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 |
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Date of reporting period: | January 31, 2013 |
Item 1. Reports to Stockholders
Fidelity® GNMA Fund
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
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 fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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 (August 1, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table 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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Actual | .45% | $ 1,000.00 | $ 999.80 | $ 2.27 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,022.94 | $ 2.29 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Coupon Distribution as of January 31, 2013 | ||
| % of fund's | % of fund's investments |
Zero coupon bonds | 0.4 | 0.5 |
0.01 - 0.99% | 4.8 | 4.3 |
1 - 1.99% | 0.0† | 0.0† |
2 - 2.99% | 1.0 | 0.2 |
3 - 3.99% | 18.6 | 14.2 |
4 - 4.99% | 35.1 | 38.3 |
5 - 5.99% | 21.4 | 26.1 |
6 - 6.99% | 7.2 | 6.4 |
7% and over | 1.1 | 1.4 |
Coupon distribution shows the range of stated interest rates on the fund's investments, excluding short-term investments. |
Weighted Average Maturity as of January 31, 2013 | ||
|
| 6 months ago |
Years | 4.6 | 4.7 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of January 31, 2013 | ||
|
| 6 months ago |
Years | 3.1 | 2.4 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds. |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
 | Mortgage |
| | Mortgage |
| ||
 | CMOs and |
| | CMOs and |
| ||
 | U.S. Government |
| | U.S. Government |
| ||
 | Short-Term |
| | Short-Term |
| ||
* GNMA Securities | 105.2% |
| ** GNMA Securities | 101.2% |
| ||
* Futures and Swaps | (2.1)% |
| ** Futures and Swaps | (0.9)% |
| ||
† Amount represents less than 0.1% | |||||||
†† Includes NCUA Guaranteed Notes | |||||||
††† Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart. |
Percentages in the above tables are adjusted for the effect of TBA Sale Commitments. |
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
U.S. Government and Government Agency Obligations - 0.6% | ||||
| Principal | Value (000s) | ||
Other Government Related - 0.6% | ||||
National Credit Union Administration Guaranteed Notes: | ||||
Series 2010-A1 Class A, 0.563% 12/7/20 (NCUA Guaranteed) (c) | $ 12,403 | $ 12,440 | ||
Series 2010-R2 Class 1A, 0.583% 11/6/17 (NCUA Guaranteed) (c) | 23,331 | 23,375 | ||
Series 2011-R1 Class 1A, 0.663% 1/8/20 (NCUA Guaranteed) (c) | 20,019 | 20,110 | ||
Series 2011-R4 Class 1A, 0.563% 3/6/20 (NCUA Guaranteed) (c) | 10,728 | 10,748 | ||
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $66,481) | 66,673 | |||
U.S. Government Agency - Mortgage Securities - 98.3% | ||||
| ||||
Fannie Mae - 4.0% | ||||
2.239% 3/1/35 (c) | 131 | 138 | ||
2.256% 2/1/33 (c) | 144 | 151 | ||
2.285% 12/1/34 (c) | 126 | 133 | ||
2.299% 9/1/33 (c) | 1,248 | 1,314 | ||
2.304% 10/1/33 (c) | 71 | 75 | ||
2.309% 7/1/35 (c) | 61 | 65 | ||
2.336% 7/1/36 (c) | 309 | 327 | ||
2.425% 3/1/35 (c) | 21 | 22 | ||
2.523% 10/1/33 (c) | 129 | 138 | ||
2.583% 1/1/35 (c) | 634 | 675 | ||
2.585% 9/1/34 (c) | 700 | 751 | ||
2.605% 7/1/34 (c) | 81 | 86 | ||
2.606% 7/1/34 (c) | 1,175 | 1,258 | ||
2.676% 6/1/47 (c) | 377 | 405 | ||
2.691% 3/1/33 (c) | 303 | 323 | ||
2.77% 11/1/36 (c) | 646 | 695 | ||
2.807% 8/1/35 (c) | 803 | 860 | ||
2.828% 5/1/35 (c) | 890 | 954 | ||
3.219% 8/1/35 (c) | 1,815 | 1,945 | ||
4% 10/1/25 | 625 | 667 | ||
4.5% 2/1/43 (a) | 124,800 | 133,950 | ||
4.5% 2/1/43 (a) | 124,800 | 133,950 | ||
4.5% 2/1/43 (a) | 124,800 | 133,950 | ||
5.5% 12/1/17 to 3/1/20 | 1,775 | 1,902 | ||
5.857% 3/1/36 (c) | 712 | 757 | ||
U.S. Government Agency - Mortgage Securities - continued | ||||
| Principal | Value (000s) | ||
Fannie Mae - continued | ||||
6.5% 10/1/17 | $ 107 | $ 117 | ||
7% 11/1/16 to 3/1/17 | 566 | 612 | ||
7.5% 2/1/14 to 4/1/17 | 155 | 164 | ||
8.5% 12/1/27 | 115 | 137 | ||
9.5% 9/1/30 | 15 | 17 | ||
10.25% 10/1/18 | 4 | 4 | ||
11.5% 11/1/14 to 7/1/15 | 4 | 4 | ||
12.5% 10/1/15 to 7/1/16 | 9 | 10 | ||
| 416,556 | |||
Freddie Mac - 0.2% | ||||
2.161% 6/1/33 (c) | 722 | 761 | ||
2.229% 3/1/37 (c) | 96 | 102 | ||
2.315% 12/1/35 (c) | 669 | 707 | ||
2.369% 12/1/35 (c) | 5,351 | 5,693 | ||
2.375% 5/1/37 (c) | 160 | 170 | ||
2.398% 6/1/33 (c) | 2,158 | 2,295 | ||
2.528% 11/1/35 (c) | 648 | 691 | ||
2.555% 3/1/35 (c) | 3,246 | 3,476 | ||
2.632% 7/1/35 (c) | 878 | 937 | ||
2.679% 10/1/35 (c) | 646 | 679 | ||
2.717% 10/1/36 (c) | 812 | 868 | ||
2.971% 6/1/33 (c) | 1,865 | 2,006 | ||
2.985% 8/1/34 (c) | 227 | 241 | ||
2.989% 4/1/36 (c) | 695 | 739 | ||
3.134% 3/1/33 (c) | 20 | 22 | ||
5.5% 7/1/24 to 1/1/25 | 2,427 | 2,622 | ||
8.5% 10/1/18 to 6/1/25 | 22 | 26 | ||
9% 7/1/18 to 3/1/20 | 3 | 3 | ||
9.5% 7/1/30 | 54 | 60 | ||
10% 4/1/15 to 7/1/18 | 38 | 42 | ||
10.25% 11/1/16 | 3 | 3 | ||
12% 5/1/13 to 6/1/15 | 2 | 3 | ||
12.5% 4/1/13 to 5/1/15 | 4 | 4 | ||
13% 5/1/14 to 11/1/14 | 1 | 1 | ||
13.5% 9/1/14 | 0* | 0* | ||
| 22,151 | |||
Ginnie Mae - 94.1% | ||||
2.5% 2/20/41 to 1/20/43 (a) | 103,110 | 102,749 | ||
3% 4/20/27 to 12/20/42 (a) | 153,020 | 160,332 | ||
3% 2/1/43 (a) | 267,300 | 278,946 | ||
3% 2/1/43 (a) | 50,000 | 52,159 | ||
U.S. Government Agency - Mortgage Securities - continued | ||||
| Principal | Value (000s) | ||
Ginnie Mae - continued | ||||
3% 2/1/43 (a) | $ 127,800 | $ 133,318 | ||
3% 2/1/43 (a) | 31,000 | 32,338 | ||
3% 2/1/43 (a) | 14,000 | 14,604 | ||
3.5% 4/15/25 to 11/20/42 | 556,250 | 600,788 | ||
3.5% 12/20/42 | 213,538 | 229,136 | ||
3.5% 2/1/43 (a) | 269,000 | 289,175 | ||
3.5% 2/1/43 (a) | 64,000 | 68,800 | ||
3.5% 2/1/43 (a) | 175,000 | 187,688 | ||
3.5% 2/1/43 (a) | 244,000 | 261,690 | ||
4% 1/15/25 to 6/15/42 (a) | 1,307,149 | 1,420,704 | ||
4% 2/1/43 (a) | 195,500 | 212,683 | ||
4% 2/1/43 (a) | 46,400 | 50,478 | ||
4.3% 8/20/61 (g) | 10,733 | 11,924 | ||
4.497% 1/20/62 (g) | 8,259 | 9,323 | ||
4.5% 3/15/25 to 3/15/42 | 2,412,087 | 2,649,030 | ||
4.5% 2/1/43 (a) | 7,000 | 7,640 | ||
4.5% 2/1/43 (a) | 114,300 | 124,394 | ||
4.564% 11/20/61 (g) | 10,174 | 11,468 | ||
4.616% 1/20/62 (g) | 8,667 | 9,724 | ||
4.649% 2/20/62 (g) | 7,111 | 8,067 | ||
4.682% 2/20/62 (g) | 9,360 | 10,620 | ||
4.875% 9/15/39 to 12/15/39 | 19,568 | 21,338 | ||
5% 8/15/18 to 9/15/41 | 1,254,573 | 1,389,664 | ||
5.35% 4/20/29 to 12/20/30 | 24,203 | 26,632 | ||
5.391% 11/20/59 (g) | 69,471 | 77,103 | ||
5.5% 12/20/18 to 3/20/40 (b) | 499,982 | 550,668 | ||
6% 8/15/17 to 5/15/39 | 619,985 | 695,148 | ||
6.45% 10/15/31 to 11/15/32 | 1,058 | 1,201 | ||
6.5% 5/15/23 to 1/15/39 | 77,583 | 89,526 | ||
7% 12/20/16 to 9/20/34 | 42,957 | 49,674 | ||
7.25% 9/15/27 | 95 | 111 | ||
7.395% 6/20/25 to 11/20/27 | 1,026 | 1,190 | ||
7.5% 5/15/17 to 9/20/32 | 17,522 | 20,313 | ||
8% 8/15/18 to 7/15/32 | 4,659 | 5,451 | ||
8.5% 5/15/16 to 2/15/31 | 992 | 1,099 | ||
9% 5/15/14 to 5/15/30 | 609 | 696 | ||
9.5% 12/20/15 to 4/20/17 | 143 | 153 | ||
10.5% 1/15/14 to 10/15/18 | 136 | 147 | ||
U.S. Government Agency - Mortgage Securities - continued | ||||
| Principal | Value (000s) | ||
Ginnie Mae - continued | ||||
13% 9/15/13 to 1/15/15 | $ 6 | $ 6 | ||
13.5% 1/15/15 | 1 | 2 | ||
| 9,867,900 | |||
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $10,114,582) | 10,306,607 | |||
Collateralized Mortgage Obligations - 15.0% | ||||
| ||||
U.S. Government Agency - 15.0% | ||||
Fannie Mae: | ||||
floater Series 2008-76 Class EF, 0.7037% 9/25/23 (c) | 4,144 | 4,157 | ||
planned amortization class Series G93-32 Class PJ, 6.75% 9/25/23 | 5,437 | 6,348 | ||
sequential payer Series 2010-50 Class FA, 0.5537% 1/25/24 (c) | 2,204 | 2,209 | ||
Series 2003-39 Class IA, 5.5% 10/25/22 (c)(d) | 416 | 14 | ||
target amortization class Series G94-2 Class D, 6.45% 1/25/24 | 49 | 49 | ||
Fannie Mae Stripped Mortgage-Backed Securities: | ||||
Series 331 Class 12, 6.5% 2/1/33 (d) | 899 | 167 | ||
Series 339 Class 5, 5.5% 8/1/33 (d) | 1,310 | 168 | ||
Series 343 Class 16, 5.5% 5/1/34 (d) | 1,014 | 141 | ||
Freddie Mac: | ||||
floater planned amortization class Series 3153 Class FX, 0.5557% 5/15/36 (c) | 11,371 | 11,373 | ||
planned amortization class: | ||||
Series 2220 Class PD, 8% 3/15/30 | 1,523 | 1,800 | ||
Series 40 Class K, 6.5% 8/17/24 | 619 | 704 | ||
sequential payer: | ||||
Series 2204 Class N, 7.5% 12/20/29 | 3,202 | 3,751 | ||
Series 2601 Class TI, 5.5% 10/15/22 (d) | 1,459 | 46 | ||
Ginnie Mae guaranteed Multi-family REMIC pass-thru securities sequential payer Series 2002-71 Class Z, 5.5% 10/20/32 | 17,991 | 20,347 | ||
Ginnie Mae guaranteed REMIC pass-thru certificates: | ||||
floater: | ||||
Series 2001-22 Class FM, 0.5547% 5/20/31 (c) | 304 | 305 | ||
Series 2002-41 Class HF, 0.6057% 6/16/32 (c) | 324 | 325 | ||
Series 2007-36 Class FW, 0.4857% 6/16/37 (c) | 13,484 | 13,461 | ||
Series 2007-37 Class TS, 6.4843% 6/16/37 (c)(d) | 4,726 | 1,005 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal | Value (000s) | ||
U.S. Government Agency - continued | ||||
Ginnie Mae guaranteed REMIC pass-thru certificates: - continued | ||||
floater: | ||||
Series 2008-25 Class FB, 0.8047% 3/20/38 (c) | $ 15,493 | $ 15,648 | ||
Series 2008-41 Class FA, 0.8647% 5/20/38 (c) | 6,565 | 6,623 | ||
Series 2008-51 Class FE, 0.9557% 6/16/38 (c) | 1,105 | 1,121 | ||
Series 2008-57 Class AF, 0.7847% 7/20/38 (c) | 4,258 | 4,300 | ||
Series 2009-100 Class FG, 0.8357% 11/16/39 (c) | 10,259 | 10,370 | ||
Series 2010-130 Class KF, 0.8557% 10/16/40 (c) | 8,048 | 8,124 | ||
Series 2010-H03 Class FA, 0.7617% 3/20/60 (c)(g) | 36,263 | 36,545 | ||
Series 2010-H17 Class FA, 0.5417% 7/20/60 (c)(g) | 21,684 | 21,633 | ||
Series 2010-H18 Class AF, 0.515% 9/20/60 (c)(g) | 22,453 | 22,396 | ||
Series 2010-H19 Class FG, 0.515% 8/20/60 (c)(g) | 29,604 | 29,531 | ||
Series 2010-H27 Series FA, 0.595% 12/20/60 (c)(g) | 7,742 | 7,754 | ||
Series 2011-101 Class FE, 0.5547% 3/20/39 (c) | 22,697 | 22,756 | ||
Series 2011-H05 Class FA, 0.715% 12/20/60 (c)(g) | 14,602 | 14,707 | ||
Series 2011-H07 Class FA, 0.715% 2/20/61 (c)(g) | 5,484 | 5,523 | ||
Series 2011-H12 Class FA, 0.705% 2/20/61 (c)(g) | 32,022 | 32,237 | ||
Series 2011-H13 Class FA, 0.715% 4/20/61 (c)(g) | 13,007 | 13,098 | ||
Series 2011-H14: | ||||
Class FB, 0.715% 5/20/61 (c)(g) | 14,519 | 14,633 | ||
Class FC, 0.715% 5/20/61 (c)(g) | 14,504 | 14,611 | ||
Series 2011-H17 Class FA, 0.745% 6/20/61 (c)(g) | 19,657 | 19,816 | ||
Series 2011-H21 Class FA, 0.815% 10/20/61 (c)(g) | 22,404 | 22,667 | ||
Series 2012-74 Class FL, 0.4547% 5/20/41 (c) | 9,469 | 9,467 | ||
Series 2012-H01 Class FA, 0.915% 11/20/61 (c)(g) | 18,514 | 18,836 | ||
Series 2012-H03 Class FA, 0.915% 1/20/62 (c)(g) | 11,454 | 11,656 | ||
Series 2012-H06 Class FA, 0.845% 1/20/62 (c)(g) | 18,301 | 18,552 | ||
Series 2012-H07 Class FA, 0.845% 3/20/62 (c)(g) | 10,868 | 11,029 | ||
Series 2012-H26, Class CA, 0.7445% 7/20/60 (c)(g) | 47,651 | 47,962 | ||
floater planned amortization Series 2011-141 Class MF, 0.6057% 12/16/40 (c) | 19,939 | 19,946 | ||
planned amortization class: | ||||
Series 1993-13 Class PD, 6% 5/20/29 | 6,213 | 7,032 | ||
Series 1994-4 Class KQ, 7.9875% 7/16/24 | 444 | 512 | ||
Series 2000-26 Class PK, 7.5% 9/20/30 | 1,251 | 1,525 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal | Value (000s) | ||
U.S. Government Agency - continued | ||||
Ginnie Mae guaranteed REMIC pass-thru certificates: - continued | ||||
planned amortization class: | ||||
Series 2002-50 Class PE, 6% 7/20/32 | $ 7,712 | $ 8,820 | ||
Series 2003-26 Class PI, 5.5% 1/16/32 (d) | 1,700 | 24 | ||
Series 2003-54 Class UE, 5% 6/20/33 | 31,040 | 36,058 | ||
Series 2003-70 Class LE, 5% 7/20/32 | 27,876 | 29,499 | ||
Series 2004-19 Class DP, 5.5% 3/20/34 | 2,343 | 2,495 | ||
Series 2004-64 Class KE, 5.5% 12/20/33 | 13,429 | 14,372 | ||
Series 2005-24 Class TC, 5.5% 3/20/35 | 5,403 | 6,465 | ||
Series 2005-54 Class BM, 5% 7/20/35 | 9,658 | 9,970 | ||
Series 2005-57 Class PB, 5.5% 7/20/35 | 5,673 | 7,058 | ||
Series 2006-50 Class JC, 5% 6/20/36 | 10,939 | 12,286 | ||
Series 2007-2 Class PC, 5.5% 6/20/35 | 21,510 | 23,745 | ||
Series 2007-48 Class FC, 0.4247% 8/20/37 (c) | 14,229 | 14,228 | ||
Series 2007-54 Class FC, 0.4647% 9/20/37 (c) | 14,285 | 14,286 | ||
Series 2008-28 Class PC, 5.5% 4/20/34 | 18,652 | 21,705 | ||
Series 2010-117 Class E, 3% 10/20/39 | 10,076 | 10,342 | ||
Series 2011-136 Class WI, 4.5% 5/20/40 (d) | 7,645 | 1,471 | ||
Series 2011-52 Class PA, 4.25% 2/16/41 | 70,913 | 76,974 | ||
Series 2011-79 Class PO, 6/20/40 (e) | 24,255 | 21,295 | ||
sequential payer: | ||||
Series 1995-4 Class CQ, 8% 6/20/25 | 355 | 419 | ||
Series 1998-23 Class ZB, 6.5% 6/20/28 | 4,959 | 5,651 | ||
Series 2001-33 Class SD, 7.8453% 7/20/31 (c)(d) | 657 | 164 | ||
Series 2001-40 Class Z, 6% 8/20/31 | 2,918 | 3,301 | ||
Series 2001-49 Class Z, 7% 10/16/31 | 1,438 | 1,672 | ||
Series 2002-18 Class ZB, 6% 3/20/32 | 2,911 | 3,304 | ||
Series 2002-24 Class SK, 7.7443% 4/16/32 (c)(d)(f) | 1,650 | 428 | ||
Series 2002-29: | ||||
Class SK, 8.25% 5/20/32 (c)(f) | 161 | 181 | ||
Class Z, 6.5% 5/16/32 | 4,054 | 4,668 | ||
Series 2002-33 Class ZJ, 6.5% 5/20/32 | 2,560 | 2,972 | ||
Series 2002-42 Class ZA, 6% 6/20/32 | 1,898 | 2,147 | ||
Series 2002-43 Class Z, 6.5% 6/20/32 | 4,808 | 5,532 | ||
Series 2002-45 Class Z, 6% 6/20/32 | 1,078 | 1,240 | ||
Series 2002-49 Class ZA, 6.5% 7/20/32 | 16,462 | 19,091 | ||
Series 2003-75 Class ZA, 5.5% 9/20/33 | 7,268 | 8,143 | ||
Series 2004-24 Class ZM, 5% 4/20/34 | 8,851 | 10,213 | ||
Series 2004-46 Class BZ, 6% 6/20/34 | 8,807 | 10,093 | ||
Series 2004-65 Class VE, 5.5% 7/20/15 | 1,668 | 1,765 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal | Value (000s) | ||
U.S. Government Agency - continued | ||||
Ginnie Mae guaranteed REMIC pass-thru certificates: - continued | ||||
sequential payer: | ||||
Series 2004-86 Class G, 6% 10/20/34 | $ 6,273 | $ 7,911 | ||
Series 2005-28 Class AJ, 5.5% 4/20/35 | 21,852 | 24,041 | ||
Series 2005-47 Class ZY, 6% 6/20/35 | 6,298 | 8,154 | ||
Series 2005-6 Class EX, 5.5% 11/20/34 | 1,001 | 1,242 | ||
Series 2005-82 Class JV, 5% 6/20/35 | 3,500 | 3,973 | ||
Series 2008-17 Class BN, 5% 2/20/38 | 21,358 | 23,313 | ||
Series 2009-26 Class SC, 6.1943% 1/16/38 (c)(d) | 21,042 | 3,885 | ||
Series 2009-61 Class AZ 5.5% 8/20/39 | 84,435 | 94,987 | ||
Series 2010-45 Class TB, 5% 4/16/40 | 107,314 | 122,713 | ||
Series 2011-29 Class BV, 5% 5/20/40 | 10,483 | 12,287 | ||
Series 2001-36 Class SP, 8.5443% 9/16/26 (c)(d) | 856 | 174 | ||
Series 2004-73 Class AL, 6.9943% 8/17/34 (c)(d) | 2,407 | 539 | ||
Series 1998-2 Class SA, 8.2943% 1/16/28 (c)(d) | 649 | 159 | ||
Series 1999-34 Class SC, 8.3943% 9/16/19 (c)(d)(f) | 885 | 108 | ||
Series 1999-40 Class SE, 8.7443% 11/16/29 (c)(d)(f) | 1,171 | 153 | ||
Series 1999-43: | ||||
Class SJ, 7.7943% 11/16/29 (c)(d) | 5,196 | 817 | ||
Class UN, 7.7943% 11/16/29 (c)(d) | 1,705 | 236 | ||
Series 1999-45 Class SC, 8.3943% 12/16/29 (c)(d) | 2,656 | 310 | ||
Series 1999-46 Class SJ, 8.3443% 12/16/29 (c)(d) | 1,733 | 351 | ||
Series 2000-35 Class SA, 7.7443% 12/16/26 (c)(d)(f) | 2,900 | 692 | ||
Series 2000-36 Class S, 7.7443% 11/16/30 (c)(d) | 1,863 | 431 | ||
Series 2000-8: | ||||
Class SA, 8.2443% 1/16/30 (c)(d)(f) | 1,032 | 128 | ||
Class SB, 8.2443% 1/16/30 (c)(d) | 2,255 | 450 | ||
Series 2001-3 Class S, 7.8943% 2/16/31 (c)(d) | 343 | 80 | ||
Series 2001-36 Class SB, 7.8943% 12/16/23 (c)(d)(f) | 1,155 | 243 | ||
Series 2001-38 Class SB, 7.3743% 8/16/31 (c)(d)(f) | 585 | 135 | ||
Series 2001-41 Class SG, 8.5443% 9/16/31 (c)(d) | 476 | 92 | ||
Series 2001-46 Class SB, 7.9443% 5/16/23 (c)(d) | 636 | 93 | ||
Series 2001-49: | ||||
Class SC, 7.3943% 12/16/25 (c)(d)(f) | 1,423 | 282 | ||
Class SL, 7.3943% 5/16/30 (c)(d)(f) | 1,530 | 333 | ||
Class SV, 8.0443% 12/16/28 (c)(d)(f) | 1,609 | 204 | ||
Series 2001-50: | ||||
Class ST, 7.4943% 8/16/27 (c)(d)(f) | 381 | 88 | ||
Class SV, 9.0943% 9/16/27 (c)(d) | 3,327 | 653 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal | Value (000s) | ||
U.S. Government Agency - continued | ||||
Ginnie Mae guaranteed REMIC pass-thru certificates: - continued | ||||
Series 2001-65 Class SV, 7.8953% 2/20/29 (c)(d)(f) | $ 3,300 | $ 757 | ||
Series 2002-21 Class SV, 7.8943% 3/16/32 (c)(d)(f) | 3,891 | 908 | ||
Series 2002-5 Class SP, 7.2443% 1/16/32 (c)(d)(f) | 649 | 139 | ||
Series 2003-23 Class S, 6.3443% 12/16/29 (c)(d)(f) | 4,203 | 805 | ||
Series 2003-42 Class SH, 6.3453% 5/20/33 (c)(d) | 1,668 | 323 | ||
Series 2003-92 Class SN, 6.2243% 10/16/33 (c)(d)(f) | 10,754 | 1,805 | ||
Series 2004-32 Class GS, 6.2943% 5/16/34 (c)(d)(f) | 1,165 | 240 | ||
Series 2004-59 Class SC, 6.9943% 8/16/34 (c)(d) | 7,291 | 1,583 | ||
Series 2005-13 Class SA, 6.5953% 2/20/35 (c)(d)(f) | 18,430 | 3,384 | ||
Series 2005-6 Class EY, 5.5% 11/20/33 | 1,016 | 1,266 | ||
Series 2005-82 Class NS, 6.0953% 7/20/34 (c)(d) | 18,950 | 2,952 | ||
Series 2006-13 Class DS, 10.793% 3/20/36 (c)(f) | 18,265 | 21,423 | ||
Series 2007-35 Class SC, 38.9658% 6/16/37 (c)(f) | 5,483 | 10,825 | ||
Series 2008-15, Class CI 6.2853% 2/20/38 (c)(d) | 9,844 | 1,310 | ||
Series 2008-60 Class SH, 5.9443% 7/16/38 (c)(d) | 6,204 | 1,037 | ||
Series 2008-88 Class BZ, 5.5% 5/20/33 | 56,190 | 62,531 | ||
Series 2009-13 Class E, 4.5% 3/16/39 | 13,750 | 14,772 | ||
Series 2009-42 Class AY, 5% 6/16/37 | 9,360 | 10,446 | ||
Series 2009-76 Class SB, 5.8943% 9/16/39 (c)(d)(f) | 39,475 | 6,451 | ||
Series 2010-167 Class KW, 5% 9/20/36 | 33,584 | 35,489 | ||
Series 2010-42 Class OP, 4/20/40 (e) | 31,700 | 27,991 | ||
Series 2010-H010 Class FA, 0.5417% 5/20/60 (c)(g) | 14,240 | 14,206 | ||
Series 2010-H12 Class PT, 5.47% 11/20/59 (g) | 14,992 | 16,486 | ||
Series 2010-H23 Class PT, 5.4259% 10/20/60 (c)(g) | 72,787 | 82,735 | ||
Series 2011-13 Class S, 5.7443% 1/16/41 (c)(d) | 33,175 | 5,920 | ||
Series 2012-64: | ||||
Class IA, 5.5% 5/16/42 (d) | 23,689 | 4,121 | ||
Class KB, 3.1505% 5/20/41 (c) | 8,311 | 8,966 | ||
Series 2012-76 Class GS, 6.4943% 6/16/42 (c)(d)(f) | 7,924 | 1,361 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $1,520,845) | 1,578,546 | |||
Commercial Mortgage Securities - 0.0% | ||||
| Principal | Value (000s) | ||
Fannie Mae Series 1998-M3 Class IB, 0.7198% 1/17/38 (c)(d) | $ 2,062 | $ 25 | ||
Ginnie Mae guaranteed Multi-family REMIC pass-thru securities: | ||||
sequential payer Series 2001-58 Class X, 0.4902% 9/16/41 (c)(d) | 14,558 | 111 | ||
Series 2001-12 Class X, 0.643% 7/16/40 (c)(d) | 8,433 | 167 | ||
Ginnie Mae guaranteed REMIC pass-thru certificates: | ||||
sequential payer Series 2002-81 Class IO, 0.7296% 9/16/42 (c)(d) | 24,882 | 372 | ||
Series 2002-62 Class IO, 1.1076% 8/16/42 (c)(d) | 26,050 | 998 | ||
Series 2002-85 Class X, 0.8091% 3/16/42 (c)(d) | 6,698 | 176 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $13,247) | 1,849 | |||
Cash Equivalents - 4.9% | |||
Maturity |
| ||
Investments in repurchase agreements in a joint trading account at 0.14%, dated 1/31/13 due 2/1/13 (Collateralized by U.S. Government Obligations) # | $ 510,035 |
| |
TOTAL INVESTMENT PORTFOLIO - 118.8% (Cost $12,225,188) | 12,463,708 | ||
NET OTHER ASSETS (LIABILITIES) - (18.8)% | (1,975,945) | ||
NET ASSETS - 100% | $ 10,487,763 | ||
TBA Sale Commitments | |||
| Principal | Value (000s) | |
Fannie Mae | |||
4.5% 2/1/43 | $ (249,600) | $ (267,899) | |
4.5% 2/1/43 | (124,800) | (133,950) | |
TOTAL FANNIE MAE | (401,849) | ||
Ginnie Mae | |||
3% 2/1/43 | (6,000) | (6,261) | |
3% 2/1/43 | (6,000) | (6,259) | |
4% 2/1/43 | (8,000) | (8,703) | |
4% 2/1/43 | (12,000) | (13,055) | |
4% 2/1/43 | (23,000) | (25,021) | |
4% 2/1/43 | (20,000) | (21,758) | |
4% 2/1/43 | (15,000) | (16,318) | |
4% 2/1/43 | (16,000) | (17,406) | |
4% 2/1/43 | (35,000) | (38,076) | |
4.5% 2/1/43 | (7,000) | (7,640) | |
4.5% 2/1/43 | (99,300) | (108,070) | |
4.5% 2/1/43 | (15,000) | (16,325) | |
5% 2/1/43 | (44,000) | (47,852) | |
5.5% 2/1/43 | (47,400) | (51,880) | |
TOTAL GINNIE MAE | (384,624) | ||
TOTAL TBA SALE COMMITMENTS (Proceeds $788,437) | $ (786,473) | ||
Swap Agreements | |||||||
Interest Rate Swaps | |||||||
Counterparty | Expiration | Notional | Payment | Payment | Value | Upfront | Unrealized |
JPMorgan Chase, Inc. | Oct. 2015 | $ 85,000 | 3-month LIBOR | 1.4% | $ (2,359) | $ 0 | $ (2,359) |
JPMorgan Chase, Inc. | Jun. 2017 | 17,900 | 3-month LIBOR | 1% | (124) | 0 | (124) |
JPMorgan Chase, Inc. | Nov. 2022 | 115,563 | 3-month LIBOR | 1.75% | 2,479 | 0 | 2,479 |
TOTAL INTEREST RATE SWAPS | $ (4) | $ 0 | $ (4) | ||||
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $3,332,000. |
(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(d) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
(e) Principal Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. |
(f) Coupon is inversely indexed to a floating interest rate multiplied by a specified factor. The price may be considerably more volatile than the price of a comparable fixed rate security. |
(g) Represents an investment in an underlying pool of reverse mortgages which typically do not require regular principal and interest payments as repayment is deferred until a maturity event. |
* Amount represents less than $1,000. |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$510,033,000 due 2/01/13 at 0.14% | |
Barclays Capital, Inc. | $ 171,863 |
Citigroup Global Markets, Inc. | 74,723 |
Credit Agricole CIB New York Branch | 199,262 |
Credit Suisse Securities (USA) LLC | 17,436 |
Mizuho Securities USA, Inc. | 46,749 |
| $ 510,033 |
Other Information |
All investments are categorized as Level 2 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. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of January 31, 2013. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Interest Rate Risk | ||
Swap Agreements (a) | $ 2,479 | $ (2,483) |
Total Value of Derivatives | $ 2,479 | $ (2,483) |
(a) Value is disclosed on the Statement of Assets and Liabilities in the Swap agreements, at value line-items. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including repurchase agreements of $510,033) - See accompanying schedule: Unaffiliated issuers (cost $12,225,188) |
| $ 12,463,708 |
Receivable for investments sold |
| 139,350 |
Delayed delivery |
| 964 |
Receivable for TBA sale commitments |
| 788,437 |
Receivable for fund shares sold | 7,881 | |
Interest receivable | 36,737 | |
Swap agreements, at value | 2,479 | |
Other receivables | 1,305 | |
Total assets | 13,440,861 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 27 | |
Payable for investments purchased | 1,079 | |
Delayed delivery | 2,134,511 | |
TBA sale commitments, at value | 786,473 | |
Payable for fund shares redeemed | 21,736 | |
Distributions payable | 1,462 | |
Swap agreements, at value | 2,483 | |
Accrued management fee | 2,809 | |
Other affiliated payables | 1,212 | |
Other payables and accrued expenses | 1,306 | |
Total liabilities | 2,953,098 | |
|
|
|
Net Assets | $ 10,487,763 | |
Net Assets consist of: |
| |
Paid in capital | $ 10,269,682 | |
Distributions in excess of net investment income | (29,304) | |
Accumulated undistributed net realized gain (loss) on investments | 6,905 | |
Net unrealized appreciation (depreciation) on investments | 240,480 | |
Net Assets, for 897,401 shares outstanding | $ 10,487,763 | |
Net Asset Value, offering price and redemption price per share ($10,487,763 ÷ 897,401 shares) | $ 11.69 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Interest |
| $ 135,439 |
|
|
|
Expenses | ||
Management fee | $ 17,241 | |
Transfer agent fees | 5,479 | |
Fund wide operations fee | 1,916 | |
Independent trustees' compensation | 21 | |
Miscellaneous | 12 | |
Total expenses before reductions | 24,669 | |
Expense reductions | (17) | 24,652 |
Net investment income (loss) | 110,787 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 42,155 | |
Swap agreements | (471) |
|
Total net realized gain (loss) |
| 41,684 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (165,257) | |
Swap agreements | 2,970 | |
Delayed delivery commitments | 1,808 |
|
Total change in net unrealized appreciation (depreciation) |
| (160,479) |
Net gain (loss) | (118,795) | |
Net increase (decrease) in net assets resulting from operations | $ (8,008) | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 110,787 | $ 263,049 |
Net realized gain (loss) | 41,684 | 186,563 |
Change in net unrealized appreciation (depreciation) | (160,479) | 84,676 |
Net increase (decrease) in net assets resulting | (8,008) | 534,288 |
Distributions to shareholders from net investment income | (113,377) | (263,677) |
Distributions to shareholders from net realized gain | (152,546) | (107,415) |
Total distributions | (265,923) | (371,092) |
Share transactions | 1,664,863 | 4,746,704 |
Reinvestment of distributions | 242,007 | 336,665 |
Cost of shares redeemed | (1,894,609) | (2,522,253) |
Net increase (decrease) in net assets resulting from share transactions | 12,261 | 2,561,116 |
Total increase (decrease) in net assets | (261,670) | 2,724,312 |
|
|
|
Net Assets | ||
Beginning of period | 10,749,433 | 8,025,121 |
End of period (including distributions in excess of net investment income of $29,304 and distributions in excess of net investment income of $26,714, respectively) | $ 10,487,763 | $ 10,749,433 |
Other Information Shares | ||
Sold | 140,546 | 399,649 |
Issued in reinvestment of distributions | 20,448 | 28,338 |
Redeemed | (160,606) | (212,320) |
Net increase (decrease) | 388 | 215,667 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.98 | $ 11.78 | $ 11.91 | $ 11.37 | $ 10.86 | $ 10.64 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .120 | .326 | .376 | .337 | .497 | .534 |
Net realized and unrealized gain (loss) | (.122) | .348 | .196 | .660 | .533 | .230 |
Total from investment operations | (.002) | .674 | .572 | .997 | 1.030 | .764 |
Distributions from net investment income | (.122) | (.330) | (.378) | (.342) | (.520) | (.544) |
Distributions from net realized gain | (.166) | (.144) | (.324) | (.115) | - | - |
Total distributions | (.288) | (.474) | (.702) | (.457) | (.520) | (.544) |
Net asset value, end of period | $ 11.69 | $ 11.98 | $ 11.78 | $ 11.91 | $ 11.37 | $ 10.86 |
Total Return B,C | (.02)% | 5.83% | 5.04% | 8.97% | 9.69% | 7.27% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of fee waivers, if any | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .45% A | .45% | .45% | .45% | .45% | .45% |
Net investment income (loss) | 2.01% A | 2.75% | 3.24% | 2.92% | 4.47% | 4.90% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 10,488 | $ 10,749 | $ 8,025 | $ 8,252 | $ 6,582 | $ 3,480 |
Portfolio turnover rate | 286% A | 263% | 367% | 540% | 464% | 227% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the Fund. 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 Fund 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 Fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity® GNMA Fund (the Fund) is a fund of Fidelity Income Fund (the Trust) and is authorized to issue an unlimited number of shares. 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.
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 following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The 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 the Fund's investments by major category are as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
2. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. Swap agreements are marked-to-market daily based on valuations from third party pricing vendors or broker-supplied valuations. Pricing vendors utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates. When independent prices are unavailable or unreliable, debt securities and swap agreements may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities and swap agreements are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and net asset value (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. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
2. Significant Accounting Policies - continued
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to swap agreements, market discount, deferred trustees compensation, financing transactions, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 287,410 |
Gross unrealized depreciation | (49,627) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 237,783 |
|
|
Tax cost | $ 12,225,925 |
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
2. Significant Accounting Policies - continued
Repurchase Agreements - continued
segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
To-Be-Announced (TBA) Securities and Mortgage Dollar Rolls. During the period, the Fund transacted in TBA securities that involved buying or selling mortgage-backed securities (MBS) on a forward commitment basis. A TBA transaction typically does not designate the actual security to be delivered and only includes an approximate principal amount; however delivered securities must meet specified terms defined by industry guidelines, including issuer, rate and current principal amount outstanding on underlying mortgage pools. The Fund may enter into a TBA transaction with the intent to take possession of or deliver the underlying MBS, or the Fund may elect to extend the settlement by entering into either a mortgage or reverse mortgage dollar roll. Mortgage dollar rolls are transactions where a fund sells TBA securities and simultaneously agrees to repurchase MBS on a later date at a lower price and with the same counterparty. Reverse mortgage dollar rolls involve the purchase and simultaneous agreement to sell TBA securities on a later date at a lower price. Transactions in mortgage dollar rolls and reverse mortgage dollar rolls are accounted for as purchases and sales and may result in an increase to the Fund's portfolio turnover rate.
Purchases and sales of TBA securities involve risks similar to those discussed above for delayed delivery and when-issued securities. Also, if the counterparty in a mortgage dollar roll or a reverse mortgage dollar roll transaction files for bankruptcy or becomes insolvent, the Fund's right to repurchase or sell securities may be limited. Additionally, when a fund sells TBA securities without already owning or having the right to obtain the deliverable securities (an uncovered forward commitment to sell), it incurs a risk of loss
Semiannual Report
2. Significant Accounting Policies - continued
To-Be-Announced (TBA) Securities and Mortgage Dollar Rolls - continued
because it could have to purchase the securities at a price that is higher than the price at which it sold them. A fund may be unable to purchase the deliverable securities if the corresponding market is illiquid.
TBA securities subject to a forward commitment to sell at period end are included at the end of the Fund's Schedule of Investments under the caption "TBA Sale Commitments." The proceeds and value of these commitments are reflected in the Fund's Statement of Assets and Liabilities.
New Accounting Pronouncement. In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
3. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including swap agreements. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Interest Rate Risk | Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain OTC derivatives such as swap agreements, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. The Fund may be required to pledge collateral for the benefit of the counterparties on OTC derivatives in an amount not less than each counterparty's unrealized appreciation on outstanding derivative contracts, subject to certain minimum transfer provisions, and any such pledged collateral is identified in the Schedule of Investments.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and
Semiannual Report
3. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period as presented in the Statement of Operations.
Primary Risk Exposure / Derivative Type | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) |
Interest Rate Risk |
|
|
Swap Agreements (a) | $ (471) | $ 2,970 |
(a) A summary of the value of derivatives by primary risk exposure as of period end is included at the end of the Schedule of Investments and is representative of activity for the period
Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.
Swaps are marked-to-market daily and changes in value are reflected in the Statement of Assets and Liabilities in the swap agreements at value line items. Any upfront premiums paid or received upon entering a swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded in net unrealized appreciation (depreciation) in the Statement of Assets and Liabilities and amortized to realized gain or (loss) ratably over the term of the swap. Any unamortized upfront premiums are presented in the Schedule of Investments. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.
Any open swaps at period end are included in the Schedule of Investments under the caption "Swap Agreements."
Interest Rate Swaps. Interest rate swaps are agreements between counterparties to exchange cash flows, one based on a fixed rate, and the other on a floating rate. The Fund entered into interest rate swaps to manage its exposure to interest rate changes. Changes in interest rates can have an effect on both the value of bond holdings as well as the amount of interest income earned. In general, the value of bonds can fall when interest rates rise and can rise when interest rates fall.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .31% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives an asset-based fee of .10% of the Fund's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $13 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's management fee. During the period, these credits reduced the Fund's management fee by $17.
Semiannual Report
7. Other.
The Fund's 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 Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity GNMA Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv) continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors; and (ix) reducing certain transfer agent fee rates.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2011, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (top of box) and the 75th percentile return (bottom of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Semiannual Report
Fidelity GNMA Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the first quartile for all the periods shown. The Board also noted that the investment performance of the fund compared favorably to its benchmark for all the periods shown. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity GNMA Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Semiannual Report
Total Expense Ratio. In its review of the fund's total expense ratio, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the fund's total expense ratio ranked below its competitive median for 2011.
The Board considered that the current contractual arrangements for the fund have the effect of setting the total "fund-level" expenses (including, among certain other "fund-level" expenses, the management fee) at 0.35%.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the fund's total "fund-level" expenses at 0.35%, increases or decreases in the management fee due to changes in the group fee rate will not impact the total expense ratio.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Semiannual Report
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes; (ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Management & Research (U.K.) Inc.
Fidelity Investments
Money Management, Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
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
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer Street, Boston, MA 02210
www.fidelity.com
MOG-USAN-0313 1.930528.101
Fidelity®
Ultra-Short Bond
Fund
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
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 fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, 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 Fund 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 (August 1, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.70 | $ 3.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.93 | $ 3.31 |
Class T | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.50 | $ 3.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Ultra-Short Bond | .45% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.80 | $ 2.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.94 | $ 2.29 |
Institutional Class | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.50 | $ 2.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Quality Diversification (% of fund's net assets) | |||||||
As of January 31, 2013 | As of July 31, 2012 | ||||||
 | U.S. Government and |
| | U.S. Government and |
| ||
 | AAA 22.9% |
| | AAA 19.9% |
| ||
 | AA 14.8% |
| | AA 14.5% |
| ||
 | A 25.8% |
| | A 24.2% |
| ||
 | BBB 18.0% |
| | BBB 13.8% |
| ||
 | BB and Below 0.0% |
|  | BB and Below 0.3% |
| ||
 | Not Rated 0.2% |
| | Not Rated 2.8% |
| ||
 | Short-Term |
| | Short-Term |
| ||
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition. |
Weighted Average Maturity as of January 31, 2013 | ||
|
| 6 months ago |
Years | 1.5 | 1.4 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of January 31, 2013 | ||
|
| 6 months ago |
Years | 0.3 | 0.4 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds. |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
| Corporate Bonds 57.4% |
| | Corporate Bonds 53.1% |
| ||
 | U.S. Government and |
| | U.S. Government and |
| ||
 | Asset-Backed |
| | Asset-Backed |
| ||
 | CMOs and Other Mortgage Related Securities 2.7% |
| | CMOs and Other Mortgage Related Securities 3.2% |
| ||
| Municipal Bonds 1.0% |
| | Municipal Bonds 1.0% |
| ||
| Short-Term |
| | Short-Term |
| ||
* Foreign investments | 17.7% |
| ** Foreign investments | 16.4% |
| ||
* Futures and Swaps | 0.0% |
| ** Futures and Swaps | 9.2% |
| ||
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Nonconvertible Bonds - 57.4% | ||||
| Principal Amount | Value | ||
CONSUMER DISCRETIONARY - 2.8% | ||||
Auto Components - 0.5% | ||||
Johnson Controls, Inc. 0.7228% 2/4/14 (d) | $ 1,500,000 | $ 1,503,879 | ||
Automobiles - 2.3% | ||||
Daimler Finance North America LLC: | ||||
0.905% 1/9/15 (c)(d) | 2,000,000 | 1,999,276 | ||
1.085% 4/10/14 (c)(d) | 1,250,000 | 1,255,798 | ||
Volkswagen International Finance NV: | ||||
0.9115% 11/20/14 (c)(d) | 2,000,000 | 1,999,300 | ||
0.918% 4/1/14 (c)(d) | 2,500,000 | 2,507,523 | ||
| 7,761,897 | |||
TOTAL CONSUMER DISCRETIONARY | 9,265,776 | |||
CONSUMER STAPLES - 1.8% | ||||
Food & Staples Retailing - 0.9% | ||||
Walgreen Co. 0.8095% 3/13/14 (d) | 3,000,000 | 3,004,614 | ||
Food Products - 0.9% | ||||
General Mills, Inc.: | ||||
0.6005% 1/29/16 (d) | 609,000 | 609,543 | ||
0.66% 5/16/14 (d) | 2,475,000 | 2,482,645 | ||
| 3,092,188 | |||
TOTAL CONSUMER STAPLES | 6,096,802 | |||
ENERGY - 0.9% | ||||
Oil, Gas & Consumable Fuels - 0.9% | ||||
Total Capital Canada Ltd. 0.683% 1/15/16 (d) | 3,000,000 | 3,011,238 | ||
FINANCIALS - 44.0% | ||||
Capital Markets - 8.9% | ||||
Goldman Sachs Group, Inc.: | ||||
0.911% 9/29/14 (d) | 1,000,000 | 998,781 | ||
1.3118% 2/7/14 (d) | 2,000,000 | 2,008,826 | ||
HSBC Bank PLC 1.103% 1/17/14 (c)(d) | 3,000,000 | 3,019,728 | ||
JPMorgan Chase & Co.: | ||||
0.964% 10/15/15 (d) | 7,375,000 | 7,406,742 | ||
1.102% 1/24/14 (d) | 2,625,000 | 2,644,215 | ||
Merrill Lynch & Co., Inc. 0.7491% 1/15/15 (d) | 3,500,000 | 3,469,228 | ||
Morgan Stanley 0.605% 1/9/14 (d) | 2,000,000 | 1,991,650 | ||
State Street Corp. 0.6605% 3/7/14 (d) | 2,000,000 | 2,006,320 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Capital Markets - continued | ||||
The Bank of New York Mellon Corp.: | ||||
0.532% 10/23/15 (d) | $ 1,000,000 | $ 999,757 | ||
0.5705% 7/28/14 (d) | 2,000,000 | 2,005,090 | ||
UBS AG Stamford Branch 1.3005% 1/28/14 (d) | 2,963,000 | 2,983,548 | ||
| 29,533,885 | |||
Commercial Banks - 19.1% | ||||
ABN AMRO Bank NV 2.0715% 1/30/14 (c)(d) | 1,000,000 | 1,012,740 | ||
ANZ Banking Group Ltd. 1.045% 1/10/14 (c)(d) | 1,000,000 | 1,006,019 | ||
Bank of Montreal 0.7795% 9/11/15 (d) | 2,400,000 | 2,410,142 | ||
Bank of Nova Scotia 1.345% 1/12/15 (d) | 1,000,000 | 1,014,761 | ||
Bank of Tokyo-Mitsubishi UFJ Ltd. 0.9715% 2/24/14 (c)(d) | 500,000 | 501,681 | ||
Barclays Bank PLC 1.345% 1/13/14 (d) | 3,500,000 | 3,522,064 | ||
BB&T Corp. 1.0005% 4/28/14 (d) | 2,000,000 | 2,011,652 | ||
BNP Paribas: | ||||
0.705% 4/8/13 (d) | 1,000,000 | 1,000,598 | ||
1.205% 1/10/14 (d) | 1,000,000 | 1,004,823 | ||
Commonwealth Bank of Australia: | ||||
1.038% 3/17/14 (c)(d) | 2,500,000 | 2,517,453 | ||
1.108% 9/18/15 (c)(d) | 1,000,000 | 1,009,712 | ||
Credit Suisse New York Branch: | ||||
1.265% 1/14/14 (d) | 2,500,000 | 2,516,760 | ||
2.2% 1/14/14 | 1,000,000 | 1,015,596 | ||
Danske Bank A/S 1.355% 4/14/14 (c)(d) | 500,000 | 502,946 | ||
Fifth Third Bancorp 6.25% 5/1/13 | 1,000,000 | 1,013,568 | ||
Fifth Third Bank 0.421% 5/17/13 (d) | 3,000,000 | 2,996,739 | ||
ING Bank NV 1.623% 10/18/13 (c)(d) | 500,000 | 503,808 | ||
KeyBank NA 5.8% 7/1/14 | 1,000,000 | 1,069,620 | ||
KeyCorp. 6.5% 5/14/13 | 2,000,000 | 2,032,514 | ||
National Australia Bank Ltd. 0.602% 1/22/15 (c)(d) | 1,500,000 | 1,499,421 | ||
PNC Bank NA 0.611% 1/28/16 (d) | 2,000,000 | 2,004,146 | ||
PNC Funding Corp. 0.5005% 1/31/14 (d) | 2,000,000 | 2,002,586 | ||
Rabobank (Netherlands) NV 0.655% 4/14/14 (d) | 3,250,000 | 3,252,278 | ||
Royal Bank of Canada: | ||||
0.603% 4/17/14 (d) | 2,500,000 | 2,509,243 | ||
1.0015% 10/30/14 (d) | 1,000,000 | 1,009,159 | ||
Societe Generale 2.2% 9/14/13 (c) | 1,122,000 | 1,128,487 | ||
Sumitomo Mitsui Banking Corp. 1.252% 7/22/14 (c)(d) | 3,801,000 | 3,832,697 | ||
SunTrust Banks, Inc. 0.608% 4/1/15 (d) | 2,509,000 | 2,453,275 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Commercial Banks - continued | ||||
The Toronto Dominion Bank: | ||||
0.605% 7/14/14 (d) | $ 2,000,000 | $ 2,006,924 | ||
0.7628% 11/1/13 (d) | 500,000 | 501,300 | ||
U.S. Bank NA 0.585% 10/14/14 (d) | 1,510,000 | 1,512,197 | ||
Union Bank NA 1.2605% 6/6/14 (d) | 2,000,000 | 2,015,872 | ||
Wachovia Bank NA 0.6928% 11/3/14 (d) | 3,500,000 | 3,489,707 | ||
Wells Fargo Bank NA 2.3588% 5/16/16 (d) | 3,000,000 | 2,947,977 | ||
Westpac Banking Corp.: | ||||
1.041% 3/31/14 (c)(d) | 1,000,000 | 1,006,673 | ||
1.07% 9/25/15 (d) | 2,000,000 | 2,012,194 | ||
| 63,847,332 | |||
Consumer Finance - 8.2% | ||||
American Express Credit Corp.: | ||||
0.76% 11/13/15 (d) | 3,363,000 | 3,367,621 | ||
1.16% 6/24/14 (d) | 382,000 | 385,615 | ||
1.4105% 6/12/15 (d) | 1,000,000 | 1,018,614 | ||
American Honda Finance Corp. 0.7618% 5/8/14 (c)(d) | 2,000,000 | 2,009,314 | ||
Capital One Financial Corp.: | ||||
0.9528% 11/6/15 (d) | 1,500,000 | 1,503,261 | ||
1.454% 7/15/14 (d) | 5,040,000 | 5,090,869 | ||
Caterpillar Financial Services Corp. 0.66% 2/9/15 (d) | 2,000,000 | 2,008,054 | ||
General Electric Capital Corp.: | ||||
0.905% 1/8/16 (d) | 2,000,000 | 2,005,818 | ||
1.002% 4/24/14 (d) | 2,090,000 | 2,106,576 | ||
1.155% 1/7/14 (d) | 5,000,000 | 5,040,530 | ||
HSBC Finance Corp. 0.554% 1/15/14 (d) | 800,000 | 799,407 | ||
Toyota Motor Credit Corp. 0.4815% 11/21/14 (d) | 2,000,000 | 1,999,296 | ||
| 27,334,975 | |||
Diversified Financial Services - 5.9% | ||||
Bank of America Corp. 1.855% 7/11/14 (d) | 2,000,000 | 2,028,858 | ||
BP Capital Markets PLC 0.9095% 3/11/14 (d) | 2,000,000 | 2,011,750 | ||
Citigroup, Inc.: | ||||
0.5928% 11/5/14 (d) | 2,000,000 | 1,985,446 | ||
1.755% 1/13/14 (d) | 3,341,000 | 3,375,382 | ||
2.31% 8/13/13 (d) | 1,500,000 | 1,513,514 | ||
MassMutual Global Funding II: | ||||
0.4705% 12/6/13 (c)(d) | 841,000 | 841,994 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Diversified Financial Services - continued | ||||
MassMutual Global Funding II: - continued | ||||
0.685% 1/14/14 (c)(d) | $ 2,942,000 | $ 2,949,084 | ||
MetLife Institutional Funding II 0.675% 1/6/15 (c)(d) | 5,000,000 | 5,005,825 | ||
| 19,711,853 | |||
Insurance - 1.9% | ||||
Monumental Global Funding III 0.504% 1/15/14 (c)(d) | 2,000,000 | 1,999,198 | ||
New York Life Global Funding 0.565% 4/4/14 (c)(d) | 1,400,000 | 1,405,054 | ||
Principal Life Global Funding II 0.93% 7/9/14 (c)(d) | 1,500,000 | 1,499,909 | ||
Principal Life Income Funding Trusts 0.4918% 11/8/13 (d) | 1,425,000 | 1,425,865 | ||
| 6,330,026 | |||
TOTAL FINANCIALS | 146,758,071 | |||
HEALTH CARE - 1.6% | ||||
Pharmaceuticals - 1.6% | ||||
AbbVie, Inc. 1.0718% 11/6/15 (c)(d) | 3,000,000 | 3,045,906 | ||
Teva Pharmaceutical Finance Co. BV 1.2118% 11/8/13 (d) | 1,250,000 | 1,257,214 | ||
Teva Pharmaceutical Finance III BV 0.81% 3/21/14 (d) | 1,000,000 | 1,004,851 | ||
| 5,307,971 | |||
INFORMATION TECHNOLOGY - 1.2% | ||||
Computers & Peripherals - 0.6% | ||||
Hewlett-Packard Co. 0.5915% 5/24/13 (d) | 2,000,000 | 1,996,194 | ||
Office Electronics - 0.6% | ||||
Xerox Corp. 1.13% 5/16/14 (d) | 2,195,000 | 2,190,794 | ||
TOTAL INFORMATION TECHNOLOGY | 4,186,988 | |||
TELECOMMUNICATION SERVICES - 1.9% | ||||
Diversified Telecommunication Services - 1.9% | ||||
British Telecommunications PLC 1.434% 12/20/13 (d) | 2,445,000 | 2,465,296 | ||
Qwest Corp. 3.558% 6/15/13 (d) | 1,000,000 | 1,006,109 | ||
Verizon Communications, Inc. 0.92% 3/28/14 (d) | 3,000,000 | 3,020,310 | ||
| 6,491,715 | |||
UTILITIES - 3.2% | ||||
Electric Utilities - 1.6% | ||||
Appalachian Power Co. 0.685% 8/16/13 (d) | 1,937,000 | 1,939,588 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
UTILITIES - continued | ||||
Electric Utilities - continued | ||||
Cleveland Electric Illuminating Co. 5.65% 12/15/13 | $ 1,400,000 | $ 1,457,728 | ||
Duke Energy Corp. 3.95% 9/15/14 | 431,000 | 452,986 | ||
NextEra Energy Capital Holdings, Inc. 1.611% 6/1/14 | 527,000 | 532,552 | ||
Northeast Utilities 1.059% 9/20/13 (d) | 810,000 | 813,521 | ||
| 5,196,375 | |||
Multi-Utilities - 1.6% | ||||
Dominion Resources, Inc. 5% 3/15/13 | 1,000,000 | 1,005,229 | ||
DTE Energy Co. 1.0105% 6/3/13 (d) | 1,183,000 | 1,184,664 | ||
Sempra Energy 1.068% 3/15/14 (d) | 3,157,000 | 3,172,018 | ||
| 5,361,911 | |||
TOTAL UTILITIES | 10,558,286 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $190,879,486) |
| |||
U.S. Government Agency - Mortgage Securities - 1.6% | ||||
| ||||
Fannie Mae - 1.6% | ||||
2.374% 6/1/35 (d) | 886,558 | 947,134 | ||
2.38% 7/1/35 (d) | 686,853 | 730,477 | ||
2.429% 12/1/34 (d) | 463,672 | 494,806 | ||
2.492% 11/1/34 (d) | 467,597 | 499,593 | ||
2.619% 2/1/34 (d) | 265,332 | 278,177 | ||
2.644% 6/1/35 (d) | 387,500 | 413,836 | ||
2.674% 11/1/34 (d) | 414,595 | 442,206 | ||
2.691% 10/1/35 (d) | 927,854 | 987,761 | ||
2.792% 7/1/34 (d) | 407,521 | 437,195 | ||
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $5,009,669) |
| |||
Asset-Backed Securities - 20.6% | ||||
| ||||
Ally Auto Receivables Trust: | ||||
Series 2012-1 Class A2, 0.71% 9/15/14 | 486,172 | 486,818 | ||
Series 2012-2 Class A2, 0.56% 10/15/14 | 248,455 | 248,637 | ||
Series 2012-3 Class A2, 0.7% 1/15/15 | 946,114 | 947,607 | ||
Series 2012-SN1: | ||||
Class A2, 0.51% 12/22/14 | 1,000,000 | 1,000,149 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Ally Auto Receivables Trust: - continued | ||||
Series 2012-SN1: | ||||
Class A3, 0.57% 8/20/15 | $ 400,000 | $ 400,006 | ||
Ally Master Owner Trust: | ||||
Series 2011-1 Class A1, 1.0757% 1/15/16 (d) | 3,290,000 | 3,309,727 | ||
Series 2011-3 Class A2, 1.81% 5/15/16 | 220,000 | 223,255 | ||
Series 2011-5 Class A1, 0.8557% 6/15/15 (d) | 510,000 | 510,581 | ||
Series 2012-2 Class A, 0.7057% 3/15/16 (d) | 1,000,000 | 1,000,391 | ||
Series 2012-3 Class A2, 1.21% 6/15/17 | 1,000,000 | 1,003,056 | ||
AmeriCredit Auto Receivables Trust: | ||||
Series 2010-4 Class A3, 1.27% 4/8/15 | 591,909 | 592,841 | ||
Series 2011-2 Class A2, 0.9% 9/8/14 | 7,027 | 7,027 | ||
Series 2011-4 Class A/S, 0.92% 3/9/15 | 177,500 | 177,677 | ||
Series 2011-5 Class A2, 1.19% 8/8/15 | 58,193 | 58,341 | ||
Series 2012-1 Class A2, 0.91% 10/8/15 | 685,687 | 687,323 | ||
Series 2012-2 Class A2, 0.76% 10/8/15 | 2,117,563 | 2,121,038 | ||
Series 2012-5 Class A2, 0.51% 1/8/16 | 1,000,000 | 999,911 | ||
Avis Budget Rental Car Funding (AESOP) LLC Series 2009-2A Class A, 5.68% 2/20/14 (c) | 30,000 | 30,080 | ||
BMW Floorplan Master Owner Trust Series 2012-1A Class A, 0.609% 9/15/17 (c)(d) | 2,260,000 | 2,256,878 | ||
BMW Vehicle Lease Trust Series 2012-1 Class A2, 0.59% 6/20/14 | 642,366 | 642,845 | ||
Capital Auto Receivables Asset Trust: | ||||
Series 2008-2 Class B, 6.46% 12/15/14 (c) | 808,286 | 814,251 | ||
Series 2008-A Class B, 6.89% 1/15/15 (c) | 179,148 | 180,191 | ||
Carmax Auto Owner Trust Series 2012-3 Class A2, 0.43% 9/15/15 | 2,000,000 | 1,999,892 | ||
Chase Issuance Trust: | ||||
Series 2012-A Class A1, 0.3057% 5/16/16 (d) | 2,000,000 | 2,001,055 | ||
Series 2012-A6 Class A, 0.3357% 8/15/17 (d) | 2,000,000 | 2,001,784 | ||
CIT Equipment Collateral Series 2012-VT1: | ||||
Class A2, 0.85% 5/20/14 (c) | 2,750,000 | 2,753,702 | ||
Class A3, 1.1% 8/22/16 (c) | 482,003 | 483,185 | ||
CNH Equipment Trust Series 2012-D Class A2, 0.51% 4/15/16 | 1,000,000 | 999,993 | ||
Discover Card Master Trust: | ||||
Series 2012-A2 Class A2, 0.3557% 10/17/16 (d) | 1,000,000 | 1,000,842 | ||
Series 2012-A5 Class A5, 0.4057% 1/16/18 (d) | 5,000,000 | 5,006,153 | ||
Fannie Mae Series 2004-T5: | ||||
Class AB1, 0.7075% 5/28/35 (d) | 80,751 | 66,024 | ||
Class AB3, 1.0037% 5/28/35 (d) | 32,052 | 24,960 | ||
Ford Credit Auto Lease Trust: | ||||
Series 2011-A Class A2, 0.74% 9/15/13 | 45,496 | 45,503 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Ford Credit Auto Lease Trust: - continued | ||||
Series 2012-A Class A2, 0.63% 4/15/14 | $ 1,576,324 | $ 1,577,736 | ||
Series 2012-B Class A2, 0.54% 11/15/14 | 150,000 | 150,087 | ||
Ford Credit Auto Owner Trust Series 2012-B Class A2, 0.57% 1/15/15 | 632,622 | 632,877 | ||
Ford Credit Auto Owner Trust 2012-D Series 2012-D Class A2, 0.4% 9/15/15 | 1,000,000 | 999,771 | ||
Ford Credit Floorplan Master Owner Trust: | ||||
Series 2010-5 Class A1, 1.5% 9/15/15 | 240,000 | 241,559 | ||
Series 2012-1 Class A, 0.679% 1/15/16 (d) | 5,000,000 | 5,015,480 | ||
Series 2012-4 Class A1, 0.74% 9/15/16 | 745,000 | 744,985 | ||
Fremont Home Loan Trust Series 2005-A Class M4, 1.2237% 1/25/35 (d) | 125,000 | 15,346 | ||
GE Capital Credit Card Master Note Trust: | ||||
Series 2012-1 Class A, 1.03% 1/15/18 | 857,000 | 865,407 | ||
Series 2012-4 Class A, 0.5057% 6/15/18 (d) | 5,000,000 | 5,010,220 | ||
GE Equipment Small Ticket LLC Series 2012-1A Class A2, 0.85% 11/21/14 (c) | 430,000 | 430,731 | ||
GE Equipment Transportation LLC: | ||||
Series 2012-1 Class A2, 0.74% 9/22/14 | 250,664 | 251,011 | ||
Series 2012-2 Class A2, 0.47% 4/24/15 | 510,000 | 509,819 | ||
Home Equity Asset Trust Series 2003-5 Class A2, 0.9037% 12/25/33 (d) | 10,566 | 8,913 | ||
Honda Auto Receivables Owner Trust Series 2011-3 Class A2, 0.67% 4/21/14 | 106,936 | 107,027 | ||
Hyundai Auto Receivables Trust Series 2012-B Class A2, 0.54% 1/15/15 | 1,500,000 | 1,501,319 | ||
John Deere Owner Trust: | ||||
Series 2012-A Class A2, 0.59% 6/16/14 | 341,108 | 341,282 | ||
Series 2012-B Class A2, 0.43% 2/17/15 | 2,000,000 | 2,000,775 | ||
Mercedes Benz Master Owner Trust Series 2012-BA Class A, 0.482% 11/15/16 (c)(d) | 2,370,000 | 2,370,234 | ||
Merrill Lynch Mortgage Investors Trust Series 2004-HE2 Class A1B, 0.6737% 8/25/35 (d) | 20,366 | 19,031 | ||
Morgan Stanley ABS Capital I Trust Series 2004-HE6 Class A2, 0.5437% 8/25/34 (d) | 65,756 | 57,428 | ||
Nissan Master Owner Trust Receivables Series 2012-A Class A, 0.679% 5/15/17 (d) | 2,250,000 | 2,255,494 | ||
Ocala Funding LLC Series 2006-1A Class A, 1.6047% 3/20/11 (b)(c)(d) | 965,000 | 0 | ||
Park Place Securities, Inc. Series 2004-WCW1 Class M4, 1.6537% 9/25/34 (d) | 435,000 | 127,282 | ||
Porsche Innovative Lease Owner Trust Series 2012-1 Class A2, 0.44% 2/23/15 (c) | 1,000,000 | 999,971 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0037% 4/25/33 (d) | $ 1,451 | $ 1,348 | ||
Santander Drive Auto Receivables Trust: | ||||
Series 2011-3 Class A2, 1.11% 8/15/14 | 60,376 | 60,447 | ||
Series 2011-4 Class A2, 1.37% 3/16/15 | 110,873 | 111,180 | ||
Series 2012-1 Class A2, 1.25% 4/15/15 | 445,974 | 447,396 | ||
Series 2012-2 Class A2, 0.91% 5/15/15 | 359,257 | 360,128 | ||
Series 2012-3 Class A2, 0.83% 4/15/15 | 815,197 | 816,784 | ||
Series 2013-1 Class A2, 0.48% 2/16/16 | 790,000 | 789,751 | ||
SLM Student Loan Trust: | ||||
Series 2012-6 Class A1, 0.3637% 2/27/17 (d) | 1,702,719 | 1,703,750 | ||
Series 2012-7 Class A2, 0.489% 9/25/19 (d) | 1,000,000 | 999,999 | ||
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.0637% 9/25/34 (d) | 21,802 | 19,835 | ||
Volkswagen Auto Lease Trust: | ||||
Series 2010-A Class A4, 1.18% 10/20/15 | 120,000 | 120,053 | ||
Series 2011-A Class A2, 1% 2/20/14 | 48,242 | 48,277 | ||
Volkswagen Auto Loan Enhanced Trust Series 2011-1 Class A3, 1.22% 6/22/15 | 117,887 | 118,437 | ||
World Omni Auto Lease Securitization Trust Series 2012-A Class A2, 0.71% 1/15/15 | 1,500,000 | 1,501,824 | ||
World Omni Auto Receivables Trust Series 2012-A Class A2, 0.52% 6/15/15 | 1,360,000 | 1,360,805 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $70,151,615) |
| |||
Collateralized Mortgage Obligations - 15.3% | ||||
| ||||
Private Sponsor - 1.1% | ||||
Arkle Master Issuer PLC floater Series 2010-1A Class 2A, 1.461% 5/17/60 (c)(d) | 1,740,000 | 1,740,710 | ||
Arran Residential Mortgages Funding PLC floater Series 2011-1A Class A1C, 1.511% 11/19/47 (c)(d) | 141,549 | 141,790 | ||
Granite Master Issuer PLC floater Series 2006-1A Class A5, 0.3447% 12/20/54 (c)(d) | 285,356 | 281,076 | ||
Granite Mortgages Series 2003-2 Class 1A3, 0.802% 7/20/43 (d) | 299,883 | 297,738 | ||
Granite Mortgages PLC floater: | ||||
Series 2003-3 Class 1A3, 0.702% 1/20/44 (d) | 42,441 | 42,152 | ||
Series 2004-1 Class 2A1, 0.629% 3/20/44 (d) | 674,480 | 669,657 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount | Value | ||
Private Sponsor - continued | ||||
Granite Mortgages PLC floater: - continued | ||||
Series 2004-3 Class 2A1, 0.589% 9/20/44 (d) | $ 284,018 | $ 281,987 | ||
GSR Mortgage Loan Trust floater Series 2004-11 Class 2A1, 0.5337% 12/25/34 (d) | 186,118 | 175,086 | ||
TOTAL PRIVATE SPONSOR | 3,630,196 | |||
U.S. Government Agency - 14.2% | ||||
Fannie Mae: | ||||
floater: | ||||
Series 2003-31 Class FM, 0.7037% 4/25/33 (d) | 1,600,221 | 1,611,127 | ||
Series 2006-33 Class CF, 0.5037% 5/25/36 (d) | 171,816 | 171,697 | ||
Series 2008-76 Class EF, 0.7037% 9/25/23 (d) | 44,025 | 44,166 | ||
Series 2010-86 Class FE, 0.6537% 8/25/25 (d) | 284,306 | 285,798 | ||
floater planned amortization class: | ||||
Series 2004-52 Class PF 0.6537% 12/25/33 (d) | 3,281,575 | 3,295,565 | ||
Series 2005-90 Class FC, 0.4537% 10/25/35 (d) | 173,955 | 173,946 | ||
pass-thru certificates Series 2012-127 Class DH, 4% 11/25/27 | 496,092 | 532,218 | ||
sequential payer: | ||||
Series 2005-47 Class HA, 4.5% 7/25/19 | 408,804 | 415,134 | ||
Series 2009-69 Class EA, 5% 10/25/36 | 1,754,551 | 1,793,065 | ||
Series 2011-16 Class FB, 0.3537% 3/25/31 (d) | 1,925,535 | 1,923,218 | ||
sequential payer floater: | ||||
Series 2005-74 Class DF, 0.5537% 7/25/35 (d) | 4,456,648 | 4,460,671 | ||
Series 2005-83 Class FP, 0.5337% 10/25/35 (d) | 6,133,614 | 6,132,775 | ||
Series 2011-23 Class AB, 2.75% 6/25/20 | 144,882 | 149,747 | ||
Freddie Mac: | ||||
floater: | ||||
Series 2711 Class FC, 1.1057% 2/15/33 (d) | 435,527 | 442,273 | ||
Series 3346 Class FA, 0.4357% 2/15/19 (d) | 3,741,896 | 3,747,285 | ||
Series 3879 Class AF, 0.6357% 6/15/41 (d) | 632,491 | 634,021 | ||
floater planned amortization: | ||||
Series 3102 Class FD, 0.5057% 1/15/36 (d) | 496,762 | 497,685 | ||
Series 4020 Class EF 0.6557% 2/15/42 (d) | 3,562,919 | 3,563,331 | ||
Series 4057 Class EF, 0.5557% 12/15/41 (d) | 2,845,009 | 2,855,014 | ||
floater planned amortization class: | ||||
Series 2953 Class LF, 0.5057% 12/15/34 (d) | 2,379,098 | 2,380,536 | ||
Series 3117 Class JF, 0.5057% 2/15/36 (d) | 195,277 | 195,511 | ||
floater sequential payer: | ||||
Series 2828 Class TF, 0.6557% 10/15/30 (d) | 944,146 | 947,712 | ||
Series 3046 Class F, 0.5757% 3/15/33 (d) | 2,392,976 | 2,387,957 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount | Value | ||
U.S. Government Agency - continued | ||||
Freddie Mac: - continued | ||||
floater sequential payer: | ||||
Series 3387 Class DF, 0.3857% 10/15/17 (d) | $ 232,847 | $ 232,834 | ||
planned amortization Series 2836 Class PX, 4% 5/15/18 | 986,681 | 1,005,560 | ||
planned amortization class: | ||||
Series 3081 Class CP 5.5% 10/15/34 | 724,373 | 753,479 | ||
Series 3792 Class DF, 0.6057% 11/15/40 (d) | 782,516 | 784,835 | ||
sequential payer: | ||||
Series 2582 Class CG, 4% 11/15/17 | 289,910 | 293,505 | ||
Series 2924 Class DA, 4.5% 2/15/19 | 326,985 | 331,599 | ||
Series 3560 Class LA, 2% 8/15/14 | 153,463 | 153,498 | ||
Series 3573 Class LC, 1.85% 8/15/14 | 423,588 | 425,645 | ||
Series 3659 Class EJ 3% 6/15/18 | 626,717 | 646,909 | ||
Series 3696 Class AE, 1.2% 7/15/15 | 272,845 | 274,468 | ||
Ginnie Mae guaranteed REMIC pass-thru certificates: | ||||
floater: | ||||
Series 2009-108 Class CF, 0.8057% 11/16/39 (d) | 245,675 | 247,768 | ||
Series 2009-116 Class KF, 0.7357% 12/16/39 (d) | 212,886 | 214,297 | ||
Series 2009-127 Class FA, 0.7547% 9/20/38 (d) | 271,630 | 273,624 | ||
Series 2010-9 Class FA, 0.7257% 1/16/40 (d) | 314,620 | 316,672 | ||
floater planned amortization Series 2004-80 Class FM, 0.5047% 7/20/34 (d) | 1,751,810 | 1,752,640 | ||
floater sequential payer Series 2010-120 Class FB 0.5047% 9/20/35 (d) | 322,768 | 323,033 | ||
planned amortization class: | ||||
Series 2010-112 Class PM, 3.25% 9/20/33 | 134,199 | 137,573 | ||
Series 2010-99 Class PT, 3.5% 8/20/33 | 167,539 | 172,420 | ||
Series 2012-149 Class LF, 0.4547% 12/20/42 (d) | 428,468 | 428,268 | ||
TOTAL U.S. GOVERNMENT AGENCY | 47,409,079 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $51,151,890) |
| |||
Commercial Mortgage Securities - 1.6% | ||||
| ||||
Banc of America REMIC Trust Series 2012-CLRN Class A1, 1.3557% 8/15/17 (c)(d) | 560,000 | 565,534 | ||
COMM pass-thru certificates floater Series 2006-CN2A Class A2FL, 0.4277% 2/5/19 (c)(d) | 584,594 | 573,036 | ||
Credit Suisse First Boston Mortgage Securities Corp. Series 2003-C4 Class A4, 5.137% 8/15/36 | 190,367 | 191,917 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Extended Stay America Trust floater Series 2013-ESFL: | ||||
Class A1FL, 1.108% 12/5/31 (c)(d) | $ 270,000 | $ 270,001 | ||
Class A2FL, 1.108% 12/5/31 (c)(d) | 350,000 | 350,002 | ||
GMAC Commercial Mortgage Securities, Inc. sequential payer Series 2003-C2 Class A2, 5.444% 5/10/40 (d) | 119,629 | 121,057 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP: | ||||
Class A1, 1.1031% 3/6/20 (c)(d) | 301,076 | 301,446 | ||
Class A2, 1.2601% 3/6/20 (c)(d) | 250,000 | 250,437 | ||
Class C, 2.0056% 3/6/20 (c)(d) | 300,000 | 301,192 | ||
sequential payer Series 2005-GG4 Class A3, 4.607% 7/10/39 | 5,154 | 5,180 | ||
GS Mortgage Securities Trust: | ||||
sequential payer Series 2006-GG8 Class A2, 5.479% 11/10/39 | 101,600 | 103,103 | ||
Series 2011-GC5 Class A1, 1.468% 8/10/44 (d) | 171,338 | 173,373 | ||
Series 2012-GC6 Class A1, 1.282% 1/10/45 | 82,599 | 83,306 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
floater Series 2011-CCHP Class A, 2.6% 7/15/28 (c)(d) | 211,756 | 211,886 | ||
Series 2003-CB7 Class A4, 4.879% 1/12/38 (d) | 97,917 | 100,220 | ||
Series 2012-C6 Class A1, 1.0305% 5/15/45 | 252,896 | 254,562 | ||
JPMorgan Chase Commercial Mortgage Securities Trust sequential payer: | ||||
Series 2005-LDP5 Class A2, 5.198% 12/15/44 | 120,885 | 121,826 | ||
Series 2007-LD11 Class A2, 5.7967% 6/15/49 (d) | 129,197 | 133,381 | ||
LB-UBS Commercial Mortgage Trust sequential payer Series 2003-C3 Class A4, 4.166% 5/15/32 | 37,199 | 37,296 | ||
Morgan Stanley Capital I Trust: | ||||
floater: | ||||
Series 2006-XLF Class C, 1.409% 7/15/19 (c)(d) | 247,826 | 99,130 | ||
Series 2007-XLFA: | ||||
Class A2, 0.306% 10/15/20 (c)(d) | 214,098 | 211,978 | ||
Class B, 0.336% 10/15/20 (c)(d) | 440,000 | 422,281 | ||
sequential payer Series 2003-IQ4 Class A2, 4.07% 5/15/40 | 21,916 | 21,947 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Morgan Stanley Dean Witter Capital I Trust sequential payer Series 2003-T11 Class A4, 5.15% 6/13/41 | $ 85,756 | $ 86,618 | ||
Wachovia Bank Commercial Mortgage Trust floater Series 2006-WL7A Class A2, 0.329% 9/15/21 (c)(d) | 249,045 | 244,555 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $5,680,819) |
| |||
Municipal Securities - 1.0% | ||||
| ||||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series 2010 A, 0.6%, tender 2/1/13 (d)(e) | 2,000,000 | 2,000,000 | ||
Illinois Gen. Oblig. Series 2010, 4.421% 1/1/15 | 1,375,000 | 1,450,158 | ||
TOTAL MUNICIPAL SECURITIES (Cost $3,454,202) |
| |||
Certificates of Deposit - 1.2% | ||||
| ||||
Bank of Nova Scotia yankee: | ||||
0.723% 10/18/13 (d) | 2,000,000 | 2,006,778 | ||
0.81% 2/10/14 (d) | 1,000,000 | 1,004,786 | ||
Nordea Bank Finland PLC yankee 0.7918% 2/7/13 (d) | 1,000,000 | 1,000,043 | ||
TOTAL CERTIFICATES OF DEPOSIT (Cost $3,998,812) | 4,011,607 | |||
Commercial Paper - 0.9% | ||||
| ||||
British Telecommunications PLC 1.5% 5/14/13 | 1,000,000 | 998,278 | ||
Vodafone Group PLC yankee: | ||||
0.77% 12/30/13 | 1,000,000 | 993,127 | ||
1.25% 3/12/13 | 1,000,000 | 999,663 | ||
TOTAL COMMERCIAL PAPER (Cost $2,987,295) | 2,991,068 | |||
Money Market Funds - 0.8% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.16% (a) | 2,580,205 | $ 2,580,205 | |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $335,893,993) | 334,991,131 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (1,211,502) | ||
NET ASSETS - 100% | $ 333,779,629 | ||
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(b) Non-income producing - Security is in default. |
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $60,343,823 or 18.1% of net assets. |
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 5,074 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, involving the Fund's assets and liabilities carried at fair value. 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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Corporate Bonds | $ 191,676,847 | $ - | $ 191,676,847 | $ - |
U.S. Government Agency - Mortgage Securities | 5,231,185 | - | 5,231,185 | - |
Asset-Backed Securities | 68,775,522 | - | 68,775,522 | - |
Collateralized Mortgage Obligations | 51,039,275 | - | 51,039,275 | - |
Commercial Mortgage Securities | 5,235,264 | - | 5,136,134 | 99,130 |
Municipal Securities | 3,450,158 | - | 3,450,158 | - |
Certificates of Deposit | 4,011,607 | - | 4,011,607 | - |
Commercial Paper | 2,991,068 | - | 2,991,068 | - |
Money Market Funds | 2,580,205 | 2,580,205 | - | - |
Total Investments in Securities: | $ 334,991,131 | $ 2,580,205 | $ 332,311,796 | $ 99,130 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 82.3% |
United Kingdom | 5.2% |
Canada | 3.7% |
Netherlands | 2.8% |
Australia | 2.7% |
Japan | 1.2% |
Others (Individually Less Than 1%) | 2.1% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $333,313,788) | $ 332,410,926 |
|
Fidelity Central Funds (cost $2,580,205) | 2,580,205 |
|
Total Investments (cost $335,893,993) |
| $ 334,991,131 |
Receivable for fund shares sold | 391,556 | |
Interest receivable | 362,884 | |
Distributions receivable from Fidelity Central Funds | 786 | |
Receivable from investment adviser for expense reductions | 116 | |
Other receivables | 198 | |
Total assets | 335,746,671 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,079,895 | |
Payable for fund shares redeemed | 756,324 | |
Distributions payable | 1,614 | |
Accrued management fee | 87,496 | |
Distribution and service plan fees payable | 2,336 | |
Other affiliated payables | 39,377 | |
Total liabilities | 1,967,042 | |
|
|
|
Net Assets | $ 333,779,629 | |
Net Assets consist of: |
| |
Paid in capital | $ 461,341,708 | |
Undistributed net investment income | 163,625 | |
Accumulated undistributed net realized gain (loss) on investments | (126,822,842) | |
Net unrealized appreciation (depreciation) on investments | (902,862) | |
Net Assets | $ 333,779,629 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.24 | |
|
|
|
Maximum offering price per share (100/98.50 of $8.24) | $ 8.37 | |
Class T: | $ 8.24 | |
|
|
|
Maximum offering price per share (100/98.50 of $8.24) | $ 8.37 | |
Ultra-Short Bond: | $ 8.24 | |
|
|
|
Institutional Class: | $ 8.24 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Interest |
| $ 1,550,076 |
Income from Fidelity Central Funds |
| 5,074 |
Total income |
| 1,555,150 |
|
|
|
Expenses | ||
Management fee | $ 516,152 | |
Transfer agent fees | 173,425 | |
Distribution and service plan fees | 14,023 | |
Fund wide operations fee | 57,364 | |
Independent trustees' compensation | 612 | |
Miscellaneous | 400 | |
Total expenses before reductions | 761,976 | |
Expense reductions | (774) | 761,202 |
Net investment income (loss) | 793,948 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 310,318 | |
Futures contracts | 17,414 | |
Total net realized gain (loss) |
| 327,732 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 691,390 | |
Futures contracts | (17,098) | |
Total change in net unrealized appreciation (depreciation) |
| 674,292 |
Net gain (loss) | 1,002,024 | |
Net increase (decrease) in net assets resulting from operations | $ 1,795,972 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 793,948 | $ 1,324,555 |
Net realized gain (loss) | 327,732 | (161,606) |
Change in net unrealized appreciation (depreciation) | 674,292 | 577,855 |
Net increase (decrease) in net assets resulting | 1,795,972 | 1,740,804 |
Distributions to shareholders from net investment income | (666,534) | (1,226,234) |
Share transactions - net increase (decrease) | 6,942,814 | 65,951,070 |
Redemption fees | 5,491 | 17,158 |
Total increase (decrease) in net assets | 8,077,743 | 66,482,798 |
|
|
|
Net Assets | ||
Beginning of period | 325,701,886 | 259,219,088 |
End of period (including undistributed net investment income of $163,625 and undistributed net investment income of $36,211, respectively) | $ 333,779,629 | $ 325,701,886 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .012 | .023 | .013 | .047 | .091 | .384 |
Net realized and unrealized gain (loss) | .027 | .007 | .051 | .040 | (.167) | (1.612) |
Total from investment operations | .039 | .030 | .064 | .087 | (.076) | (1.228) |
Distributions from net investment income | (.009) | (.020) | (.015) | (.047) | (.071) | (.294) |
Tax return of capital | - | - | - | - | (.003) | (.039) |
Total distributions | (.009) | (.020) | (.015) | (.047) | (.074) | (.333) |
Redemption fees added to paid in capital E | - I | - I | .001 | - I | - I | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C, D | .47% | .36% | .80% | 1.08% | (.92)% | (12.71)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .65% A | .66% | .63% | .64% | .68% | .67% |
Expenses net of fee waivers, if any | .65% A | .66% | .63% | .64% | .68% | .67% |
Expenses net of all reductions | .65% A | .66% | .63% | .64% | .67% | .66% |
Net investment income (loss) | .29% A | .28% | .16% | .58% | 1.13% | 4.26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14,148 | $ 15,635 | $ 12,242 | $ 18,129 | $ 8,033 | $ 6,268 |
Portfolio turnover rate G | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .010 | .019 | .009 | .044 | .090 | .377 |
Net realized and unrealized gain (loss) | .027 | .007 | .052 | .040 | (.168) | (1.607) |
Total from investment operations | .037 | .026 | .061 | .084 | (.078) | (1.230) |
Distributions from net investment income | (.007) | (.016) | (.012) | (.044) | (.069) | (.292) |
Tax return of capital | - | - | - | - | (.003) | (.039) |
Total distributions | (.007) | (.016) | (.012) | (.044) | (.072) | (.331) |
Redemption fees added to paid in capital E | - I | - I | .001 | - I | - I | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C, D | .45% | .32% | .76% | 1.03% | (.94)% | (12.72)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .74% A | .72% | .68% | .68% | .69% | .69% |
Expenses net of fee waivers, if any | .70% A | .70% | .68% | .68% | .69% | .69% |
Expenses net of all reductions | .70% A | .70% | .68% | .68% | .69% | .69% |
Net investment income (loss) | .24% A | .23% | .12% | .54% | 1.11% | 4.23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,146 | $ 3,312 | $ 4,811 | $ 5,334 | $ 3,114 | $ 2,910 |
Portfolio turnover rate G | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Ultra-Short Bond
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .020 | .040 | .028 | .063 | .111 | .404 |
Net realized and unrealized gain (loss) | .027 | .006 | .051 | .040 | (.169) | (1.603) |
Total from investment operations | .047 | .046 | .079 | .103 | (.058) | (1.199) |
Distributions from net investment income | (.017) | (.036) | (.030) | (.063) | (.088) | (.310) |
Tax return of capital | - | - | - | - | (.004) | (.042) |
Total distributions | (.017) | (.036) | (.030) | (.063) | (.092) | (.352) |
Redemption fees added to paid in capital D | - H | - H | .001 | - H | - H | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C | .58% | .57% | .99% | 1.27% | (.70)% | (12.42)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of fee waivers, if any | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .45% A | .45% | .45% | .45% | .44% | .45% |
Net investment income (loss) | .49% A | .48% | .34% | .77% | 1.36% | 4.47% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 308,056 | $ 291,005 | $ 239,921 | $ 239,266 | $ 217,282 | $ 315,401 |
Portfolio turnover rate F | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .018 | .037 | .025 | .057 | .102 | .416 |
Net realized and unrealized gain (loss) | .027 | .009 | .051 | .040 | (.168) | (1.619) |
Total from investment operations | .045 | .046 | .076 | .097 | (.066) | (1.203) |
Distributions from net investment income | (.015) | (.036) | (.027) | (.057) | (.081) | (.306) |
Tax return of capital | - | - | - | - | (.003) | (.042) |
Total distributions | (.015) | (.036) | (.027) | (.057) | (.084) | (.348) |
Redemption fees added to paid in capital D | - H | - H | .001 | - H | - H | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C | .55% | .56% | .95% | 1.20% | (.80)% | (12.46)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .50% A | .48% | .49% | .52% | .58% | .48% |
Expenses net of fee waivers, if any | .50% A | .48% | .49% | .52% | .55% | .48% |
Expenses net of all reductions | .50% A | .48% | .49% | .52% | .54% | .48% |
Net investment income (loss) | .44% A | .45% | .31% | .70% | 1.26% | 4.44% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8,430 | $ 15,750 | $ 2,245 | $ 1,206 | $ 623 | $ 594 |
Portfolio turnover rate F | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (Unaudited)
1. Organization.
Fidelity® Ultra-Short Bond Fund (the Fund) is a fund of Fidelity Income Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. The Fund offers Class A, Class T, Ultra-Short Bond and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. 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 following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The 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 the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, municipal securities, commercial paper and certificates of deposit, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities, and U.S. government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds , including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2013 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and may include proceeds received from litigation. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, premium on debt securities, market discount, capital loss carryforwards, certain losses related to deflation adjustments on U.S. Treasury inflation-indexed securities and losses deferred due to excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,372,207 |
Gross unrealized depreciation | (2,105,007) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (732,800) |
|
|
Tax cost | $ 335,723,931 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is 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. At July 31, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2014 | $ (1,917,431) |
2015 | (518,690) |
2016 | (12,186,304) |
2017 | (97,397,499) |
2018 | (9,829,719) |
2019 | (3,765,717) |
Total with expiration | (125,615,360) |
No expiration |
|
Long-term | (1,237,520) |
Total capital loss carryforward | $ (126,852,880) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days are subject to a redemption fee equal to .25% of the net asset value of shares
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees - continued
redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Interest Rate Risk | Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the bond market and to fluctuations in interest rates.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $17,414 and a change in net unrealized appreciation (depreciation) of $(17,098) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $118,867,926 and $85,008,566, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .31% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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 the 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:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .15% | $ 11,578 | $ 775 |
Class T | -% | .15% | 2,445 | 2 |
|
|
| $ 14,023 | $ 777 |
Sales Load. FDC may receive a front-end sales charge of up to 1.50% for selling Class A and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive a contingent deferred sales charges levied on Class A and Class T redemptions. The deferred sales charges range from .75% or .50% 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:
| Retained |
Class A | $ 1,372 |
Class T | 471 |
| $ 1,843 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Ultra-Short Bond. FIIOC receives an asset-based fee of .10% of Ultra-Short Bond's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 12,106 | .16 |
Class T | 4,084 | .25 |
Ultra-Short Bond | 150,387 | .10 |
Institutional Class | 6,848 | .16 |
| $ 173,425 |
|
* Annualized
Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, Rule 12b-1 fees, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $400 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
|
|
|
Class T | .70% | $ 735 |
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $39.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 16,569 | $ 38,543 |
Class T | 2,723 | 7,892 |
Ultra-Short Bond | 631,281 | 1,158,011 |
Institutional Class | 15,961 | 21,788 |
Total | $ 666,534 | $ 1,226,234 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 324,212 | 1,603,688 | $ 2,670,036 | $ 13,112,637 |
Reinvestment of distributions | 1,704 | 3,920 | 14,023 | 32,092 |
Shares redeemed | (513,119) | (1,196,047) | (4,224,665) | (9,779,740) |
Net increase (decrease) | (187,203) | 411,561 | $ (1,540,606) | $ 3,364,989 |
Class T |
|
|
|
|
Shares sold | 50,111 | 331,712 | $ 412,700 | $ 2,711,930 |
Reinvestment of distributions | 310 | 897 | 2,552 | 7,343 |
Shares redeemed | (71,927) | (515,942) | (592,185) | (4,218,475) |
Net increase (decrease) | (21,506) | (183,333) | $ (176,933) | $ (1,499,202) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Ultra-Short Bond |
|
|
|
|
Shares sold | 5,766,323 | 16,883,162 | $ 47,468,005 | $ 138,113,317 |
Reinvestment of distributions | 75,366 | 138,342 | 620,511 | 1,132,483 |
Shares redeemed | (3,896,662) | (10,834,545) | (32,082,621) | (88,649,539) |
Net increase (decrease) | 1,945,027 | 6,186,959 | $ 16,005,895 | $ 50,596,261 |
Institutional Class |
|
|
|
|
Shares sold | 340,241 | 1,909,832 | $ 2,801,393 | $ 15,655,264 |
Reinvestment of distributions | 1,699 | 2,252 | 13,983 | 18,456 |
Shares redeemed | (1,237,083) | (267,573) | (10,160,918) | (2,184,698) |
Net increase (decrease) | (895,143) | 1,644,511 | $ (7,345,542) | $ 13,489,022 |
11. Other.
The Fund's 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 Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Ultra-Short Bond Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
Semiannual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv) continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors; and (ix) reducing certain transfer agent fee rates.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2011, the cumulative total returns of the retail class and Class T of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class T show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (top of box) and the 75th percentile return (bottom of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ultra-Short Bond Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the third quartile for the one-year period and the fourth quartile for the three- and five-year periods. The Board also noted that the investment performance of the fund was lower than its benchmark for the one- and five-year periods, although the three-year cumulative total return of the retail class was comparable to its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to improve the fund's disappointing performance relative to its peer group and how investment personnel evaluate potential for incremental return against the risks involved in obtaining that incremental return. The Board considered the steps that FMR has taken to strengthen and refine its risk management processes in light of recent credit events that have affected various sectors of the fixed-income markets. The Board noted that this fund had underperformed in the past and discussed with FMR its disappointment with the continued underperformance of the fund. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.
Semiannual Report
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 26% means that 74% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ultra-Short Bond Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expense ratio of each class ranked below its competitive median for 2011.
The Board considered that the current contractual arrangements for the fund have the effect of setting the total "fund-level" (but not "class-level") expenses (including, among certain other "fund-level" expenses, the management fee) for each class at 0.35%.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses for each class at 0.35%, increases or decreases in the management fee due to changes in the group fee rate will not impact the total expense ratio.
Semiannual Report
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes; (ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Semiannual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments
Money Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
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
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
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for the deaf and hearing impaired
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Fidelity Automated Service
Telephone (FAST®)
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Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer Street, Boston, MA 02210
www.fidelity.com
ULB-USAN-0313 1.789738.109
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Ultra-Short Bond
Fund - Institutional Class
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Institutional Class
is a class of
Fidelity® Ultra-Short Bond Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
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 fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, 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 Fund 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 (August 1, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.70 | $ 3.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.93 | $ 3.31 |
Class T | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.50 | $ 3.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Ultra-Short Bond | .45% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.80 | $ 2.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.94 | $ 2.29 |
Institutional Class | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.50 | $ 2.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Quality Diversification (% of fund's net assets) | |||||||
As of January 31, 2013 | As of July 31, 2012 | ||||||
 | U.S. Government and |
| | U.S. Government and |
| ||
 | AAA 22.9% |
| | AAA 19.9% |
| ||
 | AA 14.8% |
| | AA 14.5% |
| ||
 | A 25.8% |
| | A 24.2% |
| ||
 | BBB 18.0% |
| | BBB 13.8% |
| ||
 | BB and Below 0.0% |
|  | BB and Below 0.3% |
| ||
 | Not Rated 0.2% |
| | Not Rated 2.8% |
| ||
 | Short-Term |
| | Short-Term |
| ||
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition. |
Weighted Average Maturity as of January 31, 2013 | ||
|
| 6 months ago |
Years | 1.5 | 1.4 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of January 31, 2013 | ||
|
| 6 months ago |
Years | 0.3 | 0.4 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds. |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
| Corporate Bonds 57.4% |
| | Corporate Bonds 53.1% |
| ||
 | U.S. Government and |
| | U.S. Government and |
| ||
 | Asset-Backed |
| | Asset-Backed |
| ||
 | CMOs and Other Mortgage Related Securities 2.7% |
| | CMOs and Other Mortgage Related Securities 3.2% |
| ||
| Municipal Bonds 1.0% |
| | Municipal Bonds 1.0% |
| ||
| Short-Term |
| | Short-Term |
| ||
* Foreign investments | 17.7% |
| ** Foreign investments | 16.4% |
| ||
* Futures and Swaps | 0.0% |
| ** Futures and Swaps | 9.2% |
| ||
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Nonconvertible Bonds - 57.4% | ||||
| Principal Amount | Value | ||
CONSUMER DISCRETIONARY - 2.8% | ||||
Auto Components - 0.5% | ||||
Johnson Controls, Inc. 0.7228% 2/4/14 (d) | $ 1,500,000 | $ 1,503,879 | ||
Automobiles - 2.3% | ||||
Daimler Finance North America LLC: | ||||
0.905% 1/9/15 (c)(d) | 2,000,000 | 1,999,276 | ||
1.085% 4/10/14 (c)(d) | 1,250,000 | 1,255,798 | ||
Volkswagen International Finance NV: | ||||
0.9115% 11/20/14 (c)(d) | 2,000,000 | 1,999,300 | ||
0.918% 4/1/14 (c)(d) | 2,500,000 | 2,507,523 | ||
| 7,761,897 | |||
TOTAL CONSUMER DISCRETIONARY | 9,265,776 | |||
CONSUMER STAPLES - 1.8% | ||||
Food & Staples Retailing - 0.9% | ||||
Walgreen Co. 0.8095% 3/13/14 (d) | 3,000,000 | 3,004,614 | ||
Food Products - 0.9% | ||||
General Mills, Inc.: | ||||
0.6005% 1/29/16 (d) | 609,000 | 609,543 | ||
0.66% 5/16/14 (d) | 2,475,000 | 2,482,645 | ||
| 3,092,188 | |||
TOTAL CONSUMER STAPLES | 6,096,802 | |||
ENERGY - 0.9% | ||||
Oil, Gas & Consumable Fuels - 0.9% | ||||
Total Capital Canada Ltd. 0.683% 1/15/16 (d) | 3,000,000 | 3,011,238 | ||
FINANCIALS - 44.0% | ||||
Capital Markets - 8.9% | ||||
Goldman Sachs Group, Inc.: | ||||
0.911% 9/29/14 (d) | 1,000,000 | 998,781 | ||
1.3118% 2/7/14 (d) | 2,000,000 | 2,008,826 | ||
HSBC Bank PLC 1.103% 1/17/14 (c)(d) | 3,000,000 | 3,019,728 | ||
JPMorgan Chase & Co.: | ||||
0.964% 10/15/15 (d) | 7,375,000 | 7,406,742 | ||
1.102% 1/24/14 (d) | 2,625,000 | 2,644,215 | ||
Merrill Lynch & Co., Inc. 0.7491% 1/15/15 (d) | 3,500,000 | 3,469,228 | ||
Morgan Stanley 0.605% 1/9/14 (d) | 2,000,000 | 1,991,650 | ||
State Street Corp. 0.6605% 3/7/14 (d) | 2,000,000 | 2,006,320 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Capital Markets - continued | ||||
The Bank of New York Mellon Corp.: | ||||
0.532% 10/23/15 (d) | $ 1,000,000 | $ 999,757 | ||
0.5705% 7/28/14 (d) | 2,000,000 | 2,005,090 | ||
UBS AG Stamford Branch 1.3005% 1/28/14 (d) | 2,963,000 | 2,983,548 | ||
| 29,533,885 | |||
Commercial Banks - 19.1% | ||||
ABN AMRO Bank NV 2.0715% 1/30/14 (c)(d) | 1,000,000 | 1,012,740 | ||
ANZ Banking Group Ltd. 1.045% 1/10/14 (c)(d) | 1,000,000 | 1,006,019 | ||
Bank of Montreal 0.7795% 9/11/15 (d) | 2,400,000 | 2,410,142 | ||
Bank of Nova Scotia 1.345% 1/12/15 (d) | 1,000,000 | 1,014,761 | ||
Bank of Tokyo-Mitsubishi UFJ Ltd. 0.9715% 2/24/14 (c)(d) | 500,000 | 501,681 | ||
Barclays Bank PLC 1.345% 1/13/14 (d) | 3,500,000 | 3,522,064 | ||
BB&T Corp. 1.0005% 4/28/14 (d) | 2,000,000 | 2,011,652 | ||
BNP Paribas: | ||||
0.705% 4/8/13 (d) | 1,000,000 | 1,000,598 | ||
1.205% 1/10/14 (d) | 1,000,000 | 1,004,823 | ||
Commonwealth Bank of Australia: | ||||
1.038% 3/17/14 (c)(d) | 2,500,000 | 2,517,453 | ||
1.108% 9/18/15 (c)(d) | 1,000,000 | 1,009,712 | ||
Credit Suisse New York Branch: | ||||
1.265% 1/14/14 (d) | 2,500,000 | 2,516,760 | ||
2.2% 1/14/14 | 1,000,000 | 1,015,596 | ||
Danske Bank A/S 1.355% 4/14/14 (c)(d) | 500,000 | 502,946 | ||
Fifth Third Bancorp 6.25% 5/1/13 | 1,000,000 | 1,013,568 | ||
Fifth Third Bank 0.421% 5/17/13 (d) | 3,000,000 | 2,996,739 | ||
ING Bank NV 1.623% 10/18/13 (c)(d) | 500,000 | 503,808 | ||
KeyBank NA 5.8% 7/1/14 | 1,000,000 | 1,069,620 | ||
KeyCorp. 6.5% 5/14/13 | 2,000,000 | 2,032,514 | ||
National Australia Bank Ltd. 0.602% 1/22/15 (c)(d) | 1,500,000 | 1,499,421 | ||
PNC Bank NA 0.611% 1/28/16 (d) | 2,000,000 | 2,004,146 | ||
PNC Funding Corp. 0.5005% 1/31/14 (d) | 2,000,000 | 2,002,586 | ||
Rabobank (Netherlands) NV 0.655% 4/14/14 (d) | 3,250,000 | 3,252,278 | ||
Royal Bank of Canada: | ||||
0.603% 4/17/14 (d) | 2,500,000 | 2,509,243 | ||
1.0015% 10/30/14 (d) | 1,000,000 | 1,009,159 | ||
Societe Generale 2.2% 9/14/13 (c) | 1,122,000 | 1,128,487 | ||
Sumitomo Mitsui Banking Corp. 1.252% 7/22/14 (c)(d) | 3,801,000 | 3,832,697 | ||
SunTrust Banks, Inc. 0.608% 4/1/15 (d) | 2,509,000 | 2,453,275 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Commercial Banks - continued | ||||
The Toronto Dominion Bank: | ||||
0.605% 7/14/14 (d) | $ 2,000,000 | $ 2,006,924 | ||
0.7628% 11/1/13 (d) | 500,000 | 501,300 | ||
U.S. Bank NA 0.585% 10/14/14 (d) | 1,510,000 | 1,512,197 | ||
Union Bank NA 1.2605% 6/6/14 (d) | 2,000,000 | 2,015,872 | ||
Wachovia Bank NA 0.6928% 11/3/14 (d) | 3,500,000 | 3,489,707 | ||
Wells Fargo Bank NA 2.3588% 5/16/16 (d) | 3,000,000 | 2,947,977 | ||
Westpac Banking Corp.: | ||||
1.041% 3/31/14 (c)(d) | 1,000,000 | 1,006,673 | ||
1.07% 9/25/15 (d) | 2,000,000 | 2,012,194 | ||
| 63,847,332 | |||
Consumer Finance - 8.2% | ||||
American Express Credit Corp.: | ||||
0.76% 11/13/15 (d) | 3,363,000 | 3,367,621 | ||
1.16% 6/24/14 (d) | 382,000 | 385,615 | ||
1.4105% 6/12/15 (d) | 1,000,000 | 1,018,614 | ||
American Honda Finance Corp. 0.7618% 5/8/14 (c)(d) | 2,000,000 | 2,009,314 | ||
Capital One Financial Corp.: | ||||
0.9528% 11/6/15 (d) | 1,500,000 | 1,503,261 | ||
1.454% 7/15/14 (d) | 5,040,000 | 5,090,869 | ||
Caterpillar Financial Services Corp. 0.66% 2/9/15 (d) | 2,000,000 | 2,008,054 | ||
General Electric Capital Corp.: | ||||
0.905% 1/8/16 (d) | 2,000,000 | 2,005,818 | ||
1.002% 4/24/14 (d) | 2,090,000 | 2,106,576 | ||
1.155% 1/7/14 (d) | 5,000,000 | 5,040,530 | ||
HSBC Finance Corp. 0.554% 1/15/14 (d) | 800,000 | 799,407 | ||
Toyota Motor Credit Corp. 0.4815% 11/21/14 (d) | 2,000,000 | 1,999,296 | ||
| 27,334,975 | |||
Diversified Financial Services - 5.9% | ||||
Bank of America Corp. 1.855% 7/11/14 (d) | 2,000,000 | 2,028,858 | ||
BP Capital Markets PLC 0.9095% 3/11/14 (d) | 2,000,000 | 2,011,750 | ||
Citigroup, Inc.: | ||||
0.5928% 11/5/14 (d) | 2,000,000 | 1,985,446 | ||
1.755% 1/13/14 (d) | 3,341,000 | 3,375,382 | ||
2.31% 8/13/13 (d) | 1,500,000 | 1,513,514 | ||
MassMutual Global Funding II: | ||||
0.4705% 12/6/13 (c)(d) | 841,000 | 841,994 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Diversified Financial Services - continued | ||||
MassMutual Global Funding II: - continued | ||||
0.685% 1/14/14 (c)(d) | $ 2,942,000 | $ 2,949,084 | ||
MetLife Institutional Funding II 0.675% 1/6/15 (c)(d) | 5,000,000 | 5,005,825 | ||
| 19,711,853 | |||
Insurance - 1.9% | ||||
Monumental Global Funding III 0.504% 1/15/14 (c)(d) | 2,000,000 | 1,999,198 | ||
New York Life Global Funding 0.565% 4/4/14 (c)(d) | 1,400,000 | 1,405,054 | ||
Principal Life Global Funding II 0.93% 7/9/14 (c)(d) | 1,500,000 | 1,499,909 | ||
Principal Life Income Funding Trusts 0.4918% 11/8/13 (d) | 1,425,000 | 1,425,865 | ||
| 6,330,026 | |||
TOTAL FINANCIALS | 146,758,071 | |||
HEALTH CARE - 1.6% | ||||
Pharmaceuticals - 1.6% | ||||
AbbVie, Inc. 1.0718% 11/6/15 (c)(d) | 3,000,000 | 3,045,906 | ||
Teva Pharmaceutical Finance Co. BV 1.2118% 11/8/13 (d) | 1,250,000 | 1,257,214 | ||
Teva Pharmaceutical Finance III BV 0.81% 3/21/14 (d) | 1,000,000 | 1,004,851 | ||
| 5,307,971 | |||
INFORMATION TECHNOLOGY - 1.2% | ||||
Computers & Peripherals - 0.6% | ||||
Hewlett-Packard Co. 0.5915% 5/24/13 (d) | 2,000,000 | 1,996,194 | ||
Office Electronics - 0.6% | ||||
Xerox Corp. 1.13% 5/16/14 (d) | 2,195,000 | 2,190,794 | ||
TOTAL INFORMATION TECHNOLOGY | 4,186,988 | |||
TELECOMMUNICATION SERVICES - 1.9% | ||||
Diversified Telecommunication Services - 1.9% | ||||
British Telecommunications PLC 1.434% 12/20/13 (d) | 2,445,000 | 2,465,296 | ||
Qwest Corp. 3.558% 6/15/13 (d) | 1,000,000 | 1,006,109 | ||
Verizon Communications, Inc. 0.92% 3/28/14 (d) | 3,000,000 | 3,020,310 | ||
| 6,491,715 | |||
UTILITIES - 3.2% | ||||
Electric Utilities - 1.6% | ||||
Appalachian Power Co. 0.685% 8/16/13 (d) | 1,937,000 | 1,939,588 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
UTILITIES - continued | ||||
Electric Utilities - continued | ||||
Cleveland Electric Illuminating Co. 5.65% 12/15/13 | $ 1,400,000 | $ 1,457,728 | ||
Duke Energy Corp. 3.95% 9/15/14 | 431,000 | 452,986 | ||
NextEra Energy Capital Holdings, Inc. 1.611% 6/1/14 | 527,000 | 532,552 | ||
Northeast Utilities 1.059% 9/20/13 (d) | 810,000 | 813,521 | ||
| 5,196,375 | |||
Multi-Utilities - 1.6% | ||||
Dominion Resources, Inc. 5% 3/15/13 | 1,000,000 | 1,005,229 | ||
DTE Energy Co. 1.0105% 6/3/13 (d) | 1,183,000 | 1,184,664 | ||
Sempra Energy 1.068% 3/15/14 (d) | 3,157,000 | 3,172,018 | ||
| 5,361,911 | |||
TOTAL UTILITIES | 10,558,286 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $190,879,486) |
| |||
U.S. Government Agency - Mortgage Securities - 1.6% | ||||
| ||||
Fannie Mae - 1.6% | ||||
2.374% 6/1/35 (d) | 886,558 | 947,134 | ||
2.38% 7/1/35 (d) | 686,853 | 730,477 | ||
2.429% 12/1/34 (d) | 463,672 | 494,806 | ||
2.492% 11/1/34 (d) | 467,597 | 499,593 | ||
2.619% 2/1/34 (d) | 265,332 | 278,177 | ||
2.644% 6/1/35 (d) | 387,500 | 413,836 | ||
2.674% 11/1/34 (d) | 414,595 | 442,206 | ||
2.691% 10/1/35 (d) | 927,854 | 987,761 | ||
2.792% 7/1/34 (d) | 407,521 | 437,195 | ||
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $5,009,669) |
| |||
Asset-Backed Securities - 20.6% | ||||
| ||||
Ally Auto Receivables Trust: | ||||
Series 2012-1 Class A2, 0.71% 9/15/14 | 486,172 | 486,818 | ||
Series 2012-2 Class A2, 0.56% 10/15/14 | 248,455 | 248,637 | ||
Series 2012-3 Class A2, 0.7% 1/15/15 | 946,114 | 947,607 | ||
Series 2012-SN1: | ||||
Class A2, 0.51% 12/22/14 | 1,000,000 | 1,000,149 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Ally Auto Receivables Trust: - continued | ||||
Series 2012-SN1: | ||||
Class A3, 0.57% 8/20/15 | $ 400,000 | $ 400,006 | ||
Ally Master Owner Trust: | ||||
Series 2011-1 Class A1, 1.0757% 1/15/16 (d) | 3,290,000 | 3,309,727 | ||
Series 2011-3 Class A2, 1.81% 5/15/16 | 220,000 | 223,255 | ||
Series 2011-5 Class A1, 0.8557% 6/15/15 (d) | 510,000 | 510,581 | ||
Series 2012-2 Class A, 0.7057% 3/15/16 (d) | 1,000,000 | 1,000,391 | ||
Series 2012-3 Class A2, 1.21% 6/15/17 | 1,000,000 | 1,003,056 | ||
AmeriCredit Auto Receivables Trust: | ||||
Series 2010-4 Class A3, 1.27% 4/8/15 | 591,909 | 592,841 | ||
Series 2011-2 Class A2, 0.9% 9/8/14 | 7,027 | 7,027 | ||
Series 2011-4 Class A/S, 0.92% 3/9/15 | 177,500 | 177,677 | ||
Series 2011-5 Class A2, 1.19% 8/8/15 | 58,193 | 58,341 | ||
Series 2012-1 Class A2, 0.91% 10/8/15 | 685,687 | 687,323 | ||
Series 2012-2 Class A2, 0.76% 10/8/15 | 2,117,563 | 2,121,038 | ||
Series 2012-5 Class A2, 0.51% 1/8/16 | 1,000,000 | 999,911 | ||
Avis Budget Rental Car Funding (AESOP) LLC Series 2009-2A Class A, 5.68% 2/20/14 (c) | 30,000 | 30,080 | ||
BMW Floorplan Master Owner Trust Series 2012-1A Class A, 0.609% 9/15/17 (c)(d) | 2,260,000 | 2,256,878 | ||
BMW Vehicle Lease Trust Series 2012-1 Class A2, 0.59% 6/20/14 | 642,366 | 642,845 | ||
Capital Auto Receivables Asset Trust: | ||||
Series 2008-2 Class B, 6.46% 12/15/14 (c) | 808,286 | 814,251 | ||
Series 2008-A Class B, 6.89% 1/15/15 (c) | 179,148 | 180,191 | ||
Carmax Auto Owner Trust Series 2012-3 Class A2, 0.43% 9/15/15 | 2,000,000 | 1,999,892 | ||
Chase Issuance Trust: | ||||
Series 2012-A Class A1, 0.3057% 5/16/16 (d) | 2,000,000 | 2,001,055 | ||
Series 2012-A6 Class A, 0.3357% 8/15/17 (d) | 2,000,000 | 2,001,784 | ||
CIT Equipment Collateral Series 2012-VT1: | ||||
Class A2, 0.85% 5/20/14 (c) | 2,750,000 | 2,753,702 | ||
Class A3, 1.1% 8/22/16 (c) | 482,003 | 483,185 | ||
CNH Equipment Trust Series 2012-D Class A2, 0.51% 4/15/16 | 1,000,000 | 999,993 | ||
Discover Card Master Trust: | ||||
Series 2012-A2 Class A2, 0.3557% 10/17/16 (d) | 1,000,000 | 1,000,842 | ||
Series 2012-A5 Class A5, 0.4057% 1/16/18 (d) | 5,000,000 | 5,006,153 | ||
Fannie Mae Series 2004-T5: | ||||
Class AB1, 0.7075% 5/28/35 (d) | 80,751 | 66,024 | ||
Class AB3, 1.0037% 5/28/35 (d) | 32,052 | 24,960 | ||
Ford Credit Auto Lease Trust: | ||||
Series 2011-A Class A2, 0.74% 9/15/13 | 45,496 | 45,503 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Ford Credit Auto Lease Trust: - continued | ||||
Series 2012-A Class A2, 0.63% 4/15/14 | $ 1,576,324 | $ 1,577,736 | ||
Series 2012-B Class A2, 0.54% 11/15/14 | 150,000 | 150,087 | ||
Ford Credit Auto Owner Trust Series 2012-B Class A2, 0.57% 1/15/15 | 632,622 | 632,877 | ||
Ford Credit Auto Owner Trust 2012-D Series 2012-D Class A2, 0.4% 9/15/15 | 1,000,000 | 999,771 | ||
Ford Credit Floorplan Master Owner Trust: | ||||
Series 2010-5 Class A1, 1.5% 9/15/15 | 240,000 | 241,559 | ||
Series 2012-1 Class A, 0.679% 1/15/16 (d) | 5,000,000 | 5,015,480 | ||
Series 2012-4 Class A1, 0.74% 9/15/16 | 745,000 | 744,985 | ||
Fremont Home Loan Trust Series 2005-A Class M4, 1.2237% 1/25/35 (d) | 125,000 | 15,346 | ||
GE Capital Credit Card Master Note Trust: | ||||
Series 2012-1 Class A, 1.03% 1/15/18 | 857,000 | 865,407 | ||
Series 2012-4 Class A, 0.5057% 6/15/18 (d) | 5,000,000 | 5,010,220 | ||
GE Equipment Small Ticket LLC Series 2012-1A Class A2, 0.85% 11/21/14 (c) | 430,000 | 430,731 | ||
GE Equipment Transportation LLC: | ||||
Series 2012-1 Class A2, 0.74% 9/22/14 | 250,664 | 251,011 | ||
Series 2012-2 Class A2, 0.47% 4/24/15 | 510,000 | 509,819 | ||
Home Equity Asset Trust Series 2003-5 Class A2, 0.9037% 12/25/33 (d) | 10,566 | 8,913 | ||
Honda Auto Receivables Owner Trust Series 2011-3 Class A2, 0.67% 4/21/14 | 106,936 | 107,027 | ||
Hyundai Auto Receivables Trust Series 2012-B Class A2, 0.54% 1/15/15 | 1,500,000 | 1,501,319 | ||
John Deere Owner Trust: | ||||
Series 2012-A Class A2, 0.59% 6/16/14 | 341,108 | 341,282 | ||
Series 2012-B Class A2, 0.43% 2/17/15 | 2,000,000 | 2,000,775 | ||
Mercedes Benz Master Owner Trust Series 2012-BA Class A, 0.482% 11/15/16 (c)(d) | 2,370,000 | 2,370,234 | ||
Merrill Lynch Mortgage Investors Trust Series 2004-HE2 Class A1B, 0.6737% 8/25/35 (d) | 20,366 | 19,031 | ||
Morgan Stanley ABS Capital I Trust Series 2004-HE6 Class A2, 0.5437% 8/25/34 (d) | 65,756 | 57,428 | ||
Nissan Master Owner Trust Receivables Series 2012-A Class A, 0.679% 5/15/17 (d) | 2,250,000 | 2,255,494 | ||
Ocala Funding LLC Series 2006-1A Class A, 1.6047% 3/20/11 (b)(c)(d) | 965,000 | 0 | ||
Park Place Securities, Inc. Series 2004-WCW1 Class M4, 1.6537% 9/25/34 (d) | 435,000 | 127,282 | ||
Porsche Innovative Lease Owner Trust Series 2012-1 Class A2, 0.44% 2/23/15 (c) | 1,000,000 | 999,971 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0037% 4/25/33 (d) | $ 1,451 | $ 1,348 | ||
Santander Drive Auto Receivables Trust: | ||||
Series 2011-3 Class A2, 1.11% 8/15/14 | 60,376 | 60,447 | ||
Series 2011-4 Class A2, 1.37% 3/16/15 | 110,873 | 111,180 | ||
Series 2012-1 Class A2, 1.25% 4/15/15 | 445,974 | 447,396 | ||
Series 2012-2 Class A2, 0.91% 5/15/15 | 359,257 | 360,128 | ||
Series 2012-3 Class A2, 0.83% 4/15/15 | 815,197 | 816,784 | ||
Series 2013-1 Class A2, 0.48% 2/16/16 | 790,000 | 789,751 | ||
SLM Student Loan Trust: | ||||
Series 2012-6 Class A1, 0.3637% 2/27/17 (d) | 1,702,719 | 1,703,750 | ||
Series 2012-7 Class A2, 0.489% 9/25/19 (d) | 1,000,000 | 999,999 | ||
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.0637% 9/25/34 (d) | 21,802 | 19,835 | ||
Volkswagen Auto Lease Trust: | ||||
Series 2010-A Class A4, 1.18% 10/20/15 | 120,000 | 120,053 | ||
Series 2011-A Class A2, 1% 2/20/14 | 48,242 | 48,277 | ||
Volkswagen Auto Loan Enhanced Trust Series 2011-1 Class A3, 1.22% 6/22/15 | 117,887 | 118,437 | ||
World Omni Auto Lease Securitization Trust Series 2012-A Class A2, 0.71% 1/15/15 | 1,500,000 | 1,501,824 | ||
World Omni Auto Receivables Trust Series 2012-A Class A2, 0.52% 6/15/15 | 1,360,000 | 1,360,805 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $70,151,615) |
| |||
Collateralized Mortgage Obligations - 15.3% | ||||
| ||||
Private Sponsor - 1.1% | ||||
Arkle Master Issuer PLC floater Series 2010-1A Class 2A, 1.461% 5/17/60 (c)(d) | 1,740,000 | 1,740,710 | ||
Arran Residential Mortgages Funding PLC floater Series 2011-1A Class A1C, 1.511% 11/19/47 (c)(d) | 141,549 | 141,790 | ||
Granite Master Issuer PLC floater Series 2006-1A Class A5, 0.3447% 12/20/54 (c)(d) | 285,356 | 281,076 | ||
Granite Mortgages Series 2003-2 Class 1A3, 0.802% 7/20/43 (d) | 299,883 | 297,738 | ||
Granite Mortgages PLC floater: | ||||
Series 2003-3 Class 1A3, 0.702% 1/20/44 (d) | 42,441 | 42,152 | ||
Series 2004-1 Class 2A1, 0.629% 3/20/44 (d) | 674,480 | 669,657 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount | Value | ||
Private Sponsor - continued | ||||
Granite Mortgages PLC floater: - continued | ||||
Series 2004-3 Class 2A1, 0.589% 9/20/44 (d) | $ 284,018 | $ 281,987 | ||
GSR Mortgage Loan Trust floater Series 2004-11 Class 2A1, 0.5337% 12/25/34 (d) | 186,118 | 175,086 | ||
TOTAL PRIVATE SPONSOR | 3,630,196 | |||
U.S. Government Agency - 14.2% | ||||
Fannie Mae: | ||||
floater: | ||||
Series 2003-31 Class FM, 0.7037% 4/25/33 (d) | 1,600,221 | 1,611,127 | ||
Series 2006-33 Class CF, 0.5037% 5/25/36 (d) | 171,816 | 171,697 | ||
Series 2008-76 Class EF, 0.7037% 9/25/23 (d) | 44,025 | 44,166 | ||
Series 2010-86 Class FE, 0.6537% 8/25/25 (d) | 284,306 | 285,798 | ||
floater planned amortization class: | ||||
Series 2004-52 Class PF 0.6537% 12/25/33 (d) | 3,281,575 | 3,295,565 | ||
Series 2005-90 Class FC, 0.4537% 10/25/35 (d) | 173,955 | 173,946 | ||
pass-thru certificates Series 2012-127 Class DH, 4% 11/25/27 | 496,092 | 532,218 | ||
sequential payer: | ||||
Series 2005-47 Class HA, 4.5% 7/25/19 | 408,804 | 415,134 | ||
Series 2009-69 Class EA, 5% 10/25/36 | 1,754,551 | 1,793,065 | ||
Series 2011-16 Class FB, 0.3537% 3/25/31 (d) | 1,925,535 | 1,923,218 | ||
sequential payer floater: | ||||
Series 2005-74 Class DF, 0.5537% 7/25/35 (d) | 4,456,648 | 4,460,671 | ||
Series 2005-83 Class FP, 0.5337% 10/25/35 (d) | 6,133,614 | 6,132,775 | ||
Series 2011-23 Class AB, 2.75% 6/25/20 | 144,882 | 149,747 | ||
Freddie Mac: | ||||
floater: | ||||
Series 2711 Class FC, 1.1057% 2/15/33 (d) | 435,527 | 442,273 | ||
Series 3346 Class FA, 0.4357% 2/15/19 (d) | 3,741,896 | 3,747,285 | ||
Series 3879 Class AF, 0.6357% 6/15/41 (d) | 632,491 | 634,021 | ||
floater planned amortization: | ||||
Series 3102 Class FD, 0.5057% 1/15/36 (d) | 496,762 | 497,685 | ||
Series 4020 Class EF 0.6557% 2/15/42 (d) | 3,562,919 | 3,563,331 | ||
Series 4057 Class EF, 0.5557% 12/15/41 (d) | 2,845,009 | 2,855,014 | ||
floater planned amortization class: | ||||
Series 2953 Class LF, 0.5057% 12/15/34 (d) | 2,379,098 | 2,380,536 | ||
Series 3117 Class JF, 0.5057% 2/15/36 (d) | 195,277 | 195,511 | ||
floater sequential payer: | ||||
Series 2828 Class TF, 0.6557% 10/15/30 (d) | 944,146 | 947,712 | ||
Series 3046 Class F, 0.5757% 3/15/33 (d) | 2,392,976 | 2,387,957 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount | Value | ||
U.S. Government Agency - continued | ||||
Freddie Mac: - continued | ||||
floater sequential payer: | ||||
Series 3387 Class DF, 0.3857% 10/15/17 (d) | $ 232,847 | $ 232,834 | ||
planned amortization Series 2836 Class PX, 4% 5/15/18 | 986,681 | 1,005,560 | ||
planned amortization class: | ||||
Series 3081 Class CP 5.5% 10/15/34 | 724,373 | 753,479 | ||
Series 3792 Class DF, 0.6057% 11/15/40 (d) | 782,516 | 784,835 | ||
sequential payer: | ||||
Series 2582 Class CG, 4% 11/15/17 | 289,910 | 293,505 | ||
Series 2924 Class DA, 4.5% 2/15/19 | 326,985 | 331,599 | ||
Series 3560 Class LA, 2% 8/15/14 | 153,463 | 153,498 | ||
Series 3573 Class LC, 1.85% 8/15/14 | 423,588 | 425,645 | ||
Series 3659 Class EJ 3% 6/15/18 | 626,717 | 646,909 | ||
Series 3696 Class AE, 1.2% 7/15/15 | 272,845 | 274,468 | ||
Ginnie Mae guaranteed REMIC pass-thru certificates: | ||||
floater: | ||||
Series 2009-108 Class CF, 0.8057% 11/16/39 (d) | 245,675 | 247,768 | ||
Series 2009-116 Class KF, 0.7357% 12/16/39 (d) | 212,886 | 214,297 | ||
Series 2009-127 Class FA, 0.7547% 9/20/38 (d) | 271,630 | 273,624 | ||
Series 2010-9 Class FA, 0.7257% 1/16/40 (d) | 314,620 | 316,672 | ||
floater planned amortization Series 2004-80 Class FM, 0.5047% 7/20/34 (d) | 1,751,810 | 1,752,640 | ||
floater sequential payer Series 2010-120 Class FB 0.5047% 9/20/35 (d) | 322,768 | 323,033 | ||
planned amortization class: | ||||
Series 2010-112 Class PM, 3.25% 9/20/33 | 134,199 | 137,573 | ||
Series 2010-99 Class PT, 3.5% 8/20/33 | 167,539 | 172,420 | ||
Series 2012-149 Class LF, 0.4547% 12/20/42 (d) | 428,468 | 428,268 | ||
TOTAL U.S. GOVERNMENT AGENCY | 47,409,079 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $51,151,890) |
| |||
Commercial Mortgage Securities - 1.6% | ||||
| ||||
Banc of America REMIC Trust Series 2012-CLRN Class A1, 1.3557% 8/15/17 (c)(d) | 560,000 | 565,534 | ||
COMM pass-thru certificates floater Series 2006-CN2A Class A2FL, 0.4277% 2/5/19 (c)(d) | 584,594 | 573,036 | ||
Credit Suisse First Boston Mortgage Securities Corp. Series 2003-C4 Class A4, 5.137% 8/15/36 | 190,367 | 191,917 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Extended Stay America Trust floater Series 2013-ESFL: | ||||
Class A1FL, 1.108% 12/5/31 (c)(d) | $ 270,000 | $ 270,001 | ||
Class A2FL, 1.108% 12/5/31 (c)(d) | 350,000 | 350,002 | ||
GMAC Commercial Mortgage Securities, Inc. sequential payer Series 2003-C2 Class A2, 5.444% 5/10/40 (d) | 119,629 | 121,057 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP: | ||||
Class A1, 1.1031% 3/6/20 (c)(d) | 301,076 | 301,446 | ||
Class A2, 1.2601% 3/6/20 (c)(d) | 250,000 | 250,437 | ||
Class C, 2.0056% 3/6/20 (c)(d) | 300,000 | 301,192 | ||
sequential payer Series 2005-GG4 Class A3, 4.607% 7/10/39 | 5,154 | 5,180 | ||
GS Mortgage Securities Trust: | ||||
sequential payer Series 2006-GG8 Class A2, 5.479% 11/10/39 | 101,600 | 103,103 | ||
Series 2011-GC5 Class A1, 1.468% 8/10/44 (d) | 171,338 | 173,373 | ||
Series 2012-GC6 Class A1, 1.282% 1/10/45 | 82,599 | 83,306 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
floater Series 2011-CCHP Class A, 2.6% 7/15/28 (c)(d) | 211,756 | 211,886 | ||
Series 2003-CB7 Class A4, 4.879% 1/12/38 (d) | 97,917 | 100,220 | ||
Series 2012-C6 Class A1, 1.0305% 5/15/45 | 252,896 | 254,562 | ||
JPMorgan Chase Commercial Mortgage Securities Trust sequential payer: | ||||
Series 2005-LDP5 Class A2, 5.198% 12/15/44 | 120,885 | 121,826 | ||
Series 2007-LD11 Class A2, 5.7967% 6/15/49 (d) | 129,197 | 133,381 | ||
LB-UBS Commercial Mortgage Trust sequential payer Series 2003-C3 Class A4, 4.166% 5/15/32 | 37,199 | 37,296 | ||
Morgan Stanley Capital I Trust: | ||||
floater: | ||||
Series 2006-XLF Class C, 1.409% 7/15/19 (c)(d) | 247,826 | 99,130 | ||
Series 2007-XLFA: | ||||
Class A2, 0.306% 10/15/20 (c)(d) | 214,098 | 211,978 | ||
Class B, 0.336% 10/15/20 (c)(d) | 440,000 | 422,281 | ||
sequential payer Series 2003-IQ4 Class A2, 4.07% 5/15/40 | 21,916 | 21,947 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Morgan Stanley Dean Witter Capital I Trust sequential payer Series 2003-T11 Class A4, 5.15% 6/13/41 | $ 85,756 | $ 86,618 | ||
Wachovia Bank Commercial Mortgage Trust floater Series 2006-WL7A Class A2, 0.329% 9/15/21 (c)(d) | 249,045 | 244,555 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $5,680,819) |
| |||
Municipal Securities - 1.0% | ||||
| ||||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series 2010 A, 0.6%, tender 2/1/13 (d)(e) | 2,000,000 | 2,000,000 | ||
Illinois Gen. Oblig. Series 2010, 4.421% 1/1/15 | 1,375,000 | 1,450,158 | ||
TOTAL MUNICIPAL SECURITIES (Cost $3,454,202) |
| |||
Certificates of Deposit - 1.2% | ||||
| ||||
Bank of Nova Scotia yankee: | ||||
0.723% 10/18/13 (d) | 2,000,000 | 2,006,778 | ||
0.81% 2/10/14 (d) | 1,000,000 | 1,004,786 | ||
Nordea Bank Finland PLC yankee 0.7918% 2/7/13 (d) | 1,000,000 | 1,000,043 | ||
TOTAL CERTIFICATES OF DEPOSIT (Cost $3,998,812) | 4,011,607 | |||
Commercial Paper - 0.9% | ||||
| ||||
British Telecommunications PLC 1.5% 5/14/13 | 1,000,000 | 998,278 | ||
Vodafone Group PLC yankee: | ||||
0.77% 12/30/13 | 1,000,000 | 993,127 | ||
1.25% 3/12/13 | 1,000,000 | 999,663 | ||
TOTAL COMMERCIAL PAPER (Cost $2,987,295) | 2,991,068 | |||
Money Market Funds - 0.8% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.16% (a) | 2,580,205 | $ 2,580,205 | |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $335,893,993) | 334,991,131 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (1,211,502) | ||
NET ASSETS - 100% | $ 333,779,629 | ||
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(b) Non-income producing - Security is in default. |
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $60,343,823 or 18.1% of net assets. |
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 5,074 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, involving the Fund's assets and liabilities carried at fair value. 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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Corporate Bonds | $ 191,676,847 | $ - | $ 191,676,847 | $ - |
U.S. Government Agency - Mortgage Securities | 5,231,185 | - | 5,231,185 | - |
Asset-Backed Securities | 68,775,522 | - | 68,775,522 | - |
Collateralized Mortgage Obligations | 51,039,275 | - | 51,039,275 | - |
Commercial Mortgage Securities | 5,235,264 | - | 5,136,134 | 99,130 |
Municipal Securities | 3,450,158 | - | 3,450,158 | - |
Certificates of Deposit | 4,011,607 | - | 4,011,607 | - |
Commercial Paper | 2,991,068 | - | 2,991,068 | - |
Money Market Funds | 2,580,205 | 2,580,205 | - | - |
Total Investments in Securities: | $ 334,991,131 | $ 2,580,205 | $ 332,311,796 | $ 99,130 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 82.3% |
United Kingdom | 5.2% |
Canada | 3.7% |
Netherlands | 2.8% |
Australia | 2.7% |
Japan | 1.2% |
Others (Individually Less Than 1%) | 2.1% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $333,313,788) | $ 332,410,926 |
|
Fidelity Central Funds (cost $2,580,205) | 2,580,205 |
|
Total Investments (cost $335,893,993) |
| $ 334,991,131 |
Receivable for fund shares sold | 391,556 | |
Interest receivable | 362,884 | |
Distributions receivable from Fidelity Central Funds | 786 | |
Receivable from investment adviser for expense reductions | 116 | |
Other receivables | 198 | |
Total assets | 335,746,671 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,079,895 | |
Payable for fund shares redeemed | 756,324 | |
Distributions payable | 1,614 | |
Accrued management fee | 87,496 | |
Distribution and service plan fees payable | 2,336 | |
Other affiliated payables | 39,377 | |
Total liabilities | 1,967,042 | |
|
|
|
Net Assets | $ 333,779,629 | |
Net Assets consist of: |
| |
Paid in capital | $ 461,341,708 | |
Undistributed net investment income | 163,625 | |
Accumulated undistributed net realized gain (loss) on investments | (126,822,842) | |
Net unrealized appreciation (depreciation) on investments | (902,862) | |
Net Assets | $ 333,779,629 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.24 | |
|
|
|
Maximum offering price per share (100/98.50 of $8.24) | $ 8.37 | |
Class T: | $ 8.24 | |
|
|
|
Maximum offering price per share (100/98.50 of $8.24) | $ 8.37 | |
Ultra-Short Bond: | $ 8.24 | |
|
|
|
Institutional Class: | $ 8.24 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Interest |
| $ 1,550,076 |
Income from Fidelity Central Funds |
| 5,074 |
Total income |
| 1,555,150 |
|
|
|
Expenses | ||
Management fee | $ 516,152 | |
Transfer agent fees | 173,425 | |
Distribution and service plan fees | 14,023 | |
Fund wide operations fee | 57,364 | |
Independent trustees' compensation | 612 | |
Miscellaneous | 400 | |
Total expenses before reductions | 761,976 | |
Expense reductions | (774) | 761,202 |
Net investment income (loss) | 793,948 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 310,318 | |
Futures contracts | 17,414 | |
Total net realized gain (loss) |
| 327,732 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 691,390 | |
Futures contracts | (17,098) | |
Total change in net unrealized appreciation (depreciation) |
| 674,292 |
Net gain (loss) | 1,002,024 | |
Net increase (decrease) in net assets resulting from operations | $ 1,795,972 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 793,948 | $ 1,324,555 |
Net realized gain (loss) | 327,732 | (161,606) |
Change in net unrealized appreciation (depreciation) | 674,292 | 577,855 |
Net increase (decrease) in net assets resulting | 1,795,972 | 1,740,804 |
Distributions to shareholders from net investment income | (666,534) | (1,226,234) |
Share transactions - net increase (decrease) | 6,942,814 | 65,951,070 |
Redemption fees | 5,491 | 17,158 |
Total increase (decrease) in net assets | 8,077,743 | 66,482,798 |
|
|
|
Net Assets | ||
Beginning of period | 325,701,886 | 259,219,088 |
End of period (including undistributed net investment income of $163,625 and undistributed net investment income of $36,211, respectively) | $ 333,779,629 | $ 325,701,886 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .012 | .023 | .013 | .047 | .091 | .384 |
Net realized and unrealized gain (loss) | .027 | .007 | .051 | .040 | (.167) | (1.612) |
Total from investment operations | .039 | .030 | .064 | .087 | (.076) | (1.228) |
Distributions from net investment income | (.009) | (.020) | (.015) | (.047) | (.071) | (.294) |
Tax return of capital | - | - | - | - | (.003) | (.039) |
Total distributions | (.009) | (.020) | (.015) | (.047) | (.074) | (.333) |
Redemption fees added to paid in capital E | - I | - I | .001 | - I | - I | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C, D | .47% | .36% | .80% | 1.08% | (.92)% | (12.71)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .65% A | .66% | .63% | .64% | .68% | .67% |
Expenses net of fee waivers, if any | .65% A | .66% | .63% | .64% | .68% | .67% |
Expenses net of all reductions | .65% A | .66% | .63% | .64% | .67% | .66% |
Net investment income (loss) | .29% A | .28% | .16% | .58% | 1.13% | 4.26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14,148 | $ 15,635 | $ 12,242 | $ 18,129 | $ 8,033 | $ 6,268 |
Portfolio turnover rate G | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .010 | .019 | .009 | .044 | .090 | .377 |
Net realized and unrealized gain (loss) | .027 | .007 | .052 | .040 | (.168) | (1.607) |
Total from investment operations | .037 | .026 | .061 | .084 | (.078) | (1.230) |
Distributions from net investment income | (.007) | (.016) | (.012) | (.044) | (.069) | (.292) |
Tax return of capital | - | - | - | - | (.003) | (.039) |
Total distributions | (.007) | (.016) | (.012) | (.044) | (.072) | (.331) |
Redemption fees added to paid in capital E | - I | - I | .001 | - I | - I | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C, D | .45% | .32% | .76% | 1.03% | (.94)% | (12.72)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .74% A | .72% | .68% | .68% | .69% | .69% |
Expenses net of fee waivers, if any | .70% A | .70% | .68% | .68% | .69% | .69% |
Expenses net of all reductions | .70% A | .70% | .68% | .68% | .69% | .69% |
Net investment income (loss) | .24% A | .23% | .12% | .54% | 1.11% | 4.23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,146 | $ 3,312 | $ 4,811 | $ 5,334 | $ 3,114 | $ 2,910 |
Portfolio turnover rate G | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Ultra-Short Bond
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .020 | .040 | .028 | .063 | .111 | .404 |
Net realized and unrealized gain (loss) | .027 | .006 | .051 | .040 | (.169) | (1.603) |
Total from investment operations | .047 | .046 | .079 | .103 | (.058) | (1.199) |
Distributions from net investment income | (.017) | (.036) | (.030) | (.063) | (.088) | (.310) |
Tax return of capital | - | - | - | - | (.004) | (.042) |
Total distributions | (.017) | (.036) | (.030) | (.063) | (.092) | (.352) |
Redemption fees added to paid in capital D | - H | - H | .001 | - H | - H | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C | .58% | .57% | .99% | 1.27% | (.70)% | (12.42)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of fee waivers, if any | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .45% A | .45% | .45% | .45% | .44% | .45% |
Net investment income (loss) | .49% A | .48% | .34% | .77% | 1.36% | 4.47% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 308,056 | $ 291,005 | $ 239,921 | $ 239,266 | $ 217,282 | $ 315,401 |
Portfolio turnover rate F | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .018 | .037 | .025 | .057 | .102 | .416 |
Net realized and unrealized gain (loss) | .027 | .009 | .051 | .040 | (.168) | (1.619) |
Total from investment operations | .045 | .046 | .076 | .097 | (.066) | (1.203) |
Distributions from net investment income | (.015) | (.036) | (.027) | (.057) | (.081) | (.306) |
Tax return of capital | - | - | - | - | (.003) | (.042) |
Total distributions | (.015) | (.036) | (.027) | (.057) | (.084) | (.348) |
Redemption fees added to paid in capital D | - H | - H | .001 | - H | - H | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C | .55% | .56% | .95% | 1.20% | (.80)% | (12.46)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .50% A | .48% | .49% | .52% | .58% | .48% |
Expenses net of fee waivers, if any | .50% A | .48% | .49% | .52% | .55% | .48% |
Expenses net of all reductions | .50% A | .48% | .49% | .52% | .54% | .48% |
Net investment income (loss) | .44% A | .45% | .31% | .70% | 1.26% | 4.44% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8,430 | $ 15,750 | $ 2,245 | $ 1,206 | $ 623 | $ 594 |
Portfolio turnover rate F | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (Unaudited)
1. Organization.
Fidelity® Ultra-Short Bond Fund (the Fund) is a fund of Fidelity Income Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. The Fund offers Class A, Class T, Ultra-Short Bond and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. 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 following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The 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 the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, municipal securities, commercial paper and certificates of deposit, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities, and U.S. government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds , including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2013 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and may include proceeds received from litigation. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, premium on debt securities, market discount, capital loss carryforwards, certain losses related to deflation adjustments on U.S. Treasury inflation-indexed securities and losses deferred due to excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,372,207 |
Gross unrealized depreciation | (2,105,007) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (732,800) |
|
|
Tax cost | $ 335,723,931 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is 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. At July 31, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2014 | $ (1,917,431) |
2015 | (518,690) |
2016 | (12,186,304) |
2017 | (97,397,499) |
2018 | (9,829,719) |
2019 | (3,765,717) |
Total with expiration | (125,615,360) |
No expiration |
|
Long-term | (1,237,520) |
Total capital loss carryforward | $ (126,852,880) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days are subject to a redemption fee equal to .25% of the net asset value of shares
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees - continued
redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Interest Rate Risk | Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the bond market and to fluctuations in interest rates.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $17,414 and a change in net unrealized appreciation (depreciation) of $(17,098) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $118,867,926 and $85,008,566, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .31% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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 the 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:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .15% | $ 11,578 | $ 775 |
Class T | -% | .15% | 2,445 | 2 |
|
|
| $ 14,023 | $ 777 |
Sales Load. FDC may receive a front-end sales charge of up to 1.50% for selling Class A and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive a contingent deferred sales charges levied on Class A and Class T redemptions. The deferred sales charges range from .75% or .50% 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:
| Retained |
Class A | $ 1,372 |
Class T | 471 |
| $ 1,843 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Ultra-Short Bond. FIIOC receives an asset-based fee of .10% of Ultra-Short Bond's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 12,106 | .16 |
Class T | 4,084 | .25 |
Ultra-Short Bond | 150,387 | .10 |
Institutional Class | 6,848 | .16 |
| $ 173,425 |
|
* Annualized
Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, Rule 12b-1 fees, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $400 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
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8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
|
|
|
Class T | .70% | $ 735 |
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $39.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 16,569 | $ 38,543 |
Class T | 2,723 | 7,892 |
Ultra-Short Bond | 631,281 | 1,158,011 |
Institutional Class | 15,961 | 21,788 |
Total | $ 666,534 | $ 1,226,234 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 324,212 | 1,603,688 | $ 2,670,036 | $ 13,112,637 |
Reinvestment of distributions | 1,704 | 3,920 | 14,023 | 32,092 |
Shares redeemed | (513,119) | (1,196,047) | (4,224,665) | (9,779,740) |
Net increase (decrease) | (187,203) | 411,561 | $ (1,540,606) | $ 3,364,989 |
Class T |
|
|
|
|
Shares sold | 50,111 | 331,712 | $ 412,700 | $ 2,711,930 |
Reinvestment of distributions | 310 | 897 | 2,552 | 7,343 |
Shares redeemed | (71,927) | (515,942) | (592,185) | (4,218,475) |
Net increase (decrease) | (21,506) | (183,333) | $ (176,933) | $ (1,499,202) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Ultra-Short Bond |
|
|
|
|
Shares sold | 5,766,323 | 16,883,162 | $ 47,468,005 | $ 138,113,317 |
Reinvestment of distributions | 75,366 | 138,342 | 620,511 | 1,132,483 |
Shares redeemed | (3,896,662) | (10,834,545) | (32,082,621) | (88,649,539) |
Net increase (decrease) | 1,945,027 | 6,186,959 | $ 16,005,895 | $ 50,596,261 |
Institutional Class |
|
|
|
|
Shares sold | 340,241 | 1,909,832 | $ 2,801,393 | $ 15,655,264 |
Reinvestment of distributions | 1,699 | 2,252 | 13,983 | 18,456 |
Shares redeemed | (1,237,083) | (267,573) | (10,160,918) | (2,184,698) |
Net increase (decrease) | (895,143) | 1,644,511 | $ (7,345,542) | $ 13,489,022 |
11. Other.
The Fund's 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 Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Ultra-Short Bond Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
Semiannual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv) continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors; and (ix) reducing certain transfer agent fee rates.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2011, the cumulative total returns of the retail class and Class T of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class T show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (top of box) and the 75th percentile return (bottom of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ultra-Short Bond Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the third quartile for the one-year period and the fourth quartile for the three- and five-year periods. The Board also noted that the investment performance of the fund was lower than its benchmark for the one- and five-year periods, although the three-year cumulative total return of the retail class was comparable to its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to improve the fund's disappointing performance relative to its peer group and how investment personnel evaluate potential for incremental return against the risks involved in obtaining that incremental return. The Board considered the steps that FMR has taken to strengthen and refine its risk management processes in light of recent credit events that have affected various sectors of the fixed-income markets. The Board noted that this fund had underperformed in the past and discussed with FMR its disappointment with the continued underperformance of the fund. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.
Semiannual Report
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 26% means that 74% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ultra-Short Bond Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expense ratio of each class ranked below its competitive median for 2011.
The Board considered that the current contractual arrangements for the fund have the effect of setting the total "fund-level" (but not "class-level") expenses (including, among certain other "fund-level" expenses, the management fee) for each class at 0.35%.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses for each class at 0.35%, increases or decreases in the management fee due to changes in the group fee rate will not impact the total expense ratio.
Semiannual Report
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes; (ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Semiannual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments
Money Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
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
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
AUSBI-USAN-0313 1.804596.109
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Ultra-Short Bond
Fund - Class A and Class T
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Class A and Class T
are classes of
Fidelity® Ultra-Short Bond Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
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. © 2013 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
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 fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, 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 Fund 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 (August 1, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.70 | $ 3.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.93 | $ 3.31 |
Class T | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.50 | $ 3.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Ultra-Short Bond | .45% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.80 | $ 2.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.94 | $ 2.29 |
Institutional Class | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.50 | $ 2.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Quality Diversification (% of fund's net assets) | |||||||
As of January 31, 2013 | As of July 31, 2012 | ||||||
 | U.S. Government and |
| | U.S. Government and |
| ||
 | AAA 22.9% |
| | AAA 19.9% |
| ||
 | AA 14.8% |
| | AA 14.5% |
| ||
 | A 25.8% |
| | A 24.2% |
| ||
 | BBB 18.0% |
| | BBB 13.8% |
| ||
 | BB and Below 0.0% |
|  | BB and Below 0.3% |
| ||
 | Not Rated 0.2% |
| | Not Rated 2.8% |
| ||
 | Short-Term |
| | Short-Term |
| ||
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition. |
Weighted Average Maturity as of January 31, 2013 | ||
|
| 6 months ago |
Years | 1.5 | 1.4 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of January 31, 2013 | ||
|
| 6 months ago |
Years | 0.3 | 0.4 |
Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds. |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
| Corporate Bonds 57.4% |
| | Corporate Bonds 53.1% |
| ||
 | U.S. Government and |
| | U.S. Government and |
| ||
 | Asset-Backed |
| | Asset-Backed |
| ||
 | CMOs and Other Mortgage Related Securities 2.7% |
| | CMOs and Other Mortgage Related Securities 3.2% |
| ||
| Municipal Bonds 1.0% |
| | Municipal Bonds 1.0% |
| ||
| Short-Term |
| | Short-Term |
| ||
* Foreign investments | 17.7% |
| ** Foreign investments | 16.4% |
| ||
* Futures and Swaps | 0.0% |
| ** Futures and Swaps | 9.2% |
| ||
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Nonconvertible Bonds - 57.4% | ||||
| Principal Amount | Value | ||
CONSUMER DISCRETIONARY - 2.8% | ||||
Auto Components - 0.5% | ||||
Johnson Controls, Inc. 0.7228% 2/4/14 (d) | $ 1,500,000 | $ 1,503,879 | ||
Automobiles - 2.3% | ||||
Daimler Finance North America LLC: | ||||
0.905% 1/9/15 (c)(d) | 2,000,000 | 1,999,276 | ||
1.085% 4/10/14 (c)(d) | 1,250,000 | 1,255,798 | ||
Volkswagen International Finance NV: | ||||
0.9115% 11/20/14 (c)(d) | 2,000,000 | 1,999,300 | ||
0.918% 4/1/14 (c)(d) | 2,500,000 | 2,507,523 | ||
| 7,761,897 | |||
TOTAL CONSUMER DISCRETIONARY | 9,265,776 | |||
CONSUMER STAPLES - 1.8% | ||||
Food & Staples Retailing - 0.9% | ||||
Walgreen Co. 0.8095% 3/13/14 (d) | 3,000,000 | 3,004,614 | ||
Food Products - 0.9% | ||||
General Mills, Inc.: | ||||
0.6005% 1/29/16 (d) | 609,000 | 609,543 | ||
0.66% 5/16/14 (d) | 2,475,000 | 2,482,645 | ||
| 3,092,188 | |||
TOTAL CONSUMER STAPLES | 6,096,802 | |||
ENERGY - 0.9% | ||||
Oil, Gas & Consumable Fuels - 0.9% | ||||
Total Capital Canada Ltd. 0.683% 1/15/16 (d) | 3,000,000 | 3,011,238 | ||
FINANCIALS - 44.0% | ||||
Capital Markets - 8.9% | ||||
Goldman Sachs Group, Inc.: | ||||
0.911% 9/29/14 (d) | 1,000,000 | 998,781 | ||
1.3118% 2/7/14 (d) | 2,000,000 | 2,008,826 | ||
HSBC Bank PLC 1.103% 1/17/14 (c)(d) | 3,000,000 | 3,019,728 | ||
JPMorgan Chase & Co.: | ||||
0.964% 10/15/15 (d) | 7,375,000 | 7,406,742 | ||
1.102% 1/24/14 (d) | 2,625,000 | 2,644,215 | ||
Merrill Lynch & Co., Inc. 0.7491% 1/15/15 (d) | 3,500,000 | 3,469,228 | ||
Morgan Stanley 0.605% 1/9/14 (d) | 2,000,000 | 1,991,650 | ||
State Street Corp. 0.6605% 3/7/14 (d) | 2,000,000 | 2,006,320 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Capital Markets - continued | ||||
The Bank of New York Mellon Corp.: | ||||
0.532% 10/23/15 (d) | $ 1,000,000 | $ 999,757 | ||
0.5705% 7/28/14 (d) | 2,000,000 | 2,005,090 | ||
UBS AG Stamford Branch 1.3005% 1/28/14 (d) | 2,963,000 | 2,983,548 | ||
| 29,533,885 | |||
Commercial Banks - 19.1% | ||||
ABN AMRO Bank NV 2.0715% 1/30/14 (c)(d) | 1,000,000 | 1,012,740 | ||
ANZ Banking Group Ltd. 1.045% 1/10/14 (c)(d) | 1,000,000 | 1,006,019 | ||
Bank of Montreal 0.7795% 9/11/15 (d) | 2,400,000 | 2,410,142 | ||
Bank of Nova Scotia 1.345% 1/12/15 (d) | 1,000,000 | 1,014,761 | ||
Bank of Tokyo-Mitsubishi UFJ Ltd. 0.9715% 2/24/14 (c)(d) | 500,000 | 501,681 | ||
Barclays Bank PLC 1.345% 1/13/14 (d) | 3,500,000 | 3,522,064 | ||
BB&T Corp. 1.0005% 4/28/14 (d) | 2,000,000 | 2,011,652 | ||
BNP Paribas: | ||||
0.705% 4/8/13 (d) | 1,000,000 | 1,000,598 | ||
1.205% 1/10/14 (d) | 1,000,000 | 1,004,823 | ||
Commonwealth Bank of Australia: | ||||
1.038% 3/17/14 (c)(d) | 2,500,000 | 2,517,453 | ||
1.108% 9/18/15 (c)(d) | 1,000,000 | 1,009,712 | ||
Credit Suisse New York Branch: | ||||
1.265% 1/14/14 (d) | 2,500,000 | 2,516,760 | ||
2.2% 1/14/14 | 1,000,000 | 1,015,596 | ||
Danske Bank A/S 1.355% 4/14/14 (c)(d) | 500,000 | 502,946 | ||
Fifth Third Bancorp 6.25% 5/1/13 | 1,000,000 | 1,013,568 | ||
Fifth Third Bank 0.421% 5/17/13 (d) | 3,000,000 | 2,996,739 | ||
ING Bank NV 1.623% 10/18/13 (c)(d) | 500,000 | 503,808 | ||
KeyBank NA 5.8% 7/1/14 | 1,000,000 | 1,069,620 | ||
KeyCorp. 6.5% 5/14/13 | 2,000,000 | 2,032,514 | ||
National Australia Bank Ltd. 0.602% 1/22/15 (c)(d) | 1,500,000 | 1,499,421 | ||
PNC Bank NA 0.611% 1/28/16 (d) | 2,000,000 | 2,004,146 | ||
PNC Funding Corp. 0.5005% 1/31/14 (d) | 2,000,000 | 2,002,586 | ||
Rabobank (Netherlands) NV 0.655% 4/14/14 (d) | 3,250,000 | 3,252,278 | ||
Royal Bank of Canada: | ||||
0.603% 4/17/14 (d) | 2,500,000 | 2,509,243 | ||
1.0015% 10/30/14 (d) | 1,000,000 | 1,009,159 | ||
Societe Generale 2.2% 9/14/13 (c) | 1,122,000 | 1,128,487 | ||
Sumitomo Mitsui Banking Corp. 1.252% 7/22/14 (c)(d) | 3,801,000 | 3,832,697 | ||
SunTrust Banks, Inc. 0.608% 4/1/15 (d) | 2,509,000 | 2,453,275 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Commercial Banks - continued | ||||
The Toronto Dominion Bank: | ||||
0.605% 7/14/14 (d) | $ 2,000,000 | $ 2,006,924 | ||
0.7628% 11/1/13 (d) | 500,000 | 501,300 | ||
U.S. Bank NA 0.585% 10/14/14 (d) | 1,510,000 | 1,512,197 | ||
Union Bank NA 1.2605% 6/6/14 (d) | 2,000,000 | 2,015,872 | ||
Wachovia Bank NA 0.6928% 11/3/14 (d) | 3,500,000 | 3,489,707 | ||
Wells Fargo Bank NA 2.3588% 5/16/16 (d) | 3,000,000 | 2,947,977 | ||
Westpac Banking Corp.: | ||||
1.041% 3/31/14 (c)(d) | 1,000,000 | 1,006,673 | ||
1.07% 9/25/15 (d) | 2,000,000 | 2,012,194 | ||
| 63,847,332 | |||
Consumer Finance - 8.2% | ||||
American Express Credit Corp.: | ||||
0.76% 11/13/15 (d) | 3,363,000 | 3,367,621 | ||
1.16% 6/24/14 (d) | 382,000 | 385,615 | ||
1.4105% 6/12/15 (d) | 1,000,000 | 1,018,614 | ||
American Honda Finance Corp. 0.7618% 5/8/14 (c)(d) | 2,000,000 | 2,009,314 | ||
Capital One Financial Corp.: | ||||
0.9528% 11/6/15 (d) | 1,500,000 | 1,503,261 | ||
1.454% 7/15/14 (d) | 5,040,000 | 5,090,869 | ||
Caterpillar Financial Services Corp. 0.66% 2/9/15 (d) | 2,000,000 | 2,008,054 | ||
General Electric Capital Corp.: | ||||
0.905% 1/8/16 (d) | 2,000,000 | 2,005,818 | ||
1.002% 4/24/14 (d) | 2,090,000 | 2,106,576 | ||
1.155% 1/7/14 (d) | 5,000,000 | 5,040,530 | ||
HSBC Finance Corp. 0.554% 1/15/14 (d) | 800,000 | 799,407 | ||
Toyota Motor Credit Corp. 0.4815% 11/21/14 (d) | 2,000,000 | 1,999,296 | ||
| 27,334,975 | |||
Diversified Financial Services - 5.9% | ||||
Bank of America Corp. 1.855% 7/11/14 (d) | 2,000,000 | 2,028,858 | ||
BP Capital Markets PLC 0.9095% 3/11/14 (d) | 2,000,000 | 2,011,750 | ||
Citigroup, Inc.: | ||||
0.5928% 11/5/14 (d) | 2,000,000 | 1,985,446 | ||
1.755% 1/13/14 (d) | 3,341,000 | 3,375,382 | ||
2.31% 8/13/13 (d) | 1,500,000 | 1,513,514 | ||
MassMutual Global Funding II: | ||||
0.4705% 12/6/13 (c)(d) | 841,000 | 841,994 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
FINANCIALS - continued | ||||
Diversified Financial Services - continued | ||||
MassMutual Global Funding II: - continued | ||||
0.685% 1/14/14 (c)(d) | $ 2,942,000 | $ 2,949,084 | ||
MetLife Institutional Funding II 0.675% 1/6/15 (c)(d) | 5,000,000 | 5,005,825 | ||
| 19,711,853 | |||
Insurance - 1.9% | ||||
Monumental Global Funding III 0.504% 1/15/14 (c)(d) | 2,000,000 | 1,999,198 | ||
New York Life Global Funding 0.565% 4/4/14 (c)(d) | 1,400,000 | 1,405,054 | ||
Principal Life Global Funding II 0.93% 7/9/14 (c)(d) | 1,500,000 | 1,499,909 | ||
Principal Life Income Funding Trusts 0.4918% 11/8/13 (d) | 1,425,000 | 1,425,865 | ||
| 6,330,026 | |||
TOTAL FINANCIALS | 146,758,071 | |||
HEALTH CARE - 1.6% | ||||
Pharmaceuticals - 1.6% | ||||
AbbVie, Inc. 1.0718% 11/6/15 (c)(d) | 3,000,000 | 3,045,906 | ||
Teva Pharmaceutical Finance Co. BV 1.2118% 11/8/13 (d) | 1,250,000 | 1,257,214 | ||
Teva Pharmaceutical Finance III BV 0.81% 3/21/14 (d) | 1,000,000 | 1,004,851 | ||
| 5,307,971 | |||
INFORMATION TECHNOLOGY - 1.2% | ||||
Computers & Peripherals - 0.6% | ||||
Hewlett-Packard Co. 0.5915% 5/24/13 (d) | 2,000,000 | 1,996,194 | ||
Office Electronics - 0.6% | ||||
Xerox Corp. 1.13% 5/16/14 (d) | 2,195,000 | 2,190,794 | ||
TOTAL INFORMATION TECHNOLOGY | 4,186,988 | |||
TELECOMMUNICATION SERVICES - 1.9% | ||||
Diversified Telecommunication Services - 1.9% | ||||
British Telecommunications PLC 1.434% 12/20/13 (d) | 2,445,000 | 2,465,296 | ||
Qwest Corp. 3.558% 6/15/13 (d) | 1,000,000 | 1,006,109 | ||
Verizon Communications, Inc. 0.92% 3/28/14 (d) | 3,000,000 | 3,020,310 | ||
| 6,491,715 | |||
UTILITIES - 3.2% | ||||
Electric Utilities - 1.6% | ||||
Appalachian Power Co. 0.685% 8/16/13 (d) | 1,937,000 | 1,939,588 | ||
Nonconvertible Bonds - continued | ||||
| Principal Amount | Value | ||
UTILITIES - continued | ||||
Electric Utilities - continued | ||||
Cleveland Electric Illuminating Co. 5.65% 12/15/13 | $ 1,400,000 | $ 1,457,728 | ||
Duke Energy Corp. 3.95% 9/15/14 | 431,000 | 452,986 | ||
NextEra Energy Capital Holdings, Inc. 1.611% 6/1/14 | 527,000 | 532,552 | ||
Northeast Utilities 1.059% 9/20/13 (d) | 810,000 | 813,521 | ||
| 5,196,375 | |||
Multi-Utilities - 1.6% | ||||
Dominion Resources, Inc. 5% 3/15/13 | 1,000,000 | 1,005,229 | ||
DTE Energy Co. 1.0105% 6/3/13 (d) | 1,183,000 | 1,184,664 | ||
Sempra Energy 1.068% 3/15/14 (d) | 3,157,000 | 3,172,018 | ||
| 5,361,911 | |||
TOTAL UTILITIES | 10,558,286 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $190,879,486) |
| |||
U.S. Government Agency - Mortgage Securities - 1.6% | ||||
| ||||
Fannie Mae - 1.6% | ||||
2.374% 6/1/35 (d) | 886,558 | 947,134 | ||
2.38% 7/1/35 (d) | 686,853 | 730,477 | ||
2.429% 12/1/34 (d) | 463,672 | 494,806 | ||
2.492% 11/1/34 (d) | 467,597 | 499,593 | ||
2.619% 2/1/34 (d) | 265,332 | 278,177 | ||
2.644% 6/1/35 (d) | 387,500 | 413,836 | ||
2.674% 11/1/34 (d) | 414,595 | 442,206 | ||
2.691% 10/1/35 (d) | 927,854 | 987,761 | ||
2.792% 7/1/34 (d) | 407,521 | 437,195 | ||
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $5,009,669) |
| |||
Asset-Backed Securities - 20.6% | ||||
| ||||
Ally Auto Receivables Trust: | ||||
Series 2012-1 Class A2, 0.71% 9/15/14 | 486,172 | 486,818 | ||
Series 2012-2 Class A2, 0.56% 10/15/14 | 248,455 | 248,637 | ||
Series 2012-3 Class A2, 0.7% 1/15/15 | 946,114 | 947,607 | ||
Series 2012-SN1: | ||||
Class A2, 0.51% 12/22/14 | 1,000,000 | 1,000,149 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Ally Auto Receivables Trust: - continued | ||||
Series 2012-SN1: | ||||
Class A3, 0.57% 8/20/15 | $ 400,000 | $ 400,006 | ||
Ally Master Owner Trust: | ||||
Series 2011-1 Class A1, 1.0757% 1/15/16 (d) | 3,290,000 | 3,309,727 | ||
Series 2011-3 Class A2, 1.81% 5/15/16 | 220,000 | 223,255 | ||
Series 2011-5 Class A1, 0.8557% 6/15/15 (d) | 510,000 | 510,581 | ||
Series 2012-2 Class A, 0.7057% 3/15/16 (d) | 1,000,000 | 1,000,391 | ||
Series 2012-3 Class A2, 1.21% 6/15/17 | 1,000,000 | 1,003,056 | ||
AmeriCredit Auto Receivables Trust: | ||||
Series 2010-4 Class A3, 1.27% 4/8/15 | 591,909 | 592,841 | ||
Series 2011-2 Class A2, 0.9% 9/8/14 | 7,027 | 7,027 | ||
Series 2011-4 Class A/S, 0.92% 3/9/15 | 177,500 | 177,677 | ||
Series 2011-5 Class A2, 1.19% 8/8/15 | 58,193 | 58,341 | ||
Series 2012-1 Class A2, 0.91% 10/8/15 | 685,687 | 687,323 | ||
Series 2012-2 Class A2, 0.76% 10/8/15 | 2,117,563 | 2,121,038 | ||
Series 2012-5 Class A2, 0.51% 1/8/16 | 1,000,000 | 999,911 | ||
Avis Budget Rental Car Funding (AESOP) LLC Series 2009-2A Class A, 5.68% 2/20/14 (c) | 30,000 | 30,080 | ||
BMW Floorplan Master Owner Trust Series 2012-1A Class A, 0.609% 9/15/17 (c)(d) | 2,260,000 | 2,256,878 | ||
BMW Vehicle Lease Trust Series 2012-1 Class A2, 0.59% 6/20/14 | 642,366 | 642,845 | ||
Capital Auto Receivables Asset Trust: | ||||
Series 2008-2 Class B, 6.46% 12/15/14 (c) | 808,286 | 814,251 | ||
Series 2008-A Class B, 6.89% 1/15/15 (c) | 179,148 | 180,191 | ||
Carmax Auto Owner Trust Series 2012-3 Class A2, 0.43% 9/15/15 | 2,000,000 | 1,999,892 | ||
Chase Issuance Trust: | ||||
Series 2012-A Class A1, 0.3057% 5/16/16 (d) | 2,000,000 | 2,001,055 | ||
Series 2012-A6 Class A, 0.3357% 8/15/17 (d) | 2,000,000 | 2,001,784 | ||
CIT Equipment Collateral Series 2012-VT1: | ||||
Class A2, 0.85% 5/20/14 (c) | 2,750,000 | 2,753,702 | ||
Class A3, 1.1% 8/22/16 (c) | 482,003 | 483,185 | ||
CNH Equipment Trust Series 2012-D Class A2, 0.51% 4/15/16 | 1,000,000 | 999,993 | ||
Discover Card Master Trust: | ||||
Series 2012-A2 Class A2, 0.3557% 10/17/16 (d) | 1,000,000 | 1,000,842 | ||
Series 2012-A5 Class A5, 0.4057% 1/16/18 (d) | 5,000,000 | 5,006,153 | ||
Fannie Mae Series 2004-T5: | ||||
Class AB1, 0.7075% 5/28/35 (d) | 80,751 | 66,024 | ||
Class AB3, 1.0037% 5/28/35 (d) | 32,052 | 24,960 | ||
Ford Credit Auto Lease Trust: | ||||
Series 2011-A Class A2, 0.74% 9/15/13 | 45,496 | 45,503 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Ford Credit Auto Lease Trust: - continued | ||||
Series 2012-A Class A2, 0.63% 4/15/14 | $ 1,576,324 | $ 1,577,736 | ||
Series 2012-B Class A2, 0.54% 11/15/14 | 150,000 | 150,087 | ||
Ford Credit Auto Owner Trust Series 2012-B Class A2, 0.57% 1/15/15 | 632,622 | 632,877 | ||
Ford Credit Auto Owner Trust 2012-D Series 2012-D Class A2, 0.4% 9/15/15 | 1,000,000 | 999,771 | ||
Ford Credit Floorplan Master Owner Trust: | ||||
Series 2010-5 Class A1, 1.5% 9/15/15 | 240,000 | 241,559 | ||
Series 2012-1 Class A, 0.679% 1/15/16 (d) | 5,000,000 | 5,015,480 | ||
Series 2012-4 Class A1, 0.74% 9/15/16 | 745,000 | 744,985 | ||
Fremont Home Loan Trust Series 2005-A Class M4, 1.2237% 1/25/35 (d) | 125,000 | 15,346 | ||
GE Capital Credit Card Master Note Trust: | ||||
Series 2012-1 Class A, 1.03% 1/15/18 | 857,000 | 865,407 | ||
Series 2012-4 Class A, 0.5057% 6/15/18 (d) | 5,000,000 | 5,010,220 | ||
GE Equipment Small Ticket LLC Series 2012-1A Class A2, 0.85% 11/21/14 (c) | 430,000 | 430,731 | ||
GE Equipment Transportation LLC: | ||||
Series 2012-1 Class A2, 0.74% 9/22/14 | 250,664 | 251,011 | ||
Series 2012-2 Class A2, 0.47% 4/24/15 | 510,000 | 509,819 | ||
Home Equity Asset Trust Series 2003-5 Class A2, 0.9037% 12/25/33 (d) | 10,566 | 8,913 | ||
Honda Auto Receivables Owner Trust Series 2011-3 Class A2, 0.67% 4/21/14 | 106,936 | 107,027 | ||
Hyundai Auto Receivables Trust Series 2012-B Class A2, 0.54% 1/15/15 | 1,500,000 | 1,501,319 | ||
John Deere Owner Trust: | ||||
Series 2012-A Class A2, 0.59% 6/16/14 | 341,108 | 341,282 | ||
Series 2012-B Class A2, 0.43% 2/17/15 | 2,000,000 | 2,000,775 | ||
Mercedes Benz Master Owner Trust Series 2012-BA Class A, 0.482% 11/15/16 (c)(d) | 2,370,000 | 2,370,234 | ||
Merrill Lynch Mortgage Investors Trust Series 2004-HE2 Class A1B, 0.6737% 8/25/35 (d) | 20,366 | 19,031 | ||
Morgan Stanley ABS Capital I Trust Series 2004-HE6 Class A2, 0.5437% 8/25/34 (d) | 65,756 | 57,428 | ||
Nissan Master Owner Trust Receivables Series 2012-A Class A, 0.679% 5/15/17 (d) | 2,250,000 | 2,255,494 | ||
Ocala Funding LLC Series 2006-1A Class A, 1.6047% 3/20/11 (b)(c)(d) | 965,000 | 0 | ||
Park Place Securities, Inc. Series 2004-WCW1 Class M4, 1.6537% 9/25/34 (d) | 435,000 | 127,282 | ||
Porsche Innovative Lease Owner Trust Series 2012-1 Class A2, 0.44% 2/23/15 (c) | 1,000,000 | 999,971 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0037% 4/25/33 (d) | $ 1,451 | $ 1,348 | ||
Santander Drive Auto Receivables Trust: | ||||
Series 2011-3 Class A2, 1.11% 8/15/14 | 60,376 | 60,447 | ||
Series 2011-4 Class A2, 1.37% 3/16/15 | 110,873 | 111,180 | ||
Series 2012-1 Class A2, 1.25% 4/15/15 | 445,974 | 447,396 | ||
Series 2012-2 Class A2, 0.91% 5/15/15 | 359,257 | 360,128 | ||
Series 2012-3 Class A2, 0.83% 4/15/15 | 815,197 | 816,784 | ||
Series 2013-1 Class A2, 0.48% 2/16/16 | 790,000 | 789,751 | ||
SLM Student Loan Trust: | ||||
Series 2012-6 Class A1, 0.3637% 2/27/17 (d) | 1,702,719 | 1,703,750 | ||
Series 2012-7 Class A2, 0.489% 9/25/19 (d) | 1,000,000 | 999,999 | ||
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.0637% 9/25/34 (d) | 21,802 | 19,835 | ||
Volkswagen Auto Lease Trust: | ||||
Series 2010-A Class A4, 1.18% 10/20/15 | 120,000 | 120,053 | ||
Series 2011-A Class A2, 1% 2/20/14 | 48,242 | 48,277 | ||
Volkswagen Auto Loan Enhanced Trust Series 2011-1 Class A3, 1.22% 6/22/15 | 117,887 | 118,437 | ||
World Omni Auto Lease Securitization Trust Series 2012-A Class A2, 0.71% 1/15/15 | 1,500,000 | 1,501,824 | ||
World Omni Auto Receivables Trust Series 2012-A Class A2, 0.52% 6/15/15 | 1,360,000 | 1,360,805 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $70,151,615) |
| |||
Collateralized Mortgage Obligations - 15.3% | ||||
| ||||
Private Sponsor - 1.1% | ||||
Arkle Master Issuer PLC floater Series 2010-1A Class 2A, 1.461% 5/17/60 (c)(d) | 1,740,000 | 1,740,710 | ||
Arran Residential Mortgages Funding PLC floater Series 2011-1A Class A1C, 1.511% 11/19/47 (c)(d) | 141,549 | 141,790 | ||
Granite Master Issuer PLC floater Series 2006-1A Class A5, 0.3447% 12/20/54 (c)(d) | 285,356 | 281,076 | ||
Granite Mortgages Series 2003-2 Class 1A3, 0.802% 7/20/43 (d) | 299,883 | 297,738 | ||
Granite Mortgages PLC floater: | ||||
Series 2003-3 Class 1A3, 0.702% 1/20/44 (d) | 42,441 | 42,152 | ||
Series 2004-1 Class 2A1, 0.629% 3/20/44 (d) | 674,480 | 669,657 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount | Value | ||
Private Sponsor - continued | ||||
Granite Mortgages PLC floater: - continued | ||||
Series 2004-3 Class 2A1, 0.589% 9/20/44 (d) | $ 284,018 | $ 281,987 | ||
GSR Mortgage Loan Trust floater Series 2004-11 Class 2A1, 0.5337% 12/25/34 (d) | 186,118 | 175,086 | ||
TOTAL PRIVATE SPONSOR | 3,630,196 | |||
U.S. Government Agency - 14.2% | ||||
Fannie Mae: | ||||
floater: | ||||
Series 2003-31 Class FM, 0.7037% 4/25/33 (d) | 1,600,221 | 1,611,127 | ||
Series 2006-33 Class CF, 0.5037% 5/25/36 (d) | 171,816 | 171,697 | ||
Series 2008-76 Class EF, 0.7037% 9/25/23 (d) | 44,025 | 44,166 | ||
Series 2010-86 Class FE, 0.6537% 8/25/25 (d) | 284,306 | 285,798 | ||
floater planned amortization class: | ||||
Series 2004-52 Class PF 0.6537% 12/25/33 (d) | 3,281,575 | 3,295,565 | ||
Series 2005-90 Class FC, 0.4537% 10/25/35 (d) | 173,955 | 173,946 | ||
pass-thru certificates Series 2012-127 Class DH, 4% 11/25/27 | 496,092 | 532,218 | ||
sequential payer: | ||||
Series 2005-47 Class HA, 4.5% 7/25/19 | 408,804 | 415,134 | ||
Series 2009-69 Class EA, 5% 10/25/36 | 1,754,551 | 1,793,065 | ||
Series 2011-16 Class FB, 0.3537% 3/25/31 (d) | 1,925,535 | 1,923,218 | ||
sequential payer floater: | ||||
Series 2005-74 Class DF, 0.5537% 7/25/35 (d) | 4,456,648 | 4,460,671 | ||
Series 2005-83 Class FP, 0.5337% 10/25/35 (d) | 6,133,614 | 6,132,775 | ||
Series 2011-23 Class AB, 2.75% 6/25/20 | 144,882 | 149,747 | ||
Freddie Mac: | ||||
floater: | ||||
Series 2711 Class FC, 1.1057% 2/15/33 (d) | 435,527 | 442,273 | ||
Series 3346 Class FA, 0.4357% 2/15/19 (d) | 3,741,896 | 3,747,285 | ||
Series 3879 Class AF, 0.6357% 6/15/41 (d) | 632,491 | 634,021 | ||
floater planned amortization: | ||||
Series 3102 Class FD, 0.5057% 1/15/36 (d) | 496,762 | 497,685 | ||
Series 4020 Class EF 0.6557% 2/15/42 (d) | 3,562,919 | 3,563,331 | ||
Series 4057 Class EF, 0.5557% 12/15/41 (d) | 2,845,009 | 2,855,014 | ||
floater planned amortization class: | ||||
Series 2953 Class LF, 0.5057% 12/15/34 (d) | 2,379,098 | 2,380,536 | ||
Series 3117 Class JF, 0.5057% 2/15/36 (d) | 195,277 | 195,511 | ||
floater sequential payer: | ||||
Series 2828 Class TF, 0.6557% 10/15/30 (d) | 944,146 | 947,712 | ||
Series 3046 Class F, 0.5757% 3/15/33 (d) | 2,392,976 | 2,387,957 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount | Value | ||
U.S. Government Agency - continued | ||||
Freddie Mac: - continued | ||||
floater sequential payer: | ||||
Series 3387 Class DF, 0.3857% 10/15/17 (d) | $ 232,847 | $ 232,834 | ||
planned amortization Series 2836 Class PX, 4% 5/15/18 | 986,681 | 1,005,560 | ||
planned amortization class: | ||||
Series 3081 Class CP 5.5% 10/15/34 | 724,373 | 753,479 | ||
Series 3792 Class DF, 0.6057% 11/15/40 (d) | 782,516 | 784,835 | ||
sequential payer: | ||||
Series 2582 Class CG, 4% 11/15/17 | 289,910 | 293,505 | ||
Series 2924 Class DA, 4.5% 2/15/19 | 326,985 | 331,599 | ||
Series 3560 Class LA, 2% 8/15/14 | 153,463 | 153,498 | ||
Series 3573 Class LC, 1.85% 8/15/14 | 423,588 | 425,645 | ||
Series 3659 Class EJ 3% 6/15/18 | 626,717 | 646,909 | ||
Series 3696 Class AE, 1.2% 7/15/15 | 272,845 | 274,468 | ||
Ginnie Mae guaranteed REMIC pass-thru certificates: | ||||
floater: | ||||
Series 2009-108 Class CF, 0.8057% 11/16/39 (d) | 245,675 | 247,768 | ||
Series 2009-116 Class KF, 0.7357% 12/16/39 (d) | 212,886 | 214,297 | ||
Series 2009-127 Class FA, 0.7547% 9/20/38 (d) | 271,630 | 273,624 | ||
Series 2010-9 Class FA, 0.7257% 1/16/40 (d) | 314,620 | 316,672 | ||
floater planned amortization Series 2004-80 Class FM, 0.5047% 7/20/34 (d) | 1,751,810 | 1,752,640 | ||
floater sequential payer Series 2010-120 Class FB 0.5047% 9/20/35 (d) | 322,768 | 323,033 | ||
planned amortization class: | ||||
Series 2010-112 Class PM, 3.25% 9/20/33 | 134,199 | 137,573 | ||
Series 2010-99 Class PT, 3.5% 8/20/33 | 167,539 | 172,420 | ||
Series 2012-149 Class LF, 0.4547% 12/20/42 (d) | 428,468 | 428,268 | ||
TOTAL U.S. GOVERNMENT AGENCY | 47,409,079 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $51,151,890) |
| |||
Commercial Mortgage Securities - 1.6% | ||||
| ||||
Banc of America REMIC Trust Series 2012-CLRN Class A1, 1.3557% 8/15/17 (c)(d) | 560,000 | 565,534 | ||
COMM pass-thru certificates floater Series 2006-CN2A Class A2FL, 0.4277% 2/5/19 (c)(d) | 584,594 | 573,036 | ||
Credit Suisse First Boston Mortgage Securities Corp. Series 2003-C4 Class A4, 5.137% 8/15/36 | 190,367 | 191,917 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Extended Stay America Trust floater Series 2013-ESFL: | ||||
Class A1FL, 1.108% 12/5/31 (c)(d) | $ 270,000 | $ 270,001 | ||
Class A2FL, 1.108% 12/5/31 (c)(d) | 350,000 | 350,002 | ||
GMAC Commercial Mortgage Securities, Inc. sequential payer Series 2003-C2 Class A2, 5.444% 5/10/40 (d) | 119,629 | 121,057 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP: | ||||
Class A1, 1.1031% 3/6/20 (c)(d) | 301,076 | 301,446 | ||
Class A2, 1.2601% 3/6/20 (c)(d) | 250,000 | 250,437 | ||
Class C, 2.0056% 3/6/20 (c)(d) | 300,000 | 301,192 | ||
sequential payer Series 2005-GG4 Class A3, 4.607% 7/10/39 | 5,154 | 5,180 | ||
GS Mortgage Securities Trust: | ||||
sequential payer Series 2006-GG8 Class A2, 5.479% 11/10/39 | 101,600 | 103,103 | ||
Series 2011-GC5 Class A1, 1.468% 8/10/44 (d) | 171,338 | 173,373 | ||
Series 2012-GC6 Class A1, 1.282% 1/10/45 | 82,599 | 83,306 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
floater Series 2011-CCHP Class A, 2.6% 7/15/28 (c)(d) | 211,756 | 211,886 | ||
Series 2003-CB7 Class A4, 4.879% 1/12/38 (d) | 97,917 | 100,220 | ||
Series 2012-C6 Class A1, 1.0305% 5/15/45 | 252,896 | 254,562 | ||
JPMorgan Chase Commercial Mortgage Securities Trust sequential payer: | ||||
Series 2005-LDP5 Class A2, 5.198% 12/15/44 | 120,885 | 121,826 | ||
Series 2007-LD11 Class A2, 5.7967% 6/15/49 (d) | 129,197 | 133,381 | ||
LB-UBS Commercial Mortgage Trust sequential payer Series 2003-C3 Class A4, 4.166% 5/15/32 | 37,199 | 37,296 | ||
Morgan Stanley Capital I Trust: | ||||
floater: | ||||
Series 2006-XLF Class C, 1.409% 7/15/19 (c)(d) | 247,826 | 99,130 | ||
Series 2007-XLFA: | ||||
Class A2, 0.306% 10/15/20 (c)(d) | 214,098 | 211,978 | ||
Class B, 0.336% 10/15/20 (c)(d) | 440,000 | 422,281 | ||
sequential payer Series 2003-IQ4 Class A2, 4.07% 5/15/40 | 21,916 | 21,947 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Morgan Stanley Dean Witter Capital I Trust sequential payer Series 2003-T11 Class A4, 5.15% 6/13/41 | $ 85,756 | $ 86,618 | ||
Wachovia Bank Commercial Mortgage Trust floater Series 2006-WL7A Class A2, 0.329% 9/15/21 (c)(d) | 249,045 | 244,555 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $5,680,819) |
| |||
Municipal Securities - 1.0% | ||||
| ||||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series 2010 A, 0.6%, tender 2/1/13 (d)(e) | 2,000,000 | 2,000,000 | ||
Illinois Gen. Oblig. Series 2010, 4.421% 1/1/15 | 1,375,000 | 1,450,158 | ||
TOTAL MUNICIPAL SECURITIES (Cost $3,454,202) |
| |||
Certificates of Deposit - 1.2% | ||||
| ||||
Bank of Nova Scotia yankee: | ||||
0.723% 10/18/13 (d) | 2,000,000 | 2,006,778 | ||
0.81% 2/10/14 (d) | 1,000,000 | 1,004,786 | ||
Nordea Bank Finland PLC yankee 0.7918% 2/7/13 (d) | 1,000,000 | 1,000,043 | ||
TOTAL CERTIFICATES OF DEPOSIT (Cost $3,998,812) | 4,011,607 | |||
Commercial Paper - 0.9% | ||||
| ||||
British Telecommunications PLC 1.5% 5/14/13 | 1,000,000 | 998,278 | ||
Vodafone Group PLC yankee: | ||||
0.77% 12/30/13 | 1,000,000 | 993,127 | ||
1.25% 3/12/13 | 1,000,000 | 999,663 | ||
TOTAL COMMERCIAL PAPER (Cost $2,987,295) | 2,991,068 | |||
Money Market Funds - 0.8% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.16% (a) | 2,580,205 | $ 2,580,205 | |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $335,893,993) | 334,991,131 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (1,211,502) | ||
NET ASSETS - 100% | $ 333,779,629 | ||
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(b) Non-income producing - Security is in default. |
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $60,343,823 or 18.1% of net assets. |
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 5,074 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, involving the Fund's assets and liabilities carried at fair value. 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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Corporate Bonds | $ 191,676,847 | $ - | $ 191,676,847 | $ - |
U.S. Government Agency - Mortgage Securities | 5,231,185 | - | 5,231,185 | - |
Asset-Backed Securities | 68,775,522 | - | 68,775,522 | - |
Collateralized Mortgage Obligations | 51,039,275 | - | 51,039,275 | - |
Commercial Mortgage Securities | 5,235,264 | - | 5,136,134 | 99,130 |
Municipal Securities | 3,450,158 | - | 3,450,158 | - |
Certificates of Deposit | 4,011,607 | - | 4,011,607 | - |
Commercial Paper | 2,991,068 | - | 2,991,068 | - |
Money Market Funds | 2,580,205 | 2,580,205 | - | - |
Total Investments in Securities: | $ 334,991,131 | $ 2,580,205 | $ 332,311,796 | $ 99,130 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 82.3% |
United Kingdom | 5.2% |
Canada | 3.7% |
Netherlands | 2.8% |
Australia | 2.7% |
Japan | 1.2% |
Others (Individually Less Than 1%) | 2.1% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $333,313,788) | $ 332,410,926 |
|
Fidelity Central Funds (cost $2,580,205) | 2,580,205 |
|
Total Investments (cost $335,893,993) |
| $ 334,991,131 |
Receivable for fund shares sold | 391,556 | |
Interest receivable | 362,884 | |
Distributions receivable from Fidelity Central Funds | 786 | |
Receivable from investment adviser for expense reductions | 116 | |
Other receivables | 198 | |
Total assets | 335,746,671 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,079,895 | |
Payable for fund shares redeemed | 756,324 | |
Distributions payable | 1,614 | |
Accrued management fee | 87,496 | |
Distribution and service plan fees payable | 2,336 | |
Other affiliated payables | 39,377 | |
Total liabilities | 1,967,042 | |
|
|
|
Net Assets | $ 333,779,629 | |
Net Assets consist of: |
| |
Paid in capital | $ 461,341,708 | |
Undistributed net investment income | 163,625 | |
Accumulated undistributed net realized gain (loss) on investments | (126,822,842) | |
Net unrealized appreciation (depreciation) on investments | (902,862) | |
Net Assets | $ 333,779,629 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 8.24 | |
|
|
|
Maximum offering price per share (100/98.50 of $8.24) | $ 8.37 | |
Class T: | $ 8.24 | |
|
|
|
Maximum offering price per share (100/98.50 of $8.24) | $ 8.37 | |
Ultra-Short Bond: | $ 8.24 | |
|
|
|
Institutional Class: | $ 8.24 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Interest |
| $ 1,550,076 |
Income from Fidelity Central Funds |
| 5,074 |
Total income |
| 1,555,150 |
|
|
|
Expenses | ||
Management fee | $ 516,152 | |
Transfer agent fees | 173,425 | |
Distribution and service plan fees | 14,023 | |
Fund wide operations fee | 57,364 | |
Independent trustees' compensation | 612 | |
Miscellaneous | 400 | |
Total expenses before reductions | 761,976 | |
Expense reductions | (774) | 761,202 |
Net investment income (loss) | 793,948 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 310,318 | |
Futures contracts | 17,414 | |
Total net realized gain (loss) |
| 327,732 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 691,390 | |
Futures contracts | (17,098) | |
Total change in net unrealized appreciation (depreciation) |
| 674,292 |
Net gain (loss) | 1,002,024 | |
Net increase (decrease) in net assets resulting from operations | $ 1,795,972 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 793,948 | $ 1,324,555 |
Net realized gain (loss) | 327,732 | (161,606) |
Change in net unrealized appreciation (depreciation) | 674,292 | 577,855 |
Net increase (decrease) in net assets resulting | 1,795,972 | 1,740,804 |
Distributions to shareholders from net investment income | (666,534) | (1,226,234) |
Share transactions - net increase (decrease) | 6,942,814 | 65,951,070 |
Redemption fees | 5,491 | 17,158 |
Total increase (decrease) in net assets | 8,077,743 | 66,482,798 |
|
|
|
Net Assets | ||
Beginning of period | 325,701,886 | 259,219,088 |
End of period (including undistributed net investment income of $163,625 and undistributed net investment income of $36,211, respectively) | $ 333,779,629 | $ 325,701,886 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .012 | .023 | .013 | .047 | .091 | .384 |
Net realized and unrealized gain (loss) | .027 | .007 | .051 | .040 | (.167) | (1.612) |
Total from investment operations | .039 | .030 | .064 | .087 | (.076) | (1.228) |
Distributions from net investment income | (.009) | (.020) | (.015) | (.047) | (.071) | (.294) |
Tax return of capital | - | - | - | - | (.003) | (.039) |
Total distributions | (.009) | (.020) | (.015) | (.047) | (.074) | (.333) |
Redemption fees added to paid in capital E | - I | - I | .001 | - I | - I | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C, D | .47% | .36% | .80% | 1.08% | (.92)% | (12.71)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .65% A | .66% | .63% | .64% | .68% | .67% |
Expenses net of fee waivers, if any | .65% A | .66% | .63% | .64% | .68% | .67% |
Expenses net of all reductions | .65% A | .66% | .63% | .64% | .67% | .66% |
Net investment income (loss) | .29% A | .28% | .16% | .58% | 1.13% | 4.26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14,148 | $ 15,635 | $ 12,242 | $ 18,129 | $ 8,033 | $ 6,268 |
Portfolio turnover rate G | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .010 | .019 | .009 | .044 | .090 | .377 |
Net realized and unrealized gain (loss) | .027 | .007 | .052 | .040 | (.168) | (1.607) |
Total from investment operations | .037 | .026 | .061 | .084 | (.078) | (1.230) |
Distributions from net investment income | (.007) | (.016) | (.012) | (.044) | (.069) | (.292) |
Tax return of capital | - | - | - | - | (.003) | (.039) |
Total distributions | (.007) | (.016) | (.012) | (.044) | (.072) | (.331) |
Redemption fees added to paid in capital E | - I | - I | .001 | - I | - I | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C, D | .45% | .32% | .76% | 1.03% | (.94)% | (12.72)% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | .74% A | .72% | .68% | .68% | .69% | .69% |
Expenses net of fee waivers, if any | .70% A | .70% | .68% | .68% | .69% | .69% |
Expenses net of all reductions | .70% A | .70% | .68% | .68% | .69% | .69% |
Net investment income (loss) | .24% A | .23% | .12% | .54% | 1.11% | 4.23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,146 | $ 3,312 | $ 4,811 | $ 5,334 | $ 3,114 | $ 2,910 |
Portfolio turnover rate G | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Ultra-Short Bond
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .020 | .040 | .028 | .063 | .111 | .404 |
Net realized and unrealized gain (loss) | .027 | .006 | .051 | .040 | (.169) | (1.603) |
Total from investment operations | .047 | .046 | .079 | .103 | (.058) | (1.199) |
Distributions from net investment income | (.017) | (.036) | (.030) | (.063) | (.088) | (.310) |
Tax return of capital | - | - | - | - | (.004) | (.042) |
Total distributions | (.017) | (.036) | (.030) | (.063) | (.092) | (.352) |
Redemption fees added to paid in capital D | - H | - H | .001 | - H | - H | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C | .58% | .57% | .99% | 1.27% | (.70)% | (12.42)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of fee waivers, if any | .45% A | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .45% A | .45% | .45% | .45% | .44% | .45% |
Net investment income (loss) | .49% A | .48% | .34% | .77% | 1.36% | 4.47% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 308,056 | $ 291,005 | $ 239,921 | $ 239,266 | $ 217,282 | $ 315,401 |
Portfolio turnover rate F | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 | $ 9.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .018 | .037 | .025 | .057 | .102 | .416 |
Net realized and unrealized gain (loss) | .027 | .009 | .051 | .040 | (.168) | (1.619) |
Total from investment operations | .045 | .046 | .076 | .097 | (.066) | (1.203) |
Distributions from net investment income | (.015) | (.036) | (.027) | (.057) | (.081) | (.306) |
Tax return of capital | - | - | - | - | (.003) | (.042) |
Total distributions | (.015) | (.036) | (.027) | (.057) | (.084) | (.348) |
Redemption fees added to paid in capital D | - H | - H | .001 | - H | - H | .001 |
Net asset value, end of period | $ 8.24 | $ 8.21 | $ 8.20 | $ 8.15 | $ 8.11 | $ 8.26 |
Total Return B, C | .55% | .56% | .95% | 1.20% | (.80)% | (12.46)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .50% A | .48% | .49% | .52% | .58% | .48% |
Expenses net of fee waivers, if any | .50% A | .48% | .49% | .52% | .55% | .48% |
Expenses net of all reductions | .50% A | .48% | .49% | .52% | .54% | .48% |
Net investment income (loss) | .44% A | .45% | .31% | .70% | 1.26% | 4.44% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8,430 | $ 15,750 | $ 2,245 | $ 1,206 | $ 623 | $ 594 |
Portfolio turnover rate F | 83% A | 80% | 103% | 95% | 92% | 11% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (Unaudited)
1. Organization.
Fidelity® Ultra-Short Bond Fund (the Fund) is a fund of Fidelity Income Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. The Fund offers Class A, Class T, Ultra-Short Bond and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. 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 following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The 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 the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, municipal securities, commercial paper and certificates of deposit, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities, and U.S. government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds , including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2013 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and may include proceeds received from litigation. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the 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 income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, premium on debt securities, market discount, capital loss carryforwards, certain losses related to deflation adjustments on U.S. Treasury inflation-indexed securities and losses deferred due to excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,372,207 |
Gross unrealized depreciation | (2,105,007) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (732,800) |
|
|
Tax cost | $ 335,723,931 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is 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. At July 31, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2014 | $ (1,917,431) |
2015 | (518,690) |
2016 | (12,186,304) |
2017 | (97,397,499) |
2018 | (9,829,719) |
2019 | (3,765,717) |
Total with expiration | (125,615,360) |
No expiration |
|
Long-term | (1,237,520) |
Total capital loss carryforward | $ (126,852,880) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days are subject to a redemption fee equal to .25% of the net asset value of shares
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees - continued
redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Interest Rate Risk | Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the bond market and to fluctuations in interest rates.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $17,414 and a change in net unrealized appreciation (depreciation) of $(17,098) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $118,867,926 and $85,008,566, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .31% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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 the 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:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .15% | $ 11,578 | $ 775 |
Class T | -% | .15% | 2,445 | 2 |
|
|
| $ 14,023 | $ 777 |
Sales Load. FDC may receive a front-end sales charge of up to 1.50% for selling Class A and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive a contingent deferred sales charges levied on Class A and Class T redemptions. The deferred sales charges range from .75% or .50% 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:
| Retained |
Class A | $ 1,372 |
Class T | 471 |
| $ 1,843 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Ultra-Short Bond. FIIOC receives an asset-based fee of .10% of Ultra-Short Bond's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 12,106 | .16 |
Class T | 4,084 | .25 |
Ultra-Short Bond | 150,387 | .10 |
Institutional Class | 6,848 | .16 |
| $ 173,425 |
|
* Annualized
Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, Rule 12b-1 fees, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $400 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
8. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
|
|
|
Class T | .70% | $ 735 |
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $39.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 16,569 | $ 38,543 |
Class T | 2,723 | 7,892 |
Ultra-Short Bond | 631,281 | 1,158,011 |
Institutional Class | 15,961 | 21,788 |
Total | $ 666,534 | $ 1,226,234 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 324,212 | 1,603,688 | $ 2,670,036 | $ 13,112,637 |
Reinvestment of distributions | 1,704 | 3,920 | 14,023 | 32,092 |
Shares redeemed | (513,119) | (1,196,047) | (4,224,665) | (9,779,740) |
Net increase (decrease) | (187,203) | 411,561 | $ (1,540,606) | $ 3,364,989 |
Class T |
|
|
|
|
Shares sold | 50,111 | 331,712 | $ 412,700 | $ 2,711,930 |
Reinvestment of distributions | 310 | 897 | 2,552 | 7,343 |
Shares redeemed | (71,927) | (515,942) | (592,185) | (4,218,475) |
Net increase (decrease) | (21,506) | (183,333) | $ (176,933) | $ (1,499,202) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Ultra-Short Bond |
|
|
|
|
Shares sold | 5,766,323 | 16,883,162 | $ 47,468,005 | $ 138,113,317 |
Reinvestment of distributions | 75,366 | 138,342 | 620,511 | 1,132,483 |
Shares redeemed | (3,896,662) | (10,834,545) | (32,082,621) | (88,649,539) |
Net increase (decrease) | 1,945,027 | 6,186,959 | $ 16,005,895 | $ 50,596,261 |
Institutional Class |
|
|
|
|
Shares sold | 340,241 | 1,909,832 | $ 2,801,393 | $ 15,655,264 |
Reinvestment of distributions | 1,699 | 2,252 | 13,983 | 18,456 |
Shares redeemed | (1,237,083) | (267,573) | (10,160,918) | (2,184,698) |
Net increase (decrease) | (895,143) | 1,644,511 | $ (7,345,542) | $ 13,489,022 |
11. Other.
The Fund's 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 Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Ultra-Short Bond Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
Semiannual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv) continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors; and (ix) reducing certain transfer agent fee rates.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2011, the cumulative total returns of the retail class and Class T of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class T show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (top of box) and the 75th percentile return (bottom of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ultra-Short Bond Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the third quartile for the one-year period and the fourth quartile for the three- and five-year periods. The Board also noted that the investment performance of the fund was lower than its benchmark for the one- and five-year periods, although the three-year cumulative total return of the retail class was comparable to its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to improve the fund's disappointing performance relative to its peer group and how investment personnel evaluate potential for incremental return against the risks involved in obtaining that incremental return. The Board considered the steps that FMR has taken to strengthen and refine its risk management processes in light of recent credit events that have affected various sectors of the fixed-income markets. The Board noted that this fund had underperformed in the past and discussed with FMR its disappointment with the continued underperformance of the fund. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.
Semiannual Report
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 26% means that 74% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ultra-Short Bond Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expense ratio of each class ranked below its competitive median for 2011.
The Board considered that the current contractual arrangements for the fund have the effect of setting the total "fund-level" (but not "class-level") expenses (including, among certain other "fund-level" expenses, the management fee) for each class at 0.35%.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses for each class at 0.35%, increases or decreases in the management fee due to changes in the group fee rate will not impact the total expense ratio.
Semiannual Report
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive in the circumstances.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes; (ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Semiannual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments
Money Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
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
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
AUSB-USAN-0313 1.804590.109
Fidelity Income Replacement FundsSM -
2016, 2018, 2020, 2022, 2024, 2026, 2028, 2030, 2032, 2034, 2036, 2038, 2040, 2042
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity Income Replacement 2016 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2018 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2020 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2022 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2024 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2026 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2028 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2030 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2032 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2034 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2036 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2038 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2040 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Income Replacement 2042 FundSM | Investment Changes Investments Financial Statements | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
Semiannual 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 1-800-544-8544 to request a free copy of the proxy voting guidelines.
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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. © 2013 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.
Semiannual Report
Shareholder Expense Example
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 (August 1, 2012 to January 31, 2013).
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 | Beginning | Ending | Expenses Paid |
Fidelity Income Replacement 2016 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,021.40 | $ 1.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.20 | $ 2.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,017.70 | $ 5.09 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2016 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,022.70 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,022.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2018 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.00 | $ 1.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.50 | $ 2.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,029.90 | $ 5.12 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2018 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,043.80 | $ 1.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,042.40 | $ 2.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,039.70 | $ 5.14 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2020 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,051.20 | $ 1.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .49%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,049.70 | $ 2.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,047.10 | $ 5.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2022 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.80 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,055.50 | $ 2.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.90 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2024 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.10 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.10 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,060.80 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,059.60 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.03%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.90 | $ 5.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
Income Replacement 2026 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,064.20 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.70 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,060.10 | $ 5.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2028 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,066.90 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.50 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.80 | $ 5.20 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2030 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,068.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,068.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,069.10 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.90 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.20 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2032 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.50 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.70 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A | .26%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,071.60 | $ 1.36 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.89 | $ 1.33 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.60 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2034 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,074.10 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.80 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2036 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.40 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.60 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,076.70 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.40 | $ 2.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.60 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2038 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.00 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.00 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2040 Fund |
|
|
|
|
Class A | .22%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,080.00 | $ 1.15 |
HypotheticalA |
| $ 1,000.00 | $ 1,024.10 | $ 1.12 |
Class T | .49%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.70 | $ 2.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.90 | $ 5.23 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2040 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,083.40 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,082.10 | $ 2.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | .99%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,079.40 | $ 5.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.21 | $ 5.04 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2042 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.80 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Funds invest are not included in the Funds' annualized expense ratio.
** Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Semiannual Report
Fidelity Income Replacement 2016 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 2.0 | 2.4 |
Fidelity Blue Chip Growth Fund | 1.9 | 2.2 |
Fidelity Disciplined Equity Fund | 2.1 | 2.6 |
Fidelity Equity-Income Fund | 2.9 | 3.5 |
Fidelity Series 100 Index Fund | 1.9 | 2.2 |
Fidelity Series Broad Market Opportunities Fund | 3.3 | 4.0 |
Fidelity Series Small Cap Opportunities Fund | 0.3 | 0.3 |
| 14.4 | 17.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.8 | 6.8 |
Fidelity Strategic Real Return Fund | 5.8 | 6.8 |
Fidelity Total Bond Fund | 17.3 | 20.4 |
| 28.9 | 34.0 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 34.0 | 28.1 |
Fidelity Short-Term Bond Fund | 22.7 | 20.7 |
| 56.7 | 48.8 |
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) | |||
Current | |||
 | Domestic Equity Funds | 14.4% |
|
 | Investment Grade Fixed-Income Funds | 28.9% |
|
 | Short-Term Funds | 56.7% |
|
Six months ago | |||
| Domestic Equity Funds | 17.2% |
|
| Investment Grade Fixed-Income Funds | 34.0% |
|
| Short-Term Funds | 48.8% |
|
Expected | |||
| Domestic Equity Funds | 12.0% |
|
| Investment Grade Fixed-Income Funds | 23.0% |
|
| Short-Term Funds | 65.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2016 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 14.4% | |||
Shares | Value | ||
Domestic Equity Funds - 14.4% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 8,367 | $ 157,214 | |
Fidelity Blue Chip Growth Fund | 2,841 | 145,540 | |
Fidelity Disciplined Equity Fund | 6,541 | 168,110 | |
Fidelity Equity-Income Fund | 4,508 | 224,147 | |
Fidelity Series 100 Index Fund | 14,776 | 145,540 | |
Fidelity Series Broad Market Opportunities Fund | 21,999 | 257,613 | |
Fidelity Series Small Cap Opportunities Fund | 1,923 | 22,570 | |
TOTAL EQUITY FUNDS (Cost $798,005) |
| ||
Fixed-Income Funds - 28.9% | |||
|
|
|
|
Investment Grade Fixed-Income Funds - 28.9% | |||
Fidelity Government Income Fund | 42,843 | 449,850 | |
Fidelity Strategic Real Return Fund | 46,044 | 449,850 | |
Fidelity Total Bond Fund | 124,111 | 1,350,328 | |
TOTAL FIXED-INCOME FUNDS (Cost $2,055,637) |
| ||
Short-Term Funds - 56.7% | |||
Shares | Value | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 2,647,735 | $ 2,647,735 | |
Fidelity Short-Term Bond Fund | 205,160 | 1,764,378 | |
TOTAL SHORT-TERM FUNDS (Cost $4,361,401) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,215,043) | 7,782,875 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (878) | ||
NET ASSETS - 100% | $ 7,781,997 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2016 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $7,215,043) - See accompanying schedule | $ 7,782,875 | |
Receivable for investments sold | 118,499 | |
Total assets | 7,901,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 118,468 | |
Distribution and service plan fees payable | 909 | |
Total liabilities | 119,377 | |
|
|
|
Net Assets | $ 7,781,997 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,565,929 | |
Undistributed net investment income | 1,293 | |
Accumulated undistributed net realized gain (loss) on investments | (353,057) | |
Net unrealized appreciation (depreciation) on investments | 567,832 | |
Net Assets | $ 7,781,997 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.00 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.00) | $ 54.11 | |
Class T: | $ 51.01 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.01) | $ 52.86 | |
Class C: | $ 50.97 | |
|
|
|
Income Replacement 2016: | $ 51.00 | |
|
|
|
Institutional Class: | $ 51.01 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 61,384 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 5,719 | |
Independent trustees' compensation | 15 | |
Total expenses before reductions | 5,734 | |
Expense reductions | (15) | 5,719 |
Net investment income (loss) | 55,665 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 83,221 | |
Capital gain distributions from underlying funds | 76,357 |
|
Total net realized gain (loss) |
| 159,578 |
Change in net unrealized appreciation (depreciation) on underlying funds | (42,707) | |
Net gain (loss) | 116,871 | |
Net increase (decrease) in net assets resulting from operations | $ 172,536 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,665 | $ 145,008 |
Net realized gain (loss) | 159,578 | 161,103 |
Change in net unrealized appreciation (depreciation) | (42,707) | (34,457) |
Net increase (decrease) in net assets resulting from operations | 172,536 | 271,654 |
Distributions to shareholders from net investment income | (55,814) | (145,571) |
Distributions to shareholders from net realized gain | (30,226) | (38,550) |
Total distributions | (86,040) | (184,121) |
Share transactions - net increase (decrease) | (447,885) | (1,946,210) |
Total increase (decrease) in net assets | (361,389) | (1,858,677) |
|
|
|
Net Assets | ||
Beginning of period | 8,143,386 | 10,002,063 |
End of period (including undistributed net investment income of $1,293 and undistributed net investment income of $1,442, respectively) | $ 7,781,997 | $ 8,143,386 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 | $ 47.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .331 | .736 | .821 | .831 | 1.118 | 1.233 |
Net realized and unrealized gain (loss) | .746 | .842 | 3.054 | 3.539 | (3.686) | (2.204) |
Total from investment operations | 1.077 | 1.578 | 3.875 | 4.370 | (2.568) | (.971) |
Distributions from net investment income | (.335) | (.733) | (.834) | (.830) | (1.132) | (1.129) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.537) | (.938) | (1.095) | (.950) | (1.572) | (1.269) |
Net asset value, end of period | $ 51.00 | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 | $ 47.76 |
Total Return B, C, D | 2.14% | 3.23% | 8.30% | 10.08% | (5.07)% | (2.02)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 1.30% A | 1.49% | 1.68% | 1.80% | 2.72% | 2.76% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 812 | $ 886 | $ 1,798 | $ 2,308 | $ 2,599 | $ 2,214 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 | $ 47.75 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .268 | .612 | .698 | .716 | 1.025 | 1.128 |
Net realized and unrealized gain (loss) | .745 | .847 | 3.043 | 3.540 | (3.690) | (2.219) |
Total from investment operations | 1.013 | 1.459 | 3.741 | 4.256 | (2.665) | (1.091) |
Distributions from net investment income | (.271) | (.594) | (.710) | (.716) | (1.025) | (1.019) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.473) | (.799) | (.971) | (.836) | (1.465) | (1.159) |
Net asset value, end of period | $ 51.01 | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 | $ 47.75 |
Total Return B, C, D | 2.02% | 2.98% | 8.00% | 9.81% | (5.30)% | (2.26)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.05% A | 1.24% | 1.42% | 1.55% | 2.47% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 155 | $ 194 | $ 529 | $ 638 | $ 499 | $ 673 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 | $ 47.73 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .140 | .364 | .453 | .485 | .822 | .904 |
Net realized and unrealized gain (loss) | .748 | .837 | 3.055 | 3.531 | (3.689) | (2.227) |
Total from investment operations | .888 | 1.201 | 3.508 | 4.016 | (2.867) | (1.323) |
Distributions from net investment income | (.166) | (.376) | (.447) | (.476) | (.813) | (.807) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.368) | (.581) | (.708) | (.596) | (1.253) | (.947) |
Net asset value, end of period | $ 50.97 | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 | $ 47.73 |
Total Return B, C, D | 1.77% | 2.45% | 7.49% | 9.24% | (5.76)% | (2.71)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | .55% A | .74% | .92% | 1.05% | 1.97% | 2.01% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 797 | $ 891 | $ 759 | $ 1,075 | $ 1,171 | $ 1,595 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2016
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 | $ 47.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .394 | .859 | .944 | .948 | 1.231 | 1.356 |
Net realized and unrealized gain (loss) | .747 | .838 | 3.055 | 3.539 | (3.692) | (2.217) |
Total from investment operations | 1.141 | 1.697 | 3.999 | 4.487 | (2.461) | (.861) |
Distributions from net investment income | (.399) | (.862) | (.958) | (.947) | (1.239) | (1.229) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.601) | (1.067) | (1.219) | (1.067) | (1.679) | (1.369) |
Net asset value, end of period | $ 51.00 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 | $ 47.77 |
Total Return B, C | 2.27% | 3.48% | 8.57% | 10.36% | (4.82)% | (1.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 1.55% A | 1.74% | 1.93% | 2.05% | 2.97% | 3.00% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,983 | $ 6,124 | $ 6,873 | $ 6,946 | $ 4,733 | $ 4,880 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 | $ 47.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .395 | .861 | .945 | .947 | 1.235 | 1.370 |
Net realized and unrealized gain (loss) | .756 | .836 | 3.054 | 3.530 | (3.686) | (2.231) |
Total from investment operations | 1.151 | 1.697 | 3.999 | 4.477 | (2.451) | (.861) |
Distributions from net investment income | (.399) | (.862) | (.958) | (.947) | (1.239) | (1.229) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.601) | (1.067) | (1.219) | (1.067) | (1.679) | (1.369) |
Net asset value, end of period | $ 51.01 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 | $ 47.77 |
Total Return B, C | 2.29% | 3.48% | 8.57% | 10.33% | (4.80)% | (1.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 1.55% A | 1.74% | 1.92% | 2.05% | 2.97% | 3.00% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 35 | $ 49 | $ 44 | $ 108 | $ 109 | $ 184 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 3.2 | 3.5 |
Fidelity Blue Chip Growth Fund | 2.9 | 3.3 |
Fidelity Disciplined Equity Fund | 3.4 | 3.9 |
Fidelity Equity-Income Fund | 4.5 | 5.2 |
Fidelity Series 100 Index Fund | 2.9 | 3.3 |
Fidelity Series Broad Market Opportunities Fund | 5.2 | 5.8 |
Fidelity Series Small Cap Opportunities Fund | 0.4 | 0.5 |
| 22.5 | 25.5 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 1.8 | 2.3 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 8.5 | 8.2 |
Fidelity Strategic Real Return Fund | 8.5 | 8.5 |
Fidelity Total Bond Fund | 25.3 | 24.8 |
| 42.3 | 41.5 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 16.7 | 15.3 |
Fidelity Short-Term Bond Fund | 16.7 | 15.4 |
| 33.4 | 30.7 |
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) | |||
Current | |||
| Domestic Equity Funds | 22.5% |
|
| International Equity Funds | 1.8% |
|
 | Investment Grade Fixed-Income Funds | 42.3% |
|
| Short-Term Funds | 33.4% |
|
Six months ago | |||
| Domestic Equity Funds | 25.5% |
|
| International Equity Funds | 2.3% |
|
| Investment Grade Fixed-Income Funds | 41.5% |
|
| Short-Term Funds | 30.7% |
|
Expected | |||
| Domestic Equity Funds | 21.1% |
|
| International Equity Funds | 0.8% |
|
| Investment Grade Fixed-Income Funds | 41.2% |
|
| Short-Term Funds | 36.9% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2018 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 24.3% | |||
Shares | Value | ||
Domestic Equity Funds - 22.5% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 9,146 | $ 171,860 | |
Fidelity Blue Chip Growth Fund | 3,120 | 159,857 | |
Fidelity Disciplined Equity Fund | 7,175 | 184,408 | |
Fidelity Equity-Income Fund | 4,938 | 245,514 | |
Fidelity Series 100 Index Fund | 16,229 | 159,857 | |
Fidelity Series Broad Market Opportunities Fund | 24,134 | 282,613 | |
Fidelity Series Small Cap Opportunities Fund | 2,091 | 24,551 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,228,660 | ||
International Equity Funds - 1.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 2,889 | 98,751 | |
TOTAL EQUITY FUNDS (Cost $1,201,425) |
| ||
Fixed-Income Funds - 42.3% | |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 42.3% | |||
Fidelity Government Income Fund | 44,063 | $ 462,657 | |
Fidelity Strategic Real Return Fund | 47,355 | 462,657 | |
Fidelity Total Bond Fund | 127,420 | 1,386,331 | |
TOTAL FIXED-INCOME FUNDS (Cost $2,270,067) |
| ||
Short-Term Funds - 33.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 908,400 | 908,400 | |
Fidelity Short-Term Bond Fund | 105,628 | 908,400 | |
TOTAL SHORT-TERM FUNDS (Cost $1,805,527) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,277,019) | 5,455,856 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (548) | ||
NET ASSETS - 100% | $ 5,455,308 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,277,019) - See accompanying schedule | $ 5,455,856 | |
Receivable for investments sold | 45,408 | |
Total assets | 5,501,264 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 45,405 | |
Distribution and service plan fees payable | 551 | |
Total liabilities | 45,956 | |
|
|
|
Net Assets | $ 5,455,308 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,799,074 | |
Undistributed net investment income | 1,170 | |
Accumulated undistributed net realized gain (loss) on investments | (523,773) | |
Net unrealized appreciation (depreciation) on investments | 178,837 | |
Net Assets | $ 5,455,308 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.54) | $ 54.68 | |
Class T: | $ 51.56 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.56) | $ 53.43 | |
Class C: | $ 51.49 | |
|
|
|
Income Replacement 2018: | $ 51.55 | |
|
|
|
Institutional Class: | $ 51.56 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,916 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 3,382 | |
Independent trustees' compensation | 11 | |
Total expenses before reductions | 3,393 | |
Expense reductions | (11) | 3,382 |
Net investment income (loss) | 56,534 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 26,121 | |
Capital gain distributions from underlying funds | 75,324 |
|
Total net realized gain (loss) |
| 101,445 |
Change in net unrealized appreciation (depreciation) on underlying funds | 34,855 | |
Net gain (loss) | 136,300 | |
Net increase (decrease) in net assets resulting from operations | $ 192,834 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 56,534 | $ 87,998 |
Net realized gain (loss) | 101,445 | 133,708 |
Change in net unrealized appreciation (depreciation) | 34,855 | (43,406) |
Net increase (decrease) in net assets resulting from operations | 192,834 | 178,300 |
Distributions to shareholders from net investment income | (56,450) | (87,972) |
Distributions to shareholders from net realized gain | (32,209) | (20,328) |
Total distributions | (88,659) | (108,300) |
Share transactions - net increase (decrease) | (351,855) | 348,272 |
Total increase (decrease) in net assets | (247,680) | 418,272 |
|
|
|
Net Assets | ||
Beginning of period | 5,702,988 | 5,284,716 |
End of period (including undistributed net investment income of $1,170 and undistributed net investment income of $1,086, respectively) | $ 5,455,308 | $ 5,702,988 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .474 | .774 | .836 | .836 | 1.092 | 1.163 |
Net realized and unrealized gain (loss) | 1.234 | .909 | 3.655 | 3.763 | (4.138) | (2.454) |
Total from investment operations | 1.708 | 1.683 | 4.491 | 4.599 | (3.046) | (1.291) |
Distributions from net investment income | (.469) | (.765) | (.834) | (.839) | (1.124) | (1.119) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.758) | (.963) | (1.071) | (.959) | (1.604) | (1.249) |
Net asset value, end of period | $ 51.54 | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 | $ 47.46 |
Total Return B, C, D | 3.40% | 3.45% | 9.73% | 10.80% | (6.06)% | (2.68)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 1.85% A | 1.57% | 1.71% | 1.83% | 2.69% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 720 | $ 762 | $ 784 | $ 1,147 | $ 833 | $ 1,107 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .409 | .651 | .716 | .722 | .989 | 1.075 |
Net realized and unrealized gain (loss) | 1.225 | .909 | 3.664 | 3.759 | (4.128) | (2.483) |
Total from investment operations | 1.634 | 1.560 | 4.380 | 4.481 | (3.139) | (1.408) |
Distributions from net investment income | (.405) | (.642) | (.723) | (.711) | (1.011) | (1.002) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.694) | (.840) | (.960) | (.831) | (1.491) | (1.132) |
Net asset value, end of period | $ 51.56 | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 | $ 47.46 |
Total Return B, C, D | 3.25% | 3.19% | 9.48% | 10.51% | (6.28)% | (2.91)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.60% A | 1.32% | 1.46% | 1.58% | 2.44% | 2.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 122 | $ 128 | $ 148 | $ 52 | $ 91 | $ 154 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 | $ 47.41 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .281 | .403 | .469 | .495 | .786 | .836 |
Net realized and unrealized gain (loss) | 1.221 | .912 | 3.659 | 3.760 | (4.122) | (2.476) |
Total from investment operations | 1.502 | 1.315 | 4.128 | 4.255 | (3.336) | (1.640) |
Distributions from net investment income | (.283) | (.407) | (.471) | (.505) | (.794) | (.820) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.572) | (.605) | (.708) | (.625) | (1.274) | (.950) |
Net asset value, end of period | $ 51.49 | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 | $ 47.41 |
Total Return B, C, D | 2.99% | 2.68% | 8.93% | 9.98% | (6.75)% | (3.36)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.10% A | .82% | .96% | 1.08% | 1.94% | 1.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 418 | $ 439 | $ 226 | $ 201 | $ 131 | $ 365 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2018
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .538 | .898 | .960 | .950 | 1.202 | 1.280 |
Net realized and unrealized gain (loss) | 1.233 | .908 | 3.657 | 3.761 | (4.138) | (2.469) |
Total from investment operations | 1.771 | 1.806 | 4.617 | 4.711 | (2.936) | (1.189) |
Distributions from net investment income | (.532) | (.888) | (.960) | (.951) | (1.224) | (1.221) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.821) | (1.086) | (1.197) | (1.071) | (1.704) | (1.351) |
Net asset value, end of period | $ 51.55 | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 | $ 47.46 |
Total Return B, C | 3.53% | 3.71% | 10.01% | 11.07% | (5.81)% | (2.48)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expense net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.10% A | 1.82% | 1.96% | 2.08% | 2.94% | 2.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,748 | $ 3,904 | $ 3,806 | $ 3,681 | $ 3,435 | $ 5,167 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 | $ 47.47 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .538 | .891 | .959 | .950 | 1.175 | 1.295 |
Net realized and unrealized gain (loss) | 1.233 | .915 | 3.668 | 3.761 | (4.121) | (2.474) |
Total from investment operations | 1.771 | 1.806 | 4.627 | 4.711 | (2.946) | (1.179) |
Distributions from net investment income | (.532) | (.888) | (.960) | (.951) | (1.224) | (1.221) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.821) | (1.086) | (1.197) | (1.071) | (1.704) | (1.351) |
Net asset value, end of period | $ 51.56 | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 | $ 47.47 |
Total Return B, C | 3.52% | 3.71% | 10.03% | 11.07% | (5.83)% | (2.46)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expense net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.10% A | 1.82% | 1.96% | 2.08% | 2.94% | 2.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 447 | $ 470 | $ 320 | $ 350 | $ 326 | $ 214 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2020 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.1 | 4.4 |
Fidelity Blue Chip Growth Fund | 3.8 | 4.1 |
Fidelity Disciplined Equity Fund | 4.4 | 4.9 |
Fidelity Equity-Income Fund | 5.9 | 6.5 |
Fidelity Series 100 Index Fund | 3.9 | 4.2 |
Fidelity Series Broad Market Opportunities Fund | 6.8 | 7.4 |
Fidelity Series Small Cap Opportunities Fund | 0.6 | 0.6 |
| 29.5 | 32.1 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 2.9 | 3.3 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 0.9 | 1.1 |
Fidelity Strategic Income Fund | 0.9 | 1.1 |
| 1.8 | 2.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 7.8 | 7.4 |
Fidelity Strategic Real Return Fund | 7.8 | 7.7 |
Fidelity Total Bond Fund | 23.2 | 22.6 |
| 38.8 | 37.7 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 13.5 | 12.3 |
Fidelity Short-Term Bond Fund | 13.5 | 12.4 |
| 27.0 | 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) | |||
Current | |||
| Domestic Equity Funds | 29.5% |
|
 | International Equity Funds | 2.9% |
|
 | High Yield Fixed-Income Funds | 1.8% |
|
 | Investment Grade Fixed-Income Funds | 38.8% |
|
| Short-Term Funds | 27.0% |
|
Six months ago | |||
| Domestic Equity Funds | 32.1% |
|
| International Equity Funds | 3.3% |
|
| High Yield Fixed-Income Funds | 2.2% |
|
| Investment Grade Fixed-Income Funds | 37.7% |
|
| Short-Term Funds | 24.7% |
|
Expected | |||
| Domestic Equity Funds | 27.8% |
|
| International Equity Funds | 2.7% |
|
| High Yield Fixed-Income Funds | 0.8% |
|
| Investment Grade Fixed-Income Funds | 39.9% |
|
| Short-Term Funds | 28.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2020 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 32.4% | |||
Shares | Value | ||
Domestic Equity Funds - 29.5% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,490 | $ 234,680 | |
Fidelity Blue Chip Growth Fund | 4,258 | 218,161 | |
Fidelity Disciplined Equity Fund | 9,796 | 251,769 | |
Fidelity Equity-Income Fund | 6,748 | 335,502 | |
Fidelity Series 100 Index Fund | 22,148 | 218,162 | |
Fidelity Series Broad Market Opportunities Fund | 32,931 | 385,628 | |
Fidelity Series Small Cap Opportunities Fund | 2,863 | 33,607 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,677,509 | ||
International Equity Funds - 2.9% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 4,833 | 165,188 | |
TOTAL EQUITY FUNDS (Cost $1,465,214) |
| ||
Fixed-Income Funds - 40.6% | |||
|
|
|
|
High Yield Fixed-Income Funds - 1.8% | |||
Fidelity Capital & Income Fund | 5,151 | 49,556 | |
Fidelity Strategic Income Fund | 4,370 | 49,556 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 99,112 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 38.8% | |||
Fidelity Government Income Fund | 42,151 | $ 442,589 | |
Fidelity Strategic Real Return Fund | 45,301 | 442,589 | |
Fidelity Total Bond Fund | 122,142 | 1,328,904 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 2,214,082 | ||
TOTAL FIXED-INCOME FUNDS (Cost $2,222,035) |
| ||
Short-Term Funds - 27.0% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 770,116 | 770,116 | |
Fidelity Short-Term Bond Fund | 89,548 | 770,116 | |
TOTAL SHORT-TERM FUNDS (Cost $1,524,515) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,211,764) | 5,696,123 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (423) | ||
NET ASSETS - 100% | $ 5,695,700 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2020 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,211,764) - See accompanying schedule | $ 5,696,123 | |
Receivable for investments sold | 51,919 | |
Total assets | 5,748,042 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 51,916 | |
Distribution and service plan fees payable | 426 | |
Total liabilities | 52,342 | |
|
|
|
Net Assets | $ 5,695,700 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,359,066 | |
Undistributed net investment income | 1,172 | |
Accumulated undistributed net realized gain (loss) on investments | (148,897) | |
Net unrealized appreciation (depreciation) on investments | 484,359 | |
Net Assets | $ 5,695,700 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.11 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.11) | $ 55.29 | |
Class T: | $ 52.10 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.10) | $ 53.99 | |
Class C: | $ 52.05 | |
|
|
|
Income Replacement 2020: | $ 52.11 | |
|
|
|
Institutional Class: | $ 52.11 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,856 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 2,562 | |
Independent trustees' compensation | 9 | |
Total expenses before reductions | 2,571 | |
Expense reductions | (9) | 2,562 |
Net investment income (loss) | 57,294 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 20,845 | |
Capital gain distributions from underlying funds | 65,023 |
|
Total net realized gain (loss) |
| 85,868 |
Change in net unrealized appreciation (depreciation) on underlying funds | 81,283 | |
Net gain (loss) | 167,151 | |
Net increase (decrease) in net assets resulting from operations | $ 224,445 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 57,294 | $ 73,877 |
Net realized gain (loss) | 85,868 | 43,077 |
Change in net unrealized appreciation (depreciation) | 81,283 | 31,118 |
Net increase (decrease) in net assets resulting from operations | 224,445 | 148,072 |
Distributions to shareholders from net investment income | (57,006) | (73,850) |
Distributions to shareholders from net realized gain | (25,206) | (14,681) |
Total distributions | (82,212) | (88,531) |
Share transactions - net increase (decrease) | 691,186 | 831,367 |
Total increase (decrease) in net assets | 833,419 | 890,908 |
|
|
|
Net Assets | ||
Beginning of period | 4,862,281 | 3,971,373 |
End of period (including undistributed net investment income of $1,172 and undistributed net investment income of $884, respectively) | $ 5,695,700 | $ 4,862,281 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.11 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .543 | .793 | .817 | .812 | 1.027 | 1.085 |
Net realized and unrealized gain (loss) | 1.663 | .884 | 4.128 | 3.930 | (4.465) | (2.692) |
Total from investment operations | 2.206 | 1.677 | 4.945 | 4.742 | (3.438) | (1.607) |
Distributions from net investment income | (.533) | (.794) | (.826) | (.817) | (1.032) | (1.113) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.786) | (.977) | (1.045) | (.932) | (1.392) | (1.283) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.11 |
Total Return B, C, D | 4.38% | 3.44% | 10.79% | 11.27% | (7.00)% | (3.33)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.10% A | 1.61% | 1.67% | 1.79% | 2.60% | 2.42% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 395 | $ 408 | $ 436 | $ 607 | $ 502 | $ 503 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.10 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .478 | .670 | .696 | .696 | .926 | .985 |
Net realized and unrealized gain (loss) | 1.655 | .885 | 4.135 | 3.928 | (4.460) | (2.707) |
Total from investment operations | 2.133 | 1.555 | 4.831 | 4.624 | (3.534) | (1.722) |
Distributions from net investment income | (.470) | (.672) | (.712) | (.699) | (.926) | (1.008) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.723) | (.855) | (.931) | (.814) | (1.286) | (1.178) |
Net asset value, end of period | $ 52.10 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.10 |
Total Return B, C, D | 4.24% | 3.18% | 10.54% | 10.98% | (7.23)% | (3.56)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.85% A | 1.36% | 1.42% | 1.54% | 2.35% | 2.17% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 188 | $ 189 | $ 196 | $ 134 | $ 171 | $ 187 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 | $ 47.08 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .348 | .422 | .449 | .473 | .736 | .755 |
Net realized and unrealized gain (loss) | 1.652 | .876 | 4.132 | 3.923 | (4.471) | (2.699) |
Total from investment operations | 2.000 | 1.298 | 4.581 | 4.396 | (3.735) | (1.944) |
Distributions from net investment income | (.347) | (.435) | (.452) | (.481) | (.725) | (.806) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.600) | (.618) | (.671) | (.596) | (1.085) | (.976) |
Net asset value, end of period | $ 52.05 | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 | $ 47.08 |
Total Return B, C, D | 3.97% | 2.65% | 9.98% | 10.43% | (7.70)% | (3.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.35% A | .86% | .92% | 1.05% | 1.85% | 1.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 318 | $ 306 | $ 228 | $ 295 | $ 221 | $ 275 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2020
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .606 | .917 | .942 | .925 | 1.125 | 1.190 |
Net realized and unrealized gain (loss) | 1.665 | .874 | 4.138 | 3.919 | (4.464) | (2.677) |
Total from investment operations | 2.271 | 1.791 | 5.080 | 4.844 | (3.339) | (1.487) |
Distributions from net investment income | (.598) | (.918) | (.951) | (.929) | (1.131) | (1.223) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.851) | (1.101) | (1.170) | (1.044) | (1.491) | (1.393) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 |
Total Return B, C | 4.52% | 3.68% | 11.10% | 11.52% | (6.76)% | (3.10)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.35% A | 1.86% | 1.92% | 2.04% | 2.86% | 2.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,781 | $ 3,945 | $ 3,079 | $ 2,225 | $ 1,624 | $ 1,233 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .607 | .917 | .939 | .928 | 1.138 | 1.215 |
Net realized and unrealized gain (loss) | 1.664 | .874 | 4.141 | 3.916 | (4.477) | (2.702) |
Total from investment operations | 2.271 | 1.791 | 5.080 | 4.844 | (3.339) | (1.487) |
Distributions from net investment income | (.598) | (.918) | (.951) | (.929) | (1.131) | (1.223) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.851) | (1.101) | (1.170) | (1.044) | (1.491) | (1.393) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 |
Total Return B, C | 4.52% | 3.68% | 11.10% | 11.52% | (6.76)% | (3.10)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.35% A | 1.86% | 1.92% | 2.04% | 2.85% | 2.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14 | $ 13 | $ 32 | $ 49 | $ 95 | $ 163 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.9 | 5.1 |
Fidelity Blue Chip Growth Fund | 4.5 | 4.8 |
Fidelity Disciplined Equity Fund | 5.2 | 5.6 |
Fidelity Equity-Income Fund | 7.0 | 7.5 |
Fidelity Series 100 Index Fund | 4.5 | 4.8 |
Fidelity Series Broad Market Opportunities Fund | 8.0 | 8.5 |
Fidelity Series Small Cap Opportunities Fund | 0.7 | 0.7 |
| 34.8 | 37.0 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 3.9 | 4.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 1.4 | 1.6 |
Fidelity Strategic Income Fund | 1.4 | 1.5 |
| 2.8 | 3.1 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 7.2 | 6.9 |
Fidelity Strategic Real Return Fund | 7.2 | 7.2 |
Fidelity Total Bond Fund | 21.5 | 20.9 |
| 35.9 | 35.0 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 11.3 | 10.3 |
Fidelity Short-Term Bond Fund | 11.3 | 10.4 |
| 22.6 | 20.7 |
| ||
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) | |||
Current | |||
| Domestic Equity Funds | 34.8% |
|
| International Equity Funds | 3.9% |
|
| High Yield Fixed-Income Funds | 2.8% |
|
| Investment Grade Fixed-Income Funds | 35.9% |
|
| Short-Term Funds | 22.6% |
|
Six months ago | |||
| Domestic Equity Funds | 37.0% |
|
| International Equity Funds | 4.2% |
|
| High Yield Fixed-Income Funds | 3.1% |
|
| Investment Grade Fixed-Income Funds | 35.0% |
|
| Short-Term Funds | 20.7% |
|
Expected | |||
| Domestic Equity Funds | 33.6% |
|
| International Equity Funds | 3.6% |
|
| High Yield Fixed-Income Funds | 2.6% |
|
| Investment Grade Fixed-Income Funds | 36.7% |
|
| Short-Term Funds | 23.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2022 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 38.7% | |||
Shares | Value | ||
Domestic Equity Funds - 34.8% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,210 | $ 229,433 | |
Fidelity Blue Chip Growth Fund | 4,166 | 213,415 | |
Fidelity Disciplined Equity Fund | 9,569 | 245,922 | |
Fidelity Equity-Income Fund | 6,595 | 327,896 | |
Fidelity Series 100 Index Fund | 21,667 | 213,415 | |
Fidelity Series Broad Market Opportunities Fund | 32,226 | 377,363 | |
Fidelity Series Small Cap Opportunities Fund | 2,809 | 32,978 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,640,422 | ||
International Equity Funds - 3.9% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 5,307 | 181,379 | |
TOTAL EQUITY FUNDS (Cost $1,715,208) |
| ||
Fixed-Income Funds - 38.7% | |||
|
|
|
|
High Yield Fixed-Income Funds - 2.8% | |||
Fidelity Capital & Income Fund | 6,856 | 65,956 | |
Fidelity Strategic Income Fund | 5,816 | 65,956 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 131,912 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 35.9% | |||
Fidelity Government Income Fund | 32,350 | $ 339,674 | |
Fidelity Strategic Real Return Fund | 34,767 | 339,674 | |
Fidelity Total Bond Fund | 93,487 | 1,017,137 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,696,485 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,828,736) |
| ||
Short-Term Funds - 22.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 530,475 | 530,475 | |
Fidelity Short-Term Bond Fund | 61,683 | 530,475 | |
TOTAL SHORT-TERM FUNDS (Cost $1,057,428) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $4,601,372) | 4,711,148 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (104) | ||
NET ASSETS - 100% | $ 4,711,044 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $4,601,372) - See accompanying schedule | $ 4,711,148 | |
Cash |
| 1 |
Receivable for investments sold | 35,462 | |
Total assets | 4,746,611 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 33,462 | |
Payable for fund shares redeemed | 2,000 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 35,567 | |
|
|
|
Net Assets | $ 4,711,044 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,161,057 | |
Undistributed net investment income | 1,042 | |
Accumulated undistributed net realized gain (loss) on investments | (560,831) | |
Net unrealized appreciation (depreciation) on investments | 109,776 | |
Net Assets | $ 4,711,044 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.21 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.21) | $ 55.40 | |
Class T: | $ 52.26 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.26) | $ 54.16 | |
Class C: | $ 52.22 | |
|
|
|
Income Replacement 2022: | $ 52.20 | |
|
|
|
Institutional Class: | $ 52.19 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 56,371 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 635 | |
Independent trustees' compensation | 8 | |
Total expenses before reductions | 643 | |
Expense reductions | (8) | 635 |
Net investment income (loss) | 55,736 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 15,103 | |
Capital gain distributions from underlying funds | 57,093 |
|
Total net realized gain (loss) |
| 72,196 |
Change in net unrealized appreciation (depreciation) on underlying funds | 100,398 | |
Net gain (loss) | 172,594 | |
Net increase (decrease) in net assets resulting from operations | $ 228,330 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,736 | $ 64,238 |
Net realized gain (loss) | 72,196 | 53,984 |
Change in net unrealized appreciation (depreciation) | 100,398 | 17,516 |
Net increase (decrease) in net assets resulting from operations | 228,330 | 135,738 |
Distributions to shareholders from net investment income | (55,508) | (64,181) |
Distributions to shareholders from net realized gain | (22,022) | (10,962) |
Total distributions | (77,530) | (75,143) |
Share transactions - net increase (decrease) | 245,517 | 858,131 |
Total increase (decrease) in net assets | 396,317 | 918,726 |
|
|
|
Net Assets | ||
Beginning of period | 4,314,727 | 3,396,001 |
End of period (including undistributed net investment income of $1,042 and undistributed net investment income of $814, respectively) | $ 4,711,044 | $ 4,314,727 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 | $ 47.05 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .585 | .783 | .817 | .815 | 1.035 | 1.087 |
Net realized and unrealized gain (loss) | 1.979 | .842 | 4.431 | 3.980 | (4.739) | (2.853) |
Total from investment operations | 2.564 | 1.625 | 5.248 | 4.795 | (3.704) | (1.766) |
Distributions from net investment income | (.560) | (.784) | (.824) | (.793) | (1.056) | (1.014) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.814) | (.955) | (1.038) | (1.085) | (1.476) | (1.184) |
Net asset value, end of period | $ 52.21 | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 | $ 47.05 |
Total Return B, C, D | 5.12% | 3.35% | 11.58% | 11.53% | (7.53)% | (3.64)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .26% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .26% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .26% | .25% A |
Net investment income (loss) | 2.27% A | 1.59% | 1.67% | 1.82% | 2.62% | 2.41% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 390 | $ 386 | $ 72 | $ 42 | $ 122 | $ 289 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 | $ 47.04 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .528 | .653 | .691 | .702 | .933 | .982 |
Net realized and unrealized gain (loss) | 1.963 | .871 | 4.434 | 3.985 | (4.736) | (2.862) |
Total from investment operations | 2.491 | 1.524 | 5.125 | 4.687 | (3.803) | (1.880) |
Distributions from net investment income | (.507) | (.643) | (.661) | (.685) | (.957) | (.910) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.761) | (.814) | (.875) | (.977) | (1.377) | (1.080) |
Net asset value, end of period | $ 52.26 | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 | $ 47.04 |
Total Return B, C, D | 4.97% | 3.13% | 11.30% | 11.27% | (7.77)% | (3.87)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Expenses net of fee waivers, if any | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Expenses net of all reductions | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Net investment income (loss) | 2.03% A | 1.34% | 1.43% | 1.57% | 2.37% | 2.16% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1 | $ 5 | $ 23 | $ 77 | $ 112 | $ 187 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 | $ 47.04 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .393 | .411 | .447 | .477 | .737 | .760 |
Net realized and unrealized gain (loss) | 1.971 | .845 | 4.434 | 3.989 | (4.745) | (2.860) |
Total from investment operations | 2.364 | 1.256 | 4.881 | 4.466 | (4.008) | (2.100) |
Distributions from net investment income | (.380) | (.405) | (.437) | (.454) | (.752) | (.690) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.634) | (.576) | (.651) | (.746) | (1.172) | (.860) |
Net asset value, end of period | $ 52.22 | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 | $ 47.04 |
Total Return B, C, D | 4.71% | 2.58% | 10.74% | 10.72% | (8.25)% | (4.29)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Net investment income (loss) | 1.53% A | .84% | .92% | 1.07% | 1.87% | 1.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 29 | $ 28 | $ 32 | $ 44 | $ 69 | $ 120 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2022
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 | $ 47.06 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .649 | .901 | .937 | .925 | 1.144 | 1.190 |
Net realized and unrealized gain (loss) | 1.969 | .849 | 4.438 | 3.978 | (4.752) | (2.836) |
Total from investment operations | 2.618 | 1.750 | 5.375 | 4.903 | (3.608) | (1.646) |
Distributions from net investment income | (.624) | (.899) | (.941) | (.921) | (1.162) | (1.124) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.878) | (1.070) | (1.155) | (1.213) | (1.582) | (1.294) |
Net asset value, end of period | $ 52.20 | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 | $ 47.06 |
Total Return B, C | 5.23% | 3.62% | 11.87% | 11.80% | (7.30)% | (3.41)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.52% A | 1.84% | 1.92% | 2.07% | 2.87% | 2.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,288 | $ 3,892 | $ 3,266 | $ 2,395 | $ 2,353 | $ 4,666 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 | $ 47.06 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .645 | .900 | .937 | .918 | 1.131 | 1.208 |
Net realized and unrealized gain (loss) | 1.973 | .850 | 4.428 | 3.995 | (4.749) | (2.854) |
Total from investment operations | 2.618 | 1.750 | 5.365 | 4.913 | (3.618) | (1.646) |
Distributions from net investment income | (.624) | (.899) | (.941) | (.921) | (1.162) | (1.124) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.878) | (1.070) | (1.155) | (1.213) | (1.582) | (1.294) |
Net asset value, end of period | $ 52.19 | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 | $ 47.06 |
Total Return B, C | 5.23% | 3.62% | 11.85% | 11.83% | (7.33)% | (3.41)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.52% A | 1.84% | 1.92% | 2.07% | 2.87% | 2.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4 | $ 3 | $ 4 | $ 5 | $ 166 | $ 277 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.4 | 5.6 |
Fidelity Blue Chip Growth Fund | 5.0 | 5.2 |
Fidelity Disciplined Equity Fund | 5.8 | 6.1 |
Fidelity Equity-Income Fund | 7.8 | 8.1 |
Fidelity Series 100 Index Fund | 5.0 | 5.3 |
Fidelity Series Broad Market Opportunities Fund | 8.9 | 9.2 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 38.7 | 40.3 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 4.8 | 5.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 1.8 | 1.9 |
Fidelity Strategic Income Fund | 1.8 | 1.8 |
| 3.6 | 3.7 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.8 | 6.5 |
Fidelity Strategic Real Return Fund | 6.8 | 6.7 |
Fidelity Total Bond Fund | 20.1 | 19.7 |
| 33.7 | 32.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 9.6 | 8.9 |
Fidelity Short-Term Bond Fund | 9.6 | 9.0 |
| 19.2 | 17.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 38.7% |
|
| International Equity Funds | 4.8% |
|
| High Yield Fixed-Income Funds | 3.6% |
|
| Investment Grade Fixed-Income Funds | 33.7% |
|
| Short-Term Funds | 19.2% |
|
Six months ago | |||
| Domestic Equity Funds | 40.3% |
|
| International Equity Funds | 5.2% |
|
| High Yield Fixed-Income Funds | 3.7% |
|
| Investment Grade Fixed-Income Funds | 32.9% |
|
| Short-Term Funds | 17.9% |
|
Expected | |||
| Domestic Equity Funds | 37.9% |
|
| International Equity Funds | 4.5% |
|
| High Yield Fixed-Income Funds | 3.4% |
|
| Investment Grade Fixed-Income Funds | 34.3% |
|
| Short-Term Funds | 19.9% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2024 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 43.5% | |||
Shares | Value | ||
Domestic Equity Funds - 38.7% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 7,284 | $ 136,864 | |
Fidelity Blue Chip Growth Fund | 2,480 | 127,034 | |
Fidelity Disciplined Equity Fund | 5,698 | 146,442 | |
Fidelity Equity-Income Fund | 3,929 | 195,340 | |
Fidelity Series 100 Index Fund | 12,897 | 127,034 | |
Fidelity Series Broad Market Opportunities Fund | 19,178 | 224,578 | |
Fidelity Series Small Cap Opportunities Fund | 1,675 | 19,660 | |
TOTAL DOMESTIC EQUITY FUNDS | 976,952 | ||
International Equity Funds - 4.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 3,518 | 120,229 | |
TOTAL EQUITY FUNDS (Cost $989,038) |
| ||
Fixed-Income Funds - 37.3% | |||
|
|
|
|
High Yield Fixed-Income Funds - 3.6% | |||
Fidelity Capital & Income Fund | 4,611 | 44,361 | |
Fidelity Strategic Income Fund | 3,912 | 44,361 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 88,722 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 33.7% | |||
Fidelity Government Income Fund | 16,203 | $ 170,135 | |
Fidelity Strategic Real Return Fund | 17,414 | 170,135 | |
Fidelity Total Bond Fund | 47,005 | 511,414 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 851,684 | ||
TOTAL FIXED-INCOME FUNDS (Cost $933,166) |
| ||
Short-Term Funds - 19.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 241,466 | 241,466 | |
Fidelity Short-Term Bond Fund | 28,077 | 241,466 | |
TOTAL SHORT-TERM FUNDS (Cost $480,762) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,402,966) | 2,520,519 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (218) | ||
NET ASSETS - 100% | $ 2,520,301 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,402,966) - See accompanying schedule | $ 2,520,519 | |
Receivable for investments sold | 14,034 | |
Receivable for fund shares sold | 7,424 | |
Total assets | 2,541,977 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 21,436 | |
Distribution and service plan fees payable | 240 | |
Total liabilities | 21,676 | |
|
|
|
Net Assets | $ 2,520,301 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,454,329 | |
Undistributed net investment income | 468 | |
Accumulated undistributed net realized gain (loss) on investments | (52,049) | |
Net unrealized appreciation (depreciation) on investments | 117,553 | |
Net Assets | $ 2,520,301 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.44 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.44) | $ 55.64 | |
Class T: | $ 52.45 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.45) | $ 54.35 | |
Class C: | $ 52.37 | |
|
|
|
Income Replacement 2024: | $ 52.45 | |
|
|
|
Institutional Class: | $ 52.44 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 29,548 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,329 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 1,333 | |
Expense reductions | (4) | 1,329 |
Net investment income (loss) | 28,219 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 8,051 | |
Capital gain distributions from underlying funds | 29,056 |
|
Total net realized gain (loss) |
| 37,107 |
Change in net unrealized appreciation (depreciation) on underlying funds | 53,821 | |
Net gain (loss) | 90,928 | |
Net increase (decrease) in net assets resulting from operations | $ 119,147 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 28,219 | $ 32,792 |
Net realized gain (loss) | 37,107 | 92,176 |
Change in net unrealized appreciation (depreciation) | 53,821 | (53,738) |
Net increase (decrease) in net assets resulting from operations | 119,147 | 71,230 |
Distributions to shareholders from net investment income | (28,099) | (32,783) |
Distributions to shareholders from net realized gain | (9,399) | (6,730) |
Total distributions | (37,498) | (39,513) |
Share transactions - net increase (decrease) | 335,144 | 181,392 |
Total increase (decrease) in net assets | 416,793 | 213,109 |
|
|
|
Net Assets | ||
Beginning of period | 2,103,508 | 1,890,399 |
End of period (including undistributed net investment income of $468 and undistributed net investment income of $348, respectively) | $ 2,520,301 | $ 2,103,508 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 | $ 46.97 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .615 | .821 | .809 | .811 | 1.014 | 1.063 |
Net realized and unrealized gain (loss) | 2.227 | .771 | 4.667 | 4.020 | (5.004) | (2.884) |
Total from investment operations | 2.842 | 1.592 | 5.476 | 4.831 | (3.990) | (1.821) |
Distributions from net investment income | (.661) | (.794) | (.819) | (.791) | (1.020) | (1.039) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.882) | (.962) | (1.036) | (.901) | (1.500) | (1.209) |
Net asset value, end of period | $ 52.44 | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 | $ 46.97 |
Total Return B, C, D | 5.68% | 3.29% | 12.13% | 11.70% | (8.10)% | (3.77)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.39% A | 1.68% | 1.66% | 1.82% | 2.62% | 2.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 408 | $ 213 | $ 187 | $ 260 | $ 287 | $ 286 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, |
| |||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 | $ 46.97 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .553 | .699 | .685 | .701 | .919 | .966 |
Net realized and unrealized gain (loss) | 2.226 | .769 | 4.672 | 4.025 | (5.010) | (2.903) |
Total from investment operations | 2.779 | 1.468 | 5.357 | 4.726 | (4.091) | (1.937) |
Distributions from net investment income | (.598) | (.680) | (.690) | (.676) | (.919) | (.923) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.819) | (.848) | (.907) | (.786) | (1.399) | (1.093) |
Net asset value, end of period | $ 52.45 | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 | $ 46.97 |
Total Return B, C, D | 5.55% | 3.03% | 11.85% | 11.43% | (8.34)% | (3.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.14% | 1.43% | 1.41% | 1.57% | 2.37% | 2.11% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 178 | $ 175 | $ 40 | $ 54 | $ 69 | $ 96 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 | $ 46.93 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .426 | .454 | .443 | .476 | .726 | .728 |
Net realized and unrealized gain (loss) | 2.222 | .761 | 4.668 | 4.020 | (5.005) | (2.903) |
Total from investment operations | 2.648 | 1.215 | 5.111 | 4.496 | (4.279) | (2.175) |
Distributions from net investment income | (.487) | (.437) | (.454) | (.456) | (.721) | (.725) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.708) | (.605) | (.671) | (.566) | (1.201) | (.895) |
Net asset value, end of period | $ 52.37 | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 | $ 46.93 |
Total Return B, C, D | 5.29% | 2.50% | 11.30% | 10.87% | (8.80)% | (4.45)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.65% A | .93% | .91% | 1.07% | 1.87% | 1.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 110 | $ 170 | $ 172 | $ 159 | $ 147 | $ 233 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2024
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 | $ 46.98 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .682 | .942 | .933 | .924 | 1.118 | 1.166 |
Net realized and unrealized gain (loss) | 2.224 | .775 | 4.668 | 4.020 | (5.011) | (2.868) |
Total from investment operations | 2.906 | 1.717 | 5.601 | 4.944 | (3.893) | (1.702) |
Distributions from net investment income | (.725) | (.919) | (.944) | (.904) | (1.117) | (1.148) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.946) | (1.087) | (1.161) | (1.014) | (1.597) | (1.318) |
Net asset value, end of period | $ 52.45 | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 | $ 46.98 |
Total Return B, C | 5.81% | 3.55% | 12.41% | 11.98% | (7.87)% | (3.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.64% A | 1.93% | 1.91% | 2.07% | 2.87% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,799 | $ 1,521 | $ 1,463 | $ 1,026 | $ 749 | $ 714 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 | $ 46.98 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .682 | .944 | .930 | .922 | 1.119 | 1.194 |
Net realized and unrealized gain (loss) | 2.224 | .763 | 4.671 | 4.032 | (5.022) | (2.896) |
Total from investment operations | 2.906 | 1.707 | 5.601 | 4.954 | (3.903) | (1.702) |
Distributions from net investment income | (.725) | (.919) | (.944) | (.904) | (1.117) | (1.148) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.946) | (1.087) | (1.161) | (1.014) | (1.597) | (1.318) |
Net asset value, end of period | $ 52.44 | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 | $ 46.98 |
Total Return B, C | 5.81% | 3.53% | 12.41% | 12.00% | (7.89)% | (3.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.64% A | 1.93% | 1.91% | 2.07% | 2.87% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 25 | $ 28 | $ 37 | $ 57 | $ 97 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2026 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.8 | 5.9 |
Fidelity Blue Chip Growth Fund | 5.4 | 5.5 |
Fidelity Disciplined Equity Fund | 6.2 | 6.5 |
Fidelity Equity-Income Fund | 8.2 | 8.6 |
Fidelity Series 100 Index Fund | 5.3 | 5.6 |
Fidelity Series Broad Market Opportunities Fund | 9.5 | 9.7 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 41.2 | 42.6 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 5.6 | 6.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.0 | 2.1 |
Fidelity Strategic Income Fund | 2.0 | 2.1 |
| 4.0 | 4.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.5 | 6.1 |
Fidelity Strategic Real Return Fund | 6.5 | 6.4 |
Fidelity Total Bond Fund | 19.3 | 18.7 |
| 32.3 | 31.2 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 8.4 | 8.0 |
Fidelity Short-Term Bond Fund | 8.5 | 8.0 |
| 16.9 | 16.0 |
| ||
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) | |||
Current | |||
| Domestic Equity Funds | 41.2% |
|
| International Equity Funds | 5.6% |
|
| High Yield Fixed-Income Funds | 4.0% |
|
| Investment Grade Fixed-Income Funds | 32.3% |
|
| Short-Term Funds | 16.9% |
|
Six months ago | |||
| Domestic Equity Funds | 42.6% |
|
| International Equity Funds | 6.0% |
|
| High Yield Fixed-Income Funds | 4.2% |
|
| Investment Grade Fixed-Income Funds | 31.2% |
|
| Short-Term Funds | 16.0% |
|
Expected | |||
| Domestic Equity Funds | 40.7% |
|
| International Equity Funds | 5.4% |
|
| High Yield Fixed-Income Funds | 3.9% |
|
| Investment Grade Fixed-Income Funds | 32.5% |
|
| Short-Term Funds | 17.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2026 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 46.8% | |||
Shares | Value | ||
Domestic Equity Funds - 41.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5,759 | $ 108,213 | |
Fidelity Blue Chip Growth Fund | 1,962 | 100,524 | |
Fidelity Disciplined Equity Fund | 4,510 | 115,902 | |
Fidelity Equity-Income Fund | 3,112 | 154,724 | |
Fidelity Series 100 Index Fund | 10,205 | 100,524 | |
Fidelity Series Broad Market Opportunities Fund | 15,183 | 177,792 | |
Fidelity Series Small Cap Opportunities Fund | 1,310 | 15,379 | |
TOTAL DOMESTIC EQUITY FUNDS | 773,058 | ||
International Equity Funds - 5.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 3,073 | 105,025 | |
TOTAL EQUITY FUNDS (Cost $802,208) |
| ||
Fixed-Income Funds - 36.3% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.0% | |||
Fidelity Capital & Income Fund | 3,919 | 37,696 | |
Fidelity Strategic Income Fund | 3,324 | 37,696 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 75,392 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 32.3% | |||
Fidelity Government Income Fund | 11,503 | $ 120,779 | |
Fidelity Strategic Real Return Fund | 12,362 | 120,779 | |
Fidelity Total Bond Fund | 33,337 | 362,710 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 604,268 | ||
TOTAL FIXED-INCOME FUNDS (Cost $683,953) |
| ||
Short-Term Funds - 16.9% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 158,651 | 158,651 | |
Fidelity Short-Term Bond Fund | 18,471 | 158,850 | |
TOTAL SHORT-TERM FUNDS (Cost $316,462) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,802,623) | 1,875,244 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (105) | ||
NET ASSETS - 100% | $ 1,875,139 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2026 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $1,802,623) - See accompanying schedule | $ 1,875,244 | |
Cash |
| 1 |
Receivable for investments sold | 15,125 | |
Other affiliated receivables | 4 | |
Total assets | 1,890,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,778 | |
Payable for fund shares redeemed | 2,353 | |
Distribution and service plan fees payable | 104 | |
Total liabilities | 15,235 | |
|
|
|
Net Assets | $ 1,875,139 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,999,650 | |
Undistributed net investment income | 381 | |
Accumulated undistributed net realized gain (loss) on investments | (197,513) | |
Net unrealized appreciation (depreciation) on investments | 72,621 | |
Net Assets | $ 1,875,139 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.24 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.24) | $ 55.43 | |
Class T: | $ 52.26 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.26) | $ 54.16 | |
Class C: | $ 52.26 | |
|
|
|
Income Replacement 2026: | $ 52.25 | |
|
|
|
Institutional Class: | $ 52.25 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 27,178 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 717 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 721 | |
Expense reductions | (4) | 717 |
Net investment income (loss) | 26,461 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 2,413 | |
Capital gain distributions from underlying funds | 24,755 |
|
Total net realized gain (loss) |
| 27,168 |
Change in net unrealized appreciation (depreciation) on underlying funds | 65,141 | |
Net gain (loss) | 92,309 | |
Net increase (decrease) in net assets resulting from operations | $ 118,770 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 26,461 | $ 34,853 |
Net realized gain (loss) | 27,168 | 45,033 |
Change in net unrealized appreciation (depreciation) | 65,141 | (33,218) |
Net increase (decrease) in net assets resulting from operations | 118,770 | 46,668 |
Distributions to shareholders from net investment income | (26,390) | (34,935) |
Distributions to shareholders from net realized gain | (8,863) | (6,646) |
Total distributions | (35,253) | (41,581) |
Share transactions - net increase (decrease) | 12,554 | (342,188) |
Total increase (decrease) in net assets | 96,071 | (337,101) |
|
|
|
Net Assets | ||
Beginning of period | 1,779,068 | 2,116,169 |
End of period (including undistributed net investment income of $381 and undistributed net investment income of $310, respectively) | $ 1,875,139 | $ 1,779,068 |
Financial Highlights - Class A
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 | $ 46.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .656 | .793 | .750 | .743 | 1.042 | 1.076 |
Net realized and unrealized gain (loss) | 2.364 | .712 | 4.846 | 4.098 | (5.184) | (3.105) |
Total from investment operations | 3.020 | 1.505 | 5.596 | 4.841 | (4.142) | (2.029) |
Distributions from net investment income | (.643) | (.789) | (.796) | (.771) | (1.028) | (1.031) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.870) | (.945) | (.996) | (.881) | (1.648) | (1.211) |
Net asset value, end of period | $ 52.24 | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 | $ 46.76 |
Total Return B, C, D | 6.08% | 3.13% | 12.52% | 11.87% | (8.56)% | (4.19)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.57% A | 1.64% | 1.55% | 1.68% | 2.70% | 2.36% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 305 | $ 139 | $ 108 | $ 45 | $ 69 | $ 131 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .603 | .668 | .630 | .638 | .944 | .966 |
Net realized and unrealized gain (loss) | 2.361 | .713 | 4.851 | 4.092 | (5.184) | (3.110) |
Total from investment operations | 2.964 | 1.381 | 5.481 | 4.730 | (4.240) | (2.144) |
Distributions from net investment income | (.557) | (.675) | (.671) | (.670) | (.930) | (.916) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.784) | (.831) | (.871) | (.780) | (1.550) | (1.096) |
Net asset value, end of period | $ 52.26 | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.76 |
Total Return B, C, D | 5.96% | 2.87% | 12.26% | 11.59% | (8.79)% | (4.41)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.32% A | 1.39% | 1.30% | 1.44% | 2.45% | 2.11% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 77 | $ 298 | $ 130 | $ 116 | $ 55 | $ 96 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 | $ 46.72 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .455 | .430 | .387 | .412 | .757 | .723 |
Net realized and unrealized gain (loss) | 2.376 | .730 | 4.848 | 4.087 | (5.183) | (3.090) |
Total from investment operations | 2.831 | 1.160 | 5.235 | 4.499 | (4.426) | (2.367) |
Distributions from net investment income | (.464) | (.374) | (.435) | (.449) | (.724) | (.733) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.691) | (.530) | (.635) | (.559) | (1.344) | (.913) |
Net asset value, end of period | $ 52.26 | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 | $ 46.72 |
Total Return B, C, D | 5.69% | 2.40% | 11.70% | 11.01% | (9.25)% | (4.85)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.79% A | .89% | .80% | .94% | 1.95% | 1.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10 | $ 9 | $ 184 | $ 174 | $ 183 | $ 485 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2026
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .723 | .913 | .878 | .856 | 1.138 | 1.168 |
Net realized and unrealized gain (loss) | 2.369 | .711 | 4.844 | 4.091 | (5.190) | (3.079) |
Total from investment operations | 3.092 | 1.624 | 5.722 | 4.947 | (4.052) | (1.911) |
Distributions from net investment income | (.705) | (.908) | (.912) | (.887) | (1.128) | (1.139) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.932) | (1.064) | (1.112) | (.997) | (1.748) | (1.319) |
Net asset value, end of period | $ 52.25 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 |
Total Return B, C | 6.23% | 3.39% | 12.82% | 12.14% | (8.34)% | (3.96)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.82% A | 1.88% | 1.80% | 1.94% | 2.95% | 2.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,457 | $ 1,309 | $ 1,666 | $ 622 | $ 357 | $ 783 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.54 | $ 44.92 | $ 40.97 | $ 46.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .723 | .912 | .870 | .855 | 1.136 | 1.196 |
Net realized and unrealized gain (loss) | 2.369 | .712 | 4.852 | 4.092 | (5.188) | (3.107) |
Total from investment operations | 3.092 | 1.624 | 5.722 | 4.947 | (4.052) | (1.911) |
Distributions from net investment income | (.705) | (.908) | (.912) | (.887) | (1.128) | (1.139) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.932) | (1.064) | (1.112) | (.997) | (1.748) | (1.319) |
Net asset value, end of period | $ 52.25 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 |
Total Return B, C | 6.23% | 3.39% | 12.82% | 12.14% | (8.34)% | (3.96)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.82% A | 1.88% | 1.80% | 1.94% | 2.95% | 2.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 27 | $ 36 | $ 56 | $ 96 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2028 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.0 | 6.1 |
Fidelity Blue Chip Growth Fund | 5.6 | 5.6 |
Fidelity Disciplined Equity Fund | 6.4 | 6.7 |
Fidelity Equity-Income Fund | 8.6 | 8.9 |
Fidelity Series 100 Index Fund | 5.6 | 5.8 |
Fidelity Series Broad Market Opportunities Fund | 9.9 | 10.1 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 43.0 | 44.1 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 6.4 | 6.8 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.2 | 2.3 |
Fidelity Strategic Income Fund | 2.2 | 2.2 |
| 4.4 | 4.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.1 | 5.9 |
Fidelity Strategic Real Return Fund | 6.1 | 6.1 |
Fidelity Total Bond Fund | 18.4 | 17.9 |
| 30.6 | 29.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 7.8 | 7.3 |
Fidelity Short-Term Bond Fund | 7.8 | 7.4 |
| 15.6 | 14.7 |
| ||
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 44.1% |
|
| International Equity Funds | 6.8% |
|
| High Yield Fixed-Income Funds | 4.5% |
|
| Investment Grade Fixed-Income Funds | 29.9% |
|
| Short-Term Funds | 14.7% |
|
Expected | |||
| Domestic Equity Funds | 42.6% |
|
| International Equity Funds | 6.2% |
|
| High Yield Fixed-Income Funds | 4.3% |
|
| Investment Grade Fixed-Income Funds | 30.9% |
|
| Short-Term Funds | 16.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2028 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 49.4% | |||
Shares | Value | ||
Domestic Equity Funds - 43.0% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 20,185 | $ 379,285 | |
Fidelity Blue Chip Growth Fund | 6,874 | 352,148 | |
Fidelity Disciplined Equity Fund | 15,814 | 406,422 | |
Fidelity Equity-Income Fund | 10,903 | 542,106 | |
Fidelity Series 100 Index Fund | 35,751 | 352,148 | |
Fidelity Series Broad Market Opportunities Fund | 53,246 | 623,516 | |
Fidelity Series Small Cap Opportunities Fund | 4,623 | 54,274 | |
TOTAL DOMESTIC EQUITY FUNDS | 2,709,899 | ||
International Equity Funds - 6.4% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 11,817 | 403,897 | |
TOTAL EQUITY FUNDS (Cost $2,742,362) |
| ||
Fixed-Income Funds - 35.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.4% | |||
Fidelity Capital & Income Fund | 14,432 | 138,840 | |
Fidelity Strategic Income Fund | 12,243 | 138,840 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 277,680 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 30.6% | |||
Fidelity Government Income Fund | 36,783 | $ 386,227 | |
Fidelity Strategic Real Return Fund | 39,532 | 386,227 | |
Fidelity Total Bond Fund | 106,612 | 1,159,939 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,932,393 | ||
TOTAL FIXED-INCOME FUNDS (Cost $2,157,389) |
| ||
Short-Term Funds - 15.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 493,512 | 493,512 | |
Fidelity Short-Term Bond Fund | 57,385 | 493,512 | |
TOTAL SHORT-TERM FUNDS (Cost $978,686) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,878,437) | 6,310,893 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (100) | ||
NET ASSETS - 100% | $ 6,310,793 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2028 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,878,437) - See accompanying schedule | $ 6,310,893 | |
Cash |
| 2 |
Receivable for investments sold | 39,032 | |
Total assets | 6,349,927 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 39,029 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 39,134 | |
|
|
|
Net Assets | $ 6,310,793 | |
Net Assets consist of: |
| |
Paid in capital | $ 6,389,577 | |
Undistributed net investment income | 1,231 | |
Accumulated undistributed net realized gain (loss) on investments | (512,471) | |
Net unrealized appreciation (depreciation) on investments | 432,456 | |
Net Assets | $ 6,310,793 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.76 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.76) | $ 55.98 | |
Class T: | $ 52.78 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.78) | $ 54.69 | |
Class C: | $ 52.75 | |
|
|
|
Income Replacement 2028: | $ 52.76 | |
|
|
|
Institutional Class: | $ 52.76 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 84,352 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 644 | |
Independent trustees' compensation | 11 | |
Total expenses before reductions | 655 | |
Expense reductions | (11) | 644 |
Net investment income (loss) | 83,708 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 16,736 | |
Capital gain distributions from underlying funds | 74,432 |
|
Total net realized gain (loss) |
| 91,168 |
Change in net unrealized appreciation (depreciation) on underlying funds | 205,577 | |
Net gain (loss) | 296,745 | |
Net increase (decrease) in net assets resulting from operations | $ 380,453 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 83,708 | $ 100,790 |
Net realized gain (loss) | 91,168 | 155,086 |
Change in net unrealized appreciation (depreciation) | 205,577 | (131,252) |
Net increase (decrease) in net assets resulting from operations | 380,453 | 124,624 |
Distributions to shareholders from net investment income | (83,473) | (101,077) |
Distributions to shareholders from net realized gain | (26,559) | (17,138) |
Total distributions | (110,032) | (118,215) |
Share transactions - net increase (decrease) | 316,974 | (405,722) |
Total increase (decrease) in net assets | 587,395 | (399,313) |
|
|
|
Net Assets | ||
Beginning of period | 5,723,398 | 6,122,711 |
End of period (including undistributed net investment income of $1,231 and undistributed net investment income of $996, respectively) | $ 6,310,793 | $ 5,723,398 |
Financial Highlights - Class A
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 | $ 46.81 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .663 | .792 | .802 | .789 | 1.000 | .966 |
Net realized and unrealized gain (loss) | 2.547 | .666 | 4.972 | 4.116 | (5.341) | (3.085) |
Total from investment operations | 3.210 | 1.458 | 5.774 | 4.905 | (4.341) | (2.119) |
Distributions from net investment income | (.653) | (.794) | (.815) | (.785) | (.979) | (.911) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.880) | (.948) | (1.024) | (.895) | (1.309) | (1.071) |
Net asset value, end of period | $ 52.76 | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 | $ 46.81 |
Total Return B, C, D | 6.42% | 3.02% | 12.85% | 11.96% | (8.93)% | (4.36)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.56% A | 1.63% | 1.65% | 1.78% | 2.60% | 2.16% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 142 | $ 133 | $ 133 | $ 359 | $ 278 | $ 371 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 | $ 46.80 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .600 | .672 | .682 | .678 | .905 | .847 |
Net realized and unrealized gain (loss) | 2.537 | .678 | 4.975 | 4.107 | (5.340) | (3.079) |
Total from investment operations | 3.137 | 1.350 | 5.657 | 4.785 | (4.435) | (2.232) |
Distributions from net investment income | (.590) | (.676) | (.668) | (.675) | (.875) | (.808) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.817) | (.830) | (.877) | (.785) | (1.205) | (.968) |
Net asset value, end of period | $ 52.78 | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 | $ 46.80 |
Total Return B, C, D | 6.27% | 2.79% | 12.57% | 11.66% | (9.15)% | (4.57)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.32% A | 1.38% | 1.40% | 1.53% | 2.35% | 1.91% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 133 | $ 128 | $ 130 | $ 328 | $ 311 | $ 606 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 | $ 46.79 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .470 | .427 | .438 | .454 | .711 | .639 |
Net realized and unrealized gain (loss) | 2.542 | .662 | 4.974 | 4.117 | (5.333) | (3.104) |
Total from investment operations | 3.012 | 1.089 | 5.412 | 4.571 | (4.622) | (2.465) |
Distributions from net investment income | (.475) | (.435) | (.453) | (.431) | (.678) | (.585) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.702) | (.589) | (.662) | (.541) | (1.008) | (.745) |
Net asset value, end of period | $ 52.75 | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 | $ 46.79 |
Total Return B, C, D | 6.01% | 2.24% | 12.01% | 11.13% | (9.60)% | (5.02)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.81% A | .88% | .90% | 1.02% | 1.84% | 1.41% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 33 | $ 49 | $ 51 | $ 86 | $ 150 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2028
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .914 | .925 | .900 | 1.087 | 1.067 |
Net realized and unrealized gain (loss) | 2.537 | .680 | 4.965 | 4.115 | (5.330) | (3.072) |
Total from investment operations | 3.265 | 1.594 | 5.890 | 5.015 | (4.243) | (2.005) |
Distributions from net investment income | (.718) | (.920) | (.941) | (.895) | (1.077) | (1.015) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.945) | (1.074) | (1.150) | (1.005) | (1.407) | (1.175) |
Net asset value, end of period | $ 52.76 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 |
Total Return B, C | 6.53% | 3.30% | 13.12% | 12.24% | (8.69)% | (4.14)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.81% A | 1.88% | 1.90% | 2.03% | 2.85% | 2.40% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,985 | $ 5,405 | $ 5,783 | $ 5,383 | $ 5,641 | $ 6,068 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .916 | .923 | .899 | 1.097 | 1.101 |
Net realized and unrealized gain (loss) | 2.537 | .678 | 4.967 | 4.116 | (5.340) | (3.106) |
Total from investment operations | 3.265 | 1.594 | 5.890 | 5.015 | (4.243) | (2.005) |
Distributions from net investment income | (.718) | (.920) | (.941) | (.895) | (1.077) | (1.015) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.945) | (1.074) | (1.150) | (1.005) | (1.407) | (1.175) |
Net asset value, end of period | $ 52.76 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 |
Total Return B, C | 6.53% | 3.30% | 13.12% | 12.24% | (8.69)% | (4.14)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.81% A | 1.88% | 1.90% | 2.03% | 2.85% | 2.40% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 27 | $ 36 | $ 56 | $ 96 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.2 | 6.3 |
Fidelity Blue Chip Growth Fund | 5.7 | 5.8 |
Fidelity Disciplined Equity Fund | 6.6 | 6.9 |
Fidelity Equity-Income Fund | 8.9 | 9.2 |
Fidelity Series 100 Index Fund | 5.7 | 5.9 |
Fidelity Series Broad Market Opportunities Fund | 10.2 | 10.3 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 44.2 | 45.3 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 7.2 | 7.5 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.4 | 2.4 |
Fidelity Strategic Income Fund | 2.4 | 2.4 |
| 4.8 | 4.8 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.0 | 5.7 |
Fidelity Strategic Real Return Fund | 6.0 | 6.0 |
Fidelity Total Bond Fund | 17.6 | 17.4 |
| 29.6 | 29.1 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 7.1 | 6.6 |
Fidelity Short-Term Bond Fund | 7.1 | 6.7 |
| 14.2 | 13.3 |
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 45.3% |
|
| International Equity Funds | 7.5% |
|
| High Yield Fixed-Income Funds | 4.8% |
|
| Investment Grade Fixed-Income Funds | 29.1% |
|
| Short-Term Funds | 13.3% |
|
Expected | |||
| Domestic Equity Funds | 43.9% |
|
| International Equity Funds | 7.0% |
|
| High Yield Fixed-Income Funds | 4.6% |
|
| Investment Grade Fixed-Income Funds | 29.9% |
|
| Short-Term Funds | 14.6% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2030 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 51.4% | |||
Shares | Value | ||
Domestic Equity Funds - 44.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 13,642 | $ 256,338 | |
Fidelity Blue Chip Growth Fund | 4,648 | 238,117 | |
Fidelity Disciplined Equity Fund | 10,699 | 274,973 | |
Fidelity Equity-Income Fund | 7,371 | 366,492 | |
Fidelity Series 100 Index Fund | 24,174 | 238,117 | |
Fidelity Series Broad Market Opportunities Fund | 35,965 | 421,156 | |
Fidelity Series Small Cap Opportunities Fund | 3,104 | 36,442 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,831,635 | ||
International Equity Funds - 7.2% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 8,699 | 297,335 | |
TOTAL EQUITY FUNDS (Cost $1,756,271) |
| ||
Fixed-Income Funds - 34.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.8% | |||
Fidelity Capital & Income Fund | 10,159 | 97,731 | |
Fidelity Strategic Income Fund | 8,618 | 97,731 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 195,462 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 29.6% | |||
Fidelity Government Income Fund | 23,388 | $ 245,571 | |
Fidelity Strategic Real Return Fund | 25,135 | 245,571 | |
Fidelity Total Bond Fund | 67,712 | 736,710 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,227,852 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,393,010) |
| ||
Short-Term Funds - 14.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 294,436 | 294,436 | |
Fidelity Short-Term Bond Fund | 34,237 | 294,436 | |
TOTAL SHORT-TERM FUNDS (Cost $583,716) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,732,997) | 4,141,156 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (262) | ||
NET ASSETS - 100% | $ 4,140,894 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,732,997) - See accompanying schedule | $ 4,141,156 | |
Cash | 1 | |
Receivable for investments sold | 25,682 | |
Other affiliated receivables | 12 | |
Total assets | 4,166,851 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 25,678 | |
Distribution and service plan fees payable | 279 | |
Total liabilities | 25,957 | |
|
|
|
Net Assets | $ 4,140,894 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,894,972 | |
Undistributed net investment income | 793 | |
Accumulated undistributed net realized gain (loss) on investments | (163,030) | |
Net unrealized appreciation (depreciation) on investments | 408,159 | |
Net Assets | $ 4,140,894 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.54) | $ 55.75 | |
Class T: | $ 52.63 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.63) | $ 54.54 | |
Class C: | $ 52.46 | |
|
|
|
Income Replacement 2030: | $ 52.54 | |
|
|
|
Institutional Class: | $ 52.54 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 57,144 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,688 | |
Independent trustees' compensation | 7 | |
Total expenses before reductions | 1,695 | |
Expense reductions | (7) | 1,688 |
Net investment income (loss) | 55,456 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 9,570 | |
Capital gain distributions from underlying funds | 49,814 |
|
Total net realized gain (loss) |
| 59,384 |
Change in net unrealized appreciation (depreciation) on underlying funds | 142,973 | |
Net gain (loss) | 202,357 | |
Net increase (decrease) in net assets resulting from operations | $ 257,813 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,456 | $ 77,258 |
Net realized gain (loss) | 59,384 | (19,660) |
Change in net unrealized appreciation (depreciation) | 142,973 | 71,227 |
Net increase (decrease) in net assets resulting from operations | 257,813 | 128,825 |
Distributions to shareholders from net investment income | (55,341) | (77,373) |
Distributions to shareholders from net realized gain | (17,604) | (13,766) |
Total distributions | (72,945) | (91,139) |
Share transactions - net increase (decrease) | (36,609) | (390,844) |
Total increase (decrease) in net assets | 148,259 | (353,158) |
|
|
|
Net Assets | ||
Beginning of period | 3,992,635 | 4,345,793 |
End of period (including undistributed net investment income of $793 and undistributed net investment income of $678, respectively) | $ 4,140,894 | $ 3,992,635 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .667 | .815 | .791 | .718 | .978 | 1.034 |
Net realized and unrealized gain (loss) | 2.656 | .598 | 5.066 | 4.180 | (5.404) | (3.239) |
Total from investment operations | 3.323 | 1.413 | 5.857 | 4.898 | (4.426) | (2.205) |
Distributions from net investment income | (.675) | (.796) | (.801) | (.713) | (1.004) | (.995) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.903) | (.943) | (.977) | (.818) | (1.494) | (1.185) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 | $ 46.61 |
Total Return B, C, D | 6.69% | 2.94% | 13.15% | 12.08% | (9.22)% | (4.55)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.59% A | 1.68% | 1.63% | 1.63% | 2.57% | 2.26% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 90 | $ 86 | $ 72 | $ 66 | $ 55 | $ 95 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .602 | .715 | .655 | .603 | .881 | .920 |
Net realized and unrealized gain (loss) | 2.660 | .598 | 5.076 | 4.182 | (5.402) | (3.234) |
Total from investment operations | 3.262 | 1.313 | 5.731 | 4.785 | (4.521) | (2.314) |
Distributions from net investment income | (.604) | (.636) | (.665) | (.590) | (.909) | (.886) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.832) | (.783) | (.841) | (.695) | (1.399) | (1.076) |
Net asset value, end of period | $ 52.63 | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 | $ 46.61 |
Total Return B, C, D | 6.55% | 2.72% | 12.85% | 11.79% | (9.45)% | (4.76)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .46% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .46% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.34% A | 1.48% | 1.38% | 1.37% | 2.32% | 2.01% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14 | $ 13 | $ 15 | $ 45 | $ 71 | $ 95 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 | $ 46.58 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .474 | .451 | .428 | .385 | .693 | .682 |
Net realized and unrealized gain (loss) | 2.646 | .604 | 5.060 | 4.185 | (5.400) | (3.227) |
Total from investment operations | 3.120 | 1.055 | 5.488 | 4.570 | (4.707) | (2.545) |
Distributions from net investment income | (.502) | (.448) | (.452) | (.385) | (.713) | (.685) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.730) | (.595) | (.628) | (.490) | (1.203) | (.875) |
Net asset value, end of period | $ 52.46 | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 | $ 46.58 |
Total Return B, C, D | 6.28% | 2.19% | 12.30% | 11.26% | (9.91)% | (5.21)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.84% A | .93% | .88% | .88% | 1.82% | 1.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 306 | $ 312 | $ 270 | $ 186 | $ 178 | $ 297 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2030
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .732 | .935 | .917 | .821 | 1.101 | 1.117 |
Net realized and unrealized gain (loss) | 2.654 | .608 | 5.062 | 4.178 | (5.429) | (3.209) |
Total from investment operations | 3.386 | 1.543 | 5.979 | 4.999 | (4.328) | (2.092) |
Distributions from net investment income | (.738) | (.916) | (.923) | (.824) | (1.102) | (1.108) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.966) | (1.063) | (1.099) | (.929) | (1.592) | (1.298) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 | $ 46.61 |
Total Return B, C | 6.82% | 3.22% | 13.43% | 12.34% | (8.99)% | (4.33)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.84% A | 1.93% | 1.88% | 1.88% | 2.82% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,677 | $ 3,558 | $ 3,962 | $ 1,628 | $ 303 | $ 653 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .936 | .911 | .825 | 1.074 | 1.149 |
Net realized and unrealized gain (loss) | 2.658 | .607 | 5.058 | 4.184 | (5.402) | (3.241) |
Total from investment operations | 3.386 | 1.543 | 5.969 | 5.009 | (4.328) | (2.092) |
Distributions from net investment income | (.738) | (.916) | (.923) | (.824) | (1.102) | (1.108) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.966) | (1.063) | (1.099) | (.929) | (1.592) | (1.298) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 | $ 46.61 |
Total Return B, C | 6.82% | 3.22% | 13.41% | 12.36% | (8.99)% | (4.33)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.84% A | 1.93% | 1.88% | 1.88% | 2.82% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 54 | $ 24 | $ 27 | $ 36 | $ 55 | $ 96 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.3 | 6.4 |
Fidelity Blue Chip Growth Fund | 5.9 | 5.9 |
Fidelity Disciplined Equity Fund | 6.8 | 7.0 |
Fidelity Equity-Income Fund | 9.0 | 9.4 |
Fidelity Series 100 Index Fund | 5.9 | 6.0 |
Fidelity Series Broad Market Opportunities Fund | 10.4 | 10.6 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.2 | 46.2 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 8.0 | 8.4 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.5 | 2.5 |
Fidelity Strategic Income Fund | 2.5 | 2.5 |
| 5.0 | 5.0 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.7 | 5.5 |
Fidelity Strategic Real Return Fund | 5.7 | 5.7 |
Fidelity Total Bond Fund | 17.0 | 16.7 |
| 28.4 | 27.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 6.7 | 6.2 |
Fidelity Short-Term Bond Fund | 6.7 | 6.3 |
| 13.4 | 12.5 |
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) | |||
Current | |||
| Domestic Equity Funds | 45.2% |
|
| International Equity Funds | 8.0% |
|
| High Yield Fixed-Income Funds | 5.0% |
|
| Investment Grade Fixed-Income Funds | 28.4% |
|
| Short-Term Funds | 13.4% |
|
Six months ago | |||
| Domestic Equity Funds | 46.2% |
|
| International Equity Funds | 8.4% |
|
| High Yield Fixed-Income Funds | 5.0% |
|
| Investment Grade Fixed-Income Funds | 27.9% |
|
| Short-Term Funds | 12.5% |
|
Expected | |||
| Domestic Equity Funds | 45.0% |
|
| International Equity Funds | 7.8% |
|
| High Yield Fixed-Income Funds | 4.9% |
|
| Investment Grade Fixed-Income Funds | 28.9% |
|
| 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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2032 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 53.2% | |||
Shares | Value | ||
Domestic Equity Funds - 45.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 14,058 | $ 264,146 | |
Fidelity Blue Chip Growth Fund | 4,790 | 245,367 | |
Fidelity Disciplined Equity Fund | 11,009 | 282,924 | |
Fidelity Equity-Income Fund | 7,587 | 377,232 | |
Fidelity Series 100 Index Fund | 24,910 | 245,367 | |
Fidelity Series Broad Market Opportunities Fund | 37,061 | 433,983 | |
Fidelity Series Small Cap Opportunities Fund | 3,199 | 37,556 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,886,575 | ||
International Equity Funds - 8.0% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 9,706 | 331,747 | |
TOTAL EQUITY FUNDS (Cost $1,971,752) |
| ||
Fixed-Income Funds - 33.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.0% | |||
Fidelity Capital & Income Fund | 10,801 | 103,906 | |
Fidelity Strategic Income Fund | 9,163 | 103,906 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 207,812 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 28.4% | |||
Fidelity Government Income Fund | 22,693 | $ 238,274 | |
Fidelity Strategic Real Return Fund | 24,388 | 238,273 | |
Fidelity Total Bond Fund | 65,662 | 714,402 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,190,949 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,396,646) |
| ||
Short-Term Funds - 13.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 277,916 | 277,916 | |
Fidelity Short-Term Bond Fund | 32,316 | 277,916 | |
TOTAL SHORT-TERM FUNDS (Cost $553,676) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,922,074) | 4,172,915 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (641) | ||
NET ASSETS - 100% | $ 4,172,274 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,922,074) - See accompanying schedule | $ 4,172,915 | |
Receivable for investments sold | 31,080 | |
Receivable for fund shares sold | 2,000 | |
Total assets | 4,205,995 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 25,554 | |
Payable for fund shares redeemed | 8,062 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 33,721 | |
|
|
|
Net Assets | $ 4,172,274 | |
Net Assets consist of: |
| |
Paid in capital | $ 4,047,604 | |
Undistributed net investment income | 804 | |
Accumulated undistributed net realized gain (loss) on investments | (126,975) | |
Net unrealized appreciation (depreciation) on investments | 250,841 | |
Net Assets | $ 4,172,274 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 50.16 | |
|
|
|
Maximum offering price per share (100/94.25 of $50.16) | $ 53.22 | |
Class T: | $ 50.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $50.19) | $ 52.01 | |
Class C: | $ 50.15 | |
|
|
|
Income Replacement 2032: | $ 50.17 | |
|
|
|
Institutional Class: | $ 50.17 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,207 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 610 | |
Independent trustees' compensation | 7 | |
Total expenses before reductions | 617 | |
Expense reductions | (7) | 610 |
Net investment income (loss) | 58,597 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 23,622 | |
Capital gain distributions from underlying funds | 49,199 |
|
Total net realized gain (loss) |
| 72,821 |
Change in net unrealized appreciation (depreciation) on underlying funds | 135,592 | |
Net gain (loss) | 208,413 | |
Net increase (decrease) in net assets resulting from operations | $ 267,010 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 58,597 | $ 39,662 |
Net realized gain (loss) | 72,821 | 100,607 |
Change in net unrealized appreciation (depreciation) | 135,592 | (41,402) |
Net increase (decrease) in net assets resulting from operations | 267,010 | 98,867 |
Distributions to shareholders from net investment income | (58,342) | (39,403) |
Distributions to shareholders from net realized gain | (32,634) | (105,815) |
Total distributions | (90,976) | (145,218) |
Share transactions - net increase (decrease) | 696,389 | 1,767,286 |
Total increase (decrease) in net assets | 872,423 | 1,720,935 |
|
|
|
Net Assets | ||
Beginning of period | 3,299,851 | 1,578,916 |
End of period (including undistributed net investment income of $804 and undistributed net investment income of $549, respectively) | $ 4,172,274 | $ 3,299,851 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 | $ 46.52 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .702 | .717 | .796 | .727 | .930 | 1.019 |
Net realized and unrealized gain (loss) | 2.585 | .618 | 5.086 | 4.154 | (5.570) | (3.322) |
Total from investment operations | 3.287 | 1.335 | 5.882 | 4.881 | (4.640) | (2.303) |
Distributions from net investment income | (.633) | (.770) | (.812) | (.796) | (.960) | (.987) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.037) | (2.495) | (1.002) | (.901) | (1.670) | (1.177) |
Net asset value, end of period | $ 50.16 | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 | $ 46.52 |
Total Return B, C, D | 6.91% | 2.85% | 13.38% | 12.19% | (9.66)% | (4.75)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .37% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.86% A | 1.51% | 1.66% | 1.67% | 2.43% | 2.27% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 224 | $ 217 | $ 214 | $ 200 | $ 183 | $ 402 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 | $ 46.52 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .641 | .599 | .676 | .620 | .821 | .918 |
Net realized and unrealized gain (loss) | 2.582 | .599 | 5.107 | 4.147 | (5.548) | (3.339) |
Total from investment operations | 3.223 | 1.198 | 5.783 | 4.767 | (4.727) | (2.421) |
Distributions from net investment income | (.569) | (.633) | (.693) | (.682) | (.863) | (.869) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (.973) | (2.358) | (.883) | (.787) | (1.573) | (1.059) |
Net asset value, end of period | $ 50.19 | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 | $ 46.52 |
Total Return B, C, D | 6.79% | 2.55% | 13.14% | 11.90% | (9.88)% | (4.98)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .62% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.61% A | 1.26% | 1.41% | 1.43% | 2.18% | 2.02% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 24 | $ 27 | $ 35 | $ 54 | $ 95 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 | $ 46.51 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .519 | .358 | .434 | .403 | .624 | .690 |
Net realized and unrealized gain (loss) | 2.576 | .615 | 5.102 | 4.143 | (5.532) | (3.342) |
Total from investment operations | 3.095 | .973 | 5.536 | 4.546 | (4.908) | (2.652) |
Distributions from net investment income | (.471) | (.438) | (.446) | (.451) | (.662) | (.648) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (.875) | (2.163) | (.636) | (.556) | (1.372) | (.838) |
Net asset value, end of period | $ 50.15 | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 | $ 46.51 |
Total Return B, C, D | 6.52% | 2.07% | 12.55% | 11.33% | (10.32)% | (5.42)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.12% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.11% A | .76% | .91% | .93% | 1.68% | 1.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 56 | $ 52 | $ 22 | $ 29 | $ 46 | $ 95 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2032
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .763 | .836 | .918 | .832 | 1.014 | 1.122 |
Net realized and unrealized gain (loss) | 2.585 | .618 | 5.095 | 4.147 | (5.557) | (3.310) |
Total from investment operations | 3.348 | 1.454 | 6.013 | 4.979 | (4.543) | (2.188) |
Distributions from net investment income | (.694) | (.889) | (.933) | (.904) | (1.057) | (1.092) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.098) | (2.614) | (1.123) | (1.009) | (1.767) | (1.282) |
Net asset value, end of period | $ 50.17 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 |
Total Return B, C | 7.05% | 3.10% | 13.68% | 12.44% | (9.43)% | (4.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .12% | .00% F | .00% F | .00% F | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.11% A | 1.76% | 1.91% | 1.92% | 2.68% | 2.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,850 | $ 2,991 | $ 1,297 | $ 1,391 | $ 1,285 | $ 731 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .764 | .835 | .904 | .834 | 1.009 | 1.147 |
Net realized and unrealized gain (loss) | 2.584 | .619 | 5.109 | 4.145 | (5.552) | (3.335) |
Total from investment operations | 3.348 | 1.454 | 6.013 | 4.979 | (4.543) | (2.188) |
Distributions from net investment income | (.694) | (.889) | (.933) | (.904) | (1.057) | (1.092) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.098) | (2.614) | (1.123) | (1.009) | (1.767) | (1.282) |
Net asset value, end of period | $ 50.17 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 |
Total Return B, C | 7.07% | 3.10% | 13.68% | 12.44% | (9.43)% | (4.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .12% | .00% F | .00% F | .00% F | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.11% A | 1.76% | 1.91% | 1.92% | 2.68% | 2.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18 | $ 17 | $ 19 | $ 61 | $ 55 | $ 96 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.4 | 6.5 |
Fidelity Blue Chip Growth Fund | 6.0 | 6.0 |
Fidelity Disciplined Equity Fund | 6.9 | 7.1 |
Fidelity Equity-Income Fund | 9.2 | 9.5 |
Fidelity Series 100 Index Fund | 6.0 | 6.2 |
Fidelity Series Broad Market Opportunities Fund | 10.6 | 10.7 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.0 | 46.9 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 8.8 | 9.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.6 | 2.7 |
Fidelity Strategic Income Fund | 2.6 | 2.6 |
| 5.2 | 5.3 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.6 | 5.4 |
Fidelity Strategic Real Return Fund | 5.6 | 5.6 |
Fidelity Total Bond Fund | 16.6 | 16.3 |
| 27.8 | 27.3 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 6.1 | 5.6 |
Fidelity Short-Term Bond Fund | 6.1 | 5.7 |
| 12.2 | 11.3 |
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) | |||
Current | |||
| Domestic Equity Funds | 46.0% |
|
| International Equity Funds | 8.8% |
|
| High Yield Fixed-Income Funds | 5.2% |
|
| Investment Grade Fixed-Income Funds | 27.8% |
|
| Short-Term Funds | 12.2% |
|
Six months ago | |||
| Domestic Equity Funds | 46.9% |
|
| International Equity Funds | 9.2% |
|
| High Yield Fixed-Income Funds | 5.3% |
|
| Investment Grade Fixed-Income Funds | 27.3% |
|
| Short-Term Funds | 11.3% |
|
Expected | |||
| Domestic Equity Funds | 45.8% |
|
| International Equity Funds | 8.5% |
|
| High Yield Fixed-Income Funds | 5.2% |
|
| Investment Grade Fixed-Income Funds | 28.0% |
|
| Short-Term Funds | 12.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2034 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 54.8% | |||
Shares | Value | ||
Domestic Equity Funds - 46.0% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 9,384 | $ 176,324 | |
Fidelity Blue Chip Growth Fund | 3,196 | 163,730 | |
Fidelity Disciplined Equity Fund | 7,351 | 188,919 | |
Fidelity Equity-Income Fund | 5,066 | 251,892 | |
Fidelity Series 100 Index Fund | 16,622 | 163,730 | |
Fidelity Series Broad Market Opportunities Fund | 24,761 | 289,949 | |
Fidelity Series Small Cap Opportunities Fund | 2,146 | 25,189 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,259,733 | ||
International Equity Funds - 8.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 7,001 | 239,297 | |
TOTAL EQUITY FUNDS (Cost $1,171,581) |
| ||
Fixed-Income Funds - 33.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.2% | |||
Fidelity Capital & Income Fund | 7,428 | 71,461 | |
Fidelity Strategic Income Fund | 6,302 | 71,461 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 142,922 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 27.8% | |||
Fidelity Government Income Fund | 14,550 | $ 152,778 | |
Fidelity Strategic Real Return Fund | 15,637 | 152,778 | |
Fidelity Total Bond Fund | 42,101 | 458,057 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 763,613 | ||
TOTAL FIXED-INCOME FUNDS (Cost $847,497) |
| ||
Short-Term Funds - 12.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 166,194 | 166,194 | |
Fidelity Short-Term Bond Fund | 19,325 | 166,194 | |
TOTAL SHORT-TERM FUNDS (Cost $327,582) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,346,660) | 2,737,953 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (52) | ||
NET ASSETS - 100% | $ 2,737,901 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,346,660) - See accompanying schedule | $ 2,737,953 | |
Receivable for investments sold | 15,743 | |
Total assets | 2,753,696 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 15,742 | |
Distribution and service plan fees payable | 53 | |
Total liabilities | 15,795 | |
|
|
|
Net Assets | $ 2,737,901 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,451,292 | |
Undistributed net investment income | 519 | |
Accumulated undistributed net realized gain (loss) on investments | (105,203) | |
Net unrealized appreciation (depreciation) on investments | 391,293 | |
Net Assets | $ 2,737,901 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.33 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.33) | $ 55.52 | |
Class T: | $ 52.33 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.33) | $ 54.23 | |
Class C: | $ 52.32 | |
|
|
|
Income Replacement 2034: | $ 52.30 | |
|
|
|
Institutional Class: | $ 52.30 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 36,293 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 359 | |
Independent trustees' compensation | 5 | |
Total expenses before reductions | 364 | |
Expense reductions | (5) | 359 |
Net investment income (loss) | 35,934 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 377 | |
Capital gain distributions from underlying funds | 29,644 |
|
Total net realized gain (loss) |
| 30,021 |
Change in net unrealized appreciation (depreciation) on underlying funds | 105,573 | |
Net gain (loss) | 135,594 | |
Net increase (decrease) in net assets resulting from operations | $ 171,528 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 35,934 | $ 40,470 |
Net realized gain (loss) | 30,021 | 25,007 |
Change in net unrealized appreciation (depreciation) | 105,573 | (4,302) |
Net increase (decrease) in net assets resulting from operations | 171,528 | 61,175 |
Distributions to shareholders from net investment income | (35,829) | (40,482) |
Distributions to shareholders from net realized gain | (10,194) | (6,232) |
Total distributions | (46,023) | (46,714) |
Share transactions - net increase (decrease) | 282,987 | 74,690 |
Total increase (decrease) in net assets | 408,492 | 89,151 |
|
|
|
Net Assets | ||
Beginning of period | 2,329,409 | 2,240,258 |
End of period (including undistributed net investment income of $519 and undistributed net investment income of $414, respectively) | $ 2,737,901 | $ 2,329,409 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .689 | .782 | .799 | .753 | .923 | .994 |
Net realized and unrealized gain (loss) | 2.837 | .504 | 5.233 | 4.174 | (5.753) | (3.438) |
Total from investment operations | 3.526 | 1.286 | 6.032 | 4.927 | (4.830) | (2.444) |
Distributions from net investment income | (.685) | (.775) | (.772) | (.758) | (.890) | (.956) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.896) | (.916) | (.972) | (.947) | (1.280) | (1.156) |
Net asset value, end of period | $ 52.33 | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 | $ 46.40 |
Total Return B, C, D | 7.16% | 2.71% | 13.69% | 12.29% | (10.20)% | (5.04)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Expenses net of fee waivers, if any | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Expenses net of all reductions | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Net investment income (loss) | 2.70% A | 1.63% | 1.66% | 1.73% | 2.46% | 2.19% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 19 | $ 18 | $ 20 | $ 27 | $ 63 | $ 138 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .628 | .662 | .681 | .645 | .828 | .875 |
Net realized and unrealized gain (loss) | 2.829 | .490 | 5.247 | 4.175 | (5.757) | (3.431) |
Total from investment operations | 3.457 | 1.152 | 5.928 | 4.820 | (4.929) | (2.556) |
Distributions from net investment income | (.616) | (.651) | (.658) | (.651) | (.791) | (.844) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.827) | (.792) | (.858) | (.840) | (1.181) | (1.044) |
Net asset value, end of period | $ 52.33 | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 | $ 46.40 |
Total Return B, C, D | 7.01% | 2.42% | 13.45% | 12.01% | (10.44)% | (5.25)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .51% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .51% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .51% | .50% A |
Net investment income (loss) | 2.46% A | 1.38% | 1.42% | 1.48% | 2.21% | 1.94% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 23 | $ 27 | $ 35 | $ 54 | $ 95 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .501 | .424 | .439 | .426 | .631 | .658 |
Net realized and unrealized gain (loss) | 2.837 | .490 | 5.239 | 4.185 | (5.740) | (3.448) |
Total from investment operations | 3.338 | .914 | 5.678 | 4.611 | (5.109) | (2.790) |
Distributions from net investment income | (.507) | (.443) | (.408) | (.422) | (.591) | (.620) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.718) | (.584) | (.608) | (.611) | (.981) | (.820) |
Net asset value, end of period | $ 52.32 | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 | $ 46.39 |
Total Return B, C, D | 6.76% | 1.92% | 12.85% | 11.47% | (10.88)% | (5.70)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Net investment income (loss) | 1.96% A | .89% | .91% | .98% | 1.71% | 1.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 46 | $ 43 | $ 20 | $ 27 | $ 41 | $ 94 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2034
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .755 | .903 | .921 | .862 | .988 | 1.090 |
Net realized and unrealized gain (loss) | 2.832 | .505 | 5.227 | 4.183 | (5.729) | (3.425) |
Total from investment operations | 3.587 | 1.408 | 6.148 | 5.045 | (4.741) | (2.335) |
Distributions from net investment income | (.746) | (.907) | (.898) | (.876) | (.989) | (1.065) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.957) | (1.048) | (1.098) | (1.065) | (1.379) | (1.265) |
Net asset value, end of period | $ 52.30 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.40 |
Total Return B, C | 7.29% | 2.97% | 13.97% | 12.59% | (9.98)% | (4.83)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.96% A | 1.89% | 1.92% | 1.98% | 2.71% | 2.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,517 | $ 2,123 | $ 2,066 | $ 1,672 | $ 1,628 | $ 552 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.41 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .756 | .904 | .922 | .860 | 1.002 | 1.114 |
Net realized and unrealized gain (loss) | 2.831 | .504 | 5.226 | 4.185 | (5.753) | (3.439) |
Total from investment operations | 3.587 | 1.408 | 6.148 | 5.045 | (4.751) | (2.325) |
Distributions from net investment income | (.746) | (.907) | (.898) | (.876) | (.989) | (1.065) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.957) | (1.048) | (1.098) | (1.065) | (1.379) | (1.265) |
Net asset value, end of period | $ 52.30 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.41 |
Total Return B, C | 7.29% | 2.97% | 13.97% | 12.59% | (10.00)% | (4.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.96% A | 1.89% | 1.92% | 1.98% | 2.71% | 2.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 131 | $ 122 | $ 107 | $ 94 | $ 108 | $ 95 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2036 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.5 | 6.6 |
Fidelity Blue Chip Growth Fund | 6.1 | 6.1 |
Fidelity Disciplined Equity Fund | 7.0 | 7.3 |
Fidelity Equity-Income Fund | 9.4 | 9.7 |
Fidelity Series 100 Index Fund | 6.1 | 6.3 |
Fidelity Series Broad Market Opportunities Fund | 10.8 | 10.9 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.8 | 47.8 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 9.6 | 10.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.8 | 2.8 |
Fidelity Strategic Income Fund | 2.8 | 2.7 |
| 5.6 | 5.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.5 | 5.3 |
Fidelity Strategic Real Return Fund | 5.5 | 5.5 |
Fidelity Total Bond Fund | 16.4 | 16.0 |
| 27.4 | 26.8 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 5.3 | 4.9 |
Fidelity Short-Term Bond Fund | 5.3 | 5.0 |
| 10.6 | 9.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 46.8% |
|
| International Equity Funds | 9.6% |
|
| High Yield Fixed-Income Funds | 5.6% |
|
| Investment Grade Fixed-Income Funds | 27.4% |
|
| Short-Term Funds | 10.6% |
|
Six months ago | |||
| Domestic Equity Funds | 47.8% |
|
| International Equity Funds | 10.0% |
|
| High Yield Fixed-Income Funds | 5.5% |
|
| Investment Grade Fixed-Income Funds | 26.8% |
|
| Short-Term Funds | 9.9% |
|
Expected | |||
| Domestic Equity Funds | 46.6% |
|
| International Equity Funds | 9.4% |
|
| High Yield Fixed-Income Funds | 5.4% |
|
| Investment Grade Fixed-Income Funds | 27.6% |
|
| Short-Term Funds | 11.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2036 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 56.4% | |||
Shares | Value | ||
Domestic Equity Funds - 46.8% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,996 | $ 244,202 | |
Fidelity Blue Chip Growth Fund | 4,425 | 226,706 | |
Fidelity Disciplined Equity Fund | 10,168 | 261,326 | |
Fidelity Equity-Income Fund | 7,008 | 348,435 | |
Fidelity Series 100 Index Fund | 23,016 | 226,706 | |
Fidelity Series Broad Market Opportunities Fund | 34,238 | 400,923 | |
Fidelity Series Small Cap Opportunities Fund | 2,981 | 34,992 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,743,290 | ||
International Equity Funds - 9.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 10,412 | 355,880 | |
TOTAL EQUITY FUNDS (Cost $1,978,615) |
| ||
Fixed-Income Funds - 33.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.6% | |||
Fidelity Capital & Income Fund | 10,564 | 101,627 | |
Fidelity Strategic Income Fund | 8,962 | 101,627 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 203,254 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 27.4% | |||
Fidelity Government Income Fund | 19,535 | $ 205,115 | |
Fidelity Strategic Real Return Fund | 20,994 | 205,115 | |
Fidelity Total Bond Fund | 56,557 | 615,343 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,025,573 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,239,747) |
| ||
Short-Term Funds - 10.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 197,297 | 197,297 | |
Fidelity Short-Term Bond Fund | 22,942 | 197,297 | |
TOTAL SHORT-TERM FUNDS (Cost $393,547) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,611,909) | 3,722,591 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (274) | ||
NET ASSETS - 100% | $ 3,722,317 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2036 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,611,909) - See accompanying schedule | $ 3,722,591 | |
Receivable for investments sold | 21,551 | |
Total assets | 3,744,142 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 21,552 | |
Distribution and service plan fees payable | 273 | |
Total liabilities | 21,825 | |
|
|
|
Net Assets | $ 3,722,317 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,779,265 | |
Undistributed net investment income | 683 | |
Accumulated undistributed net realized gain (loss) on investments | (168,313) | |
Net unrealized appreciation (depreciation) on investments | 110,682 | |
Net Assets | $ 3,722,317 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.94 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.94) | $ 55.11 | |
Class T: | $ 51.91 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.91) | $ 53.79 | |
Class C: | $ 51.85 | |
|
|
|
Income Replacement 2036: | $ 51.93 | |
|
|
|
Institutional Class: | $ 51.93 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 51,742 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,626 | |
Independent trustees' compensation | 6 | |
Total expenses before reductions | 1,632 | |
Expense reductions | (6) | 1,626 |
Net investment income (loss) | 50,116 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 1,128 | |
Capital gain distributions from underlying funds | 39,721 |
|
Total net realized gain (loss) |
| 40,849 |
Change in net unrealized appreciation (depreciation) on underlying funds | 148,044 | |
Net gain (loss) | 188,893 | |
Net increase (decrease) in net assets resulting from operations | $ 239,009 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 50,116 | $ 51,249 |
Net realized gain (loss) | 40,849 | 34,074 |
Change in net unrealized appreciation (depreciation) | 148,044 | (39,842) |
Net increase (decrease) in net assets resulting from operations | 239,009 | 45,481 |
Distributions to shareholders from net investment income | (49,885) | (51,325) |
Distributions to shareholders from net realized gain | (12,770) | (7,797) |
Total distributions | (62,655) | (59,122) |
Share transactions - net increase (decrease) | 702,817 | (139,228) |
Total increase (decrease) in net assets | 879,171 | (152,869) |
|
|
|
Net Assets | ||
Beginning of period | 2,843,146 | 2,996,015 |
End of period (including undistributed net investment income of $683 and undistributed net investment income of $452, respectively) | $ 3,722,317 | $ 2,843,146 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .769 | .760 | .811 | .748 | .937 | .951 |
Net realized and unrealized gain (loss) | 2.844 | .441 G | 5.306 | 4.178 | (6.127) | (3.464) |
Total from investment operations | 3.613 | 1.201 | 6.117 | 4.926 | (5.190) | (2.513) |
Distributions from net investment income | (.692) | (.784) | (.771) | (.752) | (.940) | (.897) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.873) | (.921) | (.927) | (.896) | (1.510) | (1.087) |
Net asset value, end of period | $ 51.94 | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C, D | 7.41% | 2.56% | 14.05% | 12.46% | (10.72)% | (5.17)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 3.03% A | 1.60% | 1.70% | 1.74% | 2.52% | 2.08% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 24 | $ 27 | $ 31 | $ 40 | $ 54 | $ 95 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .705 | .641 | .693 | .639 | .844 | .823 |
Net realized and unrealized gain (loss) | 2.845 | .448 G | 5.287 | 4.183 | (6.122) | (3.449) |
Total from investment operations | 3.550 | 1.089 | 5.980 | 4.822 | (5.278) | (2.626) |
Distributions from net investment income | (.629) | (.672) | (.654) | (.648) | (.852) | (.794) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.810) | (.809) | (.810) | (.792) | (1.422) | (.984) |
Net asset value, end of period | $ 51.91 | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 | $ 46.39 |
Total Return B, C, D | 7.28% | 2.32% | 13.73% | 12.19% | (10.93)% | (5.39)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.78% A | 1.35% | 1.45% | 1.49% | 2.28% | 1.83% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 288 | $ 278 | $ 288 | $ 265 | $ 265 | $ 384 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .578 | .404 | .454 | .424 | .655 | .609 |
Net realized and unrealized gain (loss) | 2.843 | .445 G | 5.293 | 4.179 | (6.114) | (3.465) |
Total from investment operations | 3.421 | .849 | 5.747 | 4.603 | (5.459) | (2.856) |
Distributions from net investment income | (.530) | (.452) | (.451) | (.429) | (.651) | (.564) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.711) | (.589) | (.607) | (.573) | (1.221) | (.754) |
Net asset value, end of period | $ 51.85 | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 | $ 46.39 |
Total Return B, C, D | 7.01% | 1.80% | 13.17% | 11.61% | (11.38)% | (5.82)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.28% A | .85% | .95% | .99% | 1.77% | 1.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 179 | $ 174 | $ 216 | $ 119 | $ 116 | $ 94 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2036
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .831 | .880 | .939 | .854 | 1.034 | 1.043 |
Net realized and unrealized gain (loss) | 2.843 | .445 G | 5.291 | 4.183 | (6.126) | (3.445) |
Total from investment operations | 3.674 | 1.325 | 6.230 | 5.037 | (5.092) | (2.402) |
Distributions from net investment income | (.753) | (.908) | (.894) | (.863) | (1.038) | (1.008) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.934) | (1.045) | (1.050) | (1.007) | (1.608) | (1.198) |
Net asset value, end of period | $ 51.93 | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C | 7.54% | 2.82% | 14.32% | 12.75% | (10.48)% | (4.96)% |
Ratios to Average Net Assets E |
|
|
|
|
|
|
Expenses before reductions F, I | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.28% A | 1.85% | 1.95% | 1.99% | 2.78% | 2.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,232 | $ 2,363 | $ 2,433 | $ 598 | $ 632 | $ 986 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .855 | .873 | .929 | .851 | 1.031 | 1.064 |
Net realized and unrealized gain (loss) | 2.829 | .452 G | 5.291 | 4.186 | (6.123) | (3.466) |
Total from investment operations | 3.684 | 1.325 | 6.220 | 5.037 | (5.092) | (2.402) |
Distributions from net investment income | (.753) | (.908) | (.894) | (.863) | (1.038) | (1.008) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.934) | (1.045) | (1.050) | (1.007) | (1.608) | (1.198) |
Net asset value, end of period | $ 51.93 | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C | 7.56% | 2.82% | 14.30% | 12.75% | (10.48)% | (4.96)% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.28% A | 1.85% | 1.95% | 1.99% | 2.78% | 2.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1 | $ 1 | $ 28 | $ 103 | $ 67 | $ 119 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2038 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.7 | 6.7 |
Fidelity Blue Chip Growth Fund | 6.2 | 6.2 |
Fidelity Disciplined Equity Fund | 7.2 | 7.4 |
Fidelity Equity-Income Fund | 9.5 | 9.9 |
Fidelity Series 100 Index Fund | 6.2 | 6.4 |
Fidelity Series Broad Market Opportunities Fund | 11.0 | 11.1 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 47.7 | 48.7 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 10.5 | 10.9 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.9 | 2.9 |
Fidelity Strategic Income Fund | 2.9 | 2.9 |
| 5.8 | 5.8 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.3 | 5.1 |
Fidelity Strategic Real Return Fund | 5.3 | 5.4 |
Fidelity Total Bond Fund | 16.0 | 15.7 |
| 26.6 | 26.2 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 4.7 | 4.2 |
Fidelity Short-Term Bond Fund | 4.7 | 4.2 |
| 9.4 | 8.4 |
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 48.7% |
|
| International Equity Funds | 10.9% |
|
| High Yield Fixed-Income Funds | 5.8% |
|
| Investment Grade Fixed-Income Funds | 26.2% |
|
| Short-Term Funds | 8.4% |
|
Expected | |||
| Domestic Equity Funds | 47.5% |
|
| International Equity Funds | 10.2% |
|
| High Yield Fixed-Income Funds | 5.7% |
|
| Investment Grade Fixed-Income Funds | 26.8% |
|
| Short-Term Funds | 9.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2038 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 58.2% | |||
Shares | Value | ||
Domestic Equity Funds - 47.7% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 8,626 | $ 162,086 | |
Fidelity Blue Chip Growth Fund | 2,941 | 150,681 | |
Fidelity Disciplined Equity Fund | 6,760 | 173,733 | |
Fidelity Equity-Income Fund | 4,661 | 231,724 | |
Fidelity Series 100 Index Fund | 15,298 | 150,681 | |
Fidelity Series Broad Market Opportunities Fund | 22,752 | 266,422 | |
Fidelity Series Small Cap Opportunities Fund | 1,963 | 23,051 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,158,378 | ||
International Equity Funds - 10.5% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 7,418 | 253,562 | |
TOTAL EQUITY FUNDS (Cost $1,134,774) |
| ||
Fixed-Income Funds - 32.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.8% | |||
Fidelity Capital & Income Fund | 7,214 | 69,396 | |
Fidelity Strategic Income Fund | 6,120 | 69,396 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 138,792 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.6% | |||
Fidelity Government Income Fund | 12,340 | $ 129,571 | |
Fidelity Strategic Real Return Fund | 13,262 | 129,571 | |
Fidelity Total Bond Fund | 35,705 | 388,474 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 647,616 | ||
TOTAL FIXED-INCOME FUNDS (Cost $747,175) |
| ||
Short-Term Funds - 9.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 114,042 | 114,042 | |
Fidelity Short-Term Bond Fund | 13,261 | 114,042 | |
TOTAL SHORT-TERM FUNDS (Cost $225,416) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,107,365) | 2,426,432 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (125) | ||
NET ASSETS - 100% | $ 2,426,307 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2038 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,107,365) - See accompanying schedule | $ 2,426,432 | |
Receivable for investments sold | 14,496 | |
Total assets | 2,440,928 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 14,495 | |
Distribution and service plan fees payable | 126 | |
Total liabilities | 14,621 | |
|
|
|
Net Assets | $ 2,426,307 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,156,361 | |
Undistributed net investment income | 423 | |
Accumulated undistributed net realized gain (loss) on investments | (49,544) | |
Net unrealized appreciation (depreciation) on investments | 319,067 | |
Net Assets | $ 2,426,307 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.20 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.20) | $ 54.32 | |
Class T: | $ 51.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.19) | $ 53.05 | |
Class C: | $ 51.13 | |
|
|
|
Income Replacement 2038: | $ 51.20 | |
|
|
|
Institutional Class: | $ 51.20 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 35,516 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 742 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 746 | |
Expense reductions | (4) | 742 |
Net investment income (loss) | 34,774 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 149 | |
Capital gain distributions from underlying funds | 27,959 |
|
Total net realized gain (loss) |
| 28,108 |
Change in net unrealized appreciation (depreciation) on underlying funds | 105,225 | |
Net gain (loss) | 133,333 | |
Net increase (decrease) in net assets resulting from operations | $ 168,107 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 34,774 | $ 27,942 |
Net realized gain (loss) | 28,108 | 30,204 |
Change in net unrealized appreciation (depreciation) | 105,225 | (32,596) |
Net increase (decrease) in net assets resulting from operations | 168,107 | 25,550 |
Distributions to shareholders from net investment income | (34,676) | (27,910) |
Distributions to shareholders from net realized gain | (9,447) | (3,924) |
Total distributions | (44,123) | (31,834) |
Share transactions - net increase (decrease) | 210,592 | 490,682 |
Total increase (decrease) in net assets | 334,576 | 484,398 |
|
|
|
Net Assets | ||
Beginning of period | 2,091,731 | 1,607,333 |
End of period (including undistributed net investment income of $423 and undistributed net investment income of $325, respectively) | $ 2,426,307 | $ 2,091,731 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .710 | .739 | .858 | .744 | .856 | .442 |
Net realized and unrealized gain (loss) | 2.969 | .384 | 5.317 | 4.191 | (6.093) | (4.811) |
Total from investment operations | 3.679 | 1.123 | 6.175 | 4.935 | (5.237) | (4.369) |
Distributions from net investment income | (.689) | (.769) | (.802) | (.710) | (.873) | (.371) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.889) | (.903) | (.995) | (.875) | (1.073) | (.371) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 | $ 45.26 |
Total Return B, C, D | 7.67% | 2.44% | 14.43% | 12.72% | (11.24)% | (8.76)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.84% A | 1.59% | 1.82% | 1.76% | 2.44% | 1.59% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 80 | $ 76 | $ 34 | $ 32 | $ 115 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .647 | .624 | .736 | .636 | .791 | .373 |
Net realized and unrealized gain (loss) | 2.972 | .367 | 5.326 | 4.191 | (6.111) | (4.809) |
Total from investment operations | 3.619 | .991 | 6.062 | 4.827 | (5.320) | (4.436) |
Distributions from net investment income | (.629) | (.647) | (.689) | (.612) | (.780) | (.304) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.829) | (.781) | (.882) | (.777) | (.980) | (.304) |
Net asset value, end of period | $ 51.19 | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 | $ 45.26 |
Total Return B, C, D | 7.54% | 2.15% | 14.15% | 12.43% | (11.45)% | (8.89)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.59% A | 1.34% | 1.57% | 1.50% | 2.20% | 1.34% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 111 | $ 105 | $ 127 | $ 37 | $ 57 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 | $ 45.24 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .520 | .390 | .505 | .424 | .611 | .233 |
Net realized and unrealized gain (loss) | 2.967 | .379 | 5.319 | 4.192 | (6.107) | (4.812) |
Total from investment operations | 3.487 | .769 | 5.824 | 4.616 | (5.496) | (4.579) |
Distributions from net investment income | (.527) | (.435) | (.441) | (.421) | (.594) | (.181) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.727) | (.569) | (.634) | (.586) | (.794) | (.181) |
Net asset value, end of period | $ 51.13 | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 | $ 45.24 |
Total Return B, C, D | 7.26% | 1.67% | 13.59% | 11.87% | (11.89)% | (9.17)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.09% A | .84% | 1.08% | 1.01% | 1.70% | .84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 79 | $ 74 | $ 72 | $ 91 | $ 57 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2038
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.27 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .772 | .857 | .969 | .849 | .965 | .502 |
Net realized and unrealized gain (loss) | 2.970 | .377 | 5.332 | 4.187 | (6.112) | (4.795) |
Total from investment operations | 3.742 | 1.234 | 6.301 | 5.036 | (5.147) | (4.293) |
Distributions from net investment income | (.752) | (.880) | (.918) | (.831) | (.963) | (.437) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.952) | (1.014) | (1.111) | (.996) | (1.163) | (.437) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.27 |
Total Return B, C | 7.80% | 2.68% | 14.74% | 12.99% | (11.02)% | (8.61)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.09% A | 1.84% | 2.07% | 2.01% | 2.69% | 1.84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,129 | $ 1,811 | $ 1,345 | $ 2,051 | $ 1,165 | $ 1,122 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .771 | .857 | .973 | .848 | .974 | .511 |
Net realized and unrealized gain (loss) | 2.971 | .377 | 5.328 | 4.188 | (6.111) | (4.814) |
Total from investment operations | 3.742 | 1.234 | 6.301 | 5.036 | (5.137) | (4.303) |
Distributions from net investment income | (.752) | (.880) | (.918) | (.831) | (.963) | (.437) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.952) | (1.014) | (1.111) | (.996) | (1.163) | (.437) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.26 |
Total Return B, C | 7.80% | 2.68% | 14.74% | 12.99% | (11.00)% | (8.63)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.09% A | 1.84% | 2.07% | 2.01% | 2.69% | 1.84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 27 | $ 25 | $ 29 | $ 38 | $ 58 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.8 | 6.9 |
Fidelity Blue Chip Growth Fund | 6.4 | 6.4 |
Fidelity Disciplined Equity Fund | 7.3 | 7.6 |
Fidelity Equity-Income Fund | 9.8 | 10.1 |
Fidelity Series 100 Index Fund | 6.4 | 6.5 |
Fidelity Series Broad Market Opportunities Fund | 11.2 | 11.4 |
Fidelity Series Small Cap Opportunities Fund | 1.0 | 1.0 |
| 48.9 | 49.9 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 11.5 | 12.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 3.1 | 3.1 |
Fidelity Strategic Income Fund | 3.1 | 3.1 |
| 6.2 | 6.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.3 | 5.1 |
Fidelity Strategic Real Return Fund | 5.3 | 5.3 |
Fidelity Total Bond Fund | 15.6 | 15.4 |
| 26.2 | 25.8 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 3.6 | 3.0 |
Fidelity Short-Term Bond Fund | 3.6 | 3.1 |
| 7.2 | 6.1 |
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) | |||
Current | |||
| Domestic Equity Funds | 48.9% |
|
| International Equity Funds | 11.5% |
|
| High Yield Fixed-Income Funds | 6.2% |
|
| Investment Grade Fixed-Income Funds | 26.2% |
|
| Short-Term Funds | 7.2% |
|
Six months ago | |||
| Domestic Equity Funds | 49.9% |
|
| International Equity Funds | 12.0% |
|
| High Yield Fixed-Income Funds | 6.2% |
|
| Investment Grade Fixed-Income Funds | 25.8% |
|
| Short-Term Funds | 6.1% |
|
Expected | |||
| Domestic Equity Funds | 48.6% |
|
| International Equity Funds | 11.2% |
|
| High Yield Fixed-Income Funds | 6.0% |
|
| Investment Grade Fixed-Income Funds | 26.4% |
|
| Short-Term Funds | 7.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2040 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 60.4% | |||
Shares | Value | ||
Domestic Equity Funds - 48.9% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 10,886 | $ 204,557 | |
Fidelity Blue Chip Growth Fund | 3,707 | 189,925 | |
Fidelity Disciplined Equity Fund | 8,529 | 219,190 | |
Fidelity Equity-Income Fund | 5,874 | 292,054 | |
Fidelity Series 100 Index Fund | 19,282 | 189,925 | |
Fidelity Series Broad Market Opportunities Fund | 28,689 | 335,952 | |
Fidelity Series Small Cap Opportunities Fund | 2,493 | 29,265 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,460,868 | ||
International Equity Funds - 11.5% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 9,995 | 341,625 | |
TOTAL EQUITY FUNDS (Cost $1,629,464) |
| ||
Fixed-Income Funds - 32.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 6.2% | |||
Fidelity Capital & Income Fund | 9,406 | 90,483 | |
Fidelity Strategic Income Fund | 7,979 | 90,483 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 180,966 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.2% | |||
Fidelity Government Income Fund | 14,988 | $ 157,375 | |
Fidelity Strategic Real Return Fund | 16,108 | 157,375 | |
Fidelity Total Bond Fund | 43,311 | 471,228 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 785,978 | ||
TOTAL FIXED-INCOME FUNDS (Cost $964,595) |
| ||
Short-Term Funds - 7.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 108,400 | 108,400 | |
Fidelity Short-Term Bond Fund | 12,605 | 108,400 | |
TOTAL SHORT-TERM FUNDS (Cost $216,029) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,810,088) | 2,986,237 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (99) | ||
NET ASSETS - 100% | $ 2,986,138 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,810,088) - See accompanying schedule | $ 2,986,237 | |
Receivable for investments sold | 16,616 | |
Total assets | 3,002,853 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 16,613 | |
Distribution and service plan fees payable | 102 | |
Total liabilities | 16,715 | |
|
|
|
Net Assets | $ 2,986,138 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,855,900 | |
Undistributed net investment income | 571 | |
Accumulated undistributed net realized gain (loss) on investments | (46,482) | |
Net unrealized appreciation (depreciation) on investments | 176,149 | |
Net Assets | $ 2,986,138 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.51 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.51) | $ 54.65 | |
Class T: | $ 51.59 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.59) | $ 53.46 | |
Class C: | $ 51.41 | |
|
|
|
Income Replacement 2040: | $ 51.48 | |
|
|
|
Institutional Class: | $ 51.48 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 43,823 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 670 | |
Independent trustees' compensation | 5 | |
Total expenses before reductions | 675 | |
Expense reductions | (5) | 670 |
Net investment income (loss) | 43,153 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 18,350 | |
Capital gain distributions from underlying funds | 33,411 |
|
Total net realized gain (loss) |
| 51,761 |
Change in net unrealized appreciation (depreciation) on underlying funds | 120,616 | |
Net gain (loss) | 172,377 | |
Net increase (decrease) in net assets resulting from operations | $ 215,530 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 43,153 | $ 40,116 |
Net realized gain (loss) | 51,761 | 117,214 |
Change in net unrealized appreciation (depreciation) | 120,616 | (111,202) |
Net increase (decrease) in net assets resulting from operations | 215,530 | 46,128 |
Distributions to shareholders from net investment income | (43,037) | (40,029) |
Distributions to shareholders from net realized gain | (14,161) | (5,624) |
Total distributions | (57,198) | (45,653) |
Share transactions - net increase (decrease) | 198,545 | 478,557 |
Total increase (decrease) in net assets | 356,877 | 479,032 |
|
|
|
Net Assets | ||
Beginning of period | 2,629,261 | 2,150,229 |
End of period (including undistributed net investment income of $571 and undistributed net investment income of $455, respectively) | $ 2,986,138 | $ 2,629,261 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .738 | .762 | .789 | .722 | .933 | .442 |
Net realized and unrealized gain (loss) | 3.113 | .331 | 5.608 | 4.298 | (6.238) | (4.814) |
Total from investment operations | 3.851 | 1.093 | 6.397 | 5.020 | (5.305) | (4.372) |
Distributions from net investment income | (.719) | (.771) | (.805) | (.710) | (.885) | (.398) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.971) | (.903) | (.997) | (.810) | (1.095) | (.398) |
Net asset value, end of period | $ 51.51 | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C, D | 8.00% | 2.36% | 14.94% | 12.97% | (11.41)% | (8.77)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.94% A | 1.64% | 1.67% | 1.70% | 2.60% | 1.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8 | $ 7 | $ 96 | $ 34 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .672 | .649 | .672 | .616 | .836 | .371 |
Net realized and unrealized gain (loss) | 3.121 | .312 | 5.604 | 4.301 | (6.227) | (4.809) |
Total from investment operations | 3.793 | .961 | 6.276 | 4.917 | (5.391) | (4.438) |
Distributions from net investment income | (.561) | (.649) | (.704) | (.607) | (.789) | (.332) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.813) | (.781) | (.896) | (.707) | (.999) | (.332) |
Net asset value, end of period | $ 51.59 | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 | $ 45.23 |
Total Return B, C, D | 7.87% | 2.08% | 14.64% | 12.69% | (11.62)% | (8.90)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.67% A | 1.39% | 1.42% | 1.45% | 2.35% | 1.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 13 | $ 51 | $ 131 | $ 111 | $ 102 | $ 132 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 | $ 45.22 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .541 | .415 | .435 | .402 | .664 | .234 |
Net realized and unrealized gain (loss) | 3.115 | .310 | 5.609 | 4.305 | (6.229) | (4.816) |
Total from investment operations | 3.656 | .725 | 6.044 | 4.707 | (5.565) | (4.582) |
Distributions from net investment income | (.544) | (.463) | (.482) | (.397) | (.605) | (.198) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.796) | (.595) | (.674) | (.497) | (.815) | (.198) |
Net asset value, end of period | $ 51.41 | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 | $ 45.22 |
Total Return B, C, D | 7.59% | 1.57% | 14.08% | 12.13% | (12.06)% | (9.18)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.16% A | .89% | .93% | .95% | 1.85% | .84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 115 | $ 107 | $ 79 | $ 99 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2040
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .793 | .885 | .910 | .833 | 1.015 | .504 |
Net realized and unrealized gain (loss) | 3.119 | .317 | 5.602 | 4.297 | (6.231) | (4.810) |
Total from investment operations | 3.912 | 1.202 | 6.512 | 5.130 | (5.216) | (4.306) |
Distributions from net investment income | (.770) | (.900) | (.940) | (.820) | (.974) | (.464) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (1.022) | (1.032) | (1.132) | (.920) | (1.184) | (.464) |
Net asset value, end of period | $ 51.48 | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C | 8.13% | 2.60% | 15.21% | 13.26% | (11.19)% | (8.64)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.16% A | 1.89% | 1.93% | 1.96% | 2.85% | 1.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,848 | $ 2,462 | $ 1,797 | $ 1,262 | $ 384 | $ 598 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .799 | .865 | .906 | .828 | 1.022 | .512 |
Net realized and unrealized gain (loss) | 3.113 | .327 | 5.616 | 4.302 | (6.238) | (4.818) |
Total from investment operations | 3.912 | 1.192 | 6.522 | 5.130 | (5.216) | (4.306) |
Distributions from net investment income | (.770) | (.900) | (.940) | (.820) | (.974) | (.464) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (1.022) | (1.032) | (1.132) | (.920) | (1.184) | (.464) |
Net asset value, end of period | $ 51.48 | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C | 8.13% | 2.58% | 15.24% | 13.26% | (11.19)% | (8.64)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.16% A | 1.89% | 1.93% | 1.96% | 2.85% | 1.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2 | $ 2 | $ 48 | $ 62 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 7.0 | 7.1 |
Fidelity Blue Chip Growth Fund | 6.5 | 6.6 |
Fidelity Disciplined Equity Fund | 7.6 | 7.8 |
Fidelity Equity-Income Fund | 10.1 | 10.3 |
Fidelity Series 100 Index Fund | 6.5 | 6.7 |
Fidelity Series Broad Market Opportunities Fund | 11.6 | 11.7 |
Fidelity Series Small Cap Opportunities Fund | 1.0 | 1.0 |
| 50.3 | 51.2 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 12.6 | 12.8 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 3.2 | 3.3 |
Fidelity Strategic Income Fund | 3.2 | 3.2 |
| 6.4 | 6.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.2 | 5.1 |
Fidelity Strategic Real Return Fund | 5.2 | 5.2 |
Fidelity Total Bond Fund | 15.7 | 15.3 |
| 26.1 | 25.6 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 2.3 | 1.9 |
Fidelity Short-Term Bond Fund | 2.3 | 2.0 |
| 4.6 | 3.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 50.3% |
|
| International Equity Funds | 12.6% |
|
| High Yield Fixed-Income Funds | 6.4% |
|
| Investment Grade Fixed-Income Funds | 26.1% |
|
| Short-Term Funds | 4.6% |
|
Six months ago | |||
| Domestic Equity Funds | 51.2% |
|
| International Equity Funds | 12.8% |
|
| High Yield Fixed-Income Funds | 6.5% |
|
| Investment Grade Fixed-Income Funds | 25.6% |
|
| Short-Term Funds | 3.9% |
|
Expected | |||
| Domestic Equity Funds | 50.0% |
|
| International Equity Funds | 12.3% |
|
| High Yield Fixed-Income Funds | 6.3% |
|
| Investment Grade Fixed-Income Funds | 26.1% |
|
| Short-Term Funds | 5.3% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2042 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 62.9% | |||
Shares | Value | ||
Domestic Equity Funds - 50.3% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 41,972 | $ 788,654 | |
Fidelity Blue Chip Growth Fund | 14,281 | 731,603 | |
Fidelity Disciplined Equity Fund | 32,863 | 844,587 | |
Fidelity Equity-Income Fund | 22,657 | 1,126,489 | |
Fidelity Series 100 Index Fund | 74,274 | 731,603 | |
Fidelity Series Broad Market Opportunities Fund | 110,624 | 1,295,407 | |
Fidelity Series Small Cap Opportunities Fund | 9,624 | 112,985 | |
TOTAL DOMESTIC EQUITY FUNDS | 5,631,328 | ||
International Equity Funds - 12.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 41,074 | 1,403,917 | |
TOTAL EQUITY FUNDS (Cost $6,038,310) |
| ||
Fixed-Income Funds - 32.5% | |||
|
|
|
|
High Yield Fixed-Income Funds - 6.4% | |||
Fidelity Capital & Income Fund | 37,444 | 360,208 | |
Fidelity Strategic Income Fund | 31,764 | 360,208 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 720,416 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.1% | |||
Fidelity Government Income Fund | 55,507 | $ 582,821 | |
Fidelity Strategic Real Return Fund | 59,654 | 582,821 | |
Fidelity Total Bond Fund | 160,910 | 1,750,701 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 2,916,343 | ||
TOTAL FIXED-INCOME FUNDS (Cost $3,537,357) |
| ||
Short-Term Funds - 4.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 257,292 | 257,292 | |
Fidelity Short-Term Bond Fund | 29,918 | 257,291 | |
TOTAL SHORT-TERM FUNDS (Cost $511,627) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,087,294) | 11,186,587 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (97) | ||
NET ASSETS - 100% | $ 11,186,490 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $10,087,294) - See accompanying schedule | $ 11,186,587 | |
Receivable for investments sold | 67,126 | |
Receivable for fund shares sold | 31 | |
Total assets | 11,253,744 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 67,153 | |
Distribution and service plan fees payable | 86 | |
Total liabilities | 67,239 | |
|
|
|
Net Assets | $ 11,186,505 | |
Net Assets consist of: |
| |
Paid in capital | $ 10,138,124 | |
Undistributed net investment income | 2,182 | |
Accumulated undistributed net realized gain (loss) on investments | (53,094) | |
Net unrealized appreciation (depreciation) on investments | 1,099,293 | |
Net Assets | $ 11,186,505 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.76 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.76) | $ 54.92 | |
Class T: | $ 51.77 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.77) | $ 53.65 | |
Class C: | $ 51.71 | |
|
|
|
Income Replacement 2042: | $ 51.76 | |
|
|
|
Institutional Class: | $ 51.75 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 152,512 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 496 | |
Independent trustees' compensation | 15 | |
Total expenses before reductions | 511 | |
Expense reductions | (15) | 496 |
Net investment income (loss) | 152,016 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 13,466 | |
Capital gain distributions from underlying funds | 109,241 |
|
Total net realized gain (loss) |
| 122,707 |
Change in net unrealized appreciation (depreciation) on underlying funds | 508,433 | |
Net gain (loss) | 631,140 | |
Net increase (decrease) in net assets resulting from operations | $ 783,156 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 152,016 | $ 117,162 |
Net realized gain (loss) | 122,707 | (18,384) |
Change in net unrealized appreciation (depreciation) | 508,433 | 71,737 |
Net increase (decrease) in net assets resulting from operations | 783,156 | 170,515 |
Distributions to shareholders from net investment income | (151,081) | (117,023) |
Distributions to shareholders from net realized gain | (34,182) | (15,935) |
Total distributions | (185,263) | (132,958) |
Share transactions - net increase (decrease) | 3,247,227 | 1,671,463 |
Total increase (decrease) in net assets | 3,845,120 | 1,709,020 |
|
|
|
Net Assets | ||
Beginning of period | 7,341,385 | 5,632,365 |
End of period (including undistributed net investment income of $2,182 and undistributed net investment income of $1,247, respectively) | $ 11,186,505 | $ 7,341,385 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .807 | .782 | .757 | .747 | .819 | .425 |
Net realized and unrealized gain (loss) | 3.215 | .281 | 5.719 | 4.285 | (6.123) | (4.836) |
Total from investment operations | 4.022 | 1.063 | 6.476 | 5.032 | (5.304) | (4.411) |
Distributions from net investment income | (.745) | (.791) | (.801) | (.717) | (.866) | (.389) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.922) | (.923) | (.996) | (.822) | (1.066) | (.389) |
Net asset value, end of period | $ 51.76 | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 | $ 45.20 |
Total Return B, C, D | 8.34% | 2.30% | 15.12% | 13.00% | (11.40)% | (8.85)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 3.21% A | 1.66% | 1.61% | 1.77% | 2.32% | 1.57% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 22 | $ 20 | $ 23 | $ 29 | $ 88 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 | $ 45.19 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .745 | .660 | .637 | .642 | .739 | .365 |
Net realized and unrealized gain (loss) | 3.216 | .287 | 5.727 | 4.281 | (6.128) | (4.852) |
Total from investment operations | 3.961 | .947 | 6.364 | 4.923 | (5.389) | (4.487) |
Distributions from net investment income | (.684) | (.675) | (.679) | (.608) | (.771) | (.323) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.861) | (.807) | (.874) | (.713) | (.971) | (.323) |
Net asset value, end of period | $ 51.77 | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 | $ 45.19 |
Total Return B, C, D | 8.21% | 2.05% | 14.85% | 12.71% | (11.62)% | (9.00)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.96% A | 1.42% | 1.35% | 1.52% | 2.07% | 1.32% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 143 | $ 132 | $ 29 | $ 37 | $ 57 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 | $ 45.19 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .622 | .427 | .402 | .430 | .560 | .226 |
Net realized and unrealized gain (loss) | 3.212 | .290 | 5.719 | 4.275 | (6.123) | (4.846) |
Total from investment operations | 3.834 | .717 | 6.121 | 4.705 | (5.563) | (4.620) |
Distributions from net investment income | (.587) | (.465) | (.456) | (.390) | (.587) | (.190) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.764) | (.597) | (.651) | (.495) | (.787) | (.190) |
Net asset value, end of period | $ 51.71 | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 | $ 45.19 |
Total Return B, C, D | 7.94% | 1.55% | 14.26% | 12.12% | (12.05)% | (9.25)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.47% A | .91% | .85% | 1.02% | 1.57% | .82% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 28 | $ 37 | $ 56 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2042
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .869 | .897 | .880 | .857 | .900 | .496 |
Net realized and unrealized gain (loss) | 3.219 | .284 | 5.719 | 4.279 | (6.114) | (4.840) |
Total from investment operations | 4.088 | 1.181 | 6.599 | 5.136 | (5.214) | (4.344) |
Distributions from net investment income | (.801) | (.909) | (.924) | (.831) | (.956) | (.456) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.978) | (1.041) | (1.119) | (.936) | (1.156) | (.456) |
Net asset value, end of period | $ 51.76 | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 |
Total Return B, C | 8.48% | 2.56% | 15.42% | 13.27% | (11.18)% | (8.72)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.46% A | 1.91% | 1.86% | 2.02% | 2.57% | 1.82% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,967 | $ 7,139 | $ 5,524 | $ 3,395 | $ 1,395 | $ 969 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .871 | .896 | .874 | .855 | .918 | .504 |
Net realized and unrealized gain (loss) | 3.217 | .275 | 5.725 | 4.281 | (6.132) | (4.848) |
Total from investment operations | 4.088 | 1.171 | 6.599 | 5.136 | (5.214) | (4.344) |
Distributions from net investment income | (.801) | (.909) | (.924) | (.831) | (.956) | (.456) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.978) | (1.041) | (1.119) | (.936) | (1.156) | (.456) |
Net asset value, end of period | $ 51.75 | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 |
Total Return B, C | 8.49% | 2.54% | 15.42% | 13.27% | (11.18)% | (8.72)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.46% A | 1.91% | 1.86% | 2.02% | 2.57% | 1.82% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 28 | $ 26 | $ 29 | $ 38 | $ 57 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (Unaudited)
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.
Each Fund offers Class A, Class T, Class C, Income Replacement and Institutional Class shares, except for Fidelity Income Replacement 2016 Fund. Fidelity Income Replacement 2016 Fund offers Income Replacement shares. Each class has equal rights as to assets and voting privileges, except for matters affecting a single class. Effective after the close of business on January 31, 2012, Fidelity Income Replacement 2016 Fund's Class A, Class T, Class C and Institutional Class shares were closed to new accounts and additional purchases, except for reinvestments. Investment income, realized and unrealized capital gains and losses, the common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated 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.
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 following summarizes the significant accounting policies of the Funds:
Security 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.
Expenses. 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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 income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Semiannual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
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. Temporary book-tax differences 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 | Gross unrealized | Net unrealized |
Fidelity Income Replacement 2016 Fund | $ 7,284,354 | $ 500,009 | $ (1,488) | $ 498,521 |
Fidelity Income Replacement 2018 Fund | 5,335,703 | 166,613 | (46,460) | 120,153 |
Fidelity Income Replacement 2020 Fund | 5,258,433 | 450,677 | (12,987) | 437,690 |
Fidelity Income Replacement 2022 Fund | 4,621,853 | 160,574 | (71,279) | 89,295 |
Fidelity Income Replacement 2024 Fund | 2,425,725 | 115,724 | (20,930) | 94,794 |
Fidelity Income Replacement 2026 Fund | 1,817,621 | 71,610 | (13,987) | 57,623 |
Fidelity Income Replacement 2028 Fund | 5,929,937 | 422,004 | (41,048) | 380,956 |
Fidelity Income Replacement 2030 Fund | 3,746,920 | 402,376 | (8,140) | 394,236 |
Fidelity Income Replacement 2032 Fund | 3,923,645 | 266,401 | (17,131) | 249,270 |
Fidelity Income Replacement 2034 Fund | 2,379,868 | 361,991 | (3,906) | 358,085 |
Fidelity Income Replacement 2036 Fund | 3,620,444 | 147,942 | (45,795) | 102,147 |
Fidelity Income Replacement 2038 Fund | 2,121,986 | 309,737 | (5,291) | 304,446 |
Fidelity Income Replacement 2040 Fund | 2,825,258 | 171,292 | (10,313) | 160,979 |
Fidelity Income Replacement 2042 Fund | 10,141,519 | 1,079,573 | (34,505) | 1,045,068 |
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. At July 31,2012, capital loss carryforwards were as follows:
| Fiscal year of expiration |
| ||
| 2017 | 2018 | 2019 | Total with expiration |
Fidelity Income Replacement 2016 Fund | $ (11,321) | $ (234,074) | $ (128,097) | $ (373,492) |
Fidelity Income Replacement 2018 Fund | (78,455) | (410,862) | (37,212) | (526,529) |
Fidelity Income Replacement 2020 Fund | (2,795) | (118,446) | (22,198) | (143,439) |
Fidelity Income Replacement 2022 Fund | (33,352) | (481,397) | (74,118) | (588,867) |
Fidelity Income Replacement 2024 Fund | - | (4,778) | (58,344) | (63,122) |
Fidelity Income Replacement 2026 Fund | - | (194,108) | - | (194,108) |
Fidelity Income Replacement 2028 Fund | - | (313,738) | (210,425) | (524,163) |
Fidelity Income Replacement 2030 Fund | (33,830) | (85,896) | - | (119,726) |
Fidelity Income Replacement 2032 Fund | - | (182,121) | - | (182,121) |
Fidelity Income Replacement 2034 Fund | - | (48,212) | (43,660) | (91,872) |
Fidelity Income Replacement 2036 Fund | (33) | (183,763) | (2,877) | (186,673) |
Fidelity Income Replacement 2038 Fund | - | (3,448) | (48,487) | (51,935) |
Fidelity Income Replacement 2040 Fund | - | (54,176) | (16,690) | (70,866) |
Fidelity Income Replacement 2042 Fund | (2,106) | (15,348) | (33,939) | (51,393) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
| No expiration |
|
| |
| Short-term | Long-term | Total no expiration | Total capital loss |
Fidelity Income Replacement 2016 Fund | $ (28,964) | $ (5,046) | $ (34,010) | $ (407,502) |
Fidelity Income Replacement 2018 Fund | - | - | - | (526,529) |
Fidelity Income Replacement 2020 Fund | - | - | - | (143,439) |
Fidelity Income Replacement 2022 Fund | - | - | - | (588,867) |
Fidelity Income Replacement 2024 Fund | - | - | - | (63,122) |
Fidelity Income Replacement 2026 Fund | - | - | - | (194,108) |
Fidelity Income Replacement 2028 Fund | - | - | - | (524,163) |
Fidelity Income Replacement 2030 Fund | (24,894) | - | (24,894) | (144,620) |
Fidelity Income Replacement 2032 Fund | - | - | - | (182,121) |
Fidelity Income Replacement 2034 Fund | - | - | - | (91,872) |
Fidelity Income Replacement 2036 Fund | - | - | - | (186,673) |
Fidelity Income Replacement 2038 Fund | - | - | - | (51,935) |
Fidelity Income Replacement 2040 Fund | - | - | - | (70,866) |
Fidelity Income Replacement 2042 Fund | (18,020) | - | (18,020) | (69,413) |
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
Fidelity Income Replacement 2016 Fund | 1,612,200 | 2,014,210 |
Fidelity Income Replacement 2018 Fund | 1,063,580 | 1,372,234 |
Fidelity Income Replacement 2020 Fund | 1,736,732 | 1,005,431 |
Fidelity Income Replacement 2022 Fund | 867,472 | 586,656 |
Fidelity Income Replacement 2024 Fund | 1,130,313 | 775,431 |
Fidelity Income Replacement 2026 Fund | 445,947 | 417,540 |
Fidelity Income Replacement 2028 Fund | 914,622 | 549,543 |
Fidelity Income Replacement 2030 Fund | 699,873 | 704,175 |
Fidelity Income Replacement 2032 Fund | 1,280,616 | 566,865 |
Fidelity Income Replacement 2034 Fund | 514,189 | 211,642 |
Fidelity Income Replacement 2036 Fund | 966,871 | 236,875 |
Fidelity Income Replacement 2038 Fund | 521,617 | 292,410 |
Fidelity Income Replacement 2040 Fund | 532,550 | 314,650 |
Fidelity Income Replacement 2042 Fund | 4,396,915 | 1,073,681 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), 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, Strategic Advisers pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid by each Fund is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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 the 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 | Service | Total | Retained |
Class A | -% | .25% | $ 1,065 | $ - |
Class T | .25% | .25% | 436 | - |
Class C | .75% | .25% | 4,218 | 393 |
|
|
| $ 5,719 | $ 393 |
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2018 Fund | Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 918 | $ - |
Class T | .25% | .25% | 316 | 4 |
Class C | .75% | .25% | 2,148 | 1,151 |
|
|
| $ 3,382 | $ 1,155 |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A | -% | .25% | $ 508 | $ 221 |
Class T | .25% | .25% | 472 | - |
Class C | .75% | .25% | 1,582 | 273 |
|
|
| $ 2,562 | $ 494 |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A | -% | .25% | $ 486 | $ - |
Class T | .25% | .25% | 6 | 2 |
Class C | .75% | .25% | 143 | 15 |
|
|
| $ 635 | $ 17 |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A | -% | .25% | $ 272 | $ 48 |
Class T | .25% | .25% | 442 | 50 |
Class C | .75% | .25% | 615 | 17 |
|
|
| $ 1,329 | $ 115 |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A | -% | .25% | $ 381 | $ - |
Class T | .25% | .25% | 288 | 18 |
Class C | .75% | .25% | 48 | 49 |
|
|
| $ 717 | $ 67 |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A | -% | .25% | $ 173 | $ - |
Class T | .25% | .25% | 324 | - |
Class C | .75% | .25% | 147 | - |
|
|
| $ 644 | $ - |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A | -% | .25% | $ 110 | $ 2 |
Class T | .25% | .25% | 34 | 16 |
Class C | .75% | .25% | 1,544 | 161 |
|
|
| $ 1,688 | $ 179 |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A | -% | .25% | $ 281 | $ 7 |
Class T | .25% | .25% | 61 | 61 |
Class C | .75% | .25% | 268 | 236 |
|
|
| $ 610 | $ 304 |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A | -% | .25% | $ 24 | $ 24 |
Class T | .25% | .25% | 60 | 60 |
Class C | .75% | .25% | 275 | 275 |
|
|
| $ 359 | $ 359 |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A | -% | .25% | $ 34 | $ 26 |
Class T | .25% | .25% | 710 | 14 |
Class C | .75% | .25% | 882 | - |
|
|
| $ 1,626 | $ 40 |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A | -% | .25% | $ 89 | $ 2 |
Class T | .25% | .25% | 271 | 12 |
Class C | .75% | .25% | 382 | 7 |
|
|
| $ 742 | $ 21 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2040 Fund | Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 8 | $ 7 |
Class T | .25% | .25% | 108 | 14 |
Class C | .75% | .25% | 554 | 141 |
|
|
| $ 670 | $ 162 |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A | -% | .25% | $ 27 | $ 7 |
Class T | .25% | .25% | 344 | 64 |
Class C | .75% | .25% | 125 | 125 |
|
|
| $ 496 | $ 196 |
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 the 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:
| Retained by FDC |
Fidelity Income Replacement 2016 Fund |
|
Class C* | $ 19 |
Fidelity Income Replacement 2018 Fund |
|
Class C* | $ 155 |
Fidelity Income Replacement 2026 Fund |
|
Class T | $ 7 |
Fidelity Income Replacement 2038 Fund |
|
Class A | $ 232 |
Fidelity Income Replacement 2042 Fund |
|
Class A | $ 2 |
* 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 fees applicable to each class. Some expenses, for example interest expense, are excluded from this reimbursement.
The following Funds were in reimbursement during the period:
| Reimbursement* |
Fidelity Income Replacement 2016 Fund | $ 15 |
Fidelity Income Replacement 2018 Fund | 11 |
Fidelity Income Replacement 2020 Fund | 9 |
Fidelity Income Replacement 2022 Fund | 8 |
Fidelity Income Replacement 2024 Fund | 4 |
Fidelity Income Replacement 2026 Fund | 4 |
Fidelity Income Replacement 2028 Fund | 11 |
Fidelity Income Replacement 2030 Fund | 7 |
Fidelity Income Replacement 2032 Fund | 7 |
Fidelity Income Replacement 2034 Fund | 5 |
Fidelity Income Replacement 2036 Fund | 6 |
Fidelity Income Replacement 2038 Fund | 4 |
Fidelity Income Replacement 2040 Fund | 5 |
Fidelity Income Replacement 2042 Fund | 15 |
* Represents total amount reimbursed to the Fund. Each class has received pro-rata allocation of reimbursement
Semiannual Report
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
Fidelity Income Replacement 2016 Fund |
|
|
From net investment income |
|
|
Class A | $ 5,523 | $ 17,921 |
Class T | 874 | 3,481 |
Class C | 2,680 | 7,453 |
Income Replacement 2016 | 46,429 | 115,628 |
Institutional Class | 308 | 1,088 |
Total | $ 55,814 | $ 145,571 |
From net realized gain |
|
|
Class A | $ 3,311 | $ 4,976 |
Class T | 617 | 1,014 |
Class C | 3,251 | 4,218 |
Income Replacement 2016 | 22,904 | 28,030 |
Institutional Class | 143 | 312 |
Total | $ 30,226 | $ 38,550 |
Fidelity Income Replacement 2018 Fund |
|
|
From net investment income |
|
|
Class A | $ 6,667 | $ 11,734 |
Class T | 985 | 1,790 |
Class C | 2,330 | 2,008 |
Income Replacement 2018 | 41,937 | 68,941 |
Institutional Class | 4,531 | 3,499 |
Total | $ 56,450 | $ 87,972 |
From net realized gain |
|
|
Class A | $ 4,058 | $ 3,011 |
Class T | 695 | 560 |
Class C | 2,364 | 852 |
Income Replacement 2018 | 22,722 | 15,393 |
Institutional Class | 2,370 | 512 |
Total | $ 32,209 | $ 20,328 |
Fidelity Income Replacement 2020 Fund |
|
|
From net investment income |
|
|
Class A | $ 4,173 | $ 6,597 |
Class T | 1,701 | 2,545 |
Class C | 2,111 | 2,699 |
Income Replacement 2020 | 48,862 | 61,446 |
Institutional Class | 159 | 563 |
Total | $ 57,006 | $ 73,850 |
From net realized gain |
|
|
Class A | $ 1,965 | $ 1,517 |
Class T | 907 | 694 |
Class C | 1,535 | 1,162 |
Income Replacement 2020 | 20,732 | 11,189 |
Institutional Class | 67 | 119 |
Total | $ 25,206 | $ 14,681 |
Fidelity Income Replacement 2022 Fund |
|
|
From net investment income |
|
|
Class A | $ 4,208 | $ 2,823 |
Class T | 9 | 136 |
Class C | 212 | 226 |
Income Replacement 2022 | 51,037 | 60,936 |
Institutional Class | 42 | 60 |
Total | $ 55,508 | $ 64,181 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2022 Fund |
|
|
From net realized gain |
|
|
Class A | $ 1,895 | $ 242 |
Class T | 3 | 32 |
Class C | 142 | 95 |
Income Replacement 2022 | 19,965 | 10,582 |
Institutional Class | 17 | 11 |
Total | $ 22,022 | $ 10,962 |
Fidelity Income Replacement 2024 Fund |
|
|
From net investment income |
|
|
Class A | $ 2,165 | $ 3,343 |
Class T | 2,037 | 2,287 |
Class C | 1,027 | 1,494 |
Income Replacement 2024 | 22,515 | 25,214 |
Institutional Class | 355 | 445 |
Total | $ 28,099 | $ 32,783 |
From net realized gain |
|
|
Class A | $ 647 | $ 710 |
Class T | 748 | 601 |
Class C | 465 | 575 |
Income Replacement 2024 | 7,431 | 4,764 |
Institutional Class | 108 | 80 |
Total | $ 9,399 | $ 6,730 |
Fidelity Income Replacement 2026 Fund |
|
|
From net investment income |
|
|
Class A | $ 3,781 | $ 1,894 |
Class T | 908 | 1,958 |
Class C | 85 | 1,363 |
Income Replacement 2026 | 21,271 | 29,280 |
Institutional Class | 345 | 440 |
Total | $ 26,390 | $ 34,935 |
From net realized gain |
|
|
Class A | $ 1,333 | $ 335 |
Class T | 329 | 383 |
Class C | 41 | 570 |
Income Replacement 2026 | 7,049 | 5,283 |
Institutional Class | 111 | 75 |
Total | $ 8,863 | $ 6,646 |
Fidelity Income Replacement 2028 Fund |
|
|
From net investment income |
|
|
Class A | $ 1,737 | $ 1,930 |
Class T | 1,484 | 1,741 |
Class C | 228 | 376 |
Income Replacement 2028 | 79,676 | 96,589 |
Institutional Class | 348 | 441 |
Total | $ 83,473 | $ 101,077 |
From net realized gain |
|
|
Class A | $ 602 | $ 325 |
Class T | 568 | 397 |
Class C | 107 | 135 |
Income Replacement 2028 | 25,172 | 16,208 |
Institutional Class | 110 | 73 |
Total | $ 26,559 | $ 17,138 |
Semiannual Report
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2030 Fund |
|
|
From net investment income |
|
|
Class A | $ 1,148 | $ 1,185 |
Class T | 159 | 164 |
Class C | 2,955 | 2,987 |
Income Replacement 2030 | 50,704 | 72,596 |
Institutional Class | 375 | 441 |
Total | $ 55,341 | $ 77,373 |
From net realized gain |
|
|
Class A | $ 386 | $ 209 |
Class T | 60 | 38 |
Class C | 1,336 | 991 |
Income Replacement 2030 | 15,711 | 12,458 |
Institutional Class | 111 | 70 |
Total | $ 17,604 | $ 13,766 |
Fidelity Income Replacement 2032 Fund |
|
|
From net investment income |
|
|
Class A | $ 2,892 | $ 3,369 |
Class T | 282 | 301 |
Class C | 516 | 213 |
Income Replacement 2032 | 54,410 | 35,223 |
Institutional Class | 242 | 297 |
Total | $ 58,342 | $ 39,403 |
From net realized gain |
|
|
Class A | $ 1,834 | $ 7,528 |
Class T | 199 | 816 |
Class C | 440 | 1,719 |
Income Replacement 2032 | 30,021 | 95,178 |
Institutional Class | 140 | 574 |
Total | $ 32,634 | $ 105,815 |
Fidelity Income Replacement 2034 Fund |
|
|
From net investment income |
|
|
Class A | $ 246 | $ 276 |
Class T | 291 | 304 |
Class C | 467 | 184 |
Income Replacement 2034 | 32,978 | 37,641 |
Institutional Class | 1,847 | 2,077 |
Total | $ 35,829 | $ 40,482 |
From net realized gain |
|
|
Class A | $ 76 | $ 50 |
Class T | 99 | 65 |
Class C | 184 | 49 |
Income Replacement 2034 | 9,314 | 5,761 |
Institutional Class | 521 | 307 |
Total | $ 10,194 | $ 6,232 |
Fidelity Income Replacement 2036 Fund |
|
|
From net investment income |
|
|
Class A | $ 325 | $ 435 |
Class T | 3,490 | 3,886 |
Class C | 1,828 | 1,851 |
Income Replacement 2036 | 44,233 | 44,807 |
Institutional Class | 9 | 346 |
Total | $ 49,885 | $ 51,325 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2036 Fund |
|
|
From net realized gain |
|
|
Class A | $ 81 | $ 75 |
Class T | 1,001 | 793 |
Class C | 622 | 576 |
Income Replacement 2036 | 11,064 | 6,275 |
Institutional Class | 2 | 78 |
Total | $ 12,770 | $ 7,797 |
Fidelity Income Replacement 2038 Fund |
|
|
From net investment income |
|
|
Class A | $ 804 | $ 670 |
Class T | 1,357 | 1,443 |
Class C | 806 | 658 |
Income Replacement 2038 | 31,311 | 24,679 |
Institutional Class | 398 | 460 |
Total | $ 34,676 | $ 27,910 |
From net realized gain |
|
|
Class A | $ 210 | $ 96 |
Class T | 429 | 297 |
Class C | 305 | 202 |
Income Replacement 2038 | 8,397 | 3,260 |
Institutional Class | 106 | 69 |
Total | $ 9,447 | $ 3,924 |
Fidelity Income Replacement 2040 Fund |
|
|
From net investment income |
|
|
Class A | $ 106 | $ 967 |
Class T | 213 | 1,654 |
Class C | 1,204 | 819 |
Income Replacement 2040 | 41,482 | 36,057 |
Institutional Class | 32 | 532 |
Total | $ 43,037 | $ 40,029 |
From net realized gain |
|
|
Class A | $ 37 | $ 224 |
Class T | 107 | 359 |
Class C | 555 | 216 |
Income Replacement 2040 | 13,452 | 4,701 |
Institutional Class | 10 | 124 |
Total | $ 14,161 | $ 5,624 |
Fidelity Income Replacement 2042 Fund |
|
|
From net investment income |
|
|
Class A | $ 314 | $ 362 |
Class T | 1,867 | 503 |
Class C | 296 | 232 |
Income Replacement 2042 | 148,180 | 115,451 |
Institutional Class | 424 | 475 |
Total | $ 151,081 | $ 117,023 |
From net realized gain |
|
|
Class A | $ 74 | $ 53 |
Class T | 482 | 67 |
Class C | 89 | 65 |
Income Replacement 2042 | 33,444 | 15,682 |
Institutional Class | 93 | 68 |
Total | $ 34,182 | $ 15,935 |
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2016 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 142 | 365 | 7,195 | 17,945 |
Shares redeemed | (1,784) | (18,902) | (90,702) | (929,690) |
Net increase (decrease) | (1,642) | (18,537) | $ (83,507) | $ (911,745) |
Class T |
|
|
|
|
Shares sold | - | 265 | $ - | $ 12,983 |
Reinvestment of distributions | 24 | 63 | 1,214 | 3,101 |
Shares redeemed | (823) | (7,104) | (41,841) | (347,550) |
Net increase (decrease) | (799) | (6,776) | $ (40,627) | $ (331,466) |
Class C |
|
|
|
|
Shares sold | - | 6,125 | $ - | $ 300,000 |
Reinvestment of distributions | 84 | 157 | 4,263 | 7,690 |
Shares redeemed | (2,109) | (3,855) | (107,326) | (191,514) |
Net increase (decrease) | (2,025) | 2,427 | $ (103,063) | $ 116,176 |
Income Replacement 2016 |
|
|
|
|
Shares sold | 18,313 | 28,998 | $ 931,724 | $ 1,428,856 |
Reinvestment of distributions | 711 | 1,178 | 36,119 | 57,868 |
Shares redeemed | (23,078) | (46,750) | (1,174,554) | (2,309,726) |
Net increase (decrease) | (4,054) | (16,574) | $ (206,711) | $ (823,002) |
Institutional Class |
|
|
|
|
Shares sold | - | 752 | $ - | $ 36,796 |
Reinvestment of distributions | 9 | 15 | 451 | 731 |
Shares redeemed | (285) | (675) | (14,428) | (33,700) |
Net increase (decrease) | (276) | 92 | $ (13,977) | $ 3,827 |
Fidelity Income Replacement 2018 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 1,088 | $ - | $ 54,624 |
Reinvestment of distributions | 136 | 161 | 6,960 | 7,873 |
Shares redeemed | (1,223) | (1,911) | (62,567) | (94,143) |
Net increase (decrease) | (1,087) | (662) | $ (55,607) | $ (31,646) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 16 | 18 | 829 | 863 |
Shares redeemed | (169) | (458) | (8,666) | (22,651) |
Net increase (decrease) | (153) | (440) | $ (7,837) | $ (21,788) |
Class C |
|
|
|
|
Shares sold | - | 4,696 | $ - | $ 235,500 |
Reinvestment of distributions | 86 | 47 | 4,364 | 2,324 |
Shares redeemed | (660) | (586) | (33,734) | (28,893) |
Net increase (decrease) | (574) | 4,157 | $ (29,370) | $ 208,931 |
Income Replacement 2018 |
|
|
|
|
Shares sold | 9,114 | 19,759 | $ 466,524 | $ 973,771 |
Reinvestment of distributions | 562 | 478 | 28,766 | 23,334 |
Shares redeemed | (14,109) | (19,401) | (721,500) | (957,919) |
Net increase (decrease) | (4,433) | 836 | $ (226,210) | $ 39,186 |
Institutional Class |
|
|
|
|
Shares sold | 2,812 | 6,698 | $ 143,858 | $ 338,000 |
Reinvestment of distributions | 103 | 12 | 5,247 | 589 |
Shares redeemed | (3,543) | (3,839) | (181,936) | (185,000) |
Net increase (decrease) | (628) | 2,871 | $ (32,831) | $ 153,589 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 179 | $ 17 | $ 9,014 |
Reinvestment of distributions | 84 | 105 | 4,308 | 5,145 |
Shares redeemed | (560) | (946) | (28,978) | (46,428) |
Net increase (decrease) | (476) | (662) | $ (24,653) | $ (32,269) |
Class T |
|
|
|
|
Shares sold | 1 | - | $ 40 | $ - |
Reinvestment of distributions | 43 | 54 | 2,231 | 2,633 |
Shares redeemed | (179) | (240) | (9,280) | (11,738) |
Net increase (decrease) | (135) | (186) | $ (7,009) | $ (9,105) |
Class C |
|
|
|
|
Shares sold | 568 | 1,771 | $ 29,000 | $ 87,281 |
Reinvestment of distributions | 51 | 57 | 2,614 | 2,797 |
Shares redeemed | (552) | (355) | (28,500) | (17,952) |
Net increase (decrease) | 67 | 1,473 | $ 3,114 | $ 72,126 |
Income Replacement 2020 |
|
|
|
|
Shares sold | 26,206 | 29,581 | $ 1,354,259 | $ 1,469,844 |
Reinvestment of distributions | 728 | 529 | 37,464 | 25,967 |
Shares redeemed | (12,999) | (13,868) | (672,215) | (675,878) |
Net increase (decrease) | 13,935 | 16,242 | $ 719,508 | $ 819,933 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 5 | 14 | 226 | 682 |
Shares redeemed | - | (399) | - | (20,000) |
Net increase (decrease) | 5 | (385) | $ 226 | $ (19,318) |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 6,423 | $ - | $ 316,060 |
Reinvestment of distributions | 61 | 23 | 3,145 | 1,138 |
Shares redeemed | (239) | (243) | (12,313) | (12,069) |
Net increase (decrease) | (178) | 6,203 | $ (9,168) | $ 305,129 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | - | 3 | 12 | 168 |
Shares redeemed | (91) | (357) | (4,747) | (17,200) |
Net increase (decrease) | (91) | (354) | $ (4,735) | $ (17,032) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 1 | 39 | 35 |
Shares redeemed | - | (92) | - | (4,361) |
Net increase (decrease) | 1 | (91) | $ 39 | $ (4,326) |
Income Replacement 2022 |
|
|
|
|
Shares sold | 10,053 | 29,354 | $ 519,150 | $ 1,440,819 |
Reinvestment of distributions | 530 | 314 | 27,261 | 15,180 |
Shares redeemed | (5,583) | (18,125) | (287,089) | (881,196) |
Net increase (decrease) | 5,000 | 11,543 | $ 259,322 | $ 574,803 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 1 | 59 | 71 |
Shares redeemed | - | (11) | - | (514) |
Net increase (decrease) | 1 | (10) | $ 59 | $ (443) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 4,822 | 622 | $ 249,930 | $ 30,000 |
Reinvestment of distributions | 41 | 61 | 2,105 | 2,969 |
Shares redeemed | (1,305) | (226) | (67,177) | (10,864) |
Net increase (decrease) | 3,558 | 457 | $ 184,858 | $ 22,105 |
Class T |
|
|
|
|
Shares sold | - | 2,920 | $ - | $ 135,760 |
Reinvestment of distributions | 28 | 22 | 1,435 | 1,077 |
Shares redeemed | (95) | (289) | (4,901) | (14,000) |
Net increase (decrease) | (67) | 2,653 | $ (3,466) | $ 122,837 |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 6 | 4 | 313 | 209 |
Shares redeemed | (1,281) | (75) | (66,125) | (3,683) |
Net increase (decrease) | (1,275) | (71) | $ (65,812) | $ (3,474) |
Income Replacement 2024 |
|
|
|
|
Shares sold | 10,317 | 16,063 | $ 537,857 | $ 781,886 |
Reinvestment of distributions | 288 | 214 | 14,828 | 10,356 |
Shares redeemed | (6,442) | (15,497) | (333,583) | (749,124) |
Net increase (decrease) | 4,163 | 780 | $ 219,102 | $ 43,118 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 462 | 525 |
Shares redeemed | - | (79) | - | (3,719) |
Net increase (decrease) | 9 | (68) | $ 462 | $ (3,194) |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 3,297 | 671 | $ 164,296 | $ 33,486 |
Reinvestment of distributions | 86 | 21 | 4,372 | 1,014 |
Shares redeemed | (311) | (98) | (15,970) | (4,755) |
Net increase (decrease) | 3,072 | 594 | $ 152,698 | $ 29,745 |
Class T |
|
|
|
|
Shares sold | 57 | 3,515 | $ 2,971 | $ 173,430 |
Reinvestment of distributions | 19 | 39 | 969 | 1,904 |
Shares redeemed | (4,547) | (236) | (228,111) | (11,308) |
Net increase (decrease) | (4,471) | 3,318 | $ (224,171) | $ 164,026 |
Class C |
|
|
|
|
Shares sold | - | - | $ 4 | $ - |
Reinvestment of distributions | 3 | 41 | 126 | 1,933 |
Shares redeemed | - | (3,579) | - | (176,288) |
Net increase (decrease) | 3 | (3,538) | $ 130 | $ (174,355) |
Income Replacement 2026 |
|
|
|
|
Shares sold | 7,827 | 15,104 | $ 398,432 | $ 721,544 |
Reinvestment of distributions | 351 | 331 | 17,944 | 15,918 |
Shares redeemed | (6,422) | (22,948) | (332,935) | (1,095,887) |
Net increase (decrease) | 1,756 | (7,513) | $ 83,441 | $ (358,425) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 456 | 515 |
Shares redeemed | - | (79) | - | (3,694) |
Net increase (decrease) | 9 | (68) | $ 456 | $ (3,179) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 1,288 | $ - | $ 61,784 |
Reinvestment of distributions | 45 | 45 | 2,339 | 2,202 |
Shares redeemed | - | (1,360) | - | (64,118) |
Net increase (decrease) | 45 | (27) | $ 2,339 | $ (132) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 15 | 8 | 794 | 397 |
Shares redeemed | (37) | (83) | (1,935) | (4,076) |
Net increase (decrease) | (22) | (75) | $ (1,141) | $ (3,679) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 4 | 3 | 196 | 163 |
Shares redeemed | (183) | (326) | (9,500) | (16,000) |
Net increase (decrease) | (179) | (323) | $ (9,304) | $ (15,837) |
Income Replacement 2028 |
|
|
|
|
Shares sold | 10,846 | 18,525 | $ 562,138 | $ 916,759 |
Reinvestment of distributions | 954 | 574 | 49,221 | 27,535 |
Shares redeemed | (5,521) | (27,768) | (286,737) | (1,327,202) |
Net increase (decrease) | 6,279 | (8,669) | $ 324,622 | $ (382,908) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 458 | 514 |
Shares redeemed | - | (79) | - | (3,680) |
Net increase (decrease) | 9 | (68) | $ 458 | $ (3,166) |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 3 | 508 | $ 159 | $ 25,016 |
Reinvestment of distributions | 17 | 6 | 870 | 292 |
Shares redeemed | (20) | (249) | (1,035) | (12,382) |
Net increase (decrease) | - | 265 | $ (6) | $ 12,926 |
Class T |
|
|
|
|
Shares sold | 5 | 130 | $ 259 | $ 5,786 |
Reinvestment of distributions | 4 | 4 | 219 | 202 |
Shares redeemed | - | (172) | - | (7,763) |
Net increase (decrease) | 9 | (38) | $ 478 | $ (1,775) |
Class C |
|
|
|
|
Shares sold | - | 1,702 | $ - | $ 80,000 |
Reinvestment of distributions | 49 | 44 | 2,479 | 2,115 |
Shares redeemed | (447) | (960) | (22,924) | (46,183) |
Net increase (decrease) | (398) | 786 | $ (20,445) | $ 35,932 |
Income Replacement 2030 |
|
|
|
|
Shares sold | 8,790 | 18,798 | $ 455,387 | $ 902,632 |
Reinvestment of distributions | 803 | 726 | 41,141 | 34,661 |
Shares redeemed | (10,595) | (28,344) | (541,570) | (1,372,064) |
Net increase (decrease) | (1,002) | (8,820) | $ (45,042) | $ (434,771) |
Institutional Class |
|
|
|
|
Shares sold | 538 | - | $ 27,920 | $ - |
Reinvestment of distributions | 9 | 11 | 486 | 511 |
Shares redeemed | - | (79) | - | (3,667) |
Net increase (decrease) | 547 | (68) | $ 28,406 | $ (3,156) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 94 | 220 | 4,569 | 10,424 |
Shares redeemed | (161) | (52) | (8,063) | (2,367) |
Net increase (decrease) | (67) | 168 | $ (3,494) | $ 8,057 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 24 | 481 | 1,117 |
Shares redeemed | - | (78) | - | (3,575) |
Net increase (decrease) | 9 | (54) | $ 481 | $ (2,458) |
Class C |
|
|
|
|
Shares sold | - | 660 | $ - | $ 32,801 |
Reinvestment of distributions | 20 | 41 | 957 | 1,932 |
Shares redeemed | - | (65) | - | (2,961) |
Net increase (decrease) | 20 | 636 | $ 957 | $ 31,772 |
Income Replacement 2032 |
|
|
|
|
Shares sold | 20,621 | 42,168 | $ 1,012,599 | $ 2,026,945 |
Reinvestment of distributions | 1,308 | 2,499 | 63,971 | 118,902 |
Shares redeemed | (7,595) | (8,682) | (378,507) | (414,301) |
Net increase (decrease) | 14,334 | 35,985 | $ 698,063 | $ 1,731,546 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 18 | 382 | 871 |
Shares redeemed | - | (54) | - | (2,502) |
Net increase (decrease) | 8 | (36) | $ 382 | $ (1,631) |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 6 | 7 | 322 | 326 |
Shares redeemed | - | (59) | - | (2,697) |
Net increase (decrease) | 6 | (52) | $ 322 | $ (2,371) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 8 | 390 | 369 |
Shares redeemed | - | (77) | - | (3,548) |
Net increase (decrease) | 8 | (69) | $ 390 | $ (3,179) |
Class C |
|
|
|
|
Shares sold | 582 | 517 | $ 30,000 | $ 25,724 |
Reinvestment of distributions | 13 | 5 | 651 | 233 |
Shares redeemed | (582) | (58) | (29,859) | (2,686) |
Net increase (decrease) | 13 | 464 | $ 792 | $ 23,271 |
Income Replacement 2034 |
|
|
|
|
Shares sold | 6,069 | 3,140 | $ 314,745 | $ 153,765 |
Reinvestment of distributions | 489 | 241 | 24,853 | 11,289 |
Shares redeemed | (1,168) | (2,549) | (59,892) | (121,949) |
Net increase (decrease) | 5,390 | 832 | $ 279,706 | $ 43,105 |
Institutional Class |
|
|
|
|
Shares sold | - | 258 | $ - | $ 12,168 |
Reinvestment of distributions | 47 | 50 | 2,368 | 2,360 |
Shares redeemed | (12) | (14) | (591) | (664) |
Net increase (decrease) | 35 | 294 | $ 1,777 | $ 13,864 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 11 | 406 | 510 |
Shares redeemed | (112) | (92) | (5,700) | (4,164) |
Net increase (decrease) | (104) | (81) | $ (5,294) | $ (3,654) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 54 | 31 | 2,706 | 1,410 |
Shares redeemed | (165) | (264) | (8,395) | (12,509) |
Net increase (decrease) | (111) | (233) | $ (5,689) | $ (11,099) |
Class C |
|
|
|
|
Shares sold | - | 30 | $ - | $ 1,500 |
Reinvestment of distributions | 49 | 52 | 2,450 | 2,427 |
Shares redeemed | (140) | (959) | (7,074) | (46,079) |
Net increase (decrease) | (91) | (877) | $ (4,624) | $ (42,152) |
Income Replacement 2036 |
|
|
|
|
Shares sold | 14,595 | 20,071 | $ 739,494 | $ 968,864 |
Reinvestment of distributions | 566 | 223 | 28,539 | 10,328 |
Shares redeemed | (974) | (22,004) | (49,621) | (1,034,063) |
Net increase (decrease) | 14,187 | (1,710) | $ 718,412 | $ (54,871) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | - | 9 | 12 | 424 |
Shares redeemed | - | (563) | - | (27,876) |
Net increase (decrease) | - | (554) | $ 12 | $ (27,452) |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 577 | 851 | $ 29,138 | $ 39,713 |
Reinvestment of distributions | 20 | 16 | 1,014 | 766 |
Shares redeemed | (610) | - | (30,000) | - |
Net increase (decrease) | (13) | 867 | $ 152 | $ 40,479 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 22 | 13 | 1,136 | 612 |
Shares redeemed | (39) | (465) | (1,970) | (20,928) |
Net increase (decrease) | (17) | (452) | $ (834) | $ (20,316) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 22 | 19 | 1,111 | 859 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 22 | 19 | $ 1,111 | $ 859 |
Income Replacement 2038 |
|
|
|
|
Shares sold | 6,786 | 20,341 | $ 339,548 | $ 976,884 |
Reinvestment of distributions | 586 | 325 | 29,113 | 15,074 |
Shares redeemed | (3,195) | (11,169) | (159,002) | (518,978) |
Net increase (decrease) | 4,177 | 9,497 | $ 209,659 | $ 472,980 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 11 | 504 | 529 |
Shares redeemed | - | (86) | - | (3,849) |
Net increase (decrease) | 10 | (75) | $ 504 | $ (3,320) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2040 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 4 | 7 | $ 190 | $ 317 |
Reinvestment of distributions | 3 | 26 | 143 | 1,191 |
Shares redeemed | - | (1,864) | - | (90,268) |
Net increase (decrease) | 7 | (1,831) | $ 333 | $ (88,760) |
Class T |
|
|
|
|
Shares sold | 45 | 63 | $ 2,240 | $ 2,938 |
Reinvestment of distributions | 6 | 44 | 320 | 2,013 |
Shares redeemed | (844) | (1,755) | (42,976) | (82,476) |
Net increase (decrease) | (793) | (1,648) | $ (40,416) | $ (77,525) |
Class C |
|
|
|
|
Shares sold | - | 543 | $ - | $ 26,345 |
Reinvestment of distributions | 36 | 22 | 1,759 | 1,035 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 36 | 565 | $ 1,759 | $ 27,380 |
Income Replacement 2040 |
|
|
|
|
Shares sold | 7,591 | 26,082 | $ 383,659 | $ 1,264,360 |
Reinvestment of distributions | 810 | 331 | 40,386 | 15,315 |
Shares redeemed | (3,754) | (12,843) | (187,218) | (618,513) |
Net increase (decrease) | 4,647 | 13,570 | $ 236,827 | $ 661,162 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 14 | 42 | 656 |
Shares redeemed | - | (961) | - | (44,356) |
Net increase (decrease) | 1 | (947) | $ 42 | $ (43,700) |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 5 | 245 | $ 254 | $ 11,886 |
Reinvestment of distributions | 8 | 9 | 388 | 415 |
Shares redeemed | - | (304) | - | (14,424) |
Net increase (decrease) | 13 | (50) | $ 642 | $ (2,123) |
Class T |
|
|
|
|
Shares sold | - | 2,200 | $ - | $ 105,795 |
Reinvestment of distributions | 47 | 12 | 2,349 | 570 |
Shares redeemed | - | (84) | - | (3,786) |
Net increase (decrease) | 47 | 2,128 | $ 2,349 | $ 102,579 |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 6 | 385 | 297 |
Shares redeemed | - | (83) | - | (3,716) |
Net increase (decrease) | 8 | (77) | $ 385 | $ (3,419) |
Income Replacement 2042 |
|
|
|
|
Shares sold | 82,751 | 52,015 | $ 4,136,675 | $ 2,501,513 |
Reinvestment of distributions | 2,496 | 1,220 | 124,896 | 56,045 |
Shares redeemed | (20,096) | (20,364) | (1,018,237) | (979,817) |
Net increase (decrease) | 65,151 | 32,871 | $ 3,243,334 | $ 1,577,741 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 12 | 517 | 543 |
Shares redeemed | - | (87) | - | (3,858) |
Net increase (decrease) | 10 | (75) | $ 517 | $ (3,315) |
Semiannual Report
Notes to Financial Statements (Unaudited) - 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, investments by the Funds within their principal 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 | Fidelity Income |
Fidelity Series Broad Market Opportunities Fund | 11% | 22% |
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% |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Income Replacement Funds
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract (the Advisory Contract) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contract, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contract. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contract. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contract. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contract. In reaching its determination, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contract is in the best interests of each fund and its shareholders and the fact that no fees are payable under the Advisory Contract is fair and reasonable. The Board's decision to renew the Advisory Contract was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. In reaching its determination, the Board was aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, Strategic Advisers, Inc. (the Investment Adviser), including the backgrounds of the funds' investment personnel, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Adviser's investment staff, including its size, education, experience, and resources, as well as the Investment Adviser's approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Adviser's trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Adviser and its affiliates under the Advisory Contract and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv) continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors; and (ix) reducing certain transfer agent fee rates.
Semiannual Report
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance for each class, as well as each fund's relative investment performance for each class measured over multiple periods against a proprietary custom index. The Board noted that FMR believes that no meaningful peer group exists for the funds, given that competitor funds with the same target date can differ significantly in their asset allocation strategy, degree of active management, and/or glide path construction.
Because each fund had been in existence less than five calendar years, for Income Replacement 2016 Fund, Income Replacement 2018 Fund, Income Replacement 2020 Fund, Income Replacement 2022 Fund, Income Replacement 2028 Fund, Income Replacement 2030 Fund, and Income Replacement 2032 Fund, the following charts considered by the Board show, over the one- and three-year periods ended December 31, 2011, the cumulative total returns of the retail class and Class C of the fund and the cumulative total returns of a proprietary custom index ("benchmark") and, for Income Replacement 2024 Fund, Income Replacement 2026 Fund, Income Replacement 2034 Fund, Income Replacement 2036 Fund, Income Replacement 2038 Fund, Income Replacement 2040 Fund, and Income Replacement 2042 Fund, the following charts considered by the Board show, over the one- and three-year periods ended December 31, 2011, the cumulative total returns of Institutional Class (Class I) and Class C of the fund and the cumulative total returns of its benchmark. The returns of the retail class or Institutional Class (Class I), as applicable, and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance).
For each fund, the proprietary custom index is an index developed by FMR that represents the performance of the fund's asset classes according to their respective weightings.
Income Replacement 2016 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2018 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2020 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2022 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2024 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2026 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2028 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2030 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2032 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2034 Fund
The Board noted that the investment performance of Institutional Class C (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2036 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2038 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2040 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2042 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contract should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board noted that the funds do not pay the Investment Adviser a management fee for investment advisory services. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes, and also considered that each fund bears indirectly the expenses of the underlying funds in which it invests. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 0% means that 100% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Semiannual Report
Income Replacement 2016 Fund
Income Replacement 2018 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2020 Fund
Income Replacement 2022 Fund
Semiannual Report
Income Replacement 2024 Fund
Income Replacement 2026 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2028 Fund
Income Replacement 2030 Fund
Semiannual Report
Income Replacement 2032 Fund
Income Replacement 2034 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2036 Fund
Income Replacement 2038 Fund
Semiannual Report
Income Replacement 2040 Fund
Income Replacement 2042 Fund
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of the total expense ratio of each class of each fund, the Board noted that each fund invests in Institutional Class of the underlying fund (if that underlying fund offers multiple classes of shares) to avoid charging fund-paid 12b-1 fees at both fund levels. The Board considered that the funds do not pay transfer agent fees. Instead, Institutional Class of each underlying fund (or the underlying fund, if that underlying fund does not offer multiple classes of shares) bears its pro rata portion of each fund's transfer agent fee according to the percentage of each fund's assets invested in that underlying fund. The Board further noted that the Investment Adviser pays all other expenses of each fund, with limited exceptions.
The Board noted that the total expense ratio of each of Class A, Class C, Institutional Class, and the retail class of each fund ranked below its competitive median for 2011 and the total expense ratio of Class T of each fund ranked equal to its competitive median for 2011.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of each fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund were not relevant to the renewal of each fund's Advisory Contract because the funds do not pay management fees and FMR pays all other expenses of each fund, with limited exceptions.
Economies of Scale. The Board concluded that because the funds do not pay management fees and the Investment Adviser pays all other expenses of each fund, with limited exceptions, economies of scale cannot be realized by the funds, but may be realized by the other Fidelity funds in which each fund invests, many of which may benefit from breakpoints in the group fee arrangement.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes; (ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contract should be renewed.
Semiannual Report
Semiannual 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
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
RW-USAN-0313 1.848177.105
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
Semiannual Report
January 31, 2013
Each Class A, Class T, and Class C are
classes of Fidelity Income Replacement FundsSM
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity Advisor Income Replacement 2016 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2018 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2020 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2022 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2024 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2026 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2028 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2030 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2032 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2034 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2036 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2038 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2040 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2042 FundSM | Investment Changes Investments Financial Statements | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
Semiannual 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. © 2013 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 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.
Semiannual Report
Shareholder Expense Example
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 (August 1, 2012 to January 31, 2013).
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 | Beginning | Ending | Expenses Paid |
Fidelity Income Replacement 2016 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,021.40 | $ 1.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.20 | $ 2.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,017.70 | $ 5.09 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2016 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,022.70 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,022.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2018 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.00 | $ 1.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.50 | $ 2.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,029.90 | $ 5.12 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2018 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,043.80 | $ 1.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,042.40 | $ 2.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,039.70 | $ 5.14 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2020 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,051.20 | $ 1.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .49%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,049.70 | $ 2.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,047.10 | $ 5.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2022 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.80 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,055.50 | $ 2.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.90 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2024 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.10 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.10 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,060.80 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,059.60 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.03%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.90 | $ 5.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
Income Replacement 2026 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,064.20 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.70 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,060.10 | $ 5.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2028 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,066.90 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.50 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.80 | $ 5.20 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2030 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,068.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,068.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,069.10 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.90 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.20 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2032 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.50 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.70 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A | .26%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,071.60 | $ 1.36 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.89 | $ 1.33 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.60 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2034 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,074.10 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.80 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2036 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.40 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.60 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,076.70 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.40 | $ 2.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.60 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2038 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.00 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.00 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2040 Fund |
|
|
|
|
Class A | .22%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,080.00 | $ 1.15 |
HypotheticalA |
| $ 1,000.00 | $ 1,024.10 | $ 1.12 |
Class T | .49%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.70 | $ 2.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.90 | $ 5.23 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2040 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,083.40 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,082.10 | $ 2.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | .99%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,079.40 | $ 5.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.21 | $ 5.04 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2042 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.80 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Funds invest are not included in the Funds' annualized expense ratio.
** Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Semiannual Report
Fidelity Income Replacement 2016 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 2.0 | 2.4 |
Fidelity Blue Chip Growth Fund | 1.9 | 2.2 |
Fidelity Disciplined Equity Fund | 2.1 | 2.6 |
Fidelity Equity-Income Fund | 2.9 | 3.5 |
Fidelity Series 100 Index Fund | 1.9 | 2.2 |
Fidelity Series Broad Market Opportunities Fund | 3.3 | 4.0 |
Fidelity Series Small Cap Opportunities Fund | 0.3 | 0.3 |
| 14.4 | 17.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.8 | 6.8 |
Fidelity Strategic Real Return Fund | 5.8 | 6.8 |
Fidelity Total Bond Fund | 17.3 | 20.4 |
| 28.9 | 34.0 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 34.0 | 28.1 |
Fidelity Short-Term Bond Fund | 22.7 | 20.7 |
| 56.7 | 48.8 |
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) | |||
Current | |||
 | Domestic Equity Funds | 14.4% |
|
 | Investment Grade Fixed-Income Funds | 28.9% |
|
 | Short-Term Funds | 56.7% |
|
Six months ago | |||
| Domestic Equity Funds | 17.2% |
|
| Investment Grade Fixed-Income Funds | 34.0% |
|
| Short-Term Funds | 48.8% |
|
Expected | |||
| Domestic Equity Funds | 12.0% |
|
| Investment Grade Fixed-Income Funds | 23.0% |
|
| Short-Term Funds | 65.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2016 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 14.4% | |||
Shares | Value | ||
Domestic Equity Funds - 14.4% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 8,367 | $ 157,214 | |
Fidelity Blue Chip Growth Fund | 2,841 | 145,540 | |
Fidelity Disciplined Equity Fund | 6,541 | 168,110 | |
Fidelity Equity-Income Fund | 4,508 | 224,147 | |
Fidelity Series 100 Index Fund | 14,776 | 145,540 | |
Fidelity Series Broad Market Opportunities Fund | 21,999 | 257,613 | |
Fidelity Series Small Cap Opportunities Fund | 1,923 | 22,570 | |
TOTAL EQUITY FUNDS (Cost $798,005) |
| ||
Fixed-Income Funds - 28.9% | |||
|
|
|
|
Investment Grade Fixed-Income Funds - 28.9% | |||
Fidelity Government Income Fund | 42,843 | 449,850 | |
Fidelity Strategic Real Return Fund | 46,044 | 449,850 | |
Fidelity Total Bond Fund | 124,111 | 1,350,328 | |
TOTAL FIXED-INCOME FUNDS (Cost $2,055,637) |
| ||
Short-Term Funds - 56.7% | |||
Shares | Value | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 2,647,735 | $ 2,647,735 | |
Fidelity Short-Term Bond Fund | 205,160 | 1,764,378 | |
TOTAL SHORT-TERM FUNDS (Cost $4,361,401) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,215,043) | 7,782,875 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (878) | ||
NET ASSETS - 100% | $ 7,781,997 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2016 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $7,215,043) - See accompanying schedule | $ 7,782,875 | |
Receivable for investments sold | 118,499 | |
Total assets | 7,901,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 118,468 | |
Distribution and service plan fees payable | 909 | |
Total liabilities | 119,377 | |
|
|
|
Net Assets | $ 7,781,997 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,565,929 | |
Undistributed net investment income | 1,293 | |
Accumulated undistributed net realized gain (loss) on investments | (353,057) | |
Net unrealized appreciation (depreciation) on investments | 567,832 | |
Net Assets | $ 7,781,997 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.00 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.00) | $ 54.11 | |
Class T: | $ 51.01 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.01) | $ 52.86 | |
Class C: | $ 50.97 | |
|
|
|
Income Replacement 2016: | $ 51.00 | |
|
|
|
Institutional Class: | $ 51.01 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 61,384 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 5,719 | |
Independent trustees' compensation | 15 | |
Total expenses before reductions | 5,734 | |
Expense reductions | (15) | 5,719 |
Net investment income (loss) | 55,665 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 83,221 | |
Capital gain distributions from underlying funds | 76,357 |
|
Total net realized gain (loss) |
| 159,578 |
Change in net unrealized appreciation (depreciation) on underlying funds | (42,707) | |
Net gain (loss) | 116,871 | |
Net increase (decrease) in net assets resulting from operations | $ 172,536 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2016 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,665 | $ 145,008 |
Net realized gain (loss) | 159,578 | 161,103 |
Change in net unrealized appreciation (depreciation) | (42,707) | (34,457) |
Net increase (decrease) in net assets resulting from operations | 172,536 | 271,654 |
Distributions to shareholders from net investment income | (55,814) | (145,571) |
Distributions to shareholders from net realized gain | (30,226) | (38,550) |
Total distributions | (86,040) | (184,121) |
Share transactions - net increase (decrease) | (447,885) | (1,946,210) |
Total increase (decrease) in net assets | (361,389) | (1,858,677) |
|
|
|
Net Assets | ||
Beginning of period | 8,143,386 | 10,002,063 |
End of period (including undistributed net investment income of $1,293 and undistributed net investment income of $1,442, respectively) | $ 7,781,997 | $ 8,143,386 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 | $ 47.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .331 | .736 | .821 | .831 | 1.118 | 1.233 |
Net realized and unrealized gain (loss) | .746 | .842 | 3.054 | 3.539 | (3.686) | (2.204) |
Total from investment operations | 1.077 | 1.578 | 3.875 | 4.370 | (2.568) | (.971) |
Distributions from net investment income | (.335) | (.733) | (.834) | (.830) | (1.132) | (1.129) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.537) | (.938) | (1.095) | (.950) | (1.572) | (1.269) |
Net asset value, end of period | $ 51.00 | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 | $ 47.76 |
Total Return B, C, D | 2.14% | 3.23% | 8.30% | 10.08% | (5.07)% | (2.02)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 1.30% A | 1.49% | 1.68% | 1.80% | 2.72% | 2.76% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 812 | $ 886 | $ 1,798 | $ 2,308 | $ 2,599 | $ 2,214 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 | $ 47.75 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .268 | .612 | .698 | .716 | 1.025 | 1.128 |
Net realized and unrealized gain (loss) | .745 | .847 | 3.043 | 3.540 | (3.690) | (2.219) |
Total from investment operations | 1.013 | 1.459 | 3.741 | 4.256 | (2.665) | (1.091) |
Distributions from net investment income | (.271) | (.594) | (.710) | (.716) | (1.025) | (1.019) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.473) | (.799) | (.971) | (.836) | (1.465) | (1.159) |
Net asset value, end of period | $ 51.01 | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 | $ 47.75 |
Total Return B, C, D | 2.02% | 2.98% | 8.00% | 9.81% | (5.30)% | (2.26)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.05% A | 1.24% | 1.42% | 1.55% | 2.47% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 155 | $ 194 | $ 529 | $ 638 | $ 499 | $ 673 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 | $ 47.73 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .140 | .364 | .453 | .485 | .822 | .904 |
Net realized and unrealized gain (loss) | .748 | .837 | 3.055 | 3.531 | (3.689) | (2.227) |
Total from investment operations | .888 | 1.201 | 3.508 | 4.016 | (2.867) | (1.323) |
Distributions from net investment income | (.166) | (.376) | (.447) | (.476) | (.813) | (.807) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.368) | (.581) | (.708) | (.596) | (1.253) | (.947) |
Net asset value, end of period | $ 50.97 | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 | $ 47.73 |
Total Return B, C, D | 1.77% | 2.45% | 7.49% | 9.24% | (5.76)% | (2.71)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | .55% A | .74% | .92% | 1.05% | 1.97% | 2.01% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 797 | $ 891 | $ 759 | $ 1,075 | $ 1,171 | $ 1,595 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2016
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 | $ 47.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .394 | .859 | .944 | .948 | 1.231 | 1.356 |
Net realized and unrealized gain (loss) | .747 | .838 | 3.055 | 3.539 | (3.692) | (2.217) |
Total from investment operations | 1.141 | 1.697 | 3.999 | 4.487 | (2.461) | (.861) |
Distributions from net investment income | (.399) | (.862) | (.958) | (.947) | (1.239) | (1.229) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.601) | (1.067) | (1.219) | (1.067) | (1.679) | (1.369) |
Net asset value, end of period | $ 51.00 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 | $ 47.77 |
Total Return B, C | 2.27% | 3.48% | 8.57% | 10.36% | (4.82)% | (1.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 1.55% A | 1.74% | 1.93% | 2.05% | 2.97% | 3.00% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,983 | $ 6,124 | $ 6,873 | $ 6,946 | $ 4,733 | $ 4,880 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 | $ 47.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .395 | .861 | .945 | .947 | 1.235 | 1.370 |
Net realized and unrealized gain (loss) | .756 | .836 | 3.054 | 3.530 | (3.686) | (2.231) |
Total from investment operations | 1.151 | 1.697 | 3.999 | 4.477 | (2.451) | (.861) |
Distributions from net investment income | (.399) | (.862) | (.958) | (.947) | (1.239) | (1.229) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.601) | (1.067) | (1.219) | (1.067) | (1.679) | (1.369) |
Net asset value, end of period | $ 51.01 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 | $ 47.77 |
Total Return B, C | 2.29% | 3.48% | 8.57% | 10.33% | (4.80)% | (1.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 1.55% A | 1.74% | 1.92% | 2.05% | 2.97% | 3.00% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 35 | $ 49 | $ 44 | $ 108 | $ 109 | $ 184 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 3.2 | 3.5 |
Fidelity Blue Chip Growth Fund | 2.9 | 3.3 |
Fidelity Disciplined Equity Fund | 3.4 | 3.9 |
Fidelity Equity-Income Fund | 4.5 | 5.2 |
Fidelity Series 100 Index Fund | 2.9 | 3.3 |
Fidelity Series Broad Market Opportunities Fund | 5.2 | 5.8 |
Fidelity Series Small Cap Opportunities Fund | 0.4 | 0.5 |
| 22.5 | 25.5 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 1.8 | 2.3 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 8.5 | 8.2 |
Fidelity Strategic Real Return Fund | 8.5 | 8.5 |
Fidelity Total Bond Fund | 25.3 | 24.8 |
| 42.3 | 41.5 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 16.7 | 15.3 |
Fidelity Short-Term Bond Fund | 16.7 | 15.4 |
| 33.4 | 30.7 |
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) | |||
Current | |||
| Domestic Equity Funds | 22.5% |
|
| International Equity Funds | 1.8% |
|
 | Investment Grade Fixed-Income Funds | 42.3% |
|
| Short-Term Funds | 33.4% |
|
Six months ago | |||
| Domestic Equity Funds | 25.5% |
|
| International Equity Funds | 2.3% |
|
| Investment Grade Fixed-Income Funds | 41.5% |
|
| Short-Term Funds | 30.7% |
|
Expected | |||
| Domestic Equity Funds | 21.1% |
|
| International Equity Funds | 0.8% |
|
| Investment Grade Fixed-Income Funds | 41.2% |
|
| Short-Term Funds | 36.9% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2018 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 24.3% | |||
Shares | Value | ||
Domestic Equity Funds - 22.5% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 9,146 | $ 171,860 | |
Fidelity Blue Chip Growth Fund | 3,120 | 159,857 | |
Fidelity Disciplined Equity Fund | 7,175 | 184,408 | |
Fidelity Equity-Income Fund | 4,938 | 245,514 | |
Fidelity Series 100 Index Fund | 16,229 | 159,857 | |
Fidelity Series Broad Market Opportunities Fund | 24,134 | 282,613 | |
Fidelity Series Small Cap Opportunities Fund | 2,091 | 24,551 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,228,660 | ||
International Equity Funds - 1.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 2,889 | 98,751 | |
TOTAL EQUITY FUNDS (Cost $1,201,425) |
| ||
Fixed-Income Funds - 42.3% | |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 42.3% | |||
Fidelity Government Income Fund | 44,063 | $ 462,657 | |
Fidelity Strategic Real Return Fund | 47,355 | 462,657 | |
Fidelity Total Bond Fund | 127,420 | 1,386,331 | |
TOTAL FIXED-INCOME FUNDS (Cost $2,270,067) |
| ||
Short-Term Funds - 33.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 908,400 | 908,400 | |
Fidelity Short-Term Bond Fund | 105,628 | 908,400 | |
TOTAL SHORT-TERM FUNDS (Cost $1,805,527) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,277,019) | 5,455,856 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (548) | ||
NET ASSETS - 100% | $ 5,455,308 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,277,019) - See accompanying schedule | $ 5,455,856 | |
Receivable for investments sold | 45,408 | |
Total assets | 5,501,264 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 45,405 | |
Distribution and service plan fees payable | 551 | |
Total liabilities | 45,956 | |
|
|
|
Net Assets | $ 5,455,308 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,799,074 | |
Undistributed net investment income | 1,170 | |
Accumulated undistributed net realized gain (loss) on investments | (523,773) | |
Net unrealized appreciation (depreciation) on investments | 178,837 | |
Net Assets | $ 5,455,308 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.54) | $ 54.68 | |
Class T: | $ 51.56 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.56) | $ 53.43 | |
Class C: | $ 51.49 | |
|
|
|
Income Replacement 2018: | $ 51.55 | |
|
|
|
Institutional Class: | $ 51.56 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,916 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 3,382 | |
Independent trustees' compensation | 11 | |
Total expenses before reductions | 3,393 | |
Expense reductions | (11) | 3,382 |
Net investment income (loss) | 56,534 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 26,121 | |
Capital gain distributions from underlying funds | 75,324 |
|
Total net realized gain (loss) |
| 101,445 |
Change in net unrealized appreciation (depreciation) on underlying funds | 34,855 | |
Net gain (loss) | 136,300 | |
Net increase (decrease) in net assets resulting from operations | $ 192,834 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 56,534 | $ 87,998 |
Net realized gain (loss) | 101,445 | 133,708 |
Change in net unrealized appreciation (depreciation) | 34,855 | (43,406) |
Net increase (decrease) in net assets resulting from operations | 192,834 | 178,300 |
Distributions to shareholders from net investment income | (56,450) | (87,972) |
Distributions to shareholders from net realized gain | (32,209) | (20,328) |
Total distributions | (88,659) | (108,300) |
Share transactions - net increase (decrease) | (351,855) | 348,272 |
Total increase (decrease) in net assets | (247,680) | 418,272 |
|
|
|
Net Assets | ||
Beginning of period | 5,702,988 | 5,284,716 |
End of period (including undistributed net investment income of $1,170 and undistributed net investment income of $1,086, respectively) | $ 5,455,308 | $ 5,702,988 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .474 | .774 | .836 | .836 | 1.092 | 1.163 |
Net realized and unrealized gain (loss) | 1.234 | .909 | 3.655 | 3.763 | (4.138) | (2.454) |
Total from investment operations | 1.708 | 1.683 | 4.491 | 4.599 | (3.046) | (1.291) |
Distributions from net investment income | (.469) | (.765) | (.834) | (.839) | (1.124) | (1.119) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.758) | (.963) | (1.071) | (.959) | (1.604) | (1.249) |
Net asset value, end of period | $ 51.54 | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 | $ 47.46 |
Total Return B, C, D | 3.40% | 3.45% | 9.73% | 10.80% | (6.06)% | (2.68)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 1.85% A | 1.57% | 1.71% | 1.83% | 2.69% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 720 | $ 762 | $ 784 | $ 1,147 | $ 833 | $ 1,107 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .409 | .651 | .716 | .722 | .989 | 1.075 |
Net realized and unrealized gain (loss) | 1.225 | .909 | 3.664 | 3.759 | (4.128) | (2.483) |
Total from investment operations | 1.634 | 1.560 | 4.380 | 4.481 | (3.139) | (1.408) |
Distributions from net investment income | (.405) | (.642) | (.723) | (.711) | (1.011) | (1.002) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.694) | (.840) | (.960) | (.831) | (1.491) | (1.132) |
Net asset value, end of period | $ 51.56 | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 | $ 47.46 |
Total Return B, C, D | 3.25% | 3.19% | 9.48% | 10.51% | (6.28)% | (2.91)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.60% A | 1.32% | 1.46% | 1.58% | 2.44% | 2.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 122 | $ 128 | $ 148 | $ 52 | $ 91 | $ 154 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 | $ 47.41 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .281 | .403 | .469 | .495 | .786 | .836 |
Net realized and unrealized gain (loss) | 1.221 | .912 | 3.659 | 3.760 | (4.122) | (2.476) |
Total from investment operations | 1.502 | 1.315 | 4.128 | 4.255 | (3.336) | (1.640) |
Distributions from net investment income | (.283) | (.407) | (.471) | (.505) | (.794) | (.820) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.572) | (.605) | (.708) | (.625) | (1.274) | (.950) |
Net asset value, end of period | $ 51.49 | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 | $ 47.41 |
Total Return B, C, D | 2.99% | 2.68% | 8.93% | 9.98% | (6.75)% | (3.36)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.10% A | .82% | .96% | 1.08% | 1.94% | 1.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 418 | $ 439 | $ 226 | $ 201 | $ 131 | $ 365 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2018
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .538 | .898 | .960 | .950 | 1.202 | 1.280 |
Net realized and unrealized gain (loss) | 1.233 | .908 | 3.657 | 3.761 | (4.138) | (2.469) |
Total from investment operations | 1.771 | 1.806 | 4.617 | 4.711 | (2.936) | (1.189) |
Distributions from net investment income | (.532) | (.888) | (.960) | (.951) | (1.224) | (1.221) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.821) | (1.086) | (1.197) | (1.071) | (1.704) | (1.351) |
Net asset value, end of period | $ 51.55 | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 | $ 47.46 |
Total Return B, C | 3.53% | 3.71% | 10.01% | 11.07% | (5.81)% | (2.48)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expense net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.10% A | 1.82% | 1.96% | 2.08% | 2.94% | 2.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,748 | $ 3,904 | $ 3,806 | $ 3,681 | $ 3,435 | $ 5,167 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 | $ 47.47 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .538 | .891 | .959 | .950 | 1.175 | 1.295 |
Net realized and unrealized gain (loss) | 1.233 | .915 | 3.668 | 3.761 | (4.121) | (2.474) |
Total from investment operations | 1.771 | 1.806 | 4.627 | 4.711 | (2.946) | (1.179) |
Distributions from net investment income | (.532) | (.888) | (.960) | (.951) | (1.224) | (1.221) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.821) | (1.086) | (1.197) | (1.071) | (1.704) | (1.351) |
Net asset value, end of period | $ 51.56 | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 | $ 47.47 |
Total Return B, C | 3.52% | 3.71% | 10.03% | 11.07% | (5.83)% | (2.46)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expense net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.10% A | 1.82% | 1.96% | 2.08% | 2.94% | 2.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 447 | $ 470 | $ 320 | $ 350 | $ 326 | $ 214 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2020 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.1 | 4.4 |
Fidelity Blue Chip Growth Fund | 3.8 | 4.1 |
Fidelity Disciplined Equity Fund | 4.4 | 4.9 |
Fidelity Equity-Income Fund | 5.9 | 6.5 |
Fidelity Series 100 Index Fund | 3.9 | 4.2 |
Fidelity Series Broad Market Opportunities Fund | 6.8 | 7.4 |
Fidelity Series Small Cap Opportunities Fund | 0.6 | 0.6 |
| 29.5 | 32.1 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 2.9 | 3.3 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 0.9 | 1.1 |
Fidelity Strategic Income Fund | 0.9 | 1.1 |
| 1.8 | 2.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 7.8 | 7.4 |
Fidelity Strategic Real Return Fund | 7.8 | 7.7 |
Fidelity Total Bond Fund | 23.2 | 22.6 |
| 38.8 | 37.7 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 13.5 | 12.3 |
Fidelity Short-Term Bond Fund | 13.5 | 12.4 |
| 27.0 | 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) | |||
Current | |||
| Domestic Equity Funds | 29.5% |
|
 | International Equity Funds | 2.9% |
|
 | High Yield Fixed-Income Funds | 1.8% |
|
 | Investment Grade Fixed-Income Funds | 38.8% |
|
| Short-Term Funds | 27.0% |
|
Six months ago | |||
| Domestic Equity Funds | 32.1% |
|
| International Equity Funds | 3.3% |
|
| High Yield Fixed-Income Funds | 2.2% |
|
| Investment Grade Fixed-Income Funds | 37.7% |
|
| Short-Term Funds | 24.7% |
|
Expected | |||
| Domestic Equity Funds | 27.8% |
|
| International Equity Funds | 2.7% |
|
| High Yield Fixed-Income Funds | 0.8% |
|
| Investment Grade Fixed-Income Funds | 39.9% |
|
| Short-Term Funds | 28.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2020 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 32.4% | |||
Shares | Value | ||
Domestic Equity Funds - 29.5% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,490 | $ 234,680 | |
Fidelity Blue Chip Growth Fund | 4,258 | 218,161 | |
Fidelity Disciplined Equity Fund | 9,796 | 251,769 | |
Fidelity Equity-Income Fund | 6,748 | 335,502 | |
Fidelity Series 100 Index Fund | 22,148 | 218,162 | |
Fidelity Series Broad Market Opportunities Fund | 32,931 | 385,628 | |
Fidelity Series Small Cap Opportunities Fund | 2,863 | 33,607 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,677,509 | ||
International Equity Funds - 2.9% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 4,833 | 165,188 | |
TOTAL EQUITY FUNDS (Cost $1,465,214) |
| ||
Fixed-Income Funds - 40.6% | |||
|
|
|
|
High Yield Fixed-Income Funds - 1.8% | |||
Fidelity Capital & Income Fund | 5,151 | 49,556 | |
Fidelity Strategic Income Fund | 4,370 | 49,556 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 99,112 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 38.8% | |||
Fidelity Government Income Fund | 42,151 | $ 442,589 | |
Fidelity Strategic Real Return Fund | 45,301 | 442,589 | |
Fidelity Total Bond Fund | 122,142 | 1,328,904 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 2,214,082 | ||
TOTAL FIXED-INCOME FUNDS (Cost $2,222,035) |
| ||
Short-Term Funds - 27.0% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 770,116 | 770,116 | |
Fidelity Short-Term Bond Fund | 89,548 | 770,116 | |
TOTAL SHORT-TERM FUNDS (Cost $1,524,515) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,211,764) | 5,696,123 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (423) | ||
NET ASSETS - 100% | $ 5,695,700 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2020 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,211,764) - See accompanying schedule | $ 5,696,123 | |
Receivable for investments sold | 51,919 | |
Total assets | 5,748,042 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 51,916 | |
Distribution and service plan fees payable | 426 | |
Total liabilities | 52,342 | |
|
|
|
Net Assets | $ 5,695,700 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,359,066 | |
Undistributed net investment income | 1,172 | |
Accumulated undistributed net realized gain (loss) on investments | (148,897) | |
Net unrealized appreciation (depreciation) on investments | 484,359 | |
Net Assets | $ 5,695,700 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.11 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.11) | $ 55.29 | |
Class T: | $ 52.10 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.10) | $ 53.99 | |
Class C: | $ 52.05 | |
|
|
|
Income Replacement 2020: | $ 52.11 | |
|
|
|
Institutional Class: | $ 52.11 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,856 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 2,562 | |
Independent trustees' compensation | 9 | |
Total expenses before reductions | 2,571 | |
Expense reductions | (9) | 2,562 |
Net investment income (loss) | 57,294 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 20,845 | |
Capital gain distributions from underlying funds | 65,023 |
|
Total net realized gain (loss) |
| 85,868 |
Change in net unrealized appreciation (depreciation) on underlying funds | 81,283 | |
Net gain (loss) | 167,151 | |
Net increase (decrease) in net assets resulting from operations | $ 224,445 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 57,294 | $ 73,877 |
Net realized gain (loss) | 85,868 | 43,077 |
Change in net unrealized appreciation (depreciation) | 81,283 | 31,118 |
Net increase (decrease) in net assets resulting from operations | 224,445 | 148,072 |
Distributions to shareholders from net investment income | (57,006) | (73,850) |
Distributions to shareholders from net realized gain | (25,206) | (14,681) |
Total distributions | (82,212) | (88,531) |
Share transactions - net increase (decrease) | 691,186 | 831,367 |
Total increase (decrease) in net assets | 833,419 | 890,908 |
|
|
|
Net Assets | ||
Beginning of period | 4,862,281 | 3,971,373 |
End of period (including undistributed net investment income of $1,172 and undistributed net investment income of $884, respectively) | $ 5,695,700 | $ 4,862,281 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.11 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .543 | .793 | .817 | .812 | 1.027 | 1.085 |
Net realized and unrealized gain (loss) | 1.663 | .884 | 4.128 | 3.930 | (4.465) | (2.692) |
Total from investment operations | 2.206 | 1.677 | 4.945 | 4.742 | (3.438) | (1.607) |
Distributions from net investment income | (.533) | (.794) | (.826) | (.817) | (1.032) | (1.113) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.786) | (.977) | (1.045) | (.932) | (1.392) | (1.283) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.11 |
Total Return B, C, D | 4.38% | 3.44% | 10.79% | 11.27% | (7.00)% | (3.33)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.10% A | 1.61% | 1.67% | 1.79% | 2.60% | 2.42% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 395 | $ 408 | $ 436 | $ 607 | $ 502 | $ 503 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.10 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .478 | .670 | .696 | .696 | .926 | .985 |
Net realized and unrealized gain (loss) | 1.655 | .885 | 4.135 | 3.928 | (4.460) | (2.707) |
Total from investment operations | 2.133 | 1.555 | 4.831 | 4.624 | (3.534) | (1.722) |
Distributions from net investment income | (.470) | (.672) | (.712) | (.699) | (.926) | (1.008) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.723) | (.855) | (.931) | (.814) | (1.286) | (1.178) |
Net asset value, end of period | $ 52.10 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.10 |
Total Return B, C, D | 4.24% | 3.18% | 10.54% | 10.98% | (7.23)% | (3.56)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.85% A | 1.36% | 1.42% | 1.54% | 2.35% | 2.17% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 188 | $ 189 | $ 196 | $ 134 | $ 171 | $ 187 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 | $ 47.08 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .348 | .422 | .449 | .473 | .736 | .755 |
Net realized and unrealized gain (loss) | 1.652 | .876 | 4.132 | 3.923 | (4.471) | (2.699) |
Total from investment operations | 2.000 | 1.298 | 4.581 | 4.396 | (3.735) | (1.944) |
Distributions from net investment income | (.347) | (.435) | (.452) | (.481) | (.725) | (.806) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.600) | (.618) | (.671) | (.596) | (1.085) | (.976) |
Net asset value, end of period | $ 52.05 | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 | $ 47.08 |
Total Return B, C, D | 3.97% | 2.65% | 9.98% | 10.43% | (7.70)% | (3.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.35% A | .86% | .92% | 1.05% | 1.85% | 1.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 318 | $ 306 | $ 228 | $ 295 | $ 221 | $ 275 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2020
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .606 | .917 | .942 | .925 | 1.125 | 1.190 |
Net realized and unrealized gain (loss) | 1.665 | .874 | 4.138 | 3.919 | (4.464) | (2.677) |
Total from investment operations | 2.271 | 1.791 | 5.080 | 4.844 | (3.339) | (1.487) |
Distributions from net investment income | (.598) | (.918) | (.951) | (.929) | (1.131) | (1.223) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.851) | (1.101) | (1.170) | (1.044) | (1.491) | (1.393) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 |
Total Return B, C | 4.52% | 3.68% | 11.10% | 11.52% | (6.76)% | (3.10)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.35% A | 1.86% | 1.92% | 2.04% | 2.86% | 2.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,781 | $ 3,945 | $ 3,079 | $ 2,225 | $ 1,624 | $ 1,233 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .607 | .917 | .939 | .928 | 1.138 | 1.215 |
Net realized and unrealized gain (loss) | 1.664 | .874 | 4.141 | 3.916 | (4.477) | (2.702) |
Total from investment operations | 2.271 | 1.791 | 5.080 | 4.844 | (3.339) | (1.487) |
Distributions from net investment income | (.598) | (.918) | (.951) | (.929) | (1.131) | (1.223) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.851) | (1.101) | (1.170) | (1.044) | (1.491) | (1.393) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 |
Total Return B, C | 4.52% | 3.68% | 11.10% | 11.52% | (6.76)% | (3.10)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.35% A | 1.86% | 1.92% | 2.04% | 2.85% | 2.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14 | $ 13 | $ 32 | $ 49 | $ 95 | $ 163 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.9 | 5.1 |
Fidelity Blue Chip Growth Fund | 4.5 | 4.8 |
Fidelity Disciplined Equity Fund | 5.2 | 5.6 |
Fidelity Equity-Income Fund | 7.0 | 7.5 |
Fidelity Series 100 Index Fund | 4.5 | 4.8 |
Fidelity Series Broad Market Opportunities Fund | 8.0 | 8.5 |
Fidelity Series Small Cap Opportunities Fund | 0.7 | 0.7 |
| 34.8 | 37.0 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 3.9 | 4.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 1.4 | 1.6 |
Fidelity Strategic Income Fund | 1.4 | 1.5 |
| 2.8 | 3.1 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 7.2 | 6.9 |
Fidelity Strategic Real Return Fund | 7.2 | 7.2 |
Fidelity Total Bond Fund | 21.5 | 20.9 |
| 35.9 | 35.0 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 11.3 | 10.3 |
Fidelity Short-Term Bond Fund | 11.3 | 10.4 |
| 22.6 | 20.7 |
| ||
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) | |||
Current | |||
| Domestic Equity Funds | 34.8% |
|
| International Equity Funds | 3.9% |
|
| High Yield Fixed-Income Funds | 2.8% |
|
| Investment Grade Fixed-Income Funds | 35.9% |
|
| Short-Term Funds | 22.6% |
|
Six months ago | |||
| Domestic Equity Funds | 37.0% |
|
| International Equity Funds | 4.2% |
|
| High Yield Fixed-Income Funds | 3.1% |
|
| Investment Grade Fixed-Income Funds | 35.0% |
|
| Short-Term Funds | 20.7% |
|
Expected | |||
| Domestic Equity Funds | 33.6% |
|
| International Equity Funds | 3.6% |
|
| High Yield Fixed-Income Funds | 2.6% |
|
| Investment Grade Fixed-Income Funds | 36.7% |
|
| Short-Term Funds | 23.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2022 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 38.7% | |||
Shares | Value | ||
Domestic Equity Funds - 34.8% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,210 | $ 229,433 | |
Fidelity Blue Chip Growth Fund | 4,166 | 213,415 | |
Fidelity Disciplined Equity Fund | 9,569 | 245,922 | |
Fidelity Equity-Income Fund | 6,595 | 327,896 | |
Fidelity Series 100 Index Fund | 21,667 | 213,415 | |
Fidelity Series Broad Market Opportunities Fund | 32,226 | 377,363 | |
Fidelity Series Small Cap Opportunities Fund | 2,809 | 32,978 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,640,422 | ||
International Equity Funds - 3.9% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 5,307 | 181,379 | |
TOTAL EQUITY FUNDS (Cost $1,715,208) |
| ||
Fixed-Income Funds - 38.7% | |||
|
|
|
|
High Yield Fixed-Income Funds - 2.8% | |||
Fidelity Capital & Income Fund | 6,856 | 65,956 | |
Fidelity Strategic Income Fund | 5,816 | 65,956 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 131,912 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 35.9% | |||
Fidelity Government Income Fund | 32,350 | $ 339,674 | |
Fidelity Strategic Real Return Fund | 34,767 | 339,674 | |
Fidelity Total Bond Fund | 93,487 | 1,017,137 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,696,485 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,828,736) |
| ||
Short-Term Funds - 22.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 530,475 | 530,475 | |
Fidelity Short-Term Bond Fund | 61,683 | 530,475 | |
TOTAL SHORT-TERM FUNDS (Cost $1,057,428) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $4,601,372) | 4,711,148 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (104) | ||
NET ASSETS - 100% | $ 4,711,044 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $4,601,372) - See accompanying schedule | $ 4,711,148 | |
Cash |
| 1 |
Receivable for investments sold | 35,462 | |
Total assets | 4,746,611 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 33,462 | |
Payable for fund shares redeemed | 2,000 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 35,567 | |
|
|
|
Net Assets | $ 4,711,044 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,161,057 | |
Undistributed net investment income | 1,042 | |
Accumulated undistributed net realized gain (loss) on investments | (560,831) | |
Net unrealized appreciation (depreciation) on investments | 109,776 | |
Net Assets | $ 4,711,044 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.21 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.21) | $ 55.40 | |
Class T: | $ 52.26 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.26) | $ 54.16 | |
Class C: | $ 52.22 | |
|
|
|
Income Replacement 2022: | $ 52.20 | |
|
|
|
Institutional Class: | $ 52.19 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 56,371 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 635 | |
Independent trustees' compensation | 8 | |
Total expenses before reductions | 643 | |
Expense reductions | (8) | 635 |
Net investment income (loss) | 55,736 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 15,103 | |
Capital gain distributions from underlying funds | 57,093 |
|
Total net realized gain (loss) |
| 72,196 |
Change in net unrealized appreciation (depreciation) on underlying funds | 100,398 | |
Net gain (loss) | 172,594 | |
Net increase (decrease) in net assets resulting from operations | $ 228,330 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,736 | $ 64,238 |
Net realized gain (loss) | 72,196 | 53,984 |
Change in net unrealized appreciation (depreciation) | 100,398 | 17,516 |
Net increase (decrease) in net assets resulting from operations | 228,330 | 135,738 |
Distributions to shareholders from net investment income | (55,508) | (64,181) |
Distributions to shareholders from net realized gain | (22,022) | (10,962) |
Total distributions | (77,530) | (75,143) |
Share transactions - net increase (decrease) | 245,517 | 858,131 |
Total increase (decrease) in net assets | 396,317 | 918,726 |
|
|
|
Net Assets | ||
Beginning of period | 4,314,727 | 3,396,001 |
End of period (including undistributed net investment income of $1,042 and undistributed net investment income of $814, respectively) | $ 4,711,044 | $ 4,314,727 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 | $ 47.05 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .585 | .783 | .817 | .815 | 1.035 | 1.087 |
Net realized and unrealized gain (loss) | 1.979 | .842 | 4.431 | 3.980 | (4.739) | (2.853) |
Total from investment operations | 2.564 | 1.625 | 5.248 | 4.795 | (3.704) | (1.766) |
Distributions from net investment income | (.560) | (.784) | (.824) | (.793) | (1.056) | (1.014) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.814) | (.955) | (1.038) | (1.085) | (1.476) | (1.184) |
Net asset value, end of period | $ 52.21 | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 | $ 47.05 |
Total Return B, C, D | 5.12% | 3.35% | 11.58% | 11.53% | (7.53)% | (3.64)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .26% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .26% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .26% | .25% A |
Net investment income (loss) | 2.27% A | 1.59% | 1.67% | 1.82% | 2.62% | 2.41% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 390 | $ 386 | $ 72 | $ 42 | $ 122 | $ 289 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 | $ 47.04 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .528 | .653 | .691 | .702 | .933 | .982 |
Net realized and unrealized gain (loss) | 1.963 | .871 | 4.434 | 3.985 | (4.736) | (2.862) |
Total from investment operations | 2.491 | 1.524 | 5.125 | 4.687 | (3.803) | (1.880) |
Distributions from net investment income | (.507) | (.643) | (.661) | (.685) | (.957) | (.910) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.761) | (.814) | (.875) | (.977) | (1.377) | (1.080) |
Net asset value, end of period | $ 52.26 | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 | $ 47.04 |
Total Return B, C, D | 4.97% | 3.13% | 11.30% | 11.27% | (7.77)% | (3.87)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Expenses net of fee waivers, if any | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Expenses net of all reductions | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Net investment income (loss) | 2.03% A | 1.34% | 1.43% | 1.57% | 2.37% | 2.16% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1 | $ 5 | $ 23 | $ 77 | $ 112 | $ 187 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 | $ 47.04 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .393 | .411 | .447 | .477 | .737 | .760 |
Net realized and unrealized gain (loss) | 1.971 | .845 | 4.434 | 3.989 | (4.745) | (2.860) |
Total from investment operations | 2.364 | 1.256 | 4.881 | 4.466 | (4.008) | (2.100) |
Distributions from net investment income | (.380) | (.405) | (.437) | (.454) | (.752) | (.690) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.634) | (.576) | (.651) | (.746) | (1.172) | (.860) |
Net asset value, end of period | $ 52.22 | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 | $ 47.04 |
Total Return B, C, D | 4.71% | 2.58% | 10.74% | 10.72% | (8.25)% | (4.29)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Net investment income (loss) | 1.53% A | .84% | .92% | 1.07% | 1.87% | 1.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 29 | $ 28 | $ 32 | $ 44 | $ 69 | $ 120 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2022
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 | $ 47.06 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .649 | .901 | .937 | .925 | 1.144 | 1.190 |
Net realized and unrealized gain (loss) | 1.969 | .849 | 4.438 | 3.978 | (4.752) | (2.836) |
Total from investment operations | 2.618 | 1.750 | 5.375 | 4.903 | (3.608) | (1.646) |
Distributions from net investment income | (.624) | (.899) | (.941) | (.921) | (1.162) | (1.124) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.878) | (1.070) | (1.155) | (1.213) | (1.582) | (1.294) |
Net asset value, end of period | $ 52.20 | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 | $ 47.06 |
Total Return B, C | 5.23% | 3.62% | 11.87% | 11.80% | (7.30)% | (3.41)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.52% A | 1.84% | 1.92% | 2.07% | 2.87% | 2.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,288 | $ 3,892 | $ 3,266 | $ 2,395 | $ 2,353 | $ 4,666 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 | $ 47.06 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .645 | .900 | .937 | .918 | 1.131 | 1.208 |
Net realized and unrealized gain (loss) | 1.973 | .850 | 4.428 | 3.995 | (4.749) | (2.854) |
Total from investment operations | 2.618 | 1.750 | 5.365 | 4.913 | (3.618) | (1.646) |
Distributions from net investment income | (.624) | (.899) | (.941) | (.921) | (1.162) | (1.124) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.878) | (1.070) | (1.155) | (1.213) | (1.582) | (1.294) |
Net asset value, end of period | $ 52.19 | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 | $ 47.06 |
Total Return B, C | 5.23% | 3.62% | 11.85% | 11.83% | (7.33)% | (3.41)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.52% A | 1.84% | 1.92% | 2.07% | 2.87% | 2.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4 | $ 3 | $ 4 | $ 5 | $ 166 | $ 277 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.4 | 5.6 |
Fidelity Blue Chip Growth Fund | 5.0 | 5.2 |
Fidelity Disciplined Equity Fund | 5.8 | 6.1 |
Fidelity Equity-Income Fund | 7.8 | 8.1 |
Fidelity Series 100 Index Fund | 5.0 | 5.3 |
Fidelity Series Broad Market Opportunities Fund | 8.9 | 9.2 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 38.7 | 40.3 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 4.8 | 5.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 1.8 | 1.9 |
Fidelity Strategic Income Fund | 1.8 | 1.8 |
| 3.6 | 3.7 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.8 | 6.5 |
Fidelity Strategic Real Return Fund | 6.8 | 6.7 |
Fidelity Total Bond Fund | 20.1 | 19.7 |
| 33.7 | 32.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 9.6 | 8.9 |
Fidelity Short-Term Bond Fund | 9.6 | 9.0 |
| 19.2 | 17.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 38.7% |
|
| International Equity Funds | 4.8% |
|
| High Yield Fixed-Income Funds | 3.6% |
|
| Investment Grade Fixed-Income Funds | 33.7% |
|
| Short-Term Funds | 19.2% |
|
Six months ago | |||
| Domestic Equity Funds | 40.3% |
|
| International Equity Funds | 5.2% |
|
| High Yield Fixed-Income Funds | 3.7% |
|
| Investment Grade Fixed-Income Funds | 32.9% |
|
| Short-Term Funds | 17.9% |
|
Expected | |||
| Domestic Equity Funds | 37.9% |
|
| International Equity Funds | 4.5% |
|
| High Yield Fixed-Income Funds | 3.4% |
|
| Investment Grade Fixed-Income Funds | 34.3% |
|
| Short-Term Funds | 19.9% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2024 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 43.5% | |||
Shares | Value | ||
Domestic Equity Funds - 38.7% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 7,284 | $ 136,864 | |
Fidelity Blue Chip Growth Fund | 2,480 | 127,034 | |
Fidelity Disciplined Equity Fund | 5,698 | 146,442 | |
Fidelity Equity-Income Fund | 3,929 | 195,340 | |
Fidelity Series 100 Index Fund | 12,897 | 127,034 | |
Fidelity Series Broad Market Opportunities Fund | 19,178 | 224,578 | |
Fidelity Series Small Cap Opportunities Fund | 1,675 | 19,660 | |
TOTAL DOMESTIC EQUITY FUNDS | 976,952 | ||
International Equity Funds - 4.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 3,518 | 120,229 | |
TOTAL EQUITY FUNDS (Cost $989,038) |
| ||
Fixed-Income Funds - 37.3% | |||
|
|
|
|
High Yield Fixed-Income Funds - 3.6% | |||
Fidelity Capital & Income Fund | 4,611 | 44,361 | |
Fidelity Strategic Income Fund | 3,912 | 44,361 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 88,722 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 33.7% | |||
Fidelity Government Income Fund | 16,203 | $ 170,135 | |
Fidelity Strategic Real Return Fund | 17,414 | 170,135 | |
Fidelity Total Bond Fund | 47,005 | 511,414 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 851,684 | ||
TOTAL FIXED-INCOME FUNDS (Cost $933,166) |
| ||
Short-Term Funds - 19.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 241,466 | 241,466 | |
Fidelity Short-Term Bond Fund | 28,077 | 241,466 | |
TOTAL SHORT-TERM FUNDS (Cost $480,762) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,402,966) | 2,520,519 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (218) | ||
NET ASSETS - 100% | $ 2,520,301 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,402,966) - See accompanying schedule | $ 2,520,519 | |
Receivable for investments sold | 14,034 | |
Receivable for fund shares sold | 7,424 | |
Total assets | 2,541,977 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 21,436 | |
Distribution and service plan fees payable | 240 | |
Total liabilities | 21,676 | |
|
|
|
Net Assets | $ 2,520,301 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,454,329 | |
Undistributed net investment income | 468 | |
Accumulated undistributed net realized gain (loss) on investments | (52,049) | |
Net unrealized appreciation (depreciation) on investments | 117,553 | |
Net Assets | $ 2,520,301 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.44 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.44) | $ 55.64 | |
Class T: | $ 52.45 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.45) | $ 54.35 | |
Class C: | $ 52.37 | |
|
|
|
Income Replacement 2024: | $ 52.45 | |
|
|
|
Institutional Class: | $ 52.44 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 29,548 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,329 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 1,333 | |
Expense reductions | (4) | 1,329 |
Net investment income (loss) | 28,219 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 8,051 | |
Capital gain distributions from underlying funds | 29,056 |
|
Total net realized gain (loss) |
| 37,107 |
Change in net unrealized appreciation (depreciation) on underlying funds | 53,821 | |
Net gain (loss) | 90,928 | |
Net increase (decrease) in net assets resulting from operations | $ 119,147 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 28,219 | $ 32,792 |
Net realized gain (loss) | 37,107 | 92,176 |
Change in net unrealized appreciation (depreciation) | 53,821 | (53,738) |
Net increase (decrease) in net assets resulting from operations | 119,147 | 71,230 |
Distributions to shareholders from net investment income | (28,099) | (32,783) |
Distributions to shareholders from net realized gain | (9,399) | (6,730) |
Total distributions | (37,498) | (39,513) |
Share transactions - net increase (decrease) | 335,144 | 181,392 |
Total increase (decrease) in net assets | 416,793 | 213,109 |
|
|
|
Net Assets | ||
Beginning of period | 2,103,508 | 1,890,399 |
End of period (including undistributed net investment income of $468 and undistributed net investment income of $348, respectively) | $ 2,520,301 | $ 2,103,508 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 | $ 46.97 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .615 | .821 | .809 | .811 | 1.014 | 1.063 |
Net realized and unrealized gain (loss) | 2.227 | .771 | 4.667 | 4.020 | (5.004) | (2.884) |
Total from investment operations | 2.842 | 1.592 | 5.476 | 4.831 | (3.990) | (1.821) |
Distributions from net investment income | (.661) | (.794) | (.819) | (.791) | (1.020) | (1.039) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.882) | (.962) | (1.036) | (.901) | (1.500) | (1.209) |
Net asset value, end of period | $ 52.44 | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 | $ 46.97 |
Total Return B, C, D | 5.68% | 3.29% | 12.13% | 11.70% | (8.10)% | (3.77)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.39% A | 1.68% | 1.66% | 1.82% | 2.62% | 2.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 408 | $ 213 | $ 187 | $ 260 | $ 287 | $ 286 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, |
| |||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 | $ 46.97 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .553 | .699 | .685 | .701 | .919 | .966 |
Net realized and unrealized gain (loss) | 2.226 | .769 | 4.672 | 4.025 | (5.010) | (2.903) |
Total from investment operations | 2.779 | 1.468 | 5.357 | 4.726 | (4.091) | (1.937) |
Distributions from net investment income | (.598) | (.680) | (.690) | (.676) | (.919) | (.923) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.819) | (.848) | (.907) | (.786) | (1.399) | (1.093) |
Net asset value, end of period | $ 52.45 | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 | $ 46.97 |
Total Return B, C, D | 5.55% | 3.03% | 11.85% | 11.43% | (8.34)% | (3.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.14% | 1.43% | 1.41% | 1.57% | 2.37% | 2.11% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 178 | $ 175 | $ 40 | $ 54 | $ 69 | $ 96 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 | $ 46.93 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .426 | .454 | .443 | .476 | .726 | .728 |
Net realized and unrealized gain (loss) | 2.222 | .761 | 4.668 | 4.020 | (5.005) | (2.903) |
Total from investment operations | 2.648 | 1.215 | 5.111 | 4.496 | (4.279) | (2.175) |
Distributions from net investment income | (.487) | (.437) | (.454) | (.456) | (.721) | (.725) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.708) | (.605) | (.671) | (.566) | (1.201) | (.895) |
Net asset value, end of period | $ 52.37 | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 | $ 46.93 |
Total Return B, C, D | 5.29% | 2.50% | 11.30% | 10.87% | (8.80)% | (4.45)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.65% A | .93% | .91% | 1.07% | 1.87% | 1.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 110 | $ 170 | $ 172 | $ 159 | $ 147 | $ 233 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2024
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 | $ 46.98 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .682 | .942 | .933 | .924 | 1.118 | 1.166 |
Net realized and unrealized gain (loss) | 2.224 | .775 | 4.668 | 4.020 | (5.011) | (2.868) |
Total from investment operations | 2.906 | 1.717 | 5.601 | 4.944 | (3.893) | (1.702) |
Distributions from net investment income | (.725) | (.919) | (.944) | (.904) | (1.117) | (1.148) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.946) | (1.087) | (1.161) | (1.014) | (1.597) | (1.318) |
Net asset value, end of period | $ 52.45 | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 | $ 46.98 |
Total Return B, C | 5.81% | 3.55% | 12.41% | 11.98% | (7.87)% | (3.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.64% A | 1.93% | 1.91% | 2.07% | 2.87% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,799 | $ 1,521 | $ 1,463 | $ 1,026 | $ 749 | $ 714 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 | $ 46.98 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .682 | .944 | .930 | .922 | 1.119 | 1.194 |
Net realized and unrealized gain (loss) | 2.224 | .763 | 4.671 | 4.032 | (5.022) | (2.896) |
Total from investment operations | 2.906 | 1.707 | 5.601 | 4.954 | (3.903) | (1.702) |
Distributions from net investment income | (.725) | (.919) | (.944) | (.904) | (1.117) | (1.148) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.946) | (1.087) | (1.161) | (1.014) | (1.597) | (1.318) |
Net asset value, end of period | $ 52.44 | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 | $ 46.98 |
Total Return B, C | 5.81% | 3.53% | 12.41% | 12.00% | (7.89)% | (3.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.64% A | 1.93% | 1.91% | 2.07% | 2.87% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 25 | $ 28 | $ 37 | $ 57 | $ 97 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2026 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.8 | 5.9 |
Fidelity Blue Chip Growth Fund | 5.4 | 5.5 |
Fidelity Disciplined Equity Fund | 6.2 | 6.5 |
Fidelity Equity-Income Fund | 8.2 | 8.6 |
Fidelity Series 100 Index Fund | 5.3 | 5.6 |
Fidelity Series Broad Market Opportunities Fund | 9.5 | 9.7 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 41.2 | 42.6 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 5.6 | 6.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.0 | 2.1 |
Fidelity Strategic Income Fund | 2.0 | 2.1 |
| 4.0 | 4.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.5 | 6.1 |
Fidelity Strategic Real Return Fund | 6.5 | 6.4 |
Fidelity Total Bond Fund | 19.3 | 18.7 |
| 32.3 | 31.2 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 8.4 | 8.0 |
Fidelity Short-Term Bond Fund | 8.5 | 8.0 |
| 16.9 | 16.0 |
| ||
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) | |||
Current | |||
| Domestic Equity Funds | 41.2% |
|
| International Equity Funds | 5.6% |
|
| High Yield Fixed-Income Funds | 4.0% |
|
| Investment Grade Fixed-Income Funds | 32.3% |
|
| Short-Term Funds | 16.9% |
|
Six months ago | |||
| Domestic Equity Funds | 42.6% |
|
| International Equity Funds | 6.0% |
|
| High Yield Fixed-Income Funds | 4.2% |
|
| Investment Grade Fixed-Income Funds | 31.2% |
|
| Short-Term Funds | 16.0% |
|
Expected | |||
| Domestic Equity Funds | 40.7% |
|
| International Equity Funds | 5.4% |
|
| High Yield Fixed-Income Funds | 3.9% |
|
| Investment Grade Fixed-Income Funds | 32.5% |
|
| Short-Term Funds | 17.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2026 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 46.8% | |||
Shares | Value | ||
Domestic Equity Funds - 41.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5,759 | $ 108,213 | |
Fidelity Blue Chip Growth Fund | 1,962 | 100,524 | |
Fidelity Disciplined Equity Fund | 4,510 | 115,902 | |
Fidelity Equity-Income Fund | 3,112 | 154,724 | |
Fidelity Series 100 Index Fund | 10,205 | 100,524 | |
Fidelity Series Broad Market Opportunities Fund | 15,183 | 177,792 | |
Fidelity Series Small Cap Opportunities Fund | 1,310 | 15,379 | |
TOTAL DOMESTIC EQUITY FUNDS | 773,058 | ||
International Equity Funds - 5.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 3,073 | 105,025 | |
TOTAL EQUITY FUNDS (Cost $802,208) |
| ||
Fixed-Income Funds - 36.3% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.0% | |||
Fidelity Capital & Income Fund | 3,919 | 37,696 | |
Fidelity Strategic Income Fund | 3,324 | 37,696 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 75,392 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 32.3% | |||
Fidelity Government Income Fund | 11,503 | $ 120,779 | |
Fidelity Strategic Real Return Fund | 12,362 | 120,779 | |
Fidelity Total Bond Fund | 33,337 | 362,710 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 604,268 | ||
TOTAL FIXED-INCOME FUNDS (Cost $683,953) |
| ||
Short-Term Funds - 16.9% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 158,651 | 158,651 | |
Fidelity Short-Term Bond Fund | 18,471 | 158,850 | |
TOTAL SHORT-TERM FUNDS (Cost $316,462) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,802,623) | 1,875,244 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (105) | ||
NET ASSETS - 100% | $ 1,875,139 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2026 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $1,802,623) - See accompanying schedule | $ 1,875,244 | |
Cash |
| 1 |
Receivable for investments sold | 15,125 | |
Other affiliated receivables | 4 | |
Total assets | 1,890,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,778 | |
Payable for fund shares redeemed | 2,353 | |
Distribution and service plan fees payable | 104 | |
Total liabilities | 15,235 | |
|
|
|
Net Assets | $ 1,875,139 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,999,650 | |
Undistributed net investment income | 381 | |
Accumulated undistributed net realized gain (loss) on investments | (197,513) | |
Net unrealized appreciation (depreciation) on investments | 72,621 | |
Net Assets | $ 1,875,139 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.24 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.24) | $ 55.43 | |
Class T: | $ 52.26 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.26) | $ 54.16 | |
Class C: | $ 52.26 | |
|
|
|
Income Replacement 2026: | $ 52.25 | |
|
|
|
Institutional Class: | $ 52.25 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 27,178 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 717 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 721 | |
Expense reductions | (4) | 717 |
Net investment income (loss) | 26,461 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 2,413 | |
Capital gain distributions from underlying funds | 24,755 |
|
Total net realized gain (loss) |
| 27,168 |
Change in net unrealized appreciation (depreciation) on underlying funds | 65,141 | |
Net gain (loss) | 92,309 | |
Net increase (decrease) in net assets resulting from operations | $ 118,770 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 26,461 | $ 34,853 |
Net realized gain (loss) | 27,168 | 45,033 |
Change in net unrealized appreciation (depreciation) | 65,141 | (33,218) |
Net increase (decrease) in net assets resulting from operations | 118,770 | 46,668 |
Distributions to shareholders from net investment income | (26,390) | (34,935) |
Distributions to shareholders from net realized gain | (8,863) | (6,646) |
Total distributions | (35,253) | (41,581) |
Share transactions - net increase (decrease) | 12,554 | (342,188) |
Total increase (decrease) in net assets | 96,071 | (337,101) |
|
|
|
Net Assets | ||
Beginning of period | 1,779,068 | 2,116,169 |
End of period (including undistributed net investment income of $381 and undistributed net investment income of $310, respectively) | $ 1,875,139 | $ 1,779,068 |
Financial Highlights - Class A
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 | $ 46.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .656 | .793 | .750 | .743 | 1.042 | 1.076 |
Net realized and unrealized gain (loss) | 2.364 | .712 | 4.846 | 4.098 | (5.184) | (3.105) |
Total from investment operations | 3.020 | 1.505 | 5.596 | 4.841 | (4.142) | (2.029) |
Distributions from net investment income | (.643) | (.789) | (.796) | (.771) | (1.028) | (1.031) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.870) | (.945) | (.996) | (.881) | (1.648) | (1.211) |
Net asset value, end of period | $ 52.24 | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 | $ 46.76 |
Total Return B, C, D | 6.08% | 3.13% | 12.52% | 11.87% | (8.56)% | (4.19)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.57% A | 1.64% | 1.55% | 1.68% | 2.70% | 2.36% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 305 | $ 139 | $ 108 | $ 45 | $ 69 | $ 131 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .603 | .668 | .630 | .638 | .944 | .966 |
Net realized and unrealized gain (loss) | 2.361 | .713 | 4.851 | 4.092 | (5.184) | (3.110) |
Total from investment operations | 2.964 | 1.381 | 5.481 | 4.730 | (4.240) | (2.144) |
Distributions from net investment income | (.557) | (.675) | (.671) | (.670) | (.930) | (.916) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.784) | (.831) | (.871) | (.780) | (1.550) | (1.096) |
Net asset value, end of period | $ 52.26 | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.76 |
Total Return B, C, D | 5.96% | 2.87% | 12.26% | 11.59% | (8.79)% | (4.41)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.32% A | 1.39% | 1.30% | 1.44% | 2.45% | 2.11% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 77 | $ 298 | $ 130 | $ 116 | $ 55 | $ 96 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 | $ 46.72 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .455 | .430 | .387 | .412 | .757 | .723 |
Net realized and unrealized gain (loss) | 2.376 | .730 | 4.848 | 4.087 | (5.183) | (3.090) |
Total from investment operations | 2.831 | 1.160 | 5.235 | 4.499 | (4.426) | (2.367) |
Distributions from net investment income | (.464) | (.374) | (.435) | (.449) | (.724) | (.733) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.691) | (.530) | (.635) | (.559) | (1.344) | (.913) |
Net asset value, end of period | $ 52.26 | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 | $ 46.72 |
Total Return B, C, D | 5.69% | 2.40% | 11.70% | 11.01% | (9.25)% | (4.85)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.79% A | .89% | .80% | .94% | 1.95% | 1.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10 | $ 9 | $ 184 | $ 174 | $ 183 | $ 485 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2026
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .723 | .913 | .878 | .856 | 1.138 | 1.168 |
Net realized and unrealized gain (loss) | 2.369 | .711 | 4.844 | 4.091 | (5.190) | (3.079) |
Total from investment operations | 3.092 | 1.624 | 5.722 | 4.947 | (4.052) | (1.911) |
Distributions from net investment income | (.705) | (.908) | (.912) | (.887) | (1.128) | (1.139) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.932) | (1.064) | (1.112) | (.997) | (1.748) | (1.319) |
Net asset value, end of period | $ 52.25 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 |
Total Return B, C | 6.23% | 3.39% | 12.82% | 12.14% | (8.34)% | (3.96)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.82% A | 1.88% | 1.80% | 1.94% | 2.95% | 2.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,457 | $ 1,309 | $ 1,666 | $ 622 | $ 357 | $ 783 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.54 | $ 44.92 | $ 40.97 | $ 46.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .723 | .912 | .870 | .855 | 1.136 | 1.196 |
Net realized and unrealized gain (loss) | 2.369 | .712 | 4.852 | 4.092 | (5.188) | (3.107) |
Total from investment operations | 3.092 | 1.624 | 5.722 | 4.947 | (4.052) | (1.911) |
Distributions from net investment income | (.705) | (.908) | (.912) | (.887) | (1.128) | (1.139) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.932) | (1.064) | (1.112) | (.997) | (1.748) | (1.319) |
Net asset value, end of period | $ 52.25 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 |
Total Return B, C | 6.23% | 3.39% | 12.82% | 12.14% | (8.34)% | (3.96)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.82% A | 1.88% | 1.80% | 1.94% | 2.95% | 2.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 27 | $ 36 | $ 56 | $ 96 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2028 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.0 | 6.1 |
Fidelity Blue Chip Growth Fund | 5.6 | 5.6 |
Fidelity Disciplined Equity Fund | 6.4 | 6.7 |
Fidelity Equity-Income Fund | 8.6 | 8.9 |
Fidelity Series 100 Index Fund | 5.6 | 5.8 |
Fidelity Series Broad Market Opportunities Fund | 9.9 | 10.1 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 43.0 | 44.1 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 6.4 | 6.8 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.2 | 2.3 |
Fidelity Strategic Income Fund | 2.2 | 2.2 |
| 4.4 | 4.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.1 | 5.9 |
Fidelity Strategic Real Return Fund | 6.1 | 6.1 |
Fidelity Total Bond Fund | 18.4 | 17.9 |
| 30.6 | 29.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 7.8 | 7.3 |
Fidelity Short-Term Bond Fund | 7.8 | 7.4 |
| 15.6 | 14.7 |
| ||
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 44.1% |
|
| International Equity Funds | 6.8% |
|
| High Yield Fixed-Income Funds | 4.5% |
|
| Investment Grade Fixed-Income Funds | 29.9% |
|
| Short-Term Funds | 14.7% |
|
Expected | |||
| Domestic Equity Funds | 42.6% |
|
| International Equity Funds | 6.2% |
|
| High Yield Fixed-Income Funds | 4.3% |
|
| Investment Grade Fixed-Income Funds | 30.9% |
|
| Short-Term Funds | 16.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2028 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 49.4% | |||
Shares | Value | ||
Domestic Equity Funds - 43.0% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 20,185 | $ 379,285 | |
Fidelity Blue Chip Growth Fund | 6,874 | 352,148 | |
Fidelity Disciplined Equity Fund | 15,814 | 406,422 | |
Fidelity Equity-Income Fund | 10,903 | 542,106 | |
Fidelity Series 100 Index Fund | 35,751 | 352,148 | |
Fidelity Series Broad Market Opportunities Fund | 53,246 | 623,516 | |
Fidelity Series Small Cap Opportunities Fund | 4,623 | 54,274 | |
TOTAL DOMESTIC EQUITY FUNDS | 2,709,899 | ||
International Equity Funds - 6.4% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 11,817 | 403,897 | |
TOTAL EQUITY FUNDS (Cost $2,742,362) |
| ||
Fixed-Income Funds - 35.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.4% | |||
Fidelity Capital & Income Fund | 14,432 | 138,840 | |
Fidelity Strategic Income Fund | 12,243 | 138,840 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 277,680 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 30.6% | |||
Fidelity Government Income Fund | 36,783 | $ 386,227 | |
Fidelity Strategic Real Return Fund | 39,532 | 386,227 | |
Fidelity Total Bond Fund | 106,612 | 1,159,939 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,932,393 | ||
TOTAL FIXED-INCOME FUNDS (Cost $2,157,389) |
| ||
Short-Term Funds - 15.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 493,512 | 493,512 | |
Fidelity Short-Term Bond Fund | 57,385 | 493,512 | |
TOTAL SHORT-TERM FUNDS (Cost $978,686) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,878,437) | 6,310,893 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (100) | ||
NET ASSETS - 100% | $ 6,310,793 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2028 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,878,437) - See accompanying schedule | $ 6,310,893 | |
Cash |
| 2 |
Receivable for investments sold | 39,032 | |
Total assets | 6,349,927 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 39,029 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 39,134 | |
|
|
|
Net Assets | $ 6,310,793 | |
Net Assets consist of: |
| |
Paid in capital | $ 6,389,577 | |
Undistributed net investment income | 1,231 | |
Accumulated undistributed net realized gain (loss) on investments | (512,471) | |
Net unrealized appreciation (depreciation) on investments | 432,456 | |
Net Assets | $ 6,310,793 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.76 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.76) | $ 55.98 | |
Class T: | $ 52.78 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.78) | $ 54.69 | |
Class C: | $ 52.75 | |
|
|
|
Income Replacement 2028: | $ 52.76 | |
|
|
|
Institutional Class: | $ 52.76 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 84,352 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 644 | |
Independent trustees' compensation | 11 | |
Total expenses before reductions | 655 | |
Expense reductions | (11) | 644 |
Net investment income (loss) | 83,708 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 16,736 | |
Capital gain distributions from underlying funds | 74,432 |
|
Total net realized gain (loss) |
| 91,168 |
Change in net unrealized appreciation (depreciation) on underlying funds | 205,577 | |
Net gain (loss) | 296,745 | |
Net increase (decrease) in net assets resulting from operations | $ 380,453 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 83,708 | $ 100,790 |
Net realized gain (loss) | 91,168 | 155,086 |
Change in net unrealized appreciation (depreciation) | 205,577 | (131,252) |
Net increase (decrease) in net assets resulting from operations | 380,453 | 124,624 |
Distributions to shareholders from net investment income | (83,473) | (101,077) |
Distributions to shareholders from net realized gain | (26,559) | (17,138) |
Total distributions | (110,032) | (118,215) |
Share transactions - net increase (decrease) | 316,974 | (405,722) |
Total increase (decrease) in net assets | 587,395 | (399,313) |
|
|
|
Net Assets | ||
Beginning of period | 5,723,398 | 6,122,711 |
End of period (including undistributed net investment income of $1,231 and undistributed net investment income of $996, respectively) | $ 6,310,793 | $ 5,723,398 |
Financial Highlights - Class A
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 | $ 46.81 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .663 | .792 | .802 | .789 | 1.000 | .966 |
Net realized and unrealized gain (loss) | 2.547 | .666 | 4.972 | 4.116 | (5.341) | (3.085) |
Total from investment operations | 3.210 | 1.458 | 5.774 | 4.905 | (4.341) | (2.119) |
Distributions from net investment income | (.653) | (.794) | (.815) | (.785) | (.979) | (.911) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.880) | (.948) | (1.024) | (.895) | (1.309) | (1.071) |
Net asset value, end of period | $ 52.76 | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 | $ 46.81 |
Total Return B, C, D | 6.42% | 3.02% | 12.85% | 11.96% | (8.93)% | (4.36)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.56% A | 1.63% | 1.65% | 1.78% | 2.60% | 2.16% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 142 | $ 133 | $ 133 | $ 359 | $ 278 | $ 371 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 | $ 46.80 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .600 | .672 | .682 | .678 | .905 | .847 |
Net realized and unrealized gain (loss) | 2.537 | .678 | 4.975 | 4.107 | (5.340) | (3.079) |
Total from investment operations | 3.137 | 1.350 | 5.657 | 4.785 | (4.435) | (2.232) |
Distributions from net investment income | (.590) | (.676) | (.668) | (.675) | (.875) | (.808) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.817) | (.830) | (.877) | (.785) | (1.205) | (.968) |
Net asset value, end of period | $ 52.78 | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 | $ 46.80 |
Total Return B, C, D | 6.27% | 2.79% | 12.57% | 11.66% | (9.15)% | (4.57)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.32% A | 1.38% | 1.40% | 1.53% | 2.35% | 1.91% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 133 | $ 128 | $ 130 | $ 328 | $ 311 | $ 606 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 | $ 46.79 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .470 | .427 | .438 | .454 | .711 | .639 |
Net realized and unrealized gain (loss) | 2.542 | .662 | 4.974 | 4.117 | (5.333) | (3.104) |
Total from investment operations | 3.012 | 1.089 | 5.412 | 4.571 | (4.622) | (2.465) |
Distributions from net investment income | (.475) | (.435) | (.453) | (.431) | (.678) | (.585) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.702) | (.589) | (.662) | (.541) | (1.008) | (.745) |
Net asset value, end of period | $ 52.75 | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 | $ 46.79 |
Total Return B, C, D | 6.01% | 2.24% | 12.01% | 11.13% | (9.60)% | (5.02)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.81% A | .88% | .90% | 1.02% | 1.84% | 1.41% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 33 | $ 49 | $ 51 | $ 86 | $ 150 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2028
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .914 | .925 | .900 | 1.087 | 1.067 |
Net realized and unrealized gain (loss) | 2.537 | .680 | 4.965 | 4.115 | (5.330) | (3.072) |
Total from investment operations | 3.265 | 1.594 | 5.890 | 5.015 | (4.243) | (2.005) |
Distributions from net investment income | (.718) | (.920) | (.941) | (.895) | (1.077) | (1.015) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.945) | (1.074) | (1.150) | (1.005) | (1.407) | (1.175) |
Net asset value, end of period | $ 52.76 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 |
Total Return B, C | 6.53% | 3.30% | 13.12% | 12.24% | (8.69)% | (4.14)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.81% A | 1.88% | 1.90% | 2.03% | 2.85% | 2.40% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,985 | $ 5,405 | $ 5,783 | $ 5,383 | $ 5,641 | $ 6,068 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .916 | .923 | .899 | 1.097 | 1.101 |
Net realized and unrealized gain (loss) | 2.537 | .678 | 4.967 | 4.116 | (5.340) | (3.106) |
Total from investment operations | 3.265 | 1.594 | 5.890 | 5.015 | (4.243) | (2.005) |
Distributions from net investment income | (.718) | (.920) | (.941) | (.895) | (1.077) | (1.015) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.945) | (1.074) | (1.150) | (1.005) | (1.407) | (1.175) |
Net asset value, end of period | $ 52.76 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 |
Total Return B, C | 6.53% | 3.30% | 13.12% | 12.24% | (8.69)% | (4.14)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.81% A | 1.88% | 1.90% | 2.03% | 2.85% | 2.40% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 27 | $ 36 | $ 56 | $ 96 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.2 | 6.3 |
Fidelity Blue Chip Growth Fund | 5.7 | 5.8 |
Fidelity Disciplined Equity Fund | 6.6 | 6.9 |
Fidelity Equity-Income Fund | 8.9 | 9.2 |
Fidelity Series 100 Index Fund | 5.7 | 5.9 |
Fidelity Series Broad Market Opportunities Fund | 10.2 | 10.3 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 44.2 | 45.3 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 7.2 | 7.5 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.4 | 2.4 |
Fidelity Strategic Income Fund | 2.4 | 2.4 |
| 4.8 | 4.8 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.0 | 5.7 |
Fidelity Strategic Real Return Fund | 6.0 | 6.0 |
Fidelity Total Bond Fund | 17.6 | 17.4 |
| 29.6 | 29.1 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 7.1 | 6.6 |
Fidelity Short-Term Bond Fund | 7.1 | 6.7 |
| 14.2 | 13.3 |
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 45.3% |
|
| International Equity Funds | 7.5% |
|
| High Yield Fixed-Income Funds | 4.8% |
|
| Investment Grade Fixed-Income Funds | 29.1% |
|
| Short-Term Funds | 13.3% |
|
Expected | |||
| Domestic Equity Funds | 43.9% |
|
| International Equity Funds | 7.0% |
|
| High Yield Fixed-Income Funds | 4.6% |
|
| Investment Grade Fixed-Income Funds | 29.9% |
|
| Short-Term Funds | 14.6% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2030 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 51.4% | |||
Shares | Value | ||
Domestic Equity Funds - 44.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 13,642 | $ 256,338 | |
Fidelity Blue Chip Growth Fund | 4,648 | 238,117 | |
Fidelity Disciplined Equity Fund | 10,699 | 274,973 | |
Fidelity Equity-Income Fund | 7,371 | 366,492 | |
Fidelity Series 100 Index Fund | 24,174 | 238,117 | |
Fidelity Series Broad Market Opportunities Fund | 35,965 | 421,156 | |
Fidelity Series Small Cap Opportunities Fund | 3,104 | 36,442 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,831,635 | ||
International Equity Funds - 7.2% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 8,699 | 297,335 | |
TOTAL EQUITY FUNDS (Cost $1,756,271) |
| ||
Fixed-Income Funds - 34.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.8% | |||
Fidelity Capital & Income Fund | 10,159 | 97,731 | |
Fidelity Strategic Income Fund | 8,618 | 97,731 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 195,462 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 29.6% | |||
Fidelity Government Income Fund | 23,388 | $ 245,571 | |
Fidelity Strategic Real Return Fund | 25,135 | 245,571 | |
Fidelity Total Bond Fund | 67,712 | 736,710 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,227,852 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,393,010) |
| ||
Short-Term Funds - 14.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 294,436 | 294,436 | |
Fidelity Short-Term Bond Fund | 34,237 | 294,436 | |
TOTAL SHORT-TERM FUNDS (Cost $583,716) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,732,997) | 4,141,156 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (262) | ||
NET ASSETS - 100% | $ 4,140,894 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,732,997) - See accompanying schedule | $ 4,141,156 | |
Cash | 1 | |
Receivable for investments sold | 25,682 | |
Other affiliated receivables | 12 | |
Total assets | 4,166,851 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 25,678 | |
Distribution and service plan fees payable | 279 | |
Total liabilities | 25,957 | |
|
|
|
Net Assets | $ 4,140,894 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,894,972 | |
Undistributed net investment income | 793 | |
Accumulated undistributed net realized gain (loss) on investments | (163,030) | |
Net unrealized appreciation (depreciation) on investments | 408,159 | |
Net Assets | $ 4,140,894 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.54) | $ 55.75 | |
Class T: | $ 52.63 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.63) | $ 54.54 | |
Class C: | $ 52.46 | |
|
|
|
Income Replacement 2030: | $ 52.54 | |
|
|
|
Institutional Class: | $ 52.54 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 57,144 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,688 | |
Independent trustees' compensation | 7 | |
Total expenses before reductions | 1,695 | |
Expense reductions | (7) | 1,688 |
Net investment income (loss) | 55,456 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 9,570 | |
Capital gain distributions from underlying funds | 49,814 |
|
Total net realized gain (loss) |
| 59,384 |
Change in net unrealized appreciation (depreciation) on underlying funds | 142,973 | |
Net gain (loss) | 202,357 | |
Net increase (decrease) in net assets resulting from operations | $ 257,813 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,456 | $ 77,258 |
Net realized gain (loss) | 59,384 | (19,660) |
Change in net unrealized appreciation (depreciation) | 142,973 | 71,227 |
Net increase (decrease) in net assets resulting from operations | 257,813 | 128,825 |
Distributions to shareholders from net investment income | (55,341) | (77,373) |
Distributions to shareholders from net realized gain | (17,604) | (13,766) |
Total distributions | (72,945) | (91,139) |
Share transactions - net increase (decrease) | (36,609) | (390,844) |
Total increase (decrease) in net assets | 148,259 | (353,158) |
|
|
|
Net Assets | ||
Beginning of period | 3,992,635 | 4,345,793 |
End of period (including undistributed net investment income of $793 and undistributed net investment income of $678, respectively) | $ 4,140,894 | $ 3,992,635 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .667 | .815 | .791 | .718 | .978 | 1.034 |
Net realized and unrealized gain (loss) | 2.656 | .598 | 5.066 | 4.180 | (5.404) | (3.239) |
Total from investment operations | 3.323 | 1.413 | 5.857 | 4.898 | (4.426) | (2.205) |
Distributions from net investment income | (.675) | (.796) | (.801) | (.713) | (1.004) | (.995) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.903) | (.943) | (.977) | (.818) | (1.494) | (1.185) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 | $ 46.61 |
Total Return B, C, D | 6.69% | 2.94% | 13.15% | 12.08% | (9.22)% | (4.55)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.59% A | 1.68% | 1.63% | 1.63% | 2.57% | 2.26% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 90 | $ 86 | $ 72 | $ 66 | $ 55 | $ 95 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .602 | .715 | .655 | .603 | .881 | .920 |
Net realized and unrealized gain (loss) | 2.660 | .598 | 5.076 | 4.182 | (5.402) | (3.234) |
Total from investment operations | 3.262 | 1.313 | 5.731 | 4.785 | (4.521) | (2.314) |
Distributions from net investment income | (.604) | (.636) | (.665) | (.590) | (.909) | (.886) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.832) | (.783) | (.841) | (.695) | (1.399) | (1.076) |
Net asset value, end of period | $ 52.63 | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 | $ 46.61 |
Total Return B, C, D | 6.55% | 2.72% | 12.85% | 11.79% | (9.45)% | (4.76)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .46% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .46% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.34% A | 1.48% | 1.38% | 1.37% | 2.32% | 2.01% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14 | $ 13 | $ 15 | $ 45 | $ 71 | $ 95 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 | $ 46.58 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .474 | .451 | .428 | .385 | .693 | .682 |
Net realized and unrealized gain (loss) | 2.646 | .604 | 5.060 | 4.185 | (5.400) | (3.227) |
Total from investment operations | 3.120 | 1.055 | 5.488 | 4.570 | (4.707) | (2.545) |
Distributions from net investment income | (.502) | (.448) | (.452) | (.385) | (.713) | (.685) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.730) | (.595) | (.628) | (.490) | (1.203) | (.875) |
Net asset value, end of period | $ 52.46 | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 | $ 46.58 |
Total Return B, C, D | 6.28% | 2.19% | 12.30% | 11.26% | (9.91)% | (5.21)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.84% A | .93% | .88% | .88% | 1.82% | 1.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 306 | $ 312 | $ 270 | $ 186 | $ 178 | $ 297 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2030
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .732 | .935 | .917 | .821 | 1.101 | 1.117 |
Net realized and unrealized gain (loss) | 2.654 | .608 | 5.062 | 4.178 | (5.429) | (3.209) |
Total from investment operations | 3.386 | 1.543 | 5.979 | 4.999 | (4.328) | (2.092) |
Distributions from net investment income | (.738) | (.916) | (.923) | (.824) | (1.102) | (1.108) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.966) | (1.063) | (1.099) | (.929) | (1.592) | (1.298) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 | $ 46.61 |
Total Return B, C | 6.82% | 3.22% | 13.43% | 12.34% | (8.99)% | (4.33)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.84% A | 1.93% | 1.88% | 1.88% | 2.82% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,677 | $ 3,558 | $ 3,962 | $ 1,628 | $ 303 | $ 653 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .936 | .911 | .825 | 1.074 | 1.149 |
Net realized and unrealized gain (loss) | 2.658 | .607 | 5.058 | 4.184 | (5.402) | (3.241) |
Total from investment operations | 3.386 | 1.543 | 5.969 | 5.009 | (4.328) | (2.092) |
Distributions from net investment income | (.738) | (.916) | (.923) | (.824) | (1.102) | (1.108) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.966) | (1.063) | (1.099) | (.929) | (1.592) | (1.298) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 | $ 46.61 |
Total Return B, C | 6.82% | 3.22% | 13.41% | 12.36% | (8.99)% | (4.33)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.84% A | 1.93% | 1.88% | 1.88% | 2.82% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 54 | $ 24 | $ 27 | $ 36 | $ 55 | $ 96 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.3 | 6.4 |
Fidelity Blue Chip Growth Fund | 5.9 | 5.9 |
Fidelity Disciplined Equity Fund | 6.8 | 7.0 |
Fidelity Equity-Income Fund | 9.0 | 9.4 |
Fidelity Series 100 Index Fund | 5.9 | 6.0 |
Fidelity Series Broad Market Opportunities Fund | 10.4 | 10.6 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.2 | 46.2 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 8.0 | 8.4 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.5 | 2.5 |
Fidelity Strategic Income Fund | 2.5 | 2.5 |
| 5.0 | 5.0 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.7 | 5.5 |
Fidelity Strategic Real Return Fund | 5.7 | 5.7 |
Fidelity Total Bond Fund | 17.0 | 16.7 |
| 28.4 | 27.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 6.7 | 6.2 |
Fidelity Short-Term Bond Fund | 6.7 | 6.3 |
| 13.4 | 12.5 |
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) | |||
Current | |||
| Domestic Equity Funds | 45.2% |
|
| International Equity Funds | 8.0% |
|
| High Yield Fixed-Income Funds | 5.0% |
|
| Investment Grade Fixed-Income Funds | 28.4% |
|
| Short-Term Funds | 13.4% |
|
Six months ago | |||
| Domestic Equity Funds | 46.2% |
|
| International Equity Funds | 8.4% |
|
| High Yield Fixed-Income Funds | 5.0% |
|
| Investment Grade Fixed-Income Funds | 27.9% |
|
| Short-Term Funds | 12.5% |
|
Expected | |||
| Domestic Equity Funds | 45.0% |
|
| International Equity Funds | 7.8% |
|
| High Yield Fixed-Income Funds | 4.9% |
|
| Investment Grade Fixed-Income Funds | 28.9% |
|
| 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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2032 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 53.2% | |||
Shares | Value | ||
Domestic Equity Funds - 45.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 14,058 | $ 264,146 | |
Fidelity Blue Chip Growth Fund | 4,790 | 245,367 | |
Fidelity Disciplined Equity Fund | 11,009 | 282,924 | |
Fidelity Equity-Income Fund | 7,587 | 377,232 | |
Fidelity Series 100 Index Fund | 24,910 | 245,367 | |
Fidelity Series Broad Market Opportunities Fund | 37,061 | 433,983 | |
Fidelity Series Small Cap Opportunities Fund | 3,199 | 37,556 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,886,575 | ||
International Equity Funds - 8.0% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 9,706 | 331,747 | |
TOTAL EQUITY FUNDS (Cost $1,971,752) |
| ||
Fixed-Income Funds - 33.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.0% | |||
Fidelity Capital & Income Fund | 10,801 | 103,906 | |
Fidelity Strategic Income Fund | 9,163 | 103,906 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 207,812 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 28.4% | |||
Fidelity Government Income Fund | 22,693 | $ 238,274 | |
Fidelity Strategic Real Return Fund | 24,388 | 238,273 | |
Fidelity Total Bond Fund | 65,662 | 714,402 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,190,949 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,396,646) |
| ||
Short-Term Funds - 13.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 277,916 | 277,916 | |
Fidelity Short-Term Bond Fund | 32,316 | 277,916 | |
TOTAL SHORT-TERM FUNDS (Cost $553,676) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,922,074) | 4,172,915 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (641) | ||
NET ASSETS - 100% | $ 4,172,274 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,922,074) - See accompanying schedule | $ 4,172,915 | |
Receivable for investments sold | 31,080 | |
Receivable for fund shares sold | 2,000 | |
Total assets | 4,205,995 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 25,554 | |
Payable for fund shares redeemed | 8,062 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 33,721 | |
|
|
|
Net Assets | $ 4,172,274 | |
Net Assets consist of: |
| |
Paid in capital | $ 4,047,604 | |
Undistributed net investment income | 804 | |
Accumulated undistributed net realized gain (loss) on investments | (126,975) | |
Net unrealized appreciation (depreciation) on investments | 250,841 | |
Net Assets | $ 4,172,274 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 50.16 | |
|
|
|
Maximum offering price per share (100/94.25 of $50.16) | $ 53.22 | |
Class T: | $ 50.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $50.19) | $ 52.01 | |
Class C: | $ 50.15 | |
|
|
|
Income Replacement 2032: | $ 50.17 | |
|
|
|
Institutional Class: | $ 50.17 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,207 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 610 | |
Independent trustees' compensation | 7 | |
Total expenses before reductions | 617 | |
Expense reductions | (7) | 610 |
Net investment income (loss) | 58,597 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 23,622 | |
Capital gain distributions from underlying funds | 49,199 |
|
Total net realized gain (loss) |
| 72,821 |
Change in net unrealized appreciation (depreciation) on underlying funds | 135,592 | |
Net gain (loss) | 208,413 | |
Net increase (decrease) in net assets resulting from operations | $ 267,010 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 58,597 | $ 39,662 |
Net realized gain (loss) | 72,821 | 100,607 |
Change in net unrealized appreciation (depreciation) | 135,592 | (41,402) |
Net increase (decrease) in net assets resulting from operations | 267,010 | 98,867 |
Distributions to shareholders from net investment income | (58,342) | (39,403) |
Distributions to shareholders from net realized gain | (32,634) | (105,815) |
Total distributions | (90,976) | (145,218) |
Share transactions - net increase (decrease) | 696,389 | 1,767,286 |
Total increase (decrease) in net assets | 872,423 | 1,720,935 |
|
|
|
Net Assets | ||
Beginning of period | 3,299,851 | 1,578,916 |
End of period (including undistributed net investment income of $804 and undistributed net investment income of $549, respectively) | $ 4,172,274 | $ 3,299,851 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 | $ 46.52 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .702 | .717 | .796 | .727 | .930 | 1.019 |
Net realized and unrealized gain (loss) | 2.585 | .618 | 5.086 | 4.154 | (5.570) | (3.322) |
Total from investment operations | 3.287 | 1.335 | 5.882 | 4.881 | (4.640) | (2.303) |
Distributions from net investment income | (.633) | (.770) | (.812) | (.796) | (.960) | (.987) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.037) | (2.495) | (1.002) | (.901) | (1.670) | (1.177) |
Net asset value, end of period | $ 50.16 | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 | $ 46.52 |
Total Return B, C, D | 6.91% | 2.85% | 13.38% | 12.19% | (9.66)% | (4.75)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .37% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.86% A | 1.51% | 1.66% | 1.67% | 2.43% | 2.27% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 224 | $ 217 | $ 214 | $ 200 | $ 183 | $ 402 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 | $ 46.52 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .641 | .599 | .676 | .620 | .821 | .918 |
Net realized and unrealized gain (loss) | 2.582 | .599 | 5.107 | 4.147 | (5.548) | (3.339) |
Total from investment operations | 3.223 | 1.198 | 5.783 | 4.767 | (4.727) | (2.421) |
Distributions from net investment income | (.569) | (.633) | (.693) | (.682) | (.863) | (.869) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (.973) | (2.358) | (.883) | (.787) | (1.573) | (1.059) |
Net asset value, end of period | $ 50.19 | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 | $ 46.52 |
Total Return B, C, D | 6.79% | 2.55% | 13.14% | 11.90% | (9.88)% | (4.98)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .62% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.61% A | 1.26% | 1.41% | 1.43% | 2.18% | 2.02% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 24 | $ 27 | $ 35 | $ 54 | $ 95 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 | $ 46.51 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .519 | .358 | .434 | .403 | .624 | .690 |
Net realized and unrealized gain (loss) | 2.576 | .615 | 5.102 | 4.143 | (5.532) | (3.342) |
Total from investment operations | 3.095 | .973 | 5.536 | 4.546 | (4.908) | (2.652) |
Distributions from net investment income | (.471) | (.438) | (.446) | (.451) | (.662) | (.648) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (.875) | (2.163) | (.636) | (.556) | (1.372) | (.838) |
Net asset value, end of period | $ 50.15 | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 | $ 46.51 |
Total Return B, C, D | 6.52% | 2.07% | 12.55% | 11.33% | (10.32)% | (5.42)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.12% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.11% A | .76% | .91% | .93% | 1.68% | 1.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 56 | $ 52 | $ 22 | $ 29 | $ 46 | $ 95 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2032
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .763 | .836 | .918 | .832 | 1.014 | 1.122 |
Net realized and unrealized gain (loss) | 2.585 | .618 | 5.095 | 4.147 | (5.557) | (3.310) |
Total from investment operations | 3.348 | 1.454 | 6.013 | 4.979 | (4.543) | (2.188) |
Distributions from net investment income | (.694) | (.889) | (.933) | (.904) | (1.057) | (1.092) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.098) | (2.614) | (1.123) | (1.009) | (1.767) | (1.282) |
Net asset value, end of period | $ 50.17 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 |
Total Return B, C | 7.05% | 3.10% | 13.68% | 12.44% | (9.43)% | (4.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .12% | .00% F | .00% F | .00% F | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.11% A | 1.76% | 1.91% | 1.92% | 2.68% | 2.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,850 | $ 2,991 | $ 1,297 | $ 1,391 | $ 1,285 | $ 731 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .764 | .835 | .904 | .834 | 1.009 | 1.147 |
Net realized and unrealized gain (loss) | 2.584 | .619 | 5.109 | 4.145 | (5.552) | (3.335) |
Total from investment operations | 3.348 | 1.454 | 6.013 | 4.979 | (4.543) | (2.188) |
Distributions from net investment income | (.694) | (.889) | (.933) | (.904) | (1.057) | (1.092) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.098) | (2.614) | (1.123) | (1.009) | (1.767) | (1.282) |
Net asset value, end of period | $ 50.17 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 |
Total Return B, C | 7.07% | 3.10% | 13.68% | 12.44% | (9.43)% | (4.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .12% | .00% F | .00% F | .00% F | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.11% A | 1.76% | 1.91% | 1.92% | 2.68% | 2.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18 | $ 17 | $ 19 | $ 61 | $ 55 | $ 96 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.4 | 6.5 |
Fidelity Blue Chip Growth Fund | 6.0 | 6.0 |
Fidelity Disciplined Equity Fund | 6.9 | 7.1 |
Fidelity Equity-Income Fund | 9.2 | 9.5 |
Fidelity Series 100 Index Fund | 6.0 | 6.2 |
Fidelity Series Broad Market Opportunities Fund | 10.6 | 10.7 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.0 | 46.9 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 8.8 | 9.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.6 | 2.7 |
Fidelity Strategic Income Fund | 2.6 | 2.6 |
| 5.2 | 5.3 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.6 | 5.4 |
Fidelity Strategic Real Return Fund | 5.6 | 5.6 |
Fidelity Total Bond Fund | 16.6 | 16.3 |
| 27.8 | 27.3 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 6.1 | 5.6 |
Fidelity Short-Term Bond Fund | 6.1 | 5.7 |
| 12.2 | 11.3 |
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) | |||
Current | |||
| Domestic Equity Funds | 46.0% |
|
| International Equity Funds | 8.8% |
|
| High Yield Fixed-Income Funds | 5.2% |
|
| Investment Grade Fixed-Income Funds | 27.8% |
|
| Short-Term Funds | 12.2% |
|
Six months ago | |||
| Domestic Equity Funds | 46.9% |
|
| International Equity Funds | 9.2% |
|
| High Yield Fixed-Income Funds | 5.3% |
|
| Investment Grade Fixed-Income Funds | 27.3% |
|
| Short-Term Funds | 11.3% |
|
Expected | |||
| Domestic Equity Funds | 45.8% |
|
| International Equity Funds | 8.5% |
|
| High Yield Fixed-Income Funds | 5.2% |
|
| Investment Grade Fixed-Income Funds | 28.0% |
|
| Short-Term Funds | 12.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2034 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 54.8% | |||
Shares | Value | ||
Domestic Equity Funds - 46.0% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 9,384 | $ 176,324 | |
Fidelity Blue Chip Growth Fund | 3,196 | 163,730 | |
Fidelity Disciplined Equity Fund | 7,351 | 188,919 | |
Fidelity Equity-Income Fund | 5,066 | 251,892 | |
Fidelity Series 100 Index Fund | 16,622 | 163,730 | |
Fidelity Series Broad Market Opportunities Fund | 24,761 | 289,949 | |
Fidelity Series Small Cap Opportunities Fund | 2,146 | 25,189 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,259,733 | ||
International Equity Funds - 8.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 7,001 | 239,297 | |
TOTAL EQUITY FUNDS (Cost $1,171,581) |
| ||
Fixed-Income Funds - 33.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.2% | |||
Fidelity Capital & Income Fund | 7,428 | 71,461 | |
Fidelity Strategic Income Fund | 6,302 | 71,461 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 142,922 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 27.8% | |||
Fidelity Government Income Fund | 14,550 | $ 152,778 | |
Fidelity Strategic Real Return Fund | 15,637 | 152,778 | |
Fidelity Total Bond Fund | 42,101 | 458,057 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 763,613 | ||
TOTAL FIXED-INCOME FUNDS (Cost $847,497) |
| ||
Short-Term Funds - 12.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 166,194 | 166,194 | |
Fidelity Short-Term Bond Fund | 19,325 | 166,194 | |
TOTAL SHORT-TERM FUNDS (Cost $327,582) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,346,660) | 2,737,953 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (52) | ||
NET ASSETS - 100% | $ 2,737,901 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,346,660) - See accompanying schedule | $ 2,737,953 | |
Receivable for investments sold | 15,743 | |
Total assets | 2,753,696 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 15,742 | |
Distribution and service plan fees payable | 53 | |
Total liabilities | 15,795 | |
|
|
|
Net Assets | $ 2,737,901 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,451,292 | |
Undistributed net investment income | 519 | |
Accumulated undistributed net realized gain (loss) on investments | (105,203) | |
Net unrealized appreciation (depreciation) on investments | 391,293 | |
Net Assets | $ 2,737,901 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.33 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.33) | $ 55.52 | |
Class T: | $ 52.33 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.33) | $ 54.23 | |
Class C: | $ 52.32 | |
|
|
|
Income Replacement 2034: | $ 52.30 | |
|
|
|
Institutional Class: | $ 52.30 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 36,293 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 359 | |
Independent trustees' compensation | 5 | |
Total expenses before reductions | 364 | |
Expense reductions | (5) | 359 |
Net investment income (loss) | 35,934 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 377 | |
Capital gain distributions from underlying funds | 29,644 |
|
Total net realized gain (loss) |
| 30,021 |
Change in net unrealized appreciation (depreciation) on underlying funds | 105,573 | |
Net gain (loss) | 135,594 | |
Net increase (decrease) in net assets resulting from operations | $ 171,528 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 35,934 | $ 40,470 |
Net realized gain (loss) | 30,021 | 25,007 |
Change in net unrealized appreciation (depreciation) | 105,573 | (4,302) |
Net increase (decrease) in net assets resulting from operations | 171,528 | 61,175 |
Distributions to shareholders from net investment income | (35,829) | (40,482) |
Distributions to shareholders from net realized gain | (10,194) | (6,232) |
Total distributions | (46,023) | (46,714) |
Share transactions - net increase (decrease) | 282,987 | 74,690 |
Total increase (decrease) in net assets | 408,492 | 89,151 |
|
|
|
Net Assets | ||
Beginning of period | 2,329,409 | 2,240,258 |
End of period (including undistributed net investment income of $519 and undistributed net investment income of $414, respectively) | $ 2,737,901 | $ 2,329,409 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .689 | .782 | .799 | .753 | .923 | .994 |
Net realized and unrealized gain (loss) | 2.837 | .504 | 5.233 | 4.174 | (5.753) | (3.438) |
Total from investment operations | 3.526 | 1.286 | 6.032 | 4.927 | (4.830) | (2.444) |
Distributions from net investment income | (.685) | (.775) | (.772) | (.758) | (.890) | (.956) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.896) | (.916) | (.972) | (.947) | (1.280) | (1.156) |
Net asset value, end of period | $ 52.33 | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 | $ 46.40 |
Total Return B, C, D | 7.16% | 2.71% | 13.69% | 12.29% | (10.20)% | (5.04)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Expenses net of fee waivers, if any | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Expenses net of all reductions | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Net investment income (loss) | 2.70% A | 1.63% | 1.66% | 1.73% | 2.46% | 2.19% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 19 | $ 18 | $ 20 | $ 27 | $ 63 | $ 138 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .628 | .662 | .681 | .645 | .828 | .875 |
Net realized and unrealized gain (loss) | 2.829 | .490 | 5.247 | 4.175 | (5.757) | (3.431) |
Total from investment operations | 3.457 | 1.152 | 5.928 | 4.820 | (4.929) | (2.556) |
Distributions from net investment income | (.616) | (.651) | (.658) | (.651) | (.791) | (.844) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.827) | (.792) | (.858) | (.840) | (1.181) | (1.044) |
Net asset value, end of period | $ 52.33 | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 | $ 46.40 |
Total Return B, C, D | 7.01% | 2.42% | 13.45% | 12.01% | (10.44)% | (5.25)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .51% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .51% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .51% | .50% A |
Net investment income (loss) | 2.46% A | 1.38% | 1.42% | 1.48% | 2.21% | 1.94% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 23 | $ 27 | $ 35 | $ 54 | $ 95 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .501 | .424 | .439 | .426 | .631 | .658 |
Net realized and unrealized gain (loss) | 2.837 | .490 | 5.239 | 4.185 | (5.740) | (3.448) |
Total from investment operations | 3.338 | .914 | 5.678 | 4.611 | (5.109) | (2.790) |
Distributions from net investment income | (.507) | (.443) | (.408) | (.422) | (.591) | (.620) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.718) | (.584) | (.608) | (.611) | (.981) | (.820) |
Net asset value, end of period | $ 52.32 | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 | $ 46.39 |
Total Return B, C, D | 6.76% | 1.92% | 12.85% | 11.47% | (10.88)% | (5.70)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Net investment income (loss) | 1.96% A | .89% | .91% | .98% | 1.71% | 1.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 46 | $ 43 | $ 20 | $ 27 | $ 41 | $ 94 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2034
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .755 | .903 | .921 | .862 | .988 | 1.090 |
Net realized and unrealized gain (loss) | 2.832 | .505 | 5.227 | 4.183 | (5.729) | (3.425) |
Total from investment operations | 3.587 | 1.408 | 6.148 | 5.045 | (4.741) | (2.335) |
Distributions from net investment income | (.746) | (.907) | (.898) | (.876) | (.989) | (1.065) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.957) | (1.048) | (1.098) | (1.065) | (1.379) | (1.265) |
Net asset value, end of period | $ 52.30 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.40 |
Total Return B, C | 7.29% | 2.97% | 13.97% | 12.59% | (9.98)% | (4.83)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.96% A | 1.89% | 1.92% | 1.98% | 2.71% | 2.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,517 | $ 2,123 | $ 2,066 | $ 1,672 | $ 1,628 | $ 552 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.41 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .756 | .904 | .922 | .860 | 1.002 | 1.114 |
Net realized and unrealized gain (loss) | 2.831 | .504 | 5.226 | 4.185 | (5.753) | (3.439) |
Total from investment operations | 3.587 | 1.408 | 6.148 | 5.045 | (4.751) | (2.325) |
Distributions from net investment income | (.746) | (.907) | (.898) | (.876) | (.989) | (1.065) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.957) | (1.048) | (1.098) | (1.065) | (1.379) | (1.265) |
Net asset value, end of period | $ 52.30 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.41 |
Total Return B, C | 7.29% | 2.97% | 13.97% | 12.59% | (10.00)% | (4.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.96% A | 1.89% | 1.92% | 1.98% | 2.71% | 2.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 131 | $ 122 | $ 107 | $ 94 | $ 108 | $ 95 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2036 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.5 | 6.6 |
Fidelity Blue Chip Growth Fund | 6.1 | 6.1 |
Fidelity Disciplined Equity Fund | 7.0 | 7.3 |
Fidelity Equity-Income Fund | 9.4 | 9.7 |
Fidelity Series 100 Index Fund | 6.1 | 6.3 |
Fidelity Series Broad Market Opportunities Fund | 10.8 | 10.9 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.8 | 47.8 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 9.6 | 10.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.8 | 2.8 |
Fidelity Strategic Income Fund | 2.8 | 2.7 |
| 5.6 | 5.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.5 | 5.3 |
Fidelity Strategic Real Return Fund | 5.5 | 5.5 |
Fidelity Total Bond Fund | 16.4 | 16.0 |
| 27.4 | 26.8 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 5.3 | 4.9 |
Fidelity Short-Term Bond Fund | 5.3 | 5.0 |
| 10.6 | 9.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 46.8% |
|
| International Equity Funds | 9.6% |
|
| High Yield Fixed-Income Funds | 5.6% |
|
| Investment Grade Fixed-Income Funds | 27.4% |
|
| Short-Term Funds | 10.6% |
|
Six months ago | |||
| Domestic Equity Funds | 47.8% |
|
| International Equity Funds | 10.0% |
|
| High Yield Fixed-Income Funds | 5.5% |
|
| Investment Grade Fixed-Income Funds | 26.8% |
|
| Short-Term Funds | 9.9% |
|
Expected | |||
| Domestic Equity Funds | 46.6% |
|
| International Equity Funds | 9.4% |
|
| High Yield Fixed-Income Funds | 5.4% |
|
| Investment Grade Fixed-Income Funds | 27.6% |
|
| Short-Term Funds | 11.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2036 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 56.4% | |||
Shares | Value | ||
Domestic Equity Funds - 46.8% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,996 | $ 244,202 | |
Fidelity Blue Chip Growth Fund | 4,425 | 226,706 | |
Fidelity Disciplined Equity Fund | 10,168 | 261,326 | |
Fidelity Equity-Income Fund | 7,008 | 348,435 | |
Fidelity Series 100 Index Fund | 23,016 | 226,706 | |
Fidelity Series Broad Market Opportunities Fund | 34,238 | 400,923 | |
Fidelity Series Small Cap Opportunities Fund | 2,981 | 34,992 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,743,290 | ||
International Equity Funds - 9.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 10,412 | 355,880 | |
TOTAL EQUITY FUNDS (Cost $1,978,615) |
| ||
Fixed-Income Funds - 33.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.6% | |||
Fidelity Capital & Income Fund | 10,564 | 101,627 | |
Fidelity Strategic Income Fund | 8,962 | 101,627 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 203,254 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 27.4% | |||
Fidelity Government Income Fund | 19,535 | $ 205,115 | |
Fidelity Strategic Real Return Fund | 20,994 | 205,115 | |
Fidelity Total Bond Fund | 56,557 | 615,343 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,025,573 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,239,747) |
| ||
Short-Term Funds - 10.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 197,297 | 197,297 | |
Fidelity Short-Term Bond Fund | 22,942 | 197,297 | |
TOTAL SHORT-TERM FUNDS (Cost $393,547) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,611,909) | 3,722,591 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (274) | ||
NET ASSETS - 100% | $ 3,722,317 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2036 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,611,909) - See accompanying schedule | $ 3,722,591 | |
Receivable for investments sold | 21,551 | |
Total assets | 3,744,142 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 21,552 | |
Distribution and service plan fees payable | 273 | |
Total liabilities | 21,825 | |
|
|
|
Net Assets | $ 3,722,317 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,779,265 | |
Undistributed net investment income | 683 | |
Accumulated undistributed net realized gain (loss) on investments | (168,313) | |
Net unrealized appreciation (depreciation) on investments | 110,682 | |
Net Assets | $ 3,722,317 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.94 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.94) | $ 55.11 | |
Class T: | $ 51.91 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.91) | $ 53.79 | |
Class C: | $ 51.85 | |
|
|
|
Income Replacement 2036: | $ 51.93 | |
|
|
|
Institutional Class: | $ 51.93 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 51,742 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,626 | |
Independent trustees' compensation | 6 | |
Total expenses before reductions | 1,632 | |
Expense reductions | (6) | 1,626 |
Net investment income (loss) | 50,116 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 1,128 | |
Capital gain distributions from underlying funds | 39,721 |
|
Total net realized gain (loss) |
| 40,849 |
Change in net unrealized appreciation (depreciation) on underlying funds | 148,044 | |
Net gain (loss) | 188,893 | |
Net increase (decrease) in net assets resulting from operations | $ 239,009 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 50,116 | $ 51,249 |
Net realized gain (loss) | 40,849 | 34,074 |
Change in net unrealized appreciation (depreciation) | 148,044 | (39,842) |
Net increase (decrease) in net assets resulting from operations | 239,009 | 45,481 |
Distributions to shareholders from net investment income | (49,885) | (51,325) |
Distributions to shareholders from net realized gain | (12,770) | (7,797) |
Total distributions | (62,655) | (59,122) |
Share transactions - net increase (decrease) | 702,817 | (139,228) |
Total increase (decrease) in net assets | 879,171 | (152,869) |
|
|
|
Net Assets | ||
Beginning of period | 2,843,146 | 2,996,015 |
End of period (including undistributed net investment income of $683 and undistributed net investment income of $452, respectively) | $ 3,722,317 | $ 2,843,146 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .769 | .760 | .811 | .748 | .937 | .951 |
Net realized and unrealized gain (loss) | 2.844 | .441 G | 5.306 | 4.178 | (6.127) | (3.464) |
Total from investment operations | 3.613 | 1.201 | 6.117 | 4.926 | (5.190) | (2.513) |
Distributions from net investment income | (.692) | (.784) | (.771) | (.752) | (.940) | (.897) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.873) | (.921) | (.927) | (.896) | (1.510) | (1.087) |
Net asset value, end of period | $ 51.94 | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C, D | 7.41% | 2.56% | 14.05% | 12.46% | (10.72)% | (5.17)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 3.03% A | 1.60% | 1.70% | 1.74% | 2.52% | 2.08% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 24 | $ 27 | $ 31 | $ 40 | $ 54 | $ 95 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .705 | .641 | .693 | .639 | .844 | .823 |
Net realized and unrealized gain (loss) | 2.845 | .448 G | 5.287 | 4.183 | (6.122) | (3.449) |
Total from investment operations | 3.550 | 1.089 | 5.980 | 4.822 | (5.278) | (2.626) |
Distributions from net investment income | (.629) | (.672) | (.654) | (.648) | (.852) | (.794) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.810) | (.809) | (.810) | (.792) | (1.422) | (.984) |
Net asset value, end of period | $ 51.91 | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 | $ 46.39 |
Total Return B, C, D | 7.28% | 2.32% | 13.73% | 12.19% | (10.93)% | (5.39)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.78% A | 1.35% | 1.45% | 1.49% | 2.28% | 1.83% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 288 | $ 278 | $ 288 | $ 265 | $ 265 | $ 384 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .578 | .404 | .454 | .424 | .655 | .609 |
Net realized and unrealized gain (loss) | 2.843 | .445 G | 5.293 | 4.179 | (6.114) | (3.465) |
Total from investment operations | 3.421 | .849 | 5.747 | 4.603 | (5.459) | (2.856) |
Distributions from net investment income | (.530) | (.452) | (.451) | (.429) | (.651) | (.564) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.711) | (.589) | (.607) | (.573) | (1.221) | (.754) |
Net asset value, end of period | $ 51.85 | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 | $ 46.39 |
Total Return B, C, D | 7.01% | 1.80% | 13.17% | 11.61% | (11.38)% | (5.82)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.28% A | .85% | .95% | .99% | 1.77% | 1.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 179 | $ 174 | $ 216 | $ 119 | $ 116 | $ 94 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2036
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .831 | .880 | .939 | .854 | 1.034 | 1.043 |
Net realized and unrealized gain (loss) | 2.843 | .445 G | 5.291 | 4.183 | (6.126) | (3.445) |
Total from investment operations | 3.674 | 1.325 | 6.230 | 5.037 | (5.092) | (2.402) |
Distributions from net investment income | (.753) | (.908) | (.894) | (.863) | (1.038) | (1.008) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.934) | (1.045) | (1.050) | (1.007) | (1.608) | (1.198) |
Net asset value, end of period | $ 51.93 | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C | 7.54% | 2.82% | 14.32% | 12.75% | (10.48)% | (4.96)% |
Ratios to Average Net Assets E |
|
|
|
|
|
|
Expenses before reductions F, I | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.28% A | 1.85% | 1.95% | 1.99% | 2.78% | 2.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,232 | $ 2,363 | $ 2,433 | $ 598 | $ 632 | $ 986 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .855 | .873 | .929 | .851 | 1.031 | 1.064 |
Net realized and unrealized gain (loss) | 2.829 | .452 G | 5.291 | 4.186 | (6.123) | (3.466) |
Total from investment operations | 3.684 | 1.325 | 6.220 | 5.037 | (5.092) | (2.402) |
Distributions from net investment income | (.753) | (.908) | (.894) | (.863) | (1.038) | (1.008) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.934) | (1.045) | (1.050) | (1.007) | (1.608) | (1.198) |
Net asset value, end of period | $ 51.93 | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C | 7.56% | 2.82% | 14.30% | 12.75% | (10.48)% | (4.96)% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.28% A | 1.85% | 1.95% | 1.99% | 2.78% | 2.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1 | $ 1 | $ 28 | $ 103 | $ 67 | $ 119 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2038 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.7 | 6.7 |
Fidelity Blue Chip Growth Fund | 6.2 | 6.2 |
Fidelity Disciplined Equity Fund | 7.2 | 7.4 |
Fidelity Equity-Income Fund | 9.5 | 9.9 |
Fidelity Series 100 Index Fund | 6.2 | 6.4 |
Fidelity Series Broad Market Opportunities Fund | 11.0 | 11.1 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 47.7 | 48.7 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 10.5 | 10.9 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.9 | 2.9 |
Fidelity Strategic Income Fund | 2.9 | 2.9 |
| 5.8 | 5.8 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.3 | 5.1 |
Fidelity Strategic Real Return Fund | 5.3 | 5.4 |
Fidelity Total Bond Fund | 16.0 | 15.7 |
| 26.6 | 26.2 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 4.7 | 4.2 |
Fidelity Short-Term Bond Fund | 4.7 | 4.2 |
| 9.4 | 8.4 |
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 48.7% |
|
| International Equity Funds | 10.9% |
|
| High Yield Fixed-Income Funds | 5.8% |
|
| Investment Grade Fixed-Income Funds | 26.2% |
|
| Short-Term Funds | 8.4% |
|
Expected | |||
| Domestic Equity Funds | 47.5% |
|
| International Equity Funds | 10.2% |
|
| High Yield Fixed-Income Funds | 5.7% |
|
| Investment Grade Fixed-Income Funds | 26.8% |
|
| Short-Term Funds | 9.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2038 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 58.2% | |||
Shares | Value | ||
Domestic Equity Funds - 47.7% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 8,626 | $ 162,086 | |
Fidelity Blue Chip Growth Fund | 2,941 | 150,681 | |
Fidelity Disciplined Equity Fund | 6,760 | 173,733 | |
Fidelity Equity-Income Fund | 4,661 | 231,724 | |
Fidelity Series 100 Index Fund | 15,298 | 150,681 | |
Fidelity Series Broad Market Opportunities Fund | 22,752 | 266,422 | |
Fidelity Series Small Cap Opportunities Fund | 1,963 | 23,051 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,158,378 | ||
International Equity Funds - 10.5% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 7,418 | 253,562 | |
TOTAL EQUITY FUNDS (Cost $1,134,774) |
| ||
Fixed-Income Funds - 32.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.8% | |||
Fidelity Capital & Income Fund | 7,214 | 69,396 | |
Fidelity Strategic Income Fund | 6,120 | 69,396 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 138,792 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.6% | |||
Fidelity Government Income Fund | 12,340 | $ 129,571 | |
Fidelity Strategic Real Return Fund | 13,262 | 129,571 | |
Fidelity Total Bond Fund | 35,705 | 388,474 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 647,616 | ||
TOTAL FIXED-INCOME FUNDS (Cost $747,175) |
| ||
Short-Term Funds - 9.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 114,042 | 114,042 | |
Fidelity Short-Term Bond Fund | 13,261 | 114,042 | |
TOTAL SHORT-TERM FUNDS (Cost $225,416) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,107,365) | 2,426,432 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (125) | ||
NET ASSETS - 100% | $ 2,426,307 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2038 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,107,365) - See accompanying schedule | $ 2,426,432 | |
Receivable for investments sold | 14,496 | |
Total assets | 2,440,928 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 14,495 | |
Distribution and service plan fees payable | 126 | |
Total liabilities | 14,621 | |
|
|
|
Net Assets | $ 2,426,307 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,156,361 | |
Undistributed net investment income | 423 | |
Accumulated undistributed net realized gain (loss) on investments | (49,544) | |
Net unrealized appreciation (depreciation) on investments | 319,067 | |
Net Assets | $ 2,426,307 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.20 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.20) | $ 54.32 | |
Class T: | $ 51.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.19) | $ 53.05 | |
Class C: | $ 51.13 | |
|
|
|
Income Replacement 2038: | $ 51.20 | |
|
|
|
Institutional Class: | $ 51.20 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 35,516 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 742 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 746 | |
Expense reductions | (4) | 742 |
Net investment income (loss) | 34,774 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 149 | |
Capital gain distributions from underlying funds | 27,959 |
|
Total net realized gain (loss) |
| 28,108 |
Change in net unrealized appreciation (depreciation) on underlying funds | 105,225 | |
Net gain (loss) | 133,333 | |
Net increase (decrease) in net assets resulting from operations | $ 168,107 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 34,774 | $ 27,942 |
Net realized gain (loss) | 28,108 | 30,204 |
Change in net unrealized appreciation (depreciation) | 105,225 | (32,596) |
Net increase (decrease) in net assets resulting from operations | 168,107 | 25,550 |
Distributions to shareholders from net investment income | (34,676) | (27,910) |
Distributions to shareholders from net realized gain | (9,447) | (3,924) |
Total distributions | (44,123) | (31,834) |
Share transactions - net increase (decrease) | 210,592 | 490,682 |
Total increase (decrease) in net assets | 334,576 | 484,398 |
|
|
|
Net Assets | ||
Beginning of period | 2,091,731 | 1,607,333 |
End of period (including undistributed net investment income of $423 and undistributed net investment income of $325, respectively) | $ 2,426,307 | $ 2,091,731 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .710 | .739 | .858 | .744 | .856 | .442 |
Net realized and unrealized gain (loss) | 2.969 | .384 | 5.317 | 4.191 | (6.093) | (4.811) |
Total from investment operations | 3.679 | 1.123 | 6.175 | 4.935 | (5.237) | (4.369) |
Distributions from net investment income | (.689) | (.769) | (.802) | (.710) | (.873) | (.371) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.889) | (.903) | (.995) | (.875) | (1.073) | (.371) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 | $ 45.26 |
Total Return B, C, D | 7.67% | 2.44% | 14.43% | 12.72% | (11.24)% | (8.76)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.84% A | 1.59% | 1.82% | 1.76% | 2.44% | 1.59% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 80 | $ 76 | $ 34 | $ 32 | $ 115 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .647 | .624 | .736 | .636 | .791 | .373 |
Net realized and unrealized gain (loss) | 2.972 | .367 | 5.326 | 4.191 | (6.111) | (4.809) |
Total from investment operations | 3.619 | .991 | 6.062 | 4.827 | (5.320) | (4.436) |
Distributions from net investment income | (.629) | (.647) | (.689) | (.612) | (.780) | (.304) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.829) | (.781) | (.882) | (.777) | (.980) | (.304) |
Net asset value, end of period | $ 51.19 | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 | $ 45.26 |
Total Return B, C, D | 7.54% | 2.15% | 14.15% | 12.43% | (11.45)% | (8.89)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.59% A | 1.34% | 1.57% | 1.50% | 2.20% | 1.34% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 111 | $ 105 | $ 127 | $ 37 | $ 57 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 | $ 45.24 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .520 | .390 | .505 | .424 | .611 | .233 |
Net realized and unrealized gain (loss) | 2.967 | .379 | 5.319 | 4.192 | (6.107) | (4.812) |
Total from investment operations | 3.487 | .769 | 5.824 | 4.616 | (5.496) | (4.579) |
Distributions from net investment income | (.527) | (.435) | (.441) | (.421) | (.594) | (.181) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.727) | (.569) | (.634) | (.586) | (.794) | (.181) |
Net asset value, end of period | $ 51.13 | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 | $ 45.24 |
Total Return B, C, D | 7.26% | 1.67% | 13.59% | 11.87% | (11.89)% | (9.17)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.09% A | .84% | 1.08% | 1.01% | 1.70% | .84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 79 | $ 74 | $ 72 | $ 91 | $ 57 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2038
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.27 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .772 | .857 | .969 | .849 | .965 | .502 |
Net realized and unrealized gain (loss) | 2.970 | .377 | 5.332 | 4.187 | (6.112) | (4.795) |
Total from investment operations | 3.742 | 1.234 | 6.301 | 5.036 | (5.147) | (4.293) |
Distributions from net investment income | (.752) | (.880) | (.918) | (.831) | (.963) | (.437) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.952) | (1.014) | (1.111) | (.996) | (1.163) | (.437) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.27 |
Total Return B, C | 7.80% | 2.68% | 14.74% | 12.99% | (11.02)% | (8.61)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.09% A | 1.84% | 2.07% | 2.01% | 2.69% | 1.84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,129 | $ 1,811 | $ 1,345 | $ 2,051 | $ 1,165 | $ 1,122 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .771 | .857 | .973 | .848 | .974 | .511 |
Net realized and unrealized gain (loss) | 2.971 | .377 | 5.328 | 4.188 | (6.111) | (4.814) |
Total from investment operations | 3.742 | 1.234 | 6.301 | 5.036 | (5.137) | (4.303) |
Distributions from net investment income | (.752) | (.880) | (.918) | (.831) | (.963) | (.437) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.952) | (1.014) | (1.111) | (.996) | (1.163) | (.437) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.26 |
Total Return B, C | 7.80% | 2.68% | 14.74% | 12.99% | (11.00)% | (8.63)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.09% A | 1.84% | 2.07% | 2.01% | 2.69% | 1.84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 27 | $ 25 | $ 29 | $ 38 | $ 58 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.8 | 6.9 |
Fidelity Blue Chip Growth Fund | 6.4 | 6.4 |
Fidelity Disciplined Equity Fund | 7.3 | 7.6 |
Fidelity Equity-Income Fund | 9.8 | 10.1 |
Fidelity Series 100 Index Fund | 6.4 | 6.5 |
Fidelity Series Broad Market Opportunities Fund | 11.2 | 11.4 |
Fidelity Series Small Cap Opportunities Fund | 1.0 | 1.0 |
| 48.9 | 49.9 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 11.5 | 12.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 3.1 | 3.1 |
Fidelity Strategic Income Fund | 3.1 | 3.1 |
| 6.2 | 6.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.3 | 5.1 |
Fidelity Strategic Real Return Fund | 5.3 | 5.3 |
Fidelity Total Bond Fund | 15.6 | 15.4 |
| 26.2 | 25.8 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 3.6 | 3.0 |
Fidelity Short-Term Bond Fund | 3.6 | 3.1 |
| 7.2 | 6.1 |
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) | |||
Current | |||
| Domestic Equity Funds | 48.9% |
|
| International Equity Funds | 11.5% |
|
| High Yield Fixed-Income Funds | 6.2% |
|
| Investment Grade Fixed-Income Funds | 26.2% |
|
| Short-Term Funds | 7.2% |
|
Six months ago | |||
| Domestic Equity Funds | 49.9% |
|
| International Equity Funds | 12.0% |
|
| High Yield Fixed-Income Funds | 6.2% |
|
| Investment Grade Fixed-Income Funds | 25.8% |
|
| Short-Term Funds | 6.1% |
|
Expected | |||
| Domestic Equity Funds | 48.6% |
|
| International Equity Funds | 11.2% |
|
| High Yield Fixed-Income Funds | 6.0% |
|
| Investment Grade Fixed-Income Funds | 26.4% |
|
| Short-Term Funds | 7.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2040 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 60.4% | |||
Shares | Value | ||
Domestic Equity Funds - 48.9% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 10,886 | $ 204,557 | |
Fidelity Blue Chip Growth Fund | 3,707 | 189,925 | |
Fidelity Disciplined Equity Fund | 8,529 | 219,190 | |
Fidelity Equity-Income Fund | 5,874 | 292,054 | |
Fidelity Series 100 Index Fund | 19,282 | 189,925 | |
Fidelity Series Broad Market Opportunities Fund | 28,689 | 335,952 | |
Fidelity Series Small Cap Opportunities Fund | 2,493 | 29,265 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,460,868 | ||
International Equity Funds - 11.5% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 9,995 | 341,625 | |
TOTAL EQUITY FUNDS (Cost $1,629,464) |
| ||
Fixed-Income Funds - 32.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 6.2% | |||
Fidelity Capital & Income Fund | 9,406 | 90,483 | |
Fidelity Strategic Income Fund | 7,979 | 90,483 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 180,966 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.2% | |||
Fidelity Government Income Fund | 14,988 | $ 157,375 | |
Fidelity Strategic Real Return Fund | 16,108 | 157,375 | |
Fidelity Total Bond Fund | 43,311 | 471,228 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 785,978 | ||
TOTAL FIXED-INCOME FUNDS (Cost $964,595) |
| ||
Short-Term Funds - 7.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 108,400 | 108,400 | |
Fidelity Short-Term Bond Fund | 12,605 | 108,400 | |
TOTAL SHORT-TERM FUNDS (Cost $216,029) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,810,088) | 2,986,237 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (99) | ||
NET ASSETS - 100% | $ 2,986,138 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,810,088) - See accompanying schedule | $ 2,986,237 | |
Receivable for investments sold | 16,616 | |
Total assets | 3,002,853 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 16,613 | |
Distribution and service plan fees payable | 102 | |
Total liabilities | 16,715 | |
|
|
|
Net Assets | $ 2,986,138 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,855,900 | |
Undistributed net investment income | 571 | |
Accumulated undistributed net realized gain (loss) on investments | (46,482) | |
Net unrealized appreciation (depreciation) on investments | 176,149 | |
Net Assets | $ 2,986,138 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.51 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.51) | $ 54.65 | |
Class T: | $ 51.59 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.59) | $ 53.46 | |
Class C: | $ 51.41 | |
|
|
|
Income Replacement 2040: | $ 51.48 | |
|
|
|
Institutional Class: | $ 51.48 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 43,823 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 670 | |
Independent trustees' compensation | 5 | |
Total expenses before reductions | 675 | |
Expense reductions | (5) | 670 |
Net investment income (loss) | 43,153 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 18,350 | |
Capital gain distributions from underlying funds | 33,411 |
|
Total net realized gain (loss) |
| 51,761 |
Change in net unrealized appreciation (depreciation) on underlying funds | 120,616 | |
Net gain (loss) | 172,377 | |
Net increase (decrease) in net assets resulting from operations | $ 215,530 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 43,153 | $ 40,116 |
Net realized gain (loss) | 51,761 | 117,214 |
Change in net unrealized appreciation (depreciation) | 120,616 | (111,202) |
Net increase (decrease) in net assets resulting from operations | 215,530 | 46,128 |
Distributions to shareholders from net investment income | (43,037) | (40,029) |
Distributions to shareholders from net realized gain | (14,161) | (5,624) |
Total distributions | (57,198) | (45,653) |
Share transactions - net increase (decrease) | 198,545 | 478,557 |
Total increase (decrease) in net assets | 356,877 | 479,032 |
|
|
|
Net Assets | ||
Beginning of period | 2,629,261 | 2,150,229 |
End of period (including undistributed net investment income of $571 and undistributed net investment income of $455, respectively) | $ 2,986,138 | $ 2,629,261 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .738 | .762 | .789 | .722 | .933 | .442 |
Net realized and unrealized gain (loss) | 3.113 | .331 | 5.608 | 4.298 | (6.238) | (4.814) |
Total from investment operations | 3.851 | 1.093 | 6.397 | 5.020 | (5.305) | (4.372) |
Distributions from net investment income | (.719) | (.771) | (.805) | (.710) | (.885) | (.398) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.971) | (.903) | (.997) | (.810) | (1.095) | (.398) |
Net asset value, end of period | $ 51.51 | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C, D | 8.00% | 2.36% | 14.94% | 12.97% | (11.41)% | (8.77)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.94% A | 1.64% | 1.67% | 1.70% | 2.60% | 1.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8 | $ 7 | $ 96 | $ 34 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .672 | .649 | .672 | .616 | .836 | .371 |
Net realized and unrealized gain (loss) | 3.121 | .312 | 5.604 | 4.301 | (6.227) | (4.809) |
Total from investment operations | 3.793 | .961 | 6.276 | 4.917 | (5.391) | (4.438) |
Distributions from net investment income | (.561) | (.649) | (.704) | (.607) | (.789) | (.332) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.813) | (.781) | (.896) | (.707) | (.999) | (.332) |
Net asset value, end of period | $ 51.59 | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 | $ 45.23 |
Total Return B, C, D | 7.87% | 2.08% | 14.64% | 12.69% | (11.62)% | (8.90)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.67% A | 1.39% | 1.42% | 1.45% | 2.35% | 1.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 13 | $ 51 | $ 131 | $ 111 | $ 102 | $ 132 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 | $ 45.22 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .541 | .415 | .435 | .402 | .664 | .234 |
Net realized and unrealized gain (loss) | 3.115 | .310 | 5.609 | 4.305 | (6.229) | (4.816) |
Total from investment operations | 3.656 | .725 | 6.044 | 4.707 | (5.565) | (4.582) |
Distributions from net investment income | (.544) | (.463) | (.482) | (.397) | (.605) | (.198) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.796) | (.595) | (.674) | (.497) | (.815) | (.198) |
Net asset value, end of period | $ 51.41 | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 | $ 45.22 |
Total Return B, C, D | 7.59% | 1.57% | 14.08% | 12.13% | (12.06)% | (9.18)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.16% A | .89% | .93% | .95% | 1.85% | .84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 115 | $ 107 | $ 79 | $ 99 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2040
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .793 | .885 | .910 | .833 | 1.015 | .504 |
Net realized and unrealized gain (loss) | 3.119 | .317 | 5.602 | 4.297 | (6.231) | (4.810) |
Total from investment operations | 3.912 | 1.202 | 6.512 | 5.130 | (5.216) | (4.306) |
Distributions from net investment income | (.770) | (.900) | (.940) | (.820) | (.974) | (.464) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (1.022) | (1.032) | (1.132) | (.920) | (1.184) | (.464) |
Net asset value, end of period | $ 51.48 | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C | 8.13% | 2.60% | 15.21% | 13.26% | (11.19)% | (8.64)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.16% A | 1.89% | 1.93% | 1.96% | 2.85% | 1.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,848 | $ 2,462 | $ 1,797 | $ 1,262 | $ 384 | $ 598 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .799 | .865 | .906 | .828 | 1.022 | .512 |
Net realized and unrealized gain (loss) | 3.113 | .327 | 5.616 | 4.302 | (6.238) | (4.818) |
Total from investment operations | 3.912 | 1.192 | 6.522 | 5.130 | (5.216) | (4.306) |
Distributions from net investment income | (.770) | (.900) | (.940) | (.820) | (.974) | (.464) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (1.022) | (1.032) | (1.132) | (.920) | (1.184) | (.464) |
Net asset value, end of period | $ 51.48 | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C | 8.13% | 2.58% | 15.24% | 13.26% | (11.19)% | (8.64)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.16% A | 1.89% | 1.93% | 1.96% | 2.85% | 1.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2 | $ 2 | $ 48 | $ 62 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 7.0 | 7.1 |
Fidelity Blue Chip Growth Fund | 6.5 | 6.6 |
Fidelity Disciplined Equity Fund | 7.6 | 7.8 |
Fidelity Equity-Income Fund | 10.1 | 10.3 |
Fidelity Series 100 Index Fund | 6.5 | 6.7 |
Fidelity Series Broad Market Opportunities Fund | 11.6 | 11.7 |
Fidelity Series Small Cap Opportunities Fund | 1.0 | 1.0 |
| 50.3 | 51.2 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 12.6 | 12.8 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 3.2 | 3.3 |
Fidelity Strategic Income Fund | 3.2 | 3.2 |
| 6.4 | 6.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.2 | 5.1 |
Fidelity Strategic Real Return Fund | 5.2 | 5.2 |
Fidelity Total Bond Fund | 15.7 | 15.3 |
| 26.1 | 25.6 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 2.3 | 1.9 |
Fidelity Short-Term Bond Fund | 2.3 | 2.0 |
| 4.6 | 3.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 50.3% |
|
| International Equity Funds | 12.6% |
|
| High Yield Fixed-Income Funds | 6.4% |
|
| Investment Grade Fixed-Income Funds | 26.1% |
|
| Short-Term Funds | 4.6% |
|
Six months ago | |||
| Domestic Equity Funds | 51.2% |
|
| International Equity Funds | 12.8% |
|
| High Yield Fixed-Income Funds | 6.5% |
|
| Investment Grade Fixed-Income Funds | 25.6% |
|
| Short-Term Funds | 3.9% |
|
Expected | |||
| Domestic Equity Funds | 50.0% |
|
| International Equity Funds | 12.3% |
|
| High Yield Fixed-Income Funds | 6.3% |
|
| Investment Grade Fixed-Income Funds | 26.1% |
|
| Short-Term Funds | 5.3% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2042 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 62.9% | |||
Shares | Value | ||
Domestic Equity Funds - 50.3% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 41,972 | $ 788,654 | |
Fidelity Blue Chip Growth Fund | 14,281 | 731,603 | |
Fidelity Disciplined Equity Fund | 32,863 | 844,587 | |
Fidelity Equity-Income Fund | 22,657 | 1,126,489 | |
Fidelity Series 100 Index Fund | 74,274 | 731,603 | |
Fidelity Series Broad Market Opportunities Fund | 110,624 | 1,295,407 | |
Fidelity Series Small Cap Opportunities Fund | 9,624 | 112,985 | |
TOTAL DOMESTIC EQUITY FUNDS | 5,631,328 | ||
International Equity Funds - 12.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 41,074 | 1,403,917 | |
TOTAL EQUITY FUNDS (Cost $6,038,310) |
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Fixed-Income Funds - 32.5% | |||
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High Yield Fixed-Income Funds - 6.4% | |||
Fidelity Capital & Income Fund | 37,444 | 360,208 | |
Fidelity Strategic Income Fund | 31,764 | 360,208 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 720,416 | ||
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Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.1% | |||
Fidelity Government Income Fund | 55,507 | $ 582,821 | |
Fidelity Strategic Real Return Fund | 59,654 | 582,821 | |
Fidelity Total Bond Fund | 160,910 | 1,750,701 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 2,916,343 | ||
TOTAL FIXED-INCOME FUNDS (Cost $3,537,357) |
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Short-Term Funds - 4.6% | |||
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Fidelity Institutional Money Market Portfolio Institutional Class | 257,292 | 257,292 | |
Fidelity Short-Term Bond Fund | 29,918 | 257,291 | |
TOTAL SHORT-TERM FUNDS (Cost $511,627) |
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TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,087,294) | 11,186,587 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (97) | ||
NET ASSETS - 100% | $ 11,186,490 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
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Assets | ||
Investment in securities, at value (cost $10,087,294) - See accompanying schedule | $ 11,186,587 | |
Receivable for investments sold | 67,126 | |
Receivable for fund shares sold | 31 | |
Total assets | 11,253,744 | |
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Liabilities | ||
Payable for investments purchased | $ 67,153 | |
Distribution and service plan fees payable | 86 | |
Total liabilities | 67,239 | |
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Net Assets | $ 11,186,505 | |
Net Assets consist of: |
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Paid in capital | $ 10,138,124 | |
Undistributed net investment income | 2,182 | |
Accumulated undistributed net realized gain (loss) on investments | (53,094) | |
Net unrealized appreciation (depreciation) on investments | 1,099,293 | |
Net Assets | $ 11,186,505 | |
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Calculation of Maximum Offering Price Class A: | $ 51.76 | |
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Maximum offering price per share (100/94.25 of $51.76) | $ 54.92 | |
Class T: | $ 51.77 | |
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Maximum offering price per share (100/96.50 of $51.77) | $ 53.65 | |
Class C: | $ 51.71 | |
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Income Replacement 2042: | $ 51.76 | |
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Institutional Class: | $ 51.75 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
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Investment Income |
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Income distributions from underlying funds |
| $ 152,512 |
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Expenses | ||
Distribution and service plan fees | $ 496 | |
Independent trustees' compensation | 15 | |
Total expenses before reductions | 511 | |
Expense reductions | (15) | 496 |
Net investment income (loss) | 152,016 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 13,466 | |
Capital gain distributions from underlying funds | 109,241 |
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Total net realized gain (loss) |
| 122,707 |
Change in net unrealized appreciation (depreciation) on underlying funds | 508,433 | |
Net gain (loss) | 631,140 | |
Net increase (decrease) in net assets resulting from operations | $ 783,156 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
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Operations |
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Net investment income (loss) | $ 152,016 | $ 117,162 |
Net realized gain (loss) | 122,707 | (18,384) |
Change in net unrealized appreciation (depreciation) | 508,433 | 71,737 |
Net increase (decrease) in net assets resulting from operations | 783,156 | 170,515 |
Distributions to shareholders from net investment income | (151,081) | (117,023) |
Distributions to shareholders from net realized gain | (34,182) | (15,935) |
Total distributions | (185,263) | (132,958) |
Share transactions - net increase (decrease) | 3,247,227 | 1,671,463 |
Total increase (decrease) in net assets | 3,845,120 | 1,709,020 |
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Net Assets | ||
Beginning of period | 7,341,385 | 5,632,365 |
End of period (including undistributed net investment income of $2,182 and undistributed net investment income of $1,247, respectively) | $ 11,186,505 | $ 7,341,385 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) E | .807 | .782 | .757 | .747 | .819 | .425 |
Net realized and unrealized gain (loss) | 3.215 | .281 | 5.719 | 4.285 | (6.123) | (4.836) |
Total from investment operations | 4.022 | 1.063 | 6.476 | 5.032 | (5.304) | (4.411) |
Distributions from net investment income | (.745) | (.791) | (.801) | (.717) | (.866) | (.389) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.922) | (.923) | (.996) | (.822) | (1.066) | (.389) |
Net asset value, end of period | $ 51.76 | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 | $ 45.20 |
Total Return B, C, D | 8.34% | 2.30% | 15.12% | 13.00% | (11.40)% | (8.85)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 3.21% A | 1.66% | 1.61% | 1.77% | 2.32% | 1.57% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 22 | $ 20 | $ 23 | $ 29 | $ 88 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 | $ 45.19 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) E | .745 | .660 | .637 | .642 | .739 | .365 |
Net realized and unrealized gain (loss) | 3.216 | .287 | 5.727 | 4.281 | (6.128) | (4.852) |
Total from investment operations | 3.961 | .947 | 6.364 | 4.923 | (5.389) | (4.487) |
Distributions from net investment income | (.684) | (.675) | (.679) | (.608) | (.771) | (.323) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.861) | (.807) | (.874) | (.713) | (.971) | (.323) |
Net asset value, end of period | $ 51.77 | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 | $ 45.19 |
Total Return B, C, D | 8.21% | 2.05% | 14.85% | 12.71% | (11.62)% | (9.00)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.96% A | 1.42% | 1.35% | 1.52% | 2.07% | 1.32% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 143 | $ 132 | $ 29 | $ 37 | $ 57 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 | $ 45.19 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) E | .622 | .427 | .402 | .430 | .560 | .226 |
Net realized and unrealized gain (loss) | 3.212 | .290 | 5.719 | 4.275 | (6.123) | (4.846) |
Total from investment operations | 3.834 | .717 | 6.121 | 4.705 | (5.563) | (4.620) |
Distributions from net investment income | (.587) | (.465) | (.456) | (.390) | (.587) | (.190) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.764) | (.597) | (.651) | (.495) | (.787) | (.190) |
Net asset value, end of period | $ 51.71 | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 | $ 45.19 |
Total Return B, C, D | 7.94% | 1.55% | 14.26% | 12.12% | (12.05)% | (9.25)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.47% A | .91% | .85% | 1.02% | 1.57% | .82% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 28 | $ 37 | $ 56 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2042
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) D | .869 | .897 | .880 | .857 | .900 | .496 |
Net realized and unrealized gain (loss) | 3.219 | .284 | 5.719 | 4.279 | (6.114) | (4.840) |
Total from investment operations | 4.088 | 1.181 | 6.599 | 5.136 | (5.214) | (4.344) |
Distributions from net investment income | (.801) | (.909) | (.924) | (.831) | (.956) | (.456) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.978) | (1.041) | (1.119) | (.936) | (1.156) | (.456) |
Net asset value, end of period | $ 51.76 | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 |
Total Return B, C | 8.48% | 2.56% | 15.42% | 13.27% | (11.18)% | (8.72)% |
Ratios to Average Net Assets E, H |
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Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.46% A | 1.91% | 1.86% | 2.02% | 2.57% | 1.82% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 10,967 | $ 7,139 | $ 5,524 | $ 3,395 | $ 1,395 | $ 969 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) D | .871 | .896 | .874 | .855 | .918 | .504 |
Net realized and unrealized gain (loss) | 3.217 | .275 | 5.725 | 4.281 | (6.132) | (4.848) |
Total from investment operations | 4.088 | 1.171 | 6.599 | 5.136 | (5.214) | (4.344) |
Distributions from net investment income | (.801) | (.909) | (.924) | (.831) | (.956) | (.456) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.978) | (1.041) | (1.119) | (.936) | (1.156) | (.456) |
Net asset value, end of period | $ 51.75 | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 |
Total Return B, C | 8.49% | 2.54% | 15.42% | 13.27% | (11.18)% | (8.72)% |
Ratios to Average Net Assets E, H |
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Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.46% A | 1.91% | 1.86% | 2.02% | 2.57% | 1.82% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 28 | $ 26 | $ 29 | $ 38 | $ 57 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (Unaudited)
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.
Each Fund offers Class A, Class T, Class C, Income Replacement and Institutional Class shares, except for Fidelity Income Replacement 2016 Fund. Fidelity Income Replacement 2016 Fund offers Income Replacement shares. Each class has equal rights as to assets and voting privileges, except for matters affecting a single class. Effective after the close of business on January 31, 2012, Fidelity Income Replacement 2016 Fund's Class A, Class T, Class C and Institutional Class shares were closed to new accounts and additional purchases, except for reinvestments. Investment income, realized and unrealized capital gains and losses, the common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated 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.
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 following summarizes the significant accounting policies of the Funds:
Security 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.
Expenses. 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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 income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Semiannual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
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. Temporary book-tax differences 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 | Gross unrealized | Net unrealized |
Fidelity Income Replacement 2016 Fund | $ 7,284,354 | $ 500,009 | $ (1,488) | $ 498,521 |
Fidelity Income Replacement 2018 Fund | 5,335,703 | 166,613 | (46,460) | 120,153 |
Fidelity Income Replacement 2020 Fund | 5,258,433 | 450,677 | (12,987) | 437,690 |
Fidelity Income Replacement 2022 Fund | 4,621,853 | 160,574 | (71,279) | 89,295 |
Fidelity Income Replacement 2024 Fund | 2,425,725 | 115,724 | (20,930) | 94,794 |
Fidelity Income Replacement 2026 Fund | 1,817,621 | 71,610 | (13,987) | 57,623 |
Fidelity Income Replacement 2028 Fund | 5,929,937 | 422,004 | (41,048) | 380,956 |
Fidelity Income Replacement 2030 Fund | 3,746,920 | 402,376 | (8,140) | 394,236 |
Fidelity Income Replacement 2032 Fund | 3,923,645 | 266,401 | (17,131) | 249,270 |
Fidelity Income Replacement 2034 Fund | 2,379,868 | 361,991 | (3,906) | 358,085 |
Fidelity Income Replacement 2036 Fund | 3,620,444 | 147,942 | (45,795) | 102,147 |
Fidelity Income Replacement 2038 Fund | 2,121,986 | 309,737 | (5,291) | 304,446 |
Fidelity Income Replacement 2040 Fund | 2,825,258 | 171,292 | (10,313) | 160,979 |
Fidelity Income Replacement 2042 Fund | 10,141,519 | 1,079,573 | (34,505) | 1,045,068 |
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. At July 31,2012, capital loss carryforwards were as follows:
| Fiscal year of expiration |
| ||
| 2017 | 2018 | 2019 | Total with expiration |
Fidelity Income Replacement 2016 Fund | $ (11,321) | $ (234,074) | $ (128,097) | $ (373,492) |
Fidelity Income Replacement 2018 Fund | (78,455) | (410,862) | (37,212) | (526,529) |
Fidelity Income Replacement 2020 Fund | (2,795) | (118,446) | (22,198) | (143,439) |
Fidelity Income Replacement 2022 Fund | (33,352) | (481,397) | (74,118) | (588,867) |
Fidelity Income Replacement 2024 Fund | - | (4,778) | (58,344) | (63,122) |
Fidelity Income Replacement 2026 Fund | - | (194,108) | - | (194,108) |
Fidelity Income Replacement 2028 Fund | - | (313,738) | (210,425) | (524,163) |
Fidelity Income Replacement 2030 Fund | (33,830) | (85,896) | - | (119,726) |
Fidelity Income Replacement 2032 Fund | - | (182,121) | - | (182,121) |
Fidelity Income Replacement 2034 Fund | - | (48,212) | (43,660) | (91,872) |
Fidelity Income Replacement 2036 Fund | (33) | (183,763) | (2,877) | (186,673) |
Fidelity Income Replacement 2038 Fund | - | (3,448) | (48,487) | (51,935) |
Fidelity Income Replacement 2040 Fund | - | (54,176) | (16,690) | (70,866) |
Fidelity Income Replacement 2042 Fund | (2,106) | (15,348) | (33,939) | (51,393) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
| No expiration |
|
| |
| Short-term | Long-term | Total no expiration | Total capital loss |
Fidelity Income Replacement 2016 Fund | $ (28,964) | $ (5,046) | $ (34,010) | $ (407,502) |
Fidelity Income Replacement 2018 Fund | - | - | - | (526,529) |
Fidelity Income Replacement 2020 Fund | - | - | - | (143,439) |
Fidelity Income Replacement 2022 Fund | - | - | - | (588,867) |
Fidelity Income Replacement 2024 Fund | - | - | - | (63,122) |
Fidelity Income Replacement 2026 Fund | - | - | - | (194,108) |
Fidelity Income Replacement 2028 Fund | - | - | - | (524,163) |
Fidelity Income Replacement 2030 Fund | (24,894) | - | (24,894) | (144,620) |
Fidelity Income Replacement 2032 Fund | - | - | - | (182,121) |
Fidelity Income Replacement 2034 Fund | - | - | - | (91,872) |
Fidelity Income Replacement 2036 Fund | - | - | - | (186,673) |
Fidelity Income Replacement 2038 Fund | - | - | - | (51,935) |
Fidelity Income Replacement 2040 Fund | - | - | - | (70,866) |
Fidelity Income Replacement 2042 Fund | (18,020) | - | (18,020) | (69,413) |
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
Fidelity Income Replacement 2016 Fund | 1,612,200 | 2,014,210 |
Fidelity Income Replacement 2018 Fund | 1,063,580 | 1,372,234 |
Fidelity Income Replacement 2020 Fund | 1,736,732 | 1,005,431 |
Fidelity Income Replacement 2022 Fund | 867,472 | 586,656 |
Fidelity Income Replacement 2024 Fund | 1,130,313 | 775,431 |
Fidelity Income Replacement 2026 Fund | 445,947 | 417,540 |
Fidelity Income Replacement 2028 Fund | 914,622 | 549,543 |
Fidelity Income Replacement 2030 Fund | 699,873 | 704,175 |
Fidelity Income Replacement 2032 Fund | 1,280,616 | 566,865 |
Fidelity Income Replacement 2034 Fund | 514,189 | 211,642 |
Fidelity Income Replacement 2036 Fund | 966,871 | 236,875 |
Fidelity Income Replacement 2038 Fund | 521,617 | 292,410 |
Fidelity Income Replacement 2040 Fund | 532,550 | 314,650 |
Fidelity Income Replacement 2042 Fund | 4,396,915 | 1,073,681 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), 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, Strategic Advisers pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid by each Fund is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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 the 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 | Service | Total | Retained |
Class A | -% | .25% | $ 1,065 | $ - |
Class T | .25% | .25% | 436 | - |
Class C | .75% | .25% | 4,218 | 393 |
|
|
| $ 5,719 | $ 393 |
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2018 Fund | Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 918 | $ - |
Class T | .25% | .25% | 316 | 4 |
Class C | .75% | .25% | 2,148 | 1,151 |
|
|
| $ 3,382 | $ 1,155 |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A | -% | .25% | $ 508 | $ 221 |
Class T | .25% | .25% | 472 | - |
Class C | .75% | .25% | 1,582 | 273 |
|
|
| $ 2,562 | $ 494 |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A | -% | .25% | $ 486 | $ - |
Class T | .25% | .25% | 6 | 2 |
Class C | .75% | .25% | 143 | 15 |
|
|
| $ 635 | $ 17 |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A | -% | .25% | $ 272 | $ 48 |
Class T | .25% | .25% | 442 | 50 |
Class C | .75% | .25% | 615 | 17 |
|
|
| $ 1,329 | $ 115 |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A | -% | .25% | $ 381 | $ - |
Class T | .25% | .25% | 288 | 18 |
Class C | .75% | .25% | 48 | 49 |
|
|
| $ 717 | $ 67 |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A | -% | .25% | $ 173 | $ - |
Class T | .25% | .25% | 324 | - |
Class C | .75% | .25% | 147 | - |
|
|
| $ 644 | $ - |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A | -% | .25% | $ 110 | $ 2 |
Class T | .25% | .25% | 34 | 16 |
Class C | .75% | .25% | 1,544 | 161 |
|
|
| $ 1,688 | $ 179 |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A | -% | .25% | $ 281 | $ 7 |
Class T | .25% | .25% | 61 | 61 |
Class C | .75% | .25% | 268 | 236 |
|
|
| $ 610 | $ 304 |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A | -% | .25% | $ 24 | $ 24 |
Class T | .25% | .25% | 60 | 60 |
Class C | .75% | .25% | 275 | 275 |
|
|
| $ 359 | $ 359 |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A | -% | .25% | $ 34 | $ 26 |
Class T | .25% | .25% | 710 | 14 |
Class C | .75% | .25% | 882 | - |
|
|
| $ 1,626 | $ 40 |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A | -% | .25% | $ 89 | $ 2 |
Class T | .25% | .25% | 271 | 12 |
Class C | .75% | .25% | 382 | 7 |
|
|
| $ 742 | $ 21 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2040 Fund | Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 8 | $ 7 |
Class T | .25% | .25% | 108 | 14 |
Class C | .75% | .25% | 554 | 141 |
|
|
| $ 670 | $ 162 |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A | -% | .25% | $ 27 | $ 7 |
Class T | .25% | .25% | 344 | 64 |
Class C | .75% | .25% | 125 | 125 |
|
|
| $ 496 | $ 196 |
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 the 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:
| Retained by FDC |
Fidelity Income Replacement 2016 Fund |
|
Class C* | $ 19 |
Fidelity Income Replacement 2018 Fund |
|
Class C* | $ 155 |
Fidelity Income Replacement 2026 Fund |
|
Class T | $ 7 |
Fidelity Income Replacement 2038 Fund |
|
Class A | $ 232 |
Fidelity Income Replacement 2042 Fund |
|
Class A | $ 2 |
* 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 fees applicable to each class. Some expenses, for example interest expense, are excluded from this reimbursement.
The following Funds were in reimbursement during the period:
| Reimbursement* |
Fidelity Income Replacement 2016 Fund | $ 15 |
Fidelity Income Replacement 2018 Fund | 11 |
Fidelity Income Replacement 2020 Fund | 9 |
Fidelity Income Replacement 2022 Fund | 8 |
Fidelity Income Replacement 2024 Fund | 4 |
Fidelity Income Replacement 2026 Fund | 4 |
Fidelity Income Replacement 2028 Fund | 11 |
Fidelity Income Replacement 2030 Fund | 7 |
Fidelity Income Replacement 2032 Fund | 7 |
Fidelity Income Replacement 2034 Fund | 5 |
Fidelity Income Replacement 2036 Fund | 6 |
Fidelity Income Replacement 2038 Fund | 4 |
Fidelity Income Replacement 2040 Fund | 5 |
Fidelity Income Replacement 2042 Fund | 15 |
* Represents total amount reimbursed to the Fund. Each class has received pro-rata allocation of reimbursement
Semiannual Report
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
Fidelity Income Replacement 2016 Fund |
|
|
From net investment income |
|
|
Class A | $ 5,523 | $ 17,921 |
Class T | 874 | 3,481 |
Class C | 2,680 | 7,453 |
Income Replacement 2016 | 46,429 | 115,628 |
Institutional Class | 308 | 1,088 |
Total | $ 55,814 | $ 145,571 |
From net realized gain |
|
|
Class A | $ 3,311 | $ 4,976 |
Class T | 617 | 1,014 |
Class C | 3,251 | 4,218 |
Income Replacement 2016 | 22,904 | 28,030 |
Institutional Class | 143 | 312 |
Total | $ 30,226 | $ 38,550 |
Fidelity Income Replacement 2018 Fund |
|
|
From net investment income |
|
|
Class A | $ 6,667 | $ 11,734 |
Class T | 985 | 1,790 |
Class C | 2,330 | 2,008 |
Income Replacement 2018 | 41,937 | 68,941 |
Institutional Class | 4,531 | 3,499 |
Total | $ 56,450 | $ 87,972 |
From net realized gain |
|
|
Class A | $ 4,058 | $ 3,011 |
Class T | 695 | 560 |
Class C | 2,364 | 852 |
Income Replacement 2018 | 22,722 | 15,393 |
Institutional Class | 2,370 | 512 |
Total | $ 32,209 | $ 20,328 |
Fidelity Income Replacement 2020 Fund |
|
|
From net investment income |
|
|
Class A | $ 4,173 | $ 6,597 |
Class T | 1,701 | 2,545 |
Class C | 2,111 | 2,699 |
Income Replacement 2020 | 48,862 | 61,446 |
Institutional Class | 159 | 563 |
Total | $ 57,006 | $ 73,850 |
From net realized gain |
|
|
Class A | $ 1,965 | $ 1,517 |
Class T | 907 | 694 |
Class C | 1,535 | 1,162 |
Income Replacement 2020 | 20,732 | 11,189 |
Institutional Class | 67 | 119 |
Total | $ 25,206 | $ 14,681 |
Fidelity Income Replacement 2022 Fund |
|
|
From net investment income |
|
|
Class A | $ 4,208 | $ 2,823 |
Class T | 9 | 136 |
Class C | 212 | 226 |
Income Replacement 2022 | 51,037 | 60,936 |
Institutional Class | 42 | 60 |
Total | $ 55,508 | $ 64,181 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2022 Fund |
|
|
From net realized gain |
|
|
Class A | $ 1,895 | $ 242 |
Class T | 3 | 32 |
Class C | 142 | 95 |
Income Replacement 2022 | 19,965 | 10,582 |
Institutional Class | 17 | 11 |
Total | $ 22,022 | $ 10,962 |
Fidelity Income Replacement 2024 Fund |
|
|
From net investment income |
|
|
Class A | $ 2,165 | $ 3,343 |
Class T | 2,037 | 2,287 |
Class C | 1,027 | 1,494 |
Income Replacement 2024 | 22,515 | 25,214 |
Institutional Class | 355 | 445 |
Total | $ 28,099 | $ 32,783 |
From net realized gain |
|
|
Class A | $ 647 | $ 710 |
Class T | 748 | 601 |
Class C | 465 | 575 |
Income Replacement 2024 | 7,431 | 4,764 |
Institutional Class | 108 | 80 |
Total | $ 9,399 | $ 6,730 |
Fidelity Income Replacement 2026 Fund |
|
|
From net investment income |
|
|
Class A | $ 3,781 | $ 1,894 |
Class T | 908 | 1,958 |
Class C | 85 | 1,363 |
Income Replacement 2026 | 21,271 | 29,280 |
Institutional Class | 345 | 440 |
Total | $ 26,390 | $ 34,935 |
From net realized gain |
|
|
Class A | $ 1,333 | $ 335 |
Class T | 329 | 383 |
Class C | 41 | 570 |
Income Replacement 2026 | 7,049 | 5,283 |
Institutional Class | 111 | 75 |
Total | $ 8,863 | $ 6,646 |
Fidelity Income Replacement 2028 Fund |
|
|
From net investment income |
|
|
Class A | $ 1,737 | $ 1,930 |
Class T | 1,484 | 1,741 |
Class C | 228 | 376 |
Income Replacement 2028 | 79,676 | 96,589 |
Institutional Class | 348 | 441 |
Total | $ 83,473 | $ 101,077 |
From net realized gain |
|
|
Class A | $ 602 | $ 325 |
Class T | 568 | 397 |
Class C | 107 | 135 |
Income Replacement 2028 | 25,172 | 16,208 |
Institutional Class | 110 | 73 |
Total | $ 26,559 | $ 17,138 |
Semiannual Report
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2030 Fund |
|
|
From net investment income |
|
|
Class A | $ 1,148 | $ 1,185 |
Class T | 159 | 164 |
Class C | 2,955 | 2,987 |
Income Replacement 2030 | 50,704 | 72,596 |
Institutional Class | 375 | 441 |
Total | $ 55,341 | $ 77,373 |
From net realized gain |
|
|
Class A | $ 386 | $ 209 |
Class T | 60 | 38 |
Class C | 1,336 | 991 |
Income Replacement 2030 | 15,711 | 12,458 |
Institutional Class | 111 | 70 |
Total | $ 17,604 | $ 13,766 |
Fidelity Income Replacement 2032 Fund |
|
|
From net investment income |
|
|
Class A | $ 2,892 | $ 3,369 |
Class T | 282 | 301 |
Class C | 516 | 213 |
Income Replacement 2032 | 54,410 | 35,223 |
Institutional Class | 242 | 297 |
Total | $ 58,342 | $ 39,403 |
From net realized gain |
|
|
Class A | $ 1,834 | $ 7,528 |
Class T | 199 | 816 |
Class C | 440 | 1,719 |
Income Replacement 2032 | 30,021 | 95,178 |
Institutional Class | 140 | 574 |
Total | $ 32,634 | $ 105,815 |
Fidelity Income Replacement 2034 Fund |
|
|
From net investment income |
|
|
Class A | $ 246 | $ 276 |
Class T | 291 | 304 |
Class C | 467 | 184 |
Income Replacement 2034 | 32,978 | 37,641 |
Institutional Class | 1,847 | 2,077 |
Total | $ 35,829 | $ 40,482 |
From net realized gain |
|
|
Class A | $ 76 | $ 50 |
Class T | 99 | 65 |
Class C | 184 | 49 |
Income Replacement 2034 | 9,314 | 5,761 |
Institutional Class | 521 | 307 |
Total | $ 10,194 | $ 6,232 |
Fidelity Income Replacement 2036 Fund |
|
|
From net investment income |
|
|
Class A | $ 325 | $ 435 |
Class T | 3,490 | 3,886 |
Class C | 1,828 | 1,851 |
Income Replacement 2036 | 44,233 | 44,807 |
Institutional Class | 9 | 346 |
Total | $ 49,885 | $ 51,325 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2036 Fund |
|
|
From net realized gain |
|
|
Class A | $ 81 | $ 75 |
Class T | 1,001 | 793 |
Class C | 622 | 576 |
Income Replacement 2036 | 11,064 | 6,275 |
Institutional Class | 2 | 78 |
Total | $ 12,770 | $ 7,797 |
Fidelity Income Replacement 2038 Fund |
|
|
From net investment income |
|
|
Class A | $ 804 | $ 670 |
Class T | 1,357 | 1,443 |
Class C | 806 | 658 |
Income Replacement 2038 | 31,311 | 24,679 |
Institutional Class | 398 | 460 |
Total | $ 34,676 | $ 27,910 |
From net realized gain |
|
|
Class A | $ 210 | $ 96 |
Class T | 429 | 297 |
Class C | 305 | 202 |
Income Replacement 2038 | 8,397 | 3,260 |
Institutional Class | 106 | 69 |
Total | $ 9,447 | $ 3,924 |
Fidelity Income Replacement 2040 Fund |
|
|
From net investment income |
|
|
Class A | $ 106 | $ 967 |
Class T | 213 | 1,654 |
Class C | 1,204 | 819 |
Income Replacement 2040 | 41,482 | 36,057 |
Institutional Class | 32 | 532 |
Total | $ 43,037 | $ 40,029 |
From net realized gain |
|
|
Class A | $ 37 | $ 224 |
Class T | 107 | 359 |
Class C | 555 | 216 |
Income Replacement 2040 | 13,452 | 4,701 |
Institutional Class | 10 | 124 |
Total | $ 14,161 | $ 5,624 |
Fidelity Income Replacement 2042 Fund |
|
|
From net investment income |
|
|
Class A | $ 314 | $ 362 |
Class T | 1,867 | 503 |
Class C | 296 | 232 |
Income Replacement 2042 | 148,180 | 115,451 |
Institutional Class | 424 | 475 |
Total | $ 151,081 | $ 117,023 |
From net realized gain |
|
|
Class A | $ 74 | $ 53 |
Class T | 482 | 67 |
Class C | 89 | 65 |
Income Replacement 2042 | 33,444 | 15,682 |
Institutional Class | 93 | 68 |
Total | $ 34,182 | $ 15,935 |
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2016 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 142 | 365 | 7,195 | 17,945 |
Shares redeemed | (1,784) | (18,902) | (90,702) | (929,690) |
Net increase (decrease) | (1,642) | (18,537) | $ (83,507) | $ (911,745) |
Class T |
|
|
|
|
Shares sold | - | 265 | $ - | $ 12,983 |
Reinvestment of distributions | 24 | 63 | 1,214 | 3,101 |
Shares redeemed | (823) | (7,104) | (41,841) | (347,550) |
Net increase (decrease) | (799) | (6,776) | $ (40,627) | $ (331,466) |
Class C |
|
|
|
|
Shares sold | - | 6,125 | $ - | $ 300,000 |
Reinvestment of distributions | 84 | 157 | 4,263 | 7,690 |
Shares redeemed | (2,109) | (3,855) | (107,326) | (191,514) |
Net increase (decrease) | (2,025) | 2,427 | $ (103,063) | $ 116,176 |
Income Replacement 2016 |
|
|
|
|
Shares sold | 18,313 | 28,998 | $ 931,724 | $ 1,428,856 |
Reinvestment of distributions | 711 | 1,178 | 36,119 | 57,868 |
Shares redeemed | (23,078) | (46,750) | (1,174,554) | (2,309,726) |
Net increase (decrease) | (4,054) | (16,574) | $ (206,711) | $ (823,002) |
Institutional Class |
|
|
|
|
Shares sold | - | 752 | $ - | $ 36,796 |
Reinvestment of distributions | 9 | 15 | 451 | 731 |
Shares redeemed | (285) | (675) | (14,428) | (33,700) |
Net increase (decrease) | (276) | 92 | $ (13,977) | $ 3,827 |
Fidelity Income Replacement 2018 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 1,088 | $ - | $ 54,624 |
Reinvestment of distributions | 136 | 161 | 6,960 | 7,873 |
Shares redeemed | (1,223) | (1,911) | (62,567) | (94,143) |
Net increase (decrease) | (1,087) | (662) | $ (55,607) | $ (31,646) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 16 | 18 | 829 | 863 |
Shares redeemed | (169) | (458) | (8,666) | (22,651) |
Net increase (decrease) | (153) | (440) | $ (7,837) | $ (21,788) |
Class C |
|
|
|
|
Shares sold | - | 4,696 | $ - | $ 235,500 |
Reinvestment of distributions | 86 | 47 | 4,364 | 2,324 |
Shares redeemed | (660) | (586) | (33,734) | (28,893) |
Net increase (decrease) | (574) | 4,157 | $ (29,370) | $ 208,931 |
Income Replacement 2018 |
|
|
|
|
Shares sold | 9,114 | 19,759 | $ 466,524 | $ 973,771 |
Reinvestment of distributions | 562 | 478 | 28,766 | 23,334 |
Shares redeemed | (14,109) | (19,401) | (721,500) | (957,919) |
Net increase (decrease) | (4,433) | 836 | $ (226,210) | $ 39,186 |
Institutional Class |
|
|
|
|
Shares sold | 2,812 | 6,698 | $ 143,858 | $ 338,000 |
Reinvestment of distributions | 103 | 12 | 5,247 | 589 |
Shares redeemed | (3,543) | (3,839) | (181,936) | (185,000) |
Net increase (decrease) | (628) | 2,871 | $ (32,831) | $ 153,589 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 179 | $ 17 | $ 9,014 |
Reinvestment of distributions | 84 | 105 | 4,308 | 5,145 |
Shares redeemed | (560) | (946) | (28,978) | (46,428) |
Net increase (decrease) | (476) | (662) | $ (24,653) | $ (32,269) |
Class T |
|
|
|
|
Shares sold | 1 | - | $ 40 | $ - |
Reinvestment of distributions | 43 | 54 | 2,231 | 2,633 |
Shares redeemed | (179) | (240) | (9,280) | (11,738) |
Net increase (decrease) | (135) | (186) | $ (7,009) | $ (9,105) |
Class C |
|
|
|
|
Shares sold | 568 | 1,771 | $ 29,000 | $ 87,281 |
Reinvestment of distributions | 51 | 57 | 2,614 | 2,797 |
Shares redeemed | (552) | (355) | (28,500) | (17,952) |
Net increase (decrease) | 67 | 1,473 | $ 3,114 | $ 72,126 |
Income Replacement 2020 |
|
|
|
|
Shares sold | 26,206 | 29,581 | $ 1,354,259 | $ 1,469,844 |
Reinvestment of distributions | 728 | 529 | 37,464 | 25,967 |
Shares redeemed | (12,999) | (13,868) | (672,215) | (675,878) |
Net increase (decrease) | 13,935 | 16,242 | $ 719,508 | $ 819,933 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 5 | 14 | 226 | 682 |
Shares redeemed | - | (399) | - | (20,000) |
Net increase (decrease) | 5 | (385) | $ 226 | $ (19,318) |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 6,423 | $ - | $ 316,060 |
Reinvestment of distributions | 61 | 23 | 3,145 | 1,138 |
Shares redeemed | (239) | (243) | (12,313) | (12,069) |
Net increase (decrease) | (178) | 6,203 | $ (9,168) | $ 305,129 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | - | 3 | 12 | 168 |
Shares redeemed | (91) | (357) | (4,747) | (17,200) |
Net increase (decrease) | (91) | (354) | $ (4,735) | $ (17,032) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 1 | 39 | 35 |
Shares redeemed | - | (92) | - | (4,361) |
Net increase (decrease) | 1 | (91) | $ 39 | $ (4,326) |
Income Replacement 2022 |
|
|
|
|
Shares sold | 10,053 | 29,354 | $ 519,150 | $ 1,440,819 |
Reinvestment of distributions | 530 | 314 | 27,261 | 15,180 |
Shares redeemed | (5,583) | (18,125) | (287,089) | (881,196) |
Net increase (decrease) | 5,000 | 11,543 | $ 259,322 | $ 574,803 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 1 | 59 | 71 |
Shares redeemed | - | (11) | - | (514) |
Net increase (decrease) | 1 | (10) | $ 59 | $ (443) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 4,822 | 622 | $ 249,930 | $ 30,000 |
Reinvestment of distributions | 41 | 61 | 2,105 | 2,969 |
Shares redeemed | (1,305) | (226) | (67,177) | (10,864) |
Net increase (decrease) | 3,558 | 457 | $ 184,858 | $ 22,105 |
Class T |
|
|
|
|
Shares sold | - | 2,920 | $ - | $ 135,760 |
Reinvestment of distributions | 28 | 22 | 1,435 | 1,077 |
Shares redeemed | (95) | (289) | (4,901) | (14,000) |
Net increase (decrease) | (67) | 2,653 | $ (3,466) | $ 122,837 |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 6 | 4 | 313 | 209 |
Shares redeemed | (1,281) | (75) | (66,125) | (3,683) |
Net increase (decrease) | (1,275) | (71) | $ (65,812) | $ (3,474) |
Income Replacement 2024 |
|
|
|
|
Shares sold | 10,317 | 16,063 | $ 537,857 | $ 781,886 |
Reinvestment of distributions | 288 | 214 | 14,828 | 10,356 |
Shares redeemed | (6,442) | (15,497) | (333,583) | (749,124) |
Net increase (decrease) | 4,163 | 780 | $ 219,102 | $ 43,118 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 462 | 525 |
Shares redeemed | - | (79) | - | (3,719) |
Net increase (decrease) | 9 | (68) | $ 462 | $ (3,194) |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 3,297 | 671 | $ 164,296 | $ 33,486 |
Reinvestment of distributions | 86 | 21 | 4,372 | 1,014 |
Shares redeemed | (311) | (98) | (15,970) | (4,755) |
Net increase (decrease) | 3,072 | 594 | $ 152,698 | $ 29,745 |
Class T |
|
|
|
|
Shares sold | 57 | 3,515 | $ 2,971 | $ 173,430 |
Reinvestment of distributions | 19 | 39 | 969 | 1,904 |
Shares redeemed | (4,547) | (236) | (228,111) | (11,308) |
Net increase (decrease) | (4,471) | 3,318 | $ (224,171) | $ 164,026 |
Class C |
|
|
|
|
Shares sold | - | - | $ 4 | $ - |
Reinvestment of distributions | 3 | 41 | 126 | 1,933 |
Shares redeemed | - | (3,579) | - | (176,288) |
Net increase (decrease) | 3 | (3,538) | $ 130 | $ (174,355) |
Income Replacement 2026 |
|
|
|
|
Shares sold | 7,827 | 15,104 | $ 398,432 | $ 721,544 |
Reinvestment of distributions | 351 | 331 | 17,944 | 15,918 |
Shares redeemed | (6,422) | (22,948) | (332,935) | (1,095,887) |
Net increase (decrease) | 1,756 | (7,513) | $ 83,441 | $ (358,425) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 456 | 515 |
Shares redeemed | - | (79) | - | (3,694) |
Net increase (decrease) | 9 | (68) | $ 456 | $ (3,179) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 1,288 | $ - | $ 61,784 |
Reinvestment of distributions | 45 | 45 | 2,339 | 2,202 |
Shares redeemed | - | (1,360) | - | (64,118) |
Net increase (decrease) | 45 | (27) | $ 2,339 | $ (132) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 15 | 8 | 794 | 397 |
Shares redeemed | (37) | (83) | (1,935) | (4,076) |
Net increase (decrease) | (22) | (75) | $ (1,141) | $ (3,679) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 4 | 3 | 196 | 163 |
Shares redeemed | (183) | (326) | (9,500) | (16,000) |
Net increase (decrease) | (179) | (323) | $ (9,304) | $ (15,837) |
Income Replacement 2028 |
|
|
|
|
Shares sold | 10,846 | 18,525 | $ 562,138 | $ 916,759 |
Reinvestment of distributions | 954 | 574 | 49,221 | 27,535 |
Shares redeemed | (5,521) | (27,768) | (286,737) | (1,327,202) |
Net increase (decrease) | 6,279 | (8,669) | $ 324,622 | $ (382,908) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 458 | 514 |
Shares redeemed | - | (79) | - | (3,680) |
Net increase (decrease) | 9 | (68) | $ 458 | $ (3,166) |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 3 | 508 | $ 159 | $ 25,016 |
Reinvestment of distributions | 17 | 6 | 870 | 292 |
Shares redeemed | (20) | (249) | (1,035) | (12,382) |
Net increase (decrease) | - | 265 | $ (6) | $ 12,926 |
Class T |
|
|
|
|
Shares sold | 5 | 130 | $ 259 | $ 5,786 |
Reinvestment of distributions | 4 | 4 | 219 | 202 |
Shares redeemed | - | (172) | - | (7,763) |
Net increase (decrease) | 9 | (38) | $ 478 | $ (1,775) |
Class C |
|
|
|
|
Shares sold | - | 1,702 | $ - | $ 80,000 |
Reinvestment of distributions | 49 | 44 | 2,479 | 2,115 |
Shares redeemed | (447) | (960) | (22,924) | (46,183) |
Net increase (decrease) | (398) | 786 | $ (20,445) | $ 35,932 |
Income Replacement 2030 |
|
|
|
|
Shares sold | 8,790 | 18,798 | $ 455,387 | $ 902,632 |
Reinvestment of distributions | 803 | 726 | 41,141 | 34,661 |
Shares redeemed | (10,595) | (28,344) | (541,570) | (1,372,064) |
Net increase (decrease) | (1,002) | (8,820) | $ (45,042) | $ (434,771) |
Institutional Class |
|
|
|
|
Shares sold | 538 | - | $ 27,920 | $ - |
Reinvestment of distributions | 9 | 11 | 486 | 511 |
Shares redeemed | - | (79) | - | (3,667) |
Net increase (decrease) | 547 | (68) | $ 28,406 | $ (3,156) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 94 | 220 | 4,569 | 10,424 |
Shares redeemed | (161) | (52) | (8,063) | (2,367) |
Net increase (decrease) | (67) | 168 | $ (3,494) | $ 8,057 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 24 | 481 | 1,117 |
Shares redeemed | - | (78) | - | (3,575) |
Net increase (decrease) | 9 | (54) | $ 481 | $ (2,458) |
Class C |
|
|
|
|
Shares sold | - | 660 | $ - | $ 32,801 |
Reinvestment of distributions | 20 | 41 | 957 | 1,932 |
Shares redeemed | - | (65) | - | (2,961) |
Net increase (decrease) | 20 | 636 | $ 957 | $ 31,772 |
Income Replacement 2032 |
|
|
|
|
Shares sold | 20,621 | 42,168 | $ 1,012,599 | $ 2,026,945 |
Reinvestment of distributions | 1,308 | 2,499 | 63,971 | 118,902 |
Shares redeemed | (7,595) | (8,682) | (378,507) | (414,301) |
Net increase (decrease) | 14,334 | 35,985 | $ 698,063 | $ 1,731,546 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 18 | 382 | 871 |
Shares redeemed | - | (54) | - | (2,502) |
Net increase (decrease) | 8 | (36) | $ 382 | $ (1,631) |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 6 | 7 | 322 | 326 |
Shares redeemed | - | (59) | - | (2,697) |
Net increase (decrease) | 6 | (52) | $ 322 | $ (2,371) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 8 | 390 | 369 |
Shares redeemed | - | (77) | - | (3,548) |
Net increase (decrease) | 8 | (69) | $ 390 | $ (3,179) |
Class C |
|
|
|
|
Shares sold | 582 | 517 | $ 30,000 | $ 25,724 |
Reinvestment of distributions | 13 | 5 | 651 | 233 |
Shares redeemed | (582) | (58) | (29,859) | (2,686) |
Net increase (decrease) | 13 | 464 | $ 792 | $ 23,271 |
Income Replacement 2034 |
|
|
|
|
Shares sold | 6,069 | 3,140 | $ 314,745 | $ 153,765 |
Reinvestment of distributions | 489 | 241 | 24,853 | 11,289 |
Shares redeemed | (1,168) | (2,549) | (59,892) | (121,949) |
Net increase (decrease) | 5,390 | 832 | $ 279,706 | $ 43,105 |
Institutional Class |
|
|
|
|
Shares sold | - | 258 | $ - | $ 12,168 |
Reinvestment of distributions | 47 | 50 | 2,368 | 2,360 |
Shares redeemed | (12) | (14) | (591) | (664) |
Net increase (decrease) | 35 | 294 | $ 1,777 | $ 13,864 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 11 | 406 | 510 |
Shares redeemed | (112) | (92) | (5,700) | (4,164) |
Net increase (decrease) | (104) | (81) | $ (5,294) | $ (3,654) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 54 | 31 | 2,706 | 1,410 |
Shares redeemed | (165) | (264) | (8,395) | (12,509) |
Net increase (decrease) | (111) | (233) | $ (5,689) | $ (11,099) |
Class C |
|
|
|
|
Shares sold | - | 30 | $ - | $ 1,500 |
Reinvestment of distributions | 49 | 52 | 2,450 | 2,427 |
Shares redeemed | (140) | (959) | (7,074) | (46,079) |
Net increase (decrease) | (91) | (877) | $ (4,624) | $ (42,152) |
Income Replacement 2036 |
|
|
|
|
Shares sold | 14,595 | 20,071 | $ 739,494 | $ 968,864 |
Reinvestment of distributions | 566 | 223 | 28,539 | 10,328 |
Shares redeemed | (974) | (22,004) | (49,621) | (1,034,063) |
Net increase (decrease) | 14,187 | (1,710) | $ 718,412 | $ (54,871) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | - | 9 | 12 | 424 |
Shares redeemed | - | (563) | - | (27,876) |
Net increase (decrease) | - | (554) | $ 12 | $ (27,452) |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 577 | 851 | $ 29,138 | $ 39,713 |
Reinvestment of distributions | 20 | 16 | 1,014 | 766 |
Shares redeemed | (610) | - | (30,000) | - |
Net increase (decrease) | (13) | 867 | $ 152 | $ 40,479 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 22 | 13 | 1,136 | 612 |
Shares redeemed | (39) | (465) | (1,970) | (20,928) |
Net increase (decrease) | (17) | (452) | $ (834) | $ (20,316) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 22 | 19 | 1,111 | 859 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 22 | 19 | $ 1,111 | $ 859 |
Income Replacement 2038 |
|
|
|
|
Shares sold | 6,786 | 20,341 | $ 339,548 | $ 976,884 |
Reinvestment of distributions | 586 | 325 | 29,113 | 15,074 |
Shares redeemed | (3,195) | (11,169) | (159,002) | (518,978) |
Net increase (decrease) | 4,177 | 9,497 | $ 209,659 | $ 472,980 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 11 | 504 | 529 |
Shares redeemed | - | (86) | - | (3,849) |
Net increase (decrease) | 10 | (75) | $ 504 | $ (3,320) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2040 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 4 | 7 | $ 190 | $ 317 |
Reinvestment of distributions | 3 | 26 | 143 | 1,191 |
Shares redeemed | - | (1,864) | - | (90,268) |
Net increase (decrease) | 7 | (1,831) | $ 333 | $ (88,760) |
Class T |
|
|
|
|
Shares sold | 45 | 63 | $ 2,240 | $ 2,938 |
Reinvestment of distributions | 6 | 44 | 320 | 2,013 |
Shares redeemed | (844) | (1,755) | (42,976) | (82,476) |
Net increase (decrease) | (793) | (1,648) | $ (40,416) | $ (77,525) |
Class C |
|
|
|
|
Shares sold | - | 543 | $ - | $ 26,345 |
Reinvestment of distributions | 36 | 22 | 1,759 | 1,035 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 36 | 565 | $ 1,759 | $ 27,380 |
Income Replacement 2040 |
|
|
|
|
Shares sold | 7,591 | 26,082 | $ 383,659 | $ 1,264,360 |
Reinvestment of distributions | 810 | 331 | 40,386 | 15,315 |
Shares redeemed | (3,754) | (12,843) | (187,218) | (618,513) |
Net increase (decrease) | 4,647 | 13,570 | $ 236,827 | $ 661,162 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 14 | 42 | 656 |
Shares redeemed | - | (961) | - | (44,356) |
Net increase (decrease) | 1 | (947) | $ 42 | $ (43,700) |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 5 | 245 | $ 254 | $ 11,886 |
Reinvestment of distributions | 8 | 9 | 388 | 415 |
Shares redeemed | - | (304) | - | (14,424) |
Net increase (decrease) | 13 | (50) | $ 642 | $ (2,123) |
Class T |
|
|
|
|
Shares sold | - | 2,200 | $ - | $ 105,795 |
Reinvestment of distributions | 47 | 12 | 2,349 | 570 |
Shares redeemed | - | (84) | - | (3,786) |
Net increase (decrease) | 47 | 2,128 | $ 2,349 | $ 102,579 |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 6 | 385 | 297 |
Shares redeemed | - | (83) | - | (3,716) |
Net increase (decrease) | 8 | (77) | $ 385 | $ (3,419) |
Income Replacement 2042 |
|
|
|
|
Shares sold | 82,751 | 52,015 | $ 4,136,675 | $ 2,501,513 |
Reinvestment of distributions | 2,496 | 1,220 | 124,896 | 56,045 |
Shares redeemed | (20,096) | (20,364) | (1,018,237) | (979,817) |
Net increase (decrease) | 65,151 | 32,871 | $ 3,243,334 | $ 1,577,741 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 12 | 517 | 543 |
Shares redeemed | - | (87) | - | (3,858) |
Net increase (decrease) | 10 | (75) | $ 517 | $ (3,315) |
Semiannual Report
Notes to Financial Statements (Unaudited) - 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, investments by the Funds within their principal 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 | Fidelity Income |
Fidelity Series Broad Market Opportunities Fund | 11% | 22% |
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% |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Income Replacement Funds
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract (the Advisory Contract) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contract, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contract. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contract. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contract. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contract. In reaching its determination, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contract is in the best interests of each fund and its shareholders and the fact that no fees are payable under the Advisory Contract is fair and reasonable. The Board's decision to renew the Advisory Contract was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. In reaching its determination, the Board was aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, Strategic Advisers, Inc. (the Investment Adviser), including the backgrounds of the funds' investment personnel, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Adviser's investment staff, including its size, education, experience, and resources, as well as the Investment Adviser's approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Adviser's trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Adviser and its affiliates under the Advisory Contract and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv) continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors; and (ix) reducing certain transfer agent fee rates.
Semiannual Report
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance for each class, as well as each fund's relative investment performance for each class measured over multiple periods against a proprietary custom index. The Board noted that FMR believes that no meaningful peer group exists for the funds, given that competitor funds with the same target date can differ significantly in their asset allocation strategy, degree of active management, and/or glide path construction.
Because each fund had been in existence less than five calendar years, for Income Replacement 2016 Fund, Income Replacement 2018 Fund, Income Replacement 2020 Fund, Income Replacement 2022 Fund, Income Replacement 2028 Fund, Income Replacement 2030 Fund, and Income Replacement 2032 Fund, the following charts considered by the Board show, over the one- and three-year periods ended December 31, 2011, the cumulative total returns of the retail class and Class C of the fund and the cumulative total returns of a proprietary custom index ("benchmark") and, for Income Replacement 2024 Fund, Income Replacement 2026 Fund, Income Replacement 2034 Fund, Income Replacement 2036 Fund, Income Replacement 2038 Fund, Income Replacement 2040 Fund, and Income Replacement 2042 Fund, the following charts considered by the Board show, over the one- and three-year periods ended December 31, 2011, the cumulative total returns of Institutional Class (Class I) and Class C of the fund and the cumulative total returns of its benchmark. The returns of the retail class or Institutional Class (Class I), as applicable, and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance).
For each fund, the proprietary custom index is an index developed by FMR that represents the performance of the fund's asset classes according to their respective weightings.
Income Replacement 2016 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2018 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2020 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2022 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2024 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2026 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2028 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2030 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2032 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2034 Fund
The Board noted that the investment performance of Institutional Class C (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2036 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2038 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2040 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2042 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contract should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board noted that the funds do not pay the Investment Adviser a management fee for investment advisory services. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes, and also considered that each fund bears indirectly the expenses of the underlying funds in which it invests. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 0% means that 100% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Semiannual Report
Income Replacement 2016 Fund
Income Replacement 2018 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2020 Fund
Income Replacement 2022 Fund
Semiannual Report
Income Replacement 2024 Fund
Income Replacement 2026 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2028 Fund
Income Replacement 2030 Fund
Semiannual Report
Income Replacement 2032 Fund
Income Replacement 2034 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2036 Fund
Income Replacement 2038 Fund
Semiannual Report
Income Replacement 2040 Fund
Income Replacement 2042 Fund
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of the total expense ratio of each class of each fund, the Board noted that each fund invests in Institutional Class of the underlying fund (if that underlying fund offers multiple classes of shares) to avoid charging fund-paid 12b-1 fees at both fund levels. The Board considered that the funds do not pay transfer agent fees. Instead, Institutional Class of each underlying fund (or the underlying fund, if that underlying fund does not offer multiple classes of shares) bears its pro rata portion of each fund's transfer agent fee according to the percentage of each fund's assets invested in that underlying fund. The Board further noted that the Investment Adviser pays all other expenses of each fund, with limited exceptions.
The Board noted that the total expense ratio of each of Class A, Class C, Institutional Class, and the retail class of each fund ranked below its competitive median for 2011 and the total expense ratio of Class T of each fund ranked equal to its competitive median for 2011.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of each fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund were not relevant to the renewal of each fund's Advisory Contract because the funds do not pay management fees and FMR pays all other expenses of each fund, with limited exceptions.
Economies of Scale. The Board concluded that because the funds do not pay management fees and the Investment Adviser pays all other expenses of each fund, with limited exceptions, economies of scale cannot be realized by the funds, but may be realized by the other Fidelity funds in which each fund invests, many of which may benefit from breakpoints in the group fee arrangement.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes; (ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contract should be renewed.
Semiannual 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-USAN-0313 1.848194.105
Fidelity Advisor Income Replacement FundsSM -
2016, 2018, 2020, 2022, 2024, 2026, 2028, 2030, 2032, 2034, 2036, 2038, 2040, 2042 -
Institutional Class
Semiannual Report
January 31, 2013
Each Institutional Class is a class of
Fidelity Income Replacement FundsSM
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity Advisor Income Replacement 2016 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2018 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2020 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2022 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2024 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2026 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2028 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2030 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2032 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2034 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2036 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2038 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2040 FundSM | Investment Changes Investments Financial Statements | |
Fidelity Advisor Income Replacement 2042 FundSM | Investment Changes Investments Financial Statements | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
Semiannual 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. © 2013 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.
Semiannual Report
Shareholder Expense Example
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 (August 1, 2012 to January 31, 2013).
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 | Beginning | Ending | Expenses Paid |
Fidelity Income Replacement 2016 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,021.40 | $ 1.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.20 | $ 2.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,017.70 | $ 5.09 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2016 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,022.70 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,022.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2018 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.00 | $ 1.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.50 | $ 2.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,029.90 | $ 5.12 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2018 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,035.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,043.80 | $ 1.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,042.40 | $ 2.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,039.70 | $ 5.14 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2020 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,051.20 | $ 1.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .49%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,049.70 | $ 2.53 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,047.10 | $ 5.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2022 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.80 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,055.50 | $ 2.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.90 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2024 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.10 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.10 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,060.80 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,059.60 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.03%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.90 | $ 5.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
Income Replacement 2026 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,064.20 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.70 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,060.10 | $ 5.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2028 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,066.90 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.50 | $ 2.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,062.80 | $ 5.20 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2030 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,068.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,068.20 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,069.10 | $ 1.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.90 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.20 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2032 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.50 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.70 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A | .26%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,071.60 | $ 1.36 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.89 | $ 1.33 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.60 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2034 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,074.10 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.80 | $ 2.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2036 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.40 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.60 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,076.70 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.40 | $ 2.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,072.60 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2038 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.00 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.00 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2040 Fund |
|
|
|
|
Class A | .22%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,080.00 | $ 1.15 |
HypotheticalA |
| $ 1,000.00 | $ 1,024.10 | $ 1.12 |
Class T | .49%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,078.70 | $ 2.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Class C | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,075.90 | $ 5.23 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.16 | $ 5.09 |
Income Replacement 2040 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.30 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A | .25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,083.40 | $ 1.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,023.95 | $ 1.28 |
Class T | .50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,082.10 | $ 2.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.68 | $ 2.55 |
Class C | .99%** |
|
|
|
Actual |
| $ 1,000.00 | $ 1,079.40 | $ 5.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.21 | $ 5.04 |
| Annualized | Beginning | Ending | Expenses Paid |
Income Replacement 2042 | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.80 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
Institutional Class | .00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.90 | $ .00 |
HypotheticalA |
| $ 1,000.00 | $ 1,025.21 | $ .00 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Funds invest are not included in the Funds' annualized expense ratio.
** Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Semiannual Report
Fidelity Income Replacement 2016 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 2.0 | 2.4 |
Fidelity Blue Chip Growth Fund | 1.9 | 2.2 |
Fidelity Disciplined Equity Fund | 2.1 | 2.6 |
Fidelity Equity-Income Fund | 2.9 | 3.5 |
Fidelity Series 100 Index Fund | 1.9 | 2.2 |
Fidelity Series Broad Market Opportunities Fund | 3.3 | 4.0 |
Fidelity Series Small Cap Opportunities Fund | 0.3 | 0.3 |
| 14.4 | 17.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.8 | 6.8 |
Fidelity Strategic Real Return Fund | 5.8 | 6.8 |
Fidelity Total Bond Fund | 17.3 | 20.4 |
| 28.9 | 34.0 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 34.0 | 28.1 |
Fidelity Short-Term Bond Fund | 22.7 | 20.7 |
| 56.7 | 48.8 |
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) | |||
Current | |||
 | Domestic Equity Funds | 14.4% |
|
 | Investment Grade Fixed-Income Funds | 28.9% |
|
 | Short-Term Funds | 56.7% |
|
Six months ago | |||
| Domestic Equity Funds | 17.2% |
|
| Investment Grade Fixed-Income Funds | 34.0% |
|
| Short-Term Funds | 48.8% |
|
Expected | |||
| Domestic Equity Funds | 12.0% |
|
| Investment Grade Fixed-Income Funds | 23.0% |
|
| Short-Term Funds | 65.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2016 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 14.4% | |||
Shares | Value | ||
Domestic Equity Funds - 14.4% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 8,367 | $ 157,214 | |
Fidelity Blue Chip Growth Fund | 2,841 | 145,540 | |
Fidelity Disciplined Equity Fund | 6,541 | 168,110 | |
Fidelity Equity-Income Fund | 4,508 | 224,147 | |
Fidelity Series 100 Index Fund | 14,776 | 145,540 | |
Fidelity Series Broad Market Opportunities Fund | 21,999 | 257,613 | |
Fidelity Series Small Cap Opportunities Fund | 1,923 | 22,570 | |
TOTAL EQUITY FUNDS (Cost $798,005) |
| ||
Fixed-Income Funds - 28.9% | |||
|
|
|
|
Investment Grade Fixed-Income Funds - 28.9% | |||
Fidelity Government Income Fund | 42,843 | 449,850 | |
Fidelity Strategic Real Return Fund | 46,044 | 449,850 | |
Fidelity Total Bond Fund | 124,111 | 1,350,328 | |
TOTAL FIXED-INCOME FUNDS (Cost $2,055,637) |
| ||
Short-Term Funds - 56.7% | |||
Shares | Value | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 2,647,735 | $ 2,647,735 | |
Fidelity Short-Term Bond Fund | 205,160 | 1,764,378 | |
TOTAL SHORT-TERM FUNDS (Cost $4,361,401) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,215,043) | 7,782,875 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (878) | ||
NET ASSETS - 100% | $ 7,781,997 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2016 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
| �� |
Assets | ||
Investment in securities, at value (cost $7,215,043) - See accompanying schedule | $ 7,782,875 | |
Receivable for investments sold | 118,499 | |
Total assets | 7,901,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 118,468 | |
Distribution and service plan fees payable | 909 | |
Total liabilities | 119,377 | |
|
|
|
Net Assets | $ 7,781,997 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,565,929 | |
Undistributed net investment income | 1,293 | |
Accumulated undistributed net realized gain (loss) on investments | (353,057) | |
Net unrealized appreciation (depreciation) on investments | 567,832 | |
Net Assets | $ 7,781,997 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.00 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.00) | $ 54.11 | |
Class T: | $ 51.01 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.01) | $ 52.86 | |
Class C: | $ 50.97 | |
|
|
|
Income Replacement 2016: | $ 51.00 | |
|
|
|
Institutional Class: | $ 51.01 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 61,384 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 5,719 | |
Independent trustees' compensation | 15 | |
Total expenses before reductions | 5,734 | |
Expense reductions | (15) | 5,719 |
Net investment income (loss) | 55,665 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 83,221 | |
Capital gain distributions from underlying funds | 76,357 |
|
Total net realized gain (loss) |
| 159,578 |
Change in net unrealized appreciation (depreciation) on underlying funds | (42,707) | |
Net gain (loss) | 116,871 | |
Net increase (decrease) in net assets resulting from operations | $ 172,536 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,665 | $ 145,008 |
Net realized gain (loss) | 159,578 | 161,103 |
Change in net unrealized appreciation (depreciation) | (42,707) | (34,457) |
Net increase (decrease) in net assets resulting from operations | 172,536 | 271,654 |
Distributions to shareholders from net investment income | (55,814) | (145,571) |
Distributions to shareholders from net realized gain | (30,226) | (38,550) |
Total distributions | (86,040) | (184,121) |
Share transactions - net increase (decrease) | (447,885) | (1,946,210) |
Total increase (decrease) in net assets | (361,389) | (1,858,677) |
|
|
|
Net Assets | ||
Beginning of period | 8,143,386 | 10,002,063 |
End of period (including undistributed net investment income of $1,293 and undistributed net investment income of $1,442, respectively) | $ 7,781,997 | $ 8,143,386 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 | $ 47.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .331 | .736 | .821 | .831 | 1.118 | 1.233 |
Net realized and unrealized gain (loss) | .746 | .842 | 3.054 | 3.539 | (3.686) | (2.204) |
Total from investment operations | 1.077 | 1.578 | 3.875 | 4.370 | (2.568) | (.971) |
Distributions from net investment income | (.335) | (.733) | (.834) | (.830) | (1.132) | (1.129) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.537) | (.938) | (1.095) | (.950) | (1.572) | (1.269) |
Net asset value, end of period | $ 51.00 | $ 50.46 | $ 49.82 | $ 47.04 | $ 43.62 | $ 47.76 |
Total Return B, C, D | 2.14% | 3.23% | 8.30% | 10.08% | (5.07)% | (2.02)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 1.30% A | 1.49% | 1.68% | 1.80% | 2.72% | 2.76% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 812 | $ 886 | $ 1,798 | $ 2,308 | $ 2,599 | $ 2,214 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 | $ 47.75 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .268 | .612 | .698 | .716 | 1.025 | 1.128 |
Net realized and unrealized gain (loss) | .745 | .847 | 3.043 | 3.540 | (3.690) | (2.219) |
Total from investment operations | 1.013 | 1.459 | 3.741 | 4.256 | (2.665) | (1.091) |
Distributions from net investment income | (.271) | (.594) | (.710) | (.716) | (1.025) | (1.019) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.473) | (.799) | (.971) | (.836) | (1.465) | (1.159) |
Net asset value, end of period | $ 51.01 | $ 50.47 | $ 49.81 | $ 47.04 | $ 43.62 | $ 47.75 |
Total Return B, C, D | 2.02% | 2.98% | 8.00% | 9.81% | (5.30)% | (2.26)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.05% A | 1.24% | 1.42% | 1.55% | 2.47% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 155 | $ 194 | $ 529 | $ 638 | $ 499 | $ 673 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 | $ 47.73 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .140 | .364 | .453 | .485 | .822 | .904 |
Net realized and unrealized gain (loss) | .748 | .837 | 3.055 | 3.531 | (3.689) | (2.227) |
Total from investment operations | .888 | 1.201 | 3.508 | 4.016 | (2.867) | (1.323) |
Distributions from net investment income | (.166) | (.376) | (.447) | (.476) | (.813) | (.807) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.368) | (.581) | (.708) | (.596) | (1.253) | (.947) |
Net asset value, end of period | $ 50.97 | $ 50.45 | $ 49.83 | $ 47.03 | $ 43.61 | $ 47.73 |
Total Return B, C, D | 1.77% | 2.45% | 7.49% | 9.24% | (5.76)% | (2.71)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | .55% A | .74% | .92% | 1.05% | 1.97% | 2.01% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 797 | $ 891 | $ 759 | $ 1,075 | $ 1,171 | $ 1,595 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2016
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 | $ 47.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .394 | .859 | .944 | .948 | 1.231 | 1.356 |
Net realized and unrealized gain (loss) | .747 | .838 | 3.055 | 3.539 | (3.692) | (2.217) |
Total from investment operations | 1.141 | 1.697 | 3.999 | 4.487 | (2.461) | (.861) |
Distributions from net investment income | (.399) | (.862) | (.958) | (.947) | (1.239) | (1.229) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.601) | (1.067) | (1.219) | (1.067) | (1.679) | (1.369) |
Net asset value, end of period | $ 51.00 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.63 | $ 47.77 |
Total Return B, C | 2.27% | 3.48% | 8.57% | 10.36% | (4.82)% | (1.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 1.55% A | 1.74% | 1.93% | 2.05% | 2.97% | 3.00% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,983 | $ 6,124 | $ 6,873 | $ 6,946 | $ 4,733 | $ 4,880 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 | $ 47.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .395 | .861 | .945 | .947 | 1.235 | 1.370 |
Net realized and unrealized gain (loss) | .756 | .836 | 3.054 | 3.530 | (3.686) | (2.231) |
Total from investment operations | 1.151 | 1.697 | 3.999 | 4.477 | (2.451) | (.861) |
Distributions from net investment income | (.399) | (.862) | (.958) | (.947) | (1.239) | (1.229) |
Distributions from net realized gain | (.202) | (.205) | (.261) | (.120) | (.440) | (.140) |
Total distributions | (.601) | (1.067) | (1.219) | (1.067) | (1.679) | (1.369) |
Net asset value, end of period | $ 51.01 | $ 50.46 | $ 49.83 | $ 47.05 | $ 43.64 | $ 47.77 |
Total Return B, C | 2.29% | 3.48% | 8.57% | 10.33% | (4.80)% | (1.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 1.55% A | 1.74% | 1.92% | 2.05% | 2.97% | 3.00% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 35 | $ 49 | $ 44 | $ 108 | $ 109 | $ 184 |
Portfolio turnover rate | 41% A | 44% | 31% | 40% | 54% | 56% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 3.2 | 3.5 |
Fidelity Blue Chip Growth Fund | 2.9 | 3.3 |
Fidelity Disciplined Equity Fund | 3.4 | 3.9 |
Fidelity Equity-Income Fund | 4.5 | 5.2 |
Fidelity Series 100 Index Fund | 2.9 | 3.3 |
Fidelity Series Broad Market Opportunities Fund | 5.2 | 5.8 |
Fidelity Series Small Cap Opportunities Fund | 0.4 | 0.5 |
| 22.5 | 25.5 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 1.8 | 2.3 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 8.5 | 8.2 |
Fidelity Strategic Real Return Fund | 8.5 | 8.5 |
Fidelity Total Bond Fund | 25.3 | 24.8 |
| 42.3 | 41.5 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 16.7 | 15.3 |
Fidelity Short-Term Bond Fund | 16.7 | 15.4 |
| 33.4 | 30.7 |
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) | |||
Current | |||
| Domestic Equity Funds | 22.5% |
|
| International Equity Funds | 1.8% |
|
 | Investment Grade Fixed-Income Funds | 42.3% |
|
| Short-Term Funds | 33.4% |
|
Six months ago | |||
| Domestic Equity Funds | 25.5% |
|
| International Equity Funds | 2.3% |
|
| Investment Grade Fixed-Income Funds | 41.5% |
|
| Short-Term Funds | 30.7% |
|
Expected | |||
| Domestic Equity Funds | 21.1% |
|
| International Equity Funds | 0.8% |
|
| Investment Grade Fixed-Income Funds | 41.2% |
|
| Short-Term Funds | 36.9% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2018 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 24.3% | |||
Shares | Value | ||
Domestic Equity Funds - 22.5% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 9,146 | $ 171,860 | |
Fidelity Blue Chip Growth Fund | 3,120 | 159,857 | |
Fidelity Disciplined Equity Fund | 7,175 | 184,408 | |
Fidelity Equity-Income Fund | 4,938 | 245,514 | |
Fidelity Series 100 Index Fund | 16,229 | 159,857 | |
Fidelity Series Broad Market Opportunities Fund | 24,134 | 282,613 | |
Fidelity Series Small Cap Opportunities Fund | 2,091 | 24,551 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,228,660 | ||
International Equity Funds - 1.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 2,889 | 98,751 | |
TOTAL EQUITY FUNDS (Cost $1,201,425) |
| ||
Fixed-Income Funds - 42.3% | |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 42.3% | |||
Fidelity Government Income Fund | 44,063 | $ 462,657 | |
Fidelity Strategic Real Return Fund | 47,355 | 462,657 | |
Fidelity Total Bond Fund | 127,420 | 1,386,331 | |
TOTAL FIXED-INCOME FUNDS (Cost $2,270,067) |
| ||
Short-Term Funds - 33.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 908,400 | 908,400 | |
Fidelity Short-Term Bond Fund | 105,628 | 908,400 | |
TOTAL SHORT-TERM FUNDS (Cost $1,805,527) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,277,019) | 5,455,856 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (548) | ||
NET ASSETS - 100% | $ 5,455,308 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,277,019) - See accompanying schedule | $ 5,455,856 | |
Receivable for investments sold | 45,408 | |
Total assets | 5,501,264 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 45,405 | |
Distribution and service plan fees payable | 551 | |
Total liabilities | 45,956 | |
|
|
|
Net Assets | $ 5,455,308 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,799,074 | |
Undistributed net investment income | 1,170 | |
Accumulated undistributed net realized gain (loss) on investments | (523,773) | |
Net unrealized appreciation (depreciation) on investments | 178,837 | |
Net Assets | $ 5,455,308 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.54) | $ 54.68 | |
Class T: | $ 51.56 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.56) | $ 53.43 | |
Class C: | $ 51.49 | |
|
|
|
Income Replacement 2018: | $ 51.55 | |
|
|
|
Institutional Class: | $ 51.56 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,916 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 3,382 | |
Independent trustees' compensation | 11 | |
Total expenses before reductions | 3,393 | |
Expense reductions | (11) | 3,382 |
Net investment income (loss) | 56,534 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 26,121 | |
Capital gain distributions from underlying funds | 75,324 |
|
Total net realized gain (loss) |
| 101,445 |
Change in net unrealized appreciation (depreciation) on underlying funds | 34,855 | |
Net gain (loss) | 136,300 | |
Net increase (decrease) in net assets resulting from operations | $ 192,834 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2018 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 56,534 | $ 87,998 |
Net realized gain (loss) | 101,445 | 133,708 |
Change in net unrealized appreciation (depreciation) | 34,855 | (43,406) |
Net increase (decrease) in net assets resulting from operations | 192,834 | 178,300 |
Distributions to shareholders from net investment income | (56,450) | (87,972) |
Distributions to shareholders from net realized gain | (32,209) | (20,328) |
Total distributions | (88,659) | (108,300) |
Share transactions - net increase (decrease) | (351,855) | 348,272 |
Total increase (decrease) in net assets | (247,680) | 418,272 |
|
|
|
Net Assets | ||
Beginning of period | 5,702,988 | 5,284,716 |
End of period (including undistributed net investment income of $1,170 and undistributed net investment income of $1,086, respectively) | $ 5,455,308 | $ 5,702,988 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .474 | .774 | .836 | .836 | 1.092 | 1.163 |
Net realized and unrealized gain (loss) | 1.234 | .909 | 3.655 | 3.763 | (4.138) | (2.454) |
Total from investment operations | 1.708 | 1.683 | 4.491 | 4.599 | (3.046) | (1.291) |
Distributions from net investment income | (.469) | (.765) | (.834) | (.839) | (1.124) | (1.119) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.758) | (.963) | (1.071) | (.959) | (1.604) | (1.249) |
Net asset value, end of period | $ 51.54 | $ 50.59 | $ 49.87 | $ 46.45 | $ 42.81 | $ 47.46 |
Total Return B, C, D | 3.40% | 3.45% | 9.73% | 10.80% | (6.06)% | (2.68)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 1.85% A | 1.57% | 1.71% | 1.83% | 2.69% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 720 | $ 762 | $ 784 | $ 1,147 | $ 833 | $ 1,107 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .409 | .651 | .716 | .722 | .989 | 1.075 |
Net realized and unrealized gain (loss) | 1.225 | .909 | 3.664 | 3.759 | (4.128) | (2.483) |
Total from investment operations | 1.634 | 1.560 | 4.380 | 4.481 | (3.139) | (1.408) |
Distributions from net investment income | (.405) | (.642) | (.723) | (.711) | (1.011) | (1.002) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.694) | (.840) | (.960) | (.831) | (1.491) | (1.132) |
Net asset value, end of period | $ 51.56 | $ 50.62 | $ 49.90 | $ 46.48 | $ 42.83 | $ 47.46 |
Total Return B, C, D | 3.25% | 3.19% | 9.48% | 10.51% | (6.28)% | (2.91)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.60% A | 1.32% | 1.46% | 1.58% | 2.44% | 2.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 122 | $ 128 | $ 148 | $ 52 | $ 91 | $ 154 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 | $ 47.41 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .281 | .403 | .469 | .495 | .786 | .836 |
Net realized and unrealized gain (loss) | 1.221 | .912 | 3.659 | 3.760 | (4.122) | (2.476) |
Total from investment operations | 1.502 | 1.315 | 4.128 | 4.255 | (3.336) | (1.640) |
Distributions from net investment income | (.283) | (.407) | (.471) | (.505) | (.794) | (.820) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.572) | (.605) | (.708) | (.625) | (1.274) | (.950) |
Net asset value, end of period | $ 51.49 | $ 50.56 | $ 49.85 | $ 46.43 | $ 42.80 | $ 47.41 |
Total Return B, C, D | 2.99% | 2.68% | 8.93% | 9.98% | (6.75)% | (3.36)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.10% A | .82% | .96% | 1.08% | 1.94% | 1.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 418 | $ 439 | $ 226 | $ 201 | $ 131 | $ 365 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2018
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 | $ 47.46 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .538 | .898 | .960 | .950 | 1.202 | 1.280 |
Net realized and unrealized gain (loss) | 1.233 | .908 | 3.657 | 3.761 | (4.138) | (2.469) |
Total from investment operations | 1.771 | 1.806 | 4.617 | 4.711 | (2.936) | (1.189) |
Distributions from net investment income | (.532) | (.888) | (.960) | (.951) | (1.224) | (1.221) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.821) | (1.086) | (1.197) | (1.071) | (1.704) | (1.351) |
Net asset value, end of period | $ 51.55 | $ 50.60 | $ 49.88 | $ 46.46 | $ 42.82 | $ 47.46 |
Total Return B, C | 3.53% | 3.71% | 10.01% | 11.07% | (5.81)% | (2.48)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expense net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.10% A | 1.82% | 1.96% | 2.08% | 2.94% | 2.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,748 | $ 3,904 | $ 3,806 | $ 3,681 | $ 3,435 | $ 5,167 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 | $ 47.47 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .538 | .891 | .959 | .950 | 1.175 | 1.295 |
Net realized and unrealized gain (loss) | 1.233 | .915 | 3.668 | 3.761 | (4.121) | (2.474) |
Total from investment operations | 1.771 | 1.806 | 4.627 | 4.711 | (2.946) | (1.179) |
Distributions from net investment income | (.532) | (.888) | (.960) | (.951) | (1.224) | (1.221) |
Distributions from net realized gain | (.289) | (.198) | (.237) | (.120) | (.480) | (.130) |
Total distributions | (.821) | (1.086) | (1.197) | (1.071) | (1.704) | (1.351) |
Net asset value, end of period | $ 51.56 | $ 50.61 | $ 49.89 | $ 46.46 | $ 42.82 | $ 47.47 |
Total Return B, C | 3.52% | 3.71% | 10.03% | 11.07% | (5.83)% | (2.46)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expense net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.10% A | 1.82% | 1.96% | 2.08% | 2.94% | 2.85% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 447 | $ 470 | $ 320 | $ 350 | $ 326 | $ 214 |
Portfolio turnover rate | 37% A | 44% | 39% | 24% | 51% | 46% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2020 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.1 | 4.4 |
Fidelity Blue Chip Growth Fund | 3.8 | 4.1 |
Fidelity Disciplined Equity Fund | 4.4 | 4.9 |
Fidelity Equity-Income Fund | 5.9 | 6.5 |
Fidelity Series 100 Index Fund | 3.9 | 4.2 |
Fidelity Series Broad Market Opportunities Fund | 6.8 | 7.4 |
Fidelity Series Small Cap Opportunities Fund | 0.6 | 0.6 |
| 29.5 | 32.1 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 2.9 | 3.3 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 0.9 | 1.1 |
Fidelity Strategic Income Fund | 0.9 | 1.1 |
| 1.8 | 2.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 7.8 | 7.4 |
Fidelity Strategic Real Return Fund | 7.8 | 7.7 |
Fidelity Total Bond Fund | 23.2 | 22.6 |
| 38.8 | 37.7 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 13.5 | 12.3 |
Fidelity Short-Term Bond Fund | 13.5 | 12.4 |
| 27.0 | 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) | |||
Current | |||
| Domestic Equity Funds | 29.5% |
|
 | International Equity Funds | 2.9% |
|
 | High Yield Fixed-Income Funds | 1.8% |
|
 | Investment Grade Fixed-Income Funds | 38.8% |
|
| Short-Term Funds | 27.0% |
|
Six months ago | |||
| Domestic Equity Funds | 32.1% |
|
| International Equity Funds | 3.3% |
|
| High Yield Fixed-Income Funds | 2.2% |
|
| Investment Grade Fixed-Income Funds | 37.7% |
|
| Short-Term Funds | 24.7% |
|
Expected | |||
| Domestic Equity Funds | 27.8% |
|
| International Equity Funds | 2.7% |
|
| High Yield Fixed-Income Funds | 0.8% |
|
| Investment Grade Fixed-Income Funds | 39.9% |
|
| Short-Term Funds | 28.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2020 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 32.4% | |||
Shares | Value | ||
Domestic Equity Funds - 29.5% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,490 | $ 234,680 | |
Fidelity Blue Chip Growth Fund | 4,258 | 218,161 | |
Fidelity Disciplined Equity Fund | 9,796 | 251,769 | |
Fidelity Equity-Income Fund | 6,748 | 335,502 | |
Fidelity Series 100 Index Fund | 22,148 | 218,162 | |
Fidelity Series Broad Market Opportunities Fund | 32,931 | 385,628 | |
Fidelity Series Small Cap Opportunities Fund | 2,863 | 33,607 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,677,509 | ||
International Equity Funds - 2.9% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 4,833 | 165,188 | |
TOTAL EQUITY FUNDS (Cost $1,465,214) |
| ||
Fixed-Income Funds - 40.6% | |||
|
|
|
|
High Yield Fixed-Income Funds - 1.8% | |||
Fidelity Capital & Income Fund | 5,151 | 49,556 | |
Fidelity Strategic Income Fund | 4,370 | 49,556 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 99,112 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 38.8% | |||
Fidelity Government Income Fund | 42,151 | $ 442,589 | |
Fidelity Strategic Real Return Fund | 45,301 | 442,589 | |
Fidelity Total Bond Fund | 122,142 | 1,328,904 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 2,214,082 | ||
TOTAL FIXED-INCOME FUNDS (Cost $2,222,035) |
| ||
Short-Term Funds - 27.0% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 770,116 | 770,116 | |
Fidelity Short-Term Bond Fund | 89,548 | 770,116 | |
TOTAL SHORT-TERM FUNDS (Cost $1,524,515) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,211,764) | 5,696,123 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (423) | ||
NET ASSETS - 100% | $ 5,695,700 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2020 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,211,764) - See accompanying schedule | $ 5,696,123 | |
Receivable for investments sold | 51,919 | |
Total assets | 5,748,042 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 51,916 | |
Distribution and service plan fees payable | 426 | |
Total liabilities | 52,342 | |
|
|
|
Net Assets | $ 5,695,700 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,359,066 | |
Undistributed net investment income | 1,172 | |
Accumulated undistributed net realized gain (loss) on investments | (148,897) | |
Net unrealized appreciation (depreciation) on investments | 484,359 | |
Net Assets | $ 5,695,700 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.11 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.11) | $ 55.29 | |
Class T: | $ 52.10 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.10) | $ 53.99 | |
Class C: | $ 52.05 | |
|
|
|
Income Replacement 2020: | $ 52.11 | |
|
|
|
Institutional Class: | $ 52.11 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,856 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 2,562 | |
Independent trustees' compensation | 9 | |
Total expenses before reductions | 2,571 | |
Expense reductions | (9) | 2,562 |
Net investment income (loss) | 57,294 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 20,845 | |
Capital gain distributions from underlying funds | 65,023 |
|
Total net realized gain (loss) |
| 85,868 |
Change in net unrealized appreciation (depreciation) on underlying funds | 81,283 | |
Net gain (loss) | 167,151 | |
Net increase (decrease) in net assets resulting from operations | $ 224,445 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 57,294 | $ 73,877 |
Net realized gain (loss) | 85,868 | 43,077 |
Change in net unrealized appreciation (depreciation) | 81,283 | 31,118 |
Net increase (decrease) in net assets resulting from operations | 224,445 | 148,072 |
Distributions to shareholders from net investment income | (57,006) | (73,850) |
Distributions to shareholders from net realized gain | (25,206) | (14,681) |
Total distributions | (82,212) | (88,531) |
Share transactions - net increase (decrease) | 691,186 | 831,367 |
Total increase (decrease) in net assets | 833,419 | 890,908 |
|
|
|
Net Assets | ||
Beginning of period | 4,862,281 | 3,971,373 |
End of period (including undistributed net investment income of $1,172 and undistributed net investment income of $884, respectively) | $ 5,695,700 | $ 4,862,281 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.11 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .543 | .793 | .817 | .812 | 1.027 | 1.085 |
Net realized and unrealized gain (loss) | 1.663 | .884 | 4.128 | 3.930 | (4.465) | (2.692) |
Total from investment operations | 2.206 | 1.677 | 4.945 | 4.742 | (3.438) | (1.607) |
Distributions from net investment income | (.533) | (.794) | (.826) | (.817) | (1.032) | (1.113) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.786) | (.977) | (1.045) | (.932) | (1.392) | (1.283) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.11 |
Total Return B, C, D | 4.38% | 3.44% | 10.79% | 11.27% | (7.00)% | (3.33)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.10% A | 1.61% | 1.67% | 1.79% | 2.60% | 2.42% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 395 | $ 408 | $ 436 | $ 607 | $ 502 | $ 503 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.10 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .478 | .670 | .696 | .696 | .926 | .985 |
Net realized and unrealized gain (loss) | 1.655 | .885 | 4.135 | 3.928 | (4.460) | (2.707) |
Total from investment operations | 2.133 | 1.555 | 4.831 | 4.624 | (3.534) | (1.722) |
Distributions from net investment income | (.470) | (.672) | (.712) | (.699) | (.926) | (1.008) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.723) | (.855) | (.931) | (.814) | (1.286) | (1.178) |
Net asset value, end of period | $ 52.10 | $ 50.69 | $ 49.99 | $ 46.09 | $ 42.28 | $ 47.10 |
Total Return B, C, D | 4.24% | 3.18% | 10.54% | 10.98% | (7.23)% | (3.56)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 1.85% A | 1.36% | 1.42% | 1.54% | 2.35% | 2.17% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 188 | $ 189 | $ 196 | $ 134 | $ 171 | $ 187 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 | $ 47.08 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .348 | .422 | .449 | .473 | .736 | .755 |
Net realized and unrealized gain (loss) | 1.652 | .876 | 4.132 | 3.923 | (4.471) | (2.699) |
Total from investment operations | 2.000 | 1.298 | 4.581 | 4.396 | (3.735) | (1.944) |
Distributions from net investment income | (.347) | (.435) | (.452) | (.481) | (.725) | (.806) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.600) | (.618) | (.671) | (.596) | (1.085) | (.976) |
Net asset value, end of period | $ 52.05 | $ 50.65 | $ 49.97 | $ 46.06 | $ 42.26 | $ 47.08 |
Total Return B, C, D | 3.97% | 2.65% | 9.98% | 10.43% | (7.70)% | (3.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.35% A | .86% | .92% | 1.05% | 1.85% | 1.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 318 | $ 306 | $ 228 | $ 295 | $ 221 | $ 275 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2020
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .606 | .917 | .942 | .925 | 1.125 | 1.190 |
Net realized and unrealized gain (loss) | 1.665 | .874 | 4.138 | 3.919 | (4.464) | (2.677) |
Total from investment operations | 2.271 | 1.791 | 5.080 | 4.844 | (3.339) | (1.487) |
Distributions from net investment income | (.598) | (.918) | (.951) | (.929) | (1.131) | (1.223) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.851) | (1.101) | (1.170) | (1.044) | (1.491) | (1.393) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 |
Total Return B, C | 4.52% | 3.68% | 11.10% | 11.52% | (6.76)% | (3.10)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.35% A | 1.86% | 1.92% | 2.04% | 2.86% | 2.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,781 | $ 3,945 | $ 3,079 | $ 2,225 | $ 1,624 | $ 1,233 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .607 | .917 | .939 | .928 | 1.138 | 1.215 |
Net realized and unrealized gain (loss) | 1.664 | .874 | 4.141 | 3.916 | (4.477) | (2.702) |
Total from investment operations | 2.271 | 1.791 | 5.080 | 4.844 | (3.339) | (1.487) |
Distributions from net investment income | (.598) | (.918) | (.951) | (.929) | (1.131) | (1.223) |
Distributions from net realized gain | (.253) | (.183) | (.219) | (.115) | (.360) | (.170) |
Total distributions | (.851) | (1.101) | (1.170) | (1.044) | (1.491) | (1.393) |
Net asset value, end of period | $ 52.11 | $ 50.69 | $ 50.00 | $ 46.09 | $ 42.29 | $ 47.12 |
Total Return B, C | 4.52% | 3.68% | 11.10% | 11.52% | (6.76)% | (3.10)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.35% A | 1.86% | 1.92% | 2.04% | 2.85% | 2.67% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14 | $ 13 | $ 32 | $ 49 | $ 95 | $ 163 |
Portfolio turnover rate | 40% A | 35% | 48% | 38% | 60% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 4.9 | 5.1 |
Fidelity Blue Chip Growth Fund | 4.5 | 4.8 |
Fidelity Disciplined Equity Fund | 5.2 | 5.6 |
Fidelity Equity-Income Fund | 7.0 | 7.5 |
Fidelity Series 100 Index Fund | 4.5 | 4.8 |
Fidelity Series Broad Market Opportunities Fund | 8.0 | 8.5 |
Fidelity Series Small Cap Opportunities Fund | 0.7 | 0.7 |
| 34.8 | 37.0 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 3.9 | 4.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 1.4 | 1.6 |
Fidelity Strategic Income Fund | 1.4 | 1.5 |
| 2.8 | 3.1 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 7.2 | 6.9 |
Fidelity Strategic Real Return Fund | 7.2 | 7.2 |
Fidelity Total Bond Fund | 21.5 | 20.9 |
| 35.9 | 35.0 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 11.3 | 10.3 |
Fidelity Short-Term Bond Fund | 11.3 | 10.4 |
| 22.6 | 20.7 |
| ||
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) | |||
Current | |||
| Domestic Equity Funds | 34.8% |
|
| International Equity Funds | 3.9% |
|
| High Yield Fixed-Income Funds | 2.8% |
|
| Investment Grade Fixed-Income Funds | 35.9% |
|
| Short-Term Funds | 22.6% |
|
Six months ago | |||
| Domestic Equity Funds | 37.0% |
|
| International Equity Funds | 4.2% |
|
| High Yield Fixed-Income Funds | 3.1% |
|
| Investment Grade Fixed-Income Funds | 35.0% |
|
| Short-Term Funds | 20.7% |
|
Expected | |||
| Domestic Equity Funds | 33.6% |
|
| International Equity Funds | 3.6% |
|
| High Yield Fixed-Income Funds | 2.6% |
|
| Investment Grade Fixed-Income Funds | 36.7% |
|
| Short-Term Funds | 23.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2022 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 38.7% | |||
Shares | Value | ||
Domestic Equity Funds - 34.8% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,210 | $ 229,433 | |
Fidelity Blue Chip Growth Fund | 4,166 | 213,415 | |
Fidelity Disciplined Equity Fund | 9,569 | 245,922 | |
Fidelity Equity-Income Fund | 6,595 | 327,896 | |
Fidelity Series 100 Index Fund | 21,667 | 213,415 | |
Fidelity Series Broad Market Opportunities Fund | 32,226 | 377,363 | |
Fidelity Series Small Cap Opportunities Fund | 2,809 | 32,978 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,640,422 | ||
International Equity Funds - 3.9% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 5,307 | 181,379 | |
TOTAL EQUITY FUNDS (Cost $1,715,208) |
| ||
Fixed-Income Funds - 38.7% | |||
|
|
|
|
High Yield Fixed-Income Funds - 2.8% | |||
Fidelity Capital & Income Fund | 6,856 | 65,956 | |
Fidelity Strategic Income Fund | 5,816 | 65,956 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 131,912 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 35.9% | |||
Fidelity Government Income Fund | 32,350 | $ 339,674 | |
Fidelity Strategic Real Return Fund | 34,767 | 339,674 | |
Fidelity Total Bond Fund | 93,487 | 1,017,137 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,696,485 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,828,736) |
| ||
Short-Term Funds - 22.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 530,475 | 530,475 | |
Fidelity Short-Term Bond Fund | 61,683 | 530,475 | |
TOTAL SHORT-TERM FUNDS (Cost $1,057,428) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $4,601,372) | 4,711,148 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (104) | ||
NET ASSETS - 100% | $ 4,711,044 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $4,601,372) - See accompanying schedule | $ 4,711,148 | |
Cash |
| 1 |
Receivable for investments sold | 35,462 | |
Total assets | 4,746,611 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 33,462 | |
Payable for fund shares redeemed | 2,000 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 35,567 | |
|
|
|
Net Assets | $ 4,711,044 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,161,057 | |
Undistributed net investment income | 1,042 | |
Accumulated undistributed net realized gain (loss) on investments | (560,831) | |
Net unrealized appreciation (depreciation) on investments | 109,776 | |
Net Assets | $ 4,711,044 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.21 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.21) | $ 55.40 | |
Class T: | $ 52.26 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.26) | $ 54.16 | |
Class C: | $ 52.22 | |
|
|
|
Income Replacement 2022: | $ 52.20 | |
|
|
|
Institutional Class: | $ 52.19 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 56,371 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 635 | |
Independent trustees' compensation | 8 | |
Total expenses before reductions | 643 | |
Expense reductions | (8) | 635 |
Net investment income (loss) | 55,736 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 15,103 | |
Capital gain distributions from underlying funds | 57,093 |
|
Total net realized gain (loss) |
| 72,196 |
Change in net unrealized appreciation (depreciation) on underlying funds | 100,398 | |
Net gain (loss) | 172,594 | |
Net increase (decrease) in net assets resulting from operations | $ 228,330 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2022 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,736 | $ 64,238 |
Net realized gain (loss) | 72,196 | 53,984 |
Change in net unrealized appreciation (depreciation) | 100,398 | 17,516 |
Net increase (decrease) in net assets resulting from operations | 228,330 | 135,738 |
Distributions to shareholders from net investment income | (55,508) | (64,181) |
Distributions to shareholders from net realized gain | (22,022) | (10,962) |
Total distributions | (77,530) | (75,143) |
Share transactions - net increase (decrease) | 245,517 | 858,131 |
Total increase (decrease) in net assets | 396,317 | 918,726 |
|
|
|
Net Assets | ||
Beginning of period | 4,314,727 | 3,396,001 |
End of period (including undistributed net investment income of $1,042 and undistributed net investment income of $814, respectively) | $ 4,711,044 | $ 4,314,727 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 | $ 47.05 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .585 | .783 | .817 | .815 | 1.035 | 1.087 |
Net realized and unrealized gain (loss) | 1.979 | .842 | 4.431 | 3.980 | (4.739) | (2.853) |
Total from investment operations | 2.564 | 1.625 | 5.248 | 4.795 | (3.704) | (1.766) |
Distributions from net investment income | (.560) | (.784) | (.824) | (.793) | (1.056) | (1.014) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.814) | (.955) | (1.038) | (1.085) | (1.476) | (1.184) |
Net asset value, end of period | $ 52.21 | $ 50.46 | $ 49.79 | $ 45.58 | $ 41.87 | $ 47.05 |
Total Return B, C, D | 5.12% | 3.35% | 11.58% | 11.53% | (7.53)% | (3.64)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .26% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .26% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .26% | .25% A |
Net investment income (loss) | 2.27% A | 1.59% | 1.67% | 1.82% | 2.62% | 2.41% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 390 | $ 386 | $ 72 | $ 42 | $ 122 | $ 289 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 | $ 47.04 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .528 | .653 | .691 | .702 | .933 | .982 |
Net realized and unrealized gain (loss) | 1.963 | .871 | 4.434 | 3.985 | (4.736) | (2.862) |
Total from investment operations | 2.491 | 1.524 | 5.125 | 4.687 | (3.803) | (1.880) |
Distributions from net investment income | (.507) | (.643) | (.661) | (.685) | (.957) | (.910) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.761) | (.814) | (.875) | (.977) | (1.377) | (1.080) |
Net asset value, end of period | $ 52.26 | $ 50.53 | $ 49.82 | $ 45.57 | $ 41.86 | $ 47.04 |
Total Return B, C, D | 4.97% | 3.13% | 11.30% | 11.27% | (7.77)% | (3.87)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Expenses net of fee waivers, if any | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Expenses net of all reductions | .49% A, I | .50% | .50% | .50% | .51% | .50% A |
Net investment income (loss) | 2.03% A | 1.34% | 1.43% | 1.57% | 2.37% | 2.16% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1 | $ 5 | $ 23 | $ 77 | $ 112 | $ 187 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 | $ 47.04 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .393 | .411 | .447 | .477 | .737 | .760 |
Net realized and unrealized gain (loss) | 1.971 | .845 | 4.434 | 3.989 | (4.745) | (2.860) |
Total from investment operations | 2.364 | 1.256 | 4.881 | 4.466 | (4.008) | (2.100) |
Distributions from net investment income | (.380) | (.405) | (.437) | (.454) | (.752) | (.690) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.634) | (.576) | (.651) | (.746) | (1.172) | (.860) |
Net asset value, end of period | $ 52.22 | $ 50.49 | $ 49.81 | $ 45.58 | $ 41.86 | $ 47.04 |
Total Return B, C, D | 4.71% | 2.58% | 10.74% | 10.72% | (8.25)% | (4.29)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Net investment income (loss) | 1.53% A | .84% | .92% | 1.07% | 1.87% | 1.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 29 | $ 28 | $ 32 | $ 44 | $ 69 | $ 120 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2022
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 | $ 47.06 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .649 | .901 | .937 | .925 | 1.144 | 1.190 |
Net realized and unrealized gain (loss) | 1.969 | .849 | 4.438 | 3.978 | (4.752) | (2.836) |
Total from investment operations | 2.618 | 1.750 | 5.375 | 4.903 | (3.608) | (1.646) |
Distributions from net investment income | (.624) | (.899) | (.941) | (.921) | (1.162) | (1.124) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.878) | (1.070) | (1.155) | (1.213) | (1.582) | (1.294) |
Net asset value, end of period | $ 52.20 | $ 50.46 | $ 49.78 | $ 45.56 | $ 41.87 | $ 47.06 |
Total Return B, C | 5.23% | 3.62% | 11.87% | 11.80% | (7.30)% | (3.41)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.52% A | 1.84% | 1.92% | 2.07% | 2.87% | 2.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,288 | $ 3,892 | $ 3,266 | $ 2,395 | $ 2,353 | $ 4,666 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 | $ 47.06 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .645 | .900 | .937 | .918 | 1.131 | 1.208 |
Net realized and unrealized gain (loss) | 1.973 | .850 | 4.428 | 3.995 | (4.749) | (2.854) |
Total from investment operations | 2.618 | 1.750 | 5.365 | 4.913 | (3.618) | (1.646) |
Distributions from net investment income | (.624) | (.899) | (.941) | (.921) | (1.162) | (1.124) |
Distributions from net realized gain | (.254) | (.171) | (.214) | (.292) | (.420) | (.170) |
Total distributions | (.878) | (1.070) | (1.155) | (1.213) | (1.582) | (1.294) |
Net asset value, end of period | $ 52.19 | $ 50.45 | $ 49.77 | $ 45.56 | $ 41.86 | $ 47.06 |
Total Return B, C | 5.23% | 3.62% | 11.85% | 11.83% | (7.33)% | (3.41)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.52% A | 1.84% | 1.92% | 2.07% | 2.87% | 2.66% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4 | $ 3 | $ 4 | $ 5 | $ 166 | $ 277 |
Portfolio turnover rate | 26% A | 43% | 29% | 24% | 22% | 32% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.4 | 5.6 |
Fidelity Blue Chip Growth Fund | 5.0 | 5.2 |
Fidelity Disciplined Equity Fund | 5.8 | 6.1 |
Fidelity Equity-Income Fund | 7.8 | 8.1 |
Fidelity Series 100 Index Fund | 5.0 | 5.3 |
Fidelity Series Broad Market Opportunities Fund | 8.9 | 9.2 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 38.7 | 40.3 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 4.8 | 5.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 1.8 | 1.9 |
Fidelity Strategic Income Fund | 1.8 | 1.8 |
| 3.6 | 3.7 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.8 | 6.5 |
Fidelity Strategic Real Return Fund | 6.8 | 6.7 |
Fidelity Total Bond Fund | 20.1 | 19.7 |
| 33.7 | 32.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 9.6 | 8.9 |
Fidelity Short-Term Bond Fund | 9.6 | 9.0 |
| 19.2 | 17.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 38.7% |
|
| International Equity Funds | 4.8% |
|
| High Yield Fixed-Income Funds | 3.6% |
|
| Investment Grade Fixed-Income Funds | 33.7% |
|
| Short-Term Funds | 19.2% |
|
Six months ago | |||
| Domestic Equity Funds | 40.3% |
|
| International Equity Funds | 5.2% |
|
| High Yield Fixed-Income Funds | 3.7% |
|
| Investment Grade Fixed-Income Funds | 32.9% |
|
| Short-Term Funds | 17.9% |
|
Expected | |||
| Domestic Equity Funds | 37.9% |
|
| International Equity Funds | 4.5% |
|
| High Yield Fixed-Income Funds | 3.4% |
|
| Investment Grade Fixed-Income Funds | 34.3% |
|
| Short-Term Funds | 19.9% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2024 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 43.5% | |||
Shares | Value | ||
Domestic Equity Funds - 38.7% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 7,284 | $ 136,864 | |
Fidelity Blue Chip Growth Fund | 2,480 | 127,034 | |
Fidelity Disciplined Equity Fund | 5,698 | 146,442 | |
Fidelity Equity-Income Fund | 3,929 | 195,340 | |
Fidelity Series 100 Index Fund | 12,897 | 127,034 | |
Fidelity Series Broad Market Opportunities Fund | 19,178 | 224,578 | |
Fidelity Series Small Cap Opportunities Fund | 1,675 | 19,660 | |
TOTAL DOMESTIC EQUITY FUNDS | 976,952 | ||
International Equity Funds - 4.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 3,518 | 120,229 | |
TOTAL EQUITY FUNDS (Cost $989,038) |
| ||
Fixed-Income Funds - 37.3% | |||
|
|
|
|
High Yield Fixed-Income Funds - 3.6% | |||
Fidelity Capital & Income Fund | 4,611 | 44,361 | |
Fidelity Strategic Income Fund | 3,912 | 44,361 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 88,722 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 33.7% | |||
Fidelity Government Income Fund | 16,203 | $ 170,135 | |
Fidelity Strategic Real Return Fund | 17,414 | 170,135 | |
Fidelity Total Bond Fund | 47,005 | 511,414 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 851,684 | ||
TOTAL FIXED-INCOME FUNDS (Cost $933,166) |
| ||
Short-Term Funds - 19.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 241,466 | 241,466 | |
Fidelity Short-Term Bond Fund | 28,077 | 241,466 | |
TOTAL SHORT-TERM FUNDS (Cost $480,762) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,402,966) | 2,520,519 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (218) | ||
NET ASSETS - 100% | $ 2,520,301 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,402,966) - See accompanying schedule | $ 2,520,519 | |
Receivable for investments sold | 14,034 | |
Receivable for fund shares sold | 7,424 | |
Total assets | 2,541,977 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 21,436 | |
Distribution and service plan fees payable | 240 | |
Total liabilities | 21,676 | |
|
|
|
Net Assets | $ 2,520,301 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,454,329 | |
Undistributed net investment income | 468 | |
Accumulated undistributed net realized gain (loss) on investments | (52,049) | |
Net unrealized appreciation (depreciation) on investments | 117,553 | |
Net Assets | $ 2,520,301 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.44 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.44) | $ 55.64 | |
Class T: | $ 52.45 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.45) | $ 54.35 | |
Class C: | $ 52.37 | |
|
|
|
Income Replacement 2024: | $ 52.45 | |
|
|
|
Institutional Class: | $ 52.44 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 29,548 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,329 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 1,333 | |
Expense reductions | (4) | 1,329 |
Net investment income (loss) | 28,219 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 8,051 | |
Capital gain distributions from underlying funds | 29,056 |
|
Total net realized gain (loss) |
| 37,107 |
Change in net unrealized appreciation (depreciation) on underlying funds | 53,821 | |
Net gain (loss) | 90,928 | |
Net increase (decrease) in net assets resulting from operations | $ 119,147 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2024 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 28,219 | $ 32,792 |
Net realized gain (loss) | 37,107 | 92,176 |
Change in net unrealized appreciation (depreciation) | 53,821 | (53,738) |
Net increase (decrease) in net assets resulting from operations | 119,147 | 71,230 |
Distributions to shareholders from net investment income | (28,099) | (32,783) |
Distributions to shareholders from net realized gain | (9,399) | (6,730) |
Total distributions | (37,498) | (39,513) |
Share transactions - net increase (decrease) | 335,144 | 181,392 |
Total increase (decrease) in net assets | 416,793 | 213,109 |
|
|
|
Net Assets | ||
Beginning of period | 2,103,508 | 1,890,399 |
End of period (including undistributed net investment income of $468 and undistributed net investment income of $348, respectively) | $ 2,520,301 | $ 2,103,508 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 | $ 46.97 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .615 | .821 | .809 | .811 | 1.014 | 1.063 |
Net realized and unrealized gain (loss) | 2.227 | .771 | 4.667 | 4.020 | (5.004) | (2.884) |
Total from investment operations | 2.842 | 1.592 | 5.476 | 4.831 | (3.990) | (1.821) |
Distributions from net investment income | (.661) | (.794) | (.819) | (.791) | (1.020) | (1.039) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.882) | (.962) | (1.036) | (.901) | (1.500) | (1.209) |
Net asset value, end of period | $ 52.44 | $ 50.48 | $ 49.85 | $ 45.41 | $ 41.48 | $ 46.97 |
Total Return B, C, D | 5.68% | 3.29% | 12.13% | 11.70% | (8.10)% | (3.77)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.39% A | 1.68% | 1.66% | 1.82% | 2.62% | 2.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 408 | $ 213 | $ 187 | $ 260 | $ 287 | $ 286 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, |
| |||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 | $ 46.97 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .553 | .699 | .685 | .701 | .919 | .966 |
Net realized and unrealized gain (loss) | 2.226 | .769 | 4.672 | 4.025 | (5.010) | (2.903) |
Total from investment operations | 2.779 | 1.468 | 5.357 | 4.726 | (4.091) | (1.937) |
Distributions from net investment income | (.598) | (.680) | (.690) | (.676) | (.919) | (.923) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.819) | (.848) | (.907) | (.786) | (1.399) | (1.093) |
Net asset value, end of period | $ 52.45 | $ 50.49 | $ 49.87 | $ 45.42 | $ 41.48 | $ 46.97 |
Total Return B, C, D | 5.55% | 3.03% | 11.85% | 11.43% | (8.34)% | (3.99)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.14% | 1.43% | 1.41% | 1.57% | 2.37% | 2.11% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 178 | $ 175 | $ 40 | $ 54 | $ 69 | $ 96 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 | $ 46.93 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .426 | .454 | .443 | .476 | .726 | .728 |
Net realized and unrealized gain (loss) | 2.222 | .761 | 4.668 | 4.020 | (5.005) | (2.903) |
Total from investment operations | 2.648 | 1.215 | 5.111 | 4.496 | (4.279) | (2.175) |
Distributions from net investment income | (.487) | (.437) | (.454) | (.456) | (.721) | (.725) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.708) | (.605) | (.671) | (.566) | (1.201) | (.895) |
Net asset value, end of period | $ 52.37 | $ 50.43 | $ 49.82 | $ 45.38 | $ 41.45 | $ 46.93 |
Total Return B, C, D | 5.29% | 2.50% | 11.30% | 10.87% | (8.80)% | (4.45)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.65% A | .93% | .91% | 1.07% | 1.87% | 1.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 110 | $ 170 | $ 172 | $ 159 | $ 147 | $ 233 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2024
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 | $ 46.98 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .682 | .942 | .933 | .924 | 1.118 | 1.166 |
Net realized and unrealized gain (loss) | 2.224 | .775 | 4.668 | 4.020 | (5.011) | (2.868) |
Total from investment operations | 2.906 | 1.717 | 5.601 | 4.944 | (3.893) | (1.702) |
Distributions from net investment income | (.725) | (.919) | (.944) | (.904) | (1.117) | (1.148) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.946) | (1.087) | (1.161) | (1.014) | (1.597) | (1.318) |
Net asset value, end of period | $ 52.45 | $ 50.49 | $ 49.86 | $ 45.42 | $ 41.49 | $ 46.98 |
Total Return B, C | 5.81% | 3.55% | 12.41% | 11.98% | (7.87)% | (3.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.64% A | 1.93% | 1.91% | 2.07% | 2.87% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,799 | $ 1,521 | $ 1,463 | $ 1,026 | $ 749 | $ 714 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 | $ 46.98 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .682 | .944 | .930 | .922 | 1.119 | 1.194 |
Net realized and unrealized gain (loss) | 2.224 | .763 | 4.671 | 4.032 | (5.022) | (2.896) |
Total from investment operations | 2.906 | 1.707 | 5.601 | 4.954 | (3.903) | (1.702) |
Distributions from net investment income | (.725) | (.919) | (.944) | (.904) | (1.117) | (1.148) |
Distributions from net realized gain | (.221) | (.168) | (.217) | (.110) | (.480) | (.170) |
Total distributions | (.946) | (1.087) | (1.161) | (1.014) | (1.597) | (1.318) |
Net asset value, end of period | $ 52.44 | $ 50.48 | $ 49.86 | $ 45.42 | $ 41.48 | $ 46.98 |
Total Return B, C | 5.81% | 3.53% | 12.41% | 12.00% | (7.89)% | (3.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.64% A | 1.93% | 1.91% | 2.07% | 2.87% | 2.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 25 | $ 28 | $ 37 | $ 57 | $ 97 |
Portfolio turnover rate | 70% A | 65% | 26% | 34% | 64% | 41% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2026 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5.8 | 5.9 |
Fidelity Blue Chip Growth Fund | 5.4 | 5.5 |
Fidelity Disciplined Equity Fund | 6.2 | 6.5 |
Fidelity Equity-Income Fund | 8.2 | 8.6 |
Fidelity Series 100 Index Fund | 5.3 | 5.6 |
Fidelity Series Broad Market Opportunities Fund | 9.5 | 9.7 |
Fidelity Series Small Cap Opportunities Fund | 0.8 | 0.8 |
| 41.2 | 42.6 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 5.6 | 6.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.0 | 2.1 |
Fidelity Strategic Income Fund | 2.0 | 2.1 |
| 4.0 | 4.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.5 | 6.1 |
Fidelity Strategic Real Return Fund | 6.5 | 6.4 |
Fidelity Total Bond Fund | 19.3 | 18.7 |
| 32.3 | 31.2 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 8.4 | 8.0 |
Fidelity Short-Term Bond Fund | 8.5 | 8.0 |
| 16.9 | 16.0 |
| ||
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) | |||
Current | |||
| Domestic Equity Funds | 41.2% |
|
| International Equity Funds | 5.6% |
|
| High Yield Fixed-Income Funds | 4.0% |
|
| Investment Grade Fixed-Income Funds | 32.3% |
|
| Short-Term Funds | 16.9% |
|
Six months ago | |||
| Domestic Equity Funds | 42.6% |
|
| International Equity Funds | 6.0% |
|
| High Yield Fixed-Income Funds | 4.2% |
|
| Investment Grade Fixed-Income Funds | 31.2% |
|
| Short-Term Funds | 16.0% |
|
Expected | |||
| Domestic Equity Funds | 40.7% |
|
| International Equity Funds | 5.4% |
|
| High Yield Fixed-Income Funds | 3.9% |
|
| Investment Grade Fixed-Income Funds | 32.5% |
|
| Short-Term Funds | 17.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2026 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 46.8% | |||
Shares | Value | ||
Domestic Equity Funds - 41.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 5,759 | $ 108,213 | |
Fidelity Blue Chip Growth Fund | 1,962 | 100,524 | |
Fidelity Disciplined Equity Fund | 4,510 | 115,902 | |
Fidelity Equity-Income Fund | 3,112 | 154,724 | |
Fidelity Series 100 Index Fund | 10,205 | 100,524 | |
Fidelity Series Broad Market Opportunities Fund | 15,183 | 177,792 | |
Fidelity Series Small Cap Opportunities Fund | 1,310 | 15,379 | |
TOTAL DOMESTIC EQUITY FUNDS | 773,058 | ||
International Equity Funds - 5.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 3,073 | 105,025 | |
TOTAL EQUITY FUNDS (Cost $802,208) |
| ||
Fixed-Income Funds - 36.3% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.0% | |||
Fidelity Capital & Income Fund | 3,919 | 37,696 | |
Fidelity Strategic Income Fund | 3,324 | 37,696 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 75,392 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 32.3% | |||
Fidelity Government Income Fund | 11,503 | $ 120,779 | |
Fidelity Strategic Real Return Fund | 12,362 | 120,779 | |
Fidelity Total Bond Fund | 33,337 | 362,710 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 604,268 | ||
TOTAL FIXED-INCOME FUNDS (Cost $683,953) |
| ||
Short-Term Funds - 16.9% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 158,651 | 158,651 | |
Fidelity Short-Term Bond Fund | 18,471 | 158,850 | |
TOTAL SHORT-TERM FUNDS (Cost $316,462) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,802,623) | 1,875,244 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (105) | ||
NET ASSETS - 100% | $ 1,875,139 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2026 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $1,802,623) - See accompanying schedule | $ 1,875,244 | |
Cash |
| 1 |
Receivable for investments sold | 15,125 | |
Other affiliated receivables | 4 | |
Total assets | 1,890,374 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,778 | |
Payable for fund shares redeemed | 2,353 | |
Distribution and service plan fees payable | 104 | |
Total liabilities | 15,235 | |
|
|
|
Net Assets | $ 1,875,139 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,999,650 | |
Undistributed net investment income | 381 | |
Accumulated undistributed net realized gain (loss) on investments | (197,513) | |
Net unrealized appreciation (depreciation) on investments | 72,621 | |
Net Assets | $ 1,875,139 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.24 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.24) | $ 55.43 | |
Class T: | $ 52.26 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.26) | $ 54.16 | |
Class C: | $ 52.26 | |
|
|
|
Income Replacement 2026: | $ 52.25 | |
|
|
|
Institutional Class: | $ 52.25 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 27,178 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 717 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 721 | |
Expense reductions | (4) | 717 |
Net investment income (loss) | 26,461 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 2,413 | |
Capital gain distributions from underlying funds | 24,755 |
|
Total net realized gain (loss) |
| 27,168 |
Change in net unrealized appreciation (depreciation) on underlying funds | 65,141 | |
Net gain (loss) | 92,309 | |
Net increase (decrease) in net assets resulting from operations | $ 118,770 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 26,461 | $ 34,853 |
Net realized gain (loss) | 27,168 | 45,033 |
Change in net unrealized appreciation (depreciation) | 65,141 | (33,218) |
Net increase (decrease) in net assets resulting from operations | 118,770 | 46,668 |
Distributions to shareholders from net investment income | (26,390) | (34,935) |
Distributions to shareholders from net realized gain | (8,863) | (6,646) |
Total distributions | (35,253) | (41,581) |
Share transactions - net increase (decrease) | 12,554 | (342,188) |
Total increase (decrease) in net assets | 96,071 | (337,101) |
|
|
|
Net Assets | ||
Beginning of period | 1,779,068 | 2,116,169 |
End of period (including undistributed net investment income of $381 and undistributed net investment income of $310, respectively) | $ 1,875,139 | $ 1,779,068 |
Financial Highlights - Class A
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 | $ 46.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .656 | .793 | .750 | .743 | 1.042 | 1.076 |
Net realized and unrealized gain (loss) | 2.364 | .712 | 4.846 | 4.098 | (5.184) | (3.105) |
Total from investment operations | 3.020 | 1.505 | 5.596 | 4.841 | (4.142) | (2.029) |
Distributions from net investment income | (.643) | (.789) | (.796) | (.771) | (1.028) | (1.031) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.870) | (.945) | (.996) | (.881) | (1.648) | (1.211) |
Net asset value, end of period | $ 52.24 | $ 50.09 | $ 49.53 | $ 44.93 | $ 40.97 | $ 46.76 |
Total Return B, C, D | 6.08% | 3.13% | 12.52% | 11.87% | (8.56)% | (4.19)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.57% A | 1.64% | 1.55% | 1.68% | 2.70% | 2.36% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 305 | $ 139 | $ 108 | $ 45 | $ 69 | $ 131 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.76 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .603 | .668 | .630 | .638 | .944 | .966 |
Net realized and unrealized gain (loss) | 2.361 | .713 | 4.851 | 4.092 | (5.184) | (3.110) |
Total from investment operations | 2.964 | 1.381 | 5.481 | 4.730 | (4.240) | (2.144) |
Distributions from net investment income | (.557) | (.675) | (.671) | (.670) | (.930) | (.916) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.784) | (.831) | (.871) | (.780) | (1.550) | (1.096) |
Net asset value, end of period | $ 52.26 | $ 50.08 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.76 |
Total Return B, C, D | 5.96% | 2.87% | 12.26% | 11.59% | (8.79)% | (4.41)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.32% A | 1.39% | 1.30% | 1.44% | 2.45% | 2.11% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 77 | $ 298 | $ 130 | $ 116 | $ 55 | $ 96 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 | $ 46.72 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .455 | .430 | .387 | .412 | .757 | .723 |
Net realized and unrealized gain (loss) | 2.376 | .730 | 4.848 | 4.087 | (5.183) | (3.090) |
Total from investment operations | 2.831 | 1.160 | 5.235 | 4.499 | (4.426) | (2.367) |
Distributions from net investment income | (.464) | (.374) | (.435) | (.449) | (.724) | (.733) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.691) | (.530) | (.635) | (.559) | (1.344) | (.913) |
Net asset value, end of period | $ 52.26 | $ 50.12 | $ 49.49 | $ 44.89 | $ 40.95 | $ 46.72 |
Total Return B, C, D | 5.69% | 2.40% | 11.70% | 11.01% | (9.25)% | (4.85)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.03% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.79% A | .89% | .80% | .94% | 1.95% | 1.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10 | $ 9 | $ 184 | $ 174 | $ 183 | $ 485 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2026
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .723 | .913 | .878 | .856 | 1.138 | 1.168 |
Net realized and unrealized gain (loss) | 2.369 | .711 | 4.844 | 4.091 | (5.190) | (3.079) |
Total from investment operations | 3.092 | 1.624 | 5.722 | 4.947 | (4.052) | (1.911) |
Distributions from net investment income | (.705) | (.908) | (.912) | (.887) | (1.128) | (1.139) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.932) | (1.064) | (1.112) | (.997) | (1.748) | (1.319) |
Net asset value, end of period | $ 52.25 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 |
Total Return B, C | 6.23% | 3.39% | 12.82% | 12.14% | (8.34)% | (3.96)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.82% A | 1.88% | 1.80% | 1.94% | 2.95% | 2.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,457 | $ 1,309 | $ 1,666 | $ 622 | $ 357 | $ 783 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.09 | $ 49.54 | $ 44.92 | $ 40.97 | $ 46.77 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .723 | .912 | .870 | .855 | 1.136 | 1.196 |
Net realized and unrealized gain (loss) | 2.369 | .712 | 4.852 | 4.092 | (5.188) | (3.107) |
Total from investment operations | 3.092 | 1.624 | 5.722 | 4.947 | (4.052) | (1.911) |
Distributions from net investment income | (.705) | (.908) | (.912) | (.887) | (1.128) | (1.139) |
Distributions from net realized gain | (.227) | (.156) | (.200) | (.110) | (.620) | (.180) |
Total distributions | (.932) | (1.064) | (1.112) | (.997) | (1.748) | (1.319) |
Net asset value, end of period | $ 52.25 | $ 50.09 | $ 49.53 | $ 44.92 | $ 40.97 | $ 46.77 |
Total Return B, C | 6.23% | 3.39% | 12.82% | 12.14% | (8.34)% | (3.96)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.82% A | 1.88% | 1.80% | 1.94% | 2.95% | 2.61% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 27 | $ 36 | $ 56 | $ 96 |
Portfolio turnover rate | 44% A | 60% | 25% | 61% | 26% | 21% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2028 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.0 | 6.1 |
Fidelity Blue Chip Growth Fund | 5.6 | 5.6 |
Fidelity Disciplined Equity Fund | 6.4 | 6.7 |
Fidelity Equity-Income Fund | 8.6 | 8.9 |
Fidelity Series 100 Index Fund | 5.6 | 5.8 |
Fidelity Series Broad Market Opportunities Fund | 9.9 | 10.1 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 43.0 | 44.1 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 6.4 | 6.8 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.2 | 2.3 |
Fidelity Strategic Income Fund | 2.2 | 2.2 |
| 4.4 | 4.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.1 | 5.9 |
Fidelity Strategic Real Return Fund | 6.1 | 6.1 |
Fidelity Total Bond Fund | 18.4 | 17.9 |
| 30.6 | 29.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 7.8 | 7.3 |
Fidelity Short-Term Bond Fund | 7.8 | 7.4 |
| 15.6 | 14.7 |
| ||
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 44.1% |
|
| International Equity Funds | 6.8% |
|
| High Yield Fixed-Income Funds | 4.5% |
|
| Investment Grade Fixed-Income Funds | 29.9% |
|
| Short-Term Funds | 14.7% |
|
Expected | |||
| Domestic Equity Funds | 42.6% |
|
| International Equity Funds | 6.2% |
|
| High Yield Fixed-Income Funds | 4.3% |
|
| Investment Grade Fixed-Income Funds | 30.9% |
|
| Short-Term Funds | 16.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2028 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 49.4% | |||
Shares | Value | ||
Domestic Equity Funds - 43.0% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 20,185 | $ 379,285 | |
Fidelity Blue Chip Growth Fund | 6,874 | 352,148 | |
Fidelity Disciplined Equity Fund | 15,814 | 406,422 | |
Fidelity Equity-Income Fund | 10,903 | 542,106 | |
Fidelity Series 100 Index Fund | 35,751 | 352,148 | |
Fidelity Series Broad Market Opportunities Fund | 53,246 | 623,516 | |
Fidelity Series Small Cap Opportunities Fund | 4,623 | 54,274 | |
TOTAL DOMESTIC EQUITY FUNDS | 2,709,899 | ||
International Equity Funds - 6.4% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 11,817 | 403,897 | |
TOTAL EQUITY FUNDS (Cost $2,742,362) |
| ||
Fixed-Income Funds - 35.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.4% | |||
Fidelity Capital & Income Fund | 14,432 | 138,840 | |
Fidelity Strategic Income Fund | 12,243 | 138,840 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 277,680 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 30.6% | |||
Fidelity Government Income Fund | 36,783 | $ 386,227 | |
Fidelity Strategic Real Return Fund | 39,532 | 386,227 | |
Fidelity Total Bond Fund | 106,612 | 1,159,939 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,932,393 | ||
TOTAL FIXED-INCOME FUNDS (Cost $2,157,389) |
| ||
Short-Term Funds - 15.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 493,512 | 493,512 | |
Fidelity Short-Term Bond Fund | 57,385 | 493,512 | |
TOTAL SHORT-TERM FUNDS (Cost $978,686) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $5,878,437) | 6,310,893 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (100) | ||
NET ASSETS - 100% | $ 6,310,793 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2028 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $5,878,437) - See accompanying schedule | $ 6,310,893 | |
Cash |
| 2 |
Receivable for investments sold | 39,032 | |
Total assets | 6,349,927 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 39,029 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 39,134 | |
|
|
|
Net Assets | $ 6,310,793 | |
Net Assets consist of: |
| |
Paid in capital | $ 6,389,577 | |
Undistributed net investment income | 1,231 | |
Accumulated undistributed net realized gain (loss) on investments | (512,471) | |
Net unrealized appreciation (depreciation) on investments | 432,456 | |
Net Assets | $ 6,310,793 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.76 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.76) | $ 55.98 | |
Class T: | $ 52.78 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.78) | $ 54.69 | |
Class C: | $ 52.75 | |
|
|
|
Income Replacement 2028: | $ 52.76 | |
|
|
|
Institutional Class: | $ 52.76 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 84,352 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 644 | |
Independent trustees' compensation | 11 | |
Total expenses before reductions | 655 | |
Expense reductions | (11) | 644 |
Net investment income (loss) | 83,708 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 16,736 | |
Capital gain distributions from underlying funds | 74,432 |
|
Total net realized gain (loss) |
| 91,168 |
Change in net unrealized appreciation (depreciation) on underlying funds | 205,577 | |
Net gain (loss) | 296,745 | |
Net increase (decrease) in net assets resulting from operations | $ 380,453 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 83,708 | $ 100,790 |
Net realized gain (loss) | 91,168 | 155,086 |
Change in net unrealized appreciation (depreciation) | 205,577 | (131,252) |
Net increase (decrease) in net assets resulting from operations | 380,453 | 124,624 |
Distributions to shareholders from net investment income | (83,473) | (101,077) |
Distributions to shareholders from net realized gain | (26,559) | (17,138) |
Total distributions | (110,032) | (118,215) |
Share transactions - net increase (decrease) | 316,974 | (405,722) |
Total increase (decrease) in net assets | 587,395 | (399,313) |
|
|
|
Net Assets | ||
Beginning of period | 5,723,398 | 6,122,711 |
End of period (including undistributed net investment income of $1,231 and undistributed net investment income of $996, respectively) | $ 6,310,793 | $ 5,723,398 |
Financial Highlights - Class A
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 | $ 46.81 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .663 | .792 | .802 | .789 | 1.000 | .966 |
Net realized and unrealized gain (loss) | 2.547 | .666 | 4.972 | 4.116 | (5.341) | (3.085) |
Total from investment operations | 3.210 | 1.458 | 5.774 | 4.905 | (4.341) | (2.119) |
Distributions from net investment income | (.653) | (.794) | (.815) | (.785) | (.979) | (.911) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.880) | (.948) | (1.024) | (.895) | (1.309) | (1.071) |
Net asset value, end of period | $ 52.76 | $ 50.43 | $ 49.92 | $ 45.17 | $ 41.16 | $ 46.81 |
Total Return B, C, D | 6.42% | 3.02% | 12.85% | 11.96% | (8.93)% | (4.36)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.56% A | 1.63% | 1.65% | 1.78% | 2.60% | 2.16% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 142 | $ 133 | $ 133 | $ 359 | $ 278 | $ 371 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 | $ 46.80 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .600 | .672 | .682 | .678 | .905 | .847 |
Net realized and unrealized gain (loss) | 2.537 | .678 | 4.975 | 4.107 | (5.340) | (3.079) |
Total from investment operations | 3.137 | 1.350 | 5.657 | 4.785 | (4.435) | (2.232) |
Distributions from net investment income | (.590) | (.676) | (.668) | (.675) | (.875) | (.808) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.817) | (.830) | (.877) | (.785) | (1.205) | (.968) |
Net asset value, end of period | $ 52.78 | $ 50.46 | $ 49.94 | $ 45.16 | $ 41.16 | $ 46.80 |
Total Return B, C, D | 6.27% | 2.79% | 12.57% | 11.66% | (9.15)% | (4.57)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.32% A | 1.38% | 1.40% | 1.53% | 2.35% | 1.91% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 133 | $ 128 | $ 130 | $ 328 | $ 311 | $ 606 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 | $ 46.79 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .470 | .427 | .438 | .454 | .711 | .639 |
Net realized and unrealized gain (loss) | 2.542 | .662 | 4.974 | 4.117 | (5.333) | (3.104) |
Total from investment operations | 3.012 | 1.089 | 5.412 | 4.571 | (4.622) | (2.465) |
Distributions from net investment income | (.475) | (.435) | (.453) | (.431) | (.678) | (.585) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.702) | (.589) | (.662) | (.541) | (1.008) | (.745) |
Net asset value, end of period | $ 52.75 | $ 50.44 | $ 49.94 | $ 45.19 | $ 41.16 | $ 46.79 |
Total Return B, C, D | 6.01% | 2.24% | 12.01% | 11.13% | (9.60)% | (5.02)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.81% A | .88% | .90% | 1.02% | 1.84% | 1.41% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 33 | $ 49 | $ 51 | $ 86 | $ 150 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2028
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .914 | .925 | .900 | 1.087 | 1.067 |
Net realized and unrealized gain (loss) | 2.537 | .680 | 4.965 | 4.115 | (5.330) | (3.072) |
Total from investment operations | 3.265 | 1.594 | 5.890 | 5.015 | (4.243) | (2.005) |
Distributions from net investment income | (.718) | (.920) | (.941) | (.895) | (1.077) | (1.015) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.945) | (1.074) | (1.150) | (1.005) | (1.407) | (1.175) |
Net asset value, end of period | $ 52.76 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 |
Total Return B, C | 6.53% | 3.30% | 13.12% | 12.24% | (8.69)% | (4.14)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.81% A | 1.88% | 1.90% | 2.03% | 2.85% | 2.40% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,985 | $ 5,405 | $ 5,783 | $ 5,383 | $ 5,641 | $ 6,068 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .916 | .923 | .899 | 1.097 | 1.101 |
Net realized and unrealized gain (loss) | 2.537 | .678 | 4.967 | 4.116 | (5.340) | (3.106) |
Total from investment operations | 3.265 | 1.594 | 5.890 | 5.015 | (4.243) | (2.005) |
Distributions from net investment income | (.718) | (.920) | (.941) | (.895) | (1.077) | (1.015) |
Distributions from net realized gain | (.227) | (.154) | (.209) | (.110) | (.330) | (.160) |
Total distributions | (.945) | (1.074) | (1.150) | (1.005) | (1.407) | (1.175) |
Net asset value, end of period | $ 52.76 | $ 50.44 | $ 49.92 | $ 45.18 | $ 41.17 | $ 46.82 |
Total Return B, C | 6.53% | 3.30% | 13.12% | 12.24% | (8.69)% | (4.14)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.81% A | 1.88% | 1.90% | 2.03% | 2.85% | 2.40% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 27 | $ 36 | $ 56 | $ 96 |
Portfolio turnover rate | 18% A | 46% | 17% | 16% | 53% | 33% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.2 | 6.3 |
Fidelity Blue Chip Growth Fund | 5.7 | 5.8 |
Fidelity Disciplined Equity Fund | 6.6 | 6.9 |
Fidelity Equity-Income Fund | 8.9 | 9.2 |
Fidelity Series 100 Index Fund | 5.7 | 5.9 |
Fidelity Series Broad Market Opportunities Fund | 10.2 | 10.3 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 44.2 | 45.3 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 7.2 | 7.5 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.4 | 2.4 |
Fidelity Strategic Income Fund | 2.4 | 2.4 |
| 4.8 | 4.8 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 6.0 | 5.7 |
Fidelity Strategic Real Return Fund | 6.0 | 6.0 |
Fidelity Total Bond Fund | 17.6 | 17.4 |
| 29.6 | 29.1 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 7.1 | 6.6 |
Fidelity Short-Term Bond Fund | 7.1 | 6.7 |
| 14.2 | 13.3 |
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 45.3% |
|
| International Equity Funds | 7.5% |
|
| High Yield Fixed-Income Funds | 4.8% |
|
| Investment Grade Fixed-Income Funds | 29.1% |
|
| Short-Term Funds | 13.3% |
|
Expected | |||
| Domestic Equity Funds | 43.9% |
|
| International Equity Funds | 7.0% |
|
| High Yield Fixed-Income Funds | 4.6% |
|
| Investment Grade Fixed-Income Funds | 29.9% |
|
| Short-Term Funds | 14.6% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2030 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 51.4% | |||
Shares | Value | ||
Domestic Equity Funds - 44.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 13,642 | $ 256,338 | |
Fidelity Blue Chip Growth Fund | 4,648 | 238,117 | |
Fidelity Disciplined Equity Fund | 10,699 | 274,973 | |
Fidelity Equity-Income Fund | 7,371 | 366,492 | |
Fidelity Series 100 Index Fund | 24,174 | 238,117 | |
Fidelity Series Broad Market Opportunities Fund | 35,965 | 421,156 | |
Fidelity Series Small Cap Opportunities Fund | 3,104 | 36,442 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,831,635 | ||
International Equity Funds - 7.2% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 8,699 | 297,335 | |
TOTAL EQUITY FUNDS (Cost $1,756,271) |
| ||
Fixed-Income Funds - 34.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 4.8% | |||
Fidelity Capital & Income Fund | 10,159 | 97,731 | |
Fidelity Strategic Income Fund | 8,618 | 97,731 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 195,462 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 29.6% | |||
Fidelity Government Income Fund | 23,388 | $ 245,571 | |
Fidelity Strategic Real Return Fund | 25,135 | 245,571 | |
Fidelity Total Bond Fund | 67,712 | 736,710 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,227,852 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,393,010) |
| ||
Short-Term Funds - 14.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 294,436 | 294,436 | |
Fidelity Short-Term Bond Fund | 34,237 | 294,436 | |
TOTAL SHORT-TERM FUNDS (Cost $583,716) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,732,997) | 4,141,156 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (262) | ||
NET ASSETS - 100% | $ 4,140,894 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,732,997) - See accompanying schedule | $ 4,141,156 | |
Cash | 1 | |
Receivable for investments sold | 25,682 | |
Other affiliated receivables | 12 | |
Total assets | 4,166,851 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 25,678 | |
Distribution and service plan fees payable | 279 | |
Total liabilities | 25,957 | |
|
|
|
Net Assets | $ 4,140,894 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,894,972 | |
Undistributed net investment income | 793 | |
Accumulated undistributed net realized gain (loss) on investments | (163,030) | |
Net unrealized appreciation (depreciation) on investments | 408,159 | |
Net Assets | $ 4,140,894 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.54) | $ 55.75 | |
Class T: | $ 52.63 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.63) | $ 54.54 | |
Class C: | $ 52.46 | |
|
|
|
Income Replacement 2030: | $ 52.54 | |
|
|
|
Institutional Class: | $ 52.54 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 57,144 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,688 | |
Independent trustees' compensation | 7 | |
Total expenses before reductions | 1,695 | |
Expense reductions | (7) | 1,688 |
Net investment income (loss) | 55,456 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 9,570 | |
Capital gain distributions from underlying funds | 49,814 |
|
Total net realized gain (loss) |
| 59,384 |
Change in net unrealized appreciation (depreciation) on underlying funds | 142,973 | |
Net gain (loss) | 202,357 | |
Net increase (decrease) in net assets resulting from operations | $ 257,813 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2030 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 55,456 | $ 77,258 |
Net realized gain (loss) | 59,384 | (19,660) |
Change in net unrealized appreciation (depreciation) | 142,973 | 71,227 |
Net increase (decrease) in net assets resulting from operations | 257,813 | 128,825 |
Distributions to shareholders from net investment income | (55,341) | (77,373) |
Distributions to shareholders from net realized gain | (17,604) | (13,766) |
Total distributions | (72,945) | (91,139) |
Share transactions - net increase (decrease) | (36,609) | (390,844) |
Total increase (decrease) in net assets | 148,259 | (353,158) |
|
|
|
Net Assets | ||
Beginning of period | 3,992,635 | 4,345,793 |
End of period (including undistributed net investment income of $793 and undistributed net investment income of $678, respectively) | $ 4,140,894 | $ 3,992,635 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .667 | .815 | .791 | .718 | .978 | 1.034 |
Net realized and unrealized gain (loss) | 2.656 | .598 | 5.066 | 4.180 | (5.404) | (3.239) |
Total from investment operations | 3.323 | 1.413 | 5.857 | 4.898 | (4.426) | (2.205) |
Distributions from net investment income | (.675) | (.796) | (.801) | (.713) | (1.004) | (.995) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.903) | (.943) | (.977) | (.818) | (1.494) | (1.185) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.65 | $ 44.77 | $ 40.69 | $ 46.61 |
Total Return B, C, D | 6.69% | 2.94% | 13.15% | 12.08% | (9.22)% | (4.55)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.59% A | 1.68% | 1.63% | 1.63% | 2.57% | 2.26% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 90 | $ 86 | $ 72 | $ 66 | $ 55 | $ 95 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .602 | .715 | .655 | .603 | .881 | .920 |
Net realized and unrealized gain (loss) | 2.660 | .598 | 5.076 | 4.182 | (5.402) | (3.234) |
Total from investment operations | 3.262 | 1.313 | 5.731 | 4.785 | (4.521) | (2.314) |
Distributions from net investment income | (.604) | (.636) | (.665) | (.590) | (.909) | (.886) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.832) | (.783) | (.841) | (.695) | (1.399) | (1.076) |
Net asset value, end of period | $ 52.63 | $ 50.20 | $ 49.67 | $ 44.78 | $ 40.69 | $ 46.61 |
Total Return B, C, D | 6.55% | 2.72% | 12.85% | 11.79% | (9.45)% | (4.76)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .46% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .46% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.34% A | 1.48% | 1.38% | 1.37% | 2.32% | 2.01% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14 | $ 13 | $ 15 | $ 45 | $ 71 | $ 95 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 | $ 46.58 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .474 | .451 | .428 | .385 | .693 | .682 |
Net realized and unrealized gain (loss) | 2.646 | .604 | 5.060 | 4.185 | (5.400) | (3.227) |
Total from investment operations | 3.120 | 1.055 | 5.488 | 4.570 | (4.707) | (2.545) |
Distributions from net investment income | (.502) | (.448) | (.452) | (.385) | (.713) | (.685) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.730) | (.595) | (.628) | (.490) | (1.203) | (.875) |
Net asset value, end of period | $ 52.46 | $ 50.07 | $ 49.61 | $ 44.75 | $ 40.67 | $ 46.58 |
Total Return B, C, D | 6.28% | 2.19% | 12.30% | 11.26% | (9.91)% | (5.21)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 1.84% A | .93% | .88% | .88% | 1.82% | 1.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 306 | $ 312 | $ 270 | $ 186 | $ 178 | $ 297 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2030
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .732 | .935 | .917 | .821 | 1.101 | 1.117 |
Net realized and unrealized gain (loss) | 2.654 | .608 | 5.062 | 4.178 | (5.429) | (3.209) |
Total from investment operations | 3.386 | 1.543 | 5.979 | 4.999 | (4.328) | (2.092) |
Distributions from net investment income | (.738) | (.916) | (.923) | (.824) | (1.102) | (1.108) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.966) | (1.063) | (1.099) | (.929) | (1.592) | (1.298) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.64 | $ 44.76 | $ 40.69 | $ 46.61 |
Total Return B, C | 6.82% | 3.22% | 13.43% | 12.34% | (8.99)% | (4.33)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.84% A | 1.93% | 1.88% | 1.88% | 2.82% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,677 | $ 3,558 | $ 3,962 | $ 1,628 | $ 303 | $ 653 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 | $ 46.61 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .728 | .936 | .911 | .825 | 1.074 | 1.149 |
Net realized and unrealized gain (loss) | 2.658 | .607 | 5.058 | 4.184 | (5.402) | (3.241) |
Total from investment operations | 3.386 | 1.543 | 5.969 | 5.009 | (4.328) | (2.092) |
Distributions from net investment income | (.738) | (.916) | (.923) | (.824) | (1.102) | (1.108) |
Distributions from net realized gain | (.228) | (.147) | (.176) | (.105) | (.490) | (.190) |
Total distributions | (.966) | (1.063) | (1.099) | (.929) | (1.592) | (1.298) |
Net asset value, end of period | $ 52.54 | $ 50.12 | $ 49.64 | $ 44.77 | $ 40.69 | $ 46.61 |
Total Return B, C | 6.82% | 3.22% | 13.41% | 12.36% | (8.99)% | (4.33)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 2.84% A | 1.93% | 1.88% | 1.88% | 2.82% | 2.51% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 54 | $ 24 | $ 27 | $ 36 | $ 55 | $ 96 |
Portfolio turnover rate | 35% A | 50% | 24% | 31% | 53% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.3 | 6.4 |
Fidelity Blue Chip Growth Fund | 5.9 | 5.9 |
Fidelity Disciplined Equity Fund | 6.8 | 7.0 |
Fidelity Equity-Income Fund | 9.0 | 9.4 |
Fidelity Series 100 Index Fund | 5.9 | 6.0 |
Fidelity Series Broad Market Opportunities Fund | 10.4 | 10.6 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 45.2 | 46.2 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 8.0 | 8.4 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.5 | 2.5 |
Fidelity Strategic Income Fund | 2.5 | 2.5 |
| 5.0 | 5.0 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.7 | 5.5 |
Fidelity Strategic Real Return Fund | 5.7 | 5.7 |
Fidelity Total Bond Fund | 17.0 | 16.7 |
| 28.4 | 27.9 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 6.7 | 6.2 |
Fidelity Short-Term Bond Fund | 6.7 | 6.3 |
| 13.4 | 12.5 |
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) | |||
Current | |||
| Domestic Equity Funds | 45.2% |
|
| International Equity Funds | 8.0% |
|
| High Yield Fixed-Income Funds | 5.0% |
|
| Investment Grade Fixed-Income Funds | 28.4% |
|
| Short-Term Funds | 13.4% |
|
Six months ago | |||
| Domestic Equity Funds | 46.2% |
|
| International Equity Funds | 8.4% |
|
| High Yield Fixed-Income Funds | 5.0% |
|
| Investment Grade Fixed-Income Funds | 27.9% |
|
| Short-Term Funds | 12.5% |
|
Expected | |||
| Domestic Equity Funds | 45.0% |
|
| International Equity Funds | 7.8% |
|
| High Yield Fixed-Income Funds | 4.9% |
|
| Investment Grade Fixed-Income Funds | 28.9% |
|
| 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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2032 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 53.2% | |||
Shares | Value | ||
Domestic Equity Funds - 45.2% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 14,058 | $ 264,146 | |
Fidelity Blue Chip Growth Fund | 4,790 | 245,367 | |
Fidelity Disciplined Equity Fund | 11,009 | 282,924 | |
Fidelity Equity-Income Fund | 7,587 | 377,232 | |
Fidelity Series 100 Index Fund | 24,910 | 245,367 | |
Fidelity Series Broad Market Opportunities Fund | 37,061 | 433,983 | |
Fidelity Series Small Cap Opportunities Fund | 3,199 | 37,556 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,886,575 | ||
International Equity Funds - 8.0% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 9,706 | 331,747 | |
TOTAL EQUITY FUNDS (Cost $1,971,752) |
| ||
Fixed-Income Funds - 33.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.0% | |||
Fidelity Capital & Income Fund | 10,801 | 103,906 | |
Fidelity Strategic Income Fund | 9,163 | 103,906 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 207,812 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 28.4% | |||
Fidelity Government Income Fund | 22,693 | $ 238,274 | |
Fidelity Strategic Real Return Fund | 24,388 | 238,273 | |
Fidelity Total Bond Fund | 65,662 | 714,402 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,190,949 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,396,646) |
| ||
Short-Term Funds - 13.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 277,916 | 277,916 | |
Fidelity Short-Term Bond Fund | 32,316 | 277,916 | |
TOTAL SHORT-TERM FUNDS (Cost $553,676) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,922,074) | 4,172,915 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (641) | ||
NET ASSETS - 100% | $ 4,172,274 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,922,074) - See accompanying schedule | $ 4,172,915 | |
Receivable for investments sold | 31,080 | |
Receivable for fund shares sold | 2,000 | |
Total assets | 4,205,995 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 25,554 | |
Payable for fund shares redeemed | 8,062 | |
Distribution and service plan fees payable | 105 | |
Total liabilities | 33,721 | |
|
|
|
Net Assets | $ 4,172,274 | |
Net Assets consist of: |
| |
Paid in capital | $ 4,047,604 | |
Undistributed net investment income | 804 | |
Accumulated undistributed net realized gain (loss) on investments | (126,975) | |
Net unrealized appreciation (depreciation) on investments | 250,841 | |
Net Assets | $ 4,172,274 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 50.16 | |
|
|
|
Maximum offering price per share (100/94.25 of $50.16) | $ 53.22 | |
Class T: | $ 50.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $50.19) | $ 52.01 | |
Class C: | $ 50.15 | |
|
|
|
Income Replacement 2032: | $ 50.17 | |
|
|
|
Institutional Class: | $ 50.17 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 59,207 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 610 | |
Independent trustees' compensation | 7 | |
Total expenses before reductions | 617 | |
Expense reductions | (7) | 610 |
Net investment income (loss) | 58,597 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 23,622 | |
Capital gain distributions from underlying funds | 49,199 |
|
Total net realized gain (loss) |
| 72,821 |
Change in net unrealized appreciation (depreciation) on underlying funds | 135,592 | |
Net gain (loss) | 208,413 | |
Net increase (decrease) in net assets resulting from operations | $ 267,010 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2032 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 58,597 | $ 39,662 |
Net realized gain (loss) | 72,821 | 100,607 |
Change in net unrealized appreciation (depreciation) | 135,592 | (41,402) |
Net increase (decrease) in net assets resulting from operations | 267,010 | 98,867 |
Distributions to shareholders from net investment income | (58,342) | (39,403) |
Distributions to shareholders from net realized gain | (32,634) | (105,815) |
Total distributions | (90,976) | (145,218) |
Share transactions - net increase (decrease) | 696,389 | 1,767,286 |
Total increase (decrease) in net assets | 872,423 | 1,720,935 |
|
|
|
Net Assets | ||
Beginning of period | 3,299,851 | 1,578,916 |
End of period (including undistributed net investment income of $804 and undistributed net investment income of $549, respectively) | $ 4,172,274 | $ 3,299,851 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 | $ 46.52 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .702 | .717 | .796 | .727 | .930 | 1.019 |
Net realized and unrealized gain (loss) | 2.585 | .618 | 5.086 | 4.154 | (5.570) | (3.322) |
Total from investment operations | 3.287 | 1.335 | 5.882 | 4.881 | (4.640) | (2.303) |
Distributions from net investment income | (.633) | (.770) | (.812) | (.796) | (.960) | (.987) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.037) | (2.495) | (1.002) | (.901) | (1.670) | (1.177) |
Net asset value, end of period | $ 50.16 | $ 47.91 | $ 49.07 | $ 44.19 | $ 40.21 | $ 46.52 |
Total Return B, C, D | 6.91% | 2.85% | 13.38% | 12.19% | (9.66)% | (4.75)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .37% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.86% A | 1.51% | 1.66% | 1.67% | 2.43% | 2.27% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 224 | $ 217 | $ 214 | $ 200 | $ 183 | $ 402 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 | $ 46.52 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .641 | .599 | .676 | .620 | .821 | .918 |
Net realized and unrealized gain (loss) | 2.582 | .599 | 5.107 | 4.147 | (5.548) | (3.339) |
Total from investment operations | 3.223 | 1.198 | 5.783 | 4.767 | (4.727) | (2.421) |
Distributions from net investment income | (.569) | (.633) | (.693) | (.682) | (.863) | (.869) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (.973) | (2.358) | (.883) | (.787) | (1.573) | (1.059) |
Net asset value, end of period | $ 50.19 | $ 47.94 | $ 49.10 | $ 44.20 | $ 40.22 | $ 46.52 |
Total Return B, C, D | 6.79% | 2.55% | 13.14% | 11.90% | (9.88)% | (4.98)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .62% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.61% A | 1.26% | 1.41% | 1.43% | 2.18% | 2.02% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 24 | $ 27 | $ 35 | $ 54 | $ 95 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 | $ 46.51 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .519 | .358 | .434 | .403 | .624 | .690 |
Net realized and unrealized gain (loss) | 2.576 | .615 | 5.102 | 4.143 | (5.532) | (3.342) |
Total from investment operations | 3.095 | .973 | 5.536 | 4.546 | (4.908) | (2.652) |
Distributions from net investment income | (.471) | (.438) | (.446) | (.451) | (.662) | (.648) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (.875) | (2.163) | (.636) | (.556) | (1.372) | (.838) |
Net asset value, end of period | $ 50.15 | $ 47.93 | $ 49.12 | $ 44.22 | $ 40.23 | $ 46.51 |
Total Return B, C, D | 6.52% | 2.07% | 12.55% | 11.33% | (10.32)% | (5.42)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.12% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.11% A | .76% | .91% | .93% | 1.68% | 1.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 56 | $ 52 | $ 22 | $ 29 | $ 46 | $ 95 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2032
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .763 | .836 | .918 | .832 | 1.014 | 1.122 |
Net realized and unrealized gain (loss) | 2.585 | .618 | 5.095 | 4.147 | (5.557) | (3.310) |
Total from investment operations | 3.348 | 1.454 | 6.013 | 4.979 | (4.543) | (2.188) |
Distributions from net investment income | (.694) | (.889) | (.933) | (.904) | (1.057) | (1.092) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.098) | (2.614) | (1.123) | (1.009) | (1.767) | (1.282) |
Net asset value, end of period | $ 50.17 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 |
Total Return B, C | 7.05% | 3.10% | 13.68% | 12.44% | (9.43)% | (4.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .12% | .00% F | .00% F | .00% F | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.11% A | 1.76% | 1.91% | 1.92% | 2.68% | 2.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,850 | $ 2,991 | $ 1,297 | $ 1,391 | $ 1,285 | $ 731 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .764 | .835 | .904 | .834 | 1.009 | 1.147 |
Net realized and unrealized gain (loss) | 2.584 | .619 | 5.109 | 4.145 | (5.552) | (3.335) |
Total from investment operations | 3.348 | 1.454 | 6.013 | 4.979 | (4.543) | (2.188) |
Distributions from net investment income | (.694) | (.889) | (.933) | (.904) | (1.057) | (1.092) |
Distributions from net realized gain | (.404) | (1.725) | (.190) | (.105) | (.710) | (.190) |
Total distributions | (1.098) | (2.614) | (1.123) | (1.009) | (1.767) | (1.282) |
Net asset value, end of period | $ 50.17 | $ 47.92 | $ 49.08 | $ 44.19 | $ 40.22 | $ 46.53 |
Total Return B, C | 7.07% | 3.10% | 13.68% | 12.44% | (9.43)% | (4.53)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .12% | .00% F | .00% F | .00% F | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.11% A | 1.76% | 1.91% | 1.92% | 2.68% | 2.52% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18 | $ 17 | $ 19 | $ 61 | $ 55 | $ 96 |
Portfolio turnover rate | 30% A | 37% | 45% | 95% | 82% | 23% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.4 | 6.5 |
Fidelity Blue Chip Growth Fund | 6.0 | 6.0 |
Fidelity Disciplined Equity Fund | 6.9 | 7.1 |
Fidelity Equity-Income Fund | 9.2 | 9.5 |
Fidelity Series 100 Index Fund | 6.0 | 6.2 |
Fidelity Series Broad Market Opportunities Fund | 10.6 | 10.7 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.0 | 46.9 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 8.8 | 9.2 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.6 | 2.7 |
Fidelity Strategic Income Fund | 2.6 | 2.6 |
| 5.2 | 5.3 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.6 | 5.4 |
Fidelity Strategic Real Return Fund | 5.6 | 5.6 |
Fidelity Total Bond Fund | 16.6 | 16.3 |
| 27.8 | 27.3 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 6.1 | 5.6 |
Fidelity Short-Term Bond Fund | 6.1 | 5.7 |
| 12.2 | 11.3 |
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) | |||
Current | |||
| Domestic Equity Funds | 46.0% |
|
| International Equity Funds | 8.8% |
|
| High Yield Fixed-Income Funds | 5.2% |
|
| Investment Grade Fixed-Income Funds | 27.8% |
|
| Short-Term Funds | 12.2% |
|
Six months ago | |||
| Domestic Equity Funds | 46.9% |
|
| International Equity Funds | 9.2% |
|
| High Yield Fixed-Income Funds | 5.3% |
|
| Investment Grade Fixed-Income Funds | 27.3% |
|
| Short-Term Funds | 11.3% |
|
Expected | |||
| Domestic Equity Funds | 45.8% |
|
| International Equity Funds | 8.5% |
|
| High Yield Fixed-Income Funds | 5.2% |
|
| Investment Grade Fixed-Income Funds | 28.0% |
|
| Short-Term Funds | 12.5% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2034 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 54.8% | |||
Shares | Value | ||
Domestic Equity Funds - 46.0% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 9,384 | $ 176,324 | |
Fidelity Blue Chip Growth Fund | 3,196 | 163,730 | |
Fidelity Disciplined Equity Fund | 7,351 | 188,919 | |
Fidelity Equity-Income Fund | 5,066 | 251,892 | |
Fidelity Series 100 Index Fund | 16,622 | 163,730 | |
Fidelity Series Broad Market Opportunities Fund | 24,761 | 289,949 | |
Fidelity Series Small Cap Opportunities Fund | 2,146 | 25,189 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,259,733 | ||
International Equity Funds - 8.8% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 7,001 | 239,297 | |
TOTAL EQUITY FUNDS (Cost $1,171,581) |
| ||
Fixed-Income Funds - 33.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.2% | |||
Fidelity Capital & Income Fund | 7,428 | 71,461 | |
Fidelity Strategic Income Fund | 6,302 | 71,461 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 142,922 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 27.8% | |||
Fidelity Government Income Fund | 14,550 | $ 152,778 | |
Fidelity Strategic Real Return Fund | 15,637 | 152,778 | |
Fidelity Total Bond Fund | 42,101 | 458,057 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 763,613 | ||
TOTAL FIXED-INCOME FUNDS (Cost $847,497) |
| ||
Short-Term Funds - 12.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 166,194 | 166,194 | |
Fidelity Short-Term Bond Fund | 19,325 | 166,194 | |
TOTAL SHORT-TERM FUNDS (Cost $327,582) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,346,660) | 2,737,953 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (52) | ||
NET ASSETS - 100% | $ 2,737,901 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,346,660) - See accompanying schedule | $ 2,737,953 | |
Receivable for investments sold | 15,743 | |
Total assets | 2,753,696 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 15,742 | |
Distribution and service plan fees payable | 53 | |
Total liabilities | 15,795 | |
|
|
|
Net Assets | $ 2,737,901 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,451,292 | |
Undistributed net investment income | 519 | |
Accumulated undistributed net realized gain (loss) on investments | (105,203) | |
Net unrealized appreciation (depreciation) on investments | 391,293 | |
Net Assets | $ 2,737,901 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 52.33 | |
|
|
|
Maximum offering price per share (100/94.25 of $52.33) | $ 55.52 | |
Class T: | $ 52.33 | |
|
|
|
Maximum offering price per share (100/96.50 of $52.33) | $ 54.23 | |
Class C: | $ 52.32 | |
|
|
|
Income Replacement 2034: | $ 52.30 | |
|
|
|
Institutional Class: | $ 52.30 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 36,293 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 359 | |
Independent trustees' compensation | 5 | |
Total expenses before reductions | 364 | |
Expense reductions | (5) | 359 |
Net investment income (loss) | 35,934 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 377 | |
Capital gain distributions from underlying funds | 29,644 |
|
Total net realized gain (loss) |
| 30,021 |
Change in net unrealized appreciation (depreciation) on underlying funds | 105,573 | |
Net gain (loss) | 135,594 | |
Net increase (decrease) in net assets resulting from operations | $ 171,528 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2034 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 35,934 | $ 40,470 |
Net realized gain (loss) | 30,021 | 25,007 |
Change in net unrealized appreciation (depreciation) | 105,573 | (4,302) |
Net increase (decrease) in net assets resulting from operations | 171,528 | 61,175 |
Distributions to shareholders from net investment income | (35,829) | (40,482) |
Distributions to shareholders from net realized gain | (10,194) | (6,232) |
Total distributions | (46,023) | (46,714) |
Share transactions - net increase (decrease) | 282,987 | 74,690 |
Total increase (decrease) in net assets | 408,492 | 89,151 |
|
|
|
Net Assets | ||
Beginning of period | 2,329,409 | 2,240,258 |
End of period (including undistributed net investment income of $519 and undistributed net investment income of $414, respectively) | $ 2,737,901 | $ 2,329,409 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .689 | .782 | .799 | .753 | .923 | .994 |
Net realized and unrealized gain (loss) | 2.837 | .504 | 5.233 | 4.174 | (5.753) | (3.438) |
Total from investment operations | 3.526 | 1.286 | 6.032 | 4.927 | (4.830) | (2.444) |
Distributions from net investment income | (.685) | (.775) | (.772) | (.758) | (.890) | (.956) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.896) | (.916) | (.972) | (.947) | (1.280) | (1.156) |
Net asset value, end of period | $ 52.33 | $ 49.70 | $ 49.33 | $ 44.27 | $ 40.29 | $ 46.40 |
Total Return B, C, D | 7.16% | 2.71% | 13.69% | 12.29% | (10.20)% | (5.04)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Expenses net of fee waivers, if any | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Expenses net of all reductions | .26% A,I | .25% | .25% | .25% | .26% | .25% A |
Net investment income (loss) | 2.70% A | 1.63% | 1.66% | 1.73% | 2.46% | 2.19% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 19 | $ 18 | $ 20 | $ 27 | $ 63 | $ 138 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .628 | .662 | .681 | .645 | .828 | .875 |
Net realized and unrealized gain (loss) | 2.829 | .490 | 5.247 | 4.175 | (5.757) | (3.431) |
Total from investment operations | 3.457 | 1.152 | 5.928 | 4.820 | (4.929) | (2.556) |
Distributions from net investment income | (.616) | (.651) | (.658) | (.651) | (.791) | (.844) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.827) | (.792) | (.858) | (.840) | (1.181) | (1.044) |
Net asset value, end of period | $ 52.33 | $ 49.70 | $ 49.34 | $ 44.27 | $ 40.29 | $ 46.40 |
Total Return B, C, D | 7.01% | 2.42% | 13.45% | 12.01% | (10.44)% | (5.25)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .51% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .51% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .51% | .50% A |
Net investment income (loss) | 2.46% A | 1.38% | 1.42% | 1.48% | 2.21% | 1.94% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 25 | $ 23 | $ 27 | $ 35 | $ 54 | $ 95 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .501 | .424 | .439 | .426 | .631 | .658 |
Net realized and unrealized gain (loss) | 2.837 | .490 | 5.239 | 4.185 | (5.740) | (3.448) |
Total from investment operations | 3.338 | .914 | 5.678 | 4.611 | (5.109) | (2.790) |
Distributions from net investment income | (.507) | (.443) | (.408) | (.422) | (.591) | (.620) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.718) | (.584) | (.608) | (.611) | (.981) | (.820) |
Net asset value, end of period | $ 52.32 | $ 49.70 | $ 49.37 | $ 44.30 | $ 40.30 | $ 46.39 |
Total Return B, C, D | 6.76% | 1.92% | 12.85% | 11.47% | (10.88)% | (5.70)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.00% A |
Net investment income (loss) | 1.96% A | .89% | .91% | .98% | 1.71% | 1.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 46 | $ 43 | $ 20 | $ 27 | $ 41 | $ 94 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2034
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .755 | .903 | .921 | .862 | .988 | 1.090 |
Net realized and unrealized gain (loss) | 2.832 | .505 | 5.227 | 4.183 | (5.729) | (3.425) |
Total from investment operations | 3.587 | 1.408 | 6.148 | 5.045 | (4.741) | (2.335) |
Distributions from net investment income | (.746) | (.907) | (.898) | (.876) | (.989) | (1.065) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.957) | (1.048) | (1.098) | (1.065) | (1.379) | (1.265) |
Net asset value, end of period | $ 52.30 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.40 |
Total Return B, C | 7.29% | 2.97% | 13.97% | 12.59% | (9.98)% | (4.83)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.96% A | 1.89% | 1.92% | 1.98% | 2.71% | 2.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,517 | $ 2,123 | $ 2,066 | $ 1,672 | $ 1,628 | $ 552 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.41 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .756 | .904 | .922 | .860 | 1.002 | 1.114 |
Net realized and unrealized gain (loss) | 2.831 | .504 | 5.226 | 4.185 | (5.753) | (3.439) |
Total from investment operations | 3.587 | 1.408 | 6.148 | 5.045 | (4.751) | (2.325) |
Distributions from net investment income | (.746) | (.907) | (.898) | (.876) | (.989) | (1.065) |
Distributions from net realized gain | (.211) | (.141) | (.200) | (.189) | (.390) | (.200) |
Total distributions | (.957) | (1.048) | (1.098) | (1.065) | (1.379) | (1.265) |
Net asset value, end of period | $ 52.30 | $ 49.67 | $ 49.31 | $ 44.26 | $ 40.28 | $ 46.41 |
Total Return B, C | 7.29% | 2.97% | 13.97% | 12.59% | (10.00)% | (4.81)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .00% A, F | .00% F | .00% F | .00% F | .01% | .00% A, F |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .01% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .01% | .00% A |
Net investment income (loss) | 2.96% A | 1.89% | 1.92% | 1.98% | 2.71% | 2.44% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 131 | $ 122 | $ 107 | $ 94 | $ 108 | $ 95 |
Portfolio turnover rate | 17% A | 34% | 39% | 22% | 46% | 12% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period August 30, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2036 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.5 | 6.6 |
Fidelity Blue Chip Growth Fund | 6.1 | 6.1 |
Fidelity Disciplined Equity Fund | 7.0 | 7.3 |
Fidelity Equity-Income Fund | 9.4 | 9.7 |
Fidelity Series 100 Index Fund | 6.1 | 6.3 |
Fidelity Series Broad Market Opportunities Fund | 10.8 | 10.9 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 0.9 |
| 46.8 | 47.8 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 9.6 | 10.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.8 | 2.8 |
Fidelity Strategic Income Fund | 2.8 | 2.7 |
| 5.6 | 5.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.5 | 5.3 |
Fidelity Strategic Real Return Fund | 5.5 | 5.5 |
Fidelity Total Bond Fund | 16.4 | 16.0 |
| 27.4 | 26.8 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 5.3 | 4.9 |
Fidelity Short-Term Bond Fund | 5.3 | 5.0 |
| 10.6 | 9.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 46.8% |
|
| International Equity Funds | 9.6% |
|
| High Yield Fixed-Income Funds | 5.6% |
|
| Investment Grade Fixed-Income Funds | 27.4% |
|
| Short-Term Funds | 10.6% |
|
Six months ago | |||
 | Domestic Equity Funds | 47.8% |
|
| International Equity Funds | 10.0% |
|
| High Yield Fixed-Income Funds | 5.5% |
|
| Investment Grade Fixed-Income Funds | 26.8% |
|
| Short-Term Funds | 9.9% |
|
Expected | |||
| Domestic Equity Funds | 46.6% |
|
| International Equity Funds | 9.4% |
|
| High Yield Fixed-Income Funds | 5.4% |
|
| Investment Grade Fixed-Income Funds | 27.6% |
|
| Short-Term Funds | 11.0% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2036 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 56.4% | |||
Shares | Value | ||
Domestic Equity Funds - 46.8% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 12,996 | $ 244,202 | |
Fidelity Blue Chip Growth Fund | 4,425 | 226,706 | |
Fidelity Disciplined Equity Fund | 10,168 | 261,326 | |
Fidelity Equity-Income Fund | 7,008 | 348,435 | |
Fidelity Series 100 Index Fund | 23,016 | 226,706 | |
Fidelity Series Broad Market Opportunities Fund | 34,238 | 400,923 | |
Fidelity Series Small Cap Opportunities Fund | 2,981 | 34,992 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,743,290 | ||
International Equity Funds - 9.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 10,412 | 355,880 | |
TOTAL EQUITY FUNDS (Cost $1,978,615) |
| ||
Fixed-Income Funds - 33.0% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.6% | |||
Fidelity Capital & Income Fund | 10,564 | 101,627 | |
Fidelity Strategic Income Fund | 8,962 | 101,627 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 203,254 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 27.4% | |||
Fidelity Government Income Fund | 19,535 | $ 205,115 | |
Fidelity Strategic Real Return Fund | 20,994 | 205,115 | |
Fidelity Total Bond Fund | 56,557 | 615,343 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 1,025,573 | ||
TOTAL FIXED-INCOME FUNDS (Cost $1,239,747) |
| ||
Short-Term Funds - 10.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 197,297 | 197,297 | |
Fidelity Short-Term Bond Fund | 22,942 | 197,297 | |
TOTAL SHORT-TERM FUNDS (Cost $393,547) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $3,611,909) | 3,722,591 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (274) | ||
NET ASSETS - 100% | $ 3,722,317 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2036 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $3,611,909) - See accompanying schedule | $ 3,722,591 | |
Receivable for investments sold | 21,551 | |
Total assets | 3,744,142 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 21,552 | |
Distribution and service plan fees payable | 273 | |
Total liabilities | 21,825 | |
|
|
|
Net Assets | $ 3,722,317 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,779,265 | |
Undistributed net investment income | 683 | |
Accumulated undistributed net realized gain (loss) on investments | (168,313) | |
Net unrealized appreciation (depreciation) on investments | 110,682 | |
Net Assets | $ 3,722,317 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.94 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.94) | $ 55.11 | |
Class T: | $ 51.91 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.91) | $ 53.79 | |
Class C: | $ 51.85 | |
|
|
|
Income Replacement 2036: | $ 51.93 | |
|
|
|
Institutional Class: | $ 51.93 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 51,742 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 1,626 | |
Independent trustees' compensation | 6 | |
Total expenses before reductions | 1,632 | |
Expense reductions | (6) | 1,626 |
Net investment income (loss) | 50,116 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 1,128 | |
Capital gain distributions from underlying funds | 39,721 |
|
Total net realized gain (loss) |
| 40,849 |
Change in net unrealized appreciation (depreciation) on underlying funds | 148,044 | |
Net gain (loss) | 188,893 | |
Net increase (decrease) in net assets resulting from operations | $ 239,009 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 50,116 | $ 51,249 |
Net realized gain (loss) | 40,849 | 34,074 |
Change in net unrealized appreciation (depreciation) | 148,044 | (39,842) |
Net increase (decrease) in net assets resulting from operations | 239,009 | 45,481 |
Distributions to shareholders from net investment income | (49,885) | (51,325) |
Distributions to shareholders from net realized gain | (12,770) | (7,797) |
Total distributions | (62,655) | (59,122) |
Share transactions - net increase (decrease) | 702,817 | (139,228) |
Total increase (decrease) in net assets | 879,171 | (152,869) |
|
|
|
Net Assets | ||
Beginning of period | 2,843,146 | 2,996,015 |
End of period (including undistributed net investment income of $683 and undistributed net investment income of $452, respectively) | $ 3,722,317 | $ 2,843,146 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .769 | .760 | .811 | .748 | .937 | .951 |
Net realized and unrealized gain (loss) | 2.844 | .441 G | 5.306 | 4.178 | (6.127) | (3.464) |
Total from investment operations | 3.613 | 1.201 | 6.117 | 4.926 | (5.190) | (2.513) |
Distributions from net investment income | (.692) | (.784) | (.771) | (.752) | (.940) | (.897) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.873) | (.921) | (.927) | (.896) | (1.510) | (1.087) |
Net asset value, end of period | $ 51.94 | $ 49.20 | $ 48.92 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C, D | 7.41% | 2.56% | 14.05% | 12.46% | (10.72)% | (5.17)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 3.03% A | 1.60% | 1.70% | 1.74% | 2.52% | 2.08% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 24 | $ 27 | $ 31 | $ 40 | $ 54 | $ 95 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .705 | .641 | .693 | .639 | .844 | .823 |
Net realized and unrealized gain (loss) | 2.845 | .448 G | 5.287 | 4.183 | (6.122) | (3.449) |
Total from investment operations | 3.550 | 1.089 | 5.980 | 4.822 | (5.278) | (2.626) |
Distributions from net investment income | (.629) | (.672) | (.654) | (.648) | (.852) | (.794) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.810) | (.809) | (.810) | (.792) | (1.422) | (.984) |
Net asset value, end of period | $ 51.91 | $ 49.17 | $ 48.89 | $ 43.72 | $ 39.69 | $ 46.39 |
Total Return B, C, D | 7.28% | 2.32% | 13.73% | 12.19% | (10.93)% | (5.39)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.78% A | 1.35% | 1.45% | 1.49% | 2.28% | 1.83% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 288 | $ 278 | $ 288 | $ 265 | $ 265 | $ 384 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 | $ 46.39 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .578 | .404 | .454 | .424 | .655 | .609 |
Net realized and unrealized gain (loss) | 2.843 | .445 G | 5.293 | 4.179 | (6.114) | (3.465) |
Total from investment operations | 3.421 | .849 | 5.747 | 4.603 | (5.459) | (2.856) |
Distributions from net investment income | (.530) | (.452) | (.451) | (.429) | (.651) | (.564) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.711) | (.589) | (.607) | (.573) | (1.221) | (.754) |
Net asset value, end of period | $ 51.85 | $ 49.14 | $ 48.88 | $ 43.74 | $ 39.71 | $ 46.39 |
Total Return B, C, D | 7.01% | 1.80% | 13.17% | 11.61% | (11.38)% | (5.82)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.28% A | .85% | .95% | .99% | 1.77% | 1.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 179 | $ 174 | $ 216 | $ 119 | $ 116 | $ 94 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2036
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .831 | .880 | .939 | .854 | 1.034 | 1.043 |
Net realized and unrealized gain (loss) | 2.843 | .445 G | 5.291 | 4.183 | (6.126) | (3.445) |
Total from investment operations | 3.674 | 1.325 | 6.230 | 5.037 | (5.092) | (2.402) |
Distributions from net investment income | (.753) | (.908) | (.894) | (.863) | (1.038) | (1.008) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.934) | (1.045) | (1.050) | (1.007) | (1.608) | (1.198) |
Net asset value, end of period | $ 51.93 | $ 49.19 | $ 48.91 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C | 7.54% | 2.82% | 14.32% | 12.75% | (10.48)% | (4.96)% |
Ratios to Average Net Assets E |
|
|
|
|
|
|
Expenses before reductions F, I | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.28% A | 1.85% | 1.95% | 1.99% | 2.78% | 2.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,232 | $ 2,363 | $ 2,433 | $ 598 | $ 632 | $ 986 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 | $ 46.40 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .855 | .873 | .929 | .851 | 1.031 | 1.064 |
Net realized and unrealized gain (loss) | 2.829 | .452 G | 5.291 | 4.186 | (6.123) | (3.466) |
Total from investment operations | 3.684 | 1.325 | 6.220 | 5.037 | (5.092) | (2.402) |
Distributions from net investment income | (.753) | (.908) | (.894) | (.863) | (1.038) | (1.008) |
Distributions from net realized gain | (.181) | (.137) | (.156) | (.144) | (.570) | (.190) |
Total distributions | (.934) | (1.045) | (1.050) | (1.007) | (1.608) | (1.198) |
Net asset value, end of period | $ 51.93 | $ 49.18 | $ 48.90 | $ 43.73 | $ 39.70 | $ 46.40 |
Total Return B, C | 7.56% | 2.82% | 14.30% | 12.75% | (10.48)% | (4.96)% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.28% A | 1.85% | 1.95% | 1.99% | 2.78% | 2.33% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1 | $ 1 | $ 28 | $ 103 | $ 67 | $ 119 |
Portfolio turnover rate | 15% A | 62% | 19% | 26% | 39% | 44% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period August 30, 2007 (commencement of operations) to July 31, 2008.
I 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2038 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.7 | 6.7 |
Fidelity Blue Chip Growth Fund | 6.2 | 6.2 |
Fidelity Disciplined Equity Fund | 7.2 | 7.4 |
Fidelity Equity-Income Fund | 9.5 | 9.9 |
Fidelity Series 100 Index Fund | 6.2 | 6.4 |
Fidelity Series Broad Market Opportunities Fund | 11.0 | 11.1 |
Fidelity Series Small Cap Opportunities Fund | 0.9 | 1.0 |
| 47.7 | 48.7 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 10.5 | 10.9 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 2.9 | 2.9 |
Fidelity Strategic Income Fund | 2.9 | 2.9 |
| 5.8 | 5.8 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.3 | 5.1 |
Fidelity Strategic Real Return Fund | 5.3 | 5.4 |
Fidelity Total Bond Fund | 16.0 | 15.7 |
| 26.6 | 26.2 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 4.7 | 4.2 |
Fidelity Short-Term Bond Fund | 4.7 | 4.2 |
| 9.4 | 8.4 |
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) | |||
Current | |||
| 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% |
|
Six months ago | |||
| Domestic Equity Funds | 48.7% |
|
| International Equity Funds | 10.9% |
|
| High Yield Fixed-Income Funds | 5.8% |
|
| Investment Grade Fixed-Income Funds | 26.2% |
|
| Short-Term Funds | 8.4% |
|
Expected | |||
| Domestic Equity Funds | 47.5% |
|
| International Equity Funds | 10.2% |
|
| High Yield Fixed-Income Funds | 5.7% |
|
| Investment Grade Fixed-Income Funds | 26.8% |
|
| Short-Term Funds | 9.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2038 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 58.2% | |||
Shares | Value | ||
Domestic Equity Funds - 47.7% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 8,626 | $ 162,086 | |
Fidelity Blue Chip Growth Fund | 2,941 | 150,681 | |
Fidelity Disciplined Equity Fund | 6,760 | 173,733 | |
Fidelity Equity-Income Fund | 4,661 | 231,724 | |
Fidelity Series 100 Index Fund | 15,298 | 150,681 | |
Fidelity Series Broad Market Opportunities Fund | 22,752 | 266,422 | |
Fidelity Series Small Cap Opportunities Fund | 1,963 | 23,051 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,158,378 | ||
International Equity Funds - 10.5% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 7,418 | 253,562 | |
TOTAL EQUITY FUNDS (Cost $1,134,774) |
| ||
Fixed-Income Funds - 32.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 5.8% | |||
Fidelity Capital & Income Fund | 7,214 | 69,396 | |
Fidelity Strategic Income Fund | 6,120 | 69,396 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 138,792 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.6% | |||
Fidelity Government Income Fund | 12,340 | $ 129,571 | |
Fidelity Strategic Real Return Fund | 13,262 | 129,571 | |
Fidelity Total Bond Fund | 35,705 | 388,474 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 647,616 | ||
TOTAL FIXED-INCOME FUNDS (Cost $747,175) |
| ||
Short-Term Funds - 9.4% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 114,042 | 114,042 | |
Fidelity Short-Term Bond Fund | 13,261 | 114,042 | |
TOTAL SHORT-TERM FUNDS (Cost $225,416) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,107,365) | 2,426,432 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (125) | ||
NET ASSETS - 100% | $ 2,426,307 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2038 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,107,365) - See accompanying schedule | $ 2,426,432 | |
Receivable for investments sold | 14,496 | |
Total assets | 2,440,928 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 14,495 | |
Distribution and service plan fees payable | 126 | |
Total liabilities | 14,621 | |
|
|
|
Net Assets | $ 2,426,307 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,156,361 | |
Undistributed net investment income | 423 | |
Accumulated undistributed net realized gain (loss) on investments | (49,544) | |
Net unrealized appreciation (depreciation) on investments | 319,067 | |
Net Assets | $ 2,426,307 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.20 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.20) | $ 54.32 | |
Class T: | $ 51.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.19) | $ 53.05 | |
Class C: | $ 51.13 | |
|
|
|
Income Replacement 2038: | $ 51.20 | |
|
|
|
Institutional Class: | $ 51.20 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 35,516 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 742 | |
Independent trustees' compensation | 4 | |
Total expenses before reductions | 746 | |
Expense reductions | (4) | 742 |
Net investment income (loss) | 34,774 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 149 | |
Capital gain distributions from underlying funds | 27,959 |
|
Total net realized gain (loss) |
| 28,108 |
Change in net unrealized appreciation (depreciation) on underlying funds | 105,225 | |
Net gain (loss) | 133,333 | |
Net increase (decrease) in net assets resulting from operations | $ 168,107 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 34,774 | $ 27,942 |
Net realized gain (loss) | 28,108 | 30,204 |
Change in net unrealized appreciation (depreciation) | 105,225 | (32,596) |
Net increase (decrease) in net assets resulting from operations | 168,107 | 25,550 |
Distributions to shareholders from net investment income | (34,676) | (27,910) |
Distributions to shareholders from net realized gain | (9,447) | (3,924) |
Total distributions | (44,123) | (31,834) |
Share transactions - net increase (decrease) | 210,592 | 490,682 |
Total increase (decrease) in net assets | 334,576 | 484,398 |
|
|
|
Net Assets | ||
Beginning of period | 2,091,731 | 1,607,333 |
End of period (including undistributed net investment income of $423 and undistributed net investment income of $325, respectively) | $ 2,426,307 | $ 2,091,731 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .710 | .739 | .858 | .744 | .856 | .442 |
Net realized and unrealized gain (loss) | 2.969 | .384 | 5.317 | 4.191 | (6.093) | (4.811) |
Total from investment operations | 3.679 | 1.123 | 6.175 | 4.935 | (5.237) | (4.369) |
Distributions from net investment income | (.689) | (.769) | (.802) | (.710) | (.873) | (.371) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.889) | (.903) | (.995) | (.875) | (1.073) | (.371) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.01 | $ 38.95 | $ 45.26 |
Total Return B, C, D | 7.67% | 2.44% | 14.43% | 12.72% | (11.24)% | (8.76)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.84% A | 1.59% | 1.82% | 1.76% | 2.44% | 1.59% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 80 | $ 76 | $ 34 | $ 32 | $ 115 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .647 | .624 | .736 | .636 | .791 | .373 |
Net realized and unrealized gain (loss) | 2.972 | .367 | 5.326 | 4.191 | (6.111) | (4.809) |
Total from investment operations | 3.619 | .991 | 6.062 | 4.827 | (5.320) | (4.436) |
Distributions from net investment income | (.629) | (.647) | (.689) | (.612) | (.780) | (.304) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.829) | (.781) | (.882) | (.777) | (.980) | (.304) |
Net asset value, end of period | $ 51.19 | $ 48.40 | $ 48.19 | $ 43.01 | $ 38.96 | $ 45.26 |
Total Return B, C, D | 7.54% | 2.15% | 14.15% | 12.43% | (11.45)% | (8.89)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.59% A | 1.34% | 1.57% | 1.50% | 2.20% | 1.34% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 111 | $ 105 | $ 127 | $ 37 | $ 57 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 | $ 45.24 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .520 | .390 | .505 | .424 | .611 | .233 |
Net realized and unrealized gain (loss) | 2.967 | .379 | 5.319 | 4.192 | (6.107) | (4.812) |
Total from investment operations | 3.487 | .769 | 5.824 | 4.616 | (5.496) | (4.579) |
Distributions from net investment income | (.527) | (.435) | (.441) | (.421) | (.594) | (.181) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.727) | (.569) | (.634) | (.586) | (.794) | (.181) |
Net asset value, end of period | $ 51.13 | $ 48.37 | $ 48.17 | $ 42.98 | $ 38.95 | $ 45.24 |
Total Return B, C, D | 7.26% | 1.67% | 13.59% | 11.87% | (11.89)% | (9.17)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.09% A | .84% | 1.08% | 1.01% | 1.70% | .84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 79 | $ 74 | $ 72 | $ 91 | $ 57 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2038
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.27 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .772 | .857 | .969 | .849 | .965 | .502 |
Net realized and unrealized gain (loss) | 2.970 | .377 | 5.332 | 4.187 | (6.112) | (4.795) |
Total from investment operations | 3.742 | 1.234 | 6.301 | 5.036 | (5.147) | (4.293) |
Distributions from net investment income | (.752) | (.880) | (.918) | (.831) | (.963) | (.437) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.952) | (1.014) | (1.111) | (.996) | (1.163) | (.437) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.27 |
Total Return B, C | 7.80% | 2.68% | 14.74% | 12.99% | (11.02)% | (8.61)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.09% A | 1.84% | 2.07% | 2.01% | 2.69% | 1.84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,129 | $ 1,811 | $ 1,345 | $ 2,051 | $ 1,165 | $ 1,122 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.26 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .771 | .857 | .973 | .848 | .974 | .511 |
Net realized and unrealized gain (loss) | 2.971 | .377 | 5.328 | 4.188 | (6.111) | (4.814) |
Total from investment operations | 3.742 | 1.234 | 6.301 | 5.036 | (5.137) | (4.303) |
Distributions from net investment income | (.752) | (.880) | (.918) | (.831) | (.963) | (.437) |
Distributions from net realized gain | (.200) | (.134) | (.193) | (.165) | (.200) | - |
Total distributions | (.952) | (1.014) | (1.111) | (.996) | (1.163) | (.437) |
Net asset value, end of period | $ 51.20 | $ 48.41 | $ 48.19 | $ 43.00 | $ 38.96 | $ 45.26 |
Total Return B, C | 7.80% | 2.68% | 14.74% | 12.99% | (11.00)% | (8.63)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.09% A | 1.84% | 2.07% | 2.01% | 2.69% | 1.84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 27 | $ 25 | $ 29 | $ 38 | $ 58 | $ 91 |
Portfolio turnover rate | 26% A | 57% | 19% | 23% | 41% | 13% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 6.8 | 6.9 |
Fidelity Blue Chip Growth Fund | 6.4 | 6.4 |
Fidelity Disciplined Equity Fund | 7.3 | 7.6 |
Fidelity Equity-Income Fund | 9.8 | 10.1 |
Fidelity Series 100 Index Fund | 6.4 | 6.5 |
Fidelity Series Broad Market Opportunities Fund | 11.2 | 11.4 |
Fidelity Series Small Cap Opportunities Fund | 1.0 | 1.0 |
| 48.9 | 49.9 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 11.5 | 12.0 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 3.1 | 3.1 |
Fidelity Strategic Income Fund | 3.1 | 3.1 |
| 6.2 | 6.2 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.3 | 5.1 |
Fidelity Strategic Real Return Fund | 5.3 | 5.3 |
Fidelity Total Bond Fund | 15.6 | 15.4 |
| 26.2 | 25.8 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 3.6 | 3.0 |
Fidelity Short-Term Bond Fund | 3.6 | 3.1 |
| 7.2 | 6.1 |
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) | |||
Current | |||
| Domestic Equity Funds | 48.9% |
|
| International Equity Funds | 11.5% |
|
| High Yield Fixed-Income Funds | 6.2% |
|
| Investment Grade Fixed-Income Funds | 26.2% |
|
 | Short-Term Funds | 7.2% |
|
Six months ago | |||
| Domestic Equity Funds | 49.9% |
|
| International Equity Funds | 12.0% |
|
| High Yield Fixed-Income Funds | 6.2% |
|
| Investment Grade Fixed-Income Funds | 25.8% |
|
| Short-Term Funds | 6.1% |
|
Expected | |||
| Domestic Equity Funds | 48.6% |
|
| International Equity Funds | 11.2% |
|
| High Yield Fixed-Income Funds | 6.0% |
|
| Investment Grade Fixed-Income Funds | 26.4% |
|
| Short-Term Funds | 7.8% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2040 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 60.4% | |||
Shares | Value | ||
Domestic Equity Funds - 48.9% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 10,886 | $ 204,557 | |
Fidelity Blue Chip Growth Fund | 3,707 | 189,925 | |
Fidelity Disciplined Equity Fund | 8,529 | 219,190 | |
Fidelity Equity-Income Fund | 5,874 | 292,054 | |
Fidelity Series 100 Index Fund | 19,282 | 189,925 | |
Fidelity Series Broad Market Opportunities Fund | 28,689 | 335,952 | |
Fidelity Series Small Cap Opportunities Fund | 2,493 | 29,265 | |
TOTAL DOMESTIC EQUITY FUNDS | 1,460,868 | ||
International Equity Funds - 11.5% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 9,995 | 341,625 | |
TOTAL EQUITY FUNDS (Cost $1,629,464) |
| ||
Fixed-Income Funds - 32.4% | |||
|
|
|
|
High Yield Fixed-Income Funds - 6.2% | |||
Fidelity Capital & Income Fund | 9,406 | 90,483 | |
Fidelity Strategic Income Fund | 7,979 | 90,483 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 180,966 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.2% | |||
Fidelity Government Income Fund | 14,988 | $ 157,375 | |
Fidelity Strategic Real Return Fund | 16,108 | 157,375 | |
Fidelity Total Bond Fund | 43,311 | 471,228 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 785,978 | ||
TOTAL FIXED-INCOME FUNDS (Cost $964,595) |
| ||
Short-Term Funds - 7.2% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 108,400 | 108,400 | |
Fidelity Short-Term Bond Fund | 12,605 | 108,400 | |
TOTAL SHORT-TERM FUNDS (Cost $216,029) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $2,810,088) | 2,986,237 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (99) | ||
NET ASSETS - 100% | $ 2,986,138 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $2,810,088) - See accompanying schedule | $ 2,986,237 | |
Receivable for investments sold | 16,616 | |
Total assets | 3,002,853 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 16,613 | |
Distribution and service plan fees payable | 102 | |
Total liabilities | 16,715 | |
|
|
|
Net Assets | $ 2,986,138 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,855,900 | |
Undistributed net investment income | 571 | |
Accumulated undistributed net realized gain (loss) on investments | (46,482) | |
Net unrealized appreciation (depreciation) on investments | 176,149 | |
Net Assets | $ 2,986,138 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 51.51 | |
|
|
|
Maximum offering price per share (100/94.25 of $51.51) | $ 54.65 | |
Class T: | $ 51.59 | |
|
|
|
Maximum offering price per share (100/96.50 of $51.59) | $ 53.46 | |
Class C: | $ 51.41 | |
|
|
|
Income Replacement 2040: | $ 51.48 | |
|
|
|
Institutional Class: | $ 51.48 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 43,823 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 670 | |
Independent trustees' compensation | 5 | |
Total expenses before reductions | 675 | |
Expense reductions | (5) | 670 |
Net investment income (loss) | 43,153 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 18,350 | |
Capital gain distributions from underlying funds | 33,411 |
|
Total net realized gain (loss) |
| 51,761 |
Change in net unrealized appreciation (depreciation) on underlying funds | 120,616 | |
Net gain (loss) | 172,377 | |
Net increase (decrease) in net assets resulting from operations | $ 215,530 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2040 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 43,153 | $ 40,116 |
Net realized gain (loss) | 51,761 | 117,214 |
Change in net unrealized appreciation (depreciation) | 120,616 | (111,202) |
Net increase (decrease) in net assets resulting from operations | 215,530 | 46,128 |
Distributions to shareholders from net investment income | (43,037) | (40,029) |
Distributions to shareholders from net realized gain | (14,161) | (5,624) |
Total distributions | (57,198) | (45,653) |
Share transactions - net increase (decrease) | 198,545 | 478,557 |
Total increase (decrease) in net assets | 356,877 | 479,032 |
|
|
|
Net Assets | ||
Beginning of period | 2,629,261 | 2,150,229 |
End of period (including undistributed net investment income of $571 and undistributed net investment income of $455, respectively) | $ 2,986,138 | $ 2,629,261 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .738 | .762 | .789 | .722 | .933 | .442 |
Net realized and unrealized gain (loss) | 3.113 | .331 | 5.608 | 4.298 | (6.238) | (4.814) |
Total from investment operations | 3.851 | 1.093 | 6.397 | 5.020 | (5.305) | (4.372) |
Distributions from net investment income | (.719) | (.771) | (.805) | (.710) | (.885) | (.398) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.971) | (.903) | (.997) | (.810) | (1.095) | (.398) |
Net asset value, end of period | $ 51.51 | $ 48.63 | $ 48.44 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C, D | 8.00% | 2.36% | 14.94% | 12.97% | (11.41)% | (8.77)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .22% A, I | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 2.94% A | 1.64% | 1.67% | 1.70% | 2.60% | 1.60% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8 | $ 7 | $ 96 | $ 34 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .672 | .649 | .672 | .616 | .836 | .371 |
Net realized and unrealized gain (loss) | 3.121 | .312 | 5.604 | 4.301 | (6.227) | (4.809) |
Total from investment operations | 3.793 | .961 | 6.276 | 4.917 | (5.391) | (4.438) |
Distributions from net investment income | (.561) | (.649) | (.704) | (.607) | (.789) | (.332) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.813) | (.781) | (.896) | (.707) | (.999) | (.332) |
Net asset value, end of period | $ 51.59 | $ 48.61 | $ 48.43 | $ 43.05 | $ 38.84 | $ 45.23 |
Total Return B, C, D | 7.87% | 2.08% | 14.64% | 12.69% | (11.62)% | (8.90)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .49% A, I | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.67% A | 1.39% | 1.42% | 1.45% | 2.35% | 1.35% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 13 | $ 51 | $ 131 | $ 111 | $ 102 | $ 132 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 | $ 45.22 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .541 | .415 | .435 | .402 | .664 | .234 |
Net realized and unrealized gain (loss) | 3.115 | .310 | 5.609 | 4.305 | (6.229) | (4.816) |
Total from investment operations | 3.656 | .725 | 6.044 | 4.707 | (5.565) | (4.582) |
Distributions from net investment income | (.544) | (.463) | (.482) | (.397) | (.605) | (.198) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (.796) | (.595) | (.674) | (.497) | (.815) | (.198) |
Net asset value, end of period | $ 51.41 | $ 48.55 | $ 48.42 | $ 43.05 | $ 38.84 | $ 45.22 |
Total Return B, C, D | 7.59% | 1.57% | 14.08% | 12.13% | (12.06)% | (9.18)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | 1.00% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.16% A | .89% | .93% | .95% | 1.85% | .84% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 115 | $ 107 | $ 79 | $ 99 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2040
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) D | .793 | .885 | .910 | .833 | 1.015 | .504 |
Net realized and unrealized gain (loss) | 3.119 | .317 | 5.602 | 4.297 | (6.231) | (4.810) |
Total from investment operations | 3.912 | 1.202 | 6.512 | 5.130 | (5.216) | (4.306) |
Distributions from net investment income | (.770) | (.900) | (.940) | (.820) | (.974) | (.464) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (1.022) | (1.032) | (1.132) | (.920) | (1.184) | (.464) |
Net asset value, end of period | $ 51.48 | $ 48.59 | $ 48.42 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C | 8.13% | 2.60% | 15.21% | 13.26% | (11.19)% | (8.64)% |
Ratios to Average Net Assets E, H |
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Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.16% A | 1.89% | 1.93% | 1.96% | 2.85% | 1.85% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 2,848 | $ 2,462 | $ 1,797 | $ 1,262 | $ 384 | $ 598 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 | $ 45.23 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) D | .799 | .865 | .906 | .828 | 1.022 | .512 |
Net realized and unrealized gain (loss) | 3.113 | .327 | 5.616 | 4.302 | (6.238) | (4.818) |
Total from investment operations | 3.912 | 1.192 | 6.522 | 5.130 | (5.216) | (4.306) |
Distributions from net investment income | (.770) | (.900) | (.940) | (.820) | (.974) | (.464) |
Distributions from net realized gain | (.252) | (.132) | (.192) | (.100) | (.210) | - |
Total distributions | (1.022) | (1.032) | (1.132) | (.920) | (1.184) | (.464) |
Net asset value, end of period | $ 51.48 | $ 48.59 | $ 48.43 | $ 43.04 | $ 38.83 | $ 45.23 |
Total Return B, C | 8.13% | 2.58% | 15.24% | 13.26% | (11.19)% | (8.64)% |
Ratios to Average Net Assets E, H |
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Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.16% A | 1.89% | 1.93% | 1.96% | 2.85% | 1.85% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 2 | $ 2 | $ 48 | $ 62 | $ 57 | $ 91 |
Portfolio turnover rate | 23% A | 63% | 75% | 129% | 50% | 4% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Investment Changes (Unaudited)
Fund Holdings as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Domestic Equity Funds | ||
Fidelity Advisor Mid Cap II Fund Institutional Class | 7.0 | 7.1 |
Fidelity Blue Chip Growth Fund | 6.5 | 6.6 |
Fidelity Disciplined Equity Fund | 7.6 | 7.8 |
Fidelity Equity-Income Fund | 10.1 | 10.3 |
Fidelity Series 100 Index Fund | 6.5 | 6.7 |
Fidelity Series Broad Market Opportunities Fund | 11.6 | 11.7 |
Fidelity Series Small Cap Opportunities Fund | 1.0 | 1.0 |
| 50.3 | 51.2 |
International Equity Funds | ||
Fidelity Advisor International Discovery Fund Institutional Class | 12.6 | 12.8 |
High Yield Fixed-Income Funds | ||
Fidelity Capital & Income Fund | 3.2 | 3.3 |
Fidelity Strategic Income Fund | 3.2 | 3.2 |
| 6.4 | 6.5 |
Investment Grade Fixed-Income Funds | ||
Fidelity Government Income Fund | 5.2 | 5.1 |
Fidelity Strategic Real Return Fund | 5.2 | 5.2 |
Fidelity Total Bond Fund | 15.7 | 15.3 |
| 26.1 | 25.6 |
Short-Term Funds | ||
Fidelity Institutional Money Market Portfolio Institutional Class | 2.3 | 1.9 |
Fidelity Short-Term Bond Fund | 2.3 | 2.0 |
| 4.6 | 3.9 |
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) | |||
Current | |||
| Domestic Equity Funds | 50.3% |
|
| International Equity Funds | 12.6% |
|
| High Yield Fixed-Income Funds | 6.4% |
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| Investment Grade Fixed-Income Funds | 26.1% |
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| Short-Term Funds | 4.6% |
|
Six months ago | |||
| Domestic Equity Funds | 51.2% |
|
| International Equity Funds | 12.8% |
|
| High Yield Fixed-Income Funds | 6.5% |
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| Investment Grade Fixed-Income Funds | 25.6% |
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| Short-Term Funds | 3.9% |
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Expected | |||
| Domestic Equity Funds | 50.0% |
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| International Equity Funds | 12.3% |
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| High Yield Fixed-Income Funds | 6.3% |
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| Investment Grade Fixed-Income Funds | 26.1% |
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| Short-Term Funds | 5.3% |
|
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 July 31, 2012. The current allocation is based on the fund's holdings as of January 31, 2013. The expected allocation represents the fund's anticipated allocation at July 31, 2013. |
Semiannual Report
Fidelity Income Replacement 2042 Fund
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 62.9% | |||
Shares | Value | ||
Domestic Equity Funds - 50.3% | |||
Fidelity Advisor Mid Cap II Fund Institutional Class | 41,972 | $ 788,654 | |
Fidelity Blue Chip Growth Fund | 14,281 | 731,603 | |
Fidelity Disciplined Equity Fund | 32,863 | 844,587 | |
Fidelity Equity-Income Fund | 22,657 | 1,126,489 | |
Fidelity Series 100 Index Fund | 74,274 | 731,603 | |
Fidelity Series Broad Market Opportunities Fund | 110,624 | 1,295,407 | |
Fidelity Series Small Cap Opportunities Fund | 9,624 | 112,985 | |
TOTAL DOMESTIC EQUITY FUNDS | 5,631,328 | ||
International Equity Funds - 12.6% | |||
Fidelity Advisor International Discovery Fund Institutional Class | 41,074 | 1,403,917 | |
TOTAL EQUITY FUNDS (Cost $6,038,310) |
| ||
Fixed-Income Funds - 32.5% | |||
|
|
|
|
High Yield Fixed-Income Funds - 6.4% | |||
Fidelity Capital & Income Fund | 37,444 | 360,208 | |
Fidelity Strategic Income Fund | 31,764 | 360,208 | |
TOTAL HIGH YIELD FIXED-INCOME FUNDS | 720,416 | ||
| |||
Shares | Value | ||
Investment Grade Fixed-Income Funds - 26.1% | |||
Fidelity Government Income Fund | 55,507 | $ 582,821 | |
Fidelity Strategic Real Return Fund | 59,654 | 582,821 | |
Fidelity Total Bond Fund | 160,910 | 1,750,701 | |
TOTAL INVESTMENT GRADE FIXED-INCOME FUNDS | 2,916,343 | ||
TOTAL FIXED-INCOME FUNDS (Cost $3,537,357) |
| ||
Short-Term Funds - 4.6% | |||
|
|
|
|
Fidelity Institutional Money Market Portfolio Institutional Class | 257,292 | 257,292 | |
Fidelity Short-Term Bond Fund | 29,918 | 257,291 | |
TOTAL SHORT-TERM FUNDS (Cost $511,627) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,087,294) | 11,186,587 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (97) | ||
NET ASSETS - 100% | $ 11,186,490 | ||
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 Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (cost $10,087,294) - See accompanying schedule | $ 11,186,587 | |
Receivable for investments sold | 67,126 | |
Receivable for fund shares sold | 31 | |
Total assets | 11,253,744 | |
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|
|
Liabilities | ||
Payable for investments purchased | $ 67,153 | |
Distribution and service plan fees payable | 86 | |
Total liabilities | 67,239 | |
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Net Assets | $ 11,186,505 | |
Net Assets consist of: |
| |
Paid in capital | $ 10,138,124 | |
Undistributed net investment income | 2,182 | |
Accumulated undistributed net realized gain (loss) on investments | (53,094) | |
Net unrealized appreciation (depreciation) on investments | 1,099,293 | |
Net Assets | $ 11,186,505 | |
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Calculation of Maximum Offering Price Class A: | $ 51.76 | |
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Maximum offering price per share (100/94.25 of $51.76) | $ 54.92 | |
Class T: | $ 51.77 | |
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|
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Maximum offering price per share (100/96.50 of $51.77) | $ 53.65 | |
Class C: | $ 51.71 | |
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Income Replacement 2042: | $ 51.76 | |
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Institutional Class: | $ 51.75 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
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|
|
Investment Income |
|
|
Income distributions from underlying funds |
| $ 152,512 |
|
|
|
Expenses | ||
Distribution and service plan fees | $ 496 | |
Independent trustees' compensation | 15 | |
Total expenses before reductions | 511 | |
Expense reductions | (15) | 496 |
Net investment income (loss) | 152,016 | |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 13,466 | |
Capital gain distributions from underlying funds | 109,241 |
|
Total net realized gain (loss) |
| 122,707 |
Change in net unrealized appreciation (depreciation) on underlying funds | 508,433 | |
Net gain (loss) | 631,140 | |
Net increase (decrease) in net assets resulting from operations | $ 783,156 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Income Replacement 2042 Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 152,016 | $ 117,162 |
Net realized gain (loss) | 122,707 | (18,384) |
Change in net unrealized appreciation (depreciation) | 508,433 | 71,737 |
Net increase (decrease) in net assets resulting from operations | 783,156 | 170,515 |
Distributions to shareholders from net investment income | (151,081) | (117,023) |
Distributions to shareholders from net realized gain | (34,182) | (15,935) |
Total distributions | (185,263) | (132,958) |
Share transactions - net increase (decrease) | 3,247,227 | 1,671,463 |
Total increase (decrease) in net assets | 3,845,120 | 1,709,020 |
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Net Assets | ||
Beginning of period | 7,341,385 | 5,632,365 |
End of period (including undistributed net investment income of $2,182 and undistributed net investment income of $1,247, respectively) | $ 11,186,505 | $ 7,341,385 |
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) E | .807 | .782 | .757 | .747 | .819 | .425 |
Net realized and unrealized gain (loss) | 3.215 | .281 | 5.719 | 4.285 | (6.123) | (4.836) |
Total from investment operations | 4.022 | 1.063 | 6.476 | 5.032 | (5.304) | (4.411) |
Distributions from net investment income | (.745) | (.791) | (.801) | (.717) | (.866) | (.389) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.922) | (.923) | (.996) | (.822) | (1.066) | (.389) |
Net asset value, end of period | $ 51.76 | $ 48.66 | $ 48.52 | $ 43.04 | $ 38.83 | $ 45.20 |
Total Return B, C, D | 8.34% | 2.30% | 15.12% | 13.00% | (11.40)% | (8.85)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | 3.21% A | 1.66% | 1.61% | 1.77% | 2.32% | 1.57% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 22 | $ 20 | $ 23 | $ 29 | $ 88 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 | $ 45.19 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) E | .745 | .660 | .637 | .642 | .739 | .365 |
Net realized and unrealized gain (loss) | 3.216 | .287 | 5.727 | 4.281 | (6.128) | (4.852) |
Total from investment operations | 3.961 | .947 | 6.364 | 4.923 | (5.389) | (4.487) |
Distributions from net investment income | (.684) | (.675) | (.679) | (.608) | (.771) | (.323) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.861) | (.807) | (.874) | (.713) | (.971) | (.323) |
Net asset value, end of period | $ 51.77 | $ 48.67 | $ 48.53 | $ 43.04 | $ 38.83 | $ 45.19 |
Total Return B, C, D | 8.21% | 2.05% | 14.85% | 12.71% | (11.62)% | (9.00)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .50% | .50% A |
Expenses net of all reductions | .50% A | .50% | .50% | .50% | .50% | .50% A |
Net investment income (loss) | 2.96% A | 1.42% | 1.35% | 1.52% | 2.07% | 1.32% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 143 | $ 132 | $ 29 | $ 37 | $ 57 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 | $ 45.19 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) E | .622 | .427 | .402 | .430 | .560 | .226 |
Net realized and unrealized gain (loss) | 3.212 | .290 | 5.719 | 4.275 | (6.123) | (4.846) |
Total from investment operations | 3.834 | .717 | 6.121 | 4.705 | (5.563) | (4.620) |
Distributions from net investment income | (.587) | (.465) | (.456) | (.390) | (.587) | (.190) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.764) | (.597) | (.651) | (.495) | (.787) | (.190) |
Net asset value, end of period | $ 51.71 | $ 48.64 | $ 48.52 | $ 43.05 | $ 38.84 | $ 45.19 |
Total Return B, C, D | 7.94% | 1.55% | 14.26% | 12.12% | (12.05)% | (9.25)% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of fee waivers, if any | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Expenses net of all reductions | .99% A,I | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% A |
Net investment income (loss) | 2.47% A | .91% | .85% | 1.02% | 1.57% | .82% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 26 | $ 24 | $ 28 | $ 37 | $ 56 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the Underlying Funds.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
I Ratios for small asset classes differ from contractual rates due to the rounding and annualization of expense amounts.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Income Replacement 2042
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
| �� |
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Net asset value, beginning of period | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
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Net investment income (loss) D | .869 | .897 | .880 | .857 | .900 | .496 |
Net realized and unrealized gain (loss) | 3.219 | .284 | 5.719 | 4.279 | (6.114) | (4.840) |
Total from investment operations | 4.088 | 1.181 | 6.599 | 5.136 | (5.214) | (4.344) |
Distributions from net investment income | (.801) | (.909) | (.924) | (.831) | (.956) | (.456) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.978) | (1.041) | (1.119) | (.936) | (1.156) | (.456) |
Net asset value, end of period | $ 51.76 | $ 48.65 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 |
Total Return B, C | 8.48% | 2.56% | 15.42% | 13.27% | (11.18)% | (8.72)% |
Ratios to Average Net Assets E, H |
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Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.46% A | 1.91% | 1.86% | 2.02% | 2.57% | 1.82% A |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 10,967 | $ 7,139 | $ 5,524 | $ 3,395 | $ 1,395 | $ 969 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 | $ 50.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .871 | .896 | .874 | .855 | .918 | .504 |
Net realized and unrealized gain (loss) | 3.217 | .275 | 5.725 | 4.281 | (6.132) | (4.848) |
Total from investment operations | 4.088 | 1.171 | 6.599 | 5.136 | (5.214) | (4.344) |
Distributions from net investment income | (.801) | (.909) | (.924) | (.831) | (.956) | (.456) |
Distributions from net realized gain | (.177) | (.132) | (.195) | (.105) | (.200) | - |
Total distributions | (.978) | (1.041) | (1.119) | (.936) | (1.156) | (.456) |
Net asset value, end of period | $ 51.75 | $ 48.64 | $ 48.51 | $ 43.03 | $ 38.83 | $ 45.20 |
Total Return B, C | 8.49% | 2.54% | 15.42% | 13.27% | (11.18)% | (8.72)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions F | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | 3.46% A | 1.91% | 1.86% | 2.02% | 2.57% | 1.82% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 28 | $ 26 | $ 29 | $ 38 | $ 57 | $ 91 |
Portfolio turnover rate | 24% A | 40% | 15% | 20% | 37% | 8% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Amounts do not include the activity of the Underlying Funds.
F Amount represents less than .01%.
G For the period December 31, 2007 (commencement of operations) to July 31, 2008.
H 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 investment companies in which the Fund invests.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (Unaudited)
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.
Each Fund offers Class A, Class T, Class C, Income Replacement and Institutional Class shares, except for Fidelity Income Replacement 2016 Fund. Fidelity Income Replacement 2016 Fund offers Income Replacement shares. Each class has equal rights as to assets and voting privileges, except for matters affecting a single class. Effective after the close of business on January 31, 2012, Fidelity Income Replacement 2016 Fund's Class A, Class T, Class C and Institutional Class shares were closed to new accounts and additional purchases, except for reinvestments. Investment income, realized and unrealized capital gains and losses, the common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated 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.
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 following summarizes the significant accounting policies of the Funds:
Security 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.
Expenses. 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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 income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.
Semiannual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
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. Temporary book-tax differences 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 | Gross unrealized | Net unrealized |
Fidelity Income Replacement 2016 Fund | $ 7,284,354 | $ 500,009 | $ (1,488) | $ 498,521 |
Fidelity Income Replacement 2018 Fund | 5,335,703 | 166,613 | (46,460) | 120,153 |
Fidelity Income Replacement 2020 Fund | 5,258,433 | 450,677 | (12,987) | 437,690 |
Fidelity Income Replacement 2022 Fund | 4,621,853 | 160,574 | (71,279) | 89,295 |
Fidelity Income Replacement 2024 Fund | 2,425,725 | 115,724 | (20,930) | 94,794 |
Fidelity Income Replacement 2026 Fund | 1,817,621 | 71,610 | (13,987) | 57,623 |
Fidelity Income Replacement 2028 Fund | 5,929,937 | 422,004 | (41,048) | 380,956 |
Fidelity Income Replacement 2030 Fund | 3,746,920 | 402,376 | (8,140) | 394,236 |
Fidelity Income Replacement 2032 Fund | 3,923,645 | 266,401 | (17,131) | 249,270 |
Fidelity Income Replacement 2034 Fund | 2,379,868 | 361,991 | (3,906) | 358,085 |
Fidelity Income Replacement 2036 Fund | 3,620,444 | 147,942 | (45,795) | 102,147 |
Fidelity Income Replacement 2038 Fund | 2,121,986 | 309,737 | (5,291) | 304,446 |
Fidelity Income Replacement 2040 Fund | 2,825,258 | 171,292 | (10,313) | 160,979 |
Fidelity Income Replacement 2042 Fund | 10,141,519 | 1,079,573 | (34,505) | 1,045,068 |
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. At July 31,2012, capital loss carryforwards were as follows:
| Fiscal year of expiration |
| ||
| 2017 | 2018 | 2019 | Total with expiration |
Fidelity Income Replacement 2016 Fund | $ (11,321) | $ (234,074) | $ (128,097) | $ (373,492) |
Fidelity Income Replacement 2018 Fund | (78,455) | (410,862) | (37,212) | (526,529) |
Fidelity Income Replacement 2020 Fund | (2,795) | (118,446) | (22,198) | (143,439) |
Fidelity Income Replacement 2022 Fund | (33,352) | (481,397) | (74,118) | (588,867) |
Fidelity Income Replacement 2024 Fund | - | (4,778) | (58,344) | (63,122) |
Fidelity Income Replacement 2026 Fund | - | (194,108) | - | (194,108) |
Fidelity Income Replacement 2028 Fund | - | (313,738) | (210,425) | (524,163) |
Fidelity Income Replacement 2030 Fund | (33,830) | (85,896) | - | (119,726) |
Fidelity Income Replacement 2032 Fund | - | (182,121) | - | (182,121) |
Fidelity Income Replacement 2034 Fund | - | (48,212) | (43,660) | (91,872) |
Fidelity Income Replacement 2036 Fund | (33) | (183,763) | (2,877) | (186,673) |
Fidelity Income Replacement 2038 Fund | - | (3,448) | (48,487) | (51,935) |
Fidelity Income Replacement 2040 Fund | - | (54,176) | (16,690) | (70,866) |
Fidelity Income Replacement 2042 Fund | (2,106) | (15,348) | (33,939) | (51,393) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
| No expiration |
|
| |
| Short-term | Long-term | Total no expiration | Total capital loss |
Fidelity Income Replacement 2016 Fund | $ (28,964) | $ (5,046) | $ (34,010) | $ (407,502) |
Fidelity Income Replacement 2018 Fund | - | - | - | (526,529) |
Fidelity Income Replacement 2020 Fund | - | - | - | (143,439) |
Fidelity Income Replacement 2022 Fund | - | - | - | (588,867) |
Fidelity Income Replacement 2024 Fund | - | - | - | (63,122) |
Fidelity Income Replacement 2026 Fund | - | - | - | (194,108) |
Fidelity Income Replacement 2028 Fund | - | - | - | (524,163) |
Fidelity Income Replacement 2030 Fund | (24,894) | - | (24,894) | (144,620) |
Fidelity Income Replacement 2032 Fund | - | - | - | (182,121) |
Fidelity Income Replacement 2034 Fund | - | - | - | (91,872) |
Fidelity Income Replacement 2036 Fund | - | - | - | (186,673) |
Fidelity Income Replacement 2038 Fund | - | - | - | (51,935) |
Fidelity Income Replacement 2040 Fund | - | - | - | (70,866) |
Fidelity Income Replacement 2042 Fund | (18,020) | - | (18,020) | (69,413) |
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
Fidelity Income Replacement 2016 Fund | 1,612,200 | 2,014,210 |
Fidelity Income Replacement 2018 Fund | 1,063,580 | 1,372,234 |
Fidelity Income Replacement 2020 Fund | 1,736,732 | 1,005,431 |
Fidelity Income Replacement 2022 Fund | 867,472 | 586,656 |
Fidelity Income Replacement 2024 Fund | 1,130,313 | 775,431 |
Fidelity Income Replacement 2026 Fund | 445,947 | 417,540 |
Fidelity Income Replacement 2028 Fund | 914,622 | 549,543 |
Fidelity Income Replacement 2030 Fund | 699,873 | 704,175 |
Fidelity Income Replacement 2032 Fund | 1,280,616 | 566,865 |
Fidelity Income Replacement 2034 Fund | 514,189 | 211,642 |
Fidelity Income Replacement 2036 Fund | 966,871 | 236,875 |
Fidelity Income Replacement 2038 Fund | 521,617 | 292,410 |
Fidelity Income Replacement 2040 Fund | 532,550 | 314,650 |
Fidelity Income Replacement 2042 Fund | 4,396,915 | 1,073,681 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), 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, Strategic Advisers pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid by each Fund is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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 the 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 | Service | Total | Retained |
Class A | -% | .25% | $ 1,065 | $ - |
Class T | .25% | .25% | 436 | - |
Class C | .75% | .25% | 4,218 | 393 |
|
|
| $ 5,719 | $ 393 |
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2018 Fund | Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 918 | $ - |
Class T | .25% | .25% | 316 | 4 |
Class C | .75% | .25% | 2,148 | 1,151 |
|
|
| $ 3,382 | $ 1,155 |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A | -% | .25% | $ 508 | $ 221 |
Class T | .25% | .25% | 472 | - |
Class C | .75% | .25% | 1,582 | 273 |
|
|
| $ 2,562 | $ 494 |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A | -% | .25% | $ 486 | $ - |
Class T | .25% | .25% | 6 | 2 |
Class C | .75% | .25% | 143 | 15 |
|
|
| $ 635 | $ 17 |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A | -% | .25% | $ 272 | $ 48 |
Class T | .25% | .25% | 442 | 50 |
Class C | .75% | .25% | 615 | 17 |
|
|
| $ 1,329 | $ 115 |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A | -% | .25% | $ 381 | $ - |
Class T | .25% | .25% | 288 | 18 |
Class C | .75% | .25% | 48 | 49 |
|
|
| $ 717 | $ 67 |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A | -% | .25% | $ 173 | $ - |
Class T | .25% | .25% | 324 | - |
Class C | .75% | .25% | 147 | - |
|
|
| $ 644 | $ - |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A | -% | .25% | $ 110 | $ 2 |
Class T | .25% | .25% | 34 | 16 |
Class C | .75% | .25% | 1,544 | 161 |
|
|
| $ 1,688 | $ 179 |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A | -% | .25% | $ 281 | $ 7 |
Class T | .25% | .25% | 61 | 61 |
Class C | .75% | .25% | 268 | 236 |
|
|
| $ 610 | $ 304 |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A | -% | .25% | $ 24 | $ 24 |
Class T | .25% | .25% | 60 | 60 |
Class C | .75% | .25% | 275 | 275 |
|
|
| $ 359 | $ 359 |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A | -% | .25% | $ 34 | $ 26 |
Class T | .25% | .25% | 710 | 14 |
Class C | .75% | .25% | 882 | - |
|
|
| $ 1,626 | $ 40 |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A | -% | .25% | $ 89 | $ 2 |
Class T | .25% | .25% | 271 | 12 |
Class C | .75% | .25% | 382 | 7 |
|
|
| $ 742 | $ 21 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
Fidelity Income Replacement 2040 Fund | Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 8 | $ 7 |
Class T | .25% | .25% | 108 | 14 |
Class C | .75% | .25% | 554 | 141 |
|
|
| $ 670 | $ 162 |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A | -% | .25% | $ 27 | $ 7 |
Class T | .25% | .25% | 344 | 64 |
Class C | .75% | .25% | 125 | 125 |
|
|
| $ 496 | $ 196 |
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 the 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:
| Retained by FDC |
Fidelity Income Replacement 2016 Fund |
|
Class C* | $ 19 |
Fidelity Income Replacement 2018 Fund |
|
Class C* | $ 155 |
Fidelity Income Replacement 2026 Fund |
|
Class T | $ 7 |
Fidelity Income Replacement 2038 Fund |
|
Class A | $ 232 |
Fidelity Income Replacement 2042 Fund |
|
Class A | $ 2 |
* 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 fees applicable to each class. Some expenses, for example interest expense, are excluded from this reimbursement.
The following Funds were in reimbursement during the period:
| Reimbursement* |
Fidelity Income Replacement 2016 Fund | $ 15 |
Fidelity Income Replacement 2018 Fund | 11 |
Fidelity Income Replacement 2020 Fund | 9 |
Fidelity Income Replacement 2022 Fund | 8 |
Fidelity Income Replacement 2024 Fund | 4 |
Fidelity Income Replacement 2026 Fund | 4 |
Fidelity Income Replacement 2028 Fund | 11 |
Fidelity Income Replacement 2030 Fund | 7 |
Fidelity Income Replacement 2032 Fund | 7 |
Fidelity Income Replacement 2034 Fund | 5 |
Fidelity Income Replacement 2036 Fund | 6 |
Fidelity Income Replacement 2038 Fund | 4 |
Fidelity Income Replacement 2040 Fund | 5 |
Fidelity Income Replacement 2042 Fund | 15 |
* Represents total amount reimbursed to the Fund. Each class has received pro-rata allocation of reimbursement
Semiannual Report
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
Fidelity Income Replacement 2016 Fund |
|
|
From net investment income |
|
|
Class A | $ 5,523 | $ 17,921 |
Class T | 874 | 3,481 |
Class C | 2,680 | 7,453 |
Income Replacement 2016 | 46,429 | 115,628 |
Institutional Class | 308 | 1,088 |
Total | $ 55,814 | $ 145,571 |
From net realized gain |
|
|
Class A | $ 3,311 | $ 4,976 |
Class T | 617 | 1,014 |
Class C | 3,251 | 4,218 |
Income Replacement 2016 | 22,904 | 28,030 |
Institutional Class | 143 | 312 |
Total | $ 30,226 | $ 38,550 |
Fidelity Income Replacement 2018 Fund |
|
|
From net investment income |
|
|
Class A | $ 6,667 | $ 11,734 |
Class T | 985 | 1,790 |
Class C | 2,330 | 2,008 |
Income Replacement 2018 | 41,937 | 68,941 |
Institutional Class | 4,531 | 3,499 |
Total | $ 56,450 | $ 87,972 |
From net realized gain |
|
|
Class A | $ 4,058 | $ 3,011 |
Class T | 695 | 560 |
Class C | 2,364 | 852 |
Income Replacement 2018 | 22,722 | 15,393 |
Institutional Class | 2,370 | 512 |
Total | $ 32,209 | $ 20,328 |
Fidelity Income Replacement 2020 Fund |
|
|
From net investment income |
|
|
Class A | $ 4,173 | $ 6,597 |
Class T | 1,701 | 2,545 |
Class C | 2,111 | 2,699 |
Income Replacement 2020 | 48,862 | 61,446 |
Institutional Class | 159 | 563 |
Total | $ 57,006 | $ 73,850 |
From net realized gain |
|
|
Class A | $ 1,965 | $ 1,517 |
Class T | 907 | 694 |
Class C | 1,535 | 1,162 |
Income Replacement 2020 | 20,732 | 11,189 |
Institutional Class | 67 | 119 |
Total | $ 25,206 | $ 14,681 |
Fidelity Income Replacement 2022 Fund |
|
|
From net investment income |
|
|
Class A | $ 4,208 | $ 2,823 |
Class T | 9 | 136 |
Class C | 212 | 226 |
Income Replacement 2022 | 51,037 | 60,936 |
Institutional Class | 42 | 60 |
Total | $ 55,508 | $ 64,181 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2022 Fund |
|
|
From net realized gain |
|
|
Class A | $ 1,895 | $ 242 |
Class T | 3 | 32 |
Class C | 142 | 95 |
Income Replacement 2022 | 19,965 | 10,582 |
Institutional Class | 17 | 11 |
Total | $ 22,022 | $ 10,962 |
Fidelity Income Replacement 2024 Fund |
|
|
From net investment income |
|
|
Class A | $ 2,165 | $ 3,343 |
Class T | 2,037 | 2,287 |
Class C | 1,027 | 1,494 |
Income Replacement 2024 | 22,515 | 25,214 |
Institutional Class | 355 | 445 |
Total | $ 28,099 | $ 32,783 |
From net realized gain |
|
|
Class A | $ 647 | $ 710 |
Class T | 748 | 601 |
Class C | 465 | 575 |
Income Replacement 2024 | 7,431 | 4,764 |
Institutional Class | 108 | 80 |
Total | $ 9,399 | $ 6,730 |
Fidelity Income Replacement 2026 Fund |
|
|
From net investment income |
|
|
Class A | $ 3,781 | $ 1,894 |
Class T | 908 | 1,958 |
Class C | 85 | 1,363 |
Income Replacement 2026 | 21,271 | 29,280 |
Institutional Class | 345 | 440 |
Total | $ 26,390 | $ 34,935 |
From net realized gain |
|
|
Class A | $ 1,333 | $ 335 |
Class T | 329 | 383 |
Class C | 41 | 570 |
Income Replacement 2026 | 7,049 | 5,283 |
Institutional Class | 111 | 75 |
Total | $ 8,863 | $ 6,646 |
Fidelity Income Replacement 2028 Fund |
|
|
From net investment income |
|
|
Class A | $ 1,737 | $ 1,930 |
Class T | 1,484 | 1,741 |
Class C | 228 | 376 |
Income Replacement 2028 | 79,676 | 96,589 |
Institutional Class | 348 | 441 |
Total | $ 83,473 | $ 101,077 |
From net realized gain |
|
|
Class A | $ 602 | $ 325 |
Class T | 568 | 397 |
Class C | 107 | 135 |
Income Replacement 2028 | 25,172 | 16,208 |
Institutional Class | 110 | 73 |
Total | $ 26,559 | $ 17,138 |
Semiannual Report
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2030 Fund |
|
|
From net investment income |
|
|
Class A | $ 1,148 | $ 1,185 |
Class T | 159 | 164 |
Class C | 2,955 | 2,987 |
Income Replacement 2030 | 50,704 | 72,596 |
Institutional Class | 375 | 441 |
Total | $ 55,341 | $ 77,373 |
From net realized gain |
|
|
Class A | $ 386 | $ 209 |
Class T | 60 | 38 |
Class C | 1,336 | 991 |
Income Replacement 2030 | 15,711 | 12,458 |
Institutional Class | 111 | 70 |
Total | $ 17,604 | $ 13,766 |
Fidelity Income Replacement 2032 Fund |
|
|
From net investment income |
|
|
Class A | $ 2,892 | $ 3,369 |
Class T | 282 | 301 |
Class C | 516 | 213 |
Income Replacement 2032 | 54,410 | 35,223 |
Institutional Class | 242 | 297 |
Total | $ 58,342 | $ 39,403 |
From net realized gain |
|
|
Class A | $ 1,834 | $ 7,528 |
Class T | 199 | 816 |
Class C | 440 | 1,719 |
Income Replacement 2032 | 30,021 | 95,178 |
Institutional Class | 140 | 574 |
Total | $ 32,634 | $ 105,815 |
Fidelity Income Replacement 2034 Fund |
|
|
From net investment income |
|
|
Class A | $ 246 | $ 276 |
Class T | 291 | 304 |
Class C | 467 | 184 |
Income Replacement 2034 | 32,978 | 37,641 |
Institutional Class | 1,847 | 2,077 |
Total | $ 35,829 | $ 40,482 |
From net realized gain |
|
|
Class A | $ 76 | $ 50 |
Class T | 99 | 65 |
Class C | 184 | 49 |
Income Replacement 2034 | 9,314 | 5,761 |
Institutional Class | 521 | 307 |
Total | $ 10,194 | $ 6,232 |
Fidelity Income Replacement 2036 Fund |
|
|
From net investment income |
|
|
Class A | $ 325 | $ 435 |
Class T | 3,490 | 3,886 |
Class C | 1,828 | 1,851 |
Income Replacement 2036 | 44,233 | 44,807 |
Institutional Class | 9 | 346 |
Total | $ 49,885 | $ 51,325 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
Six months ended | Year ended | |
Fidelity Income Replacement 2036 Fund |
|
|
From net realized gain |
|
|
Class A | $ 81 | $ 75 |
Class T | 1,001 | 793 |
Class C | 622 | 576 |
Income Replacement 2036 | 11,064 | 6,275 |
Institutional Class | 2 | 78 |
Total | $ 12,770 | $ 7,797 |
Fidelity Income Replacement 2038 Fund |
|
|
From net investment income |
|
|
Class A | $ 804 | $ 670 |
Class T | 1,357 | 1,443 |
Class C | 806 | 658 |
Income Replacement 2038 | 31,311 | 24,679 |
Institutional Class | 398 | 460 |
Total | $ 34,676 | $ 27,910 |
From net realized gain |
|
|
Class A | $ 210 | $ 96 |
Class T | 429 | 297 |
Class C | 305 | 202 |
Income Replacement 2038 | 8,397 | 3,260 |
Institutional Class | 106 | 69 |
Total | $ 9,447 | $ 3,924 |
Fidelity Income Replacement 2040 Fund |
|
|
From net investment income |
|
|
Class A | $ 106 | $ 967 |
Class T | 213 | 1,654 |
Class C | 1,204 | 819 |
Income Replacement 2040 | 41,482 | 36,057 |
Institutional Class | 32 | 532 |
Total | $ 43,037 | $ 40,029 |
From net realized gain |
|
|
Class A | $ 37 | $ 224 |
Class T | 107 | 359 |
Class C | 555 | 216 |
Income Replacement 2040 | 13,452 | 4,701 |
Institutional Class | 10 | 124 |
Total | $ 14,161 | $ 5,624 |
Fidelity Income Replacement 2042 Fund |
|
|
From net investment income |
|
|
Class A | $ 314 | $ 362 |
Class T | 1,867 | 503 |
Class C | 296 | 232 |
Income Replacement 2042 | 148,180 | 115,451 |
Institutional Class | 424 | 475 |
Total | $ 151,081 | $ 117,023 |
From net realized gain |
|
|
Class A | $ 74 | $ 53 |
Class T | 482 | 67 |
Class C | 89 | 65 |
Income Replacement 2042 | 33,444 | 15,682 |
Institutional Class | 93 | 68 |
Total | $ 34,182 | $ 15,935 |
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2016 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 142 | 365 | 7,195 | 17,945 |
Shares redeemed | (1,784) | (18,902) | (90,702) | (929,690) |
Net increase (decrease) | (1,642) | (18,537) | $ (83,507) | $ (911,745) |
Class T |
|
|
|
|
Shares sold | - | 265 | $ - | $ 12,983 |
Reinvestment of distributions | 24 | 63 | 1,214 | 3,101 |
Shares redeemed | (823) | (7,104) | (41,841) | (347,550) |
Net increase (decrease) | (799) | (6,776) | $ (40,627) | $ (331,466) |
Class C |
|
|
|
|
Shares sold | - | 6,125 | $ - | $ 300,000 |
Reinvestment of distributions | 84 | 157 | 4,263 | 7,690 |
Shares redeemed | (2,109) | (3,855) | (107,326) | (191,514) |
Net increase (decrease) | (2,025) | 2,427 | $ (103,063) | $ 116,176 |
Income Replacement 2016 |
|
|
|
|
Shares sold | 18,313 | 28,998 | $ 931,724 | $ 1,428,856 |
Reinvestment of distributions | 711 | 1,178 | 36,119 | 57,868 |
Shares redeemed | (23,078) | (46,750) | (1,174,554) | (2,309,726) |
Net increase (decrease) | (4,054) | (16,574) | $ (206,711) | $ (823,002) |
Institutional Class |
|
|
|
|
Shares sold | - | 752 | $ - | $ 36,796 |
Reinvestment of distributions | 9 | 15 | 451 | 731 |
Shares redeemed | (285) | (675) | (14,428) | (33,700) |
Net increase (decrease) | (276) | 92 | $ (13,977) | $ 3,827 |
Fidelity Income Replacement 2018 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 1,088 | $ - | $ 54,624 |
Reinvestment of distributions | 136 | 161 | 6,960 | 7,873 |
Shares redeemed | (1,223) | (1,911) | (62,567) | (94,143) |
Net increase (decrease) | (1,087) | (662) | $ (55,607) | $ (31,646) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 16 | 18 | 829 | 863 |
Shares redeemed | (169) | (458) | (8,666) | (22,651) |
Net increase (decrease) | (153) | (440) | $ (7,837) | $ (21,788) |
Class C |
|
|
|
|
Shares sold | - | 4,696 | $ - | $ 235,500 |
Reinvestment of distributions | 86 | 47 | 4,364 | 2,324 |
Shares redeemed | (660) | (586) | (33,734) | (28,893) |
Net increase (decrease) | (574) | 4,157 | $ (29,370) | $ 208,931 |
Income Replacement 2018 |
|
|
|
|
Shares sold | 9,114 | 19,759 | $ 466,524 | $ 973,771 |
Reinvestment of distributions | 562 | 478 | 28,766 | 23,334 |
Shares redeemed | (14,109) | (19,401) | (721,500) | (957,919) |
Net increase (decrease) | (4,433) | 836 | $ (226,210) | $ 39,186 |
Institutional Class |
|
|
|
|
Shares sold | 2,812 | 6,698 | $ 143,858 | $ 338,000 |
Reinvestment of distributions | 103 | 12 | 5,247 | 589 |
Shares redeemed | (3,543) | (3,839) | (181,936) | (185,000) |
Net increase (decrease) | (628) | 2,871 | $ (32,831) | $ 153,589 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2020 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 179 | $ 17 | $ 9,014 |
Reinvestment of distributions | 84 | 105 | 4,308 | 5,145 |
Shares redeemed | (560) | (946) | (28,978) | (46,428) |
Net increase (decrease) | (476) | (662) | $ (24,653) | $ (32,269) |
Class T |
|
|
|
|
Shares sold | 1 | - | $ 40 | $ - |
Reinvestment of distributions | 43 | 54 | 2,231 | 2,633 |
Shares redeemed | (179) | (240) | (9,280) | (11,738) |
Net increase (decrease) | (135) | (186) | $ (7,009) | $ (9,105) |
Class C |
|
|
|
|
Shares sold | 568 | 1,771 | $ 29,000 | $ 87,281 |
Reinvestment of distributions | 51 | 57 | 2,614 | 2,797 |
Shares redeemed | (552) | (355) | (28,500) | (17,952) |
Net increase (decrease) | 67 | 1,473 | $ 3,114 | $ 72,126 |
Income Replacement 2020 |
|
|
|
|
Shares sold | 26,206 | 29,581 | $ 1,354,259 | $ 1,469,844 |
Reinvestment of distributions | 728 | 529 | 37,464 | 25,967 |
Shares redeemed | (12,999) | (13,868) | (672,215) | (675,878) |
Net increase (decrease) | 13,935 | 16,242 | $ 719,508 | $ 819,933 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 5 | 14 | 226 | 682 |
Shares redeemed | - | (399) | - | (20,000) |
Net increase (decrease) | 5 | (385) | $ 226 | $ (19,318) |
Fidelity Income Replacement 2022 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 6,423 | $ - | $ 316,060 |
Reinvestment of distributions | 61 | 23 | 3,145 | 1,138 |
Shares redeemed | (239) | (243) | (12,313) | (12,069) |
Net increase (decrease) | (178) | 6,203 | $ (9,168) | $ 305,129 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | - | 3 | 12 | 168 |
Shares redeemed | (91) | (357) | (4,747) | (17,200) |
Net increase (decrease) | (91) | (354) | $ (4,735) | $ (17,032) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 1 | 39 | 35 |
Shares redeemed | - | (92) | - | (4,361) |
Net increase (decrease) | 1 | (91) | $ 39 | $ (4,326) |
Income Replacement 2022 |
|
|
|
|
Shares sold | 10,053 | 29,354 | $ 519,150 | $ 1,440,819 |
Reinvestment of distributions | 530 | 314 | 27,261 | 15,180 |
Shares redeemed | (5,583) | (18,125) | (287,089) | (881,196) |
Net increase (decrease) | 5,000 | 11,543 | $ 259,322 | $ 574,803 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 1 | 59 | 71 |
Shares redeemed | - | (11) | - | (514) |
Net increase (decrease) | 1 | (10) | $ 59 | $ (443) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2024 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 4,822 | 622 | $ 249,930 | $ 30,000 |
Reinvestment of distributions | 41 | 61 | 2,105 | 2,969 |
Shares redeemed | (1,305) | (226) | (67,177) | (10,864) |
Net increase (decrease) | 3,558 | 457 | $ 184,858 | $ 22,105 |
Class T |
|
|
|
|
Shares sold | - | 2,920 | $ - | $ 135,760 |
Reinvestment of distributions | 28 | 22 | 1,435 | 1,077 |
Shares redeemed | (95) | (289) | (4,901) | (14,000) |
Net increase (decrease) | (67) | 2,653 | $ (3,466) | $ 122,837 |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 6 | 4 | 313 | 209 |
Shares redeemed | (1,281) | (75) | (66,125) | (3,683) |
Net increase (decrease) | (1,275) | (71) | $ (65,812) | $ (3,474) |
Income Replacement 2024 |
|
|
|
|
Shares sold | 10,317 | 16,063 | $ 537,857 | $ 781,886 |
Reinvestment of distributions | 288 | 214 | 14,828 | 10,356 |
Shares redeemed | (6,442) | (15,497) | (333,583) | (749,124) |
Net increase (decrease) | 4,163 | 780 | $ 219,102 | $ 43,118 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 462 | 525 |
Shares redeemed | - | (79) | - | (3,719) |
Net increase (decrease) | 9 | (68) | $ 462 | $ (3,194) |
Fidelity Income Replacement 2026 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 3,297 | 671 | $ 164,296 | $ 33,486 |
Reinvestment of distributions | 86 | 21 | 4,372 | 1,014 |
Shares redeemed | (311) | (98) | (15,970) | (4,755) |
Net increase (decrease) | 3,072 | 594 | $ 152,698 | $ 29,745 |
Class T |
|
|
|
|
Shares sold | 57 | 3,515 | $ 2,971 | $ 173,430 |
Reinvestment of distributions | 19 | 39 | 969 | 1,904 |
Shares redeemed | (4,547) | (236) | (228,111) | (11,308) |
Net increase (decrease) | (4,471) | 3,318 | $ (224,171) | $ 164,026 |
Class C |
|
|
|
|
Shares sold | - | - | $ 4 | $ - |
Reinvestment of distributions | 3 | 41 | 126 | 1,933 |
Shares redeemed | - | (3,579) | - | (176,288) |
Net increase (decrease) | 3 | (3,538) | $ 130 | $ (174,355) |
Income Replacement 2026 |
|
|
|
|
Shares sold | 7,827 | 15,104 | $ 398,432 | $ 721,544 |
Reinvestment of distributions | 351 | 331 | 17,944 | 15,918 |
Shares redeemed | (6,422) | (22,948) | (332,935) | (1,095,887) |
Net increase (decrease) | 1,756 | (7,513) | $ 83,441 | $ (358,425) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 456 | 515 |
Shares redeemed | - | (79) | - | (3,694) |
Net increase (decrease) | 9 | (68) | $ 456 | $ (3,179) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2028 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | 1,288 | $ - | $ 61,784 |
Reinvestment of distributions | 45 | 45 | 2,339 | 2,202 |
Shares redeemed | - | (1,360) | - | (64,118) |
Net increase (decrease) | 45 | (27) | $ 2,339 | $ (132) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 15 | 8 | 794 | 397 |
Shares redeemed | (37) | (83) | (1,935) | (4,076) |
Net increase (decrease) | (22) | (75) | $ (1,141) | $ (3,679) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 4 | 3 | 196 | 163 |
Shares redeemed | (183) | (326) | (9,500) | (16,000) |
Net increase (decrease) | (179) | (323) | $ (9,304) | $ (15,837) |
Income Replacement 2028 |
|
|
|
|
Shares sold | 10,846 | 18,525 | $ 562,138 | $ 916,759 |
Reinvestment of distributions | 954 | 574 | 49,221 | 27,535 |
Shares redeemed | (5,521) | (27,768) | (286,737) | (1,327,202) |
Net increase (decrease) | 6,279 | (8,669) | $ 324,622 | $ (382,908) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 11 | 458 | 514 |
Shares redeemed | - | (79) | - | (3,680) |
Net increase (decrease) | 9 | (68) | $ 458 | $ (3,166) |
Fidelity Income Replacement 2030 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 3 | 508 | $ 159 | $ 25,016 |
Reinvestment of distributions | 17 | 6 | 870 | 292 |
Shares redeemed | (20) | (249) | (1,035) | (12,382) |
Net increase (decrease) | - | 265 | $ (6) | $ 12,926 |
Class T |
|
|
|
|
Shares sold | 5 | 130 | $ 259 | $ 5,786 |
Reinvestment of distributions | 4 | 4 | 219 | 202 |
Shares redeemed | - | (172) | - | (7,763) |
Net increase (decrease) | 9 | (38) | $ 478 | $ (1,775) |
Class C |
|
|
|
|
Shares sold | - | 1,702 | $ - | $ 80,000 |
Reinvestment of distributions | 49 | 44 | 2,479 | 2,115 |
Shares redeemed | (447) | (960) | (22,924) | (46,183) |
Net increase (decrease) | (398) | 786 | $ (20,445) | $ 35,932 |
Income Replacement 2030 |
|
|
|
|
Shares sold | 8,790 | 18,798 | $ 455,387 | $ 902,632 |
Reinvestment of distributions | 803 | 726 | 41,141 | 34,661 |
Shares redeemed | (10,595) | (28,344) | (541,570) | (1,372,064) |
Net increase (decrease) | (1,002) | (8,820) | $ (45,042) | $ (434,771) |
Institutional Class |
|
|
|
|
Shares sold | 538 | - | $ 27,920 | $ - |
Reinvestment of distributions | 9 | 11 | 486 | 511 |
Shares redeemed | - | (79) | - | (3,667) |
Net increase (decrease) | 547 | (68) | $ 28,406 | $ (3,156) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2032 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 94 | 220 | 4,569 | 10,424 |
Shares redeemed | (161) | (52) | (8,063) | (2,367) |
Net increase (decrease) | (67) | 168 | $ (3,494) | $ 8,057 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 9 | 24 | 481 | 1,117 |
Shares redeemed | - | (78) | - | (3,575) |
Net increase (decrease) | 9 | (54) | $ 481 | $ (2,458) |
Class C |
|
|
|
|
Shares sold | - | 660 | $ - | $ 32,801 |
Reinvestment of distributions | 20 | 41 | 957 | 1,932 |
Shares redeemed | - | (65) | - | (2,961) |
Net increase (decrease) | 20 | 636 | $ 957 | $ 31,772 |
Income Replacement 2032 |
|
|
|
|
Shares sold | 20,621 | 42,168 | $ 1,012,599 | $ 2,026,945 |
Reinvestment of distributions | 1,308 | 2,499 | 63,971 | 118,902 |
Shares redeemed | (7,595) | (8,682) | (378,507) | (414,301) |
Net increase (decrease) | 14,334 | 35,985 | $ 698,063 | $ 1,731,546 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 18 | 382 | 871 |
Shares redeemed | - | (54) | - | (2,502) |
Net increase (decrease) | 8 | (36) | $ 382 | $ (1,631) |
Fidelity Income Replacement 2034 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 6 | 7 | 322 | 326 |
Shares redeemed | - | (59) | - | (2,697) |
Net increase (decrease) | 6 | (52) | $ 322 | $ (2,371) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 8 | 390 | 369 |
Shares redeemed | - | (77) | - | (3,548) |
Net increase (decrease) | 8 | (69) | $ 390 | $ (3,179) |
Class C |
|
|
|
|
Shares sold | 582 | 517 | $ 30,000 | $ 25,724 |
Reinvestment of distributions | 13 | 5 | 651 | 233 |
Shares redeemed | (582) | (58) | (29,859) | (2,686) |
Net increase (decrease) | 13 | 464 | $ 792 | $ 23,271 |
Income Replacement 2034 |
|
|
|
|
Shares sold | 6,069 | 3,140 | $ 314,745 | $ 153,765 |
Reinvestment of distributions | 489 | 241 | 24,853 | 11,289 |
Shares redeemed | (1,168) | (2,549) | (59,892) | (121,949) |
Net increase (decrease) | 5,390 | 832 | $ 279,706 | $ 43,105 |
Institutional Class |
|
|
|
|
Shares sold | - | 258 | $ - | $ 12,168 |
Reinvestment of distributions | 47 | 50 | 2,368 | 2,360 |
Shares redeemed | (12) | (14) | (591) | (664) |
Net increase (decrease) | 35 | 294 | $ 1,777 | $ 13,864 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2036 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 11 | 406 | 510 |
Shares redeemed | (112) | (92) | (5,700) | (4,164) |
Net increase (decrease) | (104) | (81) | $ (5,294) | $ (3,654) |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 54 | 31 | 2,706 | 1,410 |
Shares redeemed | (165) | (264) | (8,395) | (12,509) |
Net increase (decrease) | (111) | (233) | $ (5,689) | $ (11,099) |
Class C |
|
|
|
|
Shares sold | - | 30 | $ - | $ 1,500 |
Reinvestment of distributions | 49 | 52 | 2,450 | 2,427 |
Shares redeemed | (140) | (959) | (7,074) | (46,079) |
Net increase (decrease) | (91) | (877) | $ (4,624) | $ (42,152) |
Income Replacement 2036 |
|
|
|
|
Shares sold | 14,595 | 20,071 | $ 739,494 | $ 968,864 |
Reinvestment of distributions | 566 | 223 | 28,539 | 10,328 |
Shares redeemed | (974) | (22,004) | (49,621) | (1,034,063) |
Net increase (decrease) | 14,187 | (1,710) | $ 718,412 | $ (54,871) |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | - | 9 | 12 | 424 |
Shares redeemed | - | (563) | - | (27,876) |
Net increase (decrease) | - | (554) | $ 12 | $ (27,452) |
Fidelity Income Replacement 2038 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 577 | 851 | $ 29,138 | $ 39,713 |
Reinvestment of distributions | 20 | 16 | 1,014 | 766 |
Shares redeemed | (610) | - | (30,000) | - |
Net increase (decrease) | (13) | 867 | $ 152 | $ 40,479 |
Class T |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 22 | 13 | 1,136 | 612 |
Shares redeemed | (39) | (465) | (1,970) | (20,928) |
Net increase (decrease) | (17) | (452) | $ (834) | $ (20,316) |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 22 | 19 | 1,111 | 859 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 22 | 19 | $ 1,111 | $ 859 |
Income Replacement 2038 |
|
|
|
|
Shares sold | 6,786 | 20,341 | $ 339,548 | $ 976,884 |
Reinvestment of distributions | 586 | 325 | 29,113 | 15,074 |
Shares redeemed | (3,195) | (11,169) | (159,002) | (518,978) |
Net increase (decrease) | 4,177 | 9,497 | $ 209,659 | $ 472,980 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 11 | 504 | 529 |
Shares redeemed | - | (86) | - | (3,849) |
Net increase (decrease) | 10 | (75) | $ 504 | $ (3,320) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Fidelity Income Replacement 2040 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 4 | 7 | $ 190 | $ 317 |
Reinvestment of distributions | 3 | 26 | 143 | 1,191 |
Shares redeemed | - | (1,864) | - | (90,268) |
Net increase (decrease) | 7 | (1,831) | $ 333 | $ (88,760) |
Class T |
|
|
|
|
Shares sold | 45 | 63 | $ 2,240 | $ 2,938 |
Reinvestment of distributions | 6 | 44 | 320 | 2,013 |
Shares redeemed | (844) | (1,755) | (42,976) | (82,476) |
Net increase (decrease) | (793) | (1,648) | $ (40,416) | $ (77,525) |
Class C |
|
|
|
|
Shares sold | - | 543 | $ - | $ 26,345 |
Reinvestment of distributions | 36 | 22 | 1,759 | 1,035 |
Shares redeemed | - | - | - | - |
Net increase (decrease) | 36 | 565 | $ 1,759 | $ 27,380 |
Income Replacement 2040 |
|
|
|
|
Shares sold | 7,591 | 26,082 | $ 383,659 | $ 1,264,360 |
Reinvestment of distributions | 810 | 331 | 40,386 | 15,315 |
Shares redeemed | (3,754) | (12,843) | (187,218) | (618,513) |
Net increase (decrease) | 4,647 | 13,570 | $ 236,827 | $ 661,162 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 1 | 14 | 42 | 656 |
Shares redeemed | - | (961) | - | (44,356) |
Net increase (decrease) | 1 | (947) | $ 42 | $ (43,700) |
Fidelity Income Replacement 2042 Fund |
|
|
|
|
Class A |
|
|
|
|
Shares sold | 5 | 245 | $ 254 | $ 11,886 |
Reinvestment of distributions | 8 | 9 | 388 | 415 |
Shares redeemed | - | (304) | - | (14,424) |
Net increase (decrease) | 13 | (50) | $ 642 | $ (2,123) |
Class T |
|
|
|
|
Shares sold | - | 2,200 | $ - | $ 105,795 |
Reinvestment of distributions | 47 | 12 | 2,349 | 570 |
Shares redeemed | - | (84) | - | (3,786) |
Net increase (decrease) | 47 | 2,128 | $ 2,349 | $ 102,579 |
Class C |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 8 | 6 | 385 | 297 |
Shares redeemed | - | (83) | - | (3,716) |
Net increase (decrease) | 8 | (77) | $ 385 | $ (3,419) |
Income Replacement 2042 |
|
|
|
|
Shares sold | 82,751 | 52,015 | $ 4,136,675 | $ 2,501,513 |
Reinvestment of distributions | 2,496 | 1,220 | 124,896 | 56,045 |
Shares redeemed | (20,096) | (20,364) | (1,018,237) | (979,817) |
Net increase (decrease) | 65,151 | 32,871 | $ 3,243,334 | $ 1,577,741 |
Institutional Class |
|
|
|
|
Shares sold | - | - | $ - | $ - |
Reinvestment of distributions | 10 | 12 | 517 | 543 |
Shares redeemed | - | (87) | - | (3,858) |
Net increase (decrease) | 10 | (75) | $ 517 | $ (3,315) |
Semiannual Report
Notes to Financial Statements (Unaudited) - 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, investments by the Funds within their principal 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 | Fidelity Income |
Fidelity Series Broad Market Opportunities Fund | 11% | 22% |
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% |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Income Replacement Funds
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract (the Advisory Contract) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contract, including the services and support provided to each fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of each fund's Advisory Contract. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contract. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contract. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contract. In reaching its determination, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contract is in the best interests of each fund and its shareholders and the fact that no fees are payable under the Advisory Contract is fair and reasonable. The Board's decision to renew the Advisory Contract was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. In reaching its determination, the Board was aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, Strategic Advisers, Inc. (the Investment Adviser), including the backgrounds of the funds' investment personnel, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of the Investment Adviser's investment staff, including its size, education, experience, and resources, as well as the Investment Adviser's approach to recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Adviser's trading and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Adviser and its affiliates under the Advisory Contract and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv) continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors; and (ix) reducing certain transfer agent fee rates.
Semiannual Report
Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance for each class, as well as each fund's relative investment performance for each class measured over multiple periods against a proprietary custom index. The Board noted that FMR believes that no meaningful peer group exists for the funds, given that competitor funds with the same target date can differ significantly in their asset allocation strategy, degree of active management, and/or glide path construction.
Because each fund had been in existence less than five calendar years, for Income Replacement 2016 Fund, Income Replacement 2018 Fund, Income Replacement 2020 Fund, Income Replacement 2022 Fund, Income Replacement 2028 Fund, Income Replacement 2030 Fund, and Income Replacement 2032 Fund, the following charts considered by the Board show, over the one- and three-year periods ended December 31, 2011, the cumulative total returns of the retail class and Class C of the fund and the cumulative total returns of a proprietary custom index ("benchmark") and, for Income Replacement 2024 Fund, Income Replacement 2026 Fund, Income Replacement 2034 Fund, Income Replacement 2036 Fund, Income Replacement 2038 Fund, Income Replacement 2040 Fund, and Income Replacement 2042 Fund, the following charts considered by the Board show, over the one- and three-year periods ended December 31, 2011, the cumulative total returns of Institutional Class (Class I) and Class C of the fund and the cumulative total returns of its benchmark. The returns of the retail class or Institutional Class (Class I), as applicable, and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance).
For each fund, the proprietary custom index is an index developed by FMR that represents the performance of the fund's asset classes according to their respective weightings.
Income Replacement 2016 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2018 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2020 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2022 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2024 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2026 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2028 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2030 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2032 Fund
The Board noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2034 Fund
The Board noted that the investment performance of Institutional Class C (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2036 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Income Replacement 2038 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Income Replacement 2040 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2042 Fund
The Board noted that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three-year period, although the fund's one-year total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contract should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board noted that the funds do not pay the Investment Adviser a management fee for investment advisory services. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes, and also considered that each fund bears indirectly the expenses of the underlying funds in which it invests. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 0% means that 100% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Semiannual Report
Income Replacement 2016 Fund
Income Replacement 2018 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2020 Fund
Income Replacement 2022 Fund
Semiannual Report
Income Replacement 2024 Fund
Income Replacement 2026 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2028 Fund
Income Replacement 2030 Fund
Semiannual Report
Income Replacement 2032 Fund
Income Replacement 2034 Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Income Replacement 2036 Fund
Income Replacement 2038 Fund
Semiannual Report
Income Replacement 2040 Fund
Income Replacement 2042 Fund
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of the total expense ratio of each class of each fund, the Board noted that each fund invests in Institutional Class of the underlying fund (if that underlying fund offers multiple classes of shares) to avoid charging fund-paid 12b-1 fees at both fund levels. The Board considered that the funds do not pay transfer agent fees. Instead, Institutional Class of each underlying fund (or the underlying fund, if that underlying fund does not offer multiple classes of shares) bears its pro rata portion of each fund's transfer agent fee according to the percentage of each fund's assets invested in that underlying fund. The Board further noted that the Investment Adviser pays all other expenses of each fund, with limited exceptions.
The Board noted that the total expense ratio of each of Class A, Class C, Institutional Class, and the retail class of each fund ranked below its competitive median for 2011 and the total expense ratio of Class T of each fund ranked equal to its competitive median for 2011.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of each fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund were not relevant to the renewal of each fund's Advisory Contract because the funds do not pay management fees and FMR pays all other expenses of each fund, with limited exceptions.
Economies of Scale. The Board concluded that because the funds do not pay management fees and the Investment Adviser pays all other expenses of each fund, with limited exceptions, economies of scale cannot be realized by the funds, but may be realized by the other Fidelity funds in which each fund invests, many of which may benefit from breakpoints in the group fee arrangement.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes; (ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contract should be renewed.
Semiannual 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
ARWI-USAN-0313 1.848186.105
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
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 Fidelity Income Fund's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Income Fund's (the "Trust") 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) | Not applicable. |
(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: | March 26, 2013 |
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: | March 26, 2013 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | March 26, 2013 |