Prospectus - Investment Objective
Fidelity
Flex® Funds
Fund/Ticker
Fidelity
Flex® Conservative Income Municipal Bond Fund/FUEMX
Prospectus
March
1, 2024
|
Like
securities of all mutual funds, these securities have not been approved or
disapproved by the Securities and Exchange Commission, and the Securities
and Exchange Commission has not determined if this prospectus is accurate
or complete. Any representation to the contrary is a criminal
offense.
|
245
Summer Street, Boston, MA 02210 |
Contents
Fund
Summary
Fund:
Fidelity
Flex® Conservative Income Municipal Bond Fund
Investment
Objective
Fidelity
Flex® Conservative Income Municipal Bond Fund seeks to provide a high level of
income, exempt from federal income tax, consistent with preservation of
capital.
Fee
Table
The
following table describes the fees and expenses that may be incurred when you
buy, hold, and sell shares of the fund. In
addition to the fees and expenses described below, your broker may also require
you to pay brokerage commissions on purchases and sales of the
fund.
Shareholder
fees
|
(fees
paid directly from your investment) |
None |
Annual
Operating Expenses
(expenses
that you pay each year as a % of the value of your investment)
|
Management
fee |
0.00%
|
|
Distribution
and/or Service (12b-1) fees |
None
|
|
Other
expenses |
0.02%
|
|
Total
annual operating expenses |
%
A |
|
Fee
waiver and/or expense reimbursement |
%
B |
|
Total
annual operating expenses after fee waiver and/or expense
reimbursement |
0.00%
|
This
example
helps compare the cost of investing in the fund with the cost of investing in
other funds.
Let's
say, hypothetically, that the annual return for shares of the fund is 5% and
that the fees and the annual operating expenses for shares of the fund are
exactly as described in the fee table. This example illustrates the effect of
fees and expenses, but is not meant to suggest actual or expected fees and
expenses or returns, all of which may vary. This example does not include any
fees paid at the fee-based account or plan level. For every $10,000 you
invested, here's how much you would pay in total expenses if you sell all of
your shares at the end of each time period
indicated:
|
1
year |
$ |
0 |
|
3
years |
$ |
4 |
|
5
years |
$ |
9 |
|
10
years |
$ |
23 |
Portfolio
Turnover
The
fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
annual operating expenses or in the example, affect the fund's performance.
During the most recent fiscal year, the fund's portfolio turnover rate
was 78%
of the average value of its portfolio.
Principal
Investment Strategies
- Normally
investing at least 80% of assets in U.S. dollar-denominated municipal money
market securities and high quality investment-grade municipal debt securities
whose interest is exempt from federal income tax.
- Managing
the fund to have similar overall interest rate risk to the supplemental
index.
- Normally
maintaining a dollar-weighted average maturity of one year or less.
- Normally
investing in securities with a maximum maturity of four years.
- Allocating
assets across different market sectors and maturities.
- Potentially
investing more than 25% of total assets in municipal securities that finance
similar types of projects.
- Analyzing
the credit quality of the issuer, security-specific features, current and
potential future valuation, and trading opportunities to select
investments.
Principal
Investment Risks
- Municipal
Market Volatility.
The
municipal market is volatile and can be significantly affected by adverse tax,
legislative, or political changes and the financial condition of the issuers of
municipal securities.
Interest
rate increases can cause the price of a debt or money market security to
decrease.
The
value of an individual security or particular type of security can be more
volatile than, and can perform differently from, the market as a
whole.
A
decline in the credit quality of an issuer or a provider of credit support or a
maturity-shortening structure for a security can cause the price of a security
to decrease.
An
investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You
could lose money by investing in the fund.
Unlike
individual debt securities, which typically pay principal at maturity, the value
of an investment in the fund will fluctuate.
Performance
The
following information is intended to help you understand the risks of investing
in the fund.
The
information illustrates the changes in the performance of the fund's shares from
year to year and compares the performance of the fund's shares to the
performance of a securities market index and a hypothetical composite of market
indexes over various periods of time.
The indexes have characteristics relevant to the fund's investment strategies.
Index descriptions appear in the "Additional Index Information" section of the
prospectus.
Past performance (before and after taxes) is not an indication of future
performance.
The
performance shown does not reflect the impact of any fees paid at the fee-based
account or plan level.
Visit
www.401k.com and log in or www.fidelity.com for
more recent performance information.
Year-by-Year
Returns
|
|
|
|
|
|
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
|
|
|
|
|
1.77%
|
2.39%
|
1.48%
|
0.45%
|
0.49%
|
3.85%
|
|
During
the periods shown in the chart: |
Returns |
Quarter
ended |
|
Highest
Quarter Return |
1.61% |
December
31, 2023 |
|
Lowest
Quarter Return |
-0.59% |
March
31, 2022 |
Average
Annual Returns
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates, but do not reflect the impact of state or local
taxes.
Actual after-tax returns may differ depending on your individual
circumstances.
Return After Taxes on Distributions and Sale of Fund Shares may be higher than
other returns for the same period due to a tax benefit of realizing a capital
loss upon the sale of fund shares.
|
For
the periods ended December 31, 2023 |
Past
1
year |
Past
5
years |
Life
of
fund A |
|
Fidelity
Flex® Conservative Income Municipal Bond Fund |
|
|
|
|
Return
Before Taxes |
3.85%
|
1.72%
|
%
|
|
Return
After Taxes on Distributions |
3.84%
|
1.72%
|
%
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
3.59%
|
1.70%
|
%
|
|
Bloomberg
Municipal Bond 1 Year (1-2 Y) Index
(reflects
no deduction for fees, expenses, or taxes) |
3.39% |
1.34% |
% |
|
Fidelity
Flex Conservative Income Municipal Bond Composite
Index℠
(reflects
no deduction for fees, expenses, or taxes) |
3.39% |
1.36% |
% |
|
|
|
|
|
Investment
Adviser
Fidelity
Management & Research Company LLC (FMR) (the Adviser) is the fund's manager.
Other investment advisers serve as sub-advisers for the fund.
Portfolio
Manager(s)
Elizah
McLaughlin (Co-Portfolio Manager) has managed the fund since 2017.
Ryan
Brogan (Co-Portfolio Manager) has managed the fund since 2021.
Cormac
Cullen (Co-Portfolio Manager) has managed the fund since 2021.
Michael
Maka (Co-Portfolio Manager) has managed the fund since 2021.
Purchase
and Sale of Shares
Shares
are available only to certain fee-based accounts and advisory programs offered
by Fidelity. Shares also may be available to certain broker-dealers that have
entered into arrangements with Fidelity.
You
may buy or sell shares in various ways:
Internet
|
Plan
Accounts: |
All
Other Accounts: |
|
www.401k.com |
www.fidelity.com |
Phone
Plan
Accounts:
For
Individual Accounts (investing through a retirement plan sponsor or other
institution), refer to your plan materials or contact that institution
directly.
For
Retirement Plan Level Accounts:
Corporate
Clients 1-800-962-1375
"Not
for Profit" Clients 1-800-343-0860
All
Other Accounts:
1-800-544-3455
Mail
(Plan Accounts Only)
|
Redemptions:
Fidelity
Investments
P.O.
Box 770001
Cincinnati,
OH 45277-0035 |
Overnight
Express:
Fidelity
Investments
100
Crosby Parkway
Covington,
KY 41015 |
TDD
- Service
for the Deaf and Hearing Impaired
1-800-544-0118
Shares
of the fund are not eligible for purchase by registered investment companies or
business development companies to the extent such acquisition is in reliance on
Rule 12d1-4 under the Investment Company Act of 1940.
The
price to buy one share is its net asset value per share (NAV). Shares will be
bought at the NAV next calculated after an order is received in proper
form.
The
price to sell one share is its NAV. Shares will be sold at the NAV next
calculated after an order is received in proper form.
The
fund is open for business each day the New York Stock Exchange (NYSE) is
open.
There
is no purchase minimum for fund shares.
Tax
Information
The
fund seeks to earn income and pay dividends exempt from federal income tax.
Income exempt from federal income tax may be subject to state or local tax. A
portion of the dividends you receive may be subject to federal and state income
taxes and may also be subject to the federal alternative minimum tax. You may
also receive taxable distributions attributable to the fund's sale of municipal
bonds.
Distributions
by the fund to tax-advantaged retirement plan accounts are not taxable currently
(but you may be taxed later, upon withdrawal of your investment from such
account).
Payments
to Broker-Dealers and Other Financial Intermediaries
The
Adviser, Fidelity Distributors Company LLC (FDC), and/or their affiliates may
pay intermediaries, which may include banks, broker-dealers, retirement plan
sponsors, administrators, or service-providers (who may be affiliated with the
Adviser or FDC), for the sale of fund shares and related services. These
payments may create a conflict of interest by influencing your intermediary and
your investment professional to recommend the fund over another investment.
Currently, the Board of Trustees of the fund has not authorized such payments
for shares of the fund. Ask your investment professional or visit your
intermediary's web site for more information.
Fund
Basics
Investment
Objective
Fidelity
Flex® Conservative Income Municipal Bond Fund seeks to provide a high level of
income, exempt from federal income tax, consistent with preservation of
capital.
Principal
Investment Strategies
The
Adviser normally invests at least 80% of the fund's assets in U.S.
dollar-denominated municipal money market securities and high quality
investment-grade municipal debt securities whose interest is exempt from federal
income tax. The Adviser may invest all of the fund's assets in municipal
securities whose interest is subject to the federal alternative minimum
tax.
The
Adviser uses 50% Bloomberg Municipal Bond 1 Year (1-2 Y) Index / 50%
iMoneyNetSM
All Tax-Free National Retail Money Market Funds Average as a guide in
structuring the fund and selecting its investments. The Adviser manages the fund
to have similar overall interest rate risk to the index.
The
Adviser considers other factors when selecting the fund's investments, including
the credit quality of the issuer, security-specific features, current valuation
relative to alternatives in the market, short-term trading opportunities
resulting from market inefficiencies, and potential future valuation. In
managing the fund's exposure to various risks, including interest rate risk, the
Adviser considers, among other things, the market's overall risk
characteristics, the market's current pricing of those risks, and internal views
of potential future market conditions.
In
addition, the fund normally maintains a dollar-weighted average maturity of one
year or less. As of December 31, 2023, the fund's dollar-weighted average
maturity was approximately 0.8 years and the customized municipal bond index's
dollar-weighted average maturity was approximately 0.8 years.
The
Adviser normally invests the fund's assets in securities with a maximum maturity
of four years.
The
Adviser allocates the fund's assets among different market sectors (for example,
general obligation bonds of a state or bonds financing a specific project) and
different maturities based on its view of the relative value of each sector or
maturity.
The
Adviser may invest more than 25% of the fund's total assets in municipal
securities that finance similar projects, such as those relating to education,
health care, transportation, and utilities.
If
the Adviser's strategies do not work as intended, the fund may not achieve its
objective.
Description
of Principal Security Types
Debt
securities
are used by issuers to borrow money. The issuer usually pays a fixed, variable,
or floating rate of interest, and must repay the amount borrowed, usually at the
maturity of the security. Some debt securities, such as zero coupon bonds,
do not pay current interest but are sold at a discount from their face values.
Municipal debt securities include general obligation bonds of municipalities,
local or state governments, project or revenue-specific bonds, or pre-refunded
or escrowed bonds, municipal money market securities, and other securities
believed to have debt-like characteristics, including hybrids and synthetic
securities.
Money
market securities
are high-quality, short-term securities that pay a fixed, variable, or floating
interest rate. Securities are often specifically structured so that they are
eligible investments for a money market fund. For example, in order to satisfy
the maturity restrictions for a money market fund, some money market securities
have demand or put features, which have the effect of shortening the security's
maturity. Money market securities include bank certificates of deposit, bankers'
acceptances, bank time deposits, notes, commercial paper, and U.S. Government
securities. Certain issuers of U.S. Government securities, including Fannie
Mae, Freddie Mac, and the Federal Home Loan Banks, are sponsored or chartered by
Congress but their securities are neither issued nor guaranteed by the U.S.
Treasury.
Municipal
securities
are issued to raise money for a variety of public and private purposes,
including general financing for state and local governments, or financing for a
specific project or public facility. Municipal securities may be fully or
partially backed by the local government, by the credit of a private issuer, by
the current or anticipated revenues from a specific project or specific assets,
or by domestic or foreign entities providing credit support such as letters of
credit, guarantees, or insurance.
Derivatives
are
investments whose values are tied to an underlying asset, instrument, currency,
or index. Derivatives include futures, options, forwards, and swaps, such
as interest rate swaps (exchanging a floating rate for a fixed rate), total
return swaps (exchanging a floating rate for the total return of an index,
security, or other instrument or investment) and credit default swaps (buying or
selling credit default protection).
Forward-settling
securities involve
a commitment to purchase or sell specific securities when issued, or at a
predetermined price or yield. Payment and delivery take place after the
customary settlement period.
Principal
Investment Risks
Many
factors affect the fund's performance. Developments that disrupt global
economies and financial markets, such as pandemics and epidemics, may magnify
factors that affect a fund's performance. The fund's share price and yield
change daily based on changes in market conditions and interest rates and in
response to other economic, political, or financial developments. The fund's
reaction to these developments will be affected by the types and maturities of
securities in which the fund invests, the financial condition, industry and
economic sector, and geographic location of an issuer, and the fund's level of
investment in the securities of that issuer. Unlike individual debt securities,
which typically pay principal at maturity, the value of an investment in the
fund will fluctuate. When you sell your shares they may be worth more or less
than what you paid for them, which means that you could lose money by investing
in the fund.
The
following factors can significantly affect the fund's performance:
Municipal
Market Volatility. Municipal
securities can be significantly affected by political changes as well as
uncertainties in the municipal market related to taxation, legislative changes,
or the rights of municipal security holders. Because many municipal securities
are issued to finance similar projects, especially those relating to education,
health care, transportation, and utilities, conditions in those sectors can
affect the overall municipal market. Budgetary constraints of local, state, and
federal governments upon which the issuers may be relying for funding may also
impact municipal securities. In addition, changes in the financial condition of
an individual municipal insurer can affect the overall municipal market, and
market conditions may directly impact the liquidity and valuation of municipal
securities.
Interest
Rate Changes.
Debt securities, including money market securities, have varying levels of
sensitivity to changes in interest rates. In general, the price of a debt
security can fall when interest rates rise and can rise when interest rates
fall. Securities with longer maturities can be more sensitive to interest rate
changes, meaning the longer the maturity of a security, the greater the impact a
change in interest rates could have on the security's price. Short-term and
long-term interest rates do not necessarily move in the same amount or the same
direction. Short-term securities tend to react to changes in short-term interest
rates, and long-term securities tend to react to changes in long-term interest
rates. Securities with floating interest rates can be less sensitive to interest
rate changes, but may decline in value if their interest rates do not rise as
much as interest rates in general. In market environments where interest rates
are rising, issuers may be less willing or able to make principal and/or
interest payments on securities when due. Although the transition process away
from certain benchmark rates, including London Interbank Offered Rate (LIBOR)
(an indicative measure of the average interest rate at which major global banks
could borrow from one another), has become increasingly well-defined, any
potential effects of the transition away from LIBOR
and other benchmark rates on financial markets, a fund or the financial
instruments in which a fund invests can be difficult to ascertain and may
adversely impact a fund's performance.
Issuer-Specific
Changes. Changes
in the financial condition of an issuer or counterparty, changes in specific
economic or political conditions that affect a particular type of security or
issuer, and changes in general economic or political conditions can increase the
risk of default by an issuer or counterparty, which can affect a security's or
instrument's credit quality or value. Entities providing credit support or a
maturity-shortening structure also can be affected by these types of changes,
and if the structure of a security fails to function as intended, the security
could decline in value. Municipal securities backed by current or anticipated
revenues from a specific project or specific assets can be negatively affected
by the discontinuance of the taxation supporting the project or assets or the
inability to collect revenues for the project or from the assets. If the
Internal Revenue Service (IRS) determines an issuer of a municipal security has
not complied with applicable tax requirements, interest from the security could
become taxable and the security could decline significantly in
value.
Generally,
the fund purchases municipal securities whose interest, in the opinion of bond
counsel, is free from federal income tax. Neither the Adviser nor the fund
guarantees that this opinion is correct, and there is no assurance that the IRS
will agree with bond counsel's opinion. Issuers or other parties generally enter
into covenants requiring continuing compliance with federal tax requirements to
preserve the tax- free status of interest payments over the life of the
security. If at any time the covenants are not complied with, or if the IRS
otherwise determines that the issuer did not comply with relevant tax
requirements, interest payments from a security could become federally taxable,
possibly retroactively to the date the security was issued. For certain types of
structured securities, the tax status of the pass- through of tax- free income
may also be based on the federal tax treatment of the structure.
Leverage
Risk.
Derivatives and forward-settling securities involve leverage because they can
provide investment exposure in an amount exceeding the initial investment.
Leverage can magnify investment risks and cause losses to be realized more
quickly. A small change in the underlying asset, instrument, or index can lead
to a significant loss. Forward-settling securities also involve the risk that a
security will not be issued, delivered, or paid for when anticipated. Government
legislation or regulation could affect the use of these transactions and could
limit a fund's ability to pursue its investment strategies.
In
response to market, economic, political, or other conditions, a fund may
temporarily use a different investment strategy for defensive purposes. If the
fund does so, different factors could affect its performance, and the fund could
distribute income subject to federal income tax.
Other
Investment Strategies
In
addition to the principal investment strategies discussed above, the Adviser may
invest the fund's assets in municipal debt securities by investing in other
funds.
The
Adviser may invest the fund's assets in lower quality investment-grade
securities.
The
Adviser may also engage in transactions that have a leveraging effect on the
fund, including investments in derivatives, regardless of whether the fund may
own the asset, instrument, or components of the index underlying the derivative,
and forward-settling securities. The fund's derivative investments may include
futures contracts (both long and short positions) on securities and indexes.
Depending on the Adviser's outlook and market conditions, the Adviser may engage
in these transactions to increase or decrease the fund's exposure to changing
security prices, interest rates, credit qualities, or other factors that affect
security values, or to gain or reduce exposure to an asset, instrument, or
index.
Fundamental
Investment Policies
The
following is fundamental, that is, subject to change only by shareholder
approval:
Fidelity
Flex® Conservative Income Municipal Bond Fund seeks to provide a high level of
income, exempt from federal income tax, consistent with preservation of capital.
The fund normally invests at least 80% of its assets in U.S. dollar-denominated
municipal money market securities and high quality investment-grade municipal
debt securities whose interest is exempt from federal income tax.
The
fund is open for business each day the NYSE is open.
The
NAV is the value of a single share. Fidelity normally calculates NAV as of the
close of business of the NYSE, normally 4:00 p.m. Eastern time. The fund's
assets normally are valued as of this time for the purpose of computing
NAV.
NAV
is not calculated and the fund will not process purchase and redemption requests
submitted on days when the fund is not open for business. The time at which
shares are priced and until which purchase and redemption orders are accepted
may be changed as permitted by the Securities and Exchange Commission
(SEC).
To
the extent that the fund's assets are traded in other markets on days when the
fund is not open for business, the value of the fund's assets may be affected on
those days. In addition, trading in some of the fund's assets may not occur on
days when the fund is open for business.
NAV
is calculated using the values of other open-end funds, if any, in which the
fund invests (referred to as underlying funds). Shares of underlying funds are
valued at their respective NAVs. Other assets are valued primarily on the basis
of market quotations, official closing prices, or information furnished by a
pricing service. Certain short-term securities are valued on the basis of
amortized cost. If market quotations, official closing prices, or information
furnished by a pricing service are not readily available or, in the Adviser's
opinion, are deemed unreliable for a security, then that security will be fair
valued in good faith by the Adviser in accordance with applicable fair value
pricing policies. For example, if, in the Adviser's opinion, a security's value
has been materially affected by events occurring before a fund's pricing time
but after the close of the exchange or market on which the security is
principally traded, then that security will be fair valued in good faith by the
Adviser in accordance with applicable fair value pricing policies. Fair value
pricing will be used for high yield debt securities when available pricing
information is determined to be stale or for other reasons not to accurately
reflect fair value.
Arbitrage
opportunities may exist when trading in a portfolio security or securities is
halted and does not resume before a fund calculates its NAV. These arbitrage
opportunities may enable short-term traders to dilute the NAV of long-term
investors. Securities trading in overseas markets, if applicable, present
time zone arbitrage opportunities when events affecting portfolio security
values occur after the close of the overseas markets but prior to the close of
the U.S. market. Fair valuation of a fund's portfolio securities can serve to
reduce arbitrage opportunities available to short-term traders, but there is no
assurance that fair value pricing policies will prevent dilution of NAV by
short-term traders.
Fair
value pricing is based on subjective judgments and it is possible that the fair
value of a security may differ materially from the value that would be realized
if the security were sold.
Shareholder
Information
Additional
Information about the Purchase and Sale of Shares
As
used in this prospectus, the term "shares" generally refers to the shares
offered through this prospectus.
General
Information
Ways
to Invest
Shares
can be purchased only through certain fee-based accounts and advisory
programs offered by Fidelity, including certain employer-sponsored plans
and discretionary investment programs.
Information
on Placing Orders
Certain
methods of contacting Fidelity may be unavailable or delayed (for example,
during periods of unusual market activity). In addition, the level and type of
service available may be restricted.
Frequent
Purchases and Redemptions
The
fund may reject for any reason, or cancel as permitted or required by law, any
purchase or exchange, including transactions deemed to represent excessive
trading, at any time.
Excessive
trading of fund shares can harm shareholders in various ways, including reducing
the returns to long-term shareholders by increasing costs to the fund (such as
brokerage commissions or spreads paid to dealers who sell money market
instruments), disrupting portfolio management strategies, and diluting the value
of the shares in cases in which fluctuations in markets are not fully priced
into the fund's NAV.
The
fund generally invests in liquid money market and short-duration debt securities
and the Adviser anticipates that shareholders may purchase and sell shares of
the fund frequently. Accordingly, the Board of Trustees has not adopted policies
and procedures designed to discourage excessive trading of fund shares and the
fund accommodates frequent trading.
The
fund has no limit on purchase or exchange transactions but may in its discretion
restrict, reject, or cancel any purchases that, in the Adviser's opinion, may be
disruptive to the management of the fund or otherwise not be in the fund's
interests.
The
fund reserves the right at any time to restrict purchases or exchanges or impose
conditions that are more restrictive on excessive trading than those stated in
this prospectus.
Buying
Shares
Eligibility
Shares
are generally available only to investors residing in the United
States.
Shares
are available only to certain fee-based accounts and advisory programs offered
by Fidelity.
Shares
also may be available to certain broker-dealers that have entered into
arrangements with Fidelity.
There
is no minimum balance or purchase minimum for fund shares.
Shares
of the fund are not eligible for purchase by registered investment companies or
business development companies to the extent such acquisition is in reliance on
Rule 12d1-4 under the Investment Company Act of 1940.
Price
to Buy
The
price to buy one share is its NAV. Shares are sold without a sales
charge.
Shares
will be bought at the NAV next calculated after an order is received in proper
form.
The
fund may stop offering shares completely or may offer shares only on a limited
basis, for a period of time or permanently.
Under
applicable anti-money laundering rules and other regulations, purchase orders
may be suspended, restricted, or canceled and the monies may be
withheld.
Selling
Shares
The
price to sell one share is its NAV.
Shares
will be sold at the NAV next calculated after an order is received in proper
form.
Normally,
redemptions will be processed by the next business day, but it may take up to
seven days to pay the redemption proceeds if making immediate payment would
adversely affect the fund.
See
"Policies Concerning the Redemption of Fund Shares" below for additional
redemption information.
A
signature guarantee is designed to protect you and Fidelity from fraud. Fidelity
may require that your request be made in writing and include a signature
guarantee in certain circumstances, such as:
- When
you wish to sell more than $100,000 worth of shares.
- When
the address on your account (record address) has changed within the last 15
days or you are requesting that a check be mailed to an address different than
the record address.
- When
you are requesting that redemption proceeds be paid to someone other than the
account owner.
- In
certain situations when the redemption proceeds are being transferred to a
Fidelity®
brokerage or mutual fund account with a different registration.
You
should be able to obtain a signature guarantee from a bank, broker (including
Fidelity®
Investor Centers), dealer, credit union (if authorized under state law),
securities exchange or association, clearing agency, or savings association. A
notary public cannot provide a signature guarantee.
When
you place an order to sell shares, note the following:
- Redemption
proceeds (other than exchanges) may be delayed until money from prior
purchases sufficient to cover your redemption has been received and
collected.
- Redemptions
may be suspended or payment dates postponed when the NYSE is closed (other
than weekends or holidays), when trading on the NYSE is restricted, or as
permitted by the SEC.
- Redemption
proceeds may be paid in securities or other property rather than in cash if
the Adviser determines it is in the best interests of the fund.
- You
will not receive interest on amounts represented by uncashed redemption
checks.
- Under
applicable anti-money laundering rules and other regulations, redemption
requests may be suspended, restricted, canceled, or processed and the proceeds
may be withheld.
Policies
Concerning the Redemption of Fund Shares
Shares
of the fund are only available to certain fee-based accounts and advisory
programs offered by Fidelity.
A
fund typically expects to pay redemption proceeds on the next business day
following receipt of a redemption order in proper form. Proceeds from the
periodic and automatic sale of shares of a Fidelity®
money
market fund that are used to buy shares of another Fidelity®
fund
are settled simultaneously.
As
noted elsewhere, payment of redemption proceeds may take longer than the time a
fund typically expects and may take up to seven days from the date of receipt of
the redemption order as permitted by applicable law.
Redemption
Methods Available. Generally
a fund expects to pay redemption proceeds in cash. To do so, a fund typically
expects to satisfy redemption requests either by using available cash (or cash
equivalents) or by selling portfolio securities. On a less regular basis, a fund
may also satisfy redemption requests by utilizing one or more of the following
sources, if permitted: borrowing from another Fidelity®
fund;
drawing on an available line or lines of credit from a bank or banks; or using
reverse repurchase agreements. These methods may be used during both normal and
stressed market conditions.
In
addition to paying redemption proceeds in cash, a fund reserves the right to pay
part or all of your redemption proceeds in readily marketable securities instead
of cash (redemption in-kind). Redemption in-kind proceeds will typically be made
by delivering the selected securities to the redeeming shareholder within seven
days after the receipt of the redemption order in proper form by a
fund.
When
your relationship with your managed account adviser or retirement plan sponsor
is terminated, your shares may be sold at the NAV next calculated, in which case
the redemption proceeds will remain in your account pending your instruction.
Withdrawing your investment could have tax consequences for you.
Exchanging
Shares (for Retirement Plans Only)
An
exchange involves the redemption of all or a portion of the shares of one fund
and the purchase of shares of another fund.
Shares
may be exchanged into shares of any Fidelity Flex®
fund available through your plan.
However,
you should note the following policies and restrictions governing
exchanges:
- The
exchange limit may be modified for accounts held by certain institutional
retirement plans to conform to plan exchange limits and Department of Labor
regulations. See your retirement plan materials for further
information.
- The
fund may refuse any exchange purchase for any reason. For example, the fund
may refuse exchange purchases by any person or group if, in the Adviser's
judgment, the fund would be unable to invest the money effectively in
accordance with its investment objective and policies, or would otherwise
potentially be adversely affected.
- Before
any exchange, read the prospectus for the shares you are purchasing, including
any purchase and sale requirements.
- The
shares you are acquiring by exchange must be available for sale in your
state.
- If
you are exchanging between accounts that are not registered in the same name,
address, and taxpayer identification number (TIN), there may be additional
requirements.
- Under
applicable anti-money laundering rules and other regulations, exchange
requests may be suspended, restricted, canceled, or processed and the proceeds
may be withheld.
The
fund may terminate or modify exchange privileges in the future.
Rollover
IRAs (for Retirement Plans Only)
Shares
of the fund are not available to IRA rollover accounts. When your relationship
with your retirement plan sponsor is terminated, your shares may be sold at the
NAV next calculated. Withdrawing your investment could have tax consequences for
you.
The
following apply to you as a shareholder.
Statements
that Fidelity sends to you, if applicable, include the following:
- Confirmation
statements (after transactions affecting your fund balance except reinvestment
of distributions in the fund).
- Monthly
or quarterly account statements (detailing fund balances and all transactions
completed during the prior month or quarter).
You
may initiate many transactions
by telephone or electronically.
Fidelity will not be responsible for any loss, cost, expense, or other liability
resulting from unauthorized transactions if it follows reasonable security
procedures designed to verify the identity of the investor. Fidelity will
request personalized security codes or other information, and may also record
calls. For transactions conducted through the Internet, Fidelity recommends the
use of an Internet browser with 128-bit encryption. You should verify the
accuracy of your confirmation statements upon receipt and notify Fidelity
immediately of any discrepancies in your account activity. If you do not want
the ability to sell and exchange by telephone, call Fidelity for instructions.
Additional documentation may be required from corporations, associations, and
certain fiduciaries.
You
may be asked to provide additional information in order for Fidelity to verify
your identity in accordance with requirements under anti-money laundering
regulations. Accounts may be restricted and/or closed, and the monies withheld,
pending verification of this information or as otherwise required under these
and other federal regulations. In addition, the fund reserves the right to
involuntarily redeem an account in the case of: (i) actual or suspected
threatening conduct or actual or suspected fraudulent, illegal or suspicious
activity by the account owner or any other individual associated with the
account; or (ii) the failure of the account owner to provide information to the
fund related to opening the accounts. Your shares will be sold at the NAV, minus
any applicable shareholder fees, calculated on the day Fidelity closes your fund
position.
Fidelity
may charge a fee
for certain services,
such as providing historical account documents.
Dividends
and Capital Gain Distributions
The
fund earns interest, dividends, and other income from its investments, and
distributes this income (less expenses) to shareholders as dividends. The fund
also realizes capital gains from its investments, and distributes these gains
(less any losses) to shareholders as capital gain distributions.
The
fund normally declares dividends and pays capital gain distributions per the
tables below:
|
Fund
Name |
|
Dividends
Paid |
|
Fidelity
Flex® Conservative Income Municipal Bond Fund |
|
Declares
daily and pays monthly |
|
Fund
Name |
|
Capital
Gains Paid |
|
Fidelity
Flex® Conservative Income Municipal Bond Fund |
|
February,
December |
Earning
Dividends
The
fund processes purchase and redemption requests only on days it is open for
business.
Shares
generally begin to earn dividends on the first business day following the day of
purchase.
Shares
generally earn dividends until, but not including, the next business day
following the day of redemption.
Exchange
requests will be processed only when both funds are open for
business.
Any
dividends and capital gain distributions may be reinvested in additional shares
or paid in cash.
As
with any investment, your investment in the fund could have tax consequences for
you (for non-retirement accounts).
Taxes
on Distributions
The
fund seeks to earn income and pay dividends exempt from federal income
tax.
Income
exempt from federal income tax may be subject to state or local tax. A portion
of the dividends you receive may be subject to federal and state income taxes
and may also be subject to the federal alternative minimum tax. You may also
receive taxable distributions attributable to the fund's sale of municipal
bonds.
For
federal tax purposes, certain distributions, including distributions of
short-term capital gains and gains on the sale of bonds characterized as market
discount, are taxable to you as ordinary income, while certain distributions of
long-term capital gains are taxable to you generally as capital
gains.
If
you buy shares when a fund has realized but not yet distributed income or
capital gains, you will be "buying a dividend" by paying the full price for the
shares and then receiving a portion of the price back in the form of a
potentially taxable distribution.
Any
taxable distributions you receive from the fund will normally be taxable to you
when you receive them.
If
you elect to receive distributions in cash, you will receive certain December
distributions in January, but those distributions will be taxable as if you
received them on December 31.
Taxes
on Transactions
Your
redemptions may result in a capital gain or loss for federal tax purposes (for
non-retirement accounts). A capital gain or loss on your investment in the fund
generally is the difference between the cost of your shares and the price you
receive when you sell them. Exchanges within a tax-advantaged retirement plan
account will not result in a capital gain or loss for federal tax purposes.
Please consult your tax advisor regarding the tax treatment of distributions
from a tax-advantaged retirement plan account.
Fund
Services
The
fund is a mutual fund, an investment that pools shareholders' money and invests
it toward a specified goal.
Adviser
FMR.
The
Adviser is the fund's manager. The address of the Adviser is 245 Summer Street,
Boston, Massachusetts 02210.
As
of December 31, 2022, the Adviser had approximately $3.1 trillion in
discretionary assets under management, and approximately $3.9 trillion when
combined with all of its affiliates' assets under management.
As
the manager, the Adviser has overall responsibility for directing the fund's
investments and handling its business affairs.
Sub-Adviser(s)
FMR
Investment Management (UK) Limited (FMR UK),
at 1 St. Martin's Le Grand, London, EC1A 4AS, United Kingdom, serves as a
sub-adviser for the fund. As of December 31, 2022, FMR UK had approximately
$14.7 billion in discretionary assets under management. FMR UK is an affiliate
of the Adviser.
FMR
UK may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Fidelity
Management & Research (Hong Kong) Limited (FMR H.K.),
at Floor 19, 41 Connaught Road Central, Hong Kong, serves as a sub-adviser for
the fund. As of December 31, 2022, FMR H.K. had approximately $21.4 billion in
discretionary assets under management. FMR H.K. is an affiliate of the
Adviser.
FMR
H.K. may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Fidelity
Management & Research (Japan) Limited (FMR Japan),
at Kamiyacho Prime Place, 1-17, Toranomon-4-Chome, Minato-ku, Tokyo, Japan,
serves as a sub-adviser for the fund. As of March 31, 2023, FMR Japan had
approximately $2.9 billion in discretionary assets under management. FMR Japan
is an affiliate of the Adviser.
FMR
Japan may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Portfolio
Manager(s)
Ryan
Brogan is Co-Portfolio Manager of Fidelity Flex®
Conservative Income Municipal Bond Fund, which he has managed since 2021. He
also manages other funds. Since joining Fidelity Investments in 2005, Mr. Brogan
has worked as a trader and portfolio manager.
Cormac
Cullen is Co-Portfolio Manager of Fidelity Flex®
Conservative Income Municipal Bond Fund, which he has managed since 2021. He
also manages other funds. Since joining Fidelity Investments in 2007, Mr. Cullen
has worked as a research analyst, structured analyst, senior legal counsel, and
portfolio manager.
Michael
Maka is Co-Portfolio Manager of Fidelity Flex®
Conservative Income Municipal Bond Fund, which he has managed since 2021. He
also manages other funds. Since joining Fidelity Investments in 2000, Mr.
Maka has worked as the head of municipal trading and a portfolio
manager.
Elizah
McLaughlin is Co-Portfolio Manager of Fidelity Flex®
Conservative Income Municipal Bond Fund, which she has managed since 2017. She
also manages other funds. Since joining Fidelity Investments in 1997, Ms.
McLaughlin has worked as an analyst and portfolio manager.
The
Statement of Additional Information (SAI) provides additional information about
the compensation of, any other accounts managed by, and any fund shares held by
the portfolio manager(s).
From
time to time a manager, analyst, or other Fidelity employee may express views
regarding a particular company, security, industry, or market sector. The views
expressed by any such person are the views of only that individual as of the
time expressed and do not necessarily represent the views of Fidelity or any
other person in the Fidelity organization. Any such views are subject to change
at any time based upon market or other conditions and Fidelity disclaims any
responsibility to update such views. These views may not be relied on as
investment advice and, because investment decisions for a fund are based on
numerous factors, may not be relied on as an indication of trading intent on
behalf of any fund.
Advisory
Fee(s)
The
fund does not pay a management fee to the Adviser.
The
fund is available through certain fee-based accounts and advisory programs
offered by the Adviser's affiliates. The Adviser is compensated for its services
out of such fees.
The
Adviser receives no fee from the fund for handling the business affairs of the
fund and pays the expenses of the fund with limited exceptions.
The
Adviser pays FMR Investment Management (UK) Limited, Fidelity Management &
Research (Hong Kong) Limited, and Fidelity Management & Research (Japan)
Limited for providing sub-advisory services.
The
basis for the Board of Trustees approving the management contract and
sub-advisory agreements for the fund is available in the fund's semi-annual
report for the fiscal period ended June 30, 2023, in the fund's annual report
for the fiscal period ended December 31, 2023, and will be included in the
fund's semi-annual report for the fiscal period ending June 30, 2024, when
available.
From
time to time, the Adviser or its affiliates may agree to reimburse or waive
certain fund expenses while retaining the ability to be repaid if expenses fall
below the specified limit prior to the end of the fiscal year.
Reimbursement
or waiver arrangements can decrease expenses and boost performance.
FDC
distributes the fund's shares.
Intermediaries
may receive from the Adviser, FDC, and/or their affiliates compensation for
providing recordkeeping and administrative services, as well as other retirement
plan expenses, and compensation for services intended to result in the sale of
fund shares.
These
payments are described in more detail in this section and in the
SAI.
Distribution
and Service Plan(s)
The
fund has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under
the Investment Company Act of 1940 (1940 Act) with respect to its shares that
recognizes that the Adviser may use its management fee revenues, as well as its
past profits or its resources from any other source, to pay FDC for expenses
incurred in connection with providing services intended to result in the sale of
shares of the fund and/or shareholder support services. The Adviser, directly or
through FDC, may pay significant amounts to intermediaries that provide those
services. Currently, the Board of Trustees of the fund has not authorized such
payments for shares of the fund.
If
payments made by the Adviser to FDC or to intermediaries under the Distribution
and Service Plan were considered to be paid out of the fund's assets on an
ongoing basis, they might increase the cost of your investment and might cost
you more than paying other types of sales charges.
From
time to time, FDC may offer special promotional programs to investors who
purchase shares of Fidelity® funds. For example, FDC may offer merchandise,
discounts, vouchers, or similar items to investors who purchase shares of
certain Fidelity® funds during certain periods. To determine if you qualify for
any such programs, contact Fidelity or visit our web site at
www.fidelity.com.
No
dealer, sales representative, or any other person has been authorized to give
any information or to make any representations, other than those contained in
this prospectus and in the related SAI, in connection with the offer contained
in this prospectus. If given or made, such other information or representations
must not be relied upon as having been authorized by the fund or FDC. This
prospectus and the related SAI do not constitute an offer by the fund or by FDC
to sell shares of the fund to, or to buy shares of the fund from, any person to
whom it is unlawful to make such offer.
Appendix
Financial
Highlights are intended to help you understand the financial history of fund
shares for the past 5 years (or, if shorter, the period of operations). Certain
information reflects financial results for a single share. The total returns in
the table represent the rate that an investor would have earned (or lost) on an
investment in shares (assuming reinvestment of all dividends and distributions).
The annual information has been audited by PricewaterhouseCoopers LLP,
independent registered public accounting firm, whose report, along with
fund financial statements, is included in the annual report. Annual reports are
available for free upon request.
|
Fidelity
Flex® Conservative Income Municipal Bond Fund |
|
|
|
Years
ended December 31, |
|
2023
|
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
Selected
Per-Share Data |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of period |
$ |
9.96 |
$ |
10.03 |
$ |
10.04 |
$ |
10.02 |
$ |
9.98 |
|
Income
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) A,B |
|
.320
|
|
.118
|
|
.052
|
|
.121
|
|
.192
|
|
Net
realized and unrealized gain (loss) |
|
.057
|
|
(.069)
|
|
(.007)
|
|
.026
|
|
.044
|
|
Total
from investment operations |
|
.377
|
|
.049
|
|
.045
|
|
.147
|
|
.236
|
|
Distributions
from net investment income |
|
(.316)
|
|
(.119)
|
|
(.054)
|
|
(.125)
|
|
(.193)
|
|
Distributions
from net realized gain |
|
(.001)
|
|
-
|
|
(.001)
|
|
(.002)
|
|
(.003)
|
|
Total
distributions |
|
(.317)
|
|
(.119)
|
|
(.055)
|
|
(.127)
|
|
(.196)
|
|
Net
asset value, end of period |
$ |
10.02 |
$ |
9.96 |
$ |
10.03 |
$ |
10.04 |
$ |
10.02 |
|
Total
Return C |
|
3.85%
|
|
.49%
|
|
.45%
|
|
1.48%
|
|
2.39%
|
|
Ratios
to Average Net Assets B,D,E |
|
|
|
|
|
|
|
|
|
|
|
Expenses
before reductions |
|
.02%
|
|
-%
F |
|
-%
F |
|
-%
F |
|
-%
F |
|
Expenses
net of fee waivers, if any F |
|
-%
|
|
-%
|
|
-%
|
|
-%
|
|
-%
|
|
Expenses
net of all reductions F |
|
-%
|
|
-%
|
|
-%
|
|
-%
|
|
-%
|
|
Net
investment income (loss) |
|
3.21%
|
|
1.19%
|
|
.52%
|
|
1.21%
|
|
1.92%
|
|
Supplemental
Data |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$ |
162,467 |
$ |
149,125 |
$ |
145,602 |
$ |
80,067 |
$ |
54,558 |
|
Portfolio
turnover rate G |
|
78%
|
|
58%
|
|
44%
|
|
36%
|
|
52%
|
ACalculated
based on average shares outstanding during the period.
BNet
investment income (loss) is affected by the timing of the declaration of
dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net
investment income (loss) of any mutual funds or ETFs is not included in the
Fund's net investment income (loss) ratio.
CTotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
DFees
and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are
not included in the Fund's expense ratio. The Fund indirectly bears its
proportionate share of these expenses. For additional expense information
related to investments in Fidelity Central Funds, please refer to the
"Investments in Fidelity Central Funds" note found in the Notes to Financial
Statements section of the most recent Annual or Semi-Annual report.
EExpense
ratios reflect operating expenses of the class. Expenses before reductions do
not reflect amounts reimbursed, waived, or reduced through arrangements with the
investment adviser, brokerage services, or other offset arrangements, if
applicable, and do not represent the amount paid by the class during periods
when reimbursements, waivers or reductions occur.
FAmount
represents less than .005%.
GAmount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
Additional
Index Information
iMoneyNetSM
All Tax-Free National Retail Money Market Funds Average
reflects the performance of mutual funds with similar objectives tracked by
iMoneyNet, Inc.
Bloomberg
Municipal Bond 1 Year (1-2 Y) Index is
a market value-weighted index of investment-grade fixed-rate municipal bonds
with maturities between one and two years.
Fidelity
Flex Conservative Income Municipal Bond Composite IndexSM
is a customized blend of unmanaged indices, weighted as follows:
iMoneyNetSM
All Tax-Free National Retail Money Market Funds Average - 50% and Bloomberg
Municipal Bond 1 Year (1-2 Y) Index - 50%.
|
IMPORTANT
INFORMATION ABOUT OPENING A NEW ACCOUNT
To
help the government fight the funding of terrorism and money laundering
activities, the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA
PATRIOT ACT), requires all financial institutions to obtain, verify, and
record information that identifies each person or entity that opens an
account.
For
individual investors opening an account: When
you open an account, you will be asked for your name, address, date of
birth, and other information that will allow Fidelity to identify you. You
may also be asked to provide documents that may help to establish your
identity, such as your driver's license.
For
investors other than individuals: When
you open an account, you will be asked for the name of the entity, its
principal place of business and taxpayer identification number (TIN). You
will be asked to provide information about the entity's control person and
beneficial owners, and person(s) with authority over the account,
including name, address, date of birth and social security number. You may
also be asked to provide documents, such as drivers' licenses, articles of
incorporation, trust instruments or partnership agreements and other
information that will help Fidelity identify the
entity. |
You
can obtain additional information about the fund. A description of the fund's
policies and procedures for disclosing its holdings is available in its
Statement of Additional Information (SAI) and on Fidelity's web sites. The SAI
also includes more detailed information about the fund and its investments. The
SAI is incorporated herein by reference (legally forms a part of the
prospectus). The fund's annual and semi-annual reports also include additional
information. The fund's annual report includes a discussion of the fund's
holdings and recent market conditions and the fund's investment strategies that
affected performance.
For
a free copy of any of these documents or to request other information or ask
questions about the fund, call Fidelity at 1-800-544-3455 (for managed account
clients) or 1-800-835-5092 (for retirement plan participants). In addition, you
may visit the web site at www.fidelity.com (for managed account clients) or
www.401k.com (for retirement plan participants) for a free copy of a prospectus,
SAI, or annual or semi-annual report or to request other
information.
The
SAI, the fund's annual and semi-annual reports and other related materials
are available from the Electronic Data Gathering, Analysis, and Retrieval
(EDGAR) Database on the SEC's web site (http://www.sec.gov). You can
obtain copies of this information, after paying a duplicating fee, by
sending a request by e-mail to [email protected] or by writing the Public
Reference Section of the SEC, Washington, D.C. 20549-1520. You can also
review and copy information about the fund, including the fund's SAI, at
the SEC's Public Reference Room in Washington, D.C. Call 1-202-551-8090
for information on the operation of the SEC's Public Reference
Room. |
|
Investment
Company Act of 1940, File Number(s), 811-02628 |
Fidelity
Distributors Company LLC (FDC) is a member of the Securities Investor Protection
Corporation (SIPC). You may obtain information about SIPC, including the SIPC
brochure, by visiting www.sipc.org or calling SIPC at 202-371-8300.
Fidelity,
the Fidelity Investments Logo and all other Fidelity trademarks or service marks
used herein are trademarks or service marks of FMR LLC. Any third-party marks
that are used herein are trademarks or service marks of their respective owners.
© 2024 FMR LLC. All rights reserved.
|
1.9884858.108 |
XCB-PRO-0224 |
