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Supplement to the Fidelity Freedom Funds®'
September 4, 2000 Prospectus
Fidelity Mid-Cap Stock Fund has been added as an underlying Fidelity fund in which each Freedom Fund may invest.
The following information replaces similar information found under the heading "Annual Fund Operating Expenses" in the "Fee Table" section beginning on page 16.
The combined total expense ratios of each Freedom Fund (calculated as a percentage of average net assets) are as follows:
|
|
Combined total expense ratio after |
Combined total expense ratio before expense reimbursements and expense reductions for each Freedom Fund and the underlying Fidelity funds |
|
Freedom Income |
0.63% |
0.68% |
|
Freedom 2000 |
0.66% |
0.71% |
|
Freedom 2010 |
0.74% |
0.79% |
|
Freedom 2020 |
0.78% |
0.83% |
|
Freedom 2030 |
0.79% |
0.85% |
|
Freedom 2040 |
0.82% |
0.86% |
Freedom Income's, Freedom 2000's, Freedom 2010's, Freedom 2020's, and Freedom 2030's combined total expense ratios are based on their total operating expense ratio plus a weighted average of the total operating expense ratios of the underlying Fidelity funds in which they will be invested (for each underlying Fidelity fund's most recently reported fiscal-year) as of March 31, 2001. Freedom 2040's estimated combined total expense ratio is based on its estimated total operating expense ratio plus a weighted average of the total operating expense ratios of the underlying Fidelity funds in which it will be invested (for each underlying Fidelity fund's most recently reported fiscal-year) as of March 31, 2001. The combined total expense ratios for each Freedom Fund may be higher or lower depending on the allocation of a fund's assets among the underlying Fidelity funds and the actual expenses of the underlying Fidelity funds.
FF-00-06 December 1, 2000
1.708110.116
This example helps you compare the cost of investing in the Freedom Funds with the cost of investing in other mutual funds.
Let's say, hypothetically, that each Freedom Fund's annual return is 5%, that your shareholder fees are exactly as described in the fee table, and that each Freedom Fund's combined total expense ratio includes each Freedom Fund's annual operating expenses exactly as described in the fee table and the weighted average of the total operating expenses of each of the underlying Fidelity funds, before expense reductions. This example illustrates the effect of fees and expenses, but is not meant to suggest actual or expected fees and expenses or returns, all of which may vary. For every $10,000 you invested, here's how much you would pay in total expenses if you close your account at the end of each time period indicated:
|
Freedom Income |
1 year |
$ 70 |
|
|
3 years |
$ 218 |
|
|
5 years |
$ 380 |
|
|
10 years |
$ 849 |
|
Freedom 2000 |
1 year |
$ 73 |
|
|
3 years |
$ 228 |
|
|
5 years |
$ 398 |
|
|
10 years |
$ 888 |
|
Freedom 2010 |
1 year |
$ 81 |
|
|
3 years |
$ 252 |
|
|
5 years |
$ 438 |
|
|
10 years |
$ 977 |
|
Freedom 2020 |
1 year |
$ 85 |
|
|
3 years |
$ 266 |
|
|
5 years |
$ 462 |
|
|
10 years |
$ 1,029 |
|
Freedom 2030 |
1 year |
$ 86 |
|
|
3 years |
$ 270 |
|
|
5 years |
$ 469 |
|
|
10 years |
$ 1,043 |
|
Freedom 2040 |
1 year |
$ 88 |
|
|
3 years |
$ 274 |
The following information supplements similar information found under the heading "Principal Investment Strategies" in the "Investment Details" section beginning on page 20.
The table below lists the underlying Fidelity funds in which each Freedom Fund currently may invest and each Freedom Fund's approximate target asset allocation to each underlying Fidelity fund as of March 31, 2001. Strategic Advisers may change these percentages over time.
|
Fund Categories |
Freedom |
|
Freedom |
|
Freedom |
|
Freedom |
|
Freedom |
|
Freedom |
|
EQUITY FUNDS Domestic |
|
|
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|
Fidelity Blue Chip Growth Fund |
3% |
|
4% |
|
6% |
|
9% |
|
10% |
|
11% |
|
Fidelity Disciplined Equity Fund |
3% |
|
4% |
|
6% |
|
9% |
|
10% |
|
11% |
|
Fidelity Equity-Income Fund |
3% |
|
4% |
|
6% |
|
9% |
|
11% |
|
11% |
|
Fidelity Fund |
3% |
|
4% |
|
6% |
|
9% |
|
10% |
|
11% |
|
Fidelity Growth & Income Portfolio |
3% |
|
4% |
|
6% |
|
9% |
|
10% |
|
11% |
|
Fidelity Growth Company Fund |
3% |
|
4% |
|
6% |
|
9% |
|
10% |
|
11% |
|
Fidelity Mid-Cap Stock Fund |
1% |
|
1% |
|
2% |
|
3% |
|
4% |
|
4% |
|
Fidelity OTC Portfolio |
2% |
|
3% |
|
4% |
|
6% |
|
7% |
|
8% |
|
International |
|
|
|
|
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Fidelity Diversified International Fund |
0% |
|
<1% |
|
1% |
|
3% |
|
3% |
|
4% |
|
Fidelity Europe Fund |
0% |
|
1% |
|
2% |
|
4% |
|
5% |
|
5% |
|
Fidelity Japan Fund |
0% |
|
<1% |
|
1% |
|
1% |
|
1% |
|
2% |
|
Fidelity Overseas Fund |
0% |
|
<1% |
|
1% |
|
3% |
|
3% |
|
4% |
|
Fidelity Southeast Asia Fund |
0% |
|
<1% |
|
<1% |
|
1% |
|
1% |
|
1% |
|
FIXED-INCOME FUNDS Investment-Grade Fixed-Income Funds |
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|
Fidelity Government Income Fund |
15% |
|
15% |
|
14% |
|
8% |
|
3% |
|
0% |
|
Fidelity Intermediate Bond Fund |
10% |
|
10% |
|
9% |
|
5% |
|
2% |
|
0% |
|
Fidelity Investment Grade Bond Fund |
15% |
|
15% |
|
14% |
|
8% |
|
3% |
|
0% |
|
High Yield |
|
|
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|
Fidelity Capital & Income Fund |
0% |
|
2% |
|
6% |
|
8% |
|
8% |
|
10% |
|
Money Market Fund |
|
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Fidelity Money Market Trust: |
40% |
|
28% |
|
8% |
|
0% |
|
0% |
|
0% |
|
Note: The allocation percentages may not add to 100% due to rounding. |
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The following information supplements similar information found under the heading "Domestic Equity Funds" in the "Description of Underlying Fidelity Funds" section beginning on page 22.
Mid-Cap Stock Fund seeks long-term growth of capital.
FMR normally invests at least 65% of the fund's total assets in common stocks of companies with medium market capitalizations. Medium market capitalization companies are those whose market capitalization is similar to the market capitalization of companies in the S&P MidCap 400 at the time of the fund's investment. Companies whose capitalization no longer meets this definition after purchase continue to be considered to have a medium market capitalization for purposes of the 65% policy. As of April 30, 2000, the S&P MidCap 400 included companies with capitalizations between $189 million and $23.7 billion. The size of companies in the S&P MidCap 400 changes with market conditions and the composition of the index. FMR may also invest the fund's assets in companies with smaller or larger market capitalizations.
FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers.
FMR is not constrained by any particular investment style. At any given time, FMR may tend to buy "growth" stocks or "value" stocks, or a combination of both types. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management.
FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective.
SUPPLEMENT TO THE
FIDELITY FREEDOM FUNDS®
September 4, 2000
STATEMENT OF ADDITIONAL INFORMATION
Fidelity Mid-Cap Stock Fund has been added as an underlying Fidelity fund in which each Freedom Fund may invest.
The following information replaces the first paragraph following the heading "Securities Lending" on pages 5 and 15.
Securities Lending. A fund may lend securities to parties such as broker-dealers or other institutions, including Fidelity Brokerage Services LLC (FBS LLC). FBS LLC is a member of the New York Stock Exchange (NYSE) and an indirect subsidiary of FMR Corp.
The following information replaces the first paragraph following the heading "Preferred Stock" on page 14.
Preferred Stock represents an equity or ownership interest in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred and common stock.
The following information replaces the first paragraph following the heading "Temporary Defensive Policies" on page 16.
Temporary Defensive Policies. Each of Fidelity Blue Chip Growth Fund, Fidelity Disciplined Equity Fund, Fidelity Equity-Income Fund, Fidelity Fund, Fidelity Growth & Income Portfolio, Fidelity Growth Company Fund, Fidelity Mid-Cap Stock Fund, Fidelity OTC Portfolio, Fidelity Diversified International Fund, Fidelity Europe Fund, Fidelity Japan Fund, Fidelity Overseas Fund, and Fidelity Southeast Asia Fund reserves the right to invest without limitation in preferred stocks and investment-grade debt instruments for temporary, defensive purposes.
The following information supplements similar information found under the heading "Historical Fund Results - Underlying Fidelity Funds" in the "Performance" section beginning on page 26.
|
|
|
Average Annual Total Returns |
Cumulative Total Returns |
|||||
|
Underlying Fidelity Fund |
Thirty-/Seven- |
One |
Five |
Ten |
One |
Five |
Ten |
|
|
Fidelity Mid-Cap Stock Fund |
N/A |
71.51% |
29.56% |
27.61% |
71.51% |
265.00% |
332.91% |
|
* Fidelity Mid-Cap Stock Fund commenced operations on March 29, 1994.
The performance data relating to the underlying Fidelity fund set forth above is not indicative of future performance of either the underlying Fidelity fund or the Freedom Funds.
FFB-00-05 December 1, 2000
1.476278.111
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