Fidelity Freedom® 2030 Fund Q3 2025 Commentary
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Fidelity Investments866 FollowersFollow5ShareSavePlay(10min)CommentsSummaryFidelity's target-date strategies produced positive absolute returns during Q3.Active asset allocation positioning contributed to the fund's performance versus the Composite index in Q3, whereas security selection among the underlying funds detracted.We have increased exposure to equities for early-career investors, and increased exposure to both equities and inflation-sensitive assets for investors near retirement or in retirement.Looking ahead, we expect the U.S. economy to remain in expansion, supported by strong corporate fundamentals and monetary and fiscal easing. da-kuk/E+ via Getty Images Market Update and Portfolio Review Global equities rallied in Q3 amid a constructive expansionary backdrop and strong corporate fundamentals. U.S. corporate earnings revisions accelerated upward across most sectors. After pausing since its December 2024 rate cut, the Federal ReserveThis article was written byFidelity Investments866 FollowersFollowFidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses it serves. With assets under administration of $12.6 trillion, including discretionary assets of $4.9 trillion as of December 31, 2023, Fidelity focuses on meeting the unique needs of a broad and growing customer base. Privately held for 77 years, Fidelity employs more than 74,000 associates with its headquarters in Boston and a global presence spanning nine countries across North America, Europe, Asia and Australia. Note: This account is not managed or monitored by Fidelity, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Fidelity's official channels.Quick InsightsHow did active asset allocation impact FFFEX's Q3 performance?Active asset allocation added value, with overweight positions in emerging markets and underweight in investment-grade bonds driving outperformance versus the composite index.What is the fund's current equity positioning and rationale?FFFEX is overweight equities, citing strong U.S. corporate fundamentals, monetary easing, and attractive non-U.S. equity valuations amid accelerating U.S. earnings revisions.How is FFFEX addressing inflation risk in its portfolio?With inflation expected around 3% next year, FFFEX maintains composite-neutral exposure to inflation-sensitive assets, as Treasury Inflation-Protected Securities already reflect this outlook.Recommended For You