BOSTON – Fidelity Investments®, one of the largest and most diversified global financial services firms with more than $7 trillion in total client assets and more than $2.6 trillion in managed assets, today announced the launch of 13 Fidelity Freedom Blend Funds, with retail and advisor share classes.
Fidelity Freedom Blend Funds
|Fidelity Freedom Blend Funds:|
|Fidelity Freedom Blend Income Fund||Fidelity Freedom Blend 2035 Fund|
|Fidelity Freedom Blend 2005 Fund||Fidelity Freedom Blend 2040 Fund|
|Fidelity Freedom Blend 2010 Fund||Fidelity Freedom Blend 2045 Fund|
|Fidelity Freedom Blend 2015 Fund||Fidelity Freedom Blend 2050 Fund|
|Fidelity Freedom Blend 2020 Fund||Fidelity Freedom Blend 2055 Fund|
|Fidelity Freedom Blend 2025 Fund||Fidelity Freedom Blend 2060 Fund|
|Fidelity Freedom Blend 2030 Fund|
The new Freedom Blend target-date funds invest assets in a combination of underlying index funds and active funds while using the same glide path, investment process, and resources as the existing Fidelity target-date funds.
"The Fidelity Freedom Blend Funds, just like the Fidelity and Fidelity Advisor Freedom Funds and Fidelity Freedom Index Funds, include a diversified mix of investments designed to help grow retirement savings during investors' earning years, support an individual's income needs through their retirement years, and provide protection from market volatility throughout an investor's lifetime," said Andrew Dierdorf, portfolio manager, Fidelity Investments.
The Fidelity Freedom Blend funds will be co-managed by Andrew Dierdorf and Brett Sumsion, who are supported by Fidelity's global investment and research capabilities. The pair also co-manage other asset allocation funds, including the existing Fidelity Freedom Funds, for which they were nominated for "2017 Morningstar Fund Managers of the Year.1"
"We have offered target- date blend strategies in commingled pools for the past five years. We are introducing the Freedom Blend funds to meet the growing demand from clients who have been asking for a target-date strategy that incorporates a balanced mix of active and passive investment capabilities in a single mutual fund," said Eric Kaplan, head of Target-Date Product. "These blend funds offer individual investors, financial advisors, plan sponsors and retirement plan participants another outstanding choice to help reach retirement savings goals."
Each Freedom Blend Fund will launch with nine share classes offering different expense levels. For example, expenses for the retail and I share classes will range from 0.46%–0.54% depending on the target year, while the K6 and Z6 share classes will range from 0.26%–0.34%2.
The mix of active and low-cost passive investments will vary based on the target year with passive investments generally expected to range between 20% and 60% of each fund portfolio.
Fidelity Freedom Blend 2020 through 2060 Funds seek high total return until their target retirement date. Thereafter, each fund's objective will be to seek high current income and, as a secondary objective, capital appreciation. Fidelity Freedom Blend Income and 2005 through 2015 Funds seek high current income and, as a secondary objective, capital appreciation.
Reduced Fee Schedule for FIAM Blend Target Date Commingled Pools
Fidelity Investments is also introducing a new, reduced fee schedule for the Fidelity Institutional Asset Management (FIAM) Blend Target Date Commingled Pools to offer even better value for retirement plan participants. As noted in the chart below, current FIAM Blend Target Date customers are now eligible for either a lower price in an existing share class or a less expensive share class option, depending on their current FIAM target date assets. FIAM Blend Target Date Commingled Pools are available for institutional investors, including retirement plans. The new pricing is effective September 1, 2018.
|FIAM Blend Target Date Commingled Pools|
|Share Classes||Under $100M||$100M- $300M||$300M- $500M||$500M- $1,000M||$1,000M- $3,000M||$3,000M- $5,000M||$5,000M- $7,000M||$7,000M +|
|New Net Expense||0.32%||0.32%||0.30%||0.26%||0.24%||0.21%||0.20%||0.18%|
|New Underlying Expense||0.00%||0.00%||0.00%||0.00%||0.00%||0.00%||0.00%||0.00%|
|Previous Net Expense*||0.42%||0.37%||0.32%||0.28%||0.26%||N/A||N/A||N/A|
|Previous Management Fee||0.40%||0.35%||0.30%||0.26%||0.24%||N/A||N/A||N/A|
|Previous Underlying Expense*||~0.02%||~0.02%||~0.02%||~0.02%||~0.02%||N/A||N/A||N/A|
* Underlying pool expenses reflect administrative fees including custody, audit and pricing and bookkeeping and vary depending on the mix of investments in the underlying pools.
Previously, there was no separate share class pricing for FIAM Blend Target Date asset levels above the $1 billion to $3 billion level.
About Fidelity Investments
Fidelity's mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $7.2 trillion, including managed assets of $2.6 trillion as of July 31, 2018, we focus on meeting the unique needs of a diverse set of customers: helping more than 27 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients' money. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.