UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4085
Fidelity Income Fund
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | July 31 |
| |
Date of reporting period: | July 31, 2014 |
This report on Form N-CSR relates solely to the Registrant's to Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund, and Fidelity Income Replacement 2042 Fund series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
Fidelity Income Replacement FundsSM -
2016, 2018, 2020, 2022, 2024, 2026, 2028, 2030, 2032, 2034, 2036, 2038, 2040, 2042
Annual Report
July 31, 2014
(Fidelity Cover Art)
Contents
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
Annual Report
Fidelity Income Replacement 2016 FundSM
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2016 Fund | 2.81% | 5.74% | 3.10% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2016 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays® U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Income Replacement 2018 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2018 Fund | 5.38% | 7.19% | 3.86% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2018 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Income Replacement 2020 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fundA |
Fidelity Income Replacement 2020 Fund | 6.74% | 8.19% | 4.31% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2020 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Income Replacement 2022 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2022 Fund | 7.82% | 8.94% | 4.69% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2022 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Income Replacement 2024 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fundA |
Fidelity Income Replacement 2024 Fund | 8.60% | 9.48% | 4.96% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2024 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Income Replacement 2026 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fundA |
Fidelity Income Replacement 2026 Fund | 9.13% | 9.85% | 5.07% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2026 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Income Replacement 2028 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2028 Fund | 9.52% | 10.12% | 5.17% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2028 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Income Replacement 2030 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2030 Fund | 9.78% | 10.35% | 5.25% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2030 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index and the Barclays U.S. Aggregate Bond IndexA performed over the same period.
A Going forward, the fund's performance will be compared to the Barclays U.S. Aggregate Bond Index, rather than the S&P 500 Index. The Barclays U.S. Aggregate Bond Index more closely represents the fund's investment strategy, as fixed-income and short-term funds currently represent the majority of the fund's assets.
Annual Report
Fidelity Income Replacement 2032 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2032 Fund | 10.04% | 10.55% | 5.28% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2032 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Income Replacement 2034 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2034 Fund | 10.23% | 10.73% | 5.26% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2034 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Income Replacement 2036 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2036 Fund | 10.46% | 10.93% | 5.29% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2036 Fund, a class of the fund, on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Income Replacement 2038 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2038 Fund | 10.66% | 11.17% | 5.02% |
A From December 31, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2038 Fund, a class of the fund, on December 31, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Income Replacement 2040 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fundA |
Fidelity Income Replacement 2040 Fund | 10.97% | 11.47% | 5.21% |
A From December 31, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2040 Fund, a class of the fund, on December 31, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Income Replacement 2042 FundSM
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity Income Replacement 2042 Fund | 11.30% | 11.71% | 5.36% |
A From December 31, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Income Replacement 2042 Fund, a class of the fund, on December 31, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Market Recap: U.S. stocks overcame a slowing economy early in 2014 to post a strong gain for the 12-month period ending July 31, 2014, supported by healthy corporate profits and continued low interest rates. The S&P 500® Index rose 16.94%, reaching an all-time high near period end. The technology-heavy Nasdaq Composite Index® gained 22.00%, whereas the Russell 2000® Index returned 8.56%, reflecting the relatively lackluster performance of small-cap stocks, particularly in the final months of the period. Information technology (+28%) was the top-performing sector within the S&P 500®, driven by strong semiconductor and computer hardware sales and expectations for increased capital spending. Materials (+23%) rose amid higher prices for many commodity products. Health care (+21%) also performed well, driven in particular by gains in pharmaceuticals, biotechnology & life sciences companies. Energy stocks (+19%) advanced in the latter part of the period amid healthy U.S. output and the threat of supply disruptions in Iraq. While growth sectors performed well for the year, traditional defensive sectors - consumer staples, utilities and telecommunication services - lagged the market. Volatility remained tame overall, with markets supported by declining unemployment, near-record profit margins for companies, muted cost inflation, and fairly low corporate debt levels. Geopolitical tension remained a concern at period end, with conflict in Ukraine and strained relations between Russia and the West posing a potential threat to global growth; leading indicators for the world's major economies deteriorated somewhat in the second quarter. Still, the MSCI EAFE Index, representing non-U.S. developed markets, rose 15.21% for the period, posting a gain of 10% or more in every major global region. Emerging-markets equities rebounded from a loss in 2013, with the MSCI Emerging Markets Index advancing 15.72%, aided by falling long-term interest rates that encouraged investments in riskier assets.
Meanwhile, U.S. taxable investment-grade bonds also posted a positive return for the 12-month period, overcoming early-period fears that interest rates could keep rising. The Barclays® U.S. Aggregate Bond Index rose 3.97%, driven partly by economic growth concerns after an abnormally cold winter suppressed spending early in 2014. Bonds with maturities of 10 years or more stood out, returning far more than shorter-term securities across fixed-income asset classes. Lower-quality issues attracted some of the strongest buying interest, especially in the latter half of the period. Among sectors that make up the index, investment-grade credit rose 6.64%, aided by a low loan-default rate. By contrast, U.S. Treasuries, considered the safest bond investments, returned 1.99% for the year. High-yield investments, as measured by The BofA Merrill LynchSM US High Yield Constrained Index, rose 8.28%, as many investors were willing to take on greater risk for the possibility of higher returns. International developed-markets bonds outperformed their U.S. counterparts, with the Citigroup® Non-USD Group-of-Seven (G7) Equal Weighted Index returning 6.62%. Emerging-markets debt enjoyed a rally in 2014 that pushed the J.P. Morgan Emerging Markets Bond Index Global up 10.13% for the period.
Comments from Andrew Dierdorf and Brett Sumsion, Co-Portfolio Managers of Fidelity Income Replacement FundsSM: For the one-year period, each of the Funds' Retail Class shares posted a positive absolute result. The longest-dated Funds - designed for shareholders who have a longer time horizon and thus having greater exposure to equities - delivered the greatest returns, while the Funds with shorter time horizons - which have higher allocations to bonds - delivered more-muted results. For the 12-month period, three of the underlying funds outperformed the S&P 500®, the benchmark for the Funds' equity asset class. Fidelity® Blue Chip Growth Fund and Fidelity® Series Broad Market Opportunities Fund, the Fund's largest U.S. equity fund holding, contributed the most to results. In addition, Fidelity Series 100 Index Fund posted a result close to that of the broader market. On the downside, the Funds' sizable position in Fidelity Equity-Income Fund underperformed. The return of Fidelity Series Small Cap Opportunities Fund, a very small allocation, ranked lowest for the period. The Funds' non-U.S. equity investment, Fidelity International Discovery Fund, delivered a double-digit return, albeit considerably lower than that of the S&P 500. The Funds' fixed-income asset class overall - comprising a diversified mix of underlying bond funds - performed well relative to the Barclays® U.S. Aggregate Bond Index. Fidelity Total Bond Fund was the strongest contributor in this asset class. The Funds' investments in Fidelity Capital & Income Fund, a small allocation, registered the highest absolute return as investors sought higher-yielding bonds, a primary focus of the fund. Fidelity Strategic Income Fund, which invests across all major fixed income asset classes, also helped. In line with the generally lower returns found in the segment, Fidelity Government Income Fund, offering exposure to the U.S. government and government-related bond sectors, delivered the lowest absolute result, exclusive of short-term funds.
Note to shareholders: On January 21, 2014, Brett Sumsion became a Co-Manager of the Funds.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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.
Annual Report
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2014 to July 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2016 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,011.10 | $ 1.25 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,009.80 | $ 2.49 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,007.30 | $ 4.98 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2016 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,012.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,012.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,024.00 | $ 1.25 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,022.90 | $ 2.51 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,020.20 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2018 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,025.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,025.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,030.70 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,029.40 | $ 2.52 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,027.00 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2020 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,032.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,032.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2022 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,036.00 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .49% C | | | |
Actual | | $ 1,000.00 | $ 1,034.70 | $ 2.47 |
HypotheticalA | | $ 1,000.00 | $ 1,022.36 | $ 2.46 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,032.20 | $ 4.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2022 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,037.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,037.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,039.80 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,038.30 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,035.80 | $ 5.05 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2024 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,042.00 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,038.10 | $ 5.05 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2026 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | .24% C | | | |
Actual | | $ 1,000.00 | $ 1,043.80 | $ 1.22 |
HypotheticalA | | $ 1,000.00 | $ 1,023.60 | $ 1.20 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,042.60 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,040.00 | $ 5.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2028 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,043.70 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,041.10 | $ 5.06 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2030 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,046.10 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,044.90 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,042.30 | $ 5.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2032 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,047.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,047.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,046.90 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,045.50 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,043.00 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2034 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,048.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,048.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,047.90 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,046.50 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,043.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2036 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,048.60 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,047.30 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,044.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2038 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,050.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,049.80 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .49%C | | | |
Actual | | $ 1,000.00 | $ 1,048.60 | $ 2.49 |
HypotheticalA | | $ 1,000.00 | $ 1,022.36 | $ 2.46 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,045.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2040 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,051.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,051.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,051.30 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,050.10 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,047.30 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2042 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,052.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,052.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which each Fund invests are not included in each Fund's annualized expense ratio.
Annual Report
Fidelity Income Replacement 2016 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 1.1 | 1.3 |
Fidelity Blue Chip Growth Fund | 1.0 | 1.3 |
Fidelity Equity-Income Fund | 1.6 | 1.9 |
Fidelity Large Cap Stock Fund | 1.2 | 1.4 |
Fidelity Series 100 Index Fund | 1.0 | 1.3 |
Fidelity Series Broad Market Opportunities Fund | 1.8 | 2.2 |
Fidelity Series Small Cap Opportunities Fund | 0.1 | 0.2 |
| 7.8 | 9.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 2.3 | 3.4 |
Fidelity Strategic Real Return Fund | 2.3 | 3.4 |
Fidelity Total Bond Fund | 6.9 | 10.3 |
| 11.5 | 17.1 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 52.8 | 46.9 |
Fidelity Short-Term Bond Fund | 27.9 | 26.4 |
| 80.7 | 73.3 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
 | Domestic Equity Funds | 7.8% | |
 | Investment Grade Fixed-Income Funds | 11.5% | |
 | Short-Term Funds | 80.7% | |
Six months ago |
| Domestic Equity Funds | 9.6% | |
| Investment Grade Fixed-Income Funds | 17.1% | |
| Short-Term Funds | 73.3% | |
Expected |
| Domestic Equity Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 4.6% | |
| Short-Term Funds | 89.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2016 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 7.8% |
| Shares | | Value |
Domestic Equity Funds - 7.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 2,544 | | $ 53,884 |
Fidelity Blue Chip Growth Fund (b) | 759 | | 50,639 |
Fidelity Equity-Income Fund (b) | 1,277 | | 78,226 |
Fidelity Large Cap Stock Fund (b) | 2,127 | | 58,923 |
Fidelity Series 100 Index Fund (b) | 4,046 | | 51,470 |
Fidelity Series Broad Market Opportunities Fund (b) | 5,778 | | 88,756 |
Fidelity Series Small Cap Opportunities Fund (b) | 577 | | 7,476 |
TOTAL EQUITY FUNDS (Cost $217,331) |
389,374
|
Fixed-Income Funds - 11.5% |
| | | |
Investment Grade Fixed-Income Funds - 11.5% |
Fidelity Government Income Fund (b) | 11,153 | | 115,657 |
Fidelity Strategic Real Return Fund (b) | 11,955 | | 114,414 |
Fidelity Total Bond Fund (b) | 32,461 | | 346,685 |
TOTAL FIXED-INCOME FUNDS (Cost $509,914) |
576,756
|
Short-Term Funds - 80.7% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 2,636,597 | | $ 2,636,597 |
Fidelity Short-Term Bond Fund (b) | 162,035 | | 1,391,877 |
TOTAL SHORT-TERM FUNDS (Cost $3,981,016) |
4,028,474
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $4,708,261) | | 4,994,604 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (470) |
NET ASSETS - 100% | $ 4,994,134 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor Mid Cap II Fund Institutional Class | $ 106,757 | $ 21,249 | $ 76,736 | $ 88 | $ 53,884 |
Fidelity Blue Chip Growth Fund | 98,838 | 16,503 | 74,051 | 361 | 50,639 |
Fidelity Equity-Income Fund | 151,494 | 17,256 | 101,573 | 2,942 | 78,226 |
Fidelity Government Income Fund | 291,416 | 28,612 | 206,324 | 3,315 | 115,657 |
Fidelity Institutional Money Market Portfolio Institutional Class | 2,558,368 | 1,073,851 | 995,621 | 2,235 | 2,636,597 |
Fidelity Large Cap Stock Fund | 114,261 | 15,086 | 82,452 | 747 | 58,923 |
Fidelity Series 100 Index Fund | 98,617 | 11,026 | 68,405 | 1,605 | 51,470 |
Fidelity Series Broad Market Opportunities Fund | 174,262 | 18,516 | 125,530 | 627 | 88,756 |
Fidelity Series Small Cap Opportunities Fund | 15,242 | 3,125 | 10,590 | 3 | 7,476 |
Fidelity Short-Term Bond Fund | 1,556,260 | 404,453 | 574,369 | 13,552 | 1,391,877 |
Fidelity Strategic Real Return Fund | 291,366 | 31,061 | 211,411 | 4,180 | 114,414 |
Fidelity Total Bond Fund | 876,146 | 102,316 | 634,728 | 18,225 | 346,685 |
Total | $ 6,333,027 | $ 1,743,054 | $ 3,161,790 | $ 47,880 | $ 4,994,604 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2016 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $4,708,261) - See accompanying schedule | | $ 4,994,604 |
Receivable for investments sold | | 6,936 |
Receivable for fund shares sold | | 75,000 |
Total assets | | 5,076,540 |
| | |
Liabilities | | |
Payable for investments purchased | $ 66,548 | |
Payable for fund shares redeemed | 15,401 | |
Distribution and service plan fees payable | 457 | |
Total liabilities | | 82,406 |
| | |
Net Assets | | $ 4,994,134 |
Net Assets consist of: | | |
Paid in capital | | $ 4,644,005 |
Undistributed net investment income | | 490 |
Accumulated undistributed net realized gain (loss) on investments | | 63,296 |
Net unrealized appreciation (depreciation) on investments | | 286,343 |
Net Assets | | $ 4,994,134 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($185,472 ÷ 3,534.10 shares) | | $ 52.48 |
| | |
Maximum offering price per share (100/94.25 of $52.48) | | $ 55.68 |
Class T:
Net Asset Value and redemption price per share ($120,043 ÷ 2,287.22 shares) | | $ 52.48 |
| | |
Maximum offering price per share (100/96.50 of $52.48) | | $ 54.38 |
| | |
Class C:
Net Asset Value and offering price per share ($442,716 ÷ 8,472.13 shares)A | | $ 52.26 |
| | |
Income Replacement 2016:
Net Asset Value, offering price and redemption price per share ($4,225,138 ÷ 80,523.72 shares) | | $ 52.47 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($20,765 ÷ 395.73 shares) | | $ 52.47 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 47,880 |
| | |
Expenses | | |
Distribution and service plan fees | $ 6,409 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 6,432 | |
Expense reductions | (23) | 6,409 |
Net investment income (loss) | | 41,471 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 236,211 | |
Capital gain distributions from underlying funds | 34,835 | |
Total net realized gain (loss) | | 271,046 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (155,891) |
Net gain (loss) | | 115,155 |
Net increase (decrease) in net assets resulting from operations | | $ 156,626 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 41,471 | $ 81,573 |
Net realized gain (loss) | 271,046 | 349,071 |
Change in net unrealized appreciation (depreciation) | (155,891) | (168,305) |
Net increase (decrease) in net assets resulting from operations | 156,626 | 262,339 |
Distributions to shareholders from net investment income | (41,835) | (82,163) |
Distributions to shareholders from net realized gain | (4,675) | (30,226) |
Total distributions | (46,510) | (112,389) |
Share transactions - net increase (decrease) | (1,448,333) | (1,960,985) |
Total increase (decrease) in net assets | (1,338,217) | (1,811,035) |
| | |
Net Assets | | |
Beginning of period | 6,332,351 | 8,143,386 |
End of period (including undistributed net investment income of $490 and undistributed net investment income of $853, respectively) | $ 4,994,134 | $ 6,332,351 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .305 | .500 | .736 | .821 | .831 |
Net realized and unrealized gain (loss) | 1.012 | 1.219 | .842 | 3.054 | 3.539 |
Total from investment operations | 1.317 | 1.719 | 1.578 | 3.875 | 4.370 |
Distributions from net investment income | (.287) | (.487) | (.733) | (.834) | (.830) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.327) | (.689) | (.938) | (1.095) | (.950) |
Net asset value, end of period | $ 52.48 | $ 51.49 | $ 50.46 | $ 49.82 | $ 47.04 |
Total ReturnA, B | 2.56% | 3.43% | 3.23% | 8.30% | 10.08% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | .59% | .98% | 1.49% | 1.68% | 1.80% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 185 | $ 331 | $ 886 | $ 1,798 | $ 2,308 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.50 | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 |
Income from Investment Operations | | | | | |
Net investment income (loss)C | .175 | .372 | .612 | .698 | .716 |
Net realized and unrealized gain (loss) | 1.006 | 1.225 | .847 | 3.043 | 3.540 |
Total from investment operations | 1.181 | 1.597 | 1.459 | 3.741 | 4.256 |
Distributions from net investment income | (.161) | (.365) | (.594) | (.710) | (.716) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.201) | (.567) | (.799) | (.971) | (.836) |
Net asset value, end of period | $ 52.48 | $ 51.50 | $ 50.47 | $ 49.81 | $ 47.04 |
Total ReturnA, B | 2.30% | 3.18% | 2.98% | 8.00% | 9.81% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .34% | .73% | 1.24% | 1.42% | 1.55% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 120 | $ 135 | $ 194 | $ 529 | $ 638 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.41 | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | (.085) | .116 | .364 | .453 | .485 |
Net realized and unrealized gain (loss) | 1.014 | 1.225 | .837 | 3.055 | 3.531 |
Total from investment operations | .929 | 1.341 | 1.201 | 3.508 | 4.016 |
Distributions from net investment income | (.039) | (.179) | (.376) | (.447) | (.476) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.079) | (.381) | (.581) | (.708) | (.596) |
Net asset value, end of period | $ 52.26 | $ 51.41 | $ 50.45 | $ 49.83 | $ 47.03 |
Total ReturnA, B | 1.81% | 2.67% | 2.45% | 7.49% | 9.24% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | (.16)% | .23% | .74% | .92% | 1.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 443 | $ 575 | $ 891 | $ 759 | $ 1,075 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2016
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .435 | .627 | .859 | .944 | .948 |
Net realized and unrealized gain (loss) | 1.007 | 1.229 | .838 | 3.055 | 3.539 |
Total from investment operations | 1.442 | 1.856 | 1.697 | 3.999 | 4.487 |
Distributions from net investment income | (.422) | (.624) | (.862) | (.958) | (.947) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.462) | (.826) | (1.067) | (1.219) | (1.067) |
Net asset value, end of period | $ 52.47 | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 |
Total ReturnA | 2.81% | 3.71% | 3.48% | 8.57% | 10.36% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | .84% | 1.23% | 1.74% | 1.93% | 2.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,225 | $ 5,262 | $ 6,124 | $ 6,873 | $ 6,946 |
Portfolio turnover rate C | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .435 | .628 | .861 | .945 | .947 |
Net realized and unrealized gain (loss) | 1.007 | 1.228 | .836 | 3.054 | 3.530 |
Total from investment operations | 1.442 | 1.856 | 1.697 | 3.999 | 4.477 |
Distributions from net investment income | (.422) | (.624) | (.862) | (.958) | (.947) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.462) | (.826) | (1.067) | (1.219) | (1.067) |
Net asset value, end of period | $ 52.47 | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 |
Total ReturnA | 2.81% | 3.71% | 3.48% | 8.57% | 10.33% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | .84% | 1.23% | 1.74% | 1.92% | 2.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21 | $ 30 | $ 49 | $ 44 | $ 108 |
Portfolio turnover rate C | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 2.4 | 2.8 |
Fidelity Blue Chip Growth Fund | 2.2 | 2.6 |
Fidelity Equity-Income Fund | 3.4 | 3.9 |
Fidelity Large Cap Stock Fund | 2.6 | 2.9 |
Fidelity Series 100 Index Fund | 2.2 | 2.5 |
Fidelity Series Broad Market Opportunities Fund | 3.9 | 4.5 |
Fidelity Series Small Cap Opportunities Fund | 0.3 | 0.4 |
| 17.0 | 19.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.0 | 7.9 |
Fidelity Strategic Real Return Fund | 7.0 | 7.8 |
Fidelity Total Bond Fund | 21.1 | 23.6 |
| 35.1 | 39.3 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 36.2 | 23.7 |
Fidelity Short-Term Bond Fund | 11.7 | 17.4 |
| 47.9 | 41.1 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 17.0% | |
| Investment Grade Fixed-Income Funds | 35.1% | |
| Short-Term Funds | 47.9% | |
Six months ago |
| Domestic Equity Funds | 19.6% | |
| Investment Grade Fixed-Income Funds | 39.3% | |
| Short-Term Funds | 41.1% | |
Expected |
| Domestic Equity Funds | 14.4% | |
| Investment Grade Fixed-Income Funds | 28.9% | |
| Short-Term Funds | 56.7% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2018 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 17.0% |
| Shares | | Value |
Domestic Equity Funds - 17.0% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 8,017 | | $ 169,791 |
Fidelity Blue Chip Growth Fund (b) | 2,385 | | 159,132 |
Fidelity Equity-Income Fund (b) | 4,015 | | 246,066 |
Fidelity Large Cap Stock Fund (b) | 6,690 | | 185,321 |
Fidelity Series 100 Index Fund (b) | 12,716 | | 161,744 |
Fidelity Series Broad Market Opportunities Fund (b) | 18,266 | | 280,568 |
Fidelity Series Small Cap Opportunities Fund (b) | 1,825 | | 23,652 |
TOTAL EQUITY FUNDS (Cost $879,525) |
1,226,274
|
Fixed-Income Funds - 35.1% |
| | | |
Investment Grade Fixed-Income Funds - 35.1% |
Fidelity Government Income Fund (b) | 48,886 | | 506,949 |
Fidelity Strategic Real Return Fund (b) | 52,401 | | 501,479 |
Fidelity Total Bond Fund (b) | 142,278 | | 1,519,533 |
TOTAL FIXED-INCOME FUNDS (Cost $2,511,070) |
2,527,961
|
Short-Term Funds - 47.9% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 2,605,957 | | $ 2,605,957 |
Fidelity Short-Term Bond Fund (b) | 97,765 | | 839,804 |
TOTAL SHORT-TERM FUNDS (Cost $3,435,750) |
3,445,761
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,826,345) | | 7,199,996 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (982) |
NET ASSETS - 100% | $ 7,199,014 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 47,187 | $ 5,629 | $ 57,187 | $ 254 | $ - |
Fidelity Advisor Mid Cap II Fund Institutional Class | 170,368 | 118,733 | 123,091 | 180 | 169,791 |
Fidelity Blue Chip Growth Fund | 157,814 | 101,020 | 120,825 | 645 | 159,132 |
Fidelity Equity-Income Fund | 242,856 | 139,162 | 160,775 | 6,486 | 246,066 |
Fidelity Government Income Fund | 472,175 | 274,168 | 245,466 | 8,281 | 506,949 |
Fidelity Institutional Money Market Portfolio Institutional Class | 1,057,338 | 2,113,477 | 564,855 | 1,359 | 2,605,957 |
Fidelity Large Cap Stock Fund | 182,263 | 112,781 | 133,101 | 1,689 | 185,321 |
Fidelity Series 100 Index Fund | 157,461 | 90,823 | 109,027 | 3,131 | 161,744 |
Fidelity Series Broad Market Opportunities Fund | 278,946 | 157,451 | 199,870 | 1,275 | 280,568 |
Fidelity Series Small Cap Opportunities Fund | 24,159 | 16,550 | 16,406 | 6 | 23,652 |
Fidelity Short-Term Bond Fund | 1,058,027 | 639,371 | 861,848 | 9,631 | 839,804 |
Fidelity Strategic Real Return Fund | 472,164 | 277,554 | 259,580 | 10,301 | 501,479 |
Fidelity Total Bond Fund | 1,417,756 | 843,117 | 757,134 | 44,217 | 1,519,533 |
Total | $ 5,738,514 | $ 4,889,836 | $ 3,609,165 | $ 87,455 | $ 7,199,996 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,826,345) - See accompanying schedule | | $ 7,199,996 |
Receivable for fund shares sold | | 75,060 |
Total assets | | 7,275,056 |
| | |
Liabilities | | |
Payable for investments purchased | $ 75,003 | |
Distribution and service plan fees payable | 1,039 | |
Total liabilities | | 76,042 |
| | |
Net Assets | | $ 7,199,014 |
Net Assets consist of: | | |
Paid in capital | | $ 7,208,238 |
Undistributed net investment income | | 1,164 |
Accumulated undistributed net realized gain (loss) on investments | | (384,039) |
Net unrealized appreciation (depreciation) on investments | | 373,651 |
Net Assets | | $ 7,199,014 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($867,777 ÷ 15,933.42 shares) | | $ 54.46 |
| | |
Maximum offering price per share (100/94.25 of $54.46) | | $ 57.78 |
Class T:
Net Asset Value and redemption price per share ($444,068 ÷ 8,151.69 shares) | | $ 54.48 |
| | |
Maximum offering price per share (100/96.50 of $54.48) | | $ 56.46 |
| | |
Class C:
Net Asset Value and offering price per share ($787,366 ÷ 14,484.47 shares)A | | $ 54.36 |
| | |
Income Replacement 2018:
Net Asset Value, offering price and redemption price per share ($4,665,488 ÷ 85,647.76 shares) | | $ 54.47 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($434,315 ÷ 7,972.24 shares) | | $ 54.48 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 87,455 |
| | |
Expenses | | |
Distribution and service plan fees | $ 9,804 | |
Independent trustees' compensation | 25 | |
Total expenses before reductions | 9,829 | |
Expense reductions | (25) | 9,804 |
Net investment income (loss) | | 77,651 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 43,817 | |
Capital gain distributions from underlying funds | 68,215 | |
Total net realized gain (loss) | | 112,032 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 136,996 |
Net gain (loss) | | 249,028 |
Net increase (decrease) in net assets resulting from operations | | $ 326,679 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 77,651 | $ 86,163 |
Net realized gain (loss) | 112,032 | 140,568 |
Change in net unrealized appreciation (depreciation) | 136,996 | 92,673 |
Net increase (decrease) in net assets resulting from operations | 326,679 | 319,404 |
Distributions to shareholders from net investment income | (77,552) | (86,074) |
Distributions to shareholders from net realized gain | (9,595) | (32,209) |
Total distributions | (87,147) | (118,283) |
Share transactions - net increase (decrease) | 1,221,542 | (166,169) |
Total increase (decrease) in net assets | 1,461,074 | 34,952 |
| | |
Net Assets | | |
Beginning of period | 5,737,940 | 5,702,988 |
End of period (including undistributed net investment income of $1,164 and undistributed net investment income of $1,066, respectively) | $ 7,199,014 | $ 5,737,940 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.45 | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .588 | .719 | .774 | .836 | .836 |
Net realized and unrealized gain (loss) | 2.080 | 2.135 | .909 | 3.655 | 3.763 |
Total from investment operations | 2.668 | 2.854 | 1.683 | 4.491 | 4.599 |
Distributions from net investment income | (.579) | (.705) | (.765) | (.834) | (.839) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.658) | (.994) | (.963) | (1.071) | (.959) |
Net asset value, end of period | $ 54.46 | $ 52.45 | $ 50.59 | $ 49.87 | $ 46.45 |
Total ReturnA, B | 5.11% | 5.70% | 3.45% | 9.73% | 10.80% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.10% | 1.39% | 1.57% | 1.71% | 1.83% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 868 | $ 774 | $ 762 | $ 784 | $ 1,147 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.48 | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .454 | .589 | .651 | .716 | .722 |
Net realized and unrealized gain (loss) | 2.085 | 2.133 | .909 | 3.664 | 3.759 |
Total from investment operations | 2.539 | 2.722 | 1.560 | 4.380 | 4.481 |
Distributions from net investment income | (.460) | (.573) | (.642) | (.723) | (.711) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.539) | (.862) | (.840) | (.960) | (.831) |
Net asset value, end of period | $ 54.48 | $ 52.48 | $ 50.62 | $ 49.90 | $ 46.48 |
Total ReturnA, B | 4.86% | 5.43% | 3.19% | 9.48% | 10.51% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .85% | 1.14% | 1.32% | 1.46% | 1.58% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 444 | $ 101 | $ 128 | $ 148 | $ 52 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.38 | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .187 | .330 | .403 | .469 | .495 |
Net realized and unrealized gain (loss) | 2.073 | 2.129 | .912 | 3.659 | 3.760 |
Total from investment operations | 2.260 | 2.459 | 1.315 | 4.128 | 4.255 |
Distributions from net investment income | (.201) | (.350) | (.407) | (.471) | (.505) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.280) | (.639) | (.605) | (.708) | (.625) |
Net asset value, end of period | $ 54.36 | $ 52.38 | $ 50.56 | $ 49.85 | $ 46.43 |
Total ReturnA, B | 4.32% | 4.90% | 2.68% | 8.93% | 9.98% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .35% | .64% | .82% | .96% | 1.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 787 | $ 498 | $ 439 | $ 226 | $ 201 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2018
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.46 | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .722 | .848 | .898 | .960 | .950 |
Net realized and unrealized gain (loss) | 2.081 | 2.135 | .908 | 3.657 | 3.761 |
Total from investment operations | 2.803 | 2.983 | 1.806 | 4.617 | 4.711 |
Distributions from net investment income | (.714) | (.834) | (.888) | (.960) | (.951) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.793) | (1.123) | (1.086) | (1.197) | (1.071) |
Net asset value, end of period | $ 54.47 | $ 52.46 | $ 50.60 | $ 49.88 | $ 46.46 |
Total ReturnA | 5.38% | 5.96% | 3.71% | 10.01% | 11.07% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.35% | 1.64% | 1.82% | 1.96% | 2.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,665 | $ 3,875 | $ 3,904 | $ 3,806 | $ 3,681 |
Portfolio turnover rate C | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.46 | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .722 | .849 | .891 | .959 | .950 |
Net realized and unrealized gain (loss) | 2.091 | 2.124 | .915 | 3.668 | 3.761 |
Total from investment operations | 2.813 | 2.973 | 1.806 | 4.627 | 4.711 |
Distributions from net investment income | (.714) | (.834) | (.888) | (.960) | (.951) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.793) | (1.123) | (1.086) | (1.197) | (1.071) |
Net asset value, end of period | $ 54.48 | $ 52.46 | $ 50.61 | $ 49.89 | $ 46.46 |
Total ReturnA | 5.40% | 5.94% | 3.71% | 10.03% | 11.07% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.35% | 1.64% | 1.82% | 1.96% | 2.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 434 | $ 491 | $ 470 | $ 320 | $ 350 |
Portfolio turnover rate C | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2020 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 3.3 | 3.6 |
Fidelity Blue Chip Growth Fund | 3.1 | 3.4 |
Fidelity Equity-Income Fund | 4.8 | 5.1 |
Fidelity Large Cap Stock Fund | 3.7 | 3.8 |
Fidelity Series 100 Index Fund | 3.2 | 3.3 |
Fidelity Series Broad Market Opportunities Fund | 5.5 | 6.0 |
Fidelity Series Small Cap Opportunities Fund | 0.5 | 0.5 |
| 24.1 | 25.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 2.2 | 2.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 8.4 | 8.3 |
Fidelity Strategic Real Return Fund | 8.4 | 8.3 |
Fidelity Total Bond Fund | 25.2 | 24.8 |
| 42.0 | 41.4 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 15.9 | 15.1 |
Fidelity Short-Term Bond Fund | 15.8 | 15.3 |
| 31.7 | 30.4 |
Net Other Assets (Liabilities) | 0.0* | 0.1 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 24.1% | |
| International Equity Funds | 2.2% | |
 | Investment Grade Fixed-Income Funds | 42.0% | |
| Short-Term Funds | 31.7% | |
Six months ago |
| Domestic Equity Funds | 25.7% | |
| International Equity Funds | 2.4% | |
| Investment Grade Fixed-Income Funds | 41.4% | |
 | Short-Term Funds | 30.4% | |
| Net Other Assets (Liabilities) | 0.1% | |
Expected |
| Domestic Equity Funds | 22.6% | |
| International Equity Funds | 1.8% | |
| Investment Grade Fixed-Income Funds | 42.4% | |
| Short-Term Funds | 33.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2020 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 26.3% |
| Shares | | Value |
Domestic Equity Funds - 24.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 13,552 | | $ 287,033 |
Fidelity Blue Chip Growth Fund (b) | 4,051 | | 270,231 |
Fidelity Equity-Income Fund (b) | 6,808 | | 417,164 |
Fidelity Large Cap Stock Fund (b) | 11,344 | | 314,227 |
Fidelity Series 100 Index Fund (b) | 21,591 | | 274,642 |
Fidelity Series Broad Market Opportunities Fund (b) | 30,995 | | 476,090 |
Fidelity Series Small Cap Opportunities Fund (b) | 3,063 | | 39,701 |
TOTAL DOMESTIC EQUITY FUNDS | | 2,079,088 |
International Equity Funds - 2.2% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 4,650 | | 185,587 |
TOTAL EQUITY FUNDS (Cost $1,572,478) |
2,264,675
|
Fixed-Income Funds - 42.0% |
| | | |
Investment Grade Fixed-Income Funds - 42.0% |
Fidelity Government Income Fund (b) | 69,841 | | 724,255 |
Fidelity Strategic Real Return Fund (b) | 74,862 | | 716,433 |
Fidelity Total Bond Fund (b) | 203,270 | | 2,170,920 |
TOTAL FIXED-INCOME FUNDS (Cost $3,559,346) |
3,611,608
|
Short-Term Funds - 31.7% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,367,711 | | $ 1,367,711 |
Fidelity Short-Term Bond Fund (b) | 158,958 | | 1,365,451 |
TOTAL SHORT-TERM FUNDS (Cost $2,718,565) |
2,733,162
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,850,389) | | 8,609,445 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (684) |
NET ASSETS - 100% | $ 8,608,761 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 161,208 | $ 85,686 | $ 76,051 | $ 2,050 | $ 185,587 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 235,797 | 159,857 | 112,621 | 247 | 287,033 |
Fidelity Blue Chip Growth Fund | 218,782 | 136,098 | 113,078 | 910 | 270,231 |
Fidelity Capital & Income Fund | 24,270 | 2,917 | 27,788 | 450 | - |
Fidelity Equity-Income Fund | 336,182 | 187,563 | 141,888 | 9,878 | 417,164 |
Fidelity Government Income Fund | 482,766 | 338,725 | 104,801 | 9,749 | 724,255 |
Fidelity Institutional Money Market Portfolio Institutional Class | 868,607 | 690,149 | 191,044 | 916 | 1,367,711 |
Fidelity Large Cap Stock Fund | 252,502 | 149,402 | 118,913 | 2,483 | 314,227 |
Fidelity Series 100 Index Fund | 218,293 | 119,914 | 95,964 | 4,349 | 274,642 |
Fidelity Series Broad Market Opportunities Fund | 386,860 | 210,150 | 182,188 | 1,752 | 476,090 |
Fidelity Series Small Cap Opportunities Fund | 33,925 | 22,364 | 15,063 | 8 | 39,701 |
Fidelity Short-Term Bond Fund | 869,077 | 685,839 | 192,134 | 9,929 | 1,365,451 |
Fidelity Strategic Income Fund | 24,236 | 2,897 | 27,046 | 363 | - |
Fidelity Strategic Real Return Fund | 482,760 | 338,716 | 118,825 | 12,399 | 716,433 |
Fidelity Total Bond Fund | 1,449,522 | 1,013,908 | 312,929 | 51,698 | 2,170,920 |
Total | $ 6,044,787 | $ 4,144,185 | $ 1,830,333 | $ 107,181 | $ 8,609,445 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2020 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,850,389) - See accompanying schedule | | $ 8,609,445 |
Cash | | 5 |
Receivable for fund shares sold | | 500 |
Total assets | | 8,609,950 |
| | |
Liabilities | | |
Payable for investments purchased | $ 503 | |
Distribution and service plan fees payable | 686 | |
Total liabilities | | 1,189 |
| | |
Net Assets | | $ 8,608,761 |
Net Assets consist of: | | |
Paid in capital | | $ 7,826,939 |
Undistributed net investment income | | 1,732 |
Accumulated undistributed net realized gain (loss) on investments | | 21,034 |
Net unrealized appreciation (depreciation) on investments | | 759,056 |
Net Assets | | $ 8,608,761 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($812,519 ÷ 14,524.12 shares) | | $ 55.94 |
| | |
Maximum offering price per share (100/94.25 of $55.94) | | $ 59.35 |
Class T:
Net Asset Value and redemption price per share ($93,586 ÷ 1,672.60 shares) | | $ 55.95 |
| | |
Maximum offering price per share (100/96.50 of $55.95) | | $ 57.98 |
| | |
Class C:
Net Asset Value and offering price per share ($563,370 ÷ 10,088.81 shares)A | | $ 55.84 |
| | |
Income Replacement 2020:
Net Asset Value, offering price and redemption price per share ($7,052,631 ÷ 126,067.34 shares) | | $ 55.94 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($86,655 ÷ 1,548.95 shares) | | $ 55.94 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 107,181 |
| | |
Expenses | | |
Distribution and service plan fees | $ 6,935 | |
Independent trustees' compensation | 27 | |
Total expenses before reductions | 6,962 | |
Expense reductions | (27) | 6,935 |
Net investment income (loss) | | 100,246 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 20,456 | |
Capital gain distributions from underlying funds | 90,869 | |
Total net realized gain (loss) | | 111,325 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 230,351 |
Net gain (loss) | | 341,676 |
Net increase (decrease) in net assets resulting from operations | | $ 441,922 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 100,246 | $ 89,832 |
Net realized gain (loss) | 111,325 | 209,360 |
Change in net unrealized appreciation (depreciation) | 230,351 | 125,629 |
Net increase (decrease) in net assets resulting from operations | 441,922 | 424,821 |
Distributions to shareholders from net investment income | (99,649) | (89,581) |
Distributions to shareholders from net realized gain | (50,628) | (25,206) |
Total distributions | (150,277) | (114,787) |
Share transactions - net increase (decrease) | 2,272,722 | 872,079 |
Total increase (decrease) in net assets | 2,564,367 | 1,182,113 |
| | |
Net Assets | | |
Beginning of period | 6,044,394 | 4,862,281 |
End of period (including distributions in excess of net investment income of $1,732 and undistributed net investment income of $1,135, respectively) | $ 8,608,761 | $ 6,044,394 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .674 | .770 | .793 | .817 | .812 |
Net realized and unrealized gain (loss) | 2.766 | 3.157 | .884 | 4.128 | 3.930 |
Total from investment operations | 3.440 | 3.927 | 1.677 | 4.945 | 4.742 |
Distributions from net investment income | (.670) | (.774) | (.794) | (.826) | (.817) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.090) | (1.027) | (.977) | (1.045) | (.932) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 |
Total ReturnA, B | 6.48% | 7.84% | 3.44% | 10.79% | 11.27% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.23% | 1.47% | 1.61% | 1.67% | 1.79% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 813 | $ 411 | $ 408 | $ 436 | $ 607 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .537 | .639 | .670 | .696 | .696 |
Net realized and unrealized gain (loss) | 2.770 | 3.145 | .885 | 4.135 | 3.928 |
Total from investment operations | 3.307 | 3.784 | 1.555 | 4.831 | 4.624 |
Distributions from net investment income | (.527) | (.631) | (.672) | (.712) | (.699) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (.947) | (.884) | (.855) | (.931) | (.814) |
Net asset value, end of period | $ 55.95 | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 |
Total ReturnA, B | 6.22% | 7.54% | 3.18% | 10.54% | 10.98% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .98% | 1.22% | 1.36% | 1.42% | 1.54% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 94 | $ 101 | $ 189 | $ 196 | $ 134 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.51 | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .262 | .377 | .422 | .449 | .473 |
Net realized and unrealized gain (loss) | 2.759 | 3.151 | .876 | 4.132 | 3.923 |
Total from investment operations | 3.021 | 3.528 | 1.298 | 4.581 | 4.396 |
Distributions from net investment income | (.271) | (.415) | (.435) | (.452) | (.481) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (.691) | (.668) | (.618) | (.671) | (.596) |
Net asset value, end of period | $ 55.84 | $ 53.51 | $ 50.65 | $ 49.97 | $ 46.06 |
Total ReturnA, B | 5.68% | 7.02% | 2.65% | 9.98% | 10.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .48% | .72% | .86% | .92% | 1.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 563 | $ 322 | $ 306 | $ 228 | $ 295 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2020
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .813 | .901 | .917 | .942 | .925 |
Net realized and unrealized gain (loss) | 2.762 | 3.160 | .874 | 4.138 | 3.919 |
Total from investment operations | 3.575 | 4.061 | 1.791 | 5.080 | 4.844 |
Distributions from net investment income | (.805) | (.908) | (.918) | (.951) | (.929) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.225) | (1.161) | (1.101) | (1.170) | (1.044) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 |
Total ReturnA | 6.74% | 8.11% | 3.68% | 11.10% | 11.52% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.48% | 1.72% | 1.86% | 1.92% | 2.04% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,053 | $ 5,196 | $ 3,945 | $ 3,079 | $ 2,225 |
Portfolio turnover rate C | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .814 | .901 | .917 | .939 | .928 |
Net realized and unrealized gain (loss) | 2.761 | 3.160 | .874 | 4.141 | 3.916 |
Total from investment operations | 3.575 | 4.061 | 1.791 | 5.080 | 4.844 |
Distributions from net investment income | (.805) | (.908) | (.918) | (.951) | (.929) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.225) | (1.161) | (1.101) | (1.170) | (1.044) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 |
Total ReturnA | 6.74% | 8.11% | 3.68% | 11.10% | 11.52% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.48% | 1.72% | 1.86% | 1.92% | 2.04% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 87 | $ 14 | $ 13 | $ 32 | $ 49 |
Portfolio turnover rate C | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.2 | 4.4 |
Fidelity Blue Chip Growth Fund | 4.0 | 4.2 |
Fidelity Equity-Income Fund | 6.2 | 6.4 |
Fidelity Large Cap Stock Fund | 4.6 | 4.7 |
Fidelity Series 100 Index Fund | 4.0 | 4.1 |
Fidelity Series Broad Market Opportunities Fund | 7.0 | 7.3 |
Fidelity Series Small Cap Opportunities Fund | 0.6 | 0.6 |
| 30.6 | 31.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 3.1 | 3.3 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.0 | 1.2 |
Fidelity Strategic Income Fund | 1.1 | 1.2 |
| 2.1 | 2.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.7 | 7.6 |
Fidelity Strategic Real Return Fund | 7.6 | 7.6 |
Fidelity Total Bond Fund | 23.0 | 22.7 |
| 38.3 | 37.9 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 13.0 | 12.3 |
Fidelity Short-Term Bond Fund | 12.9 | 12.4 |
| 25.9 | 24.7 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 30.6% | |
 | International Equity Funds | 3.1% | |
 | High Yield Fixed-Income Funds | 2.1% | |
 | Investment Grade Fixed-Income Funds | 38.3% | |
| Short-Term Funds | 25.9% | |
Six months ago |
| Domestic Equity Funds | 31.7% | |
| International Equity Funds | 3.3% | |
| High Yield Fixed-Income Funds | 2.4% | |
| Investment Grade Fixed-Income Funds | 37.9% | |
| Short-Term Funds | 24.7% | |
Expected |
| Domestic Equity Funds | 29.4% | |
| International Equity Funds | 2.9% | |
| High Yield Fixed-Income Funds | 1.8% | |
| Investment Grade Fixed-Income Funds | 38.9% | |
| Short-Term Funds | 27.0% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2022 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 33.7% |
| Shares | | Value |
Domestic Equity Funds - 30.6% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 21,207 | | $ 449,169 |
Fidelity Blue Chip Growth Fund (b) | 6,327 | | 422,046 |
Fidelity Equity-Income Fund (b) | 10,634 | | 651,661 |
Fidelity Large Cap Stock Fund (b) | 17,711 | | 490,589 |
Fidelity Series 100 Index Fund (b) | 33,684 | | 428,462 |
Fidelity Series Broad Market Opportunities Fund (b) | 48,404 | | 743,479 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,798 | | 62,187 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,247,593 |
International Equity Funds - 3.1% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 8,223 | | 328,196 |
TOTAL EQUITY FUNDS (Cost $3,017,506) |
3,575,789
|
Fixed-Income Funds - 40.4% |
| | | |
High Yield Fixed-Income Funds - 2.1% |
Fidelity Capital & Income Fund (b) | 11,226 | | 112,819 |
Fidelity Strategic Income Fund (b) | 10,193 | | 113,757 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 226,576 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 38.3% |
Fidelity Government Income Fund (b) | 78,465 | | $ 813,681 |
Fidelity Strategic Real Return Fund (b) | 84,147 | | 805,291 |
Fidelity Total Bond Fund (b) | 228,462 | | 2,439,971 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 4,058,943 |
TOTAL FIXED-INCOME FUNDS (Cost $4,273,073) |
4,285,519
|
Short-Term Funds - 25.9% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,372,691 | | 1,372,691 |
Fidelity Short-Term Bond Fund (b) | 159,542 | | 1,370,467 |
TOTAL SHORT-TERM FUNDS (Cost $2,740,201) |
2,743,158
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,030,780) | | 10,604,466 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (368) |
NET ASSETS - 100% | $ 10,604,098 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 178,161 | $ 222,600 | $ 91,090 | $ 2,908 | $ 328,196 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 232,000 | 341,446 | 127,648 | 313 | 449,169 |
Fidelity Blue Chip Growth Fund | 215,074 | 296,975 | 128,335 | 978 | 422,046 |
Fidelity Capital & Income Fund | 63,597 | 79,901 | 34,668 | 4,170 | 112,819 |
Fidelity Equity-Income Fund | 330,881 | 426,726 | 156,026 | 13,415 | 651,661 |
Fidelity Government Income Fund | 360,647 | 571,399 | 126,554 | 9,729 | 813,681 |
Fidelity Institutional Money Market Portfolio Institutional Class | 579,040 | 1,004,010 | 210,360 | 806 | 1,372,691 |
Fidelity Large Cap Stock Fund | 248,520 | 338,314 | 133,423 | 3,449 | 490,589 |
Fidelity Series 100 Index Fund | 214,593 | 271,417 | 102,079 | 5,460 | 428,462 |
Fidelity Series Broad Market Opportunities Fund | 380,009 | 490,484 | 204,957 | 2,219 | 743,479 |
Fidelity Series Small Cap Opportunities Fund | 33,052 | 48,542 | 17,592 | 10 | 62,187 |
Fidelity Short-Term Bond Fund | 579,345 | 999,579 | 210,362 | 8,846 | 1,370,467 |
Fidelity Strategic Income Fund | 63,542 | 79,280 | 30,911 | 3,540 | 113,757 |
Fidelity Strategic Real Return Fund | 360,654 | 556,094 | 126,553 | 12,140 | 805,291 |
Fidelity Total Bond Fund | 1,083,758 | 1,710,607 | 379,538 | 50,948 | 2,439,971 |
Total | $ 4,922,873 | $ 7,437,374 | $ 2,080,096 | $ 118,931 | $ 10,604,466 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $10,030,780) - See accompanying schedule | | $ 10,604,466 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 368 |
| | |
Net Assets | | $ 10,604,098 |
Net Assets consist of: | | |
Paid in capital | | $ 10,460,528 |
Undistributed net investment income | | 2,228 |
Accumulated undistributed net realized gain (loss) on investments | | (432,344) |
Net unrealized appreciation (depreciation) on investments | | 573,686 |
Net Assets | | $ 10,604,098 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($418,512 ÷ 7,289.28 shares) | | $ 57.41 |
| | |
Maximum offering price per share (100/94.25 of $57.41) | | $ 60.91 |
Class T:
Net Asset Value and redemption price per share ($26,437 ÷ 460.06 shares) | | $ 57.46 |
| | |
Maximum offering price per share (100/96.50 of $57.46) | | $ 59.54 |
| | |
Class C:
Net Asset Value and offering price per share ($324,906 ÷ 5,666.45 shares)A | | $ 57.34 |
| | |
Income Replacement 2022:
Net Asset Value, offering price and redemption price per share ($9,773,612 ÷ 170,235.99 shares) | | $ 57.41 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($60,631 ÷ 1,056.39 shares) | | $ 57.39 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 118,931 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,591 | |
Independent trustees' compensation | 28 | |
Total expenses before reductions | 2,619 | |
Expense reductions | (28) | 2,591 |
Net investment income (loss) | | 116,340 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 426 | |
Capital gain distributions from underlying funds | 108,882 | |
Total net realized gain (loss) | | 109,308 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 323,887 |
Net gain (loss) | | 433,195 |
Net increase (decrease) in net assets resulting from operations | | $ 549,535 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 116,340 | $ 83,094 |
Net realized gain (loss) | 109,308 | 106,528 |
Change in net unrealized appreciation (depreciation) | 323,887 | 240,421 |
Net increase (decrease) in net assets resulting from operations | 549,535 | 430,043 |
Distributions to shareholders from net investment income | (115,076) | (82,827) |
Distributions to shareholders from net realized gain | (15,270) | (22,022) |
Total distributions | (130,346) | (104,849) |
Share transactions - net increase (decrease) | 5,262,153 | 282,835 |
Total increase (decrease) in net assets | 5,681,342 | 608,029 |
| | |
Net Assets | | |
Beginning of period | 4,922,756 | 4,314,727 |
End of period (including undistributed net investment income of $2,228 and undistributed net investment income of $964, respectively) | $ 10,604,098 | $ 4,922,756 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.16 | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .708 | .825 | .783 | .817 | .815 |
Net realized and unrealized gain (loss) | 3.351 | 3.933 | .842 | 4.431 | 3.980 |
Total from investment operations | 4.059 | 4.758 | 1.625 | 5.248 | 4.795 |
Distributions from net investment income | (.686) | (.804) | (.784) | (.824) | (.793) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.809) | (1.058) | (.955) | (1.038) | (1.085) |
Net asset value, end of period | $ 57.41 | $ 54.16 | $ 50.46 | $ 49.79 | $ 45.58 |
Total ReturnA, B | 7.54% | 9.54% | 3.35% | 11.58% | 11.53% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.26% | 1.57% | 1.59% | 1.67% | 1.82% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 419 | $ 391 | $ 386 | $ 72 | $ 42 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.24 | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .581 | .686 | .653 | .691 | .702 |
Net realized and unrealized gain (loss) | 3.339 | 3.958 | .871 | 4.434 | 3.985 |
Total from investment operations | 3.920 | 4.644 | 1.524 | 5.125 | 4.687 |
Distributions from net investment income | (.577) | (.680) | (.643) | (.661) | (.685) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.700) | (.934) | (.814) | (.875) | (.977) |
Net asset value, end of period | $ 57.46 | $ 54.24 | $ 50.53 | $ 49.82 | $ 45.57 |
Total ReturnA, B | 7.26% | 9.29% | 3.13% | 11.30% | 11.27% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .49% F | .49%F | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% F | .49% F | .50% | .50% | .50% |
Expenses net of all reductions | .49% F | .49% F | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.30% | 1.34% | 1.43% | 1.57% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 26 | $ 1 | $ 5 | $ 23 | $ 77 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.13 | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .293 | .434 | .411 | .447 | .477 |
Net realized and unrealized gain (loss) | 3.354 | 3.919 | .845 | 4.434 | 3.989 |
Total from investment operations | 3.647 | 4.353 | 1.256 | 4.881 | 4.466 |
Distributions from net investment income | (.314) | (.459) | (.405) | (.437) | (.454) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.437) | (.713) | (.576) | (.651) | (.746) |
Net asset value, end of period | $ 57.34 | $ 54.13 | $ 50.49 | $ 49.81 | $ 45.58 |
Total ReturnA, B | 6.76% | 8.70% | 2.58% | 10.74% | 10.72% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .83% | .84% | .92% | 1.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 325 | $ 54 | $ 28 | $ 32 | $ 44 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2022
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.15 | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .851 | .956 | .901 | .937 | .925 |
Net realized and unrealized gain (loss) | 3.358 | 3.922 | .849 | 4.438 | 3.978 |
Total from investment operations | 4.209 | 4.878 | 1.750 | 5.375 | 4.903 |
Distributions from net investment income | (.826) | (.934) | (.899) | (.941) | (.921) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.949) | (1.188) | (1.070) | (1.155) | (1.213) |
Net asset value, end of period | $ 57.41 | $ 54.15 | $ 50.46 | $ 49.78 | $ 45.56 |
Total ReturnA | 7.82% | 9.80% | 3.62% | 11.87% | 11.80% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.51% | 1.82% | 1.84% | 1.92% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 9,774 | $ 4,474 | $ 3,892 | $ 3,266 | $ 2,395 |
Portfolio turnover rate C | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.14 | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | .957 | .900 | .937 | .918 |
Net realized and unrealized gain (loss) | 3.343 | 3.921 | .850 | 4.428 | 3.995 |
Total from investment operations | 4.199 | 4.878 | 1.750 | 5.365 | 4.913 |
Distributions from net investment income | (.826) | (.934) | (.899) | (.941) | (.921) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.949) | (1.188) | (1.070) | (1.155) | (1.213) |
Net asset value, end of period | $ 57.39 | $ 54.14 | $ 50.45 | $ 49.77 | $ 45.56 |
Total ReturnA | 7.81% | 9.80% | 3.62% | 11.85% | 11.83% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.51% | 1.82% | 1.84% | 1.92% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 61 | $ 4 | $ 3 | $ 4 | $ 5 |
Portfolio turnover rate C | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.9 | 5.0 |
Fidelity Blue Chip Growth Fund | 4.6 | 4.8 |
Fidelity Equity-Income Fund | 7.1 | 7.3 |
Fidelity Large Cap Stock Fund | 5.4 | 5.4 |
Fidelity Series 100 Index Fund | 4.7 | 4.7 |
Fidelity Series Broad Market Opportunities Fund | 8.2 | 8.4 |
Fidelity Series Small Cap Opportunities Fund | 0.7 | 0.7 |
| 35.6 | 36.3 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 4.0 | 4.2 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.5 | 1.6 |
Fidelity Strategic Income Fund | 1.5 | 1.6 |
| 3.0 | 3.2 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.1 | 7.1 |
Fidelity Strategic Real Return Fund | 7.1 | 7.1 |
Fidelity Total Bond Fund | 21.5 | 21.3 |
| 35.7 | 35.5 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 10.9 | 10.4 |
Fidelity Short-Term Bond Fund | 10.8 | 10.4 |
| 21.7 | 20.8 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 35.6% | |
| International Equity Funds | 4.0% | |
| High Yield Fixed-Income Funds | 3.0% | |
| Investment Grade Fixed-Income Funds | 35.7% | |
| Short-Term Funds | 21.7% | |
Six months ago |
| Domestic Equity Funds | 36.3% | |
| International Equity Funds | 4.2% | |
| High Yield Fixed-Income Funds | 3.2% | |
| Investment Grade Fixed-Income Funds | 35.5% | |
| Short-Term Funds | 20.8% | |
Expected |
| Domestic Equity Funds | 34.8% | |
| International Equity Funds | 3.9% | |
| High Yield Fixed-Income Funds | 2.8% | |
| Investment Grade Fixed-Income Funds | 36.1% | |
| Short-Term Funds | 22.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2024 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 39.6% |
| Shares | | Value |
Domestic Equity Funds - 35.6% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 17,201 | | $ 364,312 |
Fidelity Blue Chip Growth Fund (b) | 5,133 | | 342,422 |
Fidelity Equity-Income Fund (b) | 8,624 | | 528,460 |
Fidelity Large Cap Stock Fund (b) | 14,376 | | 398,224 |
Fidelity Series 100 Index Fund (b) | 27,347 | | 347,848 |
Fidelity Series Broad Market Opportunities Fund (b) | 39,300 | | 603,649 |
Fidelity Series Small Cap Opportunities Fund (b) | 3,896 | | 50,493 |
TOTAL DOMESTIC EQUITY FUNDS | | 2,635,408 |
International Equity Funds - 4.0% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 7,463 | | 297,865 |
TOTAL EQUITY FUNDS (Cost $2,508,764) |
2,933,273
|
Fixed-Income Funds - 38.7% |
| | | |
High Yield Fixed-Income Funds - 3.0% |
Fidelity Capital & Income Fund (b) | 11,107 | | 111,626 |
Fidelity Strategic Income Fund (b) | 10,087 | | 112,565 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 224,191 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 35.7% |
Fidelity Government Income Fund (b) | 51,191 | | $ 530,848 |
Fidelity Strategic Real Return Fund (b) | 54,882 | | 525,221 |
Fidelity Total Bond Fund (b) | 149,126 | | 1,592,669 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,648,738 |
TOTAL FIXED-INCOME FUNDS (Cost $2,849,362) |
2,872,929
|
Short-Term Funds - 21.7% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 804,815 | | 804,815 |
Fidelity Short-Term Bond Fund (b) | 93,538 | | 803,492 |
TOTAL SHORT-TERM FUNDS (Cost $1,606,215) |
1,608,307
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,964,341) | | 7,414,509 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (257) |
NET ASSETS - 100% | $ 7,414,252 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 130,259 | $ 238,885 | $ 86,374 | $ 2,464 | $ 297,865 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 152,094 | 315,715 | 106,019 | 242 | 364,312 |
Fidelity Blue Chip Growth Fund | 140,772 | 276,127 | 106,491 | 739 | 342,422 |
Fidelity Capital & Income Fund | 48,152 | 92,101 | 32,347 | 3,843 | 111,626 |
Fidelity Equity-Income Fund | 216,692 | 410,995 | 137,777 | 10,389 | 528,460 |
Fidelity Government Income Fund | 196,513 | 420,343 | 91,818 | 6,243 | 530,848 |
Fidelity Institutional Money Market Portfolio Institutional Class | 284,337 | 649,035 | 128,557 | 462 | 804,815 |
Fidelity Large Cap Stock Fund | 162,826 | 319,348 | 112,253 | 2,693 | 398,224 |
Fidelity Series 100 Index Fund | 140,457 | 264,532 | 91,467 | 4,083 | 347,848 |
Fidelity Series Broad Market Opportunities Fund | 249,252 | 466,541 | 173,843 | 1,713 | 603,649 |
Fidelity Series Small Cap Opportunities Fund | 21,797 | 44,355 | 14,317 | 8 | 50,493 |
Fidelity Short-Term Bond Fund | 284,490 | 647,716 | 129,868 | 5,093 | 803,492 |
Fidelity Strategic Income Fund | 48,111 | 90,962 | 28,307 | 3,267 | 112,565 |
Fidelity Strategic Real Return Fund | 196,512 | 419,496 | 101,123 | 7,898 | 525,221 |
Fidelity Total Bond Fund | 589,994 | 1,259,591 | 275,066 | 32,579 | 1,592,669 |
Total | $ 2,862,258 | $ 5,915,742 | $ 1,615,627 | $ 81,716 | $ 7,414,509 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,964,341) - See accompanying schedule | | $ 7,414,509 |
Receivable for investments sold | | 1 |
Total assets | | 7,414,510 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 258 |
| | |
Net Assets | | $ 7,414,252 |
Net Assets consist of: | | |
Paid in capital | | $ 6,936,406 |
Undistributed net investment income | | 1,495 |
Accumulated undistributed net realized gain (loss) on investments | | 26,183 |
Net unrealized appreciation (depreciation) on investments | | 450,168 |
Net Assets | | $ 7,414,252 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($220,063 ÷ 3,776.13 shares) | | $ 58.28 |
| | |
Maximum offering price per share (100/94.25 of $58.28) | | $ 61.84 |
Class T:
Net Asset Value and redemption price per share ($190,491 ÷ 3,269.05 shares) | | $ 58.27 |
| | |
Maximum offering price per share (100/96.50 of $58.27) | | $ 60.38 |
| | |
Class C:
Net Asset Value and offering price per share ($155,611 ÷ 2,677.87 shares)A | | $ 58.11 |
| | |
Income Replacement 2024:
Net Asset Value, offering price and redemption price per share ($6,818,492 ÷ 117,023.33 shares) | | $ 58.27 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,595 ÷ 507.95 shares) | | $ 58.26 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 81,716 |
| | |
Expenses | | |
Distribution and service plan fees | $ 3,150 | |
Independent trustees' compensation | 19 | |
Total expenses before reductions | 3,169 | |
Expense reductions | (19) | 3,150 |
Net investment income (loss) | | 78,566 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (2,406) | |
Capital gain distributions from underlying funds | 82,811 | |
Total net realized gain (loss) | | 80,405 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 254,535 |
Net gain (loss) | | 334,940 |
Net increase (decrease) in net assets resulting from operations | | $ 413,506 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 78,566 | $ 42,257 |
Net realized gain (loss) | 80,405 | 74,340 |
Change in net unrealized appreciation (depreciation) | 254,535 | 131,901 |
Net increase (decrease) in net assets resulting from operations | 413,506 | 248,498 |
Distributions to shareholders from net investment income | (77,576) | (42,100) |
Distributions to shareholders from net realized gain | (28,499) | (9,399) |
Total distributions | (106,075) | (51,499) |
Share transactions - net increase (decrease) | 4,244,822 | 561,492 |
Total increase (decrease) in net assets | 4,552,253 | 758,491 |
| | |
Net Assets | | |
Beginning of period | 2,861,999 | 2,103,508 |
End of period (including undistributed net investment income of $1,495 and undistributed net investment income of $505, respectively) | $ 7,414,252 | $ 2,861,999 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .718 | .840 | .821 | .809 | .811 |
Net realized and unrealized gain (loss) | 3.808 | 4.571 | .771 | 4.667 | 4.020 |
Total from investment operations | 4.526 | 5.411 | 1.592 | 5.476 | 4.831 |
Distributions from net investment income | (.677) | (.900) | (.794) | (.819) | (.791) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.016) | (1.121) | (.962) | (1.036) | (.901) |
Net asset value, end of period | $ 58.28 | $ 54.77 | $ 50.48 | $ 49.85 | $ 45.41 |
Total ReturnA, B | 8.32% | 10.86% | 3.29% | 12.13% | 11.70% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.59% | 1.68% | 1.66% | 1.82% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 220 | $ 424 | $ 213 | $ 187 | $ 260 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.78 | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .579 | .706 | .699 | .685 | .701 |
Net realized and unrealized gain (loss) | 3.796 | 4.576 | .769 | 4.672 | 4.025 |
Total from investment operations | 4.375 | 5.282 | 1.468 | 5.357 | 4.726 |
Distributions from net investment income | (.546) | (.771) | (.680) | (.690) | (.676) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (.885) | (.992) | (.848) | (.907) | (.786) |
Net asset value, end of period | $ 58.27 | $ 54.78 | $ 50.49 | $ 49.87 | $ 45.42 |
Total ReturnA, B | 8.04% | 10.59% | 3.03% | 11.85% | 11.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.34% | 1.43% | 1.41% | 1.57% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 190 | $ 190 | $ 175 | $ 40 | $ 54 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.66 | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .295 | .444 | .454 | .443 | .476 |
Net realized and unrealized gain (loss) | 3.791 | 4.564 | .761 | 4.668 | 4.020 |
Total from investment operations | 4.086 | 5.008 | 1.215 | 5.111 | 4.496 |
Distributions from net investment income | (.297) | (.557) | (.437) | (.454) | (.456) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (.636) | (.778) | (.605) | (.671) | (.566) |
Net asset value, end of period | $ 58.11 | $ 54.66 | $ 50.43 | $ 49.82 | $ 45.38 |
Total ReturnA, B | 7.51% | 10.03% | 2.50% | 11.30% | 10.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .84% | .93% | .91% | 1.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 156 | $ 113 | $ 170 | $ 172 | $ 159 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2024
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .866 | .969 | .942 | .933 | .924 |
Net realized and unrealized gain (loss) | 3.805 | 4.563 | .775 | 4.668 | 4.020 |
Total from investment operations | 4.671 | 5.532 | 1.717 | 5.601 | 4.944 |
Distributions from net investment income | (.832) | (1.031) | (.919) | (.944) | (.904) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.171) | (1.252) | (1.087) | (1.161) | (1.014) |
Net asset value, end of period | $ 58.27 | $ 54.77 | $ 50.49 | $ 49.86 | $ 45.42 |
Total ReturnA | 8.60% | 11.12% | 3.55% | 12.41% | 11.98% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.84% | 1.93% | 1.91% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,818 | $ 2,108 | $ 1,521 | $ 1,463 | $ 1,026 |
Portfolio turnover rate C | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .863 | .969 | .944 | .930 | .922 |
Net realized and unrealized gain (loss) | 3.798 | 4.573 | .763 | 4.671 | 4.032 |
Total from investment operations | 4.661 | 5.542 | 1.707 | 5.601 | 4.954 |
Distributions from net investment income | (.832) | (1.031) | (.919) | (.944) | (.904) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.171) | (1.252) | (1.087) | (1.161) | (1.014) |
Net asset value, end of period | $ 58.26 | $ 54.77 | $ 50.48 | $ 49.86 | $ 45.42 |
Total ReturnA | 8.58% | 11.14% | 3.53% | 12.41% | 12.00% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.84% | 1.93% | 1.91% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30 | $ 27 | $ 25 | $ 28 | $ 37 |
Portfolio turnover rate C | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2026 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.4 | 5.5 |
Fidelity Blue Chip Growth Fund | 5.1 | 5.2 |
Fidelity Equity-Income Fund | 7.8 | 7.9 |
Fidelity Large Cap Stock Fund | 5.9 | 5.8 |
Fidelity Series 100 Index Fund | 5.2 | 5.1 |
Fidelity Series Broad Market Opportunities Fund | 8.9 | 9.1 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 39.1 | 39.4 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 4.9 | 5.0 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.8 | 1.9 |
Fidelity Strategic Income Fund | 1.9 | 2.0 |
| 3.7 | 3.9 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.7 | 6.7 |
Fidelity Strategic Real Return Fund | 6.7 | 6.7 |
Fidelity Total Bond Fund | 20.2 | 20.1 |
| 33.6 | 33.5 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 9.4 | 9.1 |
Fidelity Short-Term Bond Fund | 9.3 | 9.1 |
| 18.7 | 18.2 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 39.1% | |
| International Equity Funds | 4.9% | |
| High Yield Fixed-Income Funds | 3.7% | |
| Investment Grade Fixed-Income Funds | 33.6% | |
| Short-Term Funds | 18.7% | |
Six months ago |
| Domestic Equity Funds | 39.4% | |
| International Equity Funds | 5.0% | |
| High Yield Fixed-Income Funds | 3.9% | |
| Investment Grade Fixed-Income Funds | 33.5% | |
| Short-Term Funds | 18.2% | |
Expected |
| Domestic Equity Funds | 38.6% | |
| International Equity Funds | 4.8% | |
| High Yield Fixed-Income Funds | 3.6% | |
| Investment Grade Fixed-Income Funds | 33.8% | |
| Short-Term Funds | 19.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2026 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 44.0% |
| Shares | | Value |
Domestic Equity Funds - 39.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 10,973 | | $ 232,405 |
Fidelity Blue Chip Growth Fund (b) | 3,277 | | 218,622 |
Fidelity Equity-Income Fund (b) | 5,509 | | 337,591 |
Fidelity Large Cap Stock Fund (b) | 9,179 | | 254,270 |
Fidelity Series 100 Index Fund (b) | 17,466 | | 222,168 |
Fidelity Series Broad Market Opportunities Fund (b) | 25,054 | | 384,827 |
Fidelity Series Small Cap Opportunities Fund (b) | 2,484 | | 32,194 |
TOTAL DOMESTIC EQUITY FUNDS | | 1,682,077 |
International Equity Funds - 4.9% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 5,287 | | 210,994 |
TOTAL EQUITY FUNDS (Cost $1,578,763) |
1,893,071
|
Fixed-Income Funds - 37.3% |
| | | |
High Yield Fixed-Income Funds - 3.7% |
Fidelity Capital & Income Fund (b) | 7,870 | | 79,097 |
Fidelity Strategic Income Fund (b) | 7,148 | | 79,769 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 158,866 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 33.6% |
Fidelity Government Income Fund (b) | 27,997 | | $ 290,332 |
Fidelity Strategic Real Return Fund (b) | 30,013 | | 287,224 |
Fidelity Total Bond Fund (b) | 81,404 | | 869,392 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 1,446,948 |
TOTAL FIXED-INCOME FUNDS (Cost $1,597,401) |
1,605,814
|
Short-Term Funds - 18.7% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 403,677 | | 403,677 |
Fidelity Short-Term Bond Fund (b) | 46,916 | | 403,012 |
TOTAL SHORT-TERM FUNDS (Cost $805,484) |
806,689
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,981,648) | | 4,305,574 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (159) |
NET ASSETS - 100% | $ 4,305,415 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 116,306 | $ 138,069 | $ 55,931 | $ 2,032 | $ 210,994 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 122,791 | 170,742 | 62,841 | 176 | 232,405 |
Fidelity Blue Chip Growth Fund | 113,623 | 147,478 | 64,256 | 563 | 218,622 |
Fidelity Capital & Income Fund | 42,166 | 53,275 | 19,282 | 2,990 | 79,097 |
Fidelity Equity-Income Fund | 174,916 | 215,926 | 80,406 | 7,318 | 337,591 |
Fidelity Government Income Fund | 139,572 | 198,275 | 51,037 | 3,807 | 290,332 |
Fidelity Institutional Money Market Portfolio Institutional Class | 187,282 | 285,157 | 68,762 | 262 | 403,677 |
Fidelity Large Cap Stock Fund | 131,270 | 167,238 | 65,509 | 1,874 | 254,270 |
Fidelity Series 100 Index Fund | 113,368 | 136,468 | 51,936 | 3,028 | 222,168 |
Fidelity Series Broad Market Opportunities Fund | 201,073 | 241,697 | 101,814 | 1,247 | 384,827 |
Fidelity Series Small Cap Opportunities Fund | 17,439 | 24,480 | 8,713 | 6 | 32,194 |
Fidelity Short-Term Bond Fund | 187,589 | 284,619 | 70,066 | 2,866 | 403,012 |
Fidelity Strategic Income Fund | 42,132 | 53,994 | 17,690 | 2,537 | 79,769 |
Fidelity Strategic Real Return Fund | 139,573 | 197,421 | 56,197 | 4,763 | 287,224 |
Fidelity Total Bond Fund | 419,449 | 592,462 | 153,021 | 20,004 | 869,392 |
Total | $ 2,148,549 | $ 2,907,301 | $ 927,461 | $ 53,473 | $ 4,305,574 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2026 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $3,981,648) - See accompanying schedule | | $ 4,305,574 |
Receivable for investments sold | | 2,162 |
Receivable for fund shares sold | | 19,997 |
Total assets | | 4,327,733 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,778 | |
Payable for fund shares redeemed | 2,387 | |
Distribution and service plan fees payable | 153 | |
Total liabilities | | 22,318 |
| | |
Net Assets | | $ 4,305,415 |
Net Assets consist of: | | |
Paid in capital | | $ 4,104,117 |
Undistributed net investment income | | 821 |
Accumulated undistributed net realized gain (loss) on investments | | (123,449) |
Net unrealized appreciation (depreciation) on investments | | 323,926 |
Net Assets | | $ 4,305,415 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($526,026 ÷ 8,949.10 shares) | | $ 58.78 |
| | |
Maximum offering price per share (100/94.25 of $58.78) | | $ 62.37 |
Class T:
Net Asset Value and redemption price per share ($39,322 ÷ 668.36 shares) | | $ 58.83 |
| | |
Maximum offering price per share (100/96.50 of $58.83) | | $ 60.96 |
| | |
Class C:
Net Asset Value and offering price per share ($32,961 ÷ 561.58 shares)A | | $ 58.69 |
| | |
Income Replacement 2026:
Net Asset Value, offering price and redemption price per share ($3,677,301 ÷ 62,548.31 shares) | | $ 58.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,805 ÷ 506.97 shares) | | $ 58.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 53,473 |
| | |
Expenses | | |
Distribution and service plan fees | $ 1,692 | |
Independent trustees' compensation | 13 | |
Total expenses before reductions | 1,705 | |
Expense reductions | (13) | 1,692 |
Net investment income (loss) | | 51,781 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (6,274) | |
Capital gain distributions from underlying funds | 59,550 | |
Total net realized gain (loss) | | 53,276 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 183,459 |
Net gain (loss) | | 236,735 |
Net increase (decrease) in net assets resulting from operations | | $ 288,516 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 51,781 | $ 37,055 |
Net realized gain (loss) | 53,276 | 58,944 |
Change in net unrealized appreciation (depreciation) | 183,459 | 132,987 |
Net increase (decrease) in net assets resulting from operations | 288,516 | 228,986 |
Distributions to shareholders from net investment income | (51,362) | (36,935) |
Distributions to shareholders from net realized gain | (8,328) | (8,863) |
Total distributions | (59,690) | (45,798) |
Share transactions - net increase (decrease) | 1,928,159 | 186,174 |
Total increase (decrease) in net assets | 2,156,985 | 369,362 |
| | |
Net Assets | | |
Beginning of period | 2,148,430 | 1,779,068 |
End of period (including undistributed net investment income of $821 and undistributed net investment income of $401, respectively) | $ 4,305,415 | $ 2,148,430 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .735 | .906 | .793 | .750 | .743 |
Net realized and unrealized gain (loss) | 4.084 | 4.920 | .712 | 4.846 | 4.098 |
Total from investment operations | 4.819 | 5.826 | 1.505 | 5.596 | 4.841 |
Distributions from net investment income | (.708) | (.879) | (.789) | (.796) | (.771) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.849) | (1.106) | (.945) | (.996) | (.881) |
Net asset value, end of period | $ 58.78 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.93 |
Total ReturnA, B | 8.84% | 11.79% | 3.13% | 12.52% | 11.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.28% | 1.73% | 1.64% | 1.55% | 1.68% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 526 | $ 304 | $ 139 | $ 108 | $ 45 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.82 | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .587 | .781 | .668 | .630 | .638 |
Net realized and unrealized gain (loss) | 4.098 | 4.911 | .713 | 4.851 | 4.092 |
Total from investment operations | 4.685 | 5.692 | 1.381 | 5.481 | 4.730 |
Distributions from net investment income | (.534) | (.725) | (.675) | (.671) | (.670) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.675) | (.952) | (.831) | (.871) | (.780) |
Net asset value, end of period | $ 58.83 | $ 54.82 | $ 50.08 | $ 49.53 | $ 44.92 |
Total ReturnA, B | 8.58% | 11.50% | 2.87% | 12.26% | 11.59% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.03% | 1.48% | 1.39% | 1.30% | 1.44% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39 | $ 85 | $ 298 | $ 130 | $ 116 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.76 | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .303 | .508 | .430 | .387 | .412 |
Net realized and unrealized gain (loss) | 4.086 | 4.915 | .730 | 4.848 | 4.087 |
Total from investment operations | 4.389 | 5.423 | 1.160 | 5.235 | 4.499 |
Distributions from net investment income | (.318) | (.556) | (.374) | (.435) | (.449) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.459) | (.783) | (.530) | (.635) | (.559) |
Net asset value, end of period | $ 58.69 | $ 54.76 | $ 50.12 | $ 49.49 | $ 44.89 |
Total ReturnA, B | 8.04% | 10.93% | 2.40% | 11.70% | 11.01% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .53% | .97% | .89% | .80% | .94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 33 | $ 31 | $ 9 | $ 184 | $ 174 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2026
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss)B | .878 | 1.040 | .913 | .878 | .856 |
Net realized and unrealized gain (loss) | 4.094 | 4.914 | .711 | 4.844 | 4.091 |
Total from investment operations | 4.972 | 5.954 | 1.624 | 5.722 | 4.947 |
Distributions from net investment income | (.851) | (1.007) | (.908) | (.912) | (.887) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.992) | (1.234) | (1.064) | (1.112) | (.997) |
Net asset value, end of period | $ 58.79 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 |
Total ReturnA | 9.13% | 12.06% | 3.39% | 12.82% | 12.14% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 1.98% | 1.88% | 1.80% | 1.94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,677 | $ 1,702 | $ 1,309 | $ 1,666 | $ 622 |
Portfolio turnover rate C | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .877 | 1.039 | .912 | .870 | .855 |
Net realized and unrealized gain (loss) | 4.095 | 4.915 | .712 | 4.852 | 4.092 |
Total from investment operations | 4.972 | 5.954 | 1.624 | 5.722 | 4.947 |
Distributions from net investment income | (.851) | (1.007) | (.908) | (.912) | (.887) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.992) | (1.234) | (1.064) | (1.112) | (.997) |
Net asset value, end of period | $ 58.79 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 |
Total ReturnA | 9.13% | 12.06% | 3.39% | 12.82% | 12.14% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 1.98% | 1.88% | 1.80% | 1.94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30 | $ 27 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.7 | 5.8 |
Fidelity Blue Chip Growth Fund | 5.4 | 5.4 |
Fidelity Equity-Income Fund | 8.3 | 8.3 |
Fidelity Large Cap Stock Fund | 6.2 | 6.2 |
Fidelity Series 100 Index Fund | 5.4 | 5.3 |
Fidelity Series Broad Market Opportunities Fund | 9.5 | 9.6 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 41.3 | 41.4 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 5.7 | 5.8 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.0 | 2.1 |
Fidelity Strategic Income Fund | 2.1 | 2.2 |
| 4.1 | 4.3 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.4 | 6.4 |
Fidelity Strategic Real Return Fund | 6.4 | 6.4 |
Fidelity Total Bond Fund | 19.3 | 19.1 |
| 32.1 | 31.9 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 8.4 | 8.3 |
Fidelity Short-Term Bond Fund | 8.4 | 8.3 |
| 16.8 | 16.6 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 41.3% | |
| International Equity Funds | 5.7% | |
| High Yield Fixed-Income Funds | 4.1% | |
| Investment Grade Fixed-Income Funds | 32.1% | |
| Short-Term Funds | 16.8% | |
Six months ago |
| Domestic Equity Funds | 41.4% | |
| International Equity Funds | 5.8% | |
| High Yield Fixed-Income Funds | 4.3% | |
| Investment Grade Fixed-Income Funds | 31.9% | |
| Short-Term Funds | 16.6% | |
Expected |
| Domestic Equity Funds | 41.3% | |
| International Equity Funds | 5.6% | |
| High Yield Fixed-Income Funds | 4.0% | |
| Investment Grade Fixed-Income Funds | 32.1% | |
| Short-Term Funds | 17.0% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2028 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 47.0% |
| Shares | | Value |
Domestic Equity Funds - 41.3% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 61,791 | | $ 1,308,725 |
Fidelity Blue Chip Growth Fund (b) | 18,421 | | 1,228,892 |
Fidelity Equity-Income Fund (b) | 30,988 | | 1,898,967 |
Fidelity Large Cap Stock Fund (b) | 51,633 | | 1,430,243 |
Fidelity Series 100 Index Fund (b) | 98,080 | | 1,247,581 |
Fidelity Series Broad Market Opportunities Fund (b) | 141,073 | | 2,166,880 |
Fidelity Series Small Cap Opportunities Fund (b) | 14,098 | | 182,716 |
TOTAL DOMESTIC EQUITY FUNDS | | 9,464,004 |
International Equity Funds - 5.7% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 32,745 | | 1,306,846 |
TOTAL EQUITY FUNDS (Cost $9,548,187) |
10,770,850
|
Fixed-Income Funds - 36.2% |
| | | |
High Yield Fixed-Income Funds - 4.1% |
Fidelity Capital & Income Fund (b) | 47,189 | | 474,251 |
Fidelity Strategic Income Fund (b) | 42,851 | | 478,222 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 952,473 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 32.1% |
Fidelity Government Income Fund (b) | 142,272 | | $ 1,475,362 |
Fidelity Strategic Real Return Fund (b) | 152,568 | | 1,460,077 |
Fidelity Total Bond Fund (b) | 413,660 | | 4,417,893 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 7,353,332 |
TOTAL FIXED-INCOME FUNDS (Cost $8,267,505) |
8,305,805
|
Short-Term Funds - 16.8% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,928,320 | | 1,928,320 |
Fidelity Short-Term Bond Fund (b) | 224,128 | | 1,925,259 |
TOTAL SHORT-TERM FUNDS (Cost $3,847,238) |
3,853,579
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $21,662,930) | | 22,930,234 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | 742 |
NET ASSETS - 100% | $ 22,930,976 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 499,848 | $ 929,489 | $ 169,640 | $ 6,600 | $ 1,306,846 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 480,592 | 989,148 | 174,789 | 518 | 1,308,725 |
Fidelity Blue Chip Growth Fund | 444,607 | 895,367 | 185,775 | 1,909 | 1,228,892 |
Fidelity Capital & Income Fund | 173,936 | 340,299 | 47,259 | 11,612 | 474,251 |
Fidelity Equity-Income Fund | 684,505 | 1,313,296 | 191,792 | 27,793 | 1,898,967 |
Fidelity Government Income Fund | 497,527 | 1,075,142 | 106,779 | 12,712 | 1,475,362 |
Fidelity Institutional Money Market Portfolio Institutional Class | 642,394 | 1,420,816 | 134,891 | 845 | 1,928,320 |
Fidelity Large Cap Stock Fund | 514,724 | 1,024,923 | 172,363 | 7,081 | 1,430,243 |
Fidelity Series 100 Index Fund | 443,617 | 849,023 | 134,232 | 9,316 | 1,247,581 |
Fidelity Series Broad Market Opportunities Fund | 787,235 | 1,498,547 | 266,705 | 3,668 | 2,166,880 |
Fidelity Series Small Cap Opportunities Fund | 68,500 | 144,861 | 24,921 | 17 | 182,716 |
Fidelity Short-Term Bond Fund | 642,734 | 1,416,727 | 134,953 | 9,197 | 1,925,259 |
Fidelity Strategic Income Fund | 173,797 | 341,675 | 41,404 | 9,868 | 478,222 |
Fidelity Strategic Real Return Fund | 497,534 | 1,068,376 | 114,886 | 17,677 | 1,460,077 |
Fidelity Total Bond Fund | 1,492,003 | 3,225,023 | 323,263 | 66,707 | 4,417,893 |
Total | $ 8,043,553 | $ 16,532,712 | $ 2,223,652 | $ 185,520 | $ 22,930,234 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $21,662,930) - See accompanying schedule | | $ 22,930,234 |
Receivable for investments sold | | 50,960 |
Receivable for fund shares sold | | 1,022 |
Total assets | | 22,982,216 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 50,924 | |
Distribution and service plan fees payable | 316 | |
Total liabilities | | 51,240 |
| | |
Net Assets | | $ 22,930,976 |
Net Assets consist of: | | |
Paid in capital | | $ 21,893,235 |
Undistributed net investment income | | 4,387 |
Accumulated undistributed net realized gain (loss) on investments | | (233,950) |
Net unrealized appreciation (depreciation) on investments | | 1,267,304 |
Net Assets | | $ 22,930,976 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($698,740 ÷ 11,692.25 shares) | | $ 59.76 |
| | |
Maximum offering price per share (100/94.25 of $59.76) | | $ 63.41 |
Class T:
Net Asset Value and redemption price per share ($337,983 ÷ 5,655.14 shares) | | $ 59.77 |
| | |
Maximum offering price per share (100/96.50 of $59.77) | | $ 61.94 |
| | |
Class C:
Net Asset Value and offering price per share ($37,286 ÷ 625.11 shares)A | | $ 59.65 |
| | |
Income Replacement 2028:
Net Asset Value, offering price and redemption price per share ($21,765,588 ÷ 364,232.07 shares) | | $ 59.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($91,379 ÷ 1,529.10 shares) | | $ 59.76 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 185,520 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,346 | |
Independent trustees' compensation | 43 | |
Total expenses before reductions | 2,389 | |
Expense reductions | (43) | 2,346 |
Net investment income (loss) | | 183,174 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 17,411 | |
Capital gain distributions from underlying funds | 198,632 | |
Total net realized gain (loss) | | 216,043 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 560,204 |
Net gain (loss) | | 776,247 |
Net increase (decrease) in net assets resulting from operations | | $ 959,421 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 183,174 | $ 124,877 |
Net realized gain (loss) | 216,043 | 190,275 |
Change in net unrealized appreciation (depreciation) | 560,204 | 480,221 |
Net increase (decrease) in net assets resulting from operations | 959,421 | 795,373 |
Distributions to shareholders from net investment income | (180,281) | (124,207) |
Distributions to shareholders from net realized gain | (25,118) | (26,559) |
Total distributions | (205,399) | (150,766) |
Share transactions - net increase (decrease) | 14,133,535 | 1,675,414 |
Total increase (decrease) in net assets | 14,887,557 | 2,320,021 |
| | |
Net Assets | | |
Beginning of period | 8,043,419 | 5,723,398 |
End of period (including undistributed net investment income of $4,387 and undistributed net investment income of $1,493, respectively) | $ 22,930,976 | $ 8,043,419 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .733 | .868 | .792 | .802 | .789 |
Net realized and unrealized gain (loss) | 4.363 | 5.348 | .666 | 4.972 | 4.116 |
Total from investment operations | 5.096 | 6.216 | 1.458 | 5.774 | 4.905 |
Distributions from net investment income | (.713) | (.879) | (.794) | (.815) | (.785) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.876) | (1.106) | (.948) | (1.024) | (.895) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.43 | $ 49.92 | $ 45.17 |
Total ReturnA, B | 9.23% | 12.49% | 3.02% | 12.85% | 11.96% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.25% | 1.64% | 1.63% | 1.65% | 1.78% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 699 | $ 122 | $ 133 | $ 133 | $ 359 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.55 | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .580 | .738 | .672 | .682 | .678 |
Net realized and unrealized gain (loss) | 4.379 | 5.346 | .678 | 4.975 | 4.107 |
Total from investment operations | 4.959 | 6.084 | 1.350 | 5.657 | 4.785 |
Distributions from net investment income | (.576) | (.767) | (.676) | (.668) | (.675) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.739) | (.994) | (.830) | (.877) | (.785) |
Net asset value, end of period | $ 59.77 | $ 55.55 | $ 50.46 | $ 49.94 | $ 45.16 |
Total ReturnA, B | 8.97% | 12.21% | 2.79% | 12.57% | 11.66% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.00% | 1.39% | 1.38% | 1.40% | 1.53% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 338 | $ 326 | $ 128 | $ 130 | $ 328 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.49 | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .293 | .471 | .427 | .438 | .454 |
Net realized and unrealized gain (loss) | 4.369 | 5.346 | .662 | 4.974 | 4.117 |
Total from investment operations | 4.662 | 5.817 | 1.089 | 5.412 | 4.571 |
Distributions from net investment income | (.339) | (.540) | (.435) | (.453) | (.431) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.502) | (.767) | (.589) | (.662) | (.541) |
Net asset value, end of period | $ 59.65 | $ 55.49 | $ 50.44 | $ 49.94 | $ 45.19 |
Total ReturnA, B | 8.43% | 11.65% | 2.24% | 12.01% | 11.13% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .50% | .89% | .88% | .90% | 1.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 37 | $ 18 | $ 33 | $ 49 | $ 51 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2028
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .874 | 1.003 | .914 | .925 | .900 |
Net realized and unrealized gain (loss) | 4.376 | 5.340 | .680 | 4.965 | 4.115 |
Total from investment operations | 5.250 | 6.343 | 1.594 | 5.890 | 5.015 |
Distributions from net investment income | (.867) | (1.016) | (.920) | (.941) | (.895) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (1.030) | (1.243) | (1.074) | (1.150) | (1.005) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 |
Total ReturnA | 9.52% | 12.76% | 3.30% | 13.12% | 12.24% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.50% | 1.89% | 1.88% | 1.90% | 2.03% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21,766 | $ 7,494 | $ 5,405 | $ 5,783 | $ 5,383 |
Portfolio turnover rate C | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .871 | 1.011 | .916 | .923 | .899 |
Net realized and unrealized gain (loss) | 4.379 | 5.332 | .678 | 4.967 | 4.116 |
Total from investment operations | 5.250 | 6.343 | 1.594 | 5.890 | 5.015 |
Distributions from net investment income | (.867) | (1.016) | (.920) | (.941) | (.895) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (1.030) | (1.243) | (1.074) | (1.150) | (1.005) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 |
Total ReturnA | 9.52% | 12.76% | 3.30% | 13.12% | 12.24% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.50% | 1.89% | 1.88% | 1.90% | 2.03% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 91 | $ 83 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2030 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.9 | 6.0 |
Fidelity Blue Chip Growth Fund | 5.6 | 5.6 |
Fidelity Equity-Income Fund | 8.6 | 8.6 |
Fidelity Large Cap Stock Fund | 6.5 | 6.4 |
Fidelity Series 100 Index Fund | 5.6 | 5.5 |
Fidelity Series Broad Market Opportunities Fund | 9.8 | 9.9 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.9 |
| 42.8 | 42.9 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 6.5 | 6.6 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.2 | 2.3 |
Fidelity Strategic Income Fund | 2.3 | 2.3 |
| 4.5 | 4.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.2 | 6.2 |
Fidelity Strategic Real Return Fund | 6.1 | 6.1 |
Fidelity Total Bond Fund | 18.4 | 18.5 |
| 30.7 | 30.8 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 7.8 | 7.5 |
Fidelity Short-Term Bond Fund | 7.7 | 7.6 |
| 15.5 | 15.1 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 42.8% | |
| International Equity Funds | 6.5% | |
| High Yield Fixed-Income Funds | 4.5% | |
| Investment Grade Fixed-Income Funds | 30.7% | |
| Short-Term Funds | 15.5% | |
Six months ago |
| Domestic Equity Funds | 42.9% | |
| International Equity Funds | 6.6% | |
| High Yield Fixed-Income Funds | 4.6% | |
| Investment Grade Fixed-Income Funds | 30.8% | |
| Short-Term Funds | 15.1% | |
Expected |
| Domestic Equity Funds | 43.0% | |
| International Equity Funds | 6.4% | |
| High Yield Fixed-Income Funds | 4.4% | |
| Investment Grade Fixed-Income Funds | 30.6% | |
| Short-Term Funds | 15.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2030 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 49.3% |
| Shares | | Value |
Domestic Equity Funds - 42.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 44,376 | | $ 939,878 |
Fidelity Blue Chip Growth Fund (b) | 13,247 | | 883,698 |
Fidelity Equity-Income Fund (b) | 22,259 | | 1,364,041 |
Fidelity Large Cap Stock Fund (b) | 37,076 | | 1,027,000 |
Fidelity Series 100 Index Fund (b) | 70,602 | | 898,054 |
Fidelity Series Broad Market Opportunities Fund (b) | 101,312 | | 1,556,146 |
Fidelity Series Small Cap Opportunities Fund (b) | 10,097 | | 130,853 |
TOTAL DOMESTIC EQUITY FUNDS | | 6,799,670 |
International Equity Funds - 6.5% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 25,732 | | 1,026,963 |
TOTAL EQUITY FUNDS (Cost $6,712,226) |
7,826,633
|
Fixed-Income Funds - 35.2% |
| | | |
High Yield Fixed-Income Funds - 4.5% |
Fidelity Capital & Income Fund (b) | 35,522 | | 357,000 |
Fidelity Strategic Income Fund (b) | 32,261 | | 360,037 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 717,037 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 30.7% |
Fidelity Government Income Fund (b) | 94,171 | | $ 976,553 |
Fidelity Strategic Real Return Fund (b) | 100,949 | | 966,081 |
Fidelity Total Bond Fund (b) | 274,078 | | 2,927,151 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 4,869,785 |
TOTAL FIXED-INCOME FUNDS (Cost $5,511,811) |
5,586,822
|
Short-Term Funds - 15.5% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,227,131 | | 1,227,131 |
Fidelity Short-Term Bond Fund (b) | 142,620 | | 1,225,107 |
TOTAL SHORT-TERM FUNDS (Cost $2,446,901) |
2,452,238
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $14,670,938) | | 15,865,693 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (319) |
NET ASSETS - 100% | $ 15,865,374 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 412,788 | $ 803,259 | $ 235,283 | $ 8,472 | $ 1,026,963 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 363,773 | 805,964 | 229,289 | 632 | 939,878 |
Fidelity Blue Chip Growth Fund | 336,749 | 702,186 | 232,541 | 1,818 | 883,698 |
Fidelity Capital & Income Fund | 137,015 | 280,889 | 71,838 | 12,084 | 357,000 |
Fidelity Equity-Income Fund | 518,628 | 1,039,534 | 292,034 | 27,427 | 1,364,041 |
Fidelity Government Income Fund | 351,965 | 772,375 | 158,705 | 11,859 | 976,553 |
Fidelity Institutional Money Market Portfolio Institutional Class | 429,392 | 989,913 | 192,174 | 734 | 1,227,131 |
Fidelity Large Cap Stock Fund | 389,387 | 806,436 | 239,718 | 6,897 | 1,027,000 |
Fidelity Series 100 Index Fund | 335,996 | 662,092 | 186,934 | 10,722 | 898,054 |
Fidelity Series Broad Market Opportunities Fund | 596,337 | 1,180,284 | 371,918 | 4,481 | 1,556,146 |
Fidelity Series Small Cap Opportunities Fund | 52,021 | 116,019 | 32,856 | 21 | 130,853 |
Fidelity Short-Term Bond Fund | 429,610 | 988,036 | 194,327 | 8,100 | 1,225,107 |
Fidelity Strategic Income Fund | 136,911 | 288,323 | 70,680 | 10,290 | 360,037 |
Fidelity Strategic Real Return Fund | 351,986 | 778,089 | 184,799 | 14,784 | 966,081 |
Fidelity Total Bond Fund | 1,057,723 | 2,330,318 | 495,639 | 61,798 | 2,927,151 |
Total | $ 5,900,281 | $ 12,543,717 | $ 3,188,735 | $ 180,119 | $ 15,865,693 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2030 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $14,670,938) - See accompanying schedule | | $ 15,865,693 |
Cash | | 2 |
Receivable for fund shares sold | | 12,542 |
Total assets | | 15,878,237 |
| | |
Liabilities | | |
Payable for investments purchased | $ 12,502 | |
Distribution and service plan fees payable | 361 | |
Total liabilities | | 12,863 |
| | |
Net Assets | | $ 15,865,374 |
Net Assets consist of: | | |
Paid in capital | | $ 14,608,000 |
Undistributed net investment income | | 3,019 |
Accumulated undistributed net realized gain (loss) on investments | | 59,600 |
Net unrealized appreciation (depreciation) on investments | | 1,194,755 |
Net Assets | | $ 15,865,374 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($257,010 ÷ 4,295.09 shares) | | $ 59.84 |
| | |
Maximum offering price per share (100/94.25 of $59.84) | | $ 63.49 |
Class T:
Net Asset Value and redemption price per share ($17,373 ÷ 289.77 shares) | | $ 59.95 |
| | |
Maximum offering price per share (100/96.50 of $59.95) | | $ 62.12 |
| | |
Class C:
Net Asset Value and offering price per share ($352,784 ÷ 5,915.40 shares)A | | $ 59.64 |
| | |
Income Replacement 2030:
Net Asset Value, offering price and redemption price per share ($15,175,100 ÷ 253,596.50 shares) | | $ 59.84 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($63,107 ÷ 1,054.55 shares) | | $ 59.84 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 180,119 |
| | |
Expenses | | |
Distribution and service plan fees | $ 3,769 | |
Independent trustees' compensation | 42 | |
Total expenses before reductions | 3,811 | |
Expense reductions | (42) | 3,769 |
Net investment income (loss) | | 176,350 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (19,267) | |
Capital gain distributions from underlying funds | 206,864 | |
Total net realized gain (loss) | | 187,597 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 629,689 |
Net gain (loss) | | 817,286 |
Net increase (decrease) in net assets resulting from operations | | $ 993,636 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 176,350 | $ 80,370 |
Net realized gain (loss) | 187,597 | 155,323 |
Change in net unrealized appreciation (depreciation) | 629,689 | 299,880 |
Net increase (decrease) in net assets resulting from operations | 993,636 | 535,573 |
Distributions to shareholders from net investment income | (174,314) | (80,007) |
Distributions to shareholders from net realized gain | (29,274) | (17,604) |
Total distributions | (203,588) | (97,611) |
Share transactions - net increase (decrease) | 9,175,334 | 1,469,395 |
Total increase (decrease) in net assets | 9,965,382 | 1,907,357 |
| | |
Net Assets | | |
Beginning of period | 5,899,992 | 3,992,635 |
End of period (including undistributed net investment income of $3,019 and undistributed net investment income of $983, respectively) | $ 15,865,374 | $ 5,899,992 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .740 | .886 | .815 | .791 | .718 |
Net realized and unrealized gain (loss) | 4.505 | 5.568 | .598 | 5.066 | 4.180 |
Total from investment operations | 5.245 | 6.454 | 1.413 | 5.857 | 4.898 |
Distributions from net investment income | (.700) | (.896) | (.796) | (.801) | (.713) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.855) | (1.124) | (.943) | (.977) | (.818) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.65 | $ 44.77 |
Total ReturnA, B | 9.51% | 13.06% | 2.94% | 13.15% | 12.08% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.67% | 1.68% | 1.63% | 1.63% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 257 | $ 145 | $ 86 | $ 72 | $ 66 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.55 | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .597 | .745 | .715 | .655 | .603 |
Net realized and unrealized gain (loss) | 4.507 | 5.590 | .598 | 5.076 | 4.182 |
Total from investment operations | 5.104 | 6.335 | 1.313 | 5.731 | 4.785 |
Distributions from net investment income | (.549) | (.757) | (.636) | (.665) | (.590) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.704) | (.985) | (.783) | (.841) | (.695) |
Net asset value, end of period | $ 59.95 | $ 55.55 | $ 50.20 | $ 49.67 | $ 44.78 |
Total ReturnA, B | 9.23% | 12.78% | 2.72% | 12.85% | 11.79% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .51% F | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .51% F | .46% | .50% | .50% |
Expenses net of all reductions | .50% | .51% F | .46% | .50% | .50% |
Net investment income (loss) | 1.03% | 1.41% | 1.48% | 1.38% | 1.37% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17 | $ 15 | $ 13 | $ 15 | $ 45 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.33 | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .303 | .486 | .451 | .428 | .385 |
Net realized and unrealized gain (loss) | 4.486 | 5.561 | .604 | 5.060 | 4.185 |
Total from investment operations | 4.789 | 6.047 | 1.055 | 5.488 | 4.570 |
Distributions from net investment income | (.324) | (.559) | (.448) | (.452) | (.385) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.479) | (.787) | (.595) | (.628) | (.490) |
Net asset value, end of period | $ 59.64 | $ 55.33 | $ 50.07 | $ 49.61 | $ 44.75 |
Total ReturnA, B | 8.68% | 12.21% | 2.19% | 12.30% | 11.26% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .92% | .93% | .88% | .88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 353 | $ 315 | $ 312 | $ 270 | $ 186 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2030
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .888 | 1.015 | .935 | .917 | .821 |
Net realized and unrealized gain (loss) | 4.502 | 5.567 | .608 | 5.062 | 4.178 |
Total from investment operations | 5.390 | 6.582 | 1.543 | 5.979 | 4.999 |
Distributions from net investment income | (.845) | (1.024) | (.916) | (.923) | (.824) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (1.000) | (1.252) | (1.063) | (1.099) | (.929) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.76 |
Total ReturnA | 9.78% | 13.33% | 3.22% | 13.43% | 12.34% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.92% | 1.93% | 1.88% | 1.88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 15,175 | $ 5,367 | $ 3,558 | $ 3,962 | $ 1,628 |
Portfolio turnover rate C | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .885 | 1.020 | .936 | .911 | .825 |
Net realized and unrealized gain (loss) | 4.505 | 5.562 | .607 | 5.058 | 4.184 |
Total from investment operations | 5.390 | 6.582 | 1.543 | 5.969 | 5.009 |
Distributions from net investment income | (.845) | (1.024) | (.916) | (.923) | (.824) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (1.000) | (1.252) | (1.063) | (1.099) | (.929) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.77 |
Total ReturnA | 9.78% | 13.33% | 3.22% | 13.41% | 12.36% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.92% | 1.93% | 1.88% | 1.88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 63 | $ 57 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.1 | 6.1 |
Fidelity Blue Chip Growth Fund | 5.7 | 5.8 |
Fidelity Equity-Income Fund | 8.8 | 8.8 |
Fidelity Large Cap Stock Fund | 6.7 | 6.5 |
Fidelity Series 100 Index Fund | 5.8 | 5.7 |
Fidelity Series Broad Market Opportunities Fund | 10.1 | 10.2 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 44.1 | 44.0 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 7.2 | 7.3 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.4 | 2.4 |
Fidelity Strategic Income Fund | 2.4 | 2.5 |
| 4.8 | 4.9 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.0 | 6.1 |
Fidelity Strategic Real Return Fund | 5.9 | 6.0 |
Fidelity Total Bond Fund | 18.0 | 18.0 |
| 29.9 | 30.1 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 7.0 | 6.8 |
Fidelity Short-Term Bond Fund | 7.0 | 6.9 |
| 14.0 | 13.7 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 44.1% | |
| International Equity Funds | 7.2% | |
| High Yield Fixed-Income Funds | 4.8% | |
| Investment Grade Fixed-Income Funds | 29.9% | |
| Short-Term Funds | 14.0% | |
Six months ago |
| Domestic Equity Funds | 44.0% | |
| International Equity Funds | 7.3% | |
| High Yield Fixed-Income Funds | 4.9% | |
| Investment Grade Fixed-Income Funds | 30.1% | |
| Short-Term Funds | 13.7% | |
Expected |
| Domestic Equity Funds | 44.2% | |
| International Equity Funds | 7.2% | |
| High Yield Fixed-Income Funds | 4.8% | |
| Investment Grade Fixed-Income Funds | 29.6% | |
| Short-Term Funds | 14.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2032 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 51.3% |
| Shares | | Value |
Domestic Equity Funds - 44.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 23,172 | | $ 490,780 |
Fidelity Blue Chip Growth Fund (b) | 6,908 | | 460,847 |
Fidelity Equity-Income Fund (b) | 11,619 | | 712,030 |
Fidelity Large Cap Stock Fund (b) | 19,354 | | 536,114 |
Fidelity Series 100 Index Fund (b) | 36,812 | | 468,251 |
Fidelity Series Broad Market Opportunities Fund (b) | 52,860 | | 811,929 |
Fidelity Series Small Cap Opportunities Fund (b) | 5,248 | | 68,015 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,547,966 |
International Equity Funds - 7.2% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 14,612 | | 583,182 |
TOTAL EQUITY FUNDS (Cost $3,335,729) |
4,131,148
|
Fixed-Income Funds - 34.7% |
| | | |
High Yield Fixed-Income Funds - 4.8% |
Fidelity Capital & Income Fund (b) | 19,247 | | 193,429 |
Fidelity Strategic Income Fund (b) | 17,479 | | 195,065 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 388,494 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 29.9% |
Fidelity Government Income Fund (b) | 46,490 | | $ 482,104 |
Fidelity Strategic Real Return Fund (b) | 49,839 | | 476,961 |
Fidelity Total Bond Fund (b) | 135,387 | | 1,445,928 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,404,993 |
TOTAL FIXED-INCOME FUNDS (Cost $2,784,081) |
2,793,487
|
Short-Term Funds - 14.0% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 565,193 | | 565,193 |
Fidelity Short-Term Bond Fund (b) | 65,688 | | 564,256 |
TOTAL SHORT-TERM FUNDS (Cost $1,127,421) |
1,129,449
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,247,231) | | 8,054,084 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (180) |
NET ASSETS - 100% | $ 8,053,904 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 370,337 | $ 340,783 | $ 167,453 | $ 5,992 | $ 583,182 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 300,718 | 329,546 | 144,453 | 397 | 490,780 |
Fidelity Blue Chip Growth Fund | 278,414 | 282,469 | 146,760 | 1,324 | 460,847 |
Fidelity Capital & Income Fund | 117,258 | 112,930 | 43,943 | 7,472 | 193,429 |
Fidelity Equity-Income Fund | 428,523 | 397,159 | 173,657 | 16,282 | 712,030 |
Fidelity Government Income Fund | 275,478 | 298,354 | 97,214 | 6,609 | 482,104 |
Fidelity Institutional Money Market Portfolio Institutional Class | 317,994 | 356,231 | 109,032 | 387 | 565,193 |
Fidelity Large Cap Stock Fund | 321,858 | 315,047 | 148,581 | 4,163 | 536,114 |
Fidelity Series 100 Index Fund | 277,791 | 252,829 | 115,905 | 6,883 | 468,251 |
Fidelity Series Broad Market Opportunities Fund | 492,658 | 448,352 | 226,834 | 2,811 | 811,929 |
Fidelity Series Small Cap Opportunities Fund | 42,934 | 47,286 | 20,030 | 13 | 68,015 |
Fidelity Short-Term Bond Fund | 318,164 | 354,459 | 109,577 | 4,215 | 564,256 |
Fidelity Strategic Income Fund | 117,167 | 118,197 | 43,400 | 6,328 | 195,065 |
Fidelity Strategic Real Return Fund | 275,483 | 297,857 | 106,806 | 8,326 | 476,961 |
Fidelity Total Bond Fund | 826,974 | 895,119 | 292,365 | 34,858 | 1,445,928 |
Total | $ 4,761,751 | $ 4,846,618 | $ 1,946,010 | $ 106,060 | $ 8,054,084 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,247,231) - See accompanying schedule | | $ 8,054,084 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 180 |
| | |
Net Assets | | $ 8,053,904 |
Net Assets consist of: | | |
Paid in capital | | $ 7,257,981 |
Undistributed net investment income | | 1,555 |
Accumulated undistributed net realized gain (loss) on investments | | (12,485) |
Net unrealized appreciation (depreciation) on investments | | 806,853 |
Net Assets | | $ 8,053,904 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($267,193 ÷ 4,710.74 shares) | | $ 56.72 |
| | |
Maximum offering price per share (100/94.25 of $56.72) | | $ 60.18 |
Class T:
Net Asset Value and redemption price per share ($36,500 ÷ 643.10 shares) | | $ 56.76 |
| | |
Maximum offering price per share (100/96.50 of $56.76) | | $ 58.82 |
| | |
Class C:
Net Asset Value and offering price per share ($121,610 ÷ 2,147.99 shares)A | | $ 56.62 |
| | |
Income Replacement 2032:
Net Asset Value, offering price and redemption price per share ($7,607,885 ÷ 134,109.65 shares) | | $ 56.73 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($20,716 ÷ 365.16 shares) | | $ 56.73 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 106,060 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,082 | |
Independent trustees' compensation | 25 | |
Total expenses before reductions | 2,107 | |
Expense reductions | (25) | 2,082 |
Net investment income (loss) | | 103,978 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (1,525) | |
Capital gain distributions from underlying funds | 132,838 | |
Total net realized gain (loss) | | 131,313 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 393,242 |
Net gain (loss) | | 524,555 |
Net increase (decrease) in net assets resulting from operations | | $ 628,533 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 103,978 | $ 82,284 |
Net realized gain (loss) | 131,313 | 150,587 |
Change in net unrealized appreciation (depreciation) | 393,242 | 298,362 |
Net increase (decrease) in net assets resulting from operations | 628,533 | 531,233 |
Distributions to shareholders from net investment income | (103,188) | (81,963) |
Distributions to shareholders from net realized gain | (75,104) | (32,634) |
Total distributions | (178,292) | (114,597) |
Share transactions - net increase (decrease) | 2,842,028 | 1,045,148 |
Total increase (decrease) in net assets | 3,292,269 | 1,461,784 |
| | |
Net Assets | | |
Beginning of period | 4,761,635 | 3,299,851 |
End of period (including undistributed net investment income of $1,555 and undistributed net investment income of $764, respectively) | $ 8,053,904 | $ 4,761,635 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.04 | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .718 | .906 | .717 | .796 | .727 |
Net realized and unrealized gain (loss) | 4.379 | 5.480 | .618 | 5.086 | 4.154 |
Total from investment operations | 5.097 | 6.386 | 1.335 | 5.882 | 4.881 |
Distributions from net investment income | (.704) | (.852) | (.770) | (.812) | (.796) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.417) | (1.256) | (2.495) | (1.002) | (.901) |
Net asset value, end of period | $ 56.72 | $ 53.04 | $ 47.91 | $ 49.07 | $ 44.19 |
Total ReturnA, B | 9.76% | 13.55% | 2.85% | 13.38% | 12.19% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .37% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.30% | 1.80% | 1.51% | 1.66% | 1.67% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 267 | $ 229 | $ 217 | $ 214 | $ 200 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.08 | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .581 | .781 | .599 | .676 | .620 |
Net realized and unrealized gain (loss) | 4.386 | 5.484 | .599 | 5.107 | 4.147 |
Total from investment operations | 4.967 | 6.265 | 1.198 | 5.783 | 4.767 |
Distributions from net investment income | (.574) | (.721) | (.633) | (.693) | (.682) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.287) | (1.125) | (2.358) | (.883) | (.787) |
Net asset value, end of period | $ 56.76 | $ 53.08 | $ 47.94 | $ 49.10 | $ 44.20 |
Total ReturnA, B | 9.50% | 13.27% | 2.55% | 13.14% | 11.90% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .62% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.05% | 1.55% | 1.26% | 1.41% | 1.43% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 36 | $ 27 | $ 24 | $ 27 | $ 35 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.99 | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .305 | .529 | .358 | .434 | .403 |
Net realized and unrealized gain (loss) | 4.382 | 5.469 | .615 | 5.102 | 4.143 |
Total from investment operations | 4.687 | 5.998 | .973 | 5.536 | 4.546 |
Distributions from net investment income | (.344) | (.534) | (.438) | (.446) | (.451) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.057) | (.938) | (2.163) | (.636) | (.556) |
Net asset value, end of period | $ 56.62 | $ 52.99 | $ 47.93 | $ 49.12 | $ 44.22 |
Total ReturnA, B | 8.96% | 12.68% | 2.07% | 12.55% | 11.33% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.12% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .55% | 1.05% | .76% | .91% | .93% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 122 | $ 69 | $ 52 | $ 22 | $ 29 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2032
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | 1.033 | .836 | .918 | .832 |
Net realized and unrealized gain (loss) | 4.380 | 5.479 | .618 | 5.095 | 4.147 |
Total from investment operations | 5.236 | 6.512 | 1.454 | 6.013 | 4.979 |
Distributions from net investment income | (.843) | (.978) | (.889) | (.933) | (.904) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.556) | (1.382) | (2.614) | (1.123) | (1.009) |
Net asset value, end of period | $ 56.73 | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 |
Total ReturnA | 10.04% | 13.83% | 3.10% | 13.68% | 12.44% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions | .00% D | .00% D | .12% | .00% D | .00% D |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.05% | 1.76% | 1.91% | 1.92% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,608 | $ 4,418 | $ 2,991 | $ 1,297 | $ 1,391 |
Portfolio turnover rate C | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | 1.032 | .835 | .904 | .834 |
Net realized and unrealized gain (loss) | 4.380 | 5.480 | .619 | 5.109 | 4.145 |
Total from investment operations | 5.236 | 6.512 | 1.454 | 6.013 | 4.979 |
Distributions from net investment income | (.843) | (.978) | (.889) | (.933) | (.904) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.556) | (1.382) | (2.614) | (1.123) | (1.009) |
Net asset value, end of period | $ 56.73 | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 |
Total ReturnA | 10.04% | 13.83% | 3.10% | 13.68% | 12.44% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions | .00% D | .00% D | .12% | .00% D | .00% D |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.05% | 1.76% | 1.91% | 1.92% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21 | $ 19 | $ 17 | $ 19 | $ 61 |
Portfolio turnover rate C | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.2 | 6.2 |
Fidelity Blue Chip Growth Fund | 5.9 | 5.9 |
Fidelity Equity-Income Fund | 9.0 | 9.0 |
Fidelity Large Cap Stock Fund | 6.8 | 6.7 |
Fidelity Series 100 Index Fund | 5.9 | 5.8 |
Fidelity Series Broad Market Opportunities Fund | 10.3 | 10.4 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.0 | 44.9 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 8.0 | 8.1 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.5 | 2.6 |
Fidelity Strategic Income Fund | 2.6 | 2.6 |
| 5.1 | 5.2 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.7 | 5.8 |
Fidelity Strategic Real Return Fund | 5.7 | 5.7 |
Fidelity Total Bond Fund | 17.3 | 17.3 |
| 28.7 | 28.8 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 6.6 | 6.5 |
Fidelity Short-Term Bond Fund | 6.6 | 6.5 |
| 13.2 | 13.0 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 45.0% | |
| International Equity Funds | 8.0% | |
| High Yield Fixed-Income Funds | 5.1% | |
| Investment Grade Fixed-Income Funds | 28.7% | |
| Short-Term Funds | 13.2% | |
Six months ago |
| Domestic Equity Funds | 44.9% | |
| International Equity Funds | 8.1% | |
| High Yield Fixed-Income Funds | 5.2% | |
| Investment Grade Fixed-Income Funds | 28.8% | |
| Short-Term Funds | 13.0% | |
Expected |
| Domestic Equity Funds | 45.1% | |
| International Equity Funds | 8.0% | |
| High Yield Fixed-Income Funds | 5.0% | |
| Investment Grade Fixed-Income Funds | 28.5% | |
| Short-Term Funds | 13.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2034 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 53.0% |
| Shares | | Value |
Domestic Equity Funds - 45.0% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 25,835 | | $ 547,182 |
Fidelity Blue Chip Growth Fund (b) | 7,713 | | 514,535 |
Fidelity Equity-Income Fund (b) | 12,968 | | 794,671 |
Fidelity Large Cap Stock Fund (b) | 21,615 | | 598,743 |
Fidelity Series 100 Index Fund (b) | 41,109 | | 522,911 |
Fidelity Series Broad Market Opportunities Fund (b) | 59,004 | | 906,306 |
Fidelity Series Small Cap Opportunities Fund (b) | 5,868 | | 76,048 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,960,396 |
International Equity Funds - 8.0% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 17,667 | | 705,091 |
TOTAL EQUITY FUNDS (Cost $3,863,186) |
4,665,487
|
Fixed-Income Funds - 33.8% |
| | | |
High Yield Fixed-Income Funds - 5.1% |
Fidelity Capital & Income Fund (b) | 22,108 | | 222,186 |
Fidelity Strategic Income Fund (b) | 20,079 | | 224,086 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 446,272 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 28.7% |
Fidelity Government Income Fund (b) | 48,876 | | $ 506,842 |
Fidelity Strategic Real Return Fund (b) | 52,392 | | 501,394 |
Fidelity Total Bond Fund (b) | 142,333 | | 1,520,120 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,528,356 |
TOTAL FIXED-INCOME FUNDS (Cost $2,912,731) |
2,974,628
|
Short-Term Funds - 13.2% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 583,337 | | 583,337 |
Fidelity Short-Term Bond Fund (b) | 67,797 | | 582,375 |
TOTAL SHORT-TERM FUNDS (Cost $1,161,394) |
1,165,712
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,937,311) | | 8,805,827 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (103) |
NET ASSETS - 100% | $ 8,805,724 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 358,688 | $ 431,974 | $ 119,724 | $ 5,465 | $ 705,091 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 269,698 | 372,819 | 98,639 | 341 | 547,182 |
Fidelity Blue Chip Growth Fund | 249,635 | 324,268 | 103,112 | 1,092 | 514,535 |
Fidelity Capital & Income Fund | 108,224 | 136,629 | 28,739 | 7,195 | 222,186 |
Fidelity Equity-Income Fund | 384,259 | 471,308 | 114,578 | 15,213 | 794,671 |
Fidelity Government Income Fund | 234,485 | 320,837 | 53,348 | 5,886 | 506,842 |
Fidelity Institutional Money Market Portfolio Institutional Class | 261,036 | 377,586 | 55,285 | 336 | 583,337 |
Fidelity Large Cap Stock Fund | 288,297 | 369,874 | 99,610 | 3,836 | 598,743 |
Fidelity Series 100 Index Fund | 249,076 | 299,242 | 74,018 | 5,836 | 522,911 |
Fidelity Series Broad Market Opportunities Fund | 441,539 | 534,083 | 155,806 | 2,411 | 906,306 |
Fidelity Series Small Cap Opportunities Fund | 38,625 | 54,011 | 14,263 | 11 | 76,048 |
Fidelity Short-Term Bond Fund | 261,172 | 380,100 | 59,599 | 3,679 | 582,375 |
Fidelity Strategic Income Fund | 108,142 | 141,281 | 28,234 | 6,117 | 224,086 |
Fidelity Strategic Real Return Fund | 234,491 | 321,662 | 63,818 | 7,522 | 501,394 |
Fidelity Total Bond Fund | 703,473 | 964,966 | 162,992 | 30,824 | 1,520,120 |
Total | $ 4,190,840 | $ 5,500,640 | $ 1,231,765 | $ 95,764 | $ 8,805,827 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,937,311) - See accompanying schedule | | $ 8,805,827 |
Cash | | 1 |
Total assets | | 8,805,828 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 104 |
| | |
Net Assets | | $ 8,805,724 |
Net Assets consist of: | | |
Paid in capital | | $ 7,903,283 |
Undistributed net investment income | | 1,699 |
Accumulated undistributed net realized gain (loss) on investments | | 32,226 |
Net unrealized appreciation (depreciation) on investments | | 868,516 |
Net Assets | | $ 8,805,724 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($125,701 ÷ 2,100.36 shares) | | $ 59.85 |
| | |
Maximum offering price per share (100/94.25 of $59.85) | | $ 63.50 |
Class T:
Net Asset Value and redemption price per share ($96,487 ÷ 1,612.10 shares) | | $ 59.85 |
| | |
Maximum offering price per share (100/96.50 of $59.85) | | $ 62.02 |
| | |
Class C:
Net Asset Value and offering price per share ($53,538 ÷ 896.25 shares)A | | $ 59.74 |
| | |
Income Replacement 2034:
Net Asset Value, offering price and redemption price per share ($8,313,273 ÷ 138,960.56 shares) | | $ 59.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($216,725 ÷ 3,622.35 shares) | | $ 59.83 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 95,764 |
| | |
Expenses | | |
Distribution and service plan fees | $ 1,241 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 1,264 | |
Expense reductions | (23) | 1,241 |
Net investment income (loss) | | 94,523 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 103 | |
Capital gain distributions from underlying funds | 115,763 | |
Total net realized gain (loss) | | 115,866 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 345,996 |
Net gain (loss) | | 461,862 |
Net increase (decrease) in net assets resulting from operations | | $ 556,385 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 94,523 | $ 56,289 |
Net realized gain (loss) | 115,866 | 94,056 |
Change in net unrealized appreciation (depreciation) | 345,996 | 236,800 |
Net increase (decrease) in net assets resulting from operations | 556,385 | 387,145 |
Distributions to shareholders from net investment income | (93,540) | (55,933) |
Distributions to shareholders from net realized gain | (34,674) | (10,194) |
Total distributions | (128,214) | (66,127) |
Share transactions - net increase (decrease) | 4,186,789 | 1,540,337 |
Total increase (decrease) in net assets | 4,614,960 | 1,861,355 |
| | |
Net Assets | | |
Beginning of period | 4,190,764 | 2,329,409 |
End of period (including undistributed net investment income of $1,699 and undistributed net investment income of $716, respectively) | $ 8,805,724 | $ 4,190,764 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.44 | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .741 | .840 | .782 | .799 | .753 |
Net realized and unrealized gain (loss) | 4.748 | 6.014 | .504 | 5.233 | 4.174 |
Total from investment operations | 5.489 | 6.854 | 1.286 | 6.032 | 4.927 |
Distributions from net investment income | (.723) | (.903) | (.775) | (.772) | (.758) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.079) | (1.114) | (.916) | (.972) | (.947) |
Net asset value, end of period | $ 59.85 | $ 55.44 | $ 49.70 | $ 49.33 | $ 44.27 |
Total ReturnA, B | 9.97% | 13.98% | 2.71% | 13.69% | 12.29% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.60% | 1.63% | 1.66% | 1.73% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 126 | $ 20 | $ 18 | $ 20 | $ 27 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.44 | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .592 | .719 | .662 | .681 | .645 |
Net realized and unrealized gain (loss) | 4.742 | 6.008 | .490 | 5.247 | 4.175 |
Total from investment operations | 5.334 | 6.727 | 1.152 | 5.928 | 4.820 |
Distributions from net investment income | (.568) | (.776) | (.651) | (.658) | (.651) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (.924) | (.987) | (.792) | (.858) | (.840) |
Net asset value, end of period | $ 59.85 | $ 55.44 | $ 49.70 | $ 49.34 | $ 44.27 |
Total ReturnA, B | 9.68% | 13.71% | 2.42% | 13.45% | 12.01% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.35% | 1.38% | 1.42% | 1.48% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 96 | $ 88 | $ 23 | $ 27 | $ 35 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.39 | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .300 | .448 | .424 | .439 | .426 |
Net realized and unrealized gain (loss) | 4.746 | 6.020 | .490 | 5.239 | 4.185 |
Total from investment operations | 5.046 | 6.468 | .914 | 5.678 | 4.611 |
Distributions from net investment income | (.340) | (.567) | (.443) | (.408) | (.422) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (.696) | (.778) | (.584) | (.608) | (.611) |
Net asset value, end of period | $ 59.74 | $ 55.39 | $ 49.70 | $ 49.37 | $ 44.30 |
Total ReturnA, B | 9.15% | 13.15% | 1.92% | 12.85% | 11.47% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .86% | .89% | .91% | .98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 54 | $ 49 | $ 43 | $ 20 | $ 27 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2034
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.41 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .885 | .975 | .903 | .921 | .862 |
Net realized and unrealized gain (loss) | 4.738 | 6.009 | .505 | 5.227 | 4.183 |
Total from investment operations | 5.623 | 6.984 | 1.408 | 6.148 | 5.045 |
Distributions from net investment income | (.857) | (1.033) | (.907) | (.898) | (.876) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.213) | (1.244) | (1.048) | (1.098) | (1.065) |
Net asset value, end of period | $ 59.82 | $ 55.41 | $ 49.67 | $ 49.31 | $ 44.26 |
Total ReturnA | 10.23% | 14.27% | 2.97% | 13.97% | 12.59% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.85% | 1.89% | 1.92% | 1.98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,313 | $ 3,894 | $ 2,123 | $ 2,066 | $ 1,672 |
Portfolio turnover rate C | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.42 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .884 | .972 | .904 | .922 | .860 |
Net realized and unrealized gain (loss) | 4.739 | 6.022 | .504 | 5.226 | 4.185 |
Total from investment operations | 5.623 | 6.994 | 1.408 | 6.148 | 5.045 |
Distributions from net investment income | (.857) | (1.033) | (.907) | (.898) | (.876) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.213) | (1.244) | (1.048) | (1.098) | (1.065) |
Net asset value, end of period | $ 59.83 | $ 55.42 | $ 49.67 | $ 49.31 | $ 44.26 |
Total ReturnA | 10.23% | 14.29% | 2.97% | 13.97% | 12.59% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.85% | 1.89% | 1.92% | 1.98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 217 | $ 139 | $ 122 | $ 107 | $ 94 |
Portfolio turnover rate C | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2036 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.3 | 6.4 |
Fidelity Blue Chip Growth Fund | 6.0 | 6.0 |
Fidelity Equity-Income Fund | 9.2 | 9.1 |
Fidelity Large Cap Stock Fund | 6.9 | 6.8 |
Fidelity Series 100 Index Fund | 6.0 | 5.9 |
Fidelity Series Broad Market Opportunities Fund | 10.5 | 10.6 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.8 | 45.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 8.8 | 8.9 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.6 | 2.7 |
Fidelity Strategic Income Fund | 2.7 | 2.7 |
| 5.3 | 5.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.7 | 5.7 |
Fidelity Strategic Real Return Fund | 5.6 | 5.7 |
Fidelity Total Bond Fund | 16.9 | 17.0 |
| 28.2 | 28.4 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 6.0 | 5.8 |
Fidelity Short-Term Bond Fund | 5.9 | 5.8 |
| 11.9 | 11.6 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 45.8% | |
| International Equity Funds | 8.8% | |
| High Yield Fixed-Income Funds | 5.3% | |
| Investment Grade Fixed-Income Funds | 28.2% | |
| Short-Term Funds | 11.9% | |
Six months ago |
| Domestic Equity Funds | 45.7% | |
| International Equity Funds | 8.9% | |
| High Yield Fixed-Income Funds | 5.4% | |
| Investment Grade Fixed-Income Funds | 28.4% | |
| Short-Term Funds | 11.6% | |
Expected |
| Domestic Equity Funds | 46.0% | |
| International Equity Funds | 8.7% | |
| High Yield Fixed-Income Funds | 5.2% | |
| Investment Grade Fixed-Income Funds | 27.9% | |
| Short-Term Funds | 12.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2036 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 54.6% |
| Shares | | Value |
Domestic Equity Funds - 45.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 21,795 | | $ 461,619 |
Fidelity Blue Chip Growth Fund (b) | 6,495 | | 433,268 |
Fidelity Equity-Income Fund (b) | 10,927 | | 669,628 |
Fidelity Large Cap Stock Fund (b) | 18,214 | | 504,538 |
Fidelity Series 100 Index Fund (b) | 34,620 | | 440,371 |
Fidelity Series Broad Market Opportunities Fund (b) | 49,745 | | 764,088 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,964 | | 64,339 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,337,851 |
International Equity Funds - 8.8% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 16,060 | | 640,937 |
TOTAL EQUITY FUNDS (Cost $3,307,815) |
3,978,788
|
Fixed-Income Funds - 33.5% |
| | | |
High Yield Fixed-Income Funds - 5.3% |
Fidelity Capital & Income Fund (b) | 19,179 | | 192,744 |
Fidelity Strategic Income Fund (b) | 17,419 | | 194,393 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 387,137 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 28.2% |
Fidelity Government Income Fund (b) | 39,687 | | $ 411,552 |
Fidelity Strategic Real Return Fund (b) | 42,541 | | 407,116 |
Fidelity Total Bond Fund (b) | 115,574 | | 1,234,333 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,053,001 |
TOTAL FIXED-INCOME FUNDS (Cost $2,447,640) |
2,440,138
|
Short-Term Funds - 11.9% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 434,802 | | 434,802 |
Fidelity Short-Term Bond Fund (b) | 50,533 | | 434,082 |
TOTAL SHORT-TERM FUNDS (Cost $868,083) |
868,884
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,623,538) | | 7,287,810 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (516) |
NET ASSETS - 100% | $ 7,287,294 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 429,351 | $ 324,563 | $ 152,413 | $ 6,198 | $ 640,937 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 299,915 | 272,832 | 114,281 | 356 | 461,619 |
Fidelity Blue Chip Growth Fund | 277,506 | 231,518 | 118,084 | 1,193 | 433,268 |
Fidelity Capital & Income Fund | 123,843 | 101,165 | 39,002 | 7,378 | 192,744 |
Fidelity Equity-Income Fund | 426,985 | 334,521 | 144,859 | 14,844 | 669,628 |
Fidelity Government Income Fund | 252,711 | 226,420 | 72,255 | 5,624 | 411,552 |
Fidelity Institutional Money Market Portfolio Institutional Class | 252,006 | 257,502 | 74,705 | 292 | 434,802 |
Fidelity Large Cap Stock Fund | 320,703 | 259,340 | 117,807 | 3,775 | 504,538 |
Fidelity Series 100 Index Fund | 276,886 | 208,743 | 92,852 | 6,234 | 440,371 |
Fidelity Series Broad Market Opportunities Fund | 490,982 | 367,073 | 181,498 | 2,520 | 764,088 |
Fidelity Series Small Cap Opportunities Fund | 42,688 | 39,956 | 16,039 | 12 | 64,339 |
Fidelity Short-Term Bond Fund | 252,142 | 255,800 | 74,706 | 3,182 | 434,082 |
Fidelity Strategic Income Fund | 123,745 | 106,544 | 38,841 | 6,254 | 194,393 |
Fidelity Strategic Real Return Fund | 252,708 | 228,183 | 82,877 | 6,940 | 407,116 |
Fidelity Total Bond Fund | 760,002 | 682,193 | 221,589 | 29,656 | 1,234,333 |
Total | $ 4,582,173 | $ 3,896,353 | $ 1,541,808 | $ 94,458 | $ 7,287,810 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2036 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,623,538) - See accompanying schedule | | $ 7,287,810 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 516 |
| | |
Net Assets | | $ 7,287,294 |
Net Assets consist of: | | |
Paid in capital | | $ 6,649,514 |
Undistributed net investment income | | 1,300 |
Accumulated undistributed net realized gain (loss) on investments | | (27,792) |
Net unrealized appreciation (depreciation) on investments | | 664,272 |
Net Assets | | $ 7,287,294 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($181,161.83 ÷ 3,030.179 shares) | | $ 59.79 |
| | |
Maximum offering price per share (100/94.25 of $59.79) | | $ 63.44 |
Class T:
Net Asset Value and redemption price per share ($420,018.62 ÷ 7,029.306 shares) | | $ 59.75 |
| | |
Maximum offering price per share (100/96.50 of $59.75) | | $ 61.92 |
| | |
Class C:
Net Asset Value and offering price per share ($357,855.85 ÷ 6,006.299 shares)A | | $ 59.58 |
| | |
Income Replacement 2036:
Net Asset Value, offering price and redemption price per share ($6,327,492.62 ÷ 105,836.810 shares) | | $ 59.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($765.36 ÷ 12.792 shares) | | $ 59.83 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 94,458 |
| | |
Expenses | | |
Distribution and service plan fees | $ 5,685 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 5,708 | |
Expense reductions | (23) | 5,685 |
Net investment income (loss) | | 88,773 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (5,177) | |
Capital gain distributions from underlying funds | 119,956 | |
Total net realized gain (loss) | | 114,779 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 356,267 |
Net gain (loss) | | 471,046 |
Net increase (decrease) in net assets resulting from operations | | $ 559,819 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 88,773 | $ 71,025 |
Net realized gain (loss) | 114,779 | 89,547 |
Change in net unrealized appreciation (depreciation) | 356,267 | 345,367 |
Net increase (decrease) in net assets resulting from operations | 559,819 | 505,939 |
Distributions to shareholders from net investment income | (88,233) | (70,625) |
Distributions to shareholders from net realized gain | (17,586) | (12,770) |
Total distributions | (105,819) | (83,395) |
Share transactions - net increase (decrease) | 2,251,545 | 1,316,059 |
Total increase (decrease) in net assets | 2,705,545 | 1,738,603 |
| | |
Net Assets | | |
Beginning of period | 4,581,749 | 2,843,146 |
End of period (including undistributed net investment income of $1,300 and undistributed net investment income of $759, respectively) | $ 7,287,294 | $ 4,581,749 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.12 | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .751 | .939 | .760 | .811 | .748 |
Net realized and unrealized gain (loss) | 4.831 | 6.075 | .441 | 5.306 | 4.178 |
Total from investment operations | 5.582 | 7.014 | 1.201 | 6.117 | 4.926 |
Distributions from net investment income | (.734) | (.913) | (.784) | (.771) | (.752) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.912) | (1.094) | (.921) | (.927) | (.896) |
Net asset value, end of period | $ 59.79 | $ 55.12 | $ 49.20 | $ 48.92 | $ 43.73 |
Total ReturnA, B | 10.18% | 14.45% | 2.56% | 14.05% | 12.46% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.29% | 1.80% | 1.60% | 1.70% | 1.74% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 181 | $ 25 | $ 27 | $ 31 | $ 40 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.09 | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .601 | .809 | .641 | .693 | .639 |
Net realized and unrealized gain (loss) | 4.822 | 6.077 | .448 | 5.287 | 4.183 |
Total from investment operations | 5.423 | 6.886 | 1.089 | 5.980 | 4.822 |
Distributions from net investment income | (.585) | (.785) | (.672) | (.654) | (.648) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.763) | (.966) | (.809) | (.810) | (.792) |
Net asset value, end of period | $ 59.75 | $ 55.09 | $ 49.17 | $ 48.89 | $ 43.72 |
Total ReturnA, B | 9.89% | 14.18% | 2.32% | 13.73% | 12.19% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.04% | 1.55% | 1.35% | 1.45% | 1.49% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 420 | $ 295 | $ 278 | $ 288 | $ 265 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.98 | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .310 | .553 | .404 | .454 | .424 |
Net realized and unrealized gain (loss) | 4.816 | 6.061 | .445 | 5.293 | 4.179 |
Total from investment operations | 5.126 | 6.614 | .849 | 5.747 | 4.603 |
Distributions from net investment income | (.348) | (.593) | (.452) | (.451) | (.429) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.526) | (.774) | (.589) | (.607) | (.573) |
Net asset value, end of period | $ 59.58 | $ 54.98 | $ 49.14 | $ 48.88 | $ 43.74 |
Total ReturnA, B | 9.35% | 13.60% | 1.80% | 13.17% | 11.61% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .54% | 1.06% | .85% | .95% | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 358 | $ 357 | $ 174 | $ 216 | $ 119 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2036
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.11 | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .893 | 1.073 | .880 | .939 | .854 |
Net realized and unrealized gain (loss) | 4.833 | 6.070 | .445 | 5.291 | 4.183 |
Total from investment operations | 5.726 | 7.143 | 1.325 | 6.230 | 5.037 |
Distributions from net investment income | (.868) | (1.042) | (.908) | (.894) | (.863) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (1.046) | (1.223) | (1.045) | (1.050) | (1.007) |
Net asset value, end of period | $ 59.79 | $ 55.11 | $ 49.19 | $ 48.91 | $ 43.73 |
Total ReturnA | 10.46% | 14.74% | 2.82% | 14.32% | 12.75% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.54% | 2.05% | 1.85% | 1.95% | 1.99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,327 | $ 3,904 | $ 2,363 | $ 2,433 | $ 598 |
Portfolio turnover rate C | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.13 | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .869 | 1.108 | .873 | .929 | .851 |
Net realized and unrealized gain (loss) | 4.877 | 6.065 | .452 | 5.291 | 4.186 |
Total from investment operations | 5.746 | 7.173 | 1.325 | 6.220 | 5.037 |
Distributions from net investment income | (.868) | (1.042) | (.908) | (.894) | (.863) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (1.046) | (1.223) | (1.045) | (1.050) | (1.007) |
Net asset value, end of period | $ 59.83 | $ 55.13 | $ 49.18 | $ 48.90 | $ 43.73 |
Total ReturnA | 10.49% | 14.80% | 2.82% | 14.30% | 12.75% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.54% | 2.05% | 1.85% | 1.95% | 1.99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1 | $ 1 | $ 1 | $ 28 | $ 103 |
Portfolio turnover rate C | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2038 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.4 | 6.5 |
Fidelity Blue Chip Growth Fund | 6.1 | 6.1 |
Fidelity Equity-Income Fund | 9.4 | 9.3 |
Fidelity Large Cap Stock Fund | 7.0 | 6.9 |
Fidelity Series 100 Index Fund | 6.2 | 6.0 |
Fidelity Series Broad Market Opportunities Fund | 10.7 | 10.8 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.7 | 46.5 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 9.6 | 9.7 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.8 | 2.8 |
Fidelity Strategic Income Fund | 2.8 | 2.9 |
| 5.6 | 5.7 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.5 | 5.6 |
Fidelity Strategic Real Return Fund | 5.5 | 5.5 |
Fidelity Total Bond Fund | 16.6 | 16.6 |
| 27.6 | 27.7 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 5.3 | 5.2 |
Fidelity Short-Term Bond Fund | 5.2 | 5.2 |
| 10.5 | 10.4 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 46.7% | |
| International Equity Funds | 9.6% | |
| High Yield Fixed-Income Funds | 5.6% | |
| Investment Grade Fixed-Income Funds | 27.6% | |
| Short-Term Funds | 10.5% | |
Six months ago |
| Domestic Equity Funds | 46.5% | |
| International Equity Funds | 9.7% | |
| High Yield Fixed-Income Funds | 5.7% | |
| Investment Grade Fixed-Income Funds | 27.7% | |
| Short-Term Funds | 10.4% | |
Expected |
| Domestic Equity Funds | 46.9% | |
| International Equity Funds | 9.6% | |
| High Yield Fixed-Income Funds | 5.4% | |
| Investment Grade Fixed-Income Funds | 27.5% | |
| Short-Term Funds | 10.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2038 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 56.3% |
| Shares | | Value |
Domestic Equity Funds - 46.7% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 19,866 | | $ 420,758 |
Fidelity Blue Chip Growth Fund (b) | 5,927 | | 395,403 |
Fidelity Equity-Income Fund (b) | 9,972 | | 611,104 |
Fidelity Large Cap Stock Fund (b) | 16,603 | | 459,909 |
Fidelity Series 100 Index Fund (b) | 31,589 | | 401,816 |
Fidelity Series Broad Market Opportunities Fund (b) | 45,377 | | 696,988 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,498 | | 58,296 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,044,274 |
International Equity Funds - 9.6% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 15,721 | | 627,406 |
TOTAL EQUITY FUNDS (Cost $3,108,434) |
3,671,680
|
Fixed-Income Funds - 33.2% |
| | | |
High Yield Fixed-Income Funds - 5.6% |
Fidelity Capital & Income Fund (b) | 18,031 | | 181,213 |
Fidelity Strategic Income Fund (b) | 16,377 | | 182,767 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 363,980 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 27.6% |
Fidelity Government Income Fund (b) | 34,857 | | $ 361,466 |
Fidelity Strategic Real Return Fund (b) | 37,364 | | 357,572 |
Fidelity Total Bond Fund (b) | 101,510 | | 1,084,131 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 1,803,169 |
TOTAL FIXED-INCOME FUNDS (Cost $2,114,767) |
2,167,149
|
Short-Term Funds - 10.5% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 344,380 | | 344,380 |
Fidelity Short-Term Bond Fund (b) | 40,027 | | 343,829 |
TOTAL SHORT-TERM FUNDS (Cost $685,647) |
688,209
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,908,848) | | 6,527,038 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (209) |
NET ASSETS - 100% | $ 6,526,829 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 236,767 | $ 555,204 | $ 187,832 | $ 5,056 | $ 627,406 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 154,090 | 399,514 | 130,586 | 272 | 420,758 |
Fidelity Blue Chip Growth Fund | 142,546 | 351,367 | 129,415 | 758 | 395,403 |
Fidelity Capital & Income Fund | 65,481 | 158,177 | 47,048 | 5,610 | 181,213 |
Fidelity Equity-Income Fund | 219,578 | 516,061 | 161,434 | 11,427 | 611,104 |
Fidelity Government Income Fund | 123,795 | 317,815 | 83,481 | 4,029 | 361,466 |
Fidelity Institutional Money Market Portfolio Institutional Class | 113,294 | 309,797 | 78,712 | 190 | 344,380 |
Fidelity Large Cap Stock Fund | 164,807 | 403,581 | 135,879 | 2,964 | 459,909 |
Fidelity Series 100 Index Fund | 142,227 | 331,286 | 105,781 | 4,666 | 401,816 |
Fidelity Series Broad Market Opportunities Fund | 252,326 | 594,435 | 208,931 | 1,930 | 696,988 |
Fidelity Series Small Cap Opportunities Fund | 22,000 | 56,680 | 18,744 | 9 | 58,296 |
Fidelity Short-Term Bond Fund | 113,354 | 309,015 | 78,871 | 2,085 | 343,829 |
Fidelity Strategic Income Fund | 65,430 | 161,163 | 45,912 | 4,772 | 182,767 |
Fidelity Strategic Real Return Fund | 123,798 | 316,905 | 88,317 | 5,275 | 357,572 |
Fidelity Total Bond Fund | 372,304 | 951,903 | 250,399 | 21,031 | 1,084,131 |
Total | $ 2,311,797 | $ 5,732,903 | $ 1,751,342 | $ 70,074 | $ 6,527,038 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2038 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $5,908,848) - See accompanying schedule | | $ 6,527,038 |
Receivable for fund shares sold | | 40,500 |
Total assets | | 6,567,538 |
| | |
Liabilities | | |
Payable for investments purchased | $ 40,498 | |
Distribution and service plan fees payable | 211 | |
Total liabilities | | 40,709 |
| | |
Net Assets | | $ 6,526,829 |
Net Assets consist of: | | |
Paid in capital | | $ 5,880,451 |
Undistributed net investment income | | 1,151 |
Accumulated undistributed net realized gain (loss) on investments | | 27,037 |
Net unrealized appreciation (depreciation) on investments | | 618,190 |
Net Assets | | $ 6,526,829 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($177,524 ÷ 3,074.31 shares) | | $ 57.74 |
| | |
Maximum offering price per share (100/94.25 of $57.74) | | $ 61.26 |
Class T:
Net Asset Value and redemption price per share ($190,152 ÷ 3,293.29 shares) | | $ 57.74 |
| | |
Maximum offering price per share (100/96.50 of $57.74) | | $ 59.83 |
| | |
Class C:
Net Asset Value and offering price per share ($109,858 ÷ 1,908.73 shares)A | | $ 57.56 |
| | |
Income Replacement 2038:
Net Asset Value, offering price and redemption price per share ($6,016,811 ÷ 104,182.43 shares) | | $ 57.75 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($32,484 ÷ 562.49 shares) | | $ 57.75 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 70,074 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,185 | |
Independent trustees' compensation | 16 | |
Total expenses before reductions | 2,201 | |
Expense reductions | (16) | 2,185 |
Net investment income (loss) | | 67,889 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (14,725) | |
Capital gain distributions from underlying funds | 87,125 | |
Total net realized gain (loss) | | 72,400 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 248,398 |
Net gain (loss) | | 320,798 |
Net increase (decrease) in net assets resulting from operations | | $ 388,687 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 67,889 | $ 46,047 |
Net realized gain (loss) | 72,400 | 119,857 |
Change in net unrealized appreciation (depreciation) | 248,398 | 155,950 |
Net increase (decrease) in net assets resulting from operations | 388,687 | 321,854 |
Distributions to shareholders from net investment income | (67,101) | (45,956) |
Distributions to shareholders from net realized gain | (79,768) | (9,447) |
Total distributions | (146,869) | (55,403) |
Share transactions - net increase (decrease) | 3,973,364 | (46,535) |
Total increase (decrease) in net assets | 4,215,182 | 219,916 |
| | |
Net Assets | | |
Beginning of period | 2,311,647 | 2,091,731 |
End of period (including undistributed net investment income of $1,151 and undistributed net investment income of $363, respectively) | $ 6,526,829 | $ 2,311,647 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.44 | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .738 | .953 | .739 | .858 | .744 |
Net realized and unrealized gain (loss) | 4.763 | 6.186 | .384 | 5.317 | 4.191 |
Total from investment operations | 5.501 | 7.139 | 1.123 | 6.175 | 4.935 |
Distributions from net investment income | (.688) | (.909) | (.769) | (.802) | (.710) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.201) | (1.109) | (.903) | (.995) | (.875) |
Net asset value, end of period | $ 57.74 | $ 54.44 | $ 48.41 | $ 48.19 | $ 43.01 |
Total ReturnA, B | 10.39% | 14.95% | 2.44% | 14.43% | 12.72% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.31% | 1.85% | 1.59% | 1.82% | 1.76% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 178 | $ 121 | $ 76 | $ 34 | $ 32 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.44 | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .599 | .820 | .624 | .736 | .636 |
Net realized and unrealized gain (loss) | 4.761 | 6.201 | .367 | 5.326 | 4.191 |
Total from investment operations | 5.360 | 7.021 | .991 | 6.062 | 4.827 |
Distributions from net investment income | (.547) | (.781) | (.647) | (.689) | (.612) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.060) | (.981) | (.781) | (.882) | (.777) |
Net asset value, end of period | $ 57.74 | $ 54.44 | $ 48.40 | $ 48.19 | $ 43.01 |
Total ReturnA, B | 10.11% | 14.69% | 2.15% | 14.15% | 12.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.07% | 1.59% | 1.34% | 1.57% | 1.50% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 190 | $ 135 | $ 105 | $ 127 | $ 37 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.33 | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .315 | .561 | .390 | .505 | .424 |
Net realized and unrealized gain (loss) | 4.755 | 6.186 | .379 | 5.319 | 4.192 |
Total from investment operations | 5.070 | 6.747 | .769 | 5.824 | 4.616 |
Distributions from net investment income | (.327) | (.587) | (.435) | (.441) | (.421) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (1.840) | (.787) | (.569) | (.634) | (.586) |
Net asset value, end of period | $ 57.56 | $ 54.33 | $ 48.37 | $ 48.17 | $ 42.98 |
Total ReturnA, B | 9.57% | 14.10% | 1.67% | 13.59% | 11.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .56% | 1.09% | .84% | 1.08% | 1.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 110 | $ 84 | $ 74 | $ 72 | $ 91 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2038
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .881 | 1.076 | .857 | .969 | .849 |
Net realized and unrealized gain (loss) | 4.759 | 6.200 | .377 | 5.332 | 4.187 |
Total from investment operations | 5.640 | 7.276 | 1.234 | 6.301 | 5.036 |
Distributions from net investment income | (.827) | (1.036) | (.880) | (.918) | (.831) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.340) | (1.236) | (1.014) | (1.111) | (.996) |
Net asset value, end of period | $ 57.75 | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 |
Total ReturnA | 10.66% | 15.26% | 2.68% | 14.74% | 12.99% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.56% | 2.10% | 1.84% | 2.07% | 2.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,017 | $ 1,942 | $ 1,811 | $ 1,345 | $ 2,051 |
Portfolio turnover rate C | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .879 | 1.078 | .857 | .973 | .848 |
Net realized and unrealized gain (loss) | 4.761 | 6.198 | .377 | 5.328 | 4.188 |
Total from investment operations | 5.640 | 7.276 | 1.234 | 6.301 | 5.036 |
Distributions from net investment income | (.827) | (1.036) | (.880) | (.918) | (.831) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.340) | (1.236) | (1.014) | (1.111) | (.996) |
Net asset value, end of period | $ 57.75 | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 |
Total ReturnA | 10.66% | 15.26% | 2.68% | 14.74% | 12.99% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.56% | 2.10% | 1.84% | 2.07% | 2.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 32 | $ 29 | $ 25 | $ 29 | $ 38 |
Portfolio turnover rate C | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.6 | 6.6 |
Fidelity Blue Chip Growth Fund | 6.2 | 6.3 |
Fidelity Equity-Income Fund | 9.6 | 9.5 |
Fidelity Large Cap Stock Fund | 7.2 | 7.1 |
Fidelity Series 100 Index Fund | 6.3 | 6.2 |
Fidelity Series Broad Market Opportunities Fund | 10.9 | 11.0 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 47.7 | 47.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 10.5 | 10.6 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.9 | 3.0 |
Fidelity Strategic Income Fund | 2.9 | 3.0 |
| 5.8 | 6.0 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.4 | 5.5 |
Fidelity Strategic Real Return Fund | 5.4 | 5.4 |
Fidelity Total Bond Fund | 16.2 | 16.3 |
| 27.0 | 27.2 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 4.5 | 4.2 |
Fidelity Short-Term Bond Fund | 4.5 | 4.3 |
| 9.0 | 8.5 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.5% | |
| High Yield Fixed-Income Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 27.0% | |
| Short-Term Funds | 9.0% | |
Six months ago |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.6% | |
| High Yield Fixed-Income Funds | 6.0% | |
| Investment Grade Fixed-Income Funds | 27.2% | |
| Short-Term Funds | 8.5% | |
Expected |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.5% | |
 | High Yield Fixed-Income Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 26.6% | |
| Short-Term Funds | 9.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2040 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 58.2% |
| Shares | | Value |
Domestic Equity Funds - 47.7% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 26,948 | | $ 570,769 |
Fidelity Blue Chip Growth Fund (b) | 8,040 | | 536,330 |
Fidelity Equity-Income Fund (b) | 13,511 | | 827,975 |
Fidelity Large Cap Stock Fund (b) | 22,519 | | 623,774 |
Fidelity Series 100 Index Fund (b) | 42,833 | | 544,835 |
Fidelity Series Broad Market Opportunities Fund (b) | 61,503 | | 944,688 |
Fidelity Series Small Cap Opportunities Fund (b) | 6,106 | | 79,140 |
TOTAL DOMESTIC EQUITY FUNDS | | 4,127,511 |
International Equity Funds - 10.5% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 22,847 | | 911,830 |
TOTAL EQUITY FUNDS (Cost $4,347,774) |
5,039,341
|
Fixed-Income Funds - 32.8% |
| | | |
High Yield Fixed-Income Funds - 5.8% |
Fidelity Capital & Income Fund (b) | 25,161 | | 252,865 |
Fidelity Strategic Income Fund (b) | 22,850 | | 255,004 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 507,869 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 27.0% |
Fidelity Government Income Fund (b) | 45,190 | | $ 468,618 |
Fidelity Strategic Real Return Fund (b) | 48,450 | | 463,668 |
Fidelity Total Bond Fund (b) | 131,518 | | 1,404,609 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,336,895 |
TOTAL FIXED-INCOME FUNDS (Cost $2,830,051) |
2,844,764
|
Short-Term Funds - 9.0% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 390,387 | | 390,387 |
Fidelity Short-Term Bond Fund (b) | 45,373 | | 389,755 |
TOTAL SHORT-TERM FUNDS (Cost $779,548) |
780,142
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,957,373) | | 8,664,247 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (390) |
NET ASSETS - 100% | $ 8,663,857 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 459,465 | $ 650,709 | $ 243,106 | $ 6,990 | $ 911,830 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 279,514 | 445,605 | 157,559 | 357 | 570,769 |
Fidelity Blue Chip Growth Fund | 259,016 | 391,018 | 159,510 | 1,160 | 536,330 |
Fidelity Capital & Income Fund | 122,327 | 182,125 | 58,611 | 8,218 | 252,865 |
Fidelity Equity-Income Fund | 398,541 | 576,228 | 203,013 | 15,625 | 827,975 |
Fidelity Government Income Fund | 216,334 | 345,782 | 98,137 | 5,484 | 468,618 |
Fidelity Institutional Money Market Portfolio Institutional Class | 160,455 | 306,618 | 76,686 | 218 | 390,387 |
Fidelity Large Cap Stock Fund | 299,339 | 445,336 | 162,411 | 4,025 | 623,774 |
Fidelity Series 100 Index Fund | 258,437 | 365,203 | 129,445 | 6,071 | 544,835 |
Fidelity Series Broad Market Opportunities Fund | 458,271 | 648,086 | 252,461 | 2,528 | 944,688 |
Fidelity Series Small Cap Opportunities Fund | 39,848 | 64,266 | 22,393 | 12 | 79,140 |
Fidelity Short-Term Bond Fund | 160,540 | 305,474 | 76,686 | 2,388 | 389,755 |
Fidelity Strategic Income Fund | 122,231 | 188,244 | 58,872 | 6,988 | 255,004 |
Fidelity Strategic Real Return Fund | 216,334 | 346,418 | 107,931 | 6,822 | 463,668 |
Fidelity Total Bond Fund | 650,627 | 1,038,097 | 298,609 | 28,707 | 1,404,609 |
Total | $ 4,101,279 | $ 6,299,209 | $ 2,105,430 | $ 95,593 | $ 8,664,247 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,957,373) - See accompanying schedule | | $ 8,664,247 |
Receivable for fund shares sold | | 25,000 |
Total assets | | 8,689,247 |
| | |
Liabilities | | |
Payable for investments purchased | $ 25,002 | |
Distribution and service plan fees payable | 388 | |
Total liabilities | | 25,390 |
| | |
Net Assets | | $ 8,663,857 |
Net Assets consist of: | | |
Paid in capital | | $ 7,921,152 |
Undistributed net investment income | | 1,543 |
Accumulated undistributed net realized gain (loss) on investments | | 34,288 |
Net unrealized appreciation (depreciation) on investments | | 706,874 |
Net Assets | | $ 8,663,857 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($108,893 ÷ 1,843.14 shares) | | $ 59.08 |
| | |
Maximum offering price per share (100/94.25 of $59.08) | | $ 62.68 |
Class T:
Net Asset Value and redemption price per share ($450,718 ÷ 7,620.11 shares) | | $ 59.15 |
| | |
Maximum offering price per share (100/96.50 of $59.15) | | $ 61.30 |
| | |
Class C:
Net Asset Value and offering price per share ($205,224 ÷ 3,488.73 shares)A | | $ 58.82 |
| | |
Income Replacement 2040:
Net Asset Value, offering price and redemption price per share ($7,881,689 ÷ 133,497.80 shares) | | $ 59.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($17,333 ÷ 293.57 shares) | | $ 59.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 95,593 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,553 | |
Independent trustees' compensation | 22 | |
Total expenses before reductions | 2,575 | |
Expense reductions | (22) | 2,553 |
Net investment income (loss) | | 93,040 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (950) | |
Capital gain distributions from underlying funds | 121,843 | |
Total net realized gain (loss) | | 120,893 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 370,134 |
Net gain (loss) | | 491,027 |
Net increase (decrease) in net assets resulting from operations | | $ 584,067 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 93,040 | $ 61,641 |
Net realized gain (loss) | 120,893 | 103,462 |
Change in net unrealized appreciation (depreciation) | 370,134 | 281,207 |
Net increase (decrease) in net assets resulting from operations | 584,067 | 446,310 |
Distributions to shareholders from net investment income | (92,218) | (61,371) |
Distributions to shareholders from net realized gain | (72,509) | (14,161) |
Total distributions | (164,727) | (75,532) |
Share transactions - net increase (decrease) | 4,143,369 | 1,101,109 |
Total increase (decrease) in net assets | 4,562,709 | 1,471,887 |
| | |
Net Assets | | |
Beginning of period | 4,101,148 | 2,629,261 |
End of period (including undistributed net investment income of $1,543 and undistributed net investment income of $721, respectively) | $ 8,663,857 | $ 4,101,148 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.91 | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .742 | .927 | .762 | .789 | .722 |
Net realized and unrealized gain (loss) | 5.022 | 6.538 | .331 | 5.608 | 4.298 |
Total from investment operations | 5.764 | 7.465 | 1.093 | 6.397 | 5.020 |
Distributions from net investment income | (.712) | (.933) | (.771) | (.805) | (.710) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.594) | (1.185) | (.903) | (.997) | (.810) |
Net asset value, end of period | $ 59.08 | $ 54.91 | $ 48.63 | $ 48.44 | $ 43.04 |
Total ReturnA, B | 10.68% | 15.58% | 2.36% | 14.94% | 12.97% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .24% F | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .24% F | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .24% F | .25% | .25% | .25% |
Net investment income (loss) | 1.28% | 1.79% | 1.64% | 1.67% | 1.70% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 109 | $ 10 | $ 7 | $ 96 | $ 34 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.00 | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .605 | .781 | .649 | .672 | .616 |
Net realized and unrealized gain (loss) | 5.021 | 6.563 | .312 | 5.604 | 4.301 |
Total from investment operations | 5.626 | 7.344 | .961 | 6.276 | 4.917 |
Distributions from net investment income | (.594) | (.702) | (.649) | (.704) | (.607) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.476) | (.954) | (.781) | (.896) | (.707) |
Net asset value, end of period | $ 59.15 | $ 55.00 | $ 48.61 | $ 48.43 | $ 43.05 |
Total ReturnA, B | 10.40% | 15.30% | 2.08% | 14.64% | 12.69% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .49% F | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% F | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .49% F | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.04% | 1.53% | 1.39% | 1.42% | 1.45% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 451 | $ 10 | $ 51 | $ 131 | $ 111 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.75 | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .304 | .532 | .415 | .435 | .402 |
Net realized and unrealized gain (loss) | 5.003 | 6.524 | .310 | 5.609 | 4.305 |
Total from investment operations | 5.307 | 7.056 | .725 | 6.044 | 4.707 |
Distributions from net investment income | (.355) | (.604) | (.463) | (.482) | (.397) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.237) | (.856) | (.595) | (.674) | (.497) |
Net asset value, end of period | $ 58.82 | $ 54.75 | $ 48.55 | $ 48.42 | $ 43.05 |
Total ReturnA, B | 9.84% | 14.71% | 1.57% | 14.08% | 12.13% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .53% | 1.03% | .89% | .93% | .95% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 205 | $ 154 | $ 107 | $ 79 | $ 99 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2040
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.87 | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .880 | 1.051 | .885 | .910 | .833 |
Net realized and unrealized gain (loss) | 5.027 | 6.531 | .317 | 5.602 | 4.297 |
Total from investment operations | 5.907 | 7.582 | 1.202 | 6.512 | 5.130 |
Distributions from net investment income | (.855) | (1.050) | (.900) | (.940) | (.820) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.737) | (1.302) | (1.032) | (1.132) | (.920) |
Net asset value, end of period | $ 59.04 | $ 54.87 | $ 48.59 | $ 48.42 | $ 43.04 |
Total ReturnA | 10.97% | 15.86% | 2.60% | 15.21% | 13.26% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductionsD | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 2.03% | 1.89% | 1.93% | 1.96% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,882 | $ 3,925 | $ 2,462 | $ 1,797 | $ 1,262 |
Portfolio turnover rate C | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.88 | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .887 | 1.040 | .865 | .906 | .828 |
Net realized and unrealized gain (loss) | 5.010 | 6.552 | .327 | 5.616 | 4.302 |
Total from investment operations | 5.897 | 7.592 | 1.192 | 6.522 | 5.130 |
Distributions from net investment income | (.855) | (1.050) | (.900) | (.940) | (.820) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.737) | (1.302) | (1.032) | (1.132) | (.920) |
Net asset value, end of period | $ 59.04 | $ 54.88 | $ 48.59 | $ 48.43 | $ 43.04 |
Total ReturnA | 10.95% | 15.88% | 2.58% | 15.24% | 13.26% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 2.03% | 1.89% | 1.93% | 1.96% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17 | $ 2 | $ 2 | $ 48 | $ 62 |
Portfolio turnover rate C | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2042 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.8 | 6.8 |
Fidelity Blue Chip Growth Fund | 6.3 | 6.4 |
Fidelity Equity-Income Fund | 9.8 | 9.8 |
Fidelity Large Cap Stock Fund | 7.4 | 7.3 |
Fidelity Series 100 Index Fund | 6.5 | 6.4 |
Fidelity Series Broad Market Opportunities Fund | 11.2 | 11.3 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 48.9 | 49.0 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 11.6 | 11.7 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 3.1 | 3.2 |
Fidelity Strategic Income Fund | 3.1 | 3.2 |
| 6.2 | 6.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.4 | 5.4 |
Fidelity Strategic Real Return Fund | 5.3 | 5.4 |
Fidelity Total Bond Fund | 16.0 | 16.2 |
| 26.7 | 27.0 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 3.3 | 2.9 |
Fidelity Short-Term Bond Fund | 3.3 | 3.0 |
| 6.6 | 5.9 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 48.9% | |
| International Equity Funds | 11.6% | |
| High Yield Fixed-Income Funds | 6.2% | |
| Investment Grade Fixed-Income Funds | 26.7% | |
| Short-Term Funds | 6.6% | |
Six months ago |
| Domestic Equity Funds | 49.0% | |
| International Equity Funds | 11.7% | |
| High Yield Fixed-Income Funds | 6.4% | |
| Investment Grade Fixed-Income Funds | 27.0% | |
| Short-Term Funds | 5.9% | |
Expected |
| Domestic Equity Funds | 49.0% | |
| International Equity Funds | 11.4% | |
| High Yield Fixed-Income Funds | 6.0% | |
| Investment Grade Fixed-Income Funds | 26.4% | |
| Short-Term Funds | 7.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2042 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 60.5% |
| Shares | | Value |
Domestic Equity Funds - 48.9% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 107,995 | | $ 2,287,329 |
Fidelity Blue Chip Growth Fund (b) | 32,226 | | 2,149,768 |
Fidelity Equity-Income Fund (b) | 54,179 | | 3,320,092 |
Fidelity Large Cap Stock Fund (b) | 90,333 | | 2,502,226 |
Fidelity Series 100 Index Fund (b) | 171,688 | | 2,183,876 |
Fidelity Series Broad Market Opportunities Fund (b) | 246,673 | | 3,788,904 |
Fidelity Series Small Cap Opportunities Fund (b) | 24,613 | | 318,990 |
TOTAL DOMESTIC EQUITY FUNDS | | 16,551,185 |
International Equity Funds - 11.6% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 97,857 | | 3,905,472 |
TOTAL EQUITY FUNDS (Cost $17,561,177) |
20,456,657
|
Fixed-Income Funds - 32.9% |
| | | |
High Yield Fixed-Income Funds - 6.2% |
Fidelity Capital & Income Fund (b) | 104,072 | | 1,045,928 |
Fidelity Strategic Income Fund (b) | 94,513 | | 1,054,767 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 2,100,695 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 26.7% |
Fidelity Government Income Fund (b) | 174,925 | | $ 1,813,971 |
Fidelity Strategic Real Return Fund (b) | 187,545 | | 1,794,805 |
Fidelity Total Bond Fund (b) | 508,777 | | 5,433,737 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 9,042,513 |
TOTAL FIXED-INCOME FUNDS (Cost $10,989,575) |
11,143,208
|
Short-Term Funds - 6.6% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,118,632 | | 1,118,632 |
Fidelity Short-Term Bond Fund (b) | 130,011 | | 1,116,794 |
TOTAL SHORT-TERM FUNDS (Cost $2,232,995) |
2,235,426
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $30,783,747) | | 33,835,291 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (612) |
NET ASSETS - 100% | $ 33,834,679 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 1,747,407 | $ 2,489,959 | $ 495,690 | $ 29,506 | $ 3,905,472 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 997,084 | 1,586,748 | 302,112 | 1,386 | 2,287,329 |
Fidelity Blue Chip Growth Fund | 923,125 | 1,380,913 | 327,567 | 4,338 | 2,149,768 |
Fidelity Capital & Income Fund | 450,899 | 683,962 | 116,549 | 33,218 | 1,045,928 |
Fidelity Equity-Income Fund | 1,419,415 | 2,090,323 | 408,224 | 62,267 | 3,320,092 |
Fidelity Government Income Fund | 742,543 | 1,223,502 | 169,314 | 20,743 | 1,813,971 |
Fidelity Institutional Money Market Portfolio Institutional Class | 373,043 | 820,665 | 75,076 | 585 | 1,118,632 |
Fidelity Large Cap Stock Fund | 1,067,175 | 1,589,244 | 312,271 | 15,727 | 2,502,226 |
Fidelity Series 100 Index Fund | 921,057 | 1,305,875 | 240,239 | 23,413 | 2,183,876 |
Fidelity Series Broad Market Opportunities Fund | 1,632,066 | 2,299,619 | 488,199 | 9,804 | 3,788,904 |
Fidelity Series Small Cap Opportunities Fund | 142,355 | 232,285 | 45,287 | 46 | 318,990 |
Fidelity Short-Term Bond Fund | 373,234 | 820,468 | 77,824 | 6,442 | 1,116,794 |
Fidelity Strategic Income Fund | 450,550 | 707,312 | 116,967 | 28,275 | 1,054,767 |
Fidelity Strategic Real Return Fund | 742,556 | 1,225,262 | 206,867 | 26,072 | 1,794,805 |
Fidelity Total Bond Fund | 2,230,384 | 3,676,591 | 527,183 | 108,366 | 5,433,737 |
Total | $ 14,212,893 | $ 22,132,728 | $ 3,909,369 | $ 370,188 | $ 33,835,291 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2042 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $30,783,747) - See accompanying schedule | | $ 33,835,291 |
Receivable for investments sold | | 16,307 |
Receivable for fund shares sold | | 25,000 |
Total assets | | 33,876,598 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 41,300 | |
Distribution and service plan fees payable | 619 | |
Total liabilities | | 41,919 |
| | |
Net Assets | | $ 33,834,679 |
Net Assets consist of: | | |
Paid in capital | | $ 30,568,723 |
Undistributed net investment income | | 5,782 |
Accumulated undistributed net realized gain (loss) on investments | | 208,630 |
Net unrealized appreciation (depreciation) on investments | | 3,051,544 |
Net Assets | | $ 33,834,679 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($565,331 ÷ 9,555.31 shares) | | $ 59.16 |
| | |
Maximum offering price per share (100/94.25 of $59.16) | | $ 62.77 |
Class T:
Net Asset Value and redemption price per share ($481,685 ÷ 8,139.57 shares) | | $ 59.18 |
| | |
Maximum offering price per share (100/96.50 of $59.18) | | $ 61.33 |
| | |
Class C:
Net Asset Value and offering price per share ($366,224 ÷ 6,206.72 shares)A | | $ 59.00 |
| | |
Income Replacement 2042:
Net Asset Value, offering price and redemption price per share ($32,312,500 ÷ 545,964.54 shares) | | $ 59.18 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($108,939 ÷ 1,840.79 shares) | | $ 59.18 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 370,188 |
| | |
Expenses | | |
Distribution and service plan fees | $ 4,843 | |
Independent trustees' compensation | 85 | |
Total expenses before reductions | 4,928 | |
Expense reductions | (85) | 4,843 |
Net investment income (loss) | | 365,345 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (28,795) | |
Capital gain distributions from underlying funds | 470,345 | |
Total net realized gain (loss) | | 441,550 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 1,427,819 |
Net gain (loss) | | 1,869,369 |
Net increase (decrease) in net assets resulting from operations | | $ 2,234,714 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 365,345 | $ 218,472 |
Net realized gain (loss) | 441,550 | 390,240 |
Change in net unrealized appreciation (depreciation) | 1,427,819 | 1,032,865 |
Net increase (decrease) in net assets resulting from operations | 2,234,714 | 1,641,577 |
Distributions to shareholders from net investment income | (361,966) | (217,103) |
Distributions to shareholders from net realized gain | (405,210) | (34,182) |
Total distributions | (767,176) | (251,285) |
Share transactions - net increase (decrease) | 18,154,401 | 5,481,063 |
Total increase (decrease) in net assets | 19,621,939 | 6,871,355 |
| | |
Net Assets | | |
Beginning of period | 14,212,740 | 7,341,385 |
End of period (including undistributed net investment income of $5,782 and undistributed net investment income of $2,401, respectively) | $ 33,834,679 | $ 14,212,740 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.32 | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .755 | .977 | .782 | .757 | .747 |
Net realized and unrealized gain (loss) | 5.194 | 6.833 | .281 | 5.719 | 4.285 |
Total from investment operations | 5.949 | 7.810 | 1.063 | 6.476 | 5.032 |
Distributions from net investment income | (.747) | (.973) | (.791) | (.801) | (.717) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.109) | (1.150) | (.923) | (.996) | (.822) |
Net asset value, end of period | $ 59.16 | $ 55.32 | $ 48.66 | $ 48.52 | $ 43.04 |
Total ReturnA, B | 11.01% | 16.28% | 2.30% | 15.12% | 13.00% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.30% | 1.86% | 1.66% | 1.61% | 1.77% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 565 | $ 70 | $ 20 | $ 23 | $ 29 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.33 | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .605 | .836 | .660 | .637 | .642 |
Net realized and unrealized gain (loss) | 5.216 | 6.839 | .287 | 5.727 | 4.281 |
Total from investment operations | 5.821 | 7.675 | .947 | 6.364 | 4.923 |
Distributions from net investment income | (.609) | (.838) | (.675) | (.679) | (.608) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (1.971) | (1.015) | (.807) | (.874) | (.713) |
Net asset value, end of period | $ 59.18 | $ 55.33 | $ 48.67 | $ 48.53 | $ 43.04 |
Total ReturnA, B | 10.77% | 15.98% | 2.05% | 14.85% | 12.71% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.05% | 1.61% | 1.42% | 1.35% | 1.52% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 482 | $ 153 | $ 132 | $ 29 | $ 37 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.21 | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .317 | .582 | .427 | .402 | .430 |
Net realized and unrealized gain (loss) | 5.194 | 6.821 | .290 | 5.719 | 4.275 |
Total from investment operations | 5.511 | 7.403 | .717 | 6.121 | 4.705 |
Distributions from net investment income | (.359) | (.656) | (.465) | (.456) | (.390) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (1.721) | (.833) | (.597) | (.651) | (.495) |
Net asset value, end of period | $ 59.00 | $ 55.21 | $ 48.64 | $ 48.52 | $ 43.05 |
Total ReturnA, B | 10.19% | 15.40% | 1.55% | 14.26% | 12.12% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .55% | 1.12% | .91% | .85% | 1.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 366 | $ 97 | $ 24 | $ 28 | $ 37 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2042
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.32 | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .896 | 1.099 | .897 | .880 | .857 |
Net realized and unrealized gain (loss) | 5.202 | 6.837 | .284 | 5.719 | 4.279 |
Total from investment operations | 6.098 | 7.936 | 1.181 | 6.599 | 5.136 |
Distributions from net investment income | (.876) | (1.089) | (.909) | (.924) | (.831) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.238) | (1.266) | (1.041) | (1.119) | (.936) |
Net asset value, end of period | $ 59.18 | $ 55.32 | $ 48.65 | $ 48.51 | $ 43.03 |
Total ReturnA | 11.30% | 16.57% | 2.56% | 15.42% | 13.27% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.11% | 1.91% | 1.86% | 2.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 32,313 | $ 13,862 | $ 7,139 | $ 5,524 | $ 3,395 |
Portfolio turnover rate C | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.31 | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .897 | 1.095 | .896 | .874 | .855 |
Net realized and unrealized gain (loss) | 5.211 | 6.841 | .275 | 5.725 | 4.281 |
Total from investment operations | 6.108 | 7.936 | 1.171 | 6.599 | 5.136 |
Distributions from net investment income | (.876) | (1.089) | (.909) | (.924) | (.831) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.238) | (1.266) | (1.041) | (1.119) | (.936) |
Net asset value, end of period | $ 59.18 | $ 55.31 | $ 48.64 | $ 48.51 | $ 43.03 |
Total ReturnA | 11.32% | 16.57% | 2.54% | 15.42% | 13.27% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.11% | 1.91% | 1.86% | 2.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 109 | $ 30 | $ 26 | $ 29 | $ 38 |
Portfolio turnover rate C | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended July 31, 2014
1. Organization.
Fidelity Income Replacement 2016 FundSM, Fidelity Income Replacement 2018 FundSM, Fidelity Income Replacement 2020 FundSM, Fidelity Income Replacement 2022 FundSM, Fidelity Income Replacement 2024 FundSM, Fidelity Income Replacement 2026 FundSM, Fidelity Income Replacement 2028 FundSM, Fidelity Income Replacement 2030 FundSM, Fidelity Income Replacement 2032 FundSM, Fidelity Income Replacement 2034 FundSM, Fidelity Income Replacement 2036 FundSM, Fidelity Income Replacement 2038 FundSM, Fidelity Income Replacement 2040 FundSM and Fidelity Income Replacement 2042 FundSM (the Funds) are funds of Fidelity Income Fund (the Trust). The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. The Funds invest primarily in a combination of other Fidelity equity, bond, and short-term funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR).
The Funds are designed for investors who seek to convert accumulated assets into regular payments over a defined period of time. The payment strategy for each Fund is designed to be implemented through a shareholder's voluntary participation in the Smart Payment Program. Participation in the Smart Payment Program will result in the gradual liquidation of the shareholder's entire investment in the Fund by its horizon date. Each Fund's name refers to the year of its horizon date.
Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund offer Class A, Class T, Class C, Income Replacement and Institutional Class shares. Fidelity Income Replacement 2016 Fund and Fidelity Income Replacement 2018 Fund offer Income Replacement shares. Fidelity Income Replacement 2016 Fund's (effective after the close of business on January 31, 2012) and Fidelity Income Replacement 2018 Fund's (effective after the close of business on May 30, 2014) Class A, Class T, Class C and Institutional Class shares are closed to new accounts and additional purchases, except for reinvestments. Each class has equal rights as to assets and voting privileges, except for matters affecting a single class.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists each of the Underlying Funds as an investment of the Fund but does not include the underlying holdings of each Underlying Fund. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with the Underlying Funds. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Underlying Funds' expenses through the impact of these expenses on each Underlying Fund's NAV. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2014, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized
appreciation | Gross unrealized
depreciation | Net unrealized
appreciation
(depreciation) on
securities and other
investments |
Fidelity Income Replacement 2016 Fund | $ 4,727,979 | $ 266,625 | $ - | $ 266,625 |
Fidelity Income Replacement 2018 Fund | 6,879,868 | 358,934 | (38,806) | 320,128 |
Fidelity Income Replacement 2020 Fund | 7,895,745 | 748,229 | (34,529) | 713,700 |
Fidelity Income Replacement 2022 Fund | 10,060,026 | 597,953 | (53,513) | 544,440 |
Fidelity Income Replacement 2024 Fund | 6,988,599 | 453,850 | (27,940) | 425,910 |
Fidelity Income Replacement 2026 Fund | 4,000,042 | 324,496 | (18,964) | 305,532 |
Fidelity Income Replacement 2028 Fund | 21,717,924 | 1,310,459 | (98,149) | 1,212,310 |
Fidelity Income Replacement 2030 Fund | 14,706,102 | 1,205,374 | (45,783) | 1,159,591 |
Fidelity Income Replacement 2032 Fund | 7,258,651 | 833,897 | (38,464) | 795,433 |
Fidelity Income Replacement 2034 Fund | 7,977,839 | 855,829 | (27,841) | 827,988 |
Fidelity Income Replacement 2036 Fund | 6,642,877 | 687,221 | (42,288) | 644,933 |
Fidelity Income Replacement 2038 Fund | 5,931,649 | 616,384 | (20,995) | 595,389 |
Fidelity Income Replacement 2040 Fund | 7,984,252 | 718,128 | (38,133) | 679,995 |
Fidelity Income Replacement 2042 Fund | 30,856,879 | 3,103,053 | (124,641) | 2,978,412 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed
ordinary income | Undistributed
long-term capital
gain | Capital loss
carryforward | Net unrealized
appreciation
(depreciation) |
Fidelity Income Replacement 2016 Fund | $ 490 | $ 83,012 | $ - | $ 266,625 |
Fidelity Income Replacement 2018 Fund | 1,164 | - | (330,516) | 320,128 |
Fidelity Income Replacement 2020 Fund | 6,355 | 61,768 | - | 713,700 |
Fidelity Income Replacement 2022 Fund | 7,205 | - | (408,076) | 544,440 |
Fidelity Income Replacement 2024 Fund | 2,870 | 49,065 | - | 425,910 |
Fidelity Income Replacement 2026 Fund | 821 | - | (105,055) | 305,532 |
Fidelity Income Replacement 2028 Fund | 4,387 | - | (178,957) | 1,212,310 |
Fidelity Income Replacement 2030 Fund | 3,020 | 94,764 | - | 1,159,591 |
Fidelity Income Replacement 2032 Fund | 1,555 | 35,363 | (36,427) | 795,433 |
Fidelity Income Replacement 2034 Fund | 1,698 | 72,754 | - | 827,988 |
Fidelity Income Replacement 2036 Fund | 1,300 | - | (8,454) | 644,933 |
Fidelity Income Replacement 2038 Fund | 1,151 | 49,838 | - | 595,389 |
Fidelity Income Replacement 2040 Fund | 1,543 | 66,773 | (5,605) | 679,995 |
Fidelity Income Replacement 2042 Fund | 5,782 | 281,761 | - | 2,978,412 |
Annual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2018 | 2019 | Total with expiration |
Fidelity Income Replacement 2018 Fund | $ (293,304) | $ (37,212) | $ (330,516) |
Fidelity Income Replacement 2022 Fund | (333,958) | (74,118) | (408,076) |
Fidelity Income Replacement 2026 Fund | (105,055) | - | (105,055) |
Fidelity Income Replacement 2028 Fund | - | (178,957) | (178,957) |
Fidelity Income Replacement 2032 Fund | (36,427) | - | (36,427) |
Fidelity Income Replacement 2036 Fund | (5,577) | (2,877) | (8,454) |
Fidelity Income Replacement 2040 Fund | - | (5,605) | (5,605) |
Due to large redemptions or subscriptions in a prior period, capital losses that will be available to offset future capital gains of Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2032 Fund and Fidelity Income Replacement 2040 Fund will be limited to approximately $28,019, $38,679, and $27,942 per year, respectively.
Due to large redemptions during November 2013, capital losses that will be available to offset future capital gains of Fidelity Income Replacement 2022 Fund will be limited to approximately $216,299 per year.
The tax character of distributions paid was as follows:
July 31, 2014 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2016 Fund | $ 46,510 | $ - | $ 46,510 |
Fidelity Income Replacement 2018 Fund | 87,147 | - | 87,147 |
Fidelity Income Replacement 2020 Fund | 112,536 | 37,741 | 150,277 |
Fidelity Income Replacement 2022 Fund | 130,346 | - | 130,346 |
Fidelity Income Replacement 2024 Fund | 88,925 | 17,150 | 106,075 |
Fidelity Income Replacement 2026 Fund | 59,690 | - | 59,690 |
Fidelity Income Replacement 2028 Fund | 205,399 | - | 205,399 |
Fidelity Income Replacement 2030 Fund | 203,588 | - | 203,588 |
Fidelity Income Replacement 2032 Fund | 122,360 | 55,932 | 178,292 |
Fidelity Income Replacement 2034 Fund | 109,903 | 18,311 | 128,214 |
Fidelity Income Replacement 2036 Fund | 105,819 | - | 105,819 |
Fidelity Income Replacement 2038 Fund | 80,309 | 66,560 | 146,869 |
Fidelity Income Replacement 2040 Fund | 110,838 | 53,889 | 164,727 |
Fidelity Income Replacement 2042 Fund | 433,304 | 333,872 | 767,176 |
July 31, 2013 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2016 Fund | $ 112,389 | $ - | $ 112,389 |
Fidelity Income Replacement 2018 Fund | 118,283 | - | 118,283 |
Fidelity Income Replacement 2020 Fund | 114,787 | - | 114,787 |
Fidelity Income Replacement 2022 Fund | 104,849 | - | 104,849 |
Fidelity Income Replacement 2024 Fund | 51,499 | - | 51,499 |
Fidelity Income Replacement 2026 Fund | 45,798 | - | 45,798 |
Fidelity Income Replacement 2028 Fund | 150,766 | - | 150,766 |
Fidelity Income Replacement 2030 Fund | 97,611 | - | 97,611 |
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
July 31, 2013 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2032 Fund | $ 98,149 | $ 16,448 | $ 114,597 |
Fidelity Income Replacement 2034 Fund | 66,127 | - | 66,127 |
Fidelity Income Replacement 2036 Fund | 83,395 | - | 83,395 |
Fidelity Income Replacement 2038 Fund | 55,403 | - | 55,403 |
Fidelity Income Replacement 2040 Fund | 72,475 | 3,057 | 75,532 |
Fidelity Income Replacement 2042 Fund | 251,285 | - | 251,285 |
3. Purchases and Redemptions of Underlying Fund Shares.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
Fidelity Income Replacement 2016 Fund | 1,743,054 | 3,161,790 |
Fidelity Income Replacement 2018 Fund | 4,889,836 | 3,609,165 |
Fidelity Income Replacement 2020 Fund | 4,144,185 | 1,830,333 |
Fidelity Income Replacement 2022 Fund | 7,437,374 | 2,080,096 |
Fidelity Income Replacement 2024 Fund | 5,915,742 | 1,615,627 |
Fidelity Income Replacement 2026 Fund | 2,907,301 | 927,461 |
Fidelity Income Replacement 2028 Fund | 16,532,712 | 2,223,652 |
Fidelity Income Replacement 2030 Fund | 12,543,717 | 3,188,735 |
Fidelity Income Replacement 2032 Fund | 4,846,618 | 1,946,010 |
Fidelity Income Replacement 2034 Fund | 5,500,640 | 1,231,765 |
Fidelity Income Replacement 2036 Fund | 3,896,353 | 1,541,808 |
Fidelity Income Replacement 2038 Fund | 5,732,903 | 1,751,342 |
Fidelity Income Replacement 2040 Fund | 6,299,209 | 2,105,430 |
Fidelity Income Replacement 2042 Fund | 22,132,728 | 3,909,369 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (the investment adviser), an affiliate of FMR, provides the Funds with investment management related services. The Funds do not pay any fees for these services. Under the management contract, the investment adviser pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, each Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of each Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Fidelity Income Replacement 2016 Fund | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 615 | $ 2 |
Class T | .25% | .25% | 644 | 2 |
Class C | .75% | .25% | 5,150 | 1 |
| | | $ 6,409 | $ 5 |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | -% | .25% | $ 2,073 | $ - |
Class T | .25% | .25% | 2,092 | 2 |
Class C | .75% | .25% | 5,639 | 1,927 |
| | | $ 9,804 | $ 1,929 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | -% | .25% | $ 1,918 | $ 405 |
Class T | .25% | .25% | 478 | 6 |
Class C | .75% | .25% | 4,539 | 925 |
| | | $ 6,935 | $ 1,336 |
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2022 Fund | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| | | | |
Class A | -% | .25% | $ 975 | $ 4 |
Class T | .25% | .25% | 32 | 4 |
Class C | .75% | .25% | 1,584 | 1,272 |
| | | $ 2,591 | $ 1,280 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | -% | .25% | $ 894 | $ 301 |
Class T | .25% | .25% | 960 | 246 |
Class C | .75% | .25% | 1,296 | 56 |
| | | $ 3,150 | $ 603 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | -% | .25% | $ 902 | $ - |
Class T | .25% | .25% | 470 | 36 |
Class C | .75% | .25% | 320 | 320 |
| | | $ 1,692 | $ 356 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | -% | .25% | $ 447 | $ - |
Class T | .25% | .25% | 1,676 | 2 |
Class C | .75% | .25% | 223 | - |
| | | $ 2,346 | $ 2 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | -% | .25% | $ 536 | $ 4 |
Class T | .25% | .25% | 82 | 38 |
Class C | .75% | .25% | 3,151 | 309 |
| | | $ 3,769 | $ 351 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | -% | .25% | $ 998 | $ 20 |
Class T | .25% | .25% | 164 | 140 |
Class C | .75% | .25% | 920 | 480 |
| | | $ 2,082 | $ 640 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | -% | .25% | $ 228 | $ 52 |
Class T | .25% | .25% | 465 | 140 |
Class C | .75% | .25% | 548 | 212 |
| | | $ 1,241 | $ 404 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | -% | .25% | $ 313 | $ 62 |
Class T | .25% | .25% | 1,760 | 34 |
Class C | .75% | .25% | 3,612 | 1,107 |
| | | $ 5,685 | $ 1,203 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | -% | .25% | $ 352 | $ 9 |
Class T | .25% | .25% | 780 | 30 |
Class C | .75% | .25% | 1,053 | 175 |
| | | $ 2,185 | $ 214 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | -% | .25% | $ 144 | $ 22 |
Class T | .25% | .25% | 676 | 34 |
Class C | .75% | .25% | 1,733 | 260 |
| | | $ 2,553 | $ 316 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | -% | .25% | $ 796 | $ 51 |
Class T | .25% | .25% | 2,064 | 154 |
Class C | .75% | .25% | 1,983 | 1,605 |
| | | $ 4,843 | $ 1,810 |
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of each Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Income Replacement 2018 Fund | |
Class A | $ 840 |
Class T | 38 |
Class C* | 229 |
| $ 1,107 |
Fidelity Income Replacement 2020 Fund | |
Class A | $ 2,022 |
| |
Fidelity Income Replacement 2022 Fund | |
Class A | $ 224 |
| |
Fidelity Income Replacement 2024 Fund | |
Class A | $ 417 |
Class C* | 14 |
| $ 431 |
Fidelity Income Replacement 2026 Fund | |
Class T | $ 7 |
| |
Fidelity Income Replacement 2028 Fund | |
Class A | $ 976 |
Class T | 299 |
| $ 1,275 |
Fidelity Income Replacement 2030 Fund | |
Class A | $ 695 |
| |
Fidelity Income Replacement 2032 Fund | |
Class T | $ 36 |
| |
Fidelity Income Replacement 2036 Fund | |
Class A | $ 1,150 |
Class T | 383 |
| $ 1,533 |
Fidelity Income Replacement 2038 Fund | |
Class A | $ 341 |
| |
Fidelity Income Replacement 2040 Fund | |
Class A | $ 263 |
| |
Fidelity Income Replacement 2042 Fund | |
Class A | $ 3,718 |
Class T | 191 |
Class C* | 436 |
| $ 4,345 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
5. Expense Reductions.
FMR voluntarily agreed to reimburse the Funds to the extent annual operating expenses exceeded distribution and service plan fees applicable to each class. Some expenses, for example interest expense, are excluded from this reimbursement.
Annual Report
5. Expense Reductions - continued
The following Funds were in reimbursement during the period:
| Reimbursement* |
Fidelity Income Replacement 2016 Fund | $ 23 |
Fidelity Income Replacement 2018 Fund | 25 |
Fidelity Income Replacement 2020 Fund | 27 |
Fidelity Income Replacement 2022 Fund | 28 |
Fidelity Income Replacement 2024 Fund | 19 |
Fidelity Income Replacement 2026 Fund | 13 |
Fidelity Income Replacement 2028 Fund | 43 |
Fidelity Income Replacement 2030 Fund | 42 |
Fidelity Income Replacement 2032 Fund | 25 |
Fidelity Income Replacement 2034 Fund | 23 |
Fidelity Income Replacement 2036 Fund | 23 |
Fidelity Income Replacement 2038 Fund | 16 |
Fidelity Income Replacement 2040 Fund | 22 |
Fidelity Income Replacement 2042 Fund | 85 |
* Represents total amount reimbursed to the Fund. Each class has received a pro-rata allocation of reimbursement.
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2016 Fund | | |
From net investment income | | |
Class A | $ 1,345 | $ 7,086 |
Class T | 402 | 1,130 |
Class C | 403 | 2,837 |
Income Replacement 2016 | 39,487 | 70,663 |
Institutional Class | 198 | 447 |
Total | $ 41,835 | $ 82,163 |
From net realized gain | | |
Class A | $ 158 | $ 3,311 |
Class T | 101 | 617 |
Class C | 411 | 3,251 |
Income Replacement 2016 | 3,986 | 22,904 |
Institutional Class | 19 | 143 |
Total | $ 4,675 | $ 30,226 |
Fidelity Income Replacement 2018 Fund | | |
From net investment income | | |
Class A | $ 9,032 | $ 9,944 |
Class T | 3,943 | 1,343 |
Class C | 1,972 | 2,932 |
Income Replacement 2018 | 56,430 | 64,536 |
Institutional Class | 6,175 | 7,319 |
Total | $ 77,552 | $ 86,074 |
From net realized gain | | |
Class A | $ 1,216 | $ 4,058 |
Class T | 709 | 695 |
Class C | 655 | 2,364 |
Income Replacement 2018 | 6,313 | 22,722 |
Institutional Class | 702 | 2,370 |
Total | $ 9,595 | $ 32,209 |
Annual Report
Notes to Financial Statements - continued
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2020 Fund | | |
From net investment income | | |
Class A | $ 9,552 | $ 5,982 |
Class T | 909 | 2,133 |
Class C | 2,089 | 2,522 |
Income Replacement 2020 | 86,108 | 78,702 |
Institutional Class | 991 | 242 |
Total | $ 99,649 | $ 89,581 |
From net realized gain | | |
Class A | $ 5,948 | $ 1,965 |
Class T | 736 | 907 |
Class C | 2,820 | 1,535 |
Income Replacement 2020 | 40,555 | 20,732 |
Institutional Class | 569 | 67 |
Total | $ 50,628 | $ 25,206 |
Fidelity Income Replacement 2022 Fund | | |
From net investment income | | |
Class A | $ 4,868 | $ 5,998 |
Class T | 68 | 12 |
Class C | 834 | 279 |
Income Replacement 2022 | 108,906 | 76,474 |
Institutional Class | 400 | 64 |
Total | $ 115,076 | $ 82,827 |
From net realized gain | | |
Class A | $ 934 | $ 1,895 |
Class T | 2 | 3 |
Class C | 122 | 142 |
Income Replacement 2022 | 14,203 | 19,965 |
Institutional Class | 9 | 17 |
Total | $ 15,270 | $ 22,022 |
Fidelity Income Replacement 2024 Fund | | |
From net investment income | | |
Class A | $ 4,411 | $ 4,019 |
Class T | 1,845 | 2,626 |
Class C | 661 | 1,172 |
Income Replacement 2024 | 70,240 | 33,777 |
Institutional Class | 419 | 506 |
Total | $ 77,576 | $ 42,100 |
From net realized gain | | |
Class A | $ 2,848 | $ 647 |
Class T | 1,149 | 748 |
Class C | 691 | 465 |
Income Replacement 2024 | 23,642 | 7,431 |
Institutional Class | 169 | 108 |
Total | $ 28,499 | $ 9,399 |
Fidelity Income Replacement 2026 Fund | | |
From net investment income | | |
Class A | $ 4,432 | $ 5,115 |
Class T | 908 | 1,165 |
Class C | 178 | 125 |
Income Replacement 2026 | 45,416 | 30,035 |
Institutional Class | 428 | 495 |
Total | $ 51,362 | $ 36,935 |
From net realized gain | | |
Class A | $ 658 | $ 1,333 |
Class T | 292 | 329 |
Class C | 79 | 41 |
Income Replacement 2026 | 7,228 | 7,049 |
Institutional Class | 71 | 111 |
Total | $ 8,328 | $ 8,863 |
Annual Report
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2028 Fund | | |
From net investment income | | |
Class A | $ 2,236 | $ 2,263 |
Class T | 3,326 | 2,225 |
Class C | 114 | 253 |
Income Replacement 2028 | 173,291 | 118,706 |
Institutional Class | 1,314 | 760 |
Total | $ 180,281 | $ 124,207 |
From net realized gain | | |
Class A | $ 233 | $ 602 |
Class T | 942 | 568 |
Class C | 46 | 107 |
Income Replacement 2028 | 23,651 | 25,172 |
Institutional Class | 246 | 110 |
Total | $ 25,118 | $ 26,559 |
Fidelity Income Replacement 2030 Fund | | |
From net investment income | | |
Class A | $ 2,621 | $ 1,705 |
Class T | 156 | 201 |
Class C | 1,770 | 3,279 |
Income Replacement 2030 | 168,554 | 74,151 |
Institutional Class | 1,213 | 671 |
Total | $ 174,314 | $ 80,007 |
From net realized gain | | |
Class A | $ 547 | $ 386 |
Class T | 44 | 60 |
Class C | 831 | 1,336 |
Income Replacement 2030 | 27,620 | 15,711 |
Institutional Class | 232 | 111 |
Total | $ 29,274 | $ 17,604 |
Fidelity Income Replacement 2032 Fund | | |
From net investment income | | |
Class A | $ 5,304 | $ 3,854 |
Class T | 352 | 358 |
Class C | 527 | 598 |
Income Replacement 2032 | 96,700 | 76,811 |
Institutional Class | 305 | 342 |
Total | $ 103,188 | $ 81,963 |
From net realized gain | | |
Class A | $ 3,737 | $ 1,834 |
Class T | 380 | 199 |
Class C | 928 | 440 |
Income Replacement 2032 | 69,805 | 30,021 |
Institutional Class | 254 | 140 |
Total | $ 75,104 | $ 32,634 |
Fidelity Income Replacement 2034 Fund | | |
From net investment income | | |
Class A | $ 1,278 | $ 326 |
Class T | 909 | 537 |
Class C | 325 | 519 |
Income Replacement 2034 | 88,166 | 51,986 |
Institutional Class | 2,862 | 2,565 |
Total | $ 93,540 | $ 55,933 |
From net realized gain | | |
Class A | $ 746 | $ 76 |
Class T | 566 | 99 |
Class C | 342 | 184 |
Income Replacement 2034 | 31,749 | 9,314 |
Institutional Class | 1,271 | 521 |
Total | $ 34,674 | $ 10,194 |
Annual Report
Notes to Financial Statements - continued
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2036 Fund | | |
From net investment income | | |
Class A | $ 1,749 | $ 426 |
Class T | 3,664 | 4,336 |
Class C | 2,175 | 2,240 |
Income Replacement 2036 | 80,634 | 63,610 |
Institutional Class | 11 | 13 |
Total | $ 88,233 | $ 70,625 |
From net realized gain | | |
Class A | $ 404 | $ 81 |
Class T | 1,137 | 1,001 |
Class C | 1,121 | 622 |
Income Replacement 2036 | 14,922 | 11,064 |
Institutional Class | 2 | 2 |
Total | $ 17,586 | $ 12,770 |
Fidelity Income Replacement 2038 Fund | | |
From net investment income | | |
Class A | $ 1,737 | $ 1,288 |
Class T | 1,436 | 1,710 |
Class C | 621 | 899 |
Income Replacement 2038 | 62,847 | 41,508 |
Institutional Class | 460 | 551 |
Total | $ 67,101 | $ 45,956 |
From net realized gain | | |
Class A | $ 3,479 | $ 210 |
Class T | 3,745 | 429 |
Class C | 2,806 | 305 |
Income Replacement 2038 | 68,917 | 8,397 |
Institutional Class | 821 | 106 |
Total | $ 79,768 | $ 9,447 |
Fidelity Income Replacement 2040 Fund | | |
From net investment income | | |
Class A | $ 562 | $ 141 |
Class T | 1,539 | 240 |
Class C | 1,072 | 1,360 |
Income Replacement 2040 | 88,922 | 59,586 |
Institutional Class | 123 | 44 |
Total | $ 92,218 | $ 61,371 |
From net realized gain | | |
Class A | $ 137 | $ 37 |
Class T | 176 | 107 |
Class C | 2,496 | 555 |
Income Replacement 2040 | 69,663 | 13,452 |
Institutional Class | 37 | 10 |
Total | $ 72,509 | $ 14,161 |
Fidelity Income Replacement 2042 Fund | | |
From net investment income | | |
Class A | $ 5,189 | $ 552 |
Class T | 4,574 | 2,294 |
Class C | 1,098 | 392 |
Income Replacement 2042 | 349,803 | 213,286 |
Institutional Class | 1,302 | 579 |
Total | $ 361,966 | $ 217,103 |
From net realized gain | | |
Class A | $ 3,666 | $ 74 |
Class T | 8,953 | 482 |
Class C | 4,811 | 89 |
Income Replacement 2042 | 386,619 | 33,444 |
Institutional Class | 1,161 | 93 |
Total | $ 405,210 | $ 34,182 |
Annual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2016 Fund | | | | |
Class A | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 21 | 163 | 1,081 | 8,297 |
Shares redeemed | (2,910) | (11,297) | (151,155) | (577,897) |
Net increase (decrease) | (2,889) | (11,134) | $ (150,074) | $ (569,600) |
Class T | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 7 | 28 | 397 | 1,401 |
Shares redeemed | (341) | (1,244) | (17,795) | (63,469) |
Net increase (decrease) | (334) | (1,216) | $ (17,398) | $ (62,068) |
Class C | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 85 | 505 | 4,320 |
Shares redeemed | (2,717) | (6,563) | (141,170) | (336,404) |
Net increase (decrease) | (2,707) | (6,478) | $ (140,665) | $ (332,084) |
Income Replacement 2016 | | | | |
Shares sold | 14,565 | 32,858 | $ 757,343 | $ 1,681,315 |
Reinvestment of distributions | 395 | 905 | 20,606 | 46,083 |
Shares redeemed | (36,638) | (52,922) | (1,908,597) | (2,704,793) |
Net increase (decrease) | (21,678) | (19,159) | $ (1,130,648) | $ (977,395) |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 4 | 12 | 217 | 590 |
Shares redeemed | (188) | (402) | (9,765) | (20,428) |
Net increase (decrease) | (184) | (390) | $ (9,548) | $ (19,838) |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | | | | |
Shares sold | 3,094 | 1,844 | $ 165,629 | $ 96,498 |
Reinvestment of distributions | 112 | 165 | 6,019 | 8,476 |
Shares redeemed | (2,034) | (2,302) | (109,403) | (118,731) |
Net increase (decrease) | 1,172 | (293) | $ 62,245 | $ (13,757) |
Class T | | | | |
Shares sold | 7,617 | - | $ 402,023 | $ - |
Reinvestment of distributions | 75 | 18 | 4,029 | 908 |
Shares redeemed | (1,459) | (626) | (78,424) | (32,478) |
Net increase (decrease) | 6,233 | (608) | $ 327,628 | $ (31,570) |
Class C | | | | |
Shares sold | 7,214 | 2,007 | $ 388,519 | $ 104,323 |
Reinvestment of distributions | 44 | 96 | 2,439 | 4,895 |
Shares redeemed | (2,277) | (1,291) | (121,070) | (66,610) |
Net increase (decrease) | 4,981 | 812 | $ 269,888 | $ 42,608 |
Income Replacement 2018 | | | | |
Shares sold | 48,757 | 19,009 | $ 2,615,823 | $ 982,691 |
Reinvestment of distributions | 403 | 656 | 21,671 | 33,655 |
Shares redeemed | (37,375) | (22,946) | (2,001,673) | (1,182,626) |
Net increase (decrease) | 11,785 | (3,281) | $ 635,821 | $ (166,280) |
Institutional Class | | | | |
Shares sold | - | 3,981 | $ - | $ 204,782 |
Reinvestment of distributions | 127 | 145 | 6,796 | 7,435 |
Shares redeemed | (1,505) | (4,070) | (80,836) | (209,387) |
Net increase (decrease) | (1,378) | 56 | $ (74,040) | $ 2,830 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | | | | |
Shares sold | 8,274 | 474 | $ 447,658 | $ 25,017 |
Reinvestment of distributions | 170 | 103 | 9,262 | 5,331 |
Shares redeemed | (1,585) | (967) | (87,236) | (50,578) |
Net increase (decrease) | 6,859 | (390) | $ 369,684 | $ (20,230) |
Class T | | | | |
Shares sold | 3 | 129 | $ 150 | $ 6,823 |
Reinvestment of distributions | 24 | 49 | 1,284 | 2,541 |
Shares redeemed | (243) | (2,023) | (13,241) | (108,390) |
Net increase (decrease) | (216) | (1,845) | $ (11,807) | $ (99,026) |
Class C | | | | |
Shares sold | 6,213 | 568 | $ 338,797 | $ 29,000 |
Reinvestment of distributions | 68 | 57 | 3,719 | 2,907 |
Shares redeemed | (2,214) | (648) | (119,698) | (33,562) |
Net increase (decrease) | 4,067 | (23) | $ 222,818 | $ (1,655) |
Income Replacement 2020 | | | | |
Shares sold | 46,801 | 45,319 | $ 2,589,823 | $ 2,366,414 |
Reinvestment of distributions | 1,366 | 908 | 74,954 | 46,992 |
Shares redeemed | (19,058) | (27,089) | (1,042,550) | (1,420,725) |
Net increase (decrease) | 29,109 | 19,138 | $ 1,622,227 | $ 992,681 |
Institutional Class | | | | |
Shares sold | 1,372 | - | $ 75,000 | $ - |
Reinvestment of distributions | 29 | 6 | 1,560 | 309 |
Shares redeemed | (122) | - | (6,760) | - |
Net increase (decrease) | 1,279 | 6 | $ 69,800 | $ 309 |
Fidelity Income Replacement 2022 Fund | | | | |
Class A | | | | |
Shares sold | 2,298 | - | $ 128,651 | $ - |
Reinvestment of distributions | 55 | 71 | 3,043 | 3,695 |
Shares redeemed | (2,277) | (496) | (128,019) | (26,081) |
Net increase (decrease) | 76 | (425) | $ 3,675 | $ (22,386) |
Class T | | | | |
Shares sold | 445 | - | $ 25,423 | $ - |
Reinvestment of distributions | 1 | 0* | 70 | 15 |
Shares redeemed | - | (91) | - | (4,748) |
Net increase (decrease) | 446 | (91) | $ 25,493 | $ (4,733) |
Class C | | | | |
Shares sold | 4,664 | 431 | $ 264,924 | $ 23,074 |
Reinvestment of distributions | 12 | 1 | 739 | 67 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 4,676 | 432 | $ 265,663 | $ 23,141 |
Income Replacement 2022 | | | | |
Shares sold | 122,627 | 23,547 | $ 6,894,254 | $ 1,241,849 |
Reinvestment of distributions | 940 | 598 | 53,287 | 30,901 |
Shares redeemed | (35,951) | (18,669) | (2,035,627) | (986,018) |
Net increase (decrease) | 87,616 | 5,476 | $ 4,911,914 | $ 286,732 |
Institutional Class | | | | |
Shares sold | 980 | - | $ 54,999 | $ - |
Reinvestment of distributions | 7 | 2 | 409 | 81 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 987 | 2 | $ 55,408 | $ 81 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | | | | |
Shares sold | 925 | 4,821 | $ 52,324 | $ 249,930 |
Reinvestment of distributions | 114 | 70 | 6,459 | 3,660 |
Shares redeemed | (5,011) | (1,358) | (288,188) | (70,040) |
Net increase (decrease) | (3,972) | 3,533 | $ (229,405) | $ 183,550 |
Class T | | | | |
Shares sold | - | 182 | $ - | $ 10,000 |
Reinvestment of distributions | 29 | 30 | 1,644 | 1,572 |
Shares redeemed | (222) | (210) | (12,674) | (11,083) |
Net increase (decrease) | (193) | 2 | $ (11,030) | $ 489 |
Class C | | | | |
Shares sold | 944 | - | $ 54,303 | $ - |
Reinvestment of distributions | 7 | 6 | 384 | 319 |
Shares redeemed | (337) | (1,320) | (19,586) | (68,217) |
Net increase (decrease) | 614 | (1,314) | $ 35,101 | $ (67,898) |
Income Replacement 2024 | | | | |
Shares sold | 100,545 | 17,502 | $ 5,712,753 | $ 923,490 |
Reinvestment of distributions | 988 | 343 | 56,412 | 17,775 |
Shares redeemed | (22,993) | (9,492) | (1,319,597) | (496,528) |
Net increase (decrease) | 78,540 | 8,353 | $ 4,449,568 | $ 444,737 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 12 | 588 | 614 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 10 | 12 | $ 588 | $ 614 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | | | | |
Shares sold | 4,671 | 3,297 | $ 270,903 | $ 164,296 |
Reinvestment of distributions | 72 | 104 | 4,127 | 5,368 |
Shares redeemed | (1,342) | (628) | (76,534) | (32,970) |
Net increase (decrease) | 3,401 | 2,773 | $ 198,496 | $ 136,694 |
Class T | | | | |
Shares sold | 591 | 147 | $ 32,802 | $ 7,752 |
Reinvestment of distributions | 16 | 22 | 896 | 1,126 |
Shares redeemed | (1,487) | (4,570) | (86,352) | (229,341) |
Net increase (decrease) | (880) | (4,401) | $ (52,654) | $ (220,463) |
Class C | | | | |
Shares sold | - | 372 | $ - | $ 20,181 |
Reinvestment of distributions | 4 | 3 | 257 | 166 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 4 | 375 | $ 257 | $ 20,347 |
Income Replacement 2026 | | | | |
Shares sold | 43,548 | 15,295 | $ 2,469,669 | $ 797,527 |
Reinvestment of distributions | 515 | 419 | 29,638 | 21,602 |
Shares redeemed | (12,559) | (10,796) | (717,746) | (570,139) |
Net increase (decrease) | 31,504 | 4,918 | $ 1,781,561 | $ 248,990 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 499 | 606 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 9 | 11 | $ 499 | $ 606 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | | | | |
Shares sold | 11,628 | 1,289 | $ 695,024 | $ 71,770 |
Reinvestment of distributions | 36 | 55 | 2,141 | 2,865 |
Shares redeemed | (2,162) | (1,798) | (125,714) | (97,320) |
Net increase (decrease) | 9,502 | (454) | $ 571,451 | $ (22,685) |
Class T | | | | |
Shares sold | - | 3,419 | $ - | $ 190,058 |
Reinvestment of distributions | 28 | 18 | 1,646 | 932 |
Shares redeemed | (250) | (93) | (14,492) | (4,963) |
Net increase (decrease) | (222) | 3,344 | $ (12,846) | $ 186,027 |
Class C | | | | |
Shares sold | 340 | - | $ 20,000 | $ - |
Reinvestment of distributions | 3 | 4 | 160 | 214 |
Shares redeemed | (38) | (339) | (2,200) | (18,000) |
Net increase (decrease) | 305 | (335) | $ 17,960 | $ (17,786) |
Income Replacement 2028 | | | | |
Shares sold | 276,372 | 48,154 | $ 16,302,408 | $ 2,584,155 |
Reinvestment of distributions | 1,779 | 1,125 | 104,546 | 58,544 |
Shares redeemed | (48,843) | (21,518) | (2,851,544) | (1,167,596) |
Net increase (decrease) | 229,308 | 27,761 | $ 13,555,410 | $ 1,475,103 |
Institutional Class | | | | |
Shares sold | - | 1,004 | $ - | $ 53,885 |
Reinvestment of distributions | 27 | 16 | 1,560 | 870 |
Shares Redeemed | - | - | - | - |
Net increase (decrease) | 27 | 1,020 | $ 1,560 | $ 54,755 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | | | | |
Shares sold | 3,278 | 933 | $ 188,799 | $ 49,913 |
Reinvestment of distributions | 27 | 19 | 1,564 | 1,002 |
Shares redeemed | (1,623) | (44) | (94,101) | (2,337) |
Net increase (decrease) | 1,682 | 908 | $ 96,262 | $ 48,578 |
Class T | | | | |
Shares sold | 11 | 11 | $ 622 | $ 618 |
Reinvestment of distributions | 3 | 5 | 200 | 261 |
Shares sold | - | - | - | - |
Net increase (decrease) | 14 | 16 | $ 822 | $ 879 |
Class C | | | | |
Shares sold | 911 | 305 | $ 54,800 | $ 16,713 |
Reinvestment of distributions | 35 | 51 | 2,043 | 2,604 |
Shares redeemed | (732) | (884) | (42,088) | (46,510) |
Net increase (decrease) | 214 | (528) | $ 14,755 | $ (27,193) |
Income Replacement 2030 | | | | |
Shares sold | 220,687 | 39,836 | $ 12,803,833 | $ 2,147,451 |
Reinvestment of distributions | 2,234 | 950 | 130,960 | 49,163 |
Shares redeemed | (66,109) | (14,994) | (3,869,452) | (778,185) |
Net increase (decrease) | 156,812 | 25,792 | $ 9,065,341 | $ 1,418,429 |
Institutional Class | | | | |
Shares sold | 458 | 538 | $ 25,001 | $ 27,920 |
Reinvestment of distributions | 25 | 15 | 1,445 | 782 |
Shares redeemed | (465) | - | (28,292) | - |
Net increase (decrease) | 18 | 553 | $ (1,846) | $ 28,702 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | | | | |
Shares sold | 4,195 | - | $ 226,000 | $ - |
Reinvestment of distributions | 114 | 112 | 6,170 | 5,527 |
Shares redeemed | (3,916) | (320) | (224,739) | (16,355) |
Net increase (decrease) | 393 | (208) | $ 7,431 | $ (10,828) |
Class T | | | | |
Shares sold | 129 | 489 | $ 6,991 | $ 25,000 |
Reinvestment of distributions | 13 | 11 | 732 | 557 |
Shares redeemed | - | (489) | - | (24,956) |
Net increase (decrease) | 142 | 11 | $ 7,723 | $ 601 |
Class C | | | | |
Shares sold | 824 | 190 | $ 46,001 | $ 9,600 |
Reinvestment of distributions | 27 | 21 | 1,455 | 1,038 |
Shares sold | - | - | - | - |
Net increase (decrease) | 851 | 211 | $ 47,456 | $ 10,638 |
Income Replacement 2032 | | | | |
Shares sold | 82,796 | 30,500 | $ 4,544,725 | $ 1,530,443 |
Reinvestment of distributions | 2,269 | 1,495 | 123,077 | 73,685 |
Shares redeemed | (34,248) | (11,121) | (1,888,944) | (559,873) |
Net increase (decrease) | 50,817 | 20,874 | $ 2,778,858 | $ 1,044,255 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 11 | 10 | 560 | 482 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 11 | 10 | $ 560 | $ 482 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | | | | |
Shares sold | 1,728 | - | $ 100,000 | $ - |
Reinvestment of distributions | 7 | 8 | 399 | 402 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 1,735 | 8 | $ 100,399 | $ 402 |
Class T | | | | |
Shares sold | - | 1,105 | $ - | $ 59,121 |
Reinvestment of distributions | 25 | 12 | 1,474 | 636 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 26 | 1,117 | $ 1,474 | $ 59,757 |
Class C | | | | |
Shares sold | 85 | 583 | $ 4,814 | $ 30,000 |
Reinvestment of distributions | 12 | 14 | 667 | 703 |
Shares redeemed | (86) | (583) | (5,154) | (29,858) |
Net increase (decrease) | 11 | 14 | $ 327 | $ 845 |
Income Replacement 2034 | | | | |
Shares sold | 88,317 | 37,259 | $ 5,170,390 | $ 1,995,412 |
Reinvestment of distributions | 1,329 | 626 | 77,616 | 32,352 |
Shares redeemed | (20,967) | (10,339) | (1,227,468) | (550,747) |
Net increase (decrease) | 68,679 | 27,546 | $ 4,020,538 | $ 1,477,017 |
Institutional Class | | | | |
Shares sold | 1,056 | - | $ 60,682 | $ - |
Reinvestment of distributions | 71 | 60 | 4,133 | 3,086 |
Shares redeemed | (13) | (15) | (764) | (770) |
Net increase (decrease) | 1,114 | 45 | $ 64,051 | $ 2,316 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | | | | |
Shares sold | 2,537 | - | $ 146,968 | $ - |
Reinvestment of distributions | 37 | 10 | 2,153 | 507 |
Shares redeemed | 0* | (112) | (15) | (5,700) |
Net increase (decrease) | 2,574 | (102) | $ 149,106 | $ (5,193) |
Class T | | | | |
Shares sold | 1,978 | - | $ 116,352 | $ - |
Reinvestment of distributions | 30 | 54 | 1,768 | 2,726 |
Shares redeemed | (337) | (348) | (19,565) | (18,208) |
Net increase (decrease) | 1,671 | (294) | $ 98,555 | $ (15,482) |
Class C | | | | |
Shares sold | - | 3,311 | $ - | $ 175,000 |
Reinvestment of distributions | 38 | 54 | 2,203 | 2,730 |
Shares redeemed | (518) | (419) | (29,991) | (22,047) |
Net increase (decrease) | (480) | 2,946 | $ (27,788) | $ 155,683 |
Income Replacement 2036 | | | | |
Shares sold | 58,800 | 27,343 | $ 3,418,581 | $ 1,427,322 |
Reinvestment of distributions | 662 | 604 | 38,607 | 30,579 |
Shares redeemed | (24,467) | (5,152) | (1,425,529) | (276,865) |
Net increase (decrease) | 34,995 | 22,795 | $ 2,031,659 | $ 1,181,036 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 0* | 0* | 13 | 15 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | - | - | $ 13 | $ 15 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | | | | |
Shares sold | 751 | 1,696 | $ 43,225 | $ 87,117 |
Reinvestment of distributions | 95 | 30 | 5,216 | 1,498 |
Shares redeemed | - | (1,076) | - | (54,240) |
Net increase (decrease) | 846 | 650 | $ 48,441 | $ 34,375 |
Class T | | | | |
Shares sold | 1,339 | 361 | $ 76,212 | $ 19,357 |
Reinvestment of distributions | 76 | 24 | 4,096 | 1,182 |
Shares redeemed | (598) | (87) | (33,753) | (4,480) |
Net increase (decrease) | 817 | 298 | $ 46,555 | $ 16,059 |
Class C | | | | |
Shares sold | 299 | - | $ 16,110 | $ - |
Reinvestment of distributions | 63 | 24 | 3,427 | 1,204 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 362 | 24 | $ 19,537 | $ 1,204 |
Income Replacement 2038 | | | | |
Shares sold | 97,135 | 12,010 | $ 5,466,976 | $ 616,548 |
Reinvestment of distributions | 2,020 | 705 | 111,764 | 35,469 |
Shares redeemed | (30,641) | (14,450) | (1,721,190) | (750,847) |
Net increase (decrease) | 68,514 | (1,735) | $ 3,857,550 | $ (98,830) |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 23 | 13 | 1,281 | 657 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 23 | 13 | $ 1,281 | $ 657 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | | | | |
Shares sold | 1,700 | 26 | $ 97,306 | $ 1,376 |
Reinvestment of distributions | 11 | 4 | 653 | 178 |
Shares redeemed | (42) | - | (2,337) | - |
Net increase (decrease) | 1,669 | 30 | $ 95,622 | $ 1,554 |
Class T | | | | |
Shares sold | 7,541 | 78 | $ 438,067 | $ 4,000 |
Reinvestment of distributions | 4 | 7 | 309 | 347 |
Shares redeemed | (108) | (951) | (6,401) | (48,573) |
Net increase (decrease) | 7,437 | (866) | $ 431,975 | $ (44,226) |
Class C | | | | |
Shares sold | 604 | 582 | $ 35,021 | $ 31,135 |
Reinvestment of distributions | 66 | 38 | 3,568 | 1,915 |
Shares redeemed | 0* | - | (15) | - |
Net increase (decrease) | 670 | 620 | $ 38,574 | $ 33,050 |
Income Replacement 2040 | | | | |
Shares sold | 101,404 | 29,430 | $ 5,825,239 | $ 1,560,721 |
Reinvestment of distributions | 2,134 | 943 | 120,009 | 47,571 |
Shares redeemed | (41,563) | (9,529) | (2,382,123) | (497,615) |
Net increase (decrease) | 61,975 | 20,844 | $ 3,563,125 | $ 1,110,677 |
Institutional Class | | | | |
Shares sold | 250 | - | $ 13,998 | $ - |
Reinvestment of distributions | 2 | 1 | 75 | 54 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 252 | 1 | $ 14,073 | $ 54 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | | | | |
Shares sold | 15,726 | 846 | $ 906,475 | $ 45,470 |
Reinvestment of distributions | 154 | 12 | 8,830 | 626 |
Shares redeemed | (7,599) | - | (439,193) | - |
Net increase (decrease) | 8,281 | 858 | $ 476,112 | $ 46,096 |
Class T | | | | |
Shares sold | 5,127 | - | $ 284,223 | $ - |
Reinvestment of distributions | 241 | 55 | 13,527 | 2,776 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 5,368 | 55 | $ 297,750 | $ 2,776 |
Class C | | | | |
Shares sold | 7,488 | 1,254 | $ 430,355 | $ 67,885 |
Reinvestment of distributions | 105 | 9 | 5,831 | 481 |
Shares redeemed | (3,151) | - | (174,356) | - |
Net increase (decrease) | 4,442 | 1,263 | $ 261,830 | $ 68,366 |
Income Replacement 2042 | | | | |
Shares sold | 397,829 | 146,111 | $ 22,936,171 | $ 7,567,549 |
Reinvestment of distributions | 10,109 | 2,829 | 569,905 | 142,929 |
Shares redeemed | (112,551) | (45,108) | (6,460,739) | (2,347,325) |
Net increase (decrease) | 295,387 | 103,832 | $ 17,045,337 | $ 5,363,153 |
Institutional Class | | | | |
Shares sold | 1,261 | - | $ 71,051 | $ - |
Reinvestment of distributions | 42 | 13 | 2,376 | 672 |
Shares redeemed | (1) | - | (55) | - |
Net increase (decrease) | 1,302 | 13 | $ 73,372 | $ 672 |
* Amount represents less than one share.
Annual Report
Notes to Financial Statements - continued
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
The Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investment by the Fund within their principle investment strategies may represent a significant portion of the Underlying Fund's net assets. At the end of the period, the following Funds were the owners of record of 10% or more of the total outstanding shares of the Underlying Funds.
Fund | Fidelity Income
Replacement 2028 Fund | Fidelity Income
Replacement 2030 Fund | Fidelity Income
Replacement 2042 Fund |
Fidelity Series Broad Market Opportunities Fund | 15% | 11% | 27% |
The Funds, in aggregate, were the owners of record of more than 20% of the total outstanding shares of the following Underlying Funds.
Fund | % of shares held |
Fidelity Series Broad Market Opportunities Fund | 100% |
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Income Fund and the Shareholders of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund:
We have audited the accompanying statements of assets and liabilities of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund (the Funds) are funds of Fidelity Income Fund (the Trust), including the schedules of investments, as of July 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the custodians. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund as of July 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 19, 2014
Annual Report
The Trustees and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each Fidelity Income Replacement Fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each Fidelity Income Replacement Fund's activities, review contractual arrangements with companies that provide services to each Fidelity Income Replacement Fund, oversee management of the risks associated with such activities and contractual arrangements, and review each Fidelity Income Replacement Fund's performance. If the interests of a Fidelity Income Replacement Fund and an underlying Fidelity fund were to diverge, a conflict of interest could arise and affect how the Trustees fulfill their fiduciary duties to the affected funds. Strategic Advisers has structured the Fidelity Income Replacement Funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, Strategic Advisers and the Trustees would take reasonable steps to minimize and, if possible, eliminate the conflict. Except for Elizabeth S. Acton and James C. Curvey, each of the Trustees oversees 224 funds. Ms. Acton oversees 206 funds. Mr. Curvey oversees 397 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
James C. Curvey (1935) |
Year of Election or Appointment: 2007 Trustee |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
Abigail P. Johnson (1961) |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President of FMR LLC (2013-present), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Elizabeth S. Acton (1951) |
Year of Election or Appointment: 2013 Trustee |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
Albert R. Gamper, Jr. (1942) |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Barnabas Health Care System. Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) |
Year of Election or Appointment: 2010 Trustee |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) |
Year of Election or Appointment: 2008 Trustee |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) |
Year of Election or Appointment: 2009 Trustee |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) |
Year of Election or Appointment: 2007 Trustee |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
Kenneth L. Wolfe (1939) |
Year of Election or Appointment: 2005 Trustee |
| Mr. Wolfe also serves as Trustee of other Fidelity funds. Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). Mr. Wolfe previously served as Chairman of the Independent Trustees of other Fidelity funds (2008-2012). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation |
Elizabeth Paige Baumann (1968) |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Marc Bryant (1966) |
Year of Election or Appointment: 2013 Assistant Secretary |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) |
Year of Election or Appointment: 2010 Assistant Treasurer |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) |
Year of Election or Appointment: 2010 Assistant Treasurer |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) |
Year of Election or Appointment: 2013 President and Treasurer |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) |
Year of Election or Appointment: 2014 Chief Financial Officer |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Bruce T. Herring (1965) |
Year of Election or Appointment: 2013 Vice President of Fidelity's Asset Allocation Funds |
| Mr. Herring also serves as Vice President of other funds. He serves as Chief Investment Officer of Fidelity Global Asset Allocation (GAA) (2013-present), Group Chief Investment Officer of FMR, and President of Fidelity Research & Analysis Company (2010-present). Previously, Mr. Herring served as Vice President of certain Equity Funds (2006-2014), Chief Investment Officer and Director of Fidelity Management & Research (U.K.) Inc. (2010-2013), Vice President (2005-2006) and Senior Vice President (2006-2007) of Fidelity Management & Research Company, Vice President of FMR Co., Inc. (2001-2007), and as a portfolio manager for Fidelity U.S. Equity Funds. |
Chris Maher (1972) |
Year of Election or Appointment: 2013 Assistant Treasurer |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) |
Year of Election or Appointment: 2014 Vice President |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) |
Year of Election or Appointment: 2009 Assistant Treasurer |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) |
Year of Election or Appointment: 2013 Deputy Treasurer |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) |
Year of Election or Appointment: 2013 Assistant Treasurer |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) |
Year of Election or Appointment: 2013 Deputy Treasurer |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) |
Year of Election or Appointment: 2008 Chief Compliance Officer |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Derek L. Young (1964) |
Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds |
| Mr. Young also serves as Trustee or an officer of other funds. He is President and a Director of Strategic Advisers, Inc. (2011-present), President of Fidelity Global Asset Allocation (GAA) (2011-present), and Vice Chairman of Pyramis Global Advisors, LLC (2011-present). Previously, Mr. Young served as Chief Investment Officer of GAA (2009-2011) and as a portfolio manager. |
Joseph F. Zambello (1957) |
Year of Election or Appointment: 2011 Deputy Treasurer |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
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:
Fund | Pay Date | Record Date | Capital Gains |
Income Replacement 2016 | 09/15/14 | 09/12/14 | $0.900 |
Income Replacement 2018 | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2020 | 09/15/14 | 09/12/14 | $0.442 |
Income Replacement 2022 | 09/15/14 | 09/12/14 | $0.028 |
Income Replacement 2024 | 09/15/14 | 09/12/14 | $0.367 |
Income Replacement 2026 | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2028 | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2030 | 09/15/14 | 09/12/14 | $0.366 |
Income Replacement 2032 | 09/15/14 | 09/12/14 | $0.253 |
Income Replacement 2034 | 09/15/14 | 09/12/14 | $0.476 |
Income Replacement 2036 | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2038 | 09/15/14 | 09/12/14 | $0.380 |
Income Replacement 2040 | 09/15/14 | 09/12/14 | $0.435 |
Income Replacement 2042 | 09/15/14 | 09/12/14 | $0.467 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2014, or, if subsequently determined to be different, the net capital gain of such year.
Income Replacement 2016 | $118,541 |
Income Replacement 2020 | $89,794 |
Income Replacement 2024 | $66,215 |
Income Replacement 2030 | $115,913 |
Income Replacement 2032 | $49,207 |
Income Replacement 2034 | $91,561 |
Income Replacement 2038 | $66,976 |
Income Replacement 2040 | $79,752 |
Income Replacement 2042 | $370,562 |
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:
Fund | |
Income Replacement 2016 | 5.88% |
Income Replacement 2018 | 6.60% |
Income Replacement 2020 | 6.13% |
Income Replacement 2022 | 4.88% |
Income Replacement 2024 | 4.29% |
Income Replacement 2026 | 3.84% |
Income Replacement 2028 | 4.03% |
Income Replacement 2030 | 4.25% |
Income Replacement 2032 | 3.32% |
Income Replacement 2034 | 3.56% |
Income Replacement 2036 | 3.07% |
Income Replacement 2038 | 3.03% |
Income Replacement 2040 | 2.93% |
Income Replacement 2042 | 2.88% |
Annual Report
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Retail Class |
Income Replacement 2016 | |
August 2013 | 17% |
September 2013 | 23% |
October 2013 | 23% |
November 2013 | 23% |
December 2013 (Ex Date 12/20/13) | 24% |
December 2013 (Ex Date 12/30/13) | 22% |
January 2014 | 2% |
February 2014 | 2% |
March 2014 | 2% |
April 2014 | 2% |
May 2014 | 2% |
June 2014 | 2% |
July 2014 | 2% |
| Retail Class |
Income Replacement 2018 | |
August 2013 | 19% |
September 2013 | 26% |
October 2013 | 25% |
November 2013 | 26% |
December 2013 (Ex Date 12/20/13) | 28% |
December 2013 (Ex Date 12/30/13) | 26% |
January 2014 | 3% |
February 2014 | 3% |
March 2014 | 3% |
April 2014 | 3% |
May 2014 | 3% |
June 2014 | 3% |
July 2014 | 3% |
| Retail Class |
Income Replacement 2020 | |
August 2013 | 25% |
September 2013 | 33% |
October 2013 | 33% |
November 2013 | 33% |
December 2013 (Ex Date 12/20/13) | 35% |
December 2013 (Ex Date 12/30/13) | 34% |
January 2014 | 5% |
February 2014 | 5% |
March 2014 | 5% |
April 2014 | 5% |
May 2014 | 5% |
June 2014 | 5% |
July 2014 | 5% |
| Retail Class |
Income Replacement 2022 | |
August 2013 | 29% |
September 2013 | 39% |
October 2013 | 39% |
November 2013 | 39% |
December 2013 (Ex Date 12/20/13) | 40% |
December 2013 (Ex Date 12/30/13) | 40% |
January 2014 | 8% |
February 2014 | 8% |
March 2014 | 8% |
April 2014 | 8% |
May 2014 | 8% |
June 2014 | 8% |
July 2014 | 8% |
| Retail Class |
Income Replacement 2024 | |
August 2013 | 30% |
September 2013 | 42% |
October 2013 | 43% |
November 2013 | 42% |
December 2013 (Ex Date 12/20/13) | 45% |
December 2013 (Ex Date 12/30/13) | 44% |
January 2014 | 9% |
February 2014 | 9% |
March 2014 | 9% |
April 2014 | 9% |
May 2014 | 9% |
June 2014 | 9% |
July 2014 | 9% |
| Retail Class |
Income Replacement 2026 | |
August 2013 | 31% |
September 2013 | 44% |
October 2013 | 45% |
November 2013 | 44% |
December 2013 (Ex Date 12/20/13) | 46% |
December 2013 (Ex Date 12/30/13) | 46% |
January 2014 | 10% |
February 2014 | 10% |
March 2014 | 10% |
April 2014 | 10% |
May 2014 | 10% |
June 2014 | 10% |
July 2014 | 10% |
| Retail Class |
Income Replacement 2028 | |
August 2013 | 33% |
September 2013 | 45% |
October 2013 | 46% |
November 2013 | 45% |
December 2013 (Ex Date 12/20/13) | 46% |
December 2013 (Ex Date 12/30/13) | 46% |
January 2014 | 14% |
February 2014 | 14% |
March 2014 | 14% |
April 2014 | 15% |
May 2014 | 14% |
June 2014 | 14% |
July 2014 | 15% |
| Retail Class |
Income Replacement 2030 | |
August 2013 | 37% |
September 2013 | 50% |
October 2013 | 49% |
November 2013 | 50% |
December 2013 (Ex Date 12/20/13) | 50% |
December 2013 (Ex Date 12/30/13) | 50% |
January 2014 | 12% |
February 2014 | 12% |
March 2014 | 12% |
April 2014 | 12% |
May 2014 | 12% |
June 2014 | 11% |
July 2014 | 12% |
| Retail Class |
Income Replacement 2032 | |
August 2013 | 37% |
September 2013 | 49% |
October 2013 | 49% |
November 2013 | 48% |
December 2013 (Ex Date 12/20/13) | 50% |
December 2013 (Ex Date 12/30/13) | 49% |
January 2014 | 10% |
February 2014 | 10% |
March 2014 | 10% |
April 2014 | 10% |
May 2014 | 10% |
June 2014 | 10% |
July 2014 | 10% |
| Retail Class |
Income Replacement 2034 | |
August 2013 | 38% |
September 2013 | 51% |
October 2013 | 51% |
November 2013 | 51% |
December 2013 (Ex Date 12/20/13) | 51% |
December 2013 (Ex Date 12/30/13) | 51% |
January 2014 | 12% |
February 2014 | 12% |
March 2014 | 12% |
April 2014 | 12% |
May 2014 | 12% |
June 2014 | 12% |
July 2014 | 12% |
| Retail Class |
Income Replacement 2036 | |
August 2013 | 36% |
September 2013 | 51% |
October 2013 | 50% |
November 2013 | 51% |
December 2013 (Ex Date 12/20/13) | 53% |
December 2013 (Ex Date 12/30/13) | 52% |
January 2014 | 11% |
February 2014 | 11% |
March 2014 | 11% |
April 2014 | 11% |
May 2014 | 11% |
June 2014 | 11% |
July 2014 | 11% |
| Retail Class |
Income Replacement 2038 | |
August 2013 | 38% |
September 2013 | 52% |
October 2013 | 53% |
November 2013 | 53% |
December 2013 (Ex Date 12/20/13) | 54% |
December 2013 (Ex Date 12/30/13) | 54% |
January 2014 | 10% |
February 2014 | 10% |
March 2014 | 10% |
April 2014 | 10% |
May 2014 | 10% |
June 2014 | 10% |
July 2014 | 10% |
| Retail Class |
Income Replacement 2040 | |
August 2013 | 22% |
September 2013 | 53% |
October 2013 | 53% |
November 2013 | 54% |
December 2013 (Ex Date 12/20/13) | 54% |
December 2013 (Ex Date 12/30/13) | 53% |
January 2014 | 13% |
February 2014 | 13% |
March 2014 | 13% |
April 2014 | 13% |
May 2014 | 13% |
June 2014 | 13% |
July 2014 | 13% |
| Retail Class |
Income Replacement 2042 | |
August 2013 | 40% |
September 2013 | 54% |
October 2013 | 54% |
November 2013 | 54% |
December 2013 (Ex Date 12/20/13) | 54% |
December 2013 (Ex Date 12/30/13) | 54% |
January 2014 | 14% |
February 2014 | 14% |
March 2014 | 14% |
April 2014 | 14% |
May 2014 | 14% |
June 2014 | 14% |
July 2014 | 14% |
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
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Fidelity Advisor Income Replacement FundsSM -
2016, 2018, 2020, 2022, 2024, 2026, 2028, 2030, 2032, 2034, 2036, 2038, 2040, 2042 -
Class A, Class T, and Class C
Annual Report
July 31, 2014
Each Class A, Class T, and Class C are
classes of Fidelity Income Replacement FundsSM
(Fidelity Cover Art)
Contents
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
Annual Report
Fidelity Advisor Income Replacement 2016 FundSM - Class A, T, and C
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | -3.33% | 4.23% | 1.97% |
Class T (incl. 3.50% sales charge) | -1.28% | 4.46% | 2.06% |
Class C (incl. contingent deferred sales charge)B | 0.81% | 4.69% | 2.08% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2016 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays® U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2018 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | -0.93% | 5.66% | 2.72% |
Class T (incl. 3.50% sales charge) | 1.19% | 5.90% | 2.82% |
Class C (incl. contingent deferred sales charge)B | 3.32% | 6.13% | 2.83% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2018 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2020 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 0.36% | 6.65% | 3.16% |
Class T (incl. 3.50% sales charge) | 2.50% | 6.89% | 3.26% |
Class C (incl. contingent deferred sales charge)B | 4.68% | 7.12% | 3.27% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2020 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2022 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 1.35% | 7.39% | 3.54% |
Class T (incl. 3.50% sales charge) | 3.51% | 7.64% | 3.64% |
Class C (incl. contingent deferred sales charge)B | 5.76% | 7.86% | 3.65% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2022 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2024 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 2.09% | 7.92% | 3.80% |
Class T (incl. 3.50% sales charge) | 4.25% | 8.16% | 3.90% |
Class C (incl. contingent deferred sales charge)B | 6.51% | 8.39% | 3.91% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2024 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2026 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 2.58% | 8.28% | 3.91% |
Class T (incl. 3.50% sales charge) | 4.78% | 8.53% | 4.01% |
Class C (incl. contingent deferred sales charge)B | 7.04% | 8.76% | 4.02% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2026 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2028 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 2.95% | 8.55% | 4.01% |
Class T (incl. 3.50% sales charge) | 5.16% | 8.80% | 4.11% |
Class C (incl. contingent deferred sales charge)B | 7.43% | 9.03% | 4.12% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2028 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2030 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 3.21% | 8.78% | 4.09% |
Class T (incl. 3.50% sales charge) | 5.40% | 9.03% | 4.19% |
Class C (incl. contingent deferred sales charge)B | 7.68% | 9.26% | 4.20% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2030 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index and Barclays U.S. Aggregate Bond IndexA performed over the same period.
A Going forward, the fund's performance will be compared to the Barclays U.S. Aggregate Bond Index, rather than the S&P 500 Index. The Barclays U.S. Aggregate Bond Index more closely represents the fund's investment strategy, as fixed-income and short-term funds currently represent the majority of the fund's assets.
Annual Report
Fidelity Advisor Income Replacement 2032 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 3.45% | 8.97% | 4.12% |
Class T (incl. 3.50% sales charge) | 5.66% | 9.21% | 4.21% |
Class C (incl. contingent deferred sales charge)B | 7.96% | 9.44% | 4.23% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2032 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2034 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 3.65% | 9.15% | 4.10% |
Class T (incl. 3.50% sales charge) | 5.84% | 9.39% | 4.19% |
Class C (incl. contingent deferred sales charge)B | 8.15% | 9.63% | 4.21% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2034 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2036 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 3.85% | 9.35% | 4.13% |
Class T (incl. 3.50% sales charge) | 6.04% | 9.59% | 4.23% |
Class C (incl. contingent deferred sales charge)B | 8.35% | 9.82% | 4.24% |
A From August 30, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2036 Fund - Class A on August 30, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2038 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 4.04% | 9.58% | 3.82% |
Class T (incl. 3.50% sales charge) | 6.26% | 9.82% | 3.93% |
Class C (incl. contingent deferred sales charge)B | 8.57% | 10.06% | 3.98% |
A From December 31, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2038 Fund - Class A on December 31, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2040 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 4.32% | 9.89% | 4.01% |
Class T (incl. 3.50% sales charge) | 6.54% | 10.13% | 4.12% |
Class C (incl. contingent deferred sales charge)B | 8.84% | 10.36% | 4.16% |
A From December 31, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2040 Fund - Class A on December 31, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2042 FundSM - Class A, T, and C
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Class A (incl. 5.75% sales charge) | 4.63% | 10.12% | 4.16% |
Class T (incl. 3.50% sales charge) | 6.89% | 10.37% | 4.27% |
Class C (incl. contingent deferred sales charge)B | 9.19% | 10.59% | 4.31% |
A From December 31, 2007.
B Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2042 Fund - Class A on December 31, 2007, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Market Recap: U.S. stocks overcame a slowing economy early in 2014 to post a strong gain for the 12-month period ending July 31, 2014, supported by healthy corporate profits and continued low interest rates. The S&P 500® Index rose 16.94%, reaching an all-time high near period end. The technology-heavy Nasdaq Composite Index® gained 22.00%, whereas the Russell 2000® Index returned 8.56%, reflecting the relatively lackluster performance of small-cap stocks, particularly in the final months of the period. Information technology (+28%) was the top-performing sector within the S&P 500®, driven by strong semiconductor and computer hardware sales and expectations for increased capital spending. Materials (+23%) rose amid higher prices for many commodity products. Health care (+21%) also performed well, driven in particular by gains in pharmaceuticals, biotechnology & life sciences companies. Energy stocks (+19%) advanced in the latter part of the period amid healthy U.S. output and the threat of supply disruptions in Iraq. While growth sectors performed well for the year, traditional defensive sectors - consumer staples, utilities and telecommunication services - lagged the market. Volatility remained tame overall, with markets supported by declining unemployment, near-record profit margins for companies, muted cost inflation, and fairly low corporate debt levels. Geopolitical tension remained a concern at period end, with conflict in Ukraine and strained relations between Russia and the West posing a potential threat to global growth; leading indicators for the world's major economies deteriorated somewhat in the second quarter. Still, the MSCI EAFE Index, representing non-U.S. developed markets, rose 15.21% for the period, posting a gain of 10% or more in every major global region. Emerging-markets equities rebounded from a loss in 2013, with the MSCI Emerging Markets Index advancing 15.72%, aided by falling long-term interest rates that encouraged investments in riskier assets.
Meanwhile, U.S. taxable investment-grade bonds also posted a positive return for the 12-month period, overcoming early-period fears that interest rates could keep rising. The Barclays® U.S. Aggregate Bond Index rose 3.97%, driven partly by economic growth concerns after an abnormally cold winter suppressed spending early in 2014. Bonds with maturities of 10 years or more stood out, returning far more than shorter-term securities across fixed-income asset classes. Lower-quality issues attracted some of the strongest buying interest, especially in the latter half of the period. Among sectors that make up the index, investment-grade credit rose 6.64%, aided by a low loan-default rate. By contrast, U.S. Treasuries, considered the safest bond investments, returned 1.99% for the year. High-yield investments, as measured by The BofA Merrill LynchSM US High Yield Constrained Index, rose 8.28%, as many investors were willing to take on greater risk for the possibility of higher returns. International developed-markets bonds outperformed their U.S. counterparts, with the Citigroup® Non-USD Group-of-Seven (G7) Equal Weighted Index returning 6.62%. Emerging-markets debt enjoyed a rally in 2014 that pushed the J.P. Morgan Emerging Markets Bond Index Global up 10.13% for the period.
Comments from Andrew Dierdorf and Brett Sumsion, Co-Portfolio Managers of Fidelity Advisor Income Replacement FundsSM: For the one-year period, each of the Funds' Class A, Class T and Class C shares (excluding sales charges) posted a positive absolute result. The longest-dated Funds - designed for shareholders who have a longer time horizon and thus having greater exposure to equities - delivered the greatest returns, while the Funds with shorter time horizons - which have higher allocations to bonds - delivered more-muted results. For the 12-month period, three of the underlying funds outperformed the S&P 500®, the benchmark for the Funds' equity asset class. Fidelity® Blue Chip Growth Fund and Fidelity® Series Broad Market Opportunities Fund, the Fund's largest U.S. equity fund holding, contributed the most to results. In addition, Fidelity Series 100 Index Fund posted a result close to that of the broader market. On the downside, the Funds' sizable position in Fidelity Equity-Income Fund underperformed. The return of Fidelity Series Small Cap Opportunities Fund, a very small allocation, ranked lowest for the period. The Funds' non-U.S. equity investment, Fidelity International Discovery Fund, delivered a double-digit return, albeit considerably lower than that of the S&P 500. The Funds' fixed-income asset class overall - comprising a diversified mix of underlying bond funds - performed well relative to the Barclays® U.S. Aggregate Bond Index. Fidelity Total Bond Fund was the strongest contributor in this asset class. The Funds' investments in Fidelity Capital & Income Fund, a small allocation, registered the highest absolute return as investors sought higher-yielding bonds, a primary focus of the fund. Fidelity Strategic Income Fund, which invests across all major fixed income asset classes, also helped. In line with the generally lower returns found in the segment, Fidelity Government Income Fund, offering exposure to the U.S. government and government-related bond sectors, delivered the lowest absolute result, exclusive of short-term funds.
Notes to shareholders: On January 21, 2014, Brett Sumsion became a Co-Manager of the Funds.
Fidelity Advisor Income Replacement 2018 FundSM closed to new accounts and additional purchases as of the close of business on May 30, 2014.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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.
Annual Report
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2014 to July 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2016 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,011.10 | $ 1.25 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,009.80 | $ 2.49 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,007.30 | $ 4.98 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2016 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,012.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,012.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,024.00 | $ 1.25 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,022.90 | $ 2.51 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,020.20 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2018 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,025.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,025.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,030.70 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,029.40 | $ 2.52 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,027.00 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2020 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,032.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,032.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2022 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,036.00 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .49% C | | | |
Actual | | $ 1,000.00 | $ 1,034.70 | $ 2.47 |
HypotheticalA | | $ 1,000.00 | $ 1,022.36 | $ 2.46 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,032.20 | $ 4.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2022 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,037.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,037.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,039.80 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,038.30 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,035.80 | $ 5.05 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2024 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,042.00 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,038.10 | $ 5.05 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2026 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | .24% C | | | |
Actual | | $ 1,000.00 | $ 1,043.80 | $ 1.22 |
HypotheticalA | | $ 1,000.00 | $ 1,023.60 | $ 1.20 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,042.60 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,040.00 | $ 5.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2028 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,043.70 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,041.10 | $ 5.06 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2030 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,046.10 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,044.90 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,042.30 | $ 5.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2032 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,047.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,047.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,046.90 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,045.50 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,043.00 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2034 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,048.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,048.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,047.90 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,046.50 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,043.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2036 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,048.60 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,047.30 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,044.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2038 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,050.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,049.80 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .49%C | | | |
Actual | | $ 1,000.00 | $ 1,048.60 | $ 2.49 |
HypotheticalA | | $ 1,000.00 | $ 1,022.36 | $ 2.46 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,045.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2040 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,051.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,051.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,051.30 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,050.10 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,047.30 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2042 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,052.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,052.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which each Fund invests are not included in each Fund's annualized expense ratio.
Annual Report
Fidelity Income Replacement 2016 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 1.1 | 1.3 |
Fidelity Blue Chip Growth Fund | 1.0 | 1.3 |
Fidelity Equity-Income Fund | 1.6 | 1.9 |
Fidelity Large Cap Stock Fund | 1.2 | 1.4 |
Fidelity Series 100 Index Fund | 1.0 | 1.3 |
Fidelity Series Broad Market Opportunities Fund | 1.8 | 2.2 |
Fidelity Series Small Cap Opportunities Fund | 0.1 | 0.2 |
| 7.8 | 9.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 2.3 | 3.4 |
Fidelity Strategic Real Return Fund | 2.3 | 3.4 |
Fidelity Total Bond Fund | 6.9 | 10.3 |
| 11.5 | 17.1 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 52.8 | 46.9 |
Fidelity Short-Term Bond Fund | 27.9 | 26.4 |
| 80.7 | 73.3 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
 | Domestic Equity Funds | 7.8% | |
 | Investment Grade Fixed-Income Funds | 11.5% | |
 | Short-Term Funds | 80.7% | |
Six months ago |
| Domestic Equity Funds | 9.6% | |
| Investment Grade Fixed-Income Funds | 17.1% | |
| Short-Term Funds | 73.3% | |
Expected |
| Domestic Equity Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 4.6% | |
| Short-Term Funds | 89.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2016 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 7.8% |
| Shares | | Value |
Domestic Equity Funds - 7.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 2,544 | | $ 53,884 |
Fidelity Blue Chip Growth Fund (b) | 759 | | 50,639 |
Fidelity Equity-Income Fund (b) | 1,277 | | 78,226 |
Fidelity Large Cap Stock Fund (b) | 2,127 | | 58,923 |
Fidelity Series 100 Index Fund (b) | 4,046 | | 51,470 |
Fidelity Series Broad Market Opportunities Fund (b) | 5,778 | | 88,756 |
Fidelity Series Small Cap Opportunities Fund (b) | 577 | | 7,476 |
TOTAL EQUITY FUNDS (Cost $217,331) |
389,374
|
Fixed-Income Funds - 11.5% |
| | | |
Investment Grade Fixed-Income Funds - 11.5% |
Fidelity Government Income Fund (b) | 11,153 | | 115,657 |
Fidelity Strategic Real Return Fund (b) | 11,955 | | 114,414 |
Fidelity Total Bond Fund (b) | 32,461 | | 346,685 |
TOTAL FIXED-INCOME FUNDS (Cost $509,914) |
576,756
|
Short-Term Funds - 80.7% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 2,636,597 | | $ 2,636,597 |
Fidelity Short-Term Bond Fund (b) | 162,035 | | 1,391,877 |
TOTAL SHORT-TERM FUNDS (Cost $3,981,016) |
4,028,474
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $4,708,261) | | 4,994,604 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (470) |
NET ASSETS - 100% | $ 4,994,134 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor Mid Cap II Fund Institutional Class | $ 106,757 | $ 21,249 | $ 76,736 | $ 88 | $ 53,884 |
Fidelity Blue Chip Growth Fund | 98,838 | 16,503 | 74,051 | 361 | 50,639 |
Fidelity Equity-Income Fund | 151,494 | 17,256 | 101,573 | 2,942 | 78,226 |
Fidelity Government Income Fund | 291,416 | 28,612 | 206,324 | 3,315 | 115,657 |
Fidelity Institutional Money Market Portfolio Institutional Class | 2,558,368 | 1,073,851 | 995,621 | 2,235 | 2,636,597 |
Fidelity Large Cap Stock Fund | 114,261 | 15,086 | 82,452 | 747 | 58,923 |
Fidelity Series 100 Index Fund | 98,617 | 11,026 | 68,405 | 1,605 | 51,470 |
Fidelity Series Broad Market Opportunities Fund | 174,262 | 18,516 | 125,530 | 627 | 88,756 |
Fidelity Series Small Cap Opportunities Fund | 15,242 | 3,125 | 10,590 | 3 | 7,476 |
Fidelity Short-Term Bond Fund | 1,556,260 | 404,453 | 574,369 | 13,552 | 1,391,877 |
Fidelity Strategic Real Return Fund | 291,366 | 31,061 | 211,411 | 4,180 | 114,414 |
Fidelity Total Bond Fund | 876,146 | 102,316 | 634,728 | 18,225 | 346,685 |
Total | $ 6,333,027 | $ 1,743,054 | $ 3,161,790 | $ 47,880 | $ 4,994,604 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2016 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $4,708,261) - See accompanying schedule | | $ 4,994,604 |
Receivable for investments sold | | 6,936 |
Receivable for fund shares sold | | 75,000 |
Total assets | | 5,076,540 |
| | |
Liabilities | | |
Payable for investments purchased | $ 66,548 | |
Payable for fund shares redeemed | 15,401 | |
Distribution and service plan fees payable | 457 | |
Total liabilities | | 82,406 |
| | |
Net Assets | | $ 4,994,134 |
Net Assets consist of: | | |
Paid in capital | | $ 4,644,005 |
Undistributed net investment income | | 490 |
Accumulated undistributed net realized gain (loss) on investments | | 63,296 |
Net unrealized appreciation (depreciation) on investments | | 286,343 |
Net Assets | | $ 4,994,134 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($185,472 ÷ 3,534.10 shares) | | $ 52.48 |
| | |
Maximum offering price per share (100/94.25 of $52.48) | | $ 55.68 |
Class T:
Net Asset Value and redemption price per share ($120,043 ÷ 2,287.22 shares) | | $ 52.48 |
| | |
Maximum offering price per share (100/96.50 of $52.48) | | $ 54.38 |
| | |
Class C:
Net Asset Value and offering price per share ($442,716 ÷ 8,472.13 shares)A | | $ 52.26 |
| | |
Income Replacement 2016:
Net Asset Value, offering price and redemption price per share ($4,225,138 ÷ 80,523.72 shares) | | $ 52.47 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($20,765 ÷ 395.73 shares) | | $ 52.47 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 47,880 |
| | |
Expenses | | |
Distribution and service plan fees | $ 6,409 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 6,432 | |
Expense reductions | (23) | 6,409 |
Net investment income (loss) | | 41,471 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 236,211 | |
Capital gain distributions from underlying funds | 34,835 | |
Total net realized gain (loss) | | 271,046 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (155,891) |
Net gain (loss) | | 115,155 |
Net increase (decrease) in net assets resulting from operations | | $ 156,626 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 41,471 | $ 81,573 |
Net realized gain (loss) | 271,046 | 349,071 |
Change in net unrealized appreciation (depreciation) | (155,891) | (168,305) |
Net increase (decrease) in net assets resulting from operations | 156,626 | 262,339 |
Distributions to shareholders from net investment income | (41,835) | (82,163) |
Distributions to shareholders from net realized gain | (4,675) | (30,226) |
Total distributions | (46,510) | (112,389) |
Share transactions - net increase (decrease) | (1,448,333) | (1,960,985) |
Total increase (decrease) in net assets | (1,338,217) | (1,811,035) |
| | |
Net Assets | | |
Beginning of period | 6,332,351 | 8,143,386 |
End of period (including undistributed net investment income of $490 and undistributed net investment income of $853, respectively) | $ 4,994,134 | $ 6,332,351 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .305 | .500 | .736 | .821 | .831 |
Net realized and unrealized gain (loss) | 1.012 | 1.219 | .842 | 3.054 | 3.539 |
Total from investment operations | 1.317 | 1.719 | 1.578 | 3.875 | 4.370 |
Distributions from net investment income | (.287) | (.487) | (.733) | (.834) | (.830) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.327) | (.689) | (.938) | (1.095) | (.950) |
Net asset value, end of period | $ 52.48 | $ 51.49 | $ 50.46 | $ 49.82 | $ 47.04 |
Total ReturnA, B | 2.56% | 3.43% | 3.23% | 8.30% | 10.08% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | .59% | .98% | 1.49% | 1.68% | 1.80% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 185 | $ 331 | $ 886 | $ 1,798 | $ 2,308 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.50 | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 |
Income from Investment Operations | | | | | |
Net investment income (loss)C | .175 | .372 | .612 | .698 | .716 |
Net realized and unrealized gain (loss) | 1.006 | 1.225 | .847 | 3.043 | 3.540 |
Total from investment operations | 1.181 | 1.597 | 1.459 | 3.741 | 4.256 |
Distributions from net investment income | (.161) | (.365) | (.594) | (.710) | (.716) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.201) | (.567) | (.799) | (.971) | (.836) |
Net asset value, end of period | $ 52.48 | $ 51.50 | $ 50.47 | $ 49.81 | $ 47.04 |
Total ReturnA, B | 2.30% | 3.18% | 2.98% | 8.00% | 9.81% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .34% | .73% | 1.24% | 1.42% | 1.55% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 120 | $ 135 | $ 194 | $ 529 | $ 638 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.41 | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | (.085) | .116 | .364 | .453 | .485 |
Net realized and unrealized gain (loss) | 1.014 | 1.225 | .837 | 3.055 | 3.531 |
Total from investment operations | .929 | 1.341 | 1.201 | 3.508 | 4.016 |
Distributions from net investment income | (.039) | (.179) | (.376) | (.447) | (.476) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.079) | (.381) | (.581) | (.708) | (.596) |
Net asset value, end of period | $ 52.26 | $ 51.41 | $ 50.45 | $ 49.83 | $ 47.03 |
Total ReturnA, B | 1.81% | 2.67% | 2.45% | 7.49% | 9.24% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | (.16)% | .23% | .74% | .92% | 1.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 443 | $ 575 | $ 891 | $ 759 | $ 1,075 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2016
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .435 | .627 | .859 | .944 | .948 |
Net realized and unrealized gain (loss) | 1.007 | 1.229 | .838 | 3.055 | 3.539 |
Total from investment operations | 1.442 | 1.856 | 1.697 | 3.999 | 4.487 |
Distributions from net investment income | (.422) | (.624) | (.862) | (.958) | (.947) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.462) | (.826) | (1.067) | (1.219) | (1.067) |
Net asset value, end of period | $ 52.47 | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 |
Total ReturnA | 2.81% | 3.71% | 3.48% | 8.57% | 10.36% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | .84% | 1.23% | 1.74% | 1.93% | 2.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,225 | $ 5,262 | $ 6,124 | $ 6,873 | $ 6,946 |
Portfolio turnover rate C | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .435 | .628 | .861 | .945 | .947 |
Net realized and unrealized gain (loss) | 1.007 | 1.228 | .836 | 3.054 | 3.530 |
Total from investment operations | 1.442 | 1.856 | 1.697 | 3.999 | 4.477 |
Distributions from net investment income | (.422) | (.624) | (.862) | (.958) | (.947) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.462) | (.826) | (1.067) | (1.219) | (1.067) |
Net asset value, end of period | $ 52.47 | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 |
Total ReturnA | 2.81% | 3.71% | 3.48% | 8.57% | 10.33% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | .84% | 1.23% | 1.74% | 1.92% | 2.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21 | $ 30 | $ 49 | $ 44 | $ 108 |
Portfolio turnover rate C | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 2.4 | 2.8 |
Fidelity Blue Chip Growth Fund | 2.2 | 2.6 |
Fidelity Equity-Income Fund | 3.4 | 3.9 |
Fidelity Large Cap Stock Fund | 2.6 | 2.9 |
Fidelity Series 100 Index Fund | 2.2 | 2.5 |
Fidelity Series Broad Market Opportunities Fund | 3.9 | 4.5 |
Fidelity Series Small Cap Opportunities Fund | 0.3 | 0.4 |
| 17.0 | 19.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.0 | 7.9 |
Fidelity Strategic Real Return Fund | 7.0 | 7.8 |
Fidelity Total Bond Fund | 21.1 | 23.6 |
| 35.1 | 39.3 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 36.2 | 23.7 |
Fidelity Short-Term Bond Fund | 11.7 | 17.4 |
| 47.9 | 41.1 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 17.0% | |
| Investment Grade Fixed-Income Funds | 35.1% | |
| Short-Term Funds | 47.9% | |
Six months ago |
| Domestic Equity Funds | 19.6% | |
| Investment Grade Fixed-Income Funds | 39.3% | |
| Short-Term Funds | 41.1% | |
Expected |
| Domestic Equity Funds | 14.4% | |
| Investment Grade Fixed-Income Funds | 28.9% | |
| Short-Term Funds | 56.7% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2018 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 17.0% |
| Shares | | Value |
Domestic Equity Funds - 17.0% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 8,017 | | $ 169,791 |
Fidelity Blue Chip Growth Fund (b) | 2,385 | | 159,132 |
Fidelity Equity-Income Fund (b) | 4,015 | | 246,066 |
Fidelity Large Cap Stock Fund (b) | 6,690 | | 185,321 |
Fidelity Series 100 Index Fund (b) | 12,716 | | 161,744 |
Fidelity Series Broad Market Opportunities Fund (b) | 18,266 | | 280,568 |
Fidelity Series Small Cap Opportunities Fund (b) | 1,825 | | 23,652 |
TOTAL EQUITY FUNDS (Cost $879,525) |
1,226,274
|
Fixed-Income Funds - 35.1% |
| | | |
Investment Grade Fixed-Income Funds - 35.1% |
Fidelity Government Income Fund (b) | 48,886 | | 506,949 |
Fidelity Strategic Real Return Fund (b) | 52,401 | | 501,479 |
Fidelity Total Bond Fund (b) | 142,278 | | 1,519,533 |
TOTAL FIXED-INCOME FUNDS (Cost $2,511,070) |
2,527,961
|
Short-Term Funds - 47.9% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 2,605,957 | | $ 2,605,957 |
Fidelity Short-Term Bond Fund (b) | 97,765 | | 839,804 |
TOTAL SHORT-TERM FUNDS (Cost $3,435,750) |
3,445,761
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,826,345) | | 7,199,996 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (982) |
NET ASSETS - 100% | $ 7,199,014 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 47,187 | $ 5,629 | $ 57,187 | $ 254 | $ - |
Fidelity Advisor Mid Cap II Fund Institutional Class | 170,368 | 118,733 | 123,091 | 180 | 169,791 |
Fidelity Blue Chip Growth Fund | 157,814 | 101,020 | 120,825 | 645 | 159,132 |
Fidelity Equity-Income Fund | 242,856 | 139,162 | 160,775 | 6,486 | 246,066 |
Fidelity Government Income Fund | 472,175 | 274,168 | 245,466 | 8,281 | 506,949 |
Fidelity Institutional Money Market Portfolio Institutional Class | 1,057,338 | 2,113,477 | 564,855 | 1,359 | 2,605,957 |
Fidelity Large Cap Stock Fund | 182,263 | 112,781 | 133,101 | 1,689 | 185,321 |
Fidelity Series 100 Index Fund | 157,461 | 90,823 | 109,027 | 3,131 | 161,744 |
Fidelity Series Broad Market Opportunities Fund | 278,946 | 157,451 | 199,870 | 1,275 | 280,568 |
Fidelity Series Small Cap Opportunities Fund | 24,159 | 16,550 | 16,406 | 6 | 23,652 |
Fidelity Short-Term Bond Fund | 1,058,027 | 639,371 | 861,848 | 9,631 | 839,804 |
Fidelity Strategic Real Return Fund | 472,164 | 277,554 | 259,580 | 10,301 | 501,479 |
Fidelity Total Bond Fund | 1,417,756 | 843,117 | 757,134 | 44,217 | 1,519,533 |
Total | $ 5,738,514 | $ 4,889,836 | $ 3,609,165 | $ 87,455 | $ 7,199,996 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,826,345) - See accompanying schedule | | $ 7,199,996 |
Receivable for fund shares sold | | 75,060 |
Total assets | | 7,275,056 |
| | |
Liabilities | | |
Payable for investments purchased | $ 75,003 | |
Distribution and service plan fees payable | 1,039 | |
Total liabilities | | 76,042 |
| | |
Net Assets | | $ 7,199,014 |
Net Assets consist of: | | |
Paid in capital | | $ 7,208,238 |
Undistributed net investment income | | 1,164 |
Accumulated undistributed net realized gain (loss) on investments | | (384,039) |
Net unrealized appreciation (depreciation) on investments | | 373,651 |
Net Assets | | $ 7,199,014 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($867,777 ÷ 15,933.42 shares) | | $ 54.46 |
| | |
Maximum offering price per share (100/94.25 of $54.46) | | $ 57.78 |
Class T:
Net Asset Value and redemption price per share ($444,068 ÷ 8,151.69 shares) | | $ 54.48 |
| | |
Maximum offering price per share (100/96.50 of $54.48) | | $ 56.46 |
| | |
Class C:
Net Asset Value and offering price per share ($787,366 ÷ 14,484.47 shares)A | | $ 54.36 |
| | |
Income Replacement 2018:
Net Asset Value, offering price and redemption price per share ($4,665,488 ÷ 85,647.76 shares) | | $ 54.47 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($434,315 ÷ 7,972.24 shares) | | $ 54.48 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 87,455 |
| | |
Expenses | | |
Distribution and service plan fees | $ 9,804 | |
Independent trustees' compensation | 25 | |
Total expenses before reductions | 9,829 | |
Expense reductions | (25) | 9,804 |
Net investment income (loss) | | 77,651 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 43,817 | |
Capital gain distributions from underlying funds | 68,215 | |
Total net realized gain (loss) | | 112,032 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 136,996 |
Net gain (loss) | | 249,028 |
Net increase (decrease) in net assets resulting from operations | | $ 326,679 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 77,651 | $ 86,163 |
Net realized gain (loss) | 112,032 | 140,568 |
Change in net unrealized appreciation (depreciation) | 136,996 | 92,673 |
Net increase (decrease) in net assets resulting from operations | 326,679 | 319,404 |
Distributions to shareholders from net investment income | (77,552) | (86,074) |
Distributions to shareholders from net realized gain | (9,595) | (32,209) |
Total distributions | (87,147) | (118,283) |
Share transactions - net increase (decrease) | 1,221,542 | (166,169) |
Total increase (decrease) in net assets | 1,461,074 | 34,952 |
| | |
Net Assets | | |
Beginning of period | 5,737,940 | 5,702,988 |
End of period (including undistributed net investment income of $1,164 and undistributed net investment income of $1,066, respectively) | $ 7,199,014 | $ 5,737,940 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.45 | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .588 | .719 | .774 | .836 | .836 |
Net realized and unrealized gain (loss) | 2.080 | 2.135 | .909 | 3.655 | 3.763 |
Total from investment operations | 2.668 | 2.854 | 1.683 | 4.491 | 4.599 |
Distributions from net investment income | (.579) | (.705) | (.765) | (.834) | (.839) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.658) | (.994) | (.963) | (1.071) | (.959) |
Net asset value, end of period | $ 54.46 | $ 52.45 | $ 50.59 | $ 49.87 | $ 46.45 |
Total ReturnA, B | 5.11% | 5.70% | 3.45% | 9.73% | 10.80% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.10% | 1.39% | 1.57% | 1.71% | 1.83% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 868 | $ 774 | $ 762 | $ 784 | $ 1,147 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.48 | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .454 | .589 | .651 | .716 | .722 |
Net realized and unrealized gain (loss) | 2.085 | 2.133 | .909 | 3.664 | 3.759 |
Total from investment operations | 2.539 | 2.722 | 1.560 | 4.380 | 4.481 |
Distributions from net investment income | (.460) | (.573) | (.642) | (.723) | (.711) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.539) | (.862) | (.840) | (.960) | (.831) |
Net asset value, end of period | $ 54.48 | $ 52.48 | $ 50.62 | $ 49.90 | $ 46.48 |
Total ReturnA, B | 4.86% | 5.43% | 3.19% | 9.48% | 10.51% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .85% | 1.14% | 1.32% | 1.46% | 1.58% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 444 | $ 101 | $ 128 | $ 148 | $ 52 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.38 | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .187 | .330 | .403 | .469 | .495 |
Net realized and unrealized gain (loss) | 2.073 | 2.129 | .912 | 3.659 | 3.760 |
Total from investment operations | 2.260 | 2.459 | 1.315 | 4.128 | 4.255 |
Distributions from net investment income | (.201) | (.350) | (.407) | (.471) | (.505) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.280) | (.639) | (.605) | (.708) | (.625) |
Net asset value, end of period | $ 54.36 | $ 52.38 | $ 50.56 | $ 49.85 | $ 46.43 |
Total ReturnA, B | 4.32% | 4.90% | 2.68% | 8.93% | 9.98% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .35% | .64% | .82% | .96% | 1.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 787 | $ 498 | $ 439 | $ 226 | $ 201 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2018
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.46 | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .722 | .848 | .898 | .960 | .950 |
Net realized and unrealized gain (loss) | 2.081 | 2.135 | .908 | 3.657 | 3.761 |
Total from investment operations | 2.803 | 2.983 | 1.806 | 4.617 | 4.711 |
Distributions from net investment income | (.714) | (.834) | (.888) | (.960) | (.951) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.793) | (1.123) | (1.086) | (1.197) | (1.071) |
Net asset value, end of period | $ 54.47 | $ 52.46 | $ 50.60 | $ 49.88 | $ 46.46 |
Total ReturnA | 5.38% | 5.96% | 3.71% | 10.01% | 11.07% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.35% | 1.64% | 1.82% | 1.96% | 2.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,665 | $ 3,875 | $ 3,904 | $ 3,806 | $ 3,681 |
Portfolio turnover rate C | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.46 | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .722 | .849 | .891 | .959 | .950 |
Net realized and unrealized gain (loss) | 2.091 | 2.124 | .915 | 3.668 | 3.761 |
Total from investment operations | 2.813 | 2.973 | 1.806 | 4.627 | 4.711 |
Distributions from net investment income | (.714) | (.834) | (.888) | (.960) | (.951) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.793) | (1.123) | (1.086) | (1.197) | (1.071) |
Net asset value, end of period | $ 54.48 | $ 52.46 | $ 50.61 | $ 49.89 | $ 46.46 |
Total ReturnA | 5.40% | 5.94% | 3.71% | 10.03% | 11.07% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.35% | 1.64% | 1.82% | 1.96% | 2.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 434 | $ 491 | $ 470 | $ 320 | $ 350 |
Portfolio turnover rate C | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2020 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 3.3 | 3.6 |
Fidelity Blue Chip Growth Fund | 3.1 | 3.4 |
Fidelity Equity-Income Fund | 4.8 | 5.1 |
Fidelity Large Cap Stock Fund | 3.7 | 3.8 |
Fidelity Series 100 Index Fund | 3.2 | 3.3 |
Fidelity Series Broad Market Opportunities Fund | 5.5 | 6.0 |
Fidelity Series Small Cap Opportunities Fund | 0.5 | 0.5 |
| 24.1 | 25.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 2.2 | 2.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 8.4 | 8.3 |
Fidelity Strategic Real Return Fund | 8.4 | 8.3 |
Fidelity Total Bond Fund | 25.2 | 24.8 |
| 42.0 | 41.4 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 15.9 | 15.1 |
Fidelity Short-Term Bond Fund | 15.8 | 15.3 |
| 31.7 | 30.4 |
Net Other Assets (Liabilities) | 0.0* | 0.1 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 24.1% | |
| International Equity Funds | 2.2% | |
 | Investment Grade Fixed-Income Funds | 42.0% | |
| Short-Term Funds | 31.7% | |
Six months ago |
| Domestic Equity Funds | 25.7% | |
| International Equity Funds | 2.4% | |
| Investment Grade Fixed-Income Funds | 41.4% | |
 | Short-Term Funds | 30.4% | |
| Net Other Assets (Liabilities) | 0.1% | |
Expected |
| Domestic Equity Funds | 22.6% | |
| International Equity Funds | 1.8% | |
| Investment Grade Fixed-Income Funds | 42.4% | |
| Short-Term Funds | 33.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2020 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 26.3% |
| Shares | | Value |
Domestic Equity Funds - 24.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 13,552 | | $ 287,033 |
Fidelity Blue Chip Growth Fund (b) | 4,051 | | 270,231 |
Fidelity Equity-Income Fund (b) | 6,808 | | 417,164 |
Fidelity Large Cap Stock Fund (b) | 11,344 | | 314,227 |
Fidelity Series 100 Index Fund (b) | 21,591 | | 274,642 |
Fidelity Series Broad Market Opportunities Fund (b) | 30,995 | | 476,090 |
Fidelity Series Small Cap Opportunities Fund (b) | 3,063 | | 39,701 |
TOTAL DOMESTIC EQUITY FUNDS | | 2,079,088 |
International Equity Funds - 2.2% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 4,650 | | 185,587 |
TOTAL EQUITY FUNDS (Cost $1,572,478) |
2,264,675
|
Fixed-Income Funds - 42.0% |
| | | |
Investment Grade Fixed-Income Funds - 42.0% |
Fidelity Government Income Fund (b) | 69,841 | | 724,255 |
Fidelity Strategic Real Return Fund (b) | 74,862 | | 716,433 |
Fidelity Total Bond Fund (b) | 203,270 | | 2,170,920 |
TOTAL FIXED-INCOME FUNDS (Cost $3,559,346) |
3,611,608
|
Short-Term Funds - 31.7% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,367,711 | | $ 1,367,711 |
Fidelity Short-Term Bond Fund (b) | 158,958 | | 1,365,451 |
TOTAL SHORT-TERM FUNDS (Cost $2,718,565) |
2,733,162
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,850,389) | | 8,609,445 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (684) |
NET ASSETS - 100% | $ 8,608,761 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 161,208 | $ 85,686 | $ 76,051 | $ 2,050 | $ 185,587 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 235,797 | 159,857 | 112,621 | 247 | 287,033 |
Fidelity Blue Chip Growth Fund | 218,782 | 136,098 | 113,078 | 910 | 270,231 |
Fidelity Capital & Income Fund | 24,270 | 2,917 | 27,788 | 450 | - |
Fidelity Equity-Income Fund | 336,182 | 187,563 | 141,888 | 9,878 | 417,164 |
Fidelity Government Income Fund | 482,766 | 338,725 | 104,801 | 9,749 | 724,255 |
Fidelity Institutional Money Market Portfolio Institutional Class | 868,607 | 690,149 | 191,044 | 916 | 1,367,711 |
Fidelity Large Cap Stock Fund | 252,502 | 149,402 | 118,913 | 2,483 | 314,227 |
Fidelity Series 100 Index Fund | 218,293 | 119,914 | 95,964 | 4,349 | 274,642 |
Fidelity Series Broad Market Opportunities Fund | 386,860 | 210,150 | 182,188 | 1,752 | 476,090 |
Fidelity Series Small Cap Opportunities Fund | 33,925 | 22,364 | 15,063 | 8 | 39,701 |
Fidelity Short-Term Bond Fund | 869,077 | 685,839 | 192,134 | 9,929 | 1,365,451 |
Fidelity Strategic Income Fund | 24,236 | 2,897 | 27,046 | 363 | - |
Fidelity Strategic Real Return Fund | 482,760 | 338,716 | 118,825 | 12,399 | 716,433 |
Fidelity Total Bond Fund | 1,449,522 | 1,013,908 | 312,929 | 51,698 | 2,170,920 |
Total | $ 6,044,787 | $ 4,144,185 | $ 1,830,333 | $ 107,181 | $ 8,609,445 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2020 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,850,389) - See accompanying schedule | | $ 8,609,445 |
Cash | | 5 |
Receivable for fund shares sold | | 500 |
Total assets | | 8,609,950 |
| | |
Liabilities | | |
Payable for investments purchased | $ 503 | |
Distribution and service plan fees payable | 686 | |
Total liabilities | | 1,189 |
| | |
Net Assets | | $ 8,608,761 |
Net Assets consist of: | | |
Paid in capital | | $ 7,826,939 |
Undistributed net investment income | | 1,732 |
Accumulated undistributed net realized gain (loss) on investments | | 21,034 |
Net unrealized appreciation (depreciation) on investments | | 759,056 |
Net Assets | | $ 8,608,761 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($812,519 ÷ 14,524.12 shares) | | $ 55.94 |
| | |
Maximum offering price per share (100/94.25 of $55.94) | | $ 59.35 |
Class T:
Net Asset Value and redemption price per share ($93,586 ÷ 1,672.60 shares) | | $ 55.95 |
| | |
Maximum offering price per share (100/96.50 of $55.95) | | $ 57.98 |
| | |
Class C:
Net Asset Value and offering price per share ($563,370 ÷ 10,088.81 shares)A | | $ 55.84 |
| | |
Income Replacement 2020:
Net Asset Value, offering price and redemption price per share ($7,052,631 ÷ 126,067.34 shares) | | $ 55.94 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($86,655 ÷ 1,548.95 shares) | | $ 55.94 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 107,181 |
| | |
Expenses | | |
Distribution and service plan fees | $ 6,935 | |
Independent trustees' compensation | 27 | |
Total expenses before reductions | 6,962 | |
Expense reductions | (27) | 6,935 |
Net investment income (loss) | | 100,246 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 20,456 | |
Capital gain distributions from underlying funds | 90,869 | |
Total net realized gain (loss) | | 111,325 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 230,351 |
Net gain (loss) | | 341,676 |
Net increase (decrease) in net assets resulting from operations | | $ 441,922 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 100,246 | $ 89,832 |
Net realized gain (loss) | 111,325 | 209,360 |
Change in net unrealized appreciation (depreciation) | 230,351 | 125,629 |
Net increase (decrease) in net assets resulting from operations | 441,922 | 424,821 |
Distributions to shareholders from net investment income | (99,649) | (89,581) |
Distributions to shareholders from net realized gain | (50,628) | (25,206) |
Total distributions | (150,277) | (114,787) |
Share transactions - net increase (decrease) | 2,272,722 | 872,079 |
Total increase (decrease) in net assets | 2,564,367 | 1,182,113 |
| | |
Net Assets | | |
Beginning of period | 6,044,394 | 4,862,281 |
End of period (including distributions in excess of net investment income of $1,732 and undistributed net investment income of $1,135, respectively) | $ 8,608,761 | $ 6,044,394 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .674 | .770 | .793 | .817 | .812 |
Net realized and unrealized gain (loss) | 2.766 | 3.157 | .884 | 4.128 | 3.930 |
Total from investment operations | 3.440 | 3.927 | 1.677 | 4.945 | 4.742 |
Distributions from net investment income | (.670) | (.774) | (.794) | (.826) | (.817) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.090) | (1.027) | (.977) | (1.045) | (.932) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 |
Total ReturnA, B | 6.48% | 7.84% | 3.44% | 10.79% | 11.27% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.23% | 1.47% | 1.61% | 1.67% | 1.79% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 813 | $ 411 | $ 408 | $ 436 | $ 607 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .537 | .639 | .670 | .696 | .696 |
Net realized and unrealized gain (loss) | 2.770 | 3.145 | .885 | 4.135 | 3.928 |
Total from investment operations | 3.307 | 3.784 | 1.555 | 4.831 | 4.624 |
Distributions from net investment income | (.527) | (.631) | (.672) | (.712) | (.699) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (.947) | (.884) | (.855) | (.931) | (.814) |
Net asset value, end of period | $ 55.95 | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 |
Total ReturnA, B | 6.22% | 7.54% | 3.18% | 10.54% | 10.98% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .98% | 1.22% | 1.36% | 1.42% | 1.54% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 94 | $ 101 | $ 189 | $ 196 | $ 134 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.51 | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .262 | .377 | .422 | .449 | .473 |
Net realized and unrealized gain (loss) | 2.759 | 3.151 | .876 | 4.132 | 3.923 |
Total from investment operations | 3.021 | 3.528 | 1.298 | 4.581 | 4.396 |
Distributions from net investment income | (.271) | (.415) | (.435) | (.452) | (.481) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (.691) | (.668) | (.618) | (.671) | (.596) |
Net asset value, end of period | $ 55.84 | $ 53.51 | $ 50.65 | $ 49.97 | $ 46.06 |
Total ReturnA, B | 5.68% | 7.02% | 2.65% | 9.98% | 10.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .48% | .72% | .86% | .92% | 1.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 563 | $ 322 | $ 306 | $ 228 | $ 295 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2020
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .813 | .901 | .917 | .942 | .925 |
Net realized and unrealized gain (loss) | 2.762 | 3.160 | .874 | 4.138 | 3.919 |
Total from investment operations | 3.575 | 4.061 | 1.791 | 5.080 | 4.844 |
Distributions from net investment income | (.805) | (.908) | (.918) | (.951) | (.929) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.225) | (1.161) | (1.101) | (1.170) | (1.044) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 |
Total ReturnA | 6.74% | 8.11% | 3.68% | 11.10% | 11.52% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.48% | 1.72% | 1.86% | 1.92% | 2.04% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,053 | $ 5,196 | $ 3,945 | $ 3,079 | $ 2,225 |
Portfolio turnover rate C | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .814 | .901 | .917 | .939 | .928 |
Net realized and unrealized gain (loss) | 2.761 | 3.160 | .874 | 4.141 | 3.916 |
Total from investment operations | 3.575 | 4.061 | 1.791 | 5.080 | 4.844 |
Distributions from net investment income | (.805) | (.908) | (.918) | (.951) | (.929) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.225) | (1.161) | (1.101) | (1.170) | (1.044) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 |
Total ReturnA | 6.74% | 8.11% | 3.68% | 11.10% | 11.52% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.48% | 1.72% | 1.86% | 1.92% | 2.04% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 87 | $ 14 | $ 13 | $ 32 | $ 49 |
Portfolio turnover rate C | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.2 | 4.4 |
Fidelity Blue Chip Growth Fund | 4.0 | 4.2 |
Fidelity Equity-Income Fund | 6.2 | 6.4 |
Fidelity Large Cap Stock Fund | 4.6 | 4.7 |
Fidelity Series 100 Index Fund | 4.0 | 4.1 |
Fidelity Series Broad Market Opportunities Fund | 7.0 | 7.3 |
Fidelity Series Small Cap Opportunities Fund | 0.6 | 0.6 |
| 30.6 | 31.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 3.1 | 3.3 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.0 | 1.2 |
Fidelity Strategic Income Fund | 1.1 | 1.2 |
| 2.1 | 2.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.7 | 7.6 |
Fidelity Strategic Real Return Fund | 7.6 | 7.6 |
Fidelity Total Bond Fund | 23.0 | 22.7 |
| 38.3 | 37.9 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 13.0 | 12.3 |
Fidelity Short-Term Bond Fund | 12.9 | 12.4 |
| 25.9 | 24.7 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 30.6% | |
 | International Equity Funds | 3.1% | |
 | High Yield Fixed-Income Funds | 2.1% | |
 | Investment Grade Fixed-Income Funds | 38.3% | |
| Short-Term Funds | 25.9% | |
Six months ago |
| Domestic Equity Funds | 31.7% | |
| International Equity Funds | 3.3% | |
| High Yield Fixed-Income Funds | 2.4% | |
| Investment Grade Fixed-Income Funds | 37.9% | |
| Short-Term Funds | 24.7% | |
Expected |
| Domestic Equity Funds | 29.4% | |
| International Equity Funds | 2.9% | |
| High Yield Fixed-Income Funds | 1.8% | |
| Investment Grade Fixed-Income Funds | 38.9% | |
| Short-Term Funds | 27.0% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2022 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 33.7% |
| Shares | | Value |
Domestic Equity Funds - 30.6% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 21,207 | | $ 449,169 |
Fidelity Blue Chip Growth Fund (b) | 6,327 | | 422,046 |
Fidelity Equity-Income Fund (b) | 10,634 | | 651,661 |
Fidelity Large Cap Stock Fund (b) | 17,711 | | 490,589 |
Fidelity Series 100 Index Fund (b) | 33,684 | | 428,462 |
Fidelity Series Broad Market Opportunities Fund (b) | 48,404 | | 743,479 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,798 | | 62,187 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,247,593 |
International Equity Funds - 3.1% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 8,223 | | 328,196 |
TOTAL EQUITY FUNDS (Cost $3,017,506) |
3,575,789
|
Fixed-Income Funds - 40.4% |
| | | |
High Yield Fixed-Income Funds - 2.1% |
Fidelity Capital & Income Fund (b) | 11,226 | | 112,819 |
Fidelity Strategic Income Fund (b) | 10,193 | | 113,757 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 226,576 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 38.3% |
Fidelity Government Income Fund (b) | 78,465 | | $ 813,681 |
Fidelity Strategic Real Return Fund (b) | 84,147 | | 805,291 |
Fidelity Total Bond Fund (b) | 228,462 | | 2,439,971 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 4,058,943 |
TOTAL FIXED-INCOME FUNDS (Cost $4,273,073) |
4,285,519
|
Short-Term Funds - 25.9% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,372,691 | | 1,372,691 |
Fidelity Short-Term Bond Fund (b) | 159,542 | | 1,370,467 |
TOTAL SHORT-TERM FUNDS (Cost $2,740,201) |
2,743,158
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,030,780) | | 10,604,466 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (368) |
NET ASSETS - 100% | $ 10,604,098 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 178,161 | $ 222,600 | $ 91,090 | $ 2,908 | $ 328,196 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 232,000 | 341,446 | 127,648 | 313 | 449,169 |
Fidelity Blue Chip Growth Fund | 215,074 | 296,975 | 128,335 | 978 | 422,046 |
Fidelity Capital & Income Fund | 63,597 | 79,901 | 34,668 | 4,170 | 112,819 |
Fidelity Equity-Income Fund | 330,881 | 426,726 | 156,026 | 13,415 | 651,661 |
Fidelity Government Income Fund | 360,647 | 571,399 | 126,554 | 9,729 | 813,681 |
Fidelity Institutional Money Market Portfolio Institutional Class | 579,040 | 1,004,010 | 210,360 | 806 | 1,372,691 |
Fidelity Large Cap Stock Fund | 248,520 | 338,314 | 133,423 | 3,449 | 490,589 |
Fidelity Series 100 Index Fund | 214,593 | 271,417 | 102,079 | 5,460 | 428,462 |
Fidelity Series Broad Market Opportunities Fund | 380,009 | 490,484 | 204,957 | 2,219 | 743,479 |
Fidelity Series Small Cap Opportunities Fund | 33,052 | 48,542 | 17,592 | 10 | 62,187 |
Fidelity Short-Term Bond Fund | 579,345 | 999,579 | 210,362 | 8,846 | 1,370,467 |
Fidelity Strategic Income Fund | 63,542 | 79,280 | 30,911 | 3,540 | 113,757 |
Fidelity Strategic Real Return Fund | 360,654 | 556,094 | 126,553 | 12,140 | 805,291 |
Fidelity Total Bond Fund | 1,083,758 | 1,710,607 | 379,538 | 50,948 | 2,439,971 |
Total | $ 4,922,873 | $ 7,437,374 | $ 2,080,096 | $ 118,931 | $ 10,604,466 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $10,030,780) - See accompanying schedule | | $ 10,604,466 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 368 |
| | |
Net Assets | | $ 10,604,098 |
Net Assets consist of: | | |
Paid in capital | | $ 10,460,528 |
Undistributed net investment income | | 2,228 |
Accumulated undistributed net realized gain (loss) on investments | | (432,344) |
Net unrealized appreciation (depreciation) on investments | | 573,686 |
Net Assets | | $ 10,604,098 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($418,512 ÷ 7,289.28 shares) | | $ 57.41 |
| | |
Maximum offering price per share (100/94.25 of $57.41) | | $ 60.91 |
Class T:
Net Asset Value and redemption price per share ($26,437 ÷ 460.06 shares) | | $ 57.46 |
| | |
Maximum offering price per share (100/96.50 of $57.46) | | $ 59.54 |
| | |
Class C:
Net Asset Value and offering price per share ($324,906 ÷ 5,666.45 shares)A | | $ 57.34 |
| | |
Income Replacement 2022:
Net Asset Value, offering price and redemption price per share ($9,773,612 ÷ 170,235.99 shares) | | $ 57.41 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($60,631 ÷ 1,056.39 shares) | | $ 57.39 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 118,931 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,591 | |
Independent trustees' compensation | 28 | |
Total expenses before reductions | 2,619 | |
Expense reductions | (28) | 2,591 |
Net investment income (loss) | | 116,340 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 426 | |
Capital gain distributions from underlying funds | 108,882 | |
Total net realized gain (loss) | | 109,308 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 323,887 |
Net gain (loss) | | 433,195 |
Net increase (decrease) in net assets resulting from operations | | $ 549,535 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 116,340 | $ 83,094 |
Net realized gain (loss) | 109,308 | 106,528 |
Change in net unrealized appreciation (depreciation) | 323,887 | 240,421 |
Net increase (decrease) in net assets resulting from operations | 549,535 | 430,043 |
Distributions to shareholders from net investment income | (115,076) | (82,827) |
Distributions to shareholders from net realized gain | (15,270) | (22,022) |
Total distributions | (130,346) | (104,849) |
Share transactions - net increase (decrease) | 5,262,153 | 282,835 |
Total increase (decrease) in net assets | 5,681,342 | 608,029 |
| | |
Net Assets | | |
Beginning of period | 4,922,756 | 4,314,727 |
End of period (including undistributed net investment income of $2,228 and undistributed net investment income of $964, respectively) | $ 10,604,098 | $ 4,922,756 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.16 | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .708 | .825 | .783 | .817 | .815 |
Net realized and unrealized gain (loss) | 3.351 | 3.933 | .842 | 4.431 | 3.980 |
Total from investment operations | 4.059 | 4.758 | 1.625 | 5.248 | 4.795 |
Distributions from net investment income | (.686) | (.804) | (.784) | (.824) | (.793) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.809) | (1.058) | (.955) | (1.038) | (1.085) |
Net asset value, end of period | $ 57.41 | $ 54.16 | $ 50.46 | $ 49.79 | $ 45.58 |
Total ReturnA, B | 7.54% | 9.54% | 3.35% | 11.58% | 11.53% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.26% | 1.57% | 1.59% | 1.67% | 1.82% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 419 | $ 391 | $ 386 | $ 72 | $ 42 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.24 | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .581 | .686 | .653 | .691 | .702 |
Net realized and unrealized gain (loss) | 3.339 | 3.958 | .871 | 4.434 | 3.985 |
Total from investment operations | 3.920 | 4.644 | 1.524 | 5.125 | 4.687 |
Distributions from net investment income | (.577) | (.680) | (.643) | (.661) | (.685) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.700) | (.934) | (.814) | (.875) | (.977) |
Net asset value, end of period | $ 57.46 | $ 54.24 | $ 50.53 | $ 49.82 | $ 45.57 |
Total ReturnA, B | 7.26% | 9.29% | 3.13% | 11.30% | 11.27% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .49% F | .49%F | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% F | .49% F | .50% | .50% | .50% |
Expenses net of all reductions | .49% F | .49% F | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.30% | 1.34% | 1.43% | 1.57% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 26 | $ 1 | $ 5 | $ 23 | $ 77 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.13 | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .293 | .434 | .411 | .447 | .477 |
Net realized and unrealized gain (loss) | 3.354 | 3.919 | .845 | 4.434 | 3.989 |
Total from investment operations | 3.647 | 4.353 | 1.256 | 4.881 | 4.466 |
Distributions from net investment income | (.314) | (.459) | (.405) | (.437) | (.454) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.437) | (.713) | (.576) | (.651) | (.746) |
Net asset value, end of period | $ 57.34 | $ 54.13 | $ 50.49 | $ 49.81 | $ 45.58 |
Total ReturnA, B | 6.76% | 8.70% | 2.58% | 10.74% | 10.72% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .83% | .84% | .92% | 1.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 325 | $ 54 | $ 28 | $ 32 | $ 44 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2022
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.15 | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .851 | .956 | .901 | .937 | .925 |
Net realized and unrealized gain (loss) | 3.358 | 3.922 | .849 | 4.438 | 3.978 |
Total from investment operations | 4.209 | 4.878 | 1.750 | 5.375 | 4.903 |
Distributions from net investment income | (.826) | (.934) | (.899) | (.941) | (.921) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.949) | (1.188) | (1.070) | (1.155) | (1.213) |
Net asset value, end of period | $ 57.41 | $ 54.15 | $ 50.46 | $ 49.78 | $ 45.56 |
Total ReturnA | 7.82% | 9.80% | 3.62% | 11.87% | 11.80% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.51% | 1.82% | 1.84% | 1.92% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 9,774 | $ 4,474 | $ 3,892 | $ 3,266 | $ 2,395 |
Portfolio turnover rate C | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.14 | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | .957 | .900 | .937 | .918 |
Net realized and unrealized gain (loss) | 3.343 | 3.921 | .850 | 4.428 | 3.995 |
Total from investment operations | 4.199 | 4.878 | 1.750 | 5.365 | 4.913 |
Distributions from net investment income | (.826) | (.934) | (.899) | (.941) | (.921) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.949) | (1.188) | (1.070) | (1.155) | (1.213) |
Net asset value, end of period | $ 57.39 | $ 54.14 | $ 50.45 | $ 49.77 | $ 45.56 |
Total ReturnA | 7.81% | 9.80% | 3.62% | 11.85% | 11.83% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.51% | 1.82% | 1.84% | 1.92% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 61 | $ 4 | $ 3 | $ 4 | $ 5 |
Portfolio turnover rate C | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.9 | 5.0 |
Fidelity Blue Chip Growth Fund | 4.6 | 4.8 |
Fidelity Equity-Income Fund | 7.1 | 7.3 |
Fidelity Large Cap Stock Fund | 5.4 | 5.4 |
Fidelity Series 100 Index Fund | 4.7 | 4.7 |
Fidelity Series Broad Market Opportunities Fund | 8.2 | 8.4 |
Fidelity Series Small Cap Opportunities Fund | 0.7 | 0.7 |
| 35.6 | 36.3 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 4.0 | 4.2 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.5 | 1.6 |
Fidelity Strategic Income Fund | 1.5 | 1.6 |
| 3.0 | 3.2 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.1 | 7.1 |
Fidelity Strategic Real Return Fund | 7.1 | 7.1 |
Fidelity Total Bond Fund | 21.5 | 21.3 |
| 35.7 | 35.5 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 10.9 | 10.4 |
Fidelity Short-Term Bond Fund | 10.8 | 10.4 |
| 21.7 | 20.8 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 35.6% | |
| International Equity Funds | 4.0% | |
| High Yield Fixed-Income Funds | 3.0% | |
| Investment Grade Fixed-Income Funds | 35.7% | |
| Short-Term Funds | 21.7% | |
Six months ago |
| Domestic Equity Funds | 36.3% | |
| International Equity Funds | 4.2% | |
| High Yield Fixed-Income Funds | 3.2% | |
| Investment Grade Fixed-Income Funds | 35.5% | |
| Short-Term Funds | 20.8% | |
Expected |
| Domestic Equity Funds | 34.8% | |
| International Equity Funds | 3.9% | |
| High Yield Fixed-Income Funds | 2.8% | |
| Investment Grade Fixed-Income Funds | 36.1% | |
| Short-Term Funds | 22.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2024 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 39.6% |
| Shares | | Value |
Domestic Equity Funds - 35.6% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 17,201 | | $ 364,312 |
Fidelity Blue Chip Growth Fund (b) | 5,133 | | 342,422 |
Fidelity Equity-Income Fund (b) | 8,624 | | 528,460 |
Fidelity Large Cap Stock Fund (b) | 14,376 | | 398,224 |
Fidelity Series 100 Index Fund (b) | 27,347 | | 347,848 |
Fidelity Series Broad Market Opportunities Fund (b) | 39,300 | | 603,649 |
Fidelity Series Small Cap Opportunities Fund (b) | 3,896 | | 50,493 |
TOTAL DOMESTIC EQUITY FUNDS | | 2,635,408 |
International Equity Funds - 4.0% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 7,463 | | 297,865 |
TOTAL EQUITY FUNDS (Cost $2,508,764) |
2,933,273
|
Fixed-Income Funds - 38.7% |
| | | |
High Yield Fixed-Income Funds - 3.0% |
Fidelity Capital & Income Fund (b) | 11,107 | | 111,626 |
Fidelity Strategic Income Fund (b) | 10,087 | | 112,565 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 224,191 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 35.7% |
Fidelity Government Income Fund (b) | 51,191 | | $ 530,848 |
Fidelity Strategic Real Return Fund (b) | 54,882 | | 525,221 |
Fidelity Total Bond Fund (b) | 149,126 | | 1,592,669 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,648,738 |
TOTAL FIXED-INCOME FUNDS (Cost $2,849,362) |
2,872,929
|
Short-Term Funds - 21.7% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 804,815 | | 804,815 |
Fidelity Short-Term Bond Fund (b) | 93,538 | | 803,492 |
TOTAL SHORT-TERM FUNDS (Cost $1,606,215) |
1,608,307
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,964,341) | | 7,414,509 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (257) |
NET ASSETS - 100% | $ 7,414,252 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 130,259 | $ 238,885 | $ 86,374 | $ 2,464 | $ 297,865 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 152,094 | 315,715 | 106,019 | 242 | 364,312 |
Fidelity Blue Chip Growth Fund | 140,772 | 276,127 | 106,491 | 739 | 342,422 |
Fidelity Capital & Income Fund | 48,152 | 92,101 | 32,347 | 3,843 | 111,626 |
Fidelity Equity-Income Fund | 216,692 | 410,995 | 137,777 | 10,389 | 528,460 |
Fidelity Government Income Fund | 196,513 | 420,343 | 91,818 | 6,243 | 530,848 |
Fidelity Institutional Money Market Portfolio Institutional Class | 284,337 | 649,035 | 128,557 | 462 | 804,815 |
Fidelity Large Cap Stock Fund | 162,826 | 319,348 | 112,253 | 2,693 | 398,224 |
Fidelity Series 100 Index Fund | 140,457 | 264,532 | 91,467 | 4,083 | 347,848 |
Fidelity Series Broad Market Opportunities Fund | 249,252 | 466,541 | 173,843 | 1,713 | 603,649 |
Fidelity Series Small Cap Opportunities Fund | 21,797 | 44,355 | 14,317 | 8 | 50,493 |
Fidelity Short-Term Bond Fund | 284,490 | 647,716 | 129,868 | 5,093 | 803,492 |
Fidelity Strategic Income Fund | 48,111 | 90,962 | 28,307 | 3,267 | 112,565 |
Fidelity Strategic Real Return Fund | 196,512 | 419,496 | 101,123 | 7,898 | 525,221 |
Fidelity Total Bond Fund | 589,994 | 1,259,591 | 275,066 | 32,579 | 1,592,669 |
Total | $ 2,862,258 | $ 5,915,742 | $ 1,615,627 | $ 81,716 | $ 7,414,509 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,964,341) - See accompanying schedule | | $ 7,414,509 |
Receivable for investments sold | | 1 |
Total assets | | 7,414,510 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 258 |
| | |
Net Assets | | $ 7,414,252 |
Net Assets consist of: | | |
Paid in capital | | $ 6,936,406 |
Undistributed net investment income | | 1,495 |
Accumulated undistributed net realized gain (loss) on investments | | 26,183 |
Net unrealized appreciation (depreciation) on investments | | 450,168 |
Net Assets | | $ 7,414,252 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($220,063 ÷ 3,776.13 shares) | | $ 58.28 |
| | |
Maximum offering price per share (100/94.25 of $58.28) | | $ 61.84 |
Class T:
Net Asset Value and redemption price per share ($190,491 ÷ 3,269.05 shares) | | $ 58.27 |
| | |
Maximum offering price per share (100/96.50 of $58.27) | | $ 60.38 |
| | |
Class C:
Net Asset Value and offering price per share ($155,611 ÷ 2,677.87 shares)A | | $ 58.11 |
| | |
Income Replacement 2024:
Net Asset Value, offering price and redemption price per share ($6,818,492 ÷ 117,023.33 shares) | | $ 58.27 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,595 ÷ 507.95 shares) | | $ 58.26 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 81,716 |
| | |
Expenses | | |
Distribution and service plan fees | $ 3,150 | |
Independent trustees' compensation | 19 | |
Total expenses before reductions | 3,169 | |
Expense reductions | (19) | 3,150 |
Net investment income (loss) | | 78,566 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (2,406) | |
Capital gain distributions from underlying funds | 82,811 | |
Total net realized gain (loss) | | 80,405 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 254,535 |
Net gain (loss) | | 334,940 |
Net increase (decrease) in net assets resulting from operations | | $ 413,506 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 78,566 | $ 42,257 |
Net realized gain (loss) | 80,405 | 74,340 |
Change in net unrealized appreciation (depreciation) | 254,535 | 131,901 |
Net increase (decrease) in net assets resulting from operations | 413,506 | 248,498 |
Distributions to shareholders from net investment income | (77,576) | (42,100) |
Distributions to shareholders from net realized gain | (28,499) | (9,399) |
Total distributions | (106,075) | (51,499) |
Share transactions - net increase (decrease) | 4,244,822 | 561,492 |
Total increase (decrease) in net assets | 4,552,253 | 758,491 |
| | |
Net Assets | | |
Beginning of period | 2,861,999 | 2,103,508 |
End of period (including undistributed net investment income of $1,495 and undistributed net investment income of $505, respectively) | $ 7,414,252 | $ 2,861,999 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .718 | .840 | .821 | .809 | .811 |
Net realized and unrealized gain (loss) | 3.808 | 4.571 | .771 | 4.667 | 4.020 |
Total from investment operations | 4.526 | 5.411 | 1.592 | 5.476 | 4.831 |
Distributions from net investment income | (.677) | (.900) | (.794) | (.819) | (.791) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.016) | (1.121) | (.962) | (1.036) | (.901) |
Net asset value, end of period | $ 58.28 | $ 54.77 | $ 50.48 | $ 49.85 | $ 45.41 |
Total ReturnA, B | 8.32% | 10.86% | 3.29% | 12.13% | 11.70% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.59% | 1.68% | 1.66% | 1.82% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 220 | $ 424 | $ 213 | $ 187 | $ 260 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.78 | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .579 | .706 | .699 | .685 | .701 |
Net realized and unrealized gain (loss) | 3.796 | 4.576 | .769 | 4.672 | 4.025 |
Total from investment operations | 4.375 | 5.282 | 1.468 | 5.357 | 4.726 |
Distributions from net investment income | (.546) | (.771) | (.680) | (.690) | (.676) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (.885) | (.992) | (.848) | (.907) | (.786) |
Net asset value, end of period | $ 58.27 | $ 54.78 | $ 50.49 | $ 49.87 | $ 45.42 |
Total ReturnA, B | 8.04% | 10.59% | 3.03% | 11.85% | 11.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.34% | 1.43% | 1.41% | 1.57% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 190 | $ 190 | $ 175 | $ 40 | $ 54 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.66 | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .295 | .444 | .454 | .443 | .476 |
Net realized and unrealized gain (loss) | 3.791 | 4.564 | .761 | 4.668 | 4.020 |
Total from investment operations | 4.086 | 5.008 | 1.215 | 5.111 | 4.496 |
Distributions from net investment income | (.297) | (.557) | (.437) | (.454) | (.456) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (.636) | (.778) | (.605) | (.671) | (.566) |
Net asset value, end of period | $ 58.11 | $ 54.66 | $ 50.43 | $ 49.82 | $ 45.38 |
Total ReturnA, B | 7.51% | 10.03% | 2.50% | 11.30% | 10.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .84% | .93% | .91% | 1.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 156 | $ 113 | $ 170 | $ 172 | $ 159 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2024
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .866 | .969 | .942 | .933 | .924 |
Net realized and unrealized gain (loss) | 3.805 | 4.563 | .775 | 4.668 | 4.020 |
Total from investment operations | 4.671 | 5.532 | 1.717 | 5.601 | 4.944 |
Distributions from net investment income | (.832) | (1.031) | (.919) | (.944) | (.904) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.171) | (1.252) | (1.087) | (1.161) | (1.014) |
Net asset value, end of period | $ 58.27 | $ 54.77 | $ 50.49 | $ 49.86 | $ 45.42 |
Total ReturnA | 8.60% | 11.12% | 3.55% | 12.41% | 11.98% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.84% | 1.93% | 1.91% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,818 | $ 2,108 | $ 1,521 | $ 1,463 | $ 1,026 |
Portfolio turnover rate C | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .863 | .969 | .944 | .930 | .922 |
Net realized and unrealized gain (loss) | 3.798 | 4.573 | .763 | 4.671 | 4.032 |
Total from investment operations | 4.661 | 5.542 | 1.707 | 5.601 | 4.954 |
Distributions from net investment income | (.832) | (1.031) | (.919) | (.944) | (.904) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.171) | (1.252) | (1.087) | (1.161) | (1.014) |
Net asset value, end of period | $ 58.26 | $ 54.77 | $ 50.48 | $ 49.86 | $ 45.42 |
Total ReturnA | 8.58% | 11.14% | 3.53% | 12.41% | 12.00% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.84% | 1.93% | 1.91% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30 | $ 27 | $ 25 | $ 28 | $ 37 |
Portfolio turnover rate C | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2026 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.4 | 5.5 |
Fidelity Blue Chip Growth Fund | 5.1 | 5.2 |
Fidelity Equity-Income Fund | 7.8 | 7.9 |
Fidelity Large Cap Stock Fund | 5.9 | 5.8 |
Fidelity Series 100 Index Fund | 5.2 | 5.1 |
Fidelity Series Broad Market Opportunities Fund | 8.9 | 9.1 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 39.1 | 39.4 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 4.9 | 5.0 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.8 | 1.9 |
Fidelity Strategic Income Fund | 1.9 | 2.0 |
| 3.7 | 3.9 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.7 | 6.7 |
Fidelity Strategic Real Return Fund | 6.7 | 6.7 |
Fidelity Total Bond Fund | 20.2 | 20.1 |
| 33.6 | 33.5 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 9.4 | 9.1 |
Fidelity Short-Term Bond Fund | 9.3 | 9.1 |
| 18.7 | 18.2 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 39.1% | |
| International Equity Funds | 4.9% | |
| High Yield Fixed-Income Funds | 3.7% | |
| Investment Grade Fixed-Income Funds | 33.6% | |
| Short-Term Funds | 18.7% | |
Six months ago |
| Domestic Equity Funds | 39.4% | |
| International Equity Funds | 5.0% | |
| High Yield Fixed-Income Funds | 3.9% | |
| Investment Grade Fixed-Income Funds | 33.5% | |
| Short-Term Funds | 18.2% | |
Expected |
| Domestic Equity Funds | 38.6% | |
| International Equity Funds | 4.8% | |
| High Yield Fixed-Income Funds | 3.6% | |
| Investment Grade Fixed-Income Funds | 33.8% | |
| Short-Term Funds | 19.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2026 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 44.0% |
| Shares | | Value |
Domestic Equity Funds - 39.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 10,973 | | $ 232,405 |
Fidelity Blue Chip Growth Fund (b) | 3,277 | | 218,622 |
Fidelity Equity-Income Fund (b) | 5,509 | | 337,591 |
Fidelity Large Cap Stock Fund (b) | 9,179 | | 254,270 |
Fidelity Series 100 Index Fund (b) | 17,466 | | 222,168 |
Fidelity Series Broad Market Opportunities Fund (b) | 25,054 | | 384,827 |
Fidelity Series Small Cap Opportunities Fund (b) | 2,484 | | 32,194 |
TOTAL DOMESTIC EQUITY FUNDS | | 1,682,077 |
International Equity Funds - 4.9% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 5,287 | | 210,994 |
TOTAL EQUITY FUNDS (Cost $1,578,763) |
1,893,071
|
Fixed-Income Funds - 37.3% |
| | | |
High Yield Fixed-Income Funds - 3.7% |
Fidelity Capital & Income Fund (b) | 7,870 | | 79,097 |
Fidelity Strategic Income Fund (b) | 7,148 | | 79,769 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 158,866 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 33.6% |
Fidelity Government Income Fund (b) | 27,997 | | $ 290,332 |
Fidelity Strategic Real Return Fund (b) | 30,013 | | 287,224 |
Fidelity Total Bond Fund (b) | 81,404 | | 869,392 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 1,446,948 |
TOTAL FIXED-INCOME FUNDS (Cost $1,597,401) |
1,605,814
|
Short-Term Funds - 18.7% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 403,677 | | 403,677 |
Fidelity Short-Term Bond Fund (b) | 46,916 | | 403,012 |
TOTAL SHORT-TERM FUNDS (Cost $805,484) |
806,689
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,981,648) | | 4,305,574 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (159) |
NET ASSETS - 100% | $ 4,305,415 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 116,306 | $ 138,069 | $ 55,931 | $ 2,032 | $ 210,994 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 122,791 | 170,742 | 62,841 | 176 | 232,405 |
Fidelity Blue Chip Growth Fund | 113,623 | 147,478 | 64,256 | 563 | 218,622 |
Fidelity Capital & Income Fund | 42,166 | 53,275 | 19,282 | 2,990 | 79,097 |
Fidelity Equity-Income Fund | 174,916 | 215,926 | 80,406 | 7,318 | 337,591 |
Fidelity Government Income Fund | 139,572 | 198,275 | 51,037 | 3,807 | 290,332 |
Fidelity Institutional Money Market Portfolio Institutional Class | 187,282 | 285,157 | 68,762 | 262 | 403,677 |
Fidelity Large Cap Stock Fund | 131,270 | 167,238 | 65,509 | 1,874 | 254,270 |
Fidelity Series 100 Index Fund | 113,368 | 136,468 | 51,936 | 3,028 | 222,168 |
Fidelity Series Broad Market Opportunities Fund | 201,073 | 241,697 | 101,814 | 1,247 | 384,827 |
Fidelity Series Small Cap Opportunities Fund | 17,439 | 24,480 | 8,713 | 6 | 32,194 |
Fidelity Short-Term Bond Fund | 187,589 | 284,619 | 70,066 | 2,866 | 403,012 |
Fidelity Strategic Income Fund | 42,132 | 53,994 | 17,690 | 2,537 | 79,769 |
Fidelity Strategic Real Return Fund | 139,573 | 197,421 | 56,197 | 4,763 | 287,224 |
Fidelity Total Bond Fund | 419,449 | 592,462 | 153,021 | 20,004 | 869,392 |
Total | $ 2,148,549 | $ 2,907,301 | $ 927,461 | $ 53,473 | $ 4,305,574 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2026 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $3,981,648) - See accompanying schedule | | $ 4,305,574 |
Receivable for investments sold | | 2,162 |
Receivable for fund shares sold | | 19,997 |
Total assets | | 4,327,733 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,778 | |
Payable for fund shares redeemed | 2,387 | |
Distribution and service plan fees payable | 153 | |
Total liabilities | | 22,318 |
| | |
Net Assets | | $ 4,305,415 |
Net Assets consist of: | | |
Paid in capital | | $ 4,104,117 |
Undistributed net investment income | | 821 |
Accumulated undistributed net realized gain (loss) on investments | | (123,449) |
Net unrealized appreciation (depreciation) on investments | | 323,926 |
Net Assets | | $ 4,305,415 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($526,026 ÷ 8,949.10 shares) | | $ 58.78 |
| | |
Maximum offering price per share (100/94.25 of $58.78) | | $ 62.37 |
Class T:
Net Asset Value and redemption price per share ($39,322 ÷ 668.36 shares) | | $ 58.83 |
| | |
Maximum offering price per share (100/96.50 of $58.83) | | $ 60.96 |
| | |
Class C:
Net Asset Value and offering price per share ($32,961 ÷ 561.58 shares)A | | $ 58.69 |
| | |
Income Replacement 2026:
Net Asset Value, offering price and redemption price per share ($3,677,301 ÷ 62,548.31 shares) | | $ 58.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,805 ÷ 506.97 shares) | | $ 58.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 53,473 |
| | |
Expenses | | |
Distribution and service plan fees | $ 1,692 | |
Independent trustees' compensation | 13 | |
Total expenses before reductions | 1,705 | |
Expense reductions | (13) | 1,692 |
Net investment income (loss) | | 51,781 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (6,274) | |
Capital gain distributions from underlying funds | 59,550 | |
Total net realized gain (loss) | | 53,276 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 183,459 |
Net gain (loss) | | 236,735 |
Net increase (decrease) in net assets resulting from operations | | $ 288,516 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 51,781 | $ 37,055 |
Net realized gain (loss) | 53,276 | 58,944 |
Change in net unrealized appreciation (depreciation) | 183,459 | 132,987 |
Net increase (decrease) in net assets resulting from operations | 288,516 | 228,986 |
Distributions to shareholders from net investment income | (51,362) | (36,935) |
Distributions to shareholders from net realized gain | (8,328) | (8,863) |
Total distributions | (59,690) | (45,798) |
Share transactions - net increase (decrease) | 1,928,159 | 186,174 |
Total increase (decrease) in net assets | 2,156,985 | 369,362 |
| | |
Net Assets | | |
Beginning of period | 2,148,430 | 1,779,068 |
End of period (including undistributed net investment income of $821 and undistributed net investment income of $401, respectively) | $ 4,305,415 | $ 2,148,430 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .735 | .906 | .793 | .750 | .743 |
Net realized and unrealized gain (loss) | 4.084 | 4.920 | .712 | 4.846 | 4.098 |
Total from investment operations | 4.819 | 5.826 | 1.505 | 5.596 | 4.841 |
Distributions from net investment income | (.708) | (.879) | (.789) | (.796) | (.771) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.849) | (1.106) | (.945) | (.996) | (.881) |
Net asset value, end of period | $ 58.78 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.93 |
Total ReturnA, B | 8.84% | 11.79% | 3.13% | 12.52% | 11.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.28% | 1.73% | 1.64% | 1.55% | 1.68% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 526 | $ 304 | $ 139 | $ 108 | $ 45 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.82 | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .587 | .781 | .668 | .630 | .638 |
Net realized and unrealized gain (loss) | 4.098 | 4.911 | .713 | 4.851 | 4.092 |
Total from investment operations | 4.685 | 5.692 | 1.381 | 5.481 | 4.730 |
Distributions from net investment income | (.534) | (.725) | (.675) | (.671) | (.670) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.675) | (.952) | (.831) | (.871) | (.780) |
Net asset value, end of period | $ 58.83 | $ 54.82 | $ 50.08 | $ 49.53 | $ 44.92 |
Total ReturnA, B | 8.58% | 11.50% | 2.87% | 12.26% | 11.59% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.03% | 1.48% | 1.39% | 1.30% | 1.44% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39 | $ 85 | $ 298 | $ 130 | $ 116 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.76 | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .303 | .508 | .430 | .387 | .412 |
Net realized and unrealized gain (loss) | 4.086 | 4.915 | .730 | 4.848 | 4.087 |
Total from investment operations | 4.389 | 5.423 | 1.160 | 5.235 | 4.499 |
Distributions from net investment income | (.318) | (.556) | (.374) | (.435) | (.449) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.459) | (.783) | (.530) | (.635) | (.559) |
Net asset value, end of period | $ 58.69 | $ 54.76 | $ 50.12 | $ 49.49 | $ 44.89 |
Total ReturnA, B | 8.04% | 10.93% | 2.40% | 11.70% | 11.01% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .53% | .97% | .89% | .80% | .94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 33 | $ 31 | $ 9 | $ 184 | $ 174 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2026
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss)B | .878 | 1.040 | .913 | .878 | .856 |
Net realized and unrealized gain (loss) | 4.094 | 4.914 | .711 | 4.844 | 4.091 |
Total from investment operations | 4.972 | 5.954 | 1.624 | 5.722 | 4.947 |
Distributions from net investment income | (.851) | (1.007) | (.908) | (.912) | (.887) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.992) | (1.234) | (1.064) | (1.112) | (.997) |
Net asset value, end of period | $ 58.79 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 |
Total ReturnA | 9.13% | 12.06% | 3.39% | 12.82% | 12.14% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 1.98% | 1.88% | 1.80% | 1.94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,677 | $ 1,702 | $ 1,309 | $ 1,666 | $ 622 |
Portfolio turnover rate C | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .877 | 1.039 | .912 | .870 | .855 |
Net realized and unrealized gain (loss) | 4.095 | 4.915 | .712 | 4.852 | 4.092 |
Total from investment operations | 4.972 | 5.954 | 1.624 | 5.722 | 4.947 |
Distributions from net investment income | (.851) | (1.007) | (.908) | (.912) | (.887) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.992) | (1.234) | (1.064) | (1.112) | (.997) |
Net asset value, end of period | $ 58.79 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 |
Total ReturnA | 9.13% | 12.06% | 3.39% | 12.82% | 12.14% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 1.98% | 1.88% | 1.80% | 1.94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30 | $ 27 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.7 | 5.8 |
Fidelity Blue Chip Growth Fund | 5.4 | 5.4 |
Fidelity Equity-Income Fund | 8.3 | 8.3 |
Fidelity Large Cap Stock Fund | 6.2 | 6.2 |
Fidelity Series 100 Index Fund | 5.4 | 5.3 |
Fidelity Series Broad Market Opportunities Fund | 9.5 | 9.6 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 41.3 | 41.4 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 5.7 | 5.8 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.0 | 2.1 |
Fidelity Strategic Income Fund | 2.1 | 2.2 |
| 4.1 | 4.3 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.4 | 6.4 |
Fidelity Strategic Real Return Fund | 6.4 | 6.4 |
Fidelity Total Bond Fund | 19.3 | 19.1 |
| 32.1 | 31.9 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 8.4 | 8.3 |
Fidelity Short-Term Bond Fund | 8.4 | 8.3 |
| 16.8 | 16.6 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 41.3% | |
| International Equity Funds | 5.7% | |
| High Yield Fixed-Income Funds | 4.1% | |
| Investment Grade Fixed-Income Funds | 32.1% | |
| Short-Term Funds | 16.8% | |
Six months ago |
| Domestic Equity Funds | 41.4% | |
| International Equity Funds | 5.8% | |
| High Yield Fixed-Income Funds | 4.3% | |
| Investment Grade Fixed-Income Funds | 31.9% | |
| Short-Term Funds | 16.6% | |
Expected |
| Domestic Equity Funds | 41.3% | |
| International Equity Funds | 5.6% | |
| High Yield Fixed-Income Funds | 4.0% | |
| Investment Grade Fixed-Income Funds | 32.1% | |
| Short-Term Funds | 17.0% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2028 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 47.0% |
| Shares | | Value |
Domestic Equity Funds - 41.3% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 61,791 | | $ 1,308,725 |
Fidelity Blue Chip Growth Fund (b) | 18,421 | | 1,228,892 |
Fidelity Equity-Income Fund (b) | 30,988 | | 1,898,967 |
Fidelity Large Cap Stock Fund (b) | 51,633 | | 1,430,243 |
Fidelity Series 100 Index Fund (b) | 98,080 | | 1,247,581 |
Fidelity Series Broad Market Opportunities Fund (b) | 141,073 | | 2,166,880 |
Fidelity Series Small Cap Opportunities Fund (b) | 14,098 | | 182,716 |
TOTAL DOMESTIC EQUITY FUNDS | | 9,464,004 |
International Equity Funds - 5.7% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 32,745 | | 1,306,846 |
TOTAL EQUITY FUNDS (Cost $9,548,187) |
10,770,850
|
Fixed-Income Funds - 36.2% |
| | | |
High Yield Fixed-Income Funds - 4.1% |
Fidelity Capital & Income Fund (b) | 47,189 | | 474,251 |
Fidelity Strategic Income Fund (b) | 42,851 | | 478,222 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 952,473 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 32.1% |
Fidelity Government Income Fund (b) | 142,272 | | $ 1,475,362 |
Fidelity Strategic Real Return Fund (b) | 152,568 | | 1,460,077 |
Fidelity Total Bond Fund (b) | 413,660 | | 4,417,893 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 7,353,332 |
TOTAL FIXED-INCOME FUNDS (Cost $8,267,505) |
8,305,805
|
Short-Term Funds - 16.8% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,928,320 | | 1,928,320 |
Fidelity Short-Term Bond Fund (b) | 224,128 | | 1,925,259 |
TOTAL SHORT-TERM FUNDS (Cost $3,847,238) |
3,853,579
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $21,662,930) | | 22,930,234 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | 742 |
NET ASSETS - 100% | $ 22,930,976 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 499,848 | $ 929,489 | $ 169,640 | $ 6,600 | $ 1,306,846 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 480,592 | 989,148 | 174,789 | 518 | 1,308,725 |
Fidelity Blue Chip Growth Fund | 444,607 | 895,367 | 185,775 | 1,909 | 1,228,892 |
Fidelity Capital & Income Fund | 173,936 | 340,299 | 47,259 | 11,612 | 474,251 |
Fidelity Equity-Income Fund | 684,505 | 1,313,296 | 191,792 | 27,793 | 1,898,967 |
Fidelity Government Income Fund | 497,527 | 1,075,142 | 106,779 | 12,712 | 1,475,362 |
Fidelity Institutional Money Market Portfolio Institutional Class | 642,394 | 1,420,816 | 134,891 | 845 | 1,928,320 |
Fidelity Large Cap Stock Fund | 514,724 | 1,024,923 | 172,363 | 7,081 | 1,430,243 |
Fidelity Series 100 Index Fund | 443,617 | 849,023 | 134,232 | 9,316 | 1,247,581 |
Fidelity Series Broad Market Opportunities Fund | 787,235 | 1,498,547 | 266,705 | 3,668 | 2,166,880 |
Fidelity Series Small Cap Opportunities Fund | 68,500 | 144,861 | 24,921 | 17 | 182,716 |
Fidelity Short-Term Bond Fund | 642,734 | 1,416,727 | 134,953 | 9,197 | 1,925,259 |
Fidelity Strategic Income Fund | 173,797 | 341,675 | 41,404 | 9,868 | 478,222 |
Fidelity Strategic Real Return Fund | 497,534 | 1,068,376 | 114,886 | 17,677 | 1,460,077 |
Fidelity Total Bond Fund | 1,492,003 | 3,225,023 | 323,263 | 66,707 | 4,417,893 |
Total | $ 8,043,553 | $ 16,532,712 | $ 2,223,652 | $ 185,520 | $ 22,930,234 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $21,662,930) - See accompanying schedule | | $ 22,930,234 |
Receivable for investments sold | | 50,960 |
Receivable for fund shares sold | | 1,022 |
Total assets | | 22,982,216 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 50,924 | |
Distribution and service plan fees payable | 316 | |
Total liabilities | | 51,240 |
| | |
Net Assets | | $ 22,930,976 |
Net Assets consist of: | | |
Paid in capital | | $ 21,893,235 |
Undistributed net investment income | | 4,387 |
Accumulated undistributed net realized gain (loss) on investments | | (233,950) |
Net unrealized appreciation (depreciation) on investments | | 1,267,304 |
Net Assets | | $ 22,930,976 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($698,740 ÷ 11,692.25 shares) | | $ 59.76 |
| | |
Maximum offering price per share (100/94.25 of $59.76) | | $ 63.41 |
Class T:
Net Asset Value and redemption price per share ($337,983 ÷ 5,655.14 shares) | | $ 59.77 |
| | |
Maximum offering price per share (100/96.50 of $59.77) | | $ 61.94 |
| | |
Class C:
Net Asset Value and offering price per share ($37,286 ÷ 625.11 shares)A | | $ 59.65 |
| | |
Income Replacement 2028:
Net Asset Value, offering price and redemption price per share ($21,765,588 ÷ 364,232.07 shares) | | $ 59.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($91,379 ÷ 1,529.10 shares) | | $ 59.76 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 185,520 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,346 | |
Independent trustees' compensation | 43 | |
Total expenses before reductions | 2,389 | |
Expense reductions | (43) | 2,346 |
Net investment income (loss) | | 183,174 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 17,411 | |
Capital gain distributions from underlying funds | 198,632 | |
Total net realized gain (loss) | | 216,043 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 560,204 |
Net gain (loss) | | 776,247 |
Net increase (decrease) in net assets resulting from operations | | $ 959,421 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 183,174 | $ 124,877 |
Net realized gain (loss) | 216,043 | 190,275 |
Change in net unrealized appreciation (depreciation) | 560,204 | 480,221 |
Net increase (decrease) in net assets resulting from operations | 959,421 | 795,373 |
Distributions to shareholders from net investment income | (180,281) | (124,207) |
Distributions to shareholders from net realized gain | (25,118) | (26,559) |
Total distributions | (205,399) | (150,766) |
Share transactions - net increase (decrease) | 14,133,535 | 1,675,414 |
Total increase (decrease) in net assets | 14,887,557 | 2,320,021 |
| | |
Net Assets | | |
Beginning of period | 8,043,419 | 5,723,398 |
End of period (including undistributed net investment income of $4,387 and undistributed net investment income of $1,493, respectively) | $ 22,930,976 | $ 8,043,419 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .733 | .868 | .792 | .802 | .789 |
Net realized and unrealized gain (loss) | 4.363 | 5.348 | .666 | 4.972 | 4.116 |
Total from investment operations | 5.096 | 6.216 | 1.458 | 5.774 | 4.905 |
Distributions from net investment income | (.713) | (.879) | (.794) | (.815) | (.785) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.876) | (1.106) | (.948) | (1.024) | (.895) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.43 | $ 49.92 | $ 45.17 |
Total ReturnA, B | 9.23% | 12.49% | 3.02% | 12.85% | 11.96% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.25% | 1.64% | 1.63% | 1.65% | 1.78% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 699 | $ 122 | $ 133 | $ 133 | $ 359 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.55 | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .580 | .738 | .672 | .682 | .678 |
Net realized and unrealized gain (loss) | 4.379 | 5.346 | .678 | 4.975 | 4.107 |
Total from investment operations | 4.959 | 6.084 | 1.350 | 5.657 | 4.785 |
Distributions from net investment income | (.576) | (.767) | (.676) | (.668) | (.675) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.739) | (.994) | (.830) | (.877) | (.785) |
Net asset value, end of period | $ 59.77 | $ 55.55 | $ 50.46 | $ 49.94 | $ 45.16 |
Total ReturnA, B | 8.97% | 12.21% | 2.79% | 12.57% | 11.66% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.00% | 1.39% | 1.38% | 1.40% | 1.53% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 338 | $ 326 | $ 128 | $ 130 | $ 328 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.49 | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .293 | .471 | .427 | .438 | .454 |
Net realized and unrealized gain (loss) | 4.369 | 5.346 | .662 | 4.974 | 4.117 |
Total from investment operations | 4.662 | 5.817 | 1.089 | 5.412 | 4.571 |
Distributions from net investment income | (.339) | (.540) | (.435) | (.453) | (.431) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.502) | (.767) | (.589) | (.662) | (.541) |
Net asset value, end of period | $ 59.65 | $ 55.49 | $ 50.44 | $ 49.94 | $ 45.19 |
Total ReturnA, B | 8.43% | 11.65% | 2.24% | 12.01% | 11.13% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .50% | .89% | .88% | .90% | 1.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 37 | $ 18 | $ 33 | $ 49 | $ 51 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2028
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .874 | 1.003 | .914 | .925 | .900 |
Net realized and unrealized gain (loss) | 4.376 | 5.340 | .680 | 4.965 | 4.115 |
Total from investment operations | 5.250 | 6.343 | 1.594 | 5.890 | 5.015 |
Distributions from net investment income | (.867) | (1.016) | (.920) | (.941) | (.895) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (1.030) | (1.243) | (1.074) | (1.150) | (1.005) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 |
Total ReturnA | 9.52% | 12.76% | 3.30% | 13.12% | 12.24% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.50% | 1.89% | 1.88% | 1.90% | 2.03% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21,766 | $ 7,494 | $ 5,405 | $ 5,783 | $ 5,383 |
Portfolio turnover rate C | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .871 | 1.011 | .916 | .923 | .899 |
Net realized and unrealized gain (loss) | 4.379 | 5.332 | .678 | 4.967 | 4.116 |
Total from investment operations | 5.250 | 6.343 | 1.594 | 5.890 | 5.015 |
Distributions from net investment income | (.867) | (1.016) | (.920) | (.941) | (.895) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (1.030) | (1.243) | (1.074) | (1.150) | (1.005) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 |
Total ReturnA | 9.52% | 12.76% | 3.30% | 13.12% | 12.24% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.50% | 1.89% | 1.88% | 1.90% | 2.03% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 91 | $ 83 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2030 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.9 | 6.0 |
Fidelity Blue Chip Growth Fund | 5.6 | 5.6 |
Fidelity Equity-Income Fund | 8.6 | 8.6 |
Fidelity Large Cap Stock Fund | 6.5 | 6.4 |
Fidelity Series 100 Index Fund | 5.6 | 5.5 |
Fidelity Series Broad Market Opportunities Fund | 9.8 | 9.9 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.9 |
| 42.8 | 42.9 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 6.5 | 6.6 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.2 | 2.3 |
Fidelity Strategic Income Fund | 2.3 | 2.3 |
| 4.5 | 4.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.2 | 6.2 |
Fidelity Strategic Real Return Fund | 6.1 | 6.1 |
Fidelity Total Bond Fund | 18.4 | 18.5 |
| 30.7 | 30.8 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 7.8 | 7.5 |
Fidelity Short-Term Bond Fund | 7.7 | 7.6 |
| 15.5 | 15.1 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 42.8% | |
| International Equity Funds | 6.5% | |
| High Yield Fixed-Income Funds | 4.5% | |
| Investment Grade Fixed-Income Funds | 30.7% | |
| Short-Term Funds | 15.5% | |
Six months ago |
| Domestic Equity Funds | 42.9% | |
| International Equity Funds | 6.6% | |
| High Yield Fixed-Income Funds | 4.6% | |
| Investment Grade Fixed-Income Funds | 30.8% | |
| Short-Term Funds | 15.1% | |
Expected |
| Domestic Equity Funds | 43.0% | |
| International Equity Funds | 6.4% | |
| High Yield Fixed-Income Funds | 4.4% | |
| Investment Grade Fixed-Income Funds | 30.6% | |
| Short-Term Funds | 15.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2030 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 49.3% |
| Shares | | Value |
Domestic Equity Funds - 42.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 44,376 | | $ 939,878 |
Fidelity Blue Chip Growth Fund (b) | 13,247 | | 883,698 |
Fidelity Equity-Income Fund (b) | 22,259 | | 1,364,041 |
Fidelity Large Cap Stock Fund (b) | 37,076 | | 1,027,000 |
Fidelity Series 100 Index Fund (b) | 70,602 | | 898,054 |
Fidelity Series Broad Market Opportunities Fund (b) | 101,312 | | 1,556,146 |
Fidelity Series Small Cap Opportunities Fund (b) | 10,097 | | 130,853 |
TOTAL DOMESTIC EQUITY FUNDS | | 6,799,670 |
International Equity Funds - 6.5% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 25,732 | | 1,026,963 |
TOTAL EQUITY FUNDS (Cost $6,712,226) |
7,826,633
|
Fixed-Income Funds - 35.2% |
| | | |
High Yield Fixed-Income Funds - 4.5% |
Fidelity Capital & Income Fund (b) | 35,522 | | 357,000 |
Fidelity Strategic Income Fund (b) | 32,261 | | 360,037 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 717,037 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 30.7% |
Fidelity Government Income Fund (b) | 94,171 | | $ 976,553 |
Fidelity Strategic Real Return Fund (b) | 100,949 | | 966,081 |
Fidelity Total Bond Fund (b) | 274,078 | | 2,927,151 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 4,869,785 |
TOTAL FIXED-INCOME FUNDS (Cost $5,511,811) |
5,586,822
|
Short-Term Funds - 15.5% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,227,131 | | 1,227,131 |
Fidelity Short-Term Bond Fund (b) | 142,620 | | 1,225,107 |
TOTAL SHORT-TERM FUNDS (Cost $2,446,901) |
2,452,238
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $14,670,938) | | 15,865,693 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (319) |
NET ASSETS - 100% | $ 15,865,374 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 412,788 | $ 803,259 | $ 235,283 | $ 8,472 | $ 1,026,963 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 363,773 | 805,964 | 229,289 | 632 | 939,878 |
Fidelity Blue Chip Growth Fund | 336,749 | 702,186 | 232,541 | 1,818 | 883,698 |
Fidelity Capital & Income Fund | 137,015 | 280,889 | 71,838 | 12,084 | 357,000 |
Fidelity Equity-Income Fund | 518,628 | 1,039,534 | 292,034 | 27,427 | 1,364,041 |
Fidelity Government Income Fund | 351,965 | 772,375 | 158,705 | 11,859 | 976,553 |
Fidelity Institutional Money Market Portfolio Institutional Class | 429,392 | 989,913 | 192,174 | 734 | 1,227,131 |
Fidelity Large Cap Stock Fund | 389,387 | 806,436 | 239,718 | 6,897 | 1,027,000 |
Fidelity Series 100 Index Fund | 335,996 | 662,092 | 186,934 | 10,722 | 898,054 |
Fidelity Series Broad Market Opportunities Fund | 596,337 | 1,180,284 | 371,918 | 4,481 | 1,556,146 |
Fidelity Series Small Cap Opportunities Fund | 52,021 | 116,019 | 32,856 | 21 | 130,853 |
Fidelity Short-Term Bond Fund | 429,610 | 988,036 | 194,327 | 8,100 | 1,225,107 |
Fidelity Strategic Income Fund | 136,911 | 288,323 | 70,680 | 10,290 | 360,037 |
Fidelity Strategic Real Return Fund | 351,986 | 778,089 | 184,799 | 14,784 | 966,081 |
Fidelity Total Bond Fund | 1,057,723 | 2,330,318 | 495,639 | 61,798 | 2,927,151 |
Total | $ 5,900,281 | $ 12,543,717 | $ 3,188,735 | $ 180,119 | $ 15,865,693 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2030 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $14,670,938) - See accompanying schedule | | $ 15,865,693 |
Cash | | 2 |
Receivable for fund shares sold | | 12,542 |
Total assets | | 15,878,237 |
| | |
Liabilities | | |
Payable for investments purchased | $ 12,502 | |
Distribution and service plan fees payable | 361 | |
Total liabilities | | 12,863 |
| | |
Net Assets | | $ 15,865,374 |
Net Assets consist of: | | |
Paid in capital | | $ 14,608,000 |
Undistributed net investment income | | 3,019 |
Accumulated undistributed net realized gain (loss) on investments | | 59,600 |
Net unrealized appreciation (depreciation) on investments | | 1,194,755 |
Net Assets | | $ 15,865,374 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($257,010 ÷ 4,295.09 shares) | | $ 59.84 |
| | |
Maximum offering price per share (100/94.25 of $59.84) | | $ 63.49 |
Class T:
Net Asset Value and redemption price per share ($17,373 ÷ 289.77 shares) | | $ 59.95 |
| | |
Maximum offering price per share (100/96.50 of $59.95) | | $ 62.12 |
| | |
Class C:
Net Asset Value and offering price per share ($352,784 ÷ 5,915.40 shares)A | | $ 59.64 |
| | |
Income Replacement 2030:
Net Asset Value, offering price and redemption price per share ($15,175,100 ÷ 253,596.50 shares) | | $ 59.84 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($63,107 ÷ 1,054.55 shares) | | $ 59.84 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 180,119 |
| | |
Expenses | | |
Distribution and service plan fees | $ 3,769 | |
Independent trustees' compensation | 42 | |
Total expenses before reductions | 3,811 | |
Expense reductions | (42) | 3,769 |
Net investment income (loss) | | 176,350 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (19,267) | |
Capital gain distributions from underlying funds | 206,864 | |
Total net realized gain (loss) | | 187,597 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 629,689 |
Net gain (loss) | | 817,286 |
Net increase (decrease) in net assets resulting from operations | | $ 993,636 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 176,350 | $ 80,370 |
Net realized gain (loss) | 187,597 | 155,323 |
Change in net unrealized appreciation (depreciation) | 629,689 | 299,880 |
Net increase (decrease) in net assets resulting from operations | 993,636 | 535,573 |
Distributions to shareholders from net investment income | (174,314) | (80,007) |
Distributions to shareholders from net realized gain | (29,274) | (17,604) |
Total distributions | (203,588) | (97,611) |
Share transactions - net increase (decrease) | 9,175,334 | 1,469,395 |
Total increase (decrease) in net assets | 9,965,382 | 1,907,357 |
| | |
Net Assets | | |
Beginning of period | 5,899,992 | 3,992,635 |
End of period (including undistributed net investment income of $3,019 and undistributed net investment income of $983, respectively) | $ 15,865,374 | $ 5,899,992 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .740 | .886 | .815 | .791 | .718 |
Net realized and unrealized gain (loss) | 4.505 | 5.568 | .598 | 5.066 | 4.180 |
Total from investment operations | 5.245 | 6.454 | 1.413 | 5.857 | 4.898 |
Distributions from net investment income | (.700) | (.896) | (.796) | (.801) | (.713) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.855) | (1.124) | (.943) | (.977) | (.818) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.65 | $ 44.77 |
Total ReturnA, B | 9.51% | 13.06% | 2.94% | 13.15% | 12.08% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.67% | 1.68% | 1.63% | 1.63% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 257 | $ 145 | $ 86 | $ 72 | $ 66 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.55 | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .597 | .745 | .715 | .655 | .603 |
Net realized and unrealized gain (loss) | 4.507 | 5.590 | .598 | 5.076 | 4.182 |
Total from investment operations | 5.104 | 6.335 | 1.313 | 5.731 | 4.785 |
Distributions from net investment income | (.549) | (.757) | (.636) | (.665) | (.590) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.704) | (.985) | (.783) | (.841) | (.695) |
Net asset value, end of period | $ 59.95 | $ 55.55 | $ 50.20 | $ 49.67 | $ 44.78 |
Total ReturnA, B | 9.23% | 12.78% | 2.72% | 12.85% | 11.79% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .51% F | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .51% F | .46% | .50% | .50% |
Expenses net of all reductions | .50% | .51% F | .46% | .50% | .50% |
Net investment income (loss) | 1.03% | 1.41% | 1.48% | 1.38% | 1.37% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17 | $ 15 | $ 13 | $ 15 | $ 45 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.33 | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .303 | .486 | .451 | .428 | .385 |
Net realized and unrealized gain (loss) | 4.486 | 5.561 | .604 | 5.060 | 4.185 |
Total from investment operations | 4.789 | 6.047 | 1.055 | 5.488 | 4.570 |
Distributions from net investment income | (.324) | (.559) | (.448) | (.452) | (.385) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.479) | (.787) | (.595) | (.628) | (.490) |
Net asset value, end of period | $ 59.64 | $ 55.33 | $ 50.07 | $ 49.61 | $ 44.75 |
Total ReturnA, B | 8.68% | 12.21% | 2.19% | 12.30% | 11.26% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .92% | .93% | .88% | .88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 353 | $ 315 | $ 312 | $ 270 | $ 186 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2030
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .888 | 1.015 | .935 | .917 | .821 |
Net realized and unrealized gain (loss) | 4.502 | 5.567 | .608 | 5.062 | 4.178 |
Total from investment operations | 5.390 | 6.582 | 1.543 | 5.979 | 4.999 |
Distributions from net investment income | (.845) | (1.024) | (.916) | (.923) | (.824) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (1.000) | (1.252) | (1.063) | (1.099) | (.929) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.76 |
Total ReturnA | 9.78% | 13.33% | 3.22% | 13.43% | 12.34% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.92% | 1.93% | 1.88% | 1.88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 15,175 | $ 5,367 | $ 3,558 | $ 3,962 | $ 1,628 |
Portfolio turnover rate C | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .885 | 1.020 | .936 | .911 | .825 |
Net realized and unrealized gain (loss) | 4.505 | 5.562 | .607 | 5.058 | 4.184 |
Total from investment operations | 5.390 | 6.582 | 1.543 | 5.969 | 5.009 |
Distributions from net investment income | (.845) | (1.024) | (.916) | (.923) | (.824) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (1.000) | (1.252) | (1.063) | (1.099) | (.929) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.77 |
Total ReturnA | 9.78% | 13.33% | 3.22% | 13.41% | 12.36% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.92% | 1.93% | 1.88% | 1.88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 63 | $ 57 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.1 | 6.1 |
Fidelity Blue Chip Growth Fund | 5.7 | 5.8 |
Fidelity Equity-Income Fund | 8.8 | 8.8 |
Fidelity Large Cap Stock Fund | 6.7 | 6.5 |
Fidelity Series 100 Index Fund | 5.8 | 5.7 |
Fidelity Series Broad Market Opportunities Fund | 10.1 | 10.2 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 44.1 | 44.0 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 7.2 | 7.3 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.4 | 2.4 |
Fidelity Strategic Income Fund | 2.4 | 2.5 |
| 4.8 | 4.9 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.0 | 6.1 |
Fidelity Strategic Real Return Fund | 5.9 | 6.0 |
Fidelity Total Bond Fund | 18.0 | 18.0 |
| 29.9 | 30.1 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 7.0 | 6.8 |
Fidelity Short-Term Bond Fund | 7.0 | 6.9 |
| 14.0 | 13.7 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 44.1% | |
| International Equity Funds | 7.2% | |
| High Yield Fixed-Income Funds | 4.8% | |
| Investment Grade Fixed-Income Funds | 29.9% | |
| Short-Term Funds | 14.0% | |
Six months ago |
| Domestic Equity Funds | 44.0% | |
| International Equity Funds | 7.3% | |
| High Yield Fixed-Income Funds | 4.9% | |
| Investment Grade Fixed-Income Funds | 30.1% | |
| Short-Term Funds | 13.7% | |
Expected |
| Domestic Equity Funds | 44.2% | |
| International Equity Funds | 7.2% | |
| High Yield Fixed-Income Funds | 4.8% | |
| Investment Grade Fixed-Income Funds | 29.6% | |
| Short-Term Funds | 14.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2032 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 51.3% |
| Shares | | Value |
Domestic Equity Funds - 44.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 23,172 | | $ 490,780 |
Fidelity Blue Chip Growth Fund (b) | 6,908 | | 460,847 |
Fidelity Equity-Income Fund (b) | 11,619 | | 712,030 |
Fidelity Large Cap Stock Fund (b) | 19,354 | | 536,114 |
Fidelity Series 100 Index Fund (b) | 36,812 | | 468,251 |
Fidelity Series Broad Market Opportunities Fund (b) | 52,860 | | 811,929 |
Fidelity Series Small Cap Opportunities Fund (b) | 5,248 | | 68,015 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,547,966 |
International Equity Funds - 7.2% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 14,612 | | 583,182 |
TOTAL EQUITY FUNDS (Cost $3,335,729) |
4,131,148
|
Fixed-Income Funds - 34.7% |
| | | |
High Yield Fixed-Income Funds - 4.8% |
Fidelity Capital & Income Fund (b) | 19,247 | | 193,429 |
Fidelity Strategic Income Fund (b) | 17,479 | | 195,065 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 388,494 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 29.9% |
Fidelity Government Income Fund (b) | 46,490 | | $ 482,104 |
Fidelity Strategic Real Return Fund (b) | 49,839 | | 476,961 |
Fidelity Total Bond Fund (b) | 135,387 | | 1,445,928 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,404,993 |
TOTAL FIXED-INCOME FUNDS (Cost $2,784,081) |
2,793,487
|
Short-Term Funds - 14.0% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 565,193 | | 565,193 |
Fidelity Short-Term Bond Fund (b) | 65,688 | | 564,256 |
TOTAL SHORT-TERM FUNDS (Cost $1,127,421) |
1,129,449
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,247,231) | | 8,054,084 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (180) |
NET ASSETS - 100% | $ 8,053,904 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 370,337 | $ 340,783 | $ 167,453 | $ 5,992 | $ 583,182 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 300,718 | 329,546 | 144,453 | 397 | 490,780 |
Fidelity Blue Chip Growth Fund | 278,414 | 282,469 | 146,760 | 1,324 | 460,847 |
Fidelity Capital & Income Fund | 117,258 | 112,930 | 43,943 | 7,472 | 193,429 |
Fidelity Equity-Income Fund | 428,523 | 397,159 | 173,657 | 16,282 | 712,030 |
Fidelity Government Income Fund | 275,478 | 298,354 | 97,214 | 6,609 | 482,104 |
Fidelity Institutional Money Market Portfolio Institutional Class | 317,994 | 356,231 | 109,032 | 387 | 565,193 |
Fidelity Large Cap Stock Fund | 321,858 | 315,047 | 148,581 | 4,163 | 536,114 |
Fidelity Series 100 Index Fund | 277,791 | 252,829 | 115,905 | 6,883 | 468,251 |
Fidelity Series Broad Market Opportunities Fund | 492,658 | 448,352 | 226,834 | 2,811 | 811,929 |
Fidelity Series Small Cap Opportunities Fund | 42,934 | 47,286 | 20,030 | 13 | 68,015 |
Fidelity Short-Term Bond Fund | 318,164 | 354,459 | 109,577 | 4,215 | 564,256 |
Fidelity Strategic Income Fund | 117,167 | 118,197 | 43,400 | 6,328 | 195,065 |
Fidelity Strategic Real Return Fund | 275,483 | 297,857 | 106,806 | 8,326 | 476,961 |
Fidelity Total Bond Fund | 826,974 | 895,119 | 292,365 | 34,858 | 1,445,928 |
Total | $ 4,761,751 | $ 4,846,618 | $ 1,946,010 | $ 106,060 | $ 8,054,084 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,247,231) - See accompanying schedule | | $ 8,054,084 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 180 |
| | |
Net Assets | | $ 8,053,904 |
Net Assets consist of: | | |
Paid in capital | | $ 7,257,981 |
Undistributed net investment income | | 1,555 |
Accumulated undistributed net realized gain (loss) on investments | | (12,485) |
Net unrealized appreciation (depreciation) on investments | | 806,853 |
Net Assets | | $ 8,053,904 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($267,193 ÷ 4,710.74 shares) | | $ 56.72 |
| | |
Maximum offering price per share (100/94.25 of $56.72) | | $ 60.18 |
Class T:
Net Asset Value and redemption price per share ($36,500 ÷ 643.10 shares) | | $ 56.76 |
| | |
Maximum offering price per share (100/96.50 of $56.76) | | $ 58.82 |
| | |
Class C:
Net Asset Value and offering price per share ($121,610 ÷ 2,147.99 shares)A | | $ 56.62 |
| | |
Income Replacement 2032:
Net Asset Value, offering price and redemption price per share ($7,607,885 ÷ 134,109.65 shares) | | $ 56.73 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($20,716 ÷ 365.16 shares) | | $ 56.73 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 106,060 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,082 | |
Independent trustees' compensation | 25 | |
Total expenses before reductions | 2,107 | |
Expense reductions | (25) | 2,082 |
Net investment income (loss) | | 103,978 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (1,525) | |
Capital gain distributions from underlying funds | 132,838 | |
Total net realized gain (loss) | | 131,313 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 393,242 |
Net gain (loss) | | 524,555 |
Net increase (decrease) in net assets resulting from operations | | $ 628,533 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 103,978 | $ 82,284 |
Net realized gain (loss) | 131,313 | 150,587 |
Change in net unrealized appreciation (depreciation) | 393,242 | 298,362 |
Net increase (decrease) in net assets resulting from operations | 628,533 | 531,233 |
Distributions to shareholders from net investment income | (103,188) | (81,963) |
Distributions to shareholders from net realized gain | (75,104) | (32,634) |
Total distributions | (178,292) | (114,597) |
Share transactions - net increase (decrease) | 2,842,028 | 1,045,148 |
Total increase (decrease) in net assets | 3,292,269 | 1,461,784 |
| | |
Net Assets | | |
Beginning of period | 4,761,635 | 3,299,851 |
End of period (including undistributed net investment income of $1,555 and undistributed net investment income of $764, respectively) | $ 8,053,904 | $ 4,761,635 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.04 | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .718 | .906 | .717 | .796 | .727 |
Net realized and unrealized gain (loss) | 4.379 | 5.480 | .618 | 5.086 | 4.154 |
Total from investment operations | 5.097 | 6.386 | 1.335 | 5.882 | 4.881 |
Distributions from net investment income | (.704) | (.852) | (.770) | (.812) | (.796) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.417) | (1.256) | (2.495) | (1.002) | (.901) |
Net asset value, end of period | $ 56.72 | $ 53.04 | $ 47.91 | $ 49.07 | $ 44.19 |
Total ReturnA, B | 9.76% | 13.55% | 2.85% | 13.38% | 12.19% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .37% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.30% | 1.80% | 1.51% | 1.66% | 1.67% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 267 | $ 229 | $ 217 | $ 214 | $ 200 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.08 | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .581 | .781 | .599 | .676 | .620 |
Net realized and unrealized gain (loss) | 4.386 | 5.484 | .599 | 5.107 | 4.147 |
Total from investment operations | 4.967 | 6.265 | 1.198 | 5.783 | 4.767 |
Distributions from net investment income | (.574) | (.721) | (.633) | (.693) | (.682) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.287) | (1.125) | (2.358) | (.883) | (.787) |
Net asset value, end of period | $ 56.76 | $ 53.08 | $ 47.94 | $ 49.10 | $ 44.20 |
Total ReturnA, B | 9.50% | 13.27% | 2.55% | 13.14% | 11.90% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .62% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.05% | 1.55% | 1.26% | 1.41% | 1.43% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 36 | $ 27 | $ 24 | $ 27 | $ 35 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.99 | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .305 | .529 | .358 | .434 | .403 |
Net realized and unrealized gain (loss) | 4.382 | 5.469 | .615 | 5.102 | 4.143 |
Total from investment operations | 4.687 | 5.998 | .973 | 5.536 | 4.546 |
Distributions from net investment income | (.344) | (.534) | (.438) | (.446) | (.451) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.057) | (.938) | (2.163) | (.636) | (.556) |
Net asset value, end of period | $ 56.62 | $ 52.99 | $ 47.93 | $ 49.12 | $ 44.22 |
Total ReturnA, B | 8.96% | 12.68% | 2.07% | 12.55% | 11.33% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.12% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .55% | 1.05% | .76% | .91% | .93% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 122 | $ 69 | $ 52 | $ 22 | $ 29 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2032
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | 1.033 | .836 | .918 | .832 |
Net realized and unrealized gain (loss) | 4.380 | 5.479 | .618 | 5.095 | 4.147 |
Total from investment operations | 5.236 | 6.512 | 1.454 | 6.013 | 4.979 |
Distributions from net investment income | (.843) | (.978) | (.889) | (.933) | (.904) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.556) | (1.382) | (2.614) | (1.123) | (1.009) |
Net asset value, end of period | $ 56.73 | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 |
Total ReturnA | 10.04% | 13.83% | 3.10% | 13.68% | 12.44% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions | .00% D | .00% D | .12% | .00% D | .00% D |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.05% | 1.76% | 1.91% | 1.92% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,608 | $ 4,418 | $ 2,991 | $ 1,297 | $ 1,391 |
Portfolio turnover rate C | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | 1.032 | .835 | .904 | .834 |
Net realized and unrealized gain (loss) | 4.380 | 5.480 | .619 | 5.109 | 4.145 |
Total from investment operations | 5.236 | 6.512 | 1.454 | 6.013 | 4.979 |
Distributions from net investment income | (.843) | (.978) | (.889) | (.933) | (.904) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.556) | (1.382) | (2.614) | (1.123) | (1.009) |
Net asset value, end of period | $ 56.73 | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 |
Total ReturnA | 10.04% | 13.83% | 3.10% | 13.68% | 12.44% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions | .00% D | .00% D | .12% | .00% D | .00% D |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.05% | 1.76% | 1.91% | 1.92% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21 | $ 19 | $ 17 | $ 19 | $ 61 |
Portfolio turnover rate C | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.2 | 6.2 |
Fidelity Blue Chip Growth Fund | 5.9 | 5.9 |
Fidelity Equity-Income Fund | 9.0 | 9.0 |
Fidelity Large Cap Stock Fund | 6.8 | 6.7 |
Fidelity Series 100 Index Fund | 5.9 | 5.8 |
Fidelity Series Broad Market Opportunities Fund | 10.3 | 10.4 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.0 | 44.9 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 8.0 | 8.1 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.5 | 2.6 |
Fidelity Strategic Income Fund | 2.6 | 2.6 |
| 5.1 | 5.2 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.7 | 5.8 |
Fidelity Strategic Real Return Fund | 5.7 | 5.7 |
Fidelity Total Bond Fund | 17.3 | 17.3 |
| 28.7 | 28.8 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 6.6 | 6.5 |
Fidelity Short-Term Bond Fund | 6.6 | 6.5 |
| 13.2 | 13.0 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 45.0% | |
| International Equity Funds | 8.0% | |
| High Yield Fixed-Income Funds | 5.1% | |
| Investment Grade Fixed-Income Funds | 28.7% | |
| Short-Term Funds | 13.2% | |
Six months ago |
| Domestic Equity Funds | 44.9% | |
| International Equity Funds | 8.1% | |
| High Yield Fixed-Income Funds | 5.2% | |
| Investment Grade Fixed-Income Funds | 28.8% | |
| Short-Term Funds | 13.0% | |
Expected |
| Domestic Equity Funds | 45.1% | |
| International Equity Funds | 8.0% | |
| High Yield Fixed-Income Funds | 5.0% | |
| Investment Grade Fixed-Income Funds | 28.5% | |
| Short-Term Funds | 13.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2034 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 53.0% |
| Shares | | Value |
Domestic Equity Funds - 45.0% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 25,835 | | $ 547,182 |
Fidelity Blue Chip Growth Fund (b) | 7,713 | | 514,535 |
Fidelity Equity-Income Fund (b) | 12,968 | | 794,671 |
Fidelity Large Cap Stock Fund (b) | 21,615 | | 598,743 |
Fidelity Series 100 Index Fund (b) | 41,109 | | 522,911 |
Fidelity Series Broad Market Opportunities Fund (b) | 59,004 | | 906,306 |
Fidelity Series Small Cap Opportunities Fund (b) | 5,868 | | 76,048 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,960,396 |
International Equity Funds - 8.0% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 17,667 | | 705,091 |
TOTAL EQUITY FUNDS (Cost $3,863,186) |
4,665,487
|
Fixed-Income Funds - 33.8% |
| | | |
High Yield Fixed-Income Funds - 5.1% |
Fidelity Capital & Income Fund (b) | 22,108 | | 222,186 |
Fidelity Strategic Income Fund (b) | 20,079 | | 224,086 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 446,272 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 28.7% |
Fidelity Government Income Fund (b) | 48,876 | | $ 506,842 |
Fidelity Strategic Real Return Fund (b) | 52,392 | | 501,394 |
Fidelity Total Bond Fund (b) | 142,333 | | 1,520,120 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,528,356 |
TOTAL FIXED-INCOME FUNDS (Cost $2,912,731) |
2,974,628
|
Short-Term Funds - 13.2% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 583,337 | | 583,337 |
Fidelity Short-Term Bond Fund (b) | 67,797 | | 582,375 |
TOTAL SHORT-TERM FUNDS (Cost $1,161,394) |
1,165,712
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,937,311) | | 8,805,827 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (103) |
NET ASSETS - 100% | $ 8,805,724 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 358,688 | $ 431,974 | $ 119,724 | $ 5,465 | $ 705,091 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 269,698 | 372,819 | 98,639 | 341 | 547,182 |
Fidelity Blue Chip Growth Fund | 249,635 | 324,268 | 103,112 | 1,092 | 514,535 |
Fidelity Capital & Income Fund | 108,224 | 136,629 | 28,739 | 7,195 | 222,186 |
Fidelity Equity-Income Fund | 384,259 | 471,308 | 114,578 | 15,213 | 794,671 |
Fidelity Government Income Fund | 234,485 | 320,837 | 53,348 | 5,886 | 506,842 |
Fidelity Institutional Money Market Portfolio Institutional Class | 261,036 | 377,586 | 55,285 | 336 | 583,337 |
Fidelity Large Cap Stock Fund | 288,297 | 369,874 | 99,610 | 3,836 | 598,743 |
Fidelity Series 100 Index Fund | 249,076 | 299,242 | 74,018 | 5,836 | 522,911 |
Fidelity Series Broad Market Opportunities Fund | 441,539 | 534,083 | 155,806 | 2,411 | 906,306 |
Fidelity Series Small Cap Opportunities Fund | 38,625 | 54,011 | 14,263 | 11 | 76,048 |
Fidelity Short-Term Bond Fund | 261,172 | 380,100 | 59,599 | 3,679 | 582,375 |
Fidelity Strategic Income Fund | 108,142 | 141,281 | 28,234 | 6,117 | 224,086 |
Fidelity Strategic Real Return Fund | 234,491 | 321,662 | 63,818 | 7,522 | 501,394 |
Fidelity Total Bond Fund | 703,473 | 964,966 | 162,992 | 30,824 | 1,520,120 |
Total | $ 4,190,840 | $ 5,500,640 | $ 1,231,765 | $ 95,764 | $ 8,805,827 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,937,311) - See accompanying schedule | | $ 8,805,827 |
Cash | | 1 |
Total assets | | 8,805,828 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 104 |
| | |
Net Assets | | $ 8,805,724 |
Net Assets consist of: | | |
Paid in capital | | $ 7,903,283 |
Undistributed net investment income | | 1,699 |
Accumulated undistributed net realized gain (loss) on investments | | 32,226 |
Net unrealized appreciation (depreciation) on investments | | 868,516 |
Net Assets | | $ 8,805,724 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($125,701 ÷ 2,100.36 shares) | | $ 59.85 |
| | |
Maximum offering price per share (100/94.25 of $59.85) | | $ 63.50 |
Class T:
Net Asset Value and redemption price per share ($96,487 ÷ 1,612.10 shares) | | $ 59.85 |
| | |
Maximum offering price per share (100/96.50 of $59.85) | | $ 62.02 |
| | |
Class C:
Net Asset Value and offering price per share ($53,538 ÷ 896.25 shares)A | | $ 59.74 |
| | |
Income Replacement 2034:
Net Asset Value, offering price and redemption price per share ($8,313,273 ÷ 138,960.56 shares) | | $ 59.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($216,725 ÷ 3,622.35 shares) | | $ 59.83 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 95,764 |
| | |
Expenses | | |
Distribution and service plan fees | $ 1,241 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 1,264 | |
Expense reductions | (23) | 1,241 |
Net investment income (loss) | | 94,523 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 103 | |
Capital gain distributions from underlying funds | 115,763 | |
Total net realized gain (loss) | | 115,866 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 345,996 |
Net gain (loss) | | 461,862 |
Net increase (decrease) in net assets resulting from operations | | $ 556,385 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 94,523 | $ 56,289 |
Net realized gain (loss) | 115,866 | 94,056 |
Change in net unrealized appreciation (depreciation) | 345,996 | 236,800 |
Net increase (decrease) in net assets resulting from operations | 556,385 | 387,145 |
Distributions to shareholders from net investment income | (93,540) | (55,933) |
Distributions to shareholders from net realized gain | (34,674) | (10,194) |
Total distributions | (128,214) | (66,127) |
Share transactions - net increase (decrease) | 4,186,789 | 1,540,337 |
Total increase (decrease) in net assets | 4,614,960 | 1,861,355 |
| | |
Net Assets | | |
Beginning of period | 4,190,764 | 2,329,409 |
End of period (including undistributed net investment income of $1,699 and undistributed net investment income of $716, respectively) | $ 8,805,724 | $ 4,190,764 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.44 | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .741 | .840 | .782 | .799 | .753 |
Net realized and unrealized gain (loss) | 4.748 | 6.014 | .504 | 5.233 | 4.174 |
Total from investment operations | 5.489 | 6.854 | 1.286 | 6.032 | 4.927 |
Distributions from net investment income | (.723) | (.903) | (.775) | (.772) | (.758) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.079) | (1.114) | (.916) | (.972) | (.947) |
Net asset value, end of period | $ 59.85 | $ 55.44 | $ 49.70 | $ 49.33 | $ 44.27 |
Total ReturnA, B | 9.97% | 13.98% | 2.71% | 13.69% | 12.29% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.60% | 1.63% | 1.66% | 1.73% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 126 | $ 20 | $ 18 | $ 20 | $ 27 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.44 | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .592 | .719 | .662 | .681 | .645 |
Net realized and unrealized gain (loss) | 4.742 | 6.008 | .490 | 5.247 | 4.175 |
Total from investment operations | 5.334 | 6.727 | 1.152 | 5.928 | 4.820 |
Distributions from net investment income | (.568) | (.776) | (.651) | (.658) | (.651) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (.924) | (.987) | (.792) | (.858) | (.840) |
Net asset value, end of period | $ 59.85 | $ 55.44 | $ 49.70 | $ 49.34 | $ 44.27 |
Total ReturnA, B | 9.68% | 13.71% | 2.42% | 13.45% | 12.01% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.35% | 1.38% | 1.42% | 1.48% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 96 | $ 88 | $ 23 | $ 27 | $ 35 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.39 | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .300 | .448 | .424 | .439 | .426 |
Net realized and unrealized gain (loss) | 4.746 | 6.020 | .490 | 5.239 | 4.185 |
Total from investment operations | 5.046 | 6.468 | .914 | 5.678 | 4.611 |
Distributions from net investment income | (.340) | (.567) | (.443) | (.408) | (.422) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (.696) | (.778) | (.584) | (.608) | (.611) |
Net asset value, end of period | $ 59.74 | $ 55.39 | $ 49.70 | $ 49.37 | $ 44.30 |
Total ReturnA, B | 9.15% | 13.15% | 1.92% | 12.85% | 11.47% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .86% | .89% | .91% | .98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 54 | $ 49 | $ 43 | $ 20 | $ 27 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2034
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.41 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .885 | .975 | .903 | .921 | .862 |
Net realized and unrealized gain (loss) | 4.738 | 6.009 | .505 | 5.227 | 4.183 |
Total from investment operations | 5.623 | 6.984 | 1.408 | 6.148 | 5.045 |
Distributions from net investment income | (.857) | (1.033) | (.907) | (.898) | (.876) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.213) | (1.244) | (1.048) | (1.098) | (1.065) |
Net asset value, end of period | $ 59.82 | $ 55.41 | $ 49.67 | $ 49.31 | $ 44.26 |
Total ReturnA | 10.23% | 14.27% | 2.97% | 13.97% | 12.59% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.85% | 1.89% | 1.92% | 1.98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,313 | $ 3,894 | $ 2,123 | $ 2,066 | $ 1,672 |
Portfolio turnover rate C | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.42 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .884 | .972 | .904 | .922 | .860 |
Net realized and unrealized gain (loss) | 4.739 | 6.022 | .504 | 5.226 | 4.185 |
Total from investment operations | 5.623 | 6.994 | 1.408 | 6.148 | 5.045 |
Distributions from net investment income | (.857) | (1.033) | (.907) | (.898) | (.876) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.213) | (1.244) | (1.048) | (1.098) | (1.065) |
Net asset value, end of period | $ 59.83 | $ 55.42 | $ 49.67 | $ 49.31 | $ 44.26 |
Total ReturnA | 10.23% | 14.29% | 2.97% | 13.97% | 12.59% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.85% | 1.89% | 1.92% | 1.98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 217 | $ 139 | $ 122 | $ 107 | $ 94 |
Portfolio turnover rate C | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2036 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.3 | 6.4 |
Fidelity Blue Chip Growth Fund | 6.0 | 6.0 |
Fidelity Equity-Income Fund | 9.2 | 9.1 |
Fidelity Large Cap Stock Fund | 6.9 | 6.8 |
Fidelity Series 100 Index Fund | 6.0 | 5.9 |
Fidelity Series Broad Market Opportunities Fund | 10.5 | 10.6 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.8 | 45.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 8.8 | 8.9 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.6 | 2.7 |
Fidelity Strategic Income Fund | 2.7 | 2.7 |
| 5.3 | 5.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.7 | 5.7 |
Fidelity Strategic Real Return Fund | 5.6 | 5.7 |
Fidelity Total Bond Fund | 16.9 | 17.0 |
| 28.2 | 28.4 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 6.0 | 5.8 |
Fidelity Short-Term Bond Fund | 5.9 | 5.8 |
| 11.9 | 11.6 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 45.8% | |
| International Equity Funds | 8.8% | |
| High Yield Fixed-Income Funds | 5.3% | |
| Investment Grade Fixed-Income Funds | 28.2% | |
| Short-Term Funds | 11.9% | |
Six months ago |
| Domestic Equity Funds | 45.7% | |
| International Equity Funds | 8.9% | |
| High Yield Fixed-Income Funds | 5.4% | |
| Investment Grade Fixed-Income Funds | 28.4% | |
| Short-Term Funds | 11.6% | |
Expected |
| Domestic Equity Funds | 46.0% | |
| International Equity Funds | 8.7% | |
| High Yield Fixed-Income Funds | 5.2% | |
| Investment Grade Fixed-Income Funds | 27.9% | |
| Short-Term Funds | 12.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2036 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 54.6% |
| Shares | | Value |
Domestic Equity Funds - 45.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 21,795 | | $ 461,619 |
Fidelity Blue Chip Growth Fund (b) | 6,495 | | 433,268 |
Fidelity Equity-Income Fund (b) | 10,927 | | 669,628 |
Fidelity Large Cap Stock Fund (b) | 18,214 | | 504,538 |
Fidelity Series 100 Index Fund (b) | 34,620 | | 440,371 |
Fidelity Series Broad Market Opportunities Fund (b) | 49,745 | | 764,088 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,964 | | 64,339 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,337,851 |
International Equity Funds - 8.8% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 16,060 | | 640,937 |
TOTAL EQUITY FUNDS (Cost $3,307,815) |
3,978,788
|
Fixed-Income Funds - 33.5% |
| | | |
High Yield Fixed-Income Funds - 5.3% |
Fidelity Capital & Income Fund (b) | 19,179 | | 192,744 |
Fidelity Strategic Income Fund (b) | 17,419 | | 194,393 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 387,137 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 28.2% |
Fidelity Government Income Fund (b) | 39,687 | | $ 411,552 |
Fidelity Strategic Real Return Fund (b) | 42,541 | | 407,116 |
Fidelity Total Bond Fund (b) | 115,574 | | 1,234,333 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,053,001 |
TOTAL FIXED-INCOME FUNDS (Cost $2,447,640) |
2,440,138
|
Short-Term Funds - 11.9% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 434,802 | | 434,802 |
Fidelity Short-Term Bond Fund (b) | 50,533 | | 434,082 |
TOTAL SHORT-TERM FUNDS (Cost $868,083) |
868,884
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,623,538) | | 7,287,810 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (516) |
NET ASSETS - 100% | $ 7,287,294 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 429,351 | $ 324,563 | $ 152,413 | $ 6,198 | $ 640,937 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 299,915 | 272,832 | 114,281 | 356 | 461,619 |
Fidelity Blue Chip Growth Fund | 277,506 | 231,518 | 118,084 | 1,193 | 433,268 |
Fidelity Capital & Income Fund | 123,843 | 101,165 | 39,002 | 7,378 | 192,744 |
Fidelity Equity-Income Fund | 426,985 | 334,521 | 144,859 | 14,844 | 669,628 |
Fidelity Government Income Fund | 252,711 | 226,420 | 72,255 | 5,624 | 411,552 |
Fidelity Institutional Money Market Portfolio Institutional Class | 252,006 | 257,502 | 74,705 | 292 | 434,802 |
Fidelity Large Cap Stock Fund | 320,703 | 259,340 | 117,807 | 3,775 | 504,538 |
Fidelity Series 100 Index Fund | 276,886 | 208,743 | 92,852 | 6,234 | 440,371 |
Fidelity Series Broad Market Opportunities Fund | 490,982 | 367,073 | 181,498 | 2,520 | 764,088 |
Fidelity Series Small Cap Opportunities Fund | 42,688 | 39,956 | 16,039 | 12 | 64,339 |
Fidelity Short-Term Bond Fund | 252,142 | 255,800 | 74,706 | 3,182 | 434,082 |
Fidelity Strategic Income Fund | 123,745 | 106,544 | 38,841 | 6,254 | 194,393 |
Fidelity Strategic Real Return Fund | 252,708 | 228,183 | 82,877 | 6,940 | 407,116 |
Fidelity Total Bond Fund | 760,002 | 682,193 | 221,589 | 29,656 | 1,234,333 |
Total | $ 4,582,173 | $ 3,896,353 | $ 1,541,808 | $ 94,458 | $ 7,287,810 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2036 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,623,538) - See accompanying schedule | | $ 7,287,810 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 516 |
| | |
Net Assets | | $ 7,287,294 |
Net Assets consist of: | | |
Paid in capital | | $ 6,649,514 |
Undistributed net investment income | | 1,300 |
Accumulated undistributed net realized gain (loss) on investments | | (27,792) |
Net unrealized appreciation (depreciation) on investments | | 664,272 |
Net Assets | | $ 7,287,294 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($181,161.83 ÷ 3,030.179 shares) | | $ 59.79 |
| | |
Maximum offering price per share (100/94.25 of $59.79) | | $ 63.44 |
Class T:
Net Asset Value and redemption price per share ($420,018.62 ÷ 7,029.306 shares) | | $ 59.75 |
| | |
Maximum offering price per share (100/96.50 of $59.75) | | $ 61.92 |
| | |
Class C:
Net Asset Value and offering price per share ($357,855.85 ÷ 6,006.299 shares)A | | $ 59.58 |
| | |
Income Replacement 2036:
Net Asset Value, offering price and redemption price per share ($6,327,492.62 ÷ 105,836.810 shares) | | $ 59.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($765.36 ÷ 12.792 shares) | | $ 59.83 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 94,458 |
| | |
Expenses | | |
Distribution and service plan fees | $ 5,685 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 5,708 | |
Expense reductions | (23) | 5,685 |
Net investment income (loss) | | 88,773 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (5,177) | |
Capital gain distributions from underlying funds | 119,956 | |
Total net realized gain (loss) | | 114,779 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 356,267 |
Net gain (loss) | | 471,046 |
Net increase (decrease) in net assets resulting from operations | | $ 559,819 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 88,773 | $ 71,025 |
Net realized gain (loss) | 114,779 | 89,547 |
Change in net unrealized appreciation (depreciation) | 356,267 | 345,367 |
Net increase (decrease) in net assets resulting from operations | 559,819 | 505,939 |
Distributions to shareholders from net investment income | (88,233) | (70,625) |
Distributions to shareholders from net realized gain | (17,586) | (12,770) |
Total distributions | (105,819) | (83,395) |
Share transactions - net increase (decrease) | 2,251,545 | 1,316,059 |
Total increase (decrease) in net assets | 2,705,545 | 1,738,603 |
| | |
Net Assets | | |
Beginning of period | 4,581,749 | 2,843,146 |
End of period (including undistributed net investment income of $1,300 and undistributed net investment income of $759, respectively) | $ 7,287,294 | $ 4,581,749 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.12 | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .751 | .939 | .760 | .811 | .748 |
Net realized and unrealized gain (loss) | 4.831 | 6.075 | .441 | 5.306 | 4.178 |
Total from investment operations | 5.582 | 7.014 | 1.201 | 6.117 | 4.926 |
Distributions from net investment income | (.734) | (.913) | (.784) | (.771) | (.752) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.912) | (1.094) | (.921) | (.927) | (.896) |
Net asset value, end of period | $ 59.79 | $ 55.12 | $ 49.20 | $ 48.92 | $ 43.73 |
Total ReturnA, B | 10.18% | 14.45% | 2.56% | 14.05% | 12.46% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.29% | 1.80% | 1.60% | 1.70% | 1.74% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 181 | $ 25 | $ 27 | $ 31 | $ 40 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.09 | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .601 | .809 | .641 | .693 | .639 |
Net realized and unrealized gain (loss) | 4.822 | 6.077 | .448 | 5.287 | 4.183 |
Total from investment operations | 5.423 | 6.886 | 1.089 | 5.980 | 4.822 |
Distributions from net investment income | (.585) | (.785) | (.672) | (.654) | (.648) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.763) | (.966) | (.809) | (.810) | (.792) |
Net asset value, end of period | $ 59.75 | $ 55.09 | $ 49.17 | $ 48.89 | $ 43.72 |
Total ReturnA, B | 9.89% | 14.18% | 2.32% | 13.73% | 12.19% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.04% | 1.55% | 1.35% | 1.45% | 1.49% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 420 | $ 295 | $ 278 | $ 288 | $ 265 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.98 | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .310 | .553 | .404 | .454 | .424 |
Net realized and unrealized gain (loss) | 4.816 | 6.061 | .445 | 5.293 | 4.179 |
Total from investment operations | 5.126 | 6.614 | .849 | 5.747 | 4.603 |
Distributions from net investment income | (.348) | (.593) | (.452) | (.451) | (.429) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.526) | (.774) | (.589) | (.607) | (.573) |
Net asset value, end of period | $ 59.58 | $ 54.98 | $ 49.14 | $ 48.88 | $ 43.74 |
Total ReturnA, B | 9.35% | 13.60% | 1.80% | 13.17% | 11.61% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .54% | 1.06% | .85% | .95% | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 358 | $ 357 | $ 174 | $ 216 | $ 119 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2036
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.11 | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .893 | 1.073 | .880 | .939 | .854 |
Net realized and unrealized gain (loss) | 4.833 | 6.070 | .445 | 5.291 | 4.183 |
Total from investment operations | 5.726 | 7.143 | 1.325 | 6.230 | 5.037 |
Distributions from net investment income | (.868) | (1.042) | (.908) | (.894) | (.863) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (1.046) | (1.223) | (1.045) | (1.050) | (1.007) |
Net asset value, end of period | $ 59.79 | $ 55.11 | $ 49.19 | $ 48.91 | $ 43.73 |
Total ReturnA | 10.46% | 14.74% | 2.82% | 14.32% | 12.75% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.54% | 2.05% | 1.85% | 1.95% | 1.99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,327 | $ 3,904 | $ 2,363 | $ 2,433 | $ 598 |
Portfolio turnover rate C | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.13 | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .869 | 1.108 | .873 | .929 | .851 |
Net realized and unrealized gain (loss) | 4.877 | 6.065 | .452 | 5.291 | 4.186 |
Total from investment operations | 5.746 | 7.173 | 1.325 | 6.220 | 5.037 |
Distributions from net investment income | (.868) | (1.042) | (.908) | (.894) | (.863) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (1.046) | (1.223) | (1.045) | (1.050) | (1.007) |
Net asset value, end of period | $ 59.83 | $ 55.13 | $ 49.18 | $ 48.90 | $ 43.73 |
Total ReturnA | 10.49% | 14.80% | 2.82% | 14.30% | 12.75% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.54% | 2.05% | 1.85% | 1.95% | 1.99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1 | $ 1 | $ 1 | $ 28 | $ 103 |
Portfolio turnover rate C | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2038 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.4 | 6.5 |
Fidelity Blue Chip Growth Fund | 6.1 | 6.1 |
Fidelity Equity-Income Fund | 9.4 | 9.3 |
Fidelity Large Cap Stock Fund | 7.0 | 6.9 |
Fidelity Series 100 Index Fund | 6.2 | 6.0 |
Fidelity Series Broad Market Opportunities Fund | 10.7 | 10.8 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.7 | 46.5 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 9.6 | 9.7 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.8 | 2.8 |
Fidelity Strategic Income Fund | 2.8 | 2.9 |
| 5.6 | 5.7 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.5 | 5.6 |
Fidelity Strategic Real Return Fund | 5.5 | 5.5 |
Fidelity Total Bond Fund | 16.6 | 16.6 |
| 27.6 | 27.7 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 5.3 | 5.2 |
Fidelity Short-Term Bond Fund | 5.2 | 5.2 |
| 10.5 | 10.4 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 46.7% | |
| International Equity Funds | 9.6% | |
| High Yield Fixed-Income Funds | 5.6% | |
| Investment Grade Fixed-Income Funds | 27.6% | |
| Short-Term Funds | 10.5% | |
Six months ago |
| Domestic Equity Funds | 46.5% | |
| International Equity Funds | 9.7% | |
| High Yield Fixed-Income Funds | 5.7% | |
| Investment Grade Fixed-Income Funds | 27.7% | |
| Short-Term Funds | 10.4% | |
Expected |
| Domestic Equity Funds | 46.9% | |
| International Equity Funds | 9.6% | |
| High Yield Fixed-Income Funds | 5.4% | |
| Investment Grade Fixed-Income Funds | 27.5% | |
| Short-Term Funds | 10.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2038 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 56.3% |
| Shares | | Value |
Domestic Equity Funds - 46.7% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 19,866 | | $ 420,758 |
Fidelity Blue Chip Growth Fund (b) | 5,927 | | 395,403 |
Fidelity Equity-Income Fund (b) | 9,972 | | 611,104 |
Fidelity Large Cap Stock Fund (b) | 16,603 | | 459,909 |
Fidelity Series 100 Index Fund (b) | 31,589 | | 401,816 |
Fidelity Series Broad Market Opportunities Fund (b) | 45,377 | | 696,988 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,498 | | 58,296 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,044,274 |
International Equity Funds - 9.6% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 15,721 | | 627,406 |
TOTAL EQUITY FUNDS (Cost $3,108,434) |
3,671,680
|
Fixed-Income Funds - 33.2% |
| | | |
High Yield Fixed-Income Funds - 5.6% |
Fidelity Capital & Income Fund (b) | 18,031 | | 181,213 |
Fidelity Strategic Income Fund (b) | 16,377 | | 182,767 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 363,980 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 27.6% |
Fidelity Government Income Fund (b) | 34,857 | | $ 361,466 |
Fidelity Strategic Real Return Fund (b) | 37,364 | | 357,572 |
Fidelity Total Bond Fund (b) | 101,510 | | 1,084,131 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 1,803,169 |
TOTAL FIXED-INCOME FUNDS (Cost $2,114,767) |
2,167,149
|
Short-Term Funds - 10.5% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 344,380 | | 344,380 |
Fidelity Short-Term Bond Fund (b) | 40,027 | | 343,829 |
TOTAL SHORT-TERM FUNDS (Cost $685,647) |
688,209
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,908,848) | | 6,527,038 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (209) |
NET ASSETS - 100% | $ 6,526,829 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 236,767 | $ 555,204 | $ 187,832 | $ 5,056 | $ 627,406 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 154,090 | 399,514 | 130,586 | 272 | 420,758 |
Fidelity Blue Chip Growth Fund | 142,546 | 351,367 | 129,415 | 758 | 395,403 |
Fidelity Capital & Income Fund | 65,481 | 158,177 | 47,048 | 5,610 | 181,213 |
Fidelity Equity-Income Fund | 219,578 | 516,061 | 161,434 | 11,427 | 611,104 |
Fidelity Government Income Fund | 123,795 | 317,815 | 83,481 | 4,029 | 361,466 |
Fidelity Institutional Money Market Portfolio Institutional Class | 113,294 | 309,797 | 78,712 | 190 | 344,380 |
Fidelity Large Cap Stock Fund | 164,807 | 403,581 | 135,879 | 2,964 | 459,909 |
Fidelity Series 100 Index Fund | 142,227 | 331,286 | 105,781 | 4,666 | 401,816 |
Fidelity Series Broad Market Opportunities Fund | 252,326 | 594,435 | 208,931 | 1,930 | 696,988 |
Fidelity Series Small Cap Opportunities Fund | 22,000 | 56,680 | 18,744 | 9 | 58,296 |
Fidelity Short-Term Bond Fund | 113,354 | 309,015 | 78,871 | 2,085 | 343,829 |
Fidelity Strategic Income Fund | 65,430 | 161,163 | 45,912 | 4,772 | 182,767 |
Fidelity Strategic Real Return Fund | 123,798 | 316,905 | 88,317 | 5,275 | 357,572 |
Fidelity Total Bond Fund | 372,304 | 951,903 | 250,399 | 21,031 | 1,084,131 |
Total | $ 2,311,797 | $ 5,732,903 | $ 1,751,342 | $ 70,074 | $ 6,527,038 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2038 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $5,908,848) - See accompanying schedule | | $ 6,527,038 |
Receivable for fund shares sold | | 40,500 |
Total assets | | 6,567,538 |
| | |
Liabilities | | |
Payable for investments purchased | $ 40,498 | |
Distribution and service plan fees payable | 211 | |
Total liabilities | | 40,709 |
| | |
Net Assets | | $ 6,526,829 |
Net Assets consist of: | | |
Paid in capital | | $ 5,880,451 |
Undistributed net investment income | | 1,151 |
Accumulated undistributed net realized gain (loss) on investments | | 27,037 |
Net unrealized appreciation (depreciation) on investments | | 618,190 |
Net Assets | | $ 6,526,829 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($177,524 ÷ 3,074.31 shares) | | $ 57.74 |
| | |
Maximum offering price per share (100/94.25 of $57.74) | | $ 61.26 |
Class T:
Net Asset Value and redemption price per share ($190,152 ÷ 3,293.29 shares) | | $ 57.74 |
| | |
Maximum offering price per share (100/96.50 of $57.74) | | $ 59.83 |
| | |
Class C:
Net Asset Value and offering price per share ($109,858 ÷ 1,908.73 shares)A | | $ 57.56 |
| | |
Income Replacement 2038:
Net Asset Value, offering price and redemption price per share ($6,016,811 ÷ 104,182.43 shares) | | $ 57.75 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($32,484 ÷ 562.49 shares) | | $ 57.75 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 70,074 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,185 | |
Independent trustees' compensation | 16 | |
Total expenses before reductions | 2,201 | |
Expense reductions | (16) | 2,185 |
Net investment income (loss) | | 67,889 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (14,725) | |
Capital gain distributions from underlying funds | 87,125 | |
Total net realized gain (loss) | | 72,400 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 248,398 |
Net gain (loss) | | 320,798 |
Net increase (decrease) in net assets resulting from operations | | $ 388,687 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 67,889 | $ 46,047 |
Net realized gain (loss) | 72,400 | 119,857 |
Change in net unrealized appreciation (depreciation) | 248,398 | 155,950 |
Net increase (decrease) in net assets resulting from operations | 388,687 | 321,854 |
Distributions to shareholders from net investment income | (67,101) | (45,956) |
Distributions to shareholders from net realized gain | (79,768) | (9,447) |
Total distributions | (146,869) | (55,403) |
Share transactions - net increase (decrease) | 3,973,364 | (46,535) |
Total increase (decrease) in net assets | 4,215,182 | 219,916 |
| | |
Net Assets | | |
Beginning of period | 2,311,647 | 2,091,731 |
End of period (including undistributed net investment income of $1,151 and undistributed net investment income of $363, respectively) | $ 6,526,829 | $ 2,311,647 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.44 | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .738 | .953 | .739 | .858 | .744 |
Net realized and unrealized gain (loss) | 4.763 | 6.186 | .384 | 5.317 | 4.191 |
Total from investment operations | 5.501 | 7.139 | 1.123 | 6.175 | 4.935 |
Distributions from net investment income | (.688) | (.909) | (.769) | (.802) | (.710) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.201) | (1.109) | (.903) | (.995) | (.875) |
Net asset value, end of period | $ 57.74 | $ 54.44 | $ 48.41 | $ 48.19 | $ 43.01 |
Total ReturnA, B | 10.39% | 14.95% | 2.44% | 14.43% | 12.72% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.31% | 1.85% | 1.59% | 1.82% | 1.76% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 178 | $ 121 | $ 76 | $ 34 | $ 32 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.44 | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .599 | .820 | .624 | .736 | .636 |
Net realized and unrealized gain (loss) | 4.761 | 6.201 | .367 | 5.326 | 4.191 |
Total from investment operations | 5.360 | 7.021 | .991 | 6.062 | 4.827 |
Distributions from net investment income | (.547) | (.781) | (.647) | (.689) | (.612) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.060) | (.981) | (.781) | (.882) | (.777) |
Net asset value, end of period | $ 57.74 | $ 54.44 | $ 48.40 | $ 48.19 | $ 43.01 |
Total ReturnA, B | 10.11% | 14.69% | 2.15% | 14.15% | 12.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.07% | 1.59% | 1.34% | 1.57% | 1.50% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 190 | $ 135 | $ 105 | $ 127 | $ 37 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.33 | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .315 | .561 | .390 | .505 | .424 |
Net realized and unrealized gain (loss) | 4.755 | 6.186 | .379 | 5.319 | 4.192 |
Total from investment operations | 5.070 | 6.747 | .769 | 5.824 | 4.616 |
Distributions from net investment income | (.327) | (.587) | (.435) | (.441) | (.421) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (1.840) | (.787) | (.569) | (.634) | (.586) |
Net asset value, end of period | $ 57.56 | $ 54.33 | $ 48.37 | $ 48.17 | $ 42.98 |
Total ReturnA, B | 9.57% | 14.10% | 1.67% | 13.59% | 11.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .56% | 1.09% | .84% | 1.08% | 1.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 110 | $ 84 | $ 74 | $ 72 | $ 91 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2038
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .881 | 1.076 | .857 | .969 | .849 |
Net realized and unrealized gain (loss) | 4.759 | 6.200 | .377 | 5.332 | 4.187 |
Total from investment operations | 5.640 | 7.276 | 1.234 | 6.301 | 5.036 |
Distributions from net investment income | (.827) | (1.036) | (.880) | (.918) | (.831) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.340) | (1.236) | (1.014) | (1.111) | (.996) |
Net asset value, end of period | $ 57.75 | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 |
Total ReturnA | 10.66% | 15.26% | 2.68% | 14.74% | 12.99% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.56% | 2.10% | 1.84% | 2.07% | 2.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,017 | $ 1,942 | $ 1,811 | $ 1,345 | $ 2,051 |
Portfolio turnover rate C | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .879 | 1.078 | .857 | .973 | .848 |
Net realized and unrealized gain (loss) | 4.761 | 6.198 | .377 | 5.328 | 4.188 |
Total from investment operations | 5.640 | 7.276 | 1.234 | 6.301 | 5.036 |
Distributions from net investment income | (.827) | (1.036) | (.880) | (.918) | (.831) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.340) | (1.236) | (1.014) | (1.111) | (.996) |
Net asset value, end of period | $ 57.75 | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 |
Total ReturnA | 10.66% | 15.26% | 2.68% | 14.74% | 12.99% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.56% | 2.10% | 1.84% | 2.07% | 2.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 32 | $ 29 | $ 25 | $ 29 | $ 38 |
Portfolio turnover rate C | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.6 | 6.6 |
Fidelity Blue Chip Growth Fund | 6.2 | 6.3 |
Fidelity Equity-Income Fund | 9.6 | 9.5 |
Fidelity Large Cap Stock Fund | 7.2 | 7.1 |
Fidelity Series 100 Index Fund | 6.3 | 6.2 |
Fidelity Series Broad Market Opportunities Fund | 10.9 | 11.0 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 47.7 | 47.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 10.5 | 10.6 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.9 | 3.0 |
Fidelity Strategic Income Fund | 2.9 | 3.0 |
| 5.8 | 6.0 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.4 | 5.5 |
Fidelity Strategic Real Return Fund | 5.4 | 5.4 |
Fidelity Total Bond Fund | 16.2 | 16.3 |
| 27.0 | 27.2 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 4.5 | 4.2 |
Fidelity Short-Term Bond Fund | 4.5 | 4.3 |
| 9.0 | 8.5 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.5% | |
| High Yield Fixed-Income Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 27.0% | |
| Short-Term Funds | 9.0% | |
Six months ago |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.6% | |
| High Yield Fixed-Income Funds | 6.0% | |
| Investment Grade Fixed-Income Funds | 27.2% | |
| Short-Term Funds | 8.5% | |
Expected |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.5% | |
| High Yield Fixed-Income Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 26.6% | |
| Short-Term Funds | 9.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2040 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 58.2% |
| Shares | | Value |
Domestic Equity Funds - 47.7% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 26,948 | | $ 570,769 |
Fidelity Blue Chip Growth Fund (b) | 8,040 | | 536,330 |
Fidelity Equity-Income Fund (b) | 13,511 | | 827,975 |
Fidelity Large Cap Stock Fund (b) | 22,519 | | 623,774 |
Fidelity Series 100 Index Fund (b) | 42,833 | | 544,835 |
Fidelity Series Broad Market Opportunities Fund (b) | 61,503 | | 944,688 |
Fidelity Series Small Cap Opportunities Fund (b) | 6,106 | | 79,140 |
TOTAL DOMESTIC EQUITY FUNDS | | 4,127,511 |
International Equity Funds - 10.5% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 22,847 | | 911,830 |
TOTAL EQUITY FUNDS (Cost $4,347,774) |
5,039,341
|
Fixed-Income Funds - 32.8% |
| | | |
High Yield Fixed-Income Funds - 5.8% |
Fidelity Capital & Income Fund (b) | 25,161 | | 252,865 |
Fidelity Strategic Income Fund (b) | 22,850 | | 255,004 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 507,869 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 27.0% |
Fidelity Government Income Fund (b) | 45,190 | | $ 468,618 |
Fidelity Strategic Real Return Fund (b) | 48,450 | | 463,668 |
Fidelity Total Bond Fund (b) | 131,518 | | 1,404,609 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,336,895 |
TOTAL FIXED-INCOME FUNDS (Cost $2,830,051) |
2,844,764
|
Short-Term Funds - 9.0% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 390,387 | | 390,387 |
Fidelity Short-Term Bond Fund (b) | 45,373 | | 389,755 |
TOTAL SHORT-TERM FUNDS (Cost $779,548) |
780,142
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,957,373) | | 8,664,247 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (390) |
NET ASSETS - 100% | $ 8,663,857 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 459,465 | $ 650,709 | $ 243,106 | $ 6,990 | $ 911,830 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 279,514 | 445,605 | 157,559 | 357 | 570,769 |
Fidelity Blue Chip Growth Fund | 259,016 | 391,018 | 159,510 | 1,160 | 536,330 |
Fidelity Capital & Income Fund | 122,327 | 182,125 | 58,611 | 8,218 | 252,865 |
Fidelity Equity-Income Fund | 398,541 | 576,228 | 203,013 | 15,625 | 827,975 |
Fidelity Government Income Fund | 216,334 | 345,782 | 98,137 | 5,484 | 468,618 |
Fidelity Institutional Money Market Portfolio Institutional Class | 160,455 | 306,618 | 76,686 | 218 | 390,387 |
Fidelity Large Cap Stock Fund | 299,339 | 445,336 | 162,411 | 4,025 | 623,774 |
Fidelity Series 100 Index Fund | 258,437 | 365,203 | 129,445 | 6,071 | 544,835 |
Fidelity Series Broad Market Opportunities Fund | 458,271 | 648,086 | 252,461 | 2,528 | 944,688 |
Fidelity Series Small Cap Opportunities Fund | 39,848 | 64,266 | 22,393 | 12 | 79,140 |
Fidelity Short-Term Bond Fund | 160,540 | 305,474 | 76,686 | 2,388 | 389,755 |
Fidelity Strategic Income Fund | 122,231 | 188,244 | 58,872 | 6,988 | 255,004 |
Fidelity Strategic Real Return Fund | 216,334 | 346,418 | 107,931 | 6,822 | 463,668 |
Fidelity Total Bond Fund | 650,627 | 1,038,097 | 298,609 | 28,707 | 1,404,609 |
Total | $ 4,101,279 | $ 6,299,209 | $ 2,105,430 | $ 95,593 | $ 8,664,247 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,957,373) - See accompanying schedule | | $ 8,664,247 |
Receivable for fund shares sold | | 25,000 |
Total assets | | 8,689,247 |
| | |
Liabilities | | |
Payable for investments purchased | $ 25,002 | |
Distribution and service plan fees payable | 388 | |
Total liabilities | | 25,390 |
| | |
Net Assets | | $ 8,663,857 |
Net Assets consist of: | | |
Paid in capital | | $ 7,921,152 |
Undistributed net investment income | | 1,543 |
Accumulated undistributed net realized gain (loss) on investments | | 34,288 |
Net unrealized appreciation (depreciation) on investments | | 706,874 |
Net Assets | | $ 8,663,857 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($108,893 ÷ 1,843.14 shares) | | $ 59.08 |
| | |
Maximum offering price per share (100/94.25 of $59.08) | | $ 62.68 |
Class T:
Net Asset Value and redemption price per share ($450,718 ÷ 7,620.11 shares) | | $ 59.15 |
| | |
Maximum offering price per share (100/96.50 of $59.15) | | $ 61.30 |
| | |
Class C:
Net Asset Value and offering price per share ($205,224 ÷ 3,488.73 shares)A | | $ 58.82 |
| | |
Income Replacement 2040:
Net Asset Value, offering price and redemption price per share ($7,881,689 ÷ 133,497.80 shares) | | $ 59.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($17,333 ÷ 293.57 shares) | | $ 59.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 95,593 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,553 | |
Independent trustees' compensation | 22 | |
Total expenses before reductions | 2,575 | |
Expense reductions | (22) | 2,553 |
Net investment income (loss) | | 93,040 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (950) | |
Capital gain distributions from underlying funds | 121,843 | |
Total net realized gain (loss) | | 120,893 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 370,134 |
Net gain (loss) | | 491,027 |
Net increase (decrease) in net assets resulting from operations | | $ 584,067 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 93,040 | $ 61,641 |
Net realized gain (loss) | 120,893 | 103,462 |
Change in net unrealized appreciation (depreciation) | 370,134 | 281,207 |
Net increase (decrease) in net assets resulting from operations | 584,067 | 446,310 |
Distributions to shareholders from net investment income | (92,218) | (61,371) |
Distributions to shareholders from net realized gain | (72,509) | (14,161) |
Total distributions | (164,727) | (75,532) |
Share transactions - net increase (decrease) | 4,143,369 | 1,101,109 |
Total increase (decrease) in net assets | 4,562,709 | 1,471,887 |
| | |
Net Assets | | |
Beginning of period | 4,101,148 | 2,629,261 |
End of period (including undistributed net investment income of $1,543 and undistributed net investment income of $721, respectively) | $ 8,663,857 | $ 4,101,148 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.91 | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .742 | .927 | .762 | .789 | .722 |
Net realized and unrealized gain (loss) | 5.022 | 6.538 | .331 | 5.608 | 4.298 |
Total from investment operations | 5.764 | 7.465 | 1.093 | 6.397 | 5.020 |
Distributions from net investment income | (.712) | (.933) | (.771) | (.805) | (.710) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.594) | (1.185) | (.903) | (.997) | (.810) |
Net asset value, end of period | $ 59.08 | $ 54.91 | $ 48.63 | $ 48.44 | $ 43.04 |
Total ReturnA, B | 10.68% | 15.58% | 2.36% | 14.94% | 12.97% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .24% F | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .24% F | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .24% F | .25% | .25% | .25% |
Net investment income (loss) | 1.28% | 1.79% | 1.64% | 1.67% | 1.70% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 109 | $ 10 | $ 7 | $ 96 | $ 34 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.00 | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .605 | .781 | .649 | .672 | .616 |
Net realized and unrealized gain (loss) | 5.021 | 6.563 | .312 | 5.604 | 4.301 |
Total from investment operations | 5.626 | 7.344 | .961 | 6.276 | 4.917 |
Distributions from net investment income | (.594) | (.702) | (.649) | (.704) | (.607) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.476) | (.954) | (.781) | (.896) | (.707) |
Net asset value, end of period | $ 59.15 | $ 55.00 | $ 48.61 | $ 48.43 | $ 43.05 |
Total ReturnA, B | 10.40% | 15.30% | 2.08% | 14.64% | 12.69% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .49% F | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% F | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .49% F | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.04% | 1.53% | 1.39% | 1.42% | 1.45% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 451 | $ 10 | $ 51 | $ 131 | $ 111 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.75 | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .304 | .532 | .415 | .435 | .402 |
Net realized and unrealized gain (loss) | 5.003 | 6.524 | .310 | 5.609 | 4.305 |
Total from investment operations | 5.307 | 7.056 | .725 | 6.044 | 4.707 |
Distributions from net investment income | (.355) | (.604) | (.463) | (.482) | (.397) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.237) | (.856) | (.595) | (.674) | (.497) |
Net asset value, end of period | $ 58.82 | $ 54.75 | $ 48.55 | $ 48.42 | $ 43.05 |
Total ReturnA, B | 9.84% | 14.71% | 1.57% | 14.08% | 12.13% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .53% | 1.03% | .89% | .93% | .95% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 205 | $ 154 | $ 107 | $ 79 | $ 99 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2040
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.87 | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .880 | 1.051 | .885 | .910 | .833 |
Net realized and unrealized gain (loss) | 5.027 | 6.531 | .317 | 5.602 | 4.297 |
Total from investment operations | 5.907 | 7.582 | 1.202 | 6.512 | 5.130 |
Distributions from net investment income | (.855) | (1.050) | (.900) | (.940) | (.820) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.737) | (1.302) | (1.032) | (1.132) | (.920) |
Net asset value, end of period | $ 59.04 | $ 54.87 | $ 48.59 | $ 48.42 | $ 43.04 |
Total ReturnA | 10.97% | 15.86% | 2.60% | 15.21% | 13.26% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductionsD | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 2.03% | 1.89% | 1.93% | 1.96% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,882 | $ 3,925 | $ 2,462 | $ 1,797 | $ 1,262 |
Portfolio turnover rate C | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.88 | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .887 | 1.040 | .865 | .906 | .828 |
Net realized and unrealized gain (loss) | 5.010 | 6.552 | .327 | 5.616 | 4.302 |
Total from investment operations | 5.897 | 7.592 | 1.192 | 6.522 | 5.130 |
Distributions from net investment income | (.855) | (1.050) | (.900) | (.940) | (.820) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.737) | (1.302) | (1.032) | (1.132) | (.920) |
Net asset value, end of period | $ 59.04 | $ 54.88 | $ 48.59 | $ 48.43 | $ 43.04 |
Total ReturnA | 10.95% | 15.88% | 2.58% | 15.24% | 13.26% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 2.03% | 1.89% | 1.93% | 1.96% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17 | $ 2 | $ 2 | $ 48 | $ 62 |
Portfolio turnover rate C | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2042 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.8 | 6.8 |
Fidelity Blue Chip Growth Fund | 6.3 | 6.4 |
Fidelity Equity-Income Fund | 9.8 | 9.8 |
Fidelity Large Cap Stock Fund | 7.4 | 7.3 |
Fidelity Series 100 Index Fund | 6.5 | 6.4 |
Fidelity Series Broad Market Opportunities Fund | 11.2 | 11.3 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 48.9 | 49.0 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 11.6 | 11.7 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 3.1 | 3.2 |
Fidelity Strategic Income Fund | 3.1 | 3.2 |
| 6.2 | 6.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.4 | 5.4 |
Fidelity Strategic Real Return Fund | 5.3 | 5.4 |
Fidelity Total Bond Fund | 16.0 | 16.2 |
| 26.7 | 27.0 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 3.3 | 2.9 |
Fidelity Short-Term Bond Fund | 3.3 | 3.0 |
| 6.6 | 5.9 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 48.9% | |
| International Equity Funds | 11.6% | |
| High Yield Fixed-Income Funds | 6.2% | |
| Investment Grade Fixed-Income Funds | 26.7% | |
| Short-Term Funds | 6.6% | |
Six months ago |
| Domestic Equity Funds | 49.0% | |
| International Equity Funds | 11.7% | |
| High Yield Fixed-Income Funds | 6.4% | |
| Investment Grade Fixed-Income Funds | 27.0% | |
| Short-Term Funds | 5.9% | |
Expected |
| Domestic Equity Funds | 49.0% | |
| International Equity Funds | 11.4% | |
| High Yield Fixed-Income Funds | 6.0% | |
| Investment Grade Fixed-Income Funds | 26.4% | |
| Short-Term Funds | 7.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2042 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 60.5% |
| Shares | | Value |
Domestic Equity Funds - 48.9% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 107,995 | | $ 2,287,329 |
Fidelity Blue Chip Growth Fund (b) | 32,226 | | 2,149,768 |
Fidelity Equity-Income Fund (b) | 54,179 | | 3,320,092 |
Fidelity Large Cap Stock Fund (b) | 90,333 | | 2,502,226 |
Fidelity Series 100 Index Fund (b) | 171,688 | | 2,183,876 |
Fidelity Series Broad Market Opportunities Fund (b) | 246,673 | | 3,788,904 |
Fidelity Series Small Cap Opportunities Fund (b) | 24,613 | | 318,990 |
TOTAL DOMESTIC EQUITY FUNDS | | 16,551,185 |
International Equity Funds - 11.6% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 97,857 | | 3,905,472 |
TOTAL EQUITY FUNDS (Cost $17,561,177) |
20,456,657
|
Fixed-Income Funds - 32.9% |
| | | |
High Yield Fixed-Income Funds - 6.2% |
Fidelity Capital & Income Fund (b) | 104,072 | | 1,045,928 |
Fidelity Strategic Income Fund (b) | 94,513 | | 1,054,767 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 2,100,695 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 26.7% |
Fidelity Government Income Fund (b) | 174,925 | | $ 1,813,971 |
Fidelity Strategic Real Return Fund (b) | 187,545 | | 1,794,805 |
Fidelity Total Bond Fund (b) | 508,777 | | 5,433,737 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 9,042,513 |
TOTAL FIXED-INCOME FUNDS (Cost $10,989,575) |
11,143,208
|
Short-Term Funds - 6.6% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,118,632 | | 1,118,632 |
Fidelity Short-Term Bond Fund (b) | 130,011 | | 1,116,794 |
TOTAL SHORT-TERM FUNDS (Cost $2,232,995) |
2,235,426
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $30,783,747) | | 33,835,291 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (612) |
NET ASSETS - 100% | $ 33,834,679 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 1,747,407 | $ 2,489,959 | $ 495,690 | $ 29,506 | $ 3,905,472 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 997,084 | 1,586,748 | 302,112 | 1,386 | 2,287,329 |
Fidelity Blue Chip Growth Fund | 923,125 | 1,380,913 | 327,567 | 4,338 | 2,149,768 |
Fidelity Capital & Income Fund | 450,899 | 683,962 | 116,549 | 33,218 | 1,045,928 |
Fidelity Equity-Income Fund | 1,419,415 | 2,090,323 | 408,224 | 62,267 | 3,320,092 |
Fidelity Government Income Fund | 742,543 | 1,223,502 | 169,314 | 20,743 | 1,813,971 |
Fidelity Institutional Money Market Portfolio Institutional Class | 373,043 | 820,665 | 75,076 | 585 | 1,118,632 |
Fidelity Large Cap Stock Fund | 1,067,175 | 1,589,244 | 312,271 | 15,727 | 2,502,226 |
Fidelity Series 100 Index Fund | 921,057 | 1,305,875 | 240,239 | 23,413 | 2,183,876 |
Fidelity Series Broad Market Opportunities Fund | 1,632,066 | 2,299,619 | 488,199 | 9,804 | 3,788,904 |
Fidelity Series Small Cap Opportunities Fund | 142,355 | 232,285 | 45,287 | 46 | 318,990 |
Fidelity Short-Term Bond Fund | 373,234 | 820,468 | 77,824 | 6,442 | 1,116,794 |
Fidelity Strategic Income Fund | 450,550 | 707,312 | 116,967 | 28,275 | 1,054,767 |
Fidelity Strategic Real Return Fund | 742,556 | 1,225,262 | 206,867 | 26,072 | 1,794,805 |
Fidelity Total Bond Fund | 2,230,384 | 3,676,591 | 527,183 | 108,366 | 5,433,737 |
Total | $ 14,212,893 | $ 22,132,728 | $ 3,909,369 | $ 370,188 | $ 33,835,291 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2042 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $30,783,747) - See accompanying schedule | | $ 33,835,291 |
Receivable for investments sold | | 16,307 |
Receivable for fund shares sold | | 25,000 |
Total assets | | 33,876,598 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 41,300 | |
Distribution and service plan fees payable | 619 | |
Total liabilities | | 41,919 |
| | |
Net Assets | | $ 33,834,679 |
Net Assets consist of: | | |
Paid in capital | | $ 30,568,723 |
Undistributed net investment income | | 5,782 |
Accumulated undistributed net realized gain (loss) on investments | | 208,630 |
Net unrealized appreciation (depreciation) on investments | | 3,051,544 |
Net Assets | | $ 33,834,679 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($565,331 ÷ 9,555.31 shares) | | $ 59.16 |
| | |
Maximum offering price per share (100/94.25 of $59.16) | | $ 62.77 |
Class T:
Net Asset Value and redemption price per share ($481,685 ÷ 8,139.57 shares) | | $ 59.18 |
| | |
Maximum offering price per share (100/96.50 of $59.18) | | $ 61.33 |
| | |
Class C:
Net Asset Value and offering price per share ($366,224 ÷ 6,206.72 shares)A | | $ 59.00 |
| | |
Income Replacement 2042:
Net Asset Value, offering price and redemption price per share ($32,312,500 ÷ 545,964.54 shares) | | $ 59.18 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($108,939 ÷ 1,840.79 shares) | | $ 59.18 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 370,188 |
| | |
Expenses | | |
Distribution and service plan fees | $ 4,843 | |
Independent trustees' compensation | 85 | |
Total expenses before reductions | 4,928 | |
Expense reductions | (85) | 4,843 |
Net investment income (loss) | | 365,345 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (28,795) | |
Capital gain distributions from underlying funds | 470,345 | |
Total net realized gain (loss) | | 441,550 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 1,427,819 |
Net gain (loss) | | 1,869,369 |
Net increase (decrease) in net assets resulting from operations | | $ 2,234,714 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 365,345 | $ 218,472 |
Net realized gain (loss) | 441,550 | 390,240 |
Change in net unrealized appreciation (depreciation) | 1,427,819 | 1,032,865 |
Net increase (decrease) in net assets resulting from operations | 2,234,714 | 1,641,577 |
Distributions to shareholders from net investment income | (361,966) | (217,103) |
Distributions to shareholders from net realized gain | (405,210) | (34,182) |
Total distributions | (767,176) | (251,285) |
Share transactions - net increase (decrease) | 18,154,401 | 5,481,063 |
Total increase (decrease) in net assets | 19,621,939 | 6,871,355 |
| | |
Net Assets | | |
Beginning of period | 14,212,740 | 7,341,385 |
End of period (including undistributed net investment income of $5,782 and undistributed net investment income of $2,401, respectively) | $ 33,834,679 | $ 14,212,740 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.32 | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .755 | .977 | .782 | .757 | .747 |
Net realized and unrealized gain (loss) | 5.194 | 6.833 | .281 | 5.719 | 4.285 |
Total from investment operations | 5.949 | 7.810 | 1.063 | 6.476 | 5.032 |
Distributions from net investment income | (.747) | (.973) | (.791) | (.801) | (.717) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.109) | (1.150) | (.923) | (.996) | (.822) |
Net asset value, end of period | $ 59.16 | $ 55.32 | $ 48.66 | $ 48.52 | $ 43.04 |
Total ReturnA, B | 11.01% | 16.28% | 2.30% | 15.12% | 13.00% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.30% | 1.86% | 1.66% | 1.61% | 1.77% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 565 | $ 70 | $ 20 | $ 23 | $ 29 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.33 | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .605 | .836 | .660 | .637 | .642 |
Net realized and unrealized gain (loss) | 5.216 | 6.839 | .287 | 5.727 | 4.281 |
Total from investment operations | 5.821 | 7.675 | .947 | 6.364 | 4.923 |
Distributions from net investment income | (.609) | (.838) | (.675) | (.679) | (.608) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (1.971) | (1.015) | (.807) | (.874) | (.713) |
Net asset value, end of period | $ 59.18 | $ 55.33 | $ 48.67 | $ 48.53 | $ 43.04 |
Total ReturnA, B | 10.77% | 15.98% | 2.05% | 14.85% | 12.71% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.05% | 1.61% | 1.42% | 1.35% | 1.52% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 482 | $ 153 | $ 132 | $ 29 | $ 37 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.21 | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .317 | .582 | .427 | .402 | .430 |
Net realized and unrealized gain (loss) | 5.194 | 6.821 | .290 | 5.719 | 4.275 |
Total from investment operations | 5.511 | 7.403 | .717 | 6.121 | 4.705 |
Distributions from net investment income | (.359) | (.656) | (.465) | (.456) | (.390) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (1.721) | (.833) | (.597) | (.651) | (.495) |
Net asset value, end of period | $ 59.00 | $ 55.21 | $ 48.64 | $ 48.52 | $ 43.05 |
Total ReturnA, B | 10.19% | 15.40% | 1.55% | 14.26% | 12.12% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .55% | 1.12% | .91% | .85% | 1.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 366 | $ 97 | $ 24 | $ 28 | $ 37 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2042
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.32 | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .896 | 1.099 | .897 | .880 | .857 |
Net realized and unrealized gain (loss) | 5.202 | 6.837 | .284 | 5.719 | 4.279 |
Total from investment operations | 6.098 | 7.936 | 1.181 | 6.599 | 5.136 |
Distributions from net investment income | (.876) | (1.089) | (.909) | (.924) | (.831) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.238) | (1.266) | (1.041) | (1.119) | (.936) |
Net asset value, end of period | $ 59.18 | $ 55.32 | $ 48.65 | $ 48.51 | $ 43.03 |
Total ReturnA | 11.30% | 16.57% | 2.56% | 15.42% | 13.27% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.11% | 1.91% | 1.86% | 2.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 32,313 | $ 13,862 | $ 7,139 | $ 5,524 | $ 3,395 |
Portfolio turnover rate C | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.31 | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .897 | 1.095 | .896 | .874 | .855 |
Net realized and unrealized gain (loss) | 5.211 | 6.841 | .275 | 5.725 | 4.281 |
Total from investment operations | 6.108 | 7.936 | 1.171 | 6.599 | 5.136 |
Distributions from net investment income | (.876) | (1.089) | (.909) | (.924) | (.831) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.238) | (1.266) | (1.041) | (1.119) | (.936) |
Net asset value, end of period | $ 59.18 | $ 55.31 | $ 48.64 | $ 48.51 | $ 43.03 |
Total ReturnA | 11.32% | 16.57% | 2.54% | 15.42% | 13.27% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.11% | 1.91% | 1.86% | 2.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 109 | $ 30 | $ 26 | $ 29 | $ 38 |
Portfolio turnover rate C | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended July 31, 2014
1. Organization.
Fidelity Income Replacement 2016 FundSM, Fidelity Income Replacement 2018 FundSM, Fidelity Income Replacement 2020 FundSM, Fidelity Income Replacement 2022 FundSM, Fidelity Income Replacement 2024 FundSM, Fidelity Income Replacement 2026 FundSM, Fidelity Income Replacement 2028 FundSM, Fidelity Income Replacement 2030 FundSM, Fidelity Income Replacement 2032 FundSM, Fidelity Income Replacement 2034 FundSM, Fidelity Income Replacement 2036 FundSM, Fidelity Income Replacement 2038 FundSM, Fidelity Income Replacement 2040 FundSM and Fidelity Income Replacement 2042 FundSM (the Funds) are funds of Fidelity Income Fund (the Trust). The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. The Funds invest primarily in a combination of other Fidelity equity, bond, and short-term funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR).
The Funds are designed for investors who seek to convert accumulated assets into regular payments over a defined period of time. The payment strategy for each Fund is designed to be implemented through a shareholder's voluntary participation in the Smart Payment Program. Participation in the Smart Payment Program will result in the gradual liquidation of the shareholder's entire investment in the Fund by its horizon date. Each Fund's name refers to the year of its horizon date.
Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund offer Class A, Class T, Class C, Income Replacement and Institutional Class shares. Fidelity Income Replacement 2016 Fund and Fidelity Income Replacement 2018 Fund offer Income Replacement shares. Fidelity Income Replacement 2016 Fund's (effective after the close of business on January 31, 2012) and Fidelity Income Replacement 2018 Fund's (effective after the close of business on May 30, 2014) Class A, Class T, Class C and Institutional Class shares are closed to new accounts and additional purchases, except for reinvestments. Each class has equal rights as to assets and voting privileges, except for matters affecting a single class.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists each of the Underlying Funds as an investment of the Fund but does not include the underlying holdings of each Underlying Fund. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with the Underlying Funds. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Underlying Funds' expenses through the impact of these expenses on each Underlying Fund's NAV. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2014, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized
appreciation | Gross unrealized
depreciation | Net unrealized
appreciation
(depreciation) on
securities and other
investments |
Fidelity Income Replacement 2016 Fund | $ 4,727,979 | $ 266,625 | $ - | $ 266,625 |
Fidelity Income Replacement 2018 Fund | 6,879,868 | 358,934 | (38,806) | 320,128 |
Fidelity Income Replacement 2020 Fund | 7,895,745 | 748,229 | (34,529) | 713,700 |
Fidelity Income Replacement 2022 Fund | 10,060,026 | 597,953 | (53,513) | 544,440 |
Fidelity Income Replacement 2024 Fund | 6,988,599 | 453,850 | (27,940) | 425,910 |
Fidelity Income Replacement 2026 Fund | 4,000,042 | 324,496 | (18,964) | 305,532 |
Fidelity Income Replacement 2028 Fund | 21,717,924 | 1,310,459 | (98,149) | 1,212,310 |
Fidelity Income Replacement 2030 Fund | 14,706,102 | 1,205,374 | (45,783) | 1,159,591 |
Fidelity Income Replacement 2032 Fund | 7,258,651 | 833,897 | (38,464) | 795,433 |
Fidelity Income Replacement 2034 Fund | 7,977,839 | 855,829 | (27,841) | 827,988 |
Fidelity Income Replacement 2036 Fund | 6,642,877 | 687,221 | (42,288) | 644,933 |
Fidelity Income Replacement 2038 Fund | 5,931,649 | 616,384 | (20,995) | 595,389 |
Fidelity Income Replacement 2040 Fund | 7,984,252 | 718,128 | (38,133) | 679,995 |
Fidelity Income Replacement 2042 Fund | 30,856,879 | 3,103,053 | (124,641) | 2,978,412 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed
ordinary income | Undistributed
long-term capital
gain | Capital loss
carryforward | Net unrealized
appreciation
(depreciation) |
Fidelity Income Replacement 2016 Fund | $ 490 | $ 83,012 | $ - | $ 266,625 |
Fidelity Income Replacement 2018 Fund | 1,164 | - | (330,516) | 320,128 |
Fidelity Income Replacement 2020 Fund | 6,355 | 61,768 | - | 713,700 |
Fidelity Income Replacement 2022 Fund | 7,205 | - | (408,076) | 544,440 |
Fidelity Income Replacement 2024 Fund | 2,870 | 49,065 | - | 425,910 |
Fidelity Income Replacement 2026 Fund | 821 | - | (105,055) | 305,532 |
Fidelity Income Replacement 2028 Fund | 4,387 | - | (178,957) | 1,212,310 |
Fidelity Income Replacement 2030 Fund | 3,020 | 94,764 | - | 1,159,591 |
Fidelity Income Replacement 2032 Fund | 1,555 | 35,363 | (36,427) | 795,433 |
Fidelity Income Replacement 2034 Fund | 1,698 | 72,754 | - | 827,988 |
Fidelity Income Replacement 2036 Fund | 1,300 | - | (8,454) | 644,933 |
Fidelity Income Replacement 2038 Fund | 1,151 | 49,838 | - | 595,389 |
Fidelity Income Replacement 2040 Fund | 1,543 | 66,773 | (5,605) | 679,995 |
Fidelity Income Replacement 2042 Fund | 5,782 | 281,761 | - | 2,978,412 |
Annual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2018 | 2019 | Total with expiration |
Fidelity Income Replacement 2018 Fund | $ (293,304) | $ (37,212) | $ (330,516) |
Fidelity Income Replacement 2022 Fund | (333,958) | (74,118) | (408,076) |
Fidelity Income Replacement 2026 Fund | (105,055) | - | (105,055) |
Fidelity Income Replacement 2028 Fund | - | (178,957) | (178,957) |
Fidelity Income Replacement 2032 Fund | (36,427) | - | (36,427) |
Fidelity Income Replacement 2036 Fund | (5,577) | (2,877) | (8,454) |
Fidelity Income Replacement 2040 Fund | - | (5,605) | (5,605) |
Due to large redemptions or subscriptions in a prior period, capital losses that will be available to offset future capital gains of Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2032 Fund and Fidelity Income Replacement 2040 Fund will be limited to approximately $28,019, $38,679, and $27,942 per year, respectively.
Due to large redemptions during November 2013, capital losses that will be available to offset future capital gains of Fidelity Income Replacement 2022 Fund will be limited to approximately $216,299 per year.
The tax character of distributions paid was as follows:
July 31, 2014 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2016 Fund | $ 46,510 | $ - | $ 46,510 |
Fidelity Income Replacement 2018 Fund | 87,147 | - | 87,147 |
Fidelity Income Replacement 2020 Fund | 112,536 | 37,741 | 150,277 |
Fidelity Income Replacement 2022 Fund | 130,346 | - | 130,346 |
Fidelity Income Replacement 2024 Fund | 88,925 | 17,150 | 106,075 |
Fidelity Income Replacement 2026 Fund | 59,690 | - | 59,690 |
Fidelity Income Replacement 2028 Fund | 205,399 | - | 205,399 |
Fidelity Income Replacement 2030 Fund | 203,588 | - | 203,588 |
Fidelity Income Replacement 2032 Fund | 122,360 | 55,932 | 178,292 |
Fidelity Income Replacement 2034 Fund | 109,903 | 18,311 | 128,214 |
Fidelity Income Replacement 2036 Fund | 105,819 | - | 105,819 |
Fidelity Income Replacement 2038 Fund | 80,309 | 66,560 | 146,869 |
Fidelity Income Replacement 2040 Fund | 110,838 | 53,889 | 164,727 |
Fidelity Income Replacement 2042 Fund | 433,304 | 333,872 | 767,176 |
July 31, 2013 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2016 Fund | $ 112,389 | $ - | $ 112,389 |
Fidelity Income Replacement 2018 Fund | 118,283 | - | 118,283 |
Fidelity Income Replacement 2020 Fund | 114,787 | - | 114,787 |
Fidelity Income Replacement 2022 Fund | 104,849 | - | 104,849 |
Fidelity Income Replacement 2024 Fund | 51,499 | - | 51,499 |
Fidelity Income Replacement 2026 Fund | 45,798 | - | 45,798 |
Fidelity Income Replacement 2028 Fund | 150,766 | - | 150,766 |
Fidelity Income Replacement 2030 Fund | 97,611 | - | 97,611 |
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
July 31, 2013 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2032 Fund | $ 98,149 | $ 16,448 | $ 114,597 |
Fidelity Income Replacement 2034 Fund | 66,127 | - | 66,127 |
Fidelity Income Replacement 2036 Fund | 83,395 | - | 83,395 |
Fidelity Income Replacement 2038 Fund | 55,403 | - | 55,403 |
Fidelity Income Replacement 2040 Fund | 72,475 | 3,057 | 75,532 |
Fidelity Income Replacement 2042 Fund | 251,285 | - | 251,285 |
3. Purchases and Redemptions of Underlying Fund Shares.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
Fidelity Income Replacement 2016 Fund | 1,743,054 | 3,161,790 |
Fidelity Income Replacement 2018 Fund | 4,889,836 | 3,609,165 |
Fidelity Income Replacement 2020 Fund | 4,144,185 | 1,830,333 |
Fidelity Income Replacement 2022 Fund | 7,437,374 | 2,080,096 |
Fidelity Income Replacement 2024 Fund | 5,915,742 | 1,615,627 |
Fidelity Income Replacement 2026 Fund | 2,907,301 | 927,461 |
Fidelity Income Replacement 2028 Fund | 16,532,712 | 2,223,652 |
Fidelity Income Replacement 2030 Fund | 12,543,717 | 3,188,735 |
Fidelity Income Replacement 2032 Fund | 4,846,618 | 1,946,010 |
Fidelity Income Replacement 2034 Fund | 5,500,640 | 1,231,765 |
Fidelity Income Replacement 2036 Fund | 3,896,353 | 1,541,808 |
Fidelity Income Replacement 2038 Fund | 5,732,903 | 1,751,342 |
Fidelity Income Replacement 2040 Fund | 6,299,209 | 2,105,430 |
Fidelity Income Replacement 2042 Fund | 22,132,728 | 3,909,369 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (the investment adviser), an affiliate of FMR, provides the Funds with investment management related services. The Funds do not pay any fees for these services. Under the management contract, the investment adviser pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, each Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of each Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Fidelity Income Replacement 2016 Fund | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 615 | $ 2 |
Class T | .25% | .25% | 644 | 2 |
Class C | .75% | .25% | 5,150 | 1 |
| | | $ 6,409 | $ 5 |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | -% | .25% | $ 2,073 | $ - |
Class T | .25% | .25% | 2,092 | 2 |
Class C | .75% | .25% | 5,639 | 1,927 |
| | | $ 9,804 | $ 1,929 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | -% | .25% | $ 1,918 | $ 405 |
Class T | .25% | .25% | 478 | 6 |
Class C | .75% | .25% | 4,539 | 925 |
| | | $ 6,935 | $ 1,336 |
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2022 Fund | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| | | | |
Class A | -% | .25% | $ 975 | $ 4 |
Class T | .25% | .25% | 32 | 4 |
Class C | .75% | .25% | 1,584 | 1,272 |
| | | $ 2,591 | $ 1,280 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | -% | .25% | $ 894 | $ 301 |
Class T | .25% | .25% | 960 | 246 |
Class C | .75% | .25% | 1,296 | 56 |
| | | $ 3,150 | $ 603 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | -% | .25% | $ 902 | $ - |
Class T | .25% | .25% | 470 | 36 |
Class C | .75% | .25% | 320 | 320 |
| | | $ 1,692 | $ 356 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | -% | .25% | $ 447 | $ - |
Class T | .25% | .25% | 1,676 | 2 |
Class C | .75% | .25% | 223 | - |
| | | $ 2,346 | $ 2 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | -% | .25% | $ 536 | $ 4 |
Class T | .25% | .25% | 82 | 38 |
Class C | .75% | .25% | 3,151 | 309 |
| | | $ 3,769 | $ 351 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | -% | .25% | $ 998 | $ 20 |
Class T | .25% | .25% | 164 | 140 |
Class C | .75% | .25% | 920 | 480 |
| | | $ 2,082 | $ 640 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | -% | .25% | $ 228 | $ 52 |
Class T | .25% | .25% | 465 | 140 |
Class C | .75% | .25% | 548 | 212 |
| | | $ 1,241 | $ 404 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | -% | .25% | $ 313 | $ 62 |
Class T | .25% | .25% | 1,760 | 34 |
Class C | .75% | .25% | 3,612 | 1,107 |
| | | $ 5,685 | $ 1,203 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | -% | .25% | $ 352 | $ 9 |
Class T | .25% | .25% | 780 | 30 |
Class C | .75% | .25% | 1,053 | 175 |
| | | $ 2,185 | $ 214 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | -% | .25% | $ 144 | $ 22 |
Class T | .25% | .25% | 676 | 34 |
Class C | .75% | .25% | 1,733 | 260 |
| | | $ 2,553 | $ 316 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | -% | .25% | $ 796 | $ 51 |
Class T | .25% | .25% | 2,064 | 154 |
Class C | .75% | .25% | 1,983 | 1,605 |
| | | $ 4,843 | $ 1,810 |
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of each Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Income Replacement 2018 Fund | |
Class A | $ 840 |
Class T | 38 |
Class C* | 229 |
| $ 1,107 |
Fidelity Income Replacement 2020 Fund | |
Class A | $ 2,022 |
| |
Fidelity Income Replacement 2022 Fund | |
Class A | $ 224 |
| |
Fidelity Income Replacement 2024 Fund | |
Class A | $ 417 |
Class C* | 14 |
| $ 431 |
Fidelity Income Replacement 2026 Fund | |
Class T | $ 7 |
| |
Fidelity Income Replacement 2028 Fund | |
Class A | $ 976 |
Class T | 299 |
| $ 1,275 |
Fidelity Income Replacement 2030 Fund | |
Class A | $ 695 |
| |
Fidelity Income Replacement 2032 Fund | |
Class T | $ 36 |
| |
Fidelity Income Replacement 2036 Fund | |
Class A | $ 1,150 |
Class T | 383 |
| $ 1,533 |
Fidelity Income Replacement 2038 Fund | |
Class A | $ 341 |
| |
Fidelity Income Replacement 2040 Fund | |
Class A | $ 263 |
| |
Fidelity Income Replacement 2042 Fund | |
Class A | $ 3,718 |
Class T | 191 |
Class C* | 436 |
| $ 4,345 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
5. Expense Reductions.
FMR voluntarily agreed to reimburse the Funds to the extent annual operating expenses exceeded distribution and service plan fees applicable to each class. Some expenses, for example interest expense, are excluded from this reimbursement.
Annual Report
5. Expense Reductions - continued
The following Funds were in reimbursement during the period:
| Reimbursement* |
Fidelity Income Replacement 2016 Fund | $ 23 |
Fidelity Income Replacement 2018 Fund | 25 |
Fidelity Income Replacement 2020 Fund | 27 |
Fidelity Income Replacement 2022 Fund | 28 |
Fidelity Income Replacement 2024 Fund | 19 |
Fidelity Income Replacement 2026 Fund | 13 |
Fidelity Income Replacement 2028 Fund | 43 |
Fidelity Income Replacement 2030 Fund | 42 |
Fidelity Income Replacement 2032 Fund | 25 |
Fidelity Income Replacement 2034 Fund | 23 |
Fidelity Income Replacement 2036 Fund | 23 |
Fidelity Income Replacement 2038 Fund | 16 |
Fidelity Income Replacement 2040 Fund | 22 |
Fidelity Income Replacement 2042 Fund | 85 |
* Represents total amount reimbursed to the Fund. Each class has received a pro-rata allocation of reimbursement.
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2016 Fund | | |
From net investment income | | |
Class A | $ 1,345 | $ 7,086 |
Class T | 402 | 1,130 |
Class C | 403 | 2,837 |
Income Replacement 2016 | 39,487 | 70,663 |
Institutional Class | 198 | 447 |
Total | $ 41,835 | $ 82,163 |
From net realized gain | | |
Class A | $ 158 | $ 3,311 |
Class T | 101 | 617 |
Class C | 411 | 3,251 |
Income Replacement 2016 | 3,986 | 22,904 |
Institutional Class | 19 | 143 |
Total | $ 4,675 | $ 30,226 |
Fidelity Income Replacement 2018 Fund | | |
From net investment income | | |
Class A | $ 9,032 | $ 9,944 |
Class T | 3,943 | 1,343 |
Class C | 1,972 | 2,932 |
Income Replacement 2018 | 56,430 | 64,536 |
Institutional Class | 6,175 | 7,319 |
Total | $ 77,552 | $ 86,074 |
From net realized gain | | |
Class A | $ 1,216 | $ 4,058 |
Class T | 709 | 695 |
Class C | 655 | 2,364 |
Income Replacement 2018 | 6,313 | 22,722 |
Institutional Class | 702 | 2,370 |
Total | $ 9,595 | $ 32,209 |
Annual Report
Notes to Financial Statements - continued
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2020 Fund | | |
From net investment income | | |
Class A | $ 9,552 | $ 5,982 |
Class T | 909 | 2,133 |
Class C | 2,089 | 2,522 |
Income Replacement 2020 | 86,108 | 78,702 |
Institutional Class | 991 | 242 |
Total | $ 99,649 | $ 89,581 |
From net realized gain | | |
Class A | $ 5,948 | $ 1,965 |
Class T | 736 | 907 |
Class C | 2,820 | 1,535 |
Income Replacement 2020 | 40,555 | 20,732 |
Institutional Class | 569 | 67 |
Total | $ 50,628 | $ 25,206 |
Fidelity Income Replacement 2022 Fund | | |
From net investment income | | |
Class A | $ 4,868 | $ 5,998 |
Class T | 68 | 12 |
Class C | 834 | 279 |
Income Replacement 2022 | 108,906 | 76,474 |
Institutional Class | 400 | 64 |
Total | $ 115,076 | $ 82,827 |
From net realized gain | | |
Class A | $ 934 | $ 1,895 |
Class T | 2 | 3 |
Class C | 122 | 142 |
Income Replacement 2022 | 14,203 | 19,965 |
Institutional Class | 9 | 17 |
Total | $ 15,270 | $ 22,022 |
Fidelity Income Replacement 2024 Fund | | |
From net investment income | | |
Class A | $ 4,411 | $ 4,019 |
Class T | 1,845 | 2,626 |
Class C | 661 | 1,172 |
Income Replacement 2024 | 70,240 | 33,777 |
Institutional Class | 419 | 506 |
Total | $ 77,576 | $ 42,100 |
From net realized gain | | |
Class A | $ 2,848 | $ 647 |
Class T | 1,149 | 748 |
Class C | 691 | 465 |
Income Replacement 2024 | 23,642 | 7,431 |
Institutional Class | 169 | 108 |
Total | $ 28,499 | $ 9,399 |
Fidelity Income Replacement 2026 Fund | | |
From net investment income | | |
Class A | $ 4,432 | $ 5,115 |
Class T | 908 | 1,165 |
Class C | 178 | 125 |
Income Replacement 2026 | 45,416 | 30,035 |
Institutional Class | 428 | 495 |
Total | $ 51,362 | $ 36,935 |
From net realized gain | | |
Class A | $ 658 | $ 1,333 |
Class T | 292 | 329 |
Class C | 79 | 41 |
Income Replacement 2026 | 7,228 | 7,049 |
Institutional Class | 71 | 111 |
Total | $ 8,328 | $ 8,863 |
Annual Report
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2028 Fund | | |
From net investment income | | |
Class A | $ 2,236 | $ 2,263 |
Class T | 3,326 | 2,225 |
Class C | 114 | 253 |
Income Replacement 2028 | 173,291 | 118,706 |
Institutional Class | 1,314 | 760 |
Total | $ 180,281 | $ 124,207 |
From net realized gain | | |
Class A | $ 233 | $ 602 |
Class T | 942 | 568 |
Class C | 46 | 107 |
Income Replacement 2028 | 23,651 | 25,172 |
Institutional Class | 246 | 110 |
Total | $ 25,118 | $ 26,559 |
Fidelity Income Replacement 2030 Fund | | |
From net investment income | | |
Class A | $ 2,621 | $ 1,705 |
Class T | 156 | 201 |
Class C | 1,770 | 3,279 |
Income Replacement 2030 | 168,554 | 74,151 |
Institutional Class | 1,213 | 671 |
Total | $ 174,314 | $ 80,007 |
From net realized gain | | |
Class A | $ 547 | $ 386 |
Class T | 44 | 60 |
Class C | 831 | 1,336 |
Income Replacement 2030 | 27,620 | 15,711 |
Institutional Class | 232 | 111 |
Total | $ 29,274 | $ 17,604 |
Fidelity Income Replacement 2032 Fund | | |
From net investment income | | |
Class A | $ 5,304 | $ 3,854 |
Class T | 352 | 358 |
Class C | 527 | 598 |
Income Replacement 2032 | 96,700 | 76,811 |
Institutional Class | 305 | 342 |
Total | $ 103,188 | $ 81,963 |
From net realized gain | | |
Class A | $ 3,737 | $ 1,834 |
Class T | 380 | 199 |
Class C | 928 | 440 |
Income Replacement 2032 | 69,805 | 30,021 |
Institutional Class | 254 | 140 |
Total | $ 75,104 | $ 32,634 |
Fidelity Income Replacement 2034 Fund | | |
From net investment income | | |
Class A | $ 1,278 | $ 326 |
Class T | 909 | 537 |
Class C | 325 | 519 |
Income Replacement 2034 | 88,166 | 51,986 |
Institutional Class | 2,862 | 2,565 |
Total | $ 93,540 | $ 55,933 |
From net realized gain | | |
Class A | $ 746 | $ 76 |
Class T | 566 | 99 |
Class C | 342 | 184 |
Income Replacement 2034 | 31,749 | 9,314 |
Institutional Class | 1,271 | 521 |
Total | $ 34,674 | $ 10,194 |
Annual Report
Notes to Financial Statements - continued
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2036 Fund | | |
From net investment income | | |
Class A | $ 1,749 | $ 426 |
Class T | 3,664 | 4,336 |
Class C | 2,175 | 2,240 |
Income Replacement 2036 | 80,634 | 63,610 |
Institutional Class | 11 | 13 |
Total | $ 88,233 | $ 70,625 |
From net realized gain | | |
Class A | $ 404 | $ 81 |
Class T | 1,137 | 1,001 |
Class C | 1,121 | 622 |
Income Replacement 2036 | 14,922 | 11,064 |
Institutional Class | 2 | 2 |
Total | $ 17,586 | $ 12,770 |
Fidelity Income Replacement 2038 Fund | | |
From net investment income | | |
Class A | $ 1,737 | $ 1,288 |
Class T | 1,436 | 1,710 |
Class C | 621 | 899 |
Income Replacement 2038 | 62,847 | 41,508 |
Institutional Class | 460 | 551 |
Total | $ 67,101 | $ 45,956 |
From net realized gain | | |
Class A | $ 3,479 | $ 210 |
Class T | 3,745 | 429 |
Class C | 2,806 | 305 |
Income Replacement 2038 | 68,917 | 8,397 |
Institutional Class | 821 | 106 |
Total | $ 79,768 | $ 9,447 |
Fidelity Income Replacement 2040 Fund | | |
From net investment income | | |
Class A | $ 562 | $ 141 |
Class T | 1,539 | 240 |
Class C | 1,072 | 1,360 |
Income Replacement 2040 | 88,922 | 59,586 |
Institutional Class | 123 | 44 |
Total | $ 92,218 | $ 61,371 |
From net realized gain | | |
Class A | $ 137 | $ 37 |
Class T | 176 | 107 |
Class C | 2,496 | 555 |
Income Replacement 2040 | 69,663 | 13,452 |
Institutional Class | 37 | 10 |
Total | $ 72,509 | $ 14,161 |
Fidelity Income Replacement 2042 Fund | | |
From net investment income | | |
Class A | $ 5,189 | $ 552 |
Class T | 4,574 | 2,294 |
Class C | 1,098 | 392 |
Income Replacement 2042 | 349,803 | 213,286 |
Institutional Class | 1,302 | 579 |
Total | $ 361,966 | $ 217,103 |
From net realized gain | | |
Class A | $ 3,666 | $ 74 |
Class T | 8,953 | 482 |
Class C | 4,811 | 89 |
Income Replacement 2042 | 386,619 | 33,444 |
Institutional Class | 1,161 | 93 |
Total | $ 405,210 | $ 34,182 |
Annual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2016 Fund | | | | |
Class A | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 21 | 163 | 1,081 | 8,297 |
Shares redeemed | (2,910) | (11,297) | (151,155) | (577,897) |
Net increase (decrease) | (2,889) | (11,134) | $ (150,074) | $ (569,600) |
Class T | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 7 | 28 | 397 | 1,401 |
Shares redeemed | (341) | (1,244) | (17,795) | (63,469) |
Net increase (decrease) | (334) | (1,216) | $ (17,398) | $ (62,068) |
Class C | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 85 | 505 | 4,320 |
Shares redeemed | (2,717) | (6,563) | (141,170) | (336,404) |
Net increase (decrease) | (2,707) | (6,478) | $ (140,665) | $ (332,084) |
Income Replacement 2016 | | | | |
Shares sold | 14,565 | 32,858 | $ 757,343 | $ 1,681,315 |
Reinvestment of distributions | 395 | 905 | 20,606 | 46,083 |
Shares redeemed | (36,638) | (52,922) | (1,908,597) | (2,704,793) |
Net increase (decrease) | (21,678) | (19,159) | $ (1,130,648) | $ (977,395) |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 4 | 12 | 217 | 590 |
Shares redeemed | (188) | (402) | (9,765) | (20,428) |
Net increase (decrease) | (184) | (390) | $ (9,548) | $ (19,838) |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | | | | |
Shares sold | 3,094 | 1,844 | $ 165,629 | $ 96,498 |
Reinvestment of distributions | 112 | 165 | 6,019 | 8,476 |
Shares redeemed | (2,034) | (2,302) | (109,403) | (118,731) |
Net increase (decrease) | 1,172 | (293) | $ 62,245 | $ (13,757) |
Class T | | | | |
Shares sold | 7,617 | - | $ 402,023 | $ - |
Reinvestment of distributions | 75 | 18 | 4,029 | 908 |
Shares redeemed | (1,459) | (626) | (78,424) | (32,478) |
Net increase (decrease) | 6,233 | (608) | $ 327,628 | $ (31,570) |
Class C | | | | |
Shares sold | 7,214 | 2,007 | $ 388,519 | $ 104,323 |
Reinvestment of distributions | 44 | 96 | 2,439 | 4,895 |
Shares redeemed | (2,277) | (1,291) | (121,070) | (66,610) |
Net increase (decrease) | 4,981 | 812 | $ 269,888 | $ 42,608 |
Income Replacement 2018 | | | | |
Shares sold | 48,757 | 19,009 | $ 2,615,823 | $ 982,691 |
Reinvestment of distributions | 403 | 656 | 21,671 | 33,655 |
Shares redeemed | (37,375) | (22,946) | (2,001,673) | (1,182,626) |
Net increase (decrease) | 11,785 | (3,281) | $ 635,821 | $ (166,280) |
Institutional Class | | | | |
Shares sold | - | 3,981 | $ - | $ 204,782 |
Reinvestment of distributions | 127 | 145 | 6,796 | 7,435 |
Shares redeemed | (1,505) | (4,070) | (80,836) | (209,387) |
Net increase (decrease) | (1,378) | 56 | $ (74,040) | $ 2,830 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | | | | |
Shares sold | 8,274 | 474 | $ 447,658 | $ 25,017 |
Reinvestment of distributions | 170 | 103 | 9,262 | 5,331 |
Shares redeemed | (1,585) | (967) | (87,236) | (50,578) |
Net increase (decrease) | 6,859 | (390) | $ 369,684 | $ (20,230) |
Class T | | | | |
Shares sold | 3 | 129 | $ 150 | $ 6,823 |
Reinvestment of distributions | 24 | 49 | 1,284 | 2,541 |
Shares redeemed | (243) | (2,023) | (13,241) | (108,390) |
Net increase (decrease) | (216) | (1,845) | $ (11,807) | $ (99,026) |
Class C | | | | |
Shares sold | 6,213 | 568 | $ 338,797 | $ 29,000 |
Reinvestment of distributions | 68 | 57 | 3,719 | 2,907 |
Shares redeemed | (2,214) | (648) | (119,698) | (33,562) |
Net increase (decrease) | 4,067 | (23) | $ 222,818 | $ (1,655) |
Income Replacement 2020 | | | | |
Shares sold | 46,801 | 45,319 | $ 2,589,823 | $ 2,366,414 |
Reinvestment of distributions | 1,366 | 908 | 74,954 | 46,992 |
Shares redeemed | (19,058) | (27,089) | (1,042,550) | (1,420,725) |
Net increase (decrease) | 29,109 | 19,138 | $ 1,622,227 | $ 992,681 |
Institutional Class | | | | |
Shares sold | 1,372 | - | $ 75,000 | $ - |
Reinvestment of distributions | 29 | 6 | 1,560 | 309 |
Shares redeemed | (122) | - | (6,760) | - |
Net increase (decrease) | 1,279 | 6 | $ 69,800 | $ 309 |
Fidelity Income Replacement 2022 Fund | | | | |
Class A | | | | |
Shares sold | 2,298 | - | $ 128,651 | $ - |
Reinvestment of distributions | 55 | 71 | 3,043 | 3,695 |
Shares redeemed | (2,277) | (496) | (128,019) | (26,081) |
Net increase (decrease) | 76 | (425) | $ 3,675 | $ (22,386) |
Class T | | | | |
Shares sold | 445 | - | $ 25,423 | $ - |
Reinvestment of distributions | 1 | 0* | 70 | 15 |
Shares redeemed | - | (91) | - | (4,748) |
Net increase (decrease) | 446 | (91) | $ 25,493 | $ (4,733) |
Class C | | | | |
Shares sold | 4,664 | 431 | $ 264,924 | $ 23,074 |
Reinvestment of distributions | 12 | 1 | 739 | 67 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 4,676 | 432 | $ 265,663 | $ 23,141 |
Income Replacement 2022 | | | | |
Shares sold | 122,627 | 23,547 | $ 6,894,254 | $ 1,241,849 |
Reinvestment of distributions | 940 | 598 | 53,287 | 30,901 |
Shares redeemed | (35,951) | (18,669) | (2,035,627) | (986,018) |
Net increase (decrease) | 87,616 | 5,476 | $ 4,911,914 | $ 286,732 |
Institutional Class | | | | |
Shares sold | 980 | - | $ 54,999 | $ - |
Reinvestment of distributions | 7 | 2 | 409 | 81 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 987 | 2 | $ 55,408 | $ 81 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | | | | |
Shares sold | 925 | 4,821 | $ 52,324 | $ 249,930 |
Reinvestment of distributions | 114 | 70 | 6,459 | 3,660 |
Shares redeemed | (5,011) | (1,358) | (288,188) | (70,040) |
Net increase (decrease) | (3,972) | 3,533 | $ (229,405) | $ 183,550 |
Class T | | | | |
Shares sold | - | 182 | $ - | $ 10,000 |
Reinvestment of distributions | 29 | 30 | 1,644 | 1,572 |
Shares redeemed | (222) | (210) | (12,674) | (11,083) |
Net increase (decrease) | (193) | 2 | $ (11,030) | $ 489 |
Class C | | | | |
Shares sold | 944 | - | $ 54,303 | $ - |
Reinvestment of distributions | 7 | 6 | 384 | 319 |
Shares redeemed | (337) | (1,320) | (19,586) | (68,217) |
Net increase (decrease) | 614 | (1,314) | $ 35,101 | $ (67,898) |
Income Replacement 2024 | | | | |
Shares sold | 100,545 | 17,502 | $ 5,712,753 | $ 923,490 |
Reinvestment of distributions | 988 | 343 | 56,412 | 17,775 |
Shares redeemed | (22,993) | (9,492) | (1,319,597) | (496,528) |
Net increase (decrease) | 78,540 | 8,353 | $ 4,449,568 | $ 444,737 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 12 | 588 | 614 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 10 | 12 | $ 588 | $ 614 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | | | | |
Shares sold | 4,671 | 3,297 | $ 270,903 | $ 164,296 |
Reinvestment of distributions | 72 | 104 | 4,127 | 5,368 |
Shares redeemed | (1,342) | (628) | (76,534) | (32,970) |
Net increase (decrease) | 3,401 | 2,773 | $ 198,496 | $ 136,694 |
Class T | | | | |
Shares sold | 591 | 147 | $ 32,802 | $ 7,752 |
Reinvestment of distributions | 16 | 22 | 896 | 1,126 |
Shares redeemed | (1,487) | (4,570) | (86,352) | (229,341) |
Net increase (decrease) | (880) | (4,401) | $ (52,654) | $ (220,463) |
Class C | | | | |
Shares sold | - | 372 | $ - | $ 20,181 |
Reinvestment of distributions | 4 | 3 | 257 | 166 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 4 | 375 | $ 257 | $ 20,347 |
Income Replacement 2026 | | | | |
Shares sold | 43,548 | 15,295 | $ 2,469,669 | $ 797,527 |
Reinvestment of distributions | 515 | 419 | 29,638 | 21,602 |
Shares redeemed | (12,559) | (10,796) | (717,746) | (570,139) |
Net increase (decrease) | 31,504 | 4,918 | $ 1,781,561 | $ 248,990 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 499 | 606 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 9 | 11 | $ 499 | $ 606 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | | | | |
Shares sold | 11,628 | 1,289 | $ 695,024 | $ 71,770 |
Reinvestment of distributions | 36 | 55 | 2,141 | 2,865 |
Shares redeemed | (2,162) | (1,798) | (125,714) | (97,320) |
Net increase (decrease) | 9,502 | (454) | $ 571,451 | $ (22,685) |
Class T | | | | |
Shares sold | - | 3,419 | $ - | $ 190,058 |
Reinvestment of distributions | 28 | 18 | 1,646 | 932 |
Shares redeemed | (250) | (93) | (14,492) | (4,963) |
Net increase (decrease) | (222) | 3,344 | $ (12,846) | $ 186,027 |
Class C | | | | |
Shares sold | 340 | - | $ 20,000 | $ - |
Reinvestment of distributions | 3 | 4 | 160 | 214 |
Shares redeemed | (38) | (339) | (2,200) | (18,000) |
Net increase (decrease) | 305 | (335) | $ 17,960 | $ (17,786) |
Income Replacement 2028 | | | | |
Shares sold | 276,372 | 48,154 | $ 16,302,408 | $ 2,584,155 |
Reinvestment of distributions | 1,779 | 1,125 | 104,546 | 58,544 |
Shares redeemed | (48,843) | (21,518) | (2,851,544) | (1,167,596) |
Net increase (decrease) | 229,308 | 27,761 | $ 13,555,410 | $ 1,475,103 |
Institutional Class | | | | |
Shares sold | - | 1,004 | $ - | $ 53,885 |
Reinvestment of distributions | 27 | 16 | 1,560 | 870 |
Shares Redeemed | - | - | - | - |
Net increase (decrease) | 27 | 1,020 | $ 1,560 | $ 54,755 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | | | | |
Shares sold | 3,278 | 933 | $ 188,799 | $ 49,913 |
Reinvestment of distributions | 27 | 19 | 1,564 | 1,002 |
Shares redeemed | (1,623) | (44) | (94,101) | (2,337) |
Net increase (decrease) | 1,682 | 908 | $ 96,262 | $ 48,578 |
Class T | | | | |
Shares sold | 11 | 11 | $ 622 | $ 618 |
Reinvestment of distributions | 3 | 5 | 200 | 261 |
Shares sold | - | - | - | - |
Net increase (decrease) | 14 | 16 | $ 822 | $ 879 |
Class C | | | | |
Shares sold | 911 | 305 | $ 54,800 | $ 16,713 |
Reinvestment of distributions | 35 | 51 | 2,043 | 2,604 |
Shares redeemed | (732) | (884) | (42,088) | (46,510) |
Net increase (decrease) | 214 | (528) | $ 14,755 | $ (27,193) |
Income Replacement 2030 | | | | |
Shares sold | 220,687 | 39,836 | $ 12,803,833 | $ 2,147,451 |
Reinvestment of distributions | 2,234 | 950 | 130,960 | 49,163 |
Shares redeemed | (66,109) | (14,994) | (3,869,452) | (778,185) |
Net increase (decrease) | 156,812 | 25,792 | $ 9,065,341 | $ 1,418,429 |
Institutional Class | | | | |
Shares sold | 458 | 538 | $ 25,001 | $ 27,920 |
Reinvestment of distributions | 25 | 15 | 1,445 | 782 |
Shares redeemed | (465) | - | (28,292) | - |
Net increase (decrease) | 18 | 553 | $ (1,846) | $ 28,702 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | | | | |
Shares sold | 4,195 | - | $ 226,000 | $ - |
Reinvestment of distributions | 114 | 112 | 6,170 | 5,527 |
Shares redeemed | (3,916) | (320) | (224,739) | (16,355) |
Net increase (decrease) | 393 | (208) | $ 7,431 | $ (10,828) |
Class T | | | | |
Shares sold | 129 | 489 | $ 6,991 | $ 25,000 |
Reinvestment of distributions | 13 | 11 | 732 | 557 |
Shares redeemed | - | (489) | - | (24,956) |
Net increase (decrease) | 142 | 11 | $ 7,723 | $ 601 |
Class C | | | | |
Shares sold | 824 | 190 | $ 46,001 | $ 9,600 |
Reinvestment of distributions | 27 | 21 | 1,455 | 1,038 |
Shares sold | - | - | - | - |
Net increase (decrease) | 851 | 211 | $ 47,456 | $ 10,638 |
Income Replacement 2032 | | | | |
Shares sold | 82,796 | 30,500 | $ 4,544,725 | $ 1,530,443 |
Reinvestment of distributions | 2,269 | 1,495 | 123,077 | 73,685 |
Shares redeemed | (34,248) | (11,121) | (1,888,944) | (559,873) |
Net increase (decrease) | 50,817 | 20,874 | $ 2,778,858 | $ 1,044,255 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 11 | 10 | 560 | 482 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 11 | 10 | $ 560 | $ 482 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | | | | |
Shares sold | 1,728 | - | $ 100,000 | $ - |
Reinvestment of distributions | 7 | 8 | 399 | 402 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 1,735 | 8 | $ 100,399 | $ 402 |
Class T | | | | |
Shares sold | - | 1,105 | $ - | $ 59,121 |
Reinvestment of distributions | 25 | 12 | 1,474 | 636 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 26 | 1,117 | $ 1,474 | $ 59,757 |
Class C | | | | |
Shares sold | 85 | 583 | $ 4,814 | $ 30,000 |
Reinvestment of distributions | 12 | 14 | 667 | 703 |
Shares redeemed | (86) | (583) | (5,154) | (29,858) |
Net increase (decrease) | 11 | 14 | $ 327 | $ 845 |
Income Replacement 2034 | | | | |
Shares sold | 88,317 | 37,259 | $ 5,170,390 | $ 1,995,412 |
Reinvestment of distributions | 1,329 | 626 | 77,616 | 32,352 |
Shares redeemed | (20,967) | (10,339) | (1,227,468) | (550,747) |
Net increase (decrease) | 68,679 | 27,546 | $ 4,020,538 | $ 1,477,017 |
Institutional Class | | | | |
Shares sold | 1,056 | - | $ 60,682 | $ - |
Reinvestment of distributions | 71 | 60 | 4,133 | 3,086 |
Shares redeemed | (13) | (15) | (764) | (770) |
Net increase (decrease) | 1,114 | 45 | $ 64,051 | $ 2,316 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | | | | |
Shares sold | 2,537 | - | $ 146,968 | $ - |
Reinvestment of distributions | 37 | 10 | 2,153 | 507 |
Shares redeemed | 0* | (112) | (15) | (5,700) |
Net increase (decrease) | 2,574 | (102) | $ 149,106 | $ (5,193) |
Class T | | | | |
Shares sold | 1,978 | - | $ 116,352 | $ - |
Reinvestment of distributions | 30 | 54 | 1,768 | 2,726 |
Shares redeemed | (337) | (348) | (19,565) | (18,208) |
Net increase (decrease) | 1,671 | (294) | $ 98,555 | $ (15,482) |
Class C | | | | |
Shares sold | - | 3,311 | $ - | $ 175,000 |
Reinvestment of distributions | 38 | 54 | 2,203 | 2,730 |
Shares redeemed | (518) | (419) | (29,991) | (22,047) |
Net increase (decrease) | (480) | 2,946 | $ (27,788) | $ 155,683 |
Income Replacement 2036 | | | | |
Shares sold | 58,800 | 27,343 | $ 3,418,581 | $ 1,427,322 |
Reinvestment of distributions | 662 | 604 | 38,607 | 30,579 |
Shares redeemed | (24,467) | (5,152) | (1,425,529) | (276,865) |
Net increase (decrease) | 34,995 | 22,795 | $ 2,031,659 | $ 1,181,036 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 0* | 0* | 13 | 15 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | - | - | $ 13 | $ 15 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | | | | |
Shares sold | 751 | 1,696 | $ 43,225 | $ 87,117 |
Reinvestment of distributions | 95 | 30 | 5,216 | 1,498 |
Shares redeemed | - | (1,076) | - | (54,240) |
Net increase (decrease) | 846 | 650 | $ 48,441 | $ 34,375 |
Class T | | | | |
Shares sold | 1,339 | 361 | $ 76,212 | $ 19,357 |
Reinvestment of distributions | 76 | 24 | 4,096 | 1,182 |
Shares redeemed | (598) | (87) | (33,753) | (4,480) |
Net increase (decrease) | 817 | 298 | $ 46,555 | $ 16,059 |
Class C | | | | |
Shares sold | 299 | - | $ 16,110 | $ - |
Reinvestment of distributions | 63 | 24 | 3,427 | 1,204 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 362 | 24 | $ 19,537 | $ 1,204 |
Income Replacement 2038 | | | | |
Shares sold | 97,135 | 12,010 | $ 5,466,976 | $ 616,548 |
Reinvestment of distributions | 2,020 | 705 | 111,764 | 35,469 |
Shares redeemed | (30,641) | (14,450) | (1,721,190) | (750,847) |
Net increase (decrease) | 68,514 | (1,735) | $ 3,857,550 | $ (98,830) |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 23 | 13 | 1,281 | 657 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 23 | 13 | $ 1,281 | $ 657 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | | | | |
Shares sold | 1,700 | 26 | $ 97,306 | $ 1,376 |
Reinvestment of distributions | 11 | 4 | 653 | 178 |
Shares redeemed | (42) | - | (2,337) | - |
Net increase (decrease) | 1,669 | 30 | $ 95,622 | $ 1,554 |
Class T | | | | |
Shares sold | 7,541 | 78 | $ 438,067 | $ 4,000 |
Reinvestment of distributions | 4 | 7 | 309 | 347 |
Shares redeemed | (108) | (951) | (6,401) | (48,573) |
Net increase (decrease) | 7,437 | (866) | $ 431,975 | $ (44,226) |
Class C | | | | |
Shares sold | 604 | 582 | $ 35,021 | $ 31,135 |
Reinvestment of distributions | 66 | 38 | 3,568 | 1,915 |
Shares redeemed | 0* | - | (15) | - |
Net increase (decrease) | 670 | 620 | $ 38,574 | $ 33,050 |
Income Replacement 2040 | | | | |
Shares sold | 101,404 | 29,430 | $ 5,825,239 | $ 1,560,721 |
Reinvestment of distributions | 2,134 | 943 | 120,009 | 47,571 |
Shares redeemed | (41,563) | (9,529) | (2,382,123) | (497,615) |
Net increase (decrease) | 61,975 | 20,844 | $ 3,563,125 | $ 1,110,677 |
Institutional Class | | | | |
Shares sold | 250 | - | $ 13,998 | $ - |
Reinvestment of distributions | 2 | 1 | 75 | 54 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 252 | 1 | $ 14,073 | $ 54 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | | | | |
Shares sold | 15,726 | 846 | $ 906,475 | $ 45,470 |
Reinvestment of distributions | 154 | 12 | 8,830 | 626 |
Shares redeemed | (7,599) | - | (439,193) | - |
Net increase (decrease) | 8,281 | 858 | $ 476,112 | $ 46,096 |
Class T | | | | |
Shares sold | 5,127 | - | $ 284,223 | $ - |
Reinvestment of distributions | 241 | 55 | 13,527 | 2,776 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 5,368 | 55 | $ 297,750 | $ 2,776 |
Class C | | | | |
Shares sold | 7,488 | 1,254 | $ 430,355 | $ 67,885 |
Reinvestment of distributions | 105 | 9 | 5,831 | 481 |
Shares redeemed | (3,151) | - | (174,356) | - |
Net increase (decrease) | 4,442 | 1,263 | $ 261,830 | $ 68,366 |
Income Replacement 2042 | | | | |
Shares sold | 397,829 | 146,111 | $ 22,936,171 | $ 7,567,549 |
Reinvestment of distributions | 10,109 | 2,829 | 569,905 | 142,929 |
Shares redeemed | (112,551) | (45,108) | (6,460,739) | (2,347,325) |
Net increase (decrease) | 295,387 | 103,832 | $ 17,045,337 | $ 5,363,153 |
Institutional Class | | | | |
Shares sold | 1,261 | - | $ 71,051 | $ - |
Reinvestment of distributions | 42 | 13 | 2,376 | 672 |
Shares redeemed | (1) | - | (55) | - |
Net increase (decrease) | 1,302 | 13 | $ 73,372 | $ 672 |
* Amount represents less than one share.
Annual Report
Notes to Financial Statements - continued
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
The Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investment by the Fund within their principle investment strategies may represent a significant portion of the Underlying Fund's net assets. At the end of the period, the following Funds were the owners of record of 10% or more of the total outstanding shares of the Underlying Funds.
Fund | Fidelity Income
Replacement 2028 Fund | Fidelity Income
Replacement 2030 Fund | Fidelity Income
Replacement 2042 Fund |
Fidelity Series Broad Market Opportunities Fund | 15% | 11% | 27% |
The Funds, in aggregate, were the owners of record of more than 20% of the total outstanding shares of the following Underlying Funds.
Fund | % of shares held |
Fidelity Series Broad Market Opportunities Fund | 100% |
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Income Fund and the Shareholders of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund:
We have audited the accompanying statements of assets and liabilities of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund (the Funds) are funds of Fidelity Income Fund (the Trust), including the schedules of investments, as of July 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the custodians. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund as of July 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 19, 2014
Annual Report
The Trustees and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each Fidelity Income Replacement Fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each Fidelity Income Replacement Fund's activities, review contractual arrangements with companies that provide services to each Fidelity Income Replacement Fund, oversee management of the risks associated with such activities and contractual arrangements, and review each Fidelity Income Replacement Fund's performance. If the interests of a Fidelity Income Replacement Fund and an underlying Fidelity fund were to diverge, a conflict of interest could arise and affect how the Trustees fulfill their fiduciary duties to the affected funds. Strategic Advisers has structured the Fidelity Income Replacement Funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, Strategic Advisers and the Trustees would take reasonable steps to minimize and, if possible, eliminate the conflict. Except for Elizabeth S. Acton and James C. Curvey, each of the Trustees oversees 224 funds. Ms. Acton oversees 206 funds. Mr. Curvey oversees 397 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
James C. Curvey (1935) |
Year of Election or Appointment: 2007 Trustee |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
Abigail P. Johnson (1961) |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President of FMR LLC (2013-present), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Elizabeth S. Acton (1951) |
Year of Election or Appointment: 2013 Trustee |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
Albert R. Gamper, Jr. (1942) |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Barnabas Health Care System. Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) |
Year of Election or Appointment: 2010 Trustee |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) |
Year of Election or Appointment: 2008 Trustee |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) |
Year of Election or Appointment: 2009 Trustee |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) |
Year of Election or Appointment: 2007 Trustee |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
Kenneth L. Wolfe (1939) |
Year of Election or Appointment: 2005 Trustee |
| Mr. Wolfe also serves as Trustee of other Fidelity funds. Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). Mr. Wolfe previously served as Chairman of the Independent Trustees of other Fidelity funds (2008-2012). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation |
Elizabeth Paige Baumann (1968) |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Marc Bryant (1966) |
Year of Election or Appointment: 2013 Assistant Secretary |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) |
Year of Election or Appointment: 2010 Assistant Treasurer |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) |
Year of Election or Appointment: 2010 Assistant Treasurer |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) |
Year of Election or Appointment: 2013 President and Treasurer |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) |
Year of Election or Appointment: 2014 Chief Financial Officer |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Bruce T. Herring (1965) |
Year of Election or Appointment: 2013 Vice President of Fidelity's Asset Allocation Funds |
| Mr. Herring also serves as Vice President of other funds. He serves as Chief Investment Officer of Fidelity Global Asset Allocation (GAA) (2013-present), Group Chief Investment Officer of FMR, and President of Fidelity Research & Analysis Company (2010-present). Previously, Mr. Herring served as Vice President of certain Equity Funds (2006-2014), Chief Investment Officer and Director of Fidelity Management & Research (U.K.) Inc. (2010-2013), Vice President (2005-2006) and Senior Vice President (2006-2007) of Fidelity Management & Research Company, Vice President of FMR Co., Inc. (2001-2007), and as a portfolio manager for Fidelity U.S. Equity Funds. |
Chris Maher (1972) |
Year of Election or Appointment: 2013 Assistant Treasurer |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) |
Year of Election or Appointment: 2014 Vice President |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) |
Year of Election or Appointment: 2009 Assistant Treasurer |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) |
Year of Election or Appointment: 2013 Deputy Treasurer |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) |
Year of Election or Appointment: 2013 Assistant Treasurer |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) |
Year of Election or Appointment: 2013 Deputy Treasurer |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) |
Year of Election or Appointment: 2008 Chief Compliance Officer |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Derek L. Young (1964) |
Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds |
| Mr. Young also serves as Trustee or an officer of other funds. He is President and a Director of Strategic Advisers, Inc. (2011-present), President of Fidelity Global Asset Allocation (GAA) (2011-present), and Vice Chairman of Pyramis Global Advisors, LLC (2011-present). Previously, Mr. Young served as Chief Investment Officer of GAA (2009-2011) and as a portfolio manager. |
Joseph F. Zambello (1957) |
Year of Election or Appointment: 2011 Deputy Treasurer |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
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:
Income Replacement 2016 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.900 |
Class T | 09/15/14 | 09/12/14 | $0.900 |
Class C | 09/15/14 | 09/12/14 | $0.900 |
Income Replacement 2018 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.000 |
Class T | 09/15/14 | 09/12/14 | $0.000 |
Class C | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2020 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.442 |
Class T | 09/15/14 | 09/12/14 | $0.442 |
Class C | 09/15/14 | 09/12/14 | $0.442 |
Income Replacement 2022 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.028 |
Class T | 09/15/14 | 09/12/14 | $0.028 |
Class C | 09/15/14 | 09/12/14 | $0.028 |
Income Replacement 2024 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.367 |
Class T | 09/15/14 | 09/12/14 | $0.367 |
Class C | 09/15/14 | 09/12/14 | $0.367 |
Income Replacement 2026 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.000 |
Class T | 09/15/14 | 09/12/14 | $0.000 |
Class C | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2028 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.000 |
Class T | 09/15/14 | 09/12/14 | $0.000 |
Class C | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2030 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.366 |
Class T | 09/15/14 | 09/12/14 | $0.366 |
Class C | 09/15/14 | 09/12/14 | $0.366 |
Income Replacement2032 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.253 |
Class T | 09/15/14 | 09/12/14 | $0.253 |
Class C | 09/15/14 | 09/12/14 | $0.253 |
Income Replacement 2034 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.476 |
Class T | 09/15/14 | 09/12/14 | $0.476 |
Class C | 09/15/14 | 09/12/14 | $0.476 |
Income Replacement 2036 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.000 |
Class T | 09/15/14 | 09/12/14 | $0.000 |
Class C | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2038 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.380 |
Class T | 09/15/14 | 09/12/14 | $0.380 |
Class C | 09/15/14 | 09/12/14 | $0.380 |
Income Replacement 2040 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.435 |
Class T | 09/15/14 | 09/12/14 | $0.435 |
Class C | 09/15/14 | 09/12/14 | $0.435 |
Income Replacement 2042 | Pay Date | Record Date | Capital Gains |
Class A | 09/15/14 | 09/12/14 | $0.467 |
Class T | 09/15/14 | 09/12/14 | $0.467 |
Class C | 09/15/14 | 09/12/14 | $0.467 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2014, or, if subsequently determined to be different, the net capital gain of such year.
Income Replacement 2016 | $118,541 |
Income Replacement 2020 | $89,794 |
Income Replacement 2024 | $66,215 |
Income Replacement 2030 | $115,913 |
Income Replacement 2032 | $49,207 |
Income Replacement 2034 | $91,561 |
Income Replacement 2038 | $66,976 |
Income Replacement 2040 | $79,752 |
Income Replacement 2042 | $370,562 |
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:
Income Replacement 2016 | |
Class A | 5.88% |
Class T | 5.88% |
Class C | 5.88% |
Income Replacement 2018 | |
Class A | 6.60% |
Class T | 6.60% |
Class C | 6.60% |
Income Replacement 2020 | |
Class A | 6.13% |
Class T | 6.13% |
Class C | 6.13% |
Income Replacement 2022 | |
Class A | 4.88% |
Class T | 4.88% |
Class C | 4.88% |
Income Replacement 2024 | |
Class A | 4.29% |
Class T | 4.29% |
Class C | 4.29% |
Income Replacement 2026 | |
Class A | 3.84% |
Class T | 3.84% |
Class C | 3.84% |
Income Replacement 2028 | |
Class A | 4.03% |
Class T | 4.03% |
Class C | 4.03% |
Income Replacement 2030 | |
Class A | 4.25% |
Class T | 4.25% |
Class C | 4.25% |
Income Replacement 2032 | |
Class A | 3.32% |
Class T | 3.32% |
Class C | 3.32% |
Income Replacement 2034 | |
Class A | 3.56% |
Class T | 3.56% |
Class C | 3.56% |
Income Replacement 2036 | |
Class A | 3.07% |
Class T | 3.07% |
Class C | 3.07% |
Income Replacement 2038 | |
Class A | 3.03% |
Class T | 3.03% |
Class C | 3.03% |
Income Replacement 2040 | |
Class A | 2.93% |
Class T | 2.93% |
Class C | 2.93% |
Income Replacement 2042 | |
Class A | 2.88% |
Class T | 2.88% |
Class C | 2.88% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Class A | Class T | Class C |
Income Replacement 2016 | | | |
August 2013 | 26% | 73% | 0% |
September 2013 | 35% | 63% | 0% |
October 2013 | 29% | 40% | 100% |
November 2013 | 37% | 77% | 0% |
December 2013 (Ex Date 12/20/13) | 24% | 24% | 24% |
December 2013 (Ex Date 12/30/13) | 30% | 33% | 61% |
January 2014 | 3% | 7% | 0% |
February 2014 | 3% | 15% | 0% |
March 2014 | 4% | 14% | 0% |
April 2014 | 3% | 5% | 0% |
May 2014 | 4% | 0% | 0% |
June 2014 | 3% | 8% | 0% |
July 2014 | 3% | 5% | 0% |
| | | |
| Class A | Class T | Class C |
Income Replacement 2018 | | | |
August 2013 | 26% | 41% | 0% |
September 2013 | 33% | 28% | 100% |
October 2013 | 29% | 35% | 55% |
November 2013 | 33% | 51% | 0% |
December 2013 (Ex Date 12/20/13) | 28% | 28% | 28% |
December 2013 (Ex Date 12/30/13) | 29% | 32% | 41% |
January 2014 | 4% | 5% | 81% |
February 2014 | 4% | 6% | 0% |
March 2014 | 4% | 6% | 0% |
April 2014 | 4% | 4% | 6% |
May 2014 | 4% | 7% | 0% |
June 2014 | 4% | 5% | 100% |
July 2014 | 3% | 4% | 7% |
| Class A | Class T | Class C |
Income Replacement 2020 | | | |
August 2013 | 31% | 54% | 0% |
September 2013 | 42% | 61% | 100% |
October 2013 | 38% | 44% | 68% |
November 2013 | 44% | 68% | 0% |
December 2013 (Ex Date 12/20/13) | 35% | 35% | 35% |
December 2013 (Ex Date 12/30/13) | 36% | 40% | 48% |
January 2014 | 6% | 9% | 100% |
February 2014 | 6% | 10% | 100% |
March 2014 | 7% | 10% | 0% |
April 2014 | 6% | 7% | 11% |
May 2014 | 7% | 11% | 0% |
June 2014 | 6% | 8% | 33% |
July 2014 | 6% | 6% | 10% |
| Class A | Class T | Class C |
Income Replacement 2022 | | | |
August 2013 | 39% | 62% | 0% |
September 2013 | 51% | 67% | 100% |
October 2013 | 46% | 56% | 90% |
November 2013 | 53% | 82% | 0% |
December 2013 (Ex Date 12/20/13) | 40% | 40% | 40% |
December 2013 (Ex Date 12/30/13) | 42% | 43% | 54% |
January 2014 | 12% | 14% | 0% |
February 2014 | 11% | 17% | 0% |
March 2014 | 11% | 17% | 14% |
April 2014 | 9% | 10% | 18% |
May 2014 | 10% | 10% | 0% |
June 2014 | 9% | 13% | 34% |
July 2014 | 9% | 11% | 16% |
| Class A | Class T | Class C |
Income Replacement 2024 | | | |
August 2013 | 42% | 69% | 0% |
September 2013 | 57% | 84% | 100% |
October 2013 | 50% | 60% | 100% |
November 2013 | 60% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 45% | 45% | 45% |
December 2013 (Ex Date 12/30/13) | 47% | 51% | 59% |
January 2014 | 12% | 19% | 0% |
February 2014 | 17% | 19% | 0% |
March 2014 | 13% | 20% | 100% |
April 2014 | 11% | 13% | 23% |
May 2014 | 13% | 22% | 0% |
June 2014 | 11% | 15% | 56% |
July 2014 | 11% | 12% | 19% |
| Class A | Class T | Class C |
Income Replacement 2026 | | | |
August 2013 | 45% | 75% | 0% |
September 2013 | 58% | 70% | 100% |
October 2013 | 52% | 62% | 100% |
November 2013 | 61% | 97% | 0% |
December 2013 (Ex Date 12/20/13) | 46% | 46% | 46% |
December 2013 (Ex Date 12/30/13) | 49% | 52% | 60% |
January 2014 | 14% | 22% | 0% |
February 2014 | 14% | 23% | 0% |
March 2014 | 14% | 23% | 0% |
April 2014 | 11% | 23% | 22% |
May 2014 | 14% | 65% | 0% |
June 2014 | 13% | 17% | 81% |
July 2014 | 12% | 14% | 20% |
| Class A | Class T | Class C |
Income Replacement 2028 | | | |
August 2013 | 47% | 80% | 0% |
September 2013 | 90% | 81% | 100% |
October 2013 | 50% | 62% | 92% |
November 2013 | 64% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 46% | 46% | 46% |
December 2013 (Ex Date 12/30/13) | 49% | 52% | 59% |
January 2014 | 20% | 32% | 0% |
February 2014 | 22% | 43% | 0% |
March 2014 | 21% | 42% | 0% |
April 2014 | 17% | 21% | 39% |
May 2014 | 22% | 46% | 0% |
June 2014 | 18% | 26% | 100% |
July 2014 | 17% | 20% | 32% |
| Class A | Class T | Class C |
Income Replacement 2030 | | | |
August 2013 | 57% | 96% | 0% |
September 2013 | 63% | 89% | 100% |
October 2013 | 57% | 76% | 100% |
November 2013 | 73% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 50% | 50% | 50% |
December 2013 (Ex Date 12/30/13) | 53% | 57% | 65% |
January 2014 | 16% | 21% | 0% |
February 2014 | 16% | 27% | 0% |
March 2014 | 18% | 33% | 0% |
April 2014 | 13% | 17% | 26% |
May 2014 | 17% | 23% | 0% |
June 2014 | 15% | 22% | 48% |
July 2014 | 13% | 16% | 24% |
| Class A | Class T | Class C |
Income Replacement 2032 | | | |
August 2013 | 55% | 86% | 0% |
September 2013 | 62% | 100% | 100% |
October 2013 | 54% | 68% | 100% |
November 2013 | 71% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 50% | 50% | 50% |
December 2013 (Ex Date 12/30/13) | 52% | 55% | 62% |
January 2014 | 14% | 21% | 0% |
February 2014 | 13% | 23% | 0% |
March 2014 | 14% | 28% | 0% |
April 2014 | 11% | 13% | 21% |
May 2014 | 14% | 23% | 0% |
June 2014 | 14% | 17% | 65% |
July 2014 | 11% | 13% | 20% |
| Class A | Class T | Class C |
Income Replacement 2034 | | | |
August 2013 | 53% | 94% | 0% |
September 2013 | 71% | 95% | 100% |
October 2013 | 58% | 71% | 100% |
November 2013 | 54% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 51% | 51% | 51% |
December 2013 (Ex Date 12/30/13) | 54% | 57% | 65% |
January 2014 | 18% | 29% | 0% |
February 2014 | 18% | 30% | 0% |
March 2014 | 18% | 39% | 0% |
April 2014 | 14% | 17% | 27% |
May 2014 | 18% | 35% | 0% |
June 2014 | 16% | 22% | 100% |
July 2014 | 14% | 17% | 26% |
| Class A | Class T | Class C |
Income Replacement 2036 | | | |
August 2013 | 52% | 96% | 0% |
September 2013 | 69% | 92% | 100% |
October 2013 | 51% | 71% | 100% |
November 2013 | 72% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 53% | 53% | 53% |
December 2013 (Ex Date 12/30/13) | 55% | 58% | 66% |
January 2014 | 16% | 28% | 0% |
February 2014 | 16% | 27% | 0% |
March 2014 | 16% | 31% | 0% |
April 2014 | 13% | 15% | 24% |
May 2014 | 17% | 32% | 0% |
June 2014 | 14% | 19% | 85% |
July 2014 | 13% | 15% | 24% |
| Class A | Class T | Class C |
Income Replacement 2038 | | | |
August 2013 | 56% | 100% | 0% |
September 2013 | 72% | 100% | 0% |
October 2013 | 62% | 77% | 100% |
November 2013 | 82% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 54% | 54% | 54% |
December 2013 (Ex Date 12/30/13) | 57% | 61% | 68% |
January 2014 | 14% | 22% | 0% |
February 2014 | 14% | 26% | 0% |
March 2014 | 15% | 22% | 0% |
April 2014 | 12% | 14% | 23% |
May 2014 | 15% | 32% | 0% |
June 2014 | 13% | 19% | 100% |
July 2014 | 12% | 14% | 22% |
| Class A | Class T | Class C |
Income Replacement 2040 | | | |
August 2013 | 31% | 55% | 0% |
September 2013 | 70% | 89% | 100% |
October 2013 | 62% | 69% | 100% |
November 2013 | 100% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 54% | 54% | 54% |
December 2013 (Ex Date 12/30/13) | 56% | 59% | 67% |
January 2014 | 21% | 71% | 0% |
February 2014 | 18% | 24% | 0% |
March 2014 | 19% | 47% | 0% |
April 2014 | 16% | 14% | 26% |
May 2014 | 19% | 42% | 0% |
June 2014 | 17% | 23% | 100% |
July 2014 | 15% | 18% | 29% |
| Class A | Class T | Class C |
Income Replacement 2042 | | | |
August 2013 | 58% | 56% | 0% |
September 2013 | 66% | 85% | 0% |
October 2013 | 63% | 77% | 100% |
November 2013 | 75% | 100% | 0% |
December 2013 (Ex Date 12/20/13) | 54% | 54% | 54% |
December 2013 (Ex Date 12/30/13) | 56% | 60% | 66% |
January 2014 | 21% | 40% | 0% |
February 2014 | 20% | 38% | 0% |
March 2014 | 21% | 41% | 0% |
April 2014 | 15% | 20% | 27% |
May 2014 | 22% | 36% | 0% |
June 2014 | 18% | 26% | 100% |
July 2014 | 16% | 20% | 28% |
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
ARW-UANN-0914
1.848191.106
Fidelity Advisor Income Replacement FundsSM -
2016, 2018, 2020, 2022, 2024, 2026, 2028, 2030, 2032, 2034, 2036, 2038, 2040, 2042 -
Institutional Class
Annual Report
July 31, 2014
Each Institutional Class is a class of
Fidelity Income Replacement FundsSM
(Fidelity Cover Art)
Contents
Annual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Fidelity Advisor Income Replacement 2016 FundSM - Institutional Class
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fundA |
Institutional Class | 2.81% | 5.74% | 3.10% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2016 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays® U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2018 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | 5.40% | 7.19% | 3.86% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2018 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2020 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 6.74% | 8.19% | 4.31% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2020 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2022 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 7.81% | 8.94% | 4.69% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2022 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2024 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 8.58% | 9.48% | 4.95% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2024 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2026 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fundA |
Institutional Class | | 9.13% | 9.85% | 5.07% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2026 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2028 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 9.52% | 10.12% | 5.17% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2028 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays U.S. Aggregate Bond Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2030 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 9.78% | 10.35% | 5.25% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2030 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index and Barclays U.S. Aggregate Bond IndexA performed over the same period.
A Going forward, the fund's performance will be compared to the Barclays U.S. Aggregate Bond Index, rather than the S&P 500 Index. The Barclays U.S. Aggregate Bond Index more closely represents the fund's investment strategy, as fixed-income and short-term funds currently represent the majority of the fund's assets.
Annual Report
Fidelity Advisor Income Replacement 2032 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 10.04% | 10.55% | 5.28% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2032 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2034 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 10.23% | 10.73% | 5.26% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2034 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2036 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | 10.49% | 10.94% | 5.30% |
A From August 30, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2036 Fund - Institutional Class on August 30, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2038 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 10.66% | 11.17% | 5.02% |
A From December 31, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2038 Fund - Institutional Class on December 31, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2040 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 10.95% | 11.47% | 5.21% |
A From December 31, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2040 Fund - Institutional Class on December 31, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Fidelity Advisor Income Replacement 2042 FundSM - Institutional Class
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $25,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended July 31, 2014 | | Past 1
year | Past 5
years | Life of
fund A |
Institutional Class | | 11.32% | 11.71% | 5.36% |
A From December 31, 2007.
$25,000 Over Life of Fund
Let's say hypothetically that $25,000 was invested in Fidelity Advisor Income Replacement 2042 Fund - Institutional Class on December 31, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.
Annual Report
Market Recap: U.S. stocks overcame a slowing economy early in 2014 to post a strong gain for the 12-month period ending July 31, 2014, supported by healthy corporate profits and continued low interest rates. The S&P 500® Index rose 16.94%, reaching an all-time high near period end. The technology-heavy Nasdaq Composite Index® gained 22.00%, whereas the Russell 2000® Index returned 8.56%, reflecting the relatively lackluster performance of small-cap stocks, particularly in the final months of the period. Information technology (+28%) was the top-performing sector within the S&P 500®, driven by strong semiconductor and computer hardware sales and expectations for increased capital spending. Materials (+23%) rose amid higher prices for many commodity products. Health care (+21%) also performed well, driven in particular by gains in pharmaceuticals, biotechnology & life sciences companies. Energy stocks (+19%) advanced in the latter part of the period amid healthy U.S. output and the threat of supply disruptions in Iraq. While growth sectors performed well for the year, traditional defensive sectors - consumer staples, utilities and telecommunication services - lagged the market. Volatility remained tame overall, with markets supported by declining unemployment, near-record profit margins for companies, muted cost inflation, and fairly low corporate debt levels. Geopolitical tension remained a concern at period end, with conflict in Ukraine and strained relations between Russia and the West posing a potential threat to global growth; leading indicators for the world's major economies deteriorated somewhat in the second quarter. Still, the MSCI EAFE Index, representing non-U.S. developed markets, rose 15.21% for the period, posting a gain of 10% or more in every major global region. Emerging-markets equities rebounded from a loss in 2013, with the MSCI Emerging Markets Index advancing 15.72%, aided by falling long-term interest rates that encouraged investments in riskier assets.
Meanwhile, U.S. taxable investment-grade bonds also posted a positive return for the 12-month period, overcoming early-period fears that interest rates could keep rising. The Barclays® U.S. Aggregate Bond Index rose 3.97%, driven partly by economic growth concerns after an abnormally cold winter suppressed spending early in 2014. Bonds with maturities of 10 years or more stood out, returning far more than shorter-term securities across fixed-income asset classes. Lower-quality issues attracted some of the strongest buying interest, especially in the latter half of the period. Among sectors that make up the index, investment-grade credit rose 6.64%, aided by a low loan-default rate. By contrast, U.S. Treasuries, considered the safest bond investments, returned 1.99% for the year. High-yield investments, as measured by The BofA Merrill LynchSM US High Yield Constrained Index, rose 8.28%, as many investors were willing to take on greater risk for the possibility of higher returns. International developed-markets bonds outperformed their U.S. counterparts, with the Citigroup® Non-USD Group-of-Seven (G7) Equal Weighted Index returning 6.62%. Emerging-markets debt enjoyed a rally in 2014 that pushed the J.P. Morgan Emerging Markets Bond Index Global up 10.13% for the period.
Comments from Andrew Dierdorf and Brett Sumsion, Co-Portfolio Managers of Fidelity Advisor Income Replacement FundsSM: For the one-year period, each of the Funds' Institutional Class shares posted a positive absolute result. The longest-dated Funds - designed for shareholders who have a longer time horizon and thus having greater exposure to equities - delivered the greatest returns, while the Funds with shorter time horizons - which have higher allocations to bonds - delivered more-muted results. For the 12-month period, three of the underlying funds outperformed the S&P 500®, the benchmark for the Funds' equity asset class. Fidelity® Blue Chip Growth Fund and Fidelity® Series Broad Market Opportunities Fund, the Fund's largest U.S. equity fund holding, contributed the most to results. In addition, Fidelity Series 100 Index Fund posted a result close to that of the broader market. On the downside, the Funds' sizable position in Fidelity Equity-Income Fund underperformed. The return of Fidelity Series Small Cap Opportunities Fund, a very small allocation, ranked lowest for the period. The Funds' non-U.S. equity investment, Fidelity International Discovery Fund, delivered a double-digit return, albeit considerably lower than that of the S&P 500. The Funds' fixed-income asset class overall - comprising a diversified mix of underlying bond funds - performed well relative to the Barclays® U.S. Aggregate Bond Index. Fidelity Total Bond Fund was the strongest contributor in this asset class. The Funds' investments in Fidelity Capital & Income Fund, a small allocation, registered the highest absolute return as investors sought higher-yielding bonds, a primary focus of the fund. Fidelity Strategic Income Fund, which invests across all major fixed income asset classes, also helped. In line with the generally lower returns found in the segment, Fidelity Government Income Fund, offering exposure to the U.S. government and government-related bond sectors, delivered the lowest absolute result, exclusive of short-term funds.
Notes to shareholders: On January 21, 2014, Brett Sumsion became a Co-Manager of the Funds.
Fidelity Advisor Income Replacement 2018 FundSM closed to new accounts and additional purchases as of the close of business on May 30, 2014.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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.
Annual Report
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2014 to July 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2016 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,011.10 | $ 1.25 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,009.80 | $ 2.49 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,007.30 | $ 4.98 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2016 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,012.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,012.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,024.00 | $ 1.25 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,022.90 | $ 2.51 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,020.20 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2018 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,025.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,025.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,030.70 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,029.40 | $ 2.52 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,027.00 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2020 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,032.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,032.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2022 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,036.00 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .49% C | | | |
Actual | | $ 1,000.00 | $ 1,034.70 | $ 2.47 |
HypotheticalA | | $ 1,000.00 | $ 1,022.36 | $ 2.46 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,032.20 | $ 4.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2022 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,037.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,037.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,039.80 | $ 1.26 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,038.30 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,035.80 | $ 5.05 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2024 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,042.00 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,040.90 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,038.10 | $ 5.05 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2026 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,043.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | .24% C | | | |
Actual | | $ 1,000.00 | $ 1,043.80 | $ 1.22 |
HypotheticalA | | $ 1,000.00 | $ 1,023.60 | $ 1.20 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,042.60 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,040.00 | $ 5.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2028 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,045.00 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,043.70 | $ 2.53 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,041.10 | $ 5.06 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2030 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,046.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,046.10 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,044.90 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,042.30 | $ 5.01 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2032 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,047.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,047.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,046.90 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,045.50 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,043.00 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2034 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,048.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,048.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,047.90 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,046.50 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,043.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2036 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,048.60 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,047.30 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,044.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2038 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,049.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,050.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,049.80 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .49%C | | | |
Actual | | $ 1,000.00 | $ 1,048.60 | $ 2.49 |
HypotheticalA | | $ 1,000.00 | $ 1,022.36 | $ 2.46 |
Class C | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,045.80 | $ 5.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
Income Replacement 2040 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,051.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,051.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
| Annualized
Expense Ratio B | Beginning
Account Value
February 1, 2014 | Ending
Account Value
July 31, 2014 | Expenses Paid
During Period*
February 1, 2014
to July 31, 2014 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | .25% | | | |
Actual | | $ 1,000.00 | $ 1,051.30 | $ 1.27 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
Class T | .50% | | | |
Actual | | $ 1,000.00 | $ 1,050.10 | $ 2.54 |
HypotheticalA | | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Class C | .99% C | | | |
Actual | | $ 1,000.00 | $ 1,047.30 | $ 5.03 |
HypotheticalA | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
Income Replacement 2042 | .00% | | | |
Actual | | $ 1,000.00 | $ 1,052.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Institutional Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,052.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which each Fund invests are not included in each Fund's annualized expense ratio.
Annual Report
Fidelity Income Replacement 2016 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 1.1 | 1.3 |
Fidelity Blue Chip Growth Fund | 1.0 | 1.3 |
Fidelity Equity-Income Fund | 1.6 | 1.9 |
Fidelity Large Cap Stock Fund | 1.2 | 1.4 |
Fidelity Series 100 Index Fund | 1.0 | 1.3 |
Fidelity Series Broad Market Opportunities Fund | 1.8 | 2.2 |
Fidelity Series Small Cap Opportunities Fund | 0.1 | 0.2 |
| 7.8 | 9.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 2.3 | 3.4 |
Fidelity Strategic Real Return Fund | 2.3 | 3.4 |
Fidelity Total Bond Fund | 6.9 | 10.3 |
| 11.5 | 17.1 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 52.8 | 46.9 |
Fidelity Short-Term Bond Fund | 27.9 | 26.4 |
| 80.7 | 73.3 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
 | Domestic Equity Funds | 7.8% | |
 | Investment Grade Fixed-Income Funds | 11.5% | |
 | Short-Term Funds | 80.7% | |
Six months ago |
| Domestic Equity Funds | 9.6% | |
| Investment Grade Fixed-Income Funds | 17.1% | |
| Short-Term Funds | 73.3% | |
Expected |
| Domestic Equity Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 4.6% | |
| Short-Term Funds | 89.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2016 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 7.8% |
| Shares | | Value |
Domestic Equity Funds - 7.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 2,544 | | $ 53,884 |
Fidelity Blue Chip Growth Fund (b) | 759 | | 50,639 |
Fidelity Equity-Income Fund (b) | 1,277 | | 78,226 |
Fidelity Large Cap Stock Fund (b) | 2,127 | | 58,923 |
Fidelity Series 100 Index Fund (b) | 4,046 | | 51,470 |
Fidelity Series Broad Market Opportunities Fund (b) | 5,778 | | 88,756 |
Fidelity Series Small Cap Opportunities Fund (b) | 577 | | 7,476 |
TOTAL EQUITY FUNDS (Cost $217,331) |
389,374
|
Fixed-Income Funds - 11.5% |
| | | |
Investment Grade Fixed-Income Funds - 11.5% |
Fidelity Government Income Fund (b) | 11,153 | | 115,657 |
Fidelity Strategic Real Return Fund (b) | 11,955 | | 114,414 |
Fidelity Total Bond Fund (b) | 32,461 | | 346,685 |
TOTAL FIXED-INCOME FUNDS (Cost $509,914) |
576,756
|
Short-Term Funds - 80.7% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 2,636,597 | | $ 2,636,597 |
Fidelity Short-Term Bond Fund (b) | 162,035 | | 1,391,877 |
TOTAL SHORT-TERM FUNDS (Cost $3,981,016) |
4,028,474
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $4,708,261) | | 4,994,604 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (470) |
NET ASSETS - 100% | $ 4,994,134 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor Mid Cap II Fund Institutional Class | $ 106,757 | $ 21,249 | $ 76,736 | $ 88 | $ 53,884 |
Fidelity Blue Chip Growth Fund | 98,838 | 16,503 | 74,051 | 361 | 50,639 |
Fidelity Equity-Income Fund | 151,494 | 17,256 | 101,573 | 2,942 | 78,226 |
Fidelity Government Income Fund | 291,416 | 28,612 | 206,324 | 3,315 | 115,657 |
Fidelity Institutional Money Market Portfolio Institutional Class | 2,558,368 | 1,073,851 | 995,621 | 2,235 | 2,636,597 |
Fidelity Large Cap Stock Fund | 114,261 | 15,086 | 82,452 | 747 | 58,923 |
Fidelity Series 100 Index Fund | 98,617 | 11,026 | 68,405 | 1,605 | 51,470 |
Fidelity Series Broad Market Opportunities Fund | 174,262 | 18,516 | 125,530 | 627 | 88,756 |
Fidelity Series Small Cap Opportunities Fund | 15,242 | 3,125 | 10,590 | 3 | 7,476 |
Fidelity Short-Term Bond Fund | 1,556,260 | 404,453 | 574,369 | 13,552 | 1,391,877 |
Fidelity Strategic Real Return Fund | 291,366 | 31,061 | 211,411 | 4,180 | 114,414 |
Fidelity Total Bond Fund | 876,146 | 102,316 | 634,728 | 18,225 | 346,685 |
Total | $ 6,333,027 | $ 1,743,054 | $ 3,161,790 | $ 47,880 | $ 4,994,604 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2016 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $4,708,261) - See accompanying schedule | | $ 4,994,604 |
Receivable for investments sold | | 6,936 |
Receivable for fund shares sold | | 75,000 |
Total assets | | 5,076,540 |
| | |
Liabilities | | |
Payable for investments purchased | $ 66,548 | |
Payable for fund shares redeemed | 15,401 | |
Distribution and service plan fees payable | 457 | |
Total liabilities | | 82,406 |
| | |
Net Assets | | $ 4,994,134 |
Net Assets consist of: | | |
Paid in capital | | $ 4,644,005 |
Undistributed net investment income | | 490 |
Accumulated undistributed net realized gain (loss) on investments | | 63,296 |
Net unrealized appreciation (depreciation) on investments | | 286,343 |
Net Assets | | $ 4,994,134 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($185,472 ÷ 3,534.10 shares) | | $ 52.48 |
| | |
Maximum offering price per share (100/94.25 of $52.48) | | $ 55.68 |
Class T:
Net Asset Value and redemption price per share ($120,043 ÷ 2,287.22 shares) | | $ 52.48 |
| | |
Maximum offering price per share (100/96.50 of $52.48) | | $ 54.38 |
| | |
Class C:
Net Asset Value and offering price per share ($442,716 ÷ 8,472.13 shares)A | | $ 52.26 |
| | |
Income Replacement 2016:
Net Asset Value, offering price and redemption price per share ($4,225,138 ÷ 80,523.72 shares) | | $ 52.47 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($20,765 ÷ 395.73 shares) | | $ 52.47 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 47,880 |
| | |
Expenses | | |
Distribution and service plan fees | $ 6,409 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 6,432 | |
Expense reductions | (23) | 6,409 |
Net investment income (loss) | | 41,471 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 236,211 | |
Capital gain distributions from underlying funds | 34,835 | |
Total net realized gain (loss) | | 271,046 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (155,891) |
Net gain (loss) | | 115,155 |
Net increase (decrease) in net assets resulting from operations | | $ 156,626 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2016 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 41,471 | $ 81,573 |
Net realized gain (loss) | 271,046 | 349,071 |
Change in net unrealized appreciation (depreciation) | (155,891) | (168,305) |
Net increase (decrease) in net assets resulting from operations | 156,626 | 262,339 |
Distributions to shareholders from net investment income | (41,835) | (82,163) |
Distributions to shareholders from net realized gain | (4,675) | (30,226) |
Total distributions | (46,510) | (112,389) |
Share transactions - net increase (decrease) | (1,448,333) | (1,960,985) |
Total increase (decrease) in net assets | (1,338,217) | (1,811,035) |
| | |
Net Assets | | |
Beginning of period | 6,332,351 | 8,143,386 |
End of period (including undistributed net investment income of $490 and undistributed net investment income of $853, respectively) | $ 4,994,134 | $ 6,332,351 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .305 | .500 | .736 | .821 | .831 |
Net realized and unrealized gain (loss) | 1.012 | 1.219 | .842 | 3.054 | 3.539 |
Total from investment operations | 1.317 | 1.719 | 1.578 | 3.875 | 4.370 |
Distributions from net investment income | (.287) | (.487) | (.733) | (.834) | (.830) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.327) | (.689) | (.938) | (1.095) | (.950) |
Net asset value, end of period | $ 52.48 | $ 51.49 | $ 50.46 | $ 49.82 | $ 47.04 |
Total ReturnA, B | 2.56% | 3.43% | 3.23% | 8.30% | 10.08% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | .59% | .98% | 1.49% | 1.68% | 1.80% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 185 | $ 331 | $ 886 | $ 1,798 | $ 2,308 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.50 | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 |
Income from Investment Operations | | | | | |
Net investment income (loss)C | .175 | .372 | .612 | .698 | .716 |
Net realized and unrealized gain (loss) | 1.006 | 1.225 | .847 | 3.043 | 3.540 |
Total from investment operations | 1.181 | 1.597 | 1.459 | 3.741 | 4.256 |
Distributions from net investment income | (.161) | (.365) | (.594) | (.710) | (.716) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.201) | (.567) | (.799) | (.971) | (.836) |
Net asset value, end of period | $ 52.48 | $ 51.50 | $ 50.47 | $ 49.81 | $ 47.04 |
Total ReturnA, B | 2.30% | 3.18% | 2.98% | 8.00% | 9.81% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .34% | .73% | 1.24% | 1.42% | 1.55% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 120 | $ 135 | $ 194 | $ 529 | $ 638 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.41 | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | (.085) | .116 | .364 | .453 | .485 |
Net realized and unrealized gain (loss) | 1.014 | 1.225 | .837 | 3.055 | 3.531 |
Total from investment operations | .929 | 1.341 | 1.201 | 3.508 | 4.016 |
Distributions from net investment income | (.039) | (.179) | (.376) | (.447) | (.476) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.079) | (.381) | (.581) | (.708) | (.596) |
Net asset value, end of period | $ 52.26 | $ 51.41 | $ 50.45 | $ 49.83 | $ 47.03 |
Total ReturnA, B | 1.81% | 2.67% | 2.45% | 7.49% | 9.24% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | (.16)% | .23% | .74% | .92% | 1.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 443 | $ 575 | $ 891 | $ 759 | $ 1,075 |
Portfolio turnover rate D | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2016
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .435 | .627 | .859 | .944 | .948 |
Net realized and unrealized gain (loss) | 1.007 | 1.229 | .838 | 3.055 | 3.539 |
Total from investment operations | 1.442 | 1.856 | 1.697 | 3.999 | 4.487 |
Distributions from net investment income | (.422) | (.624) | (.862) | (.958) | (.947) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.462) | (.826) | (1.067) | (1.219) | (1.067) |
Net asset value, end of period | $ 52.47 | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 |
Total ReturnA | 2.81% | 3.71% | 3.48% | 8.57% | 10.36% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | .84% | 1.23% | 1.74% | 1.93% | 2.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,225 | $ 5,262 | $ 6,124 | $ 6,873 | $ 6,946 |
Portfolio turnover rate C | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .435 | .628 | .861 | .945 | .947 |
Net realized and unrealized gain (loss) | 1.007 | 1.228 | .836 | 3.054 | 3.530 |
Total from investment operations | 1.442 | 1.856 | 1.697 | 3.999 | 4.477 |
Distributions from net investment income | (.422) | (.624) | (.862) | (.958) | (.947) |
Distributions from net realized gain | (.040) | (.202) | (.205) | (.261) | (.120) |
Total distributions | (.462) | (.826) | (1.067) | (1.219) | (1.067) |
Net asset value, end of period | $ 52.47 | $ 51.49 | $ 50.46 | $ 49.83 | $ 47.05 |
Total ReturnA | 2.81% | 3.71% | 3.48% | 8.57% | 10.33% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | .84% | 1.23% | 1.74% | 1.92% | 2.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21 | $ 30 | $ 49 | $ 44 | $ 108 |
Portfolio turnover rate C | 31% | 40% | 44% | 31% | 40% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 2.4 | 2.8 |
Fidelity Blue Chip Growth Fund | 2.2 | 2.6 |
Fidelity Equity-Income Fund | 3.4 | 3.9 |
Fidelity Large Cap Stock Fund | 2.6 | 2.9 |
Fidelity Series 100 Index Fund | 2.2 | 2.5 |
Fidelity Series Broad Market Opportunities Fund | 3.9 | 4.5 |
Fidelity Series Small Cap Opportunities Fund | 0.3 | 0.4 |
| 17.0 | 19.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.0 | 7.9 |
Fidelity Strategic Real Return Fund | 7.0 | 7.8 |
Fidelity Total Bond Fund | 21.1 | 23.6 |
| 35.1 | 39.3 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 36.2 | 23.7 |
Fidelity Short-Term Bond Fund | 11.7 | 17.4 |
| 47.9 | 41.1 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 17.0% | |
| Investment Grade Fixed-Income Funds | 35.1% | |
| Short-Term Funds | 47.9% | |
Six months ago |
| Domestic Equity Funds | 19.6% | |
| Investment Grade Fixed-Income Funds | 39.3% | |
| Short-Term Funds | 41.1% | |
Expected |
| Domestic Equity Funds | 14.4% | |
| Investment Grade Fixed-Income Funds | 28.9% | |
| Short-Term Funds | 56.7% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2018 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 17.0% |
| Shares | | Value |
Domestic Equity Funds - 17.0% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 8,017 | | $ 169,791 |
Fidelity Blue Chip Growth Fund (b) | 2,385 | | 159,132 |
Fidelity Equity-Income Fund (b) | 4,015 | | 246,066 |
Fidelity Large Cap Stock Fund (b) | 6,690 | | 185,321 |
Fidelity Series 100 Index Fund (b) | 12,716 | | 161,744 |
Fidelity Series Broad Market Opportunities Fund (b) | 18,266 | | 280,568 |
Fidelity Series Small Cap Opportunities Fund (b) | 1,825 | | 23,652 |
TOTAL EQUITY FUNDS (Cost $879,525) |
1,226,274
|
Fixed-Income Funds - 35.1% |
| | | |
Investment Grade Fixed-Income Funds - 35.1% |
Fidelity Government Income Fund (b) | 48,886 | | 506,949 |
Fidelity Strategic Real Return Fund (b) | 52,401 | | 501,479 |
Fidelity Total Bond Fund (b) | 142,278 | | 1,519,533 |
TOTAL FIXED-INCOME FUNDS (Cost $2,511,070) |
2,527,961
|
Short-Term Funds - 47.9% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 2,605,957 | | $ 2,605,957 |
Fidelity Short-Term Bond Fund (b) | 97,765 | | 839,804 |
TOTAL SHORT-TERM FUNDS (Cost $3,435,750) |
3,445,761
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,826,345) | | 7,199,996 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (982) |
NET ASSETS - 100% | $ 7,199,014 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 47,187 | $ 5,629 | $ 57,187 | $ 254 | $ - |
Fidelity Advisor Mid Cap II Fund Institutional Class | 170,368 | 118,733 | 123,091 | 180 | 169,791 |
Fidelity Blue Chip Growth Fund | 157,814 | 101,020 | 120,825 | 645 | 159,132 |
Fidelity Equity-Income Fund | 242,856 | 139,162 | 160,775 | 6,486 | 246,066 |
Fidelity Government Income Fund | 472,175 | 274,168 | 245,466 | 8,281 | 506,949 |
Fidelity Institutional Money Market Portfolio Institutional Class | 1,057,338 | 2,113,477 | 564,855 | 1,359 | 2,605,957 |
Fidelity Large Cap Stock Fund | 182,263 | 112,781 | 133,101 | 1,689 | 185,321 |
Fidelity Series 100 Index Fund | 157,461 | 90,823 | 109,027 | 3,131 | 161,744 |
Fidelity Series Broad Market Opportunities Fund | 278,946 | 157,451 | 199,870 | 1,275 | 280,568 |
Fidelity Series Small Cap Opportunities Fund | 24,159 | 16,550 | 16,406 | 6 | 23,652 |
Fidelity Short-Term Bond Fund | 1,058,027 | 639,371 | 861,848 | 9,631 | 839,804 |
Fidelity Strategic Real Return Fund | 472,164 | 277,554 | 259,580 | 10,301 | 501,479 |
Fidelity Total Bond Fund | 1,417,756 | 843,117 | 757,134 | 44,217 | 1,519,533 |
Total | $ 5,738,514 | $ 4,889,836 | $ 3,609,165 | $ 87,455 | $ 7,199,996 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2018 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,826,345) - See accompanying schedule | | $ 7,199,996 |
Receivable for fund shares sold | | 75,060 |
Total assets | | 7,275,056 |
| | |
Liabilities | | |
Payable for investments purchased | $ 75,003 | |
Distribution and service plan fees payable | 1,039 | |
Total liabilities | | 76,042 |
| | |
Net Assets | | $ 7,199,014 |
Net Assets consist of: | | |
Paid in capital | | $ 7,208,238 |
Undistributed net investment income | | 1,164 |
Accumulated undistributed net realized gain (loss) on investments | | (384,039) |
Net unrealized appreciation (depreciation) on investments | | 373,651 |
Net Assets | | $ 7,199,014 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($867,777 ÷ 15,933.42 shares) | | $ 54.46 |
| | |
Maximum offering price per share (100/94.25 of $54.46) | | $ 57.78 |
Class T:
Net Asset Value and redemption price per share ($444,068 ÷ 8,151.69 shares) | | $ 54.48 |
| | |
Maximum offering price per share (100/96.50 of $54.48) | | $ 56.46 |
| | |
Class C:
Net Asset Value and offering price per share ($787,366 ÷ 14,484.47 shares)A | | $ 54.36 |
| | |
Income Replacement 2018:
Net Asset Value, offering price and redemption price per share ($4,665,488 ÷ 85,647.76 shares) | | $ 54.47 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($434,315 ÷ 7,972.24 shares) | | $ 54.48 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 87,455 |
| | |
Expenses | | |
Distribution and service plan fees | $ 9,804 | |
Independent trustees' compensation | 25 | |
Total expenses before reductions | 9,829 | |
Expense reductions | (25) | 9,804 |
Net investment income (loss) | | 77,651 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 43,817 | |
Capital gain distributions from underlying funds | 68,215 | |
Total net realized gain (loss) | | 112,032 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 136,996 |
Net gain (loss) | | 249,028 |
Net increase (decrease) in net assets resulting from operations | | $ 326,679 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 77,651 | $ 86,163 |
Net realized gain (loss) | 112,032 | 140,568 |
Change in net unrealized appreciation (depreciation) | 136,996 | 92,673 |
Net increase (decrease) in net assets resulting from operations | 326,679 | 319,404 |
Distributions to shareholders from net investment income | (77,552) | (86,074) |
Distributions to shareholders from net realized gain | (9,595) | (32,209) |
Total distributions | (87,147) | (118,283) |
Share transactions - net increase (decrease) | 1,221,542 | (166,169) |
Total increase (decrease) in net assets | 1,461,074 | 34,952 |
| | |
Net Assets | | |
Beginning of period | 5,737,940 | 5,702,988 |
End of period (including undistributed net investment income of $1,164 and undistributed net investment income of $1,066, respectively) | $ 7,199,014 | $ 5,737,940 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.45 | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .588 | .719 | .774 | .836 | .836 |
Net realized and unrealized gain (loss) | 2.080 | 2.135 | .909 | 3.655 | 3.763 |
Total from investment operations | 2.668 | 2.854 | 1.683 | 4.491 | 4.599 |
Distributions from net investment income | (.579) | (.705) | (.765) | (.834) | (.839) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.658) | (.994) | (.963) | (1.071) | (.959) |
Net asset value, end of period | $ 54.46 | $ 52.45 | $ 50.59 | $ 49.87 | $ 46.45 |
Total ReturnA, B | 5.11% | 5.70% | 3.45% | 9.73% | 10.80% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.10% | 1.39% | 1.57% | 1.71% | 1.83% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 868 | $ 774 | $ 762 | $ 784 | $ 1,147 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.48 | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .454 | .589 | .651 | .716 | .722 |
Net realized and unrealized gain (loss) | 2.085 | 2.133 | .909 | 3.664 | 3.759 |
Total from investment operations | 2.539 | 2.722 | 1.560 | 4.380 | 4.481 |
Distributions from net investment income | (.460) | (.573) | (.642) | (.723) | (.711) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.539) | (.862) | (.840) | (.960) | (.831) |
Net asset value, end of period | $ 54.48 | $ 52.48 | $ 50.62 | $ 49.90 | $ 46.48 |
Total ReturnA, B | 4.86% | 5.43% | 3.19% | 9.48% | 10.51% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .85% | 1.14% | 1.32% | 1.46% | 1.58% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 444 | $ 101 | $ 128 | $ 148 | $ 52 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.38 | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .187 | .330 | .403 | .469 | .495 |
Net realized and unrealized gain (loss) | 2.073 | 2.129 | .912 | 3.659 | 3.760 |
Total from investment operations | 2.260 | 2.459 | 1.315 | 4.128 | 4.255 |
Distributions from net investment income | (.201) | (.350) | (.407) | (.471) | (.505) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.280) | (.639) | (.605) | (.708) | (.625) |
Net asset value, end of period | $ 54.36 | $ 52.38 | $ 50.56 | $ 49.85 | $ 46.43 |
Total ReturnA, B | 4.32% | 4.90% | 2.68% | 8.93% | 9.98% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .35% | .64% | .82% | .96% | 1.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 787 | $ 498 | $ 439 | $ 226 | $ 201 |
Portfolio turnover rate D | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2018
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.46 | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .722 | .848 | .898 | .960 | .950 |
Net realized and unrealized gain (loss) | 2.081 | 2.135 | .908 | 3.657 | 3.761 |
Total from investment operations | 2.803 | 2.983 | 1.806 | 4.617 | 4.711 |
Distributions from net investment income | (.714) | (.834) | (.888) | (.960) | (.951) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.793) | (1.123) | (1.086) | (1.197) | (1.071) |
Net asset value, end of period | $ 54.47 | $ 52.46 | $ 50.60 | $ 49.88 | $ 46.46 |
Total ReturnA | 5.38% | 5.96% | 3.71% | 10.01% | 11.07% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.35% | 1.64% | 1.82% | 1.96% | 2.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,665 | $ 3,875 | $ 3,904 | $ 3,806 | $ 3,681 |
Portfolio turnover rate C | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.46 | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .722 | .849 | .891 | .959 | .950 |
Net realized and unrealized gain (loss) | 2.091 | 2.124 | .915 | 3.668 | 3.761 |
Total from investment operations | 2.813 | 2.973 | 1.806 | 4.627 | 4.711 |
Distributions from net investment income | (.714) | (.834) | (.888) | (.960) | (.951) |
Distributions from net realized gain | (.079) | (.289) | (.198) | (.237) | (.120) |
Total distributions | (.793) | (1.123) | (1.086) | (1.197) | (1.071) |
Net asset value, end of period | $ 54.48 | $ 52.46 | $ 50.61 | $ 49.89 | $ 46.46 |
Total ReturnA | 5.40% | 5.94% | 3.71% | 10.03% | 11.07% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.35% | 1.64% | 1.82% | 1.96% | 2.08% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 434 | $ 491 | $ 470 | $ 320 | $ 350 |
Portfolio turnover rate C | 56% | 41% | 44% | 39% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2020 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 3.3 | 3.6 |
Fidelity Blue Chip Growth Fund | 3.1 | 3.4 |
Fidelity Equity-Income Fund | 4.8 | 5.1 |
Fidelity Large Cap Stock Fund | 3.7 | 3.8 |
Fidelity Series 100 Index Fund | 3.2 | 3.3 |
Fidelity Series Broad Market Opportunities Fund | 5.5 | 6.0 |
Fidelity Series Small Cap Opportunities Fund | 0.5 | 0.5 |
| 24.1 | 25.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 2.2 | 2.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 8.4 | 8.3 |
Fidelity Strategic Real Return Fund | 8.4 | 8.3 |
Fidelity Total Bond Fund | 25.2 | 24.8 |
| 42.0 | 41.4 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 15.9 | 15.1 |
Fidelity Short-Term Bond Fund | 15.8 | 15.3 |
| 31.7 | 30.4 |
Net Other Assets (Liabilities) | 0.0* | 0.1 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 24.1% | |
| International Equity Funds | 2.2% | |
 | Investment Grade Fixed-Income Funds | 42.0% | |
| Short-Term Funds | 31.7% | |
Six months ago |
| Domestic Equity Funds | 25.7% | |
| International Equity Funds | 2.4% | |
| Investment Grade Fixed-Income Funds | 41.4% | |
 | Short-Term Funds | 30.4% | |
| Net Other Assets (Liabilities) | 0.1% | |
Expected |
| Domestic Equity Funds | 22.6% | |
| International Equity Funds | 1.8% | |
| Investment Grade Fixed-Income Funds | 42.4% | |
| Short-Term Funds | 33.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2020 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 26.3% |
| Shares | | Value |
Domestic Equity Funds - 24.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 13,552 | | $ 287,033 |
Fidelity Blue Chip Growth Fund (b) | 4,051 | | 270,231 |
Fidelity Equity-Income Fund (b) | 6,808 | | 417,164 |
Fidelity Large Cap Stock Fund (b) | 11,344 | | 314,227 |
Fidelity Series 100 Index Fund (b) | 21,591 | | 274,642 |
Fidelity Series Broad Market Opportunities Fund (b) | 30,995 | | 476,090 |
Fidelity Series Small Cap Opportunities Fund (b) | 3,063 | | 39,701 |
TOTAL DOMESTIC EQUITY FUNDS | | 2,079,088 |
International Equity Funds - 2.2% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 4,650 | | 185,587 |
TOTAL EQUITY FUNDS (Cost $1,572,478) |
2,264,675
|
Fixed-Income Funds - 42.0% |
| | | |
Investment Grade Fixed-Income Funds - 42.0% |
Fidelity Government Income Fund (b) | 69,841 | | 724,255 |
Fidelity Strategic Real Return Fund (b) | 74,862 | | 716,433 |
Fidelity Total Bond Fund (b) | 203,270 | | 2,170,920 |
TOTAL FIXED-INCOME FUNDS (Cost $3,559,346) |
3,611,608
|
Short-Term Funds - 31.7% |
| Shares | | Value |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,367,711 | | $ 1,367,711 |
Fidelity Short-Term Bond Fund (b) | 158,958 | | 1,365,451 |
TOTAL SHORT-TERM FUNDS (Cost $2,718,565) |
2,733,162
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,850,389) | | 8,609,445 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (684) |
NET ASSETS - 100% | $ 8,608,761 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 161,208 | $ 85,686 | $ 76,051 | $ 2,050 | $ 185,587 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 235,797 | 159,857 | 112,621 | 247 | 287,033 |
Fidelity Blue Chip Growth Fund | 218,782 | 136,098 | 113,078 | 910 | 270,231 |
Fidelity Capital & Income Fund | 24,270 | 2,917 | 27,788 | 450 | - |
Fidelity Equity-Income Fund | 336,182 | 187,563 | 141,888 | 9,878 | 417,164 |
Fidelity Government Income Fund | 482,766 | 338,725 | 104,801 | 9,749 | 724,255 |
Fidelity Institutional Money Market Portfolio Institutional Class | 868,607 | 690,149 | 191,044 | 916 | 1,367,711 |
Fidelity Large Cap Stock Fund | 252,502 | 149,402 | 118,913 | 2,483 | 314,227 |
Fidelity Series 100 Index Fund | 218,293 | 119,914 | 95,964 | 4,349 | 274,642 |
Fidelity Series Broad Market Opportunities Fund | 386,860 | 210,150 | 182,188 | 1,752 | 476,090 |
Fidelity Series Small Cap Opportunities Fund | 33,925 | 22,364 | 15,063 | 8 | 39,701 |
Fidelity Short-Term Bond Fund | 869,077 | 685,839 | 192,134 | 9,929 | 1,365,451 |
Fidelity Strategic Income Fund | 24,236 | 2,897 | 27,046 | 363 | - |
Fidelity Strategic Real Return Fund | 482,760 | 338,716 | 118,825 | 12,399 | 716,433 |
Fidelity Total Bond Fund | 1,449,522 | 1,013,908 | 312,929 | 51,698 | 2,170,920 |
Total | $ 6,044,787 | $ 4,144,185 | $ 1,830,333 | $ 107,181 | $ 8,609,445 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2020 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,850,389) - See accompanying schedule | | $ 8,609,445 |
Cash | | 5 |
Receivable for fund shares sold | | 500 |
Total assets | | 8,609,950 |
| | |
Liabilities | | |
Payable for investments purchased | $ 503 | |
Distribution and service plan fees payable | 686 | |
Total liabilities | | 1,189 |
| | |
Net Assets | | $ 8,608,761 |
Net Assets consist of: | | |
Paid in capital | | $ 7,826,939 |
Undistributed net investment income | | 1,732 |
Accumulated undistributed net realized gain (loss) on investments | | 21,034 |
Net unrealized appreciation (depreciation) on investments | | 759,056 |
Net Assets | | $ 8,608,761 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($812,519 ÷ 14,524.12 shares) | | $ 55.94 |
| | |
Maximum offering price per share (100/94.25 of $55.94) | | $ 59.35 |
Class T:
Net Asset Value and redemption price per share ($93,586 ÷ 1,672.60 shares) | | $ 55.95 |
| | |
Maximum offering price per share (100/96.50 of $55.95) | | $ 57.98 |
| | |
Class C:
Net Asset Value and offering price per share ($563,370 ÷ 10,088.81 shares)A | | $ 55.84 |
| | |
Income Replacement 2020:
Net Asset Value, offering price and redemption price per share ($7,052,631 ÷ 126,067.34 shares) | | $ 55.94 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($86,655 ÷ 1,548.95 shares) | | $ 55.94 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 107,181 |
| | |
Expenses | | |
Distribution and service plan fees | $ 6,935 | |
Independent trustees' compensation | 27 | |
Total expenses before reductions | 6,962 | |
Expense reductions | (27) | 6,935 |
Net investment income (loss) | | 100,246 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 20,456 | |
Capital gain distributions from underlying funds | 90,869 | |
Total net realized gain (loss) | | 111,325 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 230,351 |
Net gain (loss) | | 341,676 |
Net increase (decrease) in net assets resulting from operations | | $ 441,922 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2020 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 100,246 | $ 89,832 |
Net realized gain (loss) | 111,325 | 209,360 |
Change in net unrealized appreciation (depreciation) | 230,351 | 125,629 |
Net increase (decrease) in net assets resulting from operations | 441,922 | 424,821 |
Distributions to shareholders from net investment income | (99,649) | (89,581) |
Distributions to shareholders from net realized gain | (50,628) | (25,206) |
Total distributions | (150,277) | (114,787) |
Share transactions - net increase (decrease) | 2,272,722 | 872,079 |
Total increase (decrease) in net assets | 2,564,367 | 1,182,113 |
| | |
Net Assets | | |
Beginning of period | 6,044,394 | 4,862,281 |
End of period (including distributions in excess of net investment income of $1,732 and undistributed net investment income of $1,135, respectively) | $ 8,608,761 | $ 6,044,394 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .674 | .770 | .793 | .817 | .812 |
Net realized and unrealized gain (loss) | 2.766 | 3.157 | .884 | 4.128 | 3.930 |
Total from investment operations | 3.440 | 3.927 | 1.677 | 4.945 | 4.742 |
Distributions from net investment income | (.670) | (.774) | (.794) | (.826) | (.817) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.090) | (1.027) | (.977) | (1.045) | (.932) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 |
Total ReturnA, B | 6.48% | 7.84% | 3.44% | 10.79% | 11.27% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.23% | 1.47% | 1.61% | 1.67% | 1.79% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 813 | $ 411 | $ 408 | $ 436 | $ 607 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .537 | .639 | .670 | .696 | .696 |
Net realized and unrealized gain (loss) | 2.770 | 3.145 | .885 | 4.135 | 3.928 |
Total from investment operations | 3.307 | 3.784 | 1.555 | 4.831 | 4.624 |
Distributions from net investment income | (.527) | (.631) | (.672) | (.712) | (.699) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (.947) | (.884) | (.855) | (.931) | (.814) |
Net asset value, end of period | $ 55.95 | $ 53.59 | $ 50.69 | $ 49.99 | $ 46.09 |
Total ReturnA, B | 6.22% | 7.54% | 3.18% | 10.54% | 10.98% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | .98% | 1.22% | 1.36% | 1.42% | 1.54% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 94 | $ 101 | $ 189 | $ 196 | $ 134 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.51 | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .262 | .377 | .422 | .449 | .473 |
Net realized and unrealized gain (loss) | 2.759 | 3.151 | .876 | 4.132 | 3.923 |
Total from investment operations | 3.021 | 3.528 | 1.298 | 4.581 | 4.396 |
Distributions from net investment income | (.271) | (.415) | (.435) | (.452) | (.481) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (.691) | (.668) | (.618) | (.671) | (.596) |
Net asset value, end of period | $ 55.84 | $ 53.51 | $ 50.65 | $ 49.97 | $ 46.06 |
Total ReturnA, B | 5.68% | 7.02% | 2.65% | 9.98% | 10.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .48% | .72% | .86% | .92% | 1.05% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 563 | $ 322 | $ 306 | $ 228 | $ 295 |
Portfolio turnover rate D | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2020
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .813 | .901 | .917 | .942 | .925 |
Net realized and unrealized gain (loss) | 2.762 | 3.160 | .874 | 4.138 | 3.919 |
Total from investment operations | 3.575 | 4.061 | 1.791 | 5.080 | 4.844 |
Distributions from net investment income | (.805) | (.908) | (.918) | (.951) | (.929) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.225) | (1.161) | (1.101) | (1.170) | (1.044) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 |
Total ReturnA | 6.74% | 8.11% | 3.68% | 11.10% | 11.52% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.48% | 1.72% | 1.86% | 1.92% | 2.04% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,053 | $ 5,196 | $ 3,945 | $ 3,079 | $ 2,225 |
Portfolio turnover rate C | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .814 | .901 | .917 | .939 | .928 |
Net realized and unrealized gain (loss) | 2.761 | 3.160 | .874 | 4.141 | 3.916 |
Total from investment operations | 3.575 | 4.061 | 1.791 | 5.080 | 4.844 |
Distributions from net investment income | (.805) | (.908) | (.918) | (.951) | (.929) |
Distributions from net realized gain | (.420) | (.253) | (.183) | (.219) | (.115) |
Total distributions | (1.225) | (1.161) | (1.101) | (1.170) | (1.044) |
Net asset value, end of period | $ 55.94 | $ 53.59 | $ 50.69 | $ 50.00 | $ 46.09 |
Total ReturnA | 6.74% | 8.11% | 3.68% | 11.10% | 11.52% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.48% | 1.72% | 1.86% | 1.92% | 2.04% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 87 | $ 14 | $ 13 | $ 32 | $ 49 |
Portfolio turnover rate C | 25% | 44% | 35% | 48% | 38% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.2 | 4.4 |
Fidelity Blue Chip Growth Fund | 4.0 | 4.2 |
Fidelity Equity-Income Fund | 6.2 | 6.4 |
Fidelity Large Cap Stock Fund | 4.6 | 4.7 |
Fidelity Series 100 Index Fund | 4.0 | 4.1 |
Fidelity Series Broad Market Opportunities Fund | 7.0 | 7.3 |
Fidelity Series Small Cap Opportunities Fund | 0.6 | 0.6 |
| 30.6 | 31.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 3.1 | 3.3 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.0 | 1.2 |
Fidelity Strategic Income Fund | 1.1 | 1.2 |
| 2.1 | 2.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.7 | 7.6 |
Fidelity Strategic Real Return Fund | 7.6 | 7.6 |
Fidelity Total Bond Fund | 23.0 | 22.7 |
| 38.3 | 37.9 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 13.0 | 12.3 |
Fidelity Short-Term Bond Fund | 12.9 | 12.4 |
| 25.9 | 24.7 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 30.6% | |
 | International Equity Funds | 3.1% | |
 | High Yield Fixed-Income Funds | 2.1% | |
 | Investment Grade Fixed-Income Funds | 38.3% | |
| Short-Term Funds | 25.9% | |
Six months ago |
| Domestic Equity Funds | 31.7% | |
| International Equity Funds | 3.3% | |
| High Yield Fixed-Income Funds | 2.4% | |
| Investment Grade Fixed-Income Funds | 37.9% | |
| Short-Term Funds | 24.7% | |
Expected |
| Domestic Equity Funds | 29.4% | |
| International Equity Funds | 2.9% | |
| High Yield Fixed-Income Funds | 1.8% | |
| Investment Grade Fixed-Income Funds | 38.9% | |
| Short-Term Funds | 27.0% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2022 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 33.7% |
| Shares | | Value |
Domestic Equity Funds - 30.6% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 21,207 | | $ 449,169 |
Fidelity Blue Chip Growth Fund (b) | 6,327 | | 422,046 |
Fidelity Equity-Income Fund (b) | 10,634 | | 651,661 |
Fidelity Large Cap Stock Fund (b) | 17,711 | | 490,589 |
Fidelity Series 100 Index Fund (b) | 33,684 | | 428,462 |
Fidelity Series Broad Market Opportunities Fund (b) | 48,404 | | 743,479 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,798 | | 62,187 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,247,593 |
International Equity Funds - 3.1% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 8,223 | | 328,196 |
TOTAL EQUITY FUNDS (Cost $3,017,506) |
3,575,789
|
Fixed-Income Funds - 40.4% |
| | | |
High Yield Fixed-Income Funds - 2.1% |
Fidelity Capital & Income Fund (b) | 11,226 | | 112,819 |
Fidelity Strategic Income Fund (b) | 10,193 | | 113,757 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 226,576 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 38.3% |
Fidelity Government Income Fund (b) | 78,465 | | $ 813,681 |
Fidelity Strategic Real Return Fund (b) | 84,147 | | 805,291 |
Fidelity Total Bond Fund (b) | 228,462 | | 2,439,971 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 4,058,943 |
TOTAL FIXED-INCOME FUNDS (Cost $4,273,073) |
4,285,519
|
Short-Term Funds - 25.9% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,372,691 | | 1,372,691 |
Fidelity Short-Term Bond Fund (b) | 159,542 | | 1,370,467 |
TOTAL SHORT-TERM FUNDS (Cost $2,740,201) |
2,743,158
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,030,780) | | 10,604,466 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (368) |
NET ASSETS - 100% | $ 10,604,098 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 178,161 | $ 222,600 | $ 91,090 | $ 2,908 | $ 328,196 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 232,000 | 341,446 | 127,648 | 313 | 449,169 |
Fidelity Blue Chip Growth Fund | 215,074 | 296,975 | 128,335 | 978 | 422,046 |
Fidelity Capital & Income Fund | 63,597 | 79,901 | 34,668 | 4,170 | 112,819 |
Fidelity Equity-Income Fund | 330,881 | 426,726 | 156,026 | 13,415 | 651,661 |
Fidelity Government Income Fund | 360,647 | 571,399 | 126,554 | 9,729 | 813,681 |
Fidelity Institutional Money Market Portfolio Institutional Class | 579,040 | 1,004,010 | 210,360 | 806 | 1,372,691 |
Fidelity Large Cap Stock Fund | 248,520 | 338,314 | 133,423 | 3,449 | 490,589 |
Fidelity Series 100 Index Fund | 214,593 | 271,417 | 102,079 | 5,460 | 428,462 |
Fidelity Series Broad Market Opportunities Fund | 380,009 | 490,484 | 204,957 | 2,219 | 743,479 |
Fidelity Series Small Cap Opportunities Fund | 33,052 | 48,542 | 17,592 | 10 | 62,187 |
Fidelity Short-Term Bond Fund | 579,345 | 999,579 | 210,362 | 8,846 | 1,370,467 |
Fidelity Strategic Income Fund | 63,542 | 79,280 | 30,911 | 3,540 | 113,757 |
Fidelity Strategic Real Return Fund | 360,654 | 556,094 | 126,553 | 12,140 | 805,291 |
Fidelity Total Bond Fund | 1,083,758 | 1,710,607 | 379,538 | 50,948 | 2,439,971 |
Total | $ 4,922,873 | $ 7,437,374 | $ 2,080,096 | $ 118,931 | $ 10,604,466 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2022 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $10,030,780) - See accompanying schedule | | $ 10,604,466 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 368 |
| | |
Net Assets | | $ 10,604,098 |
Net Assets consist of: | | |
Paid in capital | | $ 10,460,528 |
Undistributed net investment income | | 2,228 |
Accumulated undistributed net realized gain (loss) on investments | | (432,344) |
Net unrealized appreciation (depreciation) on investments | | 573,686 |
Net Assets | | $ 10,604,098 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($418,512 ÷ 7,289.28 shares) | | $ 57.41 |
| | |
Maximum offering price per share (100/94.25 of $57.41) | | $ 60.91 |
Class T:
Net Asset Value and redemption price per share ($26,437 ÷ 460.06 shares) | | $ 57.46 |
| | |
Maximum offering price per share (100/96.50 of $57.46) | | $ 59.54 |
| | |
Class C:
Net Asset Value and offering price per share ($324,906 ÷ 5,666.45 shares)A | | $ 57.34 |
| | |
Income Replacement 2022:
Net Asset Value, offering price and redemption price per share ($9,773,612 ÷ 170,235.99 shares) | | $ 57.41 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($60,631 ÷ 1,056.39 shares) | | $ 57.39 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 118,931 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,591 | |
Independent trustees' compensation | 28 | |
Total expenses before reductions | 2,619 | |
Expense reductions | (28) | 2,591 |
Net investment income (loss) | | 116,340 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 426 | |
Capital gain distributions from underlying funds | 108,882 | |
Total net realized gain (loss) | | 109,308 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 323,887 |
Net gain (loss) | | 433,195 |
Net increase (decrease) in net assets resulting from operations | | $ 549,535 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 116,340 | $ 83,094 |
Net realized gain (loss) | 109,308 | 106,528 |
Change in net unrealized appreciation (depreciation) | 323,887 | 240,421 |
Net increase (decrease) in net assets resulting from operations | 549,535 | 430,043 |
Distributions to shareholders from net investment income | (115,076) | (82,827) |
Distributions to shareholders from net realized gain | (15,270) | (22,022) |
Total distributions | (130,346) | (104,849) |
Share transactions - net increase (decrease) | 5,262,153 | 282,835 |
Total increase (decrease) in net assets | 5,681,342 | 608,029 |
| | |
Net Assets | | |
Beginning of period | 4,922,756 | 4,314,727 |
End of period (including undistributed net investment income of $2,228 and undistributed net investment income of $964, respectively) | $ 10,604,098 | $ 4,922,756 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.16 | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .708 | .825 | .783 | .817 | .815 |
Net realized and unrealized gain (loss) | 3.351 | 3.933 | .842 | 4.431 | 3.980 |
Total from investment operations | 4.059 | 4.758 | 1.625 | 5.248 | 4.795 |
Distributions from net investment income | (.686) | (.804) | (.784) | (.824) | (.793) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.809) | (1.058) | (.955) | (1.038) | (1.085) |
Net asset value, end of period | $ 57.41 | $ 54.16 | $ 50.46 | $ 49.79 | $ 45.58 |
Total ReturnA, B | 7.54% | 9.54% | 3.35% | 11.58% | 11.53% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.26% | 1.57% | 1.59% | 1.67% | 1.82% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 419 | $ 391 | $ 386 | $ 72 | $ 42 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.24 | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .581 | .686 | .653 | .691 | .702 |
Net realized and unrealized gain (loss) | 3.339 | 3.958 | .871 | 4.434 | 3.985 |
Total from investment operations | 3.920 | 4.644 | 1.524 | 5.125 | 4.687 |
Distributions from net investment income | (.577) | (.680) | (.643) | (.661) | (.685) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.700) | (.934) | (.814) | (.875) | (.977) |
Net asset value, end of period | $ 57.46 | $ 54.24 | $ 50.53 | $ 49.82 | $ 45.57 |
Total ReturnA, B | 7.26% | 9.29% | 3.13% | 11.30% | 11.27% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .49% F | .49%F | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% F | .49% F | .50% | .50% | .50% |
Expenses net of all reductions | .49% F | .49% F | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.30% | 1.34% | 1.43% | 1.57% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 26 | $ 1 | $ 5 | $ 23 | $ 77 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.13 | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .293 | .434 | .411 | .447 | .477 |
Net realized and unrealized gain (loss) | 3.354 | 3.919 | .845 | 4.434 | 3.989 |
Total from investment operations | 3.647 | 4.353 | 1.256 | 4.881 | 4.466 |
Distributions from net investment income | (.314) | (.459) | (.405) | (.437) | (.454) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.437) | (.713) | (.576) | (.651) | (.746) |
Net asset value, end of period | $ 57.34 | $ 54.13 | $ 50.49 | $ 49.81 | $ 45.58 |
Total ReturnA, B | 6.76% | 8.70% | 2.58% | 10.74% | 10.72% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .99% F | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .83% | .84% | .92% | 1.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 325 | $ 54 | $ 28 | $ 32 | $ 44 |
Portfolio turnover rate D | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2022
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.15 | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .851 | .956 | .901 | .937 | .925 |
Net realized and unrealized gain (loss) | 3.358 | 3.922 | .849 | 4.438 | 3.978 |
Total from investment operations | 4.209 | 4.878 | 1.750 | 5.375 | 4.903 |
Distributions from net investment income | (.826) | (.934) | (.899) | (.941) | (.921) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.949) | (1.188) | (1.070) | (1.155) | (1.213) |
Net asset value, end of period | $ 57.41 | $ 54.15 | $ 50.46 | $ 49.78 | $ 45.56 |
Total ReturnA | 7.82% | 9.80% | 3.62% | 11.87% | 11.80% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.51% | 1.82% | 1.84% | 1.92% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 9,774 | $ 4,474 | $ 3,892 | $ 3,266 | $ 2,395 |
Portfolio turnover rate C | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.14 | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | .957 | .900 | .937 | .918 |
Net realized and unrealized gain (loss) | 3.343 | 3.921 | .850 | 4.428 | 3.995 |
Total from investment operations | 4.199 | 4.878 | 1.750 | 5.365 | 4.913 |
Distributions from net investment income | (.826) | (.934) | (.899) | (.941) | (.921) |
Distributions from net realized gain | (.123) | (.254) | (.171) | (.214) | (.292) |
Total distributions | (.949) | (1.188) | (1.070) | (1.155) | (1.213) |
Net asset value, end of period | $ 57.39 | $ 54.14 | $ 50.45 | $ 49.77 | $ 45.56 |
Total ReturnA | 7.81% | 9.80% | 3.62% | 11.85% | 11.83% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.51% | 1.82% | 1.84% | 1.92% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 61 | $ 4 | $ 3 | $ 4 | $ 5 |
Portfolio turnover rate C | 26% | 38% | 43% | 29% | 24% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.9 | 5.0 |
Fidelity Blue Chip Growth Fund | 4.6 | 4.8 |
Fidelity Equity-Income Fund | 7.1 | 7.3 |
Fidelity Large Cap Stock Fund | 5.4 | 5.4 |
Fidelity Series 100 Index Fund | 4.7 | 4.7 |
Fidelity Series Broad Market Opportunities Fund | 8.2 | 8.4 |
Fidelity Series Small Cap Opportunities Fund | 0.7 | 0.7 |
| 35.6 | 36.3 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 4.0 | 4.2 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.5 | 1.6 |
Fidelity Strategic Income Fund | 1.5 | 1.6 |
| 3.0 | 3.2 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 7.1 | 7.1 |
Fidelity Strategic Real Return Fund | 7.1 | 7.1 |
Fidelity Total Bond Fund | 21.5 | 21.3 |
| 35.7 | 35.5 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 10.9 | 10.4 |
Fidelity Short-Term Bond Fund | 10.8 | 10.4 |
| 21.7 | 20.8 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 35.6% | |
| International Equity Funds | 4.0% | |
| High Yield Fixed-Income Funds | 3.0% | |
| Investment Grade Fixed-Income Funds | 35.7% | |
| Short-Term Funds | 21.7% | |
Six months ago |
| Domestic Equity Funds | 36.3% | |
| International Equity Funds | 4.2% | |
| High Yield Fixed-Income Funds | 3.2% | |
| Investment Grade Fixed-Income Funds | 35.5% | |
| Short-Term Funds | 20.8% | |
Expected |
| Domestic Equity Funds | 34.8% | |
| International Equity Funds | 3.9% | |
| High Yield Fixed-Income Funds | 2.8% | |
| Investment Grade Fixed-Income Funds | 36.1% | |
| Short-Term Funds | 22.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2024 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 39.6% |
| Shares | | Value |
Domestic Equity Funds - 35.6% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 17,201 | | $ 364,312 |
Fidelity Blue Chip Growth Fund (b) | 5,133 | | 342,422 |
Fidelity Equity-Income Fund (b) | 8,624 | | 528,460 |
Fidelity Large Cap Stock Fund (b) | 14,376 | | 398,224 |
Fidelity Series 100 Index Fund (b) | 27,347 | | 347,848 |
Fidelity Series Broad Market Opportunities Fund (b) | 39,300 | | 603,649 |
Fidelity Series Small Cap Opportunities Fund (b) | 3,896 | | 50,493 |
TOTAL DOMESTIC EQUITY FUNDS | | 2,635,408 |
International Equity Funds - 4.0% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 7,463 | | 297,865 |
TOTAL EQUITY FUNDS (Cost $2,508,764) |
2,933,273
|
Fixed-Income Funds - 38.7% |
| | | |
High Yield Fixed-Income Funds - 3.0% |
Fidelity Capital & Income Fund (b) | 11,107 | | 111,626 |
Fidelity Strategic Income Fund (b) | 10,087 | | 112,565 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 224,191 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 35.7% |
Fidelity Government Income Fund (b) | 51,191 | | $ 530,848 |
Fidelity Strategic Real Return Fund (b) | 54,882 | | 525,221 |
Fidelity Total Bond Fund (b) | 149,126 | | 1,592,669 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,648,738 |
TOTAL FIXED-INCOME FUNDS (Cost $2,849,362) |
2,872,929
|
Short-Term Funds - 21.7% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 804,815 | | 804,815 |
Fidelity Short-Term Bond Fund (b) | 93,538 | | 803,492 |
TOTAL SHORT-TERM FUNDS (Cost $1,606,215) |
1,608,307
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,964,341) | | 7,414,509 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (257) |
NET ASSETS - 100% | $ 7,414,252 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 130,259 | $ 238,885 | $ 86,374 | $ 2,464 | $ 297,865 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 152,094 | 315,715 | 106,019 | 242 | 364,312 |
Fidelity Blue Chip Growth Fund | 140,772 | 276,127 | 106,491 | 739 | 342,422 |
Fidelity Capital & Income Fund | 48,152 | 92,101 | 32,347 | 3,843 | 111,626 |
Fidelity Equity-Income Fund | 216,692 | 410,995 | 137,777 | 10,389 | 528,460 |
Fidelity Government Income Fund | 196,513 | 420,343 | 91,818 | 6,243 | 530,848 |
Fidelity Institutional Money Market Portfolio Institutional Class | 284,337 | 649,035 | 128,557 | 462 | 804,815 |
Fidelity Large Cap Stock Fund | 162,826 | 319,348 | 112,253 | 2,693 | 398,224 |
Fidelity Series 100 Index Fund | 140,457 | 264,532 | 91,467 | 4,083 | 347,848 |
Fidelity Series Broad Market Opportunities Fund | 249,252 | 466,541 | 173,843 | 1,713 | 603,649 |
Fidelity Series Small Cap Opportunities Fund | 21,797 | 44,355 | 14,317 | 8 | 50,493 |
Fidelity Short-Term Bond Fund | 284,490 | 647,716 | 129,868 | 5,093 | 803,492 |
Fidelity Strategic Income Fund | 48,111 | 90,962 | 28,307 | 3,267 | 112,565 |
Fidelity Strategic Real Return Fund | 196,512 | 419,496 | 101,123 | 7,898 | 525,221 |
Fidelity Total Bond Fund | 589,994 | 1,259,591 | 275,066 | 32,579 | 1,592,669 |
Total | $ 2,862,258 | $ 5,915,742 | $ 1,615,627 | $ 81,716 | $ 7,414,509 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2024 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,964,341) - See accompanying schedule | | $ 7,414,509 |
Receivable for investments sold | | 1 |
Total assets | | 7,414,510 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 258 |
| | |
Net Assets | | $ 7,414,252 |
Net Assets consist of: | | |
Paid in capital | | $ 6,936,406 |
Undistributed net investment income | | 1,495 |
Accumulated undistributed net realized gain (loss) on investments | | 26,183 |
Net unrealized appreciation (depreciation) on investments | | 450,168 |
Net Assets | | $ 7,414,252 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($220,063 ÷ 3,776.13 shares) | | $ 58.28 |
| | |
Maximum offering price per share (100/94.25 of $58.28) | | $ 61.84 |
Class T:
Net Asset Value and redemption price per share ($190,491 ÷ 3,269.05 shares) | | $ 58.27 |
| | |
Maximum offering price per share (100/96.50 of $58.27) | | $ 60.38 |
| | |
Class C:
Net Asset Value and offering price per share ($155,611 ÷ 2,677.87 shares)A | | $ 58.11 |
| | |
Income Replacement 2024:
Net Asset Value, offering price and redemption price per share ($6,818,492 ÷ 117,023.33 shares) | | $ 58.27 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,595 ÷ 507.95 shares) | | $ 58.26 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 81,716 |
| | |
Expenses | | |
Distribution and service plan fees | $ 3,150 | |
Independent trustees' compensation | 19 | |
Total expenses before reductions | 3,169 | |
Expense reductions | (19) | 3,150 |
Net investment income (loss) | | 78,566 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (2,406) | |
Capital gain distributions from underlying funds | 82,811 | |
Total net realized gain (loss) | | 80,405 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 254,535 |
Net gain (loss) | | 334,940 |
Net increase (decrease) in net assets resulting from operations | | $ 413,506 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 78,566 | $ 42,257 |
Net realized gain (loss) | 80,405 | 74,340 |
Change in net unrealized appreciation (depreciation) | 254,535 | 131,901 |
Net increase (decrease) in net assets resulting from operations | 413,506 | 248,498 |
Distributions to shareholders from net investment income | (77,576) | (42,100) |
Distributions to shareholders from net realized gain | (28,499) | (9,399) |
Total distributions | (106,075) | (51,499) |
Share transactions - net increase (decrease) | 4,244,822 | 561,492 |
Total increase (decrease) in net assets | 4,552,253 | 758,491 |
| | |
Net Assets | | |
Beginning of period | 2,861,999 | 2,103,508 |
End of period (including undistributed net investment income of $1,495 and undistributed net investment income of $505, respectively) | $ 7,414,252 | $ 2,861,999 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .718 | .840 | .821 | .809 | .811 |
Net realized and unrealized gain (loss) | 3.808 | 4.571 | .771 | 4.667 | 4.020 |
Total from investment operations | 4.526 | 5.411 | 1.592 | 5.476 | 4.831 |
Distributions from net investment income | (.677) | (.900) | (.794) | (.819) | (.791) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.016) | (1.121) | (.962) | (1.036) | (.901) |
Net asset value, end of period | $ 58.28 | $ 54.77 | $ 50.48 | $ 49.85 | $ 45.41 |
Total ReturnA, B | 8.32% | 10.86% | 3.29% | 12.13% | 11.70% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.59% | 1.68% | 1.66% | 1.82% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 220 | $ 424 | $ 213 | $ 187 | $ 260 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.78 | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .579 | .706 | .699 | .685 | .701 |
Net realized and unrealized gain (loss) | 3.796 | 4.576 | .769 | 4.672 | 4.025 |
Total from investment operations | 4.375 | 5.282 | 1.468 | 5.357 | 4.726 |
Distributions from net investment income | (.546) | (.771) | (.680) | (.690) | (.676) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (.885) | (.992) | (.848) | (.907) | (.786) |
Net asset value, end of period | $ 58.27 | $ 54.78 | $ 50.49 | $ 49.87 | $ 45.42 |
Total ReturnA, B | 8.04% | 10.59% | 3.03% | 11.85% | 11.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.34% | 1.43% | 1.41% | 1.57% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 190 | $ 190 | $ 175 | $ 40 | $ 54 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.66 | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .295 | .444 | .454 | .443 | .476 |
Net realized and unrealized gain (loss) | 3.791 | 4.564 | .761 | 4.668 | 4.020 |
Total from investment operations | 4.086 | 5.008 | 1.215 | 5.111 | 4.496 |
Distributions from net investment income | (.297) | (.557) | (.437) | (.454) | (.456) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (.636) | (.778) | (.605) | (.671) | (.566) |
Net asset value, end of period | $ 58.11 | $ 54.66 | $ 50.43 | $ 49.82 | $ 45.38 |
Total ReturnA, B | 7.51% | 10.03% | 2.50% | 11.30% | 10.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .84% | .93% | .91% | 1.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 156 | $ 113 | $ 170 | $ 172 | $ 159 |
Portfolio turnover rate D | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2024
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .866 | .969 | .942 | .933 | .924 |
Net realized and unrealized gain (loss) | 3.805 | 4.563 | .775 | 4.668 | 4.020 |
Total from investment operations | 4.671 | 5.532 | 1.717 | 5.601 | 4.944 |
Distributions from net investment income | (.832) | (1.031) | (.919) | (.944) | (.904) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.171) | (1.252) | (1.087) | (1.161) | (1.014) |
Net asset value, end of period | $ 58.27 | $ 54.77 | $ 50.49 | $ 49.86 | $ 45.42 |
Total ReturnA | 8.60% | 11.12% | 3.55% | 12.41% | 11.98% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.84% | 1.93% | 1.91% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,818 | $ 2,108 | $ 1,521 | $ 1,463 | $ 1,026 |
Portfolio turnover rate C | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.77 | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .863 | .969 | .944 | .930 | .922 |
Net realized and unrealized gain (loss) | 3.798 | 4.573 | .763 | 4.671 | 4.032 |
Total from investment operations | 4.661 | 5.542 | 1.707 | 5.601 | 4.954 |
Distributions from net investment income | (.832) | (1.031) | (.919) | (.944) | (.904) |
Distributions from net realized gain | (.339) | (.221) | (.168) | (.217) | (.110) |
Total distributions | (1.171) | (1.252) | (1.087) | (1.161) | (1.014) |
Net asset value, end of period | $ 58.26 | $ 54.77 | $ 50.48 | $ 49.86 | $ 45.42 |
Total ReturnA | 8.58% | 11.14% | 3.53% | 12.41% | 12.00% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.84% | 1.93% | 1.91% | 2.07% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30 | $ 27 | $ 25 | $ 28 | $ 37 |
Portfolio turnover rate C | 30% | 49% | 65% | 26% | 34% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2026 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.4 | 5.5 |
Fidelity Blue Chip Growth Fund | 5.1 | 5.2 |
Fidelity Equity-Income Fund | 7.8 | 7.9 |
Fidelity Large Cap Stock Fund | 5.9 | 5.8 |
Fidelity Series 100 Index Fund | 5.2 | 5.1 |
Fidelity Series Broad Market Opportunities Fund | 8.9 | 9.1 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 39.1 | 39.4 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 4.9 | 5.0 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 1.8 | 1.9 |
Fidelity Strategic Income Fund | 1.9 | 2.0 |
| 3.7 | 3.9 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.7 | 6.7 |
Fidelity Strategic Real Return Fund | 6.7 | 6.7 |
Fidelity Total Bond Fund | 20.2 | 20.1 |
| 33.6 | 33.5 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 9.4 | 9.1 |
Fidelity Short-Term Bond Fund | 9.3 | 9.1 |
| 18.7 | 18.2 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 39.1% | |
| International Equity Funds | 4.9% | |
| High Yield Fixed-Income Funds | 3.7% | |
| Investment Grade Fixed-Income Funds | 33.6% | |
| Short-Term Funds | 18.7% | |
Six months ago |
| Domestic Equity Funds | 39.4% | |
| International Equity Funds | 5.0% | |
| High Yield Fixed-Income Funds | 3.9% | |
| Investment Grade Fixed-Income Funds | 33.5% | |
| Short-Term Funds | 18.2% | |
Expected |
| Domestic Equity Funds | 38.6% | |
| International Equity Funds | 4.8% | |
| High Yield Fixed-Income Funds | 3.6% | |
| Investment Grade Fixed-Income Funds | 33.8% | |
| Short-Term Funds | 19.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2026 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 44.0% |
| Shares | | Value |
Domestic Equity Funds - 39.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 10,973 | | $ 232,405 |
Fidelity Blue Chip Growth Fund (b) | 3,277 | | 218,622 |
Fidelity Equity-Income Fund (b) | 5,509 | | 337,591 |
Fidelity Large Cap Stock Fund (b) | 9,179 | | 254,270 |
Fidelity Series 100 Index Fund (b) | 17,466 | | 222,168 |
Fidelity Series Broad Market Opportunities Fund (b) | 25,054 | | 384,827 |
Fidelity Series Small Cap Opportunities Fund (b) | 2,484 | | 32,194 |
TOTAL DOMESTIC EQUITY FUNDS | | 1,682,077 |
International Equity Funds - 4.9% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 5,287 | | 210,994 |
TOTAL EQUITY FUNDS (Cost $1,578,763) |
1,893,071
|
Fixed-Income Funds - 37.3% |
| | | |
High Yield Fixed-Income Funds - 3.7% |
Fidelity Capital & Income Fund (b) | 7,870 | | 79,097 |
Fidelity Strategic Income Fund (b) | 7,148 | | 79,769 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 158,866 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 33.6% |
Fidelity Government Income Fund (b) | 27,997 | | $ 290,332 |
Fidelity Strategic Real Return Fund (b) | 30,013 | | 287,224 |
Fidelity Total Bond Fund (b) | 81,404 | | 869,392 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 1,446,948 |
TOTAL FIXED-INCOME FUNDS (Cost $1,597,401) |
1,605,814
|
Short-Term Funds - 18.7% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 403,677 | | 403,677 |
Fidelity Short-Term Bond Fund (b) | 46,916 | | 403,012 |
TOTAL SHORT-TERM FUNDS (Cost $805,484) |
806,689
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,981,648) | | 4,305,574 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (159) |
NET ASSETS - 100% | $ 4,305,415 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 116,306 | $ 138,069 | $ 55,931 | $ 2,032 | $ 210,994 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 122,791 | 170,742 | 62,841 | 176 | 232,405 |
Fidelity Blue Chip Growth Fund | 113,623 | 147,478 | 64,256 | 563 | 218,622 |
Fidelity Capital & Income Fund | 42,166 | 53,275 | 19,282 | 2,990 | 79,097 |
Fidelity Equity-Income Fund | 174,916 | 215,926 | 80,406 | 7,318 | 337,591 |
Fidelity Government Income Fund | 139,572 | 198,275 | 51,037 | 3,807 | 290,332 |
Fidelity Institutional Money Market Portfolio Institutional Class | 187,282 | 285,157 | 68,762 | 262 | 403,677 |
Fidelity Large Cap Stock Fund | 131,270 | 167,238 | 65,509 | 1,874 | 254,270 |
Fidelity Series 100 Index Fund | 113,368 | 136,468 | 51,936 | 3,028 | 222,168 |
Fidelity Series Broad Market Opportunities Fund | 201,073 | 241,697 | 101,814 | 1,247 | 384,827 |
Fidelity Series Small Cap Opportunities Fund | 17,439 | 24,480 | 8,713 | 6 | 32,194 |
Fidelity Short-Term Bond Fund | 187,589 | 284,619 | 70,066 | 2,866 | 403,012 |
Fidelity Strategic Income Fund | 42,132 | 53,994 | 17,690 | 2,537 | 79,769 |
Fidelity Strategic Real Return Fund | 139,573 | 197,421 | 56,197 | 4,763 | 287,224 |
Fidelity Total Bond Fund | 419,449 | 592,462 | 153,021 | 20,004 | 869,392 |
Total | $ 2,148,549 | $ 2,907,301 | $ 927,461 | $ 53,473 | $ 4,305,574 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2026 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $3,981,648) - See accompanying schedule | | $ 4,305,574 |
Receivable for investments sold | | 2,162 |
Receivable for fund shares sold | | 19,997 |
Total assets | | 4,327,733 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,778 | |
Payable for fund shares redeemed | 2,387 | |
Distribution and service plan fees payable | 153 | |
Total liabilities | | 22,318 |
| | |
Net Assets | | $ 4,305,415 |
Net Assets consist of: | | |
Paid in capital | | $ 4,104,117 |
Undistributed net investment income | | 821 |
Accumulated undistributed net realized gain (loss) on investments | | (123,449) |
Net unrealized appreciation (depreciation) on investments | | 323,926 |
Net Assets | | $ 4,305,415 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($526,026 ÷ 8,949.10 shares) | | $ 58.78 |
| | |
Maximum offering price per share (100/94.25 of $58.78) | | $ 62.37 |
Class T:
Net Asset Value and redemption price per share ($39,322 ÷ 668.36 shares) | | $ 58.83 |
| | |
Maximum offering price per share (100/96.50 of $58.83) | | $ 60.96 |
| | |
Class C:
Net Asset Value and offering price per share ($32,961 ÷ 561.58 shares)A | | $ 58.69 |
| | |
Income Replacement 2026:
Net Asset Value, offering price and redemption price per share ($3,677,301 ÷ 62,548.31 shares) | | $ 58.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($29,805 ÷ 506.97 shares) | | $ 58.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 53,473 |
| | |
Expenses | | |
Distribution and service plan fees | $ 1,692 | |
Independent trustees' compensation | 13 | |
Total expenses before reductions | 1,705 | |
Expense reductions | (13) | 1,692 |
Net investment income (loss) | | 51,781 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (6,274) | |
Capital gain distributions from underlying funds | 59,550 | |
Total net realized gain (loss) | | 53,276 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 183,459 |
Net gain (loss) | | 236,735 |
Net increase (decrease) in net assets resulting from operations | | $ 288,516 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 51,781 | $ 37,055 |
Net realized gain (loss) | 53,276 | 58,944 |
Change in net unrealized appreciation (depreciation) | 183,459 | 132,987 |
Net increase (decrease) in net assets resulting from operations | 288,516 | 228,986 |
Distributions to shareholders from net investment income | (51,362) | (36,935) |
Distributions to shareholders from net realized gain | (8,328) | (8,863) |
Total distributions | (59,690) | (45,798) |
Share transactions - net increase (decrease) | 1,928,159 | 186,174 |
Total increase (decrease) in net assets | 2,156,985 | 369,362 |
| | |
Net Assets | | |
Beginning of period | 2,148,430 | 1,779,068 |
End of period (including undistributed net investment income of $821 and undistributed net investment income of $401, respectively) | $ 4,305,415 | $ 2,148,430 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .735 | .906 | .793 | .750 | .743 |
Net realized and unrealized gain (loss) | 4.084 | 4.920 | .712 | 4.846 | 4.098 |
Total from investment operations | 4.819 | 5.826 | 1.505 | 5.596 | 4.841 |
Distributions from net investment income | (.708) | (.879) | (.789) | (.796) | (.771) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.849) | (1.106) | (.945) | (.996) | (.881) |
Net asset value, end of period | $ 58.78 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.93 |
Total ReturnA, B | 8.84% | 11.79% | 3.13% | 12.52% | 11.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.28% | 1.73% | 1.64% | 1.55% | 1.68% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 526 | $ 304 | $ 139 | $ 108 | $ 45 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.82 | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .587 | .781 | .668 | .630 | .638 |
Net realized and unrealized gain (loss) | 4.098 | 4.911 | .713 | 4.851 | 4.092 |
Total from investment operations | 4.685 | 5.692 | 1.381 | 5.481 | 4.730 |
Distributions from net investment income | (.534) | (.725) | (.675) | (.671) | (.670) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.675) | (.952) | (.831) | (.871) | (.780) |
Net asset value, end of period | $ 58.83 | $ 54.82 | $ 50.08 | $ 49.53 | $ 44.92 |
Total ReturnA, B | 8.58% | 11.50% | 2.87% | 12.26% | 11.59% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.03% | 1.48% | 1.39% | 1.30% | 1.44% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39 | $ 85 | $ 298 | $ 130 | $ 116 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.76 | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .303 | .508 | .430 | .387 | .412 |
Net realized and unrealized gain (loss) | 4.086 | 4.915 | .730 | 4.848 | 4.087 |
Total from investment operations | 4.389 | 5.423 | 1.160 | 5.235 | 4.499 |
Distributions from net investment income | (.318) | (.556) | (.374) | (.435) | (.449) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.459) | (.783) | (.530) | (.635) | (.559) |
Net asset value, end of period | $ 58.69 | $ 54.76 | $ 50.12 | $ 49.49 | $ 44.89 |
Total ReturnA, B | 8.04% | 10.93% | 2.40% | 11.70% | 11.01% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .53% | .97% | .89% | .80% | .94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 33 | $ 31 | $ 9 | $ 184 | $ 174 |
Portfolio turnover rate D | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2026
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss)B | .878 | 1.040 | .913 | .878 | .856 |
Net realized and unrealized gain (loss) | 4.094 | 4.914 | .711 | 4.844 | 4.091 |
Total from investment operations | 4.972 | 5.954 | 1.624 | 5.722 | 4.947 |
Distributions from net investment income | (.851) | (1.007) | (.908) | (.912) | (.887) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.992) | (1.234) | (1.064) | (1.112) | (.997) |
Net asset value, end of period | $ 58.79 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 |
Total ReturnA | 9.13% | 12.06% | 3.39% | 12.82% | 12.14% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 1.98% | 1.88% | 1.80% | 1.94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,677 | $ 1,702 | $ 1,309 | $ 1,666 | $ 622 |
Portfolio turnover rate C | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .877 | 1.039 | .912 | .870 | .855 |
Net realized and unrealized gain (loss) | 4.095 | 4.915 | .712 | 4.852 | 4.092 |
Total from investment operations | 4.972 | 5.954 | 1.624 | 5.722 | 4.947 |
Distributions from net investment income | (.851) | (1.007) | (.908) | (.912) | (.887) |
Distributions from net realized gain | (.141) | (.227) | (.156) | (.200) | (.110) |
Total distributions | (.992) | (1.234) | (1.064) | (1.112) | (.997) |
Net asset value, end of period | $ 58.79 | $ 54.81 | $ 50.09 | $ 49.53 | $ 44.92 |
Total ReturnA | 9.13% | 12.06% | 3.39% | 12.82% | 12.14% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 1.98% | 1.88% | 1.80% | 1.94% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 30 | $ 27 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 27% | 45% | 60% | 25% | 61% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.7 | 5.8 |
Fidelity Blue Chip Growth Fund | 5.4 | 5.4 |
Fidelity Equity-Income Fund | 8.3 | 8.3 |
Fidelity Large Cap Stock Fund | 6.2 | 6.2 |
Fidelity Series 100 Index Fund | 5.4 | 5.3 |
Fidelity Series Broad Market Opportunities Fund | 9.5 | 9.6 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 41.3 | 41.4 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 5.7 | 5.8 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.0 | 2.1 |
Fidelity Strategic Income Fund | 2.1 | 2.2 |
| 4.1 | 4.3 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.4 | 6.4 |
Fidelity Strategic Real Return Fund | 6.4 | 6.4 |
Fidelity Total Bond Fund | 19.3 | 19.1 |
| 32.1 | 31.9 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 8.4 | 8.3 |
Fidelity Short-Term Bond Fund | 8.4 | 8.3 |
| 16.8 | 16.6 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 41.3% | |
| International Equity Funds | 5.7% | |
| High Yield Fixed-Income Funds | 4.1% | |
| Investment Grade Fixed-Income Funds | 32.1% | |
| Short-Term Funds | 16.8% | |
Six months ago |
| Domestic Equity Funds | 41.4% | |
| International Equity Funds | 5.8% | |
| High Yield Fixed-Income Funds | 4.3% | |
| Investment Grade Fixed-Income Funds | 31.9% | |
| Short-Term Funds | 16.6% | |
Expected |
| Domestic Equity Funds | 41.3% | |
| International Equity Funds | 5.6% | |
| High Yield Fixed-Income Funds | 4.0% | |
| Investment Grade Fixed-Income Funds | 32.1% | |
| Short-Term Funds | 17.0% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2028 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 47.0% |
| Shares | | Value |
Domestic Equity Funds - 41.3% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 61,791 | | $ 1,308,725 |
Fidelity Blue Chip Growth Fund (b) | 18,421 | | 1,228,892 |
Fidelity Equity-Income Fund (b) | 30,988 | | 1,898,967 |
Fidelity Large Cap Stock Fund (b) | 51,633 | | 1,430,243 |
Fidelity Series 100 Index Fund (b) | 98,080 | | 1,247,581 |
Fidelity Series Broad Market Opportunities Fund (b) | 141,073 | | 2,166,880 |
Fidelity Series Small Cap Opportunities Fund (b) | 14,098 | | 182,716 |
TOTAL DOMESTIC EQUITY FUNDS | | 9,464,004 |
International Equity Funds - 5.7% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 32,745 | | 1,306,846 |
TOTAL EQUITY FUNDS (Cost $9,548,187) |
10,770,850
|
Fixed-Income Funds - 36.2% |
| | | |
High Yield Fixed-Income Funds - 4.1% |
Fidelity Capital & Income Fund (b) | 47,189 | | 474,251 |
Fidelity Strategic Income Fund (b) | 42,851 | | 478,222 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 952,473 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 32.1% |
Fidelity Government Income Fund (b) | 142,272 | | $ 1,475,362 |
Fidelity Strategic Real Return Fund (b) | 152,568 | | 1,460,077 |
Fidelity Total Bond Fund (b) | 413,660 | | 4,417,893 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 7,353,332 |
TOTAL FIXED-INCOME FUNDS (Cost $8,267,505) |
8,305,805
|
Short-Term Funds - 16.8% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,928,320 | | 1,928,320 |
Fidelity Short-Term Bond Fund (b) | 224,128 | | 1,925,259 |
TOTAL SHORT-TERM FUNDS (Cost $3,847,238) |
3,853,579
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $21,662,930) | | 22,930,234 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | 742 |
NET ASSETS - 100% | $ 22,930,976 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 499,848 | $ 929,489 | $ 169,640 | $ 6,600 | $ 1,306,846 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 480,592 | 989,148 | 174,789 | 518 | 1,308,725 |
Fidelity Blue Chip Growth Fund | 444,607 | 895,367 | 185,775 | 1,909 | 1,228,892 |
Fidelity Capital & Income Fund | 173,936 | 340,299 | 47,259 | 11,612 | 474,251 |
Fidelity Equity-Income Fund | 684,505 | 1,313,296 | 191,792 | 27,793 | 1,898,967 |
Fidelity Government Income Fund | 497,527 | 1,075,142 | 106,779 | 12,712 | 1,475,362 |
Fidelity Institutional Money Market Portfolio Institutional Class | 642,394 | 1,420,816 | 134,891 | 845 | 1,928,320 |
Fidelity Large Cap Stock Fund | 514,724 | 1,024,923 | 172,363 | 7,081 | 1,430,243 |
Fidelity Series 100 Index Fund | 443,617 | 849,023 | 134,232 | 9,316 | 1,247,581 |
Fidelity Series Broad Market Opportunities Fund | 787,235 | 1,498,547 | 266,705 | 3,668 | 2,166,880 |
Fidelity Series Small Cap Opportunities Fund | 68,500 | 144,861 | 24,921 | 17 | 182,716 |
Fidelity Short-Term Bond Fund | 642,734 | 1,416,727 | 134,953 | 9,197 | 1,925,259 |
Fidelity Strategic Income Fund | 173,797 | 341,675 | 41,404 | 9,868 | 478,222 |
Fidelity Strategic Real Return Fund | 497,534 | 1,068,376 | 114,886 | 17,677 | 1,460,077 |
Fidelity Total Bond Fund | 1,492,003 | 3,225,023 | 323,263 | 66,707 | 4,417,893 |
Total | $ 8,043,553 | $ 16,532,712 | $ 2,223,652 | $ 185,520 | $ 22,930,234 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $21,662,930) - See accompanying schedule | | $ 22,930,234 |
Receivable for investments sold | | 50,960 |
Receivable for fund shares sold | | 1,022 |
Total assets | | 22,982,216 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 50,924 | |
Distribution and service plan fees payable | 316 | |
Total liabilities | | 51,240 |
| | |
Net Assets | | $ 22,930,976 |
Net Assets consist of: | | |
Paid in capital | | $ 21,893,235 |
Undistributed net investment income | | 4,387 |
Accumulated undistributed net realized gain (loss) on investments | | (233,950) |
Net unrealized appreciation (depreciation) on investments | | 1,267,304 |
Net Assets | | $ 22,930,976 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($698,740 ÷ 11,692.25 shares) | | $ 59.76 |
| | |
Maximum offering price per share (100/94.25 of $59.76) | | $ 63.41 |
Class T:
Net Asset Value and redemption price per share ($337,983 ÷ 5,655.14 shares) | | $ 59.77 |
| | |
Maximum offering price per share (100/96.50 of $59.77) | | $ 61.94 |
| | |
Class C:
Net Asset Value and offering price per share ($37,286 ÷ 625.11 shares)A | | $ 59.65 |
| | |
Income Replacement 2028:
Net Asset Value, offering price and redemption price per share ($21,765,588 ÷ 364,232.07 shares) | | $ 59.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($91,379 ÷ 1,529.10 shares) | | $ 59.76 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 185,520 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,346 | |
Independent trustees' compensation | 43 | |
Total expenses before reductions | 2,389 | |
Expense reductions | (43) | 2,346 |
Net investment income (loss) | | 183,174 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 17,411 | |
Capital gain distributions from underlying funds | 198,632 | |
Total net realized gain (loss) | | 216,043 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 560,204 |
Net gain (loss) | | 776,247 |
Net increase (decrease) in net assets resulting from operations | | $ 959,421 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2028 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 183,174 | $ 124,877 |
Net realized gain (loss) | 216,043 | 190,275 |
Change in net unrealized appreciation (depreciation) | 560,204 | 480,221 |
Net increase (decrease) in net assets resulting from operations | 959,421 | 795,373 |
Distributions to shareholders from net investment income | (180,281) | (124,207) |
Distributions to shareholders from net realized gain | (25,118) | (26,559) |
Total distributions | (205,399) | (150,766) |
Share transactions - net increase (decrease) | 14,133,535 | 1,675,414 |
Total increase (decrease) in net assets | 14,887,557 | 2,320,021 |
| | |
Net Assets | | |
Beginning of period | 8,043,419 | 5,723,398 |
End of period (including undistributed net investment income of $4,387 and undistributed net investment income of $1,493, respectively) | $ 22,930,976 | $ 8,043,419 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .733 | .868 | .792 | .802 | .789 |
Net realized and unrealized gain (loss) | 4.363 | 5.348 | .666 | 4.972 | 4.116 |
Total from investment operations | 5.096 | 6.216 | 1.458 | 5.774 | 4.905 |
Distributions from net investment income | (.713) | (.879) | (.794) | (.815) | (.785) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.876) | (1.106) | (.948) | (1.024) | (.895) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.43 | $ 49.92 | $ 45.17 |
Total ReturnA, B | 9.23% | 12.49% | 3.02% | 12.85% | 11.96% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.25% | 1.64% | 1.63% | 1.65% | 1.78% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 699 | $ 122 | $ 133 | $ 133 | $ 359 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.55 | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .580 | .738 | .672 | .682 | .678 |
Net realized and unrealized gain (loss) | 4.379 | 5.346 | .678 | 4.975 | 4.107 |
Total from investment operations | 4.959 | 6.084 | 1.350 | 5.657 | 4.785 |
Distributions from net investment income | (.576) | (.767) | (.676) | (.668) | (.675) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.739) | (.994) | (.830) | (.877) | (.785) |
Net asset value, end of period | $ 59.77 | $ 55.55 | $ 50.46 | $ 49.94 | $ 45.16 |
Total ReturnA, B | 8.97% | 12.21% | 2.79% | 12.57% | 11.66% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.00% | 1.39% | 1.38% | 1.40% | 1.53% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 338 | $ 326 | $ 128 | $ 130 | $ 328 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.49 | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .293 | .471 | .427 | .438 | .454 |
Net realized and unrealized gain (loss) | 4.369 | 5.346 | .662 | 4.974 | 4.117 |
Total from investment operations | 4.662 | 5.817 | 1.089 | 5.412 | 4.571 |
Distributions from net investment income | (.339) | (.540) | (.435) | (.453) | (.431) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (.502) | (.767) | (.589) | (.662) | (.541) |
Net asset value, end of period | $ 59.65 | $ 55.49 | $ 50.44 | $ 49.94 | $ 45.19 |
Total ReturnA, B | 8.43% | 11.65% | 2.24% | 12.01% | 11.13% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .50% | .89% | .88% | .90% | 1.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 37 | $ 18 | $ 33 | $ 49 | $ 51 |
Portfolio turnover rate D | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2028
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .874 | 1.003 | .914 | .925 | .900 |
Net realized and unrealized gain (loss) | 4.376 | 5.340 | .680 | 4.965 | 4.115 |
Total from investment operations | 5.250 | 6.343 | 1.594 | 5.890 | 5.015 |
Distributions from net investment income | (.867) | (1.016) | (.920) | (.941) | (.895) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (1.030) | (1.243) | (1.074) | (1.150) | (1.005) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 |
Total ReturnA | 9.52% | 12.76% | 3.30% | 13.12% | 12.24% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.50% | 1.89% | 1.88% | 1.90% | 2.03% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21,766 | $ 7,494 | $ 5,405 | $ 5,783 | $ 5,383 |
Portfolio turnover rate C | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .871 | 1.011 | .916 | .923 | .899 |
Net realized and unrealized gain (loss) | 4.379 | 5.332 | .678 | 4.967 | 4.116 |
Total from investment operations | 5.250 | 6.343 | 1.594 | 5.890 | 5.015 |
Distributions from net investment income | (.867) | (1.016) | (.920) | (.941) | (.895) |
Distributions from net realized gain | (.163) | (.227) | (.154) | (.209) | (.110) |
Total distributions | (1.030) | (1.243) | (1.074) | (1.150) | (1.005) |
Net asset value, end of period | $ 59.76 | $ 55.54 | $ 50.44 | $ 49.92 | $ 45.18 |
Total ReturnA | 9.52% | 12.76% | 3.30% | 13.12% | 12.24% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.50% | 1.89% | 1.88% | 1.90% | 2.03% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 91 | $ 83 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 18% | 34% | 46% | 17% | 16% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2030 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.9 | 6.0 |
Fidelity Blue Chip Growth Fund | 5.6 | 5.6 |
Fidelity Equity-Income Fund | 8.6 | 8.6 |
Fidelity Large Cap Stock Fund | 6.5 | 6.4 |
Fidelity Series 100 Index Fund | 5.6 | 5.5 |
Fidelity Series Broad Market Opportunities Fund | 9.8 | 9.9 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.9 |
| 42.8 | 42.9 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 6.5 | 6.6 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.2 | 2.3 |
Fidelity Strategic Income Fund | 2.3 | 2.3 |
| 4.5 | 4.6 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.2 | 6.2 |
Fidelity Strategic Real Return Fund | 6.1 | 6.1 |
Fidelity Total Bond Fund | 18.4 | 18.5 |
| 30.7 | 30.8 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 7.8 | 7.5 |
Fidelity Short-Term Bond Fund | 7.7 | 7.6 |
| 15.5 | 15.1 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 42.8% | |
| International Equity Funds | 6.5% | |
| High Yield Fixed-Income Funds | 4.5% | |
| Investment Grade Fixed-Income Funds | 30.7% | |
| Short-Term Funds | 15.5% | |
Six months ago |
| Domestic Equity Funds | 42.9% | |
| International Equity Funds | 6.6% | |
| High Yield Fixed-Income Funds | 4.6% | |
| Investment Grade Fixed-Income Funds | 30.8% | |
| Short-Term Funds | 15.1% | |
Expected |
| Domestic Equity Funds | 43.0% | |
| International Equity Funds | 6.4% | |
| High Yield Fixed-Income Funds | 4.4% | |
| Investment Grade Fixed-Income Funds | 30.6% | |
| Short-Term Funds | 15.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2030 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 49.3% |
| Shares | | Value |
Domestic Equity Funds - 42.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 44,376 | | $ 939,878 |
Fidelity Blue Chip Growth Fund (b) | 13,247 | | 883,698 |
Fidelity Equity-Income Fund (b) | 22,259 | | 1,364,041 |
Fidelity Large Cap Stock Fund (b) | 37,076 | | 1,027,000 |
Fidelity Series 100 Index Fund (b) | 70,602 | | 898,054 |
Fidelity Series Broad Market Opportunities Fund (b) | 101,312 | | 1,556,146 |
Fidelity Series Small Cap Opportunities Fund (b) | 10,097 | | 130,853 |
TOTAL DOMESTIC EQUITY FUNDS | | 6,799,670 |
International Equity Funds - 6.5% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 25,732 | | 1,026,963 |
TOTAL EQUITY FUNDS (Cost $6,712,226) |
7,826,633
|
Fixed-Income Funds - 35.2% |
| | | |
High Yield Fixed-Income Funds - 4.5% |
Fidelity Capital & Income Fund (b) | 35,522 | | 357,000 |
Fidelity Strategic Income Fund (b) | 32,261 | | 360,037 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 717,037 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 30.7% |
Fidelity Government Income Fund (b) | 94,171 | | $ 976,553 |
Fidelity Strategic Real Return Fund (b) | 100,949 | | 966,081 |
Fidelity Total Bond Fund (b) | 274,078 | | 2,927,151 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 4,869,785 |
TOTAL FIXED-INCOME FUNDS (Cost $5,511,811) |
5,586,822
|
Short-Term Funds - 15.5% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,227,131 | | 1,227,131 |
Fidelity Short-Term Bond Fund (b) | 142,620 | | 1,225,107 |
TOTAL SHORT-TERM FUNDS (Cost $2,446,901) |
2,452,238
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $14,670,938) | | 15,865,693 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (319) |
NET ASSETS - 100% | $ 15,865,374 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 412,788 | $ 803,259 | $ 235,283 | $ 8,472 | $ 1,026,963 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 363,773 | 805,964 | 229,289 | 632 | 939,878 |
Fidelity Blue Chip Growth Fund | 336,749 | 702,186 | 232,541 | 1,818 | 883,698 |
Fidelity Capital & Income Fund | 137,015 | 280,889 | 71,838 | 12,084 | 357,000 |
Fidelity Equity-Income Fund | 518,628 | 1,039,534 | 292,034 | 27,427 | 1,364,041 |
Fidelity Government Income Fund | 351,965 | 772,375 | 158,705 | 11,859 | 976,553 |
Fidelity Institutional Money Market Portfolio Institutional Class | 429,392 | 989,913 | 192,174 | 734 | 1,227,131 |
Fidelity Large Cap Stock Fund | 389,387 | 806,436 | 239,718 | 6,897 | 1,027,000 |
Fidelity Series 100 Index Fund | 335,996 | 662,092 | 186,934 | 10,722 | 898,054 |
Fidelity Series Broad Market Opportunities Fund | 596,337 | 1,180,284 | 371,918 | 4,481 | 1,556,146 |
Fidelity Series Small Cap Opportunities Fund | 52,021 | 116,019 | 32,856 | 21 | 130,853 |
Fidelity Short-Term Bond Fund | 429,610 | 988,036 | 194,327 | 8,100 | 1,225,107 |
Fidelity Strategic Income Fund | 136,911 | 288,323 | 70,680 | 10,290 | 360,037 |
Fidelity Strategic Real Return Fund | 351,986 | 778,089 | 184,799 | 14,784 | 966,081 |
Fidelity Total Bond Fund | 1,057,723 | 2,330,318 | 495,639 | 61,798 | 2,927,151 |
Total | $ 5,900,281 | $ 12,543,717 | $ 3,188,735 | $ 180,119 | $ 15,865,693 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2030 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $14,670,938) - See accompanying schedule | | $ 15,865,693 |
Cash | | 2 |
Receivable for fund shares sold | | 12,542 |
Total assets | | 15,878,237 |
| | |
Liabilities | | |
Payable for investments purchased | $ 12,502 | |
Distribution and service plan fees payable | 361 | |
Total liabilities | | 12,863 |
| | |
Net Assets | | $ 15,865,374 |
Net Assets consist of: | | |
Paid in capital | | $ 14,608,000 |
Undistributed net investment income | | 3,019 |
Accumulated undistributed net realized gain (loss) on investments | | 59,600 |
Net unrealized appreciation (depreciation) on investments | | 1,194,755 |
Net Assets | | $ 15,865,374 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($257,010 ÷ 4,295.09 shares) | | $ 59.84 |
| | |
Maximum offering price per share (100/94.25 of $59.84) | | $ 63.49 |
Class T:
Net Asset Value and redemption price per share ($17,373 ÷ 289.77 shares) | | $ 59.95 |
| | |
Maximum offering price per share (100/96.50 of $59.95) | | $ 62.12 |
| | |
Class C:
Net Asset Value and offering price per share ($352,784 ÷ 5,915.40 shares)A | | $ 59.64 |
| | |
Income Replacement 2030:
Net Asset Value, offering price and redemption price per share ($15,175,100 ÷ 253,596.50 shares) | | $ 59.84 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($63,107 ÷ 1,054.55 shares) | | $ 59.84 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 180,119 |
| | |
Expenses | | |
Distribution and service plan fees | $ 3,769 | |
Independent trustees' compensation | 42 | |
Total expenses before reductions | 3,811 | |
Expense reductions | (42) | 3,769 |
Net investment income (loss) | | 176,350 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (19,267) | |
Capital gain distributions from underlying funds | 206,864 | |
Total net realized gain (loss) | | 187,597 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 629,689 |
Net gain (loss) | | 817,286 |
Net increase (decrease) in net assets resulting from operations | | $ 993,636 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 176,350 | $ 80,370 |
Net realized gain (loss) | 187,597 | 155,323 |
Change in net unrealized appreciation (depreciation) | 629,689 | 299,880 |
Net increase (decrease) in net assets resulting from operations | 993,636 | 535,573 |
Distributions to shareholders from net investment income | (174,314) | (80,007) |
Distributions to shareholders from net realized gain | (29,274) | (17,604) |
Total distributions | (203,588) | (97,611) |
Share transactions - net increase (decrease) | 9,175,334 | 1,469,395 |
Total increase (decrease) in net assets | 9,965,382 | 1,907,357 |
| | |
Net Assets | | |
Beginning of period | 5,899,992 | 3,992,635 |
End of period (including undistributed net investment income of $3,019 and undistributed net investment income of $983, respectively) | $ 15,865,374 | $ 5,899,992 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .740 | .886 | .815 | .791 | .718 |
Net realized and unrealized gain (loss) | 4.505 | 5.568 | .598 | 5.066 | 4.180 |
Total from investment operations | 5.245 | 6.454 | 1.413 | 5.857 | 4.898 |
Distributions from net investment income | (.700) | (.896) | (.796) | (.801) | (.713) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.855) | (1.124) | (.943) | (.977) | (.818) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.65 | $ 44.77 |
Total ReturnA, B | 9.51% | 13.06% | 2.94% | 13.15% | 12.08% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.67% | 1.68% | 1.63% | 1.63% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 257 | $ 145 | $ 86 | $ 72 | $ 66 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.55 | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .597 | .745 | .715 | .655 | .603 |
Net realized and unrealized gain (loss) | 4.507 | 5.590 | .598 | 5.076 | 4.182 |
Total from investment operations | 5.104 | 6.335 | 1.313 | 5.731 | 4.785 |
Distributions from net investment income | (.549) | (.757) | (.636) | (.665) | (.590) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.704) | (.985) | (.783) | (.841) | (.695) |
Net asset value, end of period | $ 59.95 | $ 55.55 | $ 50.20 | $ 49.67 | $ 44.78 |
Total ReturnA, B | 9.23% | 12.78% | 2.72% | 12.85% | 11.79% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .51% F | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .51% F | .46% | .50% | .50% |
Expenses net of all reductions | .50% | .51% F | .46% | .50% | .50% |
Net investment income (loss) | 1.03% | 1.41% | 1.48% | 1.38% | 1.37% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17 | $ 15 | $ 13 | $ 15 | $ 45 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.33 | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .303 | .486 | .451 | .428 | .385 |
Net realized and unrealized gain (loss) | 4.486 | 5.561 | .604 | 5.060 | 4.185 |
Total from investment operations | 4.789 | 6.047 | 1.055 | 5.488 | 4.570 |
Distributions from net investment income | (.324) | (.559) | (.448) | (.452) | (.385) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (.479) | (.787) | (.595) | (.628) | (.490) |
Net asset value, end of period | $ 59.64 | $ 55.33 | $ 50.07 | $ 49.61 | $ 44.75 |
Total ReturnA, B | 8.68% | 12.21% | 2.19% | 12.30% | 11.26% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .92% | .93% | .88% | .88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 353 | $ 315 | $ 312 | $ 270 | $ 186 |
Portfolio turnover rate D | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2030
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .888 | 1.015 | .935 | .917 | .821 |
Net realized and unrealized gain (loss) | 4.502 | 5.567 | .608 | 5.062 | 4.178 |
Total from investment operations | 5.390 | 6.582 | 1.543 | 5.979 | 4.999 |
Distributions from net investment income | (.845) | (1.024) | (.916) | (.923) | (.824) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (1.000) | (1.252) | (1.063) | (1.099) | (.929) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.76 |
Total ReturnA | 9.78% | 13.33% | 3.22% | 13.43% | 12.34% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.92% | 1.93% | 1.88% | 1.88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 15,175 | $ 5,367 | $ 3,558 | $ 3,962 | $ 1,628 |
Portfolio turnover rate C | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 |
Income from Investment Operations | | | | | �� |
Net investment income (loss) B | .885 | 1.020 | .936 | .911 | .825 |
Net realized and unrealized gain (loss) | 4.505 | 5.562 | .607 | 5.058 | 4.184 |
Total from investment operations | 5.390 | 6.582 | 1.543 | 5.969 | 5.009 |
Distributions from net investment income | (.845) | (1.024) | (.916) | (.923) | (.824) |
Distributions from net realized gain | (.155) | (.228) | (.147) | (.176) | (.105) |
Total distributions | (1.000) | (1.252) | (1.063) | (1.099) | (.929) |
Net asset value, end of period | $ 59.84 | $ 55.45 | $ 50.12 | $ 49.64 | $ 44.77 |
Total ReturnA | 9.78% | 13.33% | 3.22% | 13.41% | 12.36% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.92% | 1.93% | 1.88% | 1.88% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 63 | $ 57 | $ 24 | $ 27 | $ 36 |
Portfolio turnover rate C | 27% | 32% | 50% | 24% | 31% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.1 | 6.1 |
Fidelity Blue Chip Growth Fund | 5.7 | 5.8 |
Fidelity Equity-Income Fund | 8.8 | 8.8 |
Fidelity Large Cap Stock Fund | 6.7 | 6.5 |
Fidelity Series 100 Index Fund | 5.8 | 5.7 |
Fidelity Series Broad Market Opportunities Fund | 10.1 | 10.2 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 44.1 | 44.0 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 7.2 | 7.3 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.4 | 2.4 |
Fidelity Strategic Income Fund | 2.4 | 2.5 |
| 4.8 | 4.9 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 6.0 | 6.1 |
Fidelity Strategic Real Return Fund | 5.9 | 6.0 |
Fidelity Total Bond Fund | 18.0 | 18.0 |
| 29.9 | 30.1 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 7.0 | 6.8 |
Fidelity Short-Term Bond Fund | 7.0 | 6.9 |
| 14.0 | 13.7 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 44.1% | |
| International Equity Funds | 7.2% | |
| High Yield Fixed-Income Funds | 4.8% | |
| Investment Grade Fixed-Income Funds | 29.9% | |
| Short-Term Funds | 14.0% | |
Six months ago |
| Domestic Equity Funds | 44.0% | |
| International Equity Funds | 7.3% | |
| High Yield Fixed-Income Funds | 4.9% | |
| Investment Grade Fixed-Income Funds | 30.1% | |
| Short-Term Funds | 13.7% | |
Expected |
| Domestic Equity Funds | 44.2% | |
| International Equity Funds | 7.2% | |
| High Yield Fixed-Income Funds | 4.8% | |
| Investment Grade Fixed-Income Funds | 29.6% | |
| Short-Term Funds | 14.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2032 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 51.3% |
| Shares | | Value |
Domestic Equity Funds - 44.1% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 23,172 | | $ 490,780 |
Fidelity Blue Chip Growth Fund (b) | 6,908 | | 460,847 |
Fidelity Equity-Income Fund (b) | 11,619 | | 712,030 |
Fidelity Large Cap Stock Fund (b) | 19,354 | | 536,114 |
Fidelity Series 100 Index Fund (b) | 36,812 | | 468,251 |
Fidelity Series Broad Market Opportunities Fund (b) | 52,860 | | 811,929 |
Fidelity Series Small Cap Opportunities Fund (b) | 5,248 | | 68,015 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,547,966 |
International Equity Funds - 7.2% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 14,612 | | 583,182 |
TOTAL EQUITY FUNDS (Cost $3,335,729) |
4,131,148
|
Fixed-Income Funds - 34.7% |
| | | |
High Yield Fixed-Income Funds - 4.8% |
Fidelity Capital & Income Fund (b) | 19,247 | | 193,429 |
Fidelity Strategic Income Fund (b) | 17,479 | | 195,065 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 388,494 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 29.9% |
Fidelity Government Income Fund (b) | 46,490 | | $ 482,104 |
Fidelity Strategic Real Return Fund (b) | 49,839 | | 476,961 |
Fidelity Total Bond Fund (b) | 135,387 | | 1,445,928 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,404,993 |
TOTAL FIXED-INCOME FUNDS (Cost $2,784,081) |
2,793,487
|
Short-Term Funds - 14.0% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 565,193 | | 565,193 |
Fidelity Short-Term Bond Fund (b) | 65,688 | | 564,256 |
TOTAL SHORT-TERM FUNDS (Cost $1,127,421) |
1,129,449
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,247,231) | | 8,054,084 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (180) |
NET ASSETS - 100% | $ 8,053,904 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 370,337 | $ 340,783 | $ 167,453 | $ 5,992 | $ 583,182 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 300,718 | 329,546 | 144,453 | 397 | 490,780 |
Fidelity Blue Chip Growth Fund | 278,414 | 282,469 | 146,760 | 1,324 | 460,847 |
Fidelity Capital & Income Fund | 117,258 | 112,930 | 43,943 | 7,472 | 193,429 |
Fidelity Equity-Income Fund | 428,523 | 397,159 | 173,657 | 16,282 | 712,030 |
Fidelity Government Income Fund | 275,478 | 298,354 | 97,214 | 6,609 | 482,104 |
Fidelity Institutional Money Market Portfolio Institutional Class | 317,994 | 356,231 | 109,032 | 387 | 565,193 |
Fidelity Large Cap Stock Fund | 321,858 | 315,047 | 148,581 | 4,163 | 536,114 |
Fidelity Series 100 Index Fund | 277,791 | 252,829 | 115,905 | 6,883 | 468,251 |
Fidelity Series Broad Market Opportunities Fund | 492,658 | 448,352 | 226,834 | 2,811 | 811,929 |
Fidelity Series Small Cap Opportunities Fund | 42,934 | 47,286 | 20,030 | 13 | 68,015 |
Fidelity Short-Term Bond Fund | 318,164 | 354,459 | 109,577 | 4,215 | 564,256 |
Fidelity Strategic Income Fund | 117,167 | 118,197 | 43,400 | 6,328 | 195,065 |
Fidelity Strategic Real Return Fund | 275,483 | 297,857 | 106,806 | 8,326 | 476,961 |
Fidelity Total Bond Fund | 826,974 | 895,119 | 292,365 | 34,858 | 1,445,928 |
Total | $ 4,761,751 | $ 4,846,618 | $ 1,946,010 | $ 106,060 | $ 8,054,084 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,247,231) - See accompanying schedule | | $ 8,054,084 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 180 |
| | |
Net Assets | | $ 8,053,904 |
Net Assets consist of: | | |
Paid in capital | | $ 7,257,981 |
Undistributed net investment income | | 1,555 |
Accumulated undistributed net realized gain (loss) on investments | | (12,485) |
Net unrealized appreciation (depreciation) on investments | | 806,853 |
Net Assets | | $ 8,053,904 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($267,193 ÷ 4,710.74 shares) | | $ 56.72 |
| | |
Maximum offering price per share (100/94.25 of $56.72) | | $ 60.18 |
Class T:
Net Asset Value and redemption price per share ($36,500 ÷ 643.10 shares) | | $ 56.76 |
| | |
Maximum offering price per share (100/96.50 of $56.76) | | $ 58.82 |
| | |
Class C:
Net Asset Value and offering price per share ($121,610 ÷ 2,147.99 shares)A | | $ 56.62 |
| | |
Income Replacement 2032:
Net Asset Value, offering price and redemption price per share ($7,607,885 ÷ 134,109.65 shares) | | $ 56.73 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($20,716 ÷ 365.16 shares) | | $ 56.73 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 106,060 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,082 | |
Independent trustees' compensation | 25 | |
Total expenses before reductions | 2,107 | |
Expense reductions | (25) | 2,082 |
Net investment income (loss) | | 103,978 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (1,525) | |
Capital gain distributions from underlying funds | 132,838 | |
Total net realized gain (loss) | | 131,313 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 393,242 |
Net gain (loss) | | 524,555 |
Net increase (decrease) in net assets resulting from operations | | $ 628,533 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2032 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 103,978 | $ 82,284 |
Net realized gain (loss) | 131,313 | 150,587 |
Change in net unrealized appreciation (depreciation) | 393,242 | 298,362 |
Net increase (decrease) in net assets resulting from operations | 628,533 | 531,233 |
Distributions to shareholders from net investment income | (103,188) | (81,963) |
Distributions to shareholders from net realized gain | (75,104) | (32,634) |
Total distributions | (178,292) | (114,597) |
Share transactions - net increase (decrease) | 2,842,028 | 1,045,148 |
Total increase (decrease) in net assets | 3,292,269 | 1,461,784 |
| | |
Net Assets | | |
Beginning of period | 4,761,635 | 3,299,851 |
End of period (including undistributed net investment income of $1,555 and undistributed net investment income of $764, respectively) | $ 8,053,904 | $ 4,761,635 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.04 | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .718 | .906 | .717 | .796 | .727 |
Net realized and unrealized gain (loss) | 4.379 | 5.480 | .618 | 5.086 | 4.154 |
Total from investment operations | 5.097 | 6.386 | 1.335 | 5.882 | 4.881 |
Distributions from net investment income | (.704) | (.852) | (.770) | (.812) | (.796) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.417) | (1.256) | (2.495) | (1.002) | (.901) |
Net asset value, end of period | $ 56.72 | $ 53.04 | $ 47.91 | $ 49.07 | $ 44.19 |
Total ReturnA, B | 9.76% | 13.55% | 2.85% | 13.38% | 12.19% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .37% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.30% | 1.80% | 1.51% | 1.66% | 1.67% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 267 | $ 229 | $ 217 | $ 214 | $ 200 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.08 | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .581 | .781 | .599 | .676 | .620 |
Net realized and unrealized gain (loss) | 4.386 | 5.484 | .599 | 5.107 | 4.147 |
Total from investment operations | 4.967 | 6.265 | 1.198 | 5.783 | 4.767 |
Distributions from net investment income | (.574) | (.721) | (.633) | (.693) | (.682) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.287) | (1.125) | (2.358) | (.883) | (.787) |
Net asset value, end of period | $ 56.76 | $ 53.08 | $ 47.94 | $ 49.10 | $ 44.20 |
Total ReturnA, B | 9.50% | 13.27% | 2.55% | 13.14% | 11.90% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .62% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.05% | 1.55% | 1.26% | 1.41% | 1.43% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 36 | $ 27 | $ 24 | $ 27 | $ 35 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 52.99 | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .305 | .529 | .358 | .434 | .403 |
Net realized and unrealized gain (loss) | 4.382 | 5.469 | .615 | 5.102 | 4.143 |
Total from investment operations | 4.687 | 5.998 | .973 | 5.536 | 4.546 |
Distributions from net investment income | (.344) | (.534) | (.438) | (.446) | (.451) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.057) | (.938) | (2.163) | (.636) | (.556) |
Net asset value, end of period | $ 56.62 | $ 52.99 | $ 47.93 | $ 49.12 | $ 44.22 |
Total ReturnA, B | 8.96% | 12.68% | 2.07% | 12.55% | 11.33% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.12% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .55% | 1.05% | .76% | .91% | .93% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 122 | $ 69 | $ 52 | $ 22 | $ 29 |
Portfolio turnover rate D | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2032
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | 1.033 | .836 | .918 | .832 |
Net realized and unrealized gain (loss) | 4.380 | 5.479 | .618 | 5.095 | 4.147 |
Total from investment operations | 5.236 | 6.512 | 1.454 | 6.013 | 4.979 |
Distributions from net investment income | (.843) | (.978) | (.889) | (.933) | (.904) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.556) | (1.382) | (2.614) | (1.123) | (1.009) |
Net asset value, end of period | $ 56.73 | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 |
Total ReturnA | 10.04% | 13.83% | 3.10% | 13.68% | 12.44% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions | .00% D | .00% D | .12% | .00% D | .00% D |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.05% | 1.76% | 1.91% | 1.92% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,608 | $ 4,418 | $ 2,991 | $ 1,297 | $ 1,391 |
Portfolio turnover rate C | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .856 | 1.032 | .835 | .904 | .834 |
Net realized and unrealized gain (loss) | 4.380 | 5.480 | .619 | 5.109 | 4.145 |
Total from investment operations | 5.236 | 6.512 | 1.454 | 6.013 | 4.979 |
Distributions from net investment income | (.843) | (.978) | (.889) | (.933) | (.904) |
Distributions from net realized gain | (.713) | (.404) | (1.725) | (.190) | (.105) |
Total distributions | (1.556) | (1.382) | (2.614) | (1.123) | (1.009) |
Net asset value, end of period | $ 56.73 | $ 53.05 | $ 47.92 | $ 49.08 | $ 44.19 |
Total ReturnA | 10.04% | 13.83% | 3.10% | 13.68% | 12.44% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions | .00% D | .00% D | .12% | .00% D | .00% D |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.05% | 1.76% | 1.91% | 1.92% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 21 | $ 19 | $ 17 | $ 19 | $ 61 |
Portfolio turnover rate C | 29% | 30% | 37% | 45% | 95% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.2 | 6.2 |
Fidelity Blue Chip Growth Fund | 5.9 | 5.9 |
Fidelity Equity-Income Fund | 9.0 | 9.0 |
Fidelity Large Cap Stock Fund | 6.8 | 6.7 |
Fidelity Series 100 Index Fund | 5.9 | 5.8 |
Fidelity Series Broad Market Opportunities Fund | 10.3 | 10.4 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.0 | 44.9 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 8.0 | 8.1 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.5 | 2.6 |
Fidelity Strategic Income Fund | 2.6 | 2.6 |
| 5.1 | 5.2 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.7 | 5.8 |
Fidelity Strategic Real Return Fund | 5.7 | 5.7 |
Fidelity Total Bond Fund | 17.3 | 17.3 |
| 28.7 | 28.8 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 6.6 | 6.5 |
Fidelity Short-Term Bond Fund | 6.6 | 6.5 |
| 13.2 | 13.0 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 45.0% | |
| International Equity Funds | 8.0% | |
| High Yield Fixed-Income Funds | 5.1% | |
| Investment Grade Fixed-Income Funds | 28.7% | |
| Short-Term Funds | 13.2% | |
Six months ago |
| Domestic Equity Funds | 44.9% | |
| International Equity Funds | 8.1% | |
| High Yield Fixed-Income Funds | 5.2% | |
| Investment Grade Fixed-Income Funds | 28.8% | |
| Short-Term Funds | 13.0% | |
Expected |
| Domestic Equity Funds | 45.1% | |
| International Equity Funds | 8.0% | |
| High Yield Fixed-Income Funds | 5.0% | |
| Investment Grade Fixed-Income Funds | 28.5% | |
| Short-Term Funds | 13.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2034 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 53.0% |
| Shares | | Value |
Domestic Equity Funds - 45.0% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 25,835 | | $ 547,182 |
Fidelity Blue Chip Growth Fund (b) | 7,713 | | 514,535 |
Fidelity Equity-Income Fund (b) | 12,968 | | 794,671 |
Fidelity Large Cap Stock Fund (b) | 21,615 | | 598,743 |
Fidelity Series 100 Index Fund (b) | 41,109 | | 522,911 |
Fidelity Series Broad Market Opportunities Fund (b) | 59,004 | | 906,306 |
Fidelity Series Small Cap Opportunities Fund (b) | 5,868 | | 76,048 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,960,396 |
International Equity Funds - 8.0% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 17,667 | | 705,091 |
TOTAL EQUITY FUNDS (Cost $3,863,186) |
4,665,487
|
Fixed-Income Funds - 33.8% |
| | | |
High Yield Fixed-Income Funds - 5.1% |
Fidelity Capital & Income Fund (b) | 22,108 | | 222,186 |
Fidelity Strategic Income Fund (b) | 20,079 | | 224,086 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 446,272 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 28.7% |
Fidelity Government Income Fund (b) | 48,876 | | $ 506,842 |
Fidelity Strategic Real Return Fund (b) | 52,392 | | 501,394 |
Fidelity Total Bond Fund (b) | 142,333 | | 1,520,120 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,528,356 |
TOTAL FIXED-INCOME FUNDS (Cost $2,912,731) |
2,974,628
|
Short-Term Funds - 13.2% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 583,337 | | 583,337 |
Fidelity Short-Term Bond Fund (b) | 67,797 | | 582,375 |
TOTAL SHORT-TERM FUNDS (Cost $1,161,394) |
1,165,712
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,937,311) | | 8,805,827 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (103) |
NET ASSETS - 100% | $ 8,805,724 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 358,688 | $ 431,974 | $ 119,724 | $ 5,465 | $ 705,091 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 269,698 | 372,819 | 98,639 | 341 | 547,182 |
Fidelity Blue Chip Growth Fund | 249,635 | 324,268 | 103,112 | 1,092 | 514,535 |
Fidelity Capital & Income Fund | 108,224 | 136,629 | 28,739 | 7,195 | 222,186 |
Fidelity Equity-Income Fund | 384,259 | 471,308 | 114,578 | 15,213 | 794,671 |
Fidelity Government Income Fund | 234,485 | 320,837 | 53,348 | 5,886 | 506,842 |
Fidelity Institutional Money Market Portfolio Institutional Class | 261,036 | 377,586 | 55,285 | 336 | 583,337 |
Fidelity Large Cap Stock Fund | 288,297 | 369,874 | 99,610 | 3,836 | 598,743 |
Fidelity Series 100 Index Fund | 249,076 | 299,242 | 74,018 | 5,836 | 522,911 |
Fidelity Series Broad Market Opportunities Fund | 441,539 | 534,083 | 155,806 | 2,411 | 906,306 |
Fidelity Series Small Cap Opportunities Fund | 38,625 | 54,011 | 14,263 | 11 | 76,048 |
Fidelity Short-Term Bond Fund | 261,172 | 380,100 | 59,599 | 3,679 | 582,375 |
Fidelity Strategic Income Fund | 108,142 | 141,281 | 28,234 | 6,117 | 224,086 |
Fidelity Strategic Real Return Fund | 234,491 | 321,662 | 63,818 | 7,522 | 501,394 |
Fidelity Total Bond Fund | 703,473 | 964,966 | 162,992 | 30,824 | 1,520,120 |
Total | $ 4,190,840 | $ 5,500,640 | $ 1,231,765 | $ 95,764 | $ 8,805,827 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,937,311) - See accompanying schedule | | $ 8,805,827 |
Cash | | 1 |
Total assets | | 8,805,828 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 104 |
| | |
Net Assets | | $ 8,805,724 |
Net Assets consist of: | | |
Paid in capital | | $ 7,903,283 |
Undistributed net investment income | | 1,699 |
Accumulated undistributed net realized gain (loss) on investments | | 32,226 |
Net unrealized appreciation (depreciation) on investments | | 868,516 |
Net Assets | | $ 8,805,724 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($125,701 ÷ 2,100.36 shares) | | $ 59.85 |
| | |
Maximum offering price per share (100/94.25 of $59.85) | | $ 63.50 |
Class T:
Net Asset Value and redemption price per share ($96,487 ÷ 1,612.10 shares) | | $ 59.85 |
| | |
Maximum offering price per share (100/96.50 of $59.85) | | $ 62.02 |
| | |
Class C:
Net Asset Value and offering price per share ($53,538 ÷ 896.25 shares)A | | $ 59.74 |
| | |
Income Replacement 2034:
Net Asset Value, offering price and redemption price per share ($8,313,273 ÷ 138,960.56 shares) | | $ 59.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($216,725 ÷ 3,622.35 shares) | | $ 59.83 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 95,764 |
| | |
Expenses | | |
Distribution and service plan fees | $ 1,241 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 1,264 | |
Expense reductions | (23) | 1,241 |
Net investment income (loss) | | 94,523 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 103 | |
Capital gain distributions from underlying funds | 115,763 | |
Total net realized gain (loss) | | 115,866 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 345,996 |
Net gain (loss) | | 461,862 |
Net increase (decrease) in net assets resulting from operations | | $ 556,385 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2034 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 94,523 | $ 56,289 |
Net realized gain (loss) | 115,866 | 94,056 |
Change in net unrealized appreciation (depreciation) | 345,996 | 236,800 |
Net increase (decrease) in net assets resulting from operations | 556,385 | 387,145 |
Distributions to shareholders from net investment income | (93,540) | (55,933) |
Distributions to shareholders from net realized gain | (34,674) | (10,194) |
Total distributions | (128,214) | (66,127) |
Share transactions - net increase (decrease) | 4,186,789 | 1,540,337 |
Total increase (decrease) in net assets | 4,614,960 | 1,861,355 |
| | |
Net Assets | | |
Beginning of period | 4,190,764 | 2,329,409 |
End of period (including undistributed net investment income of $1,699 and undistributed net investment income of $716, respectively) | $ 8,805,724 | $ 4,190,764 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.44 | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .741 | .840 | .782 | .799 | .753 |
Net realized and unrealized gain (loss) | 4.748 | 6.014 | .504 | 5.233 | 4.174 |
Total from investment operations | 5.489 | 6.854 | 1.286 | 6.032 | 4.927 |
Distributions from net investment income | (.723) | (.903) | (.775) | (.772) | (.758) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.079) | (1.114) | (.916) | (.972) | (.947) |
Net asset value, end of period | $ 59.85 | $ 55.44 | $ 49.70 | $ 49.33 | $ 44.27 |
Total ReturnA, B | 9.97% | 13.98% | 2.71% | 13.69% | 12.29% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.27% | 1.60% | 1.63% | 1.66% | 1.73% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 126 | $ 20 | $ 18 | $ 20 | $ 27 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.44 | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .592 | .719 | .662 | .681 | .645 |
Net realized and unrealized gain (loss) | 4.742 | 6.008 | .490 | 5.247 | 4.175 |
Total from investment operations | 5.334 | 6.727 | 1.152 | 5.928 | 4.820 |
Distributions from net investment income | (.568) | (.776) | (.651) | (.658) | (.651) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (.924) | (.987) | (.792) | (.858) | (.840) |
Net asset value, end of period | $ 59.85 | $ 55.44 | $ 49.70 | $ 49.34 | $ 44.27 |
Total ReturnA, B | 9.68% | 13.71% | 2.42% | 13.45% | 12.01% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.02% | 1.35% | 1.38% | 1.42% | 1.48% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 96 | $ 88 | $ 23 | $ 27 | $ 35 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.39 | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .300 | .448 | .424 | .439 | .426 |
Net realized and unrealized gain (loss) | 4.746 | 6.020 | .490 | 5.239 | 4.185 |
Total from investment operations | 5.046 | 6.468 | .914 | 5.678 | 4.611 |
Distributions from net investment income | (.340) | (.567) | (.443) | (.408) | (.422) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (.696) | (.778) | (.584) | (.608) | (.611) |
Net asset value, end of period | $ 59.74 | $ 55.39 | $ 49.70 | $ 49.37 | $ 44.30 |
Total ReturnA, B | 9.15% | 13.15% | 1.92% | 12.85% | 11.47% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .52% | .86% | .89% | .91% | .98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 54 | $ 49 | $ 43 | $ 20 | $ 27 |
Portfolio turnover rate D | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2034
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.41 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .885 | .975 | .903 | .921 | .862 |
Net realized and unrealized gain (loss) | 4.738 | 6.009 | .505 | 5.227 | 4.183 |
Total from investment operations | 5.623 | 6.984 | 1.408 | 6.148 | 5.045 |
Distributions from net investment income | (.857) | (1.033) | (.907) | (.898) | (.876) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.213) | (1.244) | (1.048) | (1.098) | (1.065) |
Net asset value, end of period | $ 59.82 | $ 55.41 | $ 49.67 | $ 49.31 | $ 44.26 |
Total ReturnA | 10.23% | 14.27% | 2.97% | 13.97% | 12.59% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.85% | 1.89% | 1.92% | 1.98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,313 | $ 3,894 | $ 2,123 | $ 2,066 | $ 1,672 |
Portfolio turnover rate C | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.42 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .884 | .972 | .904 | .922 | .860 |
Net realized and unrealized gain (loss) | 4.739 | 6.022 | .504 | 5.226 | 4.185 |
Total from investment operations | 5.623 | 6.994 | 1.408 | 6.148 | 5.045 |
Distributions from net investment income | (.857) | (1.033) | (.907) | (.898) | (.876) |
Distributions from net realized gain | (.356) | (.211) | (.141) | (.200) | (.189) |
Total distributions | (1.213) | (1.244) | (1.048) | (1.098) | (1.065) |
Net asset value, end of period | $ 59.83 | $ 55.42 | $ 49.67 | $ 49.31 | $ 44.26 |
Total ReturnA | 10.23% | 14.29% | 2.97% | 13.97% | 12.59% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.52% | 1.85% | 1.89% | 1.92% | 1.98% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 217 | $ 139 | $ 122 | $ 107 | $ 94 |
Portfolio turnover rate C | 19% | 35% | 34% | 39% | 22% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2036 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.3 | 6.4 |
Fidelity Blue Chip Growth Fund | 6.0 | 6.0 |
Fidelity Equity-Income Fund | 9.2 | 9.1 |
Fidelity Large Cap Stock Fund | 6.9 | 6.8 |
Fidelity Series 100 Index Fund | 6.0 | 5.9 |
Fidelity Series Broad Market Opportunities Fund | 10.5 | 10.6 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.8 | 45.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 8.8 | 8.9 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.6 | 2.7 |
Fidelity Strategic Income Fund | 2.7 | 2.7 |
| 5.3 | 5.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.7 | 5.7 |
Fidelity Strategic Real Return Fund | 5.6 | 5.7 |
Fidelity Total Bond Fund | 16.9 | 17.0 |
| 28.2 | 28.4 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 6.0 | 5.8 |
Fidelity Short-Term Bond Fund | 5.9 | 5.8 |
| 11.9 | 11.6 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 45.8% | |
| International Equity Funds | 8.8% | |
| High Yield Fixed-Income Funds | 5.3% | |
| Investment Grade Fixed-Income Funds | 28.2% | |
| Short-Term Funds | 11.9% | |
Six months ago |
| Domestic Equity Funds | 45.7% | |
| International Equity Funds | 8.9% | |
| High Yield Fixed-Income Funds | 5.4% | |
| Investment Grade Fixed-Income Funds | 28.4% | |
| Short-Term Funds | 11.6% | |
Expected |
| Domestic Equity Funds | 46.0% | |
| International Equity Funds | 8.7% | |
| High Yield Fixed-Income Funds | 5.2% | |
| Investment Grade Fixed-Income Funds | 27.9% | |
| Short-Term Funds | 12.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2036 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 54.6% |
| Shares | | Value |
Domestic Equity Funds - 45.8% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 21,795 | | $ 461,619 |
Fidelity Blue Chip Growth Fund (b) | 6,495 | | 433,268 |
Fidelity Equity-Income Fund (b) | 10,927 | | 669,628 |
Fidelity Large Cap Stock Fund (b) | 18,214 | | 504,538 |
Fidelity Series 100 Index Fund (b) | 34,620 | | 440,371 |
Fidelity Series Broad Market Opportunities Fund (b) | 49,745 | | 764,088 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,964 | | 64,339 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,337,851 |
International Equity Funds - 8.8% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 16,060 | | 640,937 |
TOTAL EQUITY FUNDS (Cost $3,307,815) |
3,978,788
|
Fixed-Income Funds - 33.5% |
| | | |
High Yield Fixed-Income Funds - 5.3% |
Fidelity Capital & Income Fund (b) | 19,179 | | 192,744 |
Fidelity Strategic Income Fund (b) | 17,419 | | 194,393 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 387,137 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 28.2% |
Fidelity Government Income Fund (b) | 39,687 | | $ 411,552 |
Fidelity Strategic Real Return Fund (b) | 42,541 | | 407,116 |
Fidelity Total Bond Fund (b) | 115,574 | | 1,234,333 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,053,001 |
TOTAL FIXED-INCOME FUNDS (Cost $2,447,640) |
2,440,138
|
Short-Term Funds - 11.9% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 434,802 | | 434,802 |
Fidelity Short-Term Bond Fund (b) | 50,533 | | 434,082 |
TOTAL SHORT-TERM FUNDS (Cost $868,083) |
868,884
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,623,538) | | 7,287,810 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (516) |
NET ASSETS - 100% | $ 7,287,294 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 429,351 | $ 324,563 | $ 152,413 | $ 6,198 | $ 640,937 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 299,915 | 272,832 | 114,281 | 356 | 461,619 |
Fidelity Blue Chip Growth Fund | 277,506 | 231,518 | 118,084 | 1,193 | 433,268 |
Fidelity Capital & Income Fund | 123,843 | 101,165 | 39,002 | 7,378 | 192,744 |
Fidelity Equity-Income Fund | 426,985 | 334,521 | 144,859 | 14,844 | 669,628 |
Fidelity Government Income Fund | 252,711 | 226,420 | 72,255 | 5,624 | 411,552 |
Fidelity Institutional Money Market Portfolio Institutional Class | 252,006 | 257,502 | 74,705 | 292 | 434,802 |
Fidelity Large Cap Stock Fund | 320,703 | 259,340 | 117,807 | 3,775 | 504,538 |
Fidelity Series 100 Index Fund | 276,886 | 208,743 | 92,852 | 6,234 | 440,371 |
Fidelity Series Broad Market Opportunities Fund | 490,982 | 367,073 | 181,498 | 2,520 | 764,088 |
Fidelity Series Small Cap Opportunities Fund | 42,688 | 39,956 | 16,039 | 12 | 64,339 |
Fidelity Short-Term Bond Fund | 252,142 | 255,800 | 74,706 | 3,182 | 434,082 |
Fidelity Strategic Income Fund | 123,745 | 106,544 | 38,841 | 6,254 | 194,393 |
Fidelity Strategic Real Return Fund | 252,708 | 228,183 | 82,877 | 6,940 | 407,116 |
Fidelity Total Bond Fund | 760,002 | 682,193 | 221,589 | 29,656 | 1,234,333 |
Total | $ 4,582,173 | $ 3,896,353 | $ 1,541,808 | $ 94,458 | $ 7,287,810 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2036 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $6,623,538) - See accompanying schedule | | $ 7,287,810 |
| | |
Liabilities | | |
Distribution and service plan fees payable | | 516 |
| | |
Net Assets | | $ 7,287,294 |
Net Assets consist of: | | |
Paid in capital | | $ 6,649,514 |
Undistributed net investment income | | 1,300 |
Accumulated undistributed net realized gain (loss) on investments | | (27,792) |
Net unrealized appreciation (depreciation) on investments | | 664,272 |
Net Assets | | $ 7,287,294 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($181,161.83 ÷ 3,030.179 shares) | | $ 59.79 |
| | |
Maximum offering price per share (100/94.25 of $59.79) | | $ 63.44 |
Class T:
Net Asset Value and redemption price per share ($420,018.62 ÷ 7,029.306 shares) | | $ 59.75 |
| | |
Maximum offering price per share (100/96.50 of $59.75) | | $ 61.92 |
| | |
Class C:
Net Asset Value and offering price per share ($357,855.85 ÷ 6,006.299 shares)A | | $ 59.58 |
| | |
Income Replacement 2036:
Net Asset Value, offering price and redemption price per share ($6,327,492.62 ÷ 105,836.810 shares) | | $ 59.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($765.36 ÷ 12.792 shares) | | $ 59.83 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 94,458 |
| | |
Expenses | | |
Distribution and service plan fees | $ 5,685 | |
Independent trustees' compensation | 23 | |
Total expenses before reductions | 5,708 | |
Expense reductions | (23) | 5,685 |
Net investment income (loss) | | 88,773 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (5,177) | |
Capital gain distributions from underlying funds | 119,956 | |
Total net realized gain (loss) | | 114,779 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 356,267 |
Net gain (loss) | | 471,046 |
Net increase (decrease) in net assets resulting from operations | | $ 559,819 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 88,773 | $ 71,025 |
Net realized gain (loss) | 114,779 | 89,547 |
Change in net unrealized appreciation (depreciation) | 356,267 | 345,367 |
Net increase (decrease) in net assets resulting from operations | 559,819 | 505,939 |
Distributions to shareholders from net investment income | (88,233) | (70,625) |
Distributions to shareholders from net realized gain | (17,586) | (12,770) |
Total distributions | (105,819) | (83,395) |
Share transactions - net increase (decrease) | 2,251,545 | 1,316,059 |
Total increase (decrease) in net assets | 2,705,545 | 1,738,603 |
| | |
Net Assets | | |
Beginning of period | 4,581,749 | 2,843,146 |
End of period (including undistributed net investment income of $1,300 and undistributed net investment income of $759, respectively) | $ 7,287,294 | $ 4,581,749 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.12 | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .751 | .939 | .760 | .811 | .748 |
Net realized and unrealized gain (loss) | 4.831 | 6.075 | .441 | 5.306 | 4.178 |
Total from investment operations | 5.582 | 7.014 | 1.201 | 6.117 | 4.926 |
Distributions from net investment income | (.734) | (.913) | (.784) | (.771) | (.752) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.912) | (1.094) | (.921) | (.927) | (.896) |
Net asset value, end of period | $ 59.79 | $ 55.12 | $ 49.20 | $ 48.92 | $ 43.73 |
Total ReturnA, B | 10.18% | 14.45% | 2.56% | 14.05% | 12.46% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.29% | 1.80% | 1.60% | 1.70% | 1.74% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 181 | $ 25 | $ 27 | $ 31 | $ 40 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.09 | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .601 | .809 | .641 | .693 | .639 |
Net realized and unrealized gain (loss) | 4.822 | 6.077 | .448 | 5.287 | 4.183 |
Total from investment operations | 5.423 | 6.886 | 1.089 | 5.980 | 4.822 |
Distributions from net investment income | (.585) | (.785) | (.672) | (.654) | (.648) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.763) | (.966) | (.809) | (.810) | (.792) |
Net asset value, end of period | $ 59.75 | $ 55.09 | $ 49.17 | $ 48.89 | $ 43.72 |
Total ReturnA, B | 9.89% | 14.18% | 2.32% | 13.73% | 12.19% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.04% | 1.55% | 1.35% | 1.45% | 1.49% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 420 | $ 295 | $ 278 | $ 288 | $ 265 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.98 | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .310 | .553 | .404 | .454 | .424 |
Net realized and unrealized gain (loss) | 4.816 | 6.061 | .445 | 5.293 | 4.179 |
Total from investment operations | 5.126 | 6.614 | .849 | 5.747 | 4.603 |
Distributions from net investment income | (.348) | (.593) | (.452) | (.451) | (.429) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (.526) | (.774) | (.589) | (.607) | (.573) |
Net asset value, end of period | $ 59.58 | $ 54.98 | $ 49.14 | $ 48.88 | $ 43.74 |
Total ReturnA, B | 9.35% | 13.60% | 1.80% | 13.17% | 11.61% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .54% | 1.06% | .85% | .95% | .99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 358 | $ 357 | $ 174 | $ 216 | $ 119 |
Portfolio turnover rate D | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2036
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.11 | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .893 | 1.073 | .880 | .939 | .854 |
Net realized and unrealized gain (loss) | 4.833 | 6.070 | .445 | 5.291 | 4.183 |
Total from investment operations | 5.726 | 7.143 | 1.325 | 6.230 | 5.037 |
Distributions from net investment income | (.868) | (1.042) | (.908) | (.894) | (.863) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (1.046) | (1.223) | (1.045) | (1.050) | (1.007) |
Net asset value, end of period | $ 59.79 | $ 55.11 | $ 49.19 | $ 48.91 | $ 43.73 |
Total ReturnA | 10.46% | 14.74% | 2.82% | 14.32% | 12.75% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.54% | 2.05% | 1.85% | 1.95% | 1.99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,327 | $ 3,904 | $ 2,363 | $ 2,433 | $ 598 |
Portfolio turnover rate C | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.13 | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .869 | 1.108 | .873 | .929 | .851 |
Net realized and unrealized gain (loss) | 4.877 | 6.065 | .452 | 5.291 | 4.186 |
Total from investment operations | 5.746 | 7.173 | 1.325 | 6.220 | 5.037 |
Distributions from net investment income | (.868) | (1.042) | (.908) | (.894) | (.863) |
Distributions from net realized gain | (.178) | (.181) | (.137) | (.156) | (.144) |
Total distributions | (1.046) | (1.223) | (1.045) | (1.050) | (1.007) |
Net asset value, end of period | $ 59.83 | $ 55.13 | $ 49.18 | $ 48.90 | $ 43.73 |
Total ReturnA | 10.49% | 14.80% | 2.82% | 14.30% | 12.75% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.54% | 2.05% | 1.85% | 1.95% | 1.99% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1 | $ 1 | $ 1 | $ 28 | $ 103 |
Portfolio turnover rate C | 25% | 25% | 62% | 19% | 26% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2038 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.4 | 6.5 |
Fidelity Blue Chip Growth Fund | 6.1 | 6.1 |
Fidelity Equity-Income Fund | 9.4 | 9.3 |
Fidelity Large Cap Stock Fund | 7.0 | 6.9 |
Fidelity Series 100 Index Fund | 6.2 | 6.0 |
Fidelity Series Broad Market Opportunities Fund | 10.7 | 10.8 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.7 | 46.5 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 9.6 | 9.7 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.8 | 2.8 |
Fidelity Strategic Income Fund | 2.8 | 2.9 |
| 5.6 | 5.7 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.5 | 5.6 |
Fidelity Strategic Real Return Fund | 5.5 | 5.5 |
Fidelity Total Bond Fund | 16.6 | 16.6 |
| 27.6 | 27.7 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 5.3 | 5.2 |
Fidelity Short-Term Bond Fund | 5.2 | 5.2 |
| 10.5 | 10.4 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 46.7% | |
| International Equity Funds | 9.6% | |
| High Yield Fixed-Income Funds | 5.6% | |
| Investment Grade Fixed-Income Funds | 27.6% | |
| Short-Term Funds | 10.5% | |
Six months ago |
| Domestic Equity Funds | 46.5% | |
| International Equity Funds | 9.7% | |
| High Yield Fixed-Income Funds | 5.7% | |
| Investment Grade Fixed-Income Funds | 27.7% | |
| Short-Term Funds | 10.4% | |
Expected |
| Domestic Equity Funds | 46.9% | |
| International Equity Funds | 9.6% | |
| High Yield Fixed-Income Funds | 5.4% | |
| Investment Grade Fixed-Income Funds | 27.5% | |
| Short-Term Funds | 10.6% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2038 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 56.3% |
| Shares | | Value |
Domestic Equity Funds - 46.7% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 19,866 | | $ 420,758 |
Fidelity Blue Chip Growth Fund (b) | 5,927 | | 395,403 |
Fidelity Equity-Income Fund (b) | 9,972 | | 611,104 |
Fidelity Large Cap Stock Fund (b) | 16,603 | | 459,909 |
Fidelity Series 100 Index Fund (b) | 31,589 | | 401,816 |
Fidelity Series Broad Market Opportunities Fund (b) | 45,377 | | 696,988 |
Fidelity Series Small Cap Opportunities Fund (b) | 4,498 | | 58,296 |
TOTAL DOMESTIC EQUITY FUNDS | | 3,044,274 |
International Equity Funds - 9.6% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 15,721 | | 627,406 |
TOTAL EQUITY FUNDS (Cost $3,108,434) |
3,671,680
|
Fixed-Income Funds - 33.2% |
| | | |
High Yield Fixed-Income Funds - 5.6% |
Fidelity Capital & Income Fund (b) | 18,031 | | 181,213 |
Fidelity Strategic Income Fund (b) | 16,377 | | 182,767 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 363,980 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 27.6% |
Fidelity Government Income Fund (b) | 34,857 | | $ 361,466 |
Fidelity Strategic Real Return Fund (b) | 37,364 | | 357,572 |
Fidelity Total Bond Fund (b) | 101,510 | | 1,084,131 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 1,803,169 |
TOTAL FIXED-INCOME FUNDS (Cost $2,114,767) |
2,167,149
|
Short-Term Funds - 10.5% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 344,380 | | 344,380 |
Fidelity Short-Term Bond Fund (b) | 40,027 | | 343,829 |
TOTAL SHORT-TERM FUNDS (Cost $685,647) |
688,209
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,908,848) | | 6,527,038 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (209) |
NET ASSETS - 100% | $ 6,526,829 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 236,767 | $ 555,204 | $ 187,832 | $ 5,056 | $ 627,406 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 154,090 | 399,514 | 130,586 | 272 | 420,758 |
Fidelity Blue Chip Growth Fund | 142,546 | 351,367 | 129,415 | 758 | 395,403 |
Fidelity Capital & Income Fund | 65,481 | 158,177 | 47,048 | 5,610 | 181,213 |
Fidelity Equity-Income Fund | 219,578 | 516,061 | 161,434 | 11,427 | 611,104 |
Fidelity Government Income Fund | 123,795 | 317,815 | 83,481 | 4,029 | 361,466 |
Fidelity Institutional Money Market Portfolio Institutional Class | 113,294 | 309,797 | 78,712 | 190 | 344,380 |
Fidelity Large Cap Stock Fund | 164,807 | 403,581 | 135,879 | 2,964 | 459,909 |
Fidelity Series 100 Index Fund | 142,227 | 331,286 | 105,781 | 4,666 | 401,816 |
Fidelity Series Broad Market Opportunities Fund | 252,326 | 594,435 | 208,931 | 1,930 | 696,988 |
Fidelity Series Small Cap Opportunities Fund | 22,000 | 56,680 | 18,744 | 9 | 58,296 |
Fidelity Short-Term Bond Fund | 113,354 | 309,015 | 78,871 | 2,085 | 343,829 |
Fidelity Strategic Income Fund | 65,430 | 161,163 | 45,912 | 4,772 | 182,767 |
Fidelity Strategic Real Return Fund | 123,798 | 316,905 | 88,317 | 5,275 | 357,572 |
Fidelity Total Bond Fund | 372,304 | 951,903 | 250,399 | 21,031 | 1,084,131 |
Total | $ 2,311,797 | $ 5,732,903 | $ 1,751,342 | $ 70,074 | $ 6,527,038 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2038 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $5,908,848) - See accompanying schedule | | $ 6,527,038 |
Receivable for fund shares sold | | 40,500 |
Total assets | | 6,567,538 |
| | |
Liabilities | | |
Payable for investments purchased | $ 40,498 | |
Distribution and service plan fees payable | 211 | |
Total liabilities | | 40,709 |
| | |
Net Assets | | $ 6,526,829 |
Net Assets consist of: | | |
Paid in capital | | $ 5,880,451 |
Undistributed net investment income | | 1,151 |
Accumulated undistributed net realized gain (loss) on investments | | 27,037 |
Net unrealized appreciation (depreciation) on investments | | 618,190 |
Net Assets | | $ 6,526,829 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($177,524 ÷ 3,074.31 shares) | | $ 57.74 |
| | |
Maximum offering price per share (100/94.25 of $57.74) | | $ 61.26 |
Class T:
Net Asset Value and redemption price per share ($190,152 ÷ 3,293.29 shares) | | $ 57.74 |
| | |
Maximum offering price per share (100/96.50 of $57.74) | | $ 59.83 |
| | |
Class C:
Net Asset Value and offering price per share ($109,858 ÷ 1,908.73 shares)A | | $ 57.56 |
| | |
Income Replacement 2038:
Net Asset Value, offering price and redemption price per share ($6,016,811 ÷ 104,182.43 shares) | | $ 57.75 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($32,484 ÷ 562.49 shares) | | $ 57.75 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 70,074 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,185 | |
Independent trustees' compensation | 16 | |
Total expenses before reductions | 2,201 | |
Expense reductions | (16) | 2,185 |
Net investment income (loss) | | 67,889 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (14,725) | |
Capital gain distributions from underlying funds | 87,125 | |
Total net realized gain (loss) | | 72,400 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 248,398 |
Net gain (loss) | | 320,798 |
Net increase (decrease) in net assets resulting from operations | | $ 388,687 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 67,889 | $ 46,047 |
Net realized gain (loss) | 72,400 | 119,857 |
Change in net unrealized appreciation (depreciation) | 248,398 | 155,950 |
Net increase (decrease) in net assets resulting from operations | 388,687 | 321,854 |
Distributions to shareholders from net investment income | (67,101) | (45,956) |
Distributions to shareholders from net realized gain | (79,768) | (9,447) |
Total distributions | (146,869) | (55,403) |
Share transactions - net increase (decrease) | 3,973,364 | (46,535) |
Total increase (decrease) in net assets | 4,215,182 | 219,916 |
| | |
Net Assets | | |
Beginning of period | 2,311,647 | 2,091,731 |
End of period (including undistributed net investment income of $1,151 and undistributed net investment income of $363, respectively) | $ 6,526,829 | $ 2,311,647 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.44 | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .738 | .953 | .739 | .858 | .744 |
Net realized and unrealized gain (loss) | 4.763 | 6.186 | .384 | 5.317 | 4.191 |
Total from investment operations | 5.501 | 7.139 | 1.123 | 6.175 | 4.935 |
Distributions from net investment income | (.688) | (.909) | (.769) | (.802) | (.710) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.201) | (1.109) | (.903) | (.995) | (.875) |
Net asset value, end of period | $ 57.74 | $ 54.44 | $ 48.41 | $ 48.19 | $ 43.01 |
Total ReturnA, B | 10.39% | 14.95% | 2.44% | 14.43% | 12.72% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.31% | 1.85% | 1.59% | 1.82% | 1.76% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 178 | $ 121 | $ 76 | $ 34 | $ 32 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.44 | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .599 | .820 | .624 | .736 | .636 |
Net realized and unrealized gain (loss) | 4.761 | 6.201 | .367 | 5.326 | 4.191 |
Total from investment operations | 5.360 | 7.021 | .991 | 6.062 | 4.827 |
Distributions from net investment income | (.547) | (.781) | (.647) | (.689) | (.612) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.060) | (.981) | (.781) | (.882) | (.777) |
Net asset value, end of period | $ 57.74 | $ 54.44 | $ 48.40 | $ 48.19 | $ 43.01 |
Total ReturnA, B | 10.11% | 14.69% | 2.15% | 14.15% | 12.43% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.07% | 1.59% | 1.34% | 1.57% | 1.50% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 190 | $ 135 | $ 105 | $ 127 | $ 37 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.33 | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .315 | .561 | .390 | .505 | .424 |
Net realized and unrealized gain (loss) | 4.755 | 6.186 | .379 | 5.319 | 4.192 |
Total from investment operations | 5.070 | 6.747 | .769 | 5.824 | 4.616 |
Distributions from net investment income | (.327) | (.587) | (.435) | (.441) | (.421) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (1.840) | (.787) | (.569) | (.634) | (.586) |
Net asset value, end of period | $ 57.56 | $ 54.33 | $ 48.37 | $ 48.17 | $ 42.98 |
Total ReturnA, B | 9.57% | 14.10% | 1.67% | 13.59% | 11.87% |
Ratios to Average Net Assets D,E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .56% | 1.09% | .84% | 1.08% | 1.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 110 | $ 84 | $ 74 | $ 72 | $ 91 |
Portfolio turnover rate D | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2038
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .881 | 1.076 | .857 | .969 | .849 |
Net realized and unrealized gain (loss) | 4.759 | 6.200 | .377 | 5.332 | 4.187 |
Total from investment operations | 5.640 | 7.276 | 1.234 | 6.301 | 5.036 |
Distributions from net investment income | (.827) | (1.036) | (.880) | (.918) | (.831) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.340) | (1.236) | (1.014) | (1.111) | (.996) |
Net asset value, end of period | $ 57.75 | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 |
Total ReturnA | 10.66% | 15.26% | 2.68% | 14.74% | 12.99% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.56% | 2.10% | 1.84% | 2.07% | 2.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,017 | $ 1,942 | $ 1,811 | $ 1,345 | $ 2,051 |
Portfolio turnover rate C | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .879 | 1.078 | .857 | .973 | .848 |
Net realized and unrealized gain (loss) | 4.761 | 6.198 | .377 | 5.328 | 4.188 |
Total from investment operations | 5.640 | 7.276 | 1.234 | 6.301 | 5.036 |
Distributions from net investment income | (.827) | (1.036) | (.880) | (.918) | (.831) |
Distributions from net realized gain | (1.513) | (.200) | (.134) | (.193) | (.165) |
Total distributions | (2.340) | (1.236) | (1.014) | (1.111) | (.996) |
Net asset value, end of period | $ 57.75 | $ 54.45 | $ 48.41 | $ 48.19 | $ 43.00 |
Total ReturnA | 10.66% | 15.26% | 2.68% | 14.74% | 12.99% |
Ratios to Average Net Assets C,E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.56% | 2.10% | 1.84% | 2.07% | 2.01% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 32 | $ 29 | $ 25 | $ 29 | $ 38 |
Portfolio turnover rate C | 39% | 49% | 57% | 19% | 23% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.6 | 6.6 |
Fidelity Blue Chip Growth Fund | 6.2 | 6.3 |
Fidelity Equity-Income Fund | 9.6 | 9.5 |
Fidelity Large Cap Stock Fund | 7.2 | 7.1 |
Fidelity Series 100 Index Fund | 6.3 | 6.2 |
Fidelity Series Broad Market Opportunities Fund | 10.9 | 11.0 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 47.7 | 47.7 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 10.5 | 10.6 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 2.9 | 3.0 |
Fidelity Strategic Income Fund | 2.9 | 3.0 |
| 5.8 | 6.0 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.4 | 5.5 |
Fidelity Strategic Real Return Fund | 5.4 | 5.4 |
Fidelity Total Bond Fund | 16.2 | 16.3 |
| 27.0 | 27.2 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 4.5 | 4.2 |
Fidelity Short-Term Bond Fund | 4.5 | 4.3 |
| 9.0 | 8.5 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.5% | |
| High Yield Fixed-Income Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 27.0% | |
| Short-Term Funds | 9.0% | |
Six months ago |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.6% | |
| High Yield Fixed-Income Funds | 6.0% | |
| Investment Grade Fixed-Income Funds | 27.2% | |
| Short-Term Funds | 8.5% | |
Expected |
| Domestic Equity Funds | 47.7% | |
| International Equity Funds | 10.5% | |
| High Yield Fixed-Income Funds | 5.8% | |
| Investment Grade Fixed-Income Funds | 26.6% | |
| Short-Term Funds | 9.4% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2040 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 58.2% |
| Shares | | Value |
Domestic Equity Funds - 47.7% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 26,948 | | $ 570,769 |
Fidelity Blue Chip Growth Fund (b) | 8,040 | | 536,330 |
Fidelity Equity-Income Fund (b) | 13,511 | | 827,975 |
Fidelity Large Cap Stock Fund (b) | 22,519 | | 623,774 |
Fidelity Series 100 Index Fund (b) | 42,833 | | 544,835 |
Fidelity Series Broad Market Opportunities Fund (b) | 61,503 | | 944,688 |
Fidelity Series Small Cap Opportunities Fund (b) | 6,106 | | 79,140 |
TOTAL DOMESTIC EQUITY FUNDS | | 4,127,511 |
International Equity Funds - 10.5% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 22,847 | | 911,830 |
TOTAL EQUITY FUNDS (Cost $4,347,774) |
5,039,341
|
Fixed-Income Funds - 32.8% |
| | | |
High Yield Fixed-Income Funds - 5.8% |
Fidelity Capital & Income Fund (b) | 25,161 | | 252,865 |
Fidelity Strategic Income Fund (b) | 22,850 | | 255,004 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 507,869 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 27.0% |
Fidelity Government Income Fund (b) | 45,190 | | $ 468,618 |
Fidelity Strategic Real Return Fund (b) | 48,450 | | 463,668 |
Fidelity Total Bond Fund (b) | 131,518 | | 1,404,609 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 2,336,895 |
TOTAL FIXED-INCOME FUNDS (Cost $2,830,051) |
2,844,764
|
Short-Term Funds - 9.0% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 390,387 | | 390,387 |
Fidelity Short-Term Bond Fund (b) | 45,373 | | 389,755 |
TOTAL SHORT-TERM FUNDS (Cost $779,548) |
780,142
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,957,373) | | 8,664,247 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (390) |
NET ASSETS - 100% | $ 8,663,857 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 459,465 | $ 650,709 | $ 243,106 | $ 6,990 | $ 911,830 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 279,514 | 445,605 | 157,559 | 357 | 570,769 |
Fidelity Blue Chip Growth Fund | 259,016 | 391,018 | 159,510 | 1,160 | 536,330 |
Fidelity Capital & Income Fund | 122,327 | 182,125 | 58,611 | 8,218 | 252,865 |
Fidelity Equity-Income Fund | 398,541 | 576,228 | 203,013 | 15,625 | 827,975 |
Fidelity Government Income Fund | 216,334 | 345,782 | 98,137 | 5,484 | 468,618 |
Fidelity Institutional Money Market Portfolio Institutional Class | 160,455 | 306,618 | 76,686 | 218 | 390,387 |
Fidelity Large Cap Stock Fund | 299,339 | 445,336 | 162,411 | 4,025 | 623,774 |
Fidelity Series 100 Index Fund | 258,437 | 365,203 | 129,445 | 6,071 | 544,835 |
Fidelity Series Broad Market Opportunities Fund | 458,271 | 648,086 | 252,461 | 2,528 | 944,688 |
Fidelity Series Small Cap Opportunities Fund | 39,848 | 64,266 | 22,393 | 12 | 79,140 |
Fidelity Short-Term Bond Fund | 160,540 | 305,474 | 76,686 | 2,388 | 389,755 |
Fidelity Strategic Income Fund | 122,231 | 188,244 | 58,872 | 6,988 | 255,004 |
Fidelity Strategic Real Return Fund | 216,334 | 346,418 | 107,931 | 6,822 | 463,668 |
Fidelity Total Bond Fund | 650,627 | 1,038,097 | 298,609 | 28,707 | 1,404,609 |
Total | $ 4,101,279 | $ 6,299,209 | $ 2,105,430 | $ 95,593 | $ 8,664,247 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $7,957,373) - See accompanying schedule | | $ 8,664,247 |
Receivable for fund shares sold | | 25,000 |
Total assets | | 8,689,247 |
| | |
Liabilities | | |
Payable for investments purchased | $ 25,002 | |
Distribution and service plan fees payable | 388 | |
Total liabilities | | 25,390 |
| | |
Net Assets | | $ 8,663,857 |
Net Assets consist of: | | |
Paid in capital | | $ 7,921,152 |
Undistributed net investment income | | 1,543 |
Accumulated undistributed net realized gain (loss) on investments | | 34,288 |
Net unrealized appreciation (depreciation) on investments | | 706,874 |
Net Assets | | $ 8,663,857 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($108,893 ÷ 1,843.14 shares) | | $ 59.08 |
| | |
Maximum offering price per share (100/94.25 of $59.08) | | $ 62.68 |
Class T:
Net Asset Value and redemption price per share ($450,718 ÷ 7,620.11 shares) | | $ 59.15 |
| | |
Maximum offering price per share (100/96.50 of $59.15) | | $ 61.30 |
| | |
Class C:
Net Asset Value and offering price per share ($205,224 ÷ 3,488.73 shares)A | | $ 58.82 |
| | |
Income Replacement 2040:
Net Asset Value, offering price and redemption price per share ($7,881,689 ÷ 133,497.80 shares) | | $ 59.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($17,333 ÷ 293.57 shares) | | $ 59.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 95,593 |
| | |
Expenses | | |
Distribution and service plan fees | $ 2,553 | |
Independent trustees' compensation | 22 | |
Total expenses before reductions | 2,575 | |
Expense reductions | (22) | 2,553 |
Net investment income (loss) | | 93,040 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (950) | |
Capital gain distributions from underlying funds | 121,843 | |
Total net realized gain (loss) | | 120,893 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 370,134 |
Net gain (loss) | | 491,027 |
Net increase (decrease) in net assets resulting from operations | | $ 584,067 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2040 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 93,040 | $ 61,641 |
Net realized gain (loss) | 120,893 | 103,462 |
Change in net unrealized appreciation (depreciation) | 370,134 | 281,207 |
Net increase (decrease) in net assets resulting from operations | 584,067 | 446,310 |
Distributions to shareholders from net investment income | (92,218) | (61,371) |
Distributions to shareholders from net realized gain | (72,509) | (14,161) |
Total distributions | (164,727) | (75,532) |
Share transactions - net increase (decrease) | 4,143,369 | 1,101,109 |
Total increase (decrease) in net assets | 4,562,709 | 1,471,887 |
| | |
Net Assets | | |
Beginning of period | 4,101,148 | 2,629,261 |
End of period (including undistributed net investment income of $1,543 and undistributed net investment income of $721, respectively) | $ 8,663,857 | $ 4,101,148 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.91 | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .742 | .927 | .762 | .789 | .722 |
Net realized and unrealized gain (loss) | 5.022 | 6.538 | .331 | 5.608 | 4.298 |
Total from investment operations | 5.764 | 7.465 | 1.093 | 6.397 | 5.020 |
Distributions from net investment income | (.712) | (.933) | (.771) | (.805) | (.710) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.594) | (1.185) | (.903) | (.997) | (.810) |
Net asset value, end of period | $ 59.08 | $ 54.91 | $ 48.63 | $ 48.44 | $ 43.04 |
Total ReturnA, B | 10.68% | 15.58% | 2.36% | 14.94% | 12.97% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .24% F | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .24% F | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .24% F | .25% | .25% | .25% |
Net investment income (loss) | 1.28% | 1.79% | 1.64% | 1.67% | 1.70% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 109 | $ 10 | $ 7 | $ 96 | $ 34 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.00 | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .605 | .781 | .649 | .672 | .616 |
Net realized and unrealized gain (loss) | 5.021 | 6.563 | .312 | 5.604 | 4.301 |
Total from investment operations | 5.626 | 7.344 | .961 | 6.276 | 4.917 |
Distributions from net investment income | (.594) | (.702) | (.649) | (.704) | (.607) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.476) | (.954) | (.781) | (.896) | (.707) |
Net asset value, end of period | $ 59.15 | $ 55.00 | $ 48.61 | $ 48.43 | $ 43.05 |
Total ReturnA, B | 10.40% | 15.30% | 2.08% | 14.64% | 12.69% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .49% F | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% F | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .49% F | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.04% | 1.53% | 1.39% | 1.42% | 1.45% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 451 | $ 10 | $ 51 | $ 131 | $ 111 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.75 | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .304 | .532 | .415 | .435 | .402 |
Net realized and unrealized gain (loss) | 5.003 | 6.524 | .310 | 5.609 | 4.305 |
Total from investment operations | 5.307 | 7.056 | .725 | 6.044 | 4.707 |
Distributions from net investment income | (.355) | (.604) | (.463) | (.482) | (.397) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.237) | (.856) | (.595) | (.674) | (.497) |
Net asset value, end of period | $ 58.82 | $ 54.75 | $ 48.55 | $ 48.42 | $ 43.05 |
Total ReturnA, B | 9.84% | 14.71% | 1.57% | 14.08% | 12.13% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .53% | 1.03% | .89% | .93% | .95% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 205 | $ 154 | $ 107 | $ 79 | $ 99 |
Portfolio turnover rate D | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2040
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.87 | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .880 | 1.051 | .885 | .910 | .833 |
Net realized and unrealized gain (loss) | 5.027 | 6.531 | .317 | 5.602 | 4.297 |
Total from investment operations | 5.907 | 7.582 | 1.202 | 6.512 | 5.130 |
Distributions from net investment income | (.855) | (1.050) | (.900) | (.940) | (.820) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.737) | (1.302) | (1.032) | (1.132) | (.920) |
Net asset value, end of period | $ 59.04 | $ 54.87 | $ 48.59 | $ 48.42 | $ 43.04 |
Total ReturnA | 10.97% | 15.86% | 2.60% | 15.21% | 13.26% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductionsD | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 2.03% | 1.89% | 1.93% | 1.96% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,882 | $ 3,925 | $ 2,462 | $ 1,797 | $ 1,262 |
Portfolio turnover rate C | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 54.88 | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .887 | 1.040 | .865 | .906 | .828 |
Net realized and unrealized gain (loss) | 5.010 | 6.552 | .327 | 5.616 | 4.302 |
Total from investment operations | 5.897 | 7.592 | 1.192 | 6.522 | 5.130 |
Distributions from net investment income | (.855) | (1.050) | (.900) | (.940) | (.820) |
Distributions from net realized gain | (.882) | (.252) | (.132) | (.192) | (.100) |
Total distributions | (1.737) | (1.302) | (1.032) | (1.132) | (.920) |
Net asset value, end of period | $ 59.04 | $ 54.88 | $ 48.59 | $ 48.43 | $ 43.04 |
Total ReturnA | 10.95% | 15.88% | 2.58% | 15.24% | 13.26% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.53% | 2.03% | 1.89% | 1.93% | 1.96% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17 | $ 2 | $ 2 | $ 48 | $ 62 |
Portfolio turnover rate C | 34% | 30% | 63% | 75% | 129% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2042 Fund
Investment Changes (Unaudited)
The information in the following tables is based on the direct investments of the Fund. |
Fund Holdings as of July 31, 2014 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.8 | 6.8 |
Fidelity Blue Chip Growth Fund | 6.3 | 6.4 |
Fidelity Equity-Income Fund | 9.8 | 9.8 |
Fidelity Large Cap Stock Fund | 7.4 | 7.3 |
Fidelity Series 100 Index Fund | 6.5 | 6.4 |
Fidelity Series Broad Market Opportunities Fund | 11.2 | 11.3 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 48.9 | 49.0 |
International Equity Funds | | |
Fidelity Advisor International Discovery Fund Institutional Class | 11.6 | 11.7 |
High Yield Fixed-Income Funds | | |
Fidelity Capital & Income Fund | 3.1 | 3.2 |
Fidelity Strategic Income Fund | 3.1 | 3.2 |
| 6.2 | 6.4 |
Investment Grade Fixed-Income Funds | | |
Fidelity Government Income Fund | 5.4 | 5.4 |
Fidelity Strategic Real Return Fund | 5.3 | 5.4 |
Fidelity Total Bond Fund | 16.0 | 16.2 |
| 26.7 | 27.0 |
Short-Term Funds | | |
Fidelity Institutional Money Market Portfolio Institutional Class | 3.3 | 2.9 |
Fidelity Short-Term Bond Fund | 3.3 | 3.0 |
| 6.6 | 5.9 |
Net Other Assets (Liabilities)* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
Period end |
| Domestic Equity Funds | 48.9% | |
| International Equity Funds | 11.6% | |
| High Yield Fixed-Income Funds | 6.2% | |
| Investment Grade Fixed-Income Funds | 26.7% | |
| Short-Term Funds | 6.6% | |
Six months ago |
| Domestic Equity Funds | 49.0% | |
| International Equity Funds | 11.7% | |
| High Yield Fixed-Income Funds | 6.4% | |
| Investment Grade Fixed-Income Funds | 27.0% | |
| Short-Term Funds | 5.9% | |
Expected |
| Domestic Equity Funds | 49.0% | |
| International Equity Funds | 11.4% | |
| High Yield Fixed-Income Funds | 6.0% | |
| Investment Grade Fixed-Income Funds | 26.4% | |
| Short-Term Funds | 7.2% | |
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 January 31, 2014. The period end allocation is based on the fund's holdings as of July 31, 2014. The expected allocation represents the fund's anticipated allocation at January 31, 2015. |
Annual Report
Fidelity Income Replacement 2042 Fund
Investments July 31, 2014
Showing Percentage of Net Assets
Equity Funds - 60.5% |
| Shares | | Value |
Domestic Equity Funds - 48.9% |
Fidelity Advisor Mid Cap II Fund Institutional Class (b) | 107,995 | | $ 2,287,329 |
Fidelity Blue Chip Growth Fund (b) | 32,226 | | 2,149,768 |
Fidelity Equity-Income Fund (b) | 54,179 | | 3,320,092 |
Fidelity Large Cap Stock Fund (b) | 90,333 | | 2,502,226 |
Fidelity Series 100 Index Fund (b) | 171,688 | | 2,183,876 |
Fidelity Series Broad Market Opportunities Fund (b) | 246,673 | | 3,788,904 |
Fidelity Series Small Cap Opportunities Fund (b) | 24,613 | | 318,990 |
TOTAL DOMESTIC EQUITY FUNDS | | 16,551,185 |
International Equity Funds - 11.6% |
Fidelity Advisor International Discovery Fund Institutional Class (b) | 97,857 | | 3,905,472 |
TOTAL EQUITY FUNDS (Cost $17,561,177) |
20,456,657
|
Fixed-Income Funds - 32.9% |
| | | |
High Yield Fixed-Income Funds - 6.2% |
Fidelity Capital & Income Fund (b) | 104,072 | | 1,045,928 |
Fidelity Strategic Income Fund (b) | 94,513 | | 1,054,767 |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | | 2,100,695 |
|
| Shares | | Value |
Investment Grade Fixed-Income Funds - 26.7% |
Fidelity Government Income Fund (b) | 174,925 | | $ 1,813,971 |
Fidelity Strategic Real Return Fund (b) | 187,545 | | 1,794,805 |
Fidelity Total Bond Fund (b) | 508,777 | | 5,433,737 |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | | 9,042,513 |
TOTAL FIXED-INCOME FUNDS (Cost $10,989,575) |
11,143,208
|
Short-Term Funds - 6.6% |
| | | |
Fidelity Institutional Money Market Portfolio Institutional Class 0.09% (a)(b) | 1,118,632 | | 1,118,632 |
Fidelity Short-Term Bond Fund (b) | 130,011 | | 1,116,794 |
TOTAL SHORT-TERM FUNDS (Cost $2,232,995) |
2,235,426
|
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $30,783,747) | | 33,835,291 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (612) |
NET ASSETS - 100% | $ 33,834,679 |
Legend |
(a) The rate quoted is the annualized seven-day yield of the fund at period end. |
(b) Affiliated Fund |
Affiliated Underlying Funds |
Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Fidelity Advisor International Discovery Fund Institutional Class | $ 1,747,407 | $ 2,489,959 | $ 495,690 | $ 29,506 | $ 3,905,472 |
Fidelity Advisor Mid Cap II Fund Institutional Class | 997,084 | 1,586,748 | 302,112 | 1,386 | 2,287,329 |
Fidelity Blue Chip Growth Fund | 923,125 | 1,380,913 | 327,567 | 4,338 | 2,149,768 |
Fidelity Capital & Income Fund | 450,899 | 683,962 | 116,549 | 33,218 | 1,045,928 |
Fidelity Equity-Income Fund | 1,419,415 | 2,090,323 | 408,224 | 62,267 | 3,320,092 |
Fidelity Government Income Fund | 742,543 | 1,223,502 | 169,314 | 20,743 | 1,813,971 |
Fidelity Institutional Money Market Portfolio Institutional Class | 373,043 | 820,665 | 75,076 | 585 | 1,118,632 |
Fidelity Large Cap Stock Fund | 1,067,175 | 1,589,244 | 312,271 | 15,727 | 2,502,226 |
Fidelity Series 100 Index Fund | 921,057 | 1,305,875 | 240,239 | 23,413 | 2,183,876 |
Fidelity Series Broad Market Opportunities Fund | 1,632,066 | 2,299,619 | 488,199 | 9,804 | 3,788,904 |
Fidelity Series Small Cap Opportunities Fund | 142,355 | 232,285 | 45,287 | 46 | 318,990 |
Fidelity Short-Term Bond Fund | 373,234 | 820,468 | 77,824 | 6,442 | 1,116,794 |
Fidelity Strategic Income Fund | 450,550 | 707,312 | 116,967 | 28,275 | 1,054,767 |
Fidelity Strategic Real Return Fund | 742,556 | 1,225,262 | 206,867 | 26,072 | 1,794,805 |
Fidelity Total Bond Fund | 2,230,384 | 3,676,591 | 527,183 | 108,366 | 5,433,737 |
Total | $ 14,212,893 | $ 22,132,728 | $ 3,909,369 | $ 370,188 | $ 33,835,291 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Income Replacement 2042 Fund
Statement of Assets and Liabilities
| July 31, 2014 |
| | |
Assets | | |
Investment in securities, at value (cost $30,783,747) - See accompanying schedule | | $ 33,835,291 |
Receivable for investments sold | | 16,307 |
Receivable for fund shares sold | | 25,000 |
Total assets | | 33,876,598 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 41,300 | |
Distribution and service plan fees payable | 619 | |
Total liabilities | | 41,919 |
| | |
Net Assets | | $ 33,834,679 |
Net Assets consist of: | | |
Paid in capital | | $ 30,568,723 |
Undistributed net investment income | | 5,782 |
Accumulated undistributed net realized gain (loss) on investments | | 208,630 |
Net unrealized appreciation (depreciation) on investments | | 3,051,544 |
Net Assets | | $ 33,834,679 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($565,331 ÷ 9,555.31 shares) | | $ 59.16 |
| | |
Maximum offering price per share (100/94.25 of $59.16) | | $ 62.77 |
Class T:
Net Asset Value and redemption price per share ($481,685 ÷ 8,139.57 shares) | | $ 59.18 |
| | |
Maximum offering price per share (100/96.50 of $59.18) | | $ 61.33 |
| | |
Class C:
Net Asset Value and offering price per share ($366,224 ÷ 6,206.72 shares)A | | $ 59.00 |
| | |
Income Replacement 2042:
Net Asset Value, offering price and redemption price per share ($32,312,500 ÷ 545,964.54 shares) | | $ 59.18 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($108,939 ÷ 1,840.79 shares) | | $ 59.18 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
| Year ended July 31, 2014 |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 370,188 |
| | |
Expenses | | |
Distribution and service plan fees | $ 4,843 | |
Independent trustees' compensation | 85 | |
Total expenses before reductions | 4,928 | |
Expense reductions | (85) | 4,843 |
Net investment income (loss) | | 365,345 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (28,795) | |
Capital gain distributions from underlying funds | 470,345 | |
Total net realized gain (loss) | | 441,550 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 1,427,819 |
Net gain (loss) | | 1,869,369 |
Net increase (decrease) in net assets resulting from operations | | $ 2,234,714 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
July 31,
2014 | Year ended
July 31,
2013 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 365,345 | $ 218,472 |
Net realized gain (loss) | 441,550 | 390,240 |
Change in net unrealized appreciation (depreciation) | 1,427,819 | 1,032,865 |
Net increase (decrease) in net assets resulting from operations | 2,234,714 | 1,641,577 |
Distributions to shareholders from net investment income | (361,966) | (217,103) |
Distributions to shareholders from net realized gain | (405,210) | (34,182) |
Total distributions | (767,176) | (251,285) |
Share transactions - net increase (decrease) | 18,154,401 | 5,481,063 |
Total increase (decrease) in net assets | 19,621,939 | 6,871,355 |
| | |
Net Assets | | |
Beginning of period | 14,212,740 | 7,341,385 |
End of period (including undistributed net investment income of $5,782 and undistributed net investment income of $2,401, respectively) | $ 33,834,679 | $ 14,212,740 |
Financial Highlights - Class A
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.32 | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .755 | .977 | .782 | .757 | .747 |
Net realized and unrealized gain (loss) | 5.194 | 6.833 | .281 | 5.719 | 4.285 |
Total from investment operations | 5.949 | 7.810 | 1.063 | 6.476 | 5.032 |
Distributions from net investment income | (.747) | (.973) | (.791) | (.801) | (.717) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.109) | (1.150) | (.923) | (.996) | (.822) |
Net asset value, end of period | $ 59.16 | $ 55.32 | $ 48.66 | $ 48.52 | $ 43.04 |
Total ReturnA, B | 11.01% | 16.28% | 2.30% | 15.12% | 13.00% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .25% | .25% | .25% | .25% | .25% |
Expenses net of fee waivers, if any | .25% | .25% | .25% | .25% | .25% |
Expenses net of all reductions | .25% | .25% | .25% | .25% | .25% |
Net investment income (loss) | 1.30% | 1.86% | 1.66% | 1.61% | 1.77% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 565 | $ 70 | $ 20 | $ 23 | $ 29 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.33 | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .605 | .836 | .660 | .637 | .642 |
Net realized and unrealized gain (loss) | 5.216 | 6.839 | .287 | 5.727 | 4.281 |
Total from investment operations | 5.821 | 7.675 | .947 | 6.364 | 4.923 |
Distributions from net investment income | (.609) | (.838) | (.675) | (.679) | (.608) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (1.971) | (1.015) | (.807) | (.874) | (.713) |
Net asset value, end of period | $ 59.18 | $ 55.33 | $ 48.67 | $ 48.53 | $ 43.04 |
Total ReturnA, B | 10.77% | 15.98% | 2.05% | 14.85% | 12.71% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .50% | .50% | .50% | .50% | .50% |
Net investment income (loss) | 1.05% | 1.61% | 1.42% | 1.35% | 1.52% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 482 | $ 153 | $ 132 | $ 29 | $ 37 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Class C
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.21 | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 |
Income from Investment Operations | | | | | |
Net investment income (loss) C | .317 | .582 | .427 | .402 | .430 |
Net realized and unrealized gain (loss) | 5.194 | 6.821 | .290 | 5.719 | 4.275 |
Total from investment operations | 5.511 | 7.403 | .717 | 6.121 | 4.705 |
Distributions from net investment income | (.359) | (.656) | (.465) | (.456) | (.390) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (1.721) | (.833) | (.597) | (.651) | (.495) |
Net asset value, end of period | $ 59.00 | $ 55.21 | $ 48.64 | $ 48.52 | $ 43.05 |
Total ReturnA, B | 10.19% | 15.40% | 1.55% | 14.26% | 12.12% |
Ratios to Average Net Assets D, E | | | | | |
Expenses before reductions | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Expenses net of fee waivers, if any | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00% | .99% F | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | .55% | 1.12% | .91% | .85% | 1.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 366 | $ 97 | $ 24 | $ 28 | $ 37 |
Portfolio turnover rate D | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Amounts do not include the activity of the Underlying Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Ratios for small asset classes differ from contractual rates due to rounding of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Income Replacement 2042
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.32 | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .896 | 1.099 | .897 | .880 | .857 |
Net realized and unrealized gain (loss) | 5.202 | 6.837 | .284 | 5.719 | 4.279 |
Total from investment operations | 6.098 | 7.936 | 1.181 | 6.599 | 5.136 |
Distributions from net investment income | (.876) | (1.089) | (.909) | (.924) | (.831) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.238) | (1.266) | (1.041) | (1.119) | (.936) |
Net asset value, end of period | $ 59.18 | $ 55.32 | $ 48.65 | $ 48.51 | $ 43.03 |
Total ReturnA | 11.30% | 16.57% | 2.56% | 15.42% | 13.27% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.11% | 1.91% | 1.86% | 2.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 32,313 | $ 13,862 | $ 7,139 | $ 5,524 | $ 3,395 |
Portfolio turnover rate C | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
Financial Highlights - Institutional Class
Years ended July 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 55.31 | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .897 | 1.095 | .896 | .874 | .855 |
Net realized and unrealized gain (loss) | 5.211 | 6.841 | .275 | 5.725 | 4.281 |
Total from investment operations | 6.108 | 7.936 | 1.171 | 6.599 | 5.136 |
Distributions from net investment income | (.876) | (1.089) | (.909) | (.924) | (.831) |
Distributions from net realized gain | (1.362) | (.177) | (.132) | (.195) | (.105) |
Total distributions | (2.238) | (1.266) | (1.041) | (1.119) | (.936) |
Net asset value, end of period | $ 59.18 | $ 55.31 | $ 48.64 | $ 48.51 | $ 43.03 |
Total ReturnA | 11.32% | 16.57% | 2.54% | 15.42% | 13.27% |
Ratios to Average Net Assets C, E | | | | | |
Expenses before reductions D | .00% | .00% | .00% | .00% | .00% |
Expenses net of fee waivers, if any | .00% | .00% | .00% | .00% | .00% |
Expenses net of all reductions | .00% | .00% | .00% | .00% | .00% |
Net investment income (loss) | 1.55% | 2.11% | 1.91% | 1.86% | 2.02% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 109 | $ 30 | $ 26 | $ 29 | $ 38 |
Portfolio turnover rate C | 16% | 34% | 40% | 15% | 20% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Amounts do not include the activity of the Underlying Funds.
D Amount represents less than .01%.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended July 31, 2014
1. Organization.
Fidelity Income Replacement 2016 FundSM, Fidelity Income Replacement 2018 FundSM, Fidelity Income Replacement 2020 FundSM, Fidelity Income Replacement 2022 FundSM, Fidelity Income Replacement 2024 FundSM, Fidelity Income Replacement 2026 FundSM, Fidelity Income Replacement 2028 FundSM, Fidelity Income Replacement 2030 FundSM, Fidelity Income Replacement 2032 FundSM, Fidelity Income Replacement 2034 FundSM, Fidelity Income Replacement 2036 FundSM, Fidelity Income Replacement 2038 FundSM, Fidelity Income Replacement 2040 FundSM and Fidelity Income Replacement 2042 FundSM (the Funds) are funds of Fidelity Income Fund (the Trust). The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. The Funds invest primarily in a combination of other Fidelity equity, bond, and short-term funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR).
The Funds are designed for investors who seek to convert accumulated assets into regular payments over a defined period of time. The payment strategy for each Fund is designed to be implemented through a shareholder's voluntary participation in the Smart Payment Program. Participation in the Smart Payment Program will result in the gradual liquidation of the shareholder's entire investment in the Fund by its horizon date. Each Fund's name refers to the year of its horizon date.
Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund offer Class A, Class T, Class C, Income Replacement and Institutional Class shares. Fidelity Income Replacement 2016 Fund and Fidelity Income Replacement 2018 Fund offer Income Replacement shares. Fidelity Income Replacement 2016 Fund's (effective after the close of business on January 31, 2012) and Fidelity Income Replacement 2018 Fund's (effective after the close of business on May 30, 2014) Class A, Class T, Class C and Institutional Class shares are closed to new accounts and additional purchases, except for reinvestments. Each class has equal rights as to assets and voting privileges, except for matters affecting a single class.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists each of the Underlying Funds as an investment of the Fund but does not include the underlying holdings of each Underlying Fund. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with the Underlying Funds. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Underlying Funds' expenses through the impact of these expenses on each Underlying Fund's NAV. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2014, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized
appreciation | Gross unrealized
depreciation | Net unrealized
appreciation
(depreciation) on
securities and other
investments |
Fidelity Income Replacement 2016 Fund | $ 4,727,979 | $ 266,625 | $ - | $ 266,625 |
Fidelity Income Replacement 2018 Fund | 6,879,868 | 358,934 | (38,806) | 320,128 |
Fidelity Income Replacement 2020 Fund | 7,895,745 | 748,229 | (34,529) | 713,700 |
Fidelity Income Replacement 2022 Fund | 10,060,026 | 597,953 | (53,513) | 544,440 |
Fidelity Income Replacement 2024 Fund | 6,988,599 | 453,850 | (27,940) | 425,910 |
Fidelity Income Replacement 2026 Fund | 4,000,042 | 324,496 | (18,964) | 305,532 |
Fidelity Income Replacement 2028 Fund | 21,717,924 | 1,310,459 | (98,149) | 1,212,310 |
Fidelity Income Replacement 2030 Fund | 14,706,102 | 1,205,374 | (45,783) | 1,159,591 |
Fidelity Income Replacement 2032 Fund | 7,258,651 | 833,897 | (38,464) | 795,433 |
Fidelity Income Replacement 2034 Fund | 7,977,839 | 855,829 | (27,841) | 827,988 |
Fidelity Income Replacement 2036 Fund | 6,642,877 | 687,221 | (42,288) | 644,933 |
Fidelity Income Replacement 2038 Fund | 5,931,649 | 616,384 | (20,995) | 595,389 |
Fidelity Income Replacement 2040 Fund | 7,984,252 | 718,128 | (38,133) | 679,995 |
Fidelity Income Replacement 2042 Fund | 30,856,879 | 3,103,053 | (124,641) | 2,978,412 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed
ordinary income | Undistributed
long-term capital
gain | Capital loss
carryforward | Net unrealized
appreciation
(depreciation) |
Fidelity Income Replacement 2016 Fund | $ 490 | $ 83,012 | $ - | $ 266,625 |
Fidelity Income Replacement 2018 Fund | 1,164 | - | (330,516) | 320,128 |
Fidelity Income Replacement 2020 Fund | 6,355 | 61,768 | - | 713,700 |
Fidelity Income Replacement 2022 Fund | 7,205 | - | (408,076) | 544,440 |
Fidelity Income Replacement 2024 Fund | 2,870 | 49,065 | - | 425,910 |
Fidelity Income Replacement 2026 Fund | 821 | - | (105,055) | 305,532 |
Fidelity Income Replacement 2028 Fund | 4,387 | - | (178,957) | 1,212,310 |
Fidelity Income Replacement 2030 Fund | 3,020 | 94,764 | - | 1,159,591 |
Fidelity Income Replacement 2032 Fund | 1,555 | 35,363 | (36,427) | 795,433 |
Fidelity Income Replacement 2034 Fund | 1,698 | 72,754 | - | 827,988 |
Fidelity Income Replacement 2036 Fund | 1,300 | - | (8,454) | 644,933 |
Fidelity Income Replacement 2038 Fund | 1,151 | 49,838 | - | 595,389 |
Fidelity Income Replacement 2040 Fund | 1,543 | 66,773 | (5,605) | 679,995 |
Fidelity Income Replacement 2042 Fund | 5,782 | 281,761 | - | 2,978,412 |
Annual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2018 | 2019 | Total with expiration |
Fidelity Income Replacement 2018 Fund | $ (293,304) | $ (37,212) | $ (330,516) |
Fidelity Income Replacement 2022 Fund | (333,958) | (74,118) | (408,076) |
Fidelity Income Replacement 2026 Fund | (105,055) | - | (105,055) |
Fidelity Income Replacement 2028 Fund | - | (178,957) | (178,957) |
Fidelity Income Replacement 2032 Fund | (36,427) | - | (36,427) |
Fidelity Income Replacement 2036 Fund | (5,577) | (2,877) | (8,454) |
Fidelity Income Replacement 2040 Fund | - | (5,605) | (5,605) |
Due to large redemptions or subscriptions in a prior period, capital losses that will be available to offset future capital gains of Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2032 Fund and Fidelity Income Replacement 2040 Fund will be limited to approximately $28,019, $38,679, and $27,942 per year, respectively.
Due to large redemptions during November 2013, capital losses that will be available to offset future capital gains of Fidelity Income Replacement 2022 Fund will be limited to approximately $216,299 per year.
The tax character of distributions paid was as follows:
July 31, 2014 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2016 Fund | $ 46,510 | $ - | $ 46,510 |
Fidelity Income Replacement 2018 Fund | 87,147 | - | 87,147 |
Fidelity Income Replacement 2020 Fund | 112,536 | 37,741 | 150,277 |
Fidelity Income Replacement 2022 Fund | 130,346 | - | 130,346 |
Fidelity Income Replacement 2024 Fund | 88,925 | 17,150 | 106,075 |
Fidelity Income Replacement 2026 Fund | 59,690 | - | 59,690 |
Fidelity Income Replacement 2028 Fund | 205,399 | - | 205,399 |
Fidelity Income Replacement 2030 Fund | 203,588 | - | 203,588 |
Fidelity Income Replacement 2032 Fund | 122,360 | 55,932 | 178,292 |
Fidelity Income Replacement 2034 Fund | 109,903 | 18,311 | 128,214 |
Fidelity Income Replacement 2036 Fund | 105,819 | - | 105,819 |
Fidelity Income Replacement 2038 Fund | 80,309 | 66,560 | 146,869 |
Fidelity Income Replacement 2040 Fund | 110,838 | 53,889 | 164,727 |
Fidelity Income Replacement 2042 Fund | 433,304 | 333,872 | 767,176 |
July 31, 2013 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2016 Fund | $ 112,389 | $ - | $ 112,389 |
Fidelity Income Replacement 2018 Fund | 118,283 | - | 118,283 |
Fidelity Income Replacement 2020 Fund | 114,787 | - | 114,787 |
Fidelity Income Replacement 2022 Fund | 104,849 | - | 104,849 |
Fidelity Income Replacement 2024 Fund | 51,499 | - | 51,499 |
Fidelity Income Replacement 2026 Fund | 45,798 | - | 45,798 |
Fidelity Income Replacement 2028 Fund | 150,766 | - | 150,766 |
Fidelity Income Replacement 2030 Fund | 97,611 | - | 97,611 |
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
July 31, 2013 | | | |
| Ordinary Income | Long-term Capital Gains | Total |
Fidelity Income Replacement 2032 Fund | $ 98,149 | $ 16,448 | $ 114,597 |
Fidelity Income Replacement 2034 Fund | 66,127 | - | 66,127 |
Fidelity Income Replacement 2036 Fund | 83,395 | - | 83,395 |
Fidelity Income Replacement 2038 Fund | 55,403 | - | 55,403 |
Fidelity Income Replacement 2040 Fund | 72,475 | 3,057 | 75,532 |
Fidelity Income Replacement 2042 Fund | 251,285 | - | 251,285 |
3. Purchases and Redemptions of Underlying Fund Shares.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
Fidelity Income Replacement 2016 Fund | 1,743,054 | 3,161,790 |
Fidelity Income Replacement 2018 Fund | 4,889,836 | 3,609,165 |
Fidelity Income Replacement 2020 Fund | 4,144,185 | 1,830,333 |
Fidelity Income Replacement 2022 Fund | 7,437,374 | 2,080,096 |
Fidelity Income Replacement 2024 Fund | 5,915,742 | 1,615,627 |
Fidelity Income Replacement 2026 Fund | 2,907,301 | 927,461 |
Fidelity Income Replacement 2028 Fund | 16,532,712 | 2,223,652 |
Fidelity Income Replacement 2030 Fund | 12,543,717 | 3,188,735 |
Fidelity Income Replacement 2032 Fund | 4,846,618 | 1,946,010 |
Fidelity Income Replacement 2034 Fund | 5,500,640 | 1,231,765 |
Fidelity Income Replacement 2036 Fund | 3,896,353 | 1,541,808 |
Fidelity Income Replacement 2038 Fund | 5,732,903 | 1,751,342 |
Fidelity Income Replacement 2040 Fund | 6,299,209 | 2,105,430 |
Fidelity Income Replacement 2042 Fund | 22,132,728 | 3,909,369 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (the investment adviser), an affiliate of FMR, provides the Funds with investment management related services. The Funds do not pay any fees for these services. Under the management contract, the investment adviser pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, each Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of each Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Fidelity Income Replacement 2016 Fund | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 615 | $ 2 |
Class T | .25% | .25% | 644 | 2 |
Class C | .75% | .25% | 5,150 | 1 |
| | | $ 6,409 | $ 5 |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | -% | .25% | $ 2,073 | $ - |
Class T | .25% | .25% | 2,092 | 2 |
Class C | .75% | .25% | 5,639 | 1,927 |
| | | $ 9,804 | $ 1,929 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | -% | .25% | $ 1,918 | $ 405 |
Class T | .25% | .25% | 478 | 6 |
Class C | .75% | .25% | 4,539 | 925 |
| | | $ 6,935 | $ 1,336 |
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2022 Fund | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| | | | |
Class A | -% | .25% | $ 975 | $ 4 |
Class T | .25% | .25% | 32 | 4 |
Class C | .75% | .25% | 1,584 | 1,272 |
| | | $ 2,591 | $ 1,280 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | -% | .25% | $ 894 | $ 301 |
Class T | .25% | .25% | 960 | 246 |
Class C | .75% | .25% | 1,296 | 56 |
| | | $ 3,150 | $ 603 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | -% | .25% | $ 902 | $ - |
Class T | .25% | .25% | 470 | 36 |
Class C | .75% | .25% | 320 | 320 |
| | | $ 1,692 | $ 356 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | -% | .25% | $ 447 | $ - |
Class T | .25% | .25% | 1,676 | 2 |
Class C | .75% | .25% | 223 | - |
| | | $ 2,346 | $ 2 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | -% | .25% | $ 536 | $ 4 |
Class T | .25% | .25% | 82 | 38 |
Class C | .75% | .25% | 3,151 | 309 |
| | | $ 3,769 | $ 351 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | -% | .25% | $ 998 | $ 20 |
Class T | .25% | .25% | 164 | 140 |
Class C | .75% | .25% | 920 | 480 |
| | | $ 2,082 | $ 640 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | -% | .25% | $ 228 | $ 52 |
Class T | .25% | .25% | 465 | 140 |
Class C | .75% | .25% | 548 | 212 |
| | | $ 1,241 | $ 404 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | -% | .25% | $ 313 | $ 62 |
Class T | .25% | .25% | 1,760 | 34 |
Class C | .75% | .25% | 3,612 | 1,107 |
| | | $ 5,685 | $ 1,203 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | -% | .25% | $ 352 | $ 9 |
Class T | .25% | .25% | 780 | 30 |
Class C | .75% | .25% | 1,053 | 175 |
| | | $ 2,185 | $ 214 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | -% | .25% | $ 144 | $ 22 |
Class T | .25% | .25% | 676 | 34 |
Class C | .75% | .25% | 1,733 | 260 |
| | | $ 2,553 | $ 316 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | -% | .25% | $ 796 | $ 51 |
Class T | .25% | .25% | 2,064 | 154 |
Class C | .75% | .25% | 1,983 | 1,605 |
| | | $ 4,843 | $ 1,810 |
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of each Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Fidelity Income Replacement 2018 Fund | |
Class A | $ 840 |
Class T | 38 |
Class C* | 229 |
| $ 1,107 |
Fidelity Income Replacement 2020 Fund | |
Class A | $ 2,022 |
| |
Fidelity Income Replacement 2022 Fund | |
Class A | $ 224 |
| |
Fidelity Income Replacement 2024 Fund | |
Class A | $ 417 |
Class C* | 14 |
| $ 431 |
Fidelity Income Replacement 2026 Fund | |
Class T | $ 7 |
| |
Fidelity Income Replacement 2028 Fund | |
Class A | $ 976 |
Class T | 299 |
| $ 1,275 |
Fidelity Income Replacement 2030 Fund | |
Class A | $ 695 |
| |
Fidelity Income Replacement 2032 Fund | |
Class T | $ 36 |
| |
Fidelity Income Replacement 2036 Fund | |
Class A | $ 1,150 |
Class T | 383 |
| $ 1,533 |
Fidelity Income Replacement 2038 Fund | |
Class A | $ 341 |
| |
Fidelity Income Replacement 2040 Fund | |
Class A | $ 263 |
| |
Fidelity Income Replacement 2042 Fund | |
Class A | $ 3,718 |
Class T | 191 |
Class C* | 436 |
| $ 4,345 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
5. Expense Reductions.
FMR voluntarily agreed to reimburse the Funds to the extent annual operating expenses exceeded distribution and service plan fees applicable to each class. Some expenses, for example interest expense, are excluded from this reimbursement.
Annual Report
5. Expense Reductions - continued
The following Funds were in reimbursement during the period:
| Reimbursement* |
Fidelity Income Replacement 2016 Fund | $ 23 |
Fidelity Income Replacement 2018 Fund | 25 |
Fidelity Income Replacement 2020 Fund | 27 |
Fidelity Income Replacement 2022 Fund | 28 |
Fidelity Income Replacement 2024 Fund | 19 |
Fidelity Income Replacement 2026 Fund | 13 |
Fidelity Income Replacement 2028 Fund | 43 |
Fidelity Income Replacement 2030 Fund | 42 |
Fidelity Income Replacement 2032 Fund | 25 |
Fidelity Income Replacement 2034 Fund | 23 |
Fidelity Income Replacement 2036 Fund | 23 |
Fidelity Income Replacement 2038 Fund | 16 |
Fidelity Income Replacement 2040 Fund | 22 |
Fidelity Income Replacement 2042 Fund | 85 |
* Represents total amount reimbursed to the Fund. Each class has received a pro-rata allocation of reimbursement.
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2016 Fund | | |
From net investment income | | |
Class A | $ 1,345 | $ 7,086 |
Class T | 402 | 1,130 |
Class C | 403 | 2,837 |
Income Replacement 2016 | 39,487 | 70,663 |
Institutional Class | 198 | 447 |
Total | $ 41,835 | $ 82,163 |
From net realized gain | | |
Class A | $ 158 | $ 3,311 |
Class T | 101 | 617 |
Class C | 411 | 3,251 |
Income Replacement 2016 | 3,986 | 22,904 |
Institutional Class | 19 | 143 |
Total | $ 4,675 | $ 30,226 |
Fidelity Income Replacement 2018 Fund | | |
From net investment income | | |
Class A | $ 9,032 | $ 9,944 |
Class T | 3,943 | 1,343 |
Class C | 1,972 | 2,932 |
Income Replacement 2018 | 56,430 | 64,536 |
Institutional Class | 6,175 | 7,319 |
Total | $ 77,552 | $ 86,074 |
From net realized gain | | |
Class A | $ 1,216 | $ 4,058 |
Class T | 709 | 695 |
Class C | 655 | 2,364 |
Income Replacement 2018 | 6,313 | 22,722 |
Institutional Class | 702 | 2,370 |
Total | $ 9,595 | $ 32,209 |
Annual Report
Notes to Financial Statements - continued
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2020 Fund | | |
From net investment income | | |
Class A | $ 9,552 | $ 5,982 |
Class T | 909 | 2,133 |
Class C | 2,089 | 2,522 |
Income Replacement 2020 | 86,108 | 78,702 |
Institutional Class | 991 | 242 |
Total | $ 99,649 | $ 89,581 |
From net realized gain | | |
Class A | $ 5,948 | $ 1,965 |
Class T | 736 | 907 |
Class C | 2,820 | 1,535 |
Income Replacement 2020 | 40,555 | 20,732 |
Institutional Class | 569 | 67 |
Total | $ 50,628 | $ 25,206 |
Fidelity Income Replacement 2022 Fund | | |
From net investment income | | |
Class A | $ 4,868 | $ 5,998 |
Class T | 68 | 12 |
Class C | 834 | 279 |
Income Replacement 2022 | 108,906 | 76,474 |
Institutional Class | 400 | 64 |
Total | $ 115,076 | $ 82,827 |
From net realized gain | | |
Class A | $ 934 | $ 1,895 |
Class T | 2 | 3 |
Class C | 122 | 142 |
Income Replacement 2022 | 14,203 | 19,965 |
Institutional Class | 9 | 17 |
Total | $ 15,270 | $ 22,022 |
Fidelity Income Replacement 2024 Fund | | |
From net investment income | | |
Class A | $ 4,411 | $ 4,019 |
Class T | 1,845 | 2,626 |
Class C | 661 | 1,172 |
Income Replacement 2024 | 70,240 | 33,777 |
Institutional Class | 419 | 506 |
Total | $ 77,576 | $ 42,100 |
From net realized gain | | |
Class A | $ 2,848 | $ 647 |
Class T | 1,149 | 748 |
Class C | 691 | 465 |
Income Replacement 2024 | 23,642 | 7,431 |
Institutional Class | 169 | 108 |
Total | $ 28,499 | $ 9,399 |
Fidelity Income Replacement 2026 Fund | | |
From net investment income | | |
Class A | $ 4,432 | $ 5,115 |
Class T | 908 | 1,165 |
Class C | 178 | 125 |
Income Replacement 2026 | 45,416 | 30,035 |
Institutional Class | 428 | 495 |
Total | $ 51,362 | $ 36,935 |
From net realized gain | | |
Class A | $ 658 | $ 1,333 |
Class T | 292 | 329 |
Class C | 79 | 41 |
Income Replacement 2026 | 7,228 | 7,049 |
Institutional Class | 71 | 111 |
Total | $ 8,328 | $ 8,863 |
Annual Report
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2028 Fund | | |
From net investment income | | |
Class A | $ 2,236 | $ 2,263 |
Class T | 3,326 | 2,225 |
Class C | 114 | 253 |
Income Replacement 2028 | 173,291 | 118,706 |
Institutional Class | 1,314 | 760 |
Total | $ 180,281 | $ 124,207 |
From net realized gain | | |
Class A | $ 233 | $ 602 |
Class T | 942 | 568 |
Class C | 46 | 107 |
Income Replacement 2028 | 23,651 | 25,172 |
Institutional Class | 246 | 110 |
Total | $ 25,118 | $ 26,559 |
Fidelity Income Replacement 2030 Fund | | |
From net investment income | | |
Class A | $ 2,621 | $ 1,705 |
Class T | 156 | 201 |
Class C | 1,770 | 3,279 |
Income Replacement 2030 | 168,554 | 74,151 |
Institutional Class | 1,213 | 671 |
Total | $ 174,314 | $ 80,007 |
From net realized gain | | |
Class A | $ 547 | $ 386 |
Class T | 44 | 60 |
Class C | 831 | 1,336 |
Income Replacement 2030 | 27,620 | 15,711 |
Institutional Class | 232 | 111 |
Total | $ 29,274 | $ 17,604 |
Fidelity Income Replacement 2032 Fund | | |
From net investment income | | |
Class A | $ 5,304 | $ 3,854 |
Class T | 352 | 358 |
Class C | 527 | 598 |
Income Replacement 2032 | 96,700 | 76,811 |
Institutional Class | 305 | 342 |
Total | $ 103,188 | $ 81,963 |
From net realized gain | | |
Class A | $ 3,737 | $ 1,834 |
Class T | 380 | 199 |
Class C | 928 | 440 |
Income Replacement 2032 | 69,805 | 30,021 |
Institutional Class | 254 | 140 |
Total | $ 75,104 | $ 32,634 |
Fidelity Income Replacement 2034 Fund | | |
From net investment income | | |
Class A | $ 1,278 | $ 326 |
Class T | 909 | 537 |
Class C | 325 | 519 |
Income Replacement 2034 | 88,166 | 51,986 |
Institutional Class | 2,862 | 2,565 |
Total | $ 93,540 | $ 55,933 |
From net realized gain | | |
Class A | $ 746 | $ 76 |
Class T | 566 | 99 |
Class C | 342 | 184 |
Income Replacement 2034 | 31,749 | 9,314 |
Institutional Class | 1,271 | 521 |
Total | $ 34,674 | $ 10,194 |
Annual Report
Notes to Financial Statements - continued
6. Distributions to Shareholders - continued
Years ended July 31, | 2014 | 2013 |
Fidelity Income Replacement 2036 Fund | | |
From net investment income | | |
Class A | $ 1,749 | $ 426 |
Class T | 3,664 | 4,336 |
Class C | 2,175 | 2,240 |
Income Replacement 2036 | 80,634 | 63,610 |
Institutional Class | 11 | 13 |
Total | $ 88,233 | $ 70,625 |
From net realized gain | | |
Class A | $ 404 | $ 81 |
Class T | 1,137 | 1,001 |
Class C | 1,121 | 622 |
Income Replacement 2036 | 14,922 | 11,064 |
Institutional Class | 2 | 2 |
Total | $ 17,586 | $ 12,770 |
Fidelity Income Replacement 2038 Fund | | |
From net investment income | | |
Class A | $ 1,737 | $ 1,288 |
Class T | 1,436 | 1,710 |
Class C | 621 | 899 |
Income Replacement 2038 | 62,847 | 41,508 |
Institutional Class | 460 | 551 |
Total | $ 67,101 | $ 45,956 |
From net realized gain | | |
Class A | $ 3,479 | $ 210 |
Class T | 3,745 | 429 |
Class C | 2,806 | 305 |
Income Replacement 2038 | 68,917 | 8,397 |
Institutional Class | 821 | 106 |
Total | $ 79,768 | $ 9,447 |
Fidelity Income Replacement 2040 Fund | | |
From net investment income | | |
Class A | $ 562 | $ 141 |
Class T | 1,539 | 240 |
Class C | 1,072 | 1,360 |
Income Replacement 2040 | 88,922 | 59,586 |
Institutional Class | 123 | 44 |
Total | $ 92,218 | $ 61,371 |
From net realized gain | | |
Class A | $ 137 | $ 37 |
Class T | 176 | 107 |
Class C | 2,496 | 555 |
Income Replacement 2040 | 69,663 | 13,452 |
Institutional Class | 37 | 10 |
Total | $ 72,509 | $ 14,161 |
Fidelity Income Replacement 2042 Fund | | |
From net investment income | | |
Class A | $ 5,189 | $ 552 |
Class T | 4,574 | 2,294 |
Class C | 1,098 | 392 |
Income Replacement 2042 | 349,803 | 213,286 |
Institutional Class | 1,302 | 579 |
Total | $ 361,966 | $ 217,103 |
From net realized gain | | |
Class A | $ 3,666 | $ 74 |
Class T | 8,953 | 482 |
Class C | 4,811 | 89 |
Income Replacement 2042 | 386,619 | 33,444 |
Institutional Class | 1,161 | 93 |
Total | $ 405,210 | $ 34,182 |
Annual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2016 Fund | | | | |
Class A | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 21 | 163 | 1,081 | 8,297 |
Shares redeemed | (2,910) | (11,297) | (151,155) | (577,897) |
Net increase (decrease) | (2,889) | (11,134) | $ (150,074) | $ (569,600) |
Class T | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 7 | 28 | 397 | 1,401 |
Shares redeemed | (341) | (1,244) | (17,795) | (63,469) |
Net increase (decrease) | (334) | (1,216) | $ (17,398) | $ (62,068) |
Class C | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 85 | 505 | 4,320 |
Shares redeemed | (2,717) | (6,563) | (141,170) | (336,404) |
Net increase (decrease) | (2,707) | (6,478) | $ (140,665) | $ (332,084) |
Income Replacement 2016 | | | | |
Shares sold | 14,565 | 32,858 | $ 757,343 | $ 1,681,315 |
Reinvestment of distributions | 395 | 905 | 20,606 | 46,083 |
Shares redeemed | (36,638) | (52,922) | (1,908,597) | (2,704,793) |
Net increase (decrease) | (21,678) | (19,159) | $ (1,130,648) | $ (977,395) |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 4 | 12 | 217 | 590 |
Shares redeemed | (188) | (402) | (9,765) | (20,428) |
Net increase (decrease) | (184) | (390) | $ (9,548) | $ (19,838) |
Fidelity Income Replacement 2018 Fund | | | | |
Class A | | | | |
Shares sold | 3,094 | 1,844 | $ 165,629 | $ 96,498 |
Reinvestment of distributions | 112 | 165 | 6,019 | 8,476 |
Shares redeemed | (2,034) | (2,302) | (109,403) | (118,731) |
Net increase (decrease) | 1,172 | (293) | $ 62,245 | $ (13,757) |
Class T | | | | |
Shares sold | 7,617 | - | $ 402,023 | $ - |
Reinvestment of distributions | 75 | 18 | 4,029 | 908 |
Shares redeemed | (1,459) | (626) | (78,424) | (32,478) |
Net increase (decrease) | 6,233 | (608) | $ 327,628 | $ (31,570) |
Class C | | | | |
Shares sold | 7,214 | 2,007 | $ 388,519 | $ 104,323 |
Reinvestment of distributions | 44 | 96 | 2,439 | 4,895 |
Shares redeemed | (2,277) | (1,291) | (121,070) | (66,610) |
Net increase (decrease) | 4,981 | 812 | $ 269,888 | $ 42,608 |
Income Replacement 2018 | | | | |
Shares sold | 48,757 | 19,009 | $ 2,615,823 | $ 982,691 |
Reinvestment of distributions | 403 | 656 | 21,671 | 33,655 |
Shares redeemed | (37,375) | (22,946) | (2,001,673) | (1,182,626) |
Net increase (decrease) | 11,785 | (3,281) | $ 635,821 | $ (166,280) |
Institutional Class | | | | |
Shares sold | - | 3,981 | $ - | $ 204,782 |
Reinvestment of distributions | 127 | 145 | 6,796 | 7,435 |
Shares redeemed | (1,505) | (4,070) | (80,836) | (209,387) |
Net increase (decrease) | (1,378) | 56 | $ (74,040) | $ 2,830 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2020 Fund | | | | |
Class A | | | | |
Shares sold | 8,274 | 474 | $ 447,658 | $ 25,017 |
Reinvestment of distributions | 170 | 103 | 9,262 | 5,331 |
Shares redeemed | (1,585) | (967) | (87,236) | (50,578) |
Net increase (decrease) | 6,859 | (390) | $ 369,684 | $ (20,230) |
Class T | | | | |
Shares sold | 3 | 129 | $ 150 | $ 6,823 |
Reinvestment of distributions | 24 | 49 | 1,284 | 2,541 |
Shares redeemed | (243) | (2,023) | (13,241) | (108,390) |
Net increase (decrease) | (216) | (1,845) | $ (11,807) | $ (99,026) |
Class C | | | | |
Shares sold | 6,213 | 568 | $ 338,797 | $ 29,000 |
Reinvestment of distributions | 68 | 57 | 3,719 | 2,907 |
Shares redeemed | (2,214) | (648) | (119,698) | (33,562) |
Net increase (decrease) | 4,067 | (23) | $ 222,818 | $ (1,655) |
Income Replacement 2020 | | | | |
Shares sold | 46,801 | 45,319 | $ 2,589,823 | $ 2,366,414 |
Reinvestment of distributions | 1,366 | 908 | 74,954 | 46,992 |
Shares redeemed | (19,058) | (27,089) | (1,042,550) | (1,420,725) |
Net increase (decrease) | 29,109 | 19,138 | $ 1,622,227 | $ 992,681 |
Institutional Class | | | | |
Shares sold | 1,372 | - | $ 75,000 | $ - |
Reinvestment of distributions | 29 | 6 | 1,560 | 309 |
Shares redeemed | (122) | - | (6,760) | - |
Net increase (decrease) | 1,279 | 6 | $ 69,800 | $ 309 |
Fidelity Income Replacement 2022 Fund | | | | |
Class A | | | | |
Shares sold | 2,298 | - | $ 128,651 | $ - |
Reinvestment of distributions | 55 | 71 | 3,043 | 3,695 |
Shares redeemed | (2,277) | (496) | (128,019) | (26,081) |
Net increase (decrease) | 76 | (425) | $ 3,675 | $ (22,386) |
Class T | | | | |
Shares sold | 445 | - | $ 25,423 | $ - |
Reinvestment of distributions | 1 | 0* | 70 | 15 |
Shares redeemed | - | (91) | - | (4,748) |
Net increase (decrease) | 446 | (91) | $ 25,493 | $ (4,733) |
Class C | | | | |
Shares sold | 4,664 | 431 | $ 264,924 | $ 23,074 |
Reinvestment of distributions | 12 | 1 | 739 | 67 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 4,676 | 432 | $ 265,663 | $ 23,141 |
Income Replacement 2022 | | | | |
Shares sold | 122,627 | 23,547 | $ 6,894,254 | $ 1,241,849 |
Reinvestment of distributions | 940 | 598 | 53,287 | 30,901 |
Shares redeemed | (35,951) | (18,669) | (2,035,627) | (986,018) |
Net increase (decrease) | 87,616 | 5,476 | $ 4,911,914 | $ 286,732 |
Institutional Class | | | | |
Shares sold | 980 | - | $ 54,999 | $ - |
Reinvestment of distributions | 7 | 2 | 409 | 81 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 987 | 2 | $ 55,408 | $ 81 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2024 Fund | | | | |
Class A | | | | |
Shares sold | 925 | 4,821 | $ 52,324 | $ 249,930 |
Reinvestment of distributions | 114 | 70 | 6,459 | 3,660 |
Shares redeemed | (5,011) | (1,358) | (288,188) | (70,040) |
Net increase (decrease) | (3,972) | 3,533 | $ (229,405) | $ 183,550 |
Class T | | | | |
Shares sold | - | 182 | $ - | $ 10,000 |
Reinvestment of distributions | 29 | 30 | 1,644 | 1,572 |
Shares redeemed | (222) | (210) | (12,674) | (11,083) |
Net increase (decrease) | (193) | 2 | $ (11,030) | $ 489 |
Class C | | | | |
Shares sold | 944 | - | $ 54,303 | $ - |
Reinvestment of distributions | 7 | 6 | 384 | 319 |
Shares redeemed | (337) | (1,320) | (19,586) | (68,217) |
Net increase (decrease) | 614 | (1,314) | $ 35,101 | $ (67,898) |
Income Replacement 2024 | | | | |
Shares sold | 100,545 | 17,502 | $ 5,712,753 | $ 923,490 |
Reinvestment of distributions | 988 | 343 | 56,412 | 17,775 |
Shares redeemed | (22,993) | (9,492) | (1,319,597) | (496,528) |
Net increase (decrease) | 78,540 | 8,353 | $ 4,449,568 | $ 444,737 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 12 | 588 | 614 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 10 | 12 | $ 588 | $ 614 |
Fidelity Income Replacement 2026 Fund | | | | |
Class A | | | | |
Shares sold | 4,671 | 3,297 | $ 270,903 | $ 164,296 |
Reinvestment of distributions | 72 | 104 | 4,127 | 5,368 |
Shares redeemed | (1,342) | (628) | (76,534) | (32,970) |
Net increase (decrease) | 3,401 | 2,773 | $ 198,496 | $ 136,694 |
Class T | | | | |
Shares sold | 591 | 147 | $ 32,802 | $ 7,752 |
Reinvestment of distributions | 16 | 22 | 896 | 1,126 |
Shares redeemed | (1,487) | (4,570) | (86,352) | (229,341) |
Net increase (decrease) | (880) | (4,401) | $ (52,654) | $ (220,463) |
Class C | | | | |
Shares sold | - | 372 | $ - | $ 20,181 |
Reinvestment of distributions | 4 | 3 | 257 | 166 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 4 | 375 | $ 257 | $ 20,347 |
Income Replacement 2026 | | | | |
Shares sold | 43,548 | 15,295 | $ 2,469,669 | $ 797,527 |
Reinvestment of distributions | 515 | 419 | 29,638 | 21,602 |
Shares redeemed | (12,559) | (10,796) | (717,746) | (570,139) |
Net increase (decrease) | 31,504 | 4,918 | $ 1,781,561 | $ 248,990 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 499 | 606 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 9 | 11 | $ 499 | $ 606 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2028 Fund | | | | |
Class A | | | | |
Shares sold | 11,628 | 1,289 | $ 695,024 | $ 71,770 |
Reinvestment of distributions | 36 | 55 | 2,141 | 2,865 |
Shares redeemed | (2,162) | (1,798) | (125,714) | (97,320) |
Net increase (decrease) | 9,502 | (454) | $ 571,451 | $ (22,685) |
Class T | | | | |
Shares sold | - | 3,419 | $ - | $ 190,058 |
Reinvestment of distributions | 28 | 18 | 1,646 | 932 |
Shares redeemed | (250) | (93) | (14,492) | (4,963) |
Net increase (decrease) | (222) | 3,344 | $ (12,846) | $ 186,027 |
Class C | | | | |
Shares sold | 340 | - | $ 20,000 | $ - |
Reinvestment of distributions | 3 | 4 | 160 | 214 |
Shares redeemed | (38) | (339) | (2,200) | (18,000) |
Net increase (decrease) | 305 | (335) | $ 17,960 | $ (17,786) |
Income Replacement 2028 | | | | |
Shares sold | 276,372 | 48,154 | $ 16,302,408 | $ 2,584,155 |
Reinvestment of distributions | 1,779 | 1,125 | 104,546 | 58,544 |
Shares redeemed | (48,843) | (21,518) | (2,851,544) | (1,167,596) |
Net increase (decrease) | 229,308 | 27,761 | $ 13,555,410 | $ 1,475,103 |
Institutional Class | | | | |
Shares sold | - | 1,004 | $ - | $ 53,885 |
Reinvestment of distributions | 27 | 16 | 1,560 | 870 |
Shares Redeemed | - | - | - | - |
Net increase (decrease) | 27 | 1,020 | $ 1,560 | $ 54,755 |
Fidelity Income Replacement 2030 Fund | | | | |
Class A | | | | |
Shares sold | 3,278 | 933 | $ 188,799 | $ 49,913 |
Reinvestment of distributions | 27 | 19 | 1,564 | 1,002 |
Shares redeemed | (1,623) | (44) | (94,101) | (2,337) |
Net increase (decrease) | 1,682 | 908 | $ 96,262 | $ 48,578 |
Class T | | | | |
Shares sold | 11 | 11 | $ 622 | $ 618 |
Reinvestment of distributions | 3 | 5 | 200 | 261 |
Shares sold | - | - | - | - |
Net increase (decrease) | 14 | 16 | $ 822 | $ 879 |
Class C | | | | |
Shares sold | 911 | 305 | $ 54,800 | $ 16,713 |
Reinvestment of distributions | 35 | 51 | 2,043 | 2,604 |
Shares redeemed | (732) | (884) | (42,088) | (46,510) |
Net increase (decrease) | 214 | (528) | $ 14,755 | $ (27,193) |
Income Replacement 2030 | | | | |
Shares sold | 220,687 | 39,836 | $ 12,803,833 | $ 2,147,451 |
Reinvestment of distributions | 2,234 | 950 | 130,960 | 49,163 |
Shares redeemed | (66,109) | (14,994) | (3,869,452) | (778,185) |
Net increase (decrease) | 156,812 | 25,792 | $ 9,065,341 | $ 1,418,429 |
Institutional Class | | | | |
Shares sold | 458 | 538 | $ 25,001 | $ 27,920 |
Reinvestment of distributions | 25 | 15 | 1,445 | 782 |
Shares redeemed | (465) | - | (28,292) | - |
Net increase (decrease) | 18 | 553 | $ (1,846) | $ 28,702 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2032 Fund | | | | |
Class A | | | | |
Shares sold | 4,195 | - | $ 226,000 | $ - |
Reinvestment of distributions | 114 | 112 | 6,170 | 5,527 |
Shares redeemed | (3,916) | (320) | (224,739) | (16,355) |
Net increase (decrease) | 393 | (208) | $ 7,431 | $ (10,828) |
Class T | | | | |
Shares sold | 129 | 489 | $ 6,991 | $ 25,000 |
Reinvestment of distributions | 13 | 11 | 732 | 557 |
Shares redeemed | - | (489) | - | (24,956) |
Net increase (decrease) | 142 | 11 | $ 7,723 | $ 601 |
Class C | | | | |
Shares sold | 824 | 190 | $ 46,001 | $ 9,600 |
Reinvestment of distributions | 27 | 21 | 1,455 | 1,038 |
Shares sold | - | - | - | - |
Net increase (decrease) | 851 | 211 | $ 47,456 | $ 10,638 |
Income Replacement 2032 | | | | |
Shares sold | 82,796 | 30,500 | $ 4,544,725 | $ 1,530,443 |
Reinvestment of distributions | 2,269 | 1,495 | 123,077 | 73,685 |
Shares redeemed | (34,248) | (11,121) | (1,888,944) | (559,873) |
Net increase (decrease) | 50,817 | 20,874 | $ 2,778,858 | $ 1,044,255 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 11 | 10 | 560 | 482 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 11 | 10 | $ 560 | $ 482 |
Fidelity Income Replacement 2034 Fund | | | | |
Class A | | | | |
Shares sold | 1,728 | - | $ 100,000 | $ - |
Reinvestment of distributions | 7 | 8 | 399 | 402 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 1,735 | 8 | $ 100,399 | $ 402 |
Class T | | | | |
Shares sold | - | 1,105 | $ - | $ 59,121 |
Reinvestment of distributions | 25 | 12 | 1,474 | 636 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 26 | 1,117 | $ 1,474 | $ 59,757 |
Class C | | | | |
Shares sold | 85 | 583 | $ 4,814 | $ 30,000 |
Reinvestment of distributions | 12 | 14 | 667 | 703 |
Shares redeemed | (86) | (583) | (5,154) | (29,858) |
Net increase (decrease) | 11 | 14 | $ 327 | $ 845 |
Income Replacement 2034 | | | | |
Shares sold | 88,317 | 37,259 | $ 5,170,390 | $ 1,995,412 |
Reinvestment of distributions | 1,329 | 626 | 77,616 | 32,352 |
Shares redeemed | (20,967) | (10,339) | (1,227,468) | (550,747) |
Net increase (decrease) | 68,679 | 27,546 | $ 4,020,538 | $ 1,477,017 |
Institutional Class | | | | |
Shares sold | 1,056 | - | $ 60,682 | $ - |
Reinvestment of distributions | 71 | 60 | 4,133 | 3,086 |
Shares redeemed | (13) | (15) | (764) | (770) |
Net increase (decrease) | 1,114 | 45 | $ 64,051 | $ 2,316 |
Annual Report
Notes to Financial Statements - continued
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2036 Fund | | | | |
Class A | | | | |
Shares sold | 2,537 | - | $ 146,968 | $ - |
Reinvestment of distributions | 37 | 10 | 2,153 | 507 |
Shares redeemed | 0* | (112) | (15) | (5,700) |
Net increase (decrease) | 2,574 | (102) | $ 149,106 | $ (5,193) |
Class T | | | | |
Shares sold | 1,978 | - | $ 116,352 | $ - |
Reinvestment of distributions | 30 | 54 | 1,768 | 2,726 |
Shares redeemed | (337) | (348) | (19,565) | (18,208) |
Net increase (decrease) | 1,671 | (294) | $ 98,555 | $ (15,482) |
Class C | | | | |
Shares sold | - | 3,311 | $ - | $ 175,000 |
Reinvestment of distributions | 38 | 54 | 2,203 | 2,730 |
Shares redeemed | (518) | (419) | (29,991) | (22,047) |
Net increase (decrease) | (480) | 2,946 | $ (27,788) | $ 155,683 |
Income Replacement 2036 | | | | |
Shares sold | 58,800 | 27,343 | $ 3,418,581 | $ 1,427,322 |
Reinvestment of distributions | 662 | 604 | 38,607 | 30,579 |
Shares redeemed | (24,467) | (5,152) | (1,425,529) | (276,865) |
Net increase (decrease) | 34,995 | 22,795 | $ 2,031,659 | $ 1,181,036 |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 0* | 0* | 13 | 15 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | - | - | $ 13 | $ 15 |
Fidelity Income Replacement 2038 Fund | | | | |
Class A | | | | |
Shares sold | 751 | 1,696 | $ 43,225 | $ 87,117 |
Reinvestment of distributions | 95 | 30 | 5,216 | 1,498 |
Shares redeemed | - | (1,076) | - | (54,240) |
Net increase (decrease) | 846 | 650 | $ 48,441 | $ 34,375 |
Class T | | | | |
Shares sold | 1,339 | 361 | $ 76,212 | $ 19,357 |
Reinvestment of distributions | 76 | 24 | 4,096 | 1,182 |
Shares redeemed | (598) | (87) | (33,753) | (4,480) |
Net increase (decrease) | 817 | 298 | $ 46,555 | $ 16,059 |
Class C | | | | |
Shares sold | 299 | - | $ 16,110 | $ - |
Reinvestment of distributions | 63 | 24 | 3,427 | 1,204 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 362 | 24 | $ 19,537 | $ 1,204 |
Income Replacement 2038 | | | | |
Shares sold | 97,135 | 12,010 | $ 5,466,976 | $ 616,548 |
Reinvestment of distributions | 2,020 | 705 | 111,764 | 35,469 |
Shares redeemed | (30,641) | (14,450) | (1,721,190) | (750,847) |
Net increase (decrease) | 68,514 | (1,735) | $ 3,857,550 | $ (98,830) |
Institutional Class | | | | |
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 23 | 13 | 1,281 | 657 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 23 | 13 | $ 1,281 | $ 657 |
Annual Report
7. Share Transactions - continued
| Shares | Dollars |
Years ended July 31, | 2014 | 2013 | 2014 | 2013 |
Fidelity Income Replacement 2040 Fund | | | | |
Class A | | | | |
Shares sold | 1,700 | 26 | $ 97,306 | $ 1,376 |
Reinvestment of distributions | 11 | 4 | 653 | 178 |
Shares redeemed | (42) | - | (2,337) | - |
Net increase (decrease) | 1,669 | 30 | $ 95,622 | $ 1,554 |
Class T | | | | |
Shares sold | 7,541 | 78 | $ 438,067 | $ 4,000 |
Reinvestment of distributions | 4 | 7 | 309 | 347 |
Shares redeemed | (108) | (951) | (6,401) | (48,573) |
Net increase (decrease) | 7,437 | (866) | $ 431,975 | $ (44,226) |
Class C | | | | |
Shares sold | 604 | 582 | $ 35,021 | $ 31,135 |
Reinvestment of distributions | 66 | 38 | 3,568 | 1,915 |
Shares redeemed | 0* | - | (15) | - |
Net increase (decrease) | 670 | 620 | $ 38,574 | $ 33,050 |
Income Replacement 2040 | | | | |
Shares sold | 101,404 | 29,430 | $ 5,825,239 | $ 1,560,721 |
Reinvestment of distributions | 2,134 | 943 | 120,009 | 47,571 |
Shares redeemed | (41,563) | (9,529) | (2,382,123) | (497,615) |
Net increase (decrease) | 61,975 | 20,844 | $ 3,563,125 | $ 1,110,677 |
Institutional Class | | | | |
Shares sold | 250 | - | $ 13,998 | $ - |
Reinvestment of distributions | 2 | 1 | 75 | 54 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 252 | 1 | $ 14,073 | $ 54 |
Fidelity Income Replacement 2042 Fund | | | | |
Class A | | | | |
Shares sold | 15,726 | 846 | $ 906,475 | $ 45,470 |
Reinvestment of distributions | 154 | 12 | 8,830 | 626 |
Shares redeemed | (7,599) | - | (439,193) | - |
Net increase (decrease) | 8,281 | 858 | $ 476,112 | $ 46,096 |
Class T | | | | |
Shares sold | 5,127 | - | $ 284,223 | $ - |
Reinvestment of distributions | 241 | 55 | 13,527 | 2,776 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 5,368 | 55 | $ 297,750 | $ 2,776 |
Class C | | | | |
Shares sold | 7,488 | 1,254 | $ 430,355 | $ 67,885 |
Reinvestment of distributions | 105 | 9 | 5,831 | 481 |
Shares redeemed | (3,151) | - | (174,356) | - |
Net increase (decrease) | 4,442 | 1,263 | $ 261,830 | $ 68,366 |
Income Replacement 2042 | | | | |
Shares sold | 397,829 | 146,111 | $ 22,936,171 | $ 7,567,549 |
Reinvestment of distributions | 10,109 | 2,829 | 569,905 | 142,929 |
Shares redeemed | (112,551) | (45,108) | (6,460,739) | (2,347,325) |
Net increase (decrease) | 295,387 | 103,832 | $ 17,045,337 | $ 5,363,153 |
Institutional Class | | | | |
Shares sold | 1,261 | - | $ 71,051 | $ - |
Reinvestment of distributions | 42 | 13 | 2,376 | 672 |
Shares redeemed | (1) | - | (55) | - |
Net increase (decrease) | 1,302 | 13 | $ 73,372 | $ 672 |
* Amount represents less than one share.
Annual Report
Notes to Financial Statements - continued
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
The Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investment by the Fund within their principle investment strategies may represent a significant portion of the Underlying Fund's net assets. At the end of the period, the following Funds were the owners of record of 10% or more of the total outstanding shares of the Underlying Funds.
Fund | Fidelity Income
Replacement 2028 Fund | Fidelity Income
Replacement 2030 Fund | Fidelity Income
Replacement 2042 Fund |
Fidelity Series Broad Market Opportunities Fund | 15% | 11% | 27% |
The Funds, in aggregate, were the owners of record of more than 20% of the total outstanding shares of the following Underlying Funds.
Fund | % of shares held |
Fidelity Series Broad Market Opportunities Fund | 100% |
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Income Fund and the Shareholders of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund:
We have audited the accompanying statements of assets and liabilities of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund (the Funds) are funds of Fidelity Income Fund (the Trust), including the schedules of investments, as of July 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the custodians. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund and Fidelity Income Replacement 2042 Fund as of July 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 19, 2014
Annual Report
The Trustees and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each Fidelity Income Replacement Fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each Fidelity Income Replacement Fund's activities, review contractual arrangements with companies that provide services to each Fidelity Income Replacement Fund, oversee management of the risks associated with such activities and contractual arrangements, and review each Fidelity Income Replacement Fund's performance. If the interests of a Fidelity Income Replacement Fund and an underlying Fidelity fund were to diverge, a conflict of interest could arise and affect how the Trustees fulfill their fiduciary duties to the affected funds. Strategic Advisers has structured the Fidelity Income Replacement Funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, Strategic Advisers and the Trustees would take reasonable steps to minimize and, if possible, eliminate the conflict. Except for Elizabeth S. Acton and James C. Curvey, each of the Trustees oversees 224 funds. Ms. Acton oversees 206 funds. Mr. Curvey oversees 397 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
James C. Curvey (1935) |
Year of Election or Appointment: 2007 Trustee |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp. |
Abigail P. Johnson (1961) |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President of FMR LLC (2013-present), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Elizabeth S. Acton (1951) |
Year of Election or Appointment: 2013 Trustee |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
Albert R. Gamper, Jr. (1942) |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Barnabas Health Care System. Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) |
Year of Election or Appointment: 2010 Trustee |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) |
Year of Election or Appointment: 2008 Trustee |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) |
Year of Election or Appointment: 2009 Trustee |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) |
Year of Election or Appointment: 2007 Trustee |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
Kenneth L. Wolfe (1939) |
Year of Election or Appointment: 2005 Trustee |
| Mr. Wolfe also serves as Trustee of other Fidelity funds. Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical, 1993-2007), and Revlon, Inc. (personal care products, 2004-2009). Mr. Wolfe previously served as Chairman of the Independent Trustees of other Fidelity funds (2008-2012). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation |
Elizabeth Paige Baumann (1968) |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Marc Bryant (1966) |
Year of Election or Appointment: 2013 Assistant Secretary |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) |
Year of Election or Appointment: 2010 Assistant Treasurer |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) |
Year of Election or Appointment: 2010 Assistant Treasurer |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) |
Year of Election or Appointment: 2013 President and Treasurer |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) |
Year of Election or Appointment: 2014 Chief Financial Officer |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Bruce T. Herring (1965) |
Year of Election or Appointment: 2013 Vice President of Fidelity's Asset Allocation Funds |
| Mr. Herring also serves as Vice President of other funds. He serves as Chief Investment Officer of Fidelity Global Asset Allocation (GAA) (2013-present), Group Chief Investment Officer of FMR, and President of Fidelity Research & Analysis Company (2010-present). Previously, Mr. Herring served as Vice President of certain Equity Funds (2006-2014), Chief Investment Officer and Director of Fidelity Management & Research (U.K.) Inc. (2010-2013), Vice President (2005-2006) and Senior Vice President (2006-2007) of Fidelity Management & Research Company, Vice President of FMR Co., Inc. (2001-2007), and as a portfolio manager for Fidelity U.S. Equity Funds. |
Chris Maher (1972) |
Year of Election or Appointment: 2013 Assistant Treasurer |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) |
Year of Election or Appointment: 2014 Vice President |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) |
Year of Election or Appointment: 2009 Assistant Treasurer |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) |
Year of Election or Appointment: 2013 Deputy Treasurer |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) |
Year of Election or Appointment: 2013 Assistant Treasurer |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) |
Year of Election or Appointment: 2013 Deputy Treasurer |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) |
Year of Election or Appointment: 2008 Chief Compliance Officer |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Derek L. Young (1964) |
Year of Election or Appointment: 2009 Vice President of Fidelity's Asset Allocation Funds |
| Mr. Young also serves as Trustee or an officer of other funds. He is President and a Director of Strategic Advisers, Inc. (2011-present), President of Fidelity Global Asset Allocation (GAA) (2011-present), and Vice Chairman of Pyramis Global Advisors, LLC (2011-present). Previously, Mr. Young served as Chief Investment Officer of GAA (2009-2011) and as a portfolio manager. |
Joseph F. Zambello (1957) |
Year of Election or Appointment: 2011 Deputy Treasurer |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
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:
Fund | Pay Date | Record Date | Capital Gains |
Income Replacement 2016 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.900 |
Income Replacement 2018 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2020 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.442 |
Income Replacement 2022 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.028 |
Income Replacement 2024 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.367 |
Income Replacement 2026 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2028 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2030 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.366 |
Income Replacement 2032 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.253 |
Income Replacement 2034 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.476 |
Income Replacement 2036 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.000 |
Income Replacement 2038 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.380 |
Income Replacement 2040 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.435 |
Income Replacement 2042 | | | |
Institutional Class | 09/15/14 | 09/12/14 | $0.467 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2014,or, if subsequently determined to be different, the net capital gain of such year.
Income Replacement 2016 | $118,541 |
Income Replacement 2020 | $89,794 |
Income Replacement 2024 | $66,215 |
Income Replacement 2030 | $115,913 |
Income Replacement 2032 | $49,207 |
Income Replacement 2034 | $91,561 |
Income Replacement 2038 | $66,976 |
Income Replacement 2040 | $79,752 |
Income Replacement 2042 | $370,562 |
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:
Income Replacement 2016 | |
Institutional Class | 5.88% |
Income Replacement 2018 | |
Institutional Class | 6.60% |
Income Replacement 2020 | |
Institutional Class | 6.13% |
Income Replacement 2022 | |
Institutional Class | 4.88% |
Income Replacement 2024 | |
Institutional Class | 4.29% |
Income Replacement 2026 | |
Institutional Class | 3.84% |
Income Replacement 2028 | |
Institutional Class | 4.03% |
Income Replacement 2030 | |
Institutional Class | 4.25% |
Income Replacement 2032 | |
Institutional Class | 3.32% |
Income Replacement 2034 | |
Institutional Class | 3.56% |
Income Replacement 2036 | |
Institutional Class | 3.07% |
Income Replacement 2038 | |
Institutional Class | 3.03% |
Income Replacement 2040 | |
Institutional Class | 2.93% |
Income Replacement 2042 | |
Institutional Class | 2.88% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Institutional Class |
Income Replacement 2016 | |
August 2013 | 17% |
September 2013 | 23% |
October 2013 | 23% |
November 2013 | 23% |
December 2013 (Ex Date 12/20/13) | 24% |
December 2013 (Ex Date 12/30/13) | 22% |
January 2014 | 2% |
February 2014 | 2% |
March 2014 | 2% |
April 2014 | 2% |
May 2014 | 2% |
June 2014 | 2% |
July 2014 | 2% |
| Institutional Class |
Income Replacement 2018 | |
August 2013 | 19% |
September 2013 | 26% |
October 2013 | 25% |
November 2013 | 26% |
December 2013 (Ex Date 12/20/13) | 28% |
December 2013 (Ex Date 12/30/13) | 26% |
January 2014 | 3% |
February 2014 | 3% |
March 2014 | 3% |
April 2014 | 3% |
May 2014 | 3% |
June 2014 | 3% |
July 2014 | 3% |
| Institutional Class |
Income Replacement 2020 | |
August 2013 | 25% |
September 2013 | 33% |
October 2013 | 33% |
November 2013 | 33% |
December 2013 (Ex Date 12/20/13) | 35% |
December 2013 (Ex Date 12/30/13) | 34% |
January 2014 | 5% |
February 2014 | 5% |
March 2014 | 5% |
April 2014 | 5% |
May 2014 | 5% |
June 2014 | 5% |
July 2014 | 5% |
| Institutional Class |
Income Replacement 2022 | |
August 2013 | 29% |
September 2013 | 39% |
October 2013 | 39% |
November 2013 | 39% |
December 2013 (Ex Date 12/20/13) | 40% |
December 2013 (Ex Date 12/30/13) | 40% |
January 2014 | 8% |
February 2014 | 8% |
March 2014 | 8% |
April 2014 | 8% |
May 2014 | 8% |
June 2014 | 8% |
July 2014 | 8% |
| Institutional Class |
Income Replacement 2024 | |
August 2013 | 30% |
September 2013 | 42% |
October 2013 | 43% |
November 2013 | 42% |
December 2013 (Ex Date 12/20/13) | 45% |
December 2013 (Ex Date 12/30/13) | 44% |
January 2014 | 9% |
February 2014 | 9% |
March 2014 | 9% |
April 2014 | 9% |
May 2014 | 9% |
June 2014 | 9% |
July 2014 | 9% |
| Institutional Class |
Income Replacement 2026 | |
August 2013 | 31% |
September 2013 | 44% |
October 2013 | 45% |
November 2013 | 44% |
December 2013 (Ex Date 12/20/13) | 46% |
December 2013 (Ex Date 12/30/13) | 46% |
January 2014 | 10% |
February 2014 | 10% |
March 2014 | 10% |
April 2014 | 10% |
May 2014 | 10% |
June 2014 | 10% |
July 2014 | 10% |
| Institutional Class |
Income Replacement 2028 | |
August 2013 | 33% |
September 2013 | 45% |
October 2013 | 46% |
November 2013 | 45% |
December 2013 (Ex Date 12/20/13) | 46% |
December 2013 (Ex Date 12/30/13) | 46% |
January 2014 | 14% |
February 2014 | 14% |
March 2014 | 14% |
April 2014 | 15% |
May 2014 | 14% |
June 2014 | 14% |
July 2014 | 15% |
| Institutional Class |
Income Replacement 2030 | |
August 2013 | 37% |
September 2013 | 50% |
October 2013 | 49% |
November 2013 | 50% |
December 2013 (Ex Date 12/20/13) | 50% |
December 2013 (Ex Date 12/30/13) | 50% |
January 2014 | 12% |
February 2014 | 12% |
March 2014 | 12% |
April 2014 | 12% |
May 2014 | 12% |
June 2014 | 11% |
July 2014 | 12% |
| Institutional Class |
Income Replacement 2032 | |
August 2013 | 37% |
September 2013 | 49% |
October 2013 | 49% |
November 2013 | 48% |
December 2013 (Ex Date 12/20/13) | 50% |
December 2013 (Ex Date 12/30/13) | 49% |
January 2014 | 10% |
February 2014 | 10% |
March 2014 | 10% |
April 2014 | 10% |
May 2014 | 10% |
June 2014 | 10% |
July 2014 | 10% |
| Institutional Class |
Income Replacement 2034 | |
August 2013 | 38% |
September 2013 | 51% |
October 2013 | 51% |
November 2013 | 51% |
December 2013 (Ex Date 12/20/13) | 51% |
December 2013 (Ex Date 12/30/13) | 51% |
January 2014 | 12% |
February 2014 | 12% |
March 2014 | 12% |
April 2014 | 12% |
May 2014 | 12% |
June 2014 | 12% |
July 2014 | 12% |
| Institutional Class |
Income Replacement 2036 | |
August 2013 | 36% |
September 2013 | 51% |
October 2013 | 50% |
November 2013 | 51% |
December 2013 (Ex Date 12/20/13) | 53% |
December 2013 (Ex Date 12/30/13) | 52% |
January 2014 | 11% |
February 2014 | 11% |
March 2014 | 11% |
April 2014 | 11% |
May 2014 | 11% |
June 2014 | 11% |
July 2014 | 11% |
| Institutional Class |
Income Replacement 2038 | |
August 2013 | 38% |
September 2013 | 52% |
October 2013 | 53% |
November 2013 | 53% |
December 2013 (Ex Date 12/20/13) | 54% |
December 2013 (Ex Date 12/30/13) | 54% |
January 2014 | 10% |
February 2014 | 10% |
March 2014 | 10% |
April 2014 | 10% |
May 2014 | 10% |
June 2014 | 10% |
July 2014 | 10% |
| Institutional Class |
Income Replacement 2040 | |
August 2013 | 22% |
September 2013 | 53% |
October 2013 | 53% |
November 2013 | 54% |
December 2013 (Ex Date 12/20/13) | 54% |
December 2013 (Ex Date 12/30/13) | 53% |
January 2014 | 13% |
February 2014 | 13% |
March 2014 | 13% |
April 2014 | 13% |
May 2014 | 13% |
June 2014 | 13% |
July 2014 | 13% |
| Institutional Class |
Income Replacement 2042 | |
August 2013 | 40% |
September 2013 | 54% |
October 2013 | 54% |
November 2013 | 54% |
December 2013 (Ex Date 12/20/13) | 54% |
December 2013 (Ex Date 12/30/13) | 54% |
January 2014 | 14% |
February 2014 | 14% |
March 2014 | 14% |
April 2014 | 14% |
May 2014 | 14% |
June 2014 | 14% |
July 2014 | 14% |
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
(Fidelity Investment logo)(registered trademark)
ARWI-UANN-0914
1.848183.106
Item 2. Code of Ethics
As of the end of the period, July 31, 2014, Fidelity Income Fund (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that James H. Keyes is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Keyes is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, "Deloitte Entities") in each of the last two fiscal years for services rendered to Fidelity Income Replacement 2016 Fund, Fidelity Income Replacement 2018 Fund, Fidelity Income Replacement 2020 Fund, Fidelity Income Replacement 2022 Fund, Fidelity Income Replacement 2024 Fund, Fidelity Income Replacement 2026 Fund, Fidelity Income Replacement 2028 Fund, Fidelity Income Replacement 2030 Fund, Fidelity Income Replacement 2032 Fund, Fidelity Income Replacement 2034 Fund, Fidelity Income Replacement 2036 Fund, Fidelity Income Replacement 2038 Fund, Fidelity Income Replacement 2040 Fund, and Fidelity Income Replacement 2042 Fund (the "Funds"):
Services Billed by Deloitte Entities
July 31, 2014 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Income Replacement 2016 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2018 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2020 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2022 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2024 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2026 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2028 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2030 Fund | $22,000 | $- | $4,900 | $600 |
Fidelity Income Replacement 2032 Fund | $22,000 | $- | $5,100 | $600 |
Fidelity Income Replacement 2034 Fund | $22,000 | $- | $5,100 | $600 |
Fidelity Income Replacement 2036 Fund | $22,000 | $- | $5,100 | $600 |
Fidelity Income Replacement 2038 Fund | $19,000 | $- | $5,100 | $600 |
Fidelity Income Replacement 2040 Fund | $19,000 | $- | $5,100 | $600 |
Fidelity Income Replacement 2042 Fund | $19,000 | $- | $5,100 | $600 |
July 31, 2013 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Income Replacement 2016 Fund | $22,000 | $- | $4,900 | $400 |
Fidelity Income Replacement 2018 Fund | $22,000 | $- | $4,900 | $400 |
Fidelity Income Replacement 2020 Fund | $22,000 | $- | $4,900 | $400 |
Fidelity Income Replacement 2022 Fund | $22,000 | $- | $4,900 | $400 |
Fidelity Income Replacement 2024 Fund | $22,000 | $- | $4,900 | $400 |
Fidelity Income Replacement 2026 Fund | $22,000 | $- | $5,100 | $400 |
Fidelity Income Replacement 2028 Fund | $22,000 | $- | $4,900 | $400 |
Fidelity Income Replacement 2030 Fund | $22,000 | $- | $4,900 | $400 |
Fidelity Income Replacement 2032 Fund | $22,000 | $- | $5,100 | $400 |
Fidelity Income Replacement 2034 Fund | $22,000 | $- | $5,100 | $400 |
Fidelity Income Replacement 2036 Fund | $22,000 | $- | $5,100 | $400 |
Fidelity Income Replacement 2038 Fund | $19,000 | $- | $5,100 | $400 |
Fidelity Income Replacement 2040 Fund | $19,000 | $- | $5,100 | $400 |
Fidelity Income Replacement 2042 Fund | $19,000 | $- | $5,100 | $400 |
A Amounts may reflect rounding.
The following table presents fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds ("Fund Service Providers"):
Services Billed by Deloitte Entities
| July 31, 2014A | July 31, 2013A |
Audit-Related Fees | $355,000 | $915,000 |
Tax Fees | $- | $- |
All Other Fees | $745,000 | $765,000 |
A Amounts may reflect rounding.
"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
"All Other Fees" represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | July 31, 2014 A | July 31, 2013 A |
Deloitte Entities | $2,015,000 | $1,850,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and its related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds' last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Income Fund
By: | /s/Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
| |
Date: | September 25, 2014 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
| |
Date: | September 25, 2014 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
| |
Date: | September 25, 2014 |
