its price - increased to
6.06% at the end of the period, from
its low of 5.43% in April. During the
six-month period, the Lehman
Brothers Aggregate Bond Index -
a broad measure of the U.S.
taxable bond market - lost 0.21%.
(photograph of Ren Cheng)(photograph of Scott Stewart)
An interview with Scott Stewart (right photo) and Ren Cheng, Portfolio
Managers of Fidelity Freedom Funds
Q. HOW DID THE FUNDS PERFORM, SCOTT?
S.S. For the six-month period that ended September 30, 1999, the
Income, 2000 and 2010 portfolios returned 1.35%, 1.67% and 2.40%,
respectively. The 2020 and 2030 portfolios returned 3.03% and 3.44%,
respectively, over the same period. Each Freedom Fund compares its
performance to a composite benchmark, which comprises various indexes
and reflects the fund's target allocation mix. Over the past six
months, the composite benchmarks for the Income, 2000 and 2010
portfolios returned 1.08%, 0.99% and 1.15%, respectively. The
composite benchmarks for the 2020 and 2030 portfolios returned 1.36%
and 1.46%, respectively, during the same period. For the 12-month
period that ended September 30, 1999, the Income, 2000 and 2010
portfolios returned 7.67%, 13.15% and 20.24%, respectively. The 2020
and 2030 portfolios returned 25.93% and 28.33%, respectively, over the
same period. The composite benchmarks for the Income, 2000 and 2010
portfolios returned 6.89%, 11.50% and 17.41%, respectively. The
benchmarks for the 2020 and 2030 portfolios returned 22.01% and
23.55%, respectively, during the same period.
Q. TURNING TO YOU, REN, WHAT FACTORS INFLUENCED PERFORMANCE OVER THE
SIX-MONTH PERIOD?
R.C. Concern over rising interest rates wasn't the only fear to plague
the marketplace over the past six months. Unusually high stock
valuations also weighed heavily on shareholders' minds, which fueled a
dramatic style rotation early in the period from large-cap growth to
smaller-cap stocks and value investments. Amid this widespread shift
in sentiment, the Freedom Funds still managed to post positive returns
relative to their benchmarks for the six-month period. This was by
design. The funds' built-in diversification, once again, proved
successful in weathering the most extreme market moves. As you would
expect, the longer-dated Freedom Funds performed the best due to a
higher degree of equity exposure. The portfolios garnered additional
returns from Fidelity's research strength, which helped navigate the
underlying Fidelity funds in picking the right securities.
Q. WHAT SEGMENTS OF THE MARKET CONTRIBUTED TO PERFORMANCE? WHICH HURT?
R.C. The Freedom Funds' positions in Fidelity international equity
funds - most notably Japan and Southeast Asia - performed well over
the past six months. Economic recoveries and corporate restructuring
programs fueled the Japanese market, bolstering performance. In the
U.S., the strong growth of the Internet and consumer demand for data
services and telecommunications powered the technology sector during
the period. Some of the underlying domestic equity funds that
benefited from these trends included Growth Company and OTC. With
respect to the funds' underlying high-yield investments, Capital &
Income posted strong returns amid a generally poor period for bonds.
Superior credit research was the key for us here. Conversely, some of
the portfolios' underlying funds that concentrate their investments in
large-cap companies - such as Blue Chip Growth, Growth & Income and
Fidelity Fund - suffered during the style rotation of the period. On
the bond side of the equation, underlying investment-grade funds were
handcuffed amid deteriorating interest-rate conditions, keeping
portfolio returns restrained for the period.
Q. WHAT ARE THE BENEFITS OF OWNING FUNDS ACROSS THE STYLE SPECTRUM?
R.C. Within the equity market, there are several different investment
classes and styles. Some funds specialize in larger-cap stocks, some
on smaller-cap stocks. Some specialize in growth, some in
value-oriented companies. It's important to know that in this
investment world, nothing outperforms anything else forever, and it's
very difficult to forecast with any degree of certainty what's going
to outperform going forward. So, in order to control portfolio risk,
you can't put all of your eggs in one basket, and you need to have
various asset classes that cover the entire spectrum. This is exactly
what Freedom Funds do. They represent yet another way to look at
diversification.
Q. WHAT'S YOUR OUTLOOK?
R.C. I don't see any discernable signs of inflationary pressures
building up in the economy. It's become apparent that the Internet and
the "dot.coms" are chipping away at the very foundation of traditional
inflation, every day, brick by brick - with every click. I do believe,
however, that the fear of rising interest rates will linger for some
time to come, keeping major markets on uncertain footing. In terms of
the funds' strategy, we'll gradually reallocate each Freedom Fund's
target investment mix over the coming months. The table below
illustrates the target mix we'd like to achieve for each portfolio by
the next time we address our shareholders on March 31, 2000.
INCOME 2000 2010 2020 2030
Domestic Equity Funds 20.0% 31.5% 47.0% 63.2% 70.0%
International Equity Funds - 2.9% 6.8% 10.8% 13.3%
Inv. Grade Fixed-Income Funds 40.0% 39.7% 34.0% 18.5% 8.3%
High Yield Fixed-Income Funds - 2.8% 5.9% 7.5% 8.4%
Money Market Funds 40.0% 23.1% 6.3% - -
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGERS ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
REFLECTING THE CHANGES TO THE TARGET INVESTMENT MIXES DESCRIBED ABOVE,
EACH FUND'S COMPOSITE BENCHMARK WILL CHANGE ITS ALLOCATION AS OF
DECEMBER 31, 1999. THE TABLE BELOW ILLUSTRATES THESE CHANGES.
COMPOSITE BENCHMARKS
INCOME 2000 2010 2020 2030
Wilshire 5000 20.0% 32.7% 48.6% 63.9% 69.8%
MSCI EAFE - 3.3% 7.3% 11.1% 13.7%
LB Aggregate Bond 40.0% 39.7% 32.5% 17.5% 7.8%
ML High Yield Master II - 3.1% 6.1% 7.5% 8.7%
LB 3 Month T-Bill 40.0% 21.2% 5.5% - -
(checkmark)FUND FACTS
GOAL: The Income fund seeks
high current income and, as
a secondary objective,
capital appreciation. The
2000, 2010, 2020 and
2030 funds each seek high
total return. Each fund seeks
to achieve its goal by
investing in a combination of
equity, fixed-income and
money market underlying
Fidelity funds.
FUND NUMBERS: Income (369);
2000 (370); 2010 (371);
2020 (372); 2030 (373)
SIZE: as of September 30,
1999, more than $216
million (Income); $621 million
(2000); $1.3 billion (2010);
$1.2 billion (2020); $537
million (2030)
MANAGERS: Ren Cheng,
since inception; manager,
various structured investments
for Fidelity Management Trust
Company; joined Fidelity in
1994; Scott Stewart, since
inception; manager, Fidelity
Fifty, 1993-1999; founder
and head of Fidelity's
Structured Equity Group,
since 1987; joined Fidelity in
1987
REN CHENG ON WHAT HAPPENS
TO A FREEDOM FUND IN ITS
TARGET YEAR:
"One of the major benefits to
shareholders is that Freedom
Funds do not mature. That is,
investors are not required to
re-allocate to another investment
when a fund reaches its target
date. Let's take Freedom 2000 as
an example. With the projected
investor retirement age at 65, this
fund's asset allocation will roll
down fully to the Freedom Income
Fund - meaning, move to the
most conservative asset mix -
approximately six to seven years
later, or the year 2006-2007. At
that time, it will merge with
Freedom Income. During the
roll-down process, the focus will
rest squarely on keeping risk
control in place. This reflects the
current demographic trend of not
ending all income sources
immediately upon retirement,
since, as we know, many people
continue to work part-time for a
while after they officially retire.
The funds don't mature because
investment-wise, there isn't a
distinct line between
pre-retirement and
post-retirement. It's typically a
gradual transition.
"Portfolio risk control in
post-retirement is even more
important than in pre-retirement
because in the latter, an investor
continues to put money in, taking
advantage of dollar-cost
averaging. Conversely, as the
shareholder takes money out, any
market dip will undoubtedly hurt
him. The Freedom Funds recognize
the importance of managing risk
in post-retirement, and help by
designing a very smooth roll-down
process."
FIDELITY FREEDOM INCOME FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
FUND HOLDINGS AS OF SEPTEMBER
30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 3.0% 2.9%
Disciplined Equity Fund 2.9 3.0
Equity-Income Fund 2.8 2.9
Fidelity Fund 2.9 3.0
Growth & Income Portfolio 3.0 2.9
Growth Company Fund 2.8 3.0
OTC Portfolio 2.1 2.0
19.5 19.7
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 15.2 15.1
Intermediate Bond Fund 9.9 9.9
Investment Grade Bond Fund 15.2 15.2
40.3 40.2
MONEY MARKET FUND
Fidelity Money Market Trust: 40.2 40.1
Retirement Money Market
Portfolio
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
Row: 1, Col: 1, Value: 40.1
Row: 1, Col: 2, Value: 40.2
Row: 1, Col: 3, Value: 19.7
19.7%
40.1%
40.2%
CURRENT
Row: 1, Col: 1, Value: 40.2
Row: 1, Col: 2, Value: 40.3
Row: 1, Col: 3, Value: 19.5
19.5%
40.2%
40.3%
EXPECTED
Row: 1, Col: 1, Value: 40.0
Row: 1, Col: 2, Value: 40.0
Row: 1, Col: 3, Value: 20.0
20.0%
40.0%
40.0%
Domestic Equity funds
Investment Grade Fixed-Income funds
Money Market fund
THE SIX MONTHS AGO ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF
MARCH 31, 1999. THE CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS
AS OF SEPTEMBER 30, 1999. THE EXPECTED ALLOCATION REPRESENTS THE
FUND'S ANTICIPATED TARGET ASSET ALLOCATION AT MARCH 31, 2000.
FIDELITY FREEDOM INCOME FUND
INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
EQUITY FUNDS - 19.5%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 19.5%
Blue Chip Growth Fund 128,053 $ 6,412,913
Disciplined Equity Fund 198,491 6,202,857
Equity-Income Fund 110,124 6,170,222
Fidelity Fund 175,636 6,231,548
Growth & Income Portfolio 151,490 6,530,742
Growth Company Fund 98,143 6,166,322
OTC Portfolio 94,849 4,506,292
TOTAL EQUITY FUNDS 42,220,896
(Cost $36,594,134)
FIXED-INCOME FUNDS - 40.3%
INVESTMENT GRADE FIXED-INCOME
FUNDS - 40.3%
Government Income Fund 3,454,054 32,951,675
Intermediate Bond Fund 2,180,690 21,545,217
Investment Grade Bond Fund 4,709,702 33,015,009
TOTAL FIXED-INCOME FUNDS 87,511,901
(Cost $90,950,155)
MONEY MARKET FUND - 40.2%
Fidelity Money Market Trust: 87,229,725 87,229,725
Retirement Money Market
Portfolio (Cost $87,229,725)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT
Investments in repurchase $ 29,004 29,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.25%,
dated 9/30/99 due 10/1/99
(Cost $29,000)
TOTAL INVESTMENT IN $ 216,991,522
SECURITIES - 100%
(Cost $214,803,014)
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$57,201,808 and $34,681,030, respectively.
INCOME TAX INFORMATION
At September 30, 1999, the aggregate cost of investment securities for
income tax purposes was $215,492,228. Net unrealized appreciation
aggregated $1,499,294, of which $5,409,109 related to appreciated
investment securities and $3,909,815 related to depreciated investment
securities.
FIDELITY FREEDOM INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 216,991,522
value (including repurchase
agreements of $29,000) (cost
$214,803,014) - See
accompanying schedule
Cash 291
Receivable for Freedom Fund 644,022
shares sold
Dividends receivable 792,247
TOTAL ASSETS 218,428,082
LIABILITIES
Payable for underlying fund $ 896,472
shares purchased
Payable for Freedom Fund 529,339
shares redeemed
Accrued management fee 14,441
Distributions payable 769
TOTAL LIABILITIES 1,441,021
NET ASSETS $ 216,987,061
Net Assets consist of:
Paid in capital $ 213,294,739
Undistributed net investment 816,961
income
Accumulated undistributed net 686,853
realized gain (loss) on
investments
Net unrealized appreciation 2,188,508
(depreciation) on investments
NET ASSETS, for 19,569,885 $ 216,987,061
shares outstanding
NET ASSET VALUE, offering $11.09
price and redemption price
per share ($216,987,061
(divided by) 19,569,885
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER
30, 1999 (UNAUDITED)
INVESTMENT INCOME $ 4,718,897
Income distributions from
underlying funds
Interest 1,054
TOTAL INCOME 4,719,951
EXPENSES
Management fee $ 107,533
Non-interested trustees' 298
compensation
Total expenses before 107,831
reductions
Expense reductions (31,555) 76,276
NET INVESTMENT INCOME 4,643,675
REALIZED AND UNREALIZED GAIN 249,647
(LOSS)
Realized gain (loss) on sale
of underlying fund shares
Capital gain distributions 1,274,750 1,524,397
from underlying funds
Change in net unrealized (3,421,798)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (1,897,401)
NET INCREASE (DECREASE) IN $ 2,746,274
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 21,820
investment adviser
Transfer agent credits 9,735
$ 31,555
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER YEAR ENDED MARCH 31,
30, 1999 (UNAUDITED) 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 4,643,675 $ 5,707,270
income
Net realized gain (loss) 1,524,397 1,145,393
Change in net unrealized (3,421,798) 4,467,050
appreciation (depreciation)
NET INCREASE (DECREASE) IN 2,746,274 11,319,713
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (4,579,484) (5,362,025)
From net investment income
From net realized gain (1,299,242) (1,020,486)
TOTAL DISTRIBUTIONS (5,878,726) (6,382,511)
Share transactions Net 115,207,467 277,936,617
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 5,779,118 6,288,639
Cost of Freedom Fund shares (98,504,612) (146,997,230)
redeemed
NET INCREASE (DECREASE) IN 22,481,973 137,228,026
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 19,349,521 142,165,228
IN NET ASSETS
NET ASSETS
Beginning of period 197,637,540 55,472,312
End of period (including $ 216,987,061 $ 197,637,540
undistributed net investment
income of $816,961 and
$752,770, respectively)
OTHER INFORMATION
Shares
Sold 10,299,175 25,277,092
Issued in reinvestment of 518,094 571,496
distributions
Redeemed (8,813,703) (13,347,804)
Net increase (decrease) 2,003,566 12,500,784
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED SEPTEMBER YEARS ENDED MARCH 31,
30, 1999 (UNAUDITED)
1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 11.25 $ 10.95 $ 10.06 $ 10.00
period
Income from Investment
Operations
Net investment income D .24 .49 .50 .22
Net realized and unrealized (.09) .40 .96 (.02)
gain (loss)
Total from investment .15 .89 1.46 .20
operations
Less Distributions
From net investment income (.24) (.47) (.51) (.14)
From net realized gain (.07) (.12) (.06) -
Total distributions (.31) (.59) (.57) (.14)
Net asset value, end of period $ 11.09 $ 11.25 $ 10.95 $ 10.06
TOTAL RETURN B, C 1.35% 8.41% 14.88% 1.99%
RATIOS AND SUPPLEMENTAL DATA
(amounts do not include the
activity of the underlying
funds)
Net assets, end of period $ 216,987 $ 197,638 $ 55,472 $ 9,427
(000 omitted)
Ratio of expenses to average .08% A, F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% A, G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 4.32% A 4.46% 4.71% 4.95% A
income to average net assets
Portfolio turnover rate 33% A 29% 33% 32% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD OCTOBER 17, 1996 (COMMENCEMENT OF OPERATIONS) TO
MARCH 31, 1997.
F STRATEGIC ADVISERS AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S
EXPENSE RATIO WOULD HAVE BEEN HIGHER.
G STRATEGIC ADVISERS OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES.
FIDELITY FREEDOM 2000 FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
FUND HOLDINGS AS OF SEPTEMBER
30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 5.1% 5.1%
Disciplined Equity Fund 5.0 5.1
Equity-Income Fund 5.0 5.0
Fidelity Fund 5.0 5.1
Growth & Income Portfolio 5.2 5.1
Growth Company Fund 4.9 5.1
OTC Portfolio 3.6 3.4
33.8 33.9
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 0.9 0.9
Europe Fund 1.2 1.2
Japan Fund 0.4 0.3
Overseas Fund 0.9 0.9
Southeast Asia Fund 0.2 0.1
3.6 3.4
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 14.9 15.2
Intermediate Bond Fund 9.8 10.0
Investment Grade Bond Fund 15.0 15.2
39.7 40.4
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 3.5 3.3
MONEY MARKET FUND
Fidelity Money Market Trust: 19.4 19.0
Retirement Money Market
Portfolio
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
19.0% (MM)
33.9% (DE)
3.3% (HY)
40.4% (IG)
3.4% (IE)
Row: 1, Col: 1, Value: 19.0
Row: 1, Col: 2, Value: 3.3
Row: 1, Col: 3, Value: 40.4
Row: 1, Col: 4, Value: 3.4
Row: 1, Col: 5, Value: 33.9
CURRENT
19.4% (MM)
33.8% (DE)
3.5% (HY)
3.6% (IE)
39.7% (IG)
Row: 1, Col: 1, Value: 19.4
Row: 1, Col: 2, Value: 3.5
Row: 1, Col: 3, Value: 39.7
Row: 1, Col: 4, Value: 3.6
Row: 1, Col: 5, Value: 33.8
EXPECTED
23.1% (MM)
31.5% (DE)
2.8% (HY)
39.7% (IG)
2.9% (IE)
Row: 1, Col: 1, Value: 23.1
Row: 1, Col: 2, Value: 2.8
Row: 1, Col: 3, Value: 39.7
Row: 1, Col: 4, Value: 2.9
Row: 1, Col: 5, Value: 31.5
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
IG = Investment Grade funds
HY = High Yield funds
Money Market fund (MM)
THE FUND INVESTS ACCORDING TO AN ASSET ALLOCATION STRATEGY THAT
BECOMES INCREASINGLY CONSERVATIVE OVER TIME. THE SIX MONTHS AGO
ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31, 1999. THE
CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF SEPTEMBER 30,
1999. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT MARCH 31, 2000.
FIDELITY FREEDOM 2000 FUND
INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EQUITY FUNDS - 37.4%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 33.8%
Blue Chip Growth Fund 635,956 $ 31,848,653
Disciplined Equity Fund 989,470 30,920,922
Equity-Income Fund 549,074 30,764,631
Fidelity Fund 874,070 31,012,013
Growth & Income Portfolio 753,058 32,464,319
Growth Company Fund 488,153 30,670,668
OTC Portfolio 470,556 22,356,093
210,037,299
INTERNATIONAL EQUITY FUNDS -
3.6%
Diversified International Fund 278,335 5,697,528
Europe Fund 239,366 7,815,314
Japan Fund 117,982 2,386,778
Overseas Fund 138,235 5,682,857
Southeast Asia Fund 92,709 1,065,231
22,647,708
TOTAL EQUITY FUNDS 232,685,007
(Cost $197,779,495)
FIXED-INCOME FUNDS - 43.2%
HIGH YIELD FIXED-INCOME FUNDS
- - 3.5%
Capital & Income Fund 2,253,807 21,501,316
INVESTMENT GRADE FIXED-INCOME
FUNDS - 39.7%
Government Income Fund 9,734,482 92,866,955
Intermediate Bond Fund 6,149,110 60,753,206
Investment Grade Bond Fund 13,270,977 93,029,546
246,649,707
TOTAL FIXED-INCOME FUNDS 268,151,023
(Cost $278,085,664)
MONEY MARKET FUND - 19.4%
Fidelity Money Market Trust: 120,707,667 120,707,667
Retirement Money Market
Portfolio (Cost $120,707,667)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 43,006 $ 43,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.25%,
dated 9/30/99 due 10/1/99
(Cost $43,000)
TOTAL INVESTMENT IN $ 621,586,697
SECURITIES - 100%
(Cost $596,615,826)
</TABLE>
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$149,037,258 and $83,004,550, respectively.
INCOME TAX INFORMATION
At September 30, 1999, the aggregate
cost of investment securities for income
tax purposes was $599,491,665. Net unrealized appreciation aggregated
$22,095,032, of which $34,102,332 related to appreciated investment
securities and $12,007,300 related to depreciated investment
securities.
FIDELITY FREEDOM 2000 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 621,586,697
value (including repurchase
agreements of $43,000) (cost
$596,615,826) - See
accompanying schedule
Cash 238
Receivable for Freedom Fund 1,343,998
shares sold
Dividends receivable 1,859,395
TOTAL ASSETS 624,790,328
LIABILITIES
Payable for underlying fund $ 2,462,167
shares purchased
Payable for Freedom Fund 707,144
shares redeemed
Accrued management fee 41,539
TOTAL LIABILITIES 3,210,850
NET ASSETS $ 621,579,478
Net Assets consist of:
Paid in capital $ 580,873,252
Undistributed net investment 11,200,373
income
Accumulated undistributed net 4,534,982
realized gain (loss) on
investments
Net unrealized appreciation 24,970,871
(depreciation) on investments
NET ASSETS, for 49,517,880 $ 621,579,478
shares outstanding
NET ASSET VALUE, offering $12.55
price and redemption price
per share ($621,579,478
(divided by) 49,517,880
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER
30, 1999 (UNAUDITED)
INVESTMENT INCOME $ 11,247,759
Income distributions from
underlying funds
Interest 1,551
TOTAL INCOME 11,249,310
EXPENSES
Management fee $ 304,002
Non-interested trustees' 837
compensation
Total expenses before 304,839
reductions
Expense reductions (92,081) 212,758
NET INVESTMENT INCOME 11,036,552
REALIZED AND UNREALIZED GAIN 1,202,674
(LOSS)
Realized gain (loss) on sale
of underlying fund shares
Capital gain distributions 6,526,875 7,729,549
from underlying funds
Change in net unrealized (9,371,063)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (1,641,514)
NET INCREASE (DECREASE) IN $ 9,395,038
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 62,946
investment adviser
Custodian credits 112
Transfer agent credits 29,023
$ 92,081
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER YEAR ENDED MARCH 31,
30, 1999 (UNAUDITED) 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 11,036,552 $ 16,112,596
income
Net realized gain (loss) 7,729,549 8,949,255
Change in net unrealized (9,371,063) 21,119,190
appreciation (depreciation)
NET INCREASE (DECREASE) IN 9,395,038 46,181,041
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (4,607,276) (14,832,976)
From net investment income
From net realized gain (7,371,719) (6,958,244)
TOTAL DISTRIBUTIONS (11,978,995) (21,791,220)
Share transactions Net 212,828,698 485,624,589
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 11,945,639 21,766,208
Cost of Freedom Fund shares (164,328,534) (293,188,489)
redeemed
NET INCREASE (DECREASE) IN 60,445,803 214,202,308
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 57,861,846 238,592,129
IN NET ASSETS
NET ASSETS
Beginning of period 563,717,632 325,125,503
End of period (including $ 621,579,478 $ 563,717,632
undistributed net investment
income of $11,200,373 and
$4,771,097, respectively)
OTHER INFORMATION
Shares
Sold 16,846,443 40,067,493
Issued in reinvestment of 954,125 1,786,671
distributions
Redeemed (13,012,254) (24,267,906)
Net increase (decrease) 4,788,314 17,586,258
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED SEPTEMBER YEARS ENDED MARCH 31,
30, 1999 (UNAUDITED)
1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 12.60 $ 11.98 $ 10.12 $ 10.00
period
Income from Investment
Operations
Net investment income D .23 .45 .60 .18
Net realized and unrealized (.02) .78 1.71 .03
gain (loss)
Total from investment .21 1.23 2.31 .21
operations
Less Distributions
From net investment income (.10) (.40) (.33) (.09)
From net realized gain (.16) (.21) (.12) -
Total distributions (.26) (.61) (.45) (.09)
Net asset value, end of period $ 12.55 $ 12.60 $ 11.98 $ 10.12
TOTAL RETURN B, C 1.67% 10.51% 23.25% 2.09%
RATIOS AND SUPPLEMENTAL DATA
(amounts do not include the
activity of the underlying
funds)
Net assets, end of period $ 621,579 $ 563,718 $ 325,126 $ 15,946
(000 omitted)
Ratio of expenses to average .08% A, F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% A, G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 3.65% A 3.76% 3.72% 4.00% A
income to average net assets
Portfolio turnover rate 28% A 27% 24% 19% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD OCTOBER 17, 1996 (COMMENCEMENT OF OPERATIONS) TO
MARCH 31, 1997.
FSTRATEGIC ADVISERS AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S
EXPENSE RATIO WOULD HAVE BEEN HIGHER.
G STRATEGIC ADVISERS OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES.
FIDELITY FREEDOM 2010 FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
FUND HOLDINGS AS OF SEPTEMBER
30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 7.6% 7.6%
Disciplined Equity Fund 7.4 7.7
Equity-Income Fund 7.3 7.6
Fidelity Fund 7.4 7.7
Growth & Income Portfolio 7.8 7.6
Growth Company Fund 7.3 7.6
OTC Portfolio 5.3 5.1
50.1 50.9
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 1.9 2.0
Europe Fund 2.7 2.8
Japan Fund 0.8 0.8
Overseas Fund 2.0 1.9
Southeast Asia Fund 0.4 0.4
7.8 7.9
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 11.7 11.4
Intermediate Bond Fund 7.6 7.5
Investment Grade Bond Fund 11.7 11.5
31.0 30.4
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 6.4 6.5
MONEY MARKET FUND
Fidelity Money Market Trust: 4.7 4.3
Retirement Money Market
Portfolio
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
4.3% (MM)
6.5% (HY)
50.9% (DE)
30.4% (IG)
7.9% (IE)
Row: 1, Col: 1, Value: 4.3
Row: 1, Col: 2, Value: 6.5
Row: 1, Col: 3, Value: 30.4
Row: 1, Col: 4, Value: 7.9
Row: 1, Col: 5, Value: 50.9
CURRENT
4.7% (MM)
6.4% (HY)
50.1% (DE)
31.0% (IG)
7.8% (IE)
Row: 1, Col: 1, Value: 4.7
Row: 1, Col: 2, Value: 6.4
Row: 1, Col: 3, Value: 31.0
Row: 1, Col: 4, Value: 7.8
Row: 1, Col: 5, Value: 50.1
EXPECTED
6.3% (MM)
5.9% (HY)
47.0% (DE)
34.0% (IG)
6.8% (IE)
Row: 1, Col: 1, Value: 5.2
Row: 1, Col: 2, Value: 6.2
Row: 1, Col: 3, Value: 31.8
Row: 1, Col: 4, Value: 7.4
Row: 1, Col: 5, Value: 49.4
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
IG = Investment Grade funds
HY = High Yield funds
Money Market fund (MM)
THE FUND INVESTS ACCORDING TO AN ASSET ALLOCATION STRATEGY THAT
BECOMES INCREASINGLY CONSERVATIVE OVER TIME. THE SIX MONTHS AGO
ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31, 1999. THE
CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF SEPTEMBER 30,
1999. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT MARCH 31, 2000.
FIDELITY FREEDOM 2010 FUND
INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EQUITY FUNDS - 57.9%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 50.1%
Blue Chip Growth Fund 2,038,837 $ 102,104,968
Disciplined Equity Fund 3,168,709 99,022,160
Equity-Income Fund 1,757,515 98,473,557
Fidelity Fund 2,796,582 99,222,745
Growth & Income Portfolio 2,412,188 103,989,439
Growth Company Fund 1,562,504 98,172,097
OTC Portfolio 1,507,447 71,618,794
672,603,760
INTERNATIONAL EQUITY FUNDS -
7.8%
Diversified International Fund 1,284,071 26,284,942
Europe Fund 1,107,880 36,172,284
Japan Fund 533,798 10,798,737
Overseas Fund 639,401 26,285,786
Southeast Asia Fund 424,948 4,882,650
104,424,399
TOTAL EQUITY FUNDS 777,028,159
(Cost $676,275,973)
FIXED-INCOME FUNDS - 37.4%
HIGH YIELD FIXED-INCOME FUNDS
- - 6.4%
Capital & Income Fund 8,955,814 85,438,468
INVESTMENT GRADE FIXED-INCOME
FUNDS - 31.0%
Government Income Fund 16,410,664 156,557,736
Intermediate Bond Fund 10,371,566 102,471,068
Investment Grade Bond Fund 22,376,544 156,859,572
415,888,376
TOTAL FIXED-INCOME FUNDS 501,326,844
(Cost $517,294,780)
MONEY MARKET FUND - 4.7%
Fidelity Money Market Trust: 62,976,441 62,976,441
Retirement Money Market
Portfolio (Cost $62,976,441)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 88,013 $ 88,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.25%,
dated 9/30/99 due 10/1/99
(Cost $88,000)
TOTAL INVESTMENT IN $ 1,341,419,444
SECURITIES - 100%
(Cost $1,256,635,194)
</TABLE>
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$392,565,065 and $126,819,182, respectively.
INCOME TAX INFORMATION
At September 30, 1999, the aggregate
cost of investment securities for income
tax purposes was $1,263,363,652. Net unrealized appreciation
aggregated $78,055,792, of which $105,102,644 related to appreciated
investment securities and $27,046,852 related to depreciated
investment securities.
FIDELITY FREEDOM 2010 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,341,419,444
value (including repurchase
agreements of $88,000) (cost
$1,256,635,194) - See
accompanying schedule
Cash 779
Receivable for Freedom Fund 2,915,702
shares sold
Dividends receivable 2,887,598
TOTAL ASSETS 1,347,223,523
LIABILITIES
Payable for underlying fund $ 3,849,973
shares purchased
Payable for Freedom Fund 1,876,363
shares redeemed
Accrued management fee 90,128
TOTAL LIABILITIES 5,816,464
NET ASSETS $ 1,341,407,059
Net Assets consist of:
Paid in capital $ 1,222,808,141
Undistributed net investment 16,699,567
income
Accumulated undistributed net 17,115,101
realized gain (loss) on
investments
Net unrealized appreciation 84,784,250
(depreciation) on investments
NET ASSETS, for 97,300,196 $ 1,341,407,059
shares outstanding
NET ASSET VALUE, offering $13.79
price and redemption price
per share ($1,341,407,059
(divided by) 97,300,196
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER
30, 1999 (UNAUDITED)
INVESTMENT INCOME $ 17,476,861
Income distributions from
underlying funds
Interest 4,202
TOTAL INCOME 17,481,063
EXPENSES
Management fee $ 622,037
Non-interested trustees' 1,676
compensation
Total expense before 623,713
reductions
Expense reductions (183,245) 440,468
NET INVESTMENT INCOME 17,040,595
REALIZED AND UNREALIZED GAIN 2,613,053
(LOSS)
Realized gain (loss) on sale
of underlying fund shares
Capital gain distributions 20,789,824 23,402,877
from underlying funds
Change in net unrealized (15,848,563)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 7,554,314
NET INCREASE (DECREASE) IN $ 24,594,909
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 128,957
investment adviser
Custodian credits 71
Transfer agent credits 54,217
$ 183,245
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER YEAR ENDED MARCH 31, 1999
30, 1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 17,040,595 $ 22,401,098
income
Net realized gain (loss) 23,402,877 24,015,208
Change in net unrealized (15,848,563) 58,372,346
appreciation (depreciation)
NET INCREASE (DECREASE) IN 24,594,909 104,788,652
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (5,811,662) (22,500,156)
From net investment income
From net realized gain (19,095,536) (16,254,418)
TOTAL DISTRIBUTIONS (24,907,198) (38,754,574)
Share transactions Net 401,243,166 623,553,298
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 24,886,003 38,733,842
Cost of Freedom Fund shares (173,319,084) (286,768,408)
redeemed
NET INCREASE (DECREASE) IN 252,810,085 375,518,732
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 252,497,796 441,552,810
IN NET ASSETS
NET ASSETS
Beginning of period 1,088,909,263 647,356,453
End of period (including $ 1,341,407,059 $ 1,088,909,263
undistributed net investment
income of $16,699,567 and
$5,470,634, respectively)
OTHER INFORMATION
Shares
Sold 28,816,044 47,946,684
Issued in reinvestment of 1,807,263 2,955,502
distributions
Redeemed (12,455,871) (22,294,089)
Net increase (decrease) 18,167,436 28,608,097
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED SEPTEMBER YEARS ENDED MARCH 31,
30, 1999 (UNAUDITED)
1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.76 $ 12.81 $ 10.15 $ 10.00
period
Income from Investment
Operations
Net investment income D .19 .36 .30 .11
Net realized and unrealized .14 1.22 2.82 .15
gain (loss)
Total from investment .33 1.58 3.12 .26
operations
Less Distributions
From net investment income (.07) (.35) (.37) (.11)
From net realized gain (.23) (.28) (.09) -
Total distributions (.30) (.63) (.46) (.11)
Net asset value, end of period $ 13.79 $ 13.76 $ 12.81 $ 10.15
TOTAL RETURN B, C 2.40% 12.65% 31.31% 2.59%
RATIOS AND SUPPLEMENTAL DATA
(amounts do not include the
activity of the underlying
funds)
Net assets, end of period $ 1,341,407 $ 1,088,909 $ 647,356 $ 23,600
(000 omitted)
Ratio of expenses to average .08% A, F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% A, G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 2.75% A 2.82% 2.54% 2.56% A
income to average net assets
Portfolio turnover rate 21% A 27% 20% 3% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD OCTOBER 17, 1996 (COMMENCEMENT OF OPERATIONS) TO
MARCH 31, 1997.
F STRATEGIC ADVISERS AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S
EXPENSE RATIO WOULD HAVE BEEN HIGHER.
G STRATEGIC ADVISERS OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES.
FIDELITY FREEDOM 2020 FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
FUND HOLDINGS AS OF SEPTEMBER
30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 9.8% 9.8%
Disciplined Equity Fund 9.5 9.8
Equity-Income Fund 9.4 9.7
Fidelity Fund 9.5 9.8
Growth & Income Portfolio 10.0 9.7
Growth Company Fund 9.4 9.8
OTC Portfolio 6.9 6.5
64.5 65.1
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 2.9 2.9
Europe Fund 4.0 4.0
Japan Fund 1.2 1.2
Overseas Fund 2.9 2.9
Southeast Asia Fund 0.5 0.6
11.5 11.6
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 6.2 5.9
Intermediate Bond Fund 4.0 3.8
Investment Grade Bond Fund 6.2 5.9
16.4 15.6
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 7.6 7.7
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
7.7% (HY)
65.1% (DE)
15.6% (IG)
11.6% (IE)
Row: 1, Col: 1, Value: 7.7
Row: 1, Col: 2, Value: 15.6
Row: 1, Col: 3, Value: 11.6
Row: 1, Col: 4, Value: 65.09999999999999
CURRENT
7.6% (HY)
16.4% (IG)
64.5% (DE)
11.5% (IE)
Row: 1, Col: 1, Value: 7.6
Row: 1, Col: 2, Value: 16.4
Row: 1, Col: 3, Value: 11.5
Row: 1, Col: 4, Value: 64.5
EXPECTED
7.5% (HY)
18.5% (IG)
63.2% (DE)
10.8% (IE)
Row: 1, Col: 1, Value: 7.5
Row: 1, Col: 2, Value: 17.0
Row: 1, Col: 3, Value: 11.1
Row: 1, Col: 4, Value: 64.40000000000001
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
IG = Investment Grade funds
HY = High Yield funds
THE FUND INVESTS ACCORDING TO AN ASSET ALLOCATION STRATEGY THAT
BECOMES INCREASINGLY CONSERVATIVE OVER TIME. THE SIX MONTHS AGO
ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31, 1999. THE
CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF SEPTEMBER 30,
1999. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT MARCH 31, 2000.
FIDELITY FREEDOM 2020 FUND
INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EQUITY FUNDS - 76.0%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 64.5%
Blue Chip Growth Fund 2,376,571 $ 119,018,682
Disciplined Equity Fund 3,694,800 115,462,515
Equity-Income Fund 2,048,382 114,770,820
Fidelity Fund 3,259,889 115,660,861
Growth & Income Portfolio 2,812,520 121,247,736
Growth Company Fund 1,823,787 114,588,528
OTC Portfolio 1,758,751 83,558,257
784,307,399
INTERNATIONAL EQUITY FUNDS -
11.5%
Diversified International Fund 1,717,791 35,163,172
Europe Fund 1,472,568 48,079,336
Japan Fund 709,770 14,358,644
Overseas Fund 851,639 35,010,866
Southeast Asia Fund 558,549 6,417,722
139,029,740
TOTAL EQUITY FUNDS 923,337,139
(Cost $804,719,164)
FIXED-INCOME FUNDS - 24.0%
HIGH YIELD FIXED-INCOME FUNDS
- - 7.6%
Capital & Income Fund 9,643,498 91,998,966
INVESTMENT GRADE FIXED-INCOME
FUNDS - 16.4%
Government Income Fund 7,890,124 75,271,779
Intermediate Bond Fund 4,981,876 49,220,934
Investment Grade Bond Fund 10,744,551 75,319,303
199,812,016
TOTAL FIXED-INCOME FUNDS 291,810,982
(Cost $300,921,813)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 130,019 $ 130,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.25%,
dated 9/30/99 due 10/1/99
(Cost $130,000)
TOTAL INVESTMENT IN $ 1,215,278,121
SECURITIES - 100%
(Cost $1,105,770,977)
</TABLE>
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$314,019,195 and $86,884,328, respectively.
INCOME TAX INFORMATION
At September 30, 1999, the aggregate
cost of investment securities for income
tax purposes was $1,111,531,110. Net unrealized appreciation
aggregated $103,747,011, of which $126,069,869 related to appreciated
investment securities and $22,322,858 related to depreciated
investment securities.
FIDELITY FREEDOM 2020 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,215,278,121
value (including repurchase
agreements of $130,000)
(cost $1,105,770,977) - See
accompanying schedule
Cash 964
Receivable for Freedom Fund 2,451,527
shares sold
Dividends receivable 1,598,368
TOTAL ASSETS 1,219,328,980
LIABILITIES
Payable for underlying fund $ 2,619,479
shares purchased
Payable for Freedom Fund 1,382,058
shares redeemed
Accrued management fee 81,674
TOTAL LIABILITIES 4,083,211
NET ASSETS $ 1,215,245,769
Net Assets consist of:
Paid in capital $ 1,073,891,537
Undistributed net investment 9,879,012
income
Accumulated undistributed net 21,968,076
realized gain (loss) on
investments
Net unrealized appreciation 109,507,144
(depreciation) on investments
NET ASSETS, for 83,062,335 $ 1,215,245,769
shares outstanding
NET ASSET VALUE, offering $14.63
price and redemption price
per share ($1,215,245,769
(divided by) 83,062,335
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER
30, 1999 (UNAUDITED)
INVESTMENT INCOME $ 11,114,241
Income distributions from
underlying funds
Interest 3,664
TOTAL INCOME 11,117,905
EXPENSES
Management fee $ 566,306
Non-interested trustees' 1,541
compensation
Total expenses before 567,847
reductions
Expense reductions (163,402) 404,445
NET INVESTMENT INCOME 10,713,460
REALIZED AND UNREALIZED GAIN 2,456,543
(LOSS)
Realized gain (loss) on sale
of underlying fund shares
Capital gain distributions 24,082,742 26,539,285
from underlying funds
Change in net unrealized (8,982,988)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 17,556,297
NET INCREASE (DECREASE) IN $ 28,269,757
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 113,822
investment adviser
Custodian credits 6
Transfer agent credits 49,574
$ 163,402
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER YEAR ENDED MARCH 31, 1999
30, 1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 10,713,460 $ 14,722,645
income
Net realized gain (loss) 26,539,285 28,565,852
Change in net unrealized (8,982,988) 70,879,089
appreciation (depreciation)
NET INCREASE (DECREASE) IN 28,269,757 114,167,586
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (3,574,878) (16,160,557)
From net investment income
From net realized gain (22,162,715) (14,186,440)
TOTAL DISTRIBUTIONS (25,737,593) (30,346,997)
Share transactions Net 343,047,712 557,805,316
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 25,722,849 30,338,310
Cost of Freedom Fund shares (150,705,096) (254,918,709)
redeemed
NET INCREASE (DECREASE) IN 218,065,465 333,224,917
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 220,597,629 417,045,506
IN NET ASSETS
NET ASSETS
Beginning of period 994,648,140 577,602,634
End of period (including $ 1,215,245,769 $ 994,648,140
undistributed net investment
income of $9,879,012 and
$2,740,430, respectively)
OTHER INFORMATION
Shares
Sold 23,126,468 41,631,295
Issued in reinvestment of 1,760,633 2,209,990
distributions
Redeemed (10,167,895) (18,984,307)
Net increase (decrease) 14,719,206 24,856,978
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED SEPTEMBER YEARS ENDED MARCH 31,
30, 1999 (UNAUDITED)
1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.55 $ 13.28 $ 10.21 $ 10.00
period
Income from Investment
Operations
Net investment income D .14 .27 .21 .08
Net realized and unrealized .30 1.55 3.33 .22
gain (loss)
Total from investment .44 1.82 3.54 .30
operations
Less Distributions
From net investment income (.05) (.28) (.34) (.09)
From net realized gain (.31) (.27) (.13) -
Total distributions (.36) (.55) (.47) (.09)
Net asset value, end of period $ 14.63 $ 14.55 $ 13.28 $ 10.21
TOTAL RETURN B, C 3.03% 14.00% 35.36% 2.99%
RATIOS AND SUPPLEMENTAL DATA
(amounts do not include the
activity of the underlying
funds)
Net assets, end of period $ 1,215,246 $ 994,648 $ 577,603 $ 14,958
(000 omitted)
Ratio of expenses to average .08% A, F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% A, G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 1.89% A 2.03% 1.76% 1.75% A
income to average net assets
Portfolio turnover rate 16% A 18% 15% 21% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD OCTOBER 17, 1996 (COMMENCEMENT OF OPERATIONS) TO
MARCH 31, 1997.
F STRATEGIC ADVISERS AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S
EXPENSE RATIO WOULD HAVE BEEN HIGHER.
G STRATEGIC ADVISERS OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES.
FIDELITY FREEDOM 2030 FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
FUND HOLDINGS AS OF SEPTEMBER
30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 10.5% 10.4%
Disciplined Equity Fund 10.2 10.5
Equity-Income Fund 10.2 10.4
Fidelity Fund 10.3 10.5
Growth & Income Portfolio 10.7 10.4
Growth Company Fund 10.2 10.4
OTC Portfolio 7.4 6.9
69.5 69.5
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 3.6 3.6
Europe Fund 4.9 5.0
Japan Fund 1.4 1.4
Overseas Fund 3.6 3.5
Southeast Asia Fund 0.6 0.7
14.1 14.2
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 2.8 2.7
Intermediate Bond Fund 1.8 1.7
Investment Grade Bond Fund 2.8 2.7
7.4 7.1
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 9.0 9.2
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
9.2% (HY)
7.1% (IG)
69.5% (DE)
14.2% (IE)
Row: 1, Col: 1, Value: 9.199999999999999
Row: 1, Col: 2, Value: 7.1
Row: 1, Col: 3, Value: 14.2
Row: 1, Col: 4, Value: 69.5
CURRENT
9.0% (HY)
7.4% (IG)
69.5% (DE)
14.1% (IE)
Row: 1, Col: 1, Value: 9.0
Row: 1, Col: 2, Value: 7.4
Row: 1, Col: 3, Value: 14.1
Row: 1, Col: 4, Value: 69.5
EXPECTED
8.4% (HY)
70.0% (DE)
8.3% (IG)
13.3% (IE)
Row: 1, Col: 1, Value: 8.4
Row: 1, Col: 2, Value: 8.300000000000001
Row: 1, Col: 3, Value: 13.3
Row: 1, Col: 4, Value: 70.0
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
IG = Investment Grade funds
HY = High Yield funds
THE FUND INVESTS ACCORDING TO AN ASSET ALLOCATION STRATEGY THAT
BECOMES INCREASINGLY CONSERVATIVE OVER TIME. THE SIX MONTHS AGO
ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31, 1999. THE
CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF SEPTEMBER 30,
1999. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT MARCH 31, 2000.
FIDELITY FREEDOM 2030 FUND
INVESTMENTS SEPTEMBER 30, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EQUITY FUNDS - 83.6%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 69.5%
Blue Chip Growth Fund 1,130,032 $ 56,591,999
Disciplined Equity Fund 1,758,846 54,963,927
Equity-Income Fund 975,515 54,658,130
Fidelity Fund 1,553,031 55,101,528
Growth & Income Portfolio 1,337,020 57,638,945
Growth Company Fund 867,962 54,534,054
OTC Portfolio 835,334 39,686,696
373,175,279
INTERNATIONAL EQUITY FUNDS -
14.1%
Diversified International Fund 941,945 19,281,619
Europe Fund 799,630 26,107,919
Japan Fund 376,356 7,613,675
Overseas Fund 468,692 19,267,933
Southeast Asia Fund 299,232 3,438,177
75,709,323
TOTAL EQUITY FUNDS 448,884,602
(Cost $417,283,545)
FIXED-INCOME FUNDS - 16.4%
HIGH YIELD FIXED-INCOME FUNDS
- - 9.0%
Capital & Income Fund 5,063,123 48,302,193
INVESTMENT GRADE FIXED-INCOME
FUNDS - 7.4%
Government Income Fund 1,578,242 15,056,425
Intermediate Bond Fund 994,367 9,824,349
Investment Grade Bond Fund 2,150,141 15,072,491
39,953,265
TOTAL FIXED-INCOME FUNDS 88,255,458
(Cost $90,525,318)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 86,013 $ 86,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.25%,
dated 9/30/99 due 10/1/99
(Cost $86,000)
TOTAL INVESTMENT IN $ 537,226,060
SECURITIES - 100%
(Cost $507,894,863)
</TABLE>
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$205,401,639 and $30,342,322, respectively.
INCOME TAX INFORMATION
At September 30, 1999, the aggregate
cost of investment securities for income
tax purposes was $510,484,808. Net unrealized appreciation aggregated
$26,741,252, of which $39,656,902 related to appreciated investment
securities and $12,915,650 related to depreciated investment
securities.
FIDELITY FREEDOM 2030 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 537,226,060
value (including repurchase
agreements of $86,000) (cost
$507,894,863) - See
accompanying schedule
Cash 427
Receivable for Freedom Fund 3,108,126
shares sold
Dividends receivable 512,158
TOTAL ASSETS 540,846,771
LIABILITIES
Payable for underlying fund $ 2,719,423
shares purchased
Payable for Freedom Fund 909,055
shares redeemed
Accrued management fee 35,655
TOTAL LIABILITIES 3,664,133
NET ASSETS $ 537,182,638
Net Assets consist of:
Paid in capital $ 495,231,612
Undistributed net investment 3,550,008
income
Accumulated undistributed net 9,069,821
realized gain (loss) on
investments
Net unrealized appreciation 29,331,197
(depreciation) on investments
NET ASSETS, for 36,449,814 $ 537,182,638
shares outstanding
NET ASSET VALUE, offering $14.74
price and redemption price
per share ($537,182,638
(divided by) 36,449,814
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER
30, 1999 (UNAUDITED)
INVESTMENT INCOME $ 3,801,417
Income distributions from
underlying funds
Interest 1,754
TOTAL INCOME 3,803,171
EXPENSES
Management fee $ 231,838
Non-interested trustees' 610
compensation
Total expenses before 232,448
reductions
Expense reductions (74,072) 158,376
NET INVESTMENT INCOME 3,644,795
REALIZED AND UNREALIZED GAIN 292,015
(LOSS)
Realized gain (loss) on sale
of underlying fund shares
Capital gains distributions 11,156,284 11,448,299
from underlying funds
Change in net unrealized (3,834,111)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 7,614,188
NET INCREASE (DECREASE) IN $ 11,258,983
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 46,698
investment adviser
Custodian credits 124
Transfer agent credits 27,250
$ 74,072
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER YEAR ENDED MARCH 31, 1999
30, 1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 3,644,795 $ 4,067,100
income
Net realized gain (loss) 11,448,299 8,470,586
Change in net unrealized (3,834,111) 25,407,252
appreciation (depreciation)
NET INCREASE (DECREASE) IN 11,258,983 37,944,938
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (1,112,448) (4,341,407)
From net investment income
From net realized gain (7,508,614) (5,938,957)
TOTAL DISTRIBUTIONS (8,621,062) (10,280,364)
Share transactions Net 263,480,083 343,561,901
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 8,614,113 10,271,400
Cost of Freedom Fund shares (103,206,382) (130,913,052)
redeemed
NET INCREASE (DECREASE) IN 168,887,814 222,920,249
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 171,525,735 250,584,823
IN NET ASSETS
NET ASSETS
Beginning of period 365,656,903 115,072,080
End of period (including $ 537,182,638 $ 365,656,903
undistributed net investment
income of $3,550,008 and
$1,017,661, respectively)
OTHER INFORMATION
Shares
Sold 17,646,785 25,582,555
Issued in reinvestment of 585,995 756,262
distributions
Redeemed (6,916,957) (9,778,011)
Net increase (decrease) 11,315,823 16,560,806
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED SEPTEMBER YEARS ENDED MARCH
30, 1999 (UNAUDITED)
1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.55 $ 13.42 $ 10.21 $ 10.00
period
Income from Investment
Operations
Net investment income D .12 .25 .22 .08
Net realized and unrealized .38 1.60 3.42 .22
gain (loss)
Total from investment .50 1.85 3.64 .30
operations
Less Distributions
From net investment income (.04) (.24) (.17) (.09)
In excess of net investment - - (.14) -
income
From net realized gain (.27) (.48) (.12) -
Total distributions (.31) (.72) (.43) (.09)
Net asset value, end of period $ 14.74 $ 14.55 $ 13.42 $ 10.21
TOTAL RETURN B, C 3.44% 14.29% 36.28% 2.99%
RATIOS AND SUPPLEMENTAL DATA
(amounts do not include the
activity of the underlying
funds)
Net assets, end of period $ 537,183 $ 365,657 $ 115,072 $ 5,725
(000 omitted)
Ratio of expenses to average .08% A, F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% A, G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 1.57% A 1.87% 1.78% 1.71% A
income to average net assets
Portfolio turnover rate 13% A 16% 34% 19% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD OCTOBER 17, 1996 (COMMENCEMENT OF OPERATIONS) TO
MARCH 31, 1997.
F STRATEGIC ADVISERS AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S
EXPENSE RATIO WOULD HAVE BEEN HIGHER.
G STRATEGIC ADVISERS OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended September 30, 1999 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Freedom Income Fund, Freedom 2000 Fund, Freedom 2010 Fund, Freedom
2020 Fund, and Freedom 2030 Fund (the funds) are funds of Fidelity
Aberdeen Street Trust (the trust). The trust is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company organized as a Delaware business trust. Each fund
is authorized to issue an unlimited number of shares. The funds
primarily invest in a combination of other Fidelity equity,
fixed-income, and money market funds (the Underlying Funds) managed by
Fidelity Management & Research Company (FMR). The financial statements
have been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the funds:
SECURITY VALUATION. Investments in the Underlying Funds are valued at
the closing net asset value per share of each Underlying Fund on the
day of valuation. Short-term securities maturing within sixty days of
their purchase date are valued either at amortized cost or original
cost plus accrued interest, both of which approximate current value.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INVESTMENT INCOME. Income and capital gain distributions from the
Underlying Funds, if any, are recorded on the ex-dividend date.
Interest income is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
between the funds in the trust. Expenses included in the accompanying
financial statements reflect the expenses of each fund and do not
include any expenses associated with the Underlying Funds.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions from net investment
income to shareholders of the Freedom Income Fund are paid monthly,
while distributions from capital gains, if any, are recorded on the
ex-dividend date. Income and capital gain distributions to
shareholders of the other Freedom Funds are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for the short-term gain distributions from the Underlying
Funds, non-taxable dividends and losses deferred due to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
and accumulated undistributed net realized gain (loss) on investments
may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions, normally shares of the
Underlying Funds, are accounted for as of trade date. Gains and losses
on securities sold are determined on the basis of identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other
affiliated entities of FMR, may transfer uninvested cash balances into
one or more joint trading accounts. These balances are invested in one
or more repurchase agreements for U.S. Treasury or Federal Agency
obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the funds, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and redemptions of the underlying fund
shares is included under the caption "Other Information" at the end of
each applicable fund's schedule of investments.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. Each fund pays a management fee to Strategic Advisers,
Inc., an affiliate of FMR. Strategic Advisers receives a fee that is
computed daily at an annual rate of .10% of the fund's average net
assets.
OTHER TRANSACTIONS. Strategic Advisers has entered into an
administration agreement with FMR under which FMR provides management
and administrative services (other than investment advisory services)
necessary for the operation of each fund. Pursuant to this agreement,
FMR pays all expenses of each fund, except the compensation of the
non-interested trustees and certain exceptions such as interest,
taxes, brokerage commissions, and extraordinary expenses. FMR also
contracts with other Fidelity companies to perform the services
necessary for the operation of each fund. For the services under the
agreement, Strategic Advisers pays FMR a monthly administration fee
equal to the management fee received by Strategic Advisers, minus an
amount equal to an annual rate of .02% of each fund's average net
assets.
5. EXPENSE REDUCTIONS.
Strategic Advisers voluntarily agreed to reimburse each fund's total
operating expenses (excluding interest, taxes, brokerage commissions
and extraordinary expenses) above an annual rate of .08% of the fund's
average net assets.
In addition, Strategic Advisers has entered into arrangements on
behalf of certain funds with the funds' custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of each applicable fund's expenses.
For the period, the reductions under these arrangements are shown
under the caption "Other Information" on each applicable fund's
Statement of Operations.
6. BENEFICIAL INTEREST.
At the end of the period, certain unaffiliated shareholders were each
record owners of 10% or more of the total outstanding shares of the
following funds:
BENEFICIAL INTEREST
FUND NUMBER OF SHAREHOLDERS % OWNERSHIP
Freedom Income 1 26%
Freedom 2000 1 39%
Freedom 2010 1 40%
Freedom 2020 1 44%
Freedom 2030 1 20%
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity Automated Service Telephone provides a single toll-free
number to access account balances, positions, quotes and trading. It's
easy to navigate the service, and on your first call, the system will
help you create a personal identification number (PIN) for security.
(PHONE_GRAPHIC)FIDELITY AUTOMATED
SERVICE TELEPHONE (FASTSM)
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+(registered trademark)
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A
GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT
MONEY MARKET FUNDS WILL BE
ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY
MARKET FUND IS NOT INSURED
OR GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE
PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF
ANY SALES CHARGES.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19200 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Strategic Advisers, Inc.
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Robert A. Lawrence, Vice President
Scott D. Stewart, Vice President
Ren Y. Cheng, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
FF-SANN-1199 87955
1.537284.102
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S ASSET ALLOCATION FUNDS
Asset ManagerSM
Asset Manager AggressiveSM
Asset Manager: GrowthSM
Asset Manager: IncomeSM
Fidelity Freedom Funds (registered trademark) -
Income, 2000, 2010, 2020, 2030
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FASTSM) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
