Fidelity® Four-in-One Index Fund
Semi-Annual Report August 31, 2018 |
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Contents
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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. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.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)
The information in the following tables is based on the direct investments of the Fund.
Top Holdings as of August 31, 2018
| | % of fund's net assets |
| Fidelity 500 Index Fund Institutional Premium Class | 48.1 |
| Fidelity International Index Fund Institutional Premium Class | 24.8 |
| Fidelity U.S. Bond Index Fund Institutional Premium Class | 15.0 |
| Fidelity Extended Market Index Fund Institutional Premium Class | 12.1 |
| | 100.0 |
Asset Allocation (% of fund's net assets)
| Period end |
| | Domestic Equity Funds | 60.2% |
| | International Equity Funds | 24.8% |
| | Bond Funds | 15.0% |
Schedule of Investments August 31, 2018 (Unaudited)
Showing Percentage of Net Assets
| Domestic Equity Funds - 60.2% | | | |
| | | Shares | Value |
| Fidelity 500 Index Fund Institutional Premium Class (a) | | 29,555,866 | $3,005,831,546 |
| Fidelity Extended Market Index Fund Institutional Premium Class (a) | | 10,838,531 | 757,179,797 |
| TOTAL DOMESTIC EQUITY FUNDS | | | |
| (Cost $1,834,588,833) | | | 3,763,011,343 |
|
| International Equity Funds - 24.8% | | | |
| Fidelity International Index Fund Institutional Premium Class (a) | | | |
| (Cost $1,310,257,338) | | 36,772,030 | 1,551,044,237 |
|
| Bond Funds - 15.0% | | | |
| Fidelity U.S. Bond Index Fund Institutional Premium Class (a) | | | |
| (Cost $943,858,383) | | 83,170,836 | 936,503,617 |
| TOTAL INVESTMENT IN SECURITIES - 100.0% | | | |
| (Cost $4,088,704,554) | | | 6,250,559,197 |
| NET OTHER ASSETS (LIABILITIES) - 0.0% | | | 141,206 |
| NET ASSETS - 100% | | | $6,250,700,403 |
Legend
(a) Affiliated Fund
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 500 Index Fund Institutional | $2,842,838,224 | $129,880,138 | $166,011,502 | $28,479,550 | $5,186,675 | $193,938,011 | $3,005,831,546 |
| Fidelity Extended Market Index Fund | 708,838,382 | 19,304,325 | 62,455,531 | 698,130 | 2,614,680 | 88,877,941 | 757,179,797 |
| Fidelity International Index Fund | 1,477,405,753 | 148,731,215 | 43,488,742 | 1,537,825 | (471,476) | (31,132,513) | 1,551,044,237 |
| Fidelity U.S. Bond Index Fund Institutional | 907,861,589 | 79,498,236 | 48,015,844 | 12,253,531 | (867,192) | (1,973,172) | 936,503,617 |
| | $5,936,943,948 | $377,413,914 | $319,971,619 | $42,969,036 | $6,462,687 | $249,710,267 | $6,250,559,197 |
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.
Financial Statements
Statement of Assets and Liabilities
| | | August 31, 2018 (Unaudited) |
| Assets | | |
| Investment in securities, at value (cost $4,088,704,554) — See accompanying schedule | | $6,250,559,197 |
| Receivable for investments sold | | 55,257,206 |
| Receivable for fund shares sold | | 2,620,162 |
| Receivable from investment adviser for expense reductions | | 102,541 |
| Total assets | | 6,308,539,106 |
| Liabilities | | |
| Payable for investments purchased | $54,353,512 | |
| Payable for fund shares redeemed | 2,969,081 | |
| Accrued management fee | 516,110 | |
| Total liabilities | | 57,838,703 |
| Net Assets | | $6,250,700,403 |
| Net Assets consist of: | | |
| Paid in capital | | $4,070,192,814 |
| Undistributed net investment income | | 37,824,668 |
| Accumulated undistributed net realized gain (loss) on investments | | (19,171,722) |
| Net unrealized appreciation (depreciation) on investments | | 2,161,854,643 |
| Net Assets, for 133,921,442 shares outstanding | | $6,250,700,403 |
| Net Asset Value, offering price and redemption price per share ($6,250,700,403 ÷ 133,921,442 shares) | | $46.67 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended August 31, 2018 (Unaudited) |
| Investment Income | | |
| Income distributions from underlying funds (including $42,969,036 earned from affiliated issuers) | | $40,321,908 |
| Expenses | | |
| Management fee | $3,007,995 | |
| Independent trustees' fees and expenses | 12,747 | |
| Total expenses before reductions | 3,020,742 | |
| Expense reductions | (603,833) | |
| Total expenses after reductions | | 2,416,909 |
| Net investment income (loss) | | 37,904,999 |
| Realized and Unrealized Gain (Loss) | | |
| Realized gain (loss) on sale of underlying fund shares | 6,462,687 | |
| Capital gain distributions from underlying funds | 2,647,128 | |
| Total net realized gain (loss) | | 9,109,815 |
| Change in net unrealized appreciation (depreciation) on underlying funds | | 249,710,267 |
| Net gain (loss) | | 258,820,082 |
| Net increase (decrease) in net assets resulting from operations | | $296,725,081 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended August 31, 2018 (Unaudited) | Year ended February 28, 2018 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $37,904,999 | $106,609,321 |
| Net realized gain (loss) | 9,109,815 | 36,082,651 |
| Change in net unrealized appreciation (depreciation) | 249,710,267 | 571,539,349 |
| Net increase (decrease) in net assets resulting from operations | 296,725,081 | 714,231,321 |
| Distributions to shareholders from net investment income | (4,664,824) | (104,960,342) |
| Distributions to shareholders from net realized gain | (20,525,181) | (34,855,594) |
| Total distributions | (25,190,005) | (139,815,936) |
| Share transactions | | |
| Proceeds from sales of shares | 374,704,321 | 1,079,412,383 |
| Reinvestment of distributions | 23,942,145 | 132,796,106 |
| Cost of shares redeemed | (356,500,373) | (647,276,515) |
| Net increase (decrease) in net assets resulting from share transactions | 42,146,093 | 564,931,974 |
| Total increase (decrease) in net assets | 313,681,169 | 1,139,347,359 |
| Net Assets | | |
| Beginning of period | 5,937,019,234 | 4,797,671,875 |
| End of period | $6,250,700,403 | $5,937,019,234 |
| Other Information | | |
| Undistributed net investment income end of period | $37,824,668 | $4,584,493 |
| Shares | | |
| Sold | 8,317,539 | 24,981,840 |
| Issued in reinvestment of distributions | 542,782 | 3,045,387 |
| Redeemed | (7,894,697) | (15,045,858) |
| Net increase (decrease) | 965,624 | 12,981,369 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Four-in-One Index Fund
| | Six months ended (Unaudited) August 31, | Years endedFebruary 28, | | | | |
| | 2018 | 2018 | 2017 | 2016 A | 2015 | 2014 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $44.65 | $39.99 | $34.26 | $38.45 | $36.18 | $30.62 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)B | .28 | .85 | .82 | .78 | .79 | .66 |
| Net realized and unrealized gain (loss) | 1.93 | 4.92 | 5.87 | (3.97) | 2.39 | 5.63 |
| Total from investment operations | 2.21 | 5.77 | 6.69 | (3.19) | 3.18 | 6.29 |
| Distributions from net investment income | (.04) | (.83) | (.80) | (.77) | (.78) | (.62) |
| Distributions from net realized gain | (.15) | (.28) | (.16) | (.24) | (.14) | (.11) |
| Total distributions | (.19) | (1.11) | (.96) | (1.00)C | (.91)D | (.73) |
| Net asset value, end of period | $46.67 | $44.65 | $39.99 | $34.26 | $38.45 | $36.18 |
| Total ReturnE,F | 4.97% | 14.51% | 19.68% | (8.47)% | 8.88% | 20.59% |
| Ratios to Average Net AssetsG | | | | | | |
| Expenses before reductions | .10%H | .10% | .10% | .10% | .10% | .10% |
| Expenses net of fee waivers, if any | .08%H | .08% | .08% | .08% | .08% | .08% |
| Expenses net of all reductions | .08%H | .08% | .08% | .08% | .08% | .08% |
| Net investment income (loss) | 1.25%H | 1.99% | 2.17% | 2.09% | 2.14% | 1.95% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $6,250,700 | $5,937,019 | $4,797,672 | $4,034,426 | $4,218,706 | $3,579,065 |
| Portfolio turnover rateI | 11%H | 6% | 10% | 9% | 8% | 9% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions of $1.00 per share is comprised of distributions from net investment income of $.769 and distributions from net realized gain of $.235 per share.
D Total distributions of $.91 per share is comprised of distributions from net investment income of $.777 and distributions from net realized gain of $.137 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Annualized
I Amounts do not include the activity of the Underlying Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2018
1. Organization.
Fidelity Four-in-One Index Fund (the Fund) is a fund of Fidelity Aberdeen Street Trust (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 Delaware statutory trust. The Fund invests in a combination of Fidelity index funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR). Geode Capital Management, LLC serves as sub-adviser for the underlying stock funds.
2. 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 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. 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 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 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 the Fund and do not include any expenses associated with the Underlying Funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, 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 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:
| Gross unrealized appreciation | $2,154,688,935 |
| Gross unrealized depreciation | (20,726,739) |
| Net unrealized appreciation (depreciation) | $2,133,962,196 |
| Tax cost | $4,116,597,001 |
3. Purchases and Redemptions of Underlying Fund Shares.
Purchases and redemptions of the Underlying Fund shares, aggregated $377,413,914 and $319,971,619, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR Co., Inc. (the investment adviser), an affiliate of FMR, provides the Fund with investment management related services. For these services the Fund pays a monthly management fee to the investment adviser. The management fee is computed at an annual rate of .10% of the Fund's average net assets. The management fee is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Other Transactions. The investment adviser has entered into an administration agreement with FMR under which FMR provides management and administrative services (other than investment advisory services) necessary for the operation of the Fund. Pursuant to this agreement, FMR pays all expenses of the Fund, excluding compensation of the independent Trustees and certain other expenses such as interest expense. FMR also contracts with other Fidelity companies to perform the services necessary for the operation of the Fund. For the services under the agreement, the investment adviser pays FMR a monthly administration fee equal to the management fee received by the investment adviser, minus an amount equal to an annual rate of .02% of the Fund's average net assets. The Fund does not pay any fees for these services.
5. Expense Reductions.
FMR contractually agreed to reimburse the Fund to the extent annual operating expenses exceeded .08% of average net assets. This reimbursement will remain in place through April 30, 2019. Some expenses, for example the compensation of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $603,833.
6. 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 (March 1, 2018 to August 31, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00, which was eliminated effective August 1, 2018, that is charged once a year may apply for certain accounts with a value of less than $2,000. Various account fees may also be payable to the custodian for certain services. These fees are not included in the table below. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by these amounts. In addition, the 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 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. A small balance maintenance fee of $12.00, which was eliminated effective August 1, 2018, that is charged once a year may apply for certain accounts with a value of less than $2,000. Various account fees may also be payable to the custodian for certain services. These fees are not included in the table below. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by these amounts. In addition, the 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 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
March 1, 2018 | Ending
Account Value
August 31, 2018 | Expenses Paid
During Period-B
March 1, 2018
to August 31, 2018 |
| Actual | .08% | $1,000.00 | $1,049.70 | $.41 |
| Hypothetical-C | | $1,000.00 | $1,024.80 | $.41 |
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 184/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in the Fund's annualized expense ratio.
C 5% return per year before expenses
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