Fidelity Managed Retirement Funds

PORTFOLIO MANAGER Q&A | AS OF JANUARY 31, 2021

Fidelity? Managed Retirement Funds

Key Takeaways

? For the semiannual reporting period ending January 31, 2021, returns

for the Retail Class shares of Fidelity Managed Retirement Funds ranged from 4.54% to 11.40%, with performance trending higher for Funds with a longer retirement horizon.

? During the past six months, Funds for investors with a greater number

of years to invest in retirement ? those with more exposure to equities ? fared a bit better than Funds that invest in a greater percentage of fixed income and short-term debt, and less equity exposure.

? Each Fund outpaced its Composite index this period, due to favorable

security selection among underlying investment funds and active asset allocation decisions.

? Underlying investment performance among U.S. equity, investment-

grade bond and emerging-market equity funds contributed most to the Funds' relative results this period.

? Overweighting non-U.S. equities and underweighting investment-

grade bonds boosted the Funds' performance versus Composites, as did a non-Composite allocation to commodities.

? Conversely, underweighting U.S. equities detracted from the Funds'

relative results, along with investment performance among underlying non-U.S. developed-market equity funds.

? Among underlying funds, exposure to Fidelity? Series Blue Chip

Growth Fund added the most relative value, whereas an investment in Fidelity? Series Overseas Fund detracted more than any other fund.

? Looking ahead to the remainder of 2021, Co-Portfolio Managers

Andrew Dierdorf and Brett Sumsion believe there are opportunities to position the Funds in areas trading at a significant discount to their view of fair value, and they remain focused on the long-term objective of the Funds: providing income throughout retirement.

FUND NAMES

Fidelity Managed Retirement Income Fund Fidelity Managed Retirement 2010 Fund Fidelity Managed Retirement 2015 Fund Fidelity Managed Retirement 2020 Fund Fidelity Managed Retirement 2025 Fund Fidelity Managed Retirement 2030 Fund

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

PORTFOLIO MANAGER Q&A | AS OF JANUARY 31, 2021

Market Recap

The six months ending January 31, 2021, was a volatile but productive period for global financial markets. Investors digested a number of factors, including improved prospects for the reopening of local, national and regional economies amid aggressive monetary support from central banks, fiscal support from federal governments, the approval of COVID-19 vaccines and widespread distribution in various countries.

Non-U.S. equities gained 19.33%, according to the MSCI ACWI (All Country World Index) ex USA Index, reflecting investors' renewed appetite for stocks amid a more favorable economic outlook, particularly for economically sensitive (i.e., cyclical) stocks in industries hardest hit by the pandemic. From a regional perspective, emerging markets and Japan (+24% each) led the way, followed by Asia Pacific ex Japan (+20%), the U.K. and Europe ex U.K. (+15% each), and Canada (+13%). By sector, information technology (+32%) stood out, while consumer discretionary (+30%), industrials (+24%), materials (+22%) and financials (+20%) also outpaced the index. Conversely, consumer staples (+5%), health care (+6%), utilities (+9%), real estate (+12%) and energy (+14%) lagged.

The Dow Jones U.S. Total Stock Market Index gained 18.10% the past six months. Consumer discretionary (+26%) was the top sector, followed by industrials and financials (+23% each). Utilities (+4%) fared the worst. Consumer staples (+6%) and real estate (+7%) also lagged. Small-cap stocks outpaced large-caps. Value stocks topped growth stocks, reversing a multiyear trend. Elsewhere, commodities gained 16.69%, as measured by the Bloomberg Commodity Index Total Return.

Turning to fixed income, U.S. taxable investment-grade bonds (the Bloomberg Barclays U.S. Aggregate Bond Index) had a return of -0.91%. Long-term U.S. Treasuries (-10.19%) lagged the broader index amid concerns about a potential uptick in inflation. Government bonds (-2.62%) also underperformed. For their part, agency securities (-0.20%), corporate bonds (0.00%) and mortgage-backed securities (+0.25%) had roughly flat performance. Other categories, including emerging-markets debt (+2.79%), high-yield bonds (+4.96%) and floating-rate bank loans (+7.72%) each gained. Treasury Inflation-Protected Securities (TIPS) advanced 3.31%, according to the Bloomberg Barclays U.S. 1-10 Year TIPS Index.

BROAD ASSET CLASS RETURNS (%) PERIOD ENDING JANUARY 31, 2021

2011

Best

29.9

8.9

P

8.7

e

8.5

r f

7.8

o

4.4

r

m

1.5

a n

1.1

c

0.1

e -12.1

Worst

-13.3 -18.2

--

Dispersion of Returns*

48.1

2012 18.6 18.5 16.6 16.4 15.5 12.7 9.8 5.0 4.2 3.6 0.1 -1.1

--

19.7

2013 33.5 21.2 7.4 5.4 0.1 -1.8 -2.0 -2.3 -5.6 -6.6 -9.5 -12.7

--

Calendar-Year Returns 2014 2015 2016 2017

25.1 16.9 12.5 7.0 6.0 5.5 2.5 1.8 0.9 0.1 -1.8 -4.2 -17.0

4.1 1.2 0.5 0.4 0.2 0.1 0.1 -0.5 -1.2 -2.9 -4.6 -14.6 -24.7

17.5 12.6 11.8 11.6 10.4 10.2 5.3 4.9 4.0 3.0 2.6 1.3 0.3

37.8 24.5 21.2 9.3 8.5 8.3 7.5 4.7 4.3 3.5 1.9 1.7 0.9

2018 1.9 0.7 0.6 0.0 -0.3 -1.8 -2.3 -4.1 -4.6 -5.3 -11.2 -13.9 -14.2

46.1 42.1 28.8 17.1 36.9 16.1

2019 30.9 22.8 18.9 18.4 14.8 14.4 14.4 10.3 8.7 8.7 7.7 6.9 2.3

28.6

2020 20.8 18.7 17.7 8.4 7.8 7.5 6.4 6.1 5.9 3.5 3.4 0.7 -3.1

23.9

Average Annual

Cumulative

5 Year 16.6 15.4 9.2

3 Year 12.3 9.7 6.3

1 Year 28.3 20.5 8.8

6 Mos 24.2 18.1 17.2

3 Mos

U.S. Equities

21.0

Non-U.S. Developed-

19.3 Markets Equities

16.9

Emerging-Markets Equities

8.8

5.8

7.7

16.7 11.5

Commodities

6.6

5.8

7.3

7.7

6.4

High-Yield Debt

6.0

5.5

6.5

6.8

6.3

Floating-Rate Debt

6.0

5.4

6.2

6.4

5.1

International Debt

5.8

4.8

4.7

3.3

4.3

Emerging-Markets Debt

5.2

4.6

4.2

2.8

2.7

Real Estate Debt

4.0

4.3

4.2

1.6

1.4

Investment-Grade Debt

4.0

2.5

2.8

0.1

0.4

Inflation-Protected Debt

1.9

1.6

1.3

-0.9

0.0

Short-Term Debt

1.2

-2.3

0.6

-10.2

-3.6

Long-Term U.S. Treasury Debt

15.4 14.7 27.8 34.4 24.6

Periods greater than one year are annualized. Source: FMR *Difference between best- and worst-performing asset classes over the given time period You cannot invest directly in an index. Past performance is no guarantee of future results. U.S. Equities - Dow Jones U.S. Total Stock Market Index, Non-U.S. Developed-Markets Equities - MSCI World ex USA Net Mass, Emerging-Markets Equities MSCI Emerging Markets Index, Commodities - Bloomberg Commodity Index Total Return, High-Yield Debt - ICE BofA U.S. High Yield Constrained Index, Floating-Rate Debt - S&P/LSTA Leveraged Performing Loan Index, International Debt - Bloomberg Barclays Global Aggregate Credit Ex U.S. Index Hedged (USD), Emerging-Markets Debt - J.P. Morgan Emerging Markets Bond Index Global, Real Estate Debt - Fidelity Real Estate Income Composite Index, Investment-Grade Debt - Bloomberg Barclays U.S. Aggregate Bond Index, Inflation-Protected Debt - Bloomberg Barclays U.S. 1-10 Year Treasury InflationProtected Securities (TIPS) Index (Series-L), Short-Term Debt - Bloomberg Barclays U.S. 3 Month Treasury Bellwether Index, Long-Term U.S. Treasury Debt Bloomberg Barclays U.S. Long Treasury Index

2 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JANUARY 31, 2021

Q&A

Andrew Dierdorf Co-Manager

Fund Facts

Income 2010 2015 2020 2025 2030

Trading Symbol FIRMX FIRQX FIRSX FIRVX FIXRX FMRAX

Brett Sumsion Co-Manager

Start Date

08/30/2007 08/30/2007 08/30/2007 12/31/2007 12/31/2007 08/16/2019

Size (in millions)

$17.6 $8.2 $8.0 $9.1 $45.0 $17.3

Investment Approach

? Fidelity Managed Retirement FundsSM (the Funds) are intended for investors seeking to use the value of their account as a source of income during retirement. The name of each Fund refers to its "horizon date," the year closest to the one during which an investor turns 70.

? The Funds are actively managed and diversified among a broad group of underlying Fidelity mutual funds according to an asset allocation strategy that gradually becomes more conservative over time. The Funds are not set to automatically liquidate; ultimately, the Funds are expected to merge with Managed Retirement Income Fund.

? The Funds with longer time horizons will generally invest in a greater percentage of equity funds, while the Funds with shorter time horizons will emphasize fixed-income and short-term funds.

? The Funds employ a robust investment process focused on helping investors achieve their objectives during retirement by leveraging the depth and strength of Fidelity's investment research and resources.

An interview with Co-Portfolio Managers Andrew Dierdorf and Brett Sumsion

Q: Andrew, how did the Managed Retirement Funds perform for the six months ending January 31, 2021

A.D. Returns for the Retail Class shares of all Funds were positive, ranging from 4.54% to 11.40%, with performance trending higher for Funds with a longer retirement horizon. Each of the Fidelity Managed Retirement Funds outperformed its Composite index.

Looking back a bit further, returns ranged from 7.96% to 14.27% for the trailing 12 months, and once again each Fund outperformed its Composite index. (For specific Fund results, please refer to the Performance Summaries.)

Q: How would you characterize the market environment the past six months

A.D. We continued to see volatility among the broad set of asset classes in which Managed Retirement Funds invest. For example, equities and investment-grade bonds performed quick differently. In August, equities rallied sharply and investment-grade bonds produced a negative return. Equities then retreated for the next two months amid Congress's inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty and a new wave of COVID-19 cases. Investment-grade bonds experienced a modestly negative return in September and October.

Then, in November, equities surged as the markets digested the outcome of the U.S. elections, encouraging news on the efficacy of COVID-19 vaccines and prospects for additional U.S. government stimulus, as well as a potentially rosier outlook for the global economy. Investment-grade bonds rose in November, though notably lower than stocks.

The momentum for equities continued in December, a period featuring regulatory approvals for two COVID-19 vaccines in the U.S. and in other countries. The Dow Jones U.S. Total Stock Market Index gained 4.49% for the month, then returned -0.32% in January. Meanwhile, investmentgrade bonds were flat in December before returning -0.72% in January, amid growing concerns about inflation. The volatility among these two asset classes the past six months illustrates why having diversified exposure to multiple asset

3 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JANUARY 31, 2021

classes can provide more-stable risk-adjusted returns over time. Each asset class in which the Funds invest has varying exposure to factors such as the pace of economic growth, the direction of interest rates and the rate of corporate earnings growth, all of which tend to influence performance.

Q: Turning to you, Brett, what specific factors helped the Funds outperform their Composite indexes this period

B.S. Favorable security selection among the portfolio managers of the underlying investment funds contributed to the Funds' performance versus Composites. Specifically, investment performance among U.S. equity funds generally added the most relative value, topping the asset class benchmark, the Dow Jones U.S. Total Stock Market Index, by a count of 21.54% to 18.10%.

Within U.S. equities, our exposure to Fidelity? Series Blue Chip Growth Fund contributed more than any other investment. The fund gained 28.97% the past six months, outpacing the 16.24% advance of its benchmark, the Russell 1000? Growth Index.

Strong results within developing markets also helped. Specifically, our investment in Fidelity? Series Emerging Markets Fund also helped, advancing 28.32% and topping the 24.09% gain of its benchmark, the MSCI Emerging Markets Index.

Within investment-grade bonds, Fidelity? Series Investment Grade Bond Fund gained 0.90%, outperforming the -0.91% return of the Bloomberg Barclays U.S. Aggregate Bond Index.

Q: Which specific underlying investments lagged their benchmarks

B.S. An investment in Fidelity? Series Overseas Fund, which primarily invests in non-U.S. developed-market equities, was a notable detractor this period. The fund gained 12.15% the past six months, trailing the 17.62% rise of its benchmark, the MSCI EAFE Index.

Among U.S. equity funds, our position in Fidelity? Series Small Cap Opportunities Fund gained 30.31%, lagging the 40.89% result of the Russell 2000? Index, a benchmark of small-cap stocks.

the Funds' relative performance, as did a non-Composite allocation to commodities, which gained about 17%.

Conversely, underweighting U.S. equities detracted from the Funds' relative results, as this was one of the strongerperforming asset classes. An overweighting in inflationprotected securities and short-term debt securities also held back the Funds' relative performance this period.

Q: Back to you, Andrew. Any final thoughts for shareholders as of January 31

A.D. We're pleased that the Funds outperformed Composites the past six months, as I believe it highlights the power of Fidelity's best-in-class research and portfoliomanagement decisions. Some common themes among portfolio managers included upgrading the quality of their holdings at attractive prices, emphasizing names they believe are likely to endure the recent macroeconomic shock and leveraging Fidelity's investment edge to navigate uncertain corporate earnings.

We continue to focus on delivering compelling long-term outcomes for the Funds, based on the various risk and return profiles for the time horizons tied to each. Managed Retirement Funds are designed to help investors achieve a longer-term objective: supporting income needs in retirement.

As of the end of January, economic conditions have improved, but progress has been uneven. Uncertainty and volatility are likely to remain elevated, thus our diversified approach and rigorous investment process, which are grounded in research data, are as important as ever.

We continue to leverage our vast resources ? especially our technology, our global research expertise across asset classes and our relationships with corporations and other entities ? to closely monitor the pandemic, gain insight into market dynamics as they evolve and choose securities we think have the potential to outperform over time. Thank you for your confidence in us and in Fidelity's investment management expertise. [Editor's note: For more on the Funds' active positioning, please see the next portion of this shareholder update.]

Q: How did active asset allocation decisions influence the Funds' relative performance

B.S. Overall, our decisions were helpful. In particular, overweighting non-U.S. equities, especially emerging-market stocks, added the most value versus Composites, as this was the best-performing asset class the past six months.

An underweighting in investment-grade bonds also boosted

4 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JANUARY 31, 2021

Co-Portfolio Manager Brett Sumsion on the Funds' active allocation positioning:

"As economic conditions improved after deteriorating in early 2020, we brought the Portfolios' overall equity exposure closer to neutral from a slight underweight relative to Composites. As of January 31, emerging-markets (EM) equities and inflation-sensitive assets remain our largest overweight allocations, whereas we are underweight U.S. equities and investment-grade bonds, including long-term U.S. Treasuries.

"Our view is that the path of COVID-19 and the historic global monetary and fiscal responses are likely to have a long-lasting impact on the global economy. In the intermediate term, we believe there are opportunities to position the Portfolios in areas trading at a significant discount to our view of fair value. For example, our view is that valuations for U.S. equities are elevated as of January 31. EM equities, by comparison, are priced at a discount and have favorable growth prospects. We view this category as undervalued. We believe that investors have extrapolated a decade of weak fundamentals in emerging markets (e.g., lower profitability and overcapacity) into the future, creating a gap between current prices and our view of fair value. EM countries, particularly China, have managed the pandemic more effectively than the rest of the world, putting them on relatively strong economic footing that we believe is underestimated by investors.

"The potential for a weaker U.S. dollar (USD) following massive fiscal and monetary stimulus, pent-up demand for goods produced by EM countries, and China's stabilization and recovery provide a potentially favorable backdrop for the asset class. We view the USD as likely to weaken from its current level, which we expect would boost non-U.S. assets. We believe that various market and economic forces apply pressure that helps to maintain competitive balance across global currencies and capital markets, and that these forces have not been fully recognized by investors, as represented by valuations for the USD as of the end of January. Elsewhere, we believe inflation-sensitive assets, including Treasury Inflation-Protected Securities (TIPS) and commodities, are attractive, and that longer-term inflationary pressure may be greater than the market expects."

5 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

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