Fidelity Freedom Index Funds

[Pages:31]PORTFOLIO MANAGER Q&A | AS OF MARCH 31, 2022

Fidelity Freedom? Index Funds

Key Takeaways

? For the fiscal year ending March 31, 2022, the Investor Class shares of

each Fidelity Freedom? Index Fund generated a return that ranged from -0.50% for Fidelity Freedom? Index Income Fund to 4.90% for Fidelity Freedom? Index 2040 Fund. Each Fund performed roughly in line with its Composite index.

? U.S. equities was the best-performing asset class the past 12 months,

a period that was marked by improved economic growth, coordinated monetary and fiscal response from the U.S. government, widespread COVID-19 vaccination, soaring inflation and Russia's late-February invasion of Ukraine.

? Among fixed-income assets, intermediate-term U.S. inflation-

protected securities gained 3.78%, whereas long-term U.S. Treasury bonds (-1.42%) and U.S. investment-grade bonds (-4.15%) produced weaker results.

? According to Co-Portfolio Managers Andrew Dierdorf, Brett Sumsion

and Finola McGuire Foley, the varied returns among the asset classes in which the Funds invested during the past 12 months highlight the importance of diversification, which is at the core of the investment philosophy behind Fidelity Freedom? Index Funds.

? As of March 31, the co-portfolio managers expect to focus their

strategic research on the long-term drivers of return, and on keeping the Funds on track toward their goal: helping investors maintain their standard of living in retirement by balancing risk and reward throughout their lifetime.

FUND NAMES

Fidelity Freedom Index Income Fund

Fidelity Freedom Index 2005 Fund

Fidelity Freedom Index 2010 Fund

Fidelity Freedom Index 2015 Fund

Fidelity Freedom Index 2020 Fund

Fidelity Freedom Index 2025 Fund

Fidelity Freedom Index 2030 Fund

Fidelity Freedom Index 2035 Fund

Fidelity Freedom Index 2040 Fund

Fidelity Freedom Index 2045 Fund

Fidelity Freedom Index 2050 Fund

Fidelity Freedom Index 2055 Fund

Fidelity Freedom Index 2060 Fund

Fidelity Freedom Index 2065 Fund

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

PORTFOLIO MANAGER Q&A | AS OF MARCH 31, 2022

Market Recap

For the 12 months ending March 31, 2022, global financial markets were influenced by the reopening of businesses, an improved outlook for global economic growth, and fiscal and monetary stimulus. Strong corporate earnings growth amid ongoing midcycle economic expansion in several countries provided support for risk assets. However, as the calendar turned, investors grappled with soaring inflation, increasing bond yields, supply constraint and disruption, and Russia's invasion of Ukraine, which led to surging commodity prices.

International equities returned -1.33% the past 12 months, according to the MSCI ACWI (All Country World Index) ex USA Index. By region, emerging markets (-11%) lagged most, followed by Japan (-6%). Conversely, Canada (+21%) topped the broader index by a wide margin. The U.K. (+15%), Asia Pacific ex Japan (+3%) and Europe ex U.K. (+1%) also outperformed. By sector, consumer discretionary (-21%) and communication services (-16%) fared worst. In contrast, energy (+24%) notably outperformed due to rising prices for oil and natural gas. Materials and financials each gained about 10%.

U.S. stocks advanced 11.67% for the 12 months, as measured by the Dow Jones U.S. Total Stock Market Index. Among sectors, energy (+64%) led the way. Real estate (+20%), utilities (+19%) and information technology (+16%) also showed strength. In contrast, communication services (-3%) notably lagged. Smallcap stocks widely trailed larger-caps, while value outpaced growth, except among large-caps. Commodities rose 49.25%, per the Bloomberg Commodity Index Total Return.

U.S. taxable investment-grade bonds returned -4.15%, according to the Bloomberg U.S. Aggregate Bond Index, amid rising market interest rates and inflation. In December, the U.S. Federal Reserve said it was time to retire the term "transitory" in describing U.S. inflation and raised prospects for three quarterpoint rate hikes in 2022. Corporate bonds (-4.16%) trailed U.S. Treasuries (-3.67%), as did commercial mortgage-backed securities (-4.46%) and agencies (-3.94%). Outside the index, Treasury Inflation-Protected Securities (+4.29%) and leveraged loans (+3.38%) gained, but other non-core groups declined, such as emerging-markets debt (-6.18%) and U.S. corporate high-yield bonds (-0.30%).

BROAD ASSET CLASS RETURNS (%) PERIOD ENDING MARCH 31, 2022

2012

Best

18.6

18.5

P

16.6

e

16.4

r f

12.9

o

12.7

r

m

9.8

a n

5.0

c

4.2

e 3.6

0.1

Worst

-1.1

--

Dispersion of Returns*

19.7

2013 33.5 21.2 14.7 5.4 0.1 -1.8 -2.0 -2.3 -5.6 -6.6 -9.5 -12.7

--

46.1

2014 25.1 16.9 12.5 12.1 7.0 6.0 5.5 1.8 0.9 0.1 -1.8 -4.2 -17.0

Calendar-Year Returns 2015 2016 2017 2018

13.6 4.1 1.2 0.5 0.4 0.2 0.1 0.1 -0.5 -1.2 -2.9 -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

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

42.1 38.3 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

2021 27.1 25.7 12.9 9.9 5.7 5.4 5.3 0.0 -1.0 -1.5 -1.5 -2.2 -4.6

31.8

Average Annual

Cumulative

5 Year 15.3 9.0 7.4 6.4 4.9 4.5 4.2 3.9 3.9 2.5 2.1 1.7 1.1

3 Year 18.1 16.1 8.8 5.5 5.3 4.7 4.4 4.4 3.3 1.7 1.5 0.8 0.5

1 Year 49.3 11.7 3.8 3.4 3.3 1.5 0.1 -0.3 -1.4 -4.2 -5.4 -6.2 -11.1

6 Mos 23.6 3.2 0.7 0.0 -0.2 -1.7 -3.6 -3.9 -5.9 -6.6 -7.8 -8.1 -9.2

3 Mos

U.S. Equities

25.5

Non-U.S. Developed-

0.0 Markets Equities

-0.1

Emerging-Markets Equities

-1.7

Commodities

-4.5

High-Yield Debt

-4.7

Floating-Rate Debt

-5.4

International Debt

-5.9

Emerging-Markets Debt

-6.2 -6.5 -6.9 -9.3 -10.6

Real Estate Debt Investment-Grade Debt Inflation-Protected Debt Short-Term Debt Long-Term U.S. Treasury Debt

14.2 17.6 60.3 32.8 36.1

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 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, InvestmentGrade Debt - Bloomberg U.S. Aggregate Bond Index, Inflation-Protected Debt - Bloomberg U.S. 1-10 Year Treasury Inflation-Protected Securities (TIPS) Index (Series-L), Short-Term Debt - Bloomberg U.S. 3 Month Treasury Bellwether Index, Long-Term U.S. Treasury Debt - Bloomberg 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 MARCH 31, 2022

Q&A

Andrew Dierdorf Co-Manager

Brett Sumsion Co-Manager

Finola McGuire Foley Co-Manager

Fund Facts

Freedom Index Fund Income 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065

Trading Symbol FIKFX

FJIFX FKIFX FLIFX FPIFX FQIFX FXIFX FIHFX FBIFX FIOFX FIPFX FDEWX FDKLX FFIJX

Start Date

10/02/2009 10/02/2009 10/02/2009 10/02/2009 10/02/2009 10/02/2009 10/02/2009 10/02/2009 10/02/2009 10/02/2009 10/02/2009 06/01/2011 08/05/2014 06/28/2019

Size (in millions) $1,313.7 $255.8 $837.0 $2,463.6 $8,453.5 $13,611.3 $16,860.0 $14,756.1 $14,481.6 $11,619.3 $10,409.4 $6,399.9 $2,842.0 $477.2

Investment Approach

? Fidelity Freedom? Index Funds (the Funds) are designed so that the target date referenced in the Fund name is the approximate year when we expect investors to retire.

? Except for Fidelity Freedom? Index Income Fund, each of the Funds seeks high total return until reaching its respective target retirement date; thereafter, each Fund's objective will be to seek high current income and, as a secondary objective, capital appreciation.

? Except for Fidelity Freedom? Index Income Fund, each Fund's asset allocation strategy becomes increasingly diversified as it approaches its target date ? and beyond. Ultimately, the Funds are expected to merge with Fidelity Freedom Index Income Fund.

? The Funds employ a disciplined and time-tested investment process focused on helping investors achieve successful retirement outcomes by leveraging the depth and strength of Fidelity's investment research and resources.

An interview with Co-Portfolio Managers Andrew Dierdorf, Brett Sumsion and Finola McGuire Foley

Q: Andrew, how did Fidelity Freedom? Index Funds perform for the fiscal year ending March 31, 2022

A.D. The past 12 months, the Investor Class shares of each Fidelity Freedom? Index Fund posted a return that ranged from -0.50% for Fidelity Freedom? Index Income Fund to 4.90% for Fidelity Freedom? Index 2040 Fund. Each Fund performed roughly in line with its Composite index.

(For specific results, please refer to the Fiscal Performance Summaries.)

Q: What was noteworthy about the market environment the past 12 months

A.D. A few things stand out to me. First, we saw inflationsensitive assets, such as Treasury Inflation-Protected Securities (TIPS), perform quite well amid soaring inflation in the second half of the period. In the fourth quarter of 2021, it became clear that inflation in the U.S. had reached a level not seen in 40 years, raising expectations for the U.S. Federal Reserve to increase policy rates. Rising inflation and expectations of tighter monetary policy caused the yield curve to flatten, meaning shorter-term rates increased and longer-term rates decreased. These developments led to negative returns for U.S. investment-grade bonds the past 12 months, but positive returns for TIPS, which advanced 3.78% according to the Bloomberg 1-10-Year Treasury InflationProtected (TIPS) Index.

Elsewhere, performance among equities varied. U.S. equities gained 11.67%, as measured by the Dow Jones U.S. Total Stock Market Index. By comparison, non-U.S. equities returned -1.33%, according to the MSCI ACWI (All Country World Index) ex USA Index.

As the varied returns of these asset classes show, investing in multiple asset classes can provide portfolio resiliency when a particular asset class underperforms, and in distinct market environments that may emerge throughout an investor's lifetime. We believe diversification is a powerful tool in managing uncertainty in the financial markets, and it's a key pillar of the research that goes into Fidelity's glide path and the strategic asset allocation of the Funds.

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 MARCH 31, 2022

Q: What is the glide path

A.D. It's the time-varying mix of assets that each Fund invests in, and it changes over an investor's investment horizon based on our long-term research on participants, diversification and capital markets.

At the youngest age ? and for a retirement investor with the longest investment horizon - the glide path begins with a portfolio focused on accumulation of capital by holding more assets with higher return potential.

As investors get closer to retirement, the allocation transitions to emphasize growing and protecting savings for a retirement that could span decades. Further, as an investor advances into retirement, the portfolios become more conservative and more diversified to increase resiliency to different market environments.

The past several years, our glide path and strategic asset allocation have emphasized increased diversification by reducing equity exposure and including additional asset classes. In recent years, we've increased the diversification of our equity allocation and added long-term U.S. Treasury bonds, Treasury Inflation-Protected Securities (TIPS) and international (non-U.S.) bonds to the strategic asset mix.

Q: Would you elaborate on the most recent update to the glide path

A.D. For the next few months, we plan to continue to increase portfolio diversification through incremental updates to the funds' fixed-income exposure, something that we began doing in 2021.

As an example, investors nearing and in retirement have seen an increase in exposure to TIPS. Historically, TIPS have provided stronger returns than other asset classes during periods of inflationary stress.

We also increased exposure to long-term U.S. Treasury bonds for most investors because historically they have provided stronger returns relative to other asset classes in periods of deflationary stress. During this type of environment, equities may be volatile and decline in value. Long-term Treasuries typically are highly valued for their cash-flow certainty.

Also, we added international bond exposure to all Funds because we believe this asset class may help improve portfolio diversification, in our view, by capturing distinct inflation and growth dynamics relative to U.S. bonds. The Funds' exposure consists of non-U.S. developed sovereign bonds, which is hedged to the U.S. dollar to help reduce volatility associated with currency risk.

Lastly, we have reduced exposure to short-term debt and U.S. investment-grade bonds for most Funds to fund increased allocations to TIPS and international bonds.

Q: Brett, could you elaborate on the performance of the asset classes in which the Funds invest

B.S. The Funds' investment in Fidelity? Series Total Market Index Fund, which focuses on large- and small-cap stocks, as well as growth and value stocks, gained 11.68% the past 12 months, about in line with the benchmark Dow Jones U.S. Total Stock Market Index (+11.67%).

The performance of non-U.S. stocks was more muted. Fidelity? Series Global ex U.S. Index Fund, which invests in non-U.S. stocks, returned -2.29%, trailing the -1.33% result of the MSCI ACWI (All Country World Index) ex U.S.A. Index.

Looking at other categories, long-term U.S. Treasury bonds returned -1.42%, as measured by the Bloomberg U.S. LongTerm Treasury Bond Index. Comparatively, our position in Fidelity? Series Long-Term Treasury Bond Index Fund returned -1.19%.

The Bloomberg U.S. Aggregate Bond Index, a benchmark for investment-grade bonds, returned -4.15%, comparable to the -4.16% result for our allocation to Fidelity? Series Investment Grade Bond Index Fund.

Short-term securities returned -0.01%, as measured by the Bloomberg 3-6 Month Treasury Bill Index.

Q: Turning to you, Finola, what's your outlook as of March 31

F.M.F. We continue to focus our strategic research on the long-term drivers of return, and on keeping participants on track toward their retirement goals. The goal of Fidelity? Freedom Index Funds is to help participants maintain their standard of living in retirement by balancing risk and reward throughout their lifetime.

The glide path and strategic asset allocation are expected to be the primary drivers of return over long-term periods. Strategic allocation decisions are based on research and insights related to the factors that influence outcomes over long-term periods, including diversification, capital markets, and participant behavior. Our framework for selecting strategic asset classes emphasizes long-term returns, diversification that limits exposure to an asset type and risk factor, and consistency of trading costs and liquidity.

Thank you for your confidence in our stewardship of the Funds, and in Fidelity's investment management capability. [Editor's note: See the next section of this shareholder update for commentary from Co-Portfolio Manager Finola McGuire Foley on the Funds' diversification.]

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 MARCH 31, 2022

Co-Manager Finola McGuire Foley on the importance of diversification for Fidelity Freedom? Index Funds:

"Looking at the past 12 months, the varied returns among the asset classes in which the Funds invest highlight the importance of diversification, which is at the core of the investment philosophy behind the Fidelity Freedom? Index Funds. "Further, the volatility and performance variation of financial asset classes since the beginning of the COVID-19 pandemic provides even greater awareness of what can happen over short-term periods. "Our research indicates that diversification is the best way to manage uncertainty in the capital markets over long-term investment horizons. As a reminder, I will note that diversification does not ensure a profit or guarantee against a loss. "The Funds invest in assets we believe can provide independent sources of return and risk, and provide some degree of protection from unexpected and persistent changes in the global macroeconomic environment. "Our investment process for establishing the strategic asset allocation emphasizes research into retirement investor needs, portfolio diversification and the long-term forces that affect capital markets. "We analyze factors that influence participant outcomes over the longer term, such as demographic trends, expectations for growth and inflation, and regulatory dynamics."

5 | 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 MARCH 31, 2022

Fidelity Freedom Index Income Fund

ASSET ALLOCATION

STRATEGIC GLIDE PATH

Current Year

Asset Class

Portfolio Weight

Portfolio Weight Six Months Ago

U.S. Equities

11.89%

11.02%

Equities

11.89%

11.02%

Series Total Market Index

11.89%

11.02%

Non-U.S. Equities

7.62%

7.45%

Series Global ex US Index

7.62%

7.45%

Bonds

66.47%

59.93%

U.S. Investment-Grade Bond

43.07%

45.44%

Series Bond Index Fund

43.07%

45.44%

Long-Term U.S. Treasury Bond

2.87%

2.96%

Ser LT Treasury Bd Idx

2.87%

2.96%

U.S. Interm-Term Inflation-Protected Bond 3.04%

9.10%

Ser Infl-Prot Bd Idx

3.04%

9.10%

U.S. Short-Term Inflation-Protected Bond 14.05%

1.98%

Series 0-5 YR TIPS Index

14.05%

1.98%

U.S. Long-Term Inflation-Protected Bond

0.00%

0.00%

International Bond

3.44%

0.45%

Ser Int Dev Mkt Bond Indx

3.44%

0.45%

Short-Term Debt & Net Other Assets

14.02%

21.60%

Ser Treasury Bill Index

13.95%

21.54%

Cash CF

0.00%

0.00%

NET OTHER ASSETS

0.07%

0.06%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

100%

80%

60%

40%

20%

0% 50 45 40 35 30 25 20 15 10 5 0 5 10 15 20

YEARS TO RETIREMENT

YEARS IN RETIREMENT 1

U.S. Equity Funds Non-U.S. Equity Funds Bond Funds

Short-Term Funds

Source: FMR Fidelity's Freedom Funds invest in a diversified mix of Fidelity U.S. equity, nonU.S. equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 10-19 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration.

6 | 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 MARCH 31, 2022

FISCAL PERFORMANCE SUMMARY: Periods ending March 31, 2022

Cumulative

6 Month

YTD

1 Year

Annualized

3 Year

5 Year

10 Year/ LOF1

Fidelity Freedom Index Income Fund - Investor Class Gross Expense Ratio: 0.12%2

-2.92%

-4.18%

-0.50%

4.27%

4.18%

3.55%

Bloomberg US Aggregate Bond Index

-5.92%

-5.93%

-4.15%

1.69%

2.14%

2.24%

Fidelity Freedom Index Income Composite Index

-2.82%

-4.21%

-0.29%

4.46%

4.36%

3.86%

Morningstar Fund Target-Date Retirement

-2.69%

-4.68%

0.34%

5.44%

4.97%

4.44%

% Rank in Morningstar Category (1% = Best)

--

--

72%

88%

85%

84%

# of Funds in Morningstar Category

--

--

166

148

122

77

1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 10/02/2009. 2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year, or estimated amounts for the current fiscal year in the case of a newly launched fund. It does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.

Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. To learn more or to obtain the most recent month-end or other share-class performance, visit institutional. or . Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Performance is that of the fund's Investor Class shares unless noted otherwise. Please see the last page(s) of this Q&A document for most-recent calendar-quarter performance.

7 | 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 MARCH 31, 2022

Fidelity Freedom Index 2005 Fund

ASSET ALLOCATION

STRATEGIC GLIDE PATH

Current Year

Asset Class

Portfolio Weight

Portfolio Weight Six Months Ago

U.S. Equities

13.58%

13.14%

Equities

13.58%

13.14%

Series Total Market Index

13.58%

13.14%

Non-U.S. Equities

8.71%

8.89%

Series Global ex US Index

8.71%

8.89%

Bonds

64.59%

57.98%

U.S. Investment-Grade Bond

42.00%

44.18%

Series Bond Index Fund

42.00%

44.18%

Long-Term U.S. Treasury Bond

2.91%

2.96%

Ser LT Treasury Bd Idx

2.91%

2.96%

U.S. Interm-Term Inflation-Protected Bond 2.90%

8.57%

Ser Infl-Prot Bd Idx

2.90%

8.57%

U.S. Short-Term Inflation-Protected Bond 12.79%

1.75%

Series 0-5 YR TIPS Index

12.79%

1.75%

U.S. Long-Term Inflation-Protected Bond

0.55%

0.06%

Series 5+ YR TIPS Index

0.55%

0.06%

International Bond

3.44%

0.45%

Ser Int Dev Mkt Bond Indx

3.44%

0.45%

Short-Term Debt & Net Other Assets

13.12%

19.99%

Ser Treasury Bill Index

13.05%

19.94%

Cash CF

0.00%

0.00%

NET OTHER ASSETS

0.07%

0.06%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

100%

80%

60%

40%

20%

0% 50 45 40 35 30 25 20 15 10 5 0 5 10 15 20

YEARS TO RETIREMENT

YEARS IN RETIREMENT 1

U.S. Equity Funds Non-U.S. Equity Funds Bond Funds

Short-Term Funds

Source: FMR Fidelity's Freedom Funds invest in a diversified mix of Fidelity U.S. equity, nonU.S. equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 10-19 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration.

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

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