Fidelity Freedom® 2030 Fund

Class Other (FFFEX)
Scorecard
3 / 5 Stars
Lipper
3 3 2 5 2
Zacks Investment Research
3 (Hold)
Standard & Poor's
3 / 5 Stars
TheStreet.com
C- (Hold)

#16 in Target Date 2026-2030

U.S. News evaluated 52 Target Date 2026-2030 Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 15.81 percent over the past year, 8.16 percent over the past three years, 17.94 percent over the past five years, and 5.93 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 1.3%
1 Year 15.8%
3 Years (Annualized) 8.2%
5 Years (Annualized) 17.9%
10 Years (Annualized) 5.9%

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Summary

The Fidelity Freedom 2030 fund can be a steady investment in a retirement portfolio.

As of March 05, 2014, the fund has assets totaling $11.14 billion. Its portfolio consists of multiple Fidelity funds investing in a mix of stocks, bonds, and cash.

The fund invests in underlying Fidelity domestic and international stock funds as well as bond and short-term funds. Like other target-date funds, Fidelity Freedom’s asset allocations gradually shift to more conservative investments as the target retirement date, which is 2030 for this fund, approaches. Recently, the Fidelity Freedom fund products increased their target exposure to international equity funds from approximately 20 percent to 30 percent, as these foreign markets hold less risk now than in the past. During 2009, within the Fidelity Freedom Target-Date series, the shorter-dated funds outperformed the returns of their benchmarks, and the longer-dated portfolios underperformed the returns of their underlying benchmarks, according to the fund. The fund has returned 15.81 percent over the past year and 8.16 percent over the past three years.

While critics note that the Freedom 2030 fund's holdings have excluded some of the best-performing Fidelity names, like Fidelity Contrafund or Fidelity Low-Priced Stock, holdings can include funds created especially for Fidelity’s target-date offerings and that are not open to outside investors. Morningstar calls it a “serviceable choice for investors with limited options.” Morningstar gives the Fidelity Freedom Target-Date series an “average” overall rating, due to the funds’ poor 2008 performance and slightly above-average performance over the past five years. The fund has returned 17.94 percent over the past five years and 5.93 percent over the past decade.

Investment Strategy

The fund seeks a high total return until it reaches its target retirement date. Thereafter, the fund’s objective will be to seek high current income, followed by the secondary objective of seeking capital appreciation. The fund’s asset allocation strategy becomes more conservative as it approaches 2030. It eventually reaches allocations of 15 percent in domestic equity funds, 5 percent in international equity funds, 40 percent in bond funds, and 40 percent in short-term funds (10 to 15 years after 2030), according to the supplement to the prospectus.

Role in Portfolio

Morningstar calls the fund a core player in a portfolio, saying, “This broadly diversified fund is designed to be an all-in-one holding.”

Management

Jonathan Shelon and Christopher Sharpe are comanagers of the Fidelity Freedom funds. Shelon has managed the Fidelity Freedom 2030 fund since March 2005 and has worked with Fidelity Investments since 2001 as a portfolio manager. Sharpe has managed Fidelity Freedom 2030 since September 2007 and has worked at Fidelity since 2002.

Fees

Fidelity Freedom® 2030 Fund has an expense ratio of 0.00 percent.

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Risk

The fund includes a large number of Fidelity funds, which can result in overlapping holdings. There is risk involved with the common changes of management within the underlying Fidelity funds, according to Morningstar. The fund is also subject to the volatility of the financial markets in the United States and abroad, specifically risk tied to high-yield bonds as well as small-cap and foreign stocks.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 3 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 4 for one year, 4 for five years, and 4 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

In the annual Lipper/Barron’s Fund Families Survey for 2010, Fidelity ranks 33 out of 57 fund families surveyed.

Lipper 2011-04-11

Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, “This fund has some good things going for it on the stewardship front, including low fees and a generally attractive culture. However, other factors, including an insufficiently independent board, keep its overall grade from being higher.”

Morningstar 2011-02-02

In the annual Lipper/Barron’s Fund Families Survey for 2010, Fidelity ranks 33 out of 57 fund families surveyed.

Lipper 2011-04-11

Morningstar gives this fund a stewardship rating of C on a scale of A to F, saying, “This fund has some good things going for it on the stewardship front, including low fees and a generally attractive culture. However, other factors, including an insufficiently independent board, keep its overall grade from being higher.”

Morningstar 2011-02-02