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 811-04085
Fidelity Income Fund
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
Date of reporting period: | January 31, 2020 |
Item 1.
Reports to Stockholders
Fidelity Managed Retirement Income Fund℠
Fidelity Managed Retirement 2005 Fund℠
Fidelity Managed Retirement 2010 Fund℠
Fidelity Managed Retirement 2015 Fund℠
Fidelity Managed Retirement 2020 Fund℠
Fidelity Managed Retirement 2025 Fund℠
Fidelity Managed Retirement 2030 Fund℠
Semi-Annual Report
January 31, 2020
Includes Fidelity and Fidelity Advisor share classes
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Fidelity Managed Retirement Income Fund℠ | |
Fidelity Managed Retirement 2005 Fund℠ | |
Fidelity Managed Retirement 2010 Fund℠ | |
Fidelity Managed Retirement 2015 Fund℠ | |
Fidelity Managed Retirement 2020 Fund℠ | |
Fidelity Managed Retirement 2025 Fund℠ | |
Fidelity Managed Retirement 2030 Fund℠ | |
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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Note to shareholders:
As part of a regular review of its organizational structure, Fidelity has decided to merge certain entities to streamline operations, increase efficiency, simplify reporting, and reduce legal, compliance, and accounting complexity and costs. In separate events, Fidelity has merged four of its investment advisers and two of its broker-dealers.
Effective on or about January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to “Fidelity Management & Research Company LLC”.
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. (“FIISC”). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to “Fidelity Distributors Company LLC”.
These mergers are not expected to affect fund shareholders or Fidelity clients, nor are they expected to result in any changes to the day-to-day management of Fidelity’s brokerage services, the Fidelity funds, their investment policies and practices, their portfolio management teams, or the funds’ expenses.
Fidelity Managed Retirement Income Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Treasury Bill Index Fund | 14.0 |
| Fidelity Series Inflation-Protected Bond Index Fund | 12.0 |
| Fidelity Series Investment Grade Bond Fund | 11.6 |
| Fidelity Series Government Bond Index Fund | 11.1 |
| Fidelity Series Corporate Bond Fund | 8.1 |
| Fidelity Series Investment Grade Securitized Fund | 7.9 |
| Fidelity Series Short-Term Credit Fund | 4.7 |
| Fidelity Series Government Money Market Fund 1.62% | 4.6 |
| Fidelity Series Emerging Markets Opportunities Fund | 4.3 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| 81.8 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 10.1% | |
| International Equity Funds | 11.3% | |
| Bond Funds | 55.3% | |
| Short-Term Funds | 23.3% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement Income Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 10.1% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 2,295 | $23,892 | |
| Fidelity Series Blue Chip Growth Fund (a) | 2,699 | 41,800 | |
| Fidelity Series Commodity Strategy Fund (a) | 69,980 | 308,612 | |
| Fidelity Series Growth Company Fund (a) | 4,691 | 85,758 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 6,293 | 102,256 | |
| Fidelity Series Large Cap Stock Fund (a) | 5,863 | 90,408 | |
| Fidelity Series Large Cap Value Index Fund (a) | 1,939 | 25,032 | |
| Fidelity Series Opportunistic Insights Fund (a) | 2,508 | 46,502 | |
| Fidelity Series Small Cap Discovery Fund (a) | 1,028 | 11,756 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 2,701 | 37,088 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 5,609 | 69,892 | |
| Fidelity Series Value Discovery Fund (a) | 3,817 | 49,653 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $890,770) | 892,649 | ||
| International Equity Funds - 11.3% | |||
| Fidelity Series Canada Fund (a) | 3,114 | 34,909 | |
| Fidelity Series Emerging Markets Fund (a) | 4,506 | 42,583 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 19,171 | 376,903 | |
| Fidelity Series International Growth Fund (a) | 11,284 | 196,009 | |
| Fidelity Series International Small Cap Fund (a) | 2,651 | 44,513 | |
| Fidelity Series International Value Fund (a) | 19,391 | 185,185 | |
| Fidelity Series Overseas Fund (a) | 10,975 | 116,888 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $961,409) | 996,990 | ||
| Bond Funds - 55.3% | |||
| Fidelity Series Corporate Bond Fund (a) | 64,750 | 710,302 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 5,727 | 55,498 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,400 | 13,023 | |
| Fidelity Series Government Bond Index Fund (a) | 91,333 | 979,088 | |
| Fidelity Series High Income Fund (a) | 6,943 | 65,960 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 104,024 | 1,058,962 | |
| Fidelity Series International Credit Fund (a) | 433 | 4,464 | |
| Fidelity Series Investment Grade Bond Fund (a) | 86,690 | 1,021,213 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 67,311 | 698,011 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 23,887 | 225,733 | |
| Fidelity Series Real Estate Income Fund (a) | 3,753 | 42,336 | |
| TOTAL BOND FUNDS | |||
| (Cost $4,682,270) | 4,874,590 | ||
| Short-Term Funds - 23.3% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 410,600 | 410,600 | |
| Fidelity Series Short-Term Credit Fund (a) | 40,768 | 412,980 | |
| Fidelity Series Treasury Bill Index Fund (a) | 123,524 | 1,235,240 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $2,053,382) | 2,058,820 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $8,587,831) | 8,823,049 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (3,485) | ||
| NET ASSETS - 100% | $8,819,564 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $20,173 | $10,649 | $7,443 | $1,530 | $(755) | $1,268 | $23,892 |
| Fidelity Series Blue Chip Growth Fund | 34,827 | 17,711 | 10,973 | 3,985 | 1 | 234 | 41,800 |
| Fidelity Series Canada Fund | 17,267 | 18,372 | 1,227 | 485 | (8) | 505 | 34,909 |
| Fidelity Series Commodity Strategy Fund | 220,681 | 135,262 | 32,281 | 3,786 | (1,313) | (13,737) | 308,612 |
| Fidelity Series Corporate Bond Fund | 488,227 | 254,933 | 56,855 | 11,913 | (35) | 24,032 | 710,302 |
| Fidelity Series Emerging Markets Debt Fund | 45,351 | 19,777 | 9,313 | 1,403 | (444) | 127 | 55,498 |
| Fidelity Series Emerging Markets Fund | 23,291 | 22,151 | 2,948 | 828 | (9) | 98 | 42,583 |
| Fidelity Series Emerging Markets Opportunities Fund | 209,317 | 193,094 | 38,573 | 8,303 | 46 | 13,019 | 376,903 |
| Fidelity Series Floating Rate High Income Fund | 9,415 | 4,402 | 780 | 308 | (2) | (12) | 13,023 |
| Fidelity Series Government Bond Index Fund | 669,456 | 352,098 | 65,129 | 10,560 | (134) | 22,797 | 979,088 |
| Fidelity Series Government Money Market Fund 1.62% | 289,722 | 145,548 | 24,670 | 3,167 | -- | -- | 410,600 |
| Fidelity Series Growth Company Fund | 69,699 | 35,995 | 22,773 | 7,909 | 366 | 2,471 | 85,758 |
| Fidelity Series High Income Fund | 47,607 | 22,240 | 3,917 | 1,774 | 1 | 29 | 65,960 |
| Fidelity Series Inflation-Protected Bond Index Fund | 846,480 | 368,258 | 170,413 | 11,711 | 1,343 | 13,294 | 1,058,962 |
| Fidelity Series International Credit Fund | 4,229 | 203 | -- | 203 | -- | 32 | 4,464 |
| Fidelity Series International Growth Fund | 158,131 | 65,143 | 38,161 | 6,095 | 588 | 10,308 | 196,009 |
| Fidelity Series International Small Cap Fund | 34,041 | 17,270 | 8,696 | 1,839 | 59 | 1,839 | 44,513 |
| Fidelity Series International Value Fund | 148,030 | 68,817 | 33,892 | 6,764 | (413) | 2,643 | 185,185 |
| Fidelity Series Intrinsic Opportunities Fund | 85,017 | 50,226 | 31,905 | 4,549 | (289) | (793) | 102,256 |
| Fidelity Series Investment Grade Bond Fund | 712,639 | 358,329 | 74,497 | 12,653 | (12) | 24,754 | 1,021,213 |
| Fidelity Series Investment Grade Securitized Fund | 505,225 | 248,429 | 56,646 | 12,918 | (35) | 1,038 | 698,011 |
| Fidelity Series Large Cap Stock Fund | 74,623 | 41,406 | 27,488 | 4,375 | 97 | 1,770 | 90,408 |
| Fidelity Series Large Cap Value Index Fund | 21,580 | 11,093 | 7,450 | 1,363 | 50 | (241) | 25,032 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 227,793 | 99,253 | 108,842 | 15,917 | 7,976 | (447) | 225,733 |
| Fidelity Series Opportunistic Insights Fund | 38,453 | 18,544 | 10,392 | 3,369 | 13 | (116) | 46,502 |
| Fidelity Series Overseas Fund | 3,579 | 109,270 | -- | 295 | -- | 4,039 | 116,888 |
| Fidelity Series Real Estate Income Fund | 30,112 | 14,384 | 2,445 | 1,563 | 3 | 282 | 42,336 |
| Fidelity Series Short-Term Credit Fund | 289,787 | 145,689 | 25,624 | 4,567 | 3 | 3,125 | 412,980 |
| Fidelity Series Small Cap Discovery Fund | 10,573 | 4,666 | 3,628 | 453 | (16) | 161 | 11,756 |
| Fidelity Series Small Cap Opportunities Fund | 31,878 | 14,610 | 8,604 | 2,178 | (58) | (738) | 37,088 |
| Fidelity Series Stock Selector Large Cap Value Fund | 57,653 | 30,459 | 18,474 | 2,977 | (133) | 387 | 69,892 |
| Fidelity Series Treasury Bill Index Fund | 868,825 | 439,760 | 74,202 | 9,032 | (1) | 858 | 1,235,240 |
| Fidelity Series Value Discovery Fund | 41,264 | 23,246 | 14,607 | 1,680 | (65) | (185) | 49,653 |
| $6,334,945 | $3,361,287 | $992,848 | $160,452 | $6,824 | $112,841 | $8,823,049 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $8,587,831) | $8,823,049 | |
| Total Investment in Securities (cost $8,587,831) | $8,823,049 | |
| Cash | 8 | |
| Receivable for investments sold | 67,337 | |
| Total assets | 8,890,394 | |
| Liabilities | ||
| Payable for investments purchased | $65,280 | |
| Payable for fund shares redeemed | 2,450 | |
| Accrued management fee | 3,034 | |
| Distribution and service plan fees payable | 66 | |
| Total liabilities | 70,830 | |
| Net Assets | $8,819,564 | |
| Net Assets consist of: | ||
| Paid in capital | $8,555,637 | |
| Total accumulated earnings (loss) | 263,927 | |
| Net Assets | $8,819,564 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($315,141 ÷ 5,360.86 shares)(a) | $58.79 | |
| Maximum offering price per share (100/94.25 of $58.79) | $62.38 | |
| Fidelity Managed Retirement Income: | ||
| Net Asset Value, offering price and redemption price per share ($7,873,857 ÷ 133,944.14 shares) | $58.78 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($103,649 ÷ 1,763.16 shares) | $58.79 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($351,629 ÷ 5,981.57 shares) | $58.79 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($71,587 ÷ 1,217.77 shares) | $58.79 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($103,701 ÷ 1,764.72 shares) | $58.76 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $96,334 | |
| Expenses | ||
| Management fee | $16,046 | |
| Distribution and service plan fees | 289 | |
| Independent trustees' fees and expenses | 13 | |
| Total expenses | 16,348 | |
| Net investment income (loss) | 79,986 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 6 | |
| Affiliated issuers | 6,818 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 64,118 | |
| Total net realized gain (loss) | 70,942 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 112,841 | |
| Total change in net unrealized appreciation (depreciation) | 112,841 | |
| Net gain (loss) | 183,783 | |
| Net increase (decrease) in net assets resulting from operations | $263,769 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $79,986 | $126,589 |
| Net realized gain (loss) | 70,942 | 59,310 |
| Change in net unrealized appreciation (depreciation) | 112,841 | 113,890 |
| Net increase (decrease) in net assets resulting from operations | 263,769 | 299,789 |
| Distributions to shareholders | (139,437) | (276,381) |
| Share transactions - net increase (decrease) | 2,362,727 | (739,305) |
| Total increase (decrease) in net assets | 2,487,059 | (715,897) |
| Net Assets | ||
| Beginning of period | 6,332,505 | 7,048,402 |
| End of period | $8,819,564 | $6,332,505 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement Income Fund Class A
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $57.74 | $57.55 | $61.00 | $59.02 | $58.61 | $57.41 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .569 | 1.029 | .884 | .756 | .758 | .686 |
| Net realized and unrealized gain (loss) | 1.507 | 1.594 | .494 | 2.008 | .457 | 1.311 |
| Total from investment operations | 2.076 | 2.623 | 1.378 | 2.764 | 1.215 | 1.997 |
| Distributions from net investment income | (.592) | (1.047) | (.853) | (.717) | (.754) | (.658) |
| Distributions from net realized gain | (.434) | (1.386) | (3.975) | (.067) | (.051) | (.139) |
| Total distributions | (1.026) | (2.433) | (4.828) | (.784) | (.805) | (.797) |
| Net asset value, end of period | $58.79 | $57.74 | $57.55 | $61.00 | $59.02 | $58.61 |
| Total ReturnB,C,D | 3.62% | 4.78% | 2.35% | 4.73% | 2.12% | 3.50% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .70%G | .71% | .71%H | .32% | .25% | .25% |
| Expenses net of fee waivers, if any | .70%G | .71% | .71%H | .32% | .25% | .25% |
| Expenses net of all reductions | .70%G | .71% | .71%H | .32% | .25% | .25% |
| Net investment income (loss) | 1.96%G | 1.83% | 1.51% | 1.27% | 1.32% | 1.18% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $315 | $177 | $147 | $287 | $293 | $432 |
| Portfolio turnover rateF | 27%G | 68% | 19% | 111% | 47% | 33% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
H On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $57.73 | $57.54 | $61.00 | $59.01 | $58.61 | $57.41 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .643 | 1.170 | 1.024 | .905 | .901 | .831 |
| Net realized and unrealized gain (loss) | 1.496 | 1.589 | .512 | 2.003 | .452 | 1.313 |
| Total from investment operations | 2.139 | 2.759 | 1.536 | 2.908 | 1.353 | 2.144 |
| Distributions from net investment income | (.655) | (1.183) | (1.021) | (.851) | (.902) | (.805) |
| Distributions from net realized gain | (.434) | (1.386) | (3.975) | (.067) | (.051) | (.139) |
| Total distributions | (1.089) | (2.569) | (4.996) | (.918) | (.953) | (.944) |
| Net asset value, end of period | $58.78 | $57.73 | $57.54 | $61.00 | $59.01 | $58.61 |
| Total ReturnB,C | 3.73% | 5.04% | 2.63% | 4.98% | 2.37% | 3.76% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .45%F | .46% | .47% | .07% | - %G | - %G |
| Expenses net of fee waivers, if any | .45%F | .46% | .47% | .07% | -% | -% |
| Expenses net of all reductions | .45%F | .46% | .46% | .07% | -% | -% |
| Net investment income (loss) | 2.21%F | 2.08% | 1.76% | 1.52% | 1.57% | 1.43% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $7,874 | $6,060 | $6,734 | $10,828 | $13,227 | $14,208 |
| Portfolio turnover rateE | 27%F | 68% | 19% | 111% | 47% | 33% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class K
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $57.81 |
| Income from Investment Operations | |
| Net investment income (loss)B | .674 |
| Net realized and unrealized gain (loss) | 1.424 |
| Total from investment operations | 2.098 |
| Distributions from net investment income | (.684) |
| Distributions from net realized gain | (.434) |
| Total distributions | (1.118) |
| Net asset value, end of period | $58.79 |
| Total ReturnC | 3.66% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .35%F |
| Expenses net of fee waivers, if any | .35%F |
| Expenses net of all reductions | .35%F |
| Net investment income (loss) | 2.31%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $104 |
| Portfolio turnover rateE | 27%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class K6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $57.81 |
| Income from Investment Operations | |
| Net investment income (loss)B | .691 |
| Net realized and unrealized gain (loss) | 1.437 |
| Total from investment operations | 2.128 |
| Distributions from net investment income | (.714) |
| Distributions from net realized gain | (.434) |
| Total distributions | (1.148) |
| Net asset value, end of period | $58.79 |
| Total ReturnC | 3.71% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .25%F |
| Expenses net of fee waivers, if any | .25%F |
| Expenses net of all reductions | .25%F |
| Net investment income (loss) | 2.41%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $352 |
| Portfolio turnover rateE | 27%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class I
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $57.71 | $57.52 | $60.99 | $58.99 | $58.59 | $57.39 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .646 | 1.167 | 1.025 | .906 | .899 | .830 |
| Net realized and unrealized gain (loss) | 1.503 | 1.593 | .500 | 2.013 | .454 | 1.314 |
| Total from investment operations | 2.149 | 2.760 | 1.525 | 2.919 | 1.353 | 2.144 |
| Distributions from net investment income | (.635) | (1.184) | (1.020) | (.852) | (.902) | (.805) |
| Distributions from net realized gain | (.434) | (1.386) | (3.975) | (.067) | (.051) | (.139) |
| Total distributions | (1.069) | (2.570) | (4.995) | (.919) | (.953) | (.944) |
| Net asset value, end of period | $58.79 | $57.71 | $57.52 | $60.99 | $58.99 | $58.59 |
| Total ReturnB,C | 3.75% | 5.04% | 2.62% | 5.01% | 2.37% | 3.76% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .45%F | .46% | .46%G | .07% | - %H | - %H |
| Expenses net of fee waivers, if any | .45%F | .46% | .46%G | .07% | -% | -% |
| Expenses net of all reductions | .45%F | .46% | .46%G | .07% | -% | -% |
| Net investment income (loss) | 2.21%F | 2.08% | 1.76% | 1.52% | 1.57% | 1.43% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $72 | $96 | $61 | $94 | $131 | $90 |
| Portfolio turnover rateE | 27%F | 68% | 19% | 111% | 47% | 33% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
H Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class Z6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $57.79 |
| Income from Investment Operations | |
| Net investment income (loss)B | .703 |
| Net realized and unrealized gain (loss) | 1.416 |
| Total from investment operations | 2.119 |
| Distributions from net investment income | (.715) |
| Distributions from net realized gain | (.434) |
| Total distributions | (1.149) |
| Net asset value, end of period | $58.76 |
| Total ReturnC | 3.69% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .25%F |
| Expenses net of fee waivers, if any | .25%F |
| Expenses net of all reductions | .25%F |
| Net investment income (loss) | 2.41%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $104 |
| Portfolio turnover rateE | 27%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2005 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Treasury Bill Index Fund | 14.0 |
| Fidelity Series Inflation-Protected Bond Index Fund | 12.0 |
| Fidelity Series Investment Grade Bond Fund | 11.6 |
| Fidelity Series Government Bond Index Fund | 11.1 |
| Fidelity Series Corporate Bond Fund | 8.1 |
| Fidelity Series Investment Grade Securitized Fund | 7.9 |
| Fidelity Series Short-Term Credit Fund | 4.7 |
| Fidelity Series Government Money Market Fund 1.62% | 4.6 |
| Fidelity Series Emerging Markets Opportunities Fund | 4.3 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| 81.8 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 10.1% | |
| International Equity Funds | 11.3% | |
| Bond Funds | 55.3% | |
| Short-Term Funds | 23.3% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2005 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 10.1% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 1,406 | $14,637 | |
| Fidelity Series Blue Chip Growth Fund (a) | 1,687 | 26,131 | |
| Fidelity Series Commodity Strategy Fund (a) | 42,745 | 188,504 | |
| Fidelity Series Growth Company Fund (a) | 2,839 | 51,894 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 3,848 | 62,530 | |
| Fidelity Series Large Cap Stock Fund (a) | 3,585 | 55,285 | |
| Fidelity Series Large Cap Value Index Fund (a) | 1,217 | 15,708 | |
| Fidelity Series Opportunistic Insights Fund (a) | 1,534 | 28,436 | |
| Fidelity Series Small Cap Discovery Fund (a) | 626 | 7,158 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 1,683 | 23,102 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 3,345 | 41,682 | |
| Fidelity Series Value Discovery Fund (a) | 2,334 | 30,363 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $542,017) | 545,430 | ||
| International Equity Funds - 11.3% | |||
| Fidelity Series Canada Fund (a) | 1,414 | 15,847 | |
| Fidelity Series Emerging Markets Fund (a) | 2,760 | 26,078 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 11,710 | 230,216 | |
| Fidelity Series International Growth Fund (a) | 7,009 | 121,750 | |
| Fidelity Series International Small Cap Fund (a) | 1,595 | 26,781 | |
| Fidelity Series International Value Fund (a) | 12,403 | 118,453 | |
| Fidelity Series Overseas Fund (a) | 6,578 | 70,058 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $580,711) | 609,183 | ||
| Bond Funds - 55.3% | |||
| Fidelity Series Corporate Bond Fund (a) | 39,604 | 434,453 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 3,490 | 33,817 | |
| Fidelity Series Floating Rate High Income Fund (a) | 851 | 7,911 | |
| Fidelity Series Government Bond Index Fund (a) | 55,859 | 598,805 | |
| Fidelity Series High Income Fund (a) | 4,246 | 40,333 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 63,612 | 647,573 | |
| Fidelity Series International Credit Fund (a) | 380 | 3,919 | |
| Fidelity Series Investment Grade Bond Fund (a) | 53,021 | 624,591 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 41,168 | 426,912 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 14,609 | 138,057 | |
| Fidelity Series Real Estate Income Fund (a) | 2,303 | 25,980 | |
| TOTAL BOND FUNDS | |||
| (Cost $2,833,537) | 2,982,351 | ||
| Short-Term Funds - 23.3% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 251,572 | 251,572 | |
| Fidelity Series Short-Term Credit Fund (a) | 24,867 | 251,902 | |
| Fidelity Series Treasury Bill Index Fund (a) | 75,543 | 755,428 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $1,254,925) | 1,258,902 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $5,211,190) | 5,395,866 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (2,056) | ||
| NET ASSETS - 100% | $5,393,810 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $17,530 | $3,791 | $7,163 | $1,166 | $(1,146) | $1,625 | $14,637 |
| Fidelity Series Blue Chip Growth Fund | 30,534 | 6,470 | 10,508 | 3,541 | 278 | (643) | 26,131 |
| Fidelity Series Canada Fund | 14,883 | 2,442 | 1,973 | 373 | 24 | 471 | 15,847 |
| Fidelity Series Commodity Strategy Fund | 185,221 | 44,651 | 31,957 | 3,021 | (1,939) | (7,472) | 188,504 |
| Fidelity Series Corporate Bond Fund | 407,557 | 67,991 | 58,366 | 9,242 | 316 | 16,955 | 434,453 |
| Fidelity Series Emerging Markets Debt Fund | 38,060 | 4,385 | 8,162 | 1,091 | (473) | 7 | 33,817 |
| Fidelity Series Emerging Markets Fund | 21,115 | 8,159 | 3,370 | 625 | (15) | 189 | 26,078 |
| Fidelity Series Emerging Markets Opportunities Fund | 189,764 | 67,979 | 39,614 | 6,269 | 1,761 | 10,326 | 230,216 |
| Fidelity Series Floating Rate High Income Fund | 7,898 | 951 | 921 | 238 | (10) | (7) | 7,911 |
| Fidelity Series Government Bond Index Fund | 558,842 | 96,806 | 72,552 | 8,234 | (299) | 16,008 | 598,805 |
| Fidelity Series Government Money Market Fund 1.62% | 240,064 | 39,773 | 28,265 | 2,445 | -- | -- | 251,572 |
| Fidelity Series Growth Company Fund | 61,474 | 12,023 | 24,051 | 5,837 | 1,820 | 628 | 51,894 |
| Fidelity Series High Income Fund | 39,933 | 4,940 | 4,612 | 1,378 | (39) | 111 | 40,333 |
| Fidelity Series Inflation-Protected Bond Index Fund | 679,551 | 89,905 | 132,150 | 8,281 | 1,176 | 9,091 | 647,573 |
| Fidelity Series International Credit Fund | 3,712 | 179 | -- | 178 | -- | 28 | 3,919 |
| Fidelity Series International Growth Fund | 138,194 | 16,114 | 41,893 | 4,621 | 2,870 | 6,465 | 121,750 |
| Fidelity Series International Small Cap Fund | 29,797 | 3,999 | 8,844 | 1,395 | 105 | 1,724 | 26,781 |
| Fidelity Series International Value Fund | 127,566 | 19,416 | 31,493 | 5,127 | (1,390) | 4,354 | 118,453 |
| Fidelity Series Intrinsic Opportunities Fund | 75,076 | 19,194 | 31,434 | 3,912 | (231) | (75) | 62,530 |
| Fidelity Series Investment Grade Bond Fund | 594,892 | 92,093 | 80,042 | 9,767 | 220 | 17,428 | 624,591 |
| Fidelity Series Investment Grade Securitized Fund | 421,746 | 63,419 | 58,578 | 10,024 | (108) | 433 | 426,912 |
| Fidelity Series Large Cap Stock Fund | 65,851 | 15,012 | 27,397 | 3,654 | 688 | 1,131 | 55,285 |
| Fidelity Series Large Cap Value Index Fund | 18,781 | 3,668 | 6,776 | 1,035 | 390 | (355) | 15,708 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 200,334 | 34,679 | 102,615 | 12,220 | 9,150 | (3,491) | 138,057 |
| Fidelity Series Opportunistic Insights Fund | 33,750 | 5,853 | 11,017 | 2,564 | 460 | (610) | 28,436 |
| Fidelity Series Overseas Fund | 4,632 | 62,012 | -- | 223 | -- | 3,414 | 70,058 |
| Fidelity Series Real Estate Income Fund | 25,229 | 3,476 | 2,885 | 1,242 | (9) | 169 | 25,980 |
| Fidelity Series Short-Term Credit Fund | 240,115 | 39,604 | 30,041 | 3,517 | 12 | 2,212 | 251,902 |
| Fidelity Series Small Cap Discovery Fund | 9,012 | 1,140 | 3,197 | 344 | 23 | 180 | 7,158 |
| Fidelity Series Small Cap Opportunities Fund | 27,894 | 5,178 | 9,267 | 1,864 | 527 | (1,230) | 23,102 |
| Fidelity Series Stock Selector Large Cap Value Fund | 50,788 | 10,146 | 19,807 | 2,264 | (109) | 664 | 41,682 |
| Fidelity Series Treasury Bill Index Fund | 719,920 | 119,358 | 84,598 | 6,970 | 6 | 742 | 755,428 |
| Fidelity Series Value Discovery Fund | 36,243 | 7,318 | 13,436 | 1,279 | 192 | 46 | 30,363 |
| $5,315,958 | $972,124 | $986,984 | $123,941 | $14,250 | $80,518 | $5,395,866 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2005 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $5,211,190) | $5,395,866 | |
| Total Investment in Securities (cost $5,211,190) | $5,395,866 | |
| Cash | 7 | |
| Receivable for investments sold | 51,631 | |
| Total assets | 5,447,504 | |
| Liabilities | ||
| Payable for investments purchased | $35,996 | |
| Payable for fund shares redeemed | 15,644 | |
| Accrued management fee | 1,994 | |
| Distribution and service plan fees payable | 60 | |
| Total liabilities | 53,694 | |
| Net Assets | $5,393,810 | |
| Net Assets consist of: | ||
| Paid in capital | $5,181,316 | |
| Total accumulated earnings (loss) | 212,494 | |
| Net Assets | $5,393,810 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($282,597 ÷ 4,740.23 shares)(a) | $59.62 | |
| Maximum offering price per share (100/94.25 of $59.62) | $63.26 | |
| Fidelity Managed Retirement 2005: | ||
| Net Asset Value, offering price and redemption price per share ($4,512,432 ÷ 75,662.72 shares) | $59.64 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($103,670 ÷ 1,738.40 shares) | $59.64 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($103,722 ÷ 1,739.17 shares) | $59.64 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($287,667 ÷ 4,825.28 shares) | $59.62 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($103,722 ÷ 1,740.08 shares) | $59.61 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $74,457 | |
| Expenses | ||
| Management fee | $12,326 | |
| Distribution and service plan fees | 358 | |
| Independent trustees' fees and expenses | 10 | |
| Total expenses | 12,694 | |
| Net investment income (loss) | 61,763 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 4 | |
| Affiliated issuers | 14,246 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 49,484 | |
| Total net realized gain (loss) | 63,734 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 80,518 | |
| Total change in net unrealized appreciation (depreciation) | 80,518 | |
| Net gain (loss) | 144,252 | |
| Net increase (decrease) in net assets resulting from operations | $206,015 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $61,763 | $115,554 |
| Net realized gain (loss) | 63,734 | 54,564 |
| Change in net unrealized appreciation (depreciation) | 80,518 | 81,432 |
| Net increase (decrease) in net assets resulting from operations | 206,015 | 251,550 |
| Distributions to shareholders | (110,499) | (290,975) |
| Share transactions - net increase (decrease) | (15,438) | (1,020,674) |
| Total increase (decrease) in net assets | 80,078 | (1,060,099) |
| Net Assets | ||
| Beginning of period | 5,313,732 | 6,373,831 |
| End of period | $5,393,810 | $5,313,732 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2005 Fund Class A
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $58.61 | $58.73 | $63.39 | $60.26 | $60.57 | $58.78 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .582 | 1.049 | .874 | .788 | .801 | .724 |
| Net realized and unrealized gain (loss) | 1.534 | 1.563 | .747 | 3.402 | .274 | 1.910 |
| Total from investment operations | 2.116 | 2.612 | 1.621 | 4.190 | 1.075 | 2.634 |
| Distributions from net investment income | (.624) | (1.061) | (.861) | (.733) | (.785) | (.698) |
| Distributions from net realized gain | (.482) | (1.671) | (5.420) | (.327) | (.600) | (.146) |
| Total distributions | (1.106) | (2.732) | (6.281) | (1.060) | (1.385) | (.844) |
| Net asset value, end of period | $59.62 | $58.61 | $58.73 | $63.39 | $60.26 | $60.57 |
| Total ReturnB,C,D | 3.63% | 4.69% | 2.71% | 7.05% | 1.88% | 4.50% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .70%G | .72% | .74% | .34% | .25% | .25% |
| Expenses net of fee waivers, if any | .70%G | .72% | .74% | .34% | .25% | .25% |
| Expenses net of all reductions | .70%G | .72% | .74% | .34% | .25% | .25% |
| Net investment income (loss) | 1.96%G | 1.83% | 1.47% | 1.29% | 1.38% | 1.21% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $283 | $284 | $279 | $338 | $577 | $727 |
| Portfolio turnover rateF | 35%G | 57% | 24% | 136% | 45% | 35% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2005 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $58.64 | $58.75 | $63.41 | $60.27 | $60.58 | $58.79 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .656 | 1.193 | 1.027 | .942 | .945 | .874 |
| Net realized and unrealized gain (loss) | 1.525 | 1.568 | .746 | 3.403 | .277 | 1.909 |
| Total from investment operations | 2.181 | 2.761 | 1.773 | 4.345 | 1.222 | 2.783 |
| Distributions from net investment income | (.699) | (1.200) | (1.013) | (.878) | (.932) | (.847) |
| Distributions from net realized gain | (.482) | (1.671) | (5.420) | (.327) | (.600) | (.146) |
| Total distributions | (1.181) | (2.871) | (6.433) | (1.205) | (1.532) | (.993) |
| Net asset value, end of period | $59.64 | $58.64 | $58.75 | $63.41 | $60.27 | $60.58 |
| Total ReturnB,C | 3.74% | 4.97% | 2.97% | 7.32% | 2.14% | 4.76% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .45%F | .47% | .49% | .09% | - %G | - %G |
| Expenses net of fee waivers, if any | .45%F | .47% | .49% | .09% | -% | -% |
| Expenses net of all reductions | .45%F | .47% | .49% | .09% | -% | -% |
| Net investment income (loss) | 2.21%F | 2.08% | 1.72% | 1.54% | 1.63% | 1.46% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $4,512 | $4,695 | $5,733 | $9,236 | $7,205 | $6,160 |
| Portfolio turnover rateE | 35%F | 57% | 24% | 136% | 45% | 35% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2005 Fund Class K
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $58.71 |
| Income from Investment Operations | |
| Net investment income (loss)B | .685 |
| Net realized and unrealized gain (loss) | 1.459 |
| Total from investment operations | 2.144 |
| Distributions from net investment income | (.732) |
| Distributions from net realized gain | (.482) |
| Total distributions | (1.214) |
| Net asset value, end of period | $59.64 |
| Total ReturnC | 3.68% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .35%F |
| Expenses net of fee waivers, if any | .35%F |
| Expenses net of all reductions | .35%F |
| Net investment income (loss) | 2.31%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $104 |
| Portfolio turnover rateE | 35%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2005 Fund Class K6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $58.71 |
| Income from Investment Operations | |
| Net investment income (loss)B | .715 |
| Net realized and unrealized gain (loss) | 1.455 |
| Total from investment operations | 2.170 |
| Distributions from net investment income | (.758) |
| Distributions from net realized gain | (.482) |
| Total distributions | (1.240) |
| Net asset value, end of period | $59.64 |
| Total ReturnC | 3.72% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .25%F |
| Expenses net of fee waivers, if any | .25%F |
| Expenses net of all reductions | .25%F |
| Net investment income (loss) | 2.41%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $104 |
| Portfolio turnover rateE | 35%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2005 Fund Class I
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $58.60 | $58.73 | $63.40 | $60.27 | $60.58 | $58.79 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .656 | 1.142 | 1.015 | .942 | .945 | .875 |
| Net realized and unrealized gain (loss) | 1.535 | 1.605 | .769 | 3.394 | .277 | 1.908 |
| Total from investment operations | 2.191 | 2.747 | 1.784 | 4.336 | 1.222 | 2.783 |
| Distributions from net investment income | (.689) | (1.206) | (1.034) | (.879) | (.932) | (.847) |
| Distributions from net realized gain | (.482) | (1.671) | (5.420) | (.327) | (.600) | (.146) |
| Total distributions | (1.171) | (2.877) | (6.454) | (1.206) | (1.532) | (.993) |
| Net asset value, end of period | $59.62 | $58.60 | $58.73 | $63.40 | $60.27 | $60.58 |
| Total ReturnB,C | 3.76% | 4.94% | 2.99% | 7.31% | 2.14% | 4.76% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .45%F | .47% | .50%G | .09% | - %H | - %H |
| Expenses net of fee waivers, if any | .45%F | .47% | .50%G | .09% | -% | -% |
| Expenses net of all reductions | .45%F | .47% | .50%G | .09% | -% | -% |
| Net investment income (loss) | 2.21%F | 2.09% | 1.71% | 1.54% | 1.63% | 1.46% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $288 | $335 | $21 | $32 | $30 | $31 |
| Portfolio turnover rateE | 35%F | 57% | 24% | 136% | 45% | 35% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
H Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2005 Fund Class Z6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $58.68 |
| Income from Investment Operations | |
| Net investment income (loss)B | .715 |
| Net realized and unrealized gain (loss) | 1.455 |
| Total from investment operations | 2.170 |
| Distributions from net investment income | (.758) |
| Distributions from net realized gain | (.482) |
| Total distributions | (1.240) |
| Net asset value, end of period | $59.61 |
| Total ReturnC | 3.73% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .25%F |
| Expenses net of fee waivers, if any | .25%F |
| Expenses net of all reductions | .25%F |
| Net investment income (loss) | 2.41%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $104 |
| Portfolio turnover rateE | 35%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Treasury Bill Index Fund | 11.6 |
| Fidelity Series Investment Grade Bond Fund | 10.8 |
| Fidelity Series Inflation-Protected Bond Index Fund | 10.6 |
| Fidelity Series Government Bond Index Fund | 10.4 |
| Fidelity Series Corporate Bond Fund | 7.5 |
| Fidelity Series Investment Grade Securitized Fund | 7.4 |
| Fidelity Series Emerging Markets Opportunities Fund | 5.0 |
| Fidelity Series Short-Term Credit Fund | 3.9 |
| Fidelity Series Government Money Market Fund 1.62% | 3.8 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| 74.5 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 14.9% | |
| International Equity Funds | 14.5% | |
| Bond Funds | 51.3% | |
| Short-Term Funds | 19.3% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2010 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 14.9% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 4,340 | $45,182 | |
| Fidelity Series Blue Chip Growth Fund (a) | 5,087 | 78,797 | |
| Fidelity Series Commodity Strategy Fund (a) | 76,274 | 336,369 | |
| Fidelity Series Growth Company Fund (a) | 8,752 | 159,985 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 11,863 | 192,775 | |
| Fidelity Series Large Cap Stock Fund (a) | 11,053 | 170,440 | |
| Fidelity Series Large Cap Value Index Fund (a) | 3,751 | 48,427 | |
| Fidelity Series Opportunistic Insights Fund (a) | 4,728 | 87,665 | |
| Fidelity Series Small Cap Discovery Fund (a) | 1,952 | 22,314 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 5,245 | 72,019 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 10,417 | 129,798 | |
| Fidelity Series Value Discovery Fund (a) | 7,195 | 93,608 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,398,304) | 1,437,379 | ||
| International Equity Funds - 14.5% | |||
| Fidelity Series Canada Fund (a) | 4,432 | 49,680 | |
| Fidelity Series Emerging Markets Fund (a) | 5,805 | 54,858 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 24,723 | 486,046 | |
| Fidelity Series International Growth Fund (a) | 17,056 | 296,257 | |
| Fidelity Series International Small Cap Fund (a) | 3,924 | 65,877 | |
| Fidelity Series International Value Fund (a) | 30,187 | 288,288 | |
| Fidelity Series Overseas Fund (a) | 14,434 | 153,722 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,332,243) | 1,394,728 | ||
| Bond Funds - 51.3% | |||
| Fidelity Series Corporate Bond Fund (a) | 65,780 | 721,605 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 6,263 | 60,693 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,509 | 14,031 | |
| Fidelity Series Government Bond Index Fund (a) | 92,779 | 994,587 | |
| Fidelity Series High Income Fund (a) | 7,519 | 71,434 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 100,176 | 1,019,790 | |
| Fidelity Series International Credit Fund (a) | 559 | 5,770 | |
| Fidelity Series Investment Grade Bond Fund (a) | 88,067 | 1,037,433 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 68,381 | 709,107 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 26,045 | 246,124 | |
| Fidelity Series Real Estate Income Fund (a) | 4,088 | 46,109 | |
| TOTAL BOND FUNDS | |||
| (Cost $4,690,783) | 4,926,683 | ||
| Short-Term Funds - 19.3% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 370,675 | 370,675 | |
| Fidelity Series Short-Term Credit Fund (a) | 36,617 | 370,931 | |
| Fidelity Series Treasury Bill Index Fund (a) | 111,238 | 1,112,385 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $1,848,168) | 1,853,991 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $9,269,498) | 9,612,781 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (3,631) | ||
| NET ASSETS - 100% | $9,609,150 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $52,702 | $7,924 | $16,819 | $3,519 | $(3,311) | $4,686 | $45,182 |
| Fidelity Series Blue Chip Growth Fund | 91,376 | 16,960 | 28,763 | 10,266 | 991 | (1,767) | 78,797 |
| Fidelity Series Canada Fund | 35,214 | 18,044 | 4,668 | 890 | 22 | 1,068 | 49,680 |
| Fidelity Series Commodity Strategy Fund | 328,115 | 75,184 | 49,737 | 5,254 | (2,928) | (14,265) | 336,369 |
| Fidelity Series Corporate Bond Fund | 669,120 | 97,309 | 73,177 | 14,929 | 220 | 28,133 | 721,605 |
| Fidelity Series Emerging Markets Debt Fund | 67,367 | 6,886 | 12,768 | 1,900 | (862) | 70 | 60,693 |
| Fidelity Series Emerging Markets Fund | 46,580 | 13,921 | 5,845 | 1,291 | 9 | 193 | 54,858 |
| Fidelity Series Emerging Markets Opportunities Fund | 415,644 | 114,809 | 67,731 | 12,944 | 2,160 | 21,164 | 486,046 |
| Fidelity Series Floating Rate High Income Fund | 13,969 | 1,507 | 1,416 | 414 | (19) | (10) | 14,031 |
| Fidelity Series Government Bond Index Fund | 917,512 | 141,178 | 90,092 | 13,283 | (463) | 26,452 | 994,587 |
| Fidelity Series Government Money Market Fund 1.62% | 350,940 | 50,856 | 31,121 | 3,511 | -- | -- | 370,675 |
| Fidelity Series Growth Company Fund | 183,479 | 32,544 | 63,094 | 17,616 | 4,489 | 2,567 | 159,985 |
| Fidelity Series High Income Fund | 70,577 | 7,853 | 7,112 | 2,390 | (63) | 179 | 71,434 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,010,607 | 127,188 | 133,520 | 12,601 | 561 | 14,954 | 1,019,790 |
| Fidelity Series International Credit Fund | 5,466 | 262 | -- | 262 | -- | 42 | 5,770 |
| Fidelity Series International Growth Fund | 322,663 | 34,118 | 81,909 | 11,036 | 4,793 | 16,592 | 296,257 |
| Fidelity Series International Small Cap Fund | 70,113 | 9,053 | 17,329 | 3,331 | 189 | 3,851 | 65,877 |
| Fidelity Series International Value Fund | 301,895 | 41,377 | 61,457 | 12,247 | (1,675) | 8,148 | 288,288 |
| Fidelity Series Intrinsic Opportunities Fund | 223,921 | 46,198 | 75,958 | 11,558 | (313) | (1,073) | 192,775 |
| Fidelity Series Investment Grade Bond Fund | 976,691 | 132,408 | 100,601 | 15,788 | 18 | 28,917 | 1,037,433 |
| Fidelity Series Investment Grade Securitized Fund | 692,424 | 92,942 | 76,860 | 16,195 | (122) | 723 | 709,107 |
| Fidelity Series Large Cap Stock Fund | 196,487 | 34,176 | 65,246 | 10,897 | 1,544 | 3,479 | 170,440 |
| Fidelity Series Large Cap Value Index Fund | 56,421 | 9,761 | 17,641 | 3,133 | 874 | (988) | 48,427 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 373,977 | 52,050 | 190,574 | 21,456 | 18,437 | (7,766) | 246,124 |
| Fidelity Series Opportunistic Insights Fund | 100,955 | 15,402 | 28,163 | 7,743 | 1,048 | (1,577) | 87,665 |
| Fidelity Series Overseas Fund | 14,003 | 131,483 | -- | 534 | -- | 8,236 | 153,722 |
| Fidelity Series Real Estate Income Fund | 44,696 | 5,585 | 4,455 | 2,161 | (29) | 312 | 46,109 |
| Fidelity Series Short-Term Credit Fund | 351,007 | 48,167 | 31,474 | 5,031 | (14) | 3,245 | 370,931 |
| Fidelity Series Small Cap Discovery Fund | 27,345 | 2,755 | 8,293 | 1,040 | 19 | 488 | 22,314 |
| Fidelity Series Small Cap Opportunities Fund | 82,904 | 12,413 | 21,184 | 5,490 | 310 | (2,424) | 72,019 |
| Fidelity Series Stock Selector Large Cap Value Fund | 151,664 | 23,060 | 46,263 | 6,843 | (187) | 1,524 | 129,798 |
| Fidelity Series Treasury Bill Index Fund | 1,052,425 | 150,449 | 91,539 | 9,968 | (27) | 1,077 | 1,112,385 |
| Fidelity Series Value Discovery Fund | 108,376 | 19,709 | 34,754 | 3,863 | 329 | (52) | 93,608 |
| $9,406,635 | $1,573,531 | $1,539,563 | $249,384 | $26,000 | $146,178 | $9,612,781 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $9,269,498) | $9,612,781 | |
| Total Investment in Securities (cost $9,269,498) | $9,612,781 | |
| Cash | 56 | |
| Receivable for investments sold | 77,890 | |
| Total assets | 9,690,727 | |
| Liabilities | ||
| Payable for investments purchased | $77,391 | |
| Payable for fund shares redeemed | 500 | |
| Accrued management fee | 3,642 | |
| Distribution and service plan fees payable | 44 | |
| Total liabilities | 81,577 | |
| Net Assets | $9,609,150 | |
| Net Assets consist of: | ||
| Paid in capital | $9,197,803 | |
| Total accumulated earnings (loss) | 411,347 | |
| Net Assets | $9,609,150 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($211,229 ÷ 3,689.67 shares)(a) | $57.25 | |
| Maximum offering price per share (100/94.25 of $57.25) | $60.74 | |
| Fidelity Managed Retirement 2010: | ||
| Net Asset Value, offering price and redemption price per share ($8,866,801 ÷ 154,790.80 shares) | $57.28 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($104,210 ÷ 1,819.48 shares) | $57.27 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($154,147 ÷ 2,691.20 shares) | $57.28 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($109,200 ÷ 1,906.49 shares) | $57.28 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($163,563 ÷ 2,856.11 shares) | $57.27 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $137,768 | |
| Expenses | ||
| Management fee | $22,106 | |
| Distribution and service plan fees | 257 | |
| Independent trustees' fees and expenses | 18 | |
| Total expenses | 22,381 | |
| Net investment income (loss) | 115,387 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 3 | |
| Affiliated issuers | 25,997 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 111,616 | |
| Total net realized gain (loss) | 137,616 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 146,178 | |
| Total change in net unrealized appreciation (depreciation) | 146,178 | |
| Net gain (loss) | 283,794 | |
| Net increase (decrease) in net assets resulting from operations | $399,181 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $115,387 | $177,294 |
| Net realized gain (loss) | 137,616 | 133,568 |
| Change in net unrealized appreciation (depreciation) | 146,178 | 82,087 |
| Net increase (decrease) in net assets resulting from operations | 399,181 | 392,949 |
| Distributions to shareholders | (242,605) | (468,982) |
| Share transactions - net increase (decrease) | 49,573 | 122,979 |
| Total increase (decrease) in net assets | 206,149 | 46,946 |
| Net Assets | ||
| Beginning of period | 9,403,001 | 9,356,055 |
| End of period | $9,609,150 | $9,403,001 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2010 Fund Class A
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $56.34 | $56.78 | $63.87 | $60.07 | $61.33 | $59.84 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .604 | .979 | .808 | .789 | .799 | .747 |
| Net realized and unrealized gain (loss) | 1.672 | 1.401 | 1.278 | 4.240 | .112 | 2.210 |
| Total from investment operations | 2.276 | 2.380 | 2.086 | 5.029 | .911 | 2.957 |
| Distributions from net investment income | (.647) | (1.001) | (.794) | (.754) | (.794) | (.746) |
| Distributions from net realized gain | (.719) | (1.819) | (8.382) | (.475) | (1.377) | (.721) |
| Total distributions | (1.366) | (2.820) | (9.176) | (1.229) | (2.171) | (1.467) |
| Net asset value, end of period | $57.25 | $56.34 | $56.78 | $63.87 | $60.07 | $61.33 |
| Total ReturnB,C,D | 4.07% | 4.47% | 3.60% | 8.51% | 1.67% | 5.00% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .71%G | .75% | .78% | .33% | .25% | .25% |
| Expenses net of fee waivers, if any | .71%G | .75% | .78% | .33% | .25% | .25% |
| Expenses net of all reductions | .71%G | .75% | .78% | .33% | .25% | .25% |
| Net investment income (loss) | 2.12%G | 1.78% | 1.40% | 1.29% | 1.38% | 1.23% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $211 | $202 | $133 | $136 | $156 | $285 |
| Portfolio turnover rateF | 32%G | 62% | 21% | 117% | 26% | 26% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $56.37 | $56.80 | $63.88 | $60.07 | $61.33 | $59.84 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .675 | 1.113 | .955 | .942 | .944 | .900 |
| Net realized and unrealized gain (loss) | 1.670 | 1.402 | 1.280 | 4.236 | .116 | 2.209 |
| Total from investment operations | 2.345 | 2.515 | 2.235 | 5.178 | 1.060 | 3.109 |
| Distributions from net investment income | (.716) | (1.126) | (.933) | (.893) | (.943) | (.898) |
| Distributions from net realized gain | (.719) | (1.819) | (8.382) | (.475) | (1.377) | (.721) |
| Total distributions | (1.435) | (2.945) | (9.315) | (1.368) | (2.320) | (1.619) |
| Net asset value, end of period | $57.28 | $56.37 | $56.80 | $63.88 | $60.07 | $61.33 |
| Total ReturnB,C | 4.20% | 4.73% | 3.87% | 8.78% | 1.93% | 5.27% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .46%F | .50% | .53% | .08% | - %G | - %G |
| Expenses net of fee waivers, if any | .46%F | .50% | .53% | .08% | -% | -% |
| Expenses net of all reductions | .46%F | .50% | .53% | .08% | -% | -% |
| Net investment income (loss) | 2.37%F | 2.02% | 1.65% | 1.54% | 1.63% | 1.48% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $8,867 | $9,091 | $9,054 | $11,140 | $13,819 | $17,079 |
| Portfolio turnover rateE | 32%F | 62% | 21% | 117% | 26% | 26% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class K
| Six months ended (Unaudited) January 31, | |
| 2020A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $56.39 |
| Income from Investment Operations | |
| Net investment income (loss)B | .704 |
| Net realized and unrealized gain (loss) | 1.643 |
| Total from investment operations | 2.347 |
| Distributions from net investment income | (.748) |
| Distributions from net realized gain | (.719) |
| Total distributions | (1.467) |
| Net asset value, end of period | $57.27 |
| Total ReturnC | 4.20% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .36%F |
| Expenses net of fee waivers, if any | .36%F |
| Expenses net of all reductions | .36%F |
| Net investment income (loss) | 2.47%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $104 |
| Portfolio turnover rateE | 32%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class K6
| Six months ended (Unaudited) January 31, | |
| 2020A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $56.39 |
| Income from Investment Operations | |
| Net investment income (loss)B | .730 |
| Net realized and unrealized gain (loss) | 1.652 |
| Total from investment operations | 2.382 |
| Distributions from net investment income | (.773) |
| Distributions from net realized gain | (.719) |
| Total distributions | (1.492) |
| Net asset value, end of period | $57.28 |
| Total ReturnC | 4.27% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .26%F |
| Expenses net of fee waivers, if any | .26%F |
| Expenses net of all reductions | .26%F |
| Net investment income (loss) | 2.57%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $154 |
| Portfolio turnover rateE | 32%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class I
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $56.36 | $56.79 | $63.88 | $60.07 | $61.33 | $59.84 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .675 | 1.105 | .950 | .942 | .942 | .902 |
| Net realized and unrealized gain (loss) | 1.674 | 1.414 | 1.280 | 4.238 | .118 | 2.207 |
| Total from investment operations | 2.349 | 2.519 | 2.230 | 5.180 | 1.060 | 3.109 |
| Distributions from net investment income | (.710) | (1.130) | (.938) | (.895) | (.943) | (.898) |
| Distributions from net realized gain | (.719) | (1.819) | (8.382) | (.475) | (1.377) | (.721) |
| Total distributions | (1.429) | (2.949) | (9.320) | (1.370) | (2.320) | (1.619) |
| Net asset value, end of period | $57.28 | $56.36 | $56.79 | $63.88 | $60.07 | $61.33 |
| Total ReturnB,C | 4.21% | 4.74% | 3.86% | 8.78% | 1.93% | 5.26% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .46%F | .50% | .53% | .08% | - %G | - %G |
| Expenses net of fee waivers, if any | .46%F | .50% | .53% | .08% | -% | -% |
| Expenses net of all reductions | .46%F | .50% | .53% | .08% | -% | -% |
| Net investment income (loss) | 2.37%F | 2.03% | 1.65% | 1.54% | 1.63% | 1.48% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $109 | $110 | $35 | $33 | $31 | $32 |
| Portfolio turnover rateE | 32%F | 62% | 21% | 117% | 26% | 26% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class Z6
| Six months ended (Unaudited) January 31, | |
| 2020A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $56.38 |
| Income from Investment Operations | |
| Net investment income (loss)B | .730 |
| Net realized and unrealized gain (loss) | 1.652 |
| Total from investment operations | 2.382 |
| Distributions from net investment income | (.773) |
| Distributions from net realized gain | (.719) |
| Total distributions | (1.492) |
| Net asset value, end of period | $57.27 |
| Total ReturnC | 4.27% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .26%F |
| Expenses net of fee waivers, if any | .26%F |
| Expenses net of all reductions | .26%F |
| Net investment income (loss) | 2.57%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $164 |
| Portfolio turnover rateE | 32%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 10.0 |
| Fidelity Series Government Bond Index Fund | 9.6 |
| Fidelity Series Inflation-Protected Bond Index Fund | 9.3 |
| Fidelity Series Treasury Bill Index Fund | 9.1 |
| Fidelity Series Corporate Bond Fund | 6.9 |
| Fidelity Series Investment Grade Securitized Fund | 6.8 |
| Fidelity Series Emerging Markets Opportunities Fund | 5.8 |
| Fidelity Series International Growth Fund | 3.9 |
| Fidelity Series International Value Fund | 3.6 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| 68.5 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 19.9% | |
| International Equity Funds | 17.8% | |
| Bond Funds | 47.2% | |
| Short-Term Funds | 15.1% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2015 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 19.9% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 4,270 | $44,450 | |
| Fidelity Series Blue Chip Growth Fund (a) | 4,970 | 76,987 | |
| Fidelity Series Commodity Strategy Fund (a) | 52,118 | 229,842 | |
| Fidelity Series Growth Company Fund (a) | 8,551 | 156,307 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 11,590 | 188,343 | |
| Fidelity Series Large Cap Stock Fund (a) | 10,799 | 166,521 | |
| Fidelity Series Large Cap Value Index Fund (a) | 3,603 | 46,515 | |
| Fidelity Series Opportunistic Insights Fund (a) | 4,732 | 87,738 | |
| Fidelity Series Small Cap Discovery Fund (a) | 1,906 | 21,782 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 5,030 | 69,058 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 10,167 | 126,683 | |
| Fidelity Series Value Discovery Fund (a) | 7,030 | 91,456 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,261,282) | 1,305,682 | ||
| International Equity Funds - 17.8% | |||
| Fidelity Series Canada Fund (a) | 3,426 | 38,410 | |
| Fidelity Series Emerging Markets Fund (a) | 4,597 | 43,442 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 19,526 | 383,881 | |
| Fidelity Series International Growth Fund (a) | 14,801 | 257,097 | |
| Fidelity Series International Small Cap Fund (a) | 3,403 | 57,134 | |
| Fidelity Series International Value Fund (a) | 24,435 | 233,350 | |
| Fidelity Series Overseas Fund (a) | 14,383 | 153,178 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,123,966) | 1,166,492 | ||
| Bond Funds - 47.2% | |||
| Fidelity Series Corporate Bond Fund (a) | 41,407 | 454,232 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 4,293 | 41,595 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,035 | 9,626 | |
| Fidelity Series Government Bond Index Fund (a) | 58,438 | 626,455 | |
| Fidelity Series High Income Fund (a) | 5,122 | 48,656 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 60,131 | 612,134 | |
| Fidelity Series International Credit Fund (a) | 243 | 2,508 | |
| Fidelity Series Investment Grade Bond Fund (a) | 55,436 | 653,035 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 43,044 | 446,362 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 17,828 | 168,474 | |
| Fidelity Series Real Estate Income Fund (a) | 2,771 | 31,262 | |
| TOTAL BOND FUNDS | |||
| (Cost $2,977,285) | 3,094,339 | ||
| Short-Term Funds - 15.1% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 198,853 | 198,853 | |
| Fidelity Series Short-Term Credit Fund (a) | 19,636 | 198,911 | |
| Fidelity Series Treasury Bill Index Fund (a) | 59,652 | 596,525 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $991,664) | 994,289 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $6,354,197) | 6,560,802 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (2,792) | ||
| NET ASSETS - 100% | $6,558,010 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $36,259 | $18,602 | $11,404 | $3,103 | $(951) | $1,944 | $44,450 |
| Fidelity Series Blue Chip Growth Fund | 62,921 | 33,419 | 20,506 | 7,470 | (181) | 1,334 | 76,987 |
| Fidelity Series Canada Fund | 21,667 | 18,564 | 2,484 | 697 | 9 | 654 | 38,410 |
| Fidelity Series Commodity Strategy Fund | 161,347 | 101,741 | 21,896 | 2,910 | (532) | (10,818) | 229,842 |
| Fidelity Series Corporate Bond Fund | 302,167 | 171,499 | 35,006 | 7,856 | (1) | 15,573 | 454,232 |
| Fidelity Series Emerging Markets Debt Fund | 33,075 | 15,133 | 6,494 | 1,077 | (178) | 59 | 41,595 |
| Fidelity Series Emerging Markets Fund | 26,368 | 19,394 | 2,401 | 925 | 2 | 79 | 43,442 |
| Fidelity Series Emerging Markets Opportunities Fund | 232,452 | 168,723 | 30,855 | 9,270 | 527 | 13,034 | 383,881 |
| Fidelity Series Floating Rate High Income Fund | 6,880 | 3,306 | 557 | 238 | (1) | (2) | 9,626 |
| Fidelity Series Government Bond Index Fund | 414,341 | 238,473 | 40,636 | 6,926 | (300) | 14,577 | 626,455 |
| Fidelity Series Government Money Market Fund 1.62% | 140,280 | 73,946 | 15,373 | 1,561 | -- | -- | 198,853 |
| Fidelity Series Growth Company Fund | 126,450 | 68,958 | 44,766 | 15,712 | 38 | 5,627 | 156,307 |
| Fidelity Series High Income Fund | 34,706 | 16,705 | 2,810 | 1,357 | 5 | 50 | 48,656 |
| Fidelity Series Inflation-Protected Bond Index Fund | 401,453 | 242,906 | 40,112 | 7,047 | (52) | 7,939 | 612,134 |
| Fidelity Series International Credit Fund | 2,376 | 114 | -- | 114 | -- | 18 | 2,508 |
| Fidelity Series International Growth Fund | 196,251 | 89,669 | 43,271 | 8,681 | 285 | 14,163 | 257,097 |
| Fidelity Series International Small Cap Fund | 42,909 | 23,597 | 11,883 | 2,617 | 103 | 2,408 | 57,134 |
| Fidelity Series International Value Fund | 185,785 | 93,302 | 48,274 | 9,634 | (1,028) | 3,565 | 233,350 |
| Fidelity Series Intrinsic Opportunities Fund | 154,328 | 84,955 | 49,588 | 8,618 | 255 | (1,607) | 188,343 |
| Fidelity Series Investment Grade Bond Fund | 441,064 | 243,035 | 47,057 | 8,312 | (25) | 16,018 | 653,035 |
| Fidelity Series Investment Grade Securitized Fund | 312,694 | 168,794 | 35,564 | 8,570 | (53) | 491 | 446,362 |
| Fidelity Series Large Cap Stock Fund | 135,412 | 69,997 | 42,939 | 8,460 | 321 | 3,730 | 166,521 |
| Fidelity Series Large Cap Value Index Fund | 38,823 | 19,258 | 11,196 | 2,762 | (22) | (348) | 46,515 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 188,601 | 78,683 | 104,429 | 13,088 | 7,562 | (1,943) | 168,474 |
| Fidelity Series Opportunistic Insights Fund | 69,530 | 35,721 | 17,321 | 6,826 | (171) | (21) | 87,738 |
| Fidelity Series Overseas Fund | 14,479 | 132,635 | -- | 417 | -- | 6,064 | 153,178 |
| Fidelity Series Real Estate Income Fund | 22,008 | 10,826 | 1,759 | 1,212 | (5) | 192 | 31,262 |
| Fidelity Series Short-Term Credit Fund | 140,305 | 73,982 | 16,914 | 2,261 | 5 | 1,533 | 198,911 |
| Fidelity Series Small Cap Discovery Fund | 18,769 | 7,859 | 5,155 | 917 | 18 | 291 | 21,782 |
| Fidelity Series Small Cap Opportunities Fund | 56,900 | 26,701 | 13,481 | 3,988 | (187) | (875) | 69,058 |
| Fidelity Series Stock Selector Large Cap Value Fund | 104,504 | 50,599 | 28,844 | 6,033 | (73) | 497 | 126,683 |
| Fidelity Series Treasury Bill Index Fund | 420,683 | 221,157 | 45,689 | 4,484 | 26 | 348 | 596,525 |
| Fidelity Series Value Discovery Fund | 74,651 | 38,316 | 21,135 | 3,405 | 57 | (433) | 91,456 |
| $4,620,438 | $2,660,569 | $819,799 | $166,548 | $5,453 | $94,141 | $6,560,802 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $6,354,197) | $6,560,802 | |
| Total Investment in Securities (cost $6,354,197) | $6,560,802 | |
| Cash | 5 | |
| Receivable for investments sold | 74,789 | |
| Total assets | 6,635,596 | |
| Liabilities | ||
| Payable for investments purchased | $73,027 | |
| Payable for fund shares redeemed | 2,000 | |
| Accrued management fee | 2,399 | |
| Distribution and service plan fees payable | 160 | |
| Total liabilities | 77,586 | |
| Net Assets | $6,558,010 | |
| Net Assets consist of: | ||
| Paid in capital | $6,312,027 | |
| Total accumulated earnings (loss) | 245,983 | |
| Net Assets | $6,558,010 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($759,336 ÷ 14,042.45 shares)(a) | $54.07 | |
| Maximum offering price per share (100/94.25 of $54.07) | $57.37 | |
| Fidelity Managed Retirement 2015: | ||
| Net Asset Value, offering price and redemption price per share ($4,855,884 ÷ 89,774.39 shares) | $54.09 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($104,760 ÷ 1,937.07 shares) | $54.08 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($104,813 ÷ 1,937.86 shares) | $54.09 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($266,020 ÷ 4,917.49 shares) | $54.10 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($467,197 ÷ 8,637.50 shares) | $54.09 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $85,522 | |
| Expenses | ||
| Management fee | $12,703 | |
| Distribution and service plan fees | 674 | |
| Independent trustees' fees and expenses | 10 | |
| Total expenses | 13,387 | |
| Net investment income (loss) | 72,135 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 3 | |
| Affiliated issuers | 5,450 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 81,026 | |
| Total net realized gain (loss) | 86,479 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 94,141 | |
| Total change in net unrealized appreciation (depreciation) | 94,141 | |
| Net gain (loss) | 180,620 | |
| Net increase (decrease) in net assets resulting from operations | $252,755 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $72,135 | $79,030 |
| Net realized gain (loss) | 86,479 | 80,235 |
| Change in net unrealized appreciation (depreciation) | 94,141 | 17,814 |
| Net increase (decrease) in net assets resulting from operations | 252,755 | 177,079 |
| Distributions to shareholders | (154,908) | (238,281) |
| Share transactions - net increase (decrease) | 1,841,615 | 441,794 |
| Total increase (decrease) in net assets | 1,939,462 | 380,592 |
| Net Assets | ||
| Beginning of period | 4,618,548 | 4,237,956 |
| End of period | $6,558,010 | $4,618,548 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2015 Fund Class A
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $53.13 | $53.98 | $64.42 | $59.82 | $61.43 | $59.85 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .628 | .887 | .739 | .798 | .797 | .753 |
| Net realized and unrealized gain (loss) | 1.742 | 1.236 | 1.737 | 4.786 | (.018) | 2.384 |
| Total from investment operations | 2.370 | 2.123 | 2.476 | 5.584 | .779 | 3.137 |
| Distributions from net investment income | (.645) | (.884) | (.726) | (.755) | (.795) | (.751) |
| Distributions from net realized gain | (.785) | (2.089) | (12.190) | (.229) | (1.594) | (.806) |
| Total distributions | (1.430) | (2.973) | (12.916) | (.984) | (2.389) | (1.557) |
| Net asset value, end of period | $54.07 | $53.13 | $53.98 | $64.42 | $59.82 | $61.43 |
| Total ReturnB,C,D | 4.51% | 4.26% | 4.46% | 9.45% | 1.47% | 5.31% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .72%G | .78% | .83% | .33% | .25% | .25% |
| Expenses net of fee waivers, if any | .72%G | .78% | .83% | .33% | .25% | .25% |
| Expenses net of all reductions | .72%G | .78% | .82% | .33% | .25% | .25% |
| Net investment income (loss) | 2.35%G | 1.71% | 1.34% | 1.30% | 1.38% | 1.24% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $759 | $244 | $246 | $289 | $280 | $300 |
| Portfolio turnover rateF | 29%G | 67% | 20% | 106% | 33% | 24% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $53.11 | $53.97 | $64.41 | $59.81 | $61.42 | $59.82 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .697 | 1.017 | .879 | .950 | .940 | .905 |
| Net realized and unrealized gain (loss) | 1.752 | 1.226 | 1.740 | 4.778 | (.017) | 2.396 |
| Total from investment operations | 2.449 | 2.243 | 2.619 | 5.728 | .923 | 3.301 |
| Distributions from net investment income | (.684) | (1.014) | (.869) | (.899) | (.939) | (.895) |
| Distributions from net realized gain | (.785) | (2.089) | (12.190) | (.229) | (1.594) | (.806) |
| Total distributions | (1.469) | (3.103) | (13.059) | (1.128) | (2.533) | (1.701) |
| Net asset value, end of period | $54.09 | $53.11 | $53.97 | $64.41 | $59.81 | $61.42 |
| Total ReturnB,C | 4.66% | 4.50% | 4.73% | 9.71% | 1.73% | 5.60% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .47%F | .53% | .58% | .08% | - %G | - %G |
| Expenses net of fee waivers, if any | .47%F | .53% | .58% | .08% | -% | -% |
| Expenses net of all reductions | .47%F | .53% | .57% | .08% | -% | -% |
| Net investment income (loss) | 2.60%F | 1.96% | 1.59% | 1.55% | 1.63% | 1.49% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $4,856 | $4,087 | $3,714 | $4,885 | $6,996 | $8,622 |
| Portfolio turnover rateE | 29%F | 67% | 20% | 106% | 33% | 24% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class K
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $53.08 |
| Income from Investment Operations | |
| Net investment income (loss)B | .724 |
| Net realized and unrealized gain (loss) | 1.774 |
| Total from investment operations | 2.498 |
| Distributions from net investment income | (.713) |
| Distributions from net realized gain | (.785) |
| Total distributions | (1.498) |
| Net asset value, end of period | $54.08 |
| Total ReturnC | 4.76% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .37%F |
| Expenses net of fee waivers, if any | .37%F |
| Expenses net of all reductions | .37%F |
| Net investment income (loss) | 2.70%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $105 |
| Portfolio turnover rateE | 29%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class K6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $53.08 |
| Income from Investment Operations | |
| Net investment income (loss)B | .751 |
| Net realized and unrealized gain (loss) | 1.779 |
| Total from investment operations | 2.530 |
| Distributions from net investment income | (.735) |
| Distributions from net realized gain | (.785) |
| Total distributions | (1.520) |
| Net asset value, end of period | $54.09 |
| Total ReturnC | 4.82% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .27%F |
| Expenses net of fee waivers, if any | .27%F |
| Expenses net of all reductions | .27%F |
| Net investment income (loss) | 2.80%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $105 |
| Portfolio turnover rateE | 29%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class I
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $53.12 | $53.98 | $64.42 | $59.81 | $61.42 | $59.83 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .698 | 1.015 | .877 | .951 | .940 | .906 |
| Net realized and unrealized gain (loss) | 1.748 | 1.227 | 1.742 | 4.788 | (.017) | 2.385 |
| Total from investment operations | 2.446 | 2.242 | 2.619 | 5.739 | .923 | 3.291 |
| Distributions from net investment income | (.681) | (1.013) | (.869) | (.900) | (.939) | (.895) |
| Distributions from net realized gain | (.785) | (2.089) | (12.190) | (.229) | (1.594) | (.806) |
| Total distributions | (1.466) | (3.102) | (13.059) | (1.129) | (2.533) | (1.701) |
| Net asset value, end of period | $54.10 | $53.12 | $53.98 | $64.42 | $59.81 | $61.42 |
| Total ReturnB,C | 4.65% | 4.50% | 4.73% | 9.73% | 1.73% | 5.58% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .47%F | .53% | .58% | .08% | - %G | - %G |
| Expenses net of fee waivers, if any | .47%F | .53% | .58% | .08% | -% | -% |
| Expenses net of all reductions | .47%F | .53% | .57% | .08% | -% | -% |
| Net investment income (loss) | 2.60%F | 1.97% | 1.59% | 1.55% | 1.63% | 1.49% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $266 | $287 | $185 | $252 | $232 | $228 |
| Portfolio turnover rateE | 29%F | 67% | 20% | 106% | 33% | 24% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class Z6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $53.09 |
| Income from Investment Operations | |
| Net investment income (loss)B | .748 |
| Net realized and unrealized gain (loss) | 1.780 |
| Total from investment operations | 2.528 |
| Distributions from net investment income | (.743) |
| Distributions from net realized gain | (.785) |
| Total distributions | (1.528) |
| Net asset value, end of period | $54.09 |
| Total ReturnC | 4.81% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .27%F |
| Expenses net of fee waivers, if any | .27%F |
| Expenses net of all reductions | .27%F |
| Net investment income (loss) | 2.80%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $467 |
| Portfolio turnover rateE | 29%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 9.2 |
| Fidelity Series Government Bond Index Fund | 8.8 |
| Fidelity Series Inflation-Protected Bond Index Fund | 8.3 |
| Fidelity Series Emerging Markets Opportunities Fund | 6.6 |
| Fidelity Series Treasury Bill Index Fund | 6.6 |
| Fidelity Series Corporate Bond Fund | 6.4 |
| Fidelity Series Investment Grade Securitized Fund | 6.3 |
| Fidelity Series International Growth Fund | 4.7 |
| Fidelity Series International Value Fund | 4.3 |
| Fidelity Series Intrinsic Opportunities Fund | 3.7 |
| 64.9 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 24.6% | |
| International Equity Funds | 20.9% | |
| Bond Funds | 43.5% | |
| Short-Term Funds | 11.0% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2020 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 24.6% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 4,951 | $51,543 | |
| Fidelity Series Blue Chip Growth Fund (a) | 5,758 | 89,194 | |
| Fidelity Series Commodity Strategy Fund (a) | 46,898 | 206,821 | |
| Fidelity Series Growth Company Fund (a) | 10,119 | 184,980 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 13,428 | 218,208 | |
| Fidelity Series Large Cap Stock Fund (a) | 12,511 | 192,927 | |
| Fidelity Series Large Cap Value Index Fund (a) | 4,246 | 54,816 | |
| Fidelity Series Opportunistic Insights Fund (a) | 5,352 | 99,232 | |
| Fidelity Series Small Cap Discovery Fund (a) | 2,210 | 25,257 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 5,764 | 79,146 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 11,970 | 149,149 | |
| Fidelity Series Value Discovery Fund (a) | 7,839 | 101,985 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,400,049) | 1,453,258 | ||
| International Equity Funds - 20.9% | |||
| Fidelity Series Canada Fund (a) | 3,745 | 41,984 | |
| Fidelity Series Emerging Markets Fund (a) | 4,677 | 44,201 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 19,866 | 390,570 | |
| Fidelity Series International Growth Fund (a) | 15,976 | 277,507 | |
| Fidelity Series International Small Cap Fund (a) | 3,691 | 61,978 | |
| Fidelity Series International Value Fund (a) | 26,437 | 252,471 | |
| Fidelity Series Overseas Fund (a) | 15,552 | 165,627 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,184,861) | 1,234,338 | ||
| Bond Funds - 43.5% | |||
| Fidelity Series Corporate Bond Fund (a) | 34,272 | 375,965 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 3,896 | 37,753 | |
| Fidelity Series Floating Rate High Income Fund (a) | 927 | 8,625 | |
| Fidelity Series Government Bond Index Fund (a) | 48,341 | 518,211 | |
| Fidelity Series High Income Fund (a) | 4,590 | 43,603 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 47,841 | 487,018 | |
| Fidelity Series International Credit Fund (a) | 195 | 2,010 | |
| Fidelity Series Investment Grade Bond Fund (a) | 45,884 | 540,517 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 35,665 | 369,842 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 16,048 | 151,653 | |
| Fidelity Series Real Estate Income Fund (a) | 2,491 | 28,097 | |
| TOTAL BOND FUNDS | |||
| (Cost $2,459,270) | 2,563,294 | ||
| Short-Term Funds - 11.0% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 129,346 | 129,346 | |
| Fidelity Series Short-Term Credit Fund (a) | 12,849 | 130,162 | |
| Fidelity Series Treasury Bill Index Fund (a) | 38,918 | 389,184 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $646,528) | 648,692 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $5,690,708) | 5,899,582 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (2,357) | ||
| NET ASSETS - 100% | $5,897,225 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $46,035 | $19,119 | $14,952 | $3,556 | $(973) | $2,314 | $51,543 |
| Fidelity Series Blue Chip Growth Fund | 80,030 | 36,363 | 27,298 | 9,768 | (813) | 912 | 89,194 |
| Fidelity Series Canada Fund | 25,829 | 19,620 | 4,261 | 709 | 9 | 787 | 41,984 |
| Fidelity Series Commodity Strategy Fund | 161,366 | 85,082 | 29,451 | 2,785 | 199 | (10,375) | 206,821 |
| Fidelity Series Corporate Bond Fund | 276,974 | 132,520 | 47,042 | 6,867 | 68 | 13,445 | 375,965 |
| Fidelity Series Emerging Markets Debt Fund | 33,070 | 12,021 | 6,980 | 1,031 | (75) | (283) | 37,753 |
| Fidelity Series Emerging Markets Fund | 29,788 | 18,817 | 4,394 | 929 | (30) | 20 | 44,201 |
| Fidelity Series Emerging Markets Opportunities Fund | 263,325 | 157,604 | 45,248 | 9,313 | 884 | 14,005 | 390,570 |
| Fidelity Series Floating Rate High Income Fund | 6,905 | 2,644 | 905 | 226 | (4) | (15) | 8,625 |
| Fidelity Series Government Bond Index Fund | 379,794 | 184,432 | 58,690 | 6,128 | (84) | 12,759 | 518,211 |
| Fidelity Series Government Money Market Fund 1.62% | 107,728 | 46,139 | 24,521 | 1,101 | -- | -- | 129,346 |
| Fidelity Series Growth Company Fund | 161,023 | 72,488 | 55,764 | 17,861 | 1,541 | 5,692 | 184,980 |
| Fidelity Series High Income Fund | 34,753 | 13,391 | 4,567 | 1,300 | (9) | 35 | 43,603 |
| Fidelity Series Inflation-Protected Bond Index Fund | 314,339 | 218,720 | 52,579 | 5,550 | 75 | 6,463 | 487,018 |
| Fidelity Series International Credit Fund | 1,904 | 91 | -- | 91 | -- | 15 | 2,010 |
| Fidelity Series International Growth Fund | 233,125 | 84,669 | 57,836 | 9,333 | 2,577 | 14,972 | 277,507 |
| Fidelity Series International Small Cap Fund | 50,720 | 24,080 | 15,776 | 2,810 | 184 | 2,770 | 61,978 |
| Fidelity Series International Value Fund | 221,500 | 88,356 | 61,609 | 10,358 | (483) | 4,707 | 252,471 |
| Fidelity Series Intrinsic Opportunities Fund | 196,570 | 90,170 | 66,364 | 11,170 | (335) | (1,833) | 218,208 |
| Fidelity Series Investment Grade Bond Fund | 404,292 | 187,276 | 65,014 | 7,282 | 179 | 13,784 | 540,517 |
| Fidelity Series Investment Grade Securitized Fund | 286,623 | 130,523 | 47,796 | 7,448 | (38) | 530 | 369,842 |
| Fidelity Series Large Cap Stock Fund | 172,457 | 73,247 | 57,530 | 10,702 | 930 | 3,823 | 192,927 |
| Fidelity Series Large Cap Value Index Fund | 49,304 | 20,763 | 15,020 | 3,158 | 236 | (467) | 54,816 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 193,779 | 69,769 | 119,181 | 11,358 | 10,482 | (3,196) | 151,653 |
| Fidelity Series Opportunistic Insights Fund | 88,457 | 37,373 | 26,321 | 7,822 | 76 | (353) | 99,232 |
| Fidelity Series Overseas Fund | 19,539 | 139,465 | -- | 445 | -- | 6,623 | 165,627 |
| Fidelity Series Real Estate Income Fund | 22,038 | 8,736 | 2,863 | 1,163 | 23 | 163 | 28,097 |
| Fidelity Series Short-Term Credit Fund | 107,744 | 45,950 | 24,620 | 1,582 | 34 | 1,054 | 130,162 |
| Fidelity Series Small Cap Discovery Fund | 23,734 | 7,991 | 6,953 | 1,052 | 121 | 364 | 25,257 |
| Fidelity Series Small Cap Opportunities Fund | 72,226 | 28,281 | 19,618 | 5,220 | (318) | (1,425) | 79,146 |
| Fidelity Series Stock Selector Large Cap Value Fund | 133,049 | 54,261 | 39,180 | 6,908 | 68 | 951 | 149,149 |
| Fidelity Series Treasury Bill Index Fund | 323,064 | 139,030 | 73,278 | 3,114 | 50 | 318 | 389,184 |
| Fidelity Series Value Discovery Fund | 94,984 | 35,809 | 28,676 | 3,901 | 352 | (484) | 101,985 |
| $4,616,068 | $2,284,800 | $1,104,287 | $172,041 | $14,926 | $88,075 | $5,899,582 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $5,690,708) | $5,899,582 | |
| Total Investment in Securities (cost $5,690,708) | $5,899,582 | |
| Cash | 40 | |
| Receivable for investments sold | 69,107 | |
| Total assets | 5,968,729 | |
| Liabilities | ||
| Payable for investments purchased | $69,289 | |
| Payable for fund shares redeemed | 5 | |
| Accrued management fee | 2,205 | |
| Distribution and service plan fees payable | 5 | |
| Total liabilities | 71,504 | |
| Net Assets | $5,897,225 | |
| Net Assets consist of: | ||
| Paid in capital | $5,658,354 | |
| Total accumulated earnings (loss) | 238,871 | |
| Net Assets | $5,897,225 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($58,193 ÷ 1,108.69 shares)(a) | $52.49 | |
| Maximum offering price per share (100/94.25 of $52.49) | $55.69 | |
| Fidelity Managed Retirement 2020: | ||
| Net Asset Value, offering price and redemption price per share ($5,335,014 ÷ 101,648.72 shares) | $52.48 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($105,273 ÷ 2,005.75 shares) | $52.49 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($105,326 ÷ 2,006.55 shares) | $52.49 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($188,093 ÷ 3,582.78 shares) | $52.50 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($105,326 ÷ 2,006.55 shares) | $52.49 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $83,923 | |
| Expenses | ||
| Management fee | $12,274 | |
| Distribution and service plan fees | 19 | |
| Independent trustees' fees and expenses | 9 | |
| Total expenses | 12,302 | |
| Net investment income (loss) | 71,621 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 9 | |
| Affiliated issuers | 14,917 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 88,118 | |
| Total net realized gain (loss) | 103,044 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 88,075 | |
| Total change in net unrealized appreciation (depreciation) | 88,075 | |
| Net gain (loss) | 191,119 | |
| Net increase (decrease) in net assets resulting from operations | $262,740 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $71,621 | $64,164 |
| Net realized gain (loss) | 103,044 | 54,477 |
| Change in net unrealized appreciation (depreciation) | 88,075 | 22,111 |
| Net increase (decrease) in net assets resulting from operations | 262,740 | 140,752 |
| Distributions to shareholders | (149,798) | (207,367) |
| Share transactions - net increase (decrease) | 1,170,113 | 1,224,782 |
| Total increase (decrease) in net assets | 1,283,055 | 1,158,167 |
| Net Assets | ||
| Beginning of period | 4,614,170 | 3,456,003 |
| End of period | $5,897,225 | $4,614,170 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2020 Fund Class A
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $51.34 | $52.52 | $62.67 | $57.92 | $59.57 | $57.74 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .622 | .783 | .676 | .776 | .774 | .718 |
| Net realized and unrealized gain (loss) | 1.898 | 1.134 | 2.152 | 5.041 | (.138) | 2.463 |
| Total from investment operations | 2.520 | 1.917 | 2.828 | 5.817 | .636 | 3.181 |
| Distributions from net investment income | (.633) | (.822) | (.685) | (.706) | (.766) | (.712) |
| Distributions from net realized gain | (.737) | (2.275) | (12.293) | (.361) | (1.520) | (.639) |
| Total distributions | (1.370) | (3.097) | (12.978) | (1.067) | (2.286) | (1.351) |
| Net asset value, end of period | $52.49 | $51.34 | $52.52 | $62.67 | $57.92 | $59.57 |
| Total ReturnB,C,D | 4.94% | 4.02% | 5.29% | 10.19% | 1.27% | 5.58% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .72%G | .81%H | .87% | .34% | .25% | .25% |
| Expenses net of fee waivers, if any | .72%G | .81%H | .87% | .34% | .25% | .25% |
| Expenses net of all reductions | .72%G | .81%H | .87% | .34% | .25% | .25% |
| Net investment income (loss) | 2.43%G | 1.57% | 1.26% | 1.29% | 1.39% | 1.22% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $58 | $20 | $17 | $17 | $62 | $172 |
| Portfolio turnover rateF | 42%G | 86% | 19% | 115% | 23% | 41% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
H On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $51.35 | $52.53 | $62.67 | $57.92 | $59.58 | $57.75 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .695 | .916 | .818 | .909 | .915 | .865 |
| Net realized and unrealized gain (loss) | 1.887 | 1.125 | 2.145 | 5.058 | (.145) | 2.464 |
| Total from investment operations | 2.582 | 2.041 | 2.963 | 5.967 | .770 | 3.329 |
| Distributions from net investment income | (.715) | (.946) | (.810) | (.856) | (.910) | (.860) |
| Distributions from net realized gain | (.737) | (2.275) | (12.293) | (.361) | (1.520) | (.639) |
| Total distributions | (1.452) | (3.221) | (13.103) | (1.217) | (2.430) | (1.499) |
| Net asset value, end of period | $52.48 | $51.35 | $52.53 | $62.67 | $57.92 | $59.58 |
| Total ReturnB,C | 5.07% | 4.28% | 5.56% | 10.47% | 1.52% | 5.84% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .47%F | .55% | .62% | .10% | - %G | - %G |
| Expenses net of fee waivers, if any | .47%F | .55% | .62% | .10% | -% | -% |
| Expenses net of all reductions | .47%F | .55% | .61% | .10% | -% | -% |
| Net investment income (loss) | 2.68%F | 1.83% | 1.52% | 1.53% | 1.64% | 1.47% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $5,335 | $4,303 | $3,139 | $4,314 | $4,597 | $6,181 |
| Portfolio turnover rateE | 42%F | 86% | 19% | 115% | 23% | 41% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class K
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $51.28 |
| Income from Investment Operations | |
| Net investment income (loss)B | .722 |
| Net realized and unrealized gain (loss) | 1.965 |
| Total from investment operations | 2.687 |
| Distributions from net investment income | (.740) |
| Distributions from net realized gain | (.737) |
| Total distributions | (1.477) |
| Net asset value, end of period | $52.49 |
| Total ReturnC | 5.28% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .37%F |
| Expenses net of fee waivers, if any | .37%F |
| Expenses net of all reductions | .37%F |
| Net investment income (loss) | 2.78%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $105 |
| Portfolio turnover rateE | 42%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class K6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $51.28 |
| Income from Investment Operations | |
| Net investment income (loss)B | .748 |
| Net realized and unrealized gain (loss) | 1.960 |
| Total from investment operations | 2.708 |
| Distributions from net investment income | (.761) |
| Distributions from net realized gain | (.737) |
| Total distributions | (1.498) |
| Net asset value, end of period | $52.49 |
| Total ReturnC | 5.32% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .27%F |
| Expenses net of fee waivers, if any | .27%F |
| Expenses net of all reductions | .27%F |
| Net investment income (loss) | 2.88%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $105 |
| Portfolio turnover rateE | 42%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class I
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $51.35 | $52.53 | $62.67 | $57.92 | $59.58 | $57.75 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .699 | .890 | .812 | .909 | .913 | .865 |
| Net realized and unrealized gain (loss) | 1.887 | 1.148 | 2.161 | 5.048 | (.143) | 2.464 |
| Total from investment operations | 2.586 | 2.038 | 2.973 | 5.957 | .770 | 3.329 |
| Distributions from net investment income | (.699) | (.943) | (.820) | (.846) | (.910) | (.860) |
| Distributions from net realized gain | (.737) | (2.275) | (12.293) | (.361) | (1.520) | (.639) |
| Total distributions | (1.436) | (3.218) | (13.113) | (1.207) | (2.430) | (1.499) |
| Net asset value, end of period | $52.50 | $51.35 | $52.53 | $62.67 | $57.92 | $59.58 |
| Total ReturnB,C | 5.07% | 4.27% | 5.58% | 10.45% | 1.52% | 5.84% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .47%F | .55% | .62% | .10% | - %G | - %G |
| Expenses net of fee waivers, if any | .47%F | .55% | .62% | .10% | -% | -% |
| Expenses net of all reductions | .47%F | .55% | .61% | .10% | -% | -% |
| Net investment income (loss) | 2.68%F | 1.83% | 1.52% | 1.53% | 1.64% | 1.47% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $188 | $291 | $28 | $26 | $33 | $34 |
| Portfolio turnover rateE | 42%F | 86% | 19% | 115% | 23% | 41% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class Z6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $51.28 |
| Income from Investment Operations | |
| Net investment income (loss)B | .748 |
| Net realized and unrealized gain (loss) | 1.960 |
| Total from investment operations | 2.708 |
| Distributions from net investment income | (.761) |
| Distributions from net realized gain | (.737) |
| Total distributions | (1.498) |
| Net asset value, end of period | $52.49 |
| Total ReturnC | 5.32% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .27%F |
| Expenses net of fee waivers, if any | .27%F |
| Expenses net of all reductions | .27%F |
| Net investment income (loss) | 2.88%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $105 |
| Portfolio turnover rateE | 42%F |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 8.6 |
| Fidelity Series Government Bond Index Fund | 8.3 |
| Fidelity Series Inflation-Protected Bond Index Fund | 7.4 |
| Fidelity Series Emerging Markets Opportunities Fund | 7.2 |
| Fidelity Series Corporate Bond Fund | 6.0 |
| Fidelity Series Investment Grade Securitized Fund | 5.9 |
| Fidelity Series International Growth Fund | 5.3 |
| Fidelity Series International Value Fund | 5.1 |
| Fidelity Series Treasury Bill Index Fund | 4.6 |
| Fidelity Series Intrinsic Opportunities Fund | 4.4 |
| 62.8 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 28.3% | |
| International Equity Funds | 23.3% | |
| Bond Funds | 40.8% | |
| Short-Term Funds | 7.6% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2025 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 28.3% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 29,892 | $311,175 | |
| Fidelity Series Blue Chip Growth Fund (a) | 35,035 | 542,685 | |
| Fidelity Series Commodity Strategy Fund (a) | 243,784 | 1,075,086 | |
| Fidelity Series Growth Company Fund (a) | 60,275 | 1,101,829 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 81,702 | 1,327,656 | |
| Fidelity Series Large Cap Stock Fund (a) | 76,123 | 1,173,821 | |
| Fidelity Series Large Cap Value Index Fund (a) | 25,732 | 332,202 | |
| Fidelity Series Opportunistic Insights Fund (a) | 33,423 | 619,665 | |
| Fidelity Series Small Cap Discovery Fund (a) | 13,455 | 153,793 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 35,072 | 481,543 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 71,801 | 894,635 | |
| Fidelity Series Value Discovery Fund (a) | 49,552 | 644,665 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $8,376,695) | 8,658,755 | ||
| International Equity Funds - 23.3% | |||
| Fidelity Series Canada Fund (a) | 25,365 | 284,342 | |
| Fidelity Series Emerging Markets Fund (a) | 26,439 | 249,850 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 112,306 | 2,207,938 | |
| Fidelity Series International Growth Fund (a) | 92,521 | 1,607,090 | |
| Fidelity Series International Small Cap Fund (a) | 21,706 | 364,436 | |
| Fidelity Series International Value Fund (a) | 163,726 | 1,563,584 | |
| Fidelity Series Overseas Fund (a) | 81,846 | 871,658 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $6,893,581) | 7,148,898 | ||
| Bond Funds - 40.8% | |||
| Fidelity Series Corporate Bond Fund (a) | 168,062 | 1,843,638 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 20,333 | 197,024 | |
| Fidelity Series Floating Rate High Income Fund (a) | 4,789 | 44,537 | |
| Fidelity Series Government Bond Index Fund (a) | 236,820 | 2,538,715 | |
| Fidelity Series High Income Fund (a) | 23,750 | 225,621 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 221,179 | 2,251,605 | |
| Fidelity Series International Credit Fund (a) | 1,299 | 13,406 | |
| Fidelity Series Investment Grade Bond Fund (a) | 224,800 | 2,648,140 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 174,554 | 1,810,124 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 83,390 | 788,038 | |
| Fidelity Series Real Estate Income Fund (a) | 12,806 | 144,449 | |
| TOTAL BOND FUNDS | |||
| (Cost $12,046,026) | 12,505,297 | ||
| Short-Term Funds - 7.6% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 467,835 | 467,835 | |
| Fidelity Series Short-Term Credit Fund (a) | 46,197 | 467,973 | |
| Fidelity Series Treasury Bill Index Fund (a) | 140,344 | 1,403,437 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $2,332,549) | 2,339,245 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $29,648,851) | 30,652,195 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (12,779) | ||
| NET ASSETS - 100% | $30,639,416 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $248,012 | $119,898 | $64,736 | $20,943 | $(8,248) | $16,249 | $311,175 |
| Fidelity Series Blue Chip Growth Fund | 431,668 | 224,224 | 123,699 | 50,588 | (477) | 10,969 | 542,685 |
| Fidelity Series Canada Fund | 133,525 | 151,746 | 5,228 | 4,256 | 3 | 4,296 | 284,342 |
| Fidelity Series Commodity Strategy Fund | 747,713 | 475,093 | 91,455 | 13,280 | (5,315) | (50,950) | 1,075,086 |
| Fidelity Series Corporate Bond Fund | 1,169,528 | 752,888 | 139,969 | 31,482 | (159) | 61,350 | 1,843,638 |
| Fidelity Series Emerging Markets Debt Fund | 152,144 | 69,525 | 24,183 | 4,975 | (1,387) | 925 | 197,024 |
| Fidelity Series Emerging Markets Fund | 149,406 | 113,562 | 13,625 | 5,102 | (50) | 557 | 249,850 |
| Fidelity Series Emerging Markets Opportunities Fund | 1,322,221 | 951,885 | 144,036 | 51,155 | 610 | 77,258 | 2,207,938 |
| Fidelity Series Floating Rate High Income Fund | 31,721 | 15,422 | 2,575 | 1,089 | (25) | (6) | 44,537 |
| Fidelity Series Government Bond Index Fund | 1,603,702 | 1,042,673 | 162,840 | 27,843 | (2,040) | 57,220 | 2,538,715 |
| Fidelity Series Government Money Market Fund 1.62% | 384,354 | 184,974 | 101,493 | 3,732 | -- | -- | 467,835 |
| Fidelity Series Growth Company Fund | 869,187 | 460,161 | 273,063 | 105,754 | 4,769 | 40,775 | 1,101,829 |
| Fidelity Series High Income Fund | 160,534 | 77,935 | 12,935 | 6,265 | 32 | 55 | 225,621 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,194,423 | 1,171,238 | 141,451 | 25,471 | (432) | 27,827 | 2,251,605 |
| Fidelity Series International Credit Fund | 12,700 | 609 | -- | 609 | -- | 97 | 13,406 |
| Fidelity Series International Growth Fund | 1,194,661 | 545,286 | 230,013 | 53,093 | 4,165 | 92,991 | 1,607,090 |
| Fidelity Series International Small Cap Fund | 257,287 | 161,373 | 69,561 | 16,013 | 152 | 15,185 | 364,436 |
| Fidelity Series International Value Fund | 1,145,190 | 568,699 | 168,379 | 58,921 | (2,335) | 20,409 | 1,563,584 |
| Fidelity Series Intrinsic Opportunities Fund | 1,061,122 | 558,712 | 284,592 | 58,917 | 978 | (8,564) | 1,327,656 |
| Fidelity Series Investment Grade Bond Fund | 1,707,105 | 1,064,673 | 186,500 | 33,260 | (340) | 63,202 | 2,648,140 |
| Fidelity Series Investment Grade Securitized Fund | 1,210,285 | 718,703 | 120,451 | 34,357 | (548) | 2,135 | 1,810,124 |
| Fidelity Series Large Cap Stock Fund | 930,917 | 459,729 | 249,716 | 56,482 | 2,272 | 30,619 | 1,173,821 |
| Fidelity Series Large Cap Value Index Fund | 265,681 | 129,616 | 61,438 | 18,647 | 185 | (1,842) | 332,202 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 1,008,689 | 335,063 | 593,277 | 59,683 | 54,221 | (16,658) | 788,038 |
| Fidelity Series Opportunistic Insights Fund | 477,186 | 242,372 | 101,254 | 46,106 | 769 | 592 | 619,665 |
| Fidelity Series Overseas Fund | 118,524 | 715,681 | -- | 2,549 | -- | 37,453 | 871,658 |
| Fidelity Series Real Estate Income Fund | 101,236 | 50,354 | 8,138 | 5,445 | (28) | 1,025 | 144,449 |
| Fidelity Series Short-Term Credit Fund | 384,396 | 181,321 | 101,594 | 5,404 | 285 | 3,565 | 467,973 |
| Fidelity Series Small Cap Discovery Fund | 127,535 | 54,742 | 30,884 | 6,382 | (1) | 2,401 | 153,793 |
| Fidelity Series Small Cap Opportunities Fund | 389,103 | 176,539 | 78,067 | 26,906 | (1,313) | (4,719) | 481,543 |
| Fidelity Series Stock Selector Large Cap Value Fund | 718,051 | 334,266 | 163,067 | 40,755 | 641 | 4,744 | 894,635 |
| Fidelity Series Treasury Bill Index Fund | 1,152,634 | 552,715 | 302,948 | 10,659 | 166 | 870 | 1,403,437 |
| Fidelity Series Value Discovery Fund | 512,425 | 259,227 | 125,536 | 22,999 | 743 | (2,194) | 644,665 |
| $21,372,865 | $12,920,904 | $4,176,703 | $909,122 | $47,293 | $487,836 | $30,652,195 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $29,648,851) | $30,652,195 | |
| Total Investment in Securities (cost $29,648,851) | $30,652,195 | |
| Cash | 379 | |
| Receivable for investments sold | 222,241 | |
| Receivable for fund shares sold | 199,320 | |
| Total assets | 31,074,135 | |
| Liabilities | ||
| Payable for investments purchased | $398,982 | |
| Payable for fund shares redeemed | 23,544 | |
| Accrued management fee | 11,989 | |
| Distribution and service plan fees payable | 204 | |
| Total liabilities | 434,719 | |
| Net Assets | $30,639,416 | |
| Net Assets consist of: | ||
| Paid in capital | $29,369,812 | |
| Total accumulated earnings (loss) | 1,269,604 | |
| Net Assets | $30,639,416 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($979,644 ÷ 18,202.93 shares)(a) | $53.82 | |
| Maximum offering price per share (100/94.25 of $53.82) | $57.10 | |
| Fidelity Managed Retirement 2025: | ||
| Net Asset Value, offering price and redemption price per share ($28,744,183 ÷ 533,636.29 shares) | $53.86 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($105,692 ÷ 1,961.99 shares) | $53.87 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($295,091 ÷ 5,480.54 shares) | $53.84 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($409,061 ÷ 7,579.41 shares) | $53.97 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($105,745 ÷ 1,960.13 shares) | $53.95 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $428,813 | |
| Expenses | ||
| Management fee | $61,645 | |
| Distribution and service plan fees | 865 | |
| Independent trustees' fees and expenses | 44 | |
| Total expenses before reductions | 62,554 | |
| Expense reductions | (2) | |
| Total expenses after reductions | 62,552 | |
| Net investment income (loss) | 366,261 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 73 | |
| Affiliated issuers | 47,277 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 480,309 | |
| Total net realized gain (loss) | 527,659 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 487,836 | |
| Total change in net unrealized appreciation (depreciation) | 487,836 | |
| Net gain (loss) | 1,015,495 | |
| Net increase (decrease) in net assets resulting from operations | $1,381,756 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $366,261 | $325,719 |
| Net realized gain (loss) | 527,659 | 495,574 |
| Change in net unrealized appreciation (depreciation) | 487,836 | (94,579) |
| Net increase (decrease) in net assets resulting from operations | 1,381,756 | 726,714 |
| Distributions to shareholders | (912,451) | (1,131,885) |
| Share transactions - net increase (decrease) | 8,805,769 | 3,566,811 |
| Total increase (decrease) in net assets | 9,275,074 | 3,161,640 |
| Net Assets | ||
| Beginning of period | 21,364,342 | 18,202,702 |
| End of period | $30,639,416 | $21,364,342 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2025 Fund Class A
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $52.89 | $54.27 | $64.30 | $59.20 | $61.04 | $59.16 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .689 | .818 | .678 | .800 | .798 | .756 |
| Net realized and unrealized gain (loss) | 2.075 | 1.072 | 2.470 | 5.517 | (.292) | 2.687 |
| Total from investment operations | 2.764 | 1.890 | 3.148 | 6.317 | .506 | 3.443 |
| Distributions from net investment income | (.683) | (.820) | (.654) | (.749) | (.802) | (.750) |
| Distributions from net realized gain | (1.151) | (2.450) | (12.524) | (.468) | (1.544) | (.813) |
| Total distributions | (1.834) | (3.270) | (13.178) | (1.217) | (2.346) | (1.563) |
| Net asset value, end of period | $53.82 | $52.89 | $54.27 | $64.30 | $59.20 | $61.04 |
| Total ReturnB,C,D | 5.29% | 3.87% | 5.74% | 10.85% | 1.03% | 5.90% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .73%G | .84% | .91% | .35% | .25% | .25% |
| Expenses net of fee waivers, if any | .73%G | .84% | .91% | .35% | .25% | .25% |
| Expenses net of all reductions | .73%G | .84% | .91% | .35% | .25% | .25% |
| Net investment income (loss) | 2.58%G | 1.59% | 1.23% | 1.31% | 1.40% | 1.26% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $980 | $556 | $577 | $592 | $536 | $636 |
| Portfolio turnover rateF | 32%G | 48% | 19% | 108% | 29% | 39% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $52.92 | $54.31 | $64.34 | $59.22 | $61.06 | $59.18 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .756 | .950 | .820 | .951 | .941 | .906 |
| Net realized and unrealized gain (loss) | 2.076 | 1.062 | 2.468 | 5.523 | (.293) | 2.687 |
| Total from investment operations | 2.832 | 2.012 | 3.288 | 6.474 | .648 | 3.593 |
| Distributions from net investment income | (.741) | (.952) | (.794) | (.886) | (.944) | (.900) |
| Distributions from net realized gain | (1.151) | (2.450) | (12.524) | (.468) | (1.544) | (.813) |
| Total distributions | (1.892) | (3.402) | (13.318) | (1.354) | (2.488) | (1.713) |
| Net asset value, end of period | $53.86 | $52.92 | $54.31 | $64.34 | $59.22 | $61.06 |
| Total ReturnB,C | 5.42% | 4.11% | 6.01% | 11.13% | 1.29% | 6.17% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .48%F | .59% | .66% | .10% | - %G | - %G |
| Expenses net of fee waivers, if any | .48%F | .59% | .66% | .10% | -% | -% |
| Expenses net of all reductions | .48%F | .59% | .66% | .10% | -% | -% |
| Net investment income (loss) | 2.84%F | 1.84% | 1.48% | 1.56% | 1.65% | 1.51% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $28,744 | $20,130 | $16,953 | $22,122 | $27,774 | $34,087 |
| Portfolio turnover rateE | 32%F | 48% | 19% | 108% | 29% | 39% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class K
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $52.82 |
| Income from Investment Operations | |
| Net investment income (loss)B | .784 |
| Net realized and unrealized gain (loss) | 2.183 |
| Total from investment operations | 2.967 |
| Distributions from net investment income | (.766) |
| Distributions from net realized gain | (1.151) |
| Total distributions | (1.917) |
| Net asset value, end of period | $53.87 |
| Total ReturnC,D | 5.69% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .38%G |
| Expenses net of fee waivers, if any | .38%G |
| Expenses net of all reductions | .38%G |
| Net investment income (loss) | 2.94%G |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $106 |
| Portfolio turnover rateF | 32%G |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class K6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $52.82 |
| Income from Investment Operations | |
| Net investment income (loss)B | .816 |
| Net realized and unrealized gain (loss) | 2.171 |
| Total from investment operations | 2.987 |
| Distributions from net investment income | (.816) |
| Distributions from net realized gain | (1.151) |
| Total distributions | (1.967) |
| Net asset value, end of period | $53.84 |
| Total ReturnC,D | 5.73% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .28%G |
| Expenses net of fee waivers, if any | .28%G |
| Expenses net of all reductions | .28%G |
| Net investment income (loss) | 3.03%G |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $295 |
| Portfolio turnover rateF | 32%G |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class I
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $53.00 | $54.38 | $64.33 | $59.21 | $61.06 | $59.18 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .759 | .906 | .835 | .953 | .943 | .906 |
| Net realized and unrealized gain (loss) | 2.075 | 1.114 | 2.466 | 5.521 | (.305) | 2.687 |
| Total from investment operations | 2.834 | 2.020 | 3.301 | 6.474 | .638 | 3.593 |
| Distributions from net investment income | (.713) | (.950) | (.727) | (.886) | (.944) | (.900) |
| Distributions from net realized gain | (1.151) | (2.450) | (12.524) | (.468) | (1.544) | (.813) |
| Total distributions | (1.864) | (3.400) | (13.251) | (1.354) | (2.488) | (1.713) |
| Net asset value, end of period | $53.97 | $53.00 | $54.38 | $64.33 | $59.21 | $61.06 |
| Total ReturnB,C | 5.42% | 4.12% | 6.03% | 11.14% | 1.27% | 6.17% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .48%F | .57%G | .66% | .10% | - %H | - %H |
| Expenses net of fee waivers, if any | .48%F | .57%G | .66% | .10% | -% | -% |
| Expenses net of all reductions | .48%F | .57%G | .65% | .10% | -% | -% |
| Net investment income (loss) | 2.84%F | 1.87% | 1.49% | 1.56% | 1.65% | 1.51% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $409 | $678 | $28 | $79 | $78 | $148 |
| Portfolio turnover rateE | 32%F | 48% | 19% | 108% | 29% | 39% |
A Calculated based on average shares outstanding during the period.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
H Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class Z6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $52.89 |
| Income from Investment Operations | |
| Net investment income (loss)B | .811 |
| Net realized and unrealized gain (loss) | 2.189 |
| Total from investment operations | 3.000 |
| Distributions from net investment income | (.789) |
| Distributions from net realized gain | (1.151) |
| Total distributions | (1.940) |
| Net asset value, end of period | $53.95 |
| Total ReturnC,D | 5.75% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .28%G |
| Expenses net of fee waivers, if any | .28%G |
| Expenses net of all reductions | .28%G |
| Net investment income (loss) | 3.04%G |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $106 |
| Portfolio turnover rateF | 32%G |
A For the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 8.3 |
| Fidelity Series Government Bond Index Fund | 8.0 |
| Fidelity Series Emerging Markets Opportunities Fund | 7.7 |
| Fidelity Series Inflation-Protected Bond Index Fund | 6.7 |
| Fidelity Series Corporate Bond Fund | 5.8 |
| Fidelity Series Investment Grade Securitized Fund | 5.7 |
| Fidelity Series International Growth Fund | 5.6 |
| Fidelity Series International Value Fund | 5.5 |
| Fidelity Series Intrinsic Opportunities Fund | 4.8 |
| Fidelity Series Large Cap Stock Fund | 4.3 |
| 62.4 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 31.2% | |
| International Equity Funds | 25.3% | |
| Bond Funds | 39.1% | |
| Short-Term Funds | 4.4% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2030 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 31.2% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 4,090 | $42,576 | |
| Fidelity Series Blue Chip Growth Fund (a) | 4,794 | 74,255 | |
| Fidelity Series Commodity Strategy Fund (a) | 29,808 | 131,453 | |
| Fidelity Series Growth Company Fund (a) | 8,247 | 150,756 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 11,178 | 181,650 | |
| Fidelity Series Large Cap Stock Fund (a) | 10,415 | 160,603 | |
| Fidelity Series Large Cap Value Index Fund (a) | 3,535 | 45,633 | |
| Fidelity Series Opportunistic Insights Fund (a) | 4,456 | 82,609 | |
| Fidelity Series Small Cap Discovery Fund (a) | 1,843 | 21,069 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 4,815 | 66,106 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 9,965 | 124,158 | |
| Fidelity Series Value Discovery Fund (a) | 6,780 | 88,204 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,156,166) | 1,169,072 | ||
| International Equity Funds - 25.3% | |||
| Fidelity Series Canada Fund (a) | 2,924 | 32,776 | |
| Fidelity Series Emerging Markets Fund (a) | 3,444 | 32,548 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 14,632 | 287,672 | |
| Fidelity Series International Growth Fund (a) | 12,117 | 210,474 | |
| Fidelity Series International Small Cap Fund (a) | 2,929 | 49,176 | |
| Fidelity Series International Value Fund (a) | 21,532 | 205,628 | |
| Fidelity Series Overseas Fund (a) | 12,086 | 128,712 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $930,502) | 946,986 | ||
| Bond Funds - 39.1% | |||
| Fidelity Series Corporate Bond Fund (a) | 19,762 | 216,794 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 2,481 | 24,044 | |
| Fidelity Series Floating Rate High Income Fund (a) | 596 | 5,547 | |
| Fidelity Series Government Bond Index Fund (a) | 27,891 | 298,995 | |
| Fidelity Series High Income Fund (a) | 2,914 | 27,681 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 24,820 | 252,670 | |
| Fidelity Series International Credit Fund (a) | 181 | 1,867 | |
| Fidelity Series Investment Grade Bond Fund (a) | 26,461 | 311,708 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 20,545 | 213,053 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 10,185 | 96,248 | |
| Fidelity Series Real Estate Income Fund (a) | 1,551 | 17,494 | |
| TOTAL BOND FUNDS | |||
| (Cost $1,453,303) | 1,466,101 | ||
| Short-Term Funds - 4.4% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 32,766 | 32,766 | |
| Fidelity Series Short-Term Credit Fund (a) | 3,235 | 32,773 | |
| Fidelity Series Treasury Bill Index Fund (a) | 9,830 | 98,298 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $163,730) | 163,837 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $3,703,701) | 3,745,996 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (1,160) | ||
| NET ASSETS - 100% | $3,744,836 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
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 | $177 |
| Total | $177 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $-- | $48,821 | $7,052 | $2,212 | $(72) | $879 | $42,576 |
| Fidelity Series Blue Chip Growth Fund | -- | 84,521 | 14,595 | 2,900 | (287) | 4,616 | 74,255 |
| Fidelity Series Canada Fund | -- | 35,189 | 2,817 | 440 | (12) | 416 | 32,776 |
| Fidelity Series Commodity Strategy Fund | -- | 148,849 | 11,603 | 913 | (89) | (5,704) | 131,453 |
| Fidelity Series Corporate Bond Fund | -- | 225,955 | 13,328 | 2,142 | (15) | 4,182 | 216,794 |
| Fidelity Series Emerging Markets Debt Fund | -- | 26,849 | 3,319 | 347 | 13 | 501 | 24,044 |
| Fidelity Series Emerging Markets Fund | -- | 34,585 | 2,230 | 513 | 1 | 192 | 32,548 |
| Fidelity Series Emerging Markets Opportunities Fund | -- | 304,292 | 21,737 | 5,145 | 88 | 5,029 | 287,672 |
| Fidelity Series Floating Rate High Income Fund | -- | 5,910 | 384 | 79 | -- | 21 | 5,547 |
| Fidelity Series Government Bond Index Fund | -- | 311,684 | 15,831 | 1,795 | (144) | 3,286 | 298,995 |
| Fidelity Series Government Money Market Fund 1.62% | -- | 44,232 | 11,466 | 142 | -- | -- | 32,766 |
| Fidelity Series Growth Company Fund | -- | 176,779 | 30,103 | 11,962 | (650) | 4,730 | 150,756 |
| Fidelity Series High Income Fund | -- | 29,685 | 2,066 | 437 | (4) | 66 | 27,681 |
| Fidelity Series Inflation-Protected Bond Index Fund | -- | 266,254 | 15,444 | 2,234 | (42) | 1,902 | 252,670 |
| Fidelity Series International Credit Fund | -- | 2,004 | 128 | 60 | (3) | (6) | 1,867 |
| Fidelity Series International Growth Fund | -- | 223,310 | 19,896 | 5,475 | (1) | 7,061 | 210,474 |
| Fidelity Series International Small Cap Fund | -- | 56,308 | 8,129 | 1,650 | (27) | 1,024 | 49,176 |
| Fidelity Series International Value Fund | -- | 223,774 | 17,732 | 6,076 | (68) | (346) | 205,628 |
| Fidelity Series Intrinsic Opportunities Fund | -- | 212,414 | 31,180 | 3,786 | 38 | 378 | 181,650 |
| Fidelity Series Investment Grade Bond Fund | -- | 325,597 | 18,194 | 2,301 | (18) | 4,323 | 311,708 |
| Fidelity Series Investment Grade Securitized Fund | -- | 224,301 | 11,331 | 2,344 | (49) | 132 | 213,053 |
| Fidelity Series Large Cap Stock Fund | -- | 182,425 | 27,049 | 2,706 | 26 | 5,201 | 160,603 |
| Fidelity Series Large Cap Value Index Fund | -- | 52,806 | 6,953 | 1,969 | (95) | (125) | 45,633 |
| Fidelity Series Long-Term Treasury Bond Index Fund | -- | 130,370 | 31,403 | 5,307 | (1,046) | (1,673) | 96,248 |
| Fidelity Series Opportunistic Insights Fund | -- | 95,156 | 13,665 | 4,870 | (212) | 1,330 | 82,609 |
| Fidelity Series Overseas Fund | -- | 129,696 | 4,101 | 263 | 10 | 3,107 | 128,712 |
| Fidelity Series Real Estate Income Fund | -- | 18,744 | 1,308 | 386 | (9) | 67 | 17,494 |
| Fidelity Series Short-Term Credit Fund | -- | 43,919 | 11,282 | 216 | (1) | 137 | 32,773 |
| Fidelity Series Small Cap Discovery Fund | -- | 24,093 | 3,197 | 674 | (23) | 196 | 21,069 |
| Fidelity Series Small Cap Opportunities Fund | -- | 73,836 | 8,772 | 1,522 | (34) | 1,076 | 66,106 |
| Fidelity Series Stock Selector Large Cap Value Fund | -- | 142,592 | 18,983 | 4,303 | (148) | 697 | 124,158 |
| Fidelity Series Treasury Bill Index Fund | -- | 132,587 | 34,255 | 427 | (3) | (31) | 98,298 |
| Fidelity Series Value Discovery Fund | -- | 102,438 | 13,801 | 2,428 | (64) | (369) | 88,204 |
| $-- | $4,139,975 | $433,334 | $78,024 | $(2,940) | $42,295 | $3,745,996 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $3,703,701) | $3,745,996 | |
| Total Investment in Securities (cost $3,703,701) | $3,745,996 | |
| Cash | 178 | |
| Receivable for investments sold | 19,601 | |
| Receivable for fund shares sold | 39,147 | |
| Total assets | 3,804,922 | |
| Liabilities | ||
| Payable for investments purchased | $58,833 | |
| Accrued management fee | 1,203 | |
| Distribution and service plan fees payable | 50 | |
| Total liabilities | 60,086 | |
| Net Assets | $3,744,836 | |
| Net Assets consist of: | ||
| Paid in capital | $3,673,313 | |
| Total accumulated earnings (loss) | 71,523 | |
| Net Assets | $3,744,836 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($236,021 ÷ 22,427 shares)A | $10.52 | |
| Maximum offering price per share (100/94.25 of $10.52) | $11.16 | |
| Fidelity Managed Retirement 2030 Fund: | ||
| Net Asset Value, offering price and redemption price per share ($2,774,491 ÷ 263,753 shares) | $10.52 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($178,232 ÷ 16,928 shares) | $10.53 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($199,619 ÷ 18,957 shares) | $10.53 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($178,160 ÷ 16,922 shares) | $10.53 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($178,313 ÷ 16,934 shares) | $10.53 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| For the period August 16, 2019 (commencement of operations) to January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $36,305 | |
| Income from Fidelity Central Funds | 177 | |
| Total income | 36,482 | |
| Expenses | ||
| Management fee | $4,033 | |
| Distribution and service plan fees | 243 | |
| Independent trustees' fees and expenses | 2 | |
| Total expenses | 4,278 | |
| Net investment income (loss) | 32,204 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (1) | |
| Affiliated issuers | (2,939) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 41,719 | |
| Total net realized gain (loss) | 38,779 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 42,295 | |
| Total change in net unrealized appreciation (depreciation) | 42,295 | |
| Net gain (loss) | 81,074 | |
| Net increase (decrease) in net assets resulting from operations | $113,278 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| For the period August 16, 2019 (commencement of operations) to January 31, 2020 (Unaudited) | |
| Increase (Decrease) in Net Assets | |
| Operations | |
| Net investment income (loss) | $32,204 |
| Net realized gain (loss) | 38,779 |
| Change in net unrealized appreciation (depreciation) | 42,295 |
| Net increase (decrease) in net assets resulting from operations | 113,278 |
| Distributions to shareholders | (41,755) |
| Share transactions - net increase (decrease) | 3,673,313 |
| Total increase (decrease) in net assets | 3,744,836 |
| Net Assets | |
| Beginning of period | – |
| End of period | $3,744,836 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2030 Fund Class A
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .153 |
| Net realized and unrealized gain (loss) | .520 |
| Total from investment operations | .673 |
| Distributions from net investment income | (.113) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.153) |
| Net asset value, end of period | $10.52 |
| Total ReturnC,D | 6.73% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .73%G |
| Expenses net of fee waivers, if any | .73%G |
| Expenses net of all reductions | .73%G |
| Net investment income (loss) | 3.22%G |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $236 |
| Portfolio turnover rateF | 20%H |
A For the period August 16, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns do not include the effect of the sales charges.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
F Amounts do not include the activity of Underlying Funds.
G Annualized
H Amount not annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .165 |
| Net realized and unrealized gain (loss) | .524 |
| Total from investment operations | .689 |
| Distributions from net investment income | (.129) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.169) |
| Net asset value, end of period | $10.52 |
| Total ReturnC | 6.90% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .48%F |
| Expenses net of fee waivers, if any | .48%F |
| Expenses net of all reductions | .48%F |
| Net investment income (loss) | 3.46%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $2,774 |
| Portfolio turnover rateE | 20%G |
A For the period August 16, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount not annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund Class K
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .170 |
| Net realized and unrealized gain (loss) | .525 |
| Total from investment operations | .695 |
| Distributions from net investment income | (.125) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.165) |
| Net asset value, end of period | $10.53 |
| Total ReturnC | 6.95% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .38%F |
| Expenses net of fee waivers, if any | .38%F |
| Expenses net of all reductions | .38%F |
| Net investment income (loss) | 3.57%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $178 |
| Portfolio turnover rateE | 20%G |
A For the period August 16, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount not annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund Class K6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .174 |
| Net realized and unrealized gain (loss) | .525 |
| Total from investment operations | .699 |
| Distributions from net investment income | (.129) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.169) |
| Net asset value, end of period | $10.53 |
| Total ReturnC | 7.00% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .28%F |
| Expenses net of fee waivers, if any | .28%F |
| Expenses net of all reductions | .28%F |
| Net investment income (loss) | 3.67%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $200 |
| Portfolio turnover rateE | 20%G |
A For the period August 16, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount not annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund Class I
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .165 |
| Net realized and unrealized gain (loss) | .526 |
| Total from investment operations | .691 |
| Distributions from net investment income | (.121) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.161) |
| Net asset value, end of period | $10.53 |
| Total ReturnC | 6.91% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .48%F |
| Expenses net of fee waivers, if any | .48%F |
| Expenses net of all reductions | .48%F |
| Net investment income (loss) | 3.47%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $178 |
| Portfolio turnover rateE | 20%G |
A For the period August 16, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount not annualized
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund Class Z6
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .174 |
| Net realized and unrealized gain (loss) | .525 |
| Total from investment operations | .699 |
| Distributions from net investment income | (.129) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.169) |
| Net asset value, end of period | $10.53 |
| Total ReturnC | 7.00% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .28%F |
| Expenses net of fee waivers, if any | .28%F |
| Expenses net of all reductions | .28%F |
| Net investment income (loss) | 3.67%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $178 |
| Portfolio turnover rateE | 20%G |
A For the period August 16, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the underlying funds in which the Fund invests.
E Amounts do not include the activity of Underlying Funds.
F Annualized
G Amount not annualized
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2020
1. Organization.
Fidelity Managed Retirement Income Fund, Fidelity Managed Retirement 2005 Fund, Fidelity Managed Retirement 2010 Fund, Fidelity Managed Retirement 2015 Fund, Fidelity Managed Retirement 2020 Fund, Fidelity Managed Retirement 2025 Fund and Fidelity Managed Retirement 2030 Fund (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 LLC (FMR).
The Funds are designed for investors who seek to convert accumulated assets into regular payments over a defined period of time. The Funds' investment objective is intended to support a withdrawal strategy to provide shareholders with income in retirement, starting after the horizon date indicated by its name, resulting in the gradual liquidation of the shareholder's investment in the Fund.
Each Fund offers the following classes of shares: Class A, Fidelity Managed Retirement, Class K, Class K6, Class I and Class Z6. Each class has equal rights as to assets and voting privileges, except for matters affecting a single class. Class K, Class K6 and Class Z6 of each Fund, with the exception of Fidelity Managed Retirement 2030 Fund, commenced sale of shares on August 1, 2019.
Effective after the close of business July 26, 2019, Class M and Class C of each Fund, with the exception of Fidelity Managed Retirement 2030 Fund, were consolidated into Class I. All prior fiscal period dollar and share amounts for Class M and Class C, which are presented in the Notes to Financial Statements, are for the period August 1, 2018 through July 26, 2019.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists each of the Underlying Funds as an investment of the Fund but does not include the underlying holdings of each Underlying Fund. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with the Underlying Funds. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Underlying Funds' expenses through the impact of these expenses on each Underlying Fund's NAV. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | |
| Fidelity Managed Retirement Income Fund | $8,599,305 | $276,651 | $(52,907) | $223,744 |
| Fidelity Managed Retirement 2005 Fund | 5,219,099 | 210,984 | (34,217) | 176,767 |
| Fidelity Managed Retirement 2010 Fund | 9,282,178 | 400,695 | (70,092) | 330,603 |
| Fidelity Managed Retirement 2015 Fund | 6,366,794 | 245,054 | (51,046) | 194,008 |
| Fidelity Managed Retirement 2020 Fund | 5,717,980 | 228,202 | (46,600) | 181,602 |
| Fidelity Managed Retirement 2025 Fund | 29,705,851 | 1,222,500 | (276,156) | 946,344 |
| Fidelity Managed Retirement 2030 Fund | 3,706,412 | 70,504 | (30,920) | 39,584 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Managed Retirement Income Fund | 3,361,287 | 992,848 |
| Fidelity Managed Retirement 2005 Fund | 972,124 | 986,984 |
| Fidelity Managed Retirement 2010 Fund | 1,573,531 | 1,539,563 |
| Fidelity Managed Retirement 2015 Fund | 2,660,569 | 819,799 |
| Fidelity Managed Retirement 2020 Fund | 2,284,800 | 1,104,287 |
| Fidelity Managed Retirement 2025 Fund | 12,920,904 | 4,176,703 |
| Fidelity Managed Retirement 2030 Fund | 4,139,975 | 433,334 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Funds with investment management related services. Under the management contract, each Class of each Fund pays a monthly management fee that is set at an annual rate by referring to each Fund's horizon date indicated by its name, such that the management fee rate applicable to each Class of each Fund is reduced as the fund approaches, and then passes, its horizon date. In addition, the investment adviser pays all ordinary operating expenses of each Fund, except distribution and service plan fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
For the reporting period, the total annual management fee rate for each Fund was as follows:
| Annual % of Class-Level Average Net Assets (Classes A, Retail and I) | Annual % of Class-Level Average Net Assets (Classes K, K6 and Z6) | |
| Fidelity Managed Retirement Income Fund | .45% | .35% |
| Fidelity Managed Retirement 2005 Fund | .45% | .35% |
| Fidelity Managed Retirement 2010 Fund | .46% | .36% |
| Fidelity Managed Retirement 2015 Fund | .47% | .37% |
| Fidelity Managed Retirement 2020 Fund | .47% | .37% |
| Fidelity Managed Retirement 2025 Fund | .48% | .38% |
| Fidelity Managed Retirement 2030 Fund | .48% | .38% |
Under the expense contract, the investment adviser pays class-level expenses for Classes K6 and Z6 of each Fund as necessary so that Classes K6 and Z6 total expenses do not exceed certain amounts of Classes K6 and Z6 average net assets on an annual basis with certain exceptions, as noted in the following table:
| Annual % of Class-Level Average Net Assets (Classes K6 and Z6) | |
| Fidelity Managed Retirement Income Fund | .25% |
| Fidelity Managed Retirement 2005 Fund | .25% |
| Fidelity Managed Retirement 2010 Fund | .26% |
| Fidelity Managed Retirement 2015 Fund | .27% |
| Fidelity Managed Retirement 2020 Fund | .27% |
| Fidelity Managed Retirement 2025 Fund | .28% |
| Fidelity Managed Retirement 2030 Fund | .28% |
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, each Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of each Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
| Fidelity Managed Retirement Income Fund | ||||
| Class A | -% | .25% | $289 | $– |
| Fidelity Managed Retirement 2005 Fund | ||||
| Class A | -% | .25% | $358 | $– |
| Fidelity Managed Retirement 2010 Fund | ||||
| Class A | -% | .25% | $257 | $– |
| Fidelity Managed Retirement 2015 Fund | ||||
| Class A | -% | .25% | $674 | $– |
| Fidelity Managed Retirement 2020 Fund | ||||
| Class A | -% | .25% | $19 | $18 |
| Fidelity Managed Retirement 2025 Fund | ||||
| Class A | -% | .25% | $865 | $– |
| Fidelity Managed Retirement 2030 Fund | ||||
| Class A | -% | .25% | $243 | $198 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling each Fund's Class A 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 redemptions. The deferred sales charge is 1.00% for certain purchases of each Fund's Class A shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC | |
| Fidelity Managed Retirement Income Fund | |
| Class A | $1,054 |
| Fidelity Managed Retirement 2005 Fund | |
| Class A | $– |
| Fidelity Managed Retirement 2010 Fund | |
| Class A | $6 |
| Fidelity Managed Retirement 2015 Fund | |
| Class A | $19 |
| Fidelity Managed Retirement 2020 Fund | |
| Class A | $354 |
| Fidelity Managed Retirement 2025 Fund | |
| Class A | $997 |
| Fidelity Managed Retirement 2030 Fund | |
| Class A | $13 |
Interfund Trades. The Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Funds for certain losses, which are included in Net Realized Gain (Loss) in each Fund's accompanying Statement of Operations, as follows:
| Fidelity Managed Retirement Income Fund | $6 |
| Fidelity Managed Retirement 2005 Fund | 4 |
| Fidelity Managed Retirement 2010 Fund | 3 |
| Fidelity Managed Retirement 2015 Fund | 3 |
| Fidelity Managed Retirement 2020 Fund | 9 |
| Fidelity Managed Retirement 2025 Fund | 16 |
| Fidelity Managed Retirement 2030 Fund | 1 |
6. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's or class' expenses. All of the applicable expense reductions are noted in the table below.
| Custodian credits | |
| Fidelity Managed Retirement 2025 Fund | $2 |
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2020 | Year ended July 31, 2019 | |
| Fidelity Managed Retirement Income Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $4,623 | $6,373 |
| Class M | – | 1,746 |
| Class C | – | 1,664 |
| Fidelity Managed Retirement Income | 127,534 | 264,089 |
| Class K | 1,945 | – |
| Class K6 | 1,998 | – |
| Class I | 1,337 | 2,509 |
| Class Z6 | 2,000 | – |
| Total | $139,437 | $276,381 |
| Fidelity Managed Retirement 2005 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $5,335 | $13,084 |
| Class M | – | 10,395 |
| Class C | – | 3,880 |
| Fidelity Managed Retirement 2005 | 93,095 | 262,560 |
| Class K | 2,080 | – |
| Class K6 | 2,125 | – |
| Class I | 5,738 | 1,056 |
| Class Z6 | 2,126 | – |
| Total | $110,499 | $290,975 |
| Fidelity Managed Retirement 2010 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $4,953 | $6,922 |
| Class M | – | 845 |
| Class C | – | 4,945 |
| Fidelity Managed Retirement 2010 | 227,012 | 454,437 |
| Class K | 2,622 | – |
| Class K6 | 2,667 | – |
| Class I | 2,683 | 1,833 |
| Class Z6 | 2,668 | – |
| Total | $242,605 | $468,982 |
| Fidelity Managed Retirement 2015 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $14,652 | $13,554 |
| Class M | – | 1,377 |
| Class C | – | 3,298 |
| Fidelity Managed Retirement 2015 | 118,218 | 209,247 |
| Class K | 2,847 | – |
| Class K6 | 2,889 | – |
| Class I | 7,973 | 10,805 |
| Class Z6 | 8,329 | – |
| Total | $154,908 | $238,281 |
| Fidelity Managed Retirement 2020 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $353 | $1,042 |
| Class M | – | 9,779 |
| Class C | – | 5,230 |
| Fidelity Managed Retirement 2020 | 135,547 | 189,573 |
| Class K | 2,903 | – |
| Class K6 | 2,945 | – |
| Class I | 5,105 | 1,743 |
| Class Z6 | 2,945 | – |
| Total | $149,798 | $207,367 |
| Fidelity Managed Retirement 2025 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $26,059 | $35,104 |
| Class M | – | 29,200 |
| Class C | – | 8,132 |
| Fidelity Managed Retirement 2025 | 840,466 | 1,057,637 |
| Class K | 3,669 | – |
| Class K6 | 20,289 | – |
| Class I | 18,259 | 1,812 |
| Class Z6 | 3,709 | – |
| Total | $912,451 | $1,131,885 |
| Fidelity Managed Retirement 2030 Fund(b) | ||
| Distributions to shareholders | ||
| Class A | $3,300 | $– |
| Fidelity Managed Retirement 2030 Fund | 27,070 | – |
| Class K | 2,755 | – |
| Class K6 | 3,120 | – |
| Class I | 2,688 | – |
| Class Z6 | 2,822 | – |
| Total | $41,755 | $– |
(a) Distributions for Class K, K6 and Z6 are for the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
(b) For the period August 16, 2019 (commencement of operations) to January 31, 2020.
8. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended January 31, 2020 | Year ended July 31, 2019 | Six months ended January 31, 2020 | Year ended July 31, 2019 | |
| Fidelity Managed Retirement Income Fund(a) | ||||
| Class A | ||||
| Shares sold | 2,290 | 478 | $133,846 | $26,868 |
| Reinvestment of distributions | 77 | 110 | 4,519 | 6,124 |
| Shares redeemed | (71) | (79) | (4,148) | (4,444) |
| Net increase (decrease) | 2,296 | 509 | $134,217 | $28,548 |
| Class M | ||||
| Reinvestment of distributions | – | 31 | – | 1,746 |
| Shares redeemed | – | (983) | – | (56,375) |
| Net increase (decrease) | – | (952) | $– | $(54,629) |
| Class C | ||||
| Shares sold | – | 178 | $– | $10,000 |
| Reinvestment of distributions | – | 30 | – | 1,664 |
| Shares redeemed | – | (1,096) | – | (61,965) |
| Net increase (decrease) | – | (888) | $– | $(50,301) |
| Fidelity Managed Retirement Income | ||||
| Shares sold | 40,037 | 15,319 | $2,346,956 | $875,448 |
| Reinvestment of distributions | 1,680 | 3,593 | 98,034 | 200,150 |
| Shares redeemed | (12,738) | (30,990) | (745,205) | (1,772,969) |
| Net increase (decrease) | 28,979 | (12,078) | $1,699,785 | $(697,371) |
| Class K | ||||
| Shares sold | 1,730 | – | $100,000 | $– |
| Reinvestment of distributions | 33 | – | 1,945 | – |
| Net increase (decrease) | 1,763 | – | $101,945 | $– |
| Class K6 | ||||
| Shares sold | 5,947 | – | $348,392 | $– |
| Reinvestment of distributions | 34 | – | 1,998 | – |
| Net increase (decrease) | 5,981 | – | $350,390 | $– |
| Class I | ||||
| Shares sold | – | 766 | $– | $44,238 |
| Reinvestment of distributions | 23 | 45 | 1,337 | 2,509 |
| Shares redeemed | (465) | (221) | (26,947) | (12,299) |
| Net increase (decrease) | (442) | 590 | $(25,610) | $34,448 |
| Class Z6 | ||||
| Shares sold | 1,730 | – | $100,000 | $– |
| Reinvestment of distributions | 34 | – | 2,000 | – |
| Net increase (decrease) | 1,764 | – | $102,000 | $– |
| Fidelity Managed Retirement 2005 Fund(a) | ||||
| Class A | ||||
| Reinvestment of distributions | 81 | 213 | 4,799 | 12,071 |
| Shares redeemed | (184) | (126) | (10,959) | (7,226) |
| Net increase (decrease) | (103) | 87 | $(6,160) | $4,845 |
| Class M | ||||
| Reinvestment of distributions | – | 184 | – | 10,395 |
| Shares redeemed | – | (4,305) | – | (251,912) |
| Net increase (decrease) | – | (4,121) | $– | $(241,517) |
| Class C | ||||
| Shares sold | – | 175 | $– | $10,000 |
| Reinvestment of distributions | – | 69 | – | 3,880 |
| Shares redeemed | – | (1,925) | – | (111,688) |
| Net increase (decrease) | – | (1,681) | $– | $(97,808) |
| Fidelity Managed Retirement 2005 | ||||
| Shares sold | 3,346 | 1,621 | $197,683 | $95,000 |
| Reinvestment of distributions | 1,299 | 3,900 | 76,944 | 220,944 |
| Shares redeemed | (9,056) | (23,027) | (537,923) | (1,316,016) |
| Net increase (decrease) | (4,411) | (17,506) | $(263,296) | $(1,000,072) |
| Class K | ||||
| Shares sold | 1,703 | – | $100,000 | $– |
| Reinvestment of distributions | 35 | – | 2,080 | – |
| Net increase (decrease) | 1,738 | – | $102,080 | $– |
| Class K6 | ||||
| Shares sold | 1,703 | – | $100,000 | $– |
| Reinvestment of distributions | 36 | – | 2,125 | – |
| Net increase (decrease) | 1,739 | – | $102,125 | $– |
| Class I | ||||
| Shares sold | 18 | 5,331 | $1,001 | $312,822 |
| Reinvestment of distributions | 90 | 18 | 5,350 | 1,056 |
| Shares redeemed | (993) | – | (58,664) | – |
| Net increase (decrease) | (885) | 5,349 | $(52,313) | $313,878 |
| Class Z6 | ||||
| Shares sold | 1,704 | – | $100,000 | $– |
| Reinvestment of distributions | 36 | – | 2,126 | – |
| Net increase (decrease) | 1,740 | – | $102,126 | $– |
| Fidelity Managed Retirement 2010 Fund(a) | ||||
| Class A | ||||
| Shares sold | 43 | 1,165 | $2,451 | $63,933 |
| Reinvestment of distributions | 87 | 128 | 4,953 | 6,922 |
| Shares redeemed | (22) | (48) | (1,240) | (2,560) |
| Net increase (decrease) | 108 | 1,245 | $6,164 | $68,295 |
| Class M | ||||
| Reinvestment of distributions | – | 16 | – | 845 |
| Shares redeemed | – | (329) | – | (18,577) |
| Net increase (decrease) | – | (313) | $– | $(17,732) |
| Class C | ||||
| Reinvestment of distributions | – | 92 | – | 4,945 |
| Shares redeemed | – | (2,175) | – | (119,990) |
| Net increase (decrease) | – | (2,083) | $– | $(115,045) |
| Fidelity Managed Retirement 2010 | ||||
| Shares sold | 7,030 | 16,436 | $401,141 | $912,020 |
| Reinvestment of distributions | 3,259 | 6,730 | 185,304 | 365,530 |
| Shares redeemed | (16,761) | (21,302) | (957,996) | (1,165,906) |
| Net increase (decrease) | (6,472) | 1,864 | $(371,551) | $111,644 |
| Class K | ||||
| Shares sold | 1,773 | – | $100,000 | $– |
| Reinvestment of distributions | 46 | – | 2,622 | – |
| Net increase (decrease) | 1,819 | – | $102,622 | $– |
| Class K6 | ||||
| Shares sold | 2,644 | – | $150,000 | $– |
| Reinvestment of distributions | 47 | – | 2,667 | – |
| Net increase (decrease) | 2,691 | – | $152,667 | $– |
| Class I | ||||
| Shares sold | 2 | 1,309 | $77 | $73,984 |
| Reinvestment of distributions | 47 | 34 | 2,682 | 1,833 |
| Shares redeemed | (96) | – | (5,396) | – |
| Net increase (decrease) | (47) | 1,343 | $(2,637) | $75,817 |
| Class Z6 | ||||
| Shares sold | 2,881 | – | $163,800 | $– |
| Reinvestment of distributions | 47 | – | 2,668 | – |
| Shares redeemed | (72) | – | (4,160) | – |
| Net increase (decrease) | 2,856 | – | $162,308 | $– |
| Fidelity Managed Retirement 2015 Fund(a) | ||||
| Class A | ||||
| Shares sold | 14,899 | 3 | $791,126 | $175 |
| Reinvestment of distributions | 272 | 265 | 14,651 | 13,554 |
| Shares redeemed | (5,725) | (221) | (302,845) | (11,309) |
| Net increase (decrease) | 9,446 | 47 | $502,932 | $2,420 |
| Class M | ||||
| Reinvestment of distributions | – | 27 | – | 1,377 |
| Shares redeemed | – | (503) | – | (26,893) |
| Net increase (decrease) | – | (476) | $– | $(25,516) |
| Class C | ||||
| Shares sold | – | 195 | $– | $10,000 |
| Reinvestment of distributions | – | 65 | – | 3,298 |
| Shares redeemed | – | (1,516) | – | (80,075) |
| Net increase (decrease) | – | (1,256) | $– | $(66,777) |
| Fidelity Managed Retirement 2015 | ||||
| Shares sold | 16,080 | 20,102 | $870,804 | $1,052,586 |
| Reinvestment of distributions | 1,885 | 3,554 | 101,015 | 181,789 |
| Shares redeemed | (5,147) | (15,511) | (276,664) | (807,368) |
| Net increase (decrease) | 12,818 | 8,145 | $695,155 | $427,007 |
| Class K | ||||
| Shares sold | 1,884 | – | $100,000 | $– |
| Reinvestment of distributions | 53 | – | 2,847 | – |
| Net increase (decrease) | 1,937 | – | $102,847 | $– |
| Class K6 | ||||
| Shares sold | 1,883 | – | $100,000 | $– |
| Reinvestment of distributions | 54 | – | 2,889 | – |
| Net increase (decrease) | 1,937 | – | $102,889 | $– |
| Class I | ||||
| Shares sold | 938 | 1,815 | $49,440 | $96,764 |
| Reinvestment of distributions | 149 | 212 | 7,973 | 10,805 |
| Shares redeemed | (1,571) | (58) | (83,957) | (2,909) |
| Net increase (decrease) | (484) | 1,969 | $(26,544) | $104,660 |
| Class Z6 | ||||
| Shares sold | 8,483 | – | $456,007 | $– |
| Reinvestment of distributions | 154 | – | 8,329 | – |
| Net increase (decrease) | 8,637 | – | $464,336 | $– |
| Fidelity Managed Retirement 2020 Fund(a) | ||||
| Class A | ||||
| Shares sold | 850 | 37 | $44,925 | $1,804 |
| Reinvestment of distributions | 7 | 21 | 353 | 1,042 |
| Shares redeemed | (133) | (3) | (6,739) | (135) |
| Net increase (decrease) | 724 | 55 | $38,539 | $2,711 |
| Class M | ||||
| Reinvestment of distributions | – | 169 | – | 8,348 |
| Shares redeemed | – | (3,467) | – | (178,417) |
| Net increase (decrease) | – | (3,298) | $– | $(170,069) |
| Class C | ||||
| Reinvestment of distributions | – | 108 | – | 5,230 |
| Shares redeemed | – | (2,006) | – | (101,870) |
| Net increase (decrease) | – | (1,898) | $– | $(96,640) |
| Fidelity Managed Retirement 2020 | ||||
| Shares sold | 25,502 | 55,563 | $1,328,862 | $2,798,761 |
| Reinvestment of distributions | 2,202 | 3,094 | 114,881 | 152,765 |
| Shares redeemed | (9,857) | (34,614) | (514,856) | (1,727,788) |
| Net increase (decrease) | 17,847 | 24,043 | $928,887 | $1,223,738 |
| Class K | ||||
| Shares sold | 1,949 | – | $100,000 | $– |
| Reinvestment of distributions | 56 | – | 2,903 | – |
| Net increase (decrease) | 2,005 | – | $102,903 | $– |
| Class K6 | ||||
| Shares sold | 1,950 | – | $100,000 | $– |
| Reinvestment of distributions | 56 | – | 2,945 | – |
| Net increase (decrease) | 2,006 | – | $102,945 | $– |
| Class I | ||||
| Shares sold | 207 | 5,102 | $10,708 | $263,299 |
| Reinvestment of distributions | 95 | 35 | 4,941 | 1,743 |
| Shares redeemed | (2,388) | – | (121,755) | – |
| Net increase (decrease) | (2,086) | 5,137 | $(106,106) | $265,042 |
| Class Z6 | ||||
| Shares sold | 1,950 | – | $100,000 | $– |
| Reinvestment of distributions | 56 | – | 2,945 | – |
| Net increase (decrease) | 2,006 | – | $102,945 | $– |
| Fidelity Managed Retirement 2025 Fund(a) | ||||
| Class A | ||||
| Shares sold | 7,439 | – | $401,350 | $– |
| Reinvestment of distributions | 487 | 694 | 26,058 | 35,104 |
| Shares redeemed | (245) | (798) | (13,141) | (38,947) |
| Net increase (decrease) | 7,681 | (104) | $414,267 | $(3,843) |
| Class M | ||||
| Reinvestment of distributions | – | 503 | – | 25,589 |
| Shares redeemed | – | (9,710) | – | (515,996) |
| Net increase (decrease) | – | (9,207) | $– | $(490,407) |
| Class C | ||||
| Reinvestment of distributions | – | 163 | – | 8,132 |
| Shares redeemed | – | (2,870) | – | (150,505) |
| Net increase (decrease) | – | (2,707) | $– | $(142,373) |
| Fidelity Managed Retirement 2025 | ||||
| Shares sold | 173,669 | 74,256 | $9,268,084 | $3,884,708 |
| Reinvestment of distributions | 13,679 | 18,018 | 730,308 | 915,888 |
| Shares redeemed | (34,087) | (24,076) | (1,819,467) | (1,250,835) |
| Net increase (decrease) | 153,261 | 68,198 | $8,178,925 | $3,549,761 |
| Class K | ||||
| Shares sold | 1,892 | – | $100,000 | $– |
| Reinvestment of distributions | 69 | – | 3,669 | – |
| Net increase (decrease) | 1,961 | – | $103,669 | $– |
| Class K6 | ||||
| Shares sold | 24,590 | – | $1,334,401 | $– |
| Reinvestment of distributions | 376 | – | 20,289 | – |
| Shares redeemed | (19,486) | – | (1,068,818) | – |
| Net increase (decrease) | 5,480 | – | $285,872 | $– |
| Class I | ||||
| Shares sold | 187 | 12,228 | $9,870 | $651,861 |
| Reinvestment of distributions | 322 | 35 | 17,179 | 1,812 |
| Shares redeemed | (5,716) | – | (307,722) | – |
| Net increase (decrease) | (5,207) | 12,263 | $(280,673) | $653,673 |
| Class Z6 | ||||
| Shares sold | 1,891 | – | $100,000 | $– |
| Reinvestment of distributions | 69 | – | 3,709 | – |
| Net increase (decrease) | 1,960 | – | $103,709 | $– |
| Fidelity Managed Retirement 2030 Fund(b) | ||||
| Class A | ||||
| Shares sold | 22,114 | – | $221,330 | $– |
| Reinvestment of distributions | 313 | – | 3,300 | – |
| Net increase (decrease) | 22,427 | – | $224,630 | $– |
| Fidelity Managed Retirement 2030 | ||||
| Shares sold | 294,037 | – | $3,067,512 | $– |
| Reinvestment of distributions | 2,564 | – | 27,066 | – |
| Shares redeemed | (32,848) | – | (344,122) | – |
| Net increase (decrease) | 263,753 | – | $2,750,456 | $– |
| Class K | ||||
| Shares sold | 16,666 | – | $166,660 | $– |
| Reinvestment of distributions | 262 | – | 2,755 | – |
| Net increase (decrease) | 16,928 | – | $169,415 | $– |
| Class K6 | ||||
| Shares sold | 18,661 | – | $186,852 | $– |
| Reinvestment of distributions | 296 | – | 3,120 | – |
| Net increase (decrease) | 18,957 | – | $189,972 | $– |
| Class I | ||||
| Shares sold | 16,667 | – | $166,670 | $– |
| Reinvestment of distributions | 255 | – | 2,688 | – |
| Net increase (decrease) | 16,922 | – | $169,358 | $– |
| Class Z6 | ||||
| Shares sold | 16,666 | – | $166,660 | $– |
| Reinvestment of distributions | 268 | – | 2,822 | – |
| Net increase (decrease) | 16,934 | – | $169,482 | $– |
(a) Share transactions for Class K, K6 and Z6 are for the period August 1, 2019 (commencement of sale of shares) to January 31, 2020.
(b) For the period August 16, 2019 (commencement of operations) to January 31, 2020.
9. 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.
At the end of the period the investment adviser or its affiliates were owners of record of more than 10% of the outstanding shares of the following Funds:
| Affiliated % | |
| Fidelity Managed Retirement 2030 Fund | 19% |
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2019 to January 31, 2020) for each fund, with the exception of Fidelity Managed Retirement 2030 Fund and for the period (August 16, 2019 to January 31, 2020) for Fidelity Managed Retirement 2030 Fund. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2019 to January 31, 2020).
Actual Expenses
The first line of the accompanying table for each Class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a Class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each Class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio-A | Beginning Account Value | Ending Account Value January 31, 2020 | Expenses Paid During Period | |
| Fidelity Managed Retirement Income Fund | ||||
| Class A | .70% | |||
| Actual | $1,000.00 | $1,036.20 | $3.58-B | |
| Hypothetical-C | $1,000.00 | $1,021.62 | $3.56-D | |
| Fidelity Managed Retirement Income | .45% | |||
| Actual | $1,000.00 | $1,037.30 | $2.30-B | |
| Hypothetical-C | $1,000.00 | $1,022.87 | $2.29-D | |
| Class K | .35% | |||
| Actual | $1,000.00 | $1,036.60 | $1.79-B | |
| Hypothetical-C | $1,000.00 | $1,023.38 | $1.78-D | |
| Class K6 | .25% | |||
| Actual | $1,000.00 | $1,037.10 | $1.28-B | |
| Hypothetical-C | $1,000.00 | $1,023.88 | $1.27-D | |
| Class I | .45% | |||
| Actual | $1,000.00 | $1,037.50 | $2.30-B | |
| Hypothetical-C | $1,000.00 | $1,022.87 | $2.29-D | |
| Class Z6 | .25% | |||
| Actual | $1,000.00 | $1,036.90 | $1.28-B | |
| Hypothetical-C | $1,000.00 | $1,023.88 | $1.27-D | |
| Fidelity Managed Retirement 2005 Fund | ||||
| Class A | .70% | |||
| Actual | $1,000.00 | $1,036.30 | $3.58-B | |
| Hypothetical-C | $1,000.00 | $1,021.62 | $3.56-D | |
| Fidelity Managed Retirement 2005 | .45% | |||
| Actual | $1,000.00 | $1,037.40 | $2.30-B | |
| Hypothetical-C | $1,000.00 | $1,022.87 | $2.29-D | |
| Class K | .35% | |||
| Actual | $1,000.00 | $1,036.80 | $1.79-B | |
| Hypothetical-C | $1,000.00 | $1,023.38 | $1.78-D | |
| Class K6 | .25% | |||
| Actual | $1,000.00 | $1,037.20 | $1.28-B | |
| Hypothetical-C | $1,000.00 | $1,023.88 | $1.27-D | |
| Class I | .45% | |||
| Actual | $1,000.00 | $1,037.60 | $2.30-B | |
| Hypothetical-C | $1,000.00 | $1,022.87 | $2.29-D | |
| Class Z6 | .25% | |||
| Actual | $1,000.00 | $1,037.30 | $1.28-B | |
| Hypothetical-C | $1,000.00 | $1,023.88 | $1.27-D | |
| Fidelity Managed Retirement 2010 Fund | ||||
| Class A | .71% | |||
| Actual | $1,000.00 | $1,040.70 | $3.64-B | |
| Hypothetical-C | $1,000.00 | $1,021.57 | $3.61-D | |
| Fidelity Managed Retirement 2010 | .46% | |||
| Actual | $1,000.00 | $1,042.00 | $2.36-B | |
| Hypothetical-C | $1,000.00 | $1,022.82 | $2.34-D | |
| Class K | .36% | |||
| Actual | $1,000.00 | $1,042.00 | $1.85-B | |
| Hypothetical-C | $1,000.00 | $1,023.33 | $1.83-D | |
| Class K6 | .26% | |||
| Actual | $1,000.00 | $1,042.70 | $1.34-B | |
| Hypothetical-C | $1,000.00 | $1,023.83 | $1.32-D | |
| Class I | .46% | |||
| Actual | $1,000.00 | $1,042.10 | $2.36-B | |
| Hypothetical-C | $1,000.00 | $1,022.82 | $2.34-D | |
| Class Z6 | .26% | |||
| Actual | $1,000.00 | $1,042.70 | $1.34-B | |
| Hypothetical-C | $1,000.00 | $1,023.83 | $1.32-D | |
| Fidelity Managed Retirement 2015 Fund | ||||
| Class A | .72% | |||
| Actual | $1,000.00 | $1,045.10 | $3.70-B | |
| Hypothetical-C | $1,000.00 | $1,021.52 | $3.66-D | |
| Fidelity Managed Retirement 2015 | .47% | |||
| Actual | $1,000.00 | $1,046.60 | $2.42-B | |
| Hypothetical-C | $1,000.00 | $1,022.77 | $2.39-D | |
| Class K | .37% | |||
| Actual | $1,000.00 | $1,047.60 | $1.90-B | |
| Hypothetical-C | $1,000.00 | $1,023.28 | $1.88-D | |
| Class K6 | .27% | |||
| Actual | $1,000.00 | $1,048.20 | $1.39-B | |
| Hypothetical-C | $1,000.00 | $1,023.78 | $1.37-D | |
| Class I | .47% | |||
| Actual | $1,000.00 | $1,046.50 | $2.42-B | |
| Hypothetical-C | $1,000.00 | $1,022.77 | $2.39-D | |
| Class Z6 | .27% | |||
| Actual | $1,000.00 | $1,048.10 | $1.39-B | |
| Hypothetical-C | $1,000.00 | $1,023.78 | $1.37-D | |
| Fidelity Managed Retirement 2020 Fund | ||||
| Class A | .72% | |||
| Actual | $1,000.00 | $1,049.40 | $3.71-B | |
| Hypothetical-C | $1,000.00 | $1,021.52 | $3.66-D | |
| Fidelity Managed Retirement 2020 | .47% | |||
| Actual | $1,000.00 | $1,050.70 | $2.42-B | |
| Hypothetical-C | $1,000.00 | $1,022.77 | $2.39-D | |
| Class K | .37% | |||
| Actual | $1,000.00 | $1,052.80 | $1.91-B | |
| Hypothetical-C | $1,000.00 | $1,023.28 | $1.88-D | |
| Class K6 | .27% | |||
| Actual | $1,000.00 | $1,053.20 | $1.39-B | |
| Hypothetical-C | $1,000.00 | $1,023.78 | $1.37-D | |
| Class I | .47% | |||
| Actual | $1,000.00 | $1,050.70 | $2.42-B | |
| Hypothetical-C | $1,000.00 | $1,022.77 | $2.39-D | |
| Class Z6 | .27% | |||
| Actual | $1,000.00 | $1,053.20 | $1.39-B | |
| Hypothetical-C | $1,000.00 | $1,023.78 | $1.37-D | |
| Fidelity Managed Retirement 2025 Fund | ||||
| Class A | .73% | |||
| Actual | $1,000.00 | $1,052.90 | $3.77-B | |
| Hypothetical-C | $1,000.00 | $1,021.47 | $3.71-D | |
| Fidelity Managed Retirement 2025 | .48% | |||
| Actual | $1,000.00 | $1,054.20 | $2.48-B | |
| Hypothetical-C | $1,000.00 | $1,022.72 | $2.44-D | |
| Class K | .38% | |||
| Actual | $1,000.00 | $1,056.90 | $1.96-B | |
| Hypothetical-C | $1,000.00 | $1,023.23 | $1.93-D | |
| Class K6 | .28% | |||
| Actual | $1,000.00 | $1,057.30 | $1.45-B | |
| Hypothetical-C | $1,000.00 | $1,023.73 | $1.42-D | |
| Class I | .48% | |||
| Actual | $1,000.00 | $1,054.20 | $2.48-B | |
| Hypothetical-C | $1,000.00 | $1,022.72 | $2.44-D | |
| Class Z6 | .28% | |||
| Actual | $1,000.00 | $1,057.50 | $1.45-B | |
| Hypothetical-C | $1,000.00 | $1,023.73 | $1.42-D | |
| Fidelity Managed Retirement 2030 Fund | ||||
| Class A | .73% | |||
| Actual | $1,000.00 | $1,067.30 | $3.48-E | |
| Hypothetical-C | $1,000.00 | $1,021.47 | $3.71-D | |
| Fidelity Managed Retirement 2030 | .48% | |||
| Actual | $1,000.00 | $1,069.00 | $2.29-E | |
| Hypothetical-C | $1,000.00 | $1,022.72 | $2.44-D | |
| Class K | .38% | |||
| Actual | $1,000.00 | $1,069.50 | $1.82-E | |
| Hypothetical-C | $1,000.00 | $1,023.23 | $1.93-D | |
| Class K6 | .28% | |||
| Actual | $1,000.00 | $1,070.00 | $1.34-E | |
| Hypothetical-C | $1,000.00 | $1,023.73 | $1.42-D | |
| Class I | .48% | |||
| Actual | $1,000.00 | $1,069.10 | $2.29-E | |
| Hypothetical-C | $1,000.00 | $1,022.72 | $2.44-D | |
| Class Z6 | .28% | |||
| Actual | $1,000.00 | $1,070.00 | $1.34-E | |
| Hypothetical-C | $1,000.00 | $1,023.73 | $1.42-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which each Fund invests are not included in each Fund's annualized expense ratio.
C 5% return per year before expenses
D Hypothetical expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
E Actual expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 169/366 (to reflect the period August 16, 2019 to January 31, 2020). The fees and expenses of the underlying Fidelity Funds in which each Fund invests are not included in each Fund's annualized expense ratio.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Managed Retirement 2030 Fund
On May 16, 2019, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract (the Advisory Contract) with FMR Co., Inc. (FMRC), an affiliate of Fidelity Management & Research Company (FMR), for Fidelity Managed Retirement 2030 Fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of FMRC, and also considered the fund's investment objective, strategies, and related investment philosophy. The Board considered the structure of the investment personnel 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 Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also 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. Further, the Board considered 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 Fidelity's risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by Fidelity under the Advisory Contract and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors.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 and 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 Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contract. The Board also considered FMRC's strength in managing asset allocation funds generally, which the Board is familiar with through its supervision of other target date funds.Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contract should benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's proposed class-level management fee rate, which will cover most expenses of the top-level fund and underlying funds. In reviewing the Advisory Contract, the Board also considered the projected total expense ratio of each class of the fund. The Board noted that the fund's proposed management fee rate ranks above the median of its competitor funds because the majority of such competitor funds do not have top-level management fees. The Board also considered that the projected total expense ratio of each class of the fund would rank below the competitive median when including expenses of the underlying funds. The Board noted that that the projected total expense ratio for each class of the fund (except Class K6 and Z6) would rank above the competitive median when excluding expenses of the underlying funds. The Board considered that the proposed contractual arrangements for the fund oblige FMRC to pay all "class-level" expenses of Class K6 and Class Z6 of the fund to the extent necessary to limit total operating expenses, with certain exceptions, to an amount specified in the applicable expense contract. These contractual arrangements may not be amended to increase the fees or expenses payable by Class K6 and Class Z6 of the fund except by a vote of a majority of the Board.Based on its review, the Board concluded that the management fee and the projected total expense ratio of each class of the fund's management fee and projected total expense ratio were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contract. In connection with its future renewal of the Advisory Contract, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the underlying funds in which the fund invests and servicing the fund's shareholders.Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors that pay top-level management fees, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Managed Retirement 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) with FMR Co., Inc. (FMRC), an affiliate of Fidelity Management & Research Company (FMR), 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 four standing committees (Committees) — Operations, Audit, Fair Valuation, 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 considers, among other matters, information 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its September 2019 meeting, the Board unanimously determined to renew each fund's Advisory Contract. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and are realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered that, effective June 1, 2017, each fund had changed its investment objective and implemented a new fee structure whereby it pays an all-inclusive management fee that covers all operating expenses of the fund, subject to certain exceptions, and varies by class (unified fee) and the underlying Fidelity funds in which the fund invests (Series Funds) no longer pay expenses, with certain limited exceptions.In considering whether to renew the Advisory Contract for each 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 Contract was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was 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 of each fund have a broad range of investment choices available to them, including a wide choice among 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, which is part of the Fidelity family of funds.Approval of Amended and Restated Advisory Contracts. At its September 2019 meeting, the Board also unanimously determined to approve amended and restated management contracts (Amended and Restated Contracts) in connection with an upcoming consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, FMRC expects to merge with and into FMR and, after the merger, FMR expects to redomicile as a Delaware limited liability company. The Board noted that the Amended and Restated Contracts will reflect the replacement of FMRC with FMR and will take effect upon the completion of the merger. The Board noted that references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile. The Board also approved amendments that clarify that each fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees paid by the funds.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the funds, including the backgrounds of investment personnel of FMRC, 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 with responsibility for the Series Funds. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also 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. Further, the Board considered 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 Fidelity's risk management, compliance, and technology and operations capabilities and resources, which are integral parts 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 Fidelity under the Advisory Contract and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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 and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, 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 Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain target date funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance (for each fund except Managed Retirement 2030 Fund). 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 and its performance history. The Board considered that, effective June 1, 2017, each fund's investment objective is intended to support a payment strategy designed to be administered through a complementary systematic withdrawal plan that enables shareholders to receive regular payments from the fund.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the investment adviser about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund for different time periods, measured against one or more appropriate securities market indices, including a customized blended index that reflects the respective weights of the fund's asset classes (each a benchmark index) and a peer group of funds with similar objectives (peer group), if any. In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the investment adviser the reasons for such underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses, including acquired fund fees and expenses, but after transaction costs, if any) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses, including acquired fund fees and expenses, if any) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; the extent to which particular underlying funds affected performance; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for each fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods.Investment Performance (for Managed Retirement 2030 Fund). 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. As the fund recently commenced operations, the Board did not believe that it was appropriate to assign significant weight to its limited investment performance.Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.Competitiveness of Management Fee and Total Expense Ratio (for each fund except Managed Retirement 2030 Fund). The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' competitive analysis of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.With respect to Managed Retirement 2030 Fund, the Board considered that it received and reviewed information regarding the fund's management fee rate and total expense ratio compared to "mapped groups" of competitive funds and classes in connection with the approval of the management contract in May 2019. The Board noted that, because the fund did not commence operations until August 2019, no new competitive management fee and expense information was considered by the Board.Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in basis points (BP) 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s and the number of funds in the Total Mapped Group are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the charts and was considered by the Board. The Board considered that the charts below reflect the funds' fee structure effective June 1, 2017, as if it was in effect for the entire year.Fidelity Managed Retirement 2005 Fund
Fidelity Managed Retirement 2010 Fund
Fidelity Managed Retirement 2015 Fund
Fidelity Managed Retirement 2020 Fund
Fidelity Managed Retirement 2025 Fund
Fidelity Managed Retirement Income Fund
MRI-SANN-0320
1.9881730.102
Fidelity® GNMA Fund
Semi-Annual Report
January 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Investment Summary (Unaudited)
Coupon Distribution as of January 31, 2020
| % of fund's investments | |
| 0.01 - 0.99% | 0.0 |
| 1 - 1.99% | 1.0 |
| 2 - 2.99% | 5.2 |
| 3 - 3.99% | 42.1 |
| 4 - 4.99% | 24.5 |
| 5 - 5.99% | 6.4 |
| 6 - 6.99% | 2.3 |
| 7 - 7.99% | 0.1 |
| 8% and above | 0.2 |
Coupon distribution shows the range of stated interest rates on the fund's investments, excluding short-term investments.
Asset Allocation (% of fund's net assets)
| As of January 31, 2020*,**,*** | ||
| Mortgage Securities | 76.3% | |
| CMOs and Other Mortgage Related Securities | 18.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.8% | |
* GNMA Securities - 95.1%
** Futures and Swaps - 7.6%
*** Written options - (8.3)%
Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| U.S. Government Agency - Mortgage Securities - 93.7% | |||
| Principal Amount (000s) | Value (000s) | ||
| Fannie Mae - 0.2% | |||
| 12 month U.S. LIBOR + 1.480% 4.221% 7/1/34 (a)(b) | 27 | 28 | |
| 12 month U.S. LIBOR + 1.490% 4.232% 1/1/35 (a)(b) | 105 | 109 | |
| 12 month U.S. LIBOR + 1.523% 4.66% 3/1/36 (a)(b) | 47 | 49 | |
| 12 month U.S. LIBOR + 1.610% 4.26% 3/1/33 (a)(b) | 71 | 74 | |
| 12 month U.S. LIBOR + 1.640% 4.157% 6/1/47 (a)(b) | 94 | 99 | |
| 12 month U.S. LIBOR + 1.650% 4.308% 11/1/36 (a)(b) | 106 | 111 | |
| 12 month U.S. LIBOR + 1.690% 4.364% 8/1/35 (a)(b) | 207 | 217 | |
| 12 month U.S. LIBOR + 1.710% 4.016% 5/1/35 (a)(b) | 186 | 194 | |
| 12 month U.S. LIBOR + 1.890% 4.763% 8/1/35 (a)(b) | 97 | 102 | |
| 6 month U.S. LIBOR + 1.510% 3.618% 2/1/33 (a)(b) | 20 | 21 | |
| 6 month U.S. LIBOR + 1.535% 3.851% 12/1/34 (a)(b) | 28 | 29 | |
| 6 month U.S. LIBOR + 1.535% 3.94% 3/1/35 (a)(b) | 27 | 28 | |
| 6 month U.S. LIBOR + 1.550% 3.808% 10/1/33 (a)(b) | 12 | 12 | |
| 6 month U.S. LIBOR + 1.550% 3.855% 9/1/33 (a)(b) | 259 | 268 | |
| 6 month U.S. LIBOR + 1.560% 3.965% 7/1/35 (a)(b) | 16 | 16 | |
| U.S. TREASURY 1 YEAR INDEX + 2.200% 4.462% 7/1/36 (a)(b) | 69 | 72 | |
| U.S. TREASURY 1 YEAR INDEX + 2.290% 4.264% 10/1/33 (a)(b) | 33 | 35 | |
| U.S. TREASURY 1 YEAR INDEX + 2.440% 4.664% 7/1/34 (a)(b) | 426 | 448 | |
| U.S. TREASURY 1 YEAR INDEX + 2.460% 4.862% 9/1/34 (a)(b) | 247 | 259 | |
| 3% 2/1/33 to 3/1/33 | 5,566 | 5,761 | |
| 3.525% 7/1/42 | 98 | 104 | |
| 8.5% 12/1/27 | 28 | 32 | |
| 9.5% 9/1/30 | 10 | 12 | |
| 8,080 | |||
| Freddie Mac - 0.1% | |||
| 12 month U.S. LIBOR + 1.510% 3.39% 11/1/35 (a)(b) | 59 | 61 | |
| 12 month U.S. LIBOR + 1.600% 4.35% 7/1/35 (a)(b) | 50 | 52 | |
| 12 month U.S. LIBOR + 1.860% 4.24% 8/1/34 (a)(b) | 86 | 90 | |
| 12 month U.S. LIBOR + 1.864% 4.739% 4/1/36 (a)(b) | 59 | 62 | |
| 12 month U.S. LIBOR + 1.961% 4.821% 6/1/33 (a)(b) | 359 | 376 | |
| 12 month U.S. LIBOR + 2.060% 4.723% 3/1/33 (a)(b) | 2 | 3 | |
| 6 month U.S. LIBOR + 1.600% 3.58% 12/1/35 (a)(b) | 15 | 16 | |
| 6 month U.S. LIBOR + 1.840% 4.077% 10/1/36 (a)(b) | 240 | 251 | |
| 6 month U.S. LIBOR + 1.860% 4.061% 10/1/35 (a)(b) | 136 | 142 | |
| U.S. TREASURY 1 YEAR INDEX + 2.030% 4.562% 6/1/33 (a)(b) | 222 | 233 | |
| U.S. TREASURY 1 YEAR INDEX + 2.230% 4.058% 12/1/35 (a)(b) | 1,030 | 1,089 | |
| U.S. TREASURY 1 YEAR INDEX + 2.286% 4.828% 6/1/33 (a)(b) | 386 | 404 | |
| U.S. TREASURY 1 YEAR INDEX + 2.410% 4.564% 3/1/35 (a)(b) | 760 | 797 | |
| 3% 4/1/34 | 1,109 | 1,151 | |
| 4,727 | |||
| Ginnie Mae - 93.4% | |||
| 3% 5/15/27 to 1/20/50 | 419,258 | 434,343 | |
| 3.7% 10/15/42 | 8,529 | 9,039 | |
| 4% 5/15/44 | 2,312 | 2,493 | |
| 4.5% 7/15/33 to 6/20/48 | 216,608 | 234,290 | |
| 4.75% 7/15/40 | 880 | 967 | |
| 4.875% 9/15/39 to 12/15/39 | 5,817 | 6,399 | |
| 5.09% 4/15/36 to 11/15/36 | 5,337 | 5,937 | |
| 5.15% 2/15/36 to 4/15/36 | 474 | 528 | |
| 5.2% 7/15/36 | 61 | 68 | |
| 5.25% 4/15/36 to 4/15/37 | 461 | 513 | |
| 5.39% 5/15/36 | 179 | 201 | |
| 5.45% 2/15/37 | 708 | 799 | |
| 5.5% 7/20/24 to 2/20/42 | 7,755 | 8,695 | |
| 5.6% 11/15/36 | 262 | 297 | |
| 5.65% 4/15/37 | 100 | 114 | |
| 5.85% 1/15/37 | 109 | 125 | |
| 6.45% 1/15/32 to 8/15/32 | 207 | 235 | |
| 6.5% 7/15/23 to 1/15/39 | 6,649 | 7,632 | |
| 7% to 7% 4/15/22 to 9/20/34 | 13,030 | 14,849 | |
| 7.25% 9/15/27 | 34 | 38 | |
| 7.5% to 7.5% 9/15/21 to 9/20/32 | 5,036 | 5,703 | |
| 8% 12/15/21 to 9/15/31 | 1,350 | 1,522 | |
| 8.5% 9/15/21 to 2/15/31 | 141 | 166 | |
| 9% to 9% 11/15/20 to 5/15/30 | 35 | 37 | |
| 2.5% 3/15/28 to 1/20/50 | 367,863 | 374,235 | |
| 2.5% 2/1/50 (c) | 2,600 | 2,642 | |
| 2.5% 2/1/50 (c) | 5,600 | 5,690 | |
| 2.5% 2/1/50 (c) | 2,600 | 2,642 | |
| 3% 2/1/50 (c) | 205,850 | 211,607 | |
| 3% 2/1/50 (c) | 111,150 | 114,259 | |
| 3% 2/1/50 (c) | 900 | 925 | |
| 3% 2/1/50 (c) | 36,950 | 37,983 | |
| 3% 2/1/50 (c) | 1,600 | 1,645 | |
| 3% 3/1/50 (c) | 166,500 | 170,955 | |
| 3% 3/1/50 (c) | 71,000 | 72,900 | |
| 3% 3/1/50 (c) | 38,450 | 39,479 | |
| 3% 3/1/50 (c) | 37,850 | 38,863 | |
| 3.25% 2/20/41 to 7/20/46 | 2,034 | 2,093 | |
| 3.5% to 3.5% 9/15/26 to 1/20/50 (d)(e)(f) | 1,083,241 | 1,141,846 | |
| 3.74% 7/20/42 to 8/20/42 | 877 | 924 | |
| 3.75% 10/20/41 to 7/20/47 | 26,287 | 27,530 | |
| 4% 2/20/33 to 3/20/49 | 817,781 | 867,394 | |
| 4.25% 1/20/46 | 656 | 695 | |
| 5% 6/20/29 to 7/20/48 | 103,942 | 113,935 | |
| 5.35% 4/20/29 to 12/20/30 | 7,880 | 8,548 | |
| 5.75% 9/20/39 to 9/20/40 | 11,575 | 12,897 | |
| 6% to 6% 12/15/23 to 3/15/39 | 11,399 | 12,891 | |
| 7.395% 6/20/25 to 2/20/27 | 308 | 339 | |
| 3,997,907 | |||
| TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES | |||
| (Cost $3,945,717) | 4,010,714 | ||
| Collateralized Mortgage Obligations - 18.9% | |||
| Private Sponsor - 18.8% | |||
| Fannie Mae: | |||
| planned amortization class Series G93-32 Class PJ, 6.75% 9/25/23 | $860 | $914 | |
| Series 2016-3 Class IP, 4% 2/25/46 (g) | 43,702 | 6,712 | |
| Series 2017-74 Class SH, 6.200% - 1 month U.S. LIBOR 4.5391% 10/25/47 (a)(g)(h) | 43,434 | 7,831 | |
| Freddie Mac: | |||
| planned amortization class: | |||
| Series 2220 Class PD, 8% 3/15/30 | 496 | 585 | |
| Series 40 Class K, 6.5% 8/17/24 | 89 | 96 | |
| sequential payer Series 2204 Class N, 7.5% 12/20/29 | 958 | 1,120 | |
| Series 2018-4763 Class SC, 6.200% - 1 month U.S. LIBOR 4.5238% 8/15/47 (a)(g)(h) | 27,567 | 3,864 | |
| Ginnie Mae guaranteed REMIC pass-thru certificates: | |||
| floater: | |||
| Series 2007-37 Class TS, 6.690% - 1 month U.S. LIBOR 5.0204% 6/16/37 (a)(g)(h) | 1,241 | 273 | |
| Series 2008-51 Class FE, 1 month U.S. LIBOR + 0.750% 2.4196% 6/16/38 (a)(b) | 284 | 288 | |
| Series 2008-57 Class AF, 1 month U.S. LIBOR + 0.580% 2.2378% 7/20/38 (a)(b) | 825 | 833 | |
| Series 2010-130 Class KF, 1 month U.S. LIBOR + 0.650% 2.3196% 10/16/40 (a)(b) | 1,740 | 1,760 | |
| Series 2010-H03 Class FA, 1 month U.S. LIBOR + 0.550% 2.3548% 3/20/60 (a)(b)(i) | 16,624 | 16,637 | |
| Series 2010-H17 Class FA, 1 month U.S. LIBOR + 0.330% 2.1348% 7/20/60 (a)(b)(i) | 10,652 | 10,600 | |
| Series 2010-H18 Class AF, 1 month U.S. LIBOR + 0.300% 1.9938% 9/20/60 (a)(b)(i) | 12,622 | 12,555 | |
| Series 2010-H19 Class FG, 1 month U.S. LIBOR + 0.300% 1.9938% 8/20/60 (a)(b)(i) | 13,212 | 13,143 | |
| Series 2010-H27 Series FA, 1 month U.S. LIBOR + 0.380% 2.0738% 12/20/60 (a)(b)(i) | 4,470 | 4,454 | |
| Series 2011-H05 Class FA, 1 month U.S. LIBOR + 0.500% 2.1938% 12/20/60 (a)(b)(i) | 6,618 | 6,617 | |
| Series 2011-H07 Class FA, 1 month U.S. LIBOR + 0.500% 2.1938% 2/20/61 (a)(b)(i) | 2,811 | 2,810 | |
| Series 2011-H12 Class FA, 1 month U.S. LIBOR + 0.490% 2.1838% 2/20/61 (a)(b)(i) | 15,075 | 15,069 | |
| Series 2011-H13 Class FA, 1 month U.S. LIBOR + 0.500% 2.1938% 4/20/61 (a)(b)(i) | 5,345 | 5,343 | |
| Series 2011-H14: | |||
| Class FB, 1 month U.S. LIBOR + 0.500% 2.1938% 5/20/61 (a)(b)(i) | 6,974 | 6,972 | |
| Class FC, 1 month U.S. LIBOR + 0.500% 2.1938% 5/20/61 (a)(b)(i) | 6,087 | 6,085 | |
| Series 2011-H17 Class FA, 1 month U.S. LIBOR + 0.530% 2.2238% 6/20/61 (a)(b)(i) | 7,627 | 7,630 | |
| Series 2011-H21 Class FA, 1 month U.S. LIBOR + 0.600% 2.2938% 10/20/61 (a)(b)(i) | 8,785 | 8,802 | |
| Series 2012-48 Class FA, 1 month U.S. LIBOR + 0.350% 2.0196% 4/16/42 (a)(b) | 580 | 578 | |
| Series 2012-76 Class GF 1 month U.S. LIBOR + 0.300% 1.9696% 6/16/42 (a)(b) | 664 | 663 | |
| Series 2012-H01 Class FA, 1 month U.S. LIBOR + 0.700% 2.3938% 11/20/61 (a)(b)(i) | 8,350 | 8,384 | |
| Series 2012-H03 Class FA, 1 month U.S. LIBOR + 0.700% 2.3938% 1/20/62 (a)(b)(i) | 5,365 | 5,387 | |
| Series 2012-H06 Class FA, 1 month U.S. LIBOR + 0.630% 2.3238% 1/20/62 (a)(b)(i) | 8,055 | 8,076 | |
| Series 2012-H07 Class FA, 1 month U.S. LIBOR + 0.630% 2.3238% 3/20/62 (a)(b)(i) | 5,084 | 5,089 | |
| Series 2012-H21 Class DF, 1 month U.S. LIBOR + 0.650% 2.3438% 5/20/61 (a)(b)(i) | 144 | 144 | |
| Series 2012-H26, Class CA, 1 month U.S. LIBOR + 0.530% 2.2238% 7/20/60 (a)(b)(i) | 233 | 234 | |
| Series 2015-H13 Class FL, 1 month U.S. LIBOR + 0.280% 1.9738% 5/20/63 (a)(b)(i) | 332 | 331 | |
| Series 2015-H19 Class FA, 1 month U.S. LIBOR + 0.200% 1.8938% 4/20/63 (a)(b)(i) | 486 | 484 | |
| Series 2016-12 Class FA, 1 month U.S. LIBOR + 0.350% 2.0078% 1/20/46 (a)(b) | 2,394 | 2,386 | |
| Series 2019-98 Class FC, 1 month U.S. LIBOR + 0.450% 2.1078% 8/20/49 (a)(b) | 40,654 | 40,663 | |
| planned amortization class: | |||
| Series 2003-74 Class PZ, 5.5% 8/20/33 | 4,308 | 4,986 | |
| Series 2004-19 Class DP, 5.5% 3/20/34 | 18 | 19 | |
| Series 2005-24 Class TC, 5.5% 3/20/35 | 3,884 | 4,236 | |
| Series 2005-57 Class PB, 5.5% 7/20/35 | 5,673 | 6,367 | |
| Series 2006-50 Class JC, 5% 6/20/36 | 1,882 | 1,985 | |
| Series 2010-117 Class E, 3% 10/20/39 | 6,937 | 6,997 | |
| Series 2010-158 Class MS, 10.000% - 1 month U.S. LIBOR 6.6845% 12/20/40 (a)(h) | 5,627 | 6,690 | |
| Series 2010-160 Class MX, 4.5% 8/20/39 | 5,104 | 5,228 | |
| Series 2011-136 Class WI, 4.5% 5/20/40 (g) | 1,429 | 106 | |
| Series 2015-24 Class PI, 3.5% 2/20/45 (g) | 19,716 | 3,035 | |
| Series 2016-69 Class WA, 3% 2/20/46 | 2,976 | 3,054 | |
| Series 2017-134 Class BA, 2.5% 11/20/46 | 925 | 944 | |
| Series 2017-139 Class K, 3% 8/20/47 | 43,520 | 44,587 | |
| Series 2017-153 Class GA, 3% 9/20/47 | 6,855 | 7,036 | |
| Series 2017-182 Class KA, 3% 10/20/47 | 6,419 | 6,553 | |
| Series 2018-13 Class Q, 3% 4/20/47 | 8,357 | 8,561 | |
| sequential payer: | |||
| Series 2002-18 Class ZB, 6% 3/20/32 | 638 | 687 | |
| Series 2002-42 Class ZA, 6% 6/20/32 | 436 | 491 | |
| Series 2003-75 Class ZA, 5.5% 9/20/33 | 1,693 | 1,891 | |
| Series 2004-24 Class ZM, 5% 4/20/34 | 3,688 | 4,072 | |
| Series 2004-46 Class BZ, 6% 6/20/34 | 2,129 | 2,467 | |
| Series 2004-86 Class G, 6% 10/20/34 | 6,273 | 7,507 | |
| Series 2005-26 Class ZA, 5.5% 1/20/35 | 16,115 | 17,970 | |
| Series 2005-28 Class AJ, 5.5% 4/20/35 | 1,483 | 1,507 | |
| Series 2005-47 Class ZY, 6% 6/20/35 | 9,575 | 10,879 | |
| Series 2005-6 Class EX, 5.5% 11/20/34 | 1,001 | 1,181 | |
| Series 2005-82 Class JV, 5% 6/20/35 | 3,197 | 3,519 | |
| Series 2006-2 Class Z, 5.5% 1/20/36 | 7,245 | 8,089 | |
| Series 2010-160 Class DY, 4% 12/20/40 | 38,811 | 42,752 | |
| Series 2010-168 Class BG, 4% 4/20/40 | 8,922 | 9,822 | |
| Series 2010-170 Class B, 4% 12/20/40 | 6,163 | 6,788 | |
| Series 2011-21 Class SB, 9.500% - 1 month U.S. LIBOR 6.1607% 2/16/41 (a)(h) | 12,785 | 14,655 | |
| Series 2011-29 Class BV, 5% 5/20/40 | 10,483 | 11,065 | |
| Series 2011-72 Class SE, 7.420% - 1 month U.S. LIBOR 5.0825% 5/16/41 (a)(h) | 24,479 | 27,323 | |
| Series 2016-H04 Class FE, 1 month U.S. LIBOR + 0.650% 2.3438% 11/20/65 (a)(b)(i) | 552 | 553 | |
| Series 2017-139 Class BA, 3% 9/20/47 | 13,551 | 13,832 | |
| Series 2018-H12 Class HA, 3.25% 8/20/68 (i) | 23,385 | 24,606 | |
| Series 2004-32: | |||
| Class GS, 6.500% - 1 month U.S. LIBOR 4.8304% 5/16/34 (a)(g)(h) | 379 | 71 | |
| Class SG, 6.500% - 1 month U.S. LIBOR 4.8423% 3/20/33 (a)(g)(h) | 5,683 | 956 | |
| Series 2004-59 Class SC, 7.200% - 1 month U.S. LIBOR 5.5304% 8/16/34 (a)(g)(h) | 2,198 | 504 | |
| Series 2004-73 Class AL, 7.200% - 1 month U.S. LIBOR 5.5304% 8/17/34 (a)(g)(h) | 765 | 173 | |
| Series 2005-13 Class SA, 6.800% - 1 month U.S. LIBOR 5.1423% 2/20/35 (a)(g)(h) | 4,163 | 899 | |
| Series 2005-6 Class EY, 5.5% 11/20/33 | 1,016 | 1,220 | |
| Series 2005-82 Class NS, 6.300% - 1 month U.S. LIBOR 4.6423% 7/20/34 (a)(g)(h) | 4,266 | 839 | |
| Series 2006-13 Class DS, 11.100% - 1 month U.S. LIBOR 8.6134% 3/20/36 (a)(h) | 4,191 | 5,267 | |
| Series 2007-35 Class SC, 40.200% - 1 month U.S. LIBOR 30.1822% 6/16/37 (a)(h) | 1,194 | 2,172 | |
| Series 2009-13 Class E, 4.5% 3/16/39 | 3,404 | 3,566 | |
| Series 2009-42 Class AY, 5% 6/16/37 | 2,400 | 2,630 | |
| Series 2010-14 Class SN, 5.950% - 1 month U.S. LIBOR 4.2804% 2/16/40 (a)(g)(h) | 2,947 | 481 | |
| Series 2010-H10 Class FA, 1 month U.S. LIBOR + 0.330% 2.1348% 5/20/60 (a)(b)(i) | 7,095 | 7,061 | |
| Series 2011-52 Class HI, 7% 4/16/41 (g) | 549 | 118 | |
| Series 2011-54 Class SA, 6.000% - 1 month U.S. LIBOR 4.3423% 4/20/41 (a)(g)(h) | 7,752 | 1,436 | |
| Series 2012-103 Class IL, 3% 8/20/27 (g) | 24,994 | 1,844 | |
| Series 2012-64 Class KI, 3.5% 11/20/36 (g) | 892 | 26 | |
| Series 2012-75 Class SA, 6.050% - 1 month U.S. LIBOR 4.3923% 6/20/42 (a)(g)(h) | 13,474 | 2,753 | |
| Series 2012-76 Class GS, 6.700% - 1 month U.S. LIBOR 5.0304% 6/16/42 (a)(g)(h) | 2,015 | 413 | |
| Series 2013-124: | |||
| Class ES, 8.667% - 1 month U.S. LIBOR 6.4563% 4/20/39 (a)(h) | 1,772 | 1,822 | |
| Class ST, 8.800% - 1 month U.S. LIBOR 6.5897% 8/20/39 (a)(h) | 6,351 | 6,565 | |
| Series 2013-149 Class MA, 2.5% 5/20/40 | 42,339 | 43,337 | |
| Series 2013-182 Class IQ, 4.5% 12/16/43 (g) | 6,995 | 1,324 | |
| Series 2013-39 Class GS, 9.500% - 1 month U.S. LIBOR 6.1845% 3/20/41 (a)(h) | 32,533 | 37,449 | |
| Series 2014-133 Class IB, 5% 9/20/44 (g) | 6,617 | 1,288 | |
| Series 2014-146 Class EI, 5% 10/20/44 (g) | 12,573 | 2,455 | |
| Series 2014-154 Class IO, 5% 10/20/44 (g) | 2,555 | 498 | |
| Series 2014-158 Class ID, 5% 10/20/44 (g) | 10,846 | 2,193 | |
| Series 2014-178 Class IO, 5% 11/20/44 (g) | 16,050 | 3,138 | |
| Series 2014-2 Class BA, 3% 1/20/44 | 7,471 | 7,855 | |
| Series 2014-21 Class HA, 3% 2/20/44 | 3,374 | 3,554 | |
| Series 2014-25 Class HC, 3% 2/20/44 | 5,170 | 5,469 | |
| Series 2014-5 Class A, 3% 1/20/44 | 4,582 | 4,816 | |
| Series 2015-117 Class KI, 5% 8/20/45 (g) | 15,697 | 3,069 | |
| Series 2015-14 Class IO, 5% 10/20/44 (g) | 17,642 | 3,464 | |
| Series 2015-79 Class IC, 5% 5/20/45 (g) | 8,399 | 1,652 | |
| Series 2015-H21: | |||
| Class HZ, 4.3429% 6/20/63 (a)(i) | 6,082 | 6,258 | |
| Class JZ, 4.3859% 6/20/65 (a)(i) | 1,222 | 1,273 | |
| Series 2016-146 Class AL, 5.8139% 5/20/40 (a) | 4,185 | 4,872 | |
| Series 2016-17 Class A, 3% 2/16/46 | 26,863 | 28,233 | |
| Series 2016-171 Class BI, 5% 10/20/44 (g) | 15,335 | 2,994 | |
| Series 2017-186 Class HK, 3% 11/16/45 | 15,206 | 15,541 | |
| Series 2017-75 Class PT, 5.7144% 4/20/47 (a) | 19,620 | 22,594 | |
| Series 2017-H06 Class FA, U.S. TREASURY 1 YEAR INDEX + 0.350% 1.94% 8/20/66 (a)(b)(i) | 22,372 | 22,374 | |
| 801,968 | |||
| U.S. Government Agency - 0.1% | |||
| Fannie Mae Series 2016-78 Class IO, 3.5% 11/25/46 (g) | 11,429 | 1,618 | |
| Fannie Mae Stripped Mortgage-Backed Securities: | |||
| Series 331 Class 12, 6.5% 2/25/33 (a)(g) | 194 | 42 | |
| Series 339 Class 5, 5.5% 7/25/33 (g) | 254 | 50 | |
| Series 343 Class 16, 5.5% 5/25/34 (g) | 219 | 39 | |
| Ginnie Mae Series 2011-93 Class SA, 6.660% - 1 month U.S. LIBOR 5.0023% 7/20/41 (a)(g)(h) | 14,286 | 3,331 | |
| 5,080 | |||
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
| (Cost $788,021) | 807,048 | ||
| Commercial Mortgage Securities - 0.0% | |||
| Ginnie Mae guaranteed Multi-family REMIC pass-thru securities: | |||
| sequential payer Series 2001-58 Class X, 0.4902% 9/16/41 (a)(g) | 1,650 | 0 | |
| Series 2001-12 Class X, 0.643% 7/16/40 (a)(g) | 127 | 0 | |
| Ginnie Mae guaranteed REMIC pass-thru certificates: | |||
| sequential payer Series 2002-81 Class IO, 0.867% 9/16/42 (a)(g) | 2,906 | 19 | |
| Series 2002-62 Class IO, 1.0855% 8/16/42 (a)(g) | 1,842 | 1 | |
| TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
| (Cost $6,247) | 20 | ||
| Shares | Value (000s) | ||
| Money Market Funds - 3.6% | |||
| Fidelity Cash Central Fund 1.58% (j) | |||
| (Cost $154,900) | 154,869,275 | 154,900 |
| Purchased Swaptions - 0.3% | ||||
| Expiration Date | Notional Amount (000s) | Value (000s) | ||
| Put Options - 0.1% | ||||
| Option on an interest rate swap with Bank of America N.A. to pay semi-annually a fixed rate of 1.7375% and receive quarterly a floating rate based on 3-month LIBOR, expiring September 2029 | 9/20/24 | 50,700 | $1,211 | |
| Option on an interest rate swap with Bank of America N.A. to pay semi-annually a fixed rate of 1.78% and receive quarterly a floating rate based on 3-month LIBOR, expiring October 2029 | 10/15/24 | 50,900 | 1,188 | |
| Option on an interest rate swap with Bank of America, N.A. to pay semi-annually a fixed rate of 2.61% and receive quarterly a floating rate based on 3-month LIBOR, expiring May 2029 | 4/29/22 | 15,100 | 75 | |
| Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 1.905% and receive quarterly a floating rate based on 3-month LIBOR, expiring October 2029 | 10/28/24 | 21,500 | 452 | |
| Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 2.55% and receive quarterly a floating rate based on 3-month LIBOR, expiring May 2029 | 4/29/22 | 26,000 | 142 | |
| Option on an interest rate swap with JPMorgan Chase Bank, N.A. to pay semi-annually a fixed rate of 2.313% and receive quarterly a floating rate based on 3-month LIBOR, expiring June 2029 | 6/6/24 | 19,900 | 263 | |
| TOTAL PUT OPTIONS | 3,331 | |||
| Call Options - 0.2% | ||||
| Option on an interest rate swap with Bank of America N.A. to receive semi-annually a fixed rate of 1.7375% and pay quarterly a floating rate based on 3-month LIBOR, expiring September 2029 | 9/20/24 | 50,700 | 1,627 | |
| Option on an interest rate swap with Bank of America N.A. to receive semi-annually a fixed rate of 1.78% and pay quarterly a floating rate based on 3-month LIBOR, expiring October 2029 | 10/15/24 | 50,900 | 1,693 | |
| Option on an interest rate swap with Bank of America, N.A. to receive semi-annually a fixed rate of 2.61% and pay quarterly a floating rate based on 3-month LIBOR, expiring May 2029 | 4/29/22 | 15,100 | 1,219 | |
| Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 1.905% and pay quarterly a floating rate based on 3-month LIBOR, expiring October 2029 | 10/28/24 | 21,500 | 785 | |
| Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 2.55% and pay quarterly a floating rate based on 3-month LIBOR, expiring May 2029 | 4/29/22 | 26,000 | 2,009 | |
| Option on an interest rate swap with JPMorgan Chase Bank, N.A. to receive semi-annually a fixed rate of 2.313% and pay quarterly a floating rate based on 3-month LIBOR, expiring June 2029 | 6/6/24 | 19,900 | 976 | |
| TOTAL CALL OPTIONS | 8,309 | |||
| TOTAL PURCHASED SWAPTIONS | ||||
| (Cost $10,356) | 11,640 | |||
| TOTAL INVESTMENT IN SECURITIES - 116.5% | ||||
| (Cost $4,905,241) | 4,984,322 | |||
| NET OTHER ASSETS (LIABILITIES) - (16.5)% | (706,974) | |||
| NET ASSETS - 100% | $4,277,348 |
| TBA Sale Commitments | ||
| Principal Amount (000s) | Value (000s) | |
| Ginnie Mae | ||
| 2.5% 2/1/50 | $(196,700) | $(199,850) |
| 2.5% 2/1/50 | (107,900) | (109,628) |
| 2.5% 2/1/50 | (30,000) | (30,480) |
| 2.5% 2/1/50 | (2,600) | (2,642) |
| 3% 2/1/50 | (166,500) | (171,157) |
| 3% 2/1/50 | (71,000) | (72,986) |
| 3% 2/1/50 | (38,450) | (39,525) |
| 3% 2/1/50 | (1,600) | (1,645) |
| 3% 2/1/50 | (1,600) | (1,645) |
| 3% 2/1/50 | (37,850) | (38,909) |
| 3% 2/1/50 | (900) | (925) |
| 3% 2/1/50 | (36,950) | (37,983) |
| 3% 2/1/50 | (1,600) | (1,645) |
| 3.5% 2/1/50 | (2,250) | (2,320) |
| 3.5% 2/1/50 | (2,100) | (2,166) |
| TOTAL GINNIE MAE | (713,506) | |
| Uniform Mortgage Backed Securities | ||
| 3% 2/1/50 | (27,600) | (28,219) |
| TOTAL TBA SALE COMMITMENTS | ||
| (Proceeds $737,463) | $(741,725) |
| Written Swaptions | |||
| Expiration Date | Notional Amount | Value (000s) | |
| Put Swaptions | |||
| Option on an interest rate swap with Bank of America N.A. to pay semi-annually a fixed rate of 1.775% and receive quarterly a floating rate based on 3-month LIBOR, expiring December 2029 | 12/3/24 | 1,500 | $(36) |
| Option on an interest rate swap with Bank of America N.A. to pay semi-annually a fixed rate of 1.9% and receive quarterly a floating rate based on 3-month LIBOR, expiring December 2029 | 12/10/24 | 25,500 | (552) |
| Option on an interest rate swap with Bank of America N.A. to pay semi-annually a fixed rate of 1.92% and receive quarterly a floating rate based on 3-month LIBOR, expiring January 2030 | 1/8/25 | 8,000 | (173) |
| Option on an interest rate swap with Bank of America N.A. to pay semi-annually a fixed rate of 1.97% and receive quarterly a floating rate based on 3-month LIBOR, expiring August 2029 | 8/1/24 | 11,000 | (208) |
| Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 1.487% and receive quarterly a floating rate based on 3-month LIBOR, expiring October 2030 | 10/2/20 | 69,500 | (1,380) |
| Option on an interest rate swap with JPMorgan Chase Bank N.A. to pay semi-annually a fixed rate of 1.684% and receive quarterly a floating rate based on 3-month LIBOR, expiring January 2030 | 1/27/25 | 58,000 | (1,540) |
| TOTAL PUT SWAPTIONS | (3,889) | ||
| Call Swaptions | |||
| Option on an interest rate swap with Bank of America N.A. to receive semi-annually a fixed rate of 1.775% and pay quarterly a floating rate based on 3-month LIBOR, expiring December 2029 | 12/3/24 | 1,500 | (50) |
| Option on an interest rate swap with Bank of America N.A. to receive semi-annually a fixed rate of 1.9% and pay quarterly a floating rate based on 3-month LIBOR, expiring December 2029 | 12/10/24 | 25,500 | (930) |
| Option on an interest rate swap with Bank of America N.A. to receive semi-annually a fixed rate of 1.92% and pay quarterly a floating rate based on 3-month LIBOR, expiring January 2030 | 1/8/25 | 8,000 | (296) |
| Option on an interest rate swap with Bank of America N.A. to receive semi-annually a fixed rate of 1.97% and pay quarterly a floating rate based on 3-month LIBOR, expiring August 2029 | 8/1/24 | 11,000 | (421) |
| Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 1.487% and pay quarterly a floating rate based on 3-month LIBOR, expiring October 2030 | 10/2/20 | 69,500 | (1,549) |
| Option on an interest rate swap with JPMorgan Chase Bank N.A. to receive semi-annually a fixed rate of 1.684% and pay quarterly a floating rate based on 3-month LIBOR, expiring January 2030 | 1/27/25 | 58,000 | (1,802) |
| TOTAL CALL SWAPTIONS | (5,048) | ||
| TOTAL WRITTEN SWAPTIONS | $(8,937) |
For the period, the average monthly notional amount at value for written swaptions in the aggregate was $441,400,000.
| Futures Contracts | |||||
| Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
| Purchased | |||||
| Treasury Contracts | |||||
| CBOT 2-Year U.S. Treasury Note Contracts (United States) | 171 | March 2020 | $36,997 | $94 | $94 |
| Sold | |||||
| Treasury Contracts | |||||
| CBOT 10-Year U.S. Treasury Note Contracts (United States) | 276 | March 2020 | 36,337 | (225) | (225) |
| CBOT 5-Year U.S. Treasury Note Contracts (United States) | 1,949 | March 2020 | 234,504 | (2,678) | (2,678) |
| CBOT Long Term U.S. Treasury Bond Contracts (United States) | 196 | March 2020 | 32,052 | (1,029) | (1,029) |
| CBOT Ultra 10-Year U.S. Treasury Note Contracts (United States) | 282 | March 2020 | 41,075 | (961) | (961) |
| TOTAL SOLD | (4,893) | ||||
| TOTAL FUTURES CONTRACTS | $(4,799) |
The notional amount of futures purchased as a percentage of Net Assets is 0.9%
The notional amount of futures sold as a percentage of Net Assets is 8.0%
For the period, the average monthly notional amount at value for futures contracts in the aggregate was $478,950,000.
Swaps
| Payment Received | Payment Frequency | Payment Paid | Payment Frequency | Clearinghouse / Counterparty(1) | Maturity Date | Notional Amount (000s) | Value (000s) | Upfront Premium Received/(Paid) (000s)(2) | Unrealized Appreciation/(Depreciation) (000s) |
| Interest Rate Swaps | |||||||||
| 1.75% | Semi - annual | 3-month LIBOR(3) | Quarterly | LCH | Mar. 2022 | $43,480 | $230 | $0 | $230 |
| 1.75% | Semi - annual | 3-month LIBOR(3) | Quarterly | LCH | Mar. 2025 | 15,897 | 244 | 0 | 244 |
| 3-month LIBOR(3) | Quarterly | 2% | Semi - annual | LCH | Mar. 2030 | 41,235 | (1,147) | 0 | (1,147) |
| TOTAL INTEREST RATE SWAPS | $(673) | $0 | $(673) | ||||||
(1) Swaps with LCH Clearnet Group (LCH) are centrally cleared over-the-counter (OTC) swaps.
(2) Any premiums for centrally cleared over-the-counter (OTC) swaps are recorded periodically throughout the term of the swap to variation margin and included in unrealized appreciation (depreciation).
(3) Represents floating rate.
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(b) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $3,346,000.
(e) Security or a portion of the security was pledged to cover margin requirements for centrally cleared OTC swaps. At period end, the value of securities pledged amounted to $1,854,000.
(f) Security or a portion of the security has been segregated as collateral for mortgage-backed or asset-backed securities purchased on a delayed delivery or when-issued basis. At period end, the value of securities pledged amounted to $2,345,000.
(g) 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.
(h) 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.
(i) 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.
(j) Affiliated fund that is generally 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.
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 |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $1,282 |
| Total | $1,282 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2020, 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 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 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| U.S. Government Agency - Mortgage Securities | $4,010,714 | $-- | $4,010,714 | $-- |
| Collateralized Mortgage Obligations | 807,048 | -- | 807,048 | -- |
| Commercial Mortgage Securities | 20 | -- | 20 | -- |
| Money Market Funds | 154,900 | 154,900 | -- | -- |
| Purchased Swaptions | 11,640 | -- | 11,640 | -- |
| Total Investments in Securities: | $4,984,322 | $154,900 | $4,829,422 | $-- |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $94 | $94 | $-- | $-- |
| Swaps | 474 | -- | 474 | -- |
| Total Assets | $568 | $94 | $474 | $-- |
| Liabilities | ||||
| Futures Contracts | $(4,893) | $(4,893) | $-- | $-- |
| Swaps | (1,147) | -- | (1,147) | -- |
| Written Swaptions | (8,937) | -- | (8,937) | -- |
| Total Liabilities | $(14,977) | $(4,893) | $(10,084) | $-- |
| Total Derivative Instruments: | $(14,409) | $(4,799) | $(9,610) | $-- |
| Other Financial Instruments: | ||||
| TBA Sale Commitments | $(741,725) | $-- | $(741,725) | $-- |
| Total Other Financial Instruments: | $(741,725) | $-- | $(741,725) | $-- |
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, 2020. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| (Amounts in thousands) | ||
| Interest Rate Risk | ||
| Futures Contracts(a) | $94 | $(4,893) |
| Purchased Swaptions(b) | 11,640 | 0 |
| Swaps(c) | 474 | (1,147) |
| Written Swaptions(d) | 0 | (8,937) |
| Total Interest Rate Risk | 12,208 | (14,977) |
| Total Value of Derivatives | $12,208 | $(14,977) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
(b) Gross value is included in the Statement of Assets and Liabilities in the investments, at value line-item.
(c) For centrally cleared over-the-counter (OTC) swaps, reflects gross cumulative appreciation (depreciation) as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin for centrally cleared OTC swaps is included in receivable or payable for daily variation margin on centrally cleared OTC swaps, and the net cumulative appreciation (depreciation) for centrally cleared OTC swaps is included in Total accumulated earnings (loss).
(d) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amount) | January 31, 2020 (Unaudited) | |
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $4,750,341) | $4,829,422 | |
| Fidelity Central Funds (cost $154,900) | 154,900 | |
| Total Investment in Securities (cost $4,905,241) | $4,984,322 | |
| Receivable for investments sold | 124 | |
| Receivable for premium on written options | 9,629 | |
| Receivable for TBA sale commitments | 737,463 | |
| Receivable for fund shares sold | 2,190 | |
| Interest receivable | 12,148 | |
| Distributions receivable from Fidelity Central Funds | 193 | |
| Other receivables | 47 | |
| Total assets | 5,746,116 | |
| Liabilities | ||
| Payable for investments purchased | ||
| Regular delivery | $14,278 | |
| Delayed delivery | 698,225 | |
| TBA sale commitments, at value | 741,725 | |
| Payable for fund shares redeemed | 1,945 | |
| Distributions payable | 1,053 | |
| Accrued management fee | 1,069 | |
| Payable for daily variation margin on futures contracts | 840 | |
| Payable for daily variation margin on centrally cleared OTC swaps | 122 | |
| Written options, at value (premium receivable $9,629) | 8,937 | |
| Other affiliated payables | 527 | |
| Other payables and accrued expenses | 47 | |
| Total liabilities | 1,468,768 | |
| Net Assets | $4,277,348 | |
| Net Assets consist of: | ||
| Paid in capital | $4,269,076 | |
| Total accumulated earnings (loss) | 8,272 | |
| Net Assets | $4,277,348 | |
| Net Asset Value, offering price and redemption price per share ($4,277,348 ÷ 369,506 shares) | $11.58 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended January 31, 2020 (Unaudited) | |
| Investment Income | ||
| Interest | $55,558 | |
| Income from Fidelity Central Funds | 1,282 | |
| Total income | 56,840 | |
| Expenses | ||
| Management fee | $6,414 | |
| Transfer agent fees | 2,126 | |
| Fund wide operations fee | 1,019 | |
| Independent trustees' fees and expenses | 8 | |
| Commitment fees | 4 | |
| Total expenses before reductions | 9,571 | |
| Expense reductions | (1) | |
| Total expenses after reductions | 9,570 | |
| Net investment income (loss) | 47,270 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 17,051 | |
| Futures contracts | (12,388) | |
| Swaps | 1,140 | |
| Written options | (3,000) | |
| Total net realized gain (loss) | 2,803 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 29,362 | |
| Fidelity Central Funds | (1) | |
| Futures contracts | (389) | |
| Swaps | (1,477) | |
| Written options | 1,864 | |
| Delayed delivery commitments | (3,770) | |
| Total change in net unrealized appreciation (depreciation) | 25,589 | |
| Net gain (loss) | 28,392 | |
| Net increase (decrease) in net assets resulting from operations | $75,662 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $47,270 | $106,920 |
| Net realized gain (loss) | 2,803 | (23,373) |
| Change in net unrealized appreciation (depreciation) | 25,589 | 155,703 |
| Net increase (decrease) in net assets resulting from operations | 75,662 | 239,250 |
| Distributions to shareholders | (51,854) | (99,743) |
| Share transactions | ||
| Proceeds from sales of shares | 473,597 | 467,925 |
| Reinvestment of distributions | 46,398 | 89,165 |
| Cost of shares redeemed | (438,850) | (845,030) |
| Net increase (decrease) in net assets resulting from share transactions | 81,145 | (287,940) |
| Total increase (decrease) in net assets | 104,953 | (148,433) |
| Net Assets | ||
| Beginning of period | 4,172,395 | 4,320,828 |
| End of period | $4,277,348 | $4,172,395 |
| Other Information | ||
| Shares | ||
| Sold | 40,990 | 41,399 |
| Issued in reinvestment of distributions | 4,013 | 7,913 |
| Redeemed | (37,993) | (75,482) |
| Net increase (decrease) | 7,010 | (26,170) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity GNMA Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $11.51 | $11.12 | $11.45 | $11.70 | $11.63 | $11.49 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .128 | .292 | .257 | .235 | .245 | .228 |
| Net realized and unrealized gain (loss) | .083 | .371 | (.337) | (.215) | .128 | .130 |
| Total from investment operations | .211 | .663 | (.080) | .020 | .373 | .358 |
| Distributions from net investment income | (.141) | (.273) | (.250) | (.224) | (.244) | (.218) |
| Distributions from net realized gain | – | – | – | (.041) | (.059) | – |
| Distributions from tax return of capital | – | – | – | (.005) | – | – |
| Total distributions | (.141) | (.273) | (.250) | (.270) | (.303) | (.218) |
| Net asset value, end of period | $11.58 | $11.51 | $11.12 | $11.45 | $11.70 | $11.63 |
| Total ReturnB,C | 1.84% | 6.04% | (.71)% | .19% | 3.26% | 3.13% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .45%F | .45% | .45% | .45% | .45% | .45% |
| Expenses net of fee waivers, if any | .45%F | .45% | .45% | .45% | .45% | .45% |
| Expenses net of all reductions | .45%F | .45% | .45% | .45% | .45% | .45% |
| Net investment income (loss) | 2.21%F | 2.60% | 2.28% | 2.04% | 2.11% | 1.96% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $4,277 | $4,172 | $4,321 | $5,216 | $6,375 | $5,945 |
| Portfolio turnover rateG | 454%F | 420% | 252% | 270% | 304% | 450% |
A Calculated based on average shares outstanding during the period.
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 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.
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.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2020
(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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by 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 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 reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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. Collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Swaps are marked-to-market daily based on valuations from third party pricing vendors, registered derivatives clearing organizations (clearinghouses) or broker-supplied valuations. These pricing sources may utilize inputs such as interest rate curves, credit spread curves, default possibilities and recovery rates. When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities and swaps are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Options traded over-the-counter are valued using vendor or broker-supplied valuations and are categorized as Level 2 in the hierarchy. 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, 2020 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected 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 of $47 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, swaps, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $99,013 |
| Gross unrealized depreciation | (27,822) |
| Net unrealized appreciation (depreciation) | $71,191 |
| Tax cost | $4,905,376 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Long-term | $(54,031) |
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 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 as Receivable for TBA sale commitments and TBA sale commitments, at value, respectively.
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, options and swaps. 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.
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 options, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement 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 bi-lateral 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 bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. For OTC written options with upfront premiums received, the Fund is obligated to perform and therefore does not have counterparty risk. For OTC written options with premiums to be received at a future date, the maximum risk of loss from counterparty credit risk is the amount of the premium in excess of any collateral pledged by the counterparty. The Fund may be required to pledge collateral for the benefit of the counterparties on bi-lateral 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. Exchange-traded futures contracts are not covered by the ISDA Master Agreement; however counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade. Counterparty credit risk related to centrally cleared OTC swaps may be mitigated by the protection provided by the clearinghouse.
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.
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 | ||
| Futures Contracts | $(12,388) | $(389) |
| Purchased Options | 1,087 | 879 |
| Swaps | 1,140 | (1,477) |
| Written Options | (3,000) | 1,864 |
| Totals | $(13,161) | $881 |
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.
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 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 daily 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. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date. The Fund uses OTC options, such as swaptions, which are options where the underlying instrument is a swap, to manage its exposure to fluctuations in interest rates.
Upon entering into an options contract, a fund will pay or receive a premium. Premiums paid on purchased options are reflected as cost of investments and premiums received on written options are reflected as a liability on the Statement of Assets and Liabilities. Certain options may be purchased or written with premiums to be paid or received on a future date. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When an option is exercised, the cost or proceeds of the underlying instrument purchased or sold is adjusted by the amount of the premium. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction is greater or less than the premium received or paid. When an option expires, gains and losses are realized to the extent of premiums received and paid, respectively. The net realized and unrealized gains (losses) on purchased options are included in the Statement of Operations in net realized gain (loss) and change in net unrealized appreciation (depreciation) on investment securities. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on written options are presented in the Statement of Operations.
Any open options at period end are presented in the Schedule of Investments under the captions "Purchased Options," "Purchased Swaptions," "Written Options" and "Written Swaptions," as applicable.
Writing puts and buying calls tend to increase exposure to the underlying instrument while buying puts and writing calls tend to decrease exposure to the underlying instrument. For purchased options, risk of loss is limited to the premium paid, and for written options, risk of loss is the change in value in excess of the premium received.
Swaps. A swap is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount. A centrally cleared OTC swap is a transaction executed between a fund and a dealer counterparty, then cleared by a futures commission merchant (FCM) through a clearinghouse. Once cleared, the clearinghouse serves as a central counterparty, with whom a fund exchanges cash flows for the life of the transaction, similar to transactions in futures contracts.
Centrally cleared OTC swaps require a fund to deposit either cash or securities (initial margin) with the FCM, at the instruction of and for the benefit of the clearinghouse. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Centrally cleared OTC swaps are marked-to-market daily and subsequent payments (variation margin) are made or received depending on the daily fluctuations in the value of the swaps and are recorded as unrealized appreciation or (depreciation). These daily payments, if any, are included in receivable or payable for daily variation margin on centrally cleared OTC swaps in the Statement of Assets and Liabilities. Any premiums for centrally cleared OTC swaps are recorded periodically throughout the term of the swap to variation margin and included in unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. Any premiums are recognized as realized gain (loss) upon termination or maturity of the swap.
Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Some swaps may be terminated prior to the effective date and realize a gain or loss upon termination. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is presented in the Statement of Operations.
Any open swaps at period end are included in the Schedule of Investments under the caption "Swaps" and are representative of volume of activity during the period.
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $1,727,730 and $1,774,560, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) 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 .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .30% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, 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), the investment adviser 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% of the Fund's average net assets 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 .05% of average net assets.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $36.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $5 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $1.
9. 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.
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, 2019 to January 31, 2020).
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. 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 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. 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.
| Annualized Expense Ratio-A | Beginning Account Value August 1, 2019 | Ending Account Value January 31, 2020 | Expenses Paid During Period-B August 1, 2019 to January 31, 2020 | |
| Actual | .45% | $1,000.00 | $1,018.40 | $2.28 |
| Hypothetical-C | $1,000.00 | $1,022.87 | $2.29 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
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 with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. 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 four standing committees (Committees) — Operations, Audit, Fair Valuation, 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 considers, among other matters, information 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its September 2019 meeting, the Board 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 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 provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are realized as the fund grows, and whether any economies of scale are appropriately shared with 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 was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was 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 of the fund have a broad range of investment choices available to them, including a wide choice among 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, which is part of the Fidelity family of funds.Approval of Amended and Restated Advisory Contracts. At its September 2019 meeting, the Board also unanimously determined to approve an amended and restated management contract and sub-advisory agreements (Amended and Restated Contracts) in connection with an upcoming consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, Fidelity Investments Money Management, Inc. (FIMM) expects to merge with and into FMR and, after the merger, FMR expects to redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FIMM upon the completion of the merger. The Board noted that references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile and considered that the definition of "group assets" for purposes of the fund's group fee would be modified to avoid double-counting assets once the reorganization is complete. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees or expenses paid by the fund.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, 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 investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also 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. Further, the Board considered 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 Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts 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, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the 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 and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, 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 Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain target date funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.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 and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index) and a peer group of funds with similar objectives (peer group), if any. In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.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 created for the purpose of facilitating the Trustees' competitive analysis of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in basis points (BP) 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 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s and the number of funds in the Total Mapped Group are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the chart and was considered by the Board.Fidelity GNMA Fund
MOG-SANN-0320
1.930529.108
Fidelity Simplicity RMD Income Fund℠
Fidelity Simplicity RMD 2005 Fund℠
Fidelity Simplicity RMD 2010 Fund℠
Fidelity Simplicity RMD 2015 Fund℠
Fidelity Simplicity RMD 2020 Fund℠
Fidelity Simplicity RMD 2025 Fund℠
Semi-Annual Report
January 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
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Contents
Fidelity Simplicity RMD Income Fund℠ | |
Fidelity Simplicity RMD 2005 Fund℠ | |
Fidelity Simplicity RMD 2010 Fund℠ | |
Fidelity Simplicity RMD 2015 Fund℠ | |
Fidelity Simplicity RMD 2020 Fund℠ | |
Fidelity Simplicity RMD 2025 Fund℠ | |
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.
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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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Note to shareholders:
As part of a regular review of its organizational structure, Fidelity has decided to merge certain entities to streamline operations, increase efficiency, simplify reporting, and reduce legal, compliance, and accounting complexity and costs. In separate events, Fidelity has merged four of its investment advisers and two of its broker-dealers.
Effective on or about January 1, 2020, following any required regulatory notices and approvals:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to “Fidelity Management & Research Company LLC”.
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. (“FIISC”). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to “Fidelity Distributors Company LLC”.
These mergers are not expected to affect fund shareholders or Fidelity clients, nor are they expected to result in any changes to the day-to-day management of Fidelity’s brokerage services, the Fidelity funds, their investment policies and practices, their portfolio management teams, or the funds’ expenses.
Fidelity Simplicity RMD Income Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 38.6 |
| Fidelity Series Government Money Market Fund 1.62% | 18.7 |
| Fidelity Series Inflation-Protected Bond Index Fund | 12.0 |
| Fidelity Series Short-Term Credit Fund | 4.7 |
| Fidelity Series Emerging Markets Opportunities Fund | 4.3 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 2.6 |
| Fidelity Series International Growth Fund | 2.3 |
| Fidelity Series International Value Fund | 2.1 |
| Fidelity Series Overseas Fund | 1.2 |
| 90.0 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 10.1% | |
| International Equity Funds | 11.3% | |
| Bond Funds | 55.2% | |
| Short-Term Funds | 23.4% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD Income Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 10.1% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 6,197 | $64,512 | |
| Fidelity Series Blue Chip Growth Fund (a) | 7,277 | 112,714 | |
| Fidelity Series Commodity Strategy Fund (a) | 188,742 | 832,351 | |
| Fidelity Series Growth Company Fund (a) | 12,736 | 232,809 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 16,969 | 275,744 | |
| Fidelity Series Large Cap Stock Fund (a) | 15,810 | 243,789 | |
| Fidelity Series Large Cap Value Index Fund (a) | 5,225 | 67,451 | |
| Fidelity Series Opportunistic Insights Fund (a) | 6,871 | 127,388 | |
| Fidelity Series Small Cap Discovery Fund (a) | 2,827 | 32,312 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 7,333 | 100,688 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 14,747 | 183,750 | |
| Fidelity Series Value Discovery Fund (a) | 10,291 | 133,890 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $2,401,107) | 2,407,398 | ||
| International Equity Funds - 11.3% | |||
| Fidelity Series Canada Fund (a) | 8,394 | 94,100 | |
| Fidelity Series Emerging Markets Fund (a) | 12,170 | 115,002 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 51,697 | 1,016,359 | |
| Fidelity Series International Growth Fund (a) | 30,978 | 538,090 | |
| Fidelity Series International Small Cap Fund (a) | 7,141 | 119,890 | |
| Fidelity Series International Value Fund (a) | 53,130 | 507,392 | |
| Fidelity Series Overseas Fund (a) | 27,976 | 297,948 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $2,555,350) | 2,688,781 | ||
| Bond Funds - 55.2% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 15,671 | 151,854 | |
| Fidelity Series Floating Rate High Income Fund (a) | 3,793 | 35,272 | |
| Fidelity Series High Income Fund (a) | 18,757 | 178,187 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 280,572 | 2,856,228 | |
| Fidelity Series International Credit Fund (a) | 572 | 5,908 | |
| Fidelity Series Investment Grade Bond Fund (a) | 779,401 | 9,181,346 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 64,491 | 609,443 | |
| Fidelity Series Real Estate Income Fund (a) | 10,188 | 114,918 | |
| TOTAL BOND FUNDS | |||
| (Cost $12,545,024) | 13,133,156 | ||
| Short-Term Funds - 23.4% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 4,441,828 | 4,441,828 | |
| Fidelity Series Short-Term Credit Fund (a) | 109,654 | 1,110,800 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $5,536,569) | 5,552,628 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $23,038,050) | 23,781,963 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (9,981) | ||
| NET ASSETS - 100% | $23,771,982 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $67,779 | $19,153 | $24,398 | $4,781 | $(2,907) | $4,885 | $64,512 |
| Fidelity Series Blue Chip Growth Fund | 116,700 | 29,925 | 34,203 | 13,269 | 204 | 88 | 112,714 |
| Fidelity Series Canada Fund | 57,662 | 40,250 | 5,421 | 1,535 | 14 | 1,595 | 94,100 |
| Fidelity Series Commodity Strategy Fund | 736,871 | 236,069 | 97,309 | 12,349 | (2,200) | (41,080) | 832,351 |
| Fidelity Series Emerging Markets Debt Fund | 151,703 | 27,039 | 25,613 | 4,496 | (1,158) | (117) | 151,854�� |
| Fidelity Series Emerging Markets Fund | 77,775 | 44,204 | 7,901 | 2,577 | (20) | 944 | 115,002 |
| Fidelity Series Emerging Markets Opportunities Fund | 697,355 | 384,915 | 115,822 | 25,836 | 3,334 | 46,577 | 1,016,359 |
| Fidelity Series Floating Rate High Income Fund | 31,750 | 5,848 | 2,272 | 987 | (3) | (51) | 35,272 |
| Fidelity Series Government Money Market Fund 1.62% | 3,869,381 | 875,954 | 303,507 | 40,234 | -- | -- | 4,441,828 |
| Fidelity Series Growth Company Fund | 233,107 | 58,457 | 69,485 | 23,900 | 4,119 | 6,611 | 232,809 |
| Fidelity Series High Income Fund | 159,393 | 29,964 | 11,379 | 5,659 | 25 | 184 | 178,187 |
| Fidelity Series Inflation-Protected Bond Index Fund | 2,826,416 | 510,476 | 524,138 | 34,721 | 4,864 | 38,610 | 2,856,228 |
| Fidelity Series International Credit Fund | 5,597 | 268 | -- | 268 | -- | 43 | 5,908 |
| Fidelity Series International Growth Fund | 524,387 | 93,710 | 117,648 | 18,947 | 5,137 | 32,504 | 538,090 |
| Fidelity Series International Small Cap Fund | 114,738 | 24,253 | 26,227 | 5,720 | 540 | 6,586 | 119,890 |
| Fidelity Series International Value Fund | 494,388 | 104,803 | 104,039 | 21,028 | (731) | 12,971 | 507,392 |
| Fidelity Series Intrinsic Opportunities Fund | 284,238 | 94,597 | 102,146 | 15,020 | (884) | (61) | 275,744 |
| Fidelity Series Investment Grade Bond Fund | 7,931,312 | 1,737,909 | 729,276 | 133,199 | (9) | 241,410 | 9,181,346 |
| Fidelity Series Large Cap Stock Fund | 249,550 | 73,896 | 87,933 | 13,773 | 1,985 | 6,291 | 243,789 |
| Fidelity Series Large Cap Value Index Fund | 72,476 | 16,815 | 21,887 | 4,256 | 663 | (616) | 67,451 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 760,625 | 169,182 | 339,705 | 50,539 | 25,871 | (6,530) | 609,443 |
| Fidelity Series Opportunistic Insights Fund | 128,803 | 28,959 | 30,251 | 10,499 | 628 | (751) | 127,388 |
| Fidelity Series Overseas Fund | 18,709 | 264,810 | -- | 918 | -- | 14,429 | 297,948 |
| Fidelity Series Real Estate Income Fund | 101,031 | 20,295 | 7,119 | 5,064 | (9) | 720 | 114,918 |
| Fidelity Series Short-Term Credit Fund | 967,568 | 210,132 | 76,051 | 14,527 | (57) | 9,208 | 1,110,800 |
| Fidelity Series Small Cap Discovery Fund | 35,726 | 8,848 | 12,973 | 1,407 | 97 | 614 | 32,312 |
| Fidelity Series Small Cap Opportunities Fund | 106,857 | 29,332 | 33,226 | 7,085 | (373) | (1,902) | 100,688 |
| Fidelity Series Stock Selector Large Cap Value Fund | 192,889 | 46,107 | 57,559 | 9,272 | 263 | 2,050 | 183,750 |
| Fidelity Series Value Discovery Fund | 138,172 | 42,262 | 47,016 | 5,238 | 560 | (88) | 133,890 |
| $21,152,958 | $5,228,432 | $3,014,504 | $487,104 | $39,953 | $375,124 | $23,781,963 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD Income Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $23,038,050) | $23,781,963 | |
| Total Investment in Securities (cost $23,038,050) | $23,781,963 | |
| Cash | 32 | |
| Receivable for investments sold | 190,777 | |
| Receivable for fund shares sold | 73 | |
| Total assets | 23,972,845 | |
| Liabilities | ||
| Payable for investments purchased | $187,644 | |
| Payable for fund shares redeemed | 4,100 | |
| Accrued management fee | 9,119 | |
| Total liabilities | 200,863 | |
| Net Assets | $23,771,982 | |
| Net Assets consist of: | ||
| Paid in capital | $22,935,032 | |
| Total accumulated earnings (loss) | 836,950 | |
| Net Assets | $23,771,982 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($23,771,982 ÷ 399,590 shares) | $59.49 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $318,059 | |
| Expenses | ||
| Management fee | $52,758 | |
| Independent trustees' fees and expenses | 41 | |
| Total expenses | 52,799 | |
| Net investment income (loss) | 265,260 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | 39,953 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 169,045 | |
| Total net realized gain (loss) | 208,998 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 375,124 | |
| Total change in net unrealized appreciation (depreciation) | 375,124 | |
| Net gain (loss) | 584,122 | |
| Net increase (decrease) in net assets resulting from operations | $849,382 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $265,260 | $317,543 |
| Net realized gain (loss) | 208,998 | 190,444 |
| Change in net unrealized appreciation (depreciation) | 375,124 | 335,899 |
| Net increase (decrease) in net assets resulting from operations | 849,382 | 843,886 |
| Distributions to shareholders | (477,157) | (481,427) |
| Share transactions - net increase (decrease) | 2,254,866 | 6,828,271 |
| Total increase (decrease) in net assets | 2,627,091 | 7,190,730 |
| Net Assets | ||
| Beginning of period | 21,144,891 | 13,954,161 |
| End of period | $23,771,982 | $21,144,891 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD Income Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $58.52 | $57.61 | $61.22 | $58.62 | $59.28 | $58.27 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .683 | 1.164 | 1.013 | .923 | .920 | .866 |
| Net realized and unrealized gain (loss) | 1.518 | 1.632 | .513 | 2.703 | .317 | 1.628 |
| Total from investment operations | 2.201 | 2.796 | 1.526 | 3.626 | 1.237 | 2.494 |
| Distributions from net investment income | (.710) | (1.163) | (.986) | (.847) | (.914) | (.847) |
| Distributions from net realized gain | (.521) | (.723) | (4.150) | (.179) | (.983) | (.637) |
| Total distributions | (1.231) | (1.886) | (5.136) | (1.026) | (1.897) | (1.484) |
| Net asset value, end of period | $59.49 | $58.52 | $57.61 | $61.22 | $58.62 | $59.28 |
| Total ReturnB,C | 3.79% | 5.03% | 2.61% | 6.27% | 2.24% | 4.33% |
| Ratios to Average Net AssetsD | ||||||
| Expenses before reductions | .46%E | .46% | .47% | .08% | - %F | - %F |
| Expenses net of fee waivers, if any | .46%E | .46% | .47% | .08% | -% | -% |
| Expenses net of all reductions | .46%E | .46% | .46% | .08% | -% | -% |
| Net investment income (loss) | 2.31%E | 2.04% | 1.74% | 1.56% | 1.62% | 1.47% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $23,772 | $21,145 | $13,457 | $9,783 | $8,756 | $9,139 |
| Portfolio turnover rateG | 26%E | 38% | 46% | 128% | 49% | 29% |
A Calculated based on average shares outstanding during the period.
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 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 but do not include expenses of the underlying funds in which the Fund invests.
E Annualized
F Amount represents less than .005%.
G Amounts do not include the activity of Underlying Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2005 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 38.6 |
| Fidelity Series Government Money Market Fund 1.62% | 18.7 |
| Fidelity Series Inflation-Protected Bond Index Fund | 12.0 |
| Fidelity Series Short-Term Credit Fund | 4.6 |
| Fidelity Series Emerging Markets Opportunities Fund | 4.3 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 2.6 |
| Fidelity Series International Growth Fund | 2.3 |
| Fidelity Series International Value Fund | 2.1 |
| Fidelity Series Overseas Fund | 1.2 |
| 89.9 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 10.1% | |
| International Equity Funds | 11.3% | |
| Bond Funds | 55.3% | |
| Short-Term Funds | 23.3% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2005 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 10.1% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 4,450 | $46,322 | |
| Fidelity Series Blue Chip Growth Fund (a) | 5,343 | 82,758 | |
| Fidelity Series Commodity Strategy Fund (a) | 135,350 | 596,891 | |
| Fidelity Series Growth Company Fund (a) | 9,141 | 167,105 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 12,182 | 197,957 | |
| Fidelity Series Large Cap Stock Fund (a) | 11,350 | 175,016 | |
| Fidelity Series Large Cap Value Index Fund (a) | 3,751 | 48,423 | |
| Fidelity Series Opportunistic Insights Fund (a) | 4,892 | 90,703 | |
| Fidelity Series Small Cap Discovery Fund (a) | 2,029 | 23,197 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 5,229 | 71,794 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 10,859 | 135,301 | |
| Fidelity Series Value Discovery Fund (a) | 7,033 | 91,497 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,707,098) | 1,726,964 | ||
| International Equity Funds - 11.3% | |||
| Fidelity Series Canada Fund (a) | 6,030 | 67,594 | |
| Fidelity Series Emerging Markets Fund (a) | 8,667 | 81,903 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 37,113 | 729,649 | |
| Fidelity Series International Growth Fund (a) | 22,225 | 386,053 | |
| Fidelity Series International Small Cap Fund (a) | 5,097 | 85,578 | |
| Fidelity Series International Value Fund (a) | 38,048 | 363,356 | |
| Fidelity Series Overseas Fund (a) | 20,164 | 214,749 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,839,956) | 1,928,882 | ||
| Bond Funds - 55.3% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 11,094 | 107,499 | |
| Fidelity Series Floating Rate High Income Fund (a) | 2,695 | 25,065 | |
| Fidelity Series High Income Fund (a) | 13,424 | 127,532 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 201,377 | 2,050,017 | |
| Fidelity Series International Credit Fund (a) | 1,082 | 11,168 | |
| Fidelity Series Investment Grade Bond Fund (a) | 559,494 | 6,590,840 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 46,248 | 437,042 | |
| Fidelity Series Real Estate Income Fund (a) | 7,306 | 82,414 | |
| TOTAL BOND FUNDS | |||
| (Cost $9,015,906) | 9,431,577 | ||
| Short-Term Funds - 23.3% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 3,188,143 | 3,188,143 | |
| Fidelity Series Short-Term Credit Fund (a) | 78,721 | 797,445 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $3,973,871) | 3,985,588 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $16,536,831) | 17,073,011 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (7,358) | ||
| NET ASSETS - 100% | $17,065,653 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $61,288 | $5,773 | $22,201 | $3,521 | $(4,848) | $6,310 | $46,322 |
| Fidelity Series Blue Chip Growth Fund | 106,571 | 14,451 | 36,846 | 11,037 | 1,784 | (3,202) | 82,758 |
| Fidelity Series Canada Fund | 51,783 | 24,420 | 10,071 | 1,148 | 66 | 1,396 | 67,594 |
| Fidelity Series Commodity Strategy Fund | 643,390 | 111,871 | 127,180 | 9,367 | (5,308) | (25,882) | 596,891 |
| Fidelity Series Emerging Markets Debt Fund | 132,326 | 7,892 | 30,987 | 3,383 | (1,541) | (191) | 107,499 |
| Fidelity Series Emerging Markets Fund | 73,530 | 22,185 | 14,001 | 1,888 | (257) | 446 | 81,903 |
| Fidelity Series Emerging Markets Opportunities Fund | 660,836 | 173,214 | 138,614 | 18,930 | 2,288 | 31,925 | 729,649 |
| Fidelity Series Floating Rate High Income Fund | 27,504 | 1,956 | 4,335 | 741 | (48) | (12) | 25,065 |
| Fidelity Series Government Money Market Fund 1.62% | 3,335,372 | 368,281 | 515,510 | 30,437 | -- | -- | 3,188,143 |
| Fidelity Series Growth Company Fund | 214,319 | 25,569 | 80,588 | 17,586 | 7,874 | (69) | 167,105 |
| Fidelity Series High Income Fund | 138,736 | 10,353 | 21,699 | 4,261 | (190) | 332 | 127,532 |
| Fidelity Series Inflation-Protected Bond Index Fund | 2,358,651 | 198,587 | 541,389 | 25,296 | 7,086 | 27,082 | 2,050,017 |
| Fidelity Series International Credit Fund | 10,580 | 506 | -- | 506 | -- | 82 | 11,168 |
| Fidelity Series International Growth Fund | 478,874 | 31,417 | 152,691 | 13,917 | 10,233 | 18,220 | 386,053 |
| Fidelity Series International Small Cap Fund | 104,187 | 7,845 | 32,003 | 4,205 | 193 | 5,356 | 85,578 |
| Fidelity Series International Value Fund | 443,873 | 42,631 | 132,122 | 15,445 | (4,675) | 13,649 | 363,356 |
| Fidelity Series Intrinsic Opportunities Fund | 261,694 | 41,274 | 102,980 | 12,131 | (1,541) | (490) | 197,957 |
| Fidelity Series Investment Grade Bond Fund | 6,882,047 | 686,303 | 1,167,880 | 100,556 | 8,992 | 181,378 | 6,590,840 |
| Fidelity Series Large Cap Stock Fund | 229,564 | 30,170 | 89,293 | 11,632 | 1,680 | 2,895 | 175,016 |
| Fidelity Series Large Cap Value Index Fund | 65,641 | 6,938 | 24,042 | 3,135 | 1,531 | (1,645) | 48,423 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 695,841 | 79,556 | 360,162 | 37,661 | 38,486 | (16,679) | 437,042 |
| Fidelity Series Opportunistic Insights Fund | 117,772 | 11,575 | 38,136 | 7,748 | 2,272 | (2,780) | 90,703 |
| Fidelity Series Overseas Fund | 16,796 | 187,989 | -- | 687 | -- | 9,964 | 214,749 |
| Fidelity Series Real Estate Income Fund | 87,797 | 7,643 | 13,583 | 3,838 | (21) | 578 | 82,414 |
| Fidelity Series Short-Term Credit Fund | 834,023 | 87,119 | 130,892 | 10,862 | 197 | 6,998 | 797,445 |
| Fidelity Series Small Cap Discovery Fund | 31,622 | 3,014 | 11,964 | 1,041 | (35) | 560 | 23,197 |
| Fidelity Series Small Cap Opportunities Fund | 97,373 | 11,908 | 34,959 | 5,816 | 2,804 | (5,332) | 71,794 |
| Fidelity Series Stock Selector Large Cap Value Fund | 177,106 | 21,429 | 64,518 | 6,851 | (565) | 1,849 | 135,301 |
| Fidelity Series Value Discovery Fund | 126,452 | 12,191 | 47,392 | 3,866 | 277 | (31) | 91,497 |
| $18,465,548 | $2,234,060 | $3,946,038 | $367,492 | $66,734 | $252,707 | $17,073,011 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2005 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $16,536,831) | $17,073,011 | |
| Total Investment in Securities (cost $16,536,831) | $17,073,011 | |
| Cash | 107 | |
| Receivable for investments sold | 130,739 | |
| Total assets | 17,203,857 | |
| Liabilities | ||
| Payable for investments purchased | $128,757 | |
| Payable for fund shares redeemed | 2,740 | |
| Accrued management fee | 6,707 | |
| Total liabilities | 138,204 | |
| Net Assets | $17,065,653 | |
| Net Assets consist of: | ||
| Paid in capital | $16,445,238 | |
| Total accumulated earnings (loss) | 620,415 | |
| Net Assets | $17,065,653 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($17,065,653 ÷ 289,477 shares) | $58.95 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $239,358 | |
| Expenses | ||
| Management fee | $40,838 | |
| Independent trustees' fees and expenses | 33 | |
| Total expenses before reductions | 40,871 | |
| Expense reductions | (1) | |
| Total expenses after reductions | 40,870 | |
| Net investment income (loss) | 198,488 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | 66,734 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 128,134 | |
| Total net realized gain (loss) | 194,868 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 252,707 | |
| Total change in net unrealized appreciation (depreciation) | 252,707 | |
| Net gain (loss) | 447,575 | |
| Net increase (decrease) in net assets resulting from operations | $646,063 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $198,488 | $372,813 |
| Net realized gain (loss) | 194,868 | 268,694 |
| Change in net unrealized appreciation (depreciation) | 252,707 | 196,935 |
| Net increase (decrease) in net assets resulting from operations | 646,063 | 838,442 |
| Distributions to shareholders | (430,863) | (787,475) |
| Share transactions - net increase (decrease) | (1,607,858) | 87,795 |
| Total increase (decrease) in net assets | (1,392,658) | 138,762 |
| Net Assets | ||
| Beginning of period | 18,458,311 | 18,319,549 |
| End of period | $17,065,653 | $18,458,311 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2005 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $58.23 | $58.00 | $64.50 | $60.94 | $61.71 | $59.76 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .670 | 1.189 | 1.002 | .981 | .959 | .910 |
| Net realized and unrealized gain (loss) | 1.508 | 1.525 | .780 | 3.850 | .194 | 2.088 |
| Total from investment operations | 2.178 | 2.714 | 1.782 | 4.831 | 1.153 | 2.998 |
| Distributions from net investment income | (.728) | (1.180) | (.991) | (.912) | (.950) | (.900) |
| Distributions from net realized gain | (.730) | (1.304) | (7.291) | (.359) | (.973) | (.148) |
| Total distributions | (1.458) | (2.484) | (8.282) | (1.271) | (1.923) | (1.048) |
| Net asset value, end of period | $58.95 | $58.23 | $58.00 | $64.50 | $60.94 | $61.71 |
| Total ReturnB,C | 3.78% | 4.93% | 3.00% | 8.05% | 2.03% | 5.05% |
| Ratios to Average Net AssetsD | ||||||
| Expenses before reductions | .47%E | .48% | .49% | .07% | - %F | - %F |
| Expenses net of fee waivers, if any | .47%E | .48% | .49% | .07% | -% | -% |
| Expenses net of all reductions | .47%E | .48% | .49% | .07% | -% | -% |
| Net investment income (loss) | 2.29%E | 2.10% | 1.70% | 1.58% | 1.63% | 1.49% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $17,066 | $18,458 | $17,775 | $20,180 | $28,337 | $26,020 |
| Portfolio turnover rateG | 26%E | 37% | 32% | 102% | 47% | 28% |
A Calculated based on average shares outstanding during the period.
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 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 but do not include expenses of the underlying funds in which the Fund invests.
E Annualized
F Amount represents less than .005%.
G Amounts do not include the activity of Underlying Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2010 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 35.5 |
| Fidelity Series Government Money Market Fund 1.62% | 15.4 |
| Fidelity Series Inflation-Protected Bond Index Fund | 10.5 |
| Fidelity Series Emerging Markets Opportunities Fund | 5.1 |
| Fidelity Series Short-Term Credit Fund | 3.9 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| Fidelity Series International Growth Fund | 3.1 |
| Fidelity Series International Value Fund | 3.0 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 2.6 |
| Fidelity Series Intrinsic Opportunities Fund | 2.1 |
| 84.7 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 15.3% | |
| International Equity Funds | 14.7% | |
| Bond Funds | 50.7% | |
| Short-Term Funds | 19.3% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2010 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 15.3% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 5,663 | $58,951 | |
| Fidelity Series Blue Chip Growth Fund (a) | 6,637 | 102,810 | |
| Fidelity Series Commodity Strategy Fund (a) | 96,701 | 426,453 | |
| Fidelity Series Growth Company Fund (a) | 11,419 | 208,739 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 15,478 | 251,521 | |
| Fidelity Series Large Cap Stock Fund (a) | 14,422 | 222,380 | |
| Fidelity Series Large Cap Value Index Fund (a) | 4,894 | 63,185 | |
| Fidelity Series Opportunistic Insights Fund (a) | 6,169 | 114,381 | |
| Fidelity Series Small Cap Discovery Fund (a) | 2,547 | 29,111 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 6,861 | 94,196 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 13,589 | 169,314 | |
| Fidelity Series Value Discovery Fund (a) | 9,388 | 122,135 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,825,747) | 1,863,176 | ||
| International Equity Funds - 14.7% | |||
| Fidelity Series Canada Fund (a) | 4,653 | 52,157 | |
| Fidelity Series Emerging Markets Fund (a) | 7,453 | 70,435 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 31,660 | 622,436 | |
| Fidelity Series International Growth Fund (a) | 21,969 | 381,603 | |
| Fidelity Series International Small Cap Fund (a) | 5,077 | 85,248 | |
| Fidelity Series International Value Fund (a) | 37,528 | 358,392 | |
| Fidelity Series Overseas Fund (a) | 21,046 | 224,145 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,716,767) | 1,794,416 | ||
| Bond Funds - 50.7% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 7,939 | 76,930 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,931 | 17,954 | |
| Fidelity Series High Income Fund (a) | 9,558 | 90,802 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 125,946 | 1,282,132 | |
| Fidelity Series International Credit Fund (a) | 358 | 3,695 | |
| Fidelity Series Investment Grade Bond Fund (a) | 367,203 | 4,325,651 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 33,086 | 312,660 | |
| Fidelity Series Real Estate Income Fund (a) | 5,180 | 58,429 | |
| TOTAL BOND FUNDS | |||
| (Cost $5,908,830) | 6,168,253 | ||
| Short-Term Funds - 19.3% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 1,879,699 | 1,879,699 | |
| Fidelity Series Short-Term Credit Fund (a) | 46,403 | 470,066 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $2,343,152) | 2,349,765 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $11,794,496) | 12,175,610 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (5,627) | ||
| NET ASSETS - 100% | $12,169,983 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $61,083 | $14,416 | $18,113 | $4,293 | $(2,104) | $3,669 | $58,951 |
| Fidelity Series Blue Chip Growth Fund | 105,808 | 28,078 | 31,262 | 11,660 | 717 | (531) | 102,810 |
| Fidelity Series Canada Fund | 40,326 | 13,204 | 2,609 | 1,039 | 5 | 1,231 | 52,157 |
| Fidelity Series Commodity Strategy Fund | 368,109 | 125,869 | 45,112 | 5,839 | (1,641) | (20,772) | 426,453 |
| Fidelity Series Emerging Markets Debt Fund | 75,757 | 14,880 | 13,089 | 2,167 | (572) | (46) | 76,930 |
| Fidelity Series Emerging Markets Fund | 52,773 | 21,994 | 4,450 | 1,544 | 3 | 115 | 70,435 |
| Fidelity Series Emerging Markets Opportunities Fund | 469,244 | 189,057 | 60,763 | 15,475 | 1,717 | 23,181 | 622,436 |
| Fidelity Series Floating Rate High Income Fund | 15,802 | 3,273 | 1,098 | 476 | 3 | (26) | 17,954 |
| Fidelity Series Government Money Market Fund 1.62% | 1,574,869 | 416,919 | 112,089 | 15,924 | -- | -- | 1,879,699 |
| Fidelity Series Growth Company Fund | 212,368 | 56,166 | 68,534 | 21,394 | 3,434 | 5,305 | 208,739 |
| Fidelity Series High Income Fund | 79,510 | 16,719 | 5,501 | 2,732 | 13 | 61 | 90,802 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,122,159 | 264,094 | 122,317 | 15,265 | 489 | 17,707 | 1,282,132 |
| Fidelity Series International Credit Fund | 3,500 | 168 | -- | 168 | -- | 27 | 3,695 |
| Fidelity Series International Growth Fund | 367,433 | 70,467 | 80,587 | 13,310 | 2,813 | 21,477 | 381,603 |
| Fidelity Series International Small Cap Fund | 80,402 | 18,815 | 18,347 | 4,013 | 253 | 4,125 | 85,248 |
| Fidelity Series International Value Fund | 345,766 | 71,804 | 65,296 | 14,771 | (225) | 6,343 | 358,392 |
| Fidelity Series Intrinsic Opportunities Fund | 259,156 | 76,017 | 81,328 | 13,168 | (619) | (1,705) | 251,521 |
| Fidelity Series Investment Grade Bond Fund | 3,596,304 | 945,558 | 330,324 | 59,237 | 1,010 | 113,103 | 4,325,651 |
| Fidelity Series Large Cap Stock Fund | 227,419 | 58,282 | 69,093 | 12,570 | 799 | 4,973 | 222,380 |
| Fidelity Series Large Cap Value Index Fund | 65,384 | 16,731 | 18,566 | 3,820 | 485 | (849) | 63,185 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 419,621 | 86,083 | 206,087 | 24,591 | 19,756 | (6,713) | 312,660 |
| Fidelity Series Opportunistic Insights Fund | 116,888 | 27,844 | 30,009 | 9,443 | 656 | (998) | 114,381 |
| Fidelity Series Overseas Fund | 20,210 | 195,115 | -- | 640 | -- | 8,820 | 224,145 |
| Fidelity Series Real Estate Income Fund | 50,288 | 11,214 | 3,449 | 2,457 | 11 | 365 | 58,429 |
| Fidelity Series Short-Term Credit Fund | 393,798 | 100,917 | 28,527 | 5,737 | 15 | 3,863 | 470,066 |
| Fidelity Series Small Cap Discovery Fund | 31,754 | 6,483 | 9,627 | 1,268 | (48) | 549 | 29,111 |
| Fidelity Series Small Cap Opportunities Fund | 95,991 | 22,783 | 22,333 | 6,243 | -- | (2,245) | 94,196 |
| Fidelity Series Stock Selector Large Cap Value Fund | 175,565 | 41,013 | 48,307 | 8,342 | (171) | 1,214 | 169,314 |
| Fidelity Series Value Discovery Fund | 125,489 | 33,479 | 36,617 | 4,709 | 121 | (337) | 122,135 |
| $10,552,776 | $2,947,442 | $1,533,434 | $282,295 | $26,920 | $181,906 | $12,175,610 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2010 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $11,794,496) | $12,175,610 | |
| Total Investment in Securities (cost $11,794,496) | $12,175,610 | |
| Cash | 32 | |
| Receivable for investments sold | 105,108 | |
| Total assets | 12,280,750 | |
| Liabilities | ||
| Payable for investments purchased | $96,779 | |
| Payable for fund shares redeemed | 8,819 | |
| Accrued management fee | 5,169 | |
| Total liabilities | 110,767 | |
| Net Assets | $12,169,983 | |
| Net Assets consist of: | ||
| Paid in capital | $11,727,357 | |
| Total accumulated earnings (loss) | 442,626 | |
| Net Assets | $12,169,983 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($12,169,983 ÷ 224,002 shares) | $54.33 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $165,101 | |
| Expenses | ||
| Management fee | $28,441 | |
| Independent trustees' fees and expenses | 20 | |
| Total expenses | 28,461 | |
| Net investment income (loss) | 136,640 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | 26,920 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 117,194 | |
| Total net realized gain (loss) | 144,114 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 181,906 | |
| Total change in net unrealized appreciation (depreciation) | 181,906 | |
| Net gain (loss) | 326,020 | |
| Net increase (decrease) in net assets resulting from operations | $462,660 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $136,640 | $159,818 |
| Net realized gain (loss) | 144,114 | 157,769 |
| Change in net unrealized appreciation (depreciation) | 181,906 | 101,490 |
| Net increase (decrease) in net assets resulting from operations | 462,660 | 419,077 |
| Distributions to shareholders | (300,895) | (320,422) |
| Share transactions - net increase (decrease) | 1,460,177 | 3,158,286 |
| Total increase (decrease) in net assets | 1,621,942 | 3,256,941 |
| Net Assets | ||
| Beginning of period | 10,548,041 | 7,291,100 |
| End of period | $12,169,983 | $10,548,041 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2010 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $53.53 | $53.40 | $60.82 | $57.20 | $58.53 | $56.73 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .661 | 1.026 | .877 | .906 | .897 | .882 |
| Net realized and unrealized gain (loss) | 1.581 | 1.329 | 1.285 | 4.242 | .048 | 2.192 |
| Total from investment operations | 2.242 | 2.355 | 2.162 | 5.148 | .945 | 3.074 |
| Distributions from net investment income | (.673) | (1.028) | (.850) | (.848) | (.893) | (.880) |
| Distributions from net realized gain | (.769) | (1.197) | (8.732) | (.680) | (1.382) | (.394) |
| Total distributions | (1.442) | (2.225) | (9.582) | (1.528) | (2.275) | (1.274) |
| Net asset value, end of period | $54.33 | $53.53 | $53.40 | $60.82 | $57.20 | $58.53 |
| Total ReturnB,C | 4.24% | 4.66% | 3.98% | 9.20% | 1.82% | 5.48% |
| Ratios to Average Net AssetsD | ||||||
| Expenses before reductions | .51%E | .52% | .53% | .08% | - %F | - %F |
| Expenses net of fee waivers, if any | .51%E | .52% | .53% | .08% | -% | -% |
| Expenses net of all reductions | .51%E | .52% | .53% | .08% | -% | -% |
| Net investment income (loss) | 2.45%E | 1.97% | 1.62% | 1.56% | 1.62% | 1.53% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $12,170 | $10,548 | $6,867 | $5,933 | $6,745 | $7,858 |
| Portfolio turnover rateG | 27%E | 32% | 44% | 128% | 24% | 33% |
A Calculated based on average shares outstanding during the period.
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 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 but do not include expenses of the underlying funds in which the Fund invests.
E Annualized
F Amount represents less than .005%.
G Amounts do not include the activity of Underlying Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2015 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 32.0 |
| Fidelity Series Government Money Market Fund 1.62% | 12.2 |
| Fidelity Series Inflation-Protected Bond Index Fund | 9.1 |
| Fidelity Series Emerging Markets Opportunities Fund | 6.0 |
| Fidelity Series International Growth Fund | 4.0 |
| Fidelity Series International Value Fund | 3.8 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| Fidelity Series Short-Term Credit Fund | 3.0 |
| Fidelity Series Intrinsic Opportunities Fund | 3.0 |
| Fidelity Series Large Cap Stock Fund | 2.7 |
| 79.3 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 20.8% | |
| International Equity Funds | 18.4% | |
| Bond Funds | 45.7% | |
| Short-Term Funds | 15.2% | |
| Net Other Assets (Liabilities) | (0.1)% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2015 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 20.8% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 14,607 | $152,063 | |
| Fidelity Series Blue Chip Growth Fund (a) | 17,120 | 265,195 | |
| Fidelity Series Commodity Strategy Fund (a) | 170,222 | 750,680 | |
| Fidelity Series Growth Company Fund (a) | 29,658 | 542,144 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 39,926 | 648,798 | |
| Fidelity Series Large Cap Stock Fund (a) | 37,200 | 573,623 | |
| Fidelity Series Large Cap Value Index Fund (a) | 12,416 | 160,295 | |
| Fidelity Series Opportunistic Insights Fund (a) | 15,914 | 295,041 | |
| Fidelity Series Small Cap Discovery Fund (a) | 6,652 | 76,029 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 17,560 | 241,105 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 35,045 | 436,656 | |
| Fidelity Series Value Discovery Fund (a) | 24,215 | 315,043 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $4,362,571) | 4,456,672 | ||
| International Equity Funds - 18.4% | |||
| Fidelity Series Canada Fund (a) | 10,321 | 115,701 | |
| Fidelity Series Emerging Markets Fund (a) | 15,380 | 145,338 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 65,322 | 1,284,240 | |
| Fidelity Series International Growth Fund (a) | 49,327 | 856,806 | |
| Fidelity Series International Small Cap Fund (a) | 12,463 | 209,256 | |
| Fidelity Series International Value Fund (a) | 85,490 | 816,426 | |
| Fidelity Series Overseas Fund (a) | 47,831 | 509,405 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $3,777,588) | 3,937,172 | ||
| Bond Funds - 45.7% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 14,168 | 137,287 | |
| Fidelity Series Floating Rate High Income Fund (a) | 3,368 | 31,321 | |
| Fidelity Series High Income Fund (a) | 16,809 | 159,685 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 191,564 | 1,950,126 | |
| Fidelity Series International Credit Fund (a) | 474 | 4,894 | |
| Fidelity Series Investment Grade Bond Fund (a) | 580,513 | 6,838,444 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 58,253 | 550,491 | |
| Fidelity Series Real Estate Income Fund (a) | 9,111 | 102,776 | |
| TOTAL BOND FUNDS | |||
| (Cost $9,285,204) | 9,775,024 | ||
| Short-Term Funds - 15.2% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 2,598,003 | 2,598,003 | |
| Fidelity Series Short-Term Credit Fund (a) | 64,137 | 649,707 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $3,236,679) | 3,247,710 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.1% | |||
| (Cost $20,662,042) | 21,416,578 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.1)% | (10,739) | ||
| NET ASSETS - 100% | $21,405,839 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $173,486 | $32,698 | $59,011 | $11,064 | $(8,606) | $13,496 | $152,063 |
| Fidelity Series Blue Chip Growth Fund | 301,123 | 65,950 | 100,143 | 33,496 | (1,538) | (197) | 265,195 |
| Fidelity Series Canada Fund | 102,025 | 19,388 | 8,856 | 2,409 | 53 | 3,091 | 115,701 |
| Fidelity Series Commodity Strategy Fund | 731,122 | 175,247 | 114,505 | 11,280 | (6,814) | (34,370) | 750,680 |
| Fidelity Series Emerging Markets Debt Fund | 150,896 | 21,088 | 32,929 | 4,188 | (1,086) | (682) | 137,287 |
| Fidelity Series Emerging Markets Fund | 122,371 | 42,853 | 20,241 | 3,209 | (382) | 737 | 145,338 |
| Fidelity Series Emerging Markets Opportunities Fund | 1,080,413 | 339,176 | 192,496 | 32,178 | 5,545 | 51,602 | 1,284,240 |
| Fidelity Series Floating Rate High Income Fund | 31,313 | 4,599 | 4,514 | 914 | (45) | (32) | 31,321 |
| Fidelity Series Government Money Market Fund 1.62% | 2,542,683 | 487,068 | 431,748 | 24,262 | -- | -- | 2,598,003 |
| Fidelity Series Growth Company Fund | 605,182 | 124,505 | 214,074 | 55,589 | 5,580 | 20,951 | 542,144 |
| Fidelity Series High Income Fund | 158,549 | 23,716 | 22,635 | 5,268 | (13) | 68 | 159,685 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,766,627 | 420,375 | 264,744 | 24,022 | (53) | 27,921 | 1,950,126 |
| Fidelity Series International Credit Fund | 4,637 | 221 | -- | 221 | -- | 36 | 4,894 |
| Fidelity Series International Growth Fund | 927,956 | 129,338 | 262,936 | 30,073 | 11,305 | 51,143 | 856,806 |
| Fidelity Series International Small Cap Fund | 201,746 | 33,860 | 37,574 | 9,098 | (327) | 11,551 | 209,256 |
| Fidelity Series International Value Fund | 874,808 | 148,610 | 226,574 | 33,380 | (6,204) | 25,786 | 816,426 |
| Fidelity Series Intrinsic Opportunities Fund | 738,709 | 165,293 | 250,016 | 37,584 | (10,655) | 5,467 | 648,798 |
| Fidelity Series Investment Grade Bond Fund | 6,375,720 | 1,331,100 | 1,058,108 | 101,657 | 3,904 | 185,828 | 6,838,444 |
| Fidelity Series Large Cap Stock Fund | 648,169 | 123,614 | 216,010 | 34,546 | 596 | 17,254 | 573,623 |
| Fidelity Series Large Cap Value Index Fund | 185,763 | 32,550 | 57,965 | 9,855 | 1,876 | (1,929) | 160,295 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 854,670 | 142,732 | 476,226 | 45,213 | 50,683 | (21,368) | 550,491 |
| Fidelity Series Opportunistic Insights Fund | 332,773 | 60,937 | 98,462 | 24,359 | 2,643 | (2,850) | 295,041 |
| Fidelity Series Overseas Fund | 66,584 | 418,488 | -- | 1,581 | -- | 24,333 | 509,405 |
| Fidelity Series Real Estate Income Fund | 100,040 | 16,206 | 14,193 | 4,659 | 31 | 692 | 102,776 |
| Fidelity Series Short-Term Credit Fund | 635,788 | 124,266 | 116,152 | 8,683 | 250 | 5,555 | 649,707 |
| Fidelity Series Small Cap Discovery Fund | 89,762 | 13,875 | 29,324 | 3,375 | (1,455) | 3,171 | 76,029 |
| Fidelity Series Small Cap Opportunities Fund | 272,188 | 50,644 | 75,100 | 17,943 | (3,690) | (2,937) | 241,105 |
| Fidelity Series Stock Selector Large Cap Value Fund | 500,196 | 84,058 | 152,665 | 21,533 | (244) | 5,311 | 436,656 |
| Fidelity Series Value Discovery Fund | 357,279 | 66,104 | 109,619 | 12,150 | 1,175 | 104 | 315,043 |
| $20,932,578 | $4,698,559 | $4,646,820 | $603,789 | $42,529 | $389,732 | $21,416,578 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2015 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $20,662,042) | $21,416,578 | |
| Total Investment in Securities (cost $20,662,042) | $21,416,578 | |
| Cash | 1 | |
| Receivable for investments sold | 191,573 | |
| Total assets | 21,608,152 | |
| Liabilities | ||
| Payable for investments purchased | $192,317 | |
| Accrued management fee | 9,996 | |
| Total liabilities | 202,313 | |
| Net Assets | $21,405,839 | |
| Net Assets consist of: | ||
| Paid in capital | $20,545,077 | |
| Total accumulated earnings (loss) | 860,762 | |
| Net Assets | $21,405,839 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($21,405,839 ÷ 355,105 shares) | $60.28 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $318,449 | |
| Expenses | ||
| Management fee | $58,882 | |
| Independent trustees' fees and expenses | 40 | |
| Total expenses | 58,922 | |
| Net investment income (loss) | 259,527 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | 42,529 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 285,340 | |
| Total net realized gain (loss) | 327,869 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 389,732 | |
| Total change in net unrealized appreciation (depreciation) | 389,732 | |
| Net gain (loss) | 717,601 | |
| Net increase (decrease) in net assets resulting from operations | $977,128 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $259,527 | $329,918 |
| Net realized gain (loss) | 327,869 | 378,059 |
| Change in net unrealized appreciation (depreciation) | 389,732 | 119,560 |
| Net increase (decrease) in net assets resulting from operations | 977,128 | 827,537 |
| Distributions to shareholders | (673,653) | (614,135) |
| Share transactions - net increase (decrease) | 179,910 | 6,026,190 |
| Total increase (decrease) in net assets | 483,385 | 6,239,592 |
| Net Assets | ||
| Beginning of period | 20,922,454 | 14,682,862 |
| End of period | $21,405,839 | $20,922,454 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2015 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $59.41 | $59.14 | $64.98 | $60.62 | $62.01 | $59.79 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .725 | 1.093 | .869 | .950 | .938 | .907 |
| Net realized and unrealized gain (loss) | 2.028 | 1.336 | 2.076 | 5.023 | (.057) | 2.472 |
| Total from investment operations | 2.753 | 2.429 | 2.945 | 5.973 | .881 | 3.379 |
| Distributions from net investment income | (.787) | (1.092) | (.877) | (.906) | (.934) | (.885) |
| Distributions from net realized gain | (1.096) | (1.067) | (7.908) | (.707) | (1.337) | (.274) |
| Total distributions | (1.883) | (2.159) | (8.785) | (1.613) | (2.271) | (1.159) |
| Net asset value, end of period | $60.28 | $59.41 | $59.14 | $64.98 | $60.62 | $62.01 |
| Total ReturnB,C | 4.70% | 4.36% | 5.00% | 10.08% | 1.62% | 5.70% |
| Ratios to Average Net AssetsD | ||||||
| Expenses before reductions | .55%E | .57% | .58% | .09% | - %F | - %F |
| Expenses net of fee waivers, if any | .55%E | .57% | .58% | .09% | -% | -% |
| Expenses net of all reductions | .55%E | .57% | .57% | .09% | -% | -% |
| Net investment income (loss) | 2.43%E | 1.89% | 1.47% | 1.53% | 1.61% | 1.48% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $21,406 | $20,922 | $13,754 | $7,287 | $9,061 | $9,298 |
| Portfolio turnover rateG | 43%E | 28% | 44% | 115% | 27% | 20% |
A Calculated based on average shares outstanding during the period.
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 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 but do not include expenses of the underlying funds in which the Fund invests.
E Annualized
F Amount represents less than .005%.
G Amounts do not include the activity of Underlying Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2020 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 28.2 |
| Fidelity Series Government Money Market Fund 1.62% | 8.8 |
| Fidelity Series Inflation-Protected Bond Index Fund | 7.9 |
| Fidelity Series Emerging Markets Opportunities Fund | 6.9 |
| Fidelity Series International Growth Fund | 5.0 |
| Fidelity Series International Value Fund | 4.8 |
| Fidelity Series Intrinsic Opportunities Fund | 4.0 |
| Fidelity Series Large Cap Stock Fund | 3.5 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| Fidelity Series Growth Company Fund | 3.3 |
| 75.9 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 26.4% | |
| International Equity Funds | 22.1% | |
| Bond Funds | 40.6% | |
| Short-Term Funds | 11.0% | |
| Net Other Assets (Liabilities) | (0.1)% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2020 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 26.4% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 46,042 | $479,298 | |
| Fidelity Series Blue Chip Growth Fund (a) | 53,963 | 835,889 | |
| Fidelity Series Commodity Strategy Fund (a) | 407,035 | 1,795,025 | |
| Fidelity Series Growth Company Fund (a) | 92,841 | 1,697,133 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 125,844 | 2,044,969 | |
| Fidelity Series Large Cap Stock Fund (a) | 117,253 | 1,808,036 | |
| Fidelity Series Large Cap Value Index Fund (a) | 39,184 | 505,860 | |
| Fidelity Series Opportunistic Insights Fund (a) | 51,497 | 954,752 | |
| Fidelity Series Small Cap Discovery Fund (a) | 20,732 | 236,970 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 54,022 | 741,727 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 111,036 | 1,383,508 | |
| Fidelity Series Value Discovery Fund (a) | 76,326 | 993,002 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $13,287,336) | 13,476,169 | ||
| International Equity Funds - 22.1% | |||
| Fidelity Series Canada Fund (a) | 32,197 | 360,926 | |
| Fidelity Series Emerging Markets Fund (a) | 42,233 | 399,101 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 179,371 | 3,526,433 | |
| Fidelity Series International Growth Fund (a) | 147,115 | 2,555,396 | |
| Fidelity Series International Small Cap Fund (a) | 33,957 | 570,137 | |
| Fidelity Series International Value Fund (a) | 258,228 | 2,466,073 | |
| Fidelity Series Overseas Fund (a) | 131,726 | 1,402,883 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $10,917,720) | 11,280,949 | ||
| Bond Funds - 40.6% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 33,994 | 329,404 | |
| Fidelity Series Floating Rate High Income Fund (a) | 8,038 | 74,754 | |
| Fidelity Series High Income Fund (a) | 39,914 | 379,181 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 395,165 | 4,022,780 | |
| Fidelity Series International Credit Fund (a) | 1,096 | 11,313 | |
| Fidelity Series Investment Grade Bond Fund (a) | 1,222,680 | 14,403,165 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 139,409 | 1,317,416 | |
| Fidelity Series Real Estate Income Fund (a) | 21,648 | 244,186 | |
| TOTAL BOND FUNDS | |||
| (Cost $19,814,130) | 20,782,199 | ||
| Short-Term Funds - 11.0% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 4,504,067 | 4,504,067 | |
| Fidelity Series Short-Term Credit Fund (a) | 111,190 | 1,126,350 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $5,611,062) | 5,630,417 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.1% | |||
| (Cost $49,630,248) | 51,169,734 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.1)% | (26,782) | ||
| NET ASSETS - 100% | $51,142,952 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $463,870 | $124,698 | $121,607 | $33,673 | $(3,767) | $16,104 | $479,298 |
| Fidelity Series Blue Chip Growth Fund | 806,769 | 243,236 | 218,736 | 89,689 | (1,799) | 6,419 | 835,889 |
| Fidelity Series Canada Fund | 255,287 | 123,659 | 25,284 | 6,952 | (60) | 7,324 | 360,926 |
| Fidelity Series Commodity Strategy Fund | 1,504,782 | 555,707 | 170,607 | 24,447 | (10,376) | (84,481) | 1,795,025 |
| Fidelity Series Emerging Markets Debt Fund | 308,903 | 69,395 | 46,760 | 8,955 | (1,842) | (292) | 329,404 |
| Fidelity Series Emerging Markets Fund | 288,808 | 132,442 | 22,583 | 8,500 | (450) | 884 | 399,101 |
| Fidelity Series Emerging Markets Opportunities Fund | 2,556,491 | 1,088,293 | 250,126 | 85,217 | 5,692 | 126,083 | 3,526,433 |
| Fidelity Series Floating Rate High Income Fund | 64,344 | 15,275 | 4,772 | 1,956 | 2 | (95) | 74,754 |
| Fidelity Series Government Money Market Fund 1.62% | 4,018,218 | 1,160,114 | 674,265 | 37,870 | -- | -- | 4,504,067 |
| Fidelity Series Growth Company Fund | 1,623,646 | 483,595 | 479,218 | 169,260 | 10,840 | 58,270 | 1,697,133 |
| Fidelity Series High Income Fund | 325,224 | 77,863 | 24,099 | 11,263 | (34) | 227 | 379,181 |
| Fidelity Series Inflation-Protected Bond Index Fund | 2,749,667 | 1,483,433 | 263,517 | 46,771 | 161 | 53,036 | 4,022,780 |
| Fidelity Series International Credit Fund | 10,717 | 515 | -- | 515 | -- | 81 | 11,313 |
| Fidelity Series International Growth Fund | 2,303,548 | 517,896 | 427,068 | 86,760 | 11,334 | 149,686 | 2,555,396 |
| Fidelity Series International Small Cap Fund | 490,070 | 171,960 | 118,523 | 26,153 | (286) | 26,916 | 570,137 |
| Fidelity Series International Value Fund | 2,189,045 | 558,685 | 318,084 | 96,287 | (4,547) | 40,974 | 2,466,073 |
| Fidelity Series Intrinsic Opportunities Fund | 1,982,230 | 608,619 | 528,663 | 102,402 | (10,689) | (6,528) | 2,044,969 |
| Fidelity Series Investment Grade Bond Fund | 11,465,246 | 3,770,461 | 1,202,702 | 192,656 | 6,557 | 363,603 | 14,403,165 |
| Fidelity Series Large Cap Stock Fund | 1,738,995 | 469,306 | 448,289 | 96,342 | (3,309) | 51,333 | 1,808,036 |
| Fidelity Series Large Cap Value Index Fund | 496,851 | 124,147 | 112,731 | 29,967 | 1,667 | (4,074) | 505,860 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 1,807,062 | 428,347 | 973,877 | 103,696 | 95,166 | (39,282) | 1,317,416 |
| Fidelity Series Opportunistic Insights Fund | 891,770 | 244,539 | 179,997 | 74,130 | 938 | (2,498) | 954,752 |
| Fidelity Series Overseas Fund | 209,456 | 1,130,798 | -- | 4,175 | -- | 62,629 | 1,402,883 |
| Fidelity Series Real Estate Income Fund | 205,864 | 51,726 | 15,028 | 10,026 | (30) | 1,654 | 244,186 |
| Fidelity Series Short-Term Credit Fund | 1,004,706 | 283,176 | 171,043 | 13,664 | 353 | 9,158 | 1,126,350 |
| Fidelity Series Small Cap Discovery Fund | 238,925 | 54,164 | 60,071 | 10,263 | (1,010) | 4,962 | 236,970 |
| Fidelity Series Small Cap Opportunities Fund | 727,677 | 191,511 | 161,776 | 47,859 | (81) | (15,604) | 741,727 |
| Fidelity Series Stock Selector Large Cap Value Fund | 1,341,549 | 337,602 | 304,082 | 65,526 | (7,215) | 15,654 | 1,383,508 |
| Fidelity Series Value Discovery Fund | 957,599 | 260,700 | 223,740 | 36,979 | (357) | (1,200) | 993,002 |
| $43,027,319 | $14,761,862 | $7,547,248 | $1,521,953 | $86,858 | $840,943 | $51,169,734 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2020 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $49,630,248) | $51,169,734 | |
| Total Investment in Securities (cost $49,630,248) | $51,169,734 | |
| Cash | 187 | |
| Receivable for investments sold | 466,317 | |
| Receivable for fund shares sold | 55,206 | |
| Total assets | 51,691,444 | |
| Liabilities | ||
| Payable for investments purchased | $493,074 | |
| Payable for fund shares redeemed | 30,000 | |
| Accrued management fee | 25,418 | |
| Total liabilities | 548,492 | |
| Net Assets | $51,142,952 | |
| Net Assets consist of: | ||
| Paid in capital | $49,362,551 | |
| Total accumulated earnings (loss) | 1,780,401 | |
| Net Assets | $51,142,952 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($51,142,952 ÷ 841,760 shares) | $60.76 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $758,171 | |
| Expenses | ||
| Management fee | $138,249 | |
| Independent trustees' fees and expenses | 83 | |
| Total expenses before reductions | 138,332 | |
| Expense reductions | (1) | |
| Total expenses after reductions | 138,331 | |
| Net investment income (loss) | 619,840 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 26 | |
| Affiliated issuers | 86,858 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 763,782 | |
| Total net realized gain (loss) | 850,666 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 840,943 | |
| Total change in net unrealized appreciation (depreciation) | 840,943 | |
| Net gain (loss) | 1,691,609 | |
| Net increase (decrease) in net assets resulting from operations | $2,311,449 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2020 (Unaudited) | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $619,840 | $608,831 |
| Net realized gain (loss) | 850,666 | 810,909 |
| Change in net unrealized appreciation (depreciation) | 840,943 | 312,645 |
| Net increase (decrease) in net assets resulting from operations | 2,311,449 | 1,732,385 |
| Distributions to shareholders | (1,651,277) | (1,151,851) |
| Share transactions - net increase (decrease) | 7,477,363 | 14,825,901 |
| Total increase (decrease) in net assets | 8,137,535 | 15,406,435 |
| Net Assets | ||
| Beginning of period | 43,005,417 | 27,598,982 |
| End of period | $51,142,952 | $43,005,417 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2020 Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $59.88 | $59.80 | $64.06 | $59.21 | $60.89 | $59.04 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .811 | 1.031 | .813 | .924 | .928 | .898 |
| Net realized and unrealized gain (loss) | 2.229 | 1.221 | 2.708 | 5.363 | (.202) | 2.584 |
| Total from investment operations | 3.040 | 2.252 | 3.521 | 6.287 | .726 | 3.482 |
| Distributions from net investment income | (.824) | (1.061) | (.810) | (.882) | (.915) | (.891) |
| Distributions from net realized gain | (1.336) | (1.111) | (6.971) | (.555) | (1.491) | (.741) |
| Total distributions | (2.160) | (2.172) | (7.781) | (1.437) | (2.406) | (1.632) |
| Net asset value, end of period | $60.76 | $59.88 | $59.80 | $64.06 | $59.21 | $60.89 |
| Total ReturnB,C | 5.16% | 4.04% | 6.01% | 10.83% | 1.41% | 5.98% |
| Ratios to Average Net AssetsD | ||||||
| Expenses before reductions | .60%E | .61% | .62% | .10% | - %F | - %F |
| Expenses net of fee waivers, if any | .60%E | .61% | .62% | .10% | -% | -% |
| Expenses net of all reductions | .60%E | .61% | .62% | .10% | -% | -% |
| Net investment income (loss) | 2.69%E | 1.78% | 1.37% | 1.52% | 1.63% | 1.50% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $51,143 | $43,005 | $26,667 | $7,449 | $8,744 | $9,019 |
| Portfolio turnover rateG | 33%E | 29% | 29% | 118% | 29% | 31% |
A Calculated based on average shares outstanding during the period.
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 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 but do not include expenses of the underlying funds in which the Fund invests.
E Annualized
F Amount represents less than .005%.
G Amounts do not include the activity of Underlying Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2025 Fund℠
Investment Summary (Unaudited)
The information in the following tables is based on the direct investments of the Fund.Top Holdings as of January 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 25.0 |
| Fidelity Series Emerging Markets Opportunities Fund | 7.6 |
| Fidelity Series Inflation-Protected Bond Index Fund | 6.8 |
| Fidelity Series Government Money Market Fund 1.62% | 6.1 |
| Fidelity Series International Growth Fund | 5.5 |
| Fidelity Series International Value Fund | 5.4 |
| Fidelity Series Intrinsic Opportunities Fund | 4.8 |
| Fidelity Series Large Cap Stock Fund | 4.2 |
| Fidelity Series Growth Company Fund | 4.0 |
| Fidelity Series Commodity Strategy Fund | 3.5 |
| 72.9 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 30.9% | |
| International Equity Funds | 25.1% | |
| Bond Funds | 36.4% | |
| Short-Term Funds | 7.6% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2025 Fund℠
Schedule of Investments January 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 30.9% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 4,123 | $42,917 | |
| Fidelity Series Blue Chip Growth Fund (a) | 4,835 | 74,893 | |
| Fidelity Series Commodity Strategy Fund (a) | 30,410 | 134,109 | |
| Fidelity Series Growth Company Fund (a) | 8,317 | 152,030 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 11,273 | 183,187 | |
| Fidelity Series Large Cap Stock Fund (a) | 10,502 | 161,933 | |
| Fidelity Series Large Cap Value Index Fund (a) | 3,527 | 45,539 | |
| Fidelity Series Opportunistic Insights Fund (a) | 4,596 | 85,219 | |
| Fidelity Series Small Cap Discovery Fund (a) | 1,862 | 21,280 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 4,839 | 66,435 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 9,945 | 123,920 | |
| Fidelity Series Value Discovery Fund (a) | 6,831 | 88,869 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,177,361) | 1,180,331 | ||
| International Equity Funds - 25.1% | |||
| Fidelity Series Canada Fund (a) | 3,392 | 38,023 | |
| Fidelity Series Emerging Markets Fund (a) | 3,492 | 32,998 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 14,846 | 291,869 | |
| Fidelity Series International Growth Fund (a) | 12,161 | 211,242 | |
| Fidelity Series International Small Cap Fund (a) | 2,964 | 49,765 | |
| Fidelity Series International Value Fund (a) | 21,638 | 206,643 | |
| Fidelity Series Overseas Fund (a) | 12,011 | 127,919 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $947,974) | 958,459 | ||
| Bond Funds - 36.4% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 2,518 | 24,399 | |
| Fidelity Series Floating Rate High Income Fund (a) | 610 | 5,673 | |
| Fidelity Series High Income Fund (a) | 3,000 | 28,498 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 25,423 | 258,807 | |
| Fidelity Series International Credit Fund (a) | 185 | 1,910 | |
| Fidelity Series Investment Grade Bond Fund (a) | 81,076 | 955,077 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 10,374 | 98,038 | |
| Fidelity Series Real Estate Income Fund (a) | 1,599 | 18,037 | |
| TOTAL BOND FUNDS | |||
| (Cost $1,376,173) | 1,390,439 | ||
| Short-Term Funds - 7.6% | |||
| Fidelity Series Government Money Market Fund 1.62% (a)(b) | 233,394 | 233,394 | |
| Fidelity Series Short-Term Credit Fund (a) | 5,760 | 58,353 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $291,506) | 291,747 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $3,793,014) | 3,820,976 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (1,719) | ||
| NET ASSETS - 100% | $3,819,257 |
Legend
(a) Affiliated Fund
(b) The rate quoted is the annualized seven-day yield of the fund at period end.
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 | $177 |
| Total | $177 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Fidelity Series All-Sector Equity Fund | $-- | $46,157 | $3,741 | $2,060 | $1 | $500 | $42,917 |
| Fidelity Series Blue Chip Growth Fund | -- | 78,546 | 6,863 | 2,889 | (94) | 3,304 | 74,893 |
| Fidelity Series Canada Fund | -- | 37,874 | 45 | 410 | -- | 194 | 38,023 |
| Fidelity Series Commodity Strategy Fund | -- | 142,332 | 2,612 | 882 | (3) | (5,608) | 134,109 |
| Fidelity Series Corporate Bond Fund | -- | 54,300 | 54,350 | -- | 50 | -- | -- |
| Fidelity Series Emerging Markets Debt Fund | -- | 25,629 | 1,730 | 321 | 7 | 493 | 24,399 |
| Fidelity Series Emerging Markets Fund | -- | 33,027 | 78 | 480 | -- | 49 | 32,998 |
| Fidelity Series Emerging Markets Opportunities Fund | -- | 291,042 | 2,057 | 4,840 | 2 | 2,882 | 291,869 |
| Fidelity Series Floating Rate High Income Fund | -- | 5,661 | 6 | 72 | -- | 18 | 5,673 |
| Fidelity Series Government Bond Index Fund | -- | 75,400 | 75,330 | -- | (70) | -- | -- |
| Fidelity Series Government Money Market Fund 1.62% | -- | 239,263 | 5,869 | 884 | -- | -- | 233,394 |
| Fidelity Series Growth Company Fund | -- | 164,118 | 15,227 | 10,439 | (71) | 3,210 | 152,030 |
| Fidelity Series High Income Fund | -- | 28,462 | 32 | 405 | -- | 68 | 28,498 |
| Fidelity Series Inflation-Protected Bond Index Fund | -- | 257,206 | 286 | 2,101 | (2) | 1,889 | 258,807 |
| Fidelity Series International Credit Fund | -- | 1,920 | 2 | 57 | -- | (8) | 1,910 |
| Fidelity Series International Growth Fund | -- | 210,172 | 4,234 | 5,108 | (6) | 5,310 | 211,242 |
| Fidelity Series International Small Cap Fund | -- | 53,152 | 4,080 | 1,541 | (4) | 697 | 49,765 |
| Fidelity Series International Value Fund | -- | 210,597 | 3,053 | 5,668 | 107 | (1,008) | 206,643 |
| Fidelity Series Intrinsic Opportunities Fund | -- | 200,464 | 16,164 | 3,712 | 92 | (1,205) | 183,187 |
| Fidelity Series Investment Grade Bond Fund | -- | 943,248 | 1,241 | 6,318 | (9) | 13,079 | 955,077 |
| Fidelity Series Investment Grade Securitized Fund | -- | 53,800 | 53,748 | -- | (52) | -- | -- |
| Fidelity Series Large Cap Stock Fund | -- | 172,562 | 14,191 | 2,519 | 156 | 3,406 | 161,933 |
| Fidelity Series Large Cap Value Index Fund | -- | 49,246 | 3,266 | 1,833 | (17) | (424) | 45,539 |
| Fidelity Series Long-Term Treasury Bond Index Fund | -- | 127,071 | 26,888 | 4,976 | (808) | (1,337) | 98,038 |
| Fidelity Series Opportunistic Insights Fund | -- | 90,638 | 5,874 | 4,532 | (55) | 510 | 85,219 |
| Fidelity Series Overseas Fund | -- | 125,667 | 109 | 247 | -- | 2,361 | 127,919 |
| Fidelity Series Real Estate Income Fund | -- | 17,993 | 20 | 378 | -- | 64 | 18,037 |
| Fidelity Series Short-Term Credit Fund | -- | 60,779 | 2,666 | 342 | (1) | 241 | 58,353 |
| Fidelity Series Small Cap Discovery Fund | -- | 22,794 | 1,591 | 612 | 9 | 68 | 21,280 |
| Fidelity Series Small Cap Opportunities Fund | -- | 69,654 | 3,603 | 1,520 | (21) | 405 | 66,435 |
| Fidelity Series Stock Selector Large Cap Value Fund | -- | 133,197 | 9,071 | 4,004 | (4) | (202) | 123,920 |
| Fidelity Series Treasury Bill Index Fund | -- | 32,800 | 32,800 | -- | -- | -- | -- |
| Fidelity Series Value Discovery Fund | -- | 96,676 | 6,852 | 2,261 | 39 | (994) | 88,869 |
| $-- | $4,151,447 | $357,679 | $71,411 | $(754) | $27,962 | $3,820,976 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2025 Fund℠
Financial Statements
Statement of Assets and Liabilities
| January 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $3,793,014) | $3,820,976 | |
| Total Investment in Securities (cost $3,793,014) | $3,820,976 | |
| Cash | 1 | |
| Receivable for fund shares sold | 267,631 | |
| Total assets | 4,088,608 | |
| Liabilities | ||
| Payable for investments purchased | $267,681 | |
| Accrued management fee | 1,670 | |
| Total liabilities | 269,351 | |
| Net Assets | $3,819,257 | |
| Net Assets consist of: | ||
| Paid in capital | $3,763,212 | |
| Total accumulated earnings (loss) | 56,045 | |
| Net Assets | $3,819,257 | |
| Net Asset Value, offering price and redemption price per share ($3,819,257 ÷ 362,716 shares) | $10.53 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| For the period August 16, 2019 (commencement of operations) to January 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $34,291 | |
| Income from Fidelity Central Funds | 177 | |
| Total income | 34,468 | |
| Expenses | ||
| Management fee | $5,434 | |
| Independent trustees' fees and expenses | 2 | |
| Total expenses | 5,436 | |
| Net investment income (loss) | 29,032 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | (682) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 37,120 | |
| Total net realized gain (loss) | 36,438 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 27,962 | |
| Total change in net unrealized appreciation (depreciation) | 27,962 | |
| Net gain (loss) | 64,400 | |
| Net increase (decrease) in net assets resulting from operations | $93,432 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| For the period August 16, 2019 (commencement of operations) to January 31, 2020 (Unaudited) | |
| Increase (Decrease) in Net Assets | |
| Operations | |
| Net investment income (loss) | $29,032 |
| Net realized gain (loss) | 36,438 |
| Change in net unrealized appreciation (depreciation) | 27,962 |
| Net increase (decrease) in net assets resulting from operations | 93,432 |
| Distributions to shareholders | (37,387) |
| Share transactions | |
| Proceeds from sales of shares | 3,728,817 |
| Reinvestment of distributions | 37,084 |
| Cost of shares redeemed | (2,689) |
| Net increase (decrease) in net assets resulting from share transactions | 3,763,212 |
| Total increase (decrease) in net assets | 3,819,257 |
| Net Assets | |
| Beginning of period | – |
| End of period | $3,819,257 |
| Other Information | |
| Shares | |
| Sold | 359,456 |
| Issued in reinvestment of distributions | 3,511 |
| Redeemed | (251) |
| Net increase (decrease) | 362,716 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2025 Fund
| Six months ended (Unaudited) January 31, | |
| 2020 A | |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .163 |
| Net realized and unrealized gain (loss) | .523 |
| Total from investment operations | .686 |
| Distributions from net investment income | (.120) |
| Distributions from net realized gain | (.036) |
| Total distributions | (.156) |
| Net asset value, end of period | $10.53 |
| Total ReturnC | 6.86% |
| Ratios to Average Net AssetsD | |
| Expenses before reductions | .64%E |
| Expenses net of fee waivers, if any | .64%E |
| Expenses net of all reductions | .64%E |
| Net investment income (loss) | 3.42%E |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $3,819 |
| Portfolio turnover rateF | 18%G |
A For the period August 16, 2019 (commencement of operations) to January 31, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D 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. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the underlying funds in which the Fund invests.
E Annualized
F Amounts do not include the activity of Underlying Funds.
G Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2020
1. Organization.
Fidelity Simplicity RMD Income Fund, Fidelity Simplicity RMD 2005 Fund, Fidelity Simplicity RMD 2010 Fund, Fidelity Simplicity RMD 2015 Fund, Fidelity Simplicity RMD 2020 Fund and Fidelity Simplicity RMD 2025 Fund (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 LLC (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 a systematic withdrawal plan, starting after the horizon date indicated by its name, resulting in the gradual liquidation of the shareholder's investment in the Fund.
Effective after the close of business July 26, 2019, each Fund's publicly offered shares classes were consolidated into a single share class. The surviving class is Fidelity Simplicity RMD Income Fund, Fidelity Simplicity RMD 2005 Fund, Fidelity Simplicity RMD 2010 Fund, Fidelity Simplicity RMD 2015 Fund and Fidelity Simplicity RMD 2020 Fund. All prior fiscal period dollar and share amounts for the classes that closed, which are presented in the Notes to Financial Statements, are for the period August 1, 2018 through July 26, 2019.
Effective January 1, 2020, investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists each of the Underlying Funds as an investment of the Fund but does not include the underlying holdings of each Underlying Fund. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by the each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each 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 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. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee. 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 and may include proceeds from litigation. 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. Although not included in each Fund's expenses, each Fund indirectly bears its proportionate share of the Underlying Funds' expenses through the impact of these expenses on each Underlying Fund's NAV. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | |
| Fidelity Simplicity RMD Income Fund | $23,070,936 | $832,927 | $(121,900) | $711,027 |
| Fidelity Simplicity RMD 2005 Fund | 16,562,447 | 622,523 | (111,959) | 510,564 |
| Fidelity Simplicity RMD 2010 Fund | 11,816,766 | 438,115 | (79,271) | 358,844 |
| Fidelity Simplicity RMD 2015 Fund | 20,713,286 | 911,668 | (208,376) | 703,292 |
| Fidelity Simplicity RMD 2020 Fund | 49,887,091 | 2,006,769 | (724,126) | 1,282,643 |
| Fidelity Simplicity RMD 2025 Fund | 3,794,265 | 64,528 | (37,817) | 26,711 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Simplicity RMD Income Fund | 5,228,432 | 3,014,504 |
| Fidelity Simplicity RMD 2005 Fund | 2,234,060 | 3,946,038 |
| Fidelity Simplicity RMD 2010 Fund | 2,947,442 | 1,533,434 |
| Fidelity Simplicity RMD 2015 Fund | 4,698,559 | 4,646,820 |
| Fidelity Simplicity RMD 2020 Fund | 14,761,862 | 7,547,248 |
| Fidelity Simplicity RMD 2025 Fund | 4,151,447 | 357,679 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Funds with investment management related services. Under the management contract, each Fund pays a monthly management fee that is set at an annual rate by referring to each Fund's horizon date indicated by its name, such that the management fee rate applicable to each Fund is reduced as the fund approaches, and then passes, its horizon date. In addition, the investment adviser pays all ordinary operating expenses of each Fund, except fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
For the reporting period, the total annual management fee rate for each Fund was as follows:
| Fidelity Simplicity RMD Income Fund | .46% |
| Fidelity Simplicity RMD 2005 Fund | .47% |
| Fidelity Simplicity RMD 2010 Fund | .51% |
| Fidelity Simplicity RMD 2015 Fund | .55% |
| Fidelity Simplicity RMD 2020 Fund | .60% |
| Fidelity Simplicity RMD 2025 Fund | .64% |
Interfund Trades. The Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed certain Funds for certain losses, which are included in Net Realized Gain (Loss) in each Fund's accompanying Statement of Operations, as follows:
| Fidelity Simplicity RMD 2025 Fund | $72 |
6. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's or class' expenses. All of the applicable expense reductions are noted in the table below.
| Custodian credits | |
| Fidelity Simplicity RMD 2005 Fund | $1 |
| Fidelity Simplicity RMD 2020 Fund | 1 |
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2020 | Year ended July 31, 2019 | |
| Fidelity Simplicity RMD Income Fund | ||
| Distributions to shareholders | ||
| Class A | $– | $6,375 |
| Class M | – | 3,305 |
| Class C | – | 2,558 |
| Fidelity Simplicity RMD Income | 477,157 | 467,916 |
| Class I | – | 1,273 |
| Total | $477,157 | $481,427 |
| Fidelity Simplicity RMD 2005 Fund | ||
| Distributions to shareholders | ||
| Class A | $– | $4,867 |
| Class M | – | 13,062 |
| Class C | – | 753 |
| Fidelity Simplicity RMD 2005 | 430,863 | 767,462 |
| Class I | – | 1,331 |
| Total | $430,863 | $787,475 |
| Fidelity Simplicity RMD 2010 Fund | ||
| Distributions to shareholders | ||
| Class A | $– | $8,187 |
| Class M | – | 884 |
| Class C | – | 4,198 |
| Fidelity Simplicity RMD 2010 | 300,895 | 304,459 |
| Class I | – | 2,694 |
| Total | $300,895 | $320,422 |
| Fidelity Simplicity RMD 2015 Fund | ||
| Distributions to shareholders | ||
| Class A | $– | $10,845 |
| Class M | – | 14,930 |
| Class C | – | 2,360 |
| Fidelity Simplicity RMD 2015 | 673,653 | 585,582 |
| Class I | – | 418 |
| Total | $673,653 | $614,135 |
| Fidelity Simplicity RMD 2020 Fund | ||
| Distributions to shareholders | ||
| Class A | $– | $1,413 |
| Class M | – | 20,845 |
| Class C | – | 3,697 |
| Fidelity Simplicity RMD 2020 | 1,651,277 | 1,123,264 |
| Class I | – | 2,632 |
| Total | $1,651,277 | $1,151,851 |
8. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended January 31, 2020 | Year endedJuly 31, 2019 | Six months ended January 31, 2020 | Year endedJuly 31, 2019 | |
| Fidelity Simplicity RMD Income Fund | ||||
| Class A | ||||
| Shares sold | – | 2,079 | $– | $118,671 |
| Reinvestment of distributions | – | 96 | – | 5,420 |
| Shares redeemed | – | (5,603) | – | (327,812) |
| Net increase (decrease) | – | (3,428) | $– | $(203,721) |
| Class M | ||||
| Reinvestment of distributions | – | 35 | $– | $1,941 |
| Shares redeemed | – | (2,191) | – | (127,972) |
| Net increase (decrease) | – | (2,156) | $– | $(126,031) |
| Class C | ||||
| Shares sold | – | 176 | $– | $10,000 |
| Reinvestment of distributions | – | 46 | – | 2,558 |
| Shares redeemed | – | (2,374) | – | (135,024) |
| Net increase (decrease) | – | (2,152) | $– | $(122,466) |
| Fidelity Simplicity RMD Income | ||||
| Shares sold | 63,317 | 203,764 | $3,737,868 | $11,675,868 |
| Reinvestment of distributions | 7,153 | 7,265 | 421,671 | 408,908 |
| Shares redeemed | (32,190) | (83,303) | (1,904,673) | (4,752,024) |
| Net increase (decrease) | 38,280 | 127,726 | $2,254,866 | $7,332,752 |
| Class I | ||||
| Reinvestment of distributions | – | 18 | $– | $1,015 |
| Shares redeemed | – | (925) | – | (53,278) |
| Net increase (decrease) | – | (907) | $– | $(52,263) |
| Fidelity Simplicity RMD 2005 Fund | ||||
| Class A | ||||
| Shares sold | – | 347 | $– | $19,737 |
| Reinvestment of distributions | – | 87 | – | 4,867 |
| Shares redeemed | – | (2,523) | – | (146,643) |
| Net increase (decrease) | – | (2,089) | $– | $(122,039) |
| Class M | ||||
| Reinvestment of distributions | – | 226 | $– | $12,622 |
| Shares redeemed | – | (6,559) | – | (377,437) |
| Net increase (decrease) | – | (6,333) | $– | $(364,815) |
| Class C | ||||
| Shares sold | – | 176 | $– | $10,000 |
| Reinvestment of distributions | – | 14 | – | 753 |
| Shares redeemed | – | (578) | – | (33,026) |
| Net increase (decrease) | – | (388) | $– | $(22,273) |
| Fidelity Simplicity RMD 2005 | ||||
| Shares sold | 17,354 | 78,317 | $1,019,729 | $4,483,268 |
| Reinvestment of distributions | 6,501 | 12,230 | 379,915 | 684,031 |
| Shares redeemed | (51,358) | (80,032) | (3,007,502) | (4,537,100) |
| Net increase (decrease) | (27,503) | 10,515 | $(1,607,858) | $630,199 |
| Class I | ||||
| Reinvestment of distributions | – | 24 | $– | $1,331 |
| Shares redeemed | – | (599) | – | (34,608) |
| Net increase (decrease) | – | (575) | $– | $(33,277) |
| Fidelity Simplicity RMD 2010 Fund | ||||
| Class A | ||||
| Shares sold | – | 118 | $– | $6,127 |
| Reinvestment of distributions | – | 160 | – | 8,187 |
| Shares redeemed | – | (4,149) | – | (222,389) |
| Net increase (decrease) | – | (3,871) | $– | $(208,075) |
| Class M | ||||
| Reinvestment of distributions | – | 17 | $– | $884 |
| Shares redeemed | – | (462) | – | (24,833) |
| Net increase (decrease) | – | (445) | $– | $(23,949) |
| Class C | ||||
| Reinvestment of distributions | – | 83 | $– | $4,198 |
| Shares redeemed | – | (2,534) | – | (134,848) |
| Net increase (decrease) | – | (2,451) | $– | $(130,650) |
| Fidelity Simplicity RMD 2010 | ||||
| Shares sold | 38,372 | 93,708 | $2,080,480 | $4,896,095 |
| Reinvestment of distributions | 5,076 | 5,094 | 273,119 | 261,294 |
| Shares redeemed | (16,488) | (30,351) | (893,422) | (1,572,109) |
| Net increase (decrease) | 26,960 | 68,451 | $1,460,177 | $3,585,280 |
| Class I | ||||
| Reinvestment of distributions | – | 53 | $– | $2,694 |
| Shares redeemed | – | (1,249) | – | (67,014) |
| Net increase (decrease) | – | (1,196) | $– | $(64,320) |
| Fidelity Simplicity RMD 2015 Fund | ||||
| Class A | ||||
| Shares sold | – | 1,491 | $– | $86,061 |
| Reinvestment of distributions | – | 192 | – | 10,845 |
| Shares redeemed | – | (7,363) | – | (437,292) |
| Net increase (decrease) | – | (5,680) | $– | $(340,386) |
| Class M | ||||
| Reinvestment of distributions | – | 219 | $– | $12,306 |
| Shares redeemed | – | (8,571) | – | (504,629) |
| Net increase (decrease) | – | (8,352) | $– | $(492,323) |
| Class C | ||||
| Shares sold | – | 175 | $– | $10,000 |
| Reinvestment of distributions | – | 43 | – | 2,360 |
| Shares redeemed | – | (1,720) | – | (98,388) |
| Net increase (decrease) | – | (1,502) | $– | $(86,028) |
| Fidelity Simplicity RMD 2015 | ||||
| Shares sold | 47,322 | 159,138 | $2,850,442 | $9,212,720 |
| Reinvestment of distributions | 10,104 | 8,782 | 602,509 | 495,398 |
| Shares redeemed | (54,495) | (48,314) | (3,273,041) | (2,751,738) |
| Net increase (decrease) | 2,931 | 119,606 | $179,910 | $6,956,380 |
| Class I | ||||
| Reinvestment of distributions | – | 7 | $– | $418 |
| Shares redeemed | – | (198) | – | (11,871) |
| Net increase (decrease) | – | (191) | $– | $(11,453) |
| Fidelity Simplicity RMD 2020 Fund | ||||
| Class A | ||||
| Reinvestment of distributions | – | 25 | $– | $1,413 |
| Shares redeemed | – | (718) | – | (43,299) |
| Net increase (decrease) | – | (693) | $– | $(41,886) |
| Class M | ||||
| Reinvestment of distributions | – | 271 | $– | $15,319 |
| Shares redeemed | – | (11,759) | – | (706,960) |
| Net increase (decrease) | – | (11,488) | $– | $(691,641) |
| Class C | ||||
| Reinvestment of distributions | – | 67 | $– | $3,697 |
| Shares redeemed | – | (2,279) | – | (135,203) |
| Net increase (decrease) | – | (2,212) | $– | $(131,506) |
| Fidelity Simplicity RMD 2020 | ||||
| Shares sold | 170,751 | 362,678 | $10,309,083 | $20,993,008 |
| Reinvestment of distributions | 25,989 | 18,577 | 1,563,495 | 1,046,172 |
| Shares redeemed | (73,220) | (108,909) | (4,395,215) | (6,275,576) |
| Net increase (decrease) | 123,520 | 272,346 | $7,477,363 | $15,763,604 |
| Class I | ||||
| Reinvestment of distributions | – | 47 | $– | $2,632 |
| Shares redeemed | – | (1,251) | – | (75,302) |
| Net increase (decrease) | – | (1,204) | $– | $(72,670) |
9. 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.
At the end of the period the investment adviser or its affiliates were owners of record of more than 10% of the outstanding shares of the following Funds:
| Affiliated % | |
| Fidelity Simplicity RMD 2025 Fund | 30% |
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2019 to January 31, 2020) for each fund, with the exception of Fidelity Simplicity RMD 2025 Fund and for the period (August 16, 2019 to January 31, 2020) for Fidelity Simplicity RMD 2025 Fund. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2019 to January 31, 2020).
Actual Expenses
The first line of the accompanying table for 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 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 fund provides information about hypothetical account values and hypothetical expenses based on a 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio-A | Beginning Account Value | Ending Account Value | Expenses Paid During Period | |
| Fidelity Simplicity RMD Income Fund | .46% | |||
| Actual | $1,000.00 | $1,037.90 | $2.36-B | |
| Hypothetical-C | $1,000.00 | $1,022.82 | $2.34-D | |
| Fidelity Simplicity RMD 2005 Fund | .47% | |||
| Actual | $1,000.00 | $1,037.80 | $2.41-B | |
| Hypothetical-C | $1,000.00 | $1,022.77 | $2.39-D | |
| Fidelity Simplicity RMD 2010 Fund | .51% | |||
| Actual | $1,000.00 | $1,042.40 | $2.62-B | |
| Hypothetical-C | $1,000.00 | $1,022.57 | $2.59-D | |
| Fidelity Simplicity RMD 2015 Fund | .55% | |||
| Actual | $1,000.00 | $1,047.00 | $2.83-B | |
| Hypothetical-C | $1,000.00 | $1,022.37 | $2.80-D | |
| Fidelity Simplicity RMD 2020 Fund | .60% | |||
| Actual | $1,000.00 | $1,051.60 | $3.09-B | |
| Hypothetical-C | $1,000.00 | $1,022.12 | $3.05-D | |
| Fidelity Simplicity RMD 2025 Fund | .64% | |||
| Actual | $1,000.00 | $1,068.60 | $3.06-B | |
| Hypothetical-C | $1,000.00 | $1,021.92 | $3.25-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period) for each fund, with the exception of Fidelity Simplicity RMD 2025 Fund and multiplied by 168/366 (to reflect the period August 16, 2019 to January 31, 2020) for Fidelity Simplicity RMD 2025 Fund. The fees and expenses of the underlying Fidelity Funds in which each Fund invests are not included in each Fund's annualized expense ratio.
C 5% return per year before expenses
D Hypothetical expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Simplicity RMD 2025 Fund
On May 16, 2019, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract (the Advisory Contract) with FMR Co., Inc. (FMRC), an affiliate of Fidelity Management & Research Company (FMR), for Fidelity Simplicity RMD 2025 Fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of FMRC, and also considered the fund's investment objective, strategies, and related investment philosophy. The Board considered the structure of the investment personnel 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 Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also 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. Further, the Board considered 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 Fidelity's risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by Fidelity under the Advisory Contract and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors.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 and 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 Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contract. The Board also considered FMRC's strength in managing asset allocation funds generally, which the Board is familiar with through its supervision of other target date funds.Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contract should benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's proposed class-level management fee rate, which will cover most expenses of the top-level fund and underlying funds. In reviewing the Advisory Contract, the Board also considered the projected total expense ratio of the fund. The Board noted that the fund's proposed management fee rate ranks above the median of its competitor funds because the majority of such competitor funds do not have top-level management fees. The Board also considered that the projected total expense ratio of the fund is below the median of those funds and classes (including expenses of the underlying funds) used by the Board for management fee comparisons that have a similar sales load structure.Based on its review, the Board concluded that the fund's management fee and projected total expense ratio were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contract. In connection with its future renewal of the Advisory Contract, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the underlying funds in which the fund invests and servicing the fund's shareholders.Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors that pay top-level management fees, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Simplicity RMD 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) with FMR Co., Inc. (FMRC), an affiliate of Fidelity Management & Research Company (FMR), 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 four standing committees (Committees) — Operations, Audit, Fair Valuation, 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 considers, among other matters, information 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 review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its September 2019 meeting, the Board unanimously determined to renew each fund's Advisory Contract. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and are realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered that, effective June 1, 2017, each fund had changed its investment objective and implemented a new fee structure whereby it pays an all-inclusive management fee that covers all operating expenses of the fund, subject to certain exceptions, and varies by class (unified fee) and the underlying Fidelity funds in which the fund invests (Series Funds) no longer pay expenses, with certain limited exceptions.In considering whether to renew the Advisory Contract for each 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 Contract was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was 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 of each fund have a broad range of investment choices available to them, including a wide choice among 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, which is part of the Fidelity family of funds.Approval of Amended and Restated Advisory Contracts. At its September 2019 meeting, the Board also unanimously determined to approve amended and restated management contracts (Amended and Restated Contracts) in connection with an upcoming consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, FMRC expects to merge with and into FMR and, after the merger, FMR expects to redomicile as a Delaware limited liability company. The Board noted that the Amended and Restated Contracts will reflect the replacement of FMRC with FMR and will take effect upon the completion of the merger. The Board noted that references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile. The Board also approved amendments that clarify that each fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees paid by the funds.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the funds, including the backgrounds of investment personnel of FMRC, 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 with responsibility for the Series Funds. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also 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. Further, the Board considered 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 Fidelity's risk management, compliance, and technology and operations capabilities and resources, which are integral parts 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 Fidelity under the Advisory Contract and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; 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 and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, 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 Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain target date funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance (for each fund except Simplicity RMD 2025 Fund). 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 and its performance history. The Board considered that, effective June 1, 2017, each fund's investment objective is intended to support a payment strategy designed to be administered through a complementary systematic withdrawal plan that enables shareholders to receive regular payments from the fund based on their expected required minimum distributions from certain types of retirement accounts as mandated by the Internal Revenue Service.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the investment adviser about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund for different time periods, measured against one or more appropriate securities market indices, including a customized blended index that reflects the respective weights of the fund's asset classes (each a benchmark index) and a peer group of funds with similar objectives (peer group), if any. In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the investment adviser the reasons for such underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses, including acquired fund fees and expenses, but after transaction costs, if any) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses, including acquired fund fees and expenses, if any) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; the extent to which particular underlying funds affected performance; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for each fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods.Investment Performance (for Simplicity RMD 2025 Fund). 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. As the fund recently commenced operations, the Board did not believe that it was appropriate to assign significant weight to its limited investment performance.Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' competitive analysis of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.With respect to Simplicity RMD 2025 Fund, the Board considered that it received and reviewed information regarding the fund's management fee rate and total expense ratio compared to "mapped groups" of competitive funds and classes in connection with the approval of the management contract in May 2019. The Board noted that, because the fund did not commence operations until August 2019, no new competitive management fee and expense information was considered by the Board.Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in basis points (BP) 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s and the number of funds in the Total Mapped Group are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the charts and was considered by the Board. The Board considered that the charts below reflect the funds' fee structure effective June 1, 2017, as if it was in effect for the entire year.Fidelity Simplicity RMD 2005 Fund
Fidelity Simplicity RMD 2010 Fund
Fidelity Simplicity RMD 2015 Fund
Fidelity Simplicity RMD 2020 Fund
Fidelity Simplicity RMD Income Fund
SRD-SANN-0320
1.9881722.102
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 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.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
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/Laura M. Del Prato |
Laura M. Del Prato | |
President and Treasurer | |
Date: | March 25, 2020 |
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/Laura M. Del Prato |
Laura M. Del Prato | |
President and Treasurer | |
Date: | March 25, 2020 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | March 25, 2020 |