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, Massachusetts 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: | July 31, 2020 |
This report on Form N-CSR relates solely to the Registrant’s to 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, Fidelity Managed Retirement Income Fund, Fidelity Simplicity RMD 2010 Fund, Fidelity Simplicity RMD 2015 Fund, Fidelity Simplicity RMD 2020 Fund, Fidelity Simplicity RMD 2025 Fund and Fidelity Simplicity RMD Income Fund series (each, a “Fund” and collectively, the “Funds”).
Item 1.
Reports to Stockholders
Fidelity Managed Retirement Income 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℠
July 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
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:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Fidelity Managed Retirement Income Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 0.72% | 2.93% | 4.97% |
| Fidelity Managed Retirement Income Fund℠ | 7.12% | 4.42% | 5.86% |
| Class K | 7.24% | 4.44% | 5.87% |
| Class K6 | 7.35% | 4.46% | 5.88% |
| Class I | 7.14% | 4.42% | 5.86% |
| Class Z6 | 7.35% | 4.46% | 5.88% |
The initial offering of Class K, Class K6 and Class Z6 took place on August 1, 2019. Returns prior to August 1, 2019 are those of Fidelity Managed Retirement Income Fund, Fidelity Managed Retirement Income Fund and Class I, respectively, and have not been restated to reflect current expenses.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Managed Retirement Income Fund℠, a class of the fund, on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $17,672 | Fidelity Managed Retirement Income Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Managed Retirement 2010 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 1.03% | 3.82% | 6.21% |
| Fidelity Managed Retirement 2010 Fund℠ | 7.46% | 5.32% | 7.11% |
| Class K | 7.56% | 5.34% | 7.12% |
| Class K6 | 7.68% | 5.37% | 7.13% |
| Class I | 7.47% | 5.33% | 7.11% |
| Class Z6 | 7.68% | 5.37% | 7.13% |
The initial offering of Class K, Class K6 and Class Z6 took place on August 1, 2019. Returns prior to August 1, 2019 are those of Fidelity Managed Retirement 2010 Fund, Fidelity Managed Retirement 2010 Fund and Class I, respectively, and have not been restated to reflect current expenses.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Managed Retirement 2010 Fund℠, a class of the fund, on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $19,873 | Fidelity Managed Retirement 2010 Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Managed Retirement 2015 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 1.36% | 4.16% | 6.57% |
| Fidelity Managed Retirement 2015 Fund℠ | 7.83% | 5.66% | 7.47% |
| Class K | 7.92% | 5.68% | 7.48% |
| Class K6 | 8.03% | 5.70% | 7.49% |
| Class I | 7.81% | 5.66% | 7.47% |
| Class Z6 | 8.03% | 5.71% | 7.50% |
The initial offering of Class K, Class K6 and Class Z6 took place on August 1, 2019. Returns prior to August 1, 2019 are those of Fidelity Managed Retirement 2015 Fund, Fidelity Managed Retirement 2015 Fund and Class I, respectively, and have not been restated to reflect current expenses.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Managed Retirement 2015 Fund℠, a class of the fund, on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $20,559 | Fidelity Managed Retirement 2015 Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Managed Retirement 2020 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 1.57% | 4.42% | 6.90% |
| Fidelity Managed Retirement 2020 Fund℠ | 8.04% | 5.93% | 7.81% |
| Class K | 8.17% | 5.95% | 7.82% |
| Class K6 | 8.27% | 5.97% | 7.83% |
| Class I | 8.05% | 5.93% | 7.81% |
| Class Z6 | 8.26% | 5.97% | 7.83% |
The initial offering of Class K, Class K6 and Class Z6 took place on August 1, 2019. Returns prior to August 1, 2019 are those of Fidelity Managed Retirement 2020 Fund, Fidelity Managed Retirement 2020 Fund and Class I, respectively, and have not been restated to reflect current expenses.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Managed Retirement 2020 Fund℠, a class of the fund, on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $21,210 | Fidelity Managed Retirement 2020 Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Managed Retirement 2025 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 1.80% | 4.60% | 7.26% |
| Fidelity Managed Retirement 2025 Fund℠ | 8.30% | 6.11% | 8.17% |
| Class K | 8.42% | 6.14% | 8.18% |
| Class K6 | 8.52% | 6.16% | 8.19% |
| Class I | 8.29% | 6.12% | 8.17% |
| Class Z6 | 8.51% | 6.16% | 8.20% |
The initial offering of Class K, Class K6 and Class Z6 took place on August 1, 2019. Returns prior to August 1, 2019 are those of Fidelity Managed Retirement 2025 Fund, Fidelity Managed Retirement 2025 Fund and Class I, respectively, and have not been restated to reflect current expenses.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Managed Retirement 2025 Fund℠, a class of the fund, on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $21,937 | Fidelity Managed Retirement 2025 Fund℠ |
|
| $36,558 | S&P 500® Index |
Fidelity Managed Retirement 2030 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average annual total returns for Fidelity Managed Retirement 2030 Fund℠ will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Managed Retirement 2030 Fund℠, a class of the fund, on August 16, 2019, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $10,966 | Fidelity Managed Retirement 2030 Fund℠ |
|
| $11,533 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: For the 12 months ending July 31, 2020, financial markets were highly influenced by the global outbreak and spread of the coronavirus, which curtailed economic growth and the outlook for corporate earnings. Declared a pandemic on March 11, the crisis and containment efforts led to increased uncertainty, broad-based contraction in economic activity, elevated volatility and dislocation in financial markets. Rapid and expansive monetary- and fiscal-policy responses provided a partial offset to the economic disruption and fueled a sharp uptrend for many assets from March 24 through July 31.Non-U.S. equities gained 0.82% for the 12 months, according to the MSCI ACWI (All Country World Index) ex USA Index, reflecting significant ups and downs related to the pandemic. From a regional perspective, emerging markets (+7%), Europe ex U.K. (+4%) and Japan (+2%) outperformed the broader index. Conversely, the U.K. (-15%), Asia Pacific ex Japan (-9%) and Canada (-1%) lagged. By sector, information technology (+34%) and health care (+24%) led. On the other end of the spectrum, the energy sector (-28%) underperformed by the widest margin, while financials (-16%) and industrials (-3%) also notably trailed the index.
The Dow Jones U.S. Total Stock Market Index gained 10.80% for the 12 months. After a sharp decline in the first quarter of 2020 (-20.96%) due to the coronavirus outbreak, U.S. equities rebounded with a 22.09% advance in the second quarter and added 5.65% in July. Among sectors, energy (-39%) fared worst, whereas information technology (+37%) led the way by a wide margin. Consumer discretionary (+24%) and health care (+20%) also stood out this period. Large-cap stocks topped smaller-caps, while growth handily outpaced value. Elsewhere, commodities notably lagged equities.
Turning to fixed income, U.S. taxable investment-grade bonds (the Bloomberg Barclays U.S. Aggregate Bond Index) rose 10.12%, as investors generally sought assets with greater perceived safety and yields plunged. U.S. corporate bonds (+11.86%) and Treasury bonds (+11.84%) led the way, while Treasury Inflation-Protected Securities (+10.23%) also performed well. Agency bonds (+7.24%) and mortgage-backed securities (+5.43%) lagged the Bloomberg Barclays index. Extended (non-core) categories, including emerging-markets debt (+4.08%), high-yield bonds (+2.99%) and floating-rate bank loans (-0.79%) turned in lower returns. Comments from Co-Portfolio Managers Andrew Dierdorf and Brett Sumsion: For the fiscal year, returns for the share classes of Fidelity® Managed Retirement Funds (excluding sales charges, if applicable) ranged from about 7% to 8.5%, with performance trending higher among the Funds for investors with a longer retirement horizon. Funds for investors with a greater number years to invest in retirement – those with more exposure to equities and lower allocations to fixed-income and short-term securities – fared a bit better than those that invest in a greater percentage of fixed-income and short-term debt, and less equity exposure. Each Fidelity Managed Retirement Fund lagged its Composite index this period, primarily due to active asset allocation. Specifically, a non-Composite allocation to commodities was the largest detractor the past 12 months, as this asset class returned -12.07%, according to the Bloomberg Barclays Commodity Index Total Return. Underweighting two strong-performing asset classes – U.S. equities and investment-grade bonds – also hindered the Funds’ relative results. Conversely, the performance of the Funds’ underlying investment portfolios was strong overall. In particular, the Funds’ investments in underlying non-U.S. equities contributed most, while investments in U.S. equities and investment-grade bonds also added value this period.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On June 13, 2020, Fidelity Managed Retirement 2005 Fund and Fidelity Advisor Managed Retirement 2005 Fund closed to new investors in anticipation of their planned mergers into the Managed Retirement Income funds.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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Treasury Bill Index Fund | 13.9 |
| Fidelity Series Inflation-Protected Bond Index Fund | 12.0 |
| Fidelity Series Investment Grade Bond Fund | 11.6 |
| Fidelity Series Government Bond Index Fund | 10.4 |
| Fidelity Series Corporate Bond Fund | 8.8 |
| Fidelity Series Investment Grade Securitized Fund | 7.8 |
| Fidelity Series Emerging Markets Opportunities Fund | 6.4 |
| Fidelity Series Government Money Market Fund 0.23% | 5.7 |
| Fidelity Series Short-Term Credit Fund | 4.2 |
| Fidelity Series Commodity Strategy Fund | 2.5 |
| 83.3 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 8.9% | |
| International Equity Funds | 12.4% | |
| Bond Funds | 54.9% | |
| Short-Term Funds | 23.8% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement Income Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 8.9% | |||
| Shares | Value | ||
| Fidelity Series Blue Chip Growth Fund (a) | 11,317 | $217,859 | |
| Fidelity Series Commodity Strategy Fund (a) | 94,698 | 384,476 | |
| Fidelity Series Large Cap Growth Index Fund (a) | 11,043 | 149,519 | |
| Fidelity Series Large Cap Stock Fund (a) | 10,605 | 152,816 | |
| Fidelity Series Large Cap Value Index Fund (a) | 25,343 | 289,412 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 5,766 | 72,999 | |
| Fidelity Series Value Discovery Fund (a) | 8,569 | 103,258 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,370,785) | 1,370,339 | ||
| International Equity Funds - 12.4% | |||
| Fidelity Series Canada Fund (a) | 7,384 | 74,503 | |
| Fidelity Series Emerging Markets Fund (a) | 11,601 | 107,769 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 47,566 | 983,193 | |
| Fidelity Series International Growth Fund (a) | 10,995 | 197,477 | |
| Fidelity Series International Index Fund (a) | 8,376 | 81,082 | |
| Fidelity Series International Small Cap Fund (a) | 3,954 | 66,266 | |
| Fidelity Series International Value Fund (a) | 23,051 | 196,856 | |
| Fidelity Series Overseas Fund (a) | 18,203 | 197,866 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,738,174) | 1,905,012 | ||
| Bond Funds - 54.9% | |||
| Fidelity Series Corporate Bond Fund (a) | 117,591 | 1,347,592 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 11,212 | 102,922 | |
| Fidelity Series Floating Rate High Income Fund (a) | 2,421 | 21,209 | |
| Fidelity Series Government Bond Index Fund (a) | 140,107 | 1,594,418 | |
| Fidelity Series High Income Fund (a) | 12,275 | 112,680 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 174,099 | 1,843,704 | |
| Fidelity Series International Credit Fund (a) | 825 | 8,567 | |
| Fidelity Series Investment Grade Bond Fund (a) | 144,114 | 1,778,370 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 112,704 | 1,202,552 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 32,872 | 355,344 | |
| Fidelity Series Real Estate Income Fund (a) | 6,496 | 64,573 | |
| TOTAL BOND FUNDS | |||
| (Cost $7,759,543) | 8,431,931 | ||
| Short-Term Funds - 23.8% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 885,768 | 885,768 | |
| Fidelity Series Short-Term Credit Fund (a) | 62,828 | 644,612 | |
| Fidelity Series Treasury Bill Index Fund (a) | 212,837 | 2,130,496 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $3,641,088) | 3,660,876 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $14,509,590) | 15,368,158 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (2,692) | ||
| NET ASSETS - 100% | $15,365,466 |
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 | $24,505 | $43,850 | $2,462 | $(2,693) | $1,865 | $-- |
| Fidelity Series Blue Chip Growth Fund | 34,827 | 151,878 | 70,067 | 3,985 | 1,151 | 17,297 | 217,859 |
| Fidelity Series Canada Fund | 17,267 | 48,263 | 17,600 | 485 | (1,889) | 95 | 74,503 |
| Fidelity Series Commodity Strategy Fund | 220,681 | 232,187 | 167,111 | 3,786 | (20,711) | (20,754) | 384,476 |
| Fidelity Series Corporate Bond Fund | 488,227 | 574,699 | 265,178 | 23,168 | (2,885) | 64,672 | 1,347,592 |
| Fidelity Series Emerging Markets Debt Fund | 45,351 | 45,136 | 23,434 | 2,913 | (1,077) | (608) | 102,922 |
| Fidelity Series Emerging Markets Fund | 23,291 | 62,654 | 22,325 | 828 | (672) | 4,940 | 107,769 |
| Fidelity Series Emerging Markets Opportunities Fund | 209,317 | 554,528 | 209,289 | 8,303 | (3,580) | 76,588 | 983,193 |
| Fidelity Series Floating Rate High Income Fund | 9,415 | 8,994 | 4,200 | 593 | (184) | (554) | 21,209 |
| Fidelity Series Government Bond Index Fund | 669,456 | 696,452 | 434,472 | 18,506 | 4,417 | 77,645 | 1,594,418 |
| Fidelity Series Government Money Market Fund 0.23% | 289,722 | 1,032,949 | 649,963 | 4,557 | -- | -- | 885,768 |
| Fidelity Series Growth Company Fund | 69,699 | 94,512 | 177,799 | 7,909 | 21,908 | (8,320) | -- |
| Fidelity Series High Income Fund | 47,607 | 47,253 | 20,999 | 3,556 | (804) | (434) | 112,680 |
| Fidelity Series Inflation-Protected Bond Index Fund | 846,480 | 748,450 | 482,378 | 12,875 | (571) | 57,727 | 1,843,704 |
| Fidelity Series International Credit Fund | 4,229 | 268 | -- | 267 | -- | 133 | 8,567 |
| Fidelity Series International Growth Fund | 158,131 | 124,669 | 171,077 | 6,095 | 158 | 8,893 | 197,477 |
| Fidelity Series International Index Fund | -- | 59,111 | 9,376 | -- | (25) | (49) | 81,082 |
| Fidelity Series International Small Cap Fund | 34,041 | 34,922 | 29,050 | 1,839 | (1,154) | 2,572 | 66,266 |
| Fidelity Series International Value Fund | 148,030 | 137,862 | 143,365 | 6,764 | (13,069) | (9,777) | 196,856 |
| Fidelity Series Intrinsic Opportunities Fund | 85,017 | 118,770 | 197,151 | 4,549 | (8,062) | 1,426 | -- |
| Fidelity Series Investment Grade Bond Fund | 712,639 | 724,944 | 381,271 | 26,352 | (1,624) | 76,319 | 1,778,370 |
| Fidelity Series Investment Grade Securitized Fund | 505,225 | 515,477 | 279,500 | 18,809 | 64 | 20,100 | 1,202,552 |
| Fidelity Series Large Cap Growth Index Fund | -- | 106,267 | 21,915 | -- | 424 | 9,119 | 149,519 |
| Fidelity Series Large Cap Stock Fund | 74,623 | 121,692 | 97,696 | 4,375 | (4,614) | 1,007 | 152,816 |
| Fidelity Series Large Cap Value Index Fund | 21,580 | 210,553 | 52,671 | 1,467 | (1,387) | (184) | 289,412 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 227,793 | 181,935 | 224,273 | 21,178 | 17,823 | 22,010 | 355,344 |
| Fidelity Series Opportunistic Insights Fund | 38,453 | 49,951 | 88,492 | 4,372 | 3,490 | (3,402) | -- |
| Fidelity Series Overseas Fund | 3,579 | 189,000 | 81,828 | 295 | (2,999) | 13,038 | 197,866 |
| Fidelity Series Real Estate Income Fund | 30,112 | 28,413 | 13,161 | 2,136 | (1,178) | (3,062) | 64,573 |
| Fidelity Series Short-Term Credit Fund | 289,787 | 174,554 | 87,402 | 9,328 | (945) | 8,567 | 644,612 |
| Fidelity Series Small Cap Discovery Fund | 10,573 | 10,830 | 20,308 | 478 | (1,072) | (23) | -- |
| Fidelity Series Small Cap Opportunities Fund | 31,878 | 52,059 | 36,341 | 2,178 | (374) | (1,812) | 72,999 |
| Fidelity Series Stock Selector Large Cap Value Fund | 57,653 | 77,879 | 127,837 | 3,851 | (7,982) | 287 | -- |
| Fidelity Series Treasury Bill Index Fund | 868,825 | 663,674 | 259,400 | 16,898 | 174 | 1,988 | 2,130,496 |
| Fidelity Series Value Discovery Fund | 41,264 | 76,109 | 50,583 | 2,030 | (2,954) | (69) | 103,258 |
| $6,334,945 | $7,981,399 | $4,961,362 | $227,187 | $(32,896) | $417,240 | $15,368,158 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $1,370,339 | $1,370,339 | $-- | $-- |
| International Equity Funds | 1,905,012 | 1,905,012 | -- | -- |
| Bond Funds | 8,431,931 | 8,431,931 | -- | -- |
| Short-Term Funds | 3,660,876 | 3,660,876 | -- | -- |
| Total Investments in Securities: | $15,368,158 | $15,368,158 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $14,509,590) | $15,368,158 | |
| Total Investment in Securities (cost $14,509,590) | $15,368,158 | |
| Cash | 14 | |
| Receivable for investments sold | 97,969 | |
| Receivable for fund shares sold | 23,068 | |
| Total assets | 15,489,209 | |
| Liabilities | ||
| Payable for investments purchased | $115,907 | |
| Payable for fund shares redeemed | 2,240 | |
| Accrued management fee | 5,504 | |
| Distribution and service plan fees payable | 92 | |
| Total liabilities | 123,743 | |
| Net Assets | $15,365,466 | |
| Net Assets consist of: | ||
| Paid in capital | $14,541,677 | |
| Total accumulated earnings (loss) | 823,789 | |
| Net Assets | $15,365,466 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($452,940 ÷ 7,493.92 shares)(a) | $60.44 | |
| Maximum offering price per share (100/94.25 of $60.44) | $64.13 | |
| Fidelity Managed Retirement Income: | ||
| Net Asset Value, offering price and redemption price per share ($13,964,554 ÷ 231,117.91 shares) | $60.42 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($107,089 ÷ 1,772.21 shares) | $60.43 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($433,867 ÷ 7,181.05 shares) | $60.42 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($299,820 ÷ 4,957.45 shares) | $60.48 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($107,196 ÷ 1,774.57 shares) | $60.41 |
(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
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $153,586 | |
| Expenses | ||
| Management fee | $35,950 | |
| Distribution and service plan fees | 595 | |
| Independent trustees' fees and expenses | 28 | |
| Total expenses | 36,573 | |
| Net investment income (loss) | 117,013 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 13 | |
| Affiliated issuers | (32,896) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 73,601 | |
| Total net realized gain (loss) | 40,718 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 417,240 | |
| Total change in net unrealized appreciation (depreciation) | 417,240 | |
| Net gain (loss) | 457,958 | |
| Net increase (decrease) in net assets resulting from operations | $574,971 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $117,013 | $126,589 |
| Net realized gain (loss) | 40,718 | 59,310 |
| Change in net unrealized appreciation (depreciation) | 417,240 | 113,890 |
| Net increase (decrease) in net assets resulting from operations | 574,971 | 299,789 |
| Distributions to shareholders | (179,542) | (276,381) |
| Share transactions - net increase (decrease) | 8,637,532 | (739,305) |
| Total increase (decrease) in net assets | 9,032,961 | (715,897) |
| Net Assets | ||
| Beginning of period | 6,332,505 | 7,048,402 |
| End of period | $15,365,466 | $6,332,505 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement Income Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $57.74 | $57.55 | $61.00 | $59.02 | $58.61 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .684 | 1.029 | .884 | .756 | .758 |
| Net realized and unrealized gain (loss) | 3.226 | 1.594 | .494 | 2.008 | .457 |
| Total from investment operations | 3.910 | 2.623 | 1.378 | 2.764 | 1.215 |
| Distributions from net investment income | (.776) | (1.047) | (.853) | (.717) | (.754) |
| Distributions from net realized gain | (.434) | (1.386) | (3.975) | (.067) | (.051) |
| Total distributions | (1.210) | (2.433) | (4.828) | (.784) | (.805) |
| Net asset value, end of period | $60.44 | $57.74 | $57.55 | $61.00 | $59.02 |
| Total ReturnB,C | 6.86% | 4.78% | 2.35% | 4.73% | 2.12% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .70% | .71% | .71%F | .32% | .25% |
| Expenses net of fee waivers, if any | .70% | .71% | .71%F | .32% | .25% |
| Expenses net of all reductions | .70% | .71% | .71%F | .32% | .25% |
| Net investment income (loss) | 1.18% | 1.83% | 1.51% | 1.27% | 1.32% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $453 | $177 | $147 | $287 | $293 |
| Portfolio turnover rateE | 62%G | 68% | 19% | 111% | 47% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
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 On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
G The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $57.73 | $57.54 | $61.00 | $59.01 | $58.61 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .829 | 1.170 | 1.024 | .905 | .901 |
| Net realized and unrealized gain (loss) | 3.220 | 1.589 | .512 | 2.003 | .452 |
| Total from investment operations | 4.049 | 2.759 | 1.536 | 2.908 | 1.353 |
| Distributions from net investment income | (.925) | (1.183) | (1.021) | (.851) | (.902) |
| Distributions from net realized gain | (.434) | (1.386) | (3.975) | (.067) | (.051) |
| Total distributions | (1.359) | (2.569) | (4.996) | (.918) | (.953) |
| Net asset value, end of period | $60.42 | $57.73 | $57.54 | $61.00 | $59.01 |
| Total ReturnB | 7.12% | 5.04% | 2.63% | 4.98% | 2.37% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .45% | .46% | .47% | .07% | - %E |
| Expenses net of fee waivers, if any | .45% | .46% | .47% | .07% | -% |
| Expenses net of all reductions | .45% | .46% | .46% | .07% | -% |
| Net investment income (loss) | 1.43% | 2.08% | 1.76% | 1.52% | 1.57% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $13,965 | $6,060 | $6,734 | $10,828 | $13,227 |
| Portfolio turnover rateD | 62%F | 68% | 19% | 111% | 47% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
F The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class K
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $57.81 |
| Income from Investment Operations | |
| Net investment income (loss)B | .889 |
| Net realized and unrealized gain (loss) | 3.146 |
| Total from investment operations | 4.035 |
| Distributions from net investment income | (.981) |
| Distributions from net realized gain | (.434) |
| Total distributions | (1.415) |
| Net asset value, end of period | $60.43 |
| Total ReturnC | 7.09% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .35% |
| Expenses net of fee waivers, if any | .35% |
| Expenses net of all reductions | .35% |
| Net investment income (loss) | 1.53% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $107 |
| Portfolio turnover rateE | 62%F |
A For the period August 1, 2019 (commencement of sale of shares) to July 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 The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class K6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $57.81 |
| Income from Investment Operations | |
| Net investment income (loss)B | .941 |
| Net realized and unrealized gain (loss) | 3.151 |
| Total from investment operations | 4.092 |
| Distributions from net investment income | (1.048) |
| Distributions from net realized gain | (.434) |
| Total distributions | (1.482) |
| Net asset value, end of period | $60.42 |
| Total ReturnC | 7.20% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .25% |
| Expenses net of fee waivers, if any | .25% |
| Expenses net of all reductions | .25% |
| Net investment income (loss) | 1.62% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $434 |
| Portfolio turnover rateE | 62%F |
A For the period August 1, 2019 (commencement of sale of shares) to July 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 The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $57.71 | $57.52 | $60.99 | $58.99 | $58.59 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .828 | 1.167 | 1.025 | .906 | .899 |
| Net realized and unrealized gain (loss) | 3.233 | 1.593 | .500 | 2.013 | .454 |
| Total from investment operations | 4.061 | 2.760 | 1.525 | 2.919 | 1.353 |
| Distributions from net investment income | (.857) | (1.184) | (1.020) | (.852) | (.902) |
| Distributions from net realized gain | (.434) | (1.386) | (3.975) | (.067) | (.051) |
| Total distributions | (1.291) | (2.570) | (4.995) | (.919) | (.953) |
| Net asset value, end of period | $60.48 | $57.71 | $57.52 | $60.99 | $58.99 |
| Total ReturnB | 7.14% | 5.04% | 2.62% | 5.01% | 2.37% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .45% | .46% | .46%E | .07% | - %F |
| Expenses net of fee waivers, if any | .45% | .46% | .46%E | .07% | -% |
| Expenses net of all reductions | .45% | .46% | .46%E | .07% | -% |
| Net investment income (loss) | 1.43% | 2.08% | 1.76% | 1.52% | 1.57% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $300 | $96 | $61 | $94 | $131 |
| Portfolio turnover rateD | 62%G | 68% | 19% | 111% | 47% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
F Amount represents less than .005%.
G The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement Income Fund Class Z6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $57.79 |
| Income from Investment Operations | |
| Net investment income (loss)B | .947 |
| Net realized and unrealized gain (loss) | 3.145 |
| Total from investment operations | 4.092 |
| Distributions from net investment income | (1.038) |
| Distributions from net realized gain | (.434) |
| Total distributions | (1.472) |
| Net asset value, end of period | $60.41 |
| Total ReturnC | 7.20% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .25% |
| Expenses net of fee waivers, if any | .25% |
| Expenses net of all reductions | .25% |
| Net investment income (loss) | 1.62% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $107 |
| Portfolio turnover rateE | 62%F |
A For the period August 1, 2019 (commencement of sale of shares) to July 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 The portfolio turnover rate does not include the assets acquired in the merger.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Treasury Bill Index Fund | 15.1 |
| Fidelity Series Investment Grade Bond Fund | 10.9 |
| Fidelity Series Inflation-Protected Bond Index Fund | 10.7 |
| Fidelity Series Government Bond Index Fund | 9.7 |
| Fidelity Series Corporate Bond Fund | 8.2 |
| Fidelity Series Investment Grade Securitized Fund | 7.4 |
| Fidelity Series Emerging Markets Opportunities Fund | 7.2 |
| Fidelity Series Short-Term Credit Fund | 4.4 |
| Fidelity Series Large Cap Value Index Fund | 3.2 |
| Fidelity Series Commodity Strategy Fund | 2.5 |
| 79.3 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 13.3% | |
| International Equity Funds | 15.3% | |
| Bond Funds | 51.2% | |
| Short-Term Funds | 20.2% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2010 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 13.3% | |||
| Shares | Value | ||
| Fidelity Series Blue Chip Growth Fund (a) | 9,757 | $187,832 | |
| Fidelity Series Commodity Strategy Fund (a) | 48,563 | 197,167 | |
| Fidelity Series Large Cap Growth Index Fund (a) | 9,521 | 128,909 | |
| Fidelity Series Large Cap Stock Fund (a) | 9,143 | 131,752 | |
| Fidelity Series Large Cap Value Index Fund (a) | 21,849 | 249,520 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 4,971 | 62,936 | |
| Fidelity Series Value Discovery Fund (a) | 7,388 | 89,027 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,024,693) | 1,047,143 | ||
| International Equity Funds - 15.3% | |||
| Fidelity Series Canada Fund (a) | 5,230 | 52,774 | |
| Fidelity Series Emerging Markets Fund (a) | 6,674 | 62,004 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 27,372 | 565,776 | |
| Fidelity Series International Growth Fund (a) | 7,788 | 139,876 | |
| Fidelity Series International Index Fund (a) | 5,933 | 57,430 | |
| Fidelity Series International Small Cap Fund (a) | 2,801 | 46,937 | |
| Fidelity Series International Value Fund (a) | 16,327 | 139,434 | |
| Fidelity Series Overseas Fund (a) | 12,894 | 140,153 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,113,520) | 1,204,384 | ||
| Bond Funds - 51.2% | |||
| Fidelity Series Corporate Bond Fund (a) | 56,680 | 649,552 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 5,714 | 52,451 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,194 | 10,459 | |
| Fidelity Series Government Bond Index Fund (a) | 67,506 | 768,214 | |
| Fidelity Series High Income Fund (a) | 6,024 | 55,302 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 79,982 | 847,006 | |
| Fidelity Series International Credit Fund (a) | 568 | 5,896 | |
| Fidelity Series Investment Grade Bond Fund (a) | 69,454 | 857,060 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 54,296 | 579,334 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 16,865 | 182,310 | |
| Fidelity Series Real Estate Income Fund (a) | 3,140 | 31,209 | |
| TOTAL BOND FUNDS | |||
| (Cost $3,675,288) | 4,038,793 | ||
| Short-Term Funds - 20.2% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 53,058 | 53,058 | |
| Fidelity Series Short-Term Credit Fund (a) | 34,048 | 349,334 | |
| Fidelity Series Treasury Bill Index Fund (a) | 118,753 | 1,188,717 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $1,580,022) | 1,591,109 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $7,393,523) | 7,881,429 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (131) | ||
| NET ASSETS - 100% | $7,881,298 |
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 | $20,016 | $70,766 | $5,658 | $(7,417) | $5,465 | $-- |
| Fidelity Series Blue Chip Growth Fund | 91,376 | 173,405 | 101,707 | 10,266 | 4,854 | 19,904 | 187,832 |
| Fidelity Series Canada Fund | 35,214 | 49,127 | 27,818 | 890 | (3,082) | (667) | 52,774 |
| Fidelity Series Commodity Strategy Fund | 328,115 | 121,788 | 196,109 | 5,254 | (38,405) | (18,222) | 197,167 |
| Fidelity Series Corporate Bond Fund | 669,120 | 211,398 | 283,465 | 25,545 | 3,978 | 48,521 | 649,552 |
| Fidelity Series Emerging Markets Debt Fund | 67,367 | 15,873 | 26,748 | 3,426 | (1,857) | (2,184) | 52,451 |
| Fidelity Series Emerging Markets Fund | 46,580 | 39,875 | 25,883 | 1,291 | (757) | 2,189 | 62,004 |
| Fidelity Series Emerging Markets Opportunities Fund | 415,644 | 339,433 | 252,294 | 12,944 | 3,198 | 59,795 | 565,776 |
| Fidelity Series Floating Rate High Income Fund | 13,969 | 2,338 | 4,868 | 708 | (376) | (604) | 10,459 |
| Fidelity Series Government Bond Index Fund | 917,512 | 224,025 | 456,803 | 20,864 | 25,940 | 57,540 | 768,214 |
| Fidelity Series Government Money Market Fund 0.23% | 350,940 | 392,771 | 690,653 | 4,574 | -- | -- | 53,058 |
| Fidelity Series Growth Company Fund | 183,479 | 81,699 | 291,835 | 17,616 | 48,436 | (21,779) | -- |
| Fidelity Series High Income Fund | 70,577 | 12,332 | 24,375 | 4,163 | (1,697) | (1,535) | 55,302 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,010,607 | 219,060 | 431,871 | 13,661 | 7,280 | 41,930 | 847,006 |
| Fidelity Series International Credit Fund | 5,466 | 345 | -- | 345 | -- | 85 | 5,896 |
| Fidelity Series International Growth Fund | 322,663 | 58,690 | 256,476 | 11,036 | 12,896 | 2,103 | 139,876 |
| Fidelity Series International Index Fund | -- | 66,957 | 10,421 | -- | 241 | 653 | 57,430 |
| Fidelity Series International Small Cap Fund | 70,113 | 19,770 | 45,304 | 3,331 | (1,445) | 3,803 | 46,937 |
| Fidelity Series International Value Fund | 301,895 | 91,880 | 226,022 | 12,247 | (32,556) | 4,237 | 139,434 |
| Fidelity Series Intrinsic Opportunities Fund | 223,921 | 107,838 | 317,380 | 11,558 | (17,907) | 3,528 | -- |
| Fidelity Series Investment Grade Bond Fund | 976,691 | 218,177 | 405,694 | 28,731 | 9,409 | 58,477 | 857,060 |
| Fidelity Series Investment Grade Securitized Fund | 692,424 | 175,952 | 307,717 | 21,786 | 4,329 | 14,346 | 579,334 |
| Fidelity Series Large Cap Growth Index Fund | -- | 142,625 | 25,495 | -- | 1,402 | 10,377 | 128,909 |
| Fidelity Series Large Cap Stock Fund | 196,487 | 93,096 | 149,344 | 10,897 | (4,260) | (4,227) | 131,752 |
| Fidelity Series Large Cap Value Index Fund | 56,421 | 266,468 | 69,388 | 3,373 | (1,433) | (2,548) | 249,520 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 373,977 | 79,119 | 313,096 | 27,047 | 35,283 | 7,027 | 182,310 |
| Fidelity Series Opportunistic Insights Fund | 100,955 | 44,548 | 144,737 | 9,643 | 8,085 | (8,851) | -- |
| Fidelity Series Overseas Fund | 14,003 | 235,778 | 120,791 | 534 | (4,357) | 15,520 | 140,153 |
| Fidelity Series Real Estate Income Fund | 44,696 | 7,815 | 15,273 | 2,695 | (2,038) | (3,991) | 31,209 |
| Fidelity Series Short-Term Credit Fund | 351,007 | 60,969 | 69,532 | 9,197 | (577) | 7,467 | 349,334 |
| Fidelity Series Small Cap Discovery Fund | 27,345 | 9,887 | 34,631 | 1,082 | (2,686) | 85 | -- |
| Fidelity Series Small Cap Opportunities Fund | 82,904 | 45,168 | 57,698 | 5,490 | (31) | (7,407) | 62,936 |
| Fidelity Series Stock Selector Large Cap Value Fund | 151,664 | 63,974 | 198,902 | 8,893 | (17,448) | 712 | -- |
| Fidelity Series Treasury Bill Index Fund | 1,052,425 | 340,768 | 206,713 | 17,212 | 119 | 2,118 | 1,188,717 |
| Fidelity Series Value Discovery Fund | 108,376 | 65,388 | 78,244 | 4,681 | (3,427) | (3,066) | 89,027 |
| $9,406,635 | $4,098,352 | $5,938,053 | $316,638 | $23,694 | $290,801 | $7,881,429 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $1,047,143 | $1,047,143 | $-- | $-- |
| International Equity Funds | 1,204,384 | 1,204,384 | -- | -- |
| Bond Funds | 4,038,793 | 4,038,793 | -- | -- |
| Short-Term Funds | 1,591,109 | 1,591,109 | -- | -- |
| Total Investments in Securities: | $7,881,429 | $7,881,429 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $7,393,523) | $7,881,429 | |
| Total Investment in Securities (cost $7,393,523) | $7,881,429 | |
| Cash | 56 | |
| Receivable for investments sold | 82,380 | |
| Receivable for fund shares sold | 9,083 | |
| Total assets | 7,972,948 | |
| Liabilities | ||
| Payable for investments purchased | $87,982 | |
| Payable for fund shares redeemed | 500 | |
| Accrued management fee | 3,129 | |
| Distribution and service plan fees payable | 39 | |
| Total liabilities | 91,650 | |
| Net Assets | $7,881,298 | |
| Net Assets consist of: | ||
| Paid in capital | $7,347,711 | |
| Total accumulated earnings (loss) | 533,587 | |
| Net Assets | $7,881,298 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($187,834 ÷ 3,194.83 shares)(a) | $58.79 | |
| Maximum offering price per share (100/94.25 of $58.79) | $62.38 | |
| Fidelity Managed Retirement 2010: | ||
| Net Asset Value, offering price and redemption price per share ($7,144,386 ÷ 121,453.35 shares) | $58.82 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($107,524 ÷ 1,828.29 shares) | $58.81 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($159,978 ÷ 2,719.94 shares) | $58.82 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($112,728 ÷ 1,916.65 shares) | $58.82 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($168,848 ÷ 2,871.30 shares) | $58.81 |
(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
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $191,691 | |
| Expenses | ||
| Management fee | $41,724 | |
| Distribution and service plan fees | 498 | |
| Independent trustees' fees and expenses | 33 | |
| Total expenses before reductions | 42,255 | |
| Expense reductions | (1) | |
| Total expenses after reductions | 42,254 | |
| Net investment income (loss) | 149,437 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 8 | |
| Affiliated issuers | 23,694 | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 124,947 | |
| Total net realized gain (loss) | 148,649 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 290,801 | |
| Total change in net unrealized appreciation (depreciation) | 290,801 | |
| Net gain (loss) | 439,450 | |
| Net increase (decrease) in net assets resulting from operations | $588,887 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $149,437 | $177,294 |
| Net realized gain (loss) | 148,649 | 133,568 |
| Change in net unrealized appreciation (depreciation) | 290,801 | 82,087 |
| Net increase (decrease) in net assets resulting from operations | 588,887 | 392,949 |
| Distributions to shareholders | (280,214) | (468,982) |
| Share transactions - net increase (decrease) | (1,830,376) | 122,979 |
| Total increase (decrease) in net assets | (1,521,703) | 46,946 |
| Net Assets | ||
| Beginning of period | 9,403,001 | 9,356,055 |
| End of period | $7,881,298 | $9,403,001 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2010 Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $56.34 | $56.78 | $63.87 | $60.07 | $61.33 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .777 | .979 | .808 | .789 | .799 |
| Net realized and unrealized gain (loss) | 3.204 | 1.401 | 1.278 | 4.240 | .112 |
| Total from investment operations | 3.981 | 2.380 | 2.086 | 5.029 | .911 |
| Distributions from net investment income | (.812) | (1.001) | (.794) | (.754) | (.794) |
| Distributions from net realized gain | (.719) | (1.819) | (8.382) | (.475) | (1.377) |
| Total distributions | (1.531) | (2.820) | (9.176) | (1.229) | (2.171) |
| Net asset value, end of period | $58.79 | $56.34 | $56.78 | $63.87 | $60.07 |
| Total ReturnB,C | 7.19% | 4.47% | 3.60% | 8.51% | 1.67% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .71% | .75% | .78% | .33% | .25% |
| Expenses net of fee waivers, if any | .71% | .75% | .78% | .33% | .25% |
| Expenses net of all reductions | .71% | .75% | .78% | .33% | .25% |
| Net investment income (loss) | 1.37% | 1.78% | 1.40% | 1.29% | 1.38% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $188 | $202 | $133 | $136 | $156 |
| Portfolio turnover rateE | 45% | 62% | 21% | 117% | 26% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $56.37 | $56.80 | $63.88 | $60.07 | $61.33 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .920 | 1.113 | .955 | .942 | .944 |
| Net realized and unrealized gain (loss) | 3.204 | 1.402 | 1.280 | 4.236 | .116 |
| Total from investment operations | 4.124 | 2.515 | 2.235 | 5.178 | 1.060 |
| Distributions from net investment income | (.955) | (1.126) | (.933) | (.893) | (.943) |
| Distributions from net realized gain | (.719) | (1.819) | (8.382) | (.475) | (1.377) |
| Total distributions | (1.674) | (2.945) | (9.315) | (1.368) | (2.320) |
| Net asset value, end of period | $58.82 | $56.37 | $56.80 | $63.88 | $60.07 |
| Total ReturnB | 7.46% | 4.73% | 3.87% | 8.78% | 1.93% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .46% | .50% | .53% | .08% | - %E |
| Expenses net of fee waivers, if any | .46% | .50% | .53% | .08% | -% |
| Expenses net of all reductions | .46% | .50% | .53% | .08% | -% |
| Net investment income (loss) | 1.62% | 2.02% | 1.65% | 1.54% | 1.63% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $7,144 | $9,091 | $9,054 | $11,140 | $13,819 |
| Portfolio turnover rateD | 45% | 62% | 21% | 117% | 26% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class K
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $56.39 |
| Income from Investment Operations | |
| Net investment income (loss)B | .976 |
| Net realized and unrealized gain (loss) | 3.182 |
| Total from investment operations | 4.158 |
| Distributions from net investment income | (1.019) |
| Distributions from net realized gain | (.719) |
| Total distributions | (1.738) |
| Net asset value, end of period | $58.81 |
| Total ReturnC,D | 7.52% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .36% |
| Expenses net of fee waivers, if any | .36% |
| Expenses net of all reductions | .36% |
| Net investment income (loss) | 1.72% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $108 |
| Portfolio turnover rateF | 45% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class K6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $56.39 |
| Income from Investment Operations | |
| Net investment income (loss)B | 1.029 |
| Net realized and unrealized gain (loss) | 3.191 |
| Total from investment operations | 4.220 |
| Distributions from net investment income | (1.071) |
| Distributions from net realized gain | (.719) |
| Total distributions | (1.790) |
| Net asset value, end of period | $58.82 |
| Total ReturnC,D | 7.64% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .26% |
| Expenses net of fee waivers, if any | .26% |
| Expenses net of all reductions | .26% |
| Net investment income (loss) | 1.82% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $160 |
| Portfolio turnover rateF | 45% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $56.36 | $56.79 | $63.88 | $60.07 | $61.33 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .919 | 1.105 | .950 | .942 | .942 |
| Net realized and unrealized gain (loss) | 3.213 | 1.414 | 1.280 | 4.238 | .118 |
| Total from investment operations | 4.132 | 2.519 | 2.230 | 5.180 | 1.060 |
| Distributions from net investment income | (.953) | (1.130) | (.938) | (.895) | (.943) |
| Distributions from net realized gain | (.719) | (1.819) | (8.382) | (.475) | (1.377) |
| Total distributions | (1.672) | (2.949) | (9.320) | (1.370) | (2.320) |
| Net asset value, end of period | $58.82 | $56.36 | $56.79 | $63.88 | $60.07 |
| Total ReturnB | 7.47% | 4.74% | 3.86% | 8.78% | 1.93% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .46% | .50% | .53% | .08% | - %E |
| Expenses net of fee waivers, if any | .46% | .50% | .53% | .08% | -% |
| Expenses net of all reductions | .46% | .50% | .53% | .08% | -% |
| Net investment income (loss) | 1.62% | 2.03% | 1.65% | 1.54% | 1.63% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $113 | $110 | $35 | $33 | $31 |
| Portfolio turnover rateD | 45% | 62% | 21% | 117% | 26% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2010 Fund Class Z6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $56.38 |
| Income from Investment Operations | |
| Net investment income (loss)B | 1.029 |
| Net realized and unrealized gain (loss) | 3.191 |
| Total from investment operations | 4.220 |
| Distributions from net investment income | (1.071) |
| Distributions from net realized gain | (.719) |
| Total distributions | (1.790) |
| Net asset value, end of period | $58.81 |
| Total ReturnC,D | 7.64% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .26% |
| Expenses net of fee waivers, if any | .26% |
| Expenses net of all reductions | .26% |
| Net investment income (loss) | 1.82% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $169 |
| Portfolio turnover rateF | 45% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Treasury Bill Index Fund | 10.7 |
| Fidelity Series Investment Grade Bond Fund | 10.0 |
| Fidelity Series Inflation-Protected Bond Index Fund | 9.5 |
| Fidelity Series Government Bond Index Fund | 9.0 |
| Fidelity Series Emerging Markets Opportunities Fund | 8.1 |
| Fidelity Series Corporate Bond Fund | 7.6 |
| Fidelity Series Investment Grade Securitized Fund | 6.8 |
| Fidelity Series Large Cap Value Index Fund | 4.6 |
| Fidelity Series Blue Chip Growth Fund | 3.5 |
| Fidelity Series Short-Term Credit Fund | 3.1 |
| 72.9 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 18.2% | |
| International Equity Funds | 18.6% | |
| Bond Funds | 47.1% | |
| Short-Term Funds | 16.1% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2015 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 18.2% | |||
| Shares | Value | ||
| Fidelity Series Blue Chip Growth Fund (a) | 12,268 | $236,160 | |
| Fidelity Series Commodity Strategy Fund (a) | 41,793 | 169,680 | |
| Fidelity Series Large Cap Growth Index Fund (a) | 11,968 | 162,050 | |
| Fidelity Series Large Cap Stock Fund (a) | 11,495 | 165,650 | |
| Fidelity Series Large Cap Value Index Fund (a) | 27,470 | 313,704 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 6,250 | 79,129 | |
| Fidelity Series Value Discovery Fund (a) | 9,289 | 111,933 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,191,503) | 1,238,306 | ||
| International Equity Funds - 18.6% | |||
| Fidelity Series Canada Fund (a) | 5,920 | 59,736 | |
| Fidelity Series Emerging Markets Fund (a) | 6,456 | 59,972 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 26,450 | 546,722 | |
| Fidelity Series International Growth Fund (a) | 8,816 | 158,331 | |
| Fidelity Series International Index Fund (a) | 6,716 | 65,010 | |
| Fidelity Series International Small Cap Fund (a) | 3,170 | 53,133 | |
| Fidelity Series International Value Fund (a) | 18,482 | 157,835 | |
| Fidelity Series Overseas Fund (a) | 14,595 | 158,643 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,152,192) | 1,259,382 | ||
| Bond Funds - 47.1% | |||
| Fidelity Series Corporate Bond Fund (a) | 44,958 | 515,219 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 4,805 | 44,112 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,061 | 9,293 | |
| Fidelity Series Government Bond Index Fund (a) | 53,548 | 609,378 | |
| Fidelity Series High Income Fund (a) | 5,277 | 48,442 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 60,459 | 640,264 | |
| Fidelity Series International Credit Fund (a) | 247 | 2,563 | |
| Fidelity Series Investment Grade Bond Fund (a) | 55,089 | 679,797 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 43,073 | 459,586 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 14,512 | 156,874 | |
| Fidelity Series Real Estate Income Fund (a) | 2,814 | 27,974 | |
| TOTAL BOND FUNDS | |||
| (Cost $2,942,359) | 3,193,502 | ||
| Short-Term Funds - 16.1% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 153,729 | 153,729 | |
| Fidelity Series Short-Term Credit Fund (a) | 20,574 | 211,091 | |
| Fidelity Series Treasury Bill Index Fund (a) | 72,410 | 724,826 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $1,083,743) | 1,089,646 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $6,369,797) | 6,780,836 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (165) | ||
| NET ASSETS - 100% | $6,780,671 |
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 | $33,197 | $68,501 | $5,328 | $(3,566) | $2,611 | $-- |
| Fidelity Series Blue Chip Growth Fund | 62,921 | 219,761 | 79,982 | 7,470 | 2,449 | 31,011 | 236,160 |
| Fidelity Series Canada Fund | 21,667 | 58,601 | 19,018 | 697 | (3,110) | 1,596 | 59,736 |
| Fidelity Series Commodity Strategy Fund | 161,347 | 148,586 | 105,310 | 2,910 | (18,533) | (16,410) | 169,680 |
| Fidelity Series Corporate Bond Fund | 302,167 | 307,107 | 132,660 | 15,300 | 346 | 38,259 | 515,219 |
| Fidelity Series Emerging Markets Debt Fund | 33,075 | 25,634 | 12,966 | 2,235 | (592) | (1,039) | 44,112 |
| Fidelity Series Emerging Markets Fund | 26,368 | 44,642 | 13,871 | 925 | (320) | 3,153 | 59,972 |
| Fidelity Series Emerging Markets Opportunities Fund | 232,452 | 387,019 | 134,420 | 9,270 | (1,786) | 63,457 | 546,722 |
| Fidelity Series Floating Rate High Income Fund | 6,880 | 5,095 | 2,157 | 463 | (45) | (480) | 9,293 |
| Fidelity Series Government Bond Index Fund | 414,341 | 370,734 | 227,790 | 12,195 | 4,122 | 47,971 | 609,378 |
| Fidelity Series Government Money Market Fund 0.23% | 140,280 | 385,423 | 371,974 | 2,204 | -- | -- | 153,729 |
| Fidelity Series Growth Company Fund | 126,450 | 124,973 | 284,768 | 15,712 | 48,301 | (14,956) | -- |
| Fidelity Series High Income Fund | 34,706 | 25,893 | 10,810 | 2,724 | (198) | (1,149) | 48,442 |
| Fidelity Series Inflation-Protected Bond Index Fund | 401,453 | 382,964 | 177,682 | 7,746 | 846 | 32,683 | 640,264 |
| Fidelity Series International Credit Fund | 2,376 | 150 | -- | 150 | -- | 37 | 2,563 |
| Fidelity Series International Growth Fund | 196,251 | 126,975 | 181,765 | 8,681 | 2,887 | 13,983 | 158,331 |
| Fidelity Series International Index Fund | -- | 71,845 | 7,559 | -- | (15) | 739 | 65,010 |
| Fidelity Series International Small Cap Fund | 42,909 | 38,230 | 31,412 | 2,617 | (838) | 4,244 | 53,133 |
| Fidelity Series International Value Fund | 185,785 | 150,354 | 157,866 | 9,634 | (18,332) | (2,106) | 157,835 |
| Fidelity Series Intrinsic Opportunities Fund | 154,328 | 156,602 | 301,295 | 8,618 | (11,957) | 2,322 | -- |
| Fidelity Series Investment Grade Bond Fund | 441,064 | 384,103 | 192,705 | 17,381 | 1,097 | 46,238 | 679,797 |
| Fidelity Series Investment Grade Securitized Fund | 312,694 | 283,170 | 149,239 | 12,412 | 393 | 12,568 | 459,586 |
| Fidelity Series Large Cap Growth Index Fund | -- | 168,525 | 20,172 | -- | 666 | 13,031 | 162,050 |
| Fidelity Series Large Cap Stock Fund | 135,412 | 138,208 | 102,739 | 8,460 | (3,002) | (2,229) | 165,650 |
| Fidelity Series Large Cap Value Index Fund | 38,823 | 320,514 | 42,219 | 3,012 | (1,576) | (1,838) | 313,704 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 188,601 | 117,602 | 177,727 | 17,284 | 13,313 | 15,085 | 156,874 |
| Fidelity Series Opportunistic Insights Fund | 69,530 | 69,313 | 141,233 | 8,673 | 8,553 | (6,163) | -- |
| Fidelity Series Overseas Fund | 14,479 | 229,162 | 100,654 | 417 | (3,909) | 19,565 | 158,643 |
| Fidelity Series Real Estate Income Fund | 22,008 | 16,170 | 6,772 | 1,646 | (316) | (3,116) | 27,974 |
| Fidelity Series Short-Term Credit Fund | 140,305 | 94,915 | 28,541 | 4,701 | (34) | 4,446 | 211,091 |
| Fidelity Series Small Cap Discovery Fund | 18,769 | 17,178 | 33,907 | 967 | (1,951) | (89) | -- |
| Fidelity Series Small Cap Opportunities Fund | 56,900 | 71,228 | 44,654 | 3,988 | (1,539) | (2,806) | 79,129 |
| Fidelity Series Stock Selector Large Cap Value Fund | 104,504 | 96,731 | 186,641 | 8,176 | (14,532) | (62) | -- |
| Fidelity Series Treasury Bill Index Fund | 420,683 | 384,440 | 81,046 | 8,760 | 34 | 715 | 724,826 |
| Fidelity Series Value Discovery Fund | 74,651 | 92,761 | 50,642 | 4,260 | (2,141) | (2,696) | 111,933 |
| $4,620,438 | $5,547,805 | $3,680,697 | $215,016 | $(5,285) | $298,575 | $6,780,836 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $1,238,306 | $1,238,306 | $-- | $-- |
| International Equity Funds | 1,259,382 | 1,259,382 | -- | -- |
| Bond Funds | 3,193,502 | 3,193,502 | -- | -- |
| Short-Term Funds | 1,089,646 | 1,089,646 | -- | -- |
| Total Investments in Securities: | $6,780,836 | $6,780,836 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $6,369,797) | $6,780,836 | |
| Total Investment in Securities (cost $6,369,797) | $6,780,836 | |
| Cash | 5 | |
| Receivable for investments sold | 78,694 | |
| Total assets | 6,859,535 | |
| Liabilities | ||
| Payable for investments purchased | $73,588 | |
| Payable for fund shares redeemed | 2,485 | |
| Accrued management fee | 2,579 | |
| Distribution and service plan fees payable | 212 | |
| Total liabilities | 78,864 | |
| Net Assets | $6,780,671 | |
| Net Assets consist of: | ||
| Paid in capital | $6,344,765 | |
| Total accumulated earnings (loss) | 435,906 | |
| Net Assets | $6,780,671 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($1,023,901 ÷ 18,446.96 shares)(a) | $55.51 | |
| Maximum offering price per share (100/94.25 of $55.51) | $58.90 | |
| Fidelity Managed Retirement 2015: | ||
| Net Asset Value, offering price and redemption price per share ($5,155,093 ÷ 92,841.17 shares) | $55.53 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($107,976 ÷ 1,944.85 shares) | $55.52 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($111,731 ÷ 2,012.24 shares) | $55.53 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($273,879 ÷ 4,931.54 shares) | $55.54 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($108,091 ÷ 1,945.90 shares) | $55.55 |
(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
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $122,516 | |
| Expenses | ||
| Management fee | $27,708 | |
| Distribution and service plan fees | 1,814 | |
| Independent trustees' fees and expenses | 20 | |
| Total expenses | 29,542 | |
| Net investment income (loss) | 92,974 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 2 | |
| Affiliated issuers | (5,285) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 92,500 | |
| Total net realized gain (loss) | 87,217 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 298,575 | |
| Total change in net unrealized appreciation (depreciation) | 298,575 | |
| Net gain (loss) | 385,792 | |
| Net increase (decrease) in net assets resulting from operations | $478,766 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $92,974 | $79,030 |
| Net realized gain (loss) | 87,217 | 80,235 |
| Change in net unrealized appreciation (depreciation) | 298,575 | 17,814 |
| Net increase (decrease) in net assets resulting from operations | 478,766 | 177,079 |
| Distributions to shareholders | (177,176) | (238,281) |
| Share transactions - net increase (decrease) | 1,860,533 | 441,794 |
| Total increase (decrease) in net assets | 2,162,123 | 380,592 |
| Net Assets | ||
| Beginning of period | 4,618,548 | 4,237,956 |
| End of period | $6,780,671 | $4,618,548 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2015 Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $53.13 | $53.98 | $64.42 | $59.82 | $61.43 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .690 | .887 | .739 | .798 | .797 |
| Net realized and unrealized gain (loss) | 3.244 | 1.236 | 1.737 | 4.786 | (.018) |
| Total from investment operations | 3.934 | 2.123 | 2.476 | 5.584 | .779 |
| Distributions from net investment income | (.769) | (.884) | (.726) | (.755) | (.795) |
| Distributions from net realized gain | (.785) | (2.089) | (12.190) | (.229) | (1.594) |
| Total distributions | (1.554) | (2.973) | (12.916) | (.984) | (2.389) |
| Net asset value, end of period | $55.51 | $53.13 | $53.98 | $64.42 | $59.82 |
| Total ReturnB,C | 7.54% | 4.26% | 4.46% | 9.45% | 1.47% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .72% | .78% | .83% | .33% | .25% |
| Expenses net of fee waivers, if any | .72% | .78% | .83% | .33% | .25% |
| Expenses net of all reductions | .72% | .78% | .82% | .33% | .25% |
| Net investment income (loss) | 1.30% | 1.71% | 1.34% | 1.30% | 1.38% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,024 | $244 | $246 | $289 | $280 |
| Portfolio turnover rateE | 61% | 67% | 20% | 106% | 33% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $53.11 | $53.97 | $64.41 | $59.81 | $61.42 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .825 | 1.017 | .879 | .950 | .940 |
| Net realized and unrealized gain (loss) | 3.250 | 1.226 | 1.740 | 4.778 | (.017) |
| Total from investment operations | 4.075 | 2.243 | 2.619 | 5.728 | .923 |
| Distributions from net investment income | (.870) | (1.014) | (.869) | (.899) | (.939) |
| Distributions from net realized gain | (.785) | (2.089) | (12.190) | (.229) | (1.594) |
| Total distributions | (1.655) | (3.103) | (13.059) | (1.128) | (2.533) |
| Net asset value, end of period | $55.53 | $53.11 | $53.97 | $64.41 | $59.81 |
| Total ReturnB | 7.83% | 4.50% | 4.73% | 9.71% | 1.73% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .47% | .53% | .58% | .08% | - %E |
| Expenses net of fee waivers, if any | .47% | .53% | .58% | .08% | -% |
| Expenses net of all reductions | .47% | .53% | .57% | .08% | -% |
| Net investment income (loss) | 1.55% | 1.96% | 1.59% | 1.55% | 1.63% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,155 | $4,087 | $3,714 | $4,885 | $6,996 |
| Portfolio turnover rateD | 61% | 67% | 20% | 106% | 33% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class K
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $53.08 |
| Income from Investment Operations | |
| Net investment income (loss)B | .879 |
| Net realized and unrealized gain (loss) | 3.270 |
| Total from investment operations | 4.149 |
| Distributions from net investment income | (.924) |
| Distributions from net realized gain | (.785) |
| Total distributions | (1.709) |
| Net asset value, end of period | $55.52 |
| Total ReturnC | 7.98% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .37% |
| Expenses net of fee waivers, if any | .37% |
| Expenses net of all reductions | .37% |
| Net investment income (loss) | 1.65% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $108 |
| Portfolio turnover rateE | 61% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class K6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $53.08 |
| Income from Investment Operations | |
| Net investment income (loss)B | .932 |
| Net realized and unrealized gain (loss) | 3.274 |
| Total from investment operations | 4.206 |
| Distributions from net investment income | (.971) |
| Distributions from net realized gain | (.785) |
| Total distributions | (1.756) |
| Net asset value, end of period | $55.53 |
| Total ReturnC | 8.09% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .27% |
| Expenses net of fee waivers, if any | .27% |
| Expenses net of all reductions | .27% |
| Net investment income (loss) | 1.75% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $112 |
| Portfolio turnover rateE | 61% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $53.12 | $53.98 | $64.42 | $59.81 | $61.42 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .827 | 1.015 | .877 | .951 | .940 |
| Net realized and unrealized gain (loss) | 3.242 | 1.227 | 1.742 | 4.788 | (.017) |
| Total from investment operations | 4.069 | 2.242 | 2.619 | 5.739 | .923 |
| Distributions from net investment income | (.864) | (1.013) | (.869) | (.900) | (.939) |
| Distributions from net realized gain | (.785) | (2.089) | (12.190) | (.229) | (1.594) |
| Total distributions | (1.649) | (3.102) | (13.059) | (1.129) | (2.533) |
| Net asset value, end of period | $55.54 | $53.12 | $53.98 | $64.42 | $59.81 |
| Total ReturnB | 7.81% | 4.50% | 4.73% | 9.73% | 1.73% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .47% | .53% | .58% | .08% | - %E |
| Expenses net of fee waivers, if any | .47% | .53% | .58% | .08% | -% |
| Expenses net of all reductions | .47% | .53% | .57% | .08% | -% |
| Net investment income (loss) | 1.55% | 1.97% | 1.59% | 1.55% | 1.63% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $274 | $287 | $185 | $252 | $232 |
| Portfolio turnover rateD | 61% | 67% | 20% | 106% | 33% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2015 Fund Class Z6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $53.09 |
| Income from Investment Operations | |
| Net investment income (loss)B | .932 |
| Net realized and unrealized gain (loss) | 3.276 |
| Total from investment operations | 4.208 |
| Distributions from net investment income | (.963) |
| Distributions from net realized gain | (.785) |
| Total distributions | (1.748) |
| Net asset value, end of period | $55.55 |
| Total ReturnC | 8.09% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .27% |
| Expenses net of fee waivers, if any | .27% |
| Expenses net of all reductions | .27% |
| Net investment income (loss) | 1.75% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $108 |
| Portfolio turnover rateE | 61% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 9.2 |
| Fidelity Series Emerging Markets Opportunities Fund | 8.9 |
| Fidelity Series Inflation-Protected Bond Index Fund | 8.4 |
| Fidelity Series Government Bond Index Fund | 8.3 |
| Fidelity Series Treasury Bill Index Fund | 7.5 |
| Fidelity Series Corporate Bond Fund | 7.0 |
| Fidelity Series Investment Grade Securitized Fund | 6.2 |
| Fidelity Series Large Cap Value Index Fund | 6.0 |
| Fidelity Series Blue Chip Growth Fund | 4.5 |
| Fidelity Series Large Cap Stock Fund | 3.2 |
| 69.2 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 23.0% | |
| International Equity Funds | 21.7% | |
| Bond Funds | 43.4% | |
| Short-Term Funds | 11.9% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2020 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 23.0% | |||
| Shares | Value | ||
| Fidelity Series Blue Chip Growth Fund (a) | 16,927 | $325,836 | |
| Fidelity Series Commodity Strategy Fund (a) | 44,282 | 179,785 | |
| Fidelity Series Large Cap Growth Index Fund (a) | 16,511 | 223,559 | |
| Fidelity Series Large Cap Stock Fund (a) | 15,860 | 228,550 | |
| Fidelity Series Large Cap Value Index Fund (a) | 37,899 | 432,809 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 8,624 | 109,176 | |
| Fidelity Series Value Discovery Fund (a) | 12,816 | 154,438 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,595,623) | 1,654,153 | ||
| International Equity Funds - 21.7% | |||
| Fidelity Series Canada Fund (a) | 7,712 | 77,816 | |
| Fidelity Series Emerging Markets Fund (a) | 7,563 | 70,263 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 30,956 | 639,855 | |
| Fidelity Series International Growth Fund (a) | 11,485 | 206,264 | |
| Fidelity Series International Index Fund (a) | 8,749 | 84,693 | |
| Fidelity Series International Small Cap Fund (a) | 4,130 | 69,217 | |
| Fidelity Series International Value Fund (a) | 24,077 | 205,621 | |
| Fidelity Series Overseas Fund (a) | 19,013 | 206,669 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,437,647) | 1,560,398 | ||
| Bond Funds - 43.4% | |||
| Fidelity Series Corporate Bond Fund (a) | 43,818 | 502,160 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 4,987 | 45,785 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,133 | 9,929 | |
| Fidelity Series Government Bond Index Fund (a) | 52,192 | 593,945 | |
| Fidelity Series High Income Fund (a) | 5,618 | 51,577 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 56,665 | 600,085 | |
| Fidelity Series International Credit Fund (a) | 198 | 2,054 | |
| Fidelity Series Investment Grade Bond Fund (a) | 53,692 | 662,565 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 41,983 | 447,961 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 15,375 | 166,208 | |
| Fidelity Series Real Estate Income Fund (a) | 3,062 | 30,431 | |
| TOTAL BOND FUNDS | |||
| (Cost $2,884,264) | 3,112,700 | ||
| Short-Term Funds - 11.9% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 165,306 | 165,306 | |
| Fidelity Series Short-Term Credit Fund (a) | 14,580 | 149,594 | |
| Fidelity Series Treasury Bill Index Fund (a) | 54,048 | 541,023 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $851,231) | 855,923 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $6,768,765) | 7,183,174 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 29 | ||
| NET ASSETS - 100% | $7,183,203 |
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 | $42,020 | $86,710 | $6,447 | $(1,679) | $334 | $-- |
| Fidelity Series Blue Chip Growth Fund | 80,030 | 301,879 | 98,771 | 9,768 | (300) | 42,998 | 325,836 |
| Fidelity Series Canada Fund | 25,829 | 72,275 | 19,017 | 709 | (2,501) | 1,230 | 77,816 |
| Fidelity Series Commodity Strategy Fund | 161,366 | 161,417 | 110,843 | 2,785 | (10,798) | (21,357) | 179,785 |
| Fidelity Series Corporate Bond Fund | 276,974 | 313,624 | 123,764 | 13,571 | (947) | 36,273 | 502,160 |
| Fidelity Series Emerging Markets Debt Fund | 33,070 | 26,876 | 12,361 | 2,161 | (380) | (1,420) | 45,785 |
| Fidelity Series Emerging Markets Fund | 29,788 | 52,030 | 14,767 | 929 | (795) | 4,007 | 70,263 |
| Fidelity Series Emerging Markets Opportunities Fund | 263,325 | 447,807 | 139,956 | 9,313 | (4,869) | 73,548 | 639,855 |
| Fidelity Series Floating Rate High Income Fund | 6,905 | 5,737 | 2,206 | 446 | (72) | (435) | 9,929 |
| Fidelity Series Government Bond Index Fund | 379,794 | 379,182 | 211,148 | 10,845 | 2,512 | 43,605 | 593,945 |
| Fidelity Series Government Money Market Fund 0.23% | 107,728 | 376,549 | 318,971 | 1,581 | -- | -- | 165,306 |
| Fidelity Series Growth Company Fund | 161,023 | 155,203 | 357,858 | 17,860 | 58,523 | (16,891) | -- |
| Fidelity Series High Income Fund | 34,753 | 29,095 | 11,076 | 2,647 | (402) | (793) | 51,577 |
| Fidelity Series Inflation-Protected Bond Index Fund | 314,339 | 417,920 | 160,134 | 6,150 | (105) | 28,065 | 600,085 |
| Fidelity Series International Credit Fund | 1,904 | 120 | -- | 120 | -- | 30 | 2,054 |
| Fidelity Series International Growth Fund | 233,125 | 168,478 | 213,633 | 9,333 | 220 | 18,074 | 206,264 |
| Fidelity Series International Index Fund | -- | 93,606 | 9,832 | -- | (66) | 985 | 84,693 |
| Fidelity Series International Small Cap Fund | 50,720 | 50,843 | 35,817 | 2,810 | (1,158) | 4,629 | 69,217 |
| Fidelity Series International Value Fund | 221,500 | 191,601 | 182,935 | 10,358 | (15,592) | (8,953) | 205,621 |
| Fidelity Series Intrinsic Opportunities Fund | 196,570 | 193,427 | 376,988 | 11,170 | (15,144) | 2,135 | -- |
| Fidelity Series Investment Grade Bond Fund | 404,292 | 397,484 | 181,680 | 15,444 | (109) | 42,578 | 662,565 |
| Fidelity Series Investment Grade Securitized Fund | 286,623 | 290,993 | 140,910 | 10,854 | 214 | 11,041 | 447,961 |
| Fidelity Series Large Cap Growth Index Fund | -- | 231,850 | 26,916 | -- | 613 | 18,012 | 223,559 |
| Fidelity Series Large Cap Stock Fund | 172,457 | 185,945 | 122,398 | 10,702 | (4,273) | (3,181) | 228,550 |
| Fidelity Series Large Cap Value Index Fund | 49,304 | 441,144 | 53,774 | 3,483 | (2,616) | (1,249) | 432,809 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 193,779 | 128,164 | 185,064 | 15,377 | 17,587 | 11,742 | 166,208 |
| Fidelity Series Opportunistic Insights Fund | 88,457 | 86,741 | 177,767 | 10,075 | 9,740 | (7,171) | -- |
| Fidelity Series Overseas Fund | 19,539 | 269,303 | 101,972 | 445 | (3,841) | 23,640 | 206,669 |
| Fidelity Series Real Estate Income Fund | 22,038 | 18,195 | 6,942 | 1,616 | (284) | (2,576) | 30,431 |
| Fidelity Series Short-Term Credit Fund | 107,744 | 74,951 | 36,303 | 3,284 | (189) | 3,391 | 149,594 |
| Fidelity Series Small Cap Discovery Fund | 23,734 | 21,330 | 42,715 | 1,121 | (2,367) | 18 | -- |
| Fidelity Series Small Cap Opportunities Fund | 72,226 | 93,106 | 49,974 | 5,220 | (2,381) | (3,801) | 109,176 |
| Fidelity Series Stock Selector Large Cap Value Fund | 133,049 | 122,303 | 236,931 | 9,691 | (16,266) | (2,155) | -- |
| Fidelity Series Treasury Bill Index Fund | 323,064 | 324,869 | 107,500 | 6,228 | 79 | 511 | 541,023 |
| Fidelity Series Value Discovery Fund | 94,984 | 124,231 | 58,732 | 5,010 | (2,791) | (3,254) | 154,438 |
| $4,616,068 | $6,290,298 | $4,016,365 | $217,553 | $(437) | $293,610 | $7,183,174 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $1,654,153 | $1,654,153 | $-- | $-- |
| International Equity Funds | 1,560,398 | 1,560,398 | -- | -- |
| Bond Funds | 3,112,700 | 3,112,700 | -- | -- |
| Short-Term Funds | 855,923 | 855,923 | -- | -- |
| Total Investments in Securities: | $7,183,174 | $7,183,174 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $6,768,765) | $7,183,174 | |
| Total Investment in Securities (cost $6,768,765) | $7,183,174 | |
| Cash | 40 | |
| Receivable for investments sold | 81,357 | |
| Receivable for fund shares sold | 5,333 | |
| Total assets | 7,269,904 | |
| Liabilities | ||
| Payable for investments purchased | $84,004 | |
| Accrued management fee | 2,659 | |
| Distribution and service plan fees payable | 38 | |
| Total liabilities | 86,701 | |
| Net Assets | $7,183,203 | |
| Net Assets consist of: | ||
| Paid in capital | $6,755,603 | |
| Total accumulated earnings (loss) | 427,600 | |
| Net Assets | $7,183,203 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($155,418 ÷ 2,890.16 shares)(a) | $53.77 | |
| Maximum offering price per share (100/94.25 of $53.77) | $57.05 | |
| Fidelity Managed Retirement 2020: | ||
| Net Asset Value, offering price and redemption price per share ($6,192,645 ÷ 115,078.26 shares) | $53.81 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($108,306 ÷ 2,012.51 shares) | $53.82 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($406,015 ÷ 7,544.50 shares) | $53.82 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($212,405 ÷ 3,945.98 shares) | $53.83 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($108,414 ÷ 2,014.34 shares) | $53.82 |
(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
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $116,577 | |
| Expenses | ||
| Management fee | $26,841 | |
| Distribution and service plan fees | 209 | |
| Independent trustees' fees and expenses | 20 | |
| Total expenses before reductions | 27,070 | |
| Expense reductions | (1) | |
| Total expenses after reductions | 27,069 | |
| Net investment income (loss) | 89,508 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 8 | |
| Affiliated issuers | (437) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 100,976 | |
| Total net realized gain (loss) | 100,547 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 293,610 | |
| Total change in net unrealized appreciation (depreciation) | 293,610 | |
| Net gain (loss) | 394,157 | |
| Net increase (decrease) in net assets resulting from operations | $483,665 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $89,508 | $64,164 |
| Net realized gain (loss) | 100,547 | 54,477 |
| Change in net unrealized appreciation (depreciation) | 293,610 | 22,111 |
| Net increase (decrease) in net assets resulting from operations | 483,665 | 140,752 |
| Distributions to shareholders | (168,253) | (207,367) |
| Share transactions - net increase (decrease) | 2,253,621 | 1,224,782 |
| Total increase (decrease) in net assets | 2,569,033 | 1,158,167 |
| Net Assets | ||
| Beginning of period | 4,614,170 | 3,456,003 |
| End of period | $7,183,203 | $4,614,170 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2020 Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $51.34 | $52.52 | $62.67 | $57.92 | $59.57 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .639 | .783 | .676 | .776 | .774 |
| Net realized and unrealized gain (loss) | 3.282 | 1.134 | 2.152 | 5.041 | (.138) |
| Total from investment operations | 3.921 | 1.917 | 2.828 | 5.817 | .636 |
| Distributions from net investment income | (.754) | (.822) | (.685) | (.706) | (.766) |
| Distributions from net realized gain | (.737) | (2.275) | (12.293) | (.361) | (1.520) |
| Total distributions | (1.491) | (3.097) | (12.978) | (1.067) | (2.286) |
| Net asset value, end of period | $53.77 | $51.34 | $52.52 | $62.67 | $57.92 |
| Total ReturnB,C | 7.76% | 4.02% | 5.29% | 10.19% | 1.27% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .72% | .81%F | .87% | .34% | .25% |
| Expenses net of fee waivers, if any | .72% | .81%F | .87% | .34% | .25% |
| Expenses net of all reductions | .72% | .81%F | .87% | .34% | .25% |
| Net investment income (loss) | 1.26% | 1.57% | 1.26% | 1.29% | 1.39% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $155 | $20 | $17 | $17 | $62 |
| Portfolio turnover rateE | 69% | 86% | 19% | 115% | 23% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
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 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
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $51.35 | $52.53 | $62.67 | $57.92 | $59.58 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .777 | .916 | .818 | .909 | .915 |
| Net realized and unrealized gain (loss) | 3.281 | 1.125 | 2.145 | 5.058 | (.145) |
| Total from investment operations | 4.058 | 2.041 | 2.963 | 5.967 | .770 |
| Distributions from net investment income | (.861) | (.946) | (.810) | (.856) | (.910) |
| Distributions from net realized gain | (.737) | (2.275) | (12.293) | (.361) | (1.520) |
| Total distributions | (1.598) | (3.221) | (13.103) | (1.217) | (2.430) |
| Net asset value, end of period | $53.81 | $51.35 | $52.53 | $62.67 | $57.92 |
| Total ReturnB | 8.04% | 4.28% | 5.56% | 10.47% | 1.52% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .47% | .55% | .62% | .10% | - %E |
| Expenses net of fee waivers, if any | .47% | .55% | .62% | .10% | -% |
| Expenses net of all reductions | .47% | .55% | .61% | .10% | -% |
| Net investment income (loss) | 1.51% | 1.83% | 1.52% | 1.53% | 1.64% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $6,193 | $4,303 | $3,139 | $4,314 | $4,597 |
| Portfolio turnover rateD | 69% | 86% | 19% | 115% | 23% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class K
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $51.28 |
| Income from Investment Operations | |
| Net investment income (loss)B | .829 |
| Net realized and unrealized gain (loss) | 3.357 |
| Total from investment operations | 4.186 |
| Distributions from net investment income | (.909) |
| Distributions from net realized gain | (.737) |
| Total distributions | (1.646) |
| Net asset value, end of period | $53.82 |
| Total ReturnC,D | 8.31% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .37% |
| Expenses net of fee waivers, if any | .37% |
| Expenses net of all reductions | .37% |
| Net investment income (loss) | 1.61% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $108 |
| Portfolio turnover rateF | 69% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class K6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $51.28 |
| Income from Investment Operations | |
| Net investment income (loss)B | .869 |
| Net realized and unrealized gain (loss) | 3.369 |
| Total from investment operations | 4.238 |
| Distributions from net investment income | (.961) |
| Distributions from net realized gain | (.737) |
| Total distributions | (1.698) |
| Net asset value, end of period | $53.82 |
| Total ReturnC,D | 8.42% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .27% |
| Expenses net of fee waivers, if any | .27% |
| Expenses net of all reductions | .27% |
| Net investment income (loss) | 1.71% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $406 |
| Portfolio turnover rateF | 69% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $51.35 | $52.53 | $62.67 | $57.92 | $59.58 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .779 | .890 | .812 | .909 | .913 |
| Net realized and unrealized gain (loss) | 3.282 | 1.148 | 2.161 | 5.048 | (.143) |
| Total from investment operations | 4.061 | 2.038 | 2.973 | 5.957 | .770 |
| Distributions from net investment income | (.844) | (.943) | (.820) | (.846) | (.910) |
| Distributions from net realized gain | (.737) | (2.275) | (12.293) | (.361) | (1.520) |
| Total distributions | (1.581) | (3.218) | (13.113) | (1.207) | (2.430) |
| Net asset value, end of period | $53.83 | $51.35 | $52.53 | $62.67 | $57.92 |
| Total ReturnB | 8.05% | 4.27% | 5.58% | 10.45% | 1.52% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .47% | .55% | .62% | .10% | - %E |
| Expenses net of fee waivers, if any | .47% | .55% | .62% | .10% | -% |
| Expenses net of all reductions | .47% | .55% | .61% | .10% | -% |
| Net investment income (loss) | 1.51% | 1.83% | 1.52% | 1.53% | 1.64% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $212 | $291 | $28 | $26 | $33 |
| Portfolio turnover rateD | 69% | 86% | 19% | 115% | 23% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2020 Fund Class Z6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $51.28 |
| Income from Investment Operations | |
| Net investment income (loss)B | .881 |
| Net realized and unrealized gain (loss) | 3.352 |
| Total from investment operations | 4.233 |
| Distributions from net investment income | (.956) |
| Distributions from net realized gain | (.737) |
| Total distributions | (1.693) |
| Net asset value, end of period | $53.82 |
| Total ReturnC,D | 8.41% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .27% |
| Expenses net of fee waivers, if any | .27% |
| Expenses net of all reductions | .27% |
| Net investment income (loss) | 1.71% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $108 |
| Portfolio turnover rateF | 69% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Emerging Markets Opportunities Fund | 9.6 |
| Fidelity Series Investment Grade Bond Fund | 8.7 |
| Fidelity Series Government Bond Index Fund | 7.8 |
| Fidelity Series Inflation-Protected Bond Index Fund | 7.4 |
| Fidelity Series Large Cap Value Index Fund | 7.1 |
| Fidelity Series Corporate Bond Fund | 6.6 |
| Fidelity Series Investment Grade Securitized Fund | 5.9 |
| Fidelity Series Treasury Bill Index Fund | 5.8 |
| Fidelity Series Blue Chip Growth Fund | 5.4 |
| Fidelity Series Large Cap Stock Fund | 3.8 |
| 68.1 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 26.8% | |
| International Equity Funds | 24.2% | |
| Bond Funds | 40.5% | |
| Short-Term Funds | 8.5% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2025 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 26.8% | |||
| Shares | Value | ||
| Fidelity Series Blue Chip Growth Fund (a) | 89,946 | $1,731,467 | |
| Fidelity Series Commodity Strategy Fund (a) | 198,784 | 807,064 | |
| Fidelity Series Large Cap Growth Index Fund (a) | 87,735 | 1,187,938 | |
| Fidelity Series Large Cap Stock Fund (a) | 84,283 | 1,214,524 | |
| Fidelity Series Large Cap Value Index Fund (a) | 201,386 | 2,299,823 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 45,832 | 580,227 | |
| Fidelity Series Value Discovery Fund (a) | 68,111 | 820,735 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $8,392,555) | 8,641,778 | ||
| International Equity Funds - 24.2% | |||
| Fidelity Series Canada Fund (a) | 39,755 | 401,127 | |
| Fidelity Series Emerging Markets Fund (a) | 36,478 | 338,879 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 149,215 | 3,084,268 | |
| Fidelity Series International Growth Fund (a) | 59,191 | 1,063,076 | |
| Fidelity Series International Index Fund (a) | 45,103 | 436,593 | |
| Fidelity Series International Small Cap Fund (a) | 21,291 | 356,831 | |
| Fidelity Series International Value Fund (a) | 124,105 | 1,059,854 | |
| Fidelity Series Overseas Fund (a) | 97,991 | 1,065,166 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $7,348,538) | 7,805,794 | ||
| Bond Funds - 40.5% | |||
| Fidelity Series Corporate Bond Fund (a) | 184,486 | 2,114,210 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 22,111 | 202,977 | |
| Fidelity Series Floating Rate High Income Fund (a) | 5,029 | 44,057 | |
| Fidelity Series Government Bond Index Fund (a) | 219,740 | 2,500,644 | |
| Fidelity Series High Income Fund (a) | 25,015 | 229,634 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 224,916 | 2,381,863 | |
| Fidelity Series International Credit Fund (a) | 1,319 | 13,700 | |
| Fidelity Series Investment Grade Bond Fund (a) | 226,056 | 2,789,531 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 176,759 | 1,886,018 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 69,012 | 746,022 | |
| Fidelity Series Real Estate Income Fund (a) | 13,349 | 132,690 | |
| TOTAL BOND FUNDS | |||
| (Cost $12,086,015) | 13,041,346 | ||
| Short-Term Funds - 8.5% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 375,792 | 375,792 | |
| Fidelity Series Short-Term Credit Fund (a) | 45,546 | 467,298 | |
| Fidelity Series Treasury Bill Index Fund (a) | 187,981 | 1,881,686 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $2,711,036) | 2,724,776 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $30,538,144) | 32,213,694 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 229 | ||
| NET ASSETS - 100% | $32,213,923 |
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 | $208,901 | $443,425 | $37,834 | $(36,205) | $22,717 | $-- |
| Fidelity Series Blue Chip Growth Fund | 431,668 | 1,503,196 | 431,071 | 50,588 | 5,620 | 222,054 | 1,731,467 |
| Fidelity Series Canada Fund | 133,525 | 349,587 | 66,623 | 4,256 | (9,139) | (6,223) | 401,127 |
| Fidelity Series Commodity Strategy Fund | 747,713 | 706,455 | 474,686 | 13,280 | (75,033) | (97,385) | 807,064 |
| Fidelity Series Corporate Bond Fund | 1,169,528 | 1,362,462 | 557,098 | 60,604 | (8,861) | 148,179 | 2,114,210 |
| Fidelity Series Emerging Markets Debt Fund | 152,144 | 109,704 | 48,435 | 10,190 | (2,866) | (7,570) | 202,977 |
| Fidelity Series Emerging Markets Fund | 149,406 | 245,760 | 65,023 | 5,102 | (4,196) | 12,932 | 338,879 |
| Fidelity Series Emerging Markets Opportunities Fund | 1,322,221 | 2,052,064 | 576,306 | 51,155 | (21,281) | 307,570 | 3,084,268 |
| Fidelity Series Floating Rate High Income Fund | 31,721 | 23,553 | 8,442 | 2,110 | (380) | (2,395) | 44,057 |
| Fidelity Series Government Bond Index Fund | 1,603,702 | 1,644,282 | 955,148 | 48,490 | 20,969 | 186,839 | 2,500,644 |
| Fidelity Series Government Money Market Fund 0.23% | 384,354 | 1,287,012 | 1,295,574 | 5,364 | -- | -- | 375,792 |
| Fidelity Series Growth Company Fund | 869,187 | 740,972 | 1,826,989 | 105,755 | 316,427 | (99,597) | -- |
| Fidelity Series High Income Fund | 160,534 | 119,693 | 42,272 | 12,484 | (1,815) | (6,506) | 229,634 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,194,423 | 1,722,742 | 646,405 | 27,948 | (279) | 111,382 | 2,381,863 |
| Fidelity Series International Credit Fund | 12,700 | 802 | -- | 802 | -- | 198 | 13,700 |
| Fidelity Series International Growth Fund | 1,194,661 | 794,903 | 1,005,562 | 53,093 | (15,335) | 94,409 | 1,063,076 |
| Fidelity Series International Index Fund | -- | 464,721 | 32,788 | -- | (281) | 4,941 | 436,593 |
| Fidelity Series International Small Cap Fund | 257,287 | 247,986 | 159,296 | 16,013 | (7,658) | 18,512 | 356,831 |
| Fidelity Series International Value Fund | 1,145,190 | 908,066 | 834,683 | 58,921 | (71,492) | (87,227) | 1,059,854 |
| Fidelity Series Intrinsic Opportunities Fund | 1,061,122 | 920,030 | 1,889,331 | 58,917 | (107,177) | 15,356 | -- |
| Fidelity Series Investment Grade Bond Fund | 1,707,105 | 1,730,831 | 824,924 | 68,739 | (2,089) | 178,608 | 2,789,531 |
| Fidelity Series Investment Grade Securitized Fund | 1,210,285 | 1,240,352 | 614,205 | 49,416 | 1,787 | 47,799 | 1,886,018 |
| Fidelity Series Large Cap Growth Index Fund | -- | 1,178,212 | 88,328 | -- | 2,413 | 95,641 | 1,187,938 |
| Fidelity Series Large Cap Stock Fund | 930,917 | 922,308 | 581,959 | 56,482 | (23,885) | (32,857) | 1,214,524 |
| Fidelity Series Large Cap Value Index Fund | 265,681 | 2,281,659 | 218,651 | 20,541 | (12,372) | (16,494) | 2,299,823 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 1,008,689 | 531,915 | 939,785 | 78,015 | 93,958 | 51,245 | 746,022 |
| Fidelity Series Opportunistic Insights Fund | 477,186 | 421,349 | 907,275 | 59,034 | 49,774 | (41,034) | -- |
| Fidelity Series Overseas Fund | 118,524 | 1,350,863 | 480,802 | 2,549 | (28,595) | 105,176 | 1,065,166 |
| Fidelity Series Real Estate Income Fund | 101,236 | 74,632 | 26,522 | 7,407 | (2,110) | (14,546) | 132,690 |
| Fidelity Series Short-Term Credit Fund | 384,396 | 217,663 | 144,192 | 10,912 | (323) | 9,754 | 467,298 |
| Fidelity Series Small Cap Discovery Fund | 127,535 | 103,146 | 211,727 | 6,738 | (18,725) | (229) | -- |
| Fidelity Series Small Cap Opportunities Fund | 389,103 | 453,874 | 220,951 | 26,906 | (10,133) | (31,666) | 580,227 |
| Fidelity Series Stock Selector Large Cap Value Fund | 718,051 | 613,842 | 1,209,874 | 57,017 | (123,347) | 1,328 | -- |
| Fidelity Series Treasury Bill Index Fund | 1,152,634 | 1,154,271 | 427,201 | 21,631 | 258 | 1,724 | 1,881,686 |
| Fidelity Series Value Discovery Fund | 512,425 | 630,360 | 274,939 | 29,482 | (14,518) | (32,593) | 820,735 |
| $21,372,865 | $28,318,168 | $18,530,492 | $1,117,775 | $(106,889) | $1,160,042 | $32,213,694 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $8,641,778 | $8,641,778 | $-- | $-- |
| International Equity Funds | 7,805,794 | 7,805,794 | -- | -- |
| Bond Funds | 13,041,346 | 13,041,346 | -- | -- |
| Short-Term Funds | 2,724,776 | 2,724,776 | -- | -- |
| Total Investments in Securities: | $32,213,694 | $32,213,694 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $30,538,144) | $32,213,694 | |
| Total Investment in Securities (cost $30,538,144) | $32,213,694 | |
| Cash | 380 | |
| Receivable for investments sold | 357,973 | |
| Receivable for fund shares sold | 19,160 | |
| Total assets | 32,591,207 | |
| Liabilities | ||
| Payable for investments purchased | $333,317 | |
| Payable for fund shares redeemed | 31,280 | |
| Accrued management fee | 12,481 | |
| Distribution and service plan fees payable | 206 | |
| Total liabilities | 377,284 | |
| Net Assets | $32,213,923 | |
| Net Assets consist of: | ||
| Paid in capital | $30,439,532 | |
| Total accumulated earnings (loss) | 1,774,391 | |
| Net Assets | $32,213,923 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($993,104 ÷ 18,012.37 shares)(a) | $55.13 | |
| Maximum offering price per share (100/94.25 of $55.13) | $58.49 | |
| Fidelity Managed Retirement 2025: | ||
| Net Asset Value, offering price and redemption price per share ($30,093,079 ÷ 545,245.23 shares) | $55.19 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($108,626 ÷ 1,967.92 shares) | $55.20 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($412,457 ÷ 7,471.98 shares) | $55.20 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($497,923 ÷ 9,004.19 shares) | $55.30 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($108,734 ÷ 1,967.03 shares) | $55.28 |
(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
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $568,999 | |
| Expenses | ||
| Management fee | $132,207 | |
| Distribution and service plan fees | 2,039 | |
| Independent trustees' fees and expenses | 93 | |
| Total expenses before reductions | 134,339 | |
| Expense reductions | (4) | |
| Total expenses after reductions | 134,335 | |
| Net investment income (loss) | 434,664 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 92 | |
| Affiliated issuers | (106,889) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 548,776 | |
| Total net realized gain (loss) | 441,979 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 1,160,042 | |
| Total change in net unrealized appreciation (depreciation) | 1,160,042 | |
| Net gain (loss) | 1,602,021 | |
| Net increase (decrease) in net assets resulting from operations | $2,036,685 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $434,664 | $325,719 |
| Net realized gain (loss) | 441,979 | 495,574 |
| Change in net unrealized appreciation (depreciation) | 1,160,042 | (94,579) |
| Net increase (decrease) in net assets resulting from operations | 2,036,685 | 726,714 |
| Distributions to shareholders | (985,376) | (1,131,885) |
| Share transactions - net increase (decrease) | 9,798,272 | 3,566,811 |
| Total increase (decrease) in net assets | 10,849,581 | 3,161,640 |
| Net Assets | ||
| Beginning of period | 21,364,342 | 18,202,702 |
| End of period | $32,213,923 | $21,364,342 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2025 Fund Class A
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $52.89 | $54.27 | $64.30 | $59.20 | $61.04 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .692 | .818 | .678 | .800 | .798 |
| Net realized and unrealized gain (loss) | 3.455 | 1.072 | 2.470 | 5.517 | (.292) |
| Total from investment operations | 4.147 | 1.890 | 3.148 | 6.317 | .506 |
| Distributions from net investment income | (.756) | (.820) | (.654) | (.749) | (.802) |
| Distributions from net realized gain | (1.151) | (2.450) | (12.524) | (.468) | (1.544) |
| Total distributions | (1.907) | (3.270) | (13.178) | (1.217) | (2.346) |
| Net asset value, end of period | $55.13 | $52.89 | $54.27 | $64.30 | $59.20 |
| Total ReturnB,C | 8.01% | 3.87% | 5.74% | 10.85% | 1.03% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .73% | .84% | .91% | .35% | .25% |
| Expenses net of fee waivers, if any | .73% | .84% | .91% | .35% | .25% |
| Expenses net of all reductions | .73% | .84% | .91% | .35% | .25% |
| Net investment income (loss) | 1.32% | 1.59% | 1.23% | 1.31% | 1.40% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $993 | $556 | $577 | $592 | $536 |
| Portfolio turnover rateE | 67% | 48% | 19% | 108% | 29% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $52.92 | $54.31 | $64.34 | $59.22 | $61.06 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .825 | .950 | .820 | .951 | .941 |
| Net realized and unrealized gain (loss) | 3.466 | 1.062 | 2.468 | 5.523 | (.293) |
| Total from investment operations | 4.291 | 2.012 | 3.288 | 6.474 | .648 |
| Distributions from net investment income | (.870) | (.952) | (.794) | (.886) | (.944) |
| Distributions from net realized gain | (1.151) | (2.450) | (12.524) | (.468) | (1.544) |
| Total distributions | (2.021) | (3.402) | (13.318) | (1.354) | (2.488) |
| Net asset value, end of period | $55.19 | $52.92 | $54.31 | $64.34 | $59.22 |
| Total ReturnB | 8.30% | 4.11% | 6.01% | 11.13% | 1.29% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .48% | .59% | .66% | .10% | - %E |
| Expenses net of fee waivers, if any | .48% | .59% | .66% | .10% | -% |
| Expenses net of all reductions | .48% | .59% | .66% | .10% | -% |
| Net investment income (loss) | 1.57% | 1.84% | 1.48% | 1.56% | 1.65% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $30,093 | $20,130 | $16,953 | $22,122 | $27,774 |
| Portfolio turnover rateD | 67% | 48% | 19% | 108% | 29% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class K
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $52.82 |
| Income from Investment Operations | |
| Net investment income (loss)B | .879 |
| Net realized and unrealized gain (loss) | 3.572 |
| Total from investment operations | 4.451 |
| Distributions from net investment income | (.920) |
| Distributions from net realized gain | (1.151) |
| Total distributions | (2.071) |
| Net asset value, end of period | $55.20 |
| Total ReturnC,D | 8.63% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .38% |
| Expenses net of fee waivers, if any | .38% |
| Expenses net of all reductions | .38% |
| Net investment income (loss) | 1.67% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $109 |
| Portfolio turnover rateF | 67% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class K6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $52.82 |
| Income from Investment Operations | |
| Net investment income (loss)B | .932 |
| Net realized and unrealized gain (loss) | 3.567 |
| Total from investment operations | 4.499 |
| Distributions from net investment income | (.968) |
| Distributions from net realized gain | (1.151) |
| Total distributions | (2.119) |
| Net asset value, end of period | $55.20 |
| Total ReturnC,D | 8.73% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .28% |
| Expenses net of fee waivers, if any | .28% |
| Expenses net of all reductions | .28% |
| Net investment income (loss) | 1.77% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $412 |
| Portfolio turnover rateF | 67% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class I
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $53.00 | $54.38 | $64.33 | $59.21 | $61.06 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .831 | .906 | .835 | .953 | .943 |
| Net realized and unrealized gain (loss) | 3.463 | 1.114 | 2.466 | 5.521 | (.305) |
| Total from investment operations | 4.294 | 2.020 | 3.301 | 6.474 | .638 |
| Distributions from net investment income | (.843) | (.950) | (.727) | (.886) | (.944) |
| Distributions from net realized gain | (1.151) | (2.450) | (12.524) | (.468) | (1.544) |
| Total distributions | (1.994) | (3.400) | (13.251) | (1.354) | (2.488) |
| Net asset value, end of period | $55.30 | $53.00 | $54.38 | $64.33 | $59.21 |
| Total ReturnB | 8.29% | 4.12% | 6.03% | 11.14% | 1.27% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .48% | .57%E | .66% | .10% | - %F |
| Expenses net of fee waivers, if any | .48% | .57%E | .66% | .10% | -% |
| Expenses net of all reductions | .48% | .57%E | .65% | .10% | -% |
| Net investment income (loss) | 1.57% | 1.87% | 1.49% | 1.56% | 1.65% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $498 | $678 | $28 | $79 | $78 |
| Portfolio turnover rateD | 67% | 48% | 19% | 108% | 29% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions 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.
D Amounts do not include the activity of Underlying Funds.
E On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
F Amount represents less than .005%.
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2025 Fund Class Z6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $52.89 |
| Income from Investment Operations | |
| Net investment income (loss)B | .933 |
| Net realized and unrealized gain (loss) | 3.577 |
| Total from investment operations | 4.510 |
| Distributions from net investment income | (.969) |
| Distributions from net realized gain | (1.151) |
| Total distributions | (2.120) |
| Net asset value, end of period | $55.28 |
| Total ReturnC,D | 8.74% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .28% |
| Expenses net of fee waivers, if any | .28% |
| Expenses net of all reductions | .28% |
| Net investment income (loss) | 1.77% |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $109 |
| Portfolio turnover rateF | 67% |
A For the period August 1, 2019 (commencement of sale of shares) to July 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.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Emerging Markets Opportunities Fund | 10.1 |
| Fidelity Series Investment Grade Bond Fund | 8.4 |
| Fidelity Series Large Cap Value Index Fund | 8.0 |
| Fidelity Series Government Bond Index Fund | 7.5 |
| Fidelity Series Inflation-Protected Bond Index Fund | 6.8 |
| Fidelity Series Corporate Bond Fund | 6.3 |
| Fidelity Series Blue Chip Growth Fund | 6.0 |
| Fidelity Series Investment Grade Securitized Fund | 5.7 |
| Fidelity Series Large Cap Stock Fund | 4.2 |
| Fidelity Series Large Cap Growth Index Fund | 4.1 |
| 67.1 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 29.7% | |
| International Equity Funds | 26.2% | |
| Bond Funds | 38.9% | |
| Short-Term Funds | 5.2% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Managed Retirement 2030 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 29.7% | |||
| Shares | Value | ||
| Fidelity Series Blue Chip Growth Fund (a) | 19,034 | $366,396 | |
| Fidelity Series Commodity Strategy Fund (a) | 37,556 | 152,479 | |
| Fidelity Series Large Cap Growth Index Fund (a) | 18,564 | 251,357 | |
| Fidelity Series Large Cap Stock Fund (a) | 17,835 | 256,997 | |
| Fidelity Series Large Cap Value Index Fund (a) | 42,615 | 486,669 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 9,697 | 122,766 | |
| Fidelity Series Value Discovery Fund (a) | 14,412 | 173,663 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,757,368) | 1,810,327 | ||
| International Equity Funds - 26.2% | |||
| Fidelity Series Canada Fund (a) | 8,260 | 83,339 | |
| Fidelity Series Emerging Markets Fund (a) | 7,270 | 67,536 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 29,699 | 613,874 | |
| Fidelity Series International Growth Fund (a) | 12,300 | 220,906 | |
| Fidelity Series International Index Fund (a) | 9,371 | 90,712 | |
| Fidelity Series International Small Cap Fund (a) | 4,423 | 74,135 | |
| Fidelity Series International Value Fund (a) | 25,789 | 220,236 | |
| Fidelity Series Overseas Fund (a) | 20,362 | 221,336 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,512,520) | 1,592,074 | ||
| Bond Funds - 38.9% | |||
| Fidelity Series Corporate Bond Fund (a) | 33,655 | 385,687 | |
| Fidelity Series Emerging Markets Debt Fund (a) | 4,145 | 38,055 | |
| Fidelity Series Floating Rate High Income Fund (a) | 983 | 8,612 | |
| Fidelity Series Government Bond Index Fund (a) | 40,094 | 456,266 | |
| Fidelity Series High Income Fund (a) | 4,809 | 44,143 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 39,158 | 414,686 | |
| Fidelity Series International Credit Fund (a) | 291 | 3,022 | |
| Fidelity Series Investment Grade Bond Fund (a) | 41,242 | 508,924 | |
| Fidelity Series Investment Grade Securitized Fund (a) | 32,253 | 344,137 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 13,011 | 140,647 | |
| Fidelity Series Real Estate Income Fund (a) | 2,616 | 26,004 | |
| TOTAL BOND FUNDS | |||
| (Cost $2,278,043) | 2,370,183 | ||
| Short-Term Funds - 5.2% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 110,006 | 110,006 | |
| Fidelity Series Short-Term Credit Fund (a) | 3,854 | 39,547 | |
| Fidelity Series Treasury Bill Index Fund (a) | 16,787 | 168,040 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $316,930) | 317,593 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $5,864,861) | 6,090,177 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 115 | ||
| NET ASSETS - 100% | $6,090,292 |
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 | $-- | $81,958 | $79,908 | $4,852 | $(2,050) | $-- | $-- |
| Fidelity Series Blue Chip Growth Fund | -- | 438,091 | 115,304 | 2,900 | (224) | 43,833 | 366,396 |
| Fidelity Series Canada Fund | -- | 115,347 | 29,786 | 440 | (3,457) | 1,235 | 83,339 |
| Fidelity Series Commodity Strategy Fund | -- | 268,394 | 96,425 | 913 | (6,387) | (13,103) | 152,479 |
| Fidelity Series Corporate Bond Fund | -- | 503,422 | 133,300 | 6,249 | (2,276) | 17,841 | 385,687 |
| Fidelity Series Emerging Markets Debt Fund | -- | 52,300 | 13,724 | 1,100 | (462) | (59) | 38,055 |
| Fidelity Series Emerging Markets Fund | -- | 86,046 | 20,763 | 513 | (1,720) | 3,973 | 67,536 |
| Fidelity Series Emerging Markets Opportunities Fund | -- | 757,469 | 186,888 | 5,145 | (11,292) | 54,585 | 613,874 |
| Fidelity Series Floating Rate High Income Fund | -- | 11,874 | 2,901 | 231 | (171) | (190) | 8,612 |
| Fidelity Series Government Bond Index Fund | -- | 634,701 | 201,822 | 4,664 | 1,600 | 21,787 | 456,266 |
| Fidelity Series Government Money Market Fund 0.23% | -- | 333,106 | 223,100 | 312 | -- | -- | 110,006 |
| Fidelity Series Growth Company Fund | -- | 288,253 | 321,987 | 11,963 | 33,734 | -- | -- |
| Fidelity Series High Income Fund | -- | 59,683 | 14,652 | 1,347 | (868) | (20) | 44,143 |
| Fidelity Series Inflation-Protected Bond Index Fund | -- | 552,776 | 151,802 | 2,563 | (204) | 13,916 | 414,686 |
| Fidelity Series International Credit Fund | -- | 3,972 | 967 | 91 | (22) | 39 | 3,022 |
| Fidelity Series International Growth Fund | -- | 392,550 | 180,200 | 5,475 | (5,763) | 14,319 | 220,906 |
| Fidelity Series International Index Fund | -- | 108,566 | 18,340 | -- | (40) | 526 | 90,712 |
| Fidelity Series International Small Cap Fund | -- | 106,452 | 33,496 | 1,650 | (1,357) | 2,536 | 74,135 |
| Fidelity Series International Value Fund | -- | 395,678 | 150,169 | 6,076 | (11,534) | (13,739) | 220,236 |
| Fidelity Series Intrinsic Opportunities Fund | -- | 347,802 | 336,866 | 3,786 | (10,936) | -- | -- |
| Fidelity Series Investment Grade Bond Fund | -- | 679,114 | 190,568 | 7,293 | (816) | 21,194 | 508,924 |
| Fidelity Series Investment Grade Securitized Fund | -- | 475,979 | 137,979 | 4,399 | (213) | 6,350 | 344,137 |
| Fidelity Series Large Cap Growth Index Fund | -- | 279,302 | 45,995 | -- | 346 | 17,704 | 251,357 |
| Fidelity Series Large Cap Stock Fund | -- | 382,814 | 119,175 | 2,706 | (7,026) | 384 | 256,997 |
| Fidelity Series Large Cap Value Index Fund | -- | 586,050 | 95,999 | 2,265 | (8,626) | 5,244 | 486,669 |
| Fidelity Series Long-Term Treasury Bond Index Fund | -- | 229,768 | 101,442 | 7,828 | (288) | 12,609 | 140,647 |
| Fidelity Series Opportunistic Insights Fund | -- | 160,714 | 164,083 | 6,750 | 3,369 | -- | -- |
| Fidelity Series Overseas Fund | -- | 347,308 | 137,938 | 263 | (4,152) | 16,118 | 221,336 |
| Fidelity Series Real Estate Income Fund | -- | 37,292 | 9,192 | 690 | (771) | (1,325) | 26,004 |
| Fidelity Series Short-Term Credit Fund | -- | 51,719 | 12,817 | 668 | (6) | 651 | 39,547 |
| Fidelity Series Small Cap Discovery Fund | -- | 41,033 | 38,389 | 736 | (2,644) | -- | -- |
| Fidelity Series Small Cap Opportunities Fund | -- | 177,517 | 51,910 | 1,522 | (3,035) | 194 | 122,766 |
| Fidelity Series Stock Selector Large Cap Value Fund | -- | 240,408 | 222,378 | 6,844 | (18,030) | -- | -- |
| Fidelity Series Treasury Bill Index Fund | -- | 224,549 | 56,553 | 1,385 | 32 | 12 | 168,040 |
| Fidelity Series Value Discovery Fund | -- | 242,184 | 62,060 | 3,438 | (5,163) | (1,298) | 173,663 |
| $-- | $9,694,191 | $3,758,878 | $107,057 | $(70,452) | $225,316 | $6,090,177 |
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.
Investment Valuation
The following is a summary of the inputs used, as of July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $1,810,327 | $1,810,327 | $-- | $-- |
| International Equity Funds | 1,592,074 | 1,592,074 | -- | -- |
| Bond Funds | 2,370,183 | 2,370,183 | -- | -- |
| Short-Term Funds | 317,593 | 317,593 | -- | -- |
| Total Investments in Securities: | $6,090,177 | $6,090,177 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $5,864,861) | $6,090,177 | |
| Total Investment in Securities (cost $5,864,861) | $6,090,177 | |
| Cash | 178 | |
| Receivable for investments sold | 65,375 | |
| Receivable for fund shares sold | 513 | |
| Total assets | 6,156,243 | |
| Liabilities | ||
| Payable for investments purchased | $63,862 | |
| Accrued management fee | 2,027 | |
| Distribution and service plan fees payable | 62 | |
| Total liabilities | 65,951 | |
| Net Assets | $6,090,292 | |
| Net Assets consist of: | ||
| Paid in capital | $5,892,878 | |
| Total accumulated earnings (loss) | 197,414 | |
| Net Assets | $6,090,292 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($300,168 ÷ 27,847.26 shares)A | $10.78 | |
| Maximum offering price per share (100/94.25 of $10.78) | $11.44 | |
| Fidelity Managed Retirement 2030 Fund: | ||
| Net Asset Value, offering price and redemption price per share ($4,986,386 ÷ 462,779.46 shares) | $10.77 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($183,023 ÷ 16,970.22 shares) | $10.78 | |
| Class K6: | ||
| Net Asset Value, offering price and redemption price per share ($183,408 ÷ 17,002.79 shares) | $10.79 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($254,109 ÷ 23,564.24 shares) | $10.78 | |
| Class Z6: | ||
| Net Asset Value, offering price and redemption price per share ($183,198 ÷ 16,983.35 shares) | $10.79 |
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 July 31, 2020 |
||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $55,343 | |
| Income from Fidelity Central Funds | 177 | |
| Total income | 55,520 | |
| Expenses | ||
| Management fee | $14,042 | |
| Distribution and service plan fees | 560 | |
| Independent trustees' fees and expenses | 9 | |
| Total expenses | 14,611 | |
| Net investment income (loss) | 40,909 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (12) | |
| Affiliated issuers | (70,452) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 51,714 | |
| Total net realized gain (loss) | (18,750) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 225,316 | |
| Total change in net unrealized appreciation (depreciation) | 225,316 | |
| Net gain (loss) | 206,566 | |
| Net increase (decrease) in net assets resulting from operations | $247,475 |
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 July 31, 2020 |
|
| Increase (Decrease) in Net Assets | |
| Operations | |
| Net investment income (loss) | $40,909 |
| Net realized gain (loss) | (18,750) |
| Change in net unrealized appreciation (depreciation) | 225,316 |
| Net increase (decrease) in net assets resulting from operations | 247,475 |
| Distributions to shareholders | (50,061) |
| Share transactions - net increase (decrease) | 5,892,878 |
| Total increase (decrease) in net assets | 6,090,292 |
| Net Assets | |
| Beginning of period | – |
| End of period | $6,090,292 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Managed Retirement 2030 Fund Class A
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .104 |
| Net realized and unrealized gain (loss) | .837 |
| Total from investment operations | .941 |
| Distributions from net investment income | (.121) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.161) |
| Net asset value, end of period | $10.78 |
| Total ReturnC,D | 9.46% |
| 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) | 1.06%G |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $300 |
| Portfolio turnover rateF | 117%G |
A For the period August 16, 2019 (commencement of operations) to July 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
See accompanying notes which are an integral part of the financial statements.
Fidelity Managed Retirement 2030 Fund
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .127 |
| Net realized and unrealized gain (loss) | .832 |
| Total from investment operations | .959 |
| Distributions from net investment income | (.149) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.189) |
| Net asset value, end of period | $10.77 |
| Total ReturnC | 9.66% |
| 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) | 1.31%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $4,986 |
| Portfolio turnover rateE | 117%F |
A For the period August 16, 2019 (commencement of operations) to July 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 2030 Fund Class K
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .138 |
| Net realized and unrealized gain (loss) | .832 |
| Total from investment operations | .970 |
| Distributions from net investment income | (.150) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.190) |
| Net asset value, end of period | $10.78 |
| Total ReturnC | 9.77% |
| 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) | 1.41%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $183 |
| Portfolio turnover rateE | 117%F |
A For the period August 16, 2019 (commencement of operations) to July 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 2030 Fund Class K6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .148 |
| Net realized and unrealized gain (loss) | .840 |
| Total from investment operations | .988 |
| Distributions from net investment income | (.158) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.198) |
| Net asset value, end of period | $10.79 |
| Total ReturnC | 9.95% |
| 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) | 1.51%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $183 |
| Portfolio turnover rateE | 117%F |
A For the period August 16, 2019 (commencement of operations) to July 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 2030 Fund Class I
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .128 |
| Net realized and unrealized gain (loss) | .833 |
| Total from investment operations | .961 |
| Distributions from net investment income | (.141) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.181) |
| Net asset value, end of period | $10.78 |
| Total ReturnC | 9.67% |
| 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) | 1.31%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $254 |
| Portfolio turnover rateE | 117%F |
A For the period August 16, 2019 (commencement of operations) to July 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 2030 Fund Class Z6
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .148 |
| Net realized and unrealized gain (loss) | .840 |
| Total from investment operations | .988 |
| Distributions from net investment income | (.158) |
| Distributions from net realized gain | (.040) |
| Total distributions | (.198) |
| Net asset value, end of period | $10.79 |
| Total ReturnC | 9.95% |
| 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) | 1.51%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $183 |
| Portfolio turnover rateE | 117%F |
A For the period August 16, 2019 (commencement of operations) to July 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.
Notes to Financial Statements
For the period ended July 31, 2020
1. Organization.
Fidelity Managed Retirement Income 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).
Each Fund offers the following classes of shares: Class A, Fidelity Managed Retirement shares, 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 does 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, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, 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 – Investment 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. The aggregate value of investments by input level as of July 31, 2020 is included at the end of each Fund's Schedule of Investments.
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. As of July 31, 2020, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds 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 | $14,573,391 | $934,944 | $(140,177) | $794,767 |
| Fidelity Managed Retirement 2010 Fund | 7,418,362 | 548,526 | (85,459) | 463,067 |
| Fidelity Managed Retirement 2015 Fund | 6,403,463 | 449,815 | (72,442) | 377,373 |
| Fidelity Managed Retirement 2020 Fund | 6,830,092 | 449,965 | (96,883) | 353,082 |
| Fidelity Managed Retirement 2025 Fund | 30,734,475 | 2,004,874 | (525,655) | 1,479,219 |
| Fidelity Managed Retirement 2030 Fund | 5,940,344 | 254,862 | (105,029) | 149,833 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed ordinary income | Undistributed long-term capital gain | Net unrealized appreciation (depreciation) on securities and other investments | |
| Fidelity Managed Retirement Income Fund | $4,748 | $24,274 | $ 794,767 |
| Fidelity Managed Retirement 2010 Fund | 4,639 | 65,883 | 463,067 |
| Fidelity Managed Retirement 2015 Fund | 2,997 | 55,535 | 377,373 |
| Fidelity Managed Retirement 2020 Fund | 2,781 | 71,737 | 353,082 |
| Fidelity Managed Retirement 2025 Fund | 10,190 | 284,981 | 1,479,219 |
| Fidelity Managed Retirement 2030 Fund(a) | 19,932 | 27,649 | 149,833 |
(a) For the period August 16, 2019 (commencement of operations) to July 31, 2020.
Due to large subscriptions in the period, Fidelity Managed Retirement 2030 Fund is subject to an annual limit on its use of some of its unrealized capital losses to offset capital gains in future periods. If those capital losses are realized and the limitation prevents the Fund from using any of those capital losses in a future period, those capital losses will be available to offset capital gains in subsequent periods.
The tax character of distributions paid was as follows:
| July 31, 2020 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Managed Retirement Income Fund | $147,702 | $31,840 | $179,542 |
| Fidelity Managed Retirement 2010 Fund | 186,222 | 93,992 | 280,214 |
| Fidelity Managed Retirement 2015 Fund | 113,805 | 63,371 | 177,176 |
| Fidelity Managed Retirement 2020 Fund | 108,340 | 59,913 | 168,253 |
| Fidelity Managed Retirement 2025 Fund | 526,842 | 458,534 | 985,376 |
| Fidelity Managed Retirement 2030 Fund(a) | 45,439 | 4,622 | 50,061 |
(a) For the period August 16, 2019 (commencement of operations) to July 31, 2020.
| July 31, 2019 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Managed Retirement Income Fund | $147,618 | $128,763 | $276,381 |
| Fidelity Managed Retirement 2010 Fund | 236,613 | 232,369 | 468,982 |
| Fidelity Managed Retirement 2015 Fund | 110,916 | 127,365 | 238,281 |
| Fidelity Managed Retirement 2020 Fund | 89,681 | 117,686 | 207,367 |
| Fidelity Managed Retirement 2025 Fund | 477,671 | 654,214 | 1,131,885 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and securities acquired in the merger, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Managed Retirement Income Fund | 7,981,399 | 4,961,362 |
| Fidelity Managed Retirement 2010 Fund | 4,098,352 | 5,938,053 |
| Fidelity Managed Retirement 2015 Fund | 5,547,805 | 3,680,697 |
| Fidelity Managed Retirement 2020 Fund | 6,290,298 | 4,016,365 |
| Fidelity Managed Retirement 2025 Fund | 28,318,168 | 18,530,492 |
| Fidelity Managed Retirement 2030 Fund | 9,694,191 | 3,758,878 |
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 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 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% | $595 | $– |
| Fidelity Managed Retirement 2010 Fund | ||||
| Class A | -% | .25% | $498 | $– |
| Fidelity Managed Retirement 2015 Fund | ||||
| Class A | -% | .25% | $1,814 | $– |
| Fidelity Managed Retirement 2020 Fund | ||||
| Class A | -% | .25% | $209 | $36 |
| Fidelity Managed Retirement 2025 Fund | ||||
| Class A | -% | .25% | $2,039 | $– |
| Fidelity Managed Retirement 2030 Fund | ||||
| Class A | -% | .25% | $560 | $412 |
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 | $1,105 |
| Fidelity Managed Retirement 2010 Fund | |
| Class A | $6 |
| Fidelity Managed Retirement 2015 Fund | |
| Class A | $788 |
| Fidelity Managed Retirement 2020 Fund | |
| Class A | $884 |
| Fidelity Managed Retirement 2025 Fund | |
| Class A | $1,039 |
| Fidelity Managed Retirement 2030 Fund | |
| Class A | $37 |
Interfund Trades. 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 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 2010 Fund | $1 |
| Fidelity Managed Retirement 2020 Fund | 1 |
| Fidelity Managed Retirement 2025 Fund | 4 |
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2020 | Year ended July 31, 2019 |
|
| Fidelity Managed Retirement Income Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $5,373 | $6,373 |
| Class M | – | 1,746 |
| Class C | – | 1,664 |
| Fidelity Managed Retirement Income | 163,342 | 264,089 |
| Class K | 2,469 | – |
| Class K6 | 4,286 | – |
| Class I | 1,500 | 2,509 |
| Class Z6 | 2,572 | – |
| Total | $179,542 | $276,381 |
| Fidelity Managed Retirement 2010 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $5,526 | $6,922 |
| Class M | – | 845 |
| Class C | – | 4,945 |
| Fidelity Managed Retirement 2010 | 261,431 | 454,437 |
| Class K | 3,116 | – |
| Class K6 | 3,473 | – |
| Class I | 3,147 | 1,833 |
| Class Z6 | 3,521 | – |
| Total | $280,214 | $468,982 |
| Fidelity Managed Retirement 2015 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $16,767 | $13,554 |
| Class M | – | 1,377 |
| Class C | – | 3,298 |
| Fidelity Managed Retirement 2015 | 135,472 | 209,247 |
| Class K | 3,257 | – |
| Class K6 | 3,350 | – |
| Class I | 8,874 | 10,805 |
| Class Z6 | 9,456 | – |
| Total | $177,176 | $238,281 |
| Fidelity Managed Retirement 2020 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $664 | $1,042 |
| Class M | – | 9,779 |
| Class C | – | 5,230 |
| Fidelity Managed Retirement 2020 | 151,037 | 189,573 |
| Class K | 3,242 | – |
| Class K6 | 4,294 | – |
| Class I | 5,679 | 1,743 |
| Class Z6 | 3,337 | – |
| Total | $168,253 | $207,367 |
| Fidelity Managed Retirement 2025 Fund(a) | ||
| Distributions to shareholders | ||
| Class A | $27,382 | $35,104 |
| Class M | – | 29,200 |
| Class C | – | 8,132 |
| Fidelity Managed Retirement 2025 | 909,276 | 1,057,637 |
| Class K | 3,971 | – |
| Class K6 | 21,421 | – |
| Class I | 19,263 | 1,812 |
| Class Z6 | 4,063 | – |
| Total | $985,376 | $1,131,885 |
| Fidelity Managed Retirement 2030 Fund(b) | ||
| Distributions to shareholders | ||
| Class A | $3,496 | $– |
| Fidelity Managed Retirement 2030 Fund | 33,333 | – |
| Class K | 3,179 | – |
| Class K6 | 3,628 | – |
| Class I | 3,111 | – |
| Class Z6 | 3,314 | – |
| Total | $50,061 | $– |
(a) Distributions for Class K, K6 and Z6 are for the period August 1, 2019 (commencement of sale of shares) to July 31, 2020.
(b) For the period August 16, 2019 (commencement of operations) to July 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 | |
| Year ended July 31, 2020 | Year ended July 31, 2019 | Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Fidelity Managed Retirement Income Fund(a) | ||||
| Class A | ||||
| Shares sold | 2,961 | 478 | $172,135 | $26,868 |
| Issued in exchange for the shares of Fidelity Managed Retirement 2005 Fund | 3,783 | – | 227,013 | – |
| Reinvestment of distributions | 90 | 110 | 5,242 | 6,124 |
| Shares redeemed | (2,404) | (79) | (133,759) | (4,444) |
| Net increase (decrease) | 4,430 | 509 | $270,631 | $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 | 95,756 | 15,319 | $5,601,494 | $875,448 |
| Issued in exchange for the shares of Fidelity Managed Retirement 2005 Fund | 80,057 | – | 4,801,815 | – |
| Reinvestment of distributions | 2,153 | 3,593 | 125,471 | 200,150 |
| Shares redeemed | (51,814) | (30,990) | (2,986,202) | (1,772,969) |
| Net increase (decrease) | 126,152 | (12,078) | $7,542,578 | $(697,371) |
| Class K | ||||
| Shares sold | 1,730 | – | $100,006 | $– |
| Issued in exchange for the shares of Fidelity Managed Retirement 2005 Fund | 1,773 | – | 106,390 | – |
| Reinvestment of distributions | 42 | – | 2,469 | – |
| Shares redeemed | (1,773) | – | (106,390) | – |
| Net increase (decrease) | 1,772 | – | $102,475 | $– |
| Class K6 | ||||
| Shares sold | 7,492 | – | $434,829 | $– |
| Issued in exchange for the shares of Fidelity Managed Retirement 2005 Fund | 1,825 | – | 109,422 | – |
| Reinvestment of distributions | 74 | – | 4,286 | – |
| Shares redeemed | (2,210) | – | (131,868) | – |
| Net increase (decrease) | 7,181 | – | $416,669 | $– |
| Class I | ||||
| Shares sold | – | 766 | $– | $44,238 |
| Issued in exchange for the shares of Fidelity Managed Retirement 2005 Fund | 4,654 | – | 279,419 | – |
| Reinvestment of distributions | 26 | 45 | 1,500 | 2,509 |
| Shares redeemed | (1,382) | (221) | (78,322) | (12,299) |
| Net increase (decrease) | 3,298 | 590 | $202,597 | $34,448 |
| Class Z6 | ||||
| Shares sold | 1,730 | – | $100,010 | $– |
| Issued in exchange for the shares of Fidelity Managed Retirement 2005 Fund | 1,776 | – | 106,492 | – |
| Reinvestment of distributions | 44 | – | 2,572 | – |
| Shares redeemed | (1,776) | – | (106,492) | – |
| Net increase (decrease) | 1,774 | – | $102,582 | $– |
| Fidelity Managed Retirement 2010 Fund(a) | ||||
| Class A | ||||
| Shares sold | 42 | 1,165 | $2,450 | $63,933 |
| Reinvestment of distributions | 97 | 128 | 5,526 | 6,922 |
| Shares redeemed | (527) | (48) | (28,489) | (2,560) |
| Net increase (decrease) | (388) | 1,245 | $(20,513) | $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 | 16,045 | 16,436 | $915,896 | $912,020 |
| Reinvestment of distributions | 3,708 | 6,730 | 210,481 | 365,530 |
| Shares redeemed | (59,561) | (21,302) | (3,354,700) | (1,165,906) |
| Net increase (decrease) | (39,808) | 1,864 | $(2,228,323) | $111,644 |
| Class K | ||||
| Shares sold | 1,773 | – | $100,000 | $– |
| Reinvestment of distributions | 55 | – | 3,116 | – |
| Net increase (decrease) | 1,828 | – | $103,116 | $– |
| Class K6 | ||||
| Shares sold | 2,669 | – | $151,341 | $– |
| Reinvestment of distributions | 61 | – | 3,473 | – |
| Shares redeemed | (10) | – | (564) | – |
| Net increase (decrease) | 2,720 | – | $154,250 | $– |
| Class I | ||||
| Shares sold | 3 | 1,309 | $183 | $73,984 |
| Reinvestment of distributions | 55 | 34 | 3,146 | 1,833 |
| Shares redeemed | (96) | – | (5,396) | – |
| Net increase (decrease) | (38) | 1,343 | $(2,067) | $75,817 |
| Class Z6 | ||||
| Shares sold | 2,881 | – | $163,800 | $– |
| Reinvestment of distributions | 62 | – | 3,521 | – |
| Shares redeemed | (72) | – | (4,160) | – |
| Net increase (decrease) | 2,871 | – | $163,161 | $– |
| Fidelity Managed Retirement 2015 Fund(a) | ||||
| Class A | ||||
| Shares sold | 21,213 | 3 | $1,098,855 | $175 |
| Reinvestment of distributions | 313 | 265 | 16,767 | 13,554 |
| Shares redeemed | (7,675) | (221) | (406,811) | (11,309) |
| Net increase (decrease) | 13,851 | 47 | $708,811 | $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 | 34,327 | 20,102 | $1,833,919 | $1,052,586 |
| Reinvestment of distributions | 2,138 | 3,554 | 114,384 | 181,789 |
| Shares redeemed | (20,581) | (15,511) | (1,090,299) | (807,368) |
| Net increase (decrease) | 15,884 | 8,145 | $858,004 | $427,007 |
| Class K | ||||
| Shares sold | 1,884 | – | $100,000 | $– |
| Reinvestment of distributions | 61 | – | 3,256 | – |
| Net increase (decrease) | 1,945 | – | $103,256 | $– |
| Class K6 | ||||
| Shares sold | 1,950 | – | $103,563 | $– |
| Reinvestment of distributions | 63 | – | 3,350 | – |
| Net increase (decrease) | 2,013 | – | $106,913 | $– |
| Class I | ||||
| Shares sold | 939 | 1,815 | $49,440 | $96,764 |
| Reinvestment of distributions | 166 | 212 | 8,874 | 10,805 |
| Shares redeemed | (1,574) | (58) | (84,118) | (2,909) |
| Net increase (decrease) | (469) | 1,969 | $(25,804) | $104,660 |
| Class Z6 | ||||
| Shares sold | 8,483 | – | $456,007 | $– |
| Reinvestment of distributions | 176 | – | 9,456 | – |
| Shares redeemed | (6,713) | – | (356,110) | – |
| Net increase (decrease) | 1,946 | – | $109,353 | $– |
| Fidelity Managed Retirement 2020 Fund(a) | ||||
| Class A | ||||
| Shares sold | 4,071 | 37 | $206,022 | $1,804 |
| Reinvestment of distributions | 13 | 21 | 664 | 1,042 |
| Shares redeemed | (1,579) | (3) | (81,863) | (135) |
| Net increase (decrease) | 2,505 | 55 | $124,823 | $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 | 59,096 | 55,563 | $3,008,096 | $2,798,761 |
| Reinvestment of distributions | 2,463 | 3,094 | 127,930 | 152,765 |
| Shares redeemed | (30,282) | (34,614) | (1,522,054) | (1,727,788) |
| Net increase (decrease) | 31,277 | 24,043 | $1,613,972 | $1,223,738 |
| Class K | ||||
| Shares sold | 1,950 | – | $100,000 | $– |
| Reinvestment of distributions | 62 | – | 3,242 | – |
| Net increase (decrease) | 2,012 | – | $103,242 | $– |
| Class K6 | ||||
| Shares sold | 7,461 | – | $394,204 | $– |
| Reinvestment of distributions | 83 | – | 4,294 | – |
| Net increase (decrease) | 7,544 | – | $398,498 | $– |
| Class I | ||||
| Shares sold | 790 | 5,102 | $38,069 | $263,299 |
| Reinvestment of distributions | 106 | 35 | 5,509 | 1,743 |
| Shares redeemed | (2,618) | – | (133,829) | – |
| Net increase (decrease) | (1,722) | 5,137 | $(90,251) | $265,042 |
| Class Z6 | ||||
| Shares sold | 1,950 | – | $100,000 | $– |
| Reinvestment of distributions | 64 | – | 3,337 | – |
| Net increase (decrease) | 2,014 | – | $103,337 | $– |
| Fidelity Managed Retirement 2025 Fund(a) | ||||
| Class A | ||||
| Shares sold | 7,638 | – | $411,467 | $– |
| Reinvestment of distributions | 513 | 694 | 27,382 | 35,104 |
| Shares redeemed | (661) | (798) | (35,093) | (38,947) |
| Net increase (decrease) | 7,490 | (104) | $403,756 | $(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 | 303,562 | 74,256 | $16,048,520 | $3,884,708 |
| Reinvestment of distributions | 14,686 | 18,018 | 781,612 | 915,888 |
| Shares redeemed | (153,379) | (24,076) | (7,832,474) | (1,250,835) |
| Net increase (decrease) | 164,869 | 68,198 | $8,997,658 | $3,549,761 |
| Class K | ||||
| Shares sold | 1,893 | – | $100,000 | $– |
| Reinvestment of distributions | 75 | – | 3,971 | – |
| Net increase (decrease) | 1,968 | – | $103,971 | $– |
| Class K6 | ||||
| Shares sold | 26,559 | – | $1,442,572 | $– |
| Reinvestment of distributions | 399 | – | 21,421 | – |
| Shares redeemed | (19,486) | – | (1,068,818) | – |
| Net increase (decrease) | 7,472 | – | $395,175 | $– |
| Class I | ||||
| Shares sold | 2,091 | 12,228 | $109,870 | $651,861 |
| Reinvestment of distributions | 342 | 35 | 18,184 | 1,812 |
| Shares redeemed | (6,216) | – | (334,404) | – |
| Net increase (decrease) | (3,783) | 12,263 | $(206,350) | $653,673 |
| Class Z6 | ||||
| Shares sold | 1,891 | – | $100,000 | $– |
| Reinvestment of distributions | 76 | – | 4,062 | – |
| Net increase (decrease) | 1,967 | – | $104,062 | $– |
| Fidelity Managed Retirement 2030 Fund(b) | ||||
| Class A | ||||
| Shares sold | 27,514 | – | $273,875 | $– |
| Reinvestment of distributions | 333 | – | 3,496 | – |
| Net increase (decrease) | 27,847 | – | $277,371 | $– |
| Fidelity Managed Retirement 2030 Fund | ||||
| Shares sold | 689,665 | – | $7,123,467 | $– |
| Reinvestment of distributions | 3,188 | – | 33,308 | – |
| Shares redeemed | (230,074) | – | (2,289,429) | – |
| Net increase (decrease) | 462,779 | – | $4,867,346 | $– |
| Class K | ||||
| Shares sold | 16,666 | – | $166,660 | $– |
| Reinvestment of distributions | 304 | – | 3,179 | – |
| Net increase (decrease) | 16,970 | – | $169,839 | $– |
| Class K6 | ||||
| Shares sold | 18,661 | – | $186,852 | $– |
| Reinvestment of distributions | 347 | – | 3,628 | – |
| Shares redeemed | (2,006) | – | (18,404) | – |
| Net increase (decrease) | 17,002 | – | $172,076 | $– |
| Class I | ||||
| Shares sold | 23,316 | – | $233,650 | $– |
| Reinvestment of distributions | 298 | – | 3,111 | – |
| Shares redeemed | (50) | – | (489) | – |
| Net increase (decrease) | 23,564 | – | $236,272 | $– |
| Class Z6 | ||||
| Shares sold | 16,666 | – | $166,660 | $– |
| Reinvestment of distributions | 317 | – | 3,314 | – |
| Net increase (decrease) | 16,983 | – | $169,974 | $– |
(a) Share transactions for Class K, K6 and Z6 are for the period August 1, 2019 (commencement of sale of shares) to July 31, 2020.
(b) For the period August 16, 2019 (commencement of operations) to July 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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Funds' performance.
11. Merger Information.
On July 17, 2020, Fidelity Managed Retirement Income Fund acquired all of the assets and assumed all of the liabilities of Fidelity Managed Retirement 2005 Fund ("Target Fund") pursuant to an Agreement and Plan of Reorganization approved by the Board of Trustees ("The Board"). The acquisition was accomplished by an exchange of each class of Fidelity Managed Retirement Income Fund for corresponding shares then outstanding of the Target Fund at its respective net asset value on the acquisition date. The reorganization provides shareholders of the Target Fund access to a larger portfolio with a similar investment objective and lower expenses. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Fund's net assets of $5,630,551, including securities of $5,628,854 and unrealized appreciation of $318,951, was combined with the Fidelity Managed Retirement Income Fund net assets of $9,657,715 for total net assets after the acquisition of $15,288,266.
Pro forma results of operations of the combined entity for the entire period ended July 31, 2020, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
| Net investment income (loss) | $205,237 |
| Total net realized gain (loss) | 100,256 |
| Total change in net unrealized appreciation (depreciation) | 632,033 |
| Net increase (decrease) in net assets resulting from operations | $937,526 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the acquired fund that has been included in Fidelity Managed Retirement Income Fund accompanying Statement of Operations since July 17, 2020.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Income Fund and the Shareholders of Fidelity Managed Retirement Income 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:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Fidelity Managed Retirement Income 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"), each a fund of Fidelity Income Fund, including the schedules of investments, as of July 31, 2020, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, except for the Fidelity Managed Retirement 2030 Fund; the related statement of operations, the statement of changes in net assets, and the financial highlights for the period from August 16, 2019 (commencement of operations) to July 31, 2020 for the Fidelity Managed Retirement 2030 Fund; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2020, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended (or for the period mentioned above), in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 11, 2020
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. If the interests of a fund and an underlying Fidelity® fund were to diverge, a conflict of interest could arise and affect how the Trustees and Members of the Advisory Board fulfill their fiduciary duties to the affected funds. FMR has structured the funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, FMR, the Trustees, and Members of the Advisory Board would take reasonable steps to minimize and, if possible, eliminate the conflict. Each of the Trustees oversees 280 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 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.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Arthur E. Johnson serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, asset allocation and certain equity funds, and other Boards oversee Fidelity's high income and other equity funds. The asset allocation funds may invest in Fidelity® funds that are overseen by such other Boards. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Abigail P. Johnson (1961)
Year of Election or Appointment: 2009
Trustee
Chairman of the Board of Trustees
Ms. Johnson also serves as Trustee of other Fidelity® funds. Ms. Johnson serves as Chairman (2016-present), Chief Executive Officer (2014-present), and Director (2007-present) of FMR LLC (diversified financial services company), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of Fidelity Management & Research Company LLC (investment adviser firm, 2011-present). Previously, Ms. Johnson served as Chairman and Director of FMR Co., Inc. (investment adviser firm, 2011-2019), Vice Chairman (2007-2016) and President (2013-2016) of FMR LLC, President and a Director of Fidelity Management & Research Company (2001-2005), a Trustee of other investment companies advised by Fidelity Management & Research Company, Fidelity Investments Money Management, Inc. (investment adviser firm), and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity® funds (2001-2005), and managed a number of Fidelity® funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.
Jennifer Toolin McAuliffe (1959)
Year of Election or Appointment: 2016
Trustee
Ms. McAuliffe also serves as Trustee of other Fidelity® funds. Previously, Ms. McAuliffe served as Co-Head of Fixed Income of Fidelity Investments Limited (now known as FIL Limited (FIL)) (diversified financial services company), Director of Research for FIL’s credit and quantitative teams in London, Hong Kong and Tokyo and Director of Research for taxable and municipal bonds at Fidelity Investments Money Management, Inc. Ms. McAuliffe previously served as a member of the Advisory Board of certain Fidelity® funds (2016). Ms. McAuliffe was previously a lawyer at Ropes & Gray LLP and currently serves as director or trustee of several not-for-profit entities.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Elizabeth S. Acton (1951)
Year of Election or Appointment: 2013
Trustee
Ms. Acton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Acton served as Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011) and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). Ms. Acton previously served as a member of the Advisory Board of certain Fidelity® funds (2013-2016).
Ann E. Dunwoody (1953)
Year of Election or Appointment: 2018
Trustee
General Dunwoody also serves as Trustee of other Fidelity® funds. General Dunwoody (United States Army, Retired) was the first woman in U.S. military history to achieve the rank of four-star general and prior to her retirement in 2012 held a variety of positions within the U.S. Army, including Commanding General, U.S. Army Material Command (2008-2012). General Dunwoody currently serves as President of First to Four LLC (leadership and mentoring services, 2012-present), a member of the Board and Nomination and Corporate Governance Committees of Kforce Inc. (professional staffing services, 2016-present) and a member of the Board of Automattic Inc. (software engineering, 2018-present). Previously, General Dunwoody served as a member of the Advisory Board and Nominating and Corporate Governance Committee of L3 Technologies, Inc. (communication, electronic, sensor and aerospace systems, 2013-2019) and a member of the Board and Audit and Sustainability and Corporate Responsibility Committees of Republic Services, Inc. (waste collection, disposal and recycling, 2013-2016). Ms. Dunwoody also serves on several boards for non-profit organizations, including as a member of the Board, Chair of the Nomination and Governance Committee and a member of the Audit Committee of Logistics Management Institute (consulting non-profit, 2012-present), a member of the Council of Trustees for the Association of the United States Army (advocacy non-profit, 2013-present), a member of the Board of Florida Institute of Technology (2015-present) and a member of the Board of ThanksUSA (military family education non-profit, 2014-present). General Dunwoody previously served as a member of the Advisory Board of certain Fidelity® funds (2018).
John Engler (1948)
Year of Election or Appointment: 2014
Trustee
Mr. Engler also serves as Trustee of other Fidelity® funds. Previously, Mr. Engler served as Governor of Michigan (1991-2003), President of the Business Roundtable (2011-2017) and interim President of Michigan State University (2018-2019). Mr. Engler currently serves as a member of the Board of K12 Inc. (technology-based education company, 2012-present). Previously, Mr. Engler served as a member of the Board of Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-2019) and Trustee of The Munder Funds (2003-2014). Mr. Engler previously served as a member of the Advisory Board of certain Fidelity® funds (2014-2016).
Robert F. Gartland (1951)
Year of Election or Appointment: 2010
Trustee
Mr. Gartland also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007), including Managing Director (1987-2007) and Chase Manhattan Bank (1975-1978). Mr. Gartland previously served as Chairman and an investor in Gartland & Mellina Group Corp. (consulting, 2009-2019), as a member of the Board of National Securities Clearing Corporation (1993-1996) and as Chairman of TradeWeb (2003-2004).
Arthur E. Johnson (1947)
Year of Election or Appointment: 2008
Trustee
Chairman of the Independent Trustees
Mr. Johnson also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). Mr. Johnson currently serves as a member of the Board of Booz Allen Hamilton (management consulting, 2011-present). Mr. Johnson previously served as a member of the Board of Eaton Corporation plc (diversified power management, 2009-2019) and a member of the Board of AGL Resources, Inc. (holding company, 2002-2016). Mr. Johnson previously served as Vice Chairman (2015-2018) of the Independent Trustees of certain Fidelity® funds. Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson.
Michael E. Kenneally (1954)
Year of Election or Appointment: 2009
Trustee
Vice Chairman of the Independent Trustees
Mr. Kenneally also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management and Executive Vice President and Chief Investment Officer of Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager for various institutional equity accounts and mutual funds and Portfolio Manager for a number of institutional fixed-income clients. Mr. Kenneally began his career as a Research Analyst in 1983 and was awarded the Chartered Financial Analyst (CFA) designation in 1991.
Marie L. Knowles (1946)
Year of Election or Appointment: 2001
Trustee
Ms. Knowles also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Knowles held several positions at Atlantic Richfield Company (diversified energy), including Executive Vice President and Chief Financial Officer (1996-2000), Senior Vice President (1993-1996) and President of ARCO Transportation Company (pipeline and tanker operations, 1993-1996). Ms. Knowles currently serves as a member of the Board of McKesson Corporation (healthcare service, since 2002), a member of the Board of the Santa Catalina Island Company (real estate, 2009-present), a member of the Investment Company Institute Board of Governors and a member of the Governing Council of the Independent Directors Council (2014-present). Ms. Knowles also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Ms. Knowles previously served as Chairman (2015-2018) and Vice Chairman (2012-2015) of the Independent Trustees of certain Fidelity® funds.
Mark A. Murray (1954)
Year of Election or Appointment: 2016
Trustee
Mr. Murray also serves as Trustee of other Fidelity® funds. Previously, Mr. Murray served as Co-Chief Executive Officer (2013-2016), President (2006-2013) and Vice Chairman (2013-2020) of Meijer, Inc. Mr. Murray serves as a member of the Board and Nuclear Review and Public Policy and Responsibility Committees of DTE Energy Company (diversified energy company, 2009-present) and a member of the Board and Audit Committee and Chairman of the Nominating and Corporate Governance Committee of Universal Forest Products, Inc. (manufacturer and distributor of wood and wood-alternative products, 2004-2016). Mr. Murray previously served as a member of the Board of Spectrum Health (not-for-profit health system, 2015-2019). Mr. Murray also serves as a member of the Board of many community and professional organizations. Mr. Murray previously served as a member of the Advisory Board of certain Fidelity® funds (2016).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
David J. Carter (1973)
Year of Election or Appointment: 2020
Assistant Secretary
Mr. Carter also serves as Assistant Secretary of other funds. Mr. Carter serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
President and Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Vadim Zlotnikov (1962)
Year of Election or Appointment: 2019
Vice President
Mr. Zlotnikov also serves as Vice President of other funds. Mr. Zlotnikov serves as President of FIAM (Fidelity Institutional Asset Management) and is an employee of Fidelity Investments (2018-present). Previously, Mr. Zlotnikov served as President and Chief Investment Officer of Global Asset Allocation (2018-2020). Prior to joining Fidelity Investments, Mr. Zlotnikov served as Co-Head of Multi-Asset Solutions, Chief Market Strategist, and CIO of Systematic Strategies with AllianceBernstein (investment adviser firm, 2002-2018).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 (February 1, 2020 to July 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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2020 | Ending Account Value July 31, 2020 | Expenses Paid During Period-B February 1, 2020 to July 31, 2020 |
|
| Fidelity Managed Retirement Income Fund | ||||
| Class A | .70% | |||
| Actual | $1,000.00 | $1,031.30 | $3.54 | |
| Hypothetical-C | $1,000.00 | $1,021.38 | $3.52 | |
| Fidelity Managed Retirement Income | .45% | |||
| Actual | $1,000.00 | $1,032.70 | $2.27 | |
| Hypothetical-C | $1,000.00 | $1,022.63 | $2.26 | |
| Class K | .35% | |||
| Actual | $1,000.00 | $1,033.20 | $1.77 | |
| Hypothetical-C | $1,000.00 | $1,023.12 | $1.76 | |
| Class K6 | .25% | |||
| Actual | $1,000.00 | $1,033.70 | $1.26 | |
| Hypothetical-C | $1,000.00 | $1,023.62 | $1.26 | |
| Class I | .44% | |||
| Actual | $1,000.00 | $1,032.70 | $2.22 | |
| Hypothetical-C | $1,000.00 | $1,022.68 | $2.21 | |
| Class Z6 | .25% | |||
| Actual | $1,000.00 | $1,033.80 | $1.26 | |
| Hypothetical-C | $1,000.00 | $1,023.62 | $1.26 | |
| Fidelity Managed Retirement 2010 Fund | ||||
| Class A | .71% | |||
| Actual | $1,000.00 | $1,029.90 | $3.58 | |
| Hypothetical-C | $1,000.00 | $1,021.33 | $3.57 | |
| Fidelity Managed Retirement 2010 | .46% | |||
| Actual | $1,000.00 | $1,031.30 | $2.32 | |
| Hypothetical-C | $1,000.00 | $1,022.58 | $2.31 | |
| Class K | .36% | |||
| Actual | $1,000.00 | $1,031.90 | $1.82 | |
| Hypothetical-C | $1,000.00 | $1,023.07 | $1.81 | |
| Class K6 | .26% | |||
| Actual | $1,000.00 | $1,032.30 | $1.31 | |
| Hypothetical-C | $1,000.00 | $1,023.57 | $1.31 | |
| Class I | .46% | |||
| Actual | $1,000.00 | $1,031.30 | $2.32 | |
| Hypothetical-C | $1,000.00 | $1,022.58 | $2.31 | |
| Class Z6 | .26% | |||
| Actual | $1,000.00 | $1,032.40 | $1.31 | |
| Hypothetical-C | $1,000.00 | $1,023.57 | $1.31 | |
| Fidelity Managed Retirement 2015 Fund | ||||
| Class A | .72% | |||
| Actual | $1,000.00 | $1,029.10 | $3.63 | |
| Hypothetical-C | $1,000.00 | $1,021.28 | $3.62 | |
| Fidelity Managed Retirement 2015 | .47% | |||
| Actual | $1,000.00 | $1,030.30 | $2.37 | |
| Hypothetical-C | $1,000.00 | $1,022.53 | $2.36 | |
| Class K | .37% | |||
| Actual | $1,000.00 | $1,030.70 | $1.87 | |
| Hypothetical-C | $1,000.00 | $1,023.02 | $1.86 | |
| Class K6 | .27% | |||
| Actual | $1,000.00 | $1,031.20 | $1.36 | |
| Hypothetical-C | $1,000.00 | $1,023.52 | $1.36 | |
| Class I | .47% | |||
| Actual | $1,000.00 | $1,030.20 | $2.37 | |
| Hypothetical-C | $1,000.00 | $1,022.53 | $2.36 | |
| Class Z6 | .28% | |||
| Actual | $1,000.00 | $1,031.30 | $1.41 | |
| Hypothetical-C | $1,000.00 | $1,023.47 | $1.41 | |
| Fidelity Managed Retirement 2020 Fund | ||||
| Class A | .72% | |||
| Actual | $1,000.00 | $1,026.90 | $3.63 | |
| Hypothetical-C | $1,000.00 | $1,021.28 | $3.62 | |
| Fidelity Managed Retirement 2020 | .47% | |||
| Actual | $1,000.00 | $1,028.30 | $2.37 | |
| Hypothetical-C | $1,000.00 | $1,022.53 | $2.36 | |
| Class K | .37% | |||
| Actual | $1,000.00 | $1,028.80 | $1.87 | |
| Hypothetical-C | $1,000.00 | $1,023.02 | $1.86 | |
| Class K6 | .27% | |||
| Actual | $1,000.00 | $1,029.20 | $1.36 | |
| Hypothetical-C | $1,000.00 | $1,023.52 | $1.36 | |
| Class I | .47% | |||
| Actual | $1,000.00 | $1,028.30 | $2.37 | |
| Hypothetical-C | $1,000.00 | $1,022.53 | $2.36 | |
| Class Z6 | .27% | |||
| Actual | $1,000.00 | $1,029.30 | $1.36 | |
| Hypothetical-C | $1,000.00 | $1,023.52 | $1.36 | |
| Fidelity Managed Retirement 2025 Fund | ||||
| Class A | .73% | |||
| Actual | $1,000.00 | $1,025.80 | $3.68 | |
| Hypothetical-C | $1,000.00 | $1,021.23 | $3.67 | |
| Fidelity Managed Retirement 2025 | .48% | |||
| Actual | $1,000.00 | $1,027.30 | $2.42 | |
| Hypothetical-C | $1,000.00 | $1,022.48 | $2.41 | |
| Class K | .38% | |||
| Actual | $1,000.00 | $1,027.80 | $1.92 | |
| Hypothetical-C | $1,000.00 | $1,022.97 | $1.91 | |
| Class K6 | .28% | |||
| Actual | $1,000.00 | $1,028.30 | $1.41 | |
| Hypothetical-C | $1,000.00 | $1,023.47 | $1.41 | |
| Class I | .48% | |||
| Actual | $1,000.00 | $1,027.30 | $2.42 | |
| Hypothetical-C | $1,000.00 | $1,022.48 | $2.41 | |
| Class Z6 | .28% | |||
| Actual | $1,000.00 | $1,028.30 | $1.41 | |
| Hypothetical-C | $1,000.00 | $1,023.47 | $1.41 | |
| Fidelity Managed Retirement 2030 Fund | ||||
| Class A | .73% | |||
| Actual | $1,000.00 | $1,025.60 | $3.68 | |
| Hypothetical-C | $1,000.00 | $1,021.23 | $3.67 | |
| Fidelity Managed Retirement 2030 Fund | .48% | |||
| Actual | $1,000.00 | $1,025.80 | $2.42 | |
| Hypothetical-C | $1,000.00 | $1,022.48 | $2.41 | |
| Class K | .38% | |||
| Actual | $1,000.00 | $1,026.30 | $1.91 | |
| Hypothetical-C | $1,000.00 | $1,022.97 | $1.91 | |
| Class K6 | .28% | |||
| Actual | $1,000.00 | $1,027.70 | $1.41 | |
| Hypothetical-C | $1,000.00 | $1,023.47 | $1.41 | |
| Class I | .48% | |||
| Actual | $1,000.00 | $1,025.80 | $2.42 | |
| Hypothetical-C | $1,000.00 | $1,022.48 | $2.41 | |
| Class Z6 | .28% | |||
| Actual | $1,000.00 | $1,027.70 | $1.41 | |
| Hypothetical-C | $1,000.00 | $1,023.47 | $1.41 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities and dividends derived from net investment income:
| Pay Date | Record Date | Capital Gains | |
| Fidelity Managed Retirement Income Fund | |||
| Class A | 09/14/2020 | 09/11/2020 | $0.092 |
| Fidelity Managed Retirement Income | 09/14/2020 | 09/11/2020 | $0.092 |
| Class K | 09/14/2020 | 09/11/2020 | $0.092 |
| Class K6 | 09/14/2020 | 09/11/2020 | $0.092 |
| Class I | 09/14/2020 | 09/11/2020 | $0.092 |
| Class Z6 | 09/14/2020 | 09/11/2020 | $0.092 |
| Fidelity Managed Retirement 2010 Fund | |||
| Class A | 09/14/2020 | 09/11/2020 | $0.498 |
| Fidelity Managed Retirement 2010 | 09/14/2020 | 09/11/2020 | $0.498 |
| Class K | 09/14/2020 | 09/11/2020 | $0.498 |
| Class K6 | 09/14/2020 | 09/11/2020 | $0.498 |
| Class I | 09/14/2020 | 09/11/2020 | $0.498 |
| Class Z6 | 09/14/2020 | 09/11/2020 | $0.498 |
| Fidelity Managed Retirement 2015 Fund | |||
| Class A | 09/14/2020 | 09/11/2020 | $0.423 |
| Fidelity Managed Retirement 2015 | 09/14/2020 | 09/11/2020 | $0.423 |
| Class K | 09/14/2020 | 09/11/2020 | $0.423 |
| Class K6 | 09/14/2020 | 09/11/2020 | $0.423 |
| Class I | 09/14/2020 | 09/11/2020 | $0.423 |
| Class Z6 | 09/14/2020 | 09/11/2020 | $0.423 |
| Fidelity Managed Retirement 2020 Fund | |||
| Class A | 09/14/2020 | 09/11/2020 | $0.544 |
| Fidelity Managed Retirement 2020 | 09/14/2020 | 09/11/2020 | $0.544 |
| Class K | 09/14/2020 | 09/11/2020 | $0.544 |
| Class K6 | 09/14/2020 | 09/11/2020 | $0.544 |
| Class I | 09/14/2020 | 09/11/2020 | $0.544 |
| Class Z6 | 09/14/2020 | 09/11/2020 | $0.544 |
| Fidelity Managed Retirement 2025 Fund | |||
| Class A | 09/14/2020 | 09/11/2020 | $0.476 |
| Fidelity Managed Retirement 2025 | 09/14/2020 | 09/11/2020 | $0.476 |
| Class K | 09/14/2020 | 09/11/2020 | $0.476 |
| Class K6 | 09/14/2020 | 09/11/2020 | $0.476 |
| Class I | 09/14/2020 | 09/11/2020 | $0.476 |
| Class Z6 | 09/14/2020 | 09/11/2020 | $0.476 |
| Fidelity Managed Retirement 2030 Fund | |||
| Class A | 09/14/2020 | 09/11/2020 | $0.053 |
| Fidelity Managed Retirement 2030 | 09/14/2020 | 09/11/2020 | $0.053 |
| Class K | 09/14/2020 | 09/11/2020 | $0.053 |
| Class K6 | 09/14/2020 | 09/11/2020 | $0.053 |
| Class I | 09/14/2020 | 09/11/2020 | $0.053 |
| Class Z6 | 09/14/2020 | 09/11/2020 | $0.053 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended July 31, 2020, or, if subsequently determined to be different, the net capital gain of such year.
| Fidelity Managed Retirement Income Fund | $47,094 |
| Fidelity Managed Retirement 2010 Fund | $127,878 |
| Fidelity Managed Retirement 2015 Fund | $89,136 |
| Fidelity Managed Retirement 2020 Fund | $108,574 |
| Fidelity Managed Retirement 2025 Fund | $514,298 |
| Fidelity Managed Retirement 2030 Fund | $32,270 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended July 17, 2020, or, if subsequently determined to be different, the net capital gain of such year.
| Fidelity Managed Retirement 2005 Fund | $55,388 |
A percentage of the dividends distributed during the fiscal year for the following funds were derived from interest on U.S. Government securities which is generally exempt from state income tax
| Fidelity Managed Retirement Income Fund | 18.41% |
| Fidelity Managed Retirement 2005 Fund | 18.32% |
| Fidelity Managed Retirement 2010 Fund | 15.56% |
| Fidelity Managed Retirement 2015 Fund | 13.88% |
| Fidelity Managed Retirement 2020 Fund | 11.79% |
| Fidelity Managed Retirement 2025 Fund | 11.06% |
| Fidelity Managed Retirement 2030 Fund | 11.22% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Class A | Retail Class | Class K | Class K6 | Class I | Class Z6 | |
| Fidelity Managed Retirement Income Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 18% | 15% | 13% | 12% | 18% | 12% |
| October 2019 | 25% | 22% | 21% | 20% | 22% | 20% |
| November 2019 | 24% | 22% | 20% | 19% | 22% | 19% |
| December 2019 | 22% | 22% | 21% | 21% | 22% | 21% |
| February 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 2% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2005 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 20% | 16% | 14% | 13% | 19% | 13% |
| October 2019 | 25% | 22% | 21% | 20% | 22% | 20% |
| November 2019 | 27% | 22% | 21% | 19% | 22% | 19% |
| December 2019 | 23% | 22% | 21% | 21% | 22% | 21% |
| February 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2010 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 28% | 22% | 19% | 18% | 25% | 18% |
| October 2019 | 34% | 30% | 29% | 28% | 30% | 28% |
| November 2019 | 38% | 30% | 28% | 26% | 30% | 26% |
| December 2019 | 31% | 30% | 30% | 29% | 30% | 29% |
| February 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2015 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 35% | 28% | 23% | 22% | 29% | 22% |
| October 2019 | 36% | 38% | 36% | 35% | 38% | 35% |
| November 2019 | 43% | 37% | 33% | 30% | 37% | 30% |
| December 2019 | 39% | 37% | 37% | 36% | 38% | 36% |
| February 2020 | 3% | 2% | 2% | 2% | 2% | 2% |
| March 2020 | 3% | 2% | 2% | 2% | 2% | 2% |
| April 2020 | 2% | 2% | 2% | 2% | 2% | 2% |
| May 2020 | 3% | 2% | 2% | 2% | 2% | 2% |
| June 2020 | 3% | 2% | 2% | 2% | 2% | 2% |
| July 2020 | 3% | 2% | 2% | 2% | 2% | 2% |
| Fidelity Managed Retirement 2020 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 68% | 36% | 31% | 29% | 53% | 29% |
| October 2019 | 47% | 42% | 41% | 40% | 42% | 40% |
| November 2019 | 62% | 43% | 36% | 33% | 38% | 33% |
| December 2019 | 44% | 42% | 42% | 41% | 43% | 41% |
| February 2020 | 2% | 3% | 3% | 2% | 3% | 2% |
| March 2020 | 3% | 3% | 3% | 2% | 3% | 2% |
| April 2020 | 3% | 3% | 3% | 2% | 3% | 2% |
| May 2020 | 4% | 3% | 3% | 3% | 3% | 3% |
| June 2020 | 8% | 3% | 2% | 2% | 3% | 2% |
| July 2020 | 0% | 3% | 2% | 2% | 3% | 2% |
| Fidelity Managed Retirement 2025 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 51% | 38% | 31% | 29% | 43% | 29% |
| October 2019 | 54% | 47% | 46% | 44% | 49% | 44% |
| November 2019 | 80% | 47% | 43% | 30% | 49% | 37% |
| December 2019 | 48% | 48% | 47% | 45% | 49% | 46% |
| February 2020 | 6% | 4% | 3% | 0% | 4% | 3% |
| March 2020 | 8% | 4% | 3% | 3% | 4% | 3% |
| April 2020 | 5% | 4% | 3% | 3% | 4% | 3% |
| May 2020 | 5% | 4% | 4% | 3% | 4% | 3% |
| June 2020 | 0% | 4% | 2% | 2% | 4% | 2% |
| July 2020 | 0% | 4% | 3% | 2% | 3% | 2% |
| Fidelity Managed Retirement 2030 Fund | ||||||
| August 2019 | N/A | N/A | N/A | N/A | N/A | N/A |
| September 2019 | 73% | 49% | 49% | 49% | 49% | 49% |
| October 2019 | 65% | 47% | 53% | 49% | 56% | 49% |
| November 2019 | 100% | 43% | 71% | 54% | 100% | 54% |
| December 2019 | 54% | 51% | 51% | 50% | 52% | 50% |
| February 2020 | 0% | 5% | 5% | 4% | 7% | 4% |
| March 2020 | 14% | 5% | 4% | 4% | 5% | 4% |
| April 2020 | 8% | 5% | 4% | 4% | 4% | 4% |
| May 2020 | 14% | 5% | 4% | 4% | 5% | 4% |
| June 2020 | 13% | 5% | 5% | 4% | 7% | 4% |
| July 2020 | 8% | 5% | 3% | 3% | 4% | 3% |
A percentage of the dividends distributed during the fiscal year for the following funds qualify as a section 199A dividend:
| Class A | Retail Class | Class K | Class K6 | Class I | Class Z6 | |
| Fidelity Managed Retirement Income Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| October 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| November 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| December 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| February 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 2% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2005 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| October 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| November 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| December 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| February 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2010 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| October 2019 | 2% | 2% | 2% | 1% | 2% | 1% |
| November 2019 | 2% | 2% | 1% | 1% | 2% | 1% |
| December 2019 | 2% | 2% | 2% | 2% | 2% | 2% |
| February 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2015 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| October 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| November 2019 | 2% | 1% | 1% | 1% | 1% | 1% |
| December 2019 | 1% | 1% | 1% | 1% | 1% | 1% |
| February 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2020 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 3% | 2% | 2% | 1% | 2% | 1% |
| October 2019 | 2% | 2% | 2% | 2% | 2% | 2% |
| November 2019 | 3% | 2% | 2% | 2% | 2% | 2% |
| December 2019 | 2% | 2% | 2% | 2% | 2% | 2% |
| February 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 0% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2025 Fund | ||||||
| August 2019 | 0% | 0% | 0% | 0% | 0% | 0% |
| September 2019 | 2% | 2% | 2% | 1% | 2% | 1% |
| October 2019 | 2% | 2% | 2% | 2% | 2% | 2% |
| November 2019 | 3% | 2% | 2% | 1% | 2% | 2% |
| December 2019 | 2% | 2% | 2% | 2% | 2% | 2% |
| February 2020 | 1% | 1% | 1% | 0% | 1% | 1% |
| March 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 0% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 0% | 1% | 1% | 1% | 1% | 1% |
| Fidelity Managed Retirement 2030 Fund | ||||||
| August 2019 | N/A | N/A | N/A | N/A | N/A | N/A |
| September 2019 | 3% | 2% | 2% | 2% | 2% | 2% |
| October 2019 | 3% | 2% | 2% | 2% | 2% | 2% |
| November 2019 | 0% | 2% | 3% | 2% | 0% | 2% |
| December 2019 | 2% | 2% | 2% | 2% | 2% | 2% |
| February 2020 | 0% | 1% | 1% | 1% | 1% | 1% |
| March 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| April 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
| May 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| June 2020 | 2% | 1% | 1% | 1% | 1% | 1% |
| July 2020 | 1% | 1% | 1% | 1% | 1% | 1% |
The funds will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Funds have adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage each Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. Each Fund’s Board of Trustees (the Board) has designated each Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
MRI-ANN-0920
1.9881729.103
Fidelity Simplicity RMD Income Fund℠
Fidelity Simplicity RMD 2010 Fund℠
Fidelity Simplicity RMD 2015 Fund℠
Fidelity Simplicity RMD 2020 Fund℠
Fidelity Simplicity RMD 2025 Fund℠
July 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
|
Fidelity Simplicity RMD Income Fund℠ | |
|
Fidelity Simplicity RMD 2010 Fund℠ | |
|
Fidelity Simplicity RMD 2015 Fund℠ | |
|
Fidelity Simplicity RMD 2020 Fund℠ | |
|
Fidelity Simplicity RMD 2025 Fund℠ | |
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 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:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Fidelity Simplicity RMD Income Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity Simplicity RMD Income Fund℠ | 7.19% | 4.65% | 6.28% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Simplicity RMD Income Fund℠ on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $18,393 | Fidelity Simplicity RMD Income Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Simplicity RMD 2010 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity Simplicity RMD 2010 Fund℠ | 7.44% | 5.39% | 7.25% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Simplicity RMD 2010 Fund℠ on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $20,131 | Fidelity Simplicity RMD 2010 Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Simplicity RMD 2015 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity Simplicity RMD 2015 Fund℠ | 7.71% | 5.71% | 7.59% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Simplicity RMD 2015 Fund℠ on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $20,787 | Fidelity Simplicity RMD 2015 Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Simplicity RMD 2020 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity Simplicity RMD 2020 Fund℠ | 7.88% | 5.99% | 7.98% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Simplicity RMD 2020 Fund℠ on July 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.
| Period Ending Values | ||
|
| $21,541 | Fidelity Simplicity RMD 2020 Fund℠ |
|
| $14,616 | Bloomberg Barclays U.S. Aggregate Bond Index |
Fidelity Simplicity RMD 2025 Fund℠
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average annual total returns for Fidelity Simplicity RMD 2025 Fund will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Simplicity RMD 2025 Fund℠ on August 16, 2019, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $10,945 | Fidelity Simplicity RMD 2025 Fund℠ |
|
| $11,533 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: For the 12 months ending July 31, 2020, financial markets were highly influenced by the global outbreak and spread of the coronavirus, which curtailed economic growth and the outlook for corporate earnings. Declared a pandemic on March 11, the crisis and containment efforts led to increased uncertainty, broad-based contraction in economic activity, elevated volatility and dislocation in financial markets. Rapid and expansive monetary- and fiscal-policy responses provided a partial offset to the economic disruption and fueled a sharp uptrend for many assets from March 24 through July 31.Non-U.S. equities gained 0.82% for the 12 months, according to the MSCI ACWI (All Country World Index) ex USA Index, reflecting significant ups and downs related to the pandemic. From a regional perspective, emerging markets (+7%), Europe ex U.K. (+4%) and Japan (+2%) outperformed the broader index. Conversely, the U.K. (-15%), Asia Pacific ex Japan (-9%) and Canada (-1%) lagged. By sector, information technology (+34%) and health care (+24%) led. On the other end of the spectrum, the energy sector (-28%) underperformed by the widest margin, while financials (-16%) and industrials (-3%) also notably trailed the index.
The Dow Jones U.S. Total Stock Market Index gained 10.80% for the 12 months. After a sharp decline in the first quarter of 2020 (-20.96%) due to the coronavirus outbreak, U.S. equities rebounded with a 22.09% advance in the second quarter and added 5.65% in July. Among sectors, energy (-39%) fared worst, whereas information technology (+37%) led the way by a wide margin. Consumer discretionary (+24%) and health care (+20%) also stood out this period. Large-cap stocks topped smaller-caps, while growth handily outpaced value. Elsewhere, commodities notably lagged equities.
Turning to fixed income, U.S. taxable investment-grade bonds (the Bloomberg Barclays U.S. Aggregate Bond Index) rose 10.12%, as investors generally sought assets with greater perceived safety and yields plunged. U.S. corporate bonds (+11.86%) and Treasury bonds (+11.84%) led the way, while Treasury Inflation-Protected Securities (+10.23%) also performed well. Agency bonds (+7.24%) and mortgage-backed securities (+5.43%) lagged the Bloomberg Barclays index. Extended (non-core) categories, including emerging-markets debt (+4.08%), high-yield bonds (+2.99%) and floating-rate bank loans (-0.79%) turned in lower returns. Comments from Co-Portfolio Managers Andrew Dierdorf and Brett Sumsion: For the fiscal year, returns for Fidelity Simplicity RMD Funds℠ ranged from about 7% to 8%, with performance trending higher among the funds for investors with a longer retirement horizon. Funds for investors with a greater number years to invest in retirement – those with more exposure to equities and lower allocations to fixed-income and short-term securities – fared a bit better than those that invest in a greater percentage of fixed-income and short-term debt, and less equity exposure. Each Fidelity Simplicity RMD Fund lagged its Composite index, primarily due to active asset allocation decisions. Specifically, a non-Composite allocation to commodities was the largest detractor the past 12 months, as this asset class returned -12.07%, according to the Bloomberg Barclays Commodity Index Total Return. Underweighting two strong-performing asset classes – U.S. equities and investment-grade bonds – also hindered the Funds’ relative results. Conversely, the performance of the Funds’ underlying investment portfolios was strong overall. In particular, the Funds’ investments in underlying non-U.S. equities contributed most, while investments in U.S. equities and investment-grade bonds also added value this period.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On June 13, 2020, Fidelity Simplicity RMD 2005 Fund closed to new investors in anticipation of its planned merger into Fidelity Simplicity RMD Income Fund.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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 38.6 |
| Fidelity Series Government Money Market Fund 0.23% | 19.4 |
| Fidelity Series Inflation-Protected Bond Index Fund | 12.0 |
| Fidelity Series Emerging Markets Opportunities Fund | 6.4 |
| Fidelity Series Short-Term Credit Fund | 4.4 |
| Fidelity Series Commodity Strategy Fund | 2.5 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 2.3 |
| Fidelity Series Overseas Fund | 1.5 |
| Fidelity Series International Growth Fund | 1.5 |
| Fidelity Series International Value Fund | 1.4 |
| 90.0 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 8.9% | |
| International Equity Funds | 12.4% | |
| Bond Funds | 54.9% | |
| Short-Term Funds | 23.8% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD Income Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 8.9% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 10,065 | $102,760 | |
| Fidelity Series Blue Chip Growth Fund (a) | 9,326 | 179,516 | |
| Fidelity Series Commodity Strategy Fund (a) | 245,952 | 998,565 | |
| Fidelity Series Growth Company Fund (a) | 17,158 | 411,967 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 27,322 | 417,759 | |
| Fidelity Series Large Cap Stock Fund (a) | 25,418 | 366,267 | |
| Fidelity Series Large Cap Value Index Fund (a) | 11,216 | 128,091 | |
| Fidelity Series Opportunistic Insights Fund (a) | 10,266 | 211,581 | |
| Fidelity Series Small Cap Discovery Fund (a) | 4,426 | 45,460 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 11,972 | 151,571 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 28,186 | 303,844 | |
| Fidelity Series Value Discovery Fund (a) | 19,146 | 230,711 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $3,470,798) | 3,548,092 | ||
| International Equity Funds - 12.4% | |||
| Fidelity Series Canada Fund (a) | 19,178 | 193,503 | |
| Fidelity Series Emerging Markets Fund (a) | 30,130 | 279,906 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 123,423 | 2,551,158 | |
| Fidelity Series International Growth Fund (a) | 32,476 | 583,270 | |
| Fidelity Series International Small Cap Fund (a) | 10,282 | 172,322 | |
| Fidelity Series International Value Fund (a) | 68,088 | 581,476 | |
| Fidelity Series Overseas Fund (a) | 53,764 | 584,417 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $4,539,821) | 4,946,052 | ||
| Bond Funds - 54.9% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 28,897 | 265,275 | |
| Fidelity Series Floating Rate High Income Fund (a) | 6,245 | 54,707 | |
| Fidelity Series High Income Fund (a) | 33,832 | 310,576 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 451,949 | 4,786,140 | |
| Fidelity Series International Credit Fund (a) | 1,680 | 17,451 | |
| Fidelity Series Investment Grade Bond Fund (a) | 1,247,325 | 15,391,989 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 85,373 | 922,882 | |
| Fidelity Series Real Estate Income Fund (a) | 16,749 | 166,487 | |
| TOTAL BOND FUNDS | |||
| (Cost $20,084,420) | 21,915,507 | ||
| Short-Term Funds - 23.8% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 7,738,767 | 7,738,767 | |
| Fidelity Series Short-Term Credit Fund (a) | 172,309 | 1,767,894 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $9,456,817) | 9,506,661 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $37,551,856) | 39,916,312 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (8,252) | ||
| NET ASSETS - 100% | $39,908,060 |
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 | $55,599 | $62,859 | $7,263 | $(9,502) | $11,182 | $102,760 |
| Fidelity Series Blue Chip Growth Fund | 116,700 | 92,269 | 122,853 | 13,269 | 3,197 | 18,340 | 179,516 |
| Fidelity Series Canada Fund | 57,662 | 108,077 | 44,599 | 1,535 | (6,495) | 1,147 | 193,503 |
| Fidelity Series Commodity Strategy Fund | 736,871 | 412,427 | 416,541 | 12,349 | (56,278) | (59,726) | 998,565 |
| Fidelity Series Emerging Markets Debt Fund | 151,703 | 63,377 | 45,813 | 8,614 | (2,876) | (3,369) | 265,275 |
| Fidelity Series Emerging Markets Fund | 77,775 | 124,402 | 40,703 | 2,577 | (1,224) | 11,422 | 279,906 |
| Fidelity Series Emerging Markets Opportunities Fund | 697,355 | 1,091,798 | 403,404 | 25,836 | (118) | 192,519 | 2,551,158 |
| Fidelity Series Floating Rate High Income Fund | 31,750 | 11,400 | 7,240 | 1,764 | (398) | (1,615) | 54,707 |
| Fidelity Series Government Money Market Fund 0.23% | 3,869,381 | 2,743,497 | 1,773,697 | 53,779 | -- | -- | 7,738,767 |
| Fidelity Series Growth Company Fund | 233,107 | 209,487 | 265,651 | 23,900 | 11,393 | 57,309 | 411,967 |
| Fidelity Series High Income Fund | 159,393 | 72,323 | 37,188 | 10,408 | (1,601) | (556) | 310,576 |
| Fidelity Series Inflation-Protected Bond Index Fund | 2,826,416 | 1,005,240 | 1,046,992 | 37,839 | 5,820 | 150,048 | 4,786,140 |
| Fidelity Series International Credit Fund | 5,597 | 354 | -- | 354 | -- | 285 | 17,451 |
| Fidelity Series International Growth Fund | 524,387 | 177,732 | 388,313 | 18,947 | 7,688 | 23,856 | 583,270 |
| Fidelity Series International Small Cap Fund | 114,738 | 55,974 | 72,148 | 5,720 | (2,563) | 8,190 | 172,322 |
| Fidelity Series International Value Fund | 494,388 | 233,281 | 329,599 | 21,028 | (30,423) | (26,447) | 581,476 |
| Fidelity Series Intrinsic Opportunities Fund | 284,238 | 283,133 | 300,525 | 15,020 | (20,562) | 2,107 | 417,759 |
| Fidelity Series Investment Grade Bond Fund | 7,931,312 | 3,267,205 | 2,399,166 | 250,853 | 6,143 | 677,567 | 15,391,989 |
| Fidelity Series Large Cap Stock Fund | 249,550 | 229,285 | 250,824 | 13,773 | (9,544) | 988 | 366,267 |
| Fidelity Series Large Cap Value Index Fund | 72,476 | 67,902 | 57,010 | 4,534 | (1,672) | (5,307) | 128,091 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 760,625 | 285,238 | 588,285 | 64,379 | 61,057 | 48,053 | 922,882 |
| Fidelity Series Opportunistic Insights Fund | 128,803 | 110,469 | 124,526 | 13,234 | (251) | 13,301 | 211,581 |
| Fidelity Series Overseas Fund | 18,709 | 467,992 | 167,940 | 918 | (10,381) | 37,291 | 584,417 |
| Fidelity Series Real Estate Income Fund | 101,031 | 36,684 | 22,686 | 6,483 | (1,771) | (9,241) | 166,487 |
| Fidelity Series Short-Term Credit Fund | 967,568 | 258,115 | 218,316 | 27,326 | (1,082) | 24,068 | 1,767,894 |
| Fidelity Series Small Cap Discovery Fund | 35,726 | 24,861 | 31,694 | 1,467 | (2,553) | 973 | 45,460 |
| Fidelity Series Small Cap Opportunities Fund | 106,857 | 86,311 | 95,362 | 7,085 | (3,954) | (3,210) | 151,571 |
| Fidelity Series Stock Selector Large Cap Value Fund | 192,889 | 180,730 | 173,716 | 11,624 | (13,396) | (6,249) | 303,844 |
| Fidelity Series Value Discovery Fund | 138,172 | 135,061 | 128,440 | 6,179 | (6,117) | (1,642) | 230,711 |
| $21,152,958 | $11,890,223 | $9,616,090 | $668,057 | $(87,463) | $1,161,284 | $39,916,312 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $3,548,092 | $3,548,092 | $-- | $-- |
| International Equity Funds | 4,946,052 | 4,946,052 | -- | -- |
| Bond Funds | 21,915,507 | 21,915,507 | -- | -- |
| Short-Term Funds | 9,506,661 | 9,506,661 | -- | -- |
| Total Investments in Securities: | $39,916,312 | $39,916,312 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD Income Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $37,551,856) | $39,916,312 | |
| Total Investment in Securities (cost $37,551,856) | $39,916,312 | |
| Cash | 139 | |
| Receivable for investments sold | 254,648 | |
| Receivable for fund shares sold | 85,924 | |
| Total assets | 40,257,023 | |
| Liabilities | ||
| Payable for investments purchased | $332,450 | |
| Payable for fund shares redeemed | 1,500 | |
| Accrued management fee | 15,013 | |
| Total liabilities | 348,963 | |
| Net Assets | $39,908,060 | |
| Net Assets consist of: | ||
| Paid in capital | $37,651,111 | |
| Total accumulated earnings (loss) | 2,256,949 | |
| Net Assets | $39,908,060 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($39,908,060 ÷ 653,083.00 shares) | $61.11 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $482,092 | |
| Expenses | ||
| Management fee | $106,606 | |
| Independent trustees' fees and expenses | 82 | |
| Total expenses | 106,688 | |
| Net investment income (loss) | 375,404 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | (87,463) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 185,965 | |
| Total net realized gain (loss) | 98,502 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 1,161,284 | |
| Total change in net unrealized appreciation (depreciation) | 1,161,284 | |
| Net gain (loss) | 1,259,786 | |
| Net increase (decrease) in net assets resulting from operations | $1,635,190 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $375,404 | $317,543 |
| Net realized gain (loss) | 98,502 | 190,444 |
| Change in net unrealized appreciation (depreciation) | 1,161,284 | 335,899 |
| Net increase (decrease) in net assets resulting from operations | 1,635,190 | 843,886 |
| Distributions to shareholders | (594,132) | (481,427) |
| Share transactions - net increase (decrease) | 17,722,111 | 6,828,271 |
| Total increase (decrease) in net assets | 18,763,169 | 7,190,730 |
| Net Assets | ||
| Beginning of period | 21,144,891 | 13,954,161 |
| End of period | $39,908,060 | $21,144,891 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD Income Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $58.52 | $57.61 | $61.22 | $58.62 | $59.28 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .950 | 1.164 | 1.013 | .923 | .920 |
| Net realized and unrealized gain (loss) | 3.181 | 1.632 | .513 | 2.703 | .317 |
| Total from investment operations | 4.131 | 2.796 | 1.526 | 3.626 | 1.237 |
| Distributions from net investment income | (1.020) | (1.163) | (.986) | (.847) | (.914) |
| Distributions from net realized gain | (.521) | (.723) | (4.150) | (.179) | (.983) |
| Total distributions | (1.541) | (1.886) | (5.136) | (1.026) | (1.897) |
| Net asset value, end of period | $61.11 | $58.52 | $57.61 | $61.22 | $58.62 |
| Total ReturnB | 7.19% | 5.03% | 2.61% | 6.27% | 2.24% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .46% | .46% | .47% | .08% | - %E |
| Expenses net of fee waivers, if any | .46% | .46% | .47% | .08% | -% |
| Expenses net of all reductions | .46% | .46% | .46% | .08% | -% |
| Net investment income (loss) | 1.62% | 2.04% | 1.74% | 1.56% | 1.62% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $39,908 | $21,145 | $13,457 | $9,783 | $8,756 |
| Portfolio turnover rateD | 42%F | 38% | 46% | 128% | 49% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
F Portfolio turnover rate does not include the assets acquired in the merger.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 35.8 |
| Fidelity Series Government Money Market Fund 0.23% | 16.1 |
| Fidelity Series Inflation-Protected Bond Index Fund | 10.7 |
| Fidelity Series Emerging Markets Opportunities Fund | 7.2 |
| Fidelity Series Short-Term Credit Fund | 4.1 |
| Fidelity Series Commodity Strategy Fund | 2.5 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 2.3 |
| Fidelity Series Overseas Fund | 2.1 |
| Fidelity Series International Growth Fund | 2.1 |
| Fidelity Series International Value Fund | 2.0 |
| 84.9 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 13.5% | |
| International Equity Funds | 15.5% | |
| Bond Funds | 50.8% | |
| Short-Term Funds | 20.2% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2010 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 13.5% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 4,835 | $49,369 | |
| Fidelity Series Blue Chip Growth Fund (a) | 4,480 | 86,241 | |
| Fidelity Series Commodity Strategy Fund (a) | 68,436 | 277,850 | |
| Fidelity Series Growth Company Fund (a) | 8,243 | 197,907 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 13,127 | 200,705 | |
| Fidelity Series Large Cap Stock Fund (a) | 12,211 | 175,956 | |
| Fidelity Series Large Cap Value Index Fund (a) | 5,388 | 61,534 | |
| Fidelity Series Opportunistic Insights Fund (a) | 4,932 | 101,646 | |
| Fidelity Series Small Cap Discovery Fund (a) | 2,127 | 21,840 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 5,752 | 72,816 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 13,540 | 145,966 | |
| Fidelity Series Value Discovery Fund (a) | 9,198 | 110,836 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,449,573) | 1,502,666 | ||
| International Equity Funds - 15.5% | |||
| Fidelity Series Canada Fund (a) | 7,510 | 75,778 | |
| Fidelity Series Emerging Markets Fund (a) | 9,477 | 88,041 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 38,858 | 803,191 | |
| Fidelity Series International Growth Fund (a) | 12,717 | 228,396 | |
| Fidelity Series International Small Cap Fund (a) | 4,026 | 67,482 | |
| Fidelity Series International Value Fund (a) | 26,663 | 227,699 | |
| Fidelity Series Overseas Fund (a) | 21,054 | 228,853 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,586,312) | 1,719,440 | ||
| Bond Funds - 50.8% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 7,936 | 72,849 | |
| Fidelity Series Floating Rate High Income Fund (a) | 1,728 | 15,140 | |
| Fidelity Series High Income Fund (a) | 8,948 | 82,140 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 111,861 | 1,184,604 | |
| Fidelity Series International Credit Fund (a) | 363 | 3,776 | |
| Fidelity Series Investment Grade Bond Fund (a) | 322,482 | 3,979,425 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 23,764 | 256,889 | |
| Fidelity Series Real Estate Income Fund (a) | 4,564 | 45,370 | |
| TOTAL BOND FUNDS | |||
| (Cost $5,161,830) | 5,640,193 | ||
| Short-Term Funds - 20.2% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 1,785,497 | 1,785,497 | |
| Fidelity Series Short-Term Credit Fund (a) | 44,524 | 456,820 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $2,229,781) | 2,242,317 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $10,427,496) | 11,104,616 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 108 | ||
| NET ASSETS - 100% | $11,104,724 |
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 | $33,013 | $44,756 | $7,115 | $(7,735) | $7,764 | $49,369 |
| Fidelity Series Blue Chip Growth Fund | 105,808 | 56,969 | 94,525 | 11,660 | 5,262 | 12,727 | 86,241 |
| Fidelity Series Canada Fund | 40,326 | 72,173 | 32,132 | 1,039 | (3,985) | (604) | 75,778 |
| Fidelity Series Commodity Strategy Fund | 368,109 | 204,681 | 224,457 | 5,839 | (36,873) | (33,610) | 277,850 |
| Fidelity Series Emerging Markets Debt Fund | 75,757 | 30,094 | 28,637 | 4,131 | (1,782) | (2,583) | 72,849 |
| Fidelity Series Emerging Markets Fund | 52,773 | 57,299 | 24,244 | 1,544 | (1,270) | 3,483 | 88,041 |
| Fidelity Series Emerging Markets Opportunities Fund | 469,244 | 487,296 | 234,012 | 15,475 | (4,150) | 84,813 | 803,191 |
| Fidelity Series Floating Rate High Income Fund | 15,802 | 5,355 | 4,863 | 856 | (282) | (872) | 15,140 |
| Fidelity Series Government Money Market Fund 0.23% | 1,574,869 | 1,131,124 | 920,496 | 21,756 | -- | -- | 1,785,497 |
| Fidelity Series Growth Company Fund | 212,368 | 131,295 | 203,599 | 21,394 | 10,937 | 46,906 | 197,907 |
| Fidelity Series High Income Fund | 79,510 | 30,223 | 24,309 | 5,094 | (1,188) | (2,096) | 82,140 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,122,159 | 457,251 | 458,005 | 16,618 | 3,059 | 60,140 | 1,184,604 |
| Fidelity Series International Credit Fund | 3,500 | 221 | -- | 221 | -- | 55 | 3,776 |
| Fidelity Series International Growth Fund | 367,433 | 118,578 | 278,026 | 13,310 | 6,286 | 14,125 | 228,396 |
| Fidelity Series International Small Cap Fund | 80,402 | 35,560 | 51,643 | 4,013 | (1,433) | 4,596 | 67,482 |
| Fidelity Series International Value Fund | 345,766 | 141,790 | 223,806 | 14,771 | (27,981) | (8,070) | 227,699 |
| Fidelity Series Intrinsic Opportunities Fund | 259,156 | 175,492 | 216,273 | 13,168 | (14,339) | (3,331) | 200,705 |
| Fidelity Series Investment Grade Bond Fund | 3,596,304 | 1,499,846 | 1,408,240 | 114,473 | 12,791 | 278,724 | 3,979,425 |
| Fidelity Series Large Cap Stock Fund | 227,419 | 130,362 | 171,241 | 12,570 | (6,442) | (4,142) | 175,956 |
| Fidelity Series Large Cap Value Index Fund | 65,384 | 43,203 | 39,439 | 4,137 | (871) | (6,743) | 61,534 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 419,621 | 135,326 | 352,343 | 31,763 | 38,987 | 15,298 | 256,889 |
| Fidelity Series Opportunistic Insights Fund | 116,888 | 70,143 | 94,042 | 11,922 | (86) | 8,743 | 101,646 |
| Fidelity Series Overseas Fund | 20,210 | 315,770 | 122,570 | 640 | (6,987) | 22,430 | 228,853 |
| Fidelity Series Real Estate Income Fund | 50,288 | 17,263 | 15,249 | 3,162 | (1,678) | (5,254) | 45,370 |
| Fidelity Series Short-Term Credit Fund | 393,798 | 129,451 | 75,828 | 11,146 | (387) | 9,786 | 456,820 |
| Fidelity Series Small Cap Discovery Fund | 31,754 | 16,702 | 24,251 | 1,324 | (1,754) | (611) | 21,840 |
| Fidelity Series Small Cap Opportunities Fund | 95,991 | 50,271 | 64,772 | 6,243 | (2,653) | (6,021) | 72,816 |
| Fidelity Series Stock Selector Large Cap Value Fund | 175,565 | 106,669 | 115,596 | 11,058 | (7,491) | (13,181) | 145,966 |
| Fidelity Series Value Discovery Fund | 125,489 | 78,751 | 85,263 | 5,792 | (3,581) | (4,560) | 110,836 |
| $10,552,776 | $5,762,171 | $5,632,617 | $372,234 | $(55,626) | $477,912 | $11,104,616 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $1,502,666 | $1,502,666 | $-- | $-- |
| International Equity Funds | 1,719,440 | 1,719,440 | -- | -- |
| Bond Funds | 5,640,193 | 5,640,193 | -- | -- |
| Short-Term Funds | 2,242,317 | 2,242,317 | -- | -- |
| Total Investments in Securities: | $11,104,616 | $11,104,616 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2010 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $10,427,496) | $11,104,616 | |
| Total Investment in Securities (cost $10,427,496) | $11,104,616 | |
| Cash | 32 | |
| Receivable for investments sold | 117,469 | |
| Total assets | 11,222,117 | |
| Liabilities | ||
| Payable for investments purchased | $112,732 | |
| Accrued management fee | 4,661 | |
| Total liabilities | 117,393 | |
| Net Assets | $11,104,724 | |
| Net Assets consist of: | ||
| Paid in capital | $10,457,417 | |
| Total accumulated earnings (loss) | 647,307 | |
| Net Assets | $11,104,724 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($11,104,724 ÷ 199,174.00 shares) | $55.75 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $241,506 | |
| Expenses | ||
| Management fee | $56,850 | |
| Independent trustees' fees and expenses | 39 | |
| Total expenses | 56,889 | |
| Net investment income (loss) | 184,617 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | (55,626) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 130,728 | |
| Total net realized gain (loss) | 75,102 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 477,912 | |
| Total change in net unrealized appreciation (depreciation) | 477,912 | |
| Net gain (loss) | 553,014 | |
| Net increase (decrease) in net assets resulting from operations | $737,631 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $184,617 | $159,818 |
| Net realized gain (loss) | 75,102 | 157,769 |
| Change in net unrealized appreciation (depreciation) | 477,912 | 101,490 |
| Net increase (decrease) in net assets resulting from operations | 737,631 | 419,077 |
| Distributions to shareholders | (350,327) | (320,422) |
| Share transactions - net increase (decrease) | 169,379 | 3,158,286 |
| Total increase (decrease) in net assets | 556,683 | 3,256,941 |
| Net Assets | ||
| Beginning of period | 10,548,041 | 7,291,100 |
| End of period | $11,104,724 | $10,548,041 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2010 Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $53.53 | $53.40 | $60.82 | $57.20 | $58.53 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .888 | 1.026 | .877 | .906 | .897 |
| Net realized and unrealized gain (loss) | 3.009 | 1.329 | 1.285 | 4.242 | .048 |
| Total from investment operations | 3.897 | 2.355 | 2.162 | 5.148 | .945 |
| Distributions from net investment income | (.908) | (1.028) | (.850) | (.848) | (.893) |
| Distributions from net realized gain | (.769) | (1.197) | (8.732) | (.680) | (1.382) |
| Total distributions | (1.677) | (2.225) | (9.582) | (1.528) | (2.275) |
| Net asset value, end of period | $55.75 | $53.53 | $53.40 | $60.82 | $57.20 |
| Total ReturnB | 7.44% | 4.66% | 3.98% | 9.20% | 1.82% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .51% | .52% | .53% | .08% | - %E |
| Expenses net of fee waivers, if any | .51% | .52% | .53% | .08% | -% |
| Expenses net of all reductions | .51% | .52% | .53% | .08% | -% |
| Net investment income (loss) | 1.66% | 1.97% | 1.62% | 1.56% | 1.62% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $11,105 | $10,548 | $6,867 | $5,933 | $6,745 |
| Portfolio turnover rateD | 51% | 32% | 44% | 128% | 24% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 32.3 |
| Fidelity Series Government Money Market Fund 0.23% | 13.1 |
| Fidelity Series Inflation-Protected Bond Index Fund | 9.2 |
| Fidelity Series Emerging Markets Opportunities Fund | 8.2 |
| Fidelity Series Short-Term Credit Fund | 3.0 |
| Fidelity Series Overseas Fund | 2.8 |
| Fidelity Series International Growth Fund | 2.8 |
| Fidelity Series International Value Fund | 2.7 |
| Fidelity Series Intrinsic Opportunities Fund | 2.7 |
| Fidelity Series Growth Company Fund | 2.7 |
| 79.5 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 19.0% | |
| International Equity Funds | 19.1% | |
| Bond Funds | 45.8% | |
| Short-Term Funds | 16.1% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2015 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 19.0% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 14,058 | $143,535 | |
| Fidelity Series Blue Chip Growth Fund (a) | 13,026 | 250,751 | |
| Fidelity Series Commodity Strategy Fund (a) | 132,865 | 539,433 | |
| Fidelity Series Growth Company Fund (a) | 23,966 | 575,424 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 38,168 | 583,593 | |
| Fidelity Series Large Cap Stock Fund (a) | 35,503 | 511,594 | |
| Fidelity Series Large Cap Value Index Fund (a) | 15,666 | 178,909 | |
| Fidelity Series Opportunistic Insights Fund (a) | 14,339 | 295,536 | |
| Fidelity Series Small Cap Discovery Fund (a) | 6,184 | 63,508 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 16,723 | 211,714 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 39,368 | 424,385 | |
| Fidelity Series Value Discovery Fund (a) | 26,744 | 322,262 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $3,934,914) | 4,100,644 | ||
| International Equity Funds - 19.1% | |||
| Fidelity Series Canada Fund (a) | 19,596 | 197,722 | |
| Fidelity Series Emerging Markets Fund (a) | 20,890 | 194,066 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 85,593 | 1,769,215 | |
| Fidelity Series International Growth Fund (a) | 33,185 | 596,006 | |
| Fidelity Series International Small Cap Fund (a) | 10,506 | 176,079 | |
| Fidelity Series International Value Fund (a) | 69,572 | 594,145 | |
| Fidelity Series Overseas Fund (a) | 54,938 | 597,175 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $3,816,428) | 4,124,408 | ||
| Bond Funds - 45.8% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 15,101 | 138,625 | |
| Fidelity Series Floating Rate High Income Fund (a) | 3,372 | 29,542 | |
| Fidelity Series High Income Fund (a) | 16,903 | 155,170 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 187,745 | 1,988,218 | |
| Fidelity Series International Credit Fund (a) | 481 | 5,002 | |
| Fidelity Series Investment Grade Bond Fund (a) | 563,239 | 6,950,369 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 46,135 | 498,715 | |
| Fidelity Series Real Estate Income Fund (a) | 9,088 | 90,338 | |
| TOTAL BOND FUNDS | |||
| (Cost $8,989,704) | 9,855,979 | ||
| Short-Term Funds - 16.1% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 2,816,985 | 2,816,985 | |
| Fidelity Series Short-Term Credit Fund (a) | 63,120 | 647,615 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $3,444,754) | 3,464,600 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $20,185,800) | 21,545,631 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 90 | ||
| NET ASSETS - 100% | $21,545,721 |
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 | $73,414 | $106,345 | $18,698 | $(19,896) | $22,876 | $143,535 |
| Fidelity Series Blue Chip Growth Fund | 301,123 | 126,962 | 229,863 | 33,496 | 9,743 | 42,786 | 250,751 |
| Fidelity Series Canada Fund | 102,025 | 147,058 | 45,090 | 2,409 | (5,792) | (479) | 197,722 |
| Fidelity Series Commodity Strategy Fund | 731,122 | 299,779 | 372,165 | 11,280 | (61,661) | (57,642) | 539,433 |
| Fidelity Series Emerging Markets Debt Fund | 150,896 | 42,302 | 46,954 | 7,786 | (2,103) | (5,516) | 138,625 |
| Fidelity Series Emerging Markets Fund | 122,371 | 109,894 | 45,361 | 3,209 | (1,404) | 8,566 | 194,066 |
| Fidelity Series Emerging Markets Opportunities Fund | 1,080,413 | 900,396 | 405,542 | 32,178 | 1,666 | 192,282 | 1,769,215 |
| Fidelity Series Floating Rate High Income Fund | 31,313 | 7,955 | 7,924 | 1,611 | (199) | (1,603) | 29,542 |
| Fidelity Series Government Money Market Fund 0.23% | 2,542,683 | 1,656,768 | 1,382,466 | 32,597 | -- | -- | 2,816,985 |
| Fidelity Series Growth Company Fund | 605,182 | 277,450 | 480,244 | 55,589 | 21,955 | 151,081 | 575,424 |
| Fidelity Series High Income Fund | 158,549 | 41,289 | 39,689 | 9,549 | (770) | (4,209) | 155,170 |
| Fidelity Series Inflation-Protected Bond Index Fund | 1,766,627 | 746,111 | 625,650 | 26,127 | 2,388 | 98,742 | 1,988,218 |
| Fidelity Series International Credit Fund | 4,637 | 293 | -- | 293 | -- | 72 | 5,002 |
| Fidelity Series International Growth Fund | 927,956 | 239,847 | 636,653 | 30,073 | 16,254 | 48,602 | 596,006 |
| Fidelity Series International Small Cap Fund | 201,746 | 58,636 | 92,656 | 9,098 | (6,282) | 14,635 | 176,079 |
| Fidelity Series International Value Fund | 874,808 | 280,284 | 492,121 | 33,380 | (57,578) | (11,248) | 594,145 |
| Fidelity Series Intrinsic Opportunities Fund | 738,709 | 386,852 | 500,954 | 37,584 | (37,186) | (3,828) | 583,593 |
| Fidelity Series Investment Grade Bond Fund | 6,375,720 | 2,420,728 | 2,341,867 | 192,541 | 24,911 | 470,877 | 6,950,369 |
| Fidelity Series Large Cap Stock Fund | 648,169 | 277,609 | 393,967 | 34,546 | (12,363) | (7,854) | 511,594 |
| Fidelity Series Large Cap Value Index Fund | 185,763 | 104,650 | 93,064 | 10,710 | (1,096) | (17,344) | 178,909 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 854,670 | 238,934 | 697,066 | 58,033 | 81,408 | 20,769 | 498,715 |
| Fidelity Series Opportunistic Insights Fund | 332,773 | 154,762 | 221,208 | 30,762 | 919 | 28,290 | 295,536 |
| Fidelity Series Overseas Fund | 66,584 | 687,353 | 209,186 | 1,581 | (11,859) | 64,283 | 597,175 |
| Fidelity Series Real Estate Income Fund | 100,040 | 25,913 | 24,880 | 6,023 | (518) | (10,217) | 90,338 |
| Fidelity Series Short-Term Credit Fund | 635,788 | 165,687 | 168,489 | 16,319 | 259 | 14,370 | 647,615 |
| Fidelity Series Small Cap Discovery Fund | 89,762 | 38,594 | 59,521 | 3,541 | (6,867) | 1,540 | 63,508 |
| Fidelity Series Small Cap Opportunities Fund | 272,188 | 116,199 | 154,431 | 17,943 | (11,082) | (11,160) | 211,714 |
| Fidelity Series Stock Selector Large Cap Value Fund | 500,196 | 229,471 | 255,305 | 28,883 | (9,551) | (40,426) | 424,385 |
| Fidelity Series Value Discovery Fund | 357,279 | 175,898 | 193,249 | 15,081 | (4,448) | (13,218) | 322,262 |
| $20,932,578 | $10,031,088 | $10,321,910 | $760,920 | $(91,152) | $995,027 | $21,545,631 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $4,100,644 | $4,100,644 | $-- | $-- |
| International Equity Funds | 4,124,408 | 4,124,408 | -- | -- |
| Bond Funds | 9,855,979 | 9,855,979 | -- | -- |
| Short-Term Funds | 3,464,600 | 3,464,600 | -- | -- |
| Total Investments in Securities: | $21,545,631 | $21,545,631 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2015 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $20,185,800) | $21,545,631 | |
| Total Investment in Securities (cost $20,185,800) | $21,545,631 | |
| Cash | 3 | |
| Receivable for investments sold | 233,516 | |
| Receivable for fund shares sold | 60,712 | |
| Total assets | 21,839,862 | |
| Liabilities | ||
| Payable for investments purchased | $284,414 | |
| Accrued management fee | 9,727 | |
| Total liabilities | 294,141 | |
| Net Assets | $21,545,721 | |
| Net Assets consist of: | ||
| Paid in capital | $20,218,038 | |
| Total accumulated earnings (loss) | 1,327,683 | |
| Net Assets | $21,545,721 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($21,545,721 ÷ 348,660.00 shares) | $61.80 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $449,673 | |
| Expenses | ||
| Management fee | $115,058 | |
| Independent trustees' fees and expenses | 74 | |
| Total expenses | 115,132 | |
| Net investment income (loss) | 334,541 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | (91,152) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 311,247 | |
| Total net realized gain (loss) | 220,095 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 995,027 | |
| Total change in net unrealized appreciation (depreciation) | 995,027 | |
| Net gain (loss) | 1,215,122 | |
| Net increase (decrease) in net assets resulting from operations | $1,549,663 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $334,541 | $329,918 |
| Net realized gain (loss) | 220,095 | 378,059 |
| Change in net unrealized appreciation (depreciation) | 995,027 | 119,560 |
| Net increase (decrease) in net assets resulting from operations | 1,549,663 | 827,537 |
| Distributions to shareholders | (743,628) | (614,135) |
| Share transactions - net increase (decrease) | (182,768) | 6,026,190 |
| Total increase (decrease) in net assets | 623,267 | 6,239,592 |
| Net Assets | ||
| Beginning of period | 20,922,454 | 14,682,862 |
| End of period | $21,545,721 | $20,922,454 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2015 Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $59.41 | $59.14 | $64.98 | $60.62 | $62.01 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .947 | 1.093 | .869 | .950 | .938 |
| Net realized and unrealized gain (loss) | 3.526 | 1.336 | 2.076 | 5.023 | (.057) |
| Total from investment operations | 4.473 | 2.429 | 2.945 | 5.973 | .881 |
| Distributions from net investment income | (.987) | (1.092) | (.877) | (.906) | (.934) |
| Distributions from net realized gain | (1.096) | (1.067) | (7.908) | (.707) | (1.337) |
| Total distributions | (2.083) | (2.159) | (8.785) | (1.613) | (2.271) |
| Net asset value, end of period | $61.80 | $59.41 | $59.14 | $64.98 | $60.62 |
| Total ReturnB | 7.71% | 4.36% | 5.00% | 10.08% | 1.62% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .55% | .57% | .58% | .09% | - %E |
| Expenses net of fee waivers, if any | .55% | .57% | .58% | .09% | -% |
| Expenses net of all reductions | .55% | .57% | .57% | .09% | -% |
| Net investment income (loss) | 1.60% | 1.89% | 1.47% | 1.53% | 1.61% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $21,546 | $20,922 | $13,754 | $7,287 | $9,061 |
| Portfolio turnover rateD | 48% | 28% | 44% | 115% | 27% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 28.5 |
| Fidelity Series Government Money Market Fund 0.23% | 9.7 |
| Fidelity Series Emerging Markets Opportunities Fund | 9.2 |
| Fidelity Series Inflation-Protected Bond Index Fund | 8.0 |
| Fidelity Series Intrinsic Opportunities Fund | 3.6 |
| Fidelity Series Growth Company Fund | 3.6 |
| Fidelity Series Overseas Fund | 3.5 |
| Fidelity Series International Growth Fund | 3.5 |
| Fidelity Series International Value Fund | 3.5 |
| Fidelity Series Large Cap Stock Fund | 3.2 |
| 76.3 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 24.6% | |
| International Equity Funds | 22.8% | |
| Bond Funds | 40.7% | |
| Short-Term Funds | 11.9% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2020 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 24.6% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 42,998 | $439,010 | |
| Fidelity Series Blue Chip Growth Fund (a) | 39,832 | 766,761 | |
| Fidelity Series Commodity Strategy Fund (a) | 305,206 | 1,239,137 | |
| Fidelity Series Growth Company Fund (a) | 73,274 | 1,759,299 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 116,700 | 1,784,339 | |
| Fidelity Series Large Cap Stock Fund (a) | 108,546 | 1,564,150 | |
| Fidelity Series Large Cap Value Index Fund (a) | 47,910 | 547,133 | |
| Fidelity Series Opportunistic Insights Fund (a) | 43,846 | 903,672 | |
| Fidelity Series Small Cap Discovery Fund (a) | 18,927 | 194,377 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 51,140 | 647,437 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 120,366 | 1,297,543 | |
| Fidelity Series Value Discovery Fund (a) | 81,774 | 985,378 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $11,784,282) | 12,128,236 | ||
| International Equity Funds - 22.8% | |||
| Fidelity Series Canada Fund (a) | 56,422 | 569,293 | |
| Fidelity Series Emerging Markets Fund (a) | 53,656 | 498,467 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 219,668 | 4,540,532 | |
| Fidelity Series International Growth Fund (a) | 95,492 | 1,715,032 | |
| Fidelity Series International Small Cap Fund (a) | 30,254 | 507,051 | |
| Fidelity Series International Value Fund (a) | 200,214 | 1,709,824 | |
| Fidelity Series Overseas Fund (a) | 158,087 | 1,718,410 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $10,620,952) | 11,258,609 | ||
| Bond Funds - 40.7% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 33,977 | 311,907 | |
| Fidelity Series Floating Rate High Income Fund (a) | 7,699 | 67,440 | |
| Fidelity Series High Income Fund (a) | 38,437 | 352,851 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 371,972 | 3,939,180 | |
| Fidelity Series International Credit Fund (a) | 1,113 | 11,561 | |
| Fidelity Series Investment Grade Bond Fund (a) | 1,139,361 | 14,059,713 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 105,953 | 1,145,352 | |
| Fidelity Series Real Estate Income Fund (a) | 20,485 | 203,622 | |
| TOTAL BOND FUNDS | |||
| (Cost $18,360,462) | 20,091,626 | ||
| Short-Term Funds - 11.9% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 4,814,731 | 4,814,731 | |
| Fidelity Series Short-Term Credit Fund (a) | 104,555 | 1,072,739 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $5,854,763) | 5,887,470 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $46,620,459) | 49,365,941 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (924) | ||
| NET ASSETS - 100% | $49,365,017 |
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 | $231,647 | $256,658 | $58,989 | $(20,227) | $20,378 | $439,010 |
| Fidelity Series Blue Chip Growth Fund | 806,769 | 389,351 | 594,035 | 89,688 | 22,847 | 141,829 | 766,761 |
| Fidelity Series Canada Fund | 255,287 | 465,167 | 122,086 | 6,952 | (17,203) | (11,872) | 569,293 |
| Fidelity Series Commodity Strategy Fund | 1,504,782 | 823,582 | 800,798 | 24,447 | (161,067) | (127,362) | 1,239,137 |
| Fidelity Series Emerging Markets Debt Fund | 308,903 | 105,745 | 82,964 | 17,280 | (4,563) | (15,214) | 311,907 |
| Fidelity Series Emerging Markets Fund | 288,808 | 297,632 | 98,879 | 8,500 | (6,315) | 17,221 | 498,467 |
| Fidelity Series Emerging Markets Opportunities Fund | 2,556,491 | 2,462,130 | 911,286 | 85,217 | (22,135) | 455,332 | 4,540,532 |
| Fidelity Series Floating Rate High Income Fund | 64,344 | 21,595 | 13,685 | 3,598 | (660) | (4,154) | 67,440 |
| Fidelity Series Government Money Market Fund 0.23% | 4,018,218 | 3,613,716 | 2,817,203 | 52,606 | -- | -- | 4,814,731 |
| Fidelity Series Growth Company Fund | 1,623,646 | 831,179 | 1,204,250 | 169,260 | 38,589 | 470,135 | 1,759,299 |
| Fidelity Series High Income Fund | 325,224 | 111,249 | 68,667 | 21,219 | (3,492) | (11,463) | 352,851 |
| Fidelity Series Inflation-Protected Bond Index Fund | 2,749,667 | 2,142,494 | 1,146,787 | 51,029 | 52 | 193,754 | 3,939,180 |
| Fidelity Series International Credit Fund | 10,717 | 677 | -- | 677 | -- | 167 | 11,561 |
| Fidelity Series International Growth Fund | 2,303,548 | 763,853 | 1,498,329 | 86,760 | (7,877) | 153,837 | 1,715,032 |
| Fidelity Series International Small Cap Fund | 490,070 | 256,705 | 257,153 | 26,153 | (11,958) | 29,387 | 507,051 |
| Fidelity Series International Value Fund | 2,189,045 | 877,418 | 1,109,704 | 96,287 | (136,183) | (110,752) | 1,709,824 |
| Fidelity Series Intrinsic Opportunities Fund | 1,982,230 | 1,159,018 | 1,205,674 | 102,402 | (99,937) | (51,298) | 1,784,339 |
| Fidelity Series Investment Grade Bond Fund | 11,465,246 | 6,006,704 | 4,361,822 | 377,661 | 853 | 948,732 | 14,059,713 |
| Fidelity Series Large Cap Stock Fund | 1,738,995 | 871,196 | 955,860 | 96,342 | (54,360) | (35,821) | 1,564,150 |
| Fidelity Series Large Cap Value Index Fund | 496,851 | 332,339 | 215,964 | 32,806 | (10,642) | (55,451) | 547,133 |
| Fidelity Series Long-Term Treasury Bond Index Fund | 1,807,062 | 643,369 | 1,533,626 | 133,156 | 173,108 | 55,439 | 1,145,352 |
| Fidelity Series Opportunistic Insights Fund | 891,770 | 471,416 | 541,636 | 94,123 | (6,386) | 88,508 | 903,672 |
| Fidelity Series Overseas Fund | 209,456 | 1,919,781 | 531,782 | 4,175 | (34,816) | 155,771 | 1,718,410 |
| Fidelity Series Real Estate Income Fund | 205,864 | 69,566 | 42,958 | 13,147 | (3,615) | (25,235) | 203,622 |
| Fidelity Series Short-Term Credit Fund | 1,004,706 | 325,295 | 278,605 | 26,466 | (1,166) | 22,509 | 1,072,739 |
| Fidelity Series Small Cap Discovery Fund | 238,925 | 129,116 | 151,729 | 10,775 | (13,978) | (7,957) | 194,377 |
| Fidelity Series Small Cap Opportunities Fund | 727,677 | 366,580 | 371,613 | 47,859 | (21,025) | (54,182) | 647,437 |
| Fidelity Series Stock Selector Large Cap Value Fund | 1,341,549 | 732,103 | 593,623 | 89,899 | (38,103) | (144,383) | 1,297,543 |
| Fidelity Series Value Discovery Fund | 957,599 | 554,295 | 452,867 | 46,699 | (22,733) | (50,916) | 985,378 |
| $43,027,319 | $26,974,918 | $22,220,243 | $1,874,172 | $(462,992) | $2,046,939 | $49,365,941 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $12,128,236 | $12,128,236 | $-- | $-- |
| International Equity Funds | 11,258,609 | 11,258,609 | -- | -- |
| Bond Funds | 20,091,626 | 20,091,626 | -- | -- |
| Short-Term Funds | 5,887,470 | 5,887,470 | -- | -- |
| Total Investments in Securities: | $49,365,941 | $49,365,941 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2020 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $46,620,459) | $49,365,941 | |
| Total Investment in Securities (cost $46,620,459) | $49,365,941 | |
| Cash | 188 | |
| Receivable for investments sold | 616,123 | |
| Receivable for fund shares sold | 10,100 | |
| Total assets | 49,992,352 | |
| Liabilities | ||
| Payable for investments purchased | $602,281 | |
| Payable for fund shares redeemed | 516 | |
| Accrued management fee | 24,538 | |
| Total liabilities | 627,335 | |
| Net Assets | $49,365,017 | |
| Net Assets consist of: | ||
| Paid in capital | $46,903,871 | |
| Total accumulated earnings (loss) | 2,461,146 | |
| Net Assets | $49,365,017 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($49,365,017 ÷ 793,846.00 shares) | $62.18 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2020 | ||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $1,012,930 | |
| Expenses | ||
| Management fee | $280,636 | |
| Independent trustees' fees and expenses | 162 | |
| Total expenses before reductions | 280,798 | |
| Expense reductions | (2) | |
| Total expenses after reductions | 280,796 | |
| Net investment income (loss) | 732,134 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 29 | |
| Affiliated issuers | (462,992) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 861,242 | |
| Total net realized gain (loss) | 398,279 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 2,046,939 | |
| Total change in net unrealized appreciation (depreciation) | 2,046,939 | |
| Net gain (loss) | 2,445,218 | |
| Net increase (decrease) in net assets resulting from operations | $3,177,352 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2020 | Year ended July 31, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $732,134 | $608,831 |
| Net realized gain (loss) | 398,279 | 810,909 |
| Change in net unrealized appreciation (depreciation) | 2,046,939 | 312,645 |
| Net increase (decrease) in net assets resulting from operations | 3,177,352 | 1,732,385 |
| Distributions to shareholders | (1,766,670) | (1,151,851) |
| Share transactions - net increase (decrease) | 4,948,918 | 14,825,901 |
| Total increase (decrease) in net assets | 6,359,600 | 15,406,435 |
| Net Assets | ||
| Beginning of period | 43,005,417 | 27,598,982 |
| End of period | $49,365,017 | $43,005,417 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2020 Fund
| Years ended July 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $59.88 | $59.80 | $64.06 | $59.21 | $60.89 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .930 | 1.031 | .813 | .924 | .928 |
| Net realized and unrealized gain (loss) | 3.672 | 1.221 | 2.708 | 5.363 | (.202) |
| Total from investment operations | 4.602 | 2.252 | 3.521 | 6.287 | .726 |
| Distributions from net investment income | (.966) | (1.061) | (.810) | (.882) | (.915) |
| Distributions from net realized gain | (1.336) | (1.111) | (6.971) | (.555) | (1.491) |
| Total distributions | (2.302) | (2.172) | (7.781) | (1.437) | (2.406) |
| Net asset value, end of period | $62.18 | $59.88 | $59.80 | $64.06 | $59.21 |
| Total ReturnB | 7.88% | 4.04% | 6.01% | 10.83% | 1.41% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | .60% | .61% | .62% | .10% | - %E |
| Expenses net of fee waivers, if any | .60% | .61% | .62% | .10% | -% |
| Expenses net of all reductions | .60% | .61% | .62% | .10% | -% |
| Net investment income (loss) | 1.57% | 1.78% | 1.37% | 1.52% | 1.63% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $49,365 | $43,005 | $26,667 | $7,449 | $8,744 |
| Portfolio turnover rateD | 48% | 29% | 29% | 118% | 29% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C 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.
D Amounts do not include the activity of Underlying Funds.
E Amount represents less than .005%.
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 July 31, 2020
| % of fund's net assets | |
| Fidelity Series Investment Grade Bond Fund | 25.2 |
| Fidelity Series Emerging Markets Opportunities Fund | 10.0 |
| Fidelity Series Government Money Market Fund 0.23% | 7.4 |
| Fidelity Series Inflation-Protected Bond Index Fund | 6.9 |
| Fidelity Series Intrinsic Opportunities Fund | 4.4 |
| Fidelity Series Growth Company Fund | 4.3 |
| Fidelity Series Overseas Fund | 4.1 |
| Fidelity Series International Growth Fund | 4.1 |
| Fidelity Series International Value Fund | 4.1 |
| Fidelity Series Large Cap Stock Fund | 3.9 |
| 74.4 |
Asset Allocation (% of fund's net assets)
| Period end | ||
| Domestic Equity Funds | 29.3% | |
| International Equity Funds | 25.9% | |
| Bond Funds | 36.3% | |
| Short-Term Funds | 8.5% | |
Domestic Equity Funds category includes Fidelity Series Commodity Strategy Fund which invests in commodity-related investments.
Fidelity Simplicity RMD 2025 Fund℠
Schedule of Investments July 31, 2020
Showing Percentage of Net Assets
| Domestic Equity Funds - 29.3% | |||
| Shares | Value | ||
| Fidelity Series All-Sector Equity Fund (a) | 5,996 | $61,221 | |
| Fidelity Series Blue Chip Growth Fund (a) | 5,556 | 106,955 | |
| Fidelity Series Commodity Strategy Fund (a) | 35,034 | 142,236 | |
| Fidelity Series Growth Company Fund (a) | 10,223 | 245,453 | |
| Fidelity Series Intrinsic Opportunities Fund (a) | 16,282 | 248,953 | |
| Fidelity Series Large Cap Stock Fund (a) | 15,143 | 218,217 | |
| Fidelity Series Large Cap Value Index Fund (a) | 6,682 | 76,307 | |
| Fidelity Series Opportunistic Insights Fund (a) | 6,116 | 126,057 | |
| Fidelity Series Small Cap Discovery Fund (a) | 2,638 | 27,090 | |
| Fidelity Series Small Cap Opportunities Fund (a) | 7,133 | 90,305 | |
| Fidelity Series Stock Selector Large Cap Value Fund (a) | 16,792 | 181,013 | |
| Fidelity Series Value Discovery Fund (a) | 11,407 | 137,460 | |
| TOTAL DOMESTIC EQUITY FUNDS | |||
| (Cost $1,604,263) | 1,661,267 | ||
| International Equity Funds - 25.9% | |||
| Fidelity Series Canada Fund (a) | 7,613 | 76,813 | |
| Fidelity Series Emerging Markets Fund (a) | 6,739 | 62,604 | |
| Fidelity Series Emerging Markets Opportunities Fund (a) | 27,531 | 569,057 | |
| Fidelity Series International Growth Fund (a) | 12,893 | 231,563 | |
| Fidelity Series International Small Cap Fund (a) | 4,082 | 68,415 | |
| Fidelity Series International Value Fund (a) | 27,033 | 230,864 | |
| Fidelity Series Overseas Fund (a) | 21,345 | 232,016 | |
| TOTAL INTERNATIONAL EQUITY FUNDS | |||
| (Cost $1,395,551) | 1,471,332 | ||
| Bond Funds - 36.3% | |||
| Fidelity Series Emerging Markets Debt Fund (a) | 3,841 | 35,262 | |
| Fidelity Series Floating Rate High Income Fund (a) | 915 | 8,016 | |
| Fidelity Series High Income Fund (a) | 4,508 | 41,387 | |
| Fidelity Series Inflation-Protected Bond Index Fund (a) | 36,689 | 388,532 | |
| Fidelity Series International Credit Fund (a) | 271 | 2,814 | |
| Fidelity Series Investment Grade Bond Fund (a) | 116,024 | 1,431,741 | |
| Fidelity Series Long-Term Treasury Bond Index Fund (a) | 12,144 | 131,274 | |
| Fidelity Series Real Estate Income Fund (a) | 2,450 | 24,351 | |
| TOTAL BOND FUNDS | |||
| (Cost $1,973,031) | 2,063,377 | ||
| Short-Term Funds - 8.5% | |||
| Fidelity Series Government Money Market Fund 0.23% (a)(b) | 420,175 | 420,175 | |
| Fidelity Series Short-Term Credit Fund (a) | 5,866 | 60,183 | |
| TOTAL SHORT-TERM FUNDS | |||
| (Cost $479,300) | 480,358 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $5,452,145) | 5,676,334 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (136) | ||
| NET ASSETS - 100% | $5,676,198 |
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 | $-- | $75,949 | $16,148 | $4,294 | $(757) | $2,177 | $61,221 |
| Fidelity Series Blue Chip Growth Fund | -- | 128,180 | 44,016 | 2,889 | (513) | 23,304 | 106,955 |
| Fidelity Series Canada Fund | -- | 87,902 | 10,749 | 410 | (810) | 470 | 76,813 |
| Fidelity Series Commodity Strategy Fund | -- | 215,817 | 57,351 | 882 | (5,945) | (10,285) | 142,236 |
| Fidelity Series Corporate Bond Fund | -- | 54,300 | 54,350 | -- | 50 | -- | -- |
| Fidelity Series Emerging Markets Debt Fund | -- | 40,975 | 5,484 | 1,024 | (153) | (76) | 35,262 |
| Fidelity Series Emerging Markets Fund | -- | 66,684 | 7,154 | 480 | (401) | 3,475 | 62,604 |
| Fidelity Series Emerging Markets Opportunities Fund | -- | 588,902 | 67,131 | 4,809 | (1,981) | 49,267 | 569,057 |
| Fidelity Series Floating Rate High Income Fund | -- | 9,211 | 919 | 213 | (47) | (229) | 8,016 |
| Fidelity Series Government Bond Index Fund | -- | 75,400 | 75,330 | -- | (70) | -- | -- |
| Fidelity Series Government Money Market Fund 0.23% | -- | 592,839 | 172,664 | 1,727 | -- | -- | 420,175 |
| Fidelity Series Growth Company Fund | -- | 274,746 | 84,266 | 10,437 | (282) | 55,255 | 245,453 |
| Fidelity Series High Income Fund | -- | 46,366 | 4,579 | 1,268 | (227) | (173) | 41,387 |
| Fidelity Series Inflation-Protected Bond Index Fund | -- | 444,092 | 69,590 | 2,404 | 67 | 13,963 | 388,532 |
| Fidelity Series International Credit Fund | -- | 3,089 | 303 | 90 | (8) | 36 | 2,814 |
| Fidelity Series International Growth Fund | -- | 313,386 | 93,231 | 5,108 | (2,536) | 13,944 | 231,563 |
| Fidelity Series International Small Cap Fund | -- | 81,018 | 14,486 | 1,541 | (770) | 2,653 | 68,415 |
| Fidelity Series International Value Fund | -- | 316,198 | 65,878 | 5,668 | (8,226) | (11,230) | 230,864 |
| Fidelity Series Intrinsic Opportunities Fund | -- | 331,707 | 74,066 | 3,712 | (3,336) | (5,352) | 248,953 |
| Fidelity Series Investment Grade Bond Fund | -- | 1,644,036 | 277,479 | 20,364 | (210) | 65,394 | 1,431,741 |
| Fidelity Series Investment Grade Securitized Fund | -- | 53,800 | 53,748 | -- | (52) | -- | -- |
| Fidelity Series Large Cap Stock Fund | -- | 282,159 | 59,066 | 2,519 | (2,571) | (2,305) | 218,217 |
| Fidelity Series Large Cap Value Index Fund | -- | 94,816 | 13,821 | 2,083 | (737) | (3,951) | 76,307 |
| Fidelity Series Long-Term Treasury Bond Index Fund | -- | 192,867 | 74,566 | 7,317 | 41 | 12,932 | 131,274 |
| Fidelity Series Opportunistic Insights Fund | -- | 151,880 | 38,452 | 6,293 | (861) | 13,490 | 126,057 |
| Fidelity Series Overseas Fund | -- | 276,515 | 59,665 | 247 | (2,037) | 17,203 | 232,016 |
| Fidelity Series Real Estate Income Fund | -- | 28,937 | 2,872 | 641 | (211) | (1,503) | 24,351 |
| Fidelity Series Short-Term Credit Fund | -- | 68,290 | 9,166 | 1,038 | 1 | 1,058 | 60,183 |
| Fidelity Series Small Cap Discovery Fund | -- | 37,410 | 9,105 | 665 | (930) | (285) | 27,090 |
| Fidelity Series Small Cap Opportunities Fund | -- | 116,161 | 23,519 | 1,520 | (2,227) | (110) | 90,305 |
| Fidelity Series Stock Selector Large Cap Value Fund | -- | 228,346 | 33,867 | 6,154 | (2,108) | (11,358) | 181,013 |
| Fidelity Series Treasury Bill Index Fund | -- | 32,800 | 32,800 | -- | -- | -- | -- |
| Fidelity Series Value Discovery Fund | -- | 166,819 | 24,772 | 3,119 | (1,012) | (3,575) | 137,460 |
| $-- | $7,121,597 | $1,630,593 | $98,916 | $(38,859) | $224,189 | $5,676,334 |
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 July 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 |
| Investments in Securities: | ||||
| Domestic Equity Funds | $1,661,267 | $1,661,267 | $-- | $-- |
| International Equity Funds | 1,471,332 | 1,471,332 | -- | -- |
| Bond Funds | 2,063,377 | 2,063,377 | -- | -- |
| Short-Term Funds | 480,358 | 480,358 | -- | -- |
| Total Investments in Securities: | $5,676,334 | $5,676,334 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Simplicity RMD 2025 Fund℠
Financial Statements
Statement of Assets and Liabilities
| July 31, 2020 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: | ||
| Affiliated issuers (cost $5,452,145) | $5,676,334 | |
| Total Investment in Securities (cost $5,452,145) | $5,676,334 | |
| Receivable for investments sold | 60,458 | |
| Receivable for fund shares sold | 9,030 | |
| Total assets | 5,745,822 | |
| Liabilities | ||
| Payable for investments purchased | $66,656 | |
| Accrued management fee | 2,968 | |
| Total liabilities | 69,624 | |
| Net Assets | $5,676,198 | |
| Net Assets consist of: | ||
| Paid in capital | $5,453,062 | |
| Total accumulated earnings (loss) | 223,136 | |
| Net Assets | $5,676,198 | |
| Net Asset Value, offering price and redemption price per share ($5,676,198 ÷ 527,090 shares) | $10.77 |
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 July 31, 2020 |
||
| Investment Income | ||
| Dividends: | ||
| Affiliated issuers | $53,414 | |
| Income from Fidelity Central Funds | 177 | |
| Total income | 53,591 | |
| Expenses | ||
| Management fee | $18,519 | |
| Independent trustees' fees and expenses | 8 | |
| Total expenses | 18,527 | |
| Net investment income (loss) | 35,064 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Affiliated issuers | (38,787) | |
| Capital gain distributions from underlying funds: | ||
| Affiliated issuers | 45,502 | |
| Total net realized gain (loss) | 6,715 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Affiliated issuers | 224,189 | |
| Total change in net unrealized appreciation (depreciation) | 224,189 | |
| Net gain (loss) | 230,904 | |
| Net increase (decrease) in net assets resulting from operations | $265,968 |
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 July 31, 2020 |
|
| Increase (Decrease) in Net Assets | |
| Operations | |
| Net investment income (loss) | $35,064 |
| Net realized gain (loss) | 6,715 |
| Change in net unrealized appreciation (depreciation) | 224,189 |
| Net increase (decrease) in net assets resulting from operations | 265,968 |
| Distributions to shareholders | (42,833) |
| Share transactions | |
| Proceeds from sales of shares | 6,026,202 |
| Reinvestment of distributions | 42,481 |
| Cost of shares redeemed | (615,620) |
| Net increase (decrease) in net assets resulting from share transactions | 5,453,063 |
| Total increase (decrease) in net assets | 5,676,198 |
| Net Assets | |
| Beginning of period | – |
| End of period | $5,676,198 |
| Other Information | |
| Shares | |
| Sold | 584,677 |
| Issued in reinvestment of distributions | 4,053 |
| Redeemed | (61,640) |
| Net increase (decrease) | 527,090 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Simplicity RMD 2025 Fund
| Year ended July 31, | 2020 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .118 |
| Net realized and unrealized gain (loss) | .822 |
| Total from investment operations | .940 |
| Distributions from net investment income | (.134) |
| Distributions from net realized gain | (.036) |
| Total distributions | (.170) |
| Net asset value, end of period | $10.77 |
| Total ReturnC | 9.45% |
| Ratios to Average Net AssetsD,E,F | |
| Expenses before reductions | .64%G |
| Expenses net of fee waivers, if any | .64%G |
| Expenses net of all reductions | .64%G |
| Net investment income (loss) | 1.21%G |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $5,676 |
| Portfolio turnover rateF | 54%G |
A For the period August 16, 2019 (commencement of operations) to July 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 Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
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. 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.
F Amounts do not include the activity of Underlying Funds.
G Annualized
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2020
1. Organization.
Fidelity Simplicity RMD Income 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).
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 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, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, 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 – Investment 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 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 Fund's 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. As of July 31, 2020, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds 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 | $37,715,669 | $2,636,622 | $(435,979) | $2,200,643 |
| Fidelity Simplicity RMD 2010 Fund | 10,504,207 | 760,527 | (160,118) | 600,409 |
| Fidelity Simplicity RMD 2015 Fund | 20,354,453 | 1,606,438 | (415,260) | 1,191,178 |
| Fidelity Simplicity RMD 2020 Fund | 47,160,605 | 3,591,702 | (1,386,366) | 2,205,336 |
| Fidelity Simplicity RMD 2025 Fund | 5,491,415 | 286,905 | (101,986) | 184,919 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed ordinary income | Undistributed long-term capital gain | Net unrealized appreciation (depreciation) on securities and other investments | |
| Fidelity Simplicity RMD Income Fund | $17,109 | $39,197 | $2,200,643 |
| Fidelity Simplicity RMD 2010 Fund | 8,378 | 38,521 | 600,409 |
| Fidelity Simplicity RMD 2015 Fund | 12,643 | 123,861 | 1,191,178 |
| Fidelity Simplicity RMD 2020 Fund | 19,202 | 236,608 | 2,205,336 |
| Fidelity Simplicity RMD 2025 Fund | 6,215 | 32,003 | 184,919 |
Due to large subscriptions in the period, Fidelity Simplicity RMD 2025 Fund is subject to an annual limit on its use of some of its unrealized capital losses to offset capital gains in future periods. If those capital losses are realized and the limitation prevents the Fund from using any of those capital losses in a future period, those capital losses will be available to offset capital gains in subsequent periods.
The tax character of distributions paid was as follows:
| July 31, 2020 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Simplicity RMD Income Fund | $434,455 | $159,677 | $594,132 |
| Fidelity Simplicity RMD 2010 Fund | 213,600 | 136,727 | 350,327 |
| Fidelity Simplicity RMD 2015 Fund | 385,762 | 357,866 | 743,628 |
| Fidelity Simplicity RMD 2020 Fund | 839,048 | 927,622 | 1,766,670 |
| Fidelity Simplicity RMD 2025 Fund(a) | 38,218 | 4,615 | 42,833 |
(a) For the period August 16, 2019 (commencement of operations) to July 31, 2020.
| July 31, 2019 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Simplicity RMD Income Fund | $343,193 | $138,234 | $481,427 |
| Fidelity Simplicity RMD 2010 Fund | 178,379 | 142,043 | 320,422 |
| Fidelity Simplicity RMD 2015 Fund | 375,716 | 238,419 | 614,135 |
| Fidelity Simplicity RMD 2020 Fund | 695,823 | 456,028 | 1,151,851 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and securities acquired in the merger, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Simplicity RMD Income Fund | 11,890,223 | 9,616,090 |
| Fidelity Simplicity RMD 2010 Fund | 5,762,171 | 5,632,617 |
| Fidelity Simplicity RMD 2015 Fund | 10,031,088 | 10,321,910 |
| Fidelity Simplicity RMD 2020 Fund | 26,974,918 | 22,220,243 |
| Fidelity Simplicity RMD 2025 Fund | 7,121,597 | 1,630,593 |
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 2010 Fund | .51% |
| Fidelity Simplicity RMD 2015 Fund | .55% |
| Fidelity Simplicity RMD 2020 Fund | .60% |
| Fidelity Simplicity RMD 2025 Fund | .64% |
Interfund Trades. 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 2020 Fund | $2 |
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 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 | 594,132 | 467,916 |
| Class I | – | 1,273 |
| Total | $594,132 | $481,427 |
| Fidelity Simplicity RMD 2010 Fund | ||
| Distributions to shareholders | ||
| Class A | $– | $8,187 |
| Class M | – | 884 |
| Class C | – | 4,198 |
| Fidelity Simplicity RMD 2010 | 350,327 | 304,459 |
| Class I | – | 2,694 |
| Total | $350,327 | $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 | 743,628 | 585,582 |
| Class I | – | 418 |
| Total | $743,628 | $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 | 1,766,670 | 1,123,264 |
| Class I | – | 2,632 |
| Total | $1,766,670 | $1,151,851 |
| Fidelity Simplicity RMD 2025 Fund(a) | ||
| Distributions to shareholders | ||
| Fidelity Simplicity RMD 2025 | $42,833 | $– |
| Total | $42,833 | $– |
(a) For the period August 16, 2019 (commencement of operations) to July 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 | |
| Year ended July 31, 2020 | Year ended July 31, 2019 | Year ended July 31, 2020 | Year ended July 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 | 125,402 | 203,764 | $7,404,737 | $11,675,868 |
| Issued in exchange for the shares of Fidelity Simplicity RMD 2005 Fund | 254,282 | – | 15,422,197 | – |
| Reinvestment of distributions | 8,825 | 7,265 | 519,797 | 408,908 |
| Shares redeemed | (96,736) | (83,303) | (5,624,620) | (4,752,024) |
| Net increase (decrease) | 291,773 | 127,726 | $17,722,111 | $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 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 | 63,449 | 93,708 | $3,418,223 | $4,896,095 |
| Reinvestment of distributions | 5,847 | 5,094 | 314,199 | 261,294 |
| Shares redeemed | (67,160) | (30,351) | (3,563,043) | (1,572,109) |
| Net increase (decrease) | 2,136 | 68,451 | $169,379 | $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 | 87,822 | 159,138 | $5,195,147 | $9,212,720 |
| Reinvestment of distributions | 11,051 | 8,782 | 657,979 | 495,398 |
| Shares redeemed | (102,387) | (48,314) | (6,035,894) | (2,751,738) |
| Net increase (decrease) | (3,514) | 119,606 | $(182,768) | $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 | 243,643 | 362,678 | $14,635,546 | $20,993,008 |
| Reinvestment of distributions | 27,880 | 18,577 | 1,672,437 | 1,046,172 |
| Shares redeemed | (195,913) | (108,909) | (11,359,065) | (6,275,576) |
| Net increase (decrease) | 75,610 | 272,346 | $4,948,918 | $15,763,604 |
| Class I | ||||
| Reinvestment of distributions | – | 47 | $– | $2,632 |
| Shares redeemed | – | (1,251) | – | (75,302) |
| Net increase (decrease) | – | (1,204) | $– | $(72,670) |
| Fidelity Simplicity RMD 2025(a) | ||||
| Shares sold | 584,677 | – | $6,026,202 | $– |
| Reinvestment of distributions | 4,053 | – | 42,481 | – |
| Shares redeemed | (61,640) | – | (615,620) | – |
| Net increase (decrease) | 527,090 | – | $5,453,063 | $– |
(a) For the period August 16, 2019 (commencement of operations) to July 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 Simplicity RMD 2025 Fund | 19% |
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Funds' performance.
11. Merger Information.
On July 17, 2020, Fidelity Simplicity RMD Income Fund acquired all of the assets and assumed all of the liabilities of Fidelity Simplicity RMD 2005 Fund ("Target Fund") pursuant to an Agreement and Plan of Reorganization approved by the Board of Trustees ("The Board"). The acquisition was accomplished by an exchange of shares of Fidelity Simplicity RMD Income Fund for shares then outstanding of the Target Fund at its respective net asset value on the acquisition date. The reorganization provides shareholders of the Target Fund access to a larger portfolio with a similar investment objective and lower expenses. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Fund's net assets of $15,422,197, including securities of $15,415,464 and unrealized appreciation of $834,383, was combined with Fidelity Simplicity RMD Income Fund's net assets of $24,003,631 for total net assets after the acquisition of $39,425,828.
Pro forma results of operations of the combined entity for the entire period ended July 31, 2020, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
| Net investment income (loss) | $653,031 |
| Total net realized gain (loss) | 231,952 |
| Total change in net unrealized appreciation (depreciation) | 1,712,194 |
| Net increase (decrease) in net assets resulting from operations | $2,597,177 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the acquired fund that has been included in Fidelity Simplicity RMD Income Fund's accompanying Statement of Operations since July 17, 2020.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Income Fund and the Shareholders of Fidelity Simplicity RMD Income Fund, Fidelity Simplicity RMD 2010 Fund, Fidelity Simplicity RMD 2015 Fund, Fidelity Simplicity RMD 2020 Fund and Fidelity Simplicity RMD 2025 Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Fidelity Simplicity RMD Income Fund, Fidelity Simplicity RMD 2010 Fund, Fidelity Simplicity RMD 2015 Fund, Fidelity Simplicity RMD 2020 Fund and Fidelity Simplicity RMD 2025 Fund (the "Funds"), each a fund of Fidelity Income Fund, including the schedules of investments, as of July 31, 2020, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, except for the Fidelity Simplicity RMD 2025 Fund; the related statement of operations, the statement of changes in net assets, and the financial highlights for the period from August 16, 2019 (commencement of operations) to July 31, 2020 for the Fidelity Simplicity RMD 2025 Fund; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2020, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended (or for the period mentioned above), in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 11, 2020
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. If the interests of a fund and an underlying Fidelity® fund were to diverge, a conflict of interest could arise and affect how the Trustees and Members of the Advisory Board fulfill their fiduciary duties to the affected funds. FMR has structured the funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, FMR, the Trustees, and Members of the Advisory Board would take reasonable steps to minimize and, if possible, eliminate the conflict. Each of the Trustees oversees 280 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Arthur E. Johnson serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, asset allocation and certain equity funds, and other Boards oversee Fidelity's high income and other equity funds. The asset allocation funds may invest in Fidelity® funds that are overseen by such other Boards. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Abigail P. Johnson (1961)
Year of Election or Appointment: 2009
Trustee
Chairman of the Board of Trustees
Ms. Johnson also serves as Trustee of other Fidelity® funds. Ms. Johnson serves as Chairman (2016-present), Chief Executive Officer (2014-present), and Director (2007-present) of FMR LLC (diversified financial services company), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of Fidelity Management & Research Company LLC (investment adviser firm, 2011-present). Previously, Ms. Johnson served as Chairman and Director of FMR Co., Inc. (investment adviser firm, 2011-2019), Vice Chairman (2007-2016) and President (2013-2016) of FMR LLC, President and a Director of Fidelity Management & Research Company (2001-2005), a Trustee of other investment companies advised by Fidelity Management & Research Company, Fidelity Investments Money Management, Inc. (investment adviser firm), and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity® funds (2001-2005), and managed a number of Fidelity® funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.
Jennifer Toolin McAuliffe (1959)
Year of Election or Appointment: 2016
Trustee
Ms. McAuliffe also serves as Trustee of other Fidelity® funds. Previously, Ms. McAuliffe served as Co-Head of Fixed Income of Fidelity Investments Limited (now known as FIL Limited (FIL)) (diversified financial services company), Director of Research for FIL’s credit and quantitative teams in London, Hong Kong and Tokyo and Director of Research for taxable and municipal bonds at Fidelity Investments Money Management, Inc. Ms. McAuliffe previously served as a member of the Advisory Board of certain Fidelity® funds (2016). Ms. McAuliffe was previously a lawyer at Ropes & Gray LLP and currently serves as director or trustee of several not-for-profit entities.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Elizabeth S. Acton (1951)
Year of Election or Appointment: 2013
Trustee
Ms. Acton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Acton served as Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011) and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). Ms. Acton previously served as a member of the Advisory Board of certain Fidelity® funds (2013-2016).
Ann E. Dunwoody (1953)
Year of Election or Appointment: 2018
Trustee
General Dunwoody also serves as Trustee of other Fidelity® funds. General Dunwoody (United States Army, Retired) was the first woman in U.S. military history to achieve the rank of four-star general and prior to her retirement in 2012 held a variety of positions within the U.S. Army, including Commanding General, U.S. Army Material Command (2008-2012). General Dunwoody currently serves as President of First to Four LLC (leadership and mentoring services, 2012-present), a member of the Board and Nomination and Corporate Governance Committees of Kforce Inc. (professional staffing services, 2016-present) and a member of the Board of Automattic Inc. (software engineering, 2018-present). Previously, General Dunwoody served as a member of the Advisory Board and Nominating and Corporate Governance Committee of L3 Technologies, Inc. (communication, electronic, sensor and aerospace systems, 2013-2019) and a member of the Board and Audit and Sustainability and Corporate Responsibility Committees of Republic Services, Inc. (waste collection, disposal and recycling, 2013-2016). Ms. Dunwoody also serves on several boards for non-profit organizations, including as a member of the Board, Chair of the Nomination and Governance Committee and a member of the Audit Committee of Logistics Management Institute (consulting non-profit, 2012-present), a member of the Council of Trustees for the Association of the United States Army (advocacy non-profit, 2013-present), a member of the Board of Florida Institute of Technology (2015-present) and a member of the Board of ThanksUSA (military family education non-profit, 2014-present). General Dunwoody previously served as a member of the Advisory Board of certain Fidelity® funds (2018).
John Engler (1948)
Year of Election or Appointment: 2014
Trustee
Mr. Engler also serves as Trustee of other Fidelity® funds. Previously, Mr. Engler served as Governor of Michigan (1991-2003), President of the Business Roundtable (2011-2017) and interim President of Michigan State University (2018-2019). Mr. Engler currently serves as a member of the Board of K12 Inc. (technology-based education company, 2012-present). Previously, Mr. Engler served as a member of the Board of Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-2019) and Trustee of The Munder Funds (2003-2014). Mr. Engler previously served as a member of the Advisory Board of certain Fidelity® funds (2014-2016).
Robert F. Gartland (1951)
Year of Election or Appointment: 2010
Trustee
Mr. Gartland also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007), including Managing Director (1987-2007) and Chase Manhattan Bank (1975-1978). Mr. Gartland previously served as Chairman and an investor in Gartland & Mellina Group Corp. (consulting, 2009-2019), as a member of the Board of National Securities Clearing Corporation (1993-1996) and as Chairman of TradeWeb (2003-2004).
Arthur E. Johnson (1947)
Year of Election or Appointment: 2008
Trustee
Chairman of the Independent Trustees
Mr. Johnson also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). Mr. Johnson currently serves as a member of the Board of Booz Allen Hamilton (management consulting, 2011-present). Mr. Johnson previously served as a member of the Board of Eaton Corporation plc (diversified power management, 2009-2019) and a member of the Board of AGL Resources, Inc. (holding company, 2002-2016). Mr. Johnson previously served as Vice Chairman (2015-2018) of the Independent Trustees of certain Fidelity® funds. Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson.
Michael E. Kenneally (1954)
Year of Election or Appointment: 2009
Trustee
Vice Chairman of the Independent Trustees
Mr. Kenneally also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management and Executive Vice President and Chief Investment Officer of Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager for various institutional equity accounts and mutual funds and Portfolio Manager for a number of institutional fixed-income clients. Mr. Kenneally began his career as a Research Analyst in 1983 and was awarded the Chartered Financial Analyst (CFA) designation in 1991.
Marie L. Knowles (1946)
Year of Election or Appointment: 2001
Trustee
Ms. Knowles also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Knowles held several positions at Atlantic Richfield Company (diversified energy), including Executive Vice President and Chief Financial Officer (1996-2000), Senior Vice President (1993-1996) and President of ARCO Transportation Company (pipeline and tanker operations, 1993-1996). Ms. Knowles currently serves as a member of the Board of McKesson Corporation (healthcare service, since 2002), a member of the Board of the Santa Catalina Island Company (real estate, 2009-present), a member of the Investment Company Institute Board of Governors and a member of the Governing Council of the Independent Directors Council (2014-present). Ms. Knowles also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Ms. Knowles previously served as Chairman (2015-2018) and Vice Chairman (2012-2015) of the Independent Trustees of certain Fidelity® funds.
Mark A. Murray (1954)
Year of Election or Appointment: 2016
Trustee
Mr. Murray also serves as Trustee of other Fidelity® funds. Previously, Mr. Murray served as Co-Chief Executive Officer (2013-2016), President (2006-2013) and Vice Chairman (2013-2020) of Meijer, Inc. Mr. Murray serves as a member of the Board and Nuclear Review and Public Policy and Responsibility Committees of DTE Energy Company (diversified energy company, 2009-present) and a member of the Board and Audit Committee and Chairman of the Nominating and Corporate Governance Committee of Universal Forest Products, Inc. (manufacturer and distributor of wood and wood-alternative products, 2004-2016). Mr. Murray previously served as a member of the Board of Spectrum Health (not-for-profit health system, 2015-2019). Mr. Murray also serves as a member of the Board of many community and professional organizations. Mr. Murray previously served as a member of the Advisory Board of certain Fidelity® funds (2016).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
David J. Carter (1973)
Year of Election or Appointment: 2020
Assistant Secretary
Mr. Carter also serves as Assistant Secretary of other funds. Mr. Carter serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
President and Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Vadim Zlotnikov (1962)
Year of Election or Appointment: 2019
Vice President
Mr. Zlotnikov also serves as Vice President of other funds. Mr. Zlotnikov serves as President of FIAM (Fidelity Institutional Asset Management) and is an employee of Fidelity Investments (2018-present). Previously, Mr. Zlotnikov served as President and Chief Investment Officer of Global Asset Allocation (2018-2020). Prior to joining Fidelity Investments, Mr. Zlotnikov served as Co-Head of Multi-Asset Solutions, Chief Market Strategist, and CIO of Systematic Strategies with AllianceBernstein (investment adviser firm, 2002-2018).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 (February 1, 2020 to July 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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2020 | Ending Account Value July 31, 2020 | Expenses Paid During Period-B February 1, 2020 to July 31, 2020 |
|
| Fidelity Simplicity RMD Income Fund | .46% | |||
| Actual | $1,000.00 | $1,032.70 | $2.32 | |
| Hypothetical-C | $1,000.00 | $1,022.58 | $2.31 | |
| Fidelity Simplicity RMD 2010 Fund | .51% | |||
| Actual | $1,000.00 | $1,030.70 | $2.57 | |
| Hypothetical-C | $1,000.00 | $1,022.33 | $2.56 | |
| Fidelity Simplicity RMD 2015 Fund | .55% | |||
| Actual | $1,000.00 | $1,028.70 | $2.77 | |
| Hypothetical-C | $1,000.00 | $1,022.13 | $2.77 | |
| Fidelity Simplicity RMD 2020 Fund | .60% | |||
| Actual | $1,000.00 | $1,025.90 | $3.02 | |
| Hypothetical-C | $1,000.00 | $1,021.88 | $3.02 | |
| Fidelity Simplicity RMD 2025 Fund | .64% | |||
| Actual | $1,000.00 | $1,024.20 | $3.22 | |
| Hypothetical-C | $1,000.00 | $1,021.68 | $3.22 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
| Pay Date | Record Date | Capital Gains | |
| Fidelity Simplicity RMD Income FundSM | 09/14/2020 | 09/11/2020 | $0.061 |
| Fidelity Simplicity RMD 2010 FundSM | 09/14/2020 | 09/11/2020 | $0.192 |
| Fidelity Simplicity RMD 2015 FundSM | 09/14/2020 | 09/11/2020 | $0.351 |
| Fidelity Simplicity RMD 2020 FundSM | 09/14/2020 | 09/11/2020 | $0.297 |
| Fidelity Simplicity RMD 2025 FundSM | 09/14/2020 | 09/11/2020 | $0.065 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended July 31, 2020, or, if subsequently determined to be different, the net capital gain of such year.
| Fidelity Simplicity RMD Income FundSM | $115,336 |
| Fidelity Simplicity RMD 2010 FundSM | $102,206 |
| Fidelity Simplicity RMD 2015 FundSM | $255,926 |
| Fidelity Simplicity RMD 2020 FundSM | $570,516 |
| Fidelity Simplicity RMD 2025 FundSM | $36,618 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended July 17, 2020, or, if subsequently determined to be different, the net capital gain of such year.
| Fidelity Simplicity RMD 2005 FundSM | $141,141 |
A percentage of the dividends distributed during the fiscal year for the following funds were derived from interest on U.S. Government securities which is generally exempt from state income tax:
| Fidelity Simplicity RMD Income FundSM | 25.76% |
| Fidelity Simplicity RMD 2005 FundSM | 25.65% |
| Fidelity Simplicity RMD 2010 FundSM | 21.22% |
| Fidelity Simplicity RMD 2015 FundSM | 17.62% |
| Fidelity Simplicity RMD 2020 FundSM | 14.80% |
| Fidelity Simplicity RMD 2025 FundSM | 14.27% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Fidelity Simplicity RMD Income FundSM | |
| September 2019 | 15% |
| October 2019 | 23% |
| November 2019 | 23% |
| December 2019 | 23% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
| Fidelity Simplicity RMD 2005 FundSM | |
| September 2019 | 15% |
| October 2019 | 24% |
| November 2019 | 24% |
| December 2019 | 24% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
| Fidelity Simplicity RMD 2010 FundSM | |
| September 2019 | 24% |
| October 2019 | 33% |
| November 2019 | 33% |
| December 2019 | 33% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
| Fidelity Simplicity RMD 2015 FundSM | |
| September 2019 | 32% |
| October 2019 | 41% |
| November 2019 | 41% |
| December 2019 | 41% |
| February 2020 | 2% |
| March 2020 | 2% |
| April 2020 | 2% |
| May 2020 | 2% |
| June 2020 | 2% |
| July 2020 | 2% |
| Fidelity Simplicity RMD 2020 FundSM | |
| September 2019 | 41% |
| October 2019 | 50% |
| November 2019 | 50% |
| December 2019 | 50% |
| February 2020 | 4% |
| March 2020 | 4% |
| April 2020 | 4% |
| May 2020 | 4% |
| June 2020 | 4% |
| July 2020 | 4% |
| Fidelity Simplicity RMD 2025 FundSM | |
| September 2019 | 56% |
| October 2019 | 56% |
| November 2019 | 56% |
| December 2019 | 56% |
| February 2020 | 7% |
| March 2020 | 7% |
| April 2020 | 7% |
| May 2020 | 7% |
| June 2020 | 7% |
| July 2020 | 7% |
A percentage of the dividends distributed during the fiscal year for the following funds qualify as a section 199A dividend:
| Fidelity Simplicity RMD Income FundSM | |
| September 2019 | 1% |
| October 2019 | 1% |
| November 2019 | 1% |
| December 2019 | 1% |
| February 2020 | 2% |
| March 2020 | 2% |
| April 2020 | 2% |
| May 2020 | 2% |
| June 2020 | 2% |
| July 2020 | 2% |
| Fidelity Simplicity RMD 2005 FundSM | |
| September 2019 | 1% |
| October 2019 | 1% |
| November 2019 | 1% |
| December 2019 | 1% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
| Fidelity Simplicity RMD 2010 FundSM | |
| September 2019 | 1% |
| October 2019 | 2% |
| November 2019 | 2% |
| December 2019 | 2% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
| Fidelity Simplicity RMD 2015 FundSM | |
| September 2019 | 1% |
| October 2019 | 2% |
| November 2019 | 2% |
| December 2019 | 2% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
| Fidelity Simplicity RMD 2020 FundSM | |
| September 2019 | 2% |
| October 2019 | 2% |
| November 2019 | 2% |
| December 2019 | 2% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
| Fidelity Simplicity RMD 2025 FundSM | |
| September 2019 | 2% |
| October 2019 | 2% |
| November 2019 | 2% |
| December 2019 | 2% |
| February 2020 | 1% |
| March 2020 | 1% |
| April 2020 | 1% |
| May 2020 | 1% |
| June 2020 | 1% |
| July 2020 | 1% |
The funds will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Funds have adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage each Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. Each Fund’s Board of Trustees (the Board) has designated each Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
SRD-ANN-0920
1.9881721.103
Item 2.
Code of Ethics
As of the end of the period, July 31, 2020, Fidelity Income Fund (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Elizabeth S. Acton is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Acton is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Managed Retirement 2010 Fund, Fidelity Managed Retirement 2015 Fund, Fidelity Managed Retirement 2020 Fund, Fidelity Managed Retirement 2025 Fund, Fidelity Managed Retirement 2030 Fund, Fidelity Managed Retirement 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 and Fidelity Simplicity RMD Income Fund (the “Funds”):
Services Billed by Deloitte Entities
July 31, 2020 FeesA,B
| | Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
| | | | | |
| Fidelity Managed Retirement 2010 Fund | $26,500 | $- | $6,900 | $500 |
| Fidelity Managed Retirement 2015 Fund | $26,500 | $- | $6,900 | $500 |
| Fidelity Managed Retirement 2020 Fund | $26,500 | $- | $6,900 | $500 |
| Fidelity Managed Retirement 2025 Fund | $26,500 | $- | $6,900 | $500 |
| Fidelity Managed Retirement 2030 Fund | $16,800 | $- | $6,900 | $400 |
| Fidelity Managed Retirement Income Fund | $26,500 | $- | $6,900 | $500 |
| Fidelity Simplicity RMD 2010 Fund | $15,200 | $- | $6,900 | $400 |
| Fidelity Simplicity RMD 2015 Fund | $15,200 | $- | $6,900 | $400 |
| Fidelity Simplicity RMD 2020 Fund | $15,200 | $- | $6,900 | $400 |
| Fidelity Simplicity RMD 2025 Fund | $13,800 | $- | $6,900 | $400 |
| Fidelity Simplicity RMD Income Fund | $15,200 | $- | $6,900 | $400 |
July 31, 2019 FeesA,B
| | Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
| | | | | |
| Fidelity Managed Retirement 2010 Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Managed Retirement 2015 Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Managed Retirement 2020 Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Managed Retirement 2025 Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Managed Retirement 2030 Fund | $- | $- | $- | $- |
| Fidelity Managed Retirement Income Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Simplicity RMD 2010 Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Simplicity RMD 2015 Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Simplicity RMD 2020 Fund | $23,000 | $- | $5,000 | $700 |
| Fidelity Simplicity RMD 2025 Fund | $- | $- | $- | $- |
| Fidelity Simplicity RMD Income Fund | $23,000 | $- | $5,000 | $700 |
A Amounts may reflect rounding.
B Fidelity Managed Retirement 2030 Fund and Fidelity Simplicity RMD 2025 Fund commenced operations on August 16, 2019.
The following table(s) present(s) fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund(s) and that are rendered on behalf of Fidelity Management
& Research Company LLC ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
| | July 31, 2020A,B | July 31, 2019A,B |
| Audit-Related Fees | $- | $290,000 |
| Tax Fees | $3,000 | $- |
| All Other Fees | $- | $- |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Managed Retirement 2030 Fund and Fidelity Simplicity RMD 2025 Fund’s commencement of operations.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Fund(s), FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Fund(s) are as follows:
| Billed By | July 31, 2020A,B | July 31, 2019A,B |
| Deloitte Entities | $585,400 | $765,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Managed Retirement 2030 Fund and Fidelity Simplicity RMD 2025 Fund’s commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its(their) audit of the Fund(s), taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund(s) Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable.
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
| (a) | (2) | |
| (a) | (3) | Not applicable. |
| (b) | |
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: | September 21, 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: | September 21, 2020 |
| By: | /s/John J. Burke III |
| | John J. Burke III |
| | Chief Financial Officer |
| | |
| Date: | September 21, 2020 |