Annual Report - Fidelity Investments · PDF fileInvesting Plan Annual Report. The Annual Report reviews the financial highlights of the U.Fund for the period July 1, 2016, through

Annual ReportJune 30, 2017

A Program of theMassachusetts Educational Financing Authority.

Managed by Fidelity Investments®

2Annual Report

Executive Director’s Message to Participants 5Performance: The Bottom Line 6Market Recap 42Fund Talk: The Managers’ Overview 43U.Fund College Portfolio (Fidelity Funds) 46 Investment Summary

47 Investments48 Financial Statements

U.Fund Portfolio 2018 (Fidelity Funds) 50 Investment Summary51 Investments52 Financial Statements







U.Fund Conservative Portfolio (Fidelity Funds) 78 Investment Summary79 Investments80 Financial Statements

U.Fund Moderate Growth Portfolio (Fidelity Funds)

82 Investment Summary83 Investments84 Financial Statements

U.Fund Aggressive Growth Portfolio (Fidelity Funds)


U.Fund Money Market Portfolio 90 Financial StatementsU.Fund College Portfolio (Fidelity Index) 92 Investment Summary


U.Fund Portfolio 2018 (Fidelity Index) 96 Investment Summary97 Investments98 Financial Statements

Contents

3 Annual Report







U.Fund Conservative Portfolio (Fidelity Index) 124 Investment Summary125 Investments126 Financial Statements

U.Fund Moderate Growth Portfolio (Fidelity Index)


U.Fund Aggressive Growth Portfolio (Fidelity Index)


U.Fund Intermediate Treasury Index Portfolio 136 Financial StatementsU.Fund International Index Portfolio 138 Financial StatementsU.Fund Fidelity® 500 Index Portfolio 140 Financial StatementsU.Fund Total Market Index Portfolio 142 Financial StatementsU.Fund Bank Deposit Portfolio 144 Financial StatementsU.Fund College Portfolio (Multi-Firm) 146 Investment Summary


U.Fund Portfolio 2018 (Multi-Firm) 150 Investment Summary151 Investments152 Financial Statements



4Annual Report





Notes to Financial Statements 178Report of Independent Auditors 181

Standard & Poor’s, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third-party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of the Massachusetts Educational Financing Authority or of FMR LLC or an affiliated company. © 2017 FMR LLC. All rights reserved.

This report and the financial statements contained herein are submitted for the general information of the holders of units of the Portfolios. This report is not authorized for distribution to prospective participants in the Portfolios unless preceded or accompanied by a current Fact Kit.

Portfolio units are not deposits or obligations of, or guaranteed by, any depository institution. Units are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Although the underlying deposits are eligible for FDIC insurance, subject to applicable federal deposit insurance limits, the Units of the Bank Deposit Portfolio are not insured or guaranteed by the FDIC or any other government agency. You are responsible for monitoring the total amount of your assets on deposit at the depository bank, including amounts held directly at the depository bank. All such deposits held in the same ownership capacity at the depository bank are subject to aggregation and to the current FDIC insurance coverage limitation of $250,000. Please see a 529 Fact Kit for more details.

Neither the Portfolios, the mutual funds in which they invest, nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including objectives, risks, charges and expenses, call 1-800-544-8888 for a free prospectus. For more information on the U.Fund, including objectives, risks, charges, and expenses, call 1-800-544-2776 for a free Fact Kit. Read it carefully before you invest or send money.

5 Annual Report

Executive Director’s Message to Participants

Dear Participant:

On behalf of the Massachusetts Educational Financing Authority (MEFA), it is my pleasure to present you with the U.Fund College Investing Plan Annual Report. The Annual Report reviews the financial highlights of the U.Fund for the period July 1, 2016, through June 30, 2017, including the performance of the investment portfolios, along with expense, holdings and asset allocation information. Also included is the Managers’ Overview, a discussion with U.Fund Portfolio Managers Andrew Dierdorf and Brett Sumsion, which offers insight into the performance of the Portfolios and the markets over the past year, as well as an outlook for the months ahead.

We are pleased to offer U.Fund participants a diverse selection of investments to help you achieve your college savings goals. The U.Fund College Investing Plan includes age-based and risk-based, or “static,” Portfolios that are invested in Fidelity mutual funds, as well as age-based Multi-Firm Portfolios that invest in mutual funds from a broad range of investment companies. In addition, the U.Fund offers Index Portfolios that are invested in Fidelity index funds.

During the year, Fidelity made some contractual changes affecting the lineup of underlying investments available to Multi-Firm Portfolios. Multi-Firm Portfolios were launched in 2011 to provide U.Fund participants with options that included fund families beyond Fidelity. As the mutual fund market continues to evolve, less-expensive share classes have become more broadly available across fund companies. The contractual changes allow U.Fund Co-Portfolio Managers to leverage a broader array of mutual funds, including those that have lower expense ratios. The net result should be a reduction in expenses paid by Participants.

Also, as announced on July 6, 2016, total asset-based fees for Fidelity Index Portfolios within Fidelity-managed direct-sold 529 plans have dropped by 30% to 52%. This reduction is the result of recent enhancements made to Fidelity’s overall index fund line-up, now providing Fidelity’s 529 Index Portfolios access to lower-priced share classes for underlying mutual funds, as well as a drop in total net expenses for those funds.

As a reminder, four additional underlying portfolio managers became involved in the fund selection process for the U.Fund’s Multi-Firm Portfolios starting in 2016. Andrew Dierdorf and Brett Sumsion continue to manage asset allocation, fund oversight and portfolio manage-ment. The new portfolio managers include John Stone (U.S. Equity), Wilfred Chilangwa (International and Emerging Markets), Gregory Pappas (Fixed Income), and Larry Rakers (Commodities). In addition, we made a change to the money market fund used in all 529 age-based portfolios in response to recent money market reform. All age-based portfolios now include FIMM Government Money Market in place of FIMM Money Market.

Lastly, we are pleased to announce the launch of age-based Portfolio 2036, available across Fidelity Funds, Multi-Firm and Fidelity Index platforms and intended primarily for beneficiaries with a birth year of 2017 to 2019.

The investment options in the U.Fund provide you with a variety of investment choices, including sophisticated age-based solutions directly linked to objective-based investment approach to help achieve your savings goals for your higher education expenses.

And as you know, U.Fund earnings grow tax deferred, and withdrawals for qualified higher-education expenses — such as tuition, books, and room and board costs — are exempt from federal income tax and, for Massachusetts residents, state income tax. Also, as of January 1, 2017 and through the 2021 tax year, Massachusetts residents may deduct up to $1,000 (filing single) or $2,000 (filing married/joint) from their annual taxable income for Massachusetts state income tax purposes when making a contribution to their Massachusetts 529 college savings plan account.

We encourage you to call Fidelity’s dedicated College Planning Specialists at 1-800-544-2776 for a personalized review of your specific col-lege savings goals or with any questions about the U.Fund.

On behalf of MEFA, the Commonwealth’s Authority on helping families plan, save and pay for college, thank you for choosing the U.Fund College Investing Plan.

Sincerely,

Thomas M. Graf

Executive Director

MEFA

6Annual Report

U.Fund College Portfolio (Fidelity Funds)

Performance: The Bottom Line

Understanding PerformanceHow a portfolio did yesterday is no guarantee of how it will do tomorrow. The stock market, for example, has a history of long-term growth and short-term volatility. In turn, the unit price and return of a portfolio that invests in stocks will vary. That means if you sell your units during a market downturn, you might lose money. But if you can ride out the market’s ups and downs, you may have a gain.

PerformanceThere are several ways to evaluate a portfolio’s historical perfor-mance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment.

Cumulative Total ReturnsPeriods ended June 30, 2017 Past 1

yearPast 5 years

Past 10 years

U.Fund College Portfolio (Fidelity Funds) 4.91% 19.55% 38.56%

U.Fund College Portfolio Composite Index 3.62% 18.68% 38.95%

MSCI ACWI (All Country World Index) ex USA Index 20.66% 42.71% 13.49%

Bloomberg Barclays U.S. 3 Month Treasury Bellwether Index 0.50% 0.95% 6.34%

Dow Jones U.S. Total Stock Market IndexSM 18.52% 96.85% 102.67%

Bloomberg Barclays U.S. Aggregate Bond Index -0.31% 11.57% 54.97%

Cumulative total returns show the Portfolio’s performance in per-centage terms over the periods shown. For example, if you invested $1,000 in a portfolio that had a 5% return over the past year, the value of your investment would be $1,050.

You can compare the Portfolio’s return to the performance of the U.Fund College Portfolio Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodi-cally to reflect the Portfolio’s changing asset allocation.

Average Annual Total ReturnsPeriods ended June 30, 2017 Past 1

yearPast 5 years

Past 10 years

U.Fund College Portfolio (Fidelity Funds) 4.91% 3.64% 3.32%U.Fund College Portfolio Composite

Index 3.62% 3.48% 3.34%MSCI ACWI (All Country World Index)

ex USA Index 20.66% 7.37% 1.27%Bloomberg Barclays U.S. 3 Month

Treasury Bellwether Index 0.50% 0.19% 0.62%Dow Jones U.S. Total Stock Market

IndexSM 18.52% 14.51% 7.32%Bloomberg Barclays U.S. Aggregate

Bond Index -0.31% 2.21% 4.48%

Average annual total returns take the Portfolio’s cumulative return and show you what would have happened if the Portfolio had performed at a constant rate each year.

$10,000 Over 10 Years

Period Ending Values $13,856 U Fund College Portfolio (Fidelity Funds) $13,895 U.Fund College Portfolio Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund College Portfolio (Fidelity Funds) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund College Portfolio Composite Index performed over the same period.

7 Annual Report

U.Fund Portfolio 2018 (Fidelity Funds)





yearPast 5 years

Past 10 years

U.Fund Portfolio 2018 (Fidelity Funds) 6.44% 34.14% 38.84%U.Fund Portfolio 2018 Composite

Index 4.84% 32.25% 42.50%Dow Jones U.S. Total Stock Market


Bond Index -0.31% 11.57% 54.97%MSCI ACWI (All Country World

Index) ex USA Index 20.66% 42.71% 13.49%Bloomberg Barclays U.S. 3 Month

Treasury Bellwether Index 0.50% 0.95% 6.34%


You can compare the Portfolio’s return to the performance of the U.Fund Portfolio 2018 Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodi-cally to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund Portfolio 2018 (Fidelity Funds) 6.44% 6.05% 3.34%U.Fund Portfolio 2018 Composite Index 4.84% 5.75% 3.61%Dow Jones U.S. Total Stock Market


Bond Index -0.31% 2.21% 4.48%MSCI ACWI (All Country World Index)





Period Ending Values $13,884 U.Fund Portfolio 2018 (Fidelity Funds) $14,250 U.Fund Portfolio 2018 Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Portfolio 2018 (Fidelity Funds) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Portfolio 2018 Composite Index performed over the same period.

8Annual Report






yearPast 5 years

Past 10 years




Bond Index -0.31% 11.57% 54.97%Bloomberg Barclays U.S. 3 Month

Treasury Bellwether Index 0.50% 0.95% 6.34%MSCI ACWI (All Country World

Index) ex USA Index 20.66% 42.71% 13.49%




yearPast 5 years

Past 10 years



Bond Index -0.31% 2.21% 4.48%Bloomberg Barclays U.S. 3 Month

Treasury Bellwether Index 0.50% 0.19% 0.62%MSCI ACWI (All Country World Index)

ex USA Index 20.66% 7.37% 1.27%






9 Annual Report






yearPast 5 years

Past 10 years




Bond Index -0.31% 11.57% 54.97%MSCI ACWI (All Country World






yearPast 5 years

Past 10 years



Bond Index -0.31% 2.21% 4.48%MSCI ACWI (All Country World Index)








10Annual Report






yearPast 5 years Life of Portfolio

U.Fund Portfolio 2027 (Fidelity Funds) 14.26% 64.47% 54.60%

U.Fund Portfolio 2027 Composite Index 12.00% 61.62% 65.08%
















$10,000 Over Life of Portfolio


Life of Portfolio: Let’s say hypothetically that $10,000 was invested in U.Fund Portfolio 2027 (Fidelity Funds) on December 14, 2007, when the Portfolio started.


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12Annual Report






year Life of Portfolio

U.Fund Portfolio 2033 (Fidelity Funds) 19.36% 30.70%U.Fund Portfolio 2033 Composite Index 16.99% 30.36%Bloomberg Barclays U.S. Aggregate Bond

Index -0.31% 11.58%Dow Jones U.S. Total Stock Market IndexSM 18.52% 41.75%MSCI ACWI (All Country World Index) ex

USA Index 20.66% 12.41%





U.Fund Portfolio 2033 (Fidelity Funds) 19.36% 7.87%U.Fund Portfolio 2033 Composite Index 16.99% 7.79%Bloomberg Barclays U.S. Aggregate Bond

Index -0.31% 3.15%Dow Jones U.S. Total Stock Market IndexSM 18.52% 10.38%MSCI ACWI (All Country World Index) ex

USA Index 20.66% 3.36%






13 Annual Report





Cumulative Total ReturnsPeriods ended June 30, 2017 Life of Portfolio

U.Fund Portfolio 2036 (Fidelity Funds) 12.60%U.Fund Portfolio 2036 Composite Index 9.57%Dow Jones U.S. Total Stock Market IndexSM 8.46%MSCI ACWI (All Country World Index) ex USA Index 13.35%Bloomberg Barclays U.S. Aggregate Bond Index 2.98%


You can compare the Portfolio’s return to the performance of the U.Fund Portfolio 2036 Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodi-cally to reflect the Portfolio’s changing asset allocation. The returns for the Life of Portfolio period are from December 14, 2016 to June 30, 2017.


These numbers will be reported once the Portfolio is a year old. In addition, the growth of a hypothetical $10,000 investment in the Portfolio will appear.

14Annual Report

U.Fund Conservative Portfolio (Fidelity Funds)





yearPast 5 years

Past 10 years

U.Fund Conservative Portfolio (Fidelity Funds) 0.85% 6.63% 27.58%

U.Fund Conservative Portfolio (Fidelity Funds) Composite Index 0.14% 5.88% 26.01%




You can compare the Portfolio’s return to the performance of the U.Fund Conservative Portfolio (Fidelity Funds) Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund Conservative Portfolio (Fidelity Funds) 0.85% 1.29% 2.47%

U.Fund Conservative Portfolio (Fidelity Funds) Composite Index 0.14% 1.15% 2.34%





Period Ending Values $12,758 U.Fund Conservative Portfolio (Fidelity Funds) $12,601 U.Fund Conservative Portfolio (Fidelity Funds) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Conservative Portfolio (Fidelity Funds) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Conservative Portfolio (Fidelity Funds) Composite Index performed over the same period.

15 Annual Report






yearPast 5 years

Past 10 years

U.Fund Moderate Growth Portfolio (Fidelity Funds) 14.82% 59.34% 64.34%

U.Fund Moderate Growth Portfolio (Fidelity Funds) Composite Index 13.06% 57.67% 71.76%





You can compare the Portfolio’s return to the performance of the U.Fund Moderate Growth Portfolio (Fidelity Funds) Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund Moderate Growth Portfolio (Fidelity Funds) 14.82% 9.76% 5.09%

U.Fund Moderate Growth Portfolio (Fidelity Funds) Composite Index 13.06% 9.53% 5.56%






Period Ending Values $16,434 U.Fund Moderate Growth Portfolio (Fidelity Funds) $17,176 U.Fund Moderate Growth Portfolio (Fidelity Funds) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Moderate Growth Portfolio (Fidelity Funds) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Moderate Growth Portfolio (Fidelity Funds) Composite Index performed over the same period.

16Annual Report






yearPast 5 years

Past 10 years

U.Fund Aggressive Growth Portfolio (Fidelity Funds) 20.39% 80.00% 59.20%

U.Fund Aggressive Growth Portfolio (Fidelity Funds) Composite Index 19.24% 77.50% 68.39%




You can compare the Portfolio’s return to the performance of the U.Fund Aggressive Growth Portfolio (Fidelity Funds) Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U Fund Aggressive Growth Portfolio (Fidelity Funds) 20.39% 12.47% 4.76%

U.Fund Aggressive Growth Portfolio (Fidelity Funds) Composite Index 19.24% 12.16% 5.35%





Period Ending Values $15,920 U.Fund Aggressive Growth Portfolio (Fidelity Funds) $16,839 U.Fund Aggressive Growth Portfolio (Fidelity Funds) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Aggressive Growth Portfolio (Fidelity Funds) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Aggressive Growth Portfolio (Fidelity Funds) Composite Index performed over the same period.

17 Annual Report

U.Fund Money Market Portfolio



PerformanceThe information provided in the tables below shows you the perfor-mance of the Portfolio with comparisons over different time periods to the portfolio’s relevant benchmark. Seeing the returns over dif-ferent time periods can help you assess the portfolio’s performance across multiple market environments. The performance information is presented in two ways – cumulative total returns and average annual total returns.


yearPast 5 years

Past 10 years

U.Fund Money Market Portfolio 0.09% 0.18% 5.53%Bloomberg Barclays U.S. 3 Month Treasury

Bellwether Index 0.50% 0.95% 6.34%


You can compare the Portfolio’s return to the performance of the Bloomberg Barclays U.S. 3 Month Treasury Bellwether Index. The benchmark includes reinvested dividends and capital gains, if any.


yearPast 5 years

Past 10 years

U.Fund Money Market Portfolio 0.09% 0.04% 0.54%Bloomberg Barclays U.S. 3 Month Treasury

Bellwether Index 0.50% 0.19% 0.62%


18Annual Report

U.Fund College Portfolio (Fidelity Index)





yearPast 5 years

Past 10 years

U.Fund College Portfolio (Fidelity Index) 3.16% 16.03% 41.11%

U.Fund College Portfolio (Fidelity Index) Composite Index 3.36% 17.20% 43.30%


MSCI EAFE Index 20.51% 52.85% 12.47%Bloomberg Barclays U.S. 3 Month

Treasury Bellwether Index 0.50% 0.95% 6.34%Bloomberg® Commodity Index Total

Return -6.50% -38.45% -48.89%Bloomberg Barclays U.S.

Aggregate Bond Index -0.31% 11.57% 54.97%


You can compare the Portfolio’s return to the performance of the U.Fund College Portfolio (Fidelity Index) Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund College Portfolio (Fidelity Index) 3.16% 3.02% 3.50%

U.Fund College Portfolio (Fidelity Index) Composite Index 3.36% 3.22% 3.66%




Return -6.50% -9.25% -6.49%Bloomberg Barclays U.S. Aggregate

Bond Index -0.31% 2.21% 4.48%



Period Ending Values $14,111 U.Fund College Portfolio (Fidelity Index) $14,330 U.Fund College Portfolio (Fidelity Index) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund College Portfolio (Fidelity Index) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund College Portfolio (Fidelity Index) Composite Index performed over the same period.

19 Annual Report

U.Fund Portfolio 2018 (Fidelity Index)





yearPast 5 years

Past 10 years

U.Fund Portfolio 2018 (Fidelity Index) 4.32% 29.13% 42.32%

U.Fund Portfolio 2018 (Fidelity Index) Composite Index 4.56% 30.60% 45.69%







You can compare the Portfolio’s return to the performance of the U.Fund Portfolio 2018 (Fidelity Index) Composite Index, an approxi-mate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested divi-dends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund Portfolio 2018 (Fidelity Index) 4.32% 5.25% 3.59%U.Fund Portfolio 2018 (Fidelity Index)

Composite Index 4.56% 5.48% 3.83%Dow Jones U.S. Total Stock Market

IndexSM 18.52% 14.51% 7.32%MSCI EAFE Index 20.51% 8.86% 1.18%Bloomberg Barclays U.S. 3 Month



Bond Index -0.31% 2.21% 4.48%



Period Ending Values $14,232 U.Fund Portfolio 2018 (Fidelity Index) $14,569 U.Fund Portfolio 2018 (Fidelity Index) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Portfolio 2018 (Fidelity Index) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Portfolio 2018 (Fidelity Index) Composite Index performed over the same period.

20Annual Report






yearPast 5 years

Past 10 years











yearPast 5 years

Past 10 years






Bond Index -0.31% 2.21% 4.48%






21 Annual Report






yearPast 5 years

Past 10 years











yearPast 5 years

Past 10 years






Bond Index -0.31% 2.21% 4.48%






22Annual Report










MSCI EAFE Index 20.51% 52.85% 12.54%Bloomberg® Commodity Index

Total Return -6.50% -38.45% -52.91%Bloomberg Barclays U.S.

Aggregate Bond Index -0.31% 11.57% 48.13%Bloomberg Barclays U.S. 3 Month









MSCI EAFE Index 20.51% 8.86% 1.24%Bloomberg® Commodity Index Total







Life of Portfolio: Let’s say hypothetically that $10,000 was invested in U.Fund Portfolio 2027 (Fidelity Index) on December 14, 2007, when the Portfolio started.


23 Annual Report









MSCI EAFE Index 20.51% 52.85% 39.56%Dow Jones U.S. Total Stock

Market IndexSM 18.52% 96.85% 117.58%Bloomberg® Commodity Index

Total Return -6.50% -38.45% -48.04%Bloomberg Barclays U.S.








MSCI EAFE Index 20.51% 8.86% 5.25%Dow Jones U.S. Total Stock Market

IndexSM 18.52% 14.51% 12.68%Bloomberg® Commodity Index Total








24Annual Report







U.Fund Portfolio 2033 (Fidelity Index) 16.41% 27.70%U.Fund Portfolio 2033 (Fidelity Index)

Composite Index 16.58% 28.50%Dow Jones U.S. Total Stock Market IndexSM 18.52% 41.75%MSCI EAFE Index 20.51% 13.63%Bloomberg Barclays U.S. Aggregate Bond

Index -0.31% 11.58%Bloomberg® Commodity Index Total Return -6.50% -33.93%





U.Fund Portfolio 2033 (Fidelity Index) 16.41% 7.16%U.Fund Portfolio 2033 (Fidelity Index)

Composite Index 16.58% 7.35%Dow Jones U.S. Total Stock Market IndexSM 18.52% 10.38%MSCI EAFE Index 20.51% 3.68%Bloomberg Barclays U.S. Aggregate Bond

Index -0.31% 3.15%Bloomberg® Commodity Index Total Return -6.50% -11.07%






25 Annual Report






U.Fund Portfolio 2036 (Fidelity Index) 9.80%U.Fund Portfolio 2036 (Fidelity Index) Composite Index 9.35%Dow Jones U.S. Total Stock Market IndexSM 8.46%MSCI EAFE Index 13.27%Bloomberg Barclays U.S. Aggregate Bond Index 2.98%Bloomberg® Commodity Index Total Return -5.36%


You can compare the Portfolio’s return to the performance of the U.Fund Portfolio 2036 (Fidelity Index) Composite Index, an approxi-mate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested divi-dends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation. The returns for the Life of Portfolio period are from December 14, 2016 to June 30, 2017.



26Annual Report

U.Fund Conservative Portfolio (Fidelity Index)





yearPast 5 years

Past 10 years

U.Fund Conservative Portfolio (Fidelity Index) -0.08% 4.73% 29.69%

U.Fund Conservative Portfolio (Fidelity Index) Composite Index 0.14% 5.65% 31.74%




You can compare the Portfolio’s return to the performance of the U.Fund Conservative Portfolio (Fidelity Index) Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund Conservative Portfolio (Fidelity Index) -0.08% 0.93% 2.63%

U.Fund Conservative Portfolio (Fidelity Index) Composite Index 0.14% 1.11% 2.79%





Period Ending Values $12,969 U.Fund Conservative Portfolio (Fidelity Index) $13,174 U.Fund Conservative Portfolio (Fidelity Index) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Conservative Portfolio (Fidelity Index) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Conservative Portfolio (Fidelity Index) Composite Index performed over the same period.

27 Annual Report






yearPast 5 years

Past 10 years

U.Fund Moderate Growth Portfolio (Fidelity Index) 12.43% 54.37% 70.88%

U.Fund Moderate Growth Portfolio (Fidelity Index) Composite Index 12.70% 56.10% 75.33%






You can compare the Portfolio’s return to the performance of the U.Fund Moderate Growth Portfolio (Fidelity Index) Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund Moderate Growth Portfolio (Fidelity Index) 12.43% 9.07% 5.50%

U.Fund Moderate Growth Portfolio (Fidelity Index) Composite Index 12.70% 9.32% 5.78%




Bond Index -0.31% 2.21% 4.48%



Period Ending Values $17,088 U.Fund Moderate Growth Portfolio (Fidelity Index) $17,533 U.Fund Moderate Growth Portfolio (Fidelity Index) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Moderate Growth Portfolio (Fidelity Index) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Moderate Growth Portfolio (Fidelity Index) Composite Index performed over the same period.

28Annual Report






yearPast 5 years

Past 10 years

U.Fund Aggressive Growth Portfolio (Fidelity Index) 18.58% 76.79% 65.56%

U.Fund Aggressive Growth Portfolio (Fidelity Index) Composite Index 18.81% 78.37% 69.11%



Return -6.50% -38.45% -48.89%


You can compare the Portfolio’s return to the performance of the U.Fund Aggressive Growth Portfolio (Fidelity Index) Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodically to reflect the Portfolio’s changing asset allocation.


yearPast 5 years

Past 10 years

U.Fund Aggressive Growth Portfolio (Fidelity Index) 18.58% 12.07% 5.17%

U.Fund Aggressive Growth Portfolio (Fidelity Index) Composite Index 18.81% 12.27% 5.39%



Return -6.50% -9.25% -6.49%



Period Ending Values $16,556 U.Fund Aggressive Growth Portfolio (Fidelity Index) $16,911 U.Fund Aggressive Growth Portfolio (Fidelity Index) Composite Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Aggressive Growth Portfolio (Fidelity Index) on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the U.Fund Aggressive Growth Portfolio (Fidelity Index) Composite Index performed over the same period.

29 Annual Report

U.Fund Intermediate Treasury Index Portfolio





yearPast 5 years

Past 10 years

U.Fund Intermediate Treasury Index Portfolio -3.18% 6.18% 59.74%

Bloomberg Barclays U.S. 5-10 Year Treasury Bond Index -2.94% 7.75% 65.80%


You can compare the Portfolio’s return to the performance of the Bloomberg Barclays U.S. 5-10 Year Treasury Bond Index. The bench-mark includes reinvested dividends and capital gains, if any.


yearPast 5 years

Past 10 years

U.Fund Intermediate Treasury Index Portfolio -3.18% 1.21% 4.80%

Bloomberg Barclays U.S. 5-10 Year Treasury Bond Index -2.94% 1.50% 5.19%



Period Ending Values $15,974 U.Fund Intermediate Treasury Index Portfolio $16,580 Bloomberg Barclays U.S. 5-10 Year Treasury Bond Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Intermediate Treasury Index Portfolio on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the Bloomberg Barclays U.S. 5-10 Year Treasury Bond Index performed over the same period.

30Annual Report

U.Fund International Index Portfolio





yearPast 5 years

Past 10 years

U.Fund International Index Portfolio 20.00% 51.05% 9.69%MSCI EAFE Index 20.51% 52.85% 12.47%


You can compare the Portfolio’s return to the performance of the MSCI EAFE Index. The benchmark includes reinvested dividends and capital gains, if any.


yearPast 5 years

Past 10 years

U.Fund International Index Portfolio 20.00% 8.60% 0.93%MSCI EAFE Index 20.51% 8.86% 1.18%



Period Ending Values $10,969 U.Fund International Index Portfolio $11,247 MSCI EAFE Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund International Index Portfolio on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the MSCI EAFE Index performed over the same period.

31 Annual Report

U.Fund Fidelity® 500 Index Portfolio





yearPast 5 years

Past 10 years

U.Fund Fidelity® 500 Index Portfolio 17.76% 96.16% 95.10%S&P 500® Index 17.90% 97.92% 100.08%


You can compare the Portfolio’s return to the performance of the S&P 500® Index. The benchmark includes reinvested dividends and capital gains, if any.


yearPast 5 years

Past 10 years

U.Fund Fidelity® 500 Index Portfolio 17.76% 14.43% 6.91%S&P 500® Index 17.90% 14.63% 7.18%



Period Ending Values $19,510 U.Fund Fidelity® 500 Index Portfolio $20,008 S&P 500® Index

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Fidelity® 500 Index Portfolio on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the S&P 500® Index performed over the same period.

32Annual Report

U.Fund Total Market Index Portfolio





yearPast 5 years

Past 10 years

U.Fund Total Market Index Portfolio 18.44% 95.54% 97.48%Dow Jones U.S. Total Stock Market

IndexSM 18.52% 96.85% 102.67%


You can compare the Portfolio’s return to the performance of the Dow Jones U.S. Total Stock Market IndexSM. The benchmark includes reinvested dividends and capital gains, if any.


yearPast 5 years

Past 10 years

U.Fund Total Market Index Portfolio 18.44% 14.35% 7.04%Dow Jones U.S. Total Stock Market

IndexSM 18.52% 14.51% 7.32%



Period Ending Values $19,748 U.Fund Total Market Index Portfolio $20,267 Dow Jones U.S. Total Stock Market IndexSM

Past 10 Years: Let’s say hypothetically that $10,000 was invested in U.Fund Total Market Index Portfolio on June 30, 2007 (past ten year period).

The chart shows how the value of that investment would have changed, and also shows how the Dow Jones U.S. Total Stock Market IndexSM performed over the same period.

33 Annual Report

U.Fund Bank Deposit Portfolio



PerformanceThe information provided in the tables below shows you the perfor-mance of the Portfolio with comparisons over different time periods. Seeing the returns over different time periods can help you assess the portfolio’s performance across multiple market environments. The performance information is presented in two ways – cumulative total returns and average annual total returns.



U.Fund Bank Deposit Portfolio 0.40% 0.90% 1.10%


The Portfolio’s returns are for the one-year and five-year periods ending June 30, 2017 and for the Life of Portfolio period from September 16, 2010 to June 30, 2017.



U.Fund Bank Deposit Portfolio 0.40% 0.18% 0.16%


34Annual Report

U.Fund College Portfolio (Multi-Firm)






U.Fund College Portfolio (Multi-Firm) 5.23% 18.74% 24.80%U.Fund College Portfolio Composite

Index 3.62% 18.68% 24.31%MSCI ACWI (All Country World



IndexSM 18.52% 96.85% 137.24%Bloomberg Barclays U.S.



You can compare the Portfolio’s return to the performance of the U.Fund College Portfolio Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodi-cally to reflect the Portfolio’s changing asset allocation.



U.Fund College Portfolio (Multi-Firm) 5.23% 3.50% 3.92%U.Fund College Portfolio Composite








Period Ending Values $12,480 U.Fund College Portfolio (Multi-Firm) $12,431 U.Fund College Portfolio Composite Index

Life of Portfolio: Let’s say hypothetically that $10,000 was invested in U.Fund College Portfolio (Multi-Firm) on September 28, 2011, when the Portfolio started.

The chart shows how the value of that investment would have changed, and also shows how the U.Fund College Portfolio Composite Index performed over the same period.

35 Annual Report

U.Fund Portfolio 2018 (Multi-Firm)






U.Fund Portfolio 2018 (Multi-Firm) 6.47% 31.88% 44.80%U.Fund Portfolio 2018 Composite



Aggregate Bond Index -0.31% 11.57% 15.84%MSCI ACWI (All Country World















Period Ending Values $14,480 U.Fund Portfolio 2018 (Multi-Firm) $14,520 U.Fund Portfolio 2018 Composite Index

Life of Portfolio: Let’s say hypothetically that $10,000 was invested in U.Fund Portfolio 2018 (Multi-Firm) on September 28, 2011, when the Portfolio started.


36Annual Report




























37 Annual Report




























38Annual Report




























39 Annual Report









Index) ex USA Index 20.66% 42.71% 50.16%Dow Jones U.S. Total Stock Market









Index) ex USA Index 20.66% 7.37% 7.31%Dow Jones U.S. Total Stock Market








40Annual Report







U.Fund Portfolio 2033 (Multi-Firm) 18.27% 26.90%U.Fund Portfolio 2033 Composite Index 16.99% 30.36%Dow Jones U.S. Total Stock Market IndexSM 18.52% 41.75%MSCI ACWI (All Country World Index) ex

USA Index 20.66% 12.41%Bloomberg Barclays U.S. Aggregate Bond

Index -0.31% 11.58%





U.Fund Portfolio 2033 (Multi-Firm) 18.27% 6.97%U.Fund Portfolio 2033 Composite Index 16.99% 7.79%Dow Jones U.S. Total Stock Market IndexSM 18.52% 10.38%MSCI ACWI (All Country World Index) ex

USA Index 20.66% 3.36%Bloomberg Barclays U.S. Aggregate Bond

Index -0.31% 3.15%




Life of Portfolio: Let’s say hypothetically that $10,000 was invested in U.Fund Portfolio 2033 (Multi-Firm) on December 18, 2013, when the Portfolio started.


41 Annual Report




There are several ways to evaluate a portfolio’s historical perfor-mance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment.


U.Fund Portfolio 2036 (Multi-Firm) 10.90%U.Fund Portfolio 2036 Composite Index 9.57%Dow Jones U.S. Total Stock Market IndexSM 8.46%MSCI ACWI (All Country World Index) ex USA Index 13.35%Bloomberg Barclays U.S. Aggregate Bond Index 2.98%


You can compare the Portfolio’s return to the performance of the U.Fund Portfolio 2036 Composite Index, an approximate weighted combination of the unmanaged indices as noted in the total return table above. These benchmarks include reinvested dividends and capital gains, if any. The index weightings may be adjusted periodi-cally to reflect the Portfolio’s changing asset allocation. The returns for the Life of Portfolio period are from December 14, 2016 to June 30, 2017.



42Annual Report

Market Recap

For the 12 months ending June 30, 2017, a continued synchronized expansion in global economic activity provided a favorable environment for asset markets. Flagging energy prices and muted inflation mitigated concerns about potential overheating. An unsettled political environment ahead of the U.S. presidential election spurred market turbulence last autumn, but stocks rose sharply beginning in early November, largely due to optimism that U.S. economic growth and corporate earnings would accelerate. At the start of the new year, investor sentiment was decidedly favorable amid a steady, tranquil backdrop that included unusually low volatility for most asset markets, as well as decelerating inflation and ample global monetary accommodation. Bolstered by a weaker dollar in 2017, non-U.S. equities – particularly in emerging markets – led the global stock market rally. As of June 30, 2017, most developed economies appear to be in the more mature (mid-to-late) stages of the business cycle. China’s economy remains broadly steady, the eurozone is on a mid-cycle upswing and the U.S. remains a mix of late-cycle dynamics.

For the year, the MSCI ACWI (All Country World Index) Index – a combined measure of U.S., foreign developed-markets (DM) and emerging-markets (EM) equity performance – gained 19.26%. Among regions, favorable election results in France and elsewhere suggested ebbing political uncertainty and near-term risk in the eurozone: Europe (+25%) more than doubled the gain of the U.K. (+12%), which faced more-mixed condi-tions ahead of its expected exit from the European Union (“Brexit”). U.S. stocks (+18%) rallied on post-election optimism. Despite continued central-bank easing, Japan (+20%) modestly lagged the rest of the Asia Pacific group (+21%). Commodity-price volatility whipsawed Canada (+13%), but the EM group (+24%) boomed. Around the world, small-cap bested large-cap stocks. Growth-oriented stocks topped value counter-parts in the U.S.; the reverse was true elsewhere.

Looking at MSCI ACWI sectors, information technology (+36%) led the way, boosted by a surge among major U.S. and Chinese internet names. Financials (+36%) rode atop rising interest rates that, at the same time, pressured real estate (+4%) – along with utilities (+4%), consumer staples (+5%) and other so-called “bond proxy” or income-oriented sectors. Telecommunication services (-2%), another bond-proxy sector, posted the sole negative, hurt by both rising rates and increased competition. Health care (+10%) lagged early on due to turmoil around drug pricing and health care legislation, only to rebound later in the period amid strong balance sheets and dividend yields, particularly in the U.S. and Europe, as well as rising demand for medical products and services. Energy (+1%) fared well for the first half of the period given rising prices for crude oil and natural gas – as well as optimism that OPEC (the Organization of the Petroleum Exporting Countries) might be able to rein in production enough to support a further oil-price advance. Oil prices peaked on the first trading day of the new year, though, and lost considerable ground thereafter. The remaining sectors clustered closer to the MSCI ACWI result.

Meanwhile, U.S. taxable investment-grade bonds declined slightly the past 12 months. The early part of the period proved volatile, marked by concerns about monetary-policy tightening in response to global economic growth. The Bloomberg Barclays U.S. Aggregate Bond Index returned -0.31% for the year. Bond yields reached an all-time low shortly after the U.K.’s late-June 2016 Brexit vote. Bond yields began to rise heading into the U.S. presidential election and rallied strongly thereafter; many investors viewed then-President-elect Donald Trump’s economic agenda as stimulative and potentially inflationary. Yields also rode the U.S. Federal Reserve’s December decision to raise policy interest rates, and its signal for additional hikes. Bond yields moderated early in 2017, as it became clear that changes to tax, health care and fiscal policies would take time to develop and implement, and that the pace of rate increases was likely to be gradual, with follow-on quarter-point hikes in March and June. Within the Bloomberg Barclays index, investment-grade corporate credit (+2%) led all major market segments, while U.S. Treasuries declined. Outside the index, riskier non-core bond segments led the broader market – with U.S. high-yield debt producing a double-digit gain – whereas inflation-protected securities turned in a slightly negative result.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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 Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Effective August 24, 2016, all Barclays benchmark indices were co-branded as the Bloomberg Barclays Indices for a period of five years.

43 Annual Report

Fund Talk: The Managers’ Overview

Andrew Dierdorf (left) and Brett Sumsion, Co-Portfolio Managers of U.Fund College Investing Plan Portfolios

Q. Brett, would you please describe asset markets for the 12 months ending June 30, 2017?A. The U.S. equity bellwether S&P 500® gained 17.90% this period, rising sharply following the November election and gaining further ground through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, though, as the fledgling administration faced tests of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then surged through June 30, driven largely by the so-called “FAANG” group – namely, Facebook, Apple, Amazon.com, Netflix and Alphabet’s Google – and a few other names. Overall, growth-oriented stocks outpaced value segments this year, and small-cap stocks finished well ahead of large-caps.

Sector-wise, financials (+38%) fared best, riding an uptick in bond yields and a surge in bank shares, particularly post-election. Technology (+34%) also did quite well, as a handful of major index constituents posted stellar returns. Industrials (+22%) and materials (+19%) responded to the call for increased infrastructure spending and a rise in related commodity prices, respectively, while e-com-merce buoyed consumer discretionary (+17%). Conversely, telecom services (-12%) and real estate (0%) struggled amid as investor appetite for riskier assets – not to mention the likelihood of addi-tional interest rate hikes – curbed demand for dividend-rich sectors. Energy (-4%) lagged due to low oil prices.

Foreign developed-markets (DM) and emerging-markets (EM) stocks did even better, largely because of a broadly weaker U.S. dollar. The MSCI World ex USA Index of DM equities gained 19.74%, while the MSCI Emerging Markets Index went even higher, up 24.17%. Meanwhile, U.S. investment-grade bond results were slightly negative; commodity results, much more so.

Q. Andrew, how did the Portfolios perform on an absolute basis the past 12 months?A. For the year, each of the age-based Fidelity Index, Fidelity Funds and Multi-Firm Portfolios posted a gain, ranging from about 3% to 5% for each platform’s College Portfolio and up to about 16% to 19% for Portfolio 2033, the longest-dated offering operational for a full year. In addition, the actively managed Fidelity Funds and Multi-Firm Portfolios outperformed their respective Composite benchmarks by

about 1 to 2 percentage points, depending on strategy. (For specific results for Fidelity Funds Portfolios, Fidelity Index Portfolios and Multi-Firm Portfolios, please refer to the performance section of this report.)

Q. What influenced age-based Fidelity Funds Portfolios’ relative results?A. Versus Composites, top-down asset allocation decisions contrib-uted the bulk of the outperformance, most notably our strategy of underweighting the investment-grade debt asset class, particularly in favor of EM equity. Non-benchmark allocations to high-yield debt also helped. Indeed, except for inflation-protected debt, all of the Portfolios’ out-of-Composite fixed-income diversifiers outperformed the Bloomberg Barclays aggregate bond index. In many cases, the allocations were modest – and thus exerted small influence individu-ally – but collectively these exposures provided diversification from an asset allocation perspective. Detractions generally were modest and included the allocation to inflation-protected debt (-1%), which declined amid diminished inflation expectations. For similar reasons, but also because of the drop in energy prices, Portfolio allocations to commodity securities (-7%) detracted. Though this was the period’s worst-performing asset class by far, we believe it’s important to main-tain diversification and inflation protection within the Portfolios.

Valued added from underlying investments also was strong. Collectively, our U.S. equity investments outperformed the asset class, adding substantial value. Highlights include Fidelity® Growth Company Fund (+33%) – our largest U.S. equity investment – which led its specific benchmark by 12 percentage points. Our value-oriented and smaller-cap investments detracted modestly from relative results. The positive from U.S. equity was offset somewhat by less favorable results among foreign investments, some of which underperformed their non-U.S. equity benchmarks. Notably, despite double-digit gains, both Fidelity® Diversified International Fund (+18%) and Fidelity Emerging Markets Fund (+21%). lagged their specific benchmarks by as much as 3 percentage points.

On the debt side, both Fidelity Investment Grade Bond Fund (+2%) and Fidelity Total Bond Fund (+2%) led the core fixed-income asset class result, which was slightly negative. Both portfolio management teams seek to add value via sector positioning and security selection, and to manage risk by keeping duration roughly in line with that of the Bloomberg Barclays index.

Q. How about Multi-Firm Portfolios?A. We observed similar comparisons among Multi-Firm Portfolios. Allocation decisions added the most value, with underlying invest-ments also contributing. In the U.S. equity sleeve, Fidelity Growth Company Fund again stood out, but so did the JPMorgan U.S. Equity Fund (+20%). In many cases, highlighting other full-year results is complicated because we made a number of changes to Multi-Firm Portfolios’ underlying investments at the share-class level during the year, as I will describe later.

In DM equity, T. Rowe Price Overseas Stock Fund helped, but most other underlying investments detracted, most notably William Blair International Growth Fund and MFS International Value Fund. Also, Acadian Emerging Markets Portfolio (+28%) led its EM benchmark

44Annual Report

Fund Talk: The Managers’ Overview – continued

by close to 5 percentage points. Elsewhere, I’ll note that PIMCO CommoditiesPLUS® Strategy Fund (-2%) outperformed the commod-ity asset class result by a large margin.

In fixed income, contributions from Fidelity offerings were joined by good results from PIMCO Total Return Fund (+2%) and Prudential Total Return Bond Fund (+2%). In addition to pluses from other fixed-income segments, the double-digit gain logged by Hotchkis & Wiley High Yield Fund bears mention.

Q. And the Fidelity Index Portfolios?A. Returns were roughly in line with respective Composites, as we would expect for Portfolios designed to track indexes corresponding to each of five underlying components: U.S. and non-U.S. equity, com-modities, and investment-grade and short-term debt.

Q. What is your outlook as of June 30?A. To evaluate active allocation opportunities, we synthesize infor-mation from many kinds of research and consider market mispricings via broad categorizations such as:

Macro Environment: We think the U.S. economy is experiencing signs of the late phase of the business cycle, including increased inflation risk. EM economies appear positioned to benefit from global growth. We are monitoring changes in global monetary policy and interest rates.

Valuation: We view U.S. equities as expensive and EM equity as discounted versus DM equity.

Market Sentiment: Often contrarian, sentiment remains relatively bearish on commodities and neutral on EM equity. This past year, we brought the Portfolio’s U.S. and DM equity exposures closer to Composite targets, but we remain overweighted in EM equity.

Bottom-Up: Our research suggests U.S. corporate fundamentals, as well as job and wage growth, remain generally healthy, though our general outlook is more cautious.

Overall, in our view, potential future risks include a trend toward a reversal in globalization; market volatility as central banks evalu-ate policy; and a rapidly strengthening U.S. dollar. In addition, we continue to monitor China’s economy.

Strategic and active allocation decisions are intended to add value versus Composite benchmarks over a full market cycle. Regardless of economic or market conditions, we continue to evaluate and enhance our investment process in the best interest of participants, balancing risk and reward in the context of the Portfolios’ aim of delivering risk-adjusted returns consistent with college savers’ needs.

Portfolio Facts

Goals: Age-based Portfolios (Fidelity Funds, Fidelity Index, Multi-Firm) seek capital appreciation with reasonable safety of principal, consistent with the ages of the benefi-ciaries for whom they are designed. Each static Portfolio (Fidelity Funds, Fidelity Index) has its own investment objective; target allocations do not change over time: Conservative Portfolios seek preservation of capital by allocating assets among bond and money market funds, with income a secondary objective; Moderate Growth Portfolios seek to maximize total return over the longer term by allocating assets among stock and bond mutual funds; Aggressive Growth Portfolios seek long-term growth of capital. Each individual-fund Portfolio has the same investment objective as the underlying mutual fund in which it invests. Bank Deposit Portfolio seeks preservation of principal.

Start dates: Fidelity Funds Portfolios (age-based, static, individual) started February 19, 1999; except Moderate Growth Portfolio and Aggressive Growth Portfolio (May 7, 2001); Portfolio 2021 and Conservative Portfolio (December 13, 2001); Portfolio 2024 (December 27, 2004); Portfolio 2027 (December 14, 2007); Portfolio 2030 (December 28, 2010); Portfolio 2033 (December 18, 2013); and Portfolio 2036 (December 14, 2016).

Multi-Firm Portfolios started September 28, 2011, except Portfolio 2033 (December 18, 2013) and Portfolio 2036 (December 14, 2016).

Index Portfolios (age-based, static and individual) started October 30, 2006; except Portfolio 2027 (December 14, 2007); Portfolio 2030 (December 28, 2010); Portfolio 2033 (on December 18, 2013); and Portfolio 2036 (December 14, 2016).

Bank Deposit Portfolio started September 16, 2010; Money Market Portfolio started October 30, 2006.

Co-Managers: Andrew Dierdorf, since 2005; joined Fidelity in 2002; Brett Sumsion, since 2014; joined Fidelity in 2014.

45 Annual Report

Fund Talk: The Managers’ Overview – continued

Andrew Dierdorf on Multi-Firm Portfolio changes:“We made several changes among Multi-Firm Portfolios’ underly-ing investments. In the equity segment – to be consistent with the MSCI World ex USA Index country allocations – we added Fidelity Canada Fund in July 2016. Canada is not part of the MSCI EAFE Index. (We added Fidelity Canada Fund to Fidelity Funds Portfolios as well and for the same reason).

“In September, we removed T. Rowe Price Small-Cap Stock Fund due to portfolio manager turnover within that fund. At the same time, we opted to add JPMorgan Small Cap Equity Fund, as it was then ranked as our highest-conviction fund in the U.S. small-cap segment. In November, we added T. Rowe Price Emerging Markets Stock Fund, another high-conviction strategy, replacing Oppenheimer Developing Markets Fund, in which our confidence had waned.

“More generally, we made a number of changes to Multi-Firm Portfolios’ underlying investments during the year that compli-cated the highlighting of full-year performers. Specifically, we made top-level contractual changes to permit us to make use of a broader array of underlying investments. Where possible, we then shifted holdings to lower-fee investments, which in turn lowered net fees for participants. The mutual fund market has changed over the past few years, and less-expensive share classes have become more broadly available across fund complexes, which made this move attractive.

“Of final note: Based on the asset-allocation glide path – spe-cifically, the point at which fixed income is added to actively managed Portfolios – in September we added Fidelity Investment Grade Bond Fund to Portfolio 2033 in both Fidelity Funds and Multi-Firm Portfolios.”

46Annual Report


Investment Summary

Top Holdings as of June 30, 2017% of Portfolio’s

net assetsFidelity Investment Grade Bond Fund 22.6Fidelity Investments Money Market Government Portfolio Institutional Class 19.1Fidelity Government Income Fund 12.8Fidelity Short-Term Bond Fund 9.0Fidelity Emerging Markets Fund 4.5Fidelity Inflation-Protected Bond Fund 3.7Fidelity Corporate Bond Fund 3.6Fidelity Mortgage Securities Fund 3.0Fidelity Overseas Fund 2.5Fidelity Diversified International Fund 2.5

83.3

Asset Allocation (% of Portfolio’s net assets)

U.S. Equity Funds 13.4%

Non – U.S. Equity Funds 10.0%

Bond Funds 48.5%

Short-Term Funds 28.1%

47 Annual Report

See accompanying notes which are an integral part of the financial statements.

U.S. Equity Funds – 13.4%Shares Value

Fidelity Blue Chip Growth Fund 83,413 $ 6,709,743Fidelity Commodity Strategy Fund 1,416,035 14,061,224Fidelity Contrafund 39,197 4,477,873Fidelity Growth Company Fund 59,443 9,670,146Fidelity Large Cap Stock Fund 232,609 7,189,953Fidelity Low-Priced Stock Fund 71,041 3,787,217Fidelity Mega Cap Stock Fund 284,330 5,282,844Fidelity Real Estate Income Fund 275,445 3,376,958Fidelity Real Estate Investment Portfolio 26,309 1,116,011Fidelity Stock Selector All Cap Fund 330,476 13,516,477Fidelity Stock Selector Large Cap Value

Fund 505,829 9,787,800Fidelity Stock Selector Small Cap Fund 141,662 3,780,971Fidelity Value Discovery Fund 359,855 9,888,821

TOTAL U.S. EQUITY FUNDS(Cost $86,062,593) 92,646,038

Non – U.S. Equity Funds – 10.0%

Fidelity Canada Fund 70,022 3,531,920Fidelity Diversified International Fund 454,360 17,592,826Fidelity Emerging Markets Fund 1,105,320 30,783,160Fidelity Overseas Fund 375,666 17,618,737

TOTAL NON – U.S. EQUITY FUNDS(Cost $58,980,033) 69,526,643

Bond Funds – 48.5%

Fidelity Corporate Bond Fund 2,144,146 24,807,765Fidelity Floating Rate High Income

Fund 184,327 1,776,910Fidelity Government Income Fund 8,634,821 88,593,261Fidelity High Income Fund 1,171,404 10,448,925Fidelity Inflation-Protected Bond Fund 2,153,224 25,666,427Fidelity Investment Grade Bond Fund 19,780,309 156,264,444Fidelity Mortgage Securities Fund 1,834,059 20,614,819Fidelity New Markets Income Fund 295,129 4,784,047Fidelity Total Bond Fund 275,056 2,932,095

TOTAL BOND FUNDS(Cost $333,114,228) 335,888,693


Investments June 30, 2017Showing Percentage of Net Assets

Short-Term Funds – 28.1%Shares Value

Fidelity Investments Money Market Government Portfolio Institutional Class 0.85% (a) 132,313,834 $ 132,313,834

Fidelity Short-Term Bond Fund 7,221,003 62,245,048

TOTAL SHORT-TERM FUNDS(Cost $194,380,053) 194,558,882

TOTAL INVESTMENT PORTFOLIO – 100.0%(Cost $672,536,907) 692,620,256

NET OTHER ASSETS (LIABILITIES) – 0.0% (114,886)

NET ASSETS – 100% $692,505,370

Legend(a) The rate quoted is the annualized seven-day yield of the fund at

period end.

48Annual Report



Financial Statements

Statement of Assets and Liabilities

June 30, 2017

AssetsInvestments in securities at value (cost

$672,536,907) $ 692,620,256Receivable for investments sold 8,040,649Receivable for units sold 181,077Distributions receivable 712,165

Total assets 701,554,147

LiabilitiesPayable for investments purchased $ 8,333,409Accrued management and administra-

tion fees 114,795Payable for units redeemed 600,573

Total liabilities 9,048,777Net Assets $ 692,505,370

Net Asset Value, offering price and redemption price per unit ($692,505,370 / 34,853,131 units) $ 19.87

Statement of Operations

Year ended June 30, 2017

Investment IncomeIncome distributions from underlying funds $ 7,022,100ExpensesManagement and administration fees $ 968,119

Total expenses 968,119

Net investment income (loss) 6,053,981Realized and Unrealized Gain (Loss) on

InvestmentsNet realized gain (loss) on sale of underly-

ing funds’ shares 3,674,276Capital gain distributions from underlying

funds 2,384,908 6,059,184Change in net unrealized appreciation

(depreciation) on underlying funds’ shares 18,237,348

Net gain (loss) 24,296,532Net increase (decrease) in net assets

resulting from operations $ 30,350,513

49 Annual Report


U.Fund College Portfolio (Fidelity Funds)Financial Statements – continued

Statement of Changes in Net Assets

Year ended June 30,

2017

Year ended June 30,

2016Increase (Decrease) in Net Assets:

OperationsNet investment income (loss) $ 6,053,981 $ 4,439,583Net realized gain (loss) 6,059,184 2,490,837Change in net unrealized appreciation (depreciation) 18,237,348 (2,821,652)Net increase (decrease) in net assets resulting from operations 30,350,513 4,108,768

Unit transactionsProceeds from sales of units 587,267,944 31,513,578Cost of units redeemed (176,987,257) (140,107,682)Net increase (decrease) in net assets resulting from unit transactions 410,280,687 (108,594,104)Total increase (decrease) in net assets 440,631,200 (104,485,336)

Net AssetsBeginning of period 251,874,170 356,359,506End of period $ 692,505,370 $ 251,874,170

Other InformationUnit transactions

Sold 30,751,504 1,710,891Redeemed (9,198,064) (7,603,391)Net increase (decrease) 21,553,440 (5,892,500)

Financial Highlights U.Fund College Portfolio (Fidelity Funds)

Periods ended June 30, 2017 2016 2015 2014 2013Selected Per Unit Data Net asset value, beginning of period $ 18.94 $ 18.57 $ 18.38 $ 17.20 $ 16.62Income from Investment Operations

Net investment income (loss) A .24 .29 .25 .21 .19Net realized and unrealized gain (loss) .69 .08 (.06) .97 .39

Total increase (decrease) from investment operations .93 .37 .19 1.18 .58Net asset value, end of period $ 19.87 $ 18.94 $ 18.57 $ 18.38 $ 17.20

Total Return 4.91% 1.99% 1.03% 6.86% 3.49%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 692,505 $ 251,874 $ 356,360 $ 503,906 $ 180,827Ratio of expenses to average net assets .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets 1.25% 1.58% 1.38% 1.19% 1.13%Portfolio Turnover Rate 43% 36% 22% 51% 37%

A Calculated based on average units outstanding during the period.B Amounts do not include the activity of any underlying fund.

50Annual Report


Investment Summary


net assetsFidelity Investment Grade Bond Fund 17.3Fidelity Investments Money Market Government Portfolio Institutional Class 16.1Fidelity Total Bond Fund 12.1Fidelity Government Income Fund 8.6Fidelity Short-Term Bond Fund 7.6Fidelity Emerging Markets Fund 4.9Fidelity Inflation-Protected Bond Fund 3.6Fidelity Overseas Fund 3.0Fidelity Diversified International Fund 3.0Fidelity Stock Selector All Cap Fund 2.5

78.7




Bond Funds 48.4%


51 Annual Report











Fund 272,955 2,631,286Fidelity Government Income Fund 8,731,514 89,585,335Fidelity High Income Fund 1,764,287 15,737,438Fidelity Inflation-Protected Bond Fund 3,156,444 37,624,814Fidelity Investment Grade Bond Fund 22,904,184 180,943,053Fidelity Mortgage Securities Fund 1,847,891 20,770,299Fidelity New Markets Income Fund 426,639 6,915,818Fidelity Total Bond Fund 11,931,648 127,191,366








TOTAL INVESTMENT PORTFOLIO – 100.0%(Cost $995,255,850) 1,047,299,532


NET ASSETS – 100% $1,047,126,879


period end.

52Annual Report





June 30, 2017


$995,255,850) $ 1,047,299,532Receivable for investments sold 14,657,922Receivable for units sold 191,870Distributions receivable 1,086,597

Total assets 1,063,235,921

LiabilitiesPayable for investments purchased $ 15,707,148Accrued management and adminis-

tration fees 172,644Payable for units redeemed 229,250

Total liabilities 16,109,042Net Assets $ 1,047,126,879

Net Asset Value, offering price and redemption price per unit ($1,047,126,879 / 52,770,654 units) $ 19.84



Investment IncomeIncome distributions from underlying

funds $ 16,035,584ExpensesManagement and administration fees $ 2,006,839

Total expenses 2,006,839


InvestmentsNet realized gain (loss) on sale of under-

lying funds’ shares 26,294,442Capital gain distributions from underly-

ing funds 6,264,941 32,559,383Change in net unrealized appreciation




53 Annual Report


U.Fund Portfolio 2018 (Fidelity Funds)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,



Unit transactionsProceeds from sales of units 71,698,112 63,890,008Cost of units redeemed (56,580,363) (33,198,478)Net increase (decrease) in net assets resulting from unit transactions 15,117,749 30,691,530Total increase (decrease) in net assets 77,975,763 44,879,607

Net AssetsBeginning of period 969,151,116 924,271,509End of period $ 1,047,126,879 $ 969,151,116


Sold 3,735,542 3,527,328Redeemed (2,948,180) (1,833,738)Net increase (decrease) 787,362 1,693,590

Financial Highlights U.Fund Portfolio 2018 (Fidelity Funds)


Net investment income (loss) A .27 .30 .28 .23 .22Net realized and unrealized gain (loss) .93 (.04) .07 1.72 1.07

Total increase (decrease) from investment operations 1.20 .26 .35 1.95 1.29Net asset value, end of period $ 19.84 $ 18.64 $ 18.38 $ 18.03 $ 16.08

Total Return 6.44% 1.41% 1.94% 12.13% 8.72%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 1,047,127 $ 969,151 $ 924,272 $ 871,242 $ 747,486Ratio of expenses to average net assets .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets 1.40% 1.65% 1.54% 1.37% 1.42%Portfolio Turnover Rate 19% 26% 18% 23% 45%


54Annual Report


Investment Summary


net assetsFidelity Investment Grade Bond Fund 17.8Fidelity Total Bond Fund 10.4Fidelity Investments Money Market Government Portfolio Institutional Class 10.0Fidelity Government Income Fund 6.9Fidelity Emerging Markets Fund 6.1Fidelity Short-Term Bond Fund 4.7Fidelity Overseas Fund 4.4Fidelity Diversified International Fund 4.4Fidelity Stock Selector All Cap Fund 4.1Fidelity Value Discovery Fund 3.0

71.8




Bond Funds 44.0%


55 Annual Report




Fund 1,279,972 24,767,456Fidelity Stock Selector Small Cap Fund 358,396 9,565,580Fidelity Value Discovery Fund 910,213 25,012,650







Fund 210,766 2,031,780Fidelity Government Income Fund 5,548,214 56,924,674Fidelity High Income Fund 1,378,214 12,293,672Fidelity Inflation-Protected Bond Fund 2,038,628 24,300,449Fidelity Investment Grade Bond Fund 18,638,378 147,243,187Fidelity Mortgage Securities Fund 1,175,486 13,212,464Fidelity New Markets Income Fund 328,619 5,326,918Fidelity Total Bond Fund 8,022,597 85,520,879










NET ASSETS – 100% $825,169,242


period end.

56Annual Report





June 30, 2017











funds $ 12,029,843ExpensesManagement and administration fees $ 1,533,537

Total expenses 1,533,537








57 Annual Report




Year ended June 30,

2017

Year ended June 30,






Sold 3,108,104 2,921,320Redeemed (1,288,878) (948,011)Net increase (decrease) 1,819,226 1,973,309



Net investment income (loss) A .28 .31 .30 .25 .24Net realized and unrealized gain (loss) 1.54 (.19) .20 2.32 1.48


Total Return 9.12% .60% 2.59% 15.32% 11.43%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 825,169 $ 719,973 $ 676,483 $ 625,276 $ 514,189Ratio of expenses to average net assets .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets 1.37% 1.60% 1.55% 1.38% 1.46%Portfolio Turnover Rate 22% 22% 17% 22% 45%


58Annual Report


Investment Summary


net assetsFidelity Investment Grade Bond Fund 16.1Fidelity Total Bond Fund 7.9Fidelity Emerging Markets Fund 7.1Fidelity Investments Money Market Government Portfolio Institutional Class 6.3Fidelity Stock Selector All Cap Fund 5.7Fidelity Overseas Fund 5.7Fidelity Diversified International Fund 5.7Fidelity Government Income Fund 5.5Fidelity Value Discovery Fund 4.2Fidelity Stock Selector Large Cap Value Fund 4.2

68.4




Bond Funds 36.7%


59 Annual Report



Fidelity Blue Chip Growth Fund 150,855 $ 12,134,745Fidelity Commodity Strategy Fund 875,443 8,693,154Fidelity Contrafund 70,885 8,097,900Fidelity Growth Company Fund 107,513 17,490,164Fidelity Large Cap Stock Fund 420,362 12,993,384Fidelity Low-Priced Stock Fund 128,369 6,843,357Fidelity Mega Cap Stock Fund 513,895 9,548,173Fidelity Real Estate Income Fund 156,973 1,924,485Fidelity Real Estate Investment Portfolio 47,592 2,018,843Fidelity Stock Selector All Cap Fund 597,461 24,436,147Fidelity Stock Selector Large Cap Value







Fidelity Corporate Bond Fund 578,943 6,698,367Fidelity Floating Rate High Income Fund 106,838 1,029,916Fidelity Government Income Fund 2,292,594 23,522,013Fidelity High Income Fund 707,597 6,311,768Fidelity Inflation-Protected Bond Fund 701,716 8,364,458Fidelity Investment Grade Bond Fund 8,720,026 68,888,207Fidelity Mortgage Securities Fund 484,198 5,442,389Fidelity New Markets Income Fund 165,841 2,688,275Fidelity Total Bond Fund 3,160,322 33,689,034










NET ASSETS – 100% $426,831,807


period end.

60Annual Report





June 30, 2017





tion fees 70,142Payable for units redeemed 401






funds $ 5,882,900ExpensesManagement and administration fees $ 774,034









61 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 5,108,866 $ 5,143,916Net realized gain (loss) 16,942,309 10,469,026Change in net unrealized appreciation (depreciation) 20,822,139 (15,487,498)Net increase (decrease) in net assets resulting from operations 42,873,314 125,444




Sold 2,265,117 2,184,284Redeemed (681,303) (577,890)Net increase (decrease) 1,583,814 1,606,394




Total increase (decrease) from investment operations 2.02 (.03) .52 2.59 1.78Net asset value, end of period $ 19.38 $ 17.36 $ 17.39 $ 16.87 $ 14.28

Total Return 11.64% (.17)% 3.08% 18.14% 14.24%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 426,832 $ 354,865 $ 327,665 $ 291,001 $ 223,182Ratio of expenses to average net assets .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets 1.32% 1.55% 1.46% 1.28% 1.46%Portfolio Turnover Rate 25% 19% 16% 16% 42%


62Annual Report


Investment Summary


net assetsFidelity Investment Grade Bond Fund 14.6Fidelity Emerging Markets Fund 8.1Fidelity Stock Selector All Cap Fund 7.3Fidelity Overseas Fund 7.0Fidelity Diversified International Fund 6.9Fidelity Total Bond Fund 5.8Fidelity Value Discovery Fund 5.3Fidelity Stock Selector Large Cap Value Fund 5.3Fidelity Growth Company Fund 5.2Fidelity Large Cap Stock Fund 3.9

69.4




Bond Funds 28.8%


63 Annual Report



Fidelity Blue Chip Growth Fund 96,269 $ 7,743,909Fidelity Commodity Strategy Fund 439,262 4,361,876Fidelity Contrafund 45,236 5,167,739Fidelity Growth Company Fund 68,612 11,161,750Fidelity Large Cap Stock Fund 268,225 8,290,832Fidelity Low-Priced Stock Fund 81,909 4,366,571Fidelity Mega Cap Stock Fund 327,914 6,092,646Fidelity Real Estate Income Fund 76,801 941,585Fidelity Real Estate Investment Portfolio 30,374 1,288,452Fidelity Stock Selector All Cap Fund 381,253 15,593,248Fidelity Stock Selector Large Cap Value




Fidelity Canada Fund 59,334 2,992,795Fidelity Diversified International Fund 385,144 14,912,780Fidelity Emerging Markets Fund 620,116 17,270,218Fidelity Overseas Fund 318,457 14,935,638



Fidelity Corporate Bond Fund 183,476 2,122,817Fidelity Floating Rate High Income Fund 52,519 506,287Fidelity Government Income Fund 734,265 7,533,560Fidelity High Income Fund 351,982 3,139,679Fidelity Inflation-Protected Bond Fund 143,993 1,716,398Fidelity Investment Grade Bond Fund 3,960,144 31,285,142Fidelity Mortgage Securities Fund 154,259 1,733,870Fidelity New Markets Income Fund 81,301 1,317,896Fidelity Total Bond Fund 1,154,346 12,305,325






Fidelity Short-Term Bond Fund 372,612 3,211,911




NET ASSETS – 100% $213,842,695


period end.

64Annual Report





June 30, 2017





tion fees 35,089Total liabilities 3,389,217

Net Assets $ 213,842,695













65 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 2,382,554 $ 2,174,208Net realized gain (loss) 8,594,160 5,208,396Change in net unrealized appreciation (depreciation) 14,226,801 (8,578,702)Net increase (decrease) in net assets resulting from operations 25,203,515 (1,196,098)









Total Return 14.26% (1.17)% 3.56% 20.51% 16.70%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 213,843 $ 166,771 $ 149,434 $ 125,803 $ 87,609Ratio of expenses to average net assets .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets 1.26% 1.42% 1.30% 1.19% 1.48%Portfolio Turnover Rate 27% 17% 16% 14% 37%


66Annual Report


Investment Summary


net assetsFidelity Investment Grade Bond Fund 11.7Fidelity Emerging Markets Fund 9.0Fidelity Stock Selector All Cap Fund 8.9Fidelity Overseas Fund 8.3Fidelity Diversified International Fund 8.2Fidelity Value Discovery Fund 6.5Fidelity Stock Selector Large Cap Value Fund 6.4Fidelity Growth Company Fund 6.4Fidelity Large Cap Stock Fund 4.7Fidelity Blue Chip Growth Fund 4.4

74.5




Bond Funds 19.9%


67 Annual Report



Fidelity Blue Chip Growth Fund 51,697 $ 4,158,486Fidelity Commodity Strategy Fund 193,967 1,926,095Fidelity Contrafund 24,292 2,775,077Fidelity Growth Company Fund 36,845 5,993,926Fidelity Large Cap Stock Fund 144,026 4,451,832Fidelity Low-Priced Stock Fund 43,982 2,344,663Fidelity Mega Cap Stock Fund 176,079 3,271,543Fidelity Real Estate Income Fund 33,307 408,349Fidelity Real Estate Investment Portfolio 16,313 691,980Fidelity Stock Selector All Cap Fund 204,726 8,373,283Fidelity Stock Selector Large Cap Value







Fidelity Corporate Bond Fund 32,463 375,598Fidelity Floating Rate High Income Fund 22,830 220,081Fidelity Government Income Fund 134,598 1,380,977Fidelity High Income Fund 154,410 1,377,341Fidelity Inflation-Protected Bond Fund 56,772 676,726Fidelity Investment Grade Bond Fund 1,405,143 11,100,631Fidelity Mortgage Securities Fund 29,811 335,075Fidelity New Markets Income Fund 35,146 569,715Fidelity Total Bond Fund 256,846 2,737,983





Fidelity Investments Money Market Government Portfolio Institutional Class 0.85% (a) 734,948 $ 734,948

Fidelity Short-Term Bond Fund 39,867 343,653




NET ASSETS – 100% $94,447,769


period end.

68Annual Report





June 30, 2017




LiabilitiesPayable for investments purchased $ 1,458,223Accrued management and administration

fees 15,456Payable for units redeemed 10,102







Net investment income (loss) 908,624Realized and Unrealized Gain (Loss) on







69 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 908,624 $ 716,409Net realized gain (loss) 2,910,102 1,780,202Change in net unrealized appreciation (depreciation) 8,563,778 (3,414,118)Net increase (decrease) in net assets resulting from operations 12,382,504 (917,507)




Sold 1,133,880 1,045,942Redeemed (173,724) (159,218)Net increase (decrease) 960,156 886,724







70Annual Report


Investment Summary


net assetsFidelity Stock Selector All Cap Fund 10.4Fidelity Emerging Markets Fund 10.0Fidelity Overseas Fund 9.5Fidelity Diversified International Fund 9.5Fidelity Value Discovery Fund 7.6Fidelity Stock Selector Large Cap Value Fund 7.5Fidelity Growth Company Fund 7.5Fidelity Large Cap Stock Fund 5.5Fidelity Blue Chip Growth Fund 5.2Fidelity Investment Grade Bond Fund 4.2

76.9




Bond Funds 7.5%


71 Annual Report



Fidelity Blue Chip Growth Fund 24,065 $ 1,935,794Fidelity Commodity Strategy Fund 77,181 766,403Fidelity Contrafund 11,311 1,292,169Fidelity Growth Company Fund 17,149 2,789,759Fidelity Large Cap Stock Fund 67,039 2,072,186Fidelity Low-Priced Stock Fund 20,482 1,091,894Fidelity Mega Cap Stock Fund 81,977 1,523,139Fidelity Real Estate Income Fund 14,947 183,255Fidelity Real Estate Investment Portfolio 7,616 323,066Fidelity Stock Selector All Cap Fund 95,273 3,896,662Fidelity Stock Selector Large Cap Value




Fidelity Canada Fund 14,173 714,882Fidelity Diversified International Fund 91,995 3,562,042Fidelity Emerging Markets Fund 133,600 3,720,767Fidelity Overseas Fund 76,069 3,567,646


Bond Funds – 7.5%

Fidelity Floating Rate High Income Fund 7,466 71,976Fidelity High Income Fund 60,877 543,024Fidelity Inflation-Protected Bond Fund 22,639 269,862Fidelity Investment Grade Bond Fund 196,986 1,556,188Fidelity New Markets Income Fund 11,505 186,500Fidelity Total Bond Fund 16,066 171,261


Short-Term Funds – 1.1%

Fidelity Investments Money Market Government Portfolio Institutional Class 0.85% (a) 280,245 280,245


TOTAL SHORT-TERM FUNDS(Cost $411,970) 412,151



NET ASSETS – 100% $37,404,714




period end.

72Annual Report





June 30, 2017


$34,064,812) $ 37,410,780Receivable for investments sold 531,828Receivable for units sold 29,426Distributions receivable 5,757


LiabilitiesPayable for investments purchased $ 567,011Accrued management and administration

fees 6,066Total liabilities 573,077

Net Assets $ 37,404,714

Net Asset Value, offering price and redemp-tion price per unit ($37,404,714 / 2,862,216 units) $ 13.07



Investment IncomeIncome distributions from underlying funds $ 303,060ExpensesManagement and administration fees $ 53,636


Net investment income (loss) 249,424Realized and Unrealized Gain (Loss) on Invest-

mentsNet realized gain (loss) on sale of underlying

funds’ shares 499,846Capital gain distributions from underlying

funds 398,900 898,746Change in net unrealized appreciation (de-

preciation) on underlying funds’ shares 3,619,326Net gain (loss) 4,518,072Net increase (decrease) in net assets resulting

from operations $ 4,767,496

73 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 249,424 $ 99,094Net realized gain (loss) 898,746 263,948Change in net unrealized appreciation (depreciation) 3,619,326 (356,809)Net increase (decrease) in net assets resulting from operations 4,767,496 6,233

Unit transactionsProceeds from sales of units 15,941,777 11,105,393Cost of units redeemed (690,470) (359,167)Net increase (decrease) in net assets resulting from unit transactions 15,251,307 10,746,226Total increase (decrease) in net assets 20,018,803 10,752,459





Periods ended June 30, 2017 2016 2015 2014 A

Selected Per Unit Data Net asset value, beginning of period $ 10.95 $ 11.32 $ 10.83 $ 10.00Income from Investment Operations

Net investment income (loss) B .11 .09 .09 .03Net realized and unrealized gain (loss) 2.01 (.46) .40 .80

Total increase (decrease) from investment operations 2.12 (.37) .49 .83Net asset value, end of period $ 13.07 $ 10.95 $ 11.32 $ 10.83

Total Return C 19.36% (3.27)% 4.52% 8.30%Ratios and Supplemental Data D Net assets, end of period (in $ thousands) $ 37,405 $ 17,386 $ 6,633 $ 881Ratio of expenses to average net assets .20% .20% .20% .20%E

Ratio of net investment income (loss) to average net assets .93% .88% .83% .56%E

Portfolio Turnover Rate 32% 8% 11% 25%E

A For the period December 18, 2013 (commencement of operations) to June 30, 2014.B Calculated based on average units outstanding during the period.C Total returns for periods of less than one year are not annualized.D Amounts do not include the activity of any underlying fund.E Annualized

74Annual Report


Investment Summary


net assetsFidelity Stock Selector All Cap Fund 11.7Fidelity Emerging Markets Fund 10.4Fidelity Overseas Fund 10.3Fidelity Diversified International Fund 10.3Fidelity Growth Company Fund 8.4Fidelity Value Discovery Fund 8.4Fidelity Stock Selector Large Cap Value Fund 8.3Fidelity Large Cap Stock Fund 6.1Fidelity Blue Chip Growth Fund 5.8Fidelity Mega Cap Stock Fund 4.5

84.2




Bond Funds 1.0%


75 Annual Report



Fidelity Blue Chip Growth Fund 965 $ 77,613Fidelity Commodity Strategy Fund 1,259 12,501Fidelity Contrafund 449 51,240Fidelity Growth Company Fund 698 113,613Fidelity Large Cap Stock Fund 2,659 82,190Fidelity Low-Priced Stock Fund 820 43,735Fidelity Mega Cap Stock Fund 3,251 60,402Fidelity Real Estate Income Fund 158 1,936Fidelity Real Estate Investment Portfolio 311 13,175Fidelity Stock Selector All Cap Fund 3,848 157,362Fidelity Stock Selector Large Cap Value

Fund 5,786 111,956Fidelity Stock Selector Small Cap Fund 1,619 43,213Fidelity Value Discovery Fund 4,110 112,935

TOTAL U.S. EQUITY FUNDS(Cost $857,287) 881,871


Fidelity Canada Fund 554 27,921Fidelity Diversified International Fund 3,591 139,060Fidelity Emerging Markets Fund 5,063 140,998Fidelity Overseas Fund 2,971 139,355

TOTAL NON – U.S. EQUITY FUNDS(Cost $420,534) 447,334

Bond Funds – 1.0%

Fidelity Floating Rate High Income Fund 100 961Fidelity High Income Fund 715 6,381Fidelity Inflation-Protected Bond Fund 271 3,228Fidelity New Markets Income Fund 151 2,455

TOTAL BOND FUNDS(Cost $13,020) 13,025



Fidelity Short-Term Bond Fund 255 2,201



NET OTHER ASSETS (LIABILITIES) – 0.0% (184)

NET ASSETS – 100% $ 1,348,925




period end.

76Annual Report





June 30, 2017


$1,297,719) $ 1,349,109Receivable for investments sold 241Receivable for units sold 25,728Distributions receivable 35


LiabilitiesPayable for investments purchased $ 26,002Accrued management and administration fees 186

Total liabilities 26,188Net Assets $ 1,348,925

Net Asset Value, offering price and redemption price per unit ($1,348,925 / 119,835 units) $ 11.26


For the period December 14, 2016

(commencement of operations) to June 30, 2017

Investment IncomeIncome distributions from underlying funds $ 724ExpensesManagement and administration fees $ 575

Total expenses 575

Net investment income (loss) 149Realized and Unrealized Gain (Loss) on Invest-


funds’ shares 2,529Capital gain distributions from underlying funds 1,267 3,796Change in net unrealized appreciation (deprecia-

tion) on underlying funds’ shares 51,390Net gain (loss) 55,186Net increase (decrease) in net assets resulting

from operations $ 55,335

77 Annual Report





(commencement of operations) to June 30,


OperationsNet investment income (loss) $ 149Net realized gain (loss) 3,796Change in net unrealized appreciation (depreciation) 51,390Net increase (decrease) in net assets resulting from operations 55,335

Unit transactionsProceeds from sales of units 1,297,523Cost of units redeemed (3,933)Net increase (decrease) in net assets resulting from unit transactions 1,293,590Total increase (decrease) in net assets 1,348,925

Net AssetsBeginning of period –End of period $ 1,348,925


Sold 120,194Redeemed (359)Net increase (decrease) 119,835


Period ended June 30, 2017 A

Selected Per Unit DataNet asset value, beginning of period $ 10.00Income from Investment Operations

Net investment income (loss) B –C

Net realized and unrealized gain (loss) 1.26Total increase (decrease) from investment operations 1.26Net asset value, end of period $ 11.26

Total Return D 12.60%Ratios and Supplemental Data E

Net assets, end of period (in $ thousands) $ 1,349Ratio of expenses to average net assets .20%F

Ratio of net investment income (loss) to average net assets .05%F

Portfolio Turnover Rate 52%F

A For the period December 14, 2016 (commencement of operations) to June 30, 2017.B Calculated based on average units outstanding during the period.C Amount represents less than $.01 per unit.D Total returns for periods of less than one year are not annualized.E Amounts do not include the activity of any underlying fund.F Annualized

78Annual Report


Investment Summary


net assetsFidelity Investments Money Market Government Portfolio Institutional Class 37.4Fidelity Investment Grade Bond Fund 21.8Fidelity Short-Term Bond Fund 17.6Fidelity Government Income Fund 9.0Fidelity Total Bond Fund 6.9Fidelity Corporate Bond Fund 2.5Fidelity Mortgage Securities Fund 2.1Fidelity High Income Fund 1.0Fidelity Real Estate Income Fund 0.5Fidelity Inflation-Protected Bond Fund 0.5

99.3



Bond Funds 44.5%


79 Annual Report



Fidelity Real Estate Income Fund(Cost $194,480) 17,659 $ 216,500


Fidelity Corporate Bond Fund 88,093 1,019,240Fidelity Floating Rate High Income Fund 10,749 103,625Fidelity Government Income Fund 353,416 3,626,043Fidelity High Income Fund 46,539 415,128Fidelity Inflation-Protected Bond Fund 16,618 198,088Fidelity Investment Grade Bond Fund 1,113,597 8,797,420Fidelity Mortgage Securities Fund 74,625 838,781Fidelity New Markets Income Fund 11,687 189,453Fidelity Total Bond Fund 262,819 2,801,646



Fidelity Investments Money Market Government Portfolio Institutional Class 0.85% (a) 15,121,306 15,121,306





NET ASSETS – 100% $40,425,349


period end.



80Annual Report





June 30, 2017





fees 6,618Payable for units redeemed 33









funds’ shares 14Capital gain distributions from underlying funds 42,804 42,818Change in net unrealized appreciation (depre-

ciation) on underlying funds’ shares (206,312)Net gain (loss) (163,494)Net increase (decrease) in net assets resulting


81 Annual Report


U.Fund Conservative Portfolio (Fidelity Funds)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 484,506 $ 516,624Net realized gain (loss) 42,818 17,636Change in net unrealized appreciation (depreciation) (206,312) 365,319Net increase (decrease) in net assets resulting from operations 321,012 899,579




Sold 734,211 484,571Redeemed (668,125) (666,893)Net increase (decrease) 66,086 (182,322)

Financial Highlights U.Fund Conservative Portfolio (Fidelity Funds)


Net investment income (loss) A .19 .20 .18 .16 .14Net realized and unrealized gain (loss) (.06) .16 (.09) .20 (.12)

Total increase (decrease) from investment operations .13 .36 .09 .36 .02Net asset value, end of period $ 15.45 $ 15.32 $ 14.96 $ 14.87 $ 14.51

Total Return .85% 2.41% .61% 2.48% .14%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 40,425 $ 39,072 $ 40,881 $ 42,771 $ 48,006Ratio of expenses to average net assets .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets 1.25% 1.33% 1.21% 1.10% .98%Portfolio Turnover Rate 20% 55% 19% 18% 41%


82Annual Report


Investment Summary


net assetsFidelity Investment Grade Bond Fund 12.7Fidelity Stock Selector All Cap Fund 8.5Fidelity Overseas Fund 7.1Fidelity Diversified International Fund 7.1Fidelity Value Discovery Fund 6.2Fidelity Stock Selector Large Cap Value Fund 6.2Fidelity Growth Company Fund 6.1Fidelity Emerging Markets Fund 6.1Fidelity Government Income Fund 5.0Fidelity Large Cap Stock Fund 4.5

69.5




Bond Funds 28.9%

83 Annual Report



Fidelity Blue Chip Growth Fund 63,318 $ 5,093,304Fidelity Commodity Strategy Fund 129,018 1,281,144Fidelity Contrafund 29,752 3,398,814Fidelity Growth Company Fund 45,130 7,341,713Fidelity Large Cap Stock Fund 176,337 5,450,576Fidelity Low-Priced Stock Fund 53,847 2,870,595Fidelity Mega Cap Stock Fund 215,596 4,005,781Fidelity Real Estate Income Fund 90,154 1,105,290Fidelity Real Estate Investment Portfolio 19,981 847,614Fidelity Stock Selector All Cap Fund 250,703 10,253,744Fidelity Stock Selector Large Cap Value







Fidelity Corporate Bond Fund 149,985 1,735,331Fidelity Floating Rate High Income Fund 90,122 868,777Fidelity Government Income Fund 582,832 5,979,860Fidelity High Income Fund 397,053 3,541,712Fidelity Inflation-Protected Bond Fund 46,768 557,477Fidelity Investment Grade Bond Fund 1,931,015 15,255,023Fidelity Mortgage Securities Fund 121,877 1,369,898Fidelity New Markets Income Fund 30,939 501,526Fidelity Total Bond Fund 457,175 4,873,485




NET ASSETS – 100% $120,218,325



84Annual Report





June 30, 2017







Net Asset Value, offering price and re-demption price per unit ($120,218,325 / 5,104,720 units) $ 23.55












85 Annual Report


U.Fund Moderate Growth Portfolio (Fidelity Funds)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,



Unit transactionsProceeds from sales of units 12,381,451 12,190,040Cost of units redeemed (22,492,654) (23,705,182)Net increase (decrease) in net assets resulting from unit transactions (10,111,203) (11,515,142)Total increase (decrease) in net assets 5,832,536 (13,070,995)



Sold 562,111 607,904Redeemed (1,034,060) (1,173,189)Net increase (decrease) (471,949) (565,285)

Financial Highlights U.Fund Moderate Growth Portfolio (Fidelity Funds)






86Annual Report


Investment Summary


net assetsFidelity Stock Selector All Cap Fund 12.3Fidelity Overseas Fund 10.2Fidelity Diversified International Fund 10.2Fidelity Value Discovery Fund 9.0Fidelity Stock Selector Large Cap Value Fund 8.9Fidelity Growth Company Fund 8.8Fidelity Emerging Markets Fund 8.1Fidelity Large Cap Stock Fund 6.5Fidelity Blue Chip Growth Fund 6.1Fidelity Mega Cap Stock Fund 4.8

84.9




87 Annual Report



Fidelity Blue Chip Growth Fund 209,295 $ 16,835,682Fidelity Commodity Strategy Fund 279,989 2,780,290Fidelity Contrafund 98,353 11,235,901Fidelity Growth Company Fund 149,175 24,267,840Fidelity Large Cap Stock Fund 582,870 18,016,511Fidelity Low-Priced Stock Fund 177,989 9,488,580Fidelity Mega Cap Stock Fund 712,641 13,240,876Fidelity Real Estate Investment Portfolio 66,048 2,801,759Fidelity Stock Selector All Cap Fund 828,657 33,892,059Fidelity Stock Selector Large Cap Value

Fund 1,268,095 24,537,638Fidelity Stock Selector Small Cap Fund 354,983 9,474,495Fidelity Value Discovery Fund 901,253 24,766,424







NET ASSETS – 100% $275,534,821



88Annual Report





June 30, 2017


$213,259,921) $ 275,580,299Receivable for investments sold 466,276Receivable for units sold 62,621









funds $ 2,882,154ExpensesManagement and administration fees $ 519,645









89 Annual Report


U.Fund Aggressive Growth Portfolio (Fidelity Funds)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,



Unit transactionsProceeds from sales of units 23,398,267 20,960,895Cost of units redeemed (48,475,441) (42,444,088)Net increase (decrease) in net assets resulting from unit transactions (25,077,174) (21,483,193)Total increase (decrease) in net assets 23,293,822 (31,787,649)



Sold 1,151,547 1,144,793Redeemed (2,412,222) (2,305,668)Net increase (decrease) (1,260,675) (1,160,875)

Financial Highlights U.Fund Aggressive Growth Portfolio (Fidelity Funds)




Total Return 20.39% (3.64)% 4.91% 23.84% 19.44%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 275,535 $ 252,241 $ 284,029 $ 290,388 $ 250,151Ratio of expenses to average net assets .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets .91% .92% .91% .80% 1.17%Portfolio Turnover Rate 29% 13% 12% 10% 34%


90Annual Report


U.Fund Money Market Portfolio



June 30, 2017

AssetsInvestments in securities, at value

(79,843,105 shares of Fidelity Government Cash Reserves Fund; cost $79,843,105) $ 79,843,105

Receivable for investments sold 76,311Receivable for units sold 3,266Distributions receivable 35,598


LiabilitiesPayable for investments purchased $ 35,598Accrued management and administration fees 13,012Payable for units redeemed 79,577






Total expenses before reductions 147,962Expense reductions (28,126) 119,836


ments –Net increase (decrease) in net assets resulting


91 Annual Report


U.Fund Money Market PortfolioFinancial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 70,543 $ 6,367Net increase (decrease) in net assets resulting from operations 70,543 6,367




Sold 3,608,594 3,135,474Redeemed (2,982,640) (2,559,264)Net increase (decrease) 625,954 576,210

Financial Highlights U.Fund Money Market Portfolio


Net investment income (loss) A .01 –B –B –B .01Total increase (decrease) from investment operations .01 –B –B –B .01Net asset value, end of period $ 10.88 $ 10.87 $ 10.87 $ 10.87 $ 10.87

Total Return C .09% –% —% —% .09%Ratios and Supplemental Data D Net assets, end of period (in $ thousands) $ 79,830 $ 72,954 $ 66,685 $ 65,971 $ 61,897Ratio of expenses to average net assets .16% .02% –%E -%E -%E

Ratio of expenses to average net assets before reductions .20% .20% .20% .20% .20%Ratio of net investment income (loss) to average net assets .10% .01% .01% .01% .01%

A Calculated based on average units outstanding during the period.B Amount represents less than $.01 per unit.C Total returns would have been lower had certain expenses not been reduced during the applicable periods shown.D Amounts do not include the activity of any underlying fund.E Amount represents less than .01%.

92Annual Report


Investment Summary


net assetsFidelity U.S. Bond Index Fund Institutional Premium Class 50.0Fidelity Investments Money Market Government Portfolio Institutional Class 30.0Fidelity Total Market Index Fund Institutional Premium Class 13.0Fidelity International Index Fund Institutional Premium Class 6.0Fidelity Commodity Strategy Fund 1.0

100.0



Commodity Funds 1.0%


Bond Funds 50.0%


93 Annual Report



Fidelity Total Market Index Fund Institutional Premium Class(Cost $11,297,718) 178,297 $ 12,479,007

Commodity Funds – 1.0%

Fidelity Commodity Strategy Fund(Cost $996,827) 99,707 990,095


Fidelity International Index Fund Institutional Premium Class(Cost $5,276,061) 143,397 5,800,418


Fidelity U.S. Bond Index Fund Institutional Premium Class(Cost $47,727,991) 4,148,272 48,119,953


Fidelity Investments Money Market Government Portfolio Institutional Class 0.85% (a)(Cost $28,843,805) 28,843,805 28,843,805



NET ASSETS – 100% $96,226,113


period end.



94Annual Report





June 30, 2017












Net investment income (loss) 1,256,780Realized and Unrealized Gain (Loss) on Invest-






95 Annual Report


U.Fund College Portfolio (Fidelity Index)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 1,256,780 $ 484,872Net realized gain (loss) 261,655 246,384Change in net unrealized appreciation (depreciation) 1,416,120 (6,144)Net increase (decrease) in net assets resulting from operations 2,934,555 725,112




Sold 6,333,901 489,478Redeemed (1,827,364) (1,140,955)Net increase (decrease) 4,506,537 (651,477)

Financial Highlights U.Fund College Portfolio (Fidelity Index)




Total Return 3.16% 2.59% .65% 6.00% 2.76%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 96,226 $ 29,130 $ 37,432 $ 48,371 $ 14,588Ratio of expenses to average net assets .09% .09% .09% .09% .15%Ratio of net investment income (loss) to average net assets 1.95% 1.57% 1.31% 1.44% 1.14%Portfolio Turnover Rate 31% 44% 19% 31% 25%


96Annual Report


Investment Summary


net assetsFidelity U.S. Bond Index Fund Institutional Premium Class 50.1Fidelity Investments Money Market Government Portfolio Institutional Class 25.6Fidelity Total Market Index Fund Institutional Premium Class 16.0Fidelity International Index Fund Institutional Premium Class 7.3Fidelity Commodity Strategy Fund 1.0

100.0





Bond Funds 50.1%


97 Annual Report





Fidelity Commodity Strategy Fund(Cost $1,706,790) 170,761 1,695,653









NET ASSETS – 100% $160,892,207


period end.



98Annual Report





June 30, 2017















funds 180,693 2,178,677Change in net unrealized appreciation

(depreciation) on underlying funds’ shares 1,481,986Net gain (loss) 3,660,663Net increase (decrease) in net assets result-

ing from operations $ 6,318,581

99 Annual Report


U.Fund Portfolio 2018 (Fidelity Index)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 2,657,918 $ 2,205,153Net realized gain (loss) 2,178,677 1,839,176Change in net unrealized appreciation (depreciation) 1,481,986 (944,732)Net increase (decrease) in net assets resulting from operations 6,318,581 3,099,597





Financial Highlights U.Fund Portfolio 2018 (Fidelity Index)


Net investment income (loss) A .27 .26 .23 .23 .20Net realized and unrealized gain (loss) .37 .07 (.08) 1.21 .73




100Annual Report


Investment Summary


net assetsFidelity U.S. Bond Index Fund Institutional Premium Class 46.4Fidelity Total Market Index Fund Institutional Premium Class 25.2Fidelity Investments Money Market Government Portfolio Institutional Class 16.2Fidelity International Index Fund Institutional Premium Class 11.2Fidelity Commodity Strategy Fund 1.0

100.0





Bond Funds 46.4%


101 Annual Report














NET ASSETS – 100% $170,378,105


period end.



102Annual Report





June 30, 2017





tion fees 12,553Total liabilities 1,251,422

Net Assets $ 170,378,105












103 Annual Report




Year ended June 30,

2017

Year ended June 30,









Net investment income (loss) A .30 .28 .26 .25 .22Net realized and unrealized gain (loss) .71 (.02) (.04) 1.58 1.00




104Annual Report


Investment Summary


net assetsFidelity U.S. Bond Index Fund Institutional Premium Class 40.0Fidelity Total Market Index Fund Institutional Premium Class 33.9Fidelity International Index Fund Institutional Premium Class 15.0Fidelity Investments Money Market Government Portfolio Institutional Class 10.0Fidelity Commodity Strategy Fund 1.1

100.0





Bond Funds 40.0%


105 Annual Report














NET ASSETS – 100% $201,331,788


period end.



106Annual Report





June 30, 2017



















107 Annual Report




Year ended June 30,

2017

Year ended June 30,









Net investment income (loss) A .32 .29 .27 .26 .23Net realized and unrealized gain (loss) 1.07 (.12) – 1.95 1.27




108Annual Report


Investment Summary


net assetsFidelity Total Market Index Fund Institutional Premium Class 42.4Fidelity U.S. Bond Index Fund Institutional Premium Class 34.0Fidelity International Index Fund Institutional Premium Class 18.7Fidelity Investments Money Market Government Portfolio Institutional Class 3.7Fidelity Commodity Strategy Fund 1.2

100.0





Bond Funds 34.0%


109 Annual Report



Fidelity Total Market Index Fund Institutional Premium Class(Cost $50,628,514) 1,038,559 $ 72,688,731











NET ASSETS – 100% $171,488,006


period end.



110Annual Report





June 30, 2017



















111 Annual Report




Year ended June 30,

2017

Year ended June 30,













112Annual Report


Investment Summary


net assetsFidelity Total Market Index Fund Institutional Premium Class 50.9Fidelity U.S. Bond Index Fund Institutional Premium Class 25.5Fidelity International Index Fund Institutional Premium Class 22.3Fidelity Commodity Strategy Fund 1.3

100.0





Bond Funds 25.5%

113 Annual Report












NET ASSETS – 100% $99,581,347



114Annual Report





June 30, 2017














ing funds’ shares 571,320Capital gain distributions from underlying

funds 277,031 848,351Change in net unrealized appreciation



115 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 1,712,940 $ 1,262,708Net realized gain (loss) 848,351 672,487Change in net unrealized appreciation (depreciation) 8,414,705 (1,769,119)Net increase (decrease) in net assets resulting from operations 10,975,996 166,076









Total Return 13.85% (.39)% 2.34% 21.15% 16.64%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 99,581 $ 70,810 $ 55,294 $ 39,226 $ 17,862Ratio of expenses to average net assets .09% .09% .09% .09% .15%Ratio of net investment income (loss) to average net assets 2.03% 2.06% 1.78% 1.85% 1.74%Portfolio Turnover Rate 10% 10% 9% 5% 17%


116Annual Report


Investment Summary


net assetsFidelity Total Market Index Fund Institutional Premium Class 59.5Fidelity International Index Fund Institutional Premium Class 26.0Fidelity U.S. Bond Index Fund Institutional Premium Class 13.2Fidelity Commodity Strategy Fund 1.3

100.0





Bond Funds 13.2%

117 Annual Report









Fidelity U.S. Bond Index Fund Institutional Premium Class(Cost $6,228,159) 535,281 6,209,256



NET ASSETS – 100% $47,176,641



118Annual Report





June 30, 2017






Net Assets $ 47,176,641












119 Annual Report




Year ended June 30,

2017

Year ended June 30,












Total Return C 16.41% (1.53)% 2.77% 8.40%Ratios and Supplemental Data D Net assets, end of period (in $ thousands) $ 47,177 $ 20,263 $ 7,680 $ 1,047Ratio of expenses to average net assets .09% .09% .09% .09%E

Ratio of net investment income (loss) to average net assets 1.92% 1.94% 1.53% .83%E



120Annual Report


Investment Summary


net assetsFidelity Total Market Index Fund Institutional Premium Class 65.2Fidelity International Index Fund Institutional Premium Class 28.4Fidelity U.S. Bond Index Fund Institutional Premium Class 5.0Fidelity Commodity Strategy Fund 1.4

100.0





Bond Funds 5.0%

121 Annual Report







Fidelity International Index Fund Institutional Premium Class(Cost $539,597) 14,062 568,793

Bond Funds – 5.0%

Fidelity U.S. Bond Index Fund Institutional Premium Class(Cost $98,790) 8,551 99,192



NET ASSETS – 100% $ 2,000,815



122Annual Report





June 30, 2017


$1,934,676) $ 2,000,954Receivable for units sold 2,010Distributions receivable 193




Net Asset Value, offering price and redemption price per unit ($2,000,815 / 182,212 units) $ 10.98




Investment IncomeIncome distributions from underlying funds $ 2,719ExpensesManagement and administration fees $ 395

Total expenses 395



funds’ shares (176)Capital gain distributions from underlying funds 1,024 848Change in net unrealized appreciation (deprecia-



123 Annual Report





(commencement of operations) to June 30,


OperationsNet investment income (loss) $ 2,324Net realized gain (loss) 848Change in net unrealized appreciation (depreciation) 66,278Net increase (decrease) in net assets resulting from operations 69,450

Unit transactionsProceeds from sales of units 1,931,365Net increase (decrease) in net assets resulting from unit transactions 1,931,365Total increase (decrease) in net assets 2,000,815

Net AssetsBeginning of period –End of period $ 2,000,815


Sold 182,212Net increase (decrease) 182,212




Net investment income (loss) B .03Net realized and unrealized gain (loss) .95

Total increase (decrease) from investment operations .98Net asset value, end of period $ 10.98

Total Return C 9.80%Ratios and Supplemental Data D

Net assets, end of period (in $ thousands) $ 2,001Ratio of expenses to average net assets .09%E

Ratio of net investment income (loss) to average net assets .52%E

Portfolio Turnover Rate 7%E


124Annual Report


Investment Summary


net assetsFidelity Investments Money Market Government Portfolio Institutional Class 55.0Fidelity U.S. Bond Index Fund Institutional Premium Class 45.0

100.0


Bond Funds 45.0%


125 Annual Report


Bond Funds – 45.0%Shares Value

Fidelity U.S. Bond Index Fund Institutional Premium Class(Cost $16,523,596) 1,411,249 $ 16,370,490





NET ASSETS – 100% $36,375,350


period end.



126Annual Report





June 30, 2017


$36,531,147) $ 36,378,041Receivable for units sold 21,341Distributions receivable 46,212


LiabilitiesPayable for investments purchased $ 67,563Accrued management and administration fees 2,681









funds’ shares (23,119)Capital gain distributions from underlying

funds 3,794 (19,325)Change in net unrealized appreciation (depre-

ciation) on underlying funds’ shares (400,634)Net gain (loss) (419,959)Net increase (decrease) in net assets resulting

from operations $ (6,073)

127 Annual Report


U.Fund Conservative Portfolio (Fidelity Index)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 413,886 $ 282,135Net realized gain (loss) (19,325) 4,250Change in net unrealized appreciation (depreciation) (400,634) 411,629Net increase (decrease) in net assets resulting from operations (6,073) 698,014




Sold 1,265,833 789,569Redeemed (693,187) (457,810)Net increase (decrease) 572,646 331,759

Financial Highlights U.Fund Conservative Portfolio (Fidelity Index)


Net investment income (loss) A .17 .15 .13 .13 .11Net realized and unrealized gain (loss) (.18) .21 (.04) .10 (.18)

Total increase (decrease) from investment operations (.01) .36 .09 .23 (.07)Net asset value, end of period $ 13.28 $ 13.29 $ 12.93 $ 12.84 $ 12.61

Total Return (.08)% 2.78% .70% 1.82% (.55)%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 36,375 $ 28,796 $ 23,742 $ 22,110 $ 20,198Ratio of expenses to average net assets .09% .09% .09% .09% .15%Ratio of net investment income (loss) to average net assets 1.28% 1.12% 1.03% 1.01% .89%Portfolio Turnover Rate 15% 68% 14% 16% 17%


128Annual Report


Investment Summary


net assetsFidelity Total Market Index Fund Institutional Premium Class 47.8Fidelity U.S. Bond Index Fund Institutional Premium Class 30.0Fidelity International Index Fund Institutional Premium Class 20.9Fidelity Commodity Strategy Fund 1.3

100.0





Bond Funds 30.0%

129 Annual Report












NET ASSETS – 100% $71,828,606



130Annual Report





June 30, 2017


















131 Annual Report


U.Fund Moderate Growth Portfolio (Fidelity Index)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 1,320,070 $ 1,130,550Net realized gain (loss) 1,245,898 1,043,409Change in net unrealized appreciation (depreciation) 4,939,395 (1,659,033)Net increase (decrease) in net assets resulting from operations 7,505,363 514,926





Financial Highlights U.Fund Moderate Growth Portfolio (Fidelity Index)






132Annual Report


Investment Summary


net assetsFidelity Total Market Index Fund Institutional Premium Class 68.8Fidelity International Index Fund Institutional Premium Class 29.8Fidelity Commodity Strategy Fund 1.4

100.0





133 Annual Report



Fidelity Total Market Index Fund Institutional Premium Class(Cost $53,643,924) 1,086,682 $ 76,056,898







NET ASSETS – 100% $110,593,635



134Annual Report





June 30, 2017


$84,796,622) $ 110,601,809Receivable for investments sold 64,371Receivable for units sold 13,192

















135 Annual Report


U.Fund Aggressive Growth Portfolio (Fidelity Index)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,



Unit transactionsProceeds from sales of units 19,861,093 16,075,822Cost of units redeemed (14,923,478) (15,201,322)Net increase (decrease) in net assets resulting from unit transactions 4,937,615 874,500Total increase (decrease) in net assets 21,708,462 (625,622)



Sold 1,162,188 1,060,401Redeemed (882,361) (988,705)Net increase (decrease) 279,827 71,696

Financial Highlights U.Fund Aggressive Growth Portfolio (Fidelity Index)






136Annual Report


U.Fund Intermediate Treasury Index Portfolio



June 30, 2017

AssetsInvestments in securities, at value (2,609,808

shares of Fidelity Intermediate Treasury Bond Index Fund – Premium Class; cost $28,679,435) $ 28,107,628

Receivable for units sold 9,778Distributions receivable 43,141


LiabilitiesPayable for investments purchased $ 52,920Accrued management and administration fees 2,090







Net investment income (loss) 483,742Realized and Unrealized Gain (Loss) on


ing funds’ shares (95,625)Capital gain distributions from underlying

funds 182,889 87,264Change in net unrealized appreciation

(depreciation) on underlying funds’ shares (1,455,071)Net gain (loss) (1,367,807)Net increase (decrease) in net assets result-

ing from operations $ (884,065)

137 Annual Report


U.Fund Intermediate Treasury Index PortfolioFinancial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 483,742 $ 408,550Net realized gain (loss) 87,264 186,245Change in net unrealized appreciation (depreciation) (1,455,071) 1,185,007Net increase (decrease) in net assets resulting from operations (884,065) 1,779,802

Unit transactionsProceeds from sales of units 11,644,822 9,687,112Cost of units redeemed (10,427,845) (5,548,835)Net increase (decrease) in net assets resulting from unit transactions 1,216,977 4,138,277Total increase (decrease) in net assets 332,912 5,918,079



Sold 723,343 604,059Redeemed (648,337) (349,216)Net increase (decrease) 75,006 254,843

Financial Highlights U.Fund Intermediate Treasury Index Portfolio


Net investment income (loss) A .29 .28 .28 .27 .25Net realized and unrealized gain (loss) (.82) .90 .14 .05 (.70)

Total increase (decrease) from investment operations (.53) 1.18 .42 .32 (.45)Net asset value, end of period $ 16.15 $ 16.68 $ 15.50 $ 15.08 $ 14.76

Total Return (3.18)% 7.61% 2.79% 2.17% (2.96)%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 28,106 $ 27,773 $ 21,855 $ 18,364 $ 20,632Ratio of expenses to average net assets .09% .09% .09% .10% .15%Ratio of net investment income (loss) to average net assets 1.77% 1.74% 1.82% 1.81% 1.66%


138Annual Report


U.Fund International Index Portfolio



June 30, 2017


shares of Fidelity International Index Fund – Institutional Premium Class; cost $55,046,335) $ 59,522,271

Receivable for units sold 38,003Total assets 59,560,274

LiabilitiesPayable for investments purchased $ 6,369Accrued management and administration fees 4,406Payable for units redeemed 31,635









ing funds’ shares (100,311)Capital gain distributions from underlying

funds 44,032 (56,279)Change in net unrealized appreciation



139 Annual Report


U.Fund International Index PortfolioFinancial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 1,359,620 $ 1,276,533Net realized gain (loss) (56,279) (115,645)Change in net unrealized appreciation (depreciation) 8,301,357 (6,214,538)Net increase (decrease) in net assets resulting from operations 9,604,698 (5,053,650)

Unit transactionsProceeds from sales of units 12,330,697 9,722,547Cost of units redeemed (10,259,079) (8,089,014)Net increase (decrease) in net assets resulting from unit transactions 2,071,618 1,633,533Total increase (decrease) in net assets 11,676,316 (3,420,117)




Financial Highlights U.Fund International Index Portfolio


Net investment income (loss) A .30 .29 .28 .34 .25Net realized and unrealized gain (loss) 1.85 (1.47) (.82) 2.02 1.32

Total increase (decrease) from investment operations 2.15 (1.18) (.54) 2.36 1.57Net asset value, end of period $ 12.90 $ 10.75 $ 11.93 $ 12.47 $ 10.11

Total Return 20.00% (9.89)% (4.33)% 23.34% 18.38%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 59,518 $ 47,842 $ 51,262 $ 51,337 $ 37,646Ratio of expenses to average net assets .09% .09% .09% .09% .15%Ratio of net investment income (loss) to average net assets 2.61% 2.64% 2.36% 2.91% 2.60%


140Annual Report


U.Fund Fidelity® 500 Index Portfolio



June 30, 2017


shares of Fidelity 500 Index Fund – Institu-tional Premium Class; cost $121,005,220) $ 168,924,392

Receivable for investments sold 37,095Receivable for units sold 39,111


LiabilitiesAccrued management and administration fees 12,575Payable for units redeemed 76,203














141 Annual Report


U.Fund Fidelity® 500 Index PortfolioFinancial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 2,742,070 $ 2,298,607Net realized gain (loss) 2,908,855 1,236,035Change in net unrealized appreciation (depreciation) 18,671,859 1,322,100Net increase (decrease) in net assets resulting from operations 24,322,784 4,856,742




Sold 2,270,201 1,881,358Redeemed (1,431,297) (1,007,704)Net increase (decrease) 838,904 873,654

Financial Highlights U.Fund Fidelity 500 Index Portfolio


Net investment income (loss) A .37 .35 .29 .25 .24Net realized and unrealized gain (loss) 2.87 .32 .90 2.96 1.98

Total increase (decrease) from investment operations 3.24 .67 1.19 3.21 2.22Net asset value, end of period $ 21.48 $ 18.24 $ 17.57 $ 16.38 $ 13.17

Total Return 17.76% 3.81% 7.26% 24.37% 20.27%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 168,912 $ 128,114 $ 108,059 $ 85,023 $ 57,108Ratio of expenses to average net assets .09% .09% .09% .09% .15%Ratio of net investment income (loss) to average net assets 1.84% 2.03% 1.70% 1.70% 1.96%


142Annual Report


U.Fund Total Market Index Portfolio



June 30, 2017

AssetsInvestments in securities, at value

(1,888,033 shares of Fidelity Total Market Index Fund – Institutional Premium Class; cost $90,157,961) $ 132,143,450

Receivable for units sold 69,155Total assets 132,212,605
















143 Annual Report


U.Fund Total Market Index PortfolioFinancial Statements – continued


Year ended June 30,

2017

Year ended June 30,






Sold 1,495,478 1,065,840Redeemed (1,094,810) (858,027)Net increase (decrease) 400,668 207,813

Financial Highlights U.Fund Total Market Index Portfolio


Net investment income (loss) A .34 .32 .27 .22 .20Net realized and unrealized gain (loss) 3.07 .03 .93 3.14 2.18

Total increase (decrease) from investment operations 3.41 .35 1.20 3.36 2.38Net asset value, end of period $ 21.90 $ 18.49 $ 18.14 $ 16.94 $ 13.58

Total Return 18.44% 1.93% 7.08% 24.74% 21.25%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 132,134 $ 104,130 $ 98,410 $ 83,975 $ 54,508Ratio of expenses to average net assets .09% .09% .09% .09% .15%Ratio of net investment income (loss) to average net assets 1.69% 1.81% 1.51% 1.43% 1.61%


144Annual Report


U.Fund Bank Deposit Portfolio



June 30, 2017

AssetsInvestments in bank deposit (cost









Investment IncomeInterest $ 401,384ExpensesManagement and administration fees $ 167,062

Total expenses before reductions 167,062Expense reductions (3,761) 163,301


ments –Net increase (decrease) in net assets resulting


145 Annual Report


U.Fund Bank Deposit PortfolioFinancial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 238,083 $ 108,747Net increase (decrease) in net assets resulting from operations 238,083 108,747




Sold 4,003,300 2,852,942Redeemed (2,502,210) (1,802,877)Net increase (decrease) 1,501,090 1,050,065

Financial Highlights U.Fund Bank Deposit Portfolio


Net investment income (loss) A .04 .02 .01 .01 .01Net realized and unrealized gain (loss) – – – – –


Total Return .40% .20% .10% .10% .10%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 72,128 $ 56,729 $ 46,056 $ 40,625 $ 28,589Ratio of expenses to average net assets .26% .05% .05% .05% .05%Ratio of expenses to average net assets before reductions .26% .05% .05% .05% .05%Ratio of net investment income (loss) to average net assets .38% .22% .09% .09% .10%


146Annual Report


Investment Summary


net assetsFidelity Conservative Income Bond Fund Institutional Class 11.3PIMCO Total Return Fund Institutional Class 8.5Metropolitan West Total Return Bond Fund Class I 8.5Western Asset Core Bond Fund Class I 8.5Fidelity Short-Term Bond Fund 8.4Fidelity Investments Money Market Government Portfolio Institutional Class 8.4Fidelity Total Bond Fund 6.4Prudential Total Return Bond Fund Class Z 6.3Fidelity Investment Grade Bond Fund 4.2PIMCO Real Return Fund Institutional Class 3.7

74.2




Bond Funds 48.5%


147 Annual Report



AB Select U.S. Equity Portfolio Advisor Class 12,984 $ 214,623

BBH Core Select Fund - Retail Class 8,891 116,741Credit Suisse Commodity Return

Strategy Fund 41,832 201,628Fidelity Growth Company Fund 876 142,462Fidelity Large Cap Value Enhanced

Index Fund 20,349 251,513Fidelity Real Estate Income Fund 5,134 62,941JPMorgan Small Cap Equity Fund

Class R6 3,352 187,131JPMorgan U.S. Equity Fund Class R6 26,067 413,679Loomis Sayles Growth Fund 7,643 107,771PIMCO CommoditiesPLUS Strategy

Fund Institutional Class 12,009 67,729



Acadian Emerging Markets Portfolio Institutional Class 17,445 344,715

Causeway International Value Fund Institutional Class 9,781 153,555

Fidelity Canada Fund 971 48,994MFS International Value Fund Class I 3,637 154,527MFS Research International Fund

Class I 7,338 134,294T. Rowe Price Emerging Markets Stock

Fund Class I 5,980 227,897T. Rowe Price Overseas Stock Fund I

Class 10,517 110,005William Blair International Growth

Fund Class I 4,688 131,036



BlackRock High Yield Bond Fund Institutional Class 8,905 69,194

Fidelity Floating Rate High Income Fund 3,492 33,658Fidelity Investment Grade Bond Fund 70,377 555,976Fidelity New Markets Income Fund 5,525 89,565Fidelity Total Bond Fund 78,294 834,611Hotchkis & Wiley High Yield Fund

Class I 5,647 69,227MainStay High Yield Corporate Bond

Fund Class I 10,149 58,459Metropolitan West Total Return Bond

Fund Class I 104,445 1,112,339PIMCO Real Return Fund Institutional

Class 44,664 488,625



Shares Value

PIMCO Total Return Fund Institutional Class 108,881 $ 1,113,852

Prudential Total Return Bond Fund Class Z 57,729 833,603

Western Asset Core Bond Fund Class I 88,450 1,110,936



Fidelity Conservative Income Bond Fund Institutional Class 147,073 1,476,614






NET ASSETS – 100% $13,127,889


period end.

148Annual Report





June 30, 2017














funds’ shares 72,555Capital gain distributions from underlying funds 83,404 155,959Change in net unrealized appreciation (depre-

ciation) on underlying funds’ shares 243,656Net gain (loss) 399,615Net increase (decrease) in net assets resulting


149 Annual Report


U.Fund College Portfolio (Multi-Firm)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 132,457 $ 45,189Net realized gain (loss) 155,959 (16,860)Change in net unrealized appreciation (depreciation) 243,656 31,223Net increase (decrease) in net assets resulting from operations 532,072 59,552

Unit transactionsProceeds from sales of units 12,618,790 880,314Cost of units redeemed (3,213,672) (1,756,537)Net increase (decrease) in net assets resulting from unit transactions 9,405,118 (876,223)Total increase (decrease) in net assets 9,937,190 (816,671)



Sold 1,048,212 76,366Redeemed (265,374) (152,137)Net increase (decrease) 782,838 (75,771)

Financial Highlights U.Fund College Portfolio (Multi-Firm)




Total Return 5.23% 2.07% .61% 6.35% 3.33%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 13,128 $ 3,191 $ 4,007 $ 4,348 $ 1,238Ratio of expenses to average net assets .35% .35% .35% .35% .35%Ratio of net investment income (loss) to average net assets 1.61% 1.34% 1.27% 1.04% 1.08%Portfolio Turnover Rate 56% 83% 50% 60% 43%


150Annual Report


Investment Summary


net assetsFidelity Conservative Income Bond Fund Institutional Class 9.5PIMCO Total Return Fund Institutional Class 8.5Metropolitan West Total Return Bond Fund Class I 8.5Western Asset Core Bond Fund Class I 8.5Fidelity Short-Term Bond Fund 7.1Fidelity Investments Money Market Government Portfolio Institutional Class 7.1Fidelity Total Bond Fund 6.4Prudential Total Return Bond Fund Class Z 6.4Fidelity Investment Grade Bond Fund 4.2JPMorgan U.S. Equity Fund Class R6 4.1

70.3




Bond Funds 48.4%


151 Annual Report





Strategy Fund 75,509 363,953Fidelity Growth Company Fund 2,018 328,275Fidelity Large Cap Value Enhanced


Class R6 7,727 431,413JPMorgan U.S. Equity Fund Class R6 60,156 954,672Loomis Sayles Growth Fund 17,599 248,146PIMCO CommoditiesPLUS Strategy






Fidelity Canada Fund 2,129 107,386MFS International Value Fund Class I 7,803 331,534MFS Research International Fund




Fund Class I 10,075 281,607




Fidelity Floating Rate High Income Fund 6,117 58,971Fidelity Investment Grade Bond Fund 127,204 1,004,915Fidelity New Markets Income Fund 9,474 153,570Fidelity Total Bond Fund 141,517 1,508,569Hotchkis & Wiley High Yield Fund




Class 78,053 853,898



Shares Value


Prudential Total Return Bond Fund Class Z 104,347 1,506,765










NET ASSETS – 100% $23,680,031


period end.

152Annual Report





June 30, 2017
















preciation) on underlying funds’ shares 394,202Net gain (loss) 1,025,927Net increase (decrease) in net assets resulting


153 Annual Report


U.Fund Portfolio 2018 (Multi-Firm)Financial Statements – continued


Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 313,826 $ 237,858Net realized gain (loss) 631,725 116,079Change in net unrealized appreciation (depreciation) 394,202 (9,529)Net increase (decrease) in net assets resulting from operations 1,339,753 344,408





Financial Highlights U.Fund Portfolio 2018 (Multi-Firm)


Net investment income (loss) A .21 .18 .19 .15 .15Net realized and unrealized gain (loss) .67 .03 (.02) 1.18 .76




154Annual Report


Investment Summary


net assetsPIMCO Total Return Fund Institutional Class 7.8Metropolitan West Total Return Bond Fund Class I 7.8Western Asset Core Bond Fund Class I 7.7JPMorgan U.S. Equity Fund Class R6 6.7Fidelity Conservative Income Bond Fund Institutional Class 5.9Fidelity Total Bond Fund 5.8Prudential Total Return Bond Fund Class Z 5.8Fidelity Short-Term Bond Fund 4.4Fidelity Investments Money Market Government Portfolio Institutional Class 4.4Fidelity Large Cap Value Enhanced Index Fund 4.1

60.4




Bond Funds 44.0%


155 Annual Report







Class R6 12,931 721,929JPMorgan U.S. Equity Fund Class R6 100,645 1,597,235Loomis Sayles Growth Fund 29,472 415,554PIMCO CommoditiesPLUS Strategy










Fund Class I 14,772 412,886




Fidelity Floating Rate High Income Fund 6,008 57,913Fidelity Investment Grade Bond Fund 117,116 925,213Fidelity New Markets Income Fund 9,277 150,374Fidelity Total Bond Fund 130,292 1,388,910Hotchkis & Wiley High Yield Fund




Class 64,114 701,408



Shares Value












NET ASSETS – 100% $23,901,763


period end.

156Annual Report





June 30, 2017






Net Assets $ 23,901,763










preciation) on underlying funds’ shares 770,669Net gain (loss) 1,501,950Net increase (decrease) in net assets resulting


157 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 295,785 $ 199,330Net realized gain (loss) 731,281 186,516Change in net unrealized appreciation (depreciation) 770,669 (154,420)Net increase (decrease) in net assets resulting from operations 1,797,735 231,426











158Annual Report


Investment Summary


net assetsJPMorgan U.S. Equity Fund Class R6 9.2PIMCO Total Return Fund Institutional Class 6.5Metropolitan West Total Return Bond Fund Class I 6.5Western Asset Core Bond Fund Class I 6.5Fidelity Large Cap Value Enhanced Index Fund 5.6Fidelity Total Bond Fund 4.9Prudential Total Return Bond Fund Class Z 4.9AB Select U.S. Equity Portfolio Advisor Class 4.8Acadian Emerging Markets Portfolio Institutional Class 4.2JPMorgan Small Cap Equity Fund Class R6 4.2

57.3




Bond Funds 36.7%


159 Annual Report



AB Select U.S. Equity Portfolio Advisor Class 68,897 $ 1,138,870



Index Fund 107,942 1,334,162Fidelity Real Estate Income Fund 8,800 107,894JPMorgan Small Cap Equity Fund

Class R6 17,780 992,684JPMorgan U.S. Equity Fund Class R6 138,320 2,195,147Loomis Sayles Growth Fund 40,563 571,944PIMCO CommoditiesPLUS Strategy




Acadian Emerging Markets Portfolio Institutional Class 50,670 1,001,229






Fund Class I 19,058 532,676








Class 42,056 460,089



Shares Value






Fidelity Conservative Income Bond Fund Institutional Class 88,095 884,469






NET ASSETS – 100% $23,766,211


period end.

160Annual Report





June 30, 2017






Net Assets $ 23,766,211












161 Annual Report




Year ended June 30,

2017

Year ended June 30,










Total increase (decrease) from investment operations 1.72 – .33 2.12 1.52Net asset value, end of period $ 16.98 $ 15.26 $ 15.26 $ 14.93 $ 12.81

Total Return 11.27% –% 2.21% 16.55% 13.46%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 23,766 $ 15,839 $ 11,532 $ 7,930 $ 4,289Ratio of expenses to average net assets .35% .35% .35% .35% .35%Ratio of net investment income (loss) to average net assets 1.35% 1.21% 1.30% 1.03% 1.27%Portfolio Turnover Rate 78% 66% 22% 37% 21%


162Annual Report


Investment Summary


net assetsJPMorgan U.S. Equity Fund Class R6 11.8Fidelity Large Cap Value Enhanced Index Fund 7.1AB Select U.S. Equity Portfolio Advisor Class 6.1JPMorgan Small Cap Equity Fund Class R6 5.3PIMCO Total Return Fund Institutional Class 5.2Metropolitan West Total Return Bond Fund Class I 5.1Western Asset Core Bond Fund Class I 5.1Acadian Emerging Markets Portfolio Institutional Class 4.8Fidelity Growth Company Fund 4.0Fidelity Total Bond Fund 3.9

58.4




Bond Funds 28.8%


163 Annual Report







Class R6 22,768 1,271,144JPMorgan U.S. Equity Fund Class R6 177,308 2,813,882Loomis Sayles Growth Fund 51,872 731,398PIMCO CommoditiesPLUS Strategy










Fund Class I 23,499 656,795








Class 16,902 184,911



Shares Value












NET ASSETS – 100% $23,936,142


period end.

164Annual Report





June 30, 2017






Net Assets $ 23,936,142












165 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 246,203 $ 147,809Net realized gain (loss) 816,913 320,482Change in net unrealized appreciation (depreciation) 1,446,163 (477,762)Net increase (decrease) in net assets resulting from operations 2,509,279 (9,471)









Total Return 13.61% (.94)% 2.43% 18.75% 15.73%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 23,936 $ 15,868 $ 12,354 $ 8,487 $ 4,095Ratio of expenses to average net assets .35% .35% .35% .35% .35%Ratio of net investment income (loss) to average net assets 1.26% 1.07% 1.10% .95% 1.23%Portfolio Turnover Rate 81% 63% 19% 32% 19%


166Annual Report


Investment Summary


net assetsJPMorgan U.S. Equity Fund Class R6 14.3Fidelity Large Cap Value Enhanced Index Fund 8.7AB Select U.S. Equity Portfolio Advisor Class 7.4JPMorgan Small Cap Equity Fund Class R6 6.5Acadian Emerging Markets Portfolio Institutional Class 5.4Fidelity Growth Company Fund 4.9BBH Core Select Fund – Retail Class 4.0MFS International Value Fund Class I 3.8Causeway International Value Fund Institutional Class 3.8Loomis Sayles Growth Fund 3.7

62.5




Bond Funds 19.9%


167 Annual Report




BBH Core Select Fund - Retail Class 122,609 1,609,856Credit Suisse Commodity Return

Strategy Fund 128,137 617,621Fidelity Growth Company Fund 12,107 1,969,488Fidelity Large Cap Value Enhanced


Class R6 46,354 2,587,924JPMorgan U.S. Equity Fund Class R6 361,361 5,734,802Loomis Sayles Growth Fund 105,460 1,486,986PIMCO CommoditiesPLUS Strategy





Causeway International Value Fund Institutional Class 97,283 1,527,337

Fidelity Canada Fund 9,737 491,129MFS International Value Fund Class I 36,157 1,536,328MFS Research International Fund

Class I 72,832 1,332,835T. Rowe Price Emerging Markets Stock

Fund Class I 37,535 1,430,454T. Rowe Price Overseas Stock Fund I

Class 104,711 1,095,281William Blair International Growth

Fund Class I 46,636 1,303,487








Class 26,369 288,478



Shares Value












NET ASSETS – 100% $40,150,554


period end.

168Annual Report





June 30, 2017






Net Assets $ 40,150,554









funds 619,898 1,444,651Change in net unrealized appreciation (de-



169 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 372,768 $ 209,863Net realized gain (loss) 1,444,651 601,709Change in net unrealized appreciation (depreciation) 3,093,922 (1,123,713)Net increase (decrease) in net assets resulting from operations 4,911,341 (312,141)









Total Return 16.01% (1.95)% 2.69% 20.21% 16.86%Ratios and Supplemental Data B Net assets, end of period (in $ thousands) $ 40,151 $ 27,371 $ 22,023 $ 14,535 $ 6,493Ratio of expenses to average net assets .35% .35% .35% .35% .35%Ratio of net investment income (loss) to average net assets 1.12% .88% .92% .93% 1.24%Portfolio Turnover Rate 84% 58% 11% 29% 20%


170Annual Report


Investment Summary


net assetsJPMorgan U.S. Equity Fund Class R6 16.8Fidelity Large Cap Value Enhanced Index Fund 10.2AB Select U.S. Equity Portfolio Advisor Class 8.7JPMorgan Small Cap Equity Fund Class R6 7.6Acadian Emerging Markets Portfolio Institutional Class 5.9Fidelity Growth Company Fund 5.7BBH Core Select Fund – Retail Class 4.7MFS International Value Fund Class I 4.4Causeway International Value Fund Institutional Class 4.4Loomis Sayles Growth Fund 4.3

72.7




Bond Funds 7.5%


171 Annual Report







Class R6 22,977 1,282,793JPMorgan U.S. Equity Fund Class R6 179,230 2,844,379Loomis Sayles Growth Fund 52,225 736,375PIMCO CommoditiesPLUS Strategy










Fund Class I 22,754 635,972


Bond Funds – 7.5%





Fund Class I 14,714 156,709PIMCO Real Return Fund Institutional

Class 11,562 126,493



Shares Value

PIMCO Total Return Fund Institutional Class 15,335 $ 156,876


Western Asset Core Bond Fund Class I 12,464 156,553









NET ASSETS – 100% $16,957,994


period end.

172Annual Report





June 30, 2017


















173 Annual Report




Year ended June 30,

2017

Year ended June 30,


OperationsNet investment income (loss) $ 111,449 $ 31,727Net realized gain (loss) 465,043 447Change in net unrealized appreciation (depreciation) 1,436,137 (37,618)Net increase (decrease) in net assets resulting from operations 2,012,629 (5,444)










Total Return C 18.27% (2.90)% 2.98% 7.30%Ratios and Supplemental Data D Net assets, end of period (in $ thousands) $ 16,958 $ 7,765 $ 3,246 $ 401Ratio of expenses to average net assets .35% .35% .35% .35%E

Ratio of net investment income (loss) to average net assets .93% .61% .66% .51%E



174Annual Report


Investment Summary


net assetsJPMorgan U.S. Equity Fund Class R6 18.5Fidelity Large Cap Value Enhanced Index Fund 11.3AB Select U.S. Equity Portfolio Advisor Class 9.6JPMorgan Small Cap Equity Fund Class R6 8.4Fidelity Growth Company Fund 6.4Acadian Emerging Markets Portfolio Institutional Class 6.3BBH Core Select Fund – Retail Class 5.2Loomis Sayles Growth Fund 4.9MFS International Value Fund Class I 4.8Causeway International Value Fund Institutional Class 4.8

80.2




Bond Funds 1.0%


175 Annual Report





Strategy Fund 747 3,600Fidelity Growth Company Fund 202 32,871Fidelity Large Cap Value Enhanced

Index Fund 4,686 57,919Fidelity Real Estate Income Fund 59 728JPMorgan Small Cap Equity Fund

Class R6 773 43,129JPMorgan U.S. Equity Fund Class R6 5,999 95,202Loomis Sayles Growth Fund 1,765 24,891PIMCO CommoditiesPLUS Strategy

Fund Institutional Class 214 1,205

TOTAL U.S. EQUITY FUNDS(Cost $329,641) 335,916




Fidelity Canada Fund 155 7,818MFS International Value Fund Class I 581 24,691MFS Research International Fund


Fund Class I 558 21,281T. Rowe Price Overseas Stock Fund I


Fund Class I 749 20,935

TOTAL NON – U.S. EQUITY FUNDS(Cost $165,383) 170,445

Bond Funds – 1.0%

BlackRock High Yield Bond Fund Institutional Class 114 882

Fidelity Floating Rate High Income Fund 39 376Fidelity Investment Grade Bond Fund 1 4Fidelity New Markets Income Fund 57 927Fidelity Total Bond Fund 1 6Hotchkis & Wiley High Yield Fund

Class I 72 881MainStay High Yield Corporate Bond

Fund Class I 130 751Metropolitan West Total Return Bond

Fund Class I 1 8PIMCO Real Return Fund Institutional

Class 113 1,233



Shares Value

PIMCO Total Return Fund Institutional Class 1 $ 8

Prudential Total Return Bond Fund Class Z 0 6

Western Asset Core Bond Fund Class I 1 8

TOTAL BOND FUNDS(Cost $5,106) 5,090


Fidelity Conservative Income Bond Fund Institutional Class 105 1,053

Fidelity Investments Money Market Government Portfolio Institutional Class 0.85% (a) 789 789

Fidelity Short-Term Bond Fund 92 789


TOTAL INVESTMENT PORTFOLIO – 100.0%(Cost $502,761) 514,082


NET ASSETS – 100% $ 513,953


period end.

176Annual Report





June 30, 2017

AssetsInvestments in securities at value (cost $502,761) $ 514,082Receivable for investments sold 5,998Receivable for units sold 1,906Distributions receivable 268

Total assets 522,254


Total liabilities 8,301Net Assets $ 513,953

Net Asset Value, offering price and redemption price per unit ($513,953 / 46,362 units) $ 11.09




Investment IncomeIncome distributions from underlying funds $ 453ExpensesManagement and administration fees $ 312

Total expenses 312

Net investment income (loss) 141Realized and Unrealized Gain (Loss) on Invest-


funds’ shares 1,587Capital gain distributions from underlying funds 155 1,742Change in net unrealized appreciation (deprecia-



177 Annual Report






Increase (Decrease) in Net Assets:

OperationsNet investment income (loss) $ 141Net realized gain (loss) 1,742Change in net unrealized appreciation (depreciation) 11,321Net increase (decrease) in net assets resulting from operations 13,204

Unit transactionsProceeds from sales of units 531,068Cost of units redeemed (30,319)Net increase (decrease) in net assets resulting from unit transactions 500,749Total increase (decrease) in net assets 513,953

Net AssetsBeginning of period –End of period $ 513,953


Sold 49,096Redeemed (2,734)Net increase (decrease) 46,362




Net investment income (loss) B .01Net realized and unrealized gain (loss) 1.08

Total increase (decrease) from investment operations 1.09Net asset value, end of period $ 11.09

Total Return C 10.90%Ratios and Supplemental Data D

Net assets, end of period (in $ thousands) $ 514Ratio of expenses to average net assets .35%E

Ratio of net investment income (loss) to average net assets .16%E

Portfolio Turnover Rate 45%E


178Annual Report

Notes to Financial StatementsFor the period ended June 30, 2017

1. Organization:

The Massachusetts Educational Financing Authority Higher Education Savings Plan Trust (Trust) was established to promote and operate a higher education savings program – the U.Fund College Investing Plan (Plan) – under section 529 of the Internal Revenue Code of 1986, as amended. The Executive Director of Massachusetts Educational Financing Authority (MEFA) is the Trustee of the Trust.

These financials report on the following Portfolios (Portfolios):

U.Fund College Portfolio (Fidelity Funds) U.Fund Portfolio 2033 (Fidelity Index)U.Fund Portfolio 2018 (Fidelity Funds) U.Fund Portfolio 2036 (Fidelity Index)U.Fund Portfolio 2021 (Fidelity Funds) U.Fund Conservative Portfolio (Fidelity Index)U.Fund Portfolio 2024 (Fidelity Funds) U.Fund Moderate Growth Portfolio (Fidelity Index)U.Fund Portfolio 2027 (Fidelity Funds) U.Fund Aggressive Growth Portfolio (Fidelity Index)U.Fund Portfolio 2030 (Fidelity Funds) U.Fund Intermediate Treasury Index PortfolioU.Fund Portfolio 2033 (Fidelity Funds) U.Fund International Index PortfolioU.Fund Portfolio 2036 (Fidelity Funds) U.Fund Fidelity 500 Index PortfolioU.Fund Conservative Portfolio (Fidelity Funds) U.Fund Total Market Index PortfolioU.Fund Moderate Growth Portfolio (Fidelity Funds) U.Fund Bank Deposit PortfolioU.Fund Aggressive Growth Portfolio (Fidelity Funds) U.Fund College Portfolio (Multi-Firm)U.Fund Money Market Portfolio U.Fund Portfolio 2018 (Multi-Firm)U.Fund College Portfolio (Fidelity Index) U.Fund Portfolio 2021 (Multi-Firm)U.Fund Portfolio 2018 (Fidelity Index) U.Fund Portfolio 2024 (Multi-Firm)U.Fund Portfolio 2021 (Fidelity Index) U.Fund Portfolio 2027 (Multi-Firm)U.Fund Portfolio 2024 (Fidelity Index) U.Fund Portfolio 2030 (Multi-Firm)U.Fund Portfolio 2027 (Fidelity Index) U.Fund Portfolio 2033 (Multi-Firm)U.Fund Portfolio 2030 (Fidelity Index) U.Fund Portfolio 2036 (Multi-Firm)

Fidelity Funds Portfolios invest in a combination of Fidelity equity, commodity, fixed-income and short-term funds, which are primarily actively managed by Fidelity Management & Research Company (FMR), an affiliated adviser or sub-adviser, or Geode Capital Management, LLC (Geode), a registered investment adviser. Fidelity Index Portfolios invest in a combination of Fidelity equity, commodity, fixed-income and short-term funds, which are primarily passively managed by FMR, an affiliated adviser or sub-adviser, or Geode. There are individual fund Portfolios which invest in a single equity, fixed-income or money market fund, also managed by FMR, an affiliated adviser or sub-adviser, or Geode. U.Fund Bank Deposit Portfolio invests in an interest-bearing account held at Wells Fargo Bank, N.A. Multi-Firm Portfolios invest in a combination of equity, commodity, fixed-income and short-term funds managed by FMR, an affiliated adviser or sub-adviser, or Geode, and non-affiliated mutual funds that participate in Fidelity’s Funds-Network (Third Party funds). Third Party funds and Fidelity equity, commodity, fixed-income and short-term funds are collectively referred to as Underlying Funds.

The following Portfolios commenced operations on December 14, 2016:

U.Fund Portfolio 2036 (Fidelity Funds) U.Fund Portfolio 2036 (Fidelity Index) U.Fund Portfolio 2036 (Multi-Firm)

The following Portfolios liquidated on December 9, 2016, and all remaining assets transferred as follows:

U.Fund Portfolio 2015 (Fidelity Funds) transferred into U.Fund College Portfolio (Fidelity Funds) U.Fund Portfolio 2015 (Fidelity Index) transferred into U.Fund College Portfolio (Fidelity Index) U.Fund Portfolio 2015 (Multi-Firm) transferred into U.Fund College Portfolio (Multi-Firm)

2. Significant Accounting Policies:

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued, September 15, 2017, have been evaluated in the preparation of the financial statements. The Portfolios qualify as investment companies under FASB ASC 946 Financial Services -Investment Companies and follow the accounting and reporting guidance for investment companies. The Portfolios’ Schedule of Investments or Statements of Assets and Liabilities lists each of the Underlying Funds as an investment of each Portfolio but do not include the underlying hold-ings of each Underlying Fund. The following summarizes the significant accounting policies of the Portfolios:

179 Annual Report

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Portfolio categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1 – quoted prices in active markets for identical investments

Level 2 – other significant observable inputs

Level 3 – unobservable inputs (including each Portfolio’s own assumptions based on the best information available)

Valuation techniques used to value each Portfolio’s investments by major category are as follows: Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy. If a Third Party fund’s NAV is unavailable, shares of that fund may be valued by another method that the FMR Fair Value Committee believes reflects fair value in accordance with fair value pricing policies adopted for the Portfolios and is categorized as Level 2 in the hierarchy. As of June 30, 2017, all investments held by the Portfolios are categorized as Level 1 under the Fair Value Hierarchy.

Investment Transactions and Income. For financial reporting purposes, the Portfolios’ investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per unit for processing participant transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time, and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of average cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned. There are no distributions of net invest-ment gains or net investment income to the Portfolios’ participants or beneficiaries.

Expenses. Expenses are recorded on the accrual basis. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Expenses included in the accompanying financial statements reflect the expenses of each Portfolio and do not include any expenses associated with the Underlying Funds.

Short-Term Trading (Redemption) Fees. Units held in U.Fund International Index Portfolio and U.Fund Total Market Index Portfolio less than 90 days were subject to a redemption fee equal to 1.00% and 0.50%, respectively of the proceeds of the redeemed units. The fee was imposed by the mutual fund in which the Portfolio invests, not by the Portfolio. All redemption fees were retained by the fund, not by the Portfolio and were part of the fund’s assets. Effective December 12, 2016, the funds eliminated the redemption fees.

Other. There are no unrecognized tax benefits in the accompanying financial statements in connection with the tax positions taken by each Portfolio. The Portfolios do not file any tax returns since the Trust is exempt from federal and state income tax under Section 529 of the Internal Revenue Code.

3. Fees

The Trustee has entered into a Management and Administrative Services agreement with Fidelity Brokerage Services, LLC (FBS) to provide administrative, record keeping, distribution and marketing services to the Trust. According to this agreement and a related investment advisory agreement with FMR Co., Inc., an investment adviser registered under the Investment Advisers Act of 1940 that provides investment manage-ment services to the Trust, a Management and Administration Fee is charged to the Portfolios at an annual rate based on the net assets of each Portfolio. The Management and Administration Fee has up to three components, a Program Manager Fee that is paid to FMR Co., Inc., a Bank Administration Fee that is paid to FBS and a State Fee that is paid to the Trustee.

For Fidelity Funds Portfolios that invest in underlying actively managed funds, the Program Manager Fee is charged at an annual rate of .10%. For Fidelity Index Portfolios that invest in underlying index funds, the Program Manager Fee is charged at an annual rate of .045%. For Multi-Firm Portfolios that invest in Fidelity funds and Third party funds, the Program Manager Fee is charged at an annual rate of .25%. For U.Fund Bank Deposit Portfolio, the Program Manager Fee is charged at an annual rate ranging from .00% to .05% depending on the daily Federal Funds Target Rate.

The Bank Administration Fee paid to Fidelity for its administration services in connection with U.Fund Bank Deposit Portfolio is charged at an annual rate ranging from .00% to .40% depending on the daily Federal Funds Target Rate. The Bank Administration Fee is charged only to the Bank Deposit Portfolio.

For Fidelity Funds Portfolios that invest in underlying actively managed funds, the State Fee is charged at an annual rate of .10%. For Fidelity Index Portfolios that invest in underlying index funds, the State Fee is charged at an annual rate of .045%. For Multi-Firm Portfolios that invest in Fidelity funds and Third party funds, the State fee is charged at an annual rate of .10%. For U.Fund Bank Deposit Portfolio, the State Fee is charged at an annual rate of .05%.

For the period ended June 30, 2017, FMR voluntarily agreed to waive certain expenses of the U.Fund Bank Deposit Portfolio and the U.Fund Money Market Portfolio. Waivers are shown on the Portfolio’s Statement of Operations under the caption “Expense reductions”.

U.Fund Bank Deposit Portfolio $ 3,761U.Fund Money Market Portfolio $ 28,126

180Annual Report

Notes to Financial Statements – continued

4. Other Information:

In the normal course of business, the Portfolios may enter into contracts that provide general indemnifications. The Portfolios’ maximum expo-sure under these arrangements is unknown as this would be dependent on future claims that may be made against the Portfolios. The risk of material loss from such claims is considered remote.

The Portfolios do not invest in the Underlying Funds for the purpose of exercising management or control; however, investments by the Portfolios within their principal investment strategies may represent a significant portion of an Underlying Fund’s net assets. At the end of the period, no Portfolios held a significant portion of the outstanding shares of any Underlying Fund.

181 Annual Report

Report of Independent Auditors

To the Trustee of the Massachusetts Educational Financing Authority Higher Education Savings Plan Trust and the Participants of the U. Fund College Investing Plan:

We have audited the accompanying financial statements of the U. Fund College Investing Plan (“the Plan”), which comprise the statements of assets and liabilities, including the schedules of investments, as of June 30, 2017 and the related statements of operations, of changes in net assets, and the financial highlights for the periods indicated for the following Portfolios (“the Portfolios”):

U.Fund College Portfolio (Fidelity Funds) U.Fund Portfolio 2033 (Fidelity Index)U.Fund Portfolio 2018 (Fidelity Funds) U.Fund Portfolio 2036 (Fidelity Index)U.Fund Portfolio 2021 (Fidelity Funds) U.Fund Conservative Portfolio (Fidelity Index)U.Fund Portfolio 2024 (Fidelity Funds) U.Fund Moderate Growth Portfolio (Fidelity Index)U.Fund Portfolio 2027 (Fidelity Funds) U.Fund Aggressive Growth Portfolio (Fidelity Index)U.Fund Portfolio 2030 (Fidelity Funds) U.Fund Intermediate Treasury Index PortfolioU.Fund Portfolio 2033 (Fidelity Funds) U.Fund International Index PortfolioU.Fund Portfolio 2036 (Fidelity Funds) U.Fund Fidelity 500 Index PortfolioU.Fund Conservative Portfolio (Fidelity Funds) U.Fund Total Market Index PortfolioU.Fund Moderate Growth Portfolio (Fidelity Funds) U.Fund Bank Deposit PortfolioU.Fund Aggressive Growth Portfolio (Fidelity Funds) U.Fund College Portfolio (Multi-Firm)U.Fund Money Market Portfolio U.Fund Portfolio 2018 (Multi-Firm)U.Fund College Portfolio (Fidelity Index) U.Fund Portfolio 2021 (Multi-Firm)U.Fund Portfolio 2018 (Fidelity Index) U.Fund Portfolio 2024 (Multi-Firm)U.Fund Portfolio 2021 (Fidelity Index) U.Fund Portfolio 2027 (Multi-Firm)U.Fund Portfolio 2024 (Fidelity Index) U.Fund Portfolio 2030 (Multi-Firm)U.Fund Portfolio 2027 (Fidelity Index) U.Fund Portfolio 2033 (Multi-Firm)U.Fund Portfolio 2030 (Fidelity Index) U.Fund Portfolio 2036 (Multi-Firm)

These financial statements and financial highlights are hereafter collectively referred to as “financial statements”.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles gener-ally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The proce-dures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Plan’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appro-priateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position as of June 30, 2017, and the results of their operations, changes in their net assets and the financial highlights for the periods indicated, in accordance with accounting principles generally accepted in the United States of America.

PricewaterhouseCoopers LLP Boston, Massachusetts September 15, 2017

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183 Annual Report

The U.Fund College Investing Plan is a program of the Massachusetts Educational Financing Authority and administered by Fidelity Investments. Fidelity, Fidelity Investments and the pyramid design are registered trademarks of FMR LLC. Strategic Advisers is a service mark of FMR LLC. The third-party marks appearing in this document are the marks of their respective owners.

Brokerage services provided by Fidelity Brokerage Services LLC, Member NYSE, SIPC.

1.728616.118 500520.10.0 MA-CIT-ANN-0917

Documents

Annual Report - Fidelity Investments · PDF fileInvesting Plan Annual Report. The Annual Report reviews the financial highlights of the U.Fund for the period July 1, 2016, through