Fidelity Freedom 2045 Fund

Investor Summary

Andrew Dierdorf serves as co-portfolio manager of the Fidelity Freedom 2045 Fund and is a portfolio manager in Fidelity's Global Asset Allocation group. He brings extensive professional credentials including CFA charterholder, Fellow of the Society of Actuaries (FSA), Chartered Market Technician (CMT), and Member of the American Academy of Actuaries (MAAA). Dierdorf holds a Bachelor of Science degree in statistics with a minor in economics from the University of Delaware and has been in the financial industry since 1993, joining Fidelity in 2004 after working as an actuary at various insurance firms. At Fidelity, he co-manages target date strategies including Fidelity-managed 529 plans and Canadian target date funds, as well as the Fidelity Multi-Asset Index Fund.

Fund Strategy

The fund seeks high total return until its target retirement date in 2045, after which the objective shifts to high current income with capital preservation as a secondary objective. The fund employs a diversified asset allocation strategy that becomes more conservative as it approaches the target date, utilizing a combination of Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. The fund follows a neutral asset allocation strategy with flexibility to adjust exposures by up to 10 percentage points based on market outlook, and may allocate up to 25% into alternative asset classes including high yield debt, floating rate debt, real estate debt, and emerging markets debt.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
11.22%	-0.44%	-0.44%

Executive Summary

The Fidelity Freedom 2045 Fund delivered a -0.44% return in Q1 2026, outperforming its composite benchmark amid volatile market conditions driven by geopolitical conflict and inflation concerns. The fund's strategic asset allocation approach focuses on age-appropriate diversification while employing tactical positioning based on intermediate-term market views. Active asset allocation contributed positively, with overweights in commodities and non-U.S. equities driving relative outperformance. Security selection was particularly strong in technology sectors, with semiconductor companies like Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing contributing meaningfully to results. The fund maintains an overweight in equities while favoring non-U.S. assets over domestic holdings based on attractive valuations and potential dollar weakness. Management continues to emphasize diversification as a hedge against macro risks including government debt, global fragmentation, and persistent inflation dynamics. Implementation of updated glide path allocations is underway and expected to complete within 6-12 months.

Forward Outlook

Target-date funds are positioned as long-term strategies designed to help participants stay on track toward retirement goals. The fund expects to complete implementation of updated strategic asset allocations within 6-12 months. Management sees reasonable valuations outside the AI epicenter and prefers non-U.S. assets over U.S. assets based on attractive valuations and potential dollar weakness.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 25 2026	2026 Q1	000660 KS, 005930 KS, CRM, CVX, TSM	asset allocation, Bonds, commodities, diversification, equities, target date	-	Target-date fund outperformed benchmark through tactical overweights in commodities and international equities. Strong semiconductor performance offset software detractors. Management favors non-U.S. assets over domestic holdings based on attractive valuations and potential dollar weakness. Maintains diversified approach to navigate persistent inflation and macro uncertainties while implementing updated strategic allocations.
Jan 28 2026	2025 Q4	BAC, GEV, UPS, WFC	asset allocation, diversification, equities, fixed income, global, Target-Date	-	Fidelity Freedom 2045 Fund delivered 23.77% annual returns driven by overweight non-U.S. equities positioning. The fund maintains preference for international assets over elevated U.S. valuations while emphasizing diversification to hedge macro risks. Active positioning includes added fixed-income and commodities exposure to address inflation concerns and geopolitical uncertainties.
Oct 21 2025	2025 Q3	AEM, CRH, CSU.TO, FNV, Gold, NVDA, PSTG, TSM	asset allocation, Bonds, diversification, equities, retirement, Target-Date	-	Fidelity Freedom 2045 Fund posted strong 7.01% Q3 returns through active asset allocation favoring emerging markets and semiconductor overweights including Nvidia. The fund maintains equity overweights amid expected U.S. expansion and attractive non-U.S. valuations, while managing inflation risks from persistent 3% levels above Fed targets and geopolitical uncertainties.
Jul 29 2025	2025 Q2	AEM, CRH, CSU.TO, FNV, Gold, NVDA, PSTG, TSM	asset allocation, Bonds, diversification, equities, retirement, Target-Date	-	Fidelity Freedom 2045 delivered 7.01% in Q3 through active asset allocation favoring emerging markets and semiconductor/technology stock selection. The fund maintains equity overweights expecting continued U.S. expansion and attractive non-U.S. valuations. Key risks include persistent 3% inflation from services and tariffs, plus macro uncertainty from debt and geopolitics.
Mar 31 2025	2025 Q1	ALAB, BA.L, DECK, GE, IMPUY, MRVL, NVDA, PDD, RHM.DE, SAN, SE, TSLA, XOM	asset allocation, diversification, geopolitics, policy, target date, tariffs	-	Fidelity Freedom 2045 Fund gained 0.07% in Q1 2025, benefiting from overweight non-U.S. equities positioning amid U.S. policy uncertainty around tariffs and government programs. Value holdings like GE Aerospace and international defense names contributed while growth tech detracted. Managers emphasize diversification to navigate geopolitical risks and potential regime changes, expecting continued market volatility.
Sep 30 2024	2024 Q3	000660.KS, 005930.KS, 3231.TW, 6723.T, ALSN, INTC, LULU, MRNA, MU, NVDA, PSTG, TSLA, VST	asset allocation, diversification, equities, global, inflation, Target-Date	-	Fidelity's 2045 target-date fund gained 5.94% in Q3, benefiting from Fed rate cuts and global monetary easing. The fund maintains overweight non-U.S. equity positioning, viewing international markets as undervalued versus fully-priced U.S. assets. Managers shifted some commodities to TIPS for inflation protection while anticipating broader equity market participation beyond large-cap U.S. stocks.
Jun 30 2024	2024 Q2	-	asset allocation, diversification, Glide Path, retirement, Target-Date	-	Target-date fund for 2045 retirees delivered 1.82% in Q2 with 10.24% YTD returns. Currently 94% equity allocation across U.S. and international markets, automatically becoming more conservative as retirement approaches. Invests through underlying Fidelity funds rather than individual securities, providing diversified exposure with disciplined asset allocation strategy.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 25 2026

2026 Q1

000660 KS, 005930 KS, CRM, CVX, TSM

asset allocation, Bonds, commodities, diversification, equities, target date

Target-date fund outperformed benchmark through tactical overweights in commodities and international equities. Strong semiconductor performance offset software detractors. Management favors non-U.S. assets over domestic holdings based on attractive valuations and potential dollar weakness. Maintains diversified approach to navigate persistent inflation and macro uncertainties while implementing updated strategic allocations.

Jan 28 2026

2025 Q4

BAC, GEV, UPS, WFC

asset allocation, diversification, equities, fixed income, global, Target-Date

Fidelity Freedom 2045 Fund delivered 23.77% annual returns driven by overweight non-U.S. equities positioning. The fund maintains preference for international assets over elevated U.S. valuations while emphasizing diversification to hedge macro risks. Active positioning includes added fixed-income and commodities exposure to address inflation concerns and geopolitical uncertainties.

Oct 21 2025

2025 Q3

AEM, CRH, CSU.TO, FNV, Gold, NVDA, PSTG, TSM

asset allocation, Bonds, diversification, equities, retirement, Target-Date

Fidelity Freedom 2045 Fund posted strong 7.01% Q3 returns through active asset allocation favoring emerging markets and semiconductor overweights including Nvidia. The fund maintains equity overweights amid expected U.S. expansion and attractive non-U.S. valuations, while managing inflation risks from persistent 3% levels above Fed targets and geopolitical uncertainties.

Jul 29 2025

2025 Q2

AEM, CRH, CSU.TO, FNV, Gold, NVDA, PSTG, TSM

asset allocation, Bonds, diversification, equities, retirement, Target-Date

Fidelity Freedom 2045 delivered 7.01% in Q3 through active asset allocation favoring emerging markets and semiconductor/technology stock selection. The fund maintains equity overweights expecting continued U.S. expansion and attractive non-U.S. valuations. Key risks include persistent 3% inflation from services and tariffs, plus macro uncertainty from debt and geopolitics.

Mar 31 2025

2025 Q1

ALAB, BA.L, DECK, GE, IMPUY, MRVL, NVDA, PDD, RHM.DE, SAN, SE, TSLA, XOM

asset allocation, diversification, geopolitics, policy, target date, tariffs

Fidelity Freedom 2045 Fund gained 0.07% in Q1 2025, benefiting from overweight non-U.S. equities positioning amid U.S. policy uncertainty around tariffs and government programs. Value holdings like GE Aerospace and international defense names contributed while growth tech detracted. Managers emphasize diversification to navigate geopolitical risks and potential regime changes, expecting continued market volatility.

Sep 30 2024

2024 Q3

000660.KS, 005930.KS, 3231.TW, 6723.T, ALSN, INTC, LULU, MRNA, MU, NVDA, PSTG, TSLA, VST

asset allocation, diversification, equities, global, inflation, Target-Date

Fidelity's 2045 target-date fund gained 5.94% in Q3, benefiting from Fed rate cuts and global monetary easing. The fund maintains overweight non-U.S. equity positioning, viewing international markets as undervalued versus fully-priced U.S. assets. Managers shifted some commodities to TIPS for inflation protection while anticipating broader equity market participation beyond large-cap U.S. stocks.

Jun 30 2024

2024 Q2

asset allocation, diversification, Glide Path, retirement, Target-Date

Target-date fund for 2045 retirees delivered 1.82% in Q2 with 10.24% YTD returns. Currently 94% equity allocation across U.S. and international markets, automatically becoming more conservative as retirement approaches. Invests through underlying Fidelity funds rather than individual securities, providing diversified exposure with disciplined asset allocation strategy.

QUARTER	THEMES	TAGS
2026 Q1	Commodities The fund maintained an overweight in commodities over the past three months due to persistent inflation dynamics. Management believes tariffs, rising energy costs and stable U.S. growth may lead to increases in both headline and core inflation.	Inflation Energy Tariffs
	Semiconductors Strong performance from semiconductor companies including Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing contributed meaningfully to the fund's relative performance, particularly within information technology sectors.	Technology Memory Foundries
	AI Valuations outside of the artificial-intelligence epicenter are described as reasonable, suggesting the fund sees opportunities beyond the core AI names while acknowledging the AI theme's market impact.	Technology Valuations
2025 Q4	AI Manager views AI as a classic capital cycle bubble comparable to past infrastructure manias. Sees massive capital spending with improbable returns, creative financing, and circular dynamics among hyperscalers. Expects this to end badly for early investors despite potential societal benefits.	Artificial Intelligence Data Centers Capital Cycle Bubble Infrastructure
	Cloud Cloud infrastructure spending is characterized as delusional with unsustainable capital requirements. Manager sees formerly capital-light tech companies now in an arms race that is leveraging balance sheets and destroying returns.	Cloud Computing Infrastructure Capital Intensity Tech Companies
	Value Manager maintains strong conviction in value investing approach, with portfolio trading at 12.2x earnings versus S&P 500 at 26x. Emphasizes active management benefits and margin of safety in both price and business quality.	Value Investing Undervalued Active Management Margin of Safety
	Gold Gold reached $5,000 per ounce with mining companies showing exceptional profitability. Portfolio's gold miners Kinross and Newmont saw margins surge to over 30% with strong balance sheets and mid-20% returns on capital.	Gold Mining Precious Metals Commodity Cycle Mining Profitability
	Dollar Stores Significantly increased allocation to retailers, particularly dollar stores, from 17.1% to 25.9% of portfolio. These positions contributed meaningfully to the 41.4% net return despite having lower profit margins than tech companies.	Retail Dollar General Dollar Tree Five Below
2025 Q3	Semiconductors Semiconductor companies were significant contributors to performance, with overweight positions in Nvidia and Astera Labs adding relative value. Taiwan Semiconductor Manufacturing was highlighted as a key contributor within the materials sector positioning.	Nvidia Taiwan Semiconductor Chip Technology Hardware
	Technology Information technology sector contributed notably to fund performance through security selection. Technology hardware and equipment companies including Sandisk and Ciena provided out-of-benchmark contributions, while Pure Storage added value through larger-than-benchmark positioning.	Hardware Equipment Storage Growth Innovation
2025 Q2	Semiconductors Semiconductor companies were significant contributors to performance, with overweight positions in Nvidia and Astera Labs adding relative value. Taiwan Semiconductor Manufacturing was highlighted as a major contributor within international growth holdings.	Nvidia Taiwan Semiconductor Chip Designers Memory Foundries
	Technology Information technology sector contributed notably to fund performance through security selection. Technology hardware and equipment companies including Sandisk and Ciena provided out-of-benchmark contributions, while Pure Storage added value through larger-than-benchmark positioning.	Hardware Storage Cloud Infrastructure Enterprise Software IT Services
2025 Q1	Diversification The fund emphasizes strategic asset allocation and diversification to help navigate different market environments and risks. Recent years have amplified portfolio diversification based on the view that participants will experience multiple market environments throughout their lifetime, and that regimes can change abruptly. The fund's glide path reflects long-term views on participant needs, diversification and capital markets.	Asset Allocation Risk Management Strategic Positioning Portfolio Balance
	Trade Policy Uncertainty about U.S. policy direction weighed on markets in Q1, particularly regarding tariffs, cuts to government programs, and tighter immigration policy. The fund expects the U.S. economy to muddle through tariff-induced challenges because of its large, diversified, services-based economy. Non-U.S. companies face risks from weaker U.S. consumer demand, but factors may buffer the impact including fiscal room for governments to offset tariff impacts.	Tariffs Immigration Policy Government Programs Policy Uncertainty
	Geopolitics High debt, aging demographics, peak globalization, and geopolitics continue to create uncertainty in the path of inflation, policy and corporate profits. The managers maintain the view that trends in the economy and policy conditions may imply a regime change for financial markets. Geopolitical factors are identified as key drivers of market uncertainty and volatility.	Peak Globalization Regime Change Policy Uncertainty Market Volatility
2024 Q3	Diversification The fund emphasizes strategic asset allocation decisions that continue to emphasize diversification to help target-date investors navigate different risks throughout their lifetimes. The investment process is focused on selecting strategic asset classes that provide compelling long-term returns, independent sources of return and risk, and favorable implementation attributes.	Asset Allocation Risk Management Strategic Long-term Balance
	Inflation The fund is monitoring upside risks to inflation and believes returning to the stable low-inflation environment of the past 20 years may prove challenging. They have shifted a portion of the fund's commodities allocation to short-term TIPS, which can provide protection from a second wave of inflation or a growth shock.	TIPS Commodities Protection Monetary Policy Growth

QUARTER

THEMES

Commodities

The fund maintained an overweight in commodities over the past three months due to persistent inflation dynamics. Management believes tariffs, rising energy costs and stable U.S. growth may lead to increases in both headline and core inflation.

Inflation Energy Tariffs

Semiconductors

Strong performance from semiconductor companies including Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing contributed meaningfully to the fund's relative performance, particularly within information technology sectors.

Technology Memory Foundries

AI

Valuations outside of the artificial-intelligence epicenter are described as reasonable, suggesting the fund sees opportunities beyond the core AI names while acknowledging the AI theme's market impact.

Technology Valuations

2025 Q4

AI

Manager views AI as a classic capital cycle bubble comparable to past infrastructure manias. Sees massive capital spending with improbable returns, creative financing, and circular dynamics among hyperscalers. Expects this to end badly for early investors despite potential societal benefits.

Artificial Intelligence Data Centers Capital Cycle Bubble Infrastructure

Cloud

Cloud infrastructure spending is characterized as delusional with unsustainable capital requirements. Manager sees formerly capital-light tech companies now in an arms race that is leveraging balance sheets and destroying returns.

Cloud Computing Infrastructure Capital Intensity Tech Companies

Value

Manager maintains strong conviction in value investing approach, with portfolio trading at 12.2x earnings versus S&P 500 at 26x. Emphasizes active management benefits and margin of safety in both price and business quality.

Value Investing Undervalued Active Management Margin of Safety

Gold

Gold reached $5,000 per ounce with mining companies showing exceptional profitability. Portfolio's gold miners Kinross and Newmont saw margins surge to over 30% with strong balance sheets and mid-20% returns on capital.

Gold Mining Precious Metals Commodity Cycle Mining Profitability

Dollar Stores

Significantly increased allocation to retailers, particularly dollar stores, from 17.1% to 25.9% of portfolio. These positions contributed meaningfully to the 41.4% net return despite having lower profit margins than tech companies.

Retail Dollar General Dollar Tree Five Below

2025 Q3

Semiconductors

Semiconductor companies were significant contributors to performance, with overweight positions in Nvidia and Astera Labs adding relative value. Taiwan Semiconductor Manufacturing was highlighted as a key contributor within the materials sector positioning.

Nvidia Taiwan Semiconductor Chip Technology Hardware

Technology

Information technology sector contributed notably to fund performance through security selection. Technology hardware and equipment companies including Sandisk and Ciena provided out-of-benchmark contributions, while Pure Storage added value through larger-than-benchmark positioning.

Hardware Equipment Storage Growth Innovation

2025 Q2

Semiconductors

Semiconductor companies were significant contributors to performance, with overweight positions in Nvidia and Astera Labs adding relative value. Taiwan Semiconductor Manufacturing was highlighted as a major contributor within international growth holdings.

Nvidia Taiwan Semiconductor Chip Designers Memory Foundries

Technology

Hardware Storage Cloud Infrastructure Enterprise Software IT Services

2025 Q1

Diversification

The fund emphasizes strategic asset allocation and diversification to help navigate different market environments and risks. Recent years have amplified portfolio diversification based on the view that participants will experience multiple market environments throughout their lifetime, and that regimes can change abruptly. The fund's glide path reflects long-term views on participant needs, diversification and capital markets.

Asset Allocation Risk Management Strategic Positioning Portfolio Balance

Trade Policy

Uncertainty about U.S. policy direction weighed on markets in Q1, particularly regarding tariffs, cuts to government programs, and tighter immigration policy. The fund expects the U.S. economy to muddle through tariff-induced challenges because of its large, diversified, services-based economy. Non-U.S. companies face risks from weaker U.S. consumer demand, but factors may buffer the impact including fiscal room for governments to offset tariff impacts.

Tariffs Immigration Policy Government Programs Policy Uncertainty

Geopolitics

High debt, aging demographics, peak globalization, and geopolitics continue to create uncertainty in the path of inflation, policy and corporate profits. The managers maintain the view that trends in the economy and policy conditions may imply a regime change for financial markets. Geopolitical factors are identified as key drivers of market uncertainty and volatility.

Peak Globalization Regime Change Policy Uncertainty Market Volatility

2024 Q3

Diversification

The fund emphasizes strategic asset allocation decisions that continue to emphasize diversification to help target-date investors navigate different risks throughout their lifetimes. The investment process is focused on selecting strategic asset classes that provide compelling long-term returns, independent sources of return and risk, and favorable implementation attributes.

Asset Allocation Risk Management Strategic Long-term Balance

Inflation

The fund is monitoring upside risks to inflation and believes returning to the stable low-inflation environment of the past 20 years may prove challenging. They have shifted a portion of the fund's commodities allocation to short-term TIPS, which can provide protection from a second wave of inflation or a growth shock.

TIPS Commodities Protection Monetary Policy Growth

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
No Elevator Pitches found

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

No Elevator Pitches found

TICKER	COMMENTARY
005930.KS	Top individual relative contributors include Korea-based technology hardware and equipment firm Samsung Electronics
000660.KS	semiconductor companies SK Hynix and Taiwan Semiconductor Manufacturing
TSM	semiconductor companies SK Hynix and Taiwan Semiconductor Manufacturing
CRM	Notable detractors include allocations to software and services companies, including Capgemini, Salesforce and Gen Digital
CVX	Also, not owning benchmark component Chevron hurt relative performance

TICKER

COMMENTARY

005930.KS

Top individual relative contributors include Korea-based technology hardware and equipment firm Samsung Electronics

000660.KS

semiconductor companies SK Hynix and Taiwan Semiconductor Manufacturing

TSM

semiconductor companies SK Hynix and Taiwan Semiconductor Manufacturing

CRM

Notable detractors include allocations to software and services companies, including Capgemini, Salesforce and Gen Digital

CVX

Also, not owning benchmark component Chevron hurt relative performance

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Commodities

Semiconductors

AI

AI

Cloud

Value

Gold

Dollar Stores

Semiconductors

Technology

Semiconductors

Technology

Diversification

Trade Policy

Geopolitics

Diversification

Inflation

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Brett F Sumsion Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Fidelity Freedom 2045 Fund