F U N D P R O F I L E
EDGAR Submission type: 497K1
Filed pursuant to Rule 497(k)(1)(i)
FIDELITY
FREEDOM 2040
FUND
FIDELITY FREEDOM 2040 FUNDSM
[EFFECTIVE DATE]
This profile summarizes key information about the fund that is
included in the fund's prospectus. The fund's prospectus includes
additional information about the fund, including a more detailed
description of the risks associated with investing in the fund that
you may want to consider before you invest. You may obtain the
prospectus and other information about the fund at no cost by calling
Fidelity(registered trademark) at 1-800-544-8544 or visiting
Fidelity's web site at www.fidelity.com.
(fidelity_logo_graphic)(registered trademark)
82 Devonshire Street, Boston, MA 02109
[Item Code] FF40-profile-0600
Investment Summary
INVESTMENT OBJECTIVE
FREEDOM 2040 FUND seeks high total return.
PRINCIPAL INVESTMENT STRATEGIES
Strategic Advisers, Inc. (Strategic AdvisersSM)'s principal investment
strategies include:
(small solid bullet) Investing in a combination of Fidelity equity,
fixed-income and money market funds using a moderate asset allocation
strategy designed for investors expecting to retire around the year
2040.
(small solid bullet) Allocating assets among these underlying Fidelity
funds according to an asset allocation strategy that becomes
increasingly conservative until it reaches 20% in domestic equity
funds, 40% in investment-grade fixed-income funds and 40% in money
market funds (approximately five to ten years after the year 2040).
(small solid bullet) Using a target asset allocation as of August __,
2000 of approximately:
Domestic
Equity
Funds __%
International
Equity Funds __%
Investment-
Grade Fixed-
Income
Funds __%
High Yield
Fixed-Income
Funds __%
Money Market
Funds __%
Row: 1, Col: 1, Value: 0.0
Row: 1, Col: 2, Value: 75.0
Row: 1, Col: 3, Value: 15.0
Row: 1, Col: 4, Value: 9.0
Row: 1, Col: 5, Value: 0.0
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) INTEREST RATE CHANGES. Interest rate increases
can cause the price of a debt security to decrease.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets, particularly
emerging markets, can be more volatile than the U.S. market due to
increased risks of adverse issuer, political, regulatory, market or
economic developments and can perform differently from the U.S.
market. Emerging markets can be subject to greater social, economic,
regulatory and political uncertainties and can be extremely volatile.
(small solid bullet) GEOGRAPHIC CONCENTRATION IN EUROPE. Both
developed and emerging market countries in Europe will be
significantly affected by the tight fiscal and monetary controls
required to join the European Economic and Monetary Union (EMU). The
markets in Eastern Europe remain relatively undeveloped and can be
particularly sensitive to political and economic developments.
(small solid bullet) GEOGRAPHIC CONCENTRATION IN JAPAN. The Japanese
economy is currently in a recession. International trade and
government policy can significantly affect economic growth.
(small solid bullet) Most Southeast Asian economies are generally
considered emerging markets and are currently in recessions.
International trade, government policy and political and social
stability can significantly affect economic growth. The markets in
Southeast Asia can be extremely volatile.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently from
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
Lower-quality debt securities (those of less than investment-grade
quality) can be more volatile due to increased sensitivity to adverse
issuer, political, regulatory, market or economic developments and can
be difficult to resell.
(small solid bullet) "GROWTH" INVESTING. "Growth" stocks can perform
differently from the market as a whole and other types of stocks and
can be more volatile than other types of stocks.
(small solid bullet) "VALUE" INVESTING. "Value" stocks can perform
differently from the market as a whole and other types of stocks and
can continue to be undervalued by the market for long periods of time.
(small solid bullet) QUANTITATIVE INVESTING. Securities selected using
quantitative analysis can perform differently from the market as a
whole as a result of the factors used in the analysis, the weight
placed on each factor, and changes in the factors' historical trends.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
Performance
Performance history will be available for the fund after the fund has
been in operation for one calendar year.
Fee Table
The following table describes the fees and expenses that are incurred
when you buy, hold, or sell shares of Freedom 2040. [The annual fund
operating expenses provided below for Freedom 2040 are based on
historical expenses, adjusted to reflect current fees.] [The annual
fund operating expenses provided below for Freedom 2040 do not reflect
the effect of any expense reimbursements] [[or] reduction of certain
expenses during the period.] [The annual fund operating expenses
provided below for Freedom 2040 are based on historical expenses.] The
annual fund operating expenses provided below for Freedom 2040 are
based on estimated expenses.
SHAREHOLDER FEES (PAID BY THE INVESTOR DIRECTLY)
Sales charge (load) on None
purchases and reinvested
distributions
Deferred sales charge (load) None
on redemptions
Annual account maintenance $12.00
fee (for accounts under
$2,500)
ANNUAL FUND OPERATING EXPENSES (PAID FROM FUND ASSETS)
Management fee %
Distribution and Service None
(12b-1) fee
Other expenses %
Total annual fund operating %
expenses A
A EFFECTIVE AUGUST __, 2000 STRATEGIC ADVISERS HAS VOLUNTARILY AGREED
TO REIMBURSE THE FUND TO THE EXTENT THAT TOTAL OPERATING EXPENSES
(EXCLUDING INTEREST, TAXES, BROKERAGE COMMISSIONS AND EXTRAORDINARY
EXPENSES) EXCEED __% OF ITS AVERAGE NET ASSETS. THIS ARRANGEMENT CAN
BE DISCONTINUED BY STRATEGIC ADVISERS AT ANY TIME.
[[T/t]hrough arrangements with the fund's [custodian] [and] [transfer
agent], credits realized as a result of uninvested cash balances are
used to reduce fund expenses. Including [this/these] reduction[s], the
total fund operating expenses [, after reimbursement, would have been
__%.]
Freedom 2040 will not incur any sales charges, but it may incur
exchange fees or redemption fees (trading fees), if applicable, when
it invests in underlying Fidelity funds.
In addition to the total operating expenses shown above, Freedom
2040, as a shareholder in an underlying Fidelity fund, will indirectly
bear its pro rata share of the fees and expenses incurred by the
underlying Fidelity fund, and the Freedom 2040's investment return
will be net of underlying Fidelity fund expenses.
The combined total expense ratio of Freedom 2040 (calculated as a
percentage of average net assets) is estimated to be __%. Freedom
2040's estimated combined total expense ratio is based on its
estimated total operating expense ratio plus a weighted average of the
total operating expense ratios, [after [expense reimbursement] [and]
[expense reduction[s]],] of the underlying Fidelity funds in which it
would have been invested (for each underlying Fidelity fund's most
recently reported fiscal-year) as of August __, 2000. The combined
total expense ratio for Freedom 2040 may be higher or lower depending
on the allocation of the fund's assets among the underlying Fidelity
funds and the actual expenses of the underlying Fidelity funds.
This EXAMPLE helps you compare the cost of investing in the fund with
the cost of investing in other mutual funds.
Let's say, hypothetically, that the fund's annual return is 5%, that
your shareholder fees are exactly as described in the fee table, and
that the fund's combined total expense ratio includes the fund's
annual operating expenses exactly as described in the fee table and
the weighted average of the total operating expenses of each of the
underlying Fidelity funds [, before [expense reimbursement] [and]
[expense reduction[s]]]. This example illustrates the effect of fees
and expenses, but is not meant to suggest actual or expected fees and
expenses or returns, all of which may vary. For every $10,000 you
invested, here's how much you would pay in total expenses if you close
your account at the end of each time period indicated:
1 year $
3 years $
Fund Management
Strategic Advisers is the Freedom 2040's investment manager.
Fidelity Management & Research Company (FMR), an affiliate of
Strategic Advisers, is each underlying Fidelity fund's manager.
As the manager, Strategic Advisers administers the asset allocation
program for Freedom 2040.
As the manager for the underlying Fidelity funds, FMR is responsible
for choosing each fund's investments and handling their business
affairs. FMR is also responsible for handling the business affairs for
Freedom 2040.
[Ren Cheng is Vice President and co-manager of Freedom 2040, which he
has managed since inception. He also manages structured investments
for Fidelity Management Trust Company. Mr. Cheng joined Fidelity as a
portfolio manager in 1994. Previously, he was a senior portfolio
manager for Putnam Investments from 1985 to 1994.]
[Scott Stewart is Vice President and co-manager of Freedom 2040, which
he has managed since inception. He also is a Senior Vice President and
head of Fidelity's structured equity group. Mr. Stewart joined
Fidelity in 1987 as a portfolio manager.]
Buying Shares
It is expected that the fund will combine its assets with Fidelity
Freedom Income Fund's assets when the two funds' asset allocation
targets match, approximately five to ten years after the target
retirement date.
The fund's shares are sold without a sales charge.
You may buy shares of the fund after reading this profile or you may
request a prospectus to review before investing. If you buy shares
after reviewing this profile, Fidelity will send you a prospectus with
your confirmation.
The minimum initial purchase amount is $2,500 ($500 for certain
retirement accounts), the minimum additional purchase amount is $250,
and the minimum balance amount is $2,000 ($500 for certain retirement
accounts).
If you buy through an investment professional or through a retirement
account, certain account features and policies may differ.
Selling Shares
You may sell all or a portion of your shares on any business day by
phone, by mail, by wire, or over the Internet through Fidelity's web
site. You may also sell shares by exchange to another Fidelity fund.
Both accounts must have the same registration, including name, address
and taxpayer ID. A signature guarantee may be required in certain
circumstances.
Distributions and Taxes
Freedom 2040 normally pays dividends and capital gains in May and
December.
You may elect to have your dividends and/or capital gain distributions
automatically reinvested in additional shares of the fund, paid in
cash, or automatically invested in shares of another identically
registered Fidelity fund. If you do not indicate a choice on your
application, your distributions will be automatically reinvested. Not
all distribution options are available for every account.
Distributions you receive from the fund are subject to federal income
tax, and may also be subject to state or local taxes.
For federal tax purposes, the fund's dividends and distributions of
short-term capital gains are taxable to you as ordinary income, while
the fund's distributions of long-term capital gains are taxable to you
generally as capital gains.
Summary of Available Services
Fidelity provides a number of services to its shareholders. Among them
are:
(small solid bullet) 24 hour telephone assistance, 1-800-544-6666;
(small solid bullet) TDD - Service for the Deaf and Hearing-Impaired
(9:00 a.m. - 9:00 p.m. Eastern time), 1-800-544-0118;
(small solid bullet) Fidelity's web site, www.fidelity.com;
(small solid bullet) Fidelity Automated Service Telephone
(FAST(registered trademark)) (an automated service for obtaining
account information by phone), 1-800-544-5555;
(small solid bullet) Over 75 walk-in Investor Centers nationwide;
(small solid bullet) Exchange privileges among Fidelity funds; and
(small solid bullet) Regular investment and withdrawal plans.
Fidelity, Fidelity Investments & (Pyramid) Design, and FAST are
registered trademarks of FMR Corp.
Fidelity Freedom 2040 Fund and Strategic Advisers are registered
service marks of FMR Corp.
====================Front of Application======================
FIDELITY MUTUAL FUND (Fidelity Logo Graphic)
NEW ACCOUNT APPLICATION (registered trademark)
P.O. Box 5000
Cincinnati, OH 45273-8698
You may invest in the fund after reviewing the profile(s) or the
prospectus(es) for the fund(s).
For help with this application, or for an IRA, Keogh or Business
Account application, call us anytime at 1-800-544-8888.
If you are opening your account by an exchange from an existing
Fidelity account, call us at 1-800-544-7777.
1: PLEASE TELL US HOW WE SHOULD ESTABLISH YOUR ACCOUNT
______________________________________________________________
Account registration:
______________________________________________________________
__ Individual __ Joint Tenants - __ Custodial
Rights of (UGMA/UTMA)
Survivorship 1 Under the (state)
__ Tenants in Common 1 ____ Uniform
__ Community Property 1 Gifts/Transfer
to Minors Act
______________________________________________________________
/_/ Trust Accounts:
______________________________________________________________
Trustee(s) Name Trust Taxpayer
(first, MI, last): Identification Number:
______________________________________________________________
Name of Trust: for the benefit of: Date of Trust
(Month, day, year):
______________________________________________________________
Name:
______________________________________________________________
Account Owner/ Joint Owner/Custodian Name
Minor Name (first, MI, last): (first, MI, last):
______________________________________________________________
Address and Phone: /_/ Check here if this is
a new address.
______________________________________________________________
Street Address and City State Zip
Apartment or Box Number: 2
______________________________________________________________
Evening Phone (Home): Daytime Phone (Work):
( ) ( )
______________________________________________________________
1 If you are establishing a joint account and do not check a box,
the account will be registered as joint tenants with rights of survivorship.
Types of joint ownership are governed by the laws of your state of residence.
If you need more information about which are appropriate in your state,
please ask your state tax officials or financial advisor.
2 If you have provided a P.O. Box, please include your residential address
with this application.
2: WE ARE REQUIRED TO REQUEST THE FOLLOWING INFORMATION
______________________________________________________________
Account Owner/Minor Joint Account Owner/
Custodian 1
______________________________________________________________
Social Security ___________________ ___________________
or taxpayer
identification number 1:
Date of Birth
(month/day/year) ______ _____ ______ _______ ____ ______
______________________________________________________________
Citizenship
Country of
citizenship: _U.S. _Other________ _U.S. _Other_______
Country of
tax residence: _U.S. _Other________ _U.S. _Other_______
______________________________________________________________
Occupation: We
are required by the
National Association
of Securities
Dealers (NASD) to
ask for this
information.
______________________________________________________________
Employer's Name
and Address:
______________________________________________________________
Affiliations: _I am affiliated _I am affiliated
with, or work for, with, or work for,
a member firm of a member firm of
the NASD the NASD
______________________________________________________________
1 The Social Security Number or taxpayer identification number
for account owner/minor is used for tax reporting purposes.
(The custodian's Social Security Number will be used
to determine eligibility for maintenance fee waivers.)
3: INVESTMENT INFORMATION
______________________________________________________________
Please make your check payable to the full name of the Fidelity
fund in which you are investing. Note that Fidelity cannot accept
foreign checks or Traveler's checks. Be sure to read the profile(s)
or the prospectus(es) for the fund(s) you choose before your initial
investment and, if you invest based on the profile, be sure to
read the prospectus(es) when [it/they] [is/are] sent to you.
Fund Name: Initial Investment Amount - Fund
minimums vary, see the profile or the
prospectus for additional details.
A.______________________ $____,________,________._______
B.______________________ $____,________,________._______
C.______________________ $____,________,________._______
Dividend & Capital Gain Distributions Check one box:
(If no box is checked, we will
reinvest all distributions.)
_ Reinvest all dividends _ Pay all dividends _ Pay all
and capital gains in and capital gains dividends and
my account. directly to my capital gains
bank account via to me by check.
MoneyLine
(registered
trademark). Please
attach a voided
check.
______________________________________________________________
* Note that some funds may charge a sales load and/or a short-term trading fee.
In addition an annual Fidelity mutual fund maintenance fee of $12 may be
deducted from accounts with a balance of less than $2,500. Minimum initial
investments vary by fund. See your profile or your prospectus for
additional details.
====================Back of Application=======================
4: OPTIONAL ACCOUNT FEATURES
______________________________________________________________
Fidelity Automatic Account Builder (registered trademark)
This service lets you invest automatically (monthly or quarterly) from your bank
account to your Fidelity account. Change or cancel your plan anytime with a
phone call at least one business day before your scheduled investment.
(Automatic Account Builder normally becomes active 20 days after your
application is processed.)
To establish this feature, complete the information below and staple to the left
a voided check from your bank account. One common name must appear on
your Fidelity and bank accounts.
Assign Investment Amount Investment Frequency (month,
to Fund (Spartan minimum: (check one) day,
(from $500; Non-Spartan year)
Section minimum: $100)
3)
__A. $____,______.____ _Monthly _Quarterly beginning _____
__B. $____,______.____ _Monthly _Quarterly beginning _____
__C. $____,______.____ _Monthly _Quarterly beginning _____
Direct Deposit
This service lets you invest directly from your paycheck or your Social Security
check. The minimum investment is $100 per pay period. To establish this feature,
check the appropriate box below. We will send you an authorization form to
complete and give to your employer.
_My check is from the _My check is from someone other than
federal government. the federal government.
Transfers Between Your Bank & Fidelity
This electronic link with your bank account offers flexible access to
your money.
Transfers occur only when you initiate them and may be made through either
Bank Wire or Fidelity MoneyLine (Registered trademark). (See the
prospectus for details and minimum amounts. MoneyLine normally becomes
active 20 days after your application is processed.) Your bank may
charge a fee. This feature is not available with passbook savings accounts.
_ To establish this feature, check the box at left and staple a voided
check from your bank account. One common name must appear on your
Fidelity and bank accounts.
[F3]
Telephone Redemptions & Exchanges
You automatically have the ability to make redemptions or exchanges by
telephone.
Exchanges can be made only between Fidelity funds that have the same
account ownership.
Each fund has rules on the number of exchanges allowed each year. Some
funds have administrative fees (of up to $7.50) and trading
fees (of up to 3.0% on exchanges.
(See the appropriate fund's prospectus for details.) The exchange
privilege may be terminated or modified by Fidelity in the future.
Checkwriting
_Please add this feature to my account. All owners must sign the Signature
Card for checkwriting and the section below at the end of this application.
For custodial accounts, only the custodian may sign the Signature Card.
Checkwriting is an optional feature and is not available on all funds.
In addition there may be a charge for checkwriting.
See prospectus for details.
______________________________________________________________
STAPLE VOIDED CHECK HERE.
______________________________________________________________
5: SIGNATURE
Each owner must sign this section.
By signing this application, I certify that:
(bullet) I have received and read the profile or the prospectus
for the fund in which I am investing. [I understand that if I am
investing based on the profile, I will be sent a prospectus with
my confirmation.] I agree to the terms of the
profile and the prospectus. I have the authority and legal
capacity to purchase mutual fund shares, am of legal age and
believe each investment is suitable for me. It is my
responsibility to read the prospectus of any fund into
which I exchange.
(bullet) I understand that all information provided in
sections 1, 2, 4 and 5 will apply to any new fund into which
my shares may be exchanged.
(bullet) I understand that neither this fund nor Fidelity
Distributors Corporation is a bank, and fund shares are not
backed or guaranteed by any bank or insured
by the FDIC.
(bullet) I ratify any instructions, including telephone
instructions, given on this account. I agree that neither
the fund nor Fidelity Service Company, Inc.
will be liable for any loss, cost or expense for acting
upon any instructions if it follows reasonable procedures
designed to prevent unauthorized transactions.
(If you do not want the ability to redeem and exchange by
telephone, call Fidelity for instructions.) I consent to
the use of recorded telephone conversations.
(bullet) I understand that for joint tenant accounts "I"
refers to all account owners, and each of the account owners
agrees that any account owner has authority to act on
the account without notice to the other account owners.
Fidelity Service Company, Inc. in its sole discretion,
and for its protection, may require the written consent of all
account owners prior to acting upon the instructions of any
account owner.
(bullet) If I am a U.S. Citizen or Resident Alien, as I have
indicated above, I certify under penalties of perjury that
(1) the Social Security or taxpayer identification number
provided above is correct (or I am waiting for a number
to be issued to me), and (2) I am not subject to backup
withholding because (a) I am exempt from backup
withholding, or (b) I have not been notified by the
Internal Revenue Service (IRS) that I am subject to
backup withholding for failure to report all dividend
and interest income, or (c) I have been notified by
the IRS that I am no longer subject to backup withholding.
(Please cross out item 2 if it does not apply to you.)
(bullet) If I am a Non-Resident Alien, as I have
indicated above, I certify under penalties of perjury
that I am not a U.S. Citizen or Resident Alien, that the
information entered above is correct, that if a reduced
rate of tax or exemption from tax applies, I have
complied with all requirements to qualify for the
reduced tax, and I am an exempt foreign person
under IRS regulations.
The Internal Revenue Service does not require your consent
to any provision of this document other than the
certifications required to avoid backup withholding.
Signature of Owner Signature of Joint Owner
Date (month,day,year) Date (month,day,year)
X____________________________ X______________________________
For trusts, all trustees must sign. Only the custodian should
sign the application for custodial accounts.
Not authorized for distribution unless preceded or accompanied by
a current profile or prospectus.
61605.001 Fidelity distributors Corporation MFFK-APP-0998
1.706324.101
===================Front of Signature Card====================
SIGNATURE CARD FOR CHECKWRITING ________________________
Please do not detach this card.
Checkwriting is available only for money market funds
and certain bond funds.
Checkwriting minimums vary and fees may apply.
See prospectus for more information.
Please sign within the boxes
below using BLACK BALLPOINT INK.
Please use a pen and print
clearly in CAPITAL LETTERS.
Owner's Name
(first,MI,last):
____________________________ X________________________________
Joint Owner's Name
(first,MI,last):
____________________________ X________________________________
__Check here if more than one
signature will be required
on checks. If this box is
not checked, only one
signature will be required
on checks. 8324100
==================Back of Signature Card======================
By signing this signature card on the reverse side,
the signatory(ies) agree(s) to be subject to the terms
and conditions, guidelines, and rules applicable to
your account as now in effect and as amended from
time to time, of the fund(s) and of UMB Bank, n.a..
("the Bank"), as they pertain to the use of redemption
checks; therefore, all registered owners must sign
this signature card. All checks will require only one
signature unless otherwise indicated on the face of
this card. Each signatory guarantees the genuineness
of the other's signature on this card.
The Bank is hereby appointed agent by the shareholders
signing this card and, as such agent, is directed to
request redemption of shares of such Fidelity fund(s)
as designated by the shareholders from time to time,
and as recorded on Fidelity's records, upon receipt of,
and to the amount of, checks drawn upon this account(s).
In so acting, the Bank shall be liable only for its own
negligence. Shareholders will be subject the the Bank's
rules, regulations and associated laws governing
check collection, including the Uniform Commercial
Code as enacted in the State of Missouri.
It is further agreed as follows:
1. All items, with exception of those drawn on Spartan
(registered trademark) money market funds, Fidelity
Daily Income Trust ("FDIT"), and Fidelity Municipal
Money Market Fund, must be for a minimum of $500
(or such other minimum amounts as may from time to time
be established upon prior written notice to the
shareholders, including the accounts of Spartan
money market funds, FDIT and Fidelity Municipal Money
Market Fund), or they may be returned to shareholders
marked "Refer to Maker."
2 This card supersedes any card already on file for
the same T Master Account or fund or account number.
3. Refer to the fund prospectus for minimum check
amounts and any applicable fees.
4. You may obtain a copy of the "Statement of Terms
and Conditions" applicable to your account by calling
Fidelity.
