Fidelity Freedom 2035 Fund Q3 2025 Commentary
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Fidelity Investments867 FollowersFollow5ShareSavePlay(10min)CommentsSummaryActive asset allocation positioning contributed to the fund's performance versus the Composite index in Q3.Based on our long-term views of participant needs and capital markets, we have updated the glide path and strategic asset allocation of the strategies.Looking ahead, we expect the U.S. economy to remain in expansion, supported by strong corporate fundamentals and monetary and fiscal easing.Strategic glide path updates increased uity and inflation-sensitive exposures, aiming to sustain retirement income amid persistent inflation and policy uncertainty. denizbayram/iStock 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 Investments867 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 FFTHX's active asset allocation impact Q3 performance?Active asset allocation contributed positively, with overweights in emerging-markets equities and underweights in investment-grade bonds driving outperformance versus the Composite index.What strategic changes were made to FFTHX's glide path and why?The glide path increased equity and inflation-sensitive asset exposure for both early-career and near-retirement investors to enhance income sustainability and manage drawdown risk amid evolving market regimes.How is FFTHX positioned for inflation and policy uncertainty going forward?FFTHX maintains a Composite-neutral exposure to inflation-sensitive assets, expects inflation around 3% in 2026, and retains an overweight in equities, reflecting a constructive outlook despite regime change risks.Recommended For You