Fund Evaluator:

Fidelity Freedom Index 2045 Investor Overview

Fidelity Freedom Index 2045 Investor (FIOFX) is an actively managed Allocation Target-Date 2045 fund. Fidelity Investments launched the fund in 2009.

The investment seeks high total return until its target retirement date; thereafter the fund's objective will be to seek high current income and, as a secondary objective, capital appreciation. The fund invests in a combination of Fidelity® U.S. equity funds, international equity funds, bond funds, and short-term funds (underlying Fidelity ® funds), each of which (excluding any money market fund) seeks to provide investment results that correspond to the total return of a specific index.

About Fidelity Freedom Index 2045 Investor (FIOFX)

There are 4 members of the management team with an average tenure of 9.58 years: Andrew Dierdorf (2009), Brett Sumsion (2014), Finola McGuire Foley (2018), Cait Dourney Earle (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Fidelity Freedom Index 2045 Investor has 6 securities in its portfolio. The top 10 holdings constitute 100.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Fidelity Freedom Index 2045 Investor is part of the Allocation global asset class and is within the Allocation fund group. Fidelity Freedom Index 2045 Investor has 37.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 54.2%. There is 35.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 9.8% (8.1% domestic bond, 1.7% foreign bond and 0.0% convertible bond). Fidelity Freedom Index 2045 Investor has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $3 billion in total assets, which is above the $1 billion average for the Target-Date 2045 category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FIOFX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Freedom Index 2045 Investor expense ratio is low compared to funds in the Target-Date 2045 category. Fidelity Freedom Index 2045 Investor has an expense ratio of 0.12%, which is 82% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Freedom Index 2045 Investor has a portfolio turnover rate of 11%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2045 category.

Recently, in the month of June 2026, Fidelity Freedom Index 2045 Investor returned 0.0%, which earned it a grade of D, as the Target-Date 2045 category had an average return of 0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Fidelity Freedom Index 2045 Investor has a trailing yield of 1.74%, which is above the 1.70% category average. The fund normally distributes its income semi-annually and its capital gains semi-annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Freedom Index 2045 Investor Grades

Year to date, the fund has returned 11.4%, 0.8 percentage points better than the category, which translates into a grade of B. The fund has returned 22.9% over the past year (grade of A), 18.0% over the past three years (grade of B) and 9.6% per year over the past five years (grade of B) and 11.8% per year over the past 10 years (grade of A).

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