FIDELITY(REGISTERED TRADEMARK)
FREEDOM
FUNDS - INCOME, 2000, 2010, 2020, 2030
ANNUAL REPORT
MARCH 31, 2000
(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.
REPORT OF INDEPENDENT 61 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 62
PROXY VOTING RESULTS 63
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 1-800-544-6666 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Concerned about the high valuations of technology stocks, investors
poured money into so-called old economy stocks during March, sparking
a rally in blue chips during which the Dow Jones Industrial Average
gained 499 points in a single day. Treasuries also benefited as a
haven from the technology sector, as the yield of the 10-year note -
which some consider the new bellwether Treasury issue - trended
downward throughout 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 1-800-544-6666, 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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM INCOME 8.96% 38.39%
FIDELITY FREEDOM INCOME 7.43% 37.34%
COMPOSITE
Wilshire 5000 23.61% 117.24%
LB Aggregate Bond 1.87% 22.94%
LB 3 Month T-Bill 5.15% 19.41%
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 Income Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Total Market 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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM INCOME 8.96% 9.86%
FIDELITY FREEDOM INCOME 7.43% 9.62%
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
1999/10/31 13047.34 13127.34
12087.84
1999/11/30 13175.64 13236.20
12087.00
1999/12/31 13446.14 13435.52
12028.72
2000/01/31 13374.94 13329.33
11989.37
2000/02/29 13612.67 13477.25
12134.35
2000/03/31 13839.33 13733.91
12294.11
IMATRL PRASUN SHR__CHT 20000331 20000410 102522 R00000000000045
$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 March 31, 2000, the value of the
investment would have grown to $13,839 - a 38.39% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Aggregate Bond Index, 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, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment would have grown to $12,294 - a 22.94% 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 $13,734 - a 37.34% 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.
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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2000 13.81% 58.26%
FIDELITY FREEDOM 2000 COMPOSITE 10.42% 54.51%
Wilshire 5000 23.61% 117.24%
MSCI EAFE 25.33% 57.81%
LB Aggregate Bond 1.87% 22.94%
ML High Yield Master II -0.98% 21.29%
LB 3 Month T-Bill 5.15% 19.41%
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 2000 Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Total Market Index, the Morgan Stanley Capital
International Europe, Australasia, 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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2000 13.81% 14.21%
FIDELITY FREEDOM 2000 COMPOSITE 10.42% 13.42%
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
1999/10/31 14453.07 14482.19
12087.84
1999/11/30 14723.43 14680.31
12087.00
1999/12/31 15262.08 15088.42
12028.72
2000/01/31 15085.85 14844.32
11989.37
2000/02/29 15497.07 15052.56
12134.35
2000/03/31 15826.04 15451.23
12294.11
IMATRL PRASUN SHR__CHT 20000331 20000410 101858 R00000000000045
$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 March 31, 2000 the value of the
investment would have grown to $15,826 - a 58.26% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Aggregate Bond Index, 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, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment would have grown to $12,294 - a 22.94% 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 $15,451 - a 54.51% 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.
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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2010 20.32% 82.58%
FIDELITY FREEDOM 2010 COMPOSITE 14.51% 73.86%
Wilshire 5000 23.61% 117.24%
MSCI EAFE 25.33% 57.81%
LB Aggregate Bond 1.87% 22.94%
ML High Yield Master II -0.98% 21.29%
LB 3 Month T-Bill 5.15% 19.41%
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 2010 Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Total Market Index, the Morgan Stanley Capital
International Europe, Australasia, 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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2010 20.32% 19.04%
FIDELITY FREEDOM 2010 COMPOSITE 14.51% 17.36%
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
1999/10/31 16035.12 15907.34
20217.61
1999/11/30 16497.13 16232.87
20628.63
1999/12/31 17459.78 16947.29
21843.66
2000/01/31 17119.27 16508.99
20746.24
2000/02/29 17776.80 16792.41
20353.51
2000/03/31 18258.21 17386.07
22344.69
IMATRL PRASUN SHR__CHT 20000331 20000410 102902 R00000000000045
$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 March 31, 2000, the value of the
investment would have grown to $18,258 - an 82.58% increase on the
initial investment. For comparison, look at how the S&P 500(registered
trademark) Index, a market capitalization-weighted index of common
stocks, did over the same period. With dividends and capital gains, if
any, reinvested, the same $10,000 investment would have grown to
$22,345 - a 123.45% 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 $17,386 - a 73.86% 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.
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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2020 26.74% 101.43%
FIDELITY FREEDOM 2020 COMPOSITE 18.38% 87.59%
Wilshire 5000 23.61% 117.24%
MSCI EAFE 25.33% 57.81%
LB Aggregate Bond 1.87% 22.94%
ML High Yield Master II -0.98% 21.29%
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 2020 Composite Index, a
hypothetical combination of the following unmanaged indices: the
Wilshire 5000 Total Market Index, the Morgan Stanley Capital
International Europe, Australasia, 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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2020 26.74% 22.47%
FIDELITY FREEDOM 2020 COMPOSITE 18.38% 19.97%
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
1999/10/31 17067.77 16795.58
20217.61
1999/11/30 17716.90 17242.89
20628.63
1999/12/31 19093.43 18260.24
21843.66
2000/01/31 18603.86 17631.72
20746.24
2000/02/29 19501.41 17977.21
20353.51
2000/03/31 20142.52 18758.82
22344.69
IMATRL PRASUN SHR__CHT 20000331 20000410 102913 R00000000000045
$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 March 31, 2000, the value of the
investment would have grown to $20,143 - a 101.43% increase on the
initial investment. For comparison, look at how the S&P 500 Index, a
market capitalization-weighted index of common stocks, did over the
same period. With dividends and capital gains, if any, reinvested, the
same $10,000 investment would have grown to $22,345 - a 123.45%
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 $18,759 - an 87.59% 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.
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 MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2030 29.64% 107.96%
FIDELITY FREEDOM 2030 COMPOSITE 19.97% 90.89%
Wilshire 5000 23.61% 117.24%
MSCI EAFE 25.33% 57.81%
LB Aggregate Bond 1.87% 22.94%
ML High Yield Master II -0.98% 21.29%
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 Total Market Index, the Morgan Stanley Capital
International Europe, Australasia, 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.
PERIODS ENDED MARCH 31, 2000 PAST 1 YEAR LIFE OF FUND
FIDELITY FREEDOM 2030 29.64% 23.60%
FIDELITY FREEDOM 2030 COMPOSITE 19.97% 20.58%
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
1999/10/31 17369.44 16942.37
20217.61
1999/11/30 18101.14 17440.30
20628.63
1999/12/31 19676.59 18584.81
21843.66
2000/01/31 19105.41 17874.02
20746.24
2000/02/29 20107.89 18239.96
20353.51
2000/03/31 20795.64 19088.87
22344.69
IMATRL PRASUN SHR__CHT 20000331 20000410 102921 R00000000000045
$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 March 31, 2000, the value of the
investment would have grown to $20,796 - a 107.96% increase on the
initial investment. For comparison, look at how the S&P 500 Index, a
market capitalization-weighted index of common stocks, did over the
same period. With dividends and capital gains, if any, reinvested, the
same $10,000 investment would have grown to $22,345 - a 123.45%
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 $19,089 - a 90.89% 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.
FUND TALK: THE MANAGERS' OVERVIEW
MARKET RECAP
Despite several milestones in the
U.S. stock market during the
12-month period ending March 31,
2000, the overriding theme was
volatility. The period's top-performing
major equity index - the tech-heavy
NASDAQ - returned 86.25% as
investors flocked to stocks of
companies involved in the Internet,
wireless communications and
biotechnology. However, volatility
was the most extreme in March, as
the NASDAQ topped the 5000
mark before shedding much of
2000's year-to-date gains by the
month's end. Concurrently, investors
retreated to companies in the
blue-chip's benchmark - the Dow
Jones Industrial Average - which
gained 13.29% during the year.
The Dow gyrated in a range of
roughly 2000 points later in the
period after its inaugural passing of
the 11,000 level in November.
Meanwhile, the Standard & Poor's
500SM Index - an index of 500
commonly held large-cap stocks -
returned 17.94%. The period also
was characterized by the Federal
Reserve Board's concern that the
growth of the U. S. economy was
excessive, resulting in five
short-term interest rate hikes. The
threat of inflation proved
detrimental to bond prices as the
Lehman Brothers Aggregate Bond
Index returned 1.87% during the
year. Investors preferred
higher-yielding securities early in
the period, as tightening yield
spreads resulted from narrowing
supply. In January, the Treasury
Department's decision to
re-purchase its outstanding debt
and reduce issuance led to a
shrinking supply of 30-year
Treasury bonds.
(photograph of Ren Cheng)(photograph of Scott Stewart)
An interview with Scott Stewart (right) and Ren Cheng (left),
Portfolio Managers of Fidelity Freedom Funds
Q. HOW DID THE FUNDS PERFORM, SCOTT?
S.S. For the 12 months that ended March 31, 2000, the Income, 2000 and
2010 portfolios returned 8.96%, 13.81% and 20.32%, respectively. The
2020 and 2030 portfolios returned 26.74% and 29.64%, respectively,
during 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. During the past 12 months, the
composite benchmarks for the Income, 2000 and 2010 portfolios returned
7.43%, 10.42%, and 14.51%, respectively. The composite benchmarks for
the 2020 and 2030 portfolios returned 18.38% and 19.97%, respectively,
during the same period.
Q. TURNING TO YOU REN, WHAT FACTORS HELPED THE FUNDS OUTPERFORM THEIR
BENCHMARKS?
R.C. Discipline and fundamental research. The portfolios are designed
for investors to achieve strong returns by taking on age-appropriate
risk in a diversified portfolio of investments. Within this tightly
monitored, risk-controlled structure, I try to let the strength of
Fidelity's fundamental research and stock picking ability filter
through in the underlying funds. During the period, it worked quite
well. As the equity market gyrated, the Freedom Funds were able to
maintain a well-diversified structure that allowed them to avoid the
extremes of the market during the past year and benefit consistently
from Fidelity's research capabilities.
Q. DID THE MARKET VOLATILITY OF THE PERIOD FORCE YOU TO RE-BALANCE THE
ASSET MIXES OF THE FUNDS MORE THAN NORMAL?
R.C. I re-balanced the portfolios a little more frequently during the
extreme equity market fluctuations. By the very nature of the funds'
investment discipline, when market appreciation or depreciation alters
the allocation of a specific asset category more than 1% above or
below its target, the manager must re-position the fund. Under this
design, the Freedom Funds buy more of the underlying portfolios when a
category allocation falls below the target mix and sell their
investments when market appreciation raises an asset class above the
specific target. Thus, the funds are always buying low and selling
high. Owning Freedom Funds is very much like running a marathon - a
financial marathon. Going into the race, you need to have a
predetermined structured plan and the discipline to stay with it.
Q. WHICH INVESTMENT CATEGORIES PERFORMED WELL? WHICH UNDERPERFORMED?
R.C. For the majority of the period, all of the underlying Fidelity
domestic equity portfolios in which the Freedom Funds invest performed
well, except for the more value-oriented funds such as Equity Income.
A market environment that favored growth-oriented stocks fueled the
strong performance of Growth Company and OTC Portfolio, both of which
were overweighted in technology stocks relative to their indexes.
However, the market turned in favor of industrial stocks during the
last month of the period as investors began to take profits in the
high-flying technology sector. During this correction in technology,
the fund benefited from the performances of its underlying value fund
holdings.
Q. WHAT IS YOUR OUTLOOK, REN?
R.C. One thing I'm sure of is that the current level of market
volatility is not going away - it's likely going to get worse. No
matter how you measure volatility, we are at a much higher level than
in the past. I attribute much of this increase in volatility to
improvements in technology, which have in turn increased the speed at
which information flows. What's more, there are more investors
entering the market today than ever before, both experienced and
inexperienced. Under these conditions, risk control becomes more and
more important. Human beings, being the way we are, tend to get
emotionally involved when the market goes to extremes. If you don't
have discipline, you tend to make inappropriate decisions at the worst
possible time. In terms of the funds' long-term strategy, we'll
gradually re-allocate each Freedom Fund's target investment mix during
the coming months. The table below illustrates the target mix we'd
like to achieve for each fund by the next time we address our
shareholders on September 30, 2000.
INCOME 2000 2010 2020 2030
Domestic Equity Funds 20.0% 29.5% 44.9% 62.2% 70.0%
International Equity Funds - 2.4% 6.2% 10.5% 13.1%
Inv. Grade Fixed-Income Funds 40.0% 40.1% 36.0% 19.8% 8.8%
High Yield Fixed-Income Funds - 2.4% 5.7% 7.5% 8.1%
Money Market Funds 40.0% 25.6% 7.2% - -
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.
COMPOSITE BENCHMARKS
INCOME 2000 2010 2020 2030
Wilshire 5000 20.0% 30.8% 46.3% 62.8% 69.9%
MSCI EAFE - 2.8% 6.6% 10.7% 13.4%
LB Aggregate Bond 40.0% 40.0% 34.7% 18.9% 8.3%
ML High Yield Master II - 2.7% 5.9% 7.6% 8.4%
LB 3 Month T-Bill 40.0% 23.7% 6.5% - -
(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
underlying Fidelity equity,
fixed-income and money
market funds.
FUND NUMBERS: Income (369);
2000 (370); 2010 (371);
2020 (372); 2030 (373)
SIZE: as of March 31,
2000, more than $306
million (Income); $743
million (2000); $2.0 billion
(2010); $1.9 billion (2020);
$1.2 billion (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 THE
NEW ECONOMY VS. THE OLD
ECONOMY:
"My long-term view is that the new
economy `technology' companies
and the old economy `industrial'
companies must coexist with one
another. Without the old economy
companies, to whom do the new
economy companies sell their
products? The power of the new
economy is that it helps the old
economy modernize into the 21st
century. Look at how fast the
business-to-business Internet
network is developing. It's
fundamentally revolutionizing the
entire marketplace - from
Mom-and-Pop shops to
well-established firms like
General Motors.
"The effect of this new
business-to-business cycle is that
it takes out the middle layer of the
traditional distribution channel
- - wholesalers. It's more direct,
more cost-efficient and more
client-oriented. What's more, the
whole Internet revolution is very
deflationary, bringing prices
down. Finally, this new
marketplace is one reason why I
think the U.S. gross domestic
product (GDP) can grow by 7.3%
with almost no inflation. That can't
be achieved through the
traditional structure of the old
economy."
FIDELITY FREEDOM INCOME FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
FUND HOLDINGS AS OF MARCH 31,
2000
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 2.9% 3.0%
Disciplined Equity Fund 3.0 2.9
Equity-Income Fund 3.1 2.8
Fidelity Fund 2.9 2.9
Growth & Income Portfolio 3.0 3.0
Growth Company Fund 2.8 2.8
OTC Portfolio 1.9 2.1
19.6 19.5
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 15.2 15.2
Intermediate Bond Fund 9.9 9.9
Investment Grade Bond Fund 15.2 15.2
40.3 40.3
MONEY MARKET FUND
Fidelity Money Market Trust: 40.1 40.2
Retirement Money Market
Portfolio
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
40.2% Row: 1, Col: 1, Value: 40.2
40.3% Row: 1, Col: 2, Value: 40.3
19.5% Row: 1, Col: 3, Value: 19.5
CURRENT
40.1% Row: 1, Col: 1, Value: 40.1
40.3% Row: 1, Col: 2, Value: 40.3
19.6% Row: 1, Col: 3, Value: 19.6
EXPECTED
40.0% Row: 1, Col: 1, Value: 40.0
40.0% Row: 1, Col: 2, Value: 40.0
20.0% Row: 1, Col: 3, Value: 20.0
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
SEPTEMBER 30, 1999. THE CURRENT ALLOCATION IS BASED ON THE FUND'S
HOLDINGS AS OF MARCH 31, 2000. THE EXPECTED ALLOCATION REPRESENTS THE
FUND'S ANTICIPATED TARGET ASSET ALLOCATION AT SEPTEMBER 30, 2000.
FIDELITY FREEDOM INCOME FUND
INVESTMENTS MARCH 31, 2000
Showing Percentage of Total Value of Investment in Securities
EQUITY FUNDS - 19.6%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 19.6%
Blue Chip Growth Fund 141,991 $ 9,032,061
Disciplined Equity Fund 287,225 9,176,825
Equity-Income Fund 185,406 9,385,276
Fidelity Fund 204,694 9,002,460
Growth & Income Portfolio 192,799 9,121,332
Growth Company Fund 88,292 8,740,046
OTC Portfolio 73,513 5,806,087
TOTAL EQUITY FUNDS 60,264,087
(Cost $46,607,725)
FIXED-INCOME FUNDS - 40.3%
INVESTMENT GRADE FIXED-INCOME
FUNDS - 40.3%
Government Income Fund 4,932,826 46,615,207
Intermediate Bond Fund 3,120,328 30,423,196
Investment Grade Bond Fund 6,721,225 46,578,085
TOTAL FIXED-INCOME FUNDS 123,616,488
(Cost $128,074,908)
MONEY MARKET FUND - 40.1%
Fidelity Money Market Trust: 122,943,961 122,943,961
Retirement Money Market
Portfolio (Cost $122,943,961)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT
Investments in repurchase $ 46,023 46,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 6.11%,
dated 3/31/00 due 4/3/00
(Cost $46,000)
TOTAL INVESTMENT IN $ 306,870,536
SECURITIES - 100%
(Cost $297,672,594)
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$191,189,745 and $89,138,552, respectively.
INCOME TAX INFORMATION
At March 31, 2000, the aggregate
cost of investment securities for income
tax purposes was $298,485,620. Net unrealized appreciation aggregated
$8,384,916, of which $13,894,378 related to appreciated investment
securities and $5,509,462 related to depreciated investment
securities.
The fund hereby designates approximately $2,387,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FIDELITY FREEDOM INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
ASSETS
Investment in securities, at $ 306,870,536
value (including repurchase
agreements of $46,000) (cost
$297,672,594) - See
accompanying schedule
Cash 197
Receivable for Freedom Fund 2,184,550
shares sold
Dividends receivable 1,215,901
TOTAL ASSETS 310,271,184
LIABILITIES
Payable for underlying fund $ 2,188,876
shares purchased
Payable for Freedom Fund 1,228,933
shares redeemed
Accrued management fee 19,312
TOTAL LIABILITIES 3,437,121
NET ASSETS $ 306,834,063
Net Assets consist of:
Paid in capital $ 291,217,681
Undistributed net investment 1,528,167
income
Accumulated undistributed net 4,890,273
realized gain (loss) on
investments
Net unrealized appreciation 9,197,942
(depreciation) on investments
NET ASSETS, for 26,504,008 $ 306,834,063
shares outstanding
NET ASSET VALUE, offering $11.58
price and redemption price
per share ($306,834,063
(divided by) 26,504,008
shares)
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
INVESTMENT INCOME $ 11,469,888
Income distributions from
underlying funds
Interest 2,536
TOTAL INCOME 11,472,424
EXPENSES
Management fee $ 245,499
Non-interested trustees' 693
compensation
Total expenses before 246,192
reductions
Expense reductions (82,262) 163,930
NET INVESTMENT INCOME 11,308,494
REALIZED AND UNREALIZED GAIN
(LOSS)
Realized gain (loss) on sale 3,571,812
of underlying fund shares
Capital gain distributions 4,375,672 7,947,484
from underlying funds
Change in net unrealized 3,587,636
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 11,535,120
NET INCREASE (DECREASE) IN $ 22,843,614
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 49,732
investment adviser
Custodian credits 114
Transfer agent credits 32,416
$ 82,262
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31, 2000 YEAR ENDED MARCH 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 11,308,494 $ 5,707,270
income
Net realized gain (loss) 7,947,484 1,145,393
Change in net unrealized 3,587,636 4,467,050
appreciation (depreciation)
NET INCREASE (DECREASE) IN 22,843,614 11,319,713
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (11,479,859) (5,362,025)
From net investment income
From net realized gain (2,572,145) (1,020,486)
TOTAL DISTRIBUTIONS (14,052,004) (6,382,511)
Share transactions Net 325,878,686 277,936,617
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 13,824,904 6,288,639
Cost of Freedom Fund shares (239,298,677) (146,997,230)
redeemed
NET INCREASE (DECREASE) IN 100,404,913 137,228,026
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 109,196,523 142,165,228
IN NET ASSETS
NET ASSETS
Beginning of period 197,637,540 55,472,312
End of period (including $ 306,834,063 $ 197,637,540
undistributed net investment
income of $1,528,167 and
$752,770, respectively)
OTHER INFORMATION
Shares
Sold 28,961,004 25,277,092
Issued in reinvestment of 1,231,741 571,496
distributions
Redeemed (21,255,056) (13,347,804)
Net increase (decrease) 8,937,689 12,500,784
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED MARCH 31, 2000 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 .52 .49 .50 .22
Net realized and unrealized .45 .40 .96 (.02)
gain (loss)
Total from investment .97 .89 1.46 .20
operations
Less Distributions
From net investment income (.52) (.47) (.51) (.14)
From net realized gain (.12) (.12) (.06) -
Total distributions (.64) (.59) (.57) (.14)
Net asset value, end of period $ 11.58 $ 11.25 $ 10.95 $ 10.06
TOTAL RETURN B, C 8.96% 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 $ 306,834 $ 197,638 $ 55,472 $ 9,427
(000 omitted)
Ratio of expenses to average .08% F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 4.59% 4.46% 4.71% 4.95% A
income to average net assets
Portfolio turnover rate 37% 29% 33% 32% A
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 MARCH 31,
2000
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 4.8% 5.1%
Disciplined Equity Fund 4.9 5.0
Equity-Income Fund 5.0 5.0
Fidelity Fund 4.8 5.0
Growth & Income Portfolio 4.9 5.2
Growth Company Fund 4.6 4.9
OTC Portfolio 3.1 3.6
32.1 33.8
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 0.8 0.9
Europe Fund 1.1 1.2
Japan Fund 0.3 0.4
Overseas Fund 0.8 0.9
Southeast Asia Fund 0.1 0.2
3.1 3.6
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 3.0 3.5
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 15.1 14.9
Intermediate Bond Fund 9.8 9.8
Investment Grade Bond Fund 15.0 15.0
39.9 39.7
MONEY MARKET FUND
Fidelity Money Market Trust: 21.9 19.4
Retirement Money Market
Portfolio
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
19.4% (MM) Row: 1, Col: 1, Value: 19.4
39.7% (IG) Row: 1, Col: 2, Value: 39.7
3.5% (HY) Row: 1, Col: 3, Value: 3.5
3.6% (IE) Row: 1, Col: 4, Value: 3.6
33.8% (DE) Row: 1, Col: 5, Value: 33.8
CURRENT
21.9% (MM) Row: 1, Col: 1, Value: 21.9
39.9% (IG) Row: 1, Col: 2, Value: 39.9
3.0% (HY) Row: 1, Col: 3, Value: 3.0
3.1% (IE) Row: 1, Col: 4, Value: 3.1
32.1% (DE) Row: 1, Col: 5, Value: 32.1
EXPECTED
25.6% (MM) Row: 1, Col: 1, Value: 25.6
40.1% (IG) Row: 1, Col: 2, Value: 40.1
2.4% (IE) Row: 1, Col: 3, Value: 2.4
2.4% (HY) Row: 1, Col: 4, Value: 2.4
29.5% (DE) Row: 1, Col: 5, Value: 29.5
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
HY = High Yield funds
IG = Investment Grade 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 SEPTEMBER 30, 1999.
THE CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31,
2000. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT SEPTEMBER 30, 2000.
FIDELITY FREEDOM 2000 FUND
INVESTMENTS MARCH 31, 2000
Showing Percentage of Total Value of Investment in Securities
EQUITY FUNDS - 35.2%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 32.1%
Blue Chip Growth Fund 561,552 $ 35,720,313
Disciplined Equity Fund 1,135,929 36,292,926
Equity-Income Fund 733,265 37,117,856
Fidelity Fund 809,549 35,603,977
Growth & Income Portfolio 762,463 36,072,121
Growth Company Fund 349,343 34,581,450
OTC Portfolio 290,689 22,958,627
238,347,270
INTERNATIONAL EQUITY FUNDS -
3.1%
Diversified International Fund 225,192 5,785,190
Europe Fund 198,954 7,980,040
Japan Fund 92,575 2,426,380
Overseas Fund 120,460 5,814,598
Southeast Asia Fund 63,325 1,116,425
23,122,633
TOTAL EQUITY FUNDS 261,469,903
(Cost $191,032,104)
FIXED-INCOME FUNDS - 42.9%
HIGH YIELD FIXED-INCOME FUNDS
- - 3.0%
Capital & Income Fund 2,447,026 22,610,515
INVESTMENT GRADE FIXED-INCOME
FUNDS - 39.9%
Government Income Fund 11,838,536 111,874,169
Intermediate Bond Fund 7,487,687 73,004,950
Investment Grade Bond Fund 16,130,713 111,785,843
296,664,962
TOTAL FIXED-INCOME FUNDS 319,275,477
(Cost $332,387,246)
MONEY MARKET FUND - 21.9%
Fidelity Money Market Trust: 163,211,861 163,211,861
Retirement Money Market
Portfolio (Cost $163,211,861)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 87,044 $ 87,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 6.11%,
dated 3/31/00 due 4/3/00
(Cost $87,000)
TOTAL INVESTMENT IN $ 744,044,241
SECURITIES - 100%
(Cost $686,718,211)
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$380,280,429 and $240,357,751, respectively.
INCOME TAX INFORMATION
At March 31, 2000, the aggregate
cost of investment securities for income
tax purposes was $689,992,815. Net unrealized appreciation aggregated
$54,051,426, of which $70,445,808 related to appreciated investment
securities and $16,394,382 related to depreciated investment
securities.
The fund hereby designates approximately $13,739,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FIDELITY FREEDOM 2000 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
ASSETS
Investment in securities, at $ 744,044,241
value (including repurchase
agreements of $87,000) (cost
$686,718,211) - See
accompanying schedule
Cash 74
Receivable for Freedom Fund 4,853,317
shares sold
Dividends receivable 2,457,154
TOTAL ASSETS 751,354,786
LIABILITIES
Payable for underlying fund $ 5,549,733
shares purchased
Payable for Freedom Fund 1,808,300
shares redeemed
Accrued management fee 48,640
TOTAL LIABILITIES 7,406,673
NET ASSETS $ 743,948,113
Net Assets consist of:
Paid in capital $ 655,466,235
Undistributed net investment 7,310,266
income
Accumulated undistributed net 23,845,582
realized gain (loss) on
investments
Net unrealized appreciation 57,326,030
(depreciation) on investments
NET ASSETS, for 55,223,802 $ 743,948,113
shares outstanding
NET ASSET VALUE, offering $13.47
price and redemption price
per share ($743,948,113
(divided by) 55,223,802
shares)
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
INVESTMENT INCOME $ 25,496,677
Income distributions from
underlying funds
Interest 3,561
TOTAL INCOME 25,500,238
EXPENSES
Management fee $ 643,593
Non-interested trustees' 1,838
compensation
Total expenses before 645,431
reductions
Expense reductions (207,348) 438,083
NET INVESTMENT INCOME 25,062,155
REALIZED AND UNREALIZED GAIN
(LOSS)
Realized gain (loss) on sale 17,371,089
of underlying fund shares
Capital gain distributions 20,640,141 38,011,230
from underlying funds
Change in net unrealized 22,984,096
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 60,995,326
NET INCREASE (DECREASE) IN $ 86,057,481
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 129,329
investment adviser
Custodian credits 128
Transfer agent credits 77,891
$ 207,348
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31, 2000 YEAR ENDED MARCH 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 25,062,155 $ 16,112,596
income
Net realized gain (loss) 38,011,230 8,949,255
Change in net unrealized 22,984,096 21,119,190
appreciation (depreciation)
NET INCREASE (DECREASE) IN 86,057,481 46,181,041
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (26,666,342) (14,832,976)
From net investment income
From net realized gain (14,199,445) (6,958,244)
TOTAL DISTRIBUTIONS (40,865,787) (21,791,220)
Share transactions Net 492,959,491 485,624,589
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 40,781,091 21,766,208
Cost of Freedom Fund shares (398,701,795) (293,188,489)
redeemed
NET INCREASE (DECREASE) IN 135,038,787 214,202,308
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 180,230,481 238,592,129
IN NET ASSETS
NET ASSETS
Beginning of period 563,717,632 325,125,503
End of period (including $ 743,948,113 $ 563,717,632
undistributed net investment
income of $7,310,266 and
$4,771,097, respectively)
OTHER INFORMATION
Shares
Sold 38,299,772 40,067,493
Issued in reinvestment of 3,206,894 1,786,671
distributions
Redeemed (31,012,430) (24,267,906)
Net increase (decrease) 10,494,236 17,586,258
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED MARCH 31, 2000 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 .50 .45 .60 .18
Net realized and unrealized 1.18 .78 1.71 .03
gain (loss)
Total from investment 1.68 1.23 2.31 .21
operations
Less Distributions
From net investment income (.52) (.40) (.33) (.09)
From net realized gain (.29) (.21) (.12) -
Total distributions (.81) (.61) (.45) (.09)
Net asset value, end of period $ 13.47 $ 12.60 $ 11.98 $ 10.12
TOTAL RETURN B, C 13.81% 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 $ 743,948 $ 563,718 $ 325,126 $ 15,946
(000 omitted)
Ratio of expenses to average .08% F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 3.88% 3.76% 3.72% 4.00% A
income to average net assets
Portfolio turnover rate 37% 27% 24% 19% A
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 2010 FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
FUND HOLDINGS AS OF MARCH 31,
2000
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 7.2% 7.6%
Disciplined Equity Fund 7.3 7.4
Equity-Income Fund 7.4 7.3
Fidelity Fund 7.1 7.4
Growth & Income Portfolio 7.2 7.8
Growth Company Fund 6.9 7.3
OTC Portfolio 4.6 5.3
47.7 50.1
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 1.8 1.9
Europe Fund 2.4 2.7
Japan Fund 0.7 0.8
Overseas Fund 1.8 2.0
Southeast Asia Fund 0.3 0.4
7.0 7.8
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 6.1 6.4
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 12.6 11.7
Intermediate Bond Fund 8.2 7.6
Investment Grade Bond Fund 12.6 11.7
33.4 31.0
MONEY MARKET FUND
Fidelity Money Market Trust: 5.8 4.7
Retirement Money Market
Portfolio
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
4.7% (MM) Row: 1, Col: 1, Value: 4.7
31.0% (IG) Row: 1, Col: 2, Value: 31.0
6.4% (HY) Row: 1, Col: 3, Value: 6.4
7.8% (IE) Row: 1, Col: 4, Value: 7.8
50.1% (DE) Row: 1, Col: 5, Value: 50.1
CURRENT
5.8% (MM) Row: 1, Col: 1, Value: 5.8
33.4% (IG) Row: 1, Col: 2, Value: 33.4
6.1% (HY) Row: 1, Col: 3, Value: 6.1
7.0% (IE) Row: 1, Col: 4, Value: 7.0
47.7% (DE) Row: 1, Col: 5, Value: 47.7
EXPECTED
7.2% (MM) Row: 1, Col: 1, Value: 7.2
36.0% (IG) Row: 1, Col: 2, Value: 36.0
5.7% (HY) Row: 1, Col: 3, Value: 5.7
6.2% (IE) Row: 1, Col: 4, Value: 6.2
44.9% (DE) Row: 1, Col: 5, Value: 44.9
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
HY = High Yield funds
IG = Investment Grade 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 SEPTEMBER 30, 1999.
THE CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31,
2000. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT SEPTEMBER 30, 2000.
FIDELITY FREEDOM 2010 FUND
INVESTMENTS MARCH 31, 2000
Showing Percentage of Total Value of Investment in Securities
EQUITY FUNDS - 54.7%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 47.7%
Blue Chip Growth Fund 2,261,481 $ 143,852,815
Disciplined Equity Fund 4,574,222 146,146,399
Equity-Income Fund 2,952,379 149,449,438
Fidelity Fund 3,260,221 143,384,529
Growth & Income Portfolio 3,070,387 145,259,995
Growth Company Fund 1,407,003 139,279,263
OTC Portfolio 1,171,262 92,506,269
959,878,708
INTERNATIONAL EQUITY FUNDS -
7.0%
Diversified International Fund 1,378,950 35,425,224
Europe Fund 1,217,188 48,821,418
Japan Fund 564,839 14,804,427
Overseas Fund 737,606 35,604,257
Southeast Asia Fund 386,259 6,809,754
141,465,080
TOTAL EQUITY FUNDS 1,101,343,788
(Cost $840,832,295)
FIXED-INCOME FUNDS - 39.5%
HIGH YIELD FIXED-INCOME FUNDS
- - 6.1%
Capital & Income Fund 13,305,656 122,944,257
INVESTMENT GRADE FIXED-INCOME
FUNDS - 33.4%
Government Income Fund 26,818,150 253,431,516
Intermediate Bond Fund 16,963,877 165,397,804
Investment Grade Bond Fund 36,541,934 253,235,605
672,064,925
TOTAL FIXED-INCOME FUNDS 795,009,182
(Cost $817,451,528)
MONEY MARKET FUND - 5.8%
Fidelity Money Market Trust: 116,815,090 116,815,090
Retirement Money Market
Portfolio (Cost $116,815,090)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 151,077 $ 151,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 6.11%,
dated 3/31/00 due 4/3/00
(Cost $151,000)
TOTAL INVESTMENT IN $ 2,013,319,060
SECURITIES - 100%
(Cost $1,775,249,913)
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$1,225,189,451 and $472,998,964, respectively.
INCOME TAX INFORMATION
At March 31, 2000, the aggregate cost of investment securities for
income tax purposes was $1,784,585,273. Net unrealized appreciation
aggregated $228,733,787, of which $263,814,197 related to appreciated
investment securities and $35,080,410 related to depreciated
investment securities.
The fund hereby designates approximately $38,184,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FIDELITY FREEDOM 2010 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
ASSETS
Investment in securities, at $ 2,013,319,060
value (including repurchase
agreements of $151,000)
(cost $1,775,249,913) - See
accompanying schedule
Cash 1,470
Receivable for Freedom Fund 10,114,596
shares sold
Dividends receivable 4,769,997
TOTAL ASSETS 2,028,205,123
LIABILITIES
Payable for underlying fund $ 12,433,803
shares purchased
Payable for Freedom Fund 2,554,284
shares redeemed
Accrued management fee 130,181
TOTAL LIABILITIES 15,118,268
NET ASSETS $ 2,013,086,855
Net Assets consist of:
Paid in capital $ 1,697,738,014
Undistributed net investment 13,113,288
income
Accumulated undistributed net 64,166,406
realized gain (loss) on
investments
Net unrealized appreciation 238,069,147
(depreciation) on investments
NET ASSETS, for 129,439,287 $ 2,013,086,855
shares outstanding
NET ASSET VALUE, offering $15.55
price and redemption price
per share ($2,013,086,855
(divided by) 129,439,287
shares)
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
INVESTMENT INCOME $ 44,086,402
Income distributions from
underlying funds
Interest 7,747
TOTAL INCOME 44,094,149
EXPENSES
Management fee $ 1,440,133
Non-interested trustees' 3,996
compensation
Total expenses before 1,444,129
reductions
Expense reductions (428,995) 1,015,134
NET INVESTMENT INCOME 43,079,015
REALIZED AND UNREALIZED GAIN
(LOSS)
Realized gain (loss) on sale 34,720,168
of underlying fund shares
Capital gain distributions 70,056,742 104,776,910
from underlying funds
Change in net unrealized 137,436,334
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 242,213,244
NET INCREASE (DECREASE) IN $ 285,292,259
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 289,947
investment adviser
Custodian credits 92
Transfer agent credits 138,956
$ 428,995
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31, 2000 YEAR ENDED MARCH 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 43,079,015 $ 22,401,098
income
Net realized gain (loss) 104,776,910 24,015,208
Change in net unrealized 137,436,334 58,372,346
appreciation (depreciation)
NET INCREASE (DECREASE) IN 285,292,259 104,788,652
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (49,841,025) (22,500,156)
From net investment income
From net realized gain (39,013,598) (16,254,418)
TOTAL DISTRIBUTIONS (88,854,623) (38,754,574)
Share transactions Net 1,114,303,078 623,553,298
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 88,773,017 38,733,842
Cost of Freedom Fund shares (475,336,139) (286,768,408)
redeemed
NET INCREASE (DECREASE) IN 727,739,956 375,518,732
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 924,177,592 441,552,810
IN NET ASSETS
NET ASSETS
Beginning of period 1,088,909,263 647,356,453
End of period (including $ 2,013,086,855 $ 1,088,909,263
undistributed net investment
income of $13,113,288 and
$5,470,634, respectively)
OTHER INFORMATION
Shares
Sold 76,923,629 47,946,684
Issued in reinvestment of 6,204,166 2,955,502
distributions
Redeemed (32,821,268) (22,294,089)
Net increase (decrease) 50,306,527 28,608,097
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED MARCH 31, 2000 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 .43 .36 .30 .11
Net realized and unrealized 2.27 1.22 2.82 .15
gain (loss)
Total from investment 2.70 1.58 3.12 .26
operations
Less Distributions
From net investment income (.49) (.35) (.37) (.11)
From net realized gain (.42) (.28) (.09) -
Total distributions (.91) (.63) (.46) (.11)
Net asset value, end of period $ 15.55 $ 13.76 $ 12.81 $ 10.15
TOTAL RETURN B, C 20.32% 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 $ 2,013,087 $ 1,088,909 $ 647,356 $ 23,600
(000 omitted)
Ratio of expenses to average .08% F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 2.98% 2.82% 2.54% 2.56% A
income to average net assets
Portfolio turnover rate 33% 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 MARCH 31,
2000
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 9.5% 9.8%
Disciplined Equity Fund 9.6 9.5
Equity-Income Fund 9.9 9.4
Fidelity Fund 9.5 9.5
Growth & Income Portfolio 9.6 10.0
Growth Company Fund 9.2 9.4
OTC Portfolio 6.1 6.9
63.4 64.5
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 2.7 2.9
Europe Fund 3.8 4.0
Japan Fund 1.1 1.2
Overseas Fund 2.8 2.9
Southeast Asia Fund 0.5 0.5
10.9 11.5
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 7.6 7.6
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 6.8 6.2
Intermediate Bond Fund 4.5 4.0
Investment Grade Bond Fund 6.8 6.2
18.1 16.4
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
16.4% (IG) Row: 1, Col: 1, Value: 16.4
7.6% (HY) Row: 1, Col: 2, Value: 7.6
11.5% (IE) Row: 1, Col: 3, Value: 11.5
64.5% (DE) Row: 1, Col: 4, Value: 64.5
CURRENT
18.1% (IG) Row: 1, Col: 1, Value: 18.1
7.6% (HY) Row: 1, Col: 2, Value: 7.6
10.9% (IE) Row: 1, Col: 3, Value: 10.9
63.4% (DE) Row: 1, Col: 4, Value: 63.4
EXPECTED
19.8% (IG) Row: 1, Col: 1, Value: 19.8
7.5% (HY) Row: 1, Col: 2, Value: 7.5
10.5% (IE) Row: 1, Col: 3, Value: 10.5
62.2% (DE) Row: 1, Col: 4, Value: 62.2
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
HY = High Yield funds
IG = Investment Grade 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 SEPTEMBER 30, 1999.
THE CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31,
2000. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT SEPTEMBER 30, 2000.
FIDELITY FREEDOM 2020 FUND
INVESTMENTS MARCH 31, 2000
Showing Percentage of Total Value of Investment in Securities
EQUITY FUNDS - 74.3%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 63.4%
Blue Chip Growth Fund 2,932,288 $ 186,522,833
Disciplined Equity Fund 5,930,487 189,479,062
Equity-Income Fund 3,828,436 193,795,451
Fidelity Fund 4,227,275 185,915,574
Growth & Income Portfolio 3,980,801 188,331,693
Growth Company Fund 1,824,787 180,635,696
OTC Portfolio 1,519,252 119,990,504
1,244,670,813
INTERNATIONAL EQUITY FUNDS -
10.9%
Diversified International Fund 2,096,744 53,865,356
Europe Fund 1,850,923 74,240,515
Japan Fund 858,473 22,500,581
Overseas Fund 1,121,504 54,135,021
Southeast Asia Fund 590,743 10,414,795
215,156,268
TOTAL EQUITY FUNDS 1,459,827,081
(Cost $1,129,467,329)
FIXED-INCOME FUNDS - 25.7%
HIGH YIELD FIXED-INCOME FUNDS
- - 7.6%
Capital & Income Fund 16,129,401 149,035,662
INVESTMENT GRADE FIXED-INCOME
FUNDS - 18.1%
Government Income Fund 14,181,138 134,011,750
Intermediate Bond Fund 8,968,738 87,445,195
Investment Grade Bond Fund 19,323,201 133,909,786
355,366,731
TOTAL FIXED-INCOME FUNDS 504,402,393
(Cost $518,555,471)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 131,067 $ 131,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 6.11%,
dated 3/31/00 due 4/3/00
(Cost $131,000)
TOTAL INVESTMENT IN $ 1,964,360,474
SECURITIES - 100%
(Cost $1,648,153,800)
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$1,116,559,301 and $375,374,820, respectively.
INCOME TAX INFORMATION
At March 31, 2000, the aggregate cost of investment securities for
income tax purposes was $1,657,796,333. Net unrealized appreciation
aggregated $306,564,141, of which $334,182,933 related to appreciated
investment securities and $27,618,792 related to depreciated
investment securities.
The fund hereby designates approximately $44,965,000 as
a capital gain dividend for the purpose of the dividend paid
deduction.
FIDELITY FREEDOM 2020 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
ASSETS
Investment in securities, at $ 1,964,360,474
value (including repurchase
agreements of $131,000)
(cost $1,648,153,800) - See
accompanying schedule
Cash 527
Receivable for Freedom Fund 7,633,110
shares sold
Dividends receivable 2,778,510
TOTAL ASSETS 1,974,772,621
LIABILITIES
Payable for underlying fund $ 8,480,093
shares purchased
Payable for Freedom Fund 1,987,102
shares redeemed
Accrued management fee 127,083
TOTAL LIABILITIES 10,594,278
NET ASSETS $ 1,964,178,343
Net Assets consist of:
Paid in capital $ 1,570,521,706
Undistributed net investment 8,148,012
income
Accumulated undistributed net 69,301,951
realized gain (loss) on
investments
Net unrealized appreciation 316,206,674
(depreciation) on investments
NET ASSETS, for 113,688,690 $ 1,964,178,343
shares outstanding
NET ASSET VALUE, offering $17.28
price and redemption price
per share ($1,964,178,343
(divided by) 113,688,690
shares)
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
INVESTMENT INCOME $ 28,759,151
Income distributions from
underlying funds
Interest 8,029
TOTAL INCOME 28,767,180
EXPENSES
Management fee $ 1,340,974
Non-interested trustees' 3,696
compensation
Total expenses before 1,344,670
reductions
Expense reductions (403,050) 941,620
NET INVESTMENT INCOME 27,825,560
REALIZED AND UNREALIZED GAIN
(LOSS)
Realized gain (loss) on sale 30,788,752
of underlying fund shares
Capital gain distributions 83,939,174 114,727,926
from underlying funds
Change in net unrealized 197,716,542
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 312,444,468
NET INCREASE (DECREASE) IN $ 340,270,028
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 270,355
investment adviser
Custodian credits 17
Transfer agent credits 132,678
$ 403,050
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31, 2000 YEAR ENDED MARCH 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 27,825,560 $ 14,722,645
income
Net realized gain (loss) 114,727,926 28,565,852
Change in net unrealized 197,716,542 70,879,089
appreciation (depreciation)
NET INCREASE (DECREASE) IN 340,270,028 114,167,586
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (30,565,990) (16,160,557)
From net investment income
In excess of net investment (9,190,347) -
income
From net realized gain (45,679,122) (14,186,440)
TOTAL DISTRIBUTIONS (85,435,459) (30,346,997)
Share transactions Net 1,070,824,990 557,805,316
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 85,369,347 30,338,310
Cost of Freedom Fund shares (441,498,703) (254,918,709)
redeemed
NET INCREASE (DECREASE) IN 714,695,634 333,224,917
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 969,530,203 417,045,506
IN NET ASSETS
NET ASSETS
Beginning of period 994,648,140 577,602,634
End of period (including $ 1,964,178,343 $ 994,648,140
undistributed net investment
income of $8,148,012 and
$2,740,430, respectively)
OTHER INFORMATION
Shares
Sold 67,843,604 41,631,295
Issued in reinvestment of 5,511,982 2,209,990
distributions
Redeemed (28,010,025) (18,984,307)
Net increase (decrease) 45,345,561 24,856,978
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED MARCH 31, 2000 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 .32 .27 .21 .08
Net realized and unrealized 3.43 1.55 3.33 .22
gain (loss)
Total from investment 3.75 1.82 3.54 .30
operations
Less Distributions
From net investment income (.35) (.28) (.34) (.09)
In excess of net investment (.10) - - -
income
From net realized gain (.57) (.27) (.13) -
Total distributions (1.02) (.55) (.47) (.09)
Net asset value, end of period $ 17.28 $ 14.55 $ 13.28 $ 10.21
TOTAL RETURN B, C 26.74% 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 $ 1,964,178 $ 994,648 $ 577,603 $ 14,958
(000 omitted)
Ratio of expenses to average .08% F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 2.07% 2.03% 1.76% 1.75% A
income to average net assets
Portfolio turnover rate 28% 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 MARCH 31,
2000
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
DOMESTIC EQUITY FUNDS
Blue Chip Growth Fund 10.5% 10.5%
Disciplined Equity Fund 10.6 10.2
Equity-Income Fund 10.9 10.2
Fidelity Fund 10.4 10.3
Growth & Income Portfolio 10.5 10.7
Growth Company Fund 10.1 10.2
OTC Portfolio 6.7 7.4
69.7 69.5
INTERNATIONAL EQUITY FUNDS
Diversified International Fund 3.4 3.6
Europe Fund 4.7 4.9
Japan Fund 1.4 1.4
Overseas Fund 3.4 3.6
Southeast Asia Fund 0.7 0.6
13.6 14.1
HIGH YIELD FIXED-INCOME FUNDS
Capital & Income Fund 8.6 9.0
INVESTMENT GRADE FIXED-INCOME
FUNDS
Government Income Fund 3.1 2.8
Intermediate Bond Fund 2.0 1.8
Investment Grade Bond Fund 3.0 2.8
8.1 7.4
100.0% 100.0%
</TABLE>
ASSET ALLOCATION
SIX MONTHS AGO
7.4% (IG) Row: 1, Col: 1, Value: 7.4
9.0% (HY) Row: 1, Col: 2, Value: 9.0
14.1% (IE) Row: 1, Col: 3, Value: 14.1
69.5% (DE) Row: 1, Col: 4, Value: 69.5
CURRENT
8.1% (IG) Row: 1, Col: 1, Value: 8.1
8.6% (HY) Row: 1, Col: 2, Value: 8.6
13.6% (IE) Row: 1, Col: 3, Value: 13.6
69.7% (DE) Row: 1, Col: 4, Value: 69.7
EXPECTED
8.8% (IG) Row: 1, Col: 1, Value: 8.800000000000001
8.1% (HY) Row: 1, Col: 2, Value: 8.1
13.1% (IE) Row: 1, Col: 3, Value: 13.1
70.0% (DE) Row: 1, Col: 4, Value: 70.0
Equity
DE = Domestic Equity funds
IE = International Equity funds
Fixed-income
HY = High Yield funds
IG = Investment Grade 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 SEPTEMBER 30, 1999.
THE CURRENT ALLOCATION IS BASED ON THE FUND'S HOLDINGS AS OF MARCH 31,
2000. THE EXPECTED ALLOCATION REPRESENTS THE FUND'S ANTICIPATED TARGET
ASSET ALLOCATION AT SEPTEMBER 30, 2000.
FIDELITY FREEDOM 2030 FUND
INVESTMENTS MARCH 31, 2000
Showing Percentage of Total Value of Investment in Securities
EQUITY FUNDS - 83.3%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 69.7%
Blue Chip Growth Fund 1,997,317 $ 127,049,354
Disciplined Equity Fund 4,039,087 129,048,845
Equity-Income Fund 2,606,226 131,927,136
Fidelity Fund 2,879,419 126,636,829
Growth & Income Portfolio 2,711,138 128,263,960
Growth Company Fund 1,243,499 123,093,985
OTC Portfolio 1,035,243 81,763,511
847,783,620
INTERNATIONAL EQUITY FUNDS -
13.6%
Diversified International Fund 1,612,735 41,431,161
Europe Fund 1,418,792 56,907,751
Japan Fund 653,177 17,119,776
Overseas Fund 862,659 41,640,562
Southeast Asia Fund 448,961 7,915,187
165,014,437
TOTAL EQUITY FUNDS 1,012,798,057
(Cost $850,624,222)
FIXED-INCOME FUNDS - 16.7%
HIGH YIELD FIXED-INCOME FUNDS
- - 8.6%
Capital & Income Fund 11,380,277 105,153,755
INVESTMENT GRADE FIXED-INCOME
FUNDS - 8.1%
Government Income Fund 3,928,084 37,120,390
Intermediate Bond Fund 2,484,722 24,226,038
Investment Grade Bond Fund 5,352,398 37,092,120
98,438,548
TOTAL FIXED-INCOME FUNDS 203,592,303
(Cost $208,233,686)
CASH EQUIVALENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 153,078 $ 153,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 6.11%,
dated 3/31/00 due 4/3/00
(Cost $153,000)
TOTAL INVESTMENT IN $ 1,216,543,360
SECURITIES - 100%
(Cost $1,059,010,908)
OTHER INFORMATION
Purchases and redemptions of the underlying fund shares aggregated
$887,718,769 and $165,619,085, respectively.
INCOME TAX INFORMATION
At March 31, 2000, the aggregate
cost of investment securities for income
tax purposes was $1,063,952,053. Net unrealized appreciation
aggregated $152,591,307, of which $168,297,034 related to appreciated
investment securities and $15,705,727 related to depreciated
investment securities.
The fund hereby designates approximately $16,326,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FIDELITY FREEDOM 2030 FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
ASSETS
Investment in securities, at $ 1,216,543,360
value (including repurchase
agreements of $153,000)
(cost $1,059,010,908) - See
accompanying schedule
Cash 679
Receivable for Freedom Fund 8,537,044
shares sold
Dividends receivable 1,152,087
TOTAL ASSETS 1,226,233,170
LIABILITIES
Payable for underlying fund $ 5,498,080
shares purchased
Payable for Freedom Fund 4,302,741
shares redeemed
Accrued management fee 63,530
TOTAL LIABILITIES 9,864,351
NET ASSETS $ 1,216,368,819
Net Assets consist of:
Paid in capital $ 1,028,152,051
Undistributed net investment 3,131,754
income
Accumulated undistributed net 27,552,562
realized gain (loss) on
investments
Net unrealized appreciation 157,532,452
(depreciation) on investments
NET ASSETS, for 68,176,255 $ 1,216,368,819
shares outstanding
NET ASSET VALUE, offering $17.84
price and redemption price
per share ($1,216,368,819
(divided by) 68,176,255
shares)
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
INVESTMENT INCOME $ 11,249,348
Income distributions from
underlying funds
Interest 4,339
TOTAL INCOME 11,253,687
EXPENSES
Management fee $ 633,670
Non-interested trustees' 1,665
compensation
Total expenses before 635,335
reductions
Expense reductions (221,353) 413,982
NET INVESTMENT INCOME 10,839,705
REALIZED AND UNREALIZED GAIN
(LOSS)
Realized gain (loss) on sale 4,300,693
of underlying fund shares
Capital gain distributions 43,588,231 47,888,924
from underlying funds
Change in net unrealized 124,367,144
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 172,256,068
NET INCREASE (DECREASE) IN $ 183,095,773
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Reimbursement from $ 140,666
investment adviser
Custodian credits 149
Transfer agent credits 80,538
$ 221,353
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31, 2000 YEAR ENDED MARCH 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 10,839,705 $ 4,067,100
income
Net realized gain (loss) 47,888,924 8,470,586
Change in net unrealized 124,367,144 25,407,252
appreciation (depreciation)
NET INCREASE (DECREASE) IN 183,095,773 37,944,938
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (11,857,366) (4,341,407)
From net investment income
In excess of net investment (5,567,916) -
income
From net realized gain (16,766,828) (5,938,957)
TOTAL DISTRIBUTIONS (34,192,110) (10,280,364)
Share transactions Net 1,047,707,036 343,561,901
proceeds from sales of
Freedom Fund shares
Reinvestment of distributions 34,158,038 10,271,400
Cost of Freedom Fund shares (380,056,821) (130,913,052)
redeemed
NET INCREASE (DECREASE) IN 701,808,253 222,920,249
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 850,711,916 250,584,823
IN NET ASSETS
NET ASSETS
Beginning of period 365,656,903 115,072,080
End of period (including $ 1,216,368,819 $ 365,656,903
undistributed net investment
income of $3,131,754 and
$1,017,661, respectively)
OTHER INFORMATION
Shares
Sold 64,352,067 25,582,555
Issued in reinvestment of 2,150,226 756,262
distributions
Redeemed (23,460,029) (9,778,011)
Net increase (decrease) 43,042,264 16,560,806
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED MARCH 31, 2000 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 .27 .25 .22 .08
Net realized and unrealized 3.91 1.60 3.42 .22
gain (loss)
Total from investment 4.18 1.85 3.64 .30
operations
Less Distributions
From net investment income (.28) (.24) (.17) (.09)
In excess of net investment (.13) - (.14) -
income
From net realized gain (.48) (.48) (.12) -
Total distributions (.89) (.72) (.43) (.09)
Net asset value, end of period $ 17.84 $ 14.55 $ 13.42 $ 10.21
TOTAL RETURN B, C 29.64% 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 $ 1,216,369 $ 365,657 $ 115,072 $ 5,725
(000 omitted)
Ratio of expenses to average .08% F .08% F .08% F .08% A, F
net assets
Ratio of expenses to average .07% G .07% G .08% .08% A
net assets after expense
reductions
Ratio of net investment 1.71% 1.87% 1.78% 1.71% A
income to average net assets
Portfolio turnover rate 26% 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 March 31, 2000
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 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 and
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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, Federal Agency,
or other obligations found to be satisfactory by FMR 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. The management fee paid to Strategic Advisers by each fund is
reduced by an amount equal to the fees and expenses paid by each fund
to the non-interested Trustees.
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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
OTHER TRANSACTIONS - CONTINUED
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 2 34
Freedom 2000 1 34
Freedom 2010 1 31
Freedom 2020 1 35
Freedom 2030 1 21
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Aberdeen Street Trust and the Shareholders
of Fidelity Freedom Income Fund, Fidelity Freedom 2000 Fund, Fidelity
Freedom 2010 Fund, Fidelity Freedom 2020 Fund, and Fidelity Freedom
2030 Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Freedom Income Fund, Fidelity Freedom 2000 Fund, Fidelity
Freedom 2010 Fund, Fidelity Freedom 2020 Fund, and Fidelity Freedom
2030 Fund (funds of Fidelity Aberdeen Street Trust) at March 31, 2000,
and the results of their operations, the changes in their net assets
and the financial highlights for the periods indicated, in conformity
with accounting principles generally accepted in the United States.
These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the
Fidelity Aberdeen Street Trust's management; our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States which
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at March 31, 2000 by correspondence with the custodian
and brokers, provide a reasonable basis for the opinion expressed
above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 9, 2000
DISTRIBUTIONS
The Board of Trustees of each fund voted to pay to shareholders of
record at the opening of business on record date, the following
distributions per share derived from capital gains realized from sales
of portfolio securities, and dividends derived from net investment
income:
FUND PAY DATE RECORD DATE DIVIDENDS CAPITAL GAINS
Freedom Income 5/8/00 5/5/00 $.04 $.21
Freedom 2000 5/8/00 5/5/00 $.13 $.47
Freedom 2010 5/8/00 5/5/00 $.09 $.50
Freedom 2020 5/8/00 5/5/00 $.07 $.65
Freedom 2030 5/8/00 5/5/00 $.04 $.44
Each fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends.
A percentage of the dividends distributed during the fiscal year for
the following funds was derived from interest on U.S. Government
securities which is generally exempt from state income tax:
Freedom Income 8.47%
Freedom 2000 7.65%
Freedom 2010 5.15%
A percentage of the dividends distributed during the fiscal year for
the following funds qualifies for the dividends-received deduction for
corporate shareholders:
Freedom Income 4%
Freedom 2000 6%
Freedom 2010 7%
Freedom 2020 16%
Freedom 2030 18%
The funds will notify shareholders in January 2001 of amounts for use
in preparing 2000 income tax returns.
PROXY VOTING RESULTS
A special meeting of the funds' shareholders was held on March 15,
2000, and re-convened on April 19, 2000. The results of votes taken
among shareholders on proposals before them are reported below. Each
vote reported represents a single share held on the record date for
the meeting.
PROPOSAL 1
To elect as Trustees the following twelve nominees.*
# OF % OF
SHARES VOTED SHARES VOTED
RALPH F. COX
Affirmative 173,525,231.355 95.807
Withheld 7,593,952.405 4.193
TOTAL 181,119,183.760 100.000
PHYLLIS BURKE DAVIS
Affirmative 173,491,605.915 95.789
Withheld 7,627,577.845 4.211
TOTAL 181,119,183.760 100.000
ROBERT M. GATES
Affirmative 173,450,618.640 95.766
Withheld 7,668,565.120 4.234
TOTAL 181,119,183.760 100.000
EDWARD C. JOHNSON 3D
Affirmative 173,576,029.722 95.835
Withheld 7,543,154.038 4.165
TOTAL 181,119,183.760 100.000
DONALD J. KIRK
Affirmative 173,597,010.140 95.847
Withheld 7,522,173.620 4.153
TOTAL 181,119,183.760 100.000
NED C. LAUTENBACH
Affirmative 173,737,849.973 95.925
Withheld 7,381,333.787 4.075
TOTAL 181,119,183.760 100.000
# OF % OF
SHARES VOTED SHARES VOTED
PETER S. LYNCH
Affirmative 173,775,086.756 95.945
Withheld 7,344,097.004 4.055
TOTAL 181,119,183.760 100.000
WILLIAM O. MCCOY
Affirmative 173,587,154.225 95.841
Withheld 7,532,029.535 4.159
TOTAL 181,119,183.760 100.000
GERALD C. MCDONOUGH
Affirmative 173,377,612.617 95.726
Withheld 7,741,571.143 4.274
TOTAL 181,119,183.760 100.000
MARVIN L. MANN
Affirmative 173,628,859.332 95.864
Withheld 7,490,324.428 4.136
TOTAL 181,119,183.760 100.000
ROBERT C. POZEN
Affirmative 173,795,717.182 95.957
Withheld 7,323,466.578 4.043
TOTAL 181,119,183.760 100.000
THOMAS R. WILLIAMS
Affirmative 173,377,020.423 95.725
Withheld 7,742,163.337 4.275
TOTAL 181,119,183.760 100.000
PROPOSAL 2
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of Fidelity Freedom Income Fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 12,431,379.235 93.724
Against 213,654.387 1.611
Abstain 618,717.218 4.665
TOTAL 13,263,750.840 100.000
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of Fidelity Freedom 2000 Fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 29,048,026.702 94.261
Against 370,169.478 1.201
Abstain 1,398,542.018 4.538
TOTAL 30,816,738.198 100.000
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of Fidelity Freedom 2010 Fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 57,234,760.309 94.524
Against 955,089.454 1.577
Abstain 2,360,702.654 3.899
TOTAL 60,550,552.417 100.000
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of Fidelity Freedom 2020 Fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 47,449,184.687 92.716
Against 995,626.271 1.945
Abstain 2,732,317.277 5.339
TOTAL 51,177,128.235 100.000
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of Fidelity Freedom 2030 Fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 22,101,073.654 87.318
Against 545,322.907 2.154
Abstain 2,664,617.509 10.528
TOTAL 25,311,014.070 100.000
PROPOSAL 3
To authorize the Trustees to adopt an amended and restated Trust
Instrument.*
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 160,612,386.461 88.680
Against 5,773,651.172 3.188
Abstain 14,728,593.127 8.132
TOTAL 181,114,630.760 100.000
Broker Non-Votes 4,553.000
* DENOTES TRUST-WIDE PROPOSALS AND VOTING RESULTS.
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 1-800-544-0240 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
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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
8 Montgomery 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
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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
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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
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OREGON
16850 SW 72 Avenue
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PENNSYLVANIA
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439 Fifth Avenue
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TENNESSEE
6150 Poplar Road
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TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
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400 East Las Colinas Blvd.
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14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
1861 International 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
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75039-5587
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75039-5587
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
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
Robert A. Dwight, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Maria F. Dwyer, Deputy Treasurer
John H. Costello, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Michael Cook
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-ANN-0500 100859
1.702316.102
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
and Account Assistance 1-800-544-6666
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for the deaf and hearing impaired
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AUTOMATED LINE FOR QUICKEST SERVICE
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www.fidelity.com
