UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-2105

Fidelity Fixed-Income Trust
(Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices)       (Zip code)

Scott C. Goebel, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:	August 31
Date of reporting period:	February 28, 2011

Item 1. Reports to Stockholders

Fidelity®
Corporate Bond
Fund

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, indirectly bears its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, indirectly bears its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Class A	.78%
Actual		$ 1,000.00	$ 1,014.10	$ 3.90
HypotheticalA		$ 1,000.00	$ 1,020.93	$ 3.91
Class T	.75%
Actual		$ 1,000.00	$ 1,015.00	$ 3.75
HypotheticalA		$ 1,000.00	$ 1,021.08	$ 3.76
Class C	1.56%
Actual		$ 1,000.00	$ 1,011.00	$ 7.78
HypotheticalA		$ 1,000.00	$ 1,017.06	$ 7.80
Corporate Bond	.46%
Actual		$ 1,000.00	$ 1,015.70	$ 2.30
HypotheticalA		$ 1,000.00	$ 1,022.51	$ 2.31
Institutional Class	.43%
Actual		$ 1,000.00	$ 1,015.80	$ 2.15
HypotheticalA		$ 1,000.00	$ 1,022.66	$ 2.16

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invested are not included in the Fund's annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

The information in the following tables as of August 31, 2010 is based on the combined investments of the Fund and its pro-rata share of its investments in each Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations 6.5%		U.S. Government and U.S. Government Agency Obligations 13.0%
	AAA 0.0%		AAA 0.1%
	AA 9.4%		AA 7.1%
	A 19.8%		A 25.5%
	BBB 45.3%		BBB 49.8%
	BB and Below 10.0%		BB and Below 5.4%
	Not Rated 1.0%		Not Rated 0.0%
	Short-Term Investments and Net Other Assets 8.0%		Short-Term Investments and Net Other Assets † (0.9)%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	10.6	10.8

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	6.3	6.3

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011 *		As of August 31, 2010 **
	Corporate Bonds 79.8%		Corporate Bonds 86.0%
	U.S. Government and U.S. Government Agency Obligations 6.5%		U.S. Government and U.S. Government Agency Obligations 13.0%
	Municipal Bonds 4.4%		Municipal Bonds 1.5%
	Other Investments 1.3%		Other Investments 0.4%
	Short-Term Investments and Net Other Assets 8.0%		Short-Term Investments and Net Other Assets † (0.9)%

* Foreign investments	15.5%	** Foreign investments	13.7%
* Futures and Swaps	0.0%	** Futures and Swaps	0.8%

^† Short-Term Investments and Net Other Assets are not included in the pie chart.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 79.8%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 5.7%
Household Durables - 1.6%
Fortune Brands, Inc.:
5.375% 1/15/16	$ 239,000		$ 251,447
6.375% 6/15/14	182,000		199,788
Whirlpool Corp.:
6.125% 6/15/11	152,000		154,266
6.5% 6/15/16	85,000		94,753
			700,254
Media - 3.8%
Comcast Corp. 6.4% 3/1/40	250,000		260,106
Discovery Communications LLC 6.35% 6/1/40	221,000		232,523
NBC Universal, Inc.:
3.65% 4/30/15 (b)	129,000		131,845
6.4% 4/30/40 (b)	390,000		407,454
News America, Inc. 6.9% 8/15/39	300,000		335,727
Time Warner, Inc. 6.2% 3/15/40	300,000		305,656
			1,673,311
Specialty Retail - 0.3%
Staples, Inc. 7.375% 10/1/12	100,000		108,729
TOTAL CONSUMER DISCRETIONARY			2,482,294
CONSUMER STAPLES - 2.5%
Beverages - 0.8%
Anheuser-Busch InBev Worldwide, Inc. 5.375% 11/15/14 (b)	218,000		240,879
FBG Finance Ltd. 5.125% 6/15/15 (b)	131,000		139,216
			380,095
Food Products - 0.8%
Kraft Foods, Inc.:
5.625% 11/1/11	21,000		21,666
6.5% 8/11/17	274,000		314,755
			336,421
Tobacco - 0.9%
Altria Group, Inc. 9.7% 11/10/18	182,000		239,598
Reynolds American, Inc. 6.75% 6/15/17	131,000		147,476
			387,074
TOTAL CONSUMER STAPLES			1,103,590
Nonconvertible Bonds - continued
	Principal Amount		Value
ENERGY - 12.7%
Energy Equipment & Services - 3.4%
DCP Midstream LLC 5.35% 3/15/20 (b)	$ 116,000		$ 120,217
El Paso Pipeline Partners Operating Co. LLC 6.5% 4/1/20	658,000		725,850
Noble Holding International Ltd. 3.05% 3/1/16	450,000		447,256
Weatherford International Ltd.:
4.95% 10/15/13	78,000		82,902
5.15% 3/15/13	102,000		107,760
			1,483,985
Oil, Gas & Consumable Fuels - 9.3%
Anadarko Petroleum Corp.:
5.95% 9/15/16	393,000		431,077
6.375% 9/15/17	71,000		79,136
BW Group Ltd. 6.625% 6/28/17 (b)	132,000		133,290
Duke Energy Field Services 5.375% 10/15/15 (b)	54,000		57,963
El Paso Natural Gas Co. 5.95% 4/15/17	492,000		536,112
EnCana Holdings Finance Corp. 5.8% 5/1/14	129,000		143,420
Gulf South Pipeline Co. LP 5.75% 8/15/12 (b)	172,000		181,453
Marathon Petroleum Corp. 6.5% 3/1/41 (b)	220,000		222,880
Midcontinent Express Pipeline LLC 5.45% 9/15/14 (b)	480,000		522,180
Nexen, Inc.:
5.05% 11/20/13	184,000		196,228
5.2% 3/10/15	41,000		43,587
6.2% 7/30/19	324,000		346,552
6.4% 5/15/37	158,000		151,208
NGPL PipeCo LLC 6.514% 12/15/12 (b)	159,000		171,395
Petrobras International Finance Co. Ltd.:
3.875% 1/27/16	39,000		39,384
5.75% 1/20/20	427,000		443,076
Petroleos Mexicanos 6% 3/5/20	116,000		121,510
Plains All American Pipeline LP/PAA Finance Corp. 5% 2/1/21	14,000		14,031
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 3/15/14 (b)	93,100		100,781
Rockies Express Pipeline LLC 6.25% 7/15/13 (b)	121,000		130,035
Spectra Energy Capital, LLC 5.65% 3/1/20	56,000		59,275
			4,124,573
TOTAL ENERGY			5,608,558
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - 41.7%
Capital Markets - 6.0%
Goldman Sachs Group, Inc.:
5.95% 1/18/18	$ 178,000		$ 193,242
6.15% 4/1/18	204,000		223,478
Janus Capital Group, Inc. 6.125% 9/15/11 (a)	107,000		108,789
Lazard Group LLC:
6.85% 6/15/17	171,000		182,144
7.125% 5/15/15	61,000		67,129
Merrill Lynch & Co., Inc. 7.75% 5/14/38	450,000		509,815
Morgan Stanley:
4% 7/24/15	447,000		457,844
5.5% 7/24/20	225,000		227,185
5.625% 9/23/19	219,000		224,817
6% 4/28/15	255,000		279,281
6.625% 4/1/18	153,000		169,124
			2,642,848
Commercial Banks - 13.2%
Comerica, Inc. 4.8% 5/1/15	107,000		112,867
Credit Suisse New York Branch 6% 2/15/18	122,000		130,268
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (b)(d)	139,000		136,394
Discover Bank 7% 4/15/20	350,000		385,993
Export-Import Bank of Korea 5.5% 10/17/12	101,000		106,632
Fifth Third Bancorp 8.25% 3/1/38	1,273,000		1,534,248
Fifth Third Capital Trust IV 6.5% 4/15/67 (d)	36,000		35,100
HSBC Holdings PLC 6.5% 9/15/37	100,000		103,673
JPMorgan Chase Bank 6% 10/1/17	1,424,000		1,569,461
Marshall & Ilsley Bank 5% 1/17/17	93,000		96,931
Regions Bank 7.5% 5/15/18	670,000		710,200
Regions Financial Corp. 0.4728% 6/26/12 (d)	61,000		58,068
Silicon Valley Bank 5.7% 6/1/12	406,000		417,687
UniCredit Luxembourg Finance SA 5.584% 1/13/17 (b)(d)	131,000		125,474
Union Planters Corp. 7.75% 3/1/11	87,000		87,000
UnionBanCal Corp. 5.25% 12/16/13	30,000		32,288
Wachovia Corp. 5.625% 10/15/16	152,000		165,614
			5,807,898
Consumer Finance - 3.4%
Discover Financial Services:
6.45% 6/12/17	107,000		116,010
10.25% 7/15/19	105,000		135,949
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Consumer Finance - continued
General Electric Capital Corp.:
4.625% 1/7/21	$ 1,000,000		$ 993,746
5.875% 1/14/38	150,000		150,492
HSBC Finance Corp. 5.9% 6/19/12	104,000		109,829
			1,506,026
Diversified Financial Services - 9.2%
BP Capital Markets PLC:
3.125% 10/1/15	608,000		616,916
3.625% 5/8/14	388,000		405,444
4.5% 10/1/20	300,000		301,298
Capital One Capital V 10.25% 8/15/39	441,000		479,036
Capital One Capital VI 8.875% 5/15/40	100,000		106,125
Citigroup, Inc.:
6.125% 5/15/18	75,000		82,232
6.5% 8/19/13	433,000		477,222
6.875% 3/5/38	175,000		192,845
8.5% 5/22/19	100,000		124,004
General Electric Capital Corp. 5.3% 2/11/21	460,000		472,206
Prime Property Funding II 5.6% 6/15/11 (b)	364,000		366,774
Prime Property Funding, Inc. 5.7% 4/15/17 (b)	76,000		78,032
TECO Finance, Inc. 5.15% 3/15/20	114,000		118,010
TransCapitalInvest Ltd. 5.67% 3/5/14 (b)	195,000		206,435
			4,026,579
Insurance - 3.2%
Aon Corp. 6.25% 9/30/40	253,000		261,983
Assurant, Inc. 5.625% 2/15/14	85,000		90,110
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (b)(d)	66,000		67,650
Monumental Global Funding II 5.65% 7/14/11 (b)	74,000		74,948
Monumental Global Funding III 5.5% 4/22/13 (b)	98,000		104,311
Pacific Life Global Funding 5.15% 4/15/13 (b)	152,000		161,696
Pacific LifeCorp 6% 2/10/20 (b)	100,000		105,565
Prudential Financial, Inc. 5.15% 1/15/13	144,000		152,907
QBE Insurance Group Ltd. 5.647% 7/1/23 (b)(d)	58,000		54,271
Symetra Financial Corp. 6.125% 4/1/16 (b)	215,000		224,752
Unum Group 7.125% 9/30/16	106,000		120,122
			1,418,315
Real Estate Investment Trusts - 2.6%
CommonWealth REIT 5.875% 9/15/20	260,000		264,835
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Real Estate Investment Trusts - continued
Developers Diversified Realty Corp.:
5.25% 4/15/11	$ 109,000		$ 109,431
5.375% 10/15/12	57,000		59,029
Equity One, Inc. 6.25% 12/15/14	223,000		239,231
Federal Realty Investment Trust:
5.95% 8/15/14	100,000		110,683
6% 7/15/12	131,000		138,722
Washington (REIT):
5.25% 1/15/14	58,000		61,159
5.95% 6/15/11	162,000		163,898
			1,146,988
Real Estate Management & Development - 3.3%
Brandywine Operating Partnership LP 5.75% 4/1/12	183,000		188,524
Duke Realty LP:
5.4% 8/15/14	126,000		134,502
5.625% 8/15/11	134,000		136,144
Liberty Property LP:
5.125% 3/2/15	141,000		149,153
5.5% 12/15/16	66,000		71,502
Mack-Cali Realty LP 7.75% 8/15/19	126,000		151,372
Tanger Properties LP 6.125% 6/1/20	586,000		633,821
			1,465,018
Thrifts & Mortgage Finance - 0.8%
First Niagara Financial Group, Inc. 6.75% 3/19/20	325,000		353,199
TOTAL FINANCIALS			18,366,871
HEALTH CARE - 0.3%
Pharmaceuticals - 0.3%
Watson Pharmaceuticals, Inc. 5% 8/15/14	130,000		140,393
INDUSTRIALS - 0.9%
Aerospace & Defense - 0.3%
BAE Systems Holdings, Inc. 4.95% 6/1/14 (b)	103,000		109,842
Airlines - 0.6%
Continental Airlines, Inc. 6.648% 3/15/19	125,776		131,184
Nonconvertible Bonds - continued
	Principal Amount		Value
INDUSTRIALS - continued
Airlines - continued
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	$ 73,882		$ 72,330
8.36% 7/20/20	55,376		56,289
			259,803
TOTAL INDUSTRIALS			369,645
INFORMATION TECHNOLOGY - 0.8%
Electronic Equipment & Components - 0.8%
Tyco Electronics Group SA:
5.95% 1/15/14	160,000		175,807
6% 10/1/12	173,000		185,153
			360,960
MATERIALS - 2.5%
Chemicals - 0.6%
Dow Chemical Co. 7.6% 5/15/14	237,000		275,219
Construction Materials - 0.2%
CRH America, Inc. 6% 9/30/16	82,000		88,355
Metals & Mining - 1.7%
Anglo American Capital PLC 9.375% 4/8/14 (b)	156,000		187,953
ArcelorMittal SA 5.5% 3/1/21	440,000		437,250
Vale Overseas Ltd. 6.25% 1/23/17	104,000		117,221
			742,424
TOTAL MATERIALS			1,105,998
TELECOMMUNICATION SERVICES - 3.7%
Diversified Telecommunication Services - 2.7%
AT&T, Inc. 6.3% 1/15/38	500,000		519,097
CenturyLink, Inc. 7.6% 9/15/39	118,000		124,555
Telecom Italia Capital SA:
4.95% 9/30/14	143,000		146,932
7.175% 6/18/19	94,000		101,772
Telefonica Emisiones SAU:
3.992% 2/16/16	200,000		200,791
5.134% 4/27/20	94,000		93,560
			1,186,707
Nonconvertible Bonds - continued
	Principal Amount		Value
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - 1.0%
America Movil SAB de CV 3.625% 3/30/15	$ 132,000		$ 135,738
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	223,000		239,876
5.875% 10/1/19	67,000		72,610
			448,224
TOTAL TELECOMMUNICATION SERVICES			1,634,931
UTILITIES - 9.0%
Electric Utilities - 7.0%
AmerenUE 6.4% 6/15/17	133,000		150,704
Cleveland Electric Illuminating Co. 5.65% 12/15/13	183,000		200,791
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (b)	140,000		144,859
EDP Finance BV 6% 2/2/18 (b)	106,000		104,128
FirstEnergy Corp. 7.375% 11/15/31	563,000		613,738
FirstEnergy Solutions Corp. 6.05% 8/15/21	38,000		39,742
Nevada Power Co.:
6.5% 8/1/18	70,000		80,554
6.65% 4/1/36	500,000		567,973
Progress Energy, Inc. 6% 12/1/39	500,000		524,604
Sierra Pacific Power Co. 5.45% 9/1/13	70,000		76,227
Tampa Electric Co. 6.55% 5/15/36	500,000		559,958
			3,063,278
Independent Power Producers & Energy Traders - 0.8%
Duke Capital LLC 5.668% 8/15/14	192,000		210,981
Exelon Generation Co. LLC 4% 10/1/20	157,000		146,091
			357,072
Multi-Utilities - 1.2%
Dominion Resources, Inc.:
6.3% 9/30/66 (d)	145,000		141,738
7.5% 6/30/66 (d)	145,000		150,800
NiSource Finance Corp.:
5.4% 7/15/14	60,000		65,228
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Multi-Utilities - continued
NiSource Finance Corp.: - continued
6.4% 3/15/18	$ 59,000		$ 66,239
Wisconsin Energy Corp. 6.25% 5/15/67 (d)	117,000		116,854
			540,859
TOTAL UTILITIES			3,961,209
TOTAL NONCONVERTIBLE BONDS (Cost $34,550,573)		35,134,449
U.S. Treasury Obligations - 6.5%
U.S. Treasury Bonds 3.875% 8/15/40	923,000		828,680
U.S. Treasury Notes:
2% 1/31/16	1,311,000		1,304,854
2.625% 8/15/20	50,000		46,984
2.625% 11/15/20	720,000		673,482
TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,818,734)		2,854,000
Municipal Securities - 4.4%
American Muni. Pwr.-Ohio, Inc. Rev. (Combined Hydroelectric Proj.)Series 2010 B, 8.084% 2/15/50	280,000		316,467
California Gen. Oblig.:
6.2% 3/1/19	188,000		198,848
7.55% 4/1/39	200,000		215,818
Illinois Gen. Oblig.:
4.511% 3/1/15 (c)	350,000		350,011
5.665% 3/1/18 (c)	25,000		25,054
5.877% 3/1/19 (c)	20,000		20,052
Los Angeles Dept. of Wtr. & Pwr. Rev. Series 2010 A, 6.603% 7/1/50	130,000		136,063
Muni. Elec. Auth. of Georgia (Plant Vogtle Units 3&4 Proj.)Series 2010 A, 6.655% 4/1/57	690,000		680,623
TOTAL MUNICIPAL SECURITIES (Cost $1,881,145)		1,942,936
Bank Notes - 1.0%
	Principal Amount		Value
Wachovia Bank NA 6% 11/15/17 (Cost $445,731)	$ 405,000		$ 453,839
Commercial Paper - 2.3%
Dow Chemical Co. 0.45% 3/7/11	500,000		499,914
Transocean, Inc. yankee 0.85% 3/9/11	500,000		499,913
TOTAL COMMERCIAL PAPER (Cost $999,850)		999,827

Preferred Securities - 0.3%
FINANCIALS - 0.3%
Diversified Financial Services - 0.3%
ING Groep NV 5.775% (d)	47,000		42,441
MUFG Capital Finance 1 Ltd. 6.346% (d)	102,000		105,041
TOTAL PREFERRED SECURITIES (Cost $145,119)		147,482
Cash Equivalents - 6.1%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $2,680,000)	$ 2,680,016		2,680,000
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $43,521,152)			44,212,533
NET OTHER ASSETS (LIABILITIES) - (0.4)%			(165,418)
NET ASSETS - 100%		$ 44,047,115

Legend

(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,812,672 or 10.9% of net assets.

(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value
$2,680,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 223,981
Bank of America NA	199,095
Barclays Capital, Inc.	110,871
Credit Agricole Securities (USA), Inc.	99,547
Deutsche Bank Securities, Inc.	114,226
Goldman, Sachs & Co.	24,887
HSBC Securities (USA), Inc.	298,642
ING Financial Markets LLC	184,163
J.P. Morgan Securities, Inc.	298,642
Merrill Lynch Government Securities, Inc.	89,593
Merrill Lynch, Pierce, Fenner & Smith, Inc.	137,442
Mizuho Securities USA, Inc.	547,510
RBC Capital Markets Corp.	24,885
Societe Generale, New York Branch	199,095
Wells Fargo Securities LLC	127,421
	$ 2,680,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Corporate Bond 1-10 Year Central Fund	$ 719,660

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the Fidelity Central Funds is as follows:

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Corporate Bond 1-10 Year Central Fund	$ 70,145,328	$ -	$ 70,246,461 *	$ -	0.0%
Total	$ 70,145,328	$ -	$ 70,246,461	$ -

* Includes the value of shares redeemed through in-kind transactions. See Note 5 of the Notes
to Financial Statements.

Other Information

All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America	84.5%
Cayman Islands	3.7%
United Kingdom	3.6%
Luxembourg	2.3%
Canada	2.0%
Others (Individually Less Than 1%)	3.9%
	100.0%

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $2,680,000) - See accompanying schedule: Unaffiliated issuers (cost $43,521,152)		$ 44,212,533
Cash		243
Receivable for fund shares sold		207,302
Interest receivable		610,331
Total assets		45,030,409
Liabilities
Payable for investments purchased Regular delivery	$ 497,818
Delayed delivery	395,000
Payable for fund shares redeemed	59,852
Distributions payable	13,156
Accrued management fee	12,905
Distribution and service plan fees payable	876
Other affiliated payables	3,687
Total liabilities		983,294
Net Assets		$ 44,047,115
Net Assets consist of:
Paid in capital		$ 40,829,376
Distributions in excess of net investment income		(26,843)
Accumulated undistributed net realized gain (loss) on investments		2,553,201
Net unrealized appreciation (depreciation) on investments		691,381
Net Assets		$ 44,047,115

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

	February 28, 2011 (Unaudited)
Calculation of Maximum Offering Price  Class A: Net Asset Value and redemption price per share ($2,051,893 ÷ 199,644 shares)		$ 10.28
Maximum offering price per share (100/96.00 of $10.28)		$ 10.71
Class T: Net Asset Value and redemption price per share ($459,829 ÷ 44,742 shares)		$ 10.28
Maximum offering price per share (100/96.00 of $10.28)		$ 10.71
Class C: Net Asset Value and offering price per share ($457,725 ÷ 44,539 shares)A		$ 10.28
Corporate Bond: Net Asset Value, offering price and redemption price per share ($40,718,007 ÷ 3,961,893 shares)		$ 10.28
Institutional Class: Net Asset Value, offering price and redemption price per share ($359,661 ÷ 34,996 shares)		$ 10.28

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 4,596
Interest		1,114,415
Income from Fidelity Central Funds		719,660
Total income		1,838,671
Expenses
Management fee	$ 141,172
Transfer agent fees	43,601
Distribution and service plan fees	5,897
Independent trustees' compensation	181
Total expenses before reductions	190,851
Expense reductions	(17)	190,834
Net investment income (loss)		1,647,837
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	1,059,081
Fidelity Central Funds	1,941,839
Total net realized gain (loss)		3,000,920
Change in net unrealized appreciation (depreciation) on investment securities		(3,554,135)
Net gain (loss)		(553,215)
Net increase (decrease) in net assets resulting from operations		$ 1,094,622

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended February 28, 2011 (Unaudited)	For the period May 4, 2010 (commencement of operations) to August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,647,837	$ 970,447
Net realized gain (loss)	3,000,920	352,390
Change in net unrealized appreciation (depreciation)	(3,554,135)	4,245,516
Net increase (decrease) in net assets resulting from operations	1,094,622	5,568,353
Distributions to shareholders from net investment income	(1,718,843)	(958,181)
Distributions to shareholders from net realized gain	(768,211)	-
Total distributions	(2,487,054)	(958,181)
Share transactions - net increase (decrease)	(85,622,307)	126,451,682
Total increase (decrease) in net assets	(87,014,739)	131,061,854
Net Assets
Beginning of period	131,061,854	-
End of period (including distributions in excess of net investment income of $26,843 and undistributed net investment income of $44,163, respectively)	$ 44,047,115	$ 131,061,854

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.196	.128
Net realized and unrealized gain (loss)	(.053)	.446
Total from investment operations	.143	.574
Distributions from net investment income	(.211)	(.124)
Distributions from net realized gain	(.102)	-
Total distributions	(.313)	(.124)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C, D	1.41%	5.78%
Ratios to Average Net Assets F, I
Expenses before reductions	.78% A	.74% A
Expenses net of fee waivers, if any	.78% A	.74% A
Expenses net of all reductions	.78% A	.74% A
Net investment income (loss)	3.83% A	3.91% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,052	$ 3,083
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.44	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.199	.131
Net realized and unrealized gain (loss)	(.046)	.436
Total from investment operations	.153	.567
Distributions from net investment income	(.211)	(.127)
Distributions from net realized gain	(.102)	-
Total distributions	(.313)	(.127)
Net asset value, end of period	$ 10.28	$ 10.44
Total Return B, C, D	1.50%	5.71%
Ratios to Average Net Assets F, I
Expenses before reductions	.75% A	.68% A
Expenses net of fee waivers, if any	.75% A	.68% A
Expenses net of all reductions	.75% A	.68% A
Net investment income (loss)	3.86% A	3.98% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 460	$ 1,026
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.44	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.156	.106
Net realized and unrealized gain (loss)	(.045)	.437
Total from investment operations	.111	.543
Distributions from net investment income	(.169)	(.103)
Distributions from net realized gain	(.102)	-
Total distributions	(.271)	(.103)
Net asset value, end of period	$ 10.28	$ 10.44
Total Return B, C, D	1.10%	5.46%
Ratios to Average Net Assets F, I
Expenses before reductions	1.56% A	1.45% A
Expenses net of fee waivers, if any	1.56% A	1.45% A
Expenses net of all reductions	1.56% A	1.45% A
Net investment income (loss)	3.04% A	3.20% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 458	$ 668
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Corporate Bond

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) D	.214	.137
Net realized and unrealized gain (loss)	(.055)	.447
Total from investment operations	.159	.584
Distributions from net investment income	(.227)	(.134)
Distributions from net realized gain	(.102)	-
Total distributions	(.329)	(.134)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C	1.57%	5.88%
Ratios to Average Net Assets E, H
Expenses before reductions	.46% A	.44% A
Expenses net of fee waivers, if any	.46% A	.44% A
Expenses net of all reductions	.46% A	.44% A
Net investment income (loss)	4.14% A	4.21% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 40,718	$ 124,879
Portfolio turnover rate F	136% A, J	67% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount not annualized.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) D	.215	.140
Net realized and unrealized gain (loss)	(.055)	.445
Total from investment operations	.160	.585
Distributions from net investment income	(.228)	(.135)
Distributions from net realized gain	(.102)	-
Total distributions	(.330)	(.135)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C	1.58%	5.89%
Ratios to Average Net Assets E, H
Expenses before reductions	.43% A	.42% A
Expenses net of fee waivers, if any	.43% A	.42% A
Expenses net of all reductions	.43% A	.42% A
Net investment income (loss)	4.18% A	4.23% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 360	$ 1,406
Portfolio turnover rate F	136% A, J	67% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount not annualized.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

1. Organization.

Fidelity Corporate Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Corporate Bond, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Semiannual Report

2. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, bank notes, municipal securities, preferred securities, U.S. government and government agency obligations and commercial paper, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to market discount, partnerships (including allocations from Fidelity Central Funds) and losses deferred due to wash sales.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 2,064,521
Gross unrealized depreciation	(184,059)
Net unrealized appreciation (depreciation) on securities and other investments	$ 1,880,462
Tax cost	$ 42,332,071

3. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Semiannual Report

3. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

4. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, U.S. government securities and in-kind transactions, aggregated $16,375,674 and $90,115,756, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .35% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and certain exceptions such as transfer agent, distribution and service plan fees and interest expense.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$ 2,584	$ 133
Class T	-%	.25%	846	15
Class C	.75%	.25%	2,467	1,220
			$ 5,897	$ 1,368

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 1,968
Class C*	30
	$ 1,998

* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, with the exception of Corporate Bond. FIIOC receives only an asset-based fee for Corporate Bond. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Semiannual Report

5. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, transfer agent fees for each class were as follows:

	Amount	% of Average Net Assets*
Class A	$ 1,747	.17
Class T	465	.14
Class C	461	.19
Corporate Bond	40,555	.11
Institutional Class	373	.07
	$ 43,601

* Annualized

Exchange In-Kind. During the period, the Fund redeemed in-kind 290,603 shares of Fidelity Corporate Bond 1-10 Year Central Fund ("1-10 Year"), a Fidelity Central Fund in which the Fund invested, valued at $31,509,495, in exchange for cash and securities, including accrued interest. Realized gain (loss) of $858,197 on the Fund's redemption of 1-10 Year shares is included in the accompanying Statement of Operations as "Realized gain (loss) on Fidelity Central Funds." Because 1-10 Year was a partnership for federal income tax purposes, the redemption generally was tax free to the Fund.

6. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's management fee by $17.

7. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net investment income
Class A	$ 40,912	$ 34,654
Class T	13,300	15,067
Class C	7,832	8,948
Corporate Bond	1,634,704	879,782
Institutional Class	22,095	19,730
Total	$ 1,718,843	$ 958,181

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. Distributions to Shareholders - continued

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net realized gain
Class A	$ 19,036	$ -
Class T	5,392	-
Class C	5,080	-
Corporate Bond	730,206	-
Institutional Class	8,497	-
Total	$ 768,211	$ -

^A For the period May 4, 2010 (commencement of operations) to August 31, 2010.

8. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010 A	Six months ended February 28, 2011	Year ended August 31, 2010 A
Class A
Shares sold	159,434	419,766	$ 1,637,755	$ 4,210,047
Reinvestment of distributions	3,487	917	35,767	9,298
Shares redeemed	(258,399)	(125,561)	(2,692,249)	(1,260,334)
Net increase (decrease)	(95,478)	295,122	$ (1,018,727)	$ 2,959,011
Class T
Shares sold	33,303	225,745	$ 343,796	$ 2,263,959
Reinvestment of distributions	1,659	1,303	17,207	13,242
Shares redeemed	(88,425)	(128,843)	(911,096)	(1,293,969)
Net increase (decrease)	(53,463)	98,205	$ (550,093)	$ 983,232
Class C
Shares sold	48,335	163,695	$ 497,438	$ 1,646,522
Reinvestment of distributions	1,079	753	11,133	7,616
Shares redeemed	(68,866)	(100,457)	(714,310)	(1,007,582)
Net increase (decrease)	(19,452)	63,991	$ (205,739)	$ 646,556
Corporate Bond
Shares sold	3,850,924	13,027,028	$ 39,715,360	$ 131,371,513
Reinvestment of distributions	208,800	77,870	2,160,978	800,920
Shares redeemed	(12,053,637)	(1,149,092)	(124,713,732)	(11,644,820)
Net increase (decrease)	(7,993,913)	11,955,806	$ (82,837,394)	$ 120,527,613
Institutional Class
Shares sold	32,230	260,141	$ 332,576	$ 2,605,174
Reinvestment of distributions	2,448	1,566	25,325	15,969
Shares redeemed	(134,263)	(127,126)	(1,368,255)	(1,285,873)
Net increase (decrease)	(99,585)	134,581	$ (1,010,354)	$ 1,335,270

^A For the period May 4, 2010 (commencement of operations) to August 31, 2010.

Semiannual Report

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Semiannual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.

By Phone

Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

(phone_graphic)

Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555

Press

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)

Fidelity's Web Site
www.fidelity.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

To Visit Fidelity

For directions and hours, 
please call 1-800-544-9797.

Arizona

7001 West Ray Road
Chandler, AZ

15445 N. Scottsdale Road
Scottsdale, AZ

17550 North 75th Avenue
Glendale, AZ

5330 E. Broadway Blvd
Tucson, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

601 Larkspur Landing Circle
Larkspur, CA

2000 Avenue of the Stars
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

123 South Lake Avenue
Pasadena, CA

16656 Bernardo Ctr. Drive
Rancho Bernardo, CA

1220 Roseville Parkway
Roseville, CA

1740 Arden Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

11943 El Camino Real
San Diego, CA

8 Montgomery Street
San Francisco, CA

3793 State Street
Santa Barbara, CA

1200 Wilshire Boulevard
Santa Monica, CA

398 West El Camino Real
Sunnyvale, CA

111 South Westlake Blvd
Thousand Oaks, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6326 Canoga Avenue
Woodland Hills, CA

2211 Michelson Drive
Irvine, CA

Colorado

281 East Flatiron Circle
Broomfield, CO

1625 Broadway
Denver, CO

9185 Westview Road
Lone Tree, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

1261 Post Road
Fairfield, CT

Delaware

400 Delaware Avenue
Wilmington, DE

Florida

175 East Altamonte Drive
Altamonte Springs, FL

1400 Glades Road
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

4671 Town Center Parkway
Jacksonville, FL

8880 Tamiami Trail, North
Naples, FL

230 Royal Palm Way
Palm Beach, FL

3501 PGA Boulevard
Palm Beach Gardens, FL

3550 Tamiami Trail, South
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

2465 State Road 7
Wellington, FL

Georgia

3242 Peachtree Road
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

401 North Michigan Avenue
Chicago, IL

One Skokie Valley Road
Highland Park, IL

1415 West 22nd Street
Oak Brook, IL

15105 S LaGrange Road
Orland Park, IL

1572 East Golf Road
Schaumburg, IL

1823 Freedom Drive
Naperville, IL

Indiana

8480 Keystone Crossing
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD

610 York Road
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

238 Main Street
Cambridge, MA

200 Endicott Street
Danvers, MA

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Semiannual Report

405 Cochituate Road
Framingham, MA

551 Boston Turnpike
Shrewsbury, MA

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI

280 N. Old Woodward Ave.
Birmingham, MI

30200 Northwestern Hwy.
Farmington Hills, MI

43420 Grand River Avenue
Novi, MI

3480 28th Street
Grand Rapids, MI

2425 S. Linden Road STE E
Flint, MI

Minnesota

7740 France Avenue South
Edina, MN

8342 3rd Street North
Oakdale, MN

Missouri

1524 South Lindbergh Blvd.
St. Louis, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

501 Route 73 South
Marlton, NJ

150 Essex Street
Millburn, NJ

35 Morris Street
Morristown, NJ

396 Route 17, North
Paramus, NJ

3518 Route 1 North
Princeton, NJ

530 Broad Street
Shrewsbury, NJ

New Mexico

2261 Q Street NE
Albuquerque, NM

New York

1130 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

980 Madison Avenue
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

200 Fifth Avenue
New York, NY

733 Third Avenue
New York, NY

2070 Broadway
New York, NY

1075 Northern Blvd.
Roslyn, NY

799 Central Park Avenue
Scarsdale, NY

3349 Monroe Avenue
Rochester, NY

North Carolina

4611 Sharon Road
Charlotte, NC

7011 Fayetteville Road
Durham, NC

Ohio

3805 Edwards Road
Cincinnati, OH

1324 Polaris Parkway
Columbus, OH

1800 Crocker Road
Westlake, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

7493 SW Bridgeport Road
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

10 Memorial Boulevard
Providence, RI

Tennessee

3018 Peoples Street
Johnson City, TN

7628 West Farmington Blvd.
Germantown, TN

2035 Mallory Lane
Franklin, TN

Texas

10000 Research Boulevard
Austin, TX

4001 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

6560 Fannin Street
Houston, TX

1701 Lake Robbins Drive
The Woodlands, TX

6500 N. MacArthur Blvd.
Irving, TX

6005 West Park Boulevard
Plano, TX

1576 East Southlake Blvd.
Southlake, TX

15600 Southwest Freeway
Sugar Land, TX

139 N. Loop 1604 East
San Antonio, TX

Utah

279 West South Temple
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

11957 Democracy Drive
Reston, VA

Washington

10500 NE 8th Street
Bellevue, WA

1518 6th Avenue
Seattle, WA

304 Strander Blvd
Tukwila, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

16020 West Bluemound Road
Brookfield, WI

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments
Money Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

State Street Bank and Trust Company

Quincy, MA

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555

Automated line for quickest service

CBD-USAN-0411
1.907006.100

(Fidelity Investment logo)(registered trademark)

Fidelity Advisor®
Corporate Bond
Fund - Class A, Class T and Class C

Semiannual Report

February 28, 2011

Class A, Class T and
Class C are classes of
Fidelity® Corporate Bond Fund

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, indirectly bears its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, indirectly bears its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Class A	.78%
Actual		$ 1,000.00	$ 1,014.10	$ 3.90
HypotheticalA		$ 1,000.00	$ 1,020.93	$ 3.91
Class T	.75%
Actual		$ 1,000.00	$ 1,015.00	$ 3.75
HypotheticalA		$ 1,000.00	$ 1,021.08	$ 3.76
Class C	1.56%
Actual		$ 1,000.00	$ 1,011.00	$ 7.78
HypotheticalA		$ 1,000.00	$ 1,017.06	$ 7.80
Corporate Bond	.46%
Actual		$ 1,000.00	$ 1,015.70	$ 2.30
HypotheticalA		$ 1,000.00	$ 1,022.51	$ 2.31
Institutional Class	.43%
Actual		$ 1,000.00	$ 1,015.80	$ 2.15
HypotheticalA		$ 1,000.00	$ 1,022.66	$ 2.16

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invested are not included in the Fund's annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

The information in the following tables as of August 31, 2010 is based on the combined investments of the Fund and its pro-rata share of its investments in each Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations 6.5%		U.S. Government and U.S. Government Agency Obligations 13.0%
	AAA 0.0%		AAA 0.1%
	AA 9.4%		AA 7.1%
	A 19.8%		A 25.5%
	BBB 45.3%		BBB 49.8%
	BB and Below 10.0%		BB and Below 5.4%
	Not Rated 1.0%		Not Rated 0.0%
	Short-Term Investments and Net Other Assets 8.0%		Short-Term Investments and Net Other Assets † (0.9)%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	10.6	10.8

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	6.3	6.3

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011 *		As of August 31, 2010 **
	Corporate Bonds 79.8%		Corporate Bonds 86.0%
	U.S. Government and U.S. Government Agency Obligations 6.5%		U.S. Government and U.S. Government Agency Obligations 13.0%
	Municipal Bonds 4.4%		Municipal Bonds 1.5%
	Other Investments 1.3%		Other Investments 0.4%
	Short-Term Investments and Net Other Assets 8.0%		Short-Term Investments and Net Other Assets † (0.9)%

* Foreign investments	15.5%	** Foreign investments	13.7%
* Futures and Swaps	0.0%	** Futures and Swaps	0.8%

^† Short-Term Investments and Net Other Assets are not included in the pie chart.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 79.8%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 5.7%
Household Durables - 1.6%
Fortune Brands, Inc.:
5.375% 1/15/16	$ 239,000		$ 251,447
6.375% 6/15/14	182,000		199,788
Whirlpool Corp.:
6.125% 6/15/11	152,000		154,266
6.5% 6/15/16	85,000		94,753
			700,254
Media - 3.8%
Comcast Corp. 6.4% 3/1/40	250,000		260,106
Discovery Communications LLC 6.35% 6/1/40	221,000		232,523
NBC Universal, Inc.:
3.65% 4/30/15 (b)	129,000		131,845
6.4% 4/30/40 (b)	390,000		407,454
News America, Inc. 6.9% 8/15/39	300,000		335,727
Time Warner, Inc. 6.2% 3/15/40	300,000		305,656
			1,673,311
Specialty Retail - 0.3%
Staples, Inc. 7.375% 10/1/12	100,000		108,729
TOTAL CONSUMER DISCRETIONARY			2,482,294
CONSUMER STAPLES - 2.5%
Beverages - 0.8%
Anheuser-Busch InBev Worldwide, Inc. 5.375% 11/15/14 (b)	218,000		240,879
FBG Finance Ltd. 5.125% 6/15/15 (b)	131,000		139,216
			380,095
Food Products - 0.8%
Kraft Foods, Inc.:
5.625% 11/1/11	21,000		21,666
6.5% 8/11/17	274,000		314,755
			336,421
Tobacco - 0.9%
Altria Group, Inc. 9.7% 11/10/18	182,000		239,598
Reynolds American, Inc. 6.75% 6/15/17	131,000		147,476
			387,074
TOTAL CONSUMER STAPLES			1,103,590
Nonconvertible Bonds - continued
	Principal Amount		Value
ENERGY - 12.7%
Energy Equipment & Services - 3.4%
DCP Midstream LLC 5.35% 3/15/20 (b)	$ 116,000		$ 120,217
El Paso Pipeline Partners Operating Co. LLC 6.5% 4/1/20	658,000		725,850
Noble Holding International Ltd. 3.05% 3/1/16	450,000		447,256
Weatherford International Ltd.:
4.95% 10/15/13	78,000		82,902
5.15% 3/15/13	102,000		107,760
			1,483,985
Oil, Gas & Consumable Fuels - 9.3%
Anadarko Petroleum Corp.:
5.95% 9/15/16	393,000		431,077
6.375% 9/15/17	71,000		79,136
BW Group Ltd. 6.625% 6/28/17 (b)	132,000		133,290
Duke Energy Field Services 5.375% 10/15/15 (b)	54,000		57,963
El Paso Natural Gas Co. 5.95% 4/15/17	492,000		536,112
EnCana Holdings Finance Corp. 5.8% 5/1/14	129,000		143,420
Gulf South Pipeline Co. LP 5.75% 8/15/12 (b)	172,000		181,453
Marathon Petroleum Corp. 6.5% 3/1/41 (b)	220,000		222,880
Midcontinent Express Pipeline LLC 5.45% 9/15/14 (b)	480,000		522,180
Nexen, Inc.:
5.05% 11/20/13	184,000		196,228
5.2% 3/10/15	41,000		43,587
6.2% 7/30/19	324,000		346,552
6.4% 5/15/37	158,000		151,208
NGPL PipeCo LLC 6.514% 12/15/12 (b)	159,000		171,395
Petrobras International Finance Co. Ltd.:
3.875% 1/27/16	39,000		39,384
5.75% 1/20/20	427,000		443,076
Petroleos Mexicanos 6% 3/5/20	116,000		121,510
Plains All American Pipeline LP/PAA Finance Corp. 5% 2/1/21	14,000		14,031
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 3/15/14 (b)	93,100		100,781
Rockies Express Pipeline LLC 6.25% 7/15/13 (b)	121,000		130,035
Spectra Energy Capital, LLC 5.65% 3/1/20	56,000		59,275
			4,124,573
TOTAL ENERGY			5,608,558
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - 41.7%
Capital Markets - 6.0%
Goldman Sachs Group, Inc.:
5.95% 1/18/18	$ 178,000		$ 193,242
6.15% 4/1/18	204,000		223,478
Janus Capital Group, Inc. 6.125% 9/15/11 (a)	107,000		108,789
Lazard Group LLC:
6.85% 6/15/17	171,000		182,144
7.125% 5/15/15	61,000		67,129
Merrill Lynch & Co., Inc. 7.75% 5/14/38	450,000		509,815
Morgan Stanley:
4% 7/24/15	447,000		457,844
5.5% 7/24/20	225,000		227,185
5.625% 9/23/19	219,000		224,817
6% 4/28/15	255,000		279,281
6.625% 4/1/18	153,000		169,124
			2,642,848
Commercial Banks - 13.2%
Comerica, Inc. 4.8% 5/1/15	107,000		112,867
Credit Suisse New York Branch 6% 2/15/18	122,000		130,268
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (b)(d)	139,000		136,394
Discover Bank 7% 4/15/20	350,000		385,993
Export-Import Bank of Korea 5.5% 10/17/12	101,000		106,632
Fifth Third Bancorp 8.25% 3/1/38	1,273,000		1,534,248
Fifth Third Capital Trust IV 6.5% 4/15/67 (d)	36,000		35,100
HSBC Holdings PLC 6.5% 9/15/37	100,000		103,673
JPMorgan Chase Bank 6% 10/1/17	1,424,000		1,569,461
Marshall & Ilsley Bank 5% 1/17/17	93,000		96,931
Regions Bank 7.5% 5/15/18	670,000		710,200
Regions Financial Corp. 0.4728% 6/26/12 (d)	61,000		58,068
Silicon Valley Bank 5.7% 6/1/12	406,000		417,687
UniCredit Luxembourg Finance SA 5.584% 1/13/17 (b)(d)	131,000		125,474
Union Planters Corp. 7.75% 3/1/11	87,000		87,000
UnionBanCal Corp. 5.25% 12/16/13	30,000		32,288
Wachovia Corp. 5.625% 10/15/16	152,000		165,614
			5,807,898
Consumer Finance - 3.4%
Discover Financial Services:
6.45% 6/12/17	107,000		116,010
10.25% 7/15/19	105,000		135,949
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Consumer Finance - continued
General Electric Capital Corp.:
4.625% 1/7/21	$ 1,000,000		$ 993,746
5.875% 1/14/38	150,000		150,492
HSBC Finance Corp. 5.9% 6/19/12	104,000		109,829
			1,506,026
Diversified Financial Services - 9.2%
BP Capital Markets PLC:
3.125% 10/1/15	608,000		616,916
3.625% 5/8/14	388,000		405,444
4.5% 10/1/20	300,000		301,298
Capital One Capital V 10.25% 8/15/39	441,000		479,036
Capital One Capital VI 8.875% 5/15/40	100,000		106,125
Citigroup, Inc.:
6.125% 5/15/18	75,000		82,232
6.5% 8/19/13	433,000		477,222
6.875% 3/5/38	175,000		192,845
8.5% 5/22/19	100,000		124,004
General Electric Capital Corp. 5.3% 2/11/21	460,000		472,206
Prime Property Funding II 5.6% 6/15/11 (b)	364,000		366,774
Prime Property Funding, Inc. 5.7% 4/15/17 (b)	76,000		78,032
TECO Finance, Inc. 5.15% 3/15/20	114,000		118,010
TransCapitalInvest Ltd. 5.67% 3/5/14 (b)	195,000		206,435
			4,026,579
Insurance - 3.2%
Aon Corp. 6.25% 9/30/40	253,000		261,983
Assurant, Inc. 5.625% 2/15/14	85,000		90,110
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (b)(d)	66,000		67,650
Monumental Global Funding II 5.65% 7/14/11 (b)	74,000		74,948
Monumental Global Funding III 5.5% 4/22/13 (b)	98,000		104,311
Pacific Life Global Funding 5.15% 4/15/13 (b)	152,000		161,696
Pacific LifeCorp 6% 2/10/20 (b)	100,000		105,565
Prudential Financial, Inc. 5.15% 1/15/13	144,000		152,907
QBE Insurance Group Ltd. 5.647% 7/1/23 (b)(d)	58,000		54,271
Symetra Financial Corp. 6.125% 4/1/16 (b)	215,000		224,752
Unum Group 7.125% 9/30/16	106,000		120,122
			1,418,315
Real Estate Investment Trusts - 2.6%
CommonWealth REIT 5.875% 9/15/20	260,000		264,835
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Real Estate Investment Trusts - continued
Developers Diversified Realty Corp.:
5.25% 4/15/11	$ 109,000		$ 109,431
5.375% 10/15/12	57,000		59,029
Equity One, Inc. 6.25% 12/15/14	223,000		239,231
Federal Realty Investment Trust:
5.95% 8/15/14	100,000		110,683
6% 7/15/12	131,000		138,722
Washington (REIT):
5.25% 1/15/14	58,000		61,159
5.95% 6/15/11	162,000		163,898
			1,146,988
Real Estate Management & Development - 3.3%
Brandywine Operating Partnership LP 5.75% 4/1/12	183,000		188,524
Duke Realty LP:
5.4% 8/15/14	126,000		134,502
5.625% 8/15/11	134,000		136,144
Liberty Property LP:
5.125% 3/2/15	141,000		149,153
5.5% 12/15/16	66,000		71,502
Mack-Cali Realty LP 7.75% 8/15/19	126,000		151,372
Tanger Properties LP 6.125% 6/1/20	586,000		633,821
			1,465,018
Thrifts & Mortgage Finance - 0.8%
First Niagara Financial Group, Inc. 6.75% 3/19/20	325,000		353,199
TOTAL FINANCIALS			18,366,871
HEALTH CARE - 0.3%
Pharmaceuticals - 0.3%
Watson Pharmaceuticals, Inc. 5% 8/15/14	130,000		140,393
INDUSTRIALS - 0.9%
Aerospace & Defense - 0.3%
BAE Systems Holdings, Inc. 4.95% 6/1/14 (b)	103,000		109,842
Airlines - 0.6%
Continental Airlines, Inc. 6.648% 3/15/19	125,776		131,184
Nonconvertible Bonds - continued
	Principal Amount		Value
INDUSTRIALS - continued
Airlines - continued
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	$ 73,882		$ 72,330
8.36% 7/20/20	55,376		56,289
			259,803
TOTAL INDUSTRIALS			369,645
INFORMATION TECHNOLOGY - 0.8%
Electronic Equipment & Components - 0.8%
Tyco Electronics Group SA:
5.95% 1/15/14	160,000		175,807
6% 10/1/12	173,000		185,153
			360,960
MATERIALS - 2.5%
Chemicals - 0.6%
Dow Chemical Co. 7.6% 5/15/14	237,000		275,219
Construction Materials - 0.2%
CRH America, Inc. 6% 9/30/16	82,000		88,355
Metals & Mining - 1.7%
Anglo American Capital PLC 9.375% 4/8/14 (b)	156,000		187,953
ArcelorMittal SA 5.5% 3/1/21	440,000		437,250
Vale Overseas Ltd. 6.25% 1/23/17	104,000		117,221
			742,424
TOTAL MATERIALS			1,105,998
TELECOMMUNICATION SERVICES - 3.7%
Diversified Telecommunication Services - 2.7%
AT&T, Inc. 6.3% 1/15/38	500,000		519,097
CenturyLink, Inc. 7.6% 9/15/39	118,000		124,555
Telecom Italia Capital SA:
4.95% 9/30/14	143,000		146,932
7.175% 6/18/19	94,000		101,772
Telefonica Emisiones SAU:
3.992% 2/16/16	200,000		200,791
5.134% 4/27/20	94,000		93,560
			1,186,707
Nonconvertible Bonds - continued
	Principal Amount		Value
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - 1.0%
America Movil SAB de CV 3.625% 3/30/15	$ 132,000		$ 135,738
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	223,000		239,876
5.875% 10/1/19	67,000		72,610
			448,224
TOTAL TELECOMMUNICATION SERVICES			1,634,931
UTILITIES - 9.0%
Electric Utilities - 7.0%
AmerenUE 6.4% 6/15/17	133,000		150,704
Cleveland Electric Illuminating Co. 5.65% 12/15/13	183,000		200,791
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (b)	140,000		144,859
EDP Finance BV 6% 2/2/18 (b)	106,000		104,128
FirstEnergy Corp. 7.375% 11/15/31	563,000		613,738
FirstEnergy Solutions Corp. 6.05% 8/15/21	38,000		39,742
Nevada Power Co.:
6.5% 8/1/18	70,000		80,554
6.65% 4/1/36	500,000		567,973
Progress Energy, Inc. 6% 12/1/39	500,000		524,604
Sierra Pacific Power Co. 5.45% 9/1/13	70,000		76,227
Tampa Electric Co. 6.55% 5/15/36	500,000		559,958
			3,063,278
Independent Power Producers & Energy Traders - 0.8%
Duke Capital LLC 5.668% 8/15/14	192,000		210,981
Exelon Generation Co. LLC 4% 10/1/20	157,000		146,091
			357,072
Multi-Utilities - 1.2%
Dominion Resources, Inc.:
6.3% 9/30/66 (d)	145,000		141,738
7.5% 6/30/66 (d)	145,000		150,800
NiSource Finance Corp.:
5.4% 7/15/14	60,000		65,228
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Multi-Utilities - continued
NiSource Finance Corp.: - continued
6.4% 3/15/18	$ 59,000		$ 66,239
Wisconsin Energy Corp. 6.25% 5/15/67 (d)	117,000		116,854
			540,859
TOTAL UTILITIES			3,961,209
TOTAL NONCONVERTIBLE BONDS (Cost $34,550,573)		35,134,449
U.S. Treasury Obligations - 6.5%
U.S. Treasury Bonds 3.875% 8/15/40	923,000		828,680
U.S. Treasury Notes:
2% 1/31/16	1,311,000		1,304,854
2.625% 8/15/20	50,000		46,984
2.625% 11/15/20	720,000		673,482
TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,818,734)		2,854,000
Municipal Securities - 4.4%
American Muni. Pwr.-Ohio, Inc. Rev. (Combined Hydroelectric Proj.)Series 2010 B, 8.084% 2/15/50	280,000		316,467
California Gen. Oblig.:
6.2% 3/1/19	188,000		198,848
7.55% 4/1/39	200,000		215,818
Illinois Gen. Oblig.:
4.511% 3/1/15 (c)	350,000		350,011
5.665% 3/1/18 (c)	25,000		25,054
5.877% 3/1/19 (c)	20,000		20,052
Los Angeles Dept. of Wtr. & Pwr. Rev. Series 2010 A, 6.603% 7/1/50	130,000		136,063
Muni. Elec. Auth. of Georgia (Plant Vogtle Units 3&4 Proj.)Series 2010 A, 6.655% 4/1/57	690,000		680,623
TOTAL MUNICIPAL SECURITIES (Cost $1,881,145)		1,942,936
Bank Notes - 1.0%
	Principal Amount		Value
Wachovia Bank NA 6% 11/15/17 (Cost $445,731)	$ 405,000		$ 453,839
Commercial Paper - 2.3%
Dow Chemical Co. 0.45% 3/7/11	500,000		499,914
Transocean, Inc. yankee 0.85% 3/9/11	500,000		499,913
TOTAL COMMERCIAL PAPER (Cost $999,850)		999,827

Preferred Securities - 0.3%
FINANCIALS - 0.3%
Diversified Financial Services - 0.3%
ING Groep NV 5.775% (d)	47,000		42,441
MUFG Capital Finance 1 Ltd. 6.346% (d)	102,000		105,041
TOTAL PREFERRED SECURITIES (Cost $145,119)		147,482
Cash Equivalents - 6.1%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $2,680,000)	$ 2,680,016		2,680,000
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $43,521,152)			44,212,533
NET OTHER ASSETS (LIABILITIES) - (0.4)%			(165,418)
NET ASSETS - 100%		$ 44,047,115

Legend

(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,812,672 or 10.9% of net assets.

(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value
$2,680,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 223,981
Bank of America NA	199,095
Barclays Capital, Inc.	110,871
Credit Agricole Securities (USA), Inc.	99,547
Deutsche Bank Securities, Inc.	114,226
Goldman, Sachs & Co.	24,887
HSBC Securities (USA), Inc.	298,642
ING Financial Markets LLC	184,163
J.P. Morgan Securities, Inc.	298,642
Merrill Lynch Government Securities, Inc.	89,593
Merrill Lynch, Pierce, Fenner & Smith, Inc.	137,442
Mizuho Securities USA, Inc.	547,510
RBC Capital Markets Corp.	24,885
Societe Generale, New York Branch	199,095
Wells Fargo Securities LLC	127,421
	$ 2,680,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Corporate Bond 1-10 Year Central Fund	$ 719,660

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the Fidelity Central Funds is as follows:

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Corporate Bond 1-10 Year Central Fund	$ 70,145,328	$ -	$ 70,246,461 *	$ -	0.0%
Total	$ 70,145,328	$ -	$ 70,246,461	$ -

* Includes the value of shares redeemed through in-kind transactions. See Note 5 of the Notes
to Financial Statements.

Other Information

All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America	84.5%
Cayman Islands	3.7%
United Kingdom	3.6%
Luxembourg	2.3%
Canada	2.0%
Others (Individually Less Than 1%)	3.9%
	100.0%

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $2,680,000) - See accompanying schedule: Unaffiliated issuers (cost $43,521,152)		$ 44,212,533
Cash		243
Receivable for fund shares sold		207,302
Interest receivable		610,331
Total assets		45,030,409
Liabilities
Payable for investments purchased Regular delivery	$ 497,818
Delayed delivery	395,000
Payable for fund shares redeemed	59,852
Distributions payable	13,156
Accrued management fee	12,905
Distribution and service plan fees payable	876
Other affiliated payables	3,687
Total liabilities		983,294
Net Assets		$ 44,047,115
Net Assets consist of:
Paid in capital		$ 40,829,376
Distributions in excess of net investment income		(26,843)
Accumulated undistributed net realized gain (loss) on investments		2,553,201
Net unrealized appreciation (depreciation) on investments		691,381
Net Assets		$ 44,047,115

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

	February 28, 2011 (Unaudited)
Calculation of Maximum Offering Price  Class A: Net Asset Value and redemption price per share ($2,051,893 ÷ 199,644 shares)		$ 10.28
Maximum offering price per share (100/96.00 of $10.28)		$ 10.71
Class T: Net Asset Value and redemption price per share ($459,829 ÷ 44,742 shares)		$ 10.28
Maximum offering price per share (100/96.00 of $10.28)		$ 10.71
Class C: Net Asset Value and offering price per share ($457,725 ÷ 44,539 shares)A		$ 10.28
Corporate Bond: Net Asset Value, offering price and redemption price per share ($40,718,007 ÷ 3,961,893 shares)		$ 10.28
Institutional Class: Net Asset Value, offering price and redemption price per share ($359,661 ÷ 34,996 shares)		$ 10.28

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 4,596
Interest		1,114,415
Income from Fidelity Central Funds		719,660
Total income		1,838,671
Expenses
Management fee	$ 141,172
Transfer agent fees	43,601
Distribution and service plan fees	5,897
Independent trustees' compensation	181
Total expenses before reductions	190,851
Expense reductions	(17)	190,834
Net investment income (loss)		1,647,837
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	1,059,081
Fidelity Central Funds	1,941,839
Total net realized gain (loss)		3,000,920
Change in net unrealized appreciation (depreciation) on investment securities		(3,554,135)
Net gain (loss)		(553,215)
Net increase (decrease) in net assets resulting from operations		$ 1,094,622

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended February 28, 2011 (Unaudited)	For the period May 4, 2010 (commencement of operations) to August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,647,837	$ 970,447
Net realized gain (loss)	3,000,920	352,390
Change in net unrealized appreciation (depreciation)	(3,554,135)	4,245,516
Net increase (decrease) in net assets resulting from operations	1,094,622	5,568,353
Distributions to shareholders from net investment income	(1,718,843)	(958,181)
Distributions to shareholders from net realized gain	(768,211)	-
Total distributions	(2,487,054)	(958,181)
Share transactions - net increase (decrease)	(85,622,307)	126,451,682
Total increase (decrease) in net assets	(87,014,739)	131,061,854
Net Assets
Beginning of period	131,061,854	-
End of period (including distributions in excess of net investment income of $26,843 and undistributed net investment income of $44,163, respectively)	$ 44,047,115	$ 131,061,854

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.196	.128
Net realized and unrealized gain (loss)	(.053)	.446
Total from investment operations	.143	.574
Distributions from net investment income	(.211)	(.124)
Distributions from net realized gain	(.102)	-
Total distributions	(.313)	(.124)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C, D	1.41%	5.78%
Ratios to Average Net Assets F, I
Expenses before reductions	.78% A	.74% A
Expenses net of fee waivers, if any	.78% A	.74% A
Expenses net of all reductions	.78% A	.74% A
Net investment income (loss)	3.83% A	3.91% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,052	$ 3,083
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.44	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.199	.131
Net realized and unrealized gain (loss)	(.046)	.436
Total from investment operations	.153	.567
Distributions from net investment income	(.211)	(.127)
Distributions from net realized gain	(.102)	-
Total distributions	(.313)	(.127)
Net asset value, end of period	$ 10.28	$ 10.44
Total Return B, C, D	1.50%	5.71%
Ratios to Average Net Assets F, I
Expenses before reductions	.75% A	.68% A
Expenses net of fee waivers, if any	.75% A	.68% A
Expenses net of all reductions	.75% A	.68% A
Net investment income (loss)	3.86% A	3.98% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 460	$ 1,026
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.44	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.156	.106
Net realized and unrealized gain (loss)	(.045)	.437
Total from investment operations	.111	.543
Distributions from net investment income	(.169)	(.103)
Distributions from net realized gain	(.102)	-
Total distributions	(.271)	(.103)
Net asset value, end of period	$ 10.28	$ 10.44
Total Return B, C, D	1.10%	5.46%
Ratios to Average Net Assets F, I
Expenses before reductions	1.56% A	1.45% A
Expenses net of fee waivers, if any	1.56% A	1.45% A
Expenses net of all reductions	1.56% A	1.45% A
Net investment income (loss)	3.04% A	3.20% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 458	$ 668
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Corporate Bond

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) D	.214	.137
Net realized and unrealized gain (loss)	(.055)	.447
Total from investment operations	.159	.584
Distributions from net investment income	(.227)	(.134)
Distributions from net realized gain	(.102)	-
Total distributions	(.329)	(.134)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C	1.57%	5.88%
Ratios to Average Net Assets E, H
Expenses before reductions	.46% A	.44% A
Expenses net of fee waivers, if any	.46% A	.44% A
Expenses net of all reductions	.46% A	.44% A
Net investment income (loss)	4.14% A	4.21% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 40,718	$ 124,879
Portfolio turnover rate F	136% A, J	67% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount not annualized.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) D	.215	.140
Net realized and unrealized gain (loss)	(.055)	.445
Total from investment operations	.160	.585
Distributions from net investment income	(.228)	(.135)
Distributions from net realized gain	(.102)	-
Total distributions	(.330)	(.135)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C	1.58%	5.89%
Ratios to Average Net Assets E, H
Expenses before reductions	.43% A	.42% A
Expenses net of fee waivers, if any	.43% A	.42% A
Expenses net of all reductions	.43% A	.42% A
Net investment income (loss)	4.18% A	4.23% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 360	$ 1,406
Portfolio turnover rate F	136% A, J	67% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount not annualized.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

1. Organization.

Fidelity Corporate Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Corporate Bond, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Semiannual Report

2. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, bank notes, municipal securities, preferred securities, U.S. government and government agency obligations and commercial paper, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to market discount, partnerships (including allocations from Fidelity Central Funds) and losses deferred due to wash sales.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 2,064,521
Gross unrealized depreciation	(184,059)
Net unrealized appreciation (depreciation) on securities and other investments	$ 1,880,462
Tax cost	$ 42,332,071

3. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Semiannual Report

3. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

4. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, U.S. government securities and in-kind transactions, aggregated $16,375,674 and $90,115,756, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .35% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and certain exceptions such as transfer agent, distribution and service plan fees and interest expense.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$ 2,584	$ 133
Class T	-%	.25%	846	15
Class C	.75%	.25%	2,467	1,220
			$ 5,897	$ 1,368

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 1,968
Class C*	30
	$ 1,998

* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, with the exception of Corporate Bond. FIIOC receives only an asset-based fee for Corporate Bond. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Semiannual Report

5. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, transfer agent fees for each class were as follows:

	Amount	% of Average Net Assets*
Class A	$ 1,747	.17
Class T	465	.14
Class C	461	.19
Corporate Bond	40,555	.11
Institutional Class	373	.07
	$ 43,601

* Annualized

Exchange In-Kind. During the period, the Fund redeemed in-kind 290,603 shares of Fidelity Corporate Bond 1-10 Year Central Fund ("1-10 Year"), a Fidelity Central Fund in which the Fund invested, valued at $31,509,495, in exchange for cash and securities, including accrued interest. Realized gain (loss) of $858,197 on the Fund's redemption of 1-10 Year shares is included in the accompanying Statement of Operations as "Realized gain (loss) on Fidelity Central Funds." Because 1-10 Year was a partnership for federal income tax purposes, the redemption generally was tax free to the Fund.

6. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's management fee by $17.

7. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net investment income
Class A	$ 40,912	$ 34,654
Class T	13,300	15,067
Class C	7,832	8,948
Corporate Bond	1,634,704	879,782
Institutional Class	22,095	19,730
Total	$ 1,718,843	$ 958,181

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. Distributions to Shareholders - continued

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net realized gain
Class A	$ 19,036	$ -
Class T	5,392	-
Class C	5,080	-
Corporate Bond	730,206	-
Institutional Class	8,497	-
Total	$ 768,211	$ -

^A For the period May 4, 2010 (commencement of operations) to August 31, 2010.

8. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010 A	Six months ended February 28, 2011	Year ended August 31, 2010 A
Class A
Shares sold	159,434	419,766	$ 1,637,755	$ 4,210,047
Reinvestment of distributions	3,487	917	35,767	9,298
Shares redeemed	(258,399)	(125,561)	(2,692,249)	(1,260,334)
Net increase (decrease)	(95,478)	295,122	$ (1,018,727)	$ 2,959,011
Class T
Shares sold	33,303	225,745	$ 343,796	$ 2,263,959
Reinvestment of distributions	1,659	1,303	17,207	13,242
Shares redeemed	(88,425)	(128,843)	(911,096)	(1,293,969)
Net increase (decrease)	(53,463)	98,205	$ (550,093)	$ 983,232
Class C
Shares sold	48,335	163,695	$ 497,438	$ 1,646,522
Reinvestment of distributions	1,079	753	11,133	7,616
Shares redeemed	(68,866)	(100,457)	(714,310)	(1,007,582)
Net increase (decrease)	(19,452)	63,991	$ (205,739)	$ 646,556
Corporate Bond
Shares sold	3,850,924	13,027,028	$ 39,715,360	$ 131,371,513
Reinvestment of distributions	208,800	77,870	2,160,978	800,920
Shares redeemed	(12,053,637)	(1,149,092)	(124,713,732)	(11,644,820)
Net increase (decrease)	(7,993,913)	11,955,806	$ (82,837,394)	$ 120,527,613
Institutional Class
Shares sold	32,230	260,141	$ 332,576	$ 2,605,174
Reinvestment of distributions	2,448	1,566	25,325	15,969
Shares redeemed	(134,263)	(127,126)	(1,368,255)	(1,285,873)
Net increase (decrease)	(99,585)	134,581	$ (1,010,354)	$ 1,335,270

^A For the period May 4, 2010 (commencement of operations) to August 31, 2010.

Semiannual Report

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments
Money Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

State Street Bank and Trust Company

Quincy, MA

ACBD-USAN-0411
1.907027.100

(Fidelity Investment logo)(registered trademark)

Fidelity Advisor®
Corporate Bond
Fund - Institutional Class

Semiannual Report

February 28, 2011

Institutional Class
is a class of Fidelity®
Corporate Bond Fund

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, indirectly bears its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, indirectly bears its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Class A	.78%
Actual		$ 1,000.00	$ 1,014.10	$ 3.90
HypotheticalA		$ 1,000.00	$ 1,020.93	$ 3.91
Class T	.75%
Actual		$ 1,000.00	$ 1,015.00	$ 3.75
HypotheticalA		$ 1,000.00	$ 1,021.08	$ 3.76
Class C	1.56%
Actual		$ 1,000.00	$ 1,011.00	$ 7.78
HypotheticalA		$ 1,000.00	$ 1,017.06	$ 7.80
Corporate Bond	.46%
Actual		$ 1,000.00	$ 1,015.70	$ 2.30
HypotheticalA		$ 1,000.00	$ 1,022.51	$ 2.31
Institutional Class	.43%
Actual		$ 1,000.00	$ 1,015.80	$ 2.15
HypotheticalA		$ 1,000.00	$ 1,022.66	$ 2.16

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invested are not included in the Fund's annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

The information in the following tables as of August 31, 2010 is based on the combined investments of the Fund and its pro-rata share of its investments in each Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations 6.5%		U.S. Government and U.S. Government Agency Obligations 13.0%
	AAA 0.0%		AAA 0.1%
	AA 9.4%		AA 7.1%
	A 19.8%		A 25.5%
	BBB 45.3%		BBB 49.8%
	BB and Below 10.0%		BB and Below 5.4%
	Not Rated 1.0%		Not Rated 0.0%
	Short-Term Investments and Net Other Assets 8.0%		Short-Term Investments and Net Other Assets † (0.9)%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	10.6	10.8

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	6.3	6.3

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011 *		As of August 31, 2010 **
	Corporate Bonds 79.8%		Corporate Bonds 86.0%
	U.S. Government and U.S. Government Agency Obligations 6.5%		U.S. Government and U.S. Government Agency Obligations 13.0%
	Municipal Bonds 4.4%		Municipal Bonds 1.5%
	Other Investments 1.3%		Other Investments 0.4%
	Short-Term Investments and Net Other Assets 8.0%		Short-Term Investments and Net Other Assets † (0.9)%

* Foreign investments	15.5%	** Foreign investments	13.7%
* Futures and Swaps	0.0%	** Futures and Swaps	0.8%

^† Short-Term Investments and Net Other Assets are not included in the pie chart.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 79.8%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 5.7%
Household Durables - 1.6%
Fortune Brands, Inc.:
5.375% 1/15/16	$ 239,000		$ 251,447
6.375% 6/15/14	182,000		199,788
Whirlpool Corp.:
6.125% 6/15/11	152,000		154,266
6.5% 6/15/16	85,000		94,753
			700,254
Media - 3.8%
Comcast Corp. 6.4% 3/1/40	250,000		260,106
Discovery Communications LLC 6.35% 6/1/40	221,000		232,523
NBC Universal, Inc.:
3.65% 4/30/15 (b)	129,000		131,845
6.4% 4/30/40 (b)	390,000		407,454
News America, Inc. 6.9% 8/15/39	300,000		335,727
Time Warner, Inc. 6.2% 3/15/40	300,000		305,656
			1,673,311
Specialty Retail - 0.3%
Staples, Inc. 7.375% 10/1/12	100,000		108,729
TOTAL CONSUMER DISCRETIONARY			2,482,294
CONSUMER STAPLES - 2.5%
Beverages - 0.8%
Anheuser-Busch InBev Worldwide, Inc. 5.375% 11/15/14 (b)	218,000		240,879
FBG Finance Ltd. 5.125% 6/15/15 (b)	131,000		139,216
			380,095
Food Products - 0.8%
Kraft Foods, Inc.:
5.625% 11/1/11	21,000		21,666
6.5% 8/11/17	274,000		314,755
			336,421
Tobacco - 0.9%
Altria Group, Inc. 9.7% 11/10/18	182,000		239,598
Reynolds American, Inc. 6.75% 6/15/17	131,000		147,476
			387,074
TOTAL CONSUMER STAPLES			1,103,590
Nonconvertible Bonds - continued
	Principal Amount		Value
ENERGY - 12.7%
Energy Equipment & Services - 3.4%
DCP Midstream LLC 5.35% 3/15/20 (b)	$ 116,000		$ 120,217
El Paso Pipeline Partners Operating Co. LLC 6.5% 4/1/20	658,000		725,850
Noble Holding International Ltd. 3.05% 3/1/16	450,000		447,256
Weatherford International Ltd.:
4.95% 10/15/13	78,000		82,902
5.15% 3/15/13	102,000		107,760
			1,483,985
Oil, Gas & Consumable Fuels - 9.3%
Anadarko Petroleum Corp.:
5.95% 9/15/16	393,000		431,077
6.375% 9/15/17	71,000		79,136
BW Group Ltd. 6.625% 6/28/17 (b)	132,000		133,290
Duke Energy Field Services 5.375% 10/15/15 (b)	54,000		57,963
El Paso Natural Gas Co. 5.95% 4/15/17	492,000		536,112
EnCana Holdings Finance Corp. 5.8% 5/1/14	129,000		143,420
Gulf South Pipeline Co. LP 5.75% 8/15/12 (b)	172,000		181,453
Marathon Petroleum Corp. 6.5% 3/1/41 (b)	220,000		222,880
Midcontinent Express Pipeline LLC 5.45% 9/15/14 (b)	480,000		522,180
Nexen, Inc.:
5.05% 11/20/13	184,000		196,228
5.2% 3/10/15	41,000		43,587
6.2% 7/30/19	324,000		346,552
6.4% 5/15/37	158,000		151,208
NGPL PipeCo LLC 6.514% 12/15/12 (b)	159,000		171,395
Petrobras International Finance Co. Ltd.:
3.875% 1/27/16	39,000		39,384
5.75% 1/20/20	427,000		443,076
Petroleos Mexicanos 6% 3/5/20	116,000		121,510
Plains All American Pipeline LP/PAA Finance Corp. 5% 2/1/21	14,000		14,031
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 3/15/14 (b)	93,100		100,781
Rockies Express Pipeline LLC 6.25% 7/15/13 (b)	121,000		130,035
Spectra Energy Capital, LLC 5.65% 3/1/20	56,000		59,275
			4,124,573
TOTAL ENERGY			5,608,558
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - 41.7%
Capital Markets - 6.0%
Goldman Sachs Group, Inc.:
5.95% 1/18/18	$ 178,000		$ 193,242
6.15% 4/1/18	204,000		223,478
Janus Capital Group, Inc. 6.125% 9/15/11 (a)	107,000		108,789
Lazard Group LLC:
6.85% 6/15/17	171,000		182,144
7.125% 5/15/15	61,000		67,129
Merrill Lynch & Co., Inc. 7.75% 5/14/38	450,000		509,815
Morgan Stanley:
4% 7/24/15	447,000		457,844
5.5% 7/24/20	225,000		227,185
5.625% 9/23/19	219,000		224,817
6% 4/28/15	255,000		279,281
6.625% 4/1/18	153,000		169,124
			2,642,848
Commercial Banks - 13.2%
Comerica, Inc. 4.8% 5/1/15	107,000		112,867
Credit Suisse New York Branch 6% 2/15/18	122,000		130,268
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (b)(d)	139,000		136,394
Discover Bank 7% 4/15/20	350,000		385,993
Export-Import Bank of Korea 5.5% 10/17/12	101,000		106,632
Fifth Third Bancorp 8.25% 3/1/38	1,273,000		1,534,248
Fifth Third Capital Trust IV 6.5% 4/15/67 (d)	36,000		35,100
HSBC Holdings PLC 6.5% 9/15/37	100,000		103,673
JPMorgan Chase Bank 6% 10/1/17	1,424,000		1,569,461
Marshall & Ilsley Bank 5% 1/17/17	93,000		96,931
Regions Bank 7.5% 5/15/18	670,000		710,200
Regions Financial Corp. 0.4728% 6/26/12 (d)	61,000		58,068
Silicon Valley Bank 5.7% 6/1/12	406,000		417,687
UniCredit Luxembourg Finance SA 5.584% 1/13/17 (b)(d)	131,000		125,474
Union Planters Corp. 7.75% 3/1/11	87,000		87,000
UnionBanCal Corp. 5.25% 12/16/13	30,000		32,288
Wachovia Corp. 5.625% 10/15/16	152,000		165,614
			5,807,898
Consumer Finance - 3.4%
Discover Financial Services:
6.45% 6/12/17	107,000		116,010
10.25% 7/15/19	105,000		135,949
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Consumer Finance - continued
General Electric Capital Corp.:
4.625% 1/7/21	$ 1,000,000		$ 993,746
5.875% 1/14/38	150,000		150,492
HSBC Finance Corp. 5.9% 6/19/12	104,000		109,829
			1,506,026
Diversified Financial Services - 9.2%
BP Capital Markets PLC:
3.125% 10/1/15	608,000		616,916
3.625% 5/8/14	388,000		405,444
4.5% 10/1/20	300,000		301,298
Capital One Capital V 10.25% 8/15/39	441,000		479,036
Capital One Capital VI 8.875% 5/15/40	100,000		106,125
Citigroup, Inc.:
6.125% 5/15/18	75,000		82,232
6.5% 8/19/13	433,000		477,222
6.875% 3/5/38	175,000		192,845
8.5% 5/22/19	100,000		124,004
General Electric Capital Corp. 5.3% 2/11/21	460,000		472,206
Prime Property Funding II 5.6% 6/15/11 (b)	364,000		366,774
Prime Property Funding, Inc. 5.7% 4/15/17 (b)	76,000		78,032
TECO Finance, Inc. 5.15% 3/15/20	114,000		118,010
TransCapitalInvest Ltd. 5.67% 3/5/14 (b)	195,000		206,435
			4,026,579
Insurance - 3.2%
Aon Corp. 6.25% 9/30/40	253,000		261,983
Assurant, Inc. 5.625% 2/15/14	85,000		90,110
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (b)(d)	66,000		67,650
Monumental Global Funding II 5.65% 7/14/11 (b)	74,000		74,948
Monumental Global Funding III 5.5% 4/22/13 (b)	98,000		104,311
Pacific Life Global Funding 5.15% 4/15/13 (b)	152,000		161,696
Pacific LifeCorp 6% 2/10/20 (b)	100,000		105,565
Prudential Financial, Inc. 5.15% 1/15/13	144,000		152,907
QBE Insurance Group Ltd. 5.647% 7/1/23 (b)(d)	58,000		54,271
Symetra Financial Corp. 6.125% 4/1/16 (b)	215,000		224,752
Unum Group 7.125% 9/30/16	106,000		120,122
			1,418,315
Real Estate Investment Trusts - 2.6%
CommonWealth REIT 5.875% 9/15/20	260,000		264,835
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Real Estate Investment Trusts - continued
Developers Diversified Realty Corp.:
5.25% 4/15/11	$ 109,000		$ 109,431
5.375% 10/15/12	57,000		59,029
Equity One, Inc. 6.25% 12/15/14	223,000		239,231
Federal Realty Investment Trust:
5.95% 8/15/14	100,000		110,683
6% 7/15/12	131,000		138,722
Washington (REIT):
5.25% 1/15/14	58,000		61,159
5.95% 6/15/11	162,000		163,898
			1,146,988
Real Estate Management & Development - 3.3%
Brandywine Operating Partnership LP 5.75% 4/1/12	183,000		188,524
Duke Realty LP:
5.4% 8/15/14	126,000		134,502
5.625% 8/15/11	134,000		136,144
Liberty Property LP:
5.125% 3/2/15	141,000		149,153
5.5% 12/15/16	66,000		71,502
Mack-Cali Realty LP 7.75% 8/15/19	126,000		151,372
Tanger Properties LP 6.125% 6/1/20	586,000		633,821
			1,465,018
Thrifts & Mortgage Finance - 0.8%
First Niagara Financial Group, Inc. 6.75% 3/19/20	325,000		353,199
TOTAL FINANCIALS			18,366,871
HEALTH CARE - 0.3%
Pharmaceuticals - 0.3%
Watson Pharmaceuticals, Inc. 5% 8/15/14	130,000		140,393
INDUSTRIALS - 0.9%
Aerospace & Defense - 0.3%
BAE Systems Holdings, Inc. 4.95% 6/1/14 (b)	103,000		109,842
Airlines - 0.6%
Continental Airlines, Inc. 6.648% 3/15/19	125,776		131,184
Nonconvertible Bonds - continued
	Principal Amount		Value
INDUSTRIALS - continued
Airlines - continued
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	$ 73,882		$ 72,330
8.36% 7/20/20	55,376		56,289
			259,803
TOTAL INDUSTRIALS			369,645
INFORMATION TECHNOLOGY - 0.8%
Electronic Equipment & Components - 0.8%
Tyco Electronics Group SA:
5.95% 1/15/14	160,000		175,807
6% 10/1/12	173,000		185,153
			360,960
MATERIALS - 2.5%
Chemicals - 0.6%
Dow Chemical Co. 7.6% 5/15/14	237,000		275,219
Construction Materials - 0.2%
CRH America, Inc. 6% 9/30/16	82,000		88,355
Metals & Mining - 1.7%
Anglo American Capital PLC 9.375% 4/8/14 (b)	156,000		187,953
ArcelorMittal SA 5.5% 3/1/21	440,000		437,250
Vale Overseas Ltd. 6.25% 1/23/17	104,000		117,221
			742,424
TOTAL MATERIALS			1,105,998
TELECOMMUNICATION SERVICES - 3.7%
Diversified Telecommunication Services - 2.7%
AT&T, Inc. 6.3% 1/15/38	500,000		519,097
CenturyLink, Inc. 7.6% 9/15/39	118,000		124,555
Telecom Italia Capital SA:
4.95% 9/30/14	143,000		146,932
7.175% 6/18/19	94,000		101,772
Telefonica Emisiones SAU:
3.992% 2/16/16	200,000		200,791
5.134% 4/27/20	94,000		93,560
			1,186,707
Nonconvertible Bonds - continued
	Principal Amount		Value
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - 1.0%
America Movil SAB de CV 3.625% 3/30/15	$ 132,000		$ 135,738
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	223,000		239,876
5.875% 10/1/19	67,000		72,610
			448,224
TOTAL TELECOMMUNICATION SERVICES			1,634,931
UTILITIES - 9.0%
Electric Utilities - 7.0%
AmerenUE 6.4% 6/15/17	133,000		150,704
Cleveland Electric Illuminating Co. 5.65% 12/15/13	183,000		200,791
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (b)	140,000		144,859
EDP Finance BV 6% 2/2/18 (b)	106,000		104,128
FirstEnergy Corp. 7.375% 11/15/31	563,000		613,738
FirstEnergy Solutions Corp. 6.05% 8/15/21	38,000		39,742
Nevada Power Co.:
6.5% 8/1/18	70,000		80,554
6.65% 4/1/36	500,000		567,973
Progress Energy, Inc. 6% 12/1/39	500,000		524,604
Sierra Pacific Power Co. 5.45% 9/1/13	70,000		76,227
Tampa Electric Co. 6.55% 5/15/36	500,000		559,958
			3,063,278
Independent Power Producers & Energy Traders - 0.8%
Duke Capital LLC 5.668% 8/15/14	192,000		210,981
Exelon Generation Co. LLC 4% 10/1/20	157,000		146,091
			357,072
Multi-Utilities - 1.2%
Dominion Resources, Inc.:
6.3% 9/30/66 (d)	145,000		141,738
7.5% 6/30/66 (d)	145,000		150,800
NiSource Finance Corp.:
5.4% 7/15/14	60,000		65,228
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Multi-Utilities - continued
NiSource Finance Corp.: - continued
6.4% 3/15/18	$ 59,000		$ 66,239
Wisconsin Energy Corp. 6.25% 5/15/67 (d)	117,000		116,854
			540,859
TOTAL UTILITIES			3,961,209
TOTAL NONCONVERTIBLE BONDS (Cost $34,550,573)		35,134,449
U.S. Treasury Obligations - 6.5%
U.S. Treasury Bonds 3.875% 8/15/40	923,000		828,680
U.S. Treasury Notes:
2% 1/31/16	1,311,000		1,304,854
2.625% 8/15/20	50,000		46,984
2.625% 11/15/20	720,000		673,482
TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,818,734)		2,854,000
Municipal Securities - 4.4%
American Muni. Pwr.-Ohio, Inc. Rev. (Combined Hydroelectric Proj.)Series 2010 B, 8.084% 2/15/50	280,000		316,467
California Gen. Oblig.:
6.2% 3/1/19	188,000		198,848
7.55% 4/1/39	200,000		215,818
Illinois Gen. Oblig.:
4.511% 3/1/15 (c)	350,000		350,011
5.665% 3/1/18 (c)	25,000		25,054
5.877% 3/1/19 (c)	20,000		20,052
Los Angeles Dept. of Wtr. & Pwr. Rev. Series 2010 A, 6.603% 7/1/50	130,000		136,063
Muni. Elec. Auth. of Georgia (Plant Vogtle Units 3&4 Proj.)Series 2010 A, 6.655% 4/1/57	690,000		680,623
TOTAL MUNICIPAL SECURITIES (Cost $1,881,145)		1,942,936
Bank Notes - 1.0%
	Principal Amount		Value
Wachovia Bank NA 6% 11/15/17 (Cost $445,731)	$ 405,000		$ 453,839
Commercial Paper - 2.3%
Dow Chemical Co. 0.45% 3/7/11	500,000		499,914
Transocean, Inc. yankee 0.85% 3/9/11	500,000		499,913
TOTAL COMMERCIAL PAPER (Cost $999,850)		999,827

Preferred Securities - 0.3%
FINANCIALS - 0.3%
Diversified Financial Services - 0.3%
ING Groep NV 5.775% (d)	47,000		42,441
MUFG Capital Finance 1 Ltd. 6.346% (d)	102,000		105,041
TOTAL PREFERRED SECURITIES (Cost $145,119)		147,482
Cash Equivalents - 6.1%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $2,680,000)	$ 2,680,016		2,680,000
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $43,521,152)			44,212,533
NET OTHER ASSETS (LIABILITIES) - (0.4)%			(165,418)
NET ASSETS - 100%		$ 44,047,115

Legend

(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,812,672 or 10.9% of net assets.

(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value
$2,680,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 223,981
Bank of America NA	199,095
Barclays Capital, Inc.	110,871
Credit Agricole Securities (USA), Inc.	99,547
Deutsche Bank Securities, Inc.	114,226
Goldman, Sachs & Co.	24,887
HSBC Securities (USA), Inc.	298,642
ING Financial Markets LLC	184,163
J.P. Morgan Securities, Inc.	298,642
Merrill Lynch Government Securities, Inc.	89,593
Merrill Lynch, Pierce, Fenner & Smith, Inc.	137,442
Mizuho Securities USA, Inc.	547,510
RBC Capital Markets Corp.	24,885
Societe Generale, New York Branch	199,095
Wells Fargo Securities LLC	127,421
	$ 2,680,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Corporate Bond 1-10 Year Central Fund	$ 719,660

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the Fidelity Central Funds is as follows:

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Corporate Bond 1-10 Year Central Fund	$ 70,145,328	$ -	$ 70,246,461 *	$ -	0.0%
Total	$ 70,145,328	$ -	$ 70,246,461	$ -

* Includes the value of shares redeemed through in-kind transactions. See Note 5 of the Notes
to Financial Statements.

Other Information

All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America	84.5%
Cayman Islands	3.7%
United Kingdom	3.6%
Luxembourg	2.3%
Canada	2.0%
Others (Individually Less Than 1%)	3.9%
	100.0%

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $2,680,000) - See accompanying schedule: Unaffiliated issuers (cost $43,521,152)		$ 44,212,533
Cash		243
Receivable for fund shares sold		207,302
Interest receivable		610,331
Total assets		45,030,409
Liabilities
Payable for investments purchased Regular delivery	$ 497,818
Delayed delivery	395,000
Payable for fund shares redeemed	59,852
Distributions payable	13,156
Accrued management fee	12,905
Distribution and service plan fees payable	876
Other affiliated payables	3,687
Total liabilities		983,294
Net Assets		$ 44,047,115
Net Assets consist of:
Paid in capital		$ 40,829,376
Distributions in excess of net investment income		(26,843)
Accumulated undistributed net realized gain (loss) on investments		2,553,201
Net unrealized appreciation (depreciation) on investments		691,381
Net Assets		$ 44,047,115

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

	February 28, 2011 (Unaudited)
Calculation of Maximum Offering Price  Class A: Net Asset Value and redemption price per share ($2,051,893 ÷ 199,644 shares)		$ 10.28
Maximum offering price per share (100/96.00 of $10.28)		$ 10.71
Class T: Net Asset Value and redemption price per share ($459,829 ÷ 44,742 shares)		$ 10.28
Maximum offering price per share (100/96.00 of $10.28)		$ 10.71
Class C: Net Asset Value and offering price per share ($457,725 ÷ 44,539 shares)A		$ 10.28
Corporate Bond: Net Asset Value, offering price and redemption price per share ($40,718,007 ÷ 3,961,893 shares)		$ 10.28
Institutional Class: Net Asset Value, offering price and redemption price per share ($359,661 ÷ 34,996 shares)		$ 10.28

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 4,596
Interest		1,114,415
Income from Fidelity Central Funds		719,660
Total income		1,838,671
Expenses
Management fee	$ 141,172
Transfer agent fees	43,601
Distribution and service plan fees	5,897
Independent trustees' compensation	181
Total expenses before reductions	190,851
Expense reductions	(17)	190,834
Net investment income (loss)		1,647,837
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	1,059,081
Fidelity Central Funds	1,941,839
Total net realized gain (loss)		3,000,920
Change in net unrealized appreciation (depreciation) on investment securities		(3,554,135)
Net gain (loss)		(553,215)
Net increase (decrease) in net assets resulting from operations		$ 1,094,622

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended February 28, 2011 (Unaudited)	For the period May 4, 2010 (commencement of operations) to August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,647,837	$ 970,447
Net realized gain (loss)	3,000,920	352,390
Change in net unrealized appreciation (depreciation)	(3,554,135)	4,245,516
Net increase (decrease) in net assets resulting from operations	1,094,622	5,568,353
Distributions to shareholders from net investment income	(1,718,843)	(958,181)
Distributions to shareholders from net realized gain	(768,211)	-
Total distributions	(2,487,054)	(958,181)
Share transactions - net increase (decrease)	(85,622,307)	126,451,682
Total increase (decrease) in net assets	(87,014,739)	131,061,854
Net Assets
Beginning of period	131,061,854	-
End of period (including distributions in excess of net investment income of $26,843 and undistributed net investment income of $44,163, respectively)	$ 44,047,115	$ 131,061,854

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.196	.128
Net realized and unrealized gain (loss)	(.053)	.446
Total from investment operations	.143	.574
Distributions from net investment income	(.211)	(.124)
Distributions from net realized gain	(.102)	-
Total distributions	(.313)	(.124)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C, D	1.41%	5.78%
Ratios to Average Net Assets F, I
Expenses before reductions	.78% A	.74% A
Expenses net of fee waivers, if any	.78% A	.74% A
Expenses net of all reductions	.78% A	.74% A
Net investment income (loss)	3.83% A	3.91% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,052	$ 3,083
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.44	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.199	.131
Net realized and unrealized gain (loss)	(.046)	.436
Total from investment operations	.153	.567
Distributions from net investment income	(.211)	(.127)
Distributions from net realized gain	(.102)	-
Total distributions	(.313)	(.127)
Net asset value, end of period	$ 10.28	$ 10.44
Total Return B, C, D	1.50%	5.71%
Ratios to Average Net Assets F, I
Expenses before reductions	.75% A	.68% A
Expenses net of fee waivers, if any	.75% A	.68% A
Expenses net of all reductions	.75% A	.68% A
Net investment income (loss)	3.86% A	3.98% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 460	$ 1,026
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the sales charges.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.44	$ 10.00
Income from Investment Operations
Net investment income (loss) E	.156	.106
Net realized and unrealized gain (loss)	(.045)	.437
Total from investment operations	.111	.543
Distributions from net investment income	(.169)	(.103)
Distributions from net realized gain	(.102)	-
Total distributions	(.271)	(.103)
Net asset value, end of period	$ 10.28	$ 10.44
Total Return B, C, D	1.10%	5.46%
Ratios to Average Net Assets F, I
Expenses before reductions	1.56% A	1.45% A
Expenses net of fee waivers, if any	1.56% A	1.45% A
Expenses net of all reductions	1.56% A	1.45% A
Net investment income (loss)	3.04% A	3.20% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 458	$ 668
Portfolio turnover rate G	136% A, K	67% J

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Total returns do not include the effect of the contingent deferred sales charge.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount not annualized.

^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Corporate Bond

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) D	.214	.137
Net realized and unrealized gain (loss)	(.055)	.447
Total from investment operations	.159	.584
Distributions from net investment income	(.227)	(.134)
Distributions from net realized gain	(.102)	-
Total distributions	(.329)	(.134)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C	1.57%	5.88%
Ratios to Average Net Assets E, H
Expenses before reductions	.46% A	.44% A
Expenses net of fee waivers, if any	.46% A	.44% A
Expenses net of all reductions	.46% A	.44% A
Net investment income (loss)	4.14% A	4.21% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 40,718	$ 124,879
Portfolio turnover rate F	136% A, J	67% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount not annualized.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 28, 2011	Year ended August 31,
	(Unaudited)	2010 G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.00
Income from Investment Operations
Net investment income (loss) D	.215	.140
Net realized and unrealized gain (loss)	(.055)	.445
Total from investment operations	.160	.585
Distributions from net investment income	(.228)	(.135)
Distributions from net realized gain	(.102)	-
Total distributions	(.330)	(.135)
Net asset value, end of period	$ 10.28	$ 10.45
Total Return B, C	1.58%	5.89%
Ratios to Average Net Assets E, H
Expenses before reductions	.43% A	.42% A
Expenses net of fee waivers, if any	.43% A	.42% A
Expenses net of all reductions	.43% A	.42% A
Net investment income (loss)	4.18% A	4.23% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 360	$ 1,406
Portfolio turnover rate F	136% A, J	67% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period May 4, 2010 (commencement of operations) to August 31, 2010.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I Amount not annualized.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

1. Organization.

Fidelity Corporate Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Corporate Bond, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Semiannual Report

2. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, bank notes, municipal securities, preferred securities, U.S. government and government agency obligations and commercial paper, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to market discount, partnerships (including allocations from Fidelity Central Funds) and losses deferred due to wash sales.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 2,064,521
Gross unrealized depreciation	(184,059)
Net unrealized appreciation (depreciation) on securities and other investments	$ 1,880,462
Tax cost	$ 42,332,071

3. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Semiannual Report

3. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

4. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, U.S. government securities and in-kind transactions, aggregated $16,375,674 and $90,115,756, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .35% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and certain exceptions such as transfer agent, distribution and service plan fees and interest expense.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$ 2,584	$ 133
Class T	-%	.25%	846	15
Class C	.75%	.25%	2,467	1,220
			$ 5,897	$ 1,368

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 1,968
Class C*	30
	$ 1,998

* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, with the exception of Corporate Bond. FIIOC receives only an asset-based fee for Corporate Bond. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Semiannual Report

5. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, transfer agent fees for each class were as follows:

	Amount	% of Average Net Assets*
Class A	$ 1,747	.17
Class T	465	.14
Class C	461	.19
Corporate Bond	40,555	.11
Institutional Class	373	.07
	$ 43,601

* Annualized

Exchange In-Kind. During the period, the Fund redeemed in-kind 290,603 shares of Fidelity Corporate Bond 1-10 Year Central Fund ("1-10 Year"), a Fidelity Central Fund in which the Fund invested, valued at $31,509,495, in exchange for cash and securities, including accrued interest. Realized gain (loss) of $858,197 on the Fund's redemption of 1-10 Year shares is included in the accompanying Statement of Operations as "Realized gain (loss) on Fidelity Central Funds." Because 1-10 Year was a partnership for federal income tax purposes, the redemption generally was tax free to the Fund.

6. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's management fee by $17.

7. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net investment income
Class A	$ 40,912	$ 34,654
Class T	13,300	15,067
Class C	7,832	8,948
Corporate Bond	1,634,704	879,782
Institutional Class	22,095	19,730
Total	$ 1,718,843	$ 958,181

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. Distributions to Shareholders - continued

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net realized gain
Class A	$ 19,036	$ -
Class T	5,392	-
Class C	5,080	-
Corporate Bond	730,206	-
Institutional Class	8,497	-
Total	$ 768,211	$ -

^A For the period May 4, 2010 (commencement of operations) to August 31, 2010.

8. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010 A	Six months ended February 28, 2011	Year ended August 31, 2010 A
Class A
Shares sold	159,434	419,766	$ 1,637,755	$ 4,210,047
Reinvestment of distributions	3,487	917	35,767	9,298
Shares redeemed	(258,399)	(125,561)	(2,692,249)	(1,260,334)
Net increase (decrease)	(95,478)	295,122	$ (1,018,727)	$ 2,959,011
Class T
Shares sold	33,303	225,745	$ 343,796	$ 2,263,959
Reinvestment of distributions	1,659	1,303	17,207	13,242
Shares redeemed	(88,425)	(128,843)	(911,096)	(1,293,969)
Net increase (decrease)	(53,463)	98,205	$ (550,093)	$ 983,232
Class C
Shares sold	48,335	163,695	$ 497,438	$ 1,646,522
Reinvestment of distributions	1,079	753	11,133	7,616
Shares redeemed	(68,866)	(100,457)	(714,310)	(1,007,582)
Net increase (decrease)	(19,452)	63,991	$ (205,739)	$ 646,556
Corporate Bond
Shares sold	3,850,924	13,027,028	$ 39,715,360	$ 131,371,513
Reinvestment of distributions	208,800	77,870	2,160,978	800,920
Shares redeemed	(12,053,637)	(1,149,092)	(124,713,732)	(11,644,820)
Net increase (decrease)	(7,993,913)	11,955,806	$ (82,837,394)	$ 120,527,613
Institutional Class
Shares sold	32,230	260,141	$ 332,576	$ 2,605,174
Reinvestment of distributions	2,448	1,566	25,325	15,969
Shares redeemed	(134,263)	(127,126)	(1,368,255)	(1,285,873)
Net increase (decrease)	(99,585)	134,581	$ (1,010,354)	$ 1,335,270

^A For the period May 4, 2010 (commencement of operations) to August 31, 2010.

Semiannual Report

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments
Money Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

State Street Bank and Trust Company

Quincy, MA

ACBDI-USAN-0411
1.907020.100

Fidelity®
Intermediate Bond
Fund

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Semiannual Report

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Actual	.45%	$ 1,000.00	$ 1,001.60	$ 2.23
Hypothetical (5% return per year before expenses)		$ 1,000.00	$ 1,022.56	$ 2.26

* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations† 47.3%		U.S. Government and U.S. Government Agency Obligations† 50.1%
	AAA 11.8%		AAA 10.6%
	AA 8.4%		AA 7.3%
	A 9.7%		A 9.5%
	BBB 17.2%		BBB 16.1%
	BB and Below 3.4%		BB and Below 3.1%
	Not Rated 0.4%		Not Rated 0.3%
	Short-Term Investments and Net Other Assets 1.8%		Short-Term Investments and Net Other Assets 3.0%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition. The information in the above table is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	4.7	5.1

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	4.0	3.9

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011*			As of August 31, 2010**
	Corporate Bonds 35.1%			Corporate Bonds 33.7%
	U.S. Government and U.S. Government Agency Obligations† 47.3%			U.S. Government and U.S. Government Agency Obligations† 50.1%
	Asset-Backed Securities 7.4%			Asset-Backed Securities 6.1%
	CMOs and Other Mortgage Related Securities 6.5%			CMOs and Other Mortgage Related Securities 5.8%
	Municipal Bonds 0.4%			Municipal Bonds 0.3%
	Other Investments 1.5%			Other Investments 1.0%
	Short-Term Investments and Net Other Assets 1.8%			Short-Term Investments and Net Other Assets 3.0%
* Foreign investments		10.1%	** Foreign investments		10.3%
* Futures and Swaps		0.0%	** Futures and Swaps		0.1%

^† Includes FDIC Guaranteed Corporate Securities.

A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investments in underlying non-money market Fidelity Central Funds is available at fidelity.com.

Semiannual Report

Investments February 28, 2011

Showing Percentage of Net Assets

Nonconvertible Bonds - 34.1%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 3.1%
Auto Components - 0.3%
DaimlerChrysler NA Holding Corp.:
5.75% 9/8/11	$ 9,641		$ 9,893
5.875% 3/15/11	395		396
6.5% 11/15/13	4,012		4,522
			14,811
Diversified Consumer Services - 0.1%
Yale University 2.9% 10/15/14	3,460		3,590
Household Durables - 0.4%
Fortune Brands, Inc.:
5.375% 1/15/16	5,132		5,399
6.375% 6/15/14	5,777		6,342
Whirlpool Corp.:
6.125% 6/15/11	5,150		5,227
6.5% 6/15/16	362		404
			17,372
Media - 1.8%
Comcast Corp.:
4.95% 6/15/16	2,432		2,598
5.15% 3/1/20	4,685		4,884
5.5% 3/15/11	421		422
5.7% 5/15/18	355		388
COX Communications, Inc. 4.625% 6/1/13	4,934		5,269
Discovery Communications LLC:
3.7% 6/1/15	5,906		6,122
5.05% 6/1/20	2,181		2,286
NBC Universal, Inc.:
3.65% 4/30/15 (d)	549		561
5.15% 4/30/20 (d)	6,800		7,005
News America, Inc.:
5.3% 12/15/14	968		1,072
6.9% 3/1/19	5,426		6,380
Time Warner Cable, Inc.:
5.4% 7/2/12	3,163		3,337
5.85% 5/1/17	4,293		4,727
6.2% 7/1/13	3,008		3,321
6.75% 7/1/18	7,189		8,252
Time Warner, Inc.:
3.15% 7/15/15	204		207
4.875% 3/15/20	5,060		5,193
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - continued
Media - continued
Time Warner, Inc.: - continued
5.875% 11/15/16	$ 5,025		$ 5,622
Viacom, Inc.:
4.375% 9/15/14	4,499		4,812
6.125% 10/5/17	3,071		3,473
			75,931
Multiline Retail - 0.2%
Target Corp. 3.875% 7/15/20	6,900		6,812
Specialty Retail - 0.3%
Lowe's Companies, Inc. 4.625% 4/15/20	4,793		5,023
Staples, Inc. 7.375% 10/1/12	8,943		9,724
			14,747
TOTAL CONSUMER DISCRETIONARY			133,263
CONSUMER STAPLES - 1.7%
Beverages - 0.7%
Anheuser-Busch InBev Worldwide, Inc.:
2.5% 3/26/13	9,338		9,537
5.375% 11/15/14 (d)	928		1,025
7.2% 1/15/14 (d)	7,000		8,013
Diageo Capital PLC 5.2% 1/30/13	1,146		1,232
FBG Finance Ltd. 5.125% 6/15/15 (d)	3,800		4,038
PepsiCo, Inc. 7.9% 11/1/18	5,580		7,074
The Coca-Cola Co. 3.15% 11/15/20	670		625
			31,544
Food & Staples Retailing - 0.1%
Wal-Mart Stores, Inc. 2.25% 7/8/15	5,578		5,573
Food Products - 0.3%
Cargill, Inc. 6% 11/27/17 (d)	781		878
General Mills, Inc. 5.2% 3/17/15	3,350		3,678
Kraft Foods, Inc.:
5.375% 2/10/20	4,470		4,752
5.625% 11/1/11	774		799
6.5% 8/11/17	1,168		1,342
6.75% 2/19/14	596		677
			12,126
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Tobacco - 0.6%
Altria Group, Inc.:
8.5% 11/10/13	$ 251		$ 296
9.7% 11/10/18	9,728		12,807
Philip Morris International, Inc. 4.5% 3/26/20	6,800		7,014
Reynolds American, Inc. 6.75% 6/15/17	3,818		4,298
			24,415
TOTAL CONSUMER STAPLES			73,658
ENERGY - 3.9%
Energy Equipment & Services - 0.6%
DCP Midstream LLC 5.35% 3/15/20 (d)	4,118		4,268
El Paso Pipeline Partners Operating Co. LLC 6.5% 4/1/20	5,067		5,589
Halliburton Co. 6.15% 9/15/19	2,601		2,982
Noble Holding International Ltd. 3.45% 8/1/15	486		496
Weatherford International Ltd.:
4.95% 10/15/13	2,254		2,396
5.15% 3/15/13	8,620		9,107
			24,838
Oil, Gas & Consumable Fuels - 3.3%
Anadarko Petroleum Corp.:
5.95% 9/15/16	373		409
6.375% 9/15/17	127		142
BW Group Ltd. 6.625% 6/28/17 (d)	3,827		3,864
Canadian Natural Resources Ltd.:
5.15% 2/1/13	5,823		6,219
5.7% 5/15/17	1,500		1,676
Cenovus Energy, Inc.:
4.5% 9/15/14	337		363
5.7% 10/15/19	4,250		4,740
Delek & Avner-Yam Tethys Ltd. 5.326% 8/1/13 (d)	40		40
Duke Capital LLC 6.25% 2/15/13	1,104		1,200
Duke Energy Field Services 5.375% 10/15/15 (d)	1,581		1,697
El Paso Natural Gas Co. 5.95% 4/15/17	178		194
EnCana Corp. 6.3% 11/1/11	647		671
EnCana Holdings Finance Corp. 5.8% 5/1/14	3,739		4,157
Enterprise Products Operating LP:
4.6% 8/1/12	4,309		4,494
5.6% 10/15/14	2,531		2,807
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Enterprise Products Operating LP: - continued
5.65% 4/1/13	$ 769		$ 830
Gulf South Pipeline Co. LP 5.75% 8/15/12 (d)	5,000		5,275
Gulfstream Natural Gas System LLC 6.95% 6/1/16 (d)	170		196
Kaneb Pipe Line Operations Participation LP 7.75% 2/15/12	5,140		5,404
Marathon Petroleum Corp. 3.5% 3/1/16 (d)	3,810		3,830
Midcontinent Express Pipeline LLC 5.45% 9/15/14 (d)	6,841		7,442
Motiva Enterprises LLC 5.75% 1/15/20 (d)	468		515
Nexen, Inc.:
5.05% 11/20/13	5,208		5,554
5.2% 3/10/15	1,177		1,251
6.2% 7/30/19	464		496
NGPL PipeCo LLC 6.514% 12/15/12 (d)	7,503		8,088
Petro-Canada 6.05% 5/15/18	1,874		2,126
Petrobras International Finance Co. Ltd.:
5.75% 1/20/20	5,269		5,467
7.875% 3/15/19	4,229		4,987
Petroleos Mexicanos 6% 3/5/20	495		519
Plains All American Pipeline LP/PAA Finance Corp.:
3.95% 9/15/15	2,551		2,622
4.25% 9/1/12	6,373		6,623
5.75% 1/15/20	6,268		6,726
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 3/15/14 (d)	2,707		2,930
Ras Laffan Liquefied Natural Gas Co. Ltd. III:
4.5% 9/30/12 (d)	2,054		2,123
5.832% 9/30/16 (d)	1,551		1,651
Rockies Express Pipeline LLC 6.25% 7/15/13 (d)	3,521		3,784
Southeast Supply Header LLC 4.85% 8/15/14 (d)	5,816		6,099
Spectra Energy Capital, LLC 5.65% 3/1/20	237		251
Suncor Energy, Inc. 6.1% 6/1/18	5,571		6,338
Texas Eastern Transmission LP 6% 9/15/17 (d)	5,603		6,356
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	1,717		1,971
XTO Energy, Inc.:
4.9% 2/1/14	5,260		5,766
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
XTO Energy, Inc.: - continued
5% 1/31/15	$ 1,932		$ 2,144
5.65% 4/1/16	1,325		1,521
			141,558
TOTAL ENERGY			166,396
FINANCIALS - 17.3%
Capital Markets - 3.0%
Bear Stearns Companies, Inc. 5.3% 10/30/15	2,688		2,928
BlackRock, Inc. 6.25% 9/15/17	4,409		5,038
Goldman Sachs Group, Inc.:
3.7% 8/1/15	5,015		5,086
5.375% 3/15/20	5,000		5,133
5.95% 1/18/18	10,163		11,033
6.15% 4/1/18	3,044		3,335
Janus Capital Group, Inc. 6.125% 9/15/11 (c)	3,682		3,744
Lazard Group LLC:
6.85% 6/15/17	4,983		5,308
7.125% 5/15/15	1,782		1,961
Merrill Lynch & Co., Inc.:
5.45% 2/5/13	13,865		14,773
6.4% 8/28/17	1,406		1,545
6.875% 4/25/18	5,859		6,591
Morgan Stanley:
4% 7/24/15	497		509
4.1% 1/26/15	8,840		9,103
4.2% 11/20/14	6,316		6,559
4.75% 4/1/14	1,028		1,075
5.45% 1/9/17	1,019		1,075
5.625% 9/23/19	933		958
5.75% 1/25/21	4,378		4,497
5.95% 12/28/17	2,475		2,642
6% 4/28/15	1,087		1,191
6.625% 4/1/18	653		722
7.3% 5/13/19	3,668		4,177
Royal Bank of Scotland PLC:
3.25% 1/11/14	4,500		4,547
4.875% 8/25/14 (d)	8,200		8,516
State Street Corp. 4.3% 5/30/14	740		798
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Capital Markets - continued
The Bank of New York, Inc. 4.3% 5/15/14	$ 4,267		$ 4,601
UBS AG Stamford Branch:
3.875% 1/15/15	4,700		4,827
5.75% 4/25/18	5,403		5,872
			128,144
Commercial Banks - 5.0%
ANZ Banking Group Ltd. 2.125% 1/10/14 (d)	8,970		9,022
Bank of America NA:
5.3% 3/15/17	687		716
6.1% 6/15/17	294		316
Bank of Montreal 2.125% 6/28/13	9,250		9,443
Bank of Nova Scotia 3.4% 1/22/15	11,050		11,435
Barclays Bank PLC 2.375% 1/13/14	10,930		10,985
BB&T Corp. 6.5% 8/1/11	1,372		1,404
Comerica, Inc. 3% 9/16/15	15		15
Commonwealth Bank of Australia 2.9% 9/17/14 (d)	19,580		20,271
Credit Suisse New York Branch:
2.2% 1/14/14	5,716		5,739
6% 2/15/18	9,301		9,931
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (d)(i)	6,404		6,284
Export-Import Bank of Korea:
5.25% 2/10/14 (d)	624		665
5.5% 10/17/12	2,920		3,083
Fifth Third Bancorp:
3.625% 1/25/16	2,439		2,449
4.5% 6/1/18	440		429
8.25% 3/1/38	568		685
Fifth Third Bank 4.75% 2/1/15	2,708		2,837
Fifth Third Capital Trust IV 6.5% 4/15/67 (i)	55		54
HBOS PLC 6.75% 5/21/18 (d)	3,004		2,854
Huntington Bancshares, Inc. 7% 12/15/20	1,204		1,318
ING Bank NV 2.65% 1/14/13 (d)	8,720		8,741
JPMorgan Chase Bank 6% 10/1/17	12,071		13,304
KeyBank NA 5.8% 7/1/14	1,865		2,040
Manufacturers & Traders Trust Co. 1.8028% 4/1/13 (i)	515		514
Marshall & Ilsley Bank:
5% 1/17/17	298		311
5.25% 9/4/12	47		49
PNC Funding Corp. 3.625% 2/8/15	2,676		2,770
Rabobank Nederland NV 1.85% 1/10/14	16,714		16,734
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Regions Bank:
6.45% 6/26/37	$ 514		$ 471
7.5% 5/15/18	2,648		2,807
Regions Financial Corp.:
0.4728% 6/26/12 (i)	260		248
5.75% 6/15/15	31		31
7.75% 11/10/14	168		179
Svenska Handelsbanken AB 2.875% 9/14/12 (d)	14,641		14,961
U.S. Bancorp:
1.375% 9/13/13	9,640		9,644
3.15% 3/4/15	2,146		2,193
UniCredit Luxembourg Finance SA 5.584% 1/13/17 (d)(i)	3,796		3,636
Union Planters Corp. 7.75% 3/1/11	372		372
UnionBanCal Corp. 5.25% 12/16/13	857		922
Wachovia Bank NA:
4.8% 11/1/14	286		304
4.875% 2/1/15	1,823		1,949
Wachovia Corp. 5.625% 10/15/16	4,400		4,794
Wells Fargo & Co.:
3.676% 6/15/16	4,260		4,353
3.75% 10/1/14	14,626		15,403
Westpac Banking Corp. 1.85% 12/9/13	8,320		8,345
			215,010
Consumer Finance - 1.6%
American Express Credit Corp. 2.75% 9/15/15	9,640		9,486
American Honda Finance Corp. 2.375% 3/18/13 (d)	1,800		1,825
Capital One Financial Corp.:
5.7% 9/15/11	3,642		3,738
7.375% 5/23/14	582		671
Discover Financial Services:
6.45% 6/12/17	2,977		3,228
10.25% 7/15/19	448		580
General Electric Capital Corp.:
1.875% 9/16/13	1,899		1,906
2.1% 1/7/14	2,393		2,400
2.25% 11/9/15	6,196		6,006
2.8% 1/8/13	9,075		9,309
3.5% 8/13/12	6,708		6,938
3.5% 6/29/15	3,606		3,707
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Consumer Finance - continued
General Electric Capital Corp.: - continued
6.375% 11/15/67 (i)	$ 5,670		$ 5,805
Household Finance Corp. 6.375% 10/15/11	7,030		7,274
HSBC Finance Corp. 5.9% 6/19/12	444		469
SLM Corp.:
0.5016% 3/15/11 (i)	123		123
0.5331% 10/25/11 (i)	5,737		5,690
			69,155
Diversified Financial Services - 3.0%
Bank of America Corp. 5.75% 12/1/17	6,840		7,313
BB&T Corp. 3.375% 9/25/13	4,200		4,389
BNP Paribas:
2.125% 12/21/12	2,270		2,304
3.25% 3/11/15	4,870		4,914
BP Capital Markets PLC:
3.125% 10/1/15	503		510
3.625% 5/8/14	547		572
4.5% 10/1/20	500		502
Capital One Capital V 10.25% 8/15/39	1,170		1,271
Citigroup, Inc.:
4.75% 5/19/15	9,021		9,526
5.125% 5/5/14	1,651		1,775
6.125% 5/15/18	321		352
6.5% 8/19/13	21,531		23,730
Deutsche Bank AG London Branch 2.375% 1/11/13	8,750		8,896
JPMorgan Chase & Co. 3.4% 6/24/15	17,366		17,607
New York Life Global Fund 2.25% 12/14/12 (d)	4,310		4,407
ORIX Corp. 5.48% 11/22/11	425		437
Prime Property Funding, Inc.:
5.125% 6/1/15 (d)	1,411		1,385
5.35% 4/15/12 (d)	434		441
5.5% 1/15/14 (d)	999		1,048
5.7% 4/15/17 (d)	2,195		2,254
TECO Finance, Inc.:
4% 3/15/16	1,147		1,166
5.15% 3/15/20	1,709		1,769
TransCapitalInvest Ltd. 5.67% 3/5/14 (d)	4,406		4,664
USAA Capital Corp. 3.5% 7/17/14 (d)	5,832		6,049
Volkswagen International Finance NV 1.625% 8/12/13 (d)	3,777		3,799
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Diversified Financial Services - continued
Whirlpool Corp. 8% 5/1/12	$ 4,870		$ 5,220
ZFS Finance USA Trust II 6.45% 12/15/65 (d)(i)	5,531		5,642
ZFS Finance USA Trust IV 5.875% 5/9/62 (d)(i)	2,866		2,855
ZFS Finance USA Trust V 6.5% 5/9/67 (d)(i)	2,778		2,771
			127,568
Insurance - 1.7%
Aon Corp.:
3.5% 9/30/15	6,239		6,263
5% 9/30/20	62		63
Assurant, Inc. 5.625% 2/15/14	2,474		2,623
Axis Capital Holdings Ltd. 5.75% 12/1/14	617		666
Berkshire Hathaway, Inc. 3.2% 2/11/15	6,700		6,922
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (d)(i)	1,929		1,977
Hartford Financial Services Group, Inc. 5.375% 3/15/17	149		155
Liberty Mutual Group, Inc. 6.5% 3/15/35 (d)	769		709
MetLife, Inc.:
2.375% 2/6/14	6,330		6,414
5% 6/15/15	1,285		1,390
Metropolitan Life Global Funding I 2.5% 9/29/15 (d)	3,000		2,927
Monumental Global Funding II 5.65% 7/14/11 (d)	2,239		2,268
Monumental Global Funding III 5.5% 4/22/13 (d)	2,851		3,035
Northwestern Mutual Life Insurance Co. 6.063% 3/30/40 (d)	401		433
Pacific Life Global Funding 5.15% 4/15/13 (d)	7,724		8,217
Pacific LifeCorp 6% 2/10/20 (d)	428		452
Prudential Financial, Inc.:
3.625% 9/17/12	4,198		4,333
4.5% 11/15/20	4,820		4,759
5.15% 1/15/13	614		652
5.4% 6/13/35	499		473
QBE Insurance Group Ltd. 5.647% 7/1/23 (d)(i)	246		230
Symetra Financial Corp. 6.125% 4/1/16 (d)	6,640		6,941
The Chubb Corp. 5.75% 5/15/18	1,739		1,949
Unum Group:
5.625% 9/15/20	2,518		2,558
7.125% 9/30/16	4,802		5,442
			71,851
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Investment Trusts - 0.9%
AvalonBay Communities, Inc.:
4.95% 3/15/13	$ 405		$ 432
5.5% 1/15/12	1,655		1,716
BRE Properties, Inc. 5.5% 3/15/17	508		547
Camden Property Trust:
5.375% 12/15/13	2,244		2,405
5.875% 11/30/12	741		789
Developers Diversified Realty Corp.:
5.25% 4/15/11	3,244		3,257
5.375% 10/15/12	1,677		1,737
7.5% 4/1/17	2,748		3,142
Duke Realty LP:
4.625% 5/15/13	885		918
5.875% 8/15/12	517		543
Equity One, Inc.:
6% 9/15/17	958		984
6.25% 12/15/14	520		558
6.25% 1/15/17	545		570
Equity Residential 5.125% 3/15/16	3,150		3,402
Federal Realty Investment Trust:
5.4% 12/1/13	557		601
5.9% 4/1/20	42		46
6% 7/15/12	3,796		4,020
6.2% 1/15/17	685		763
HRPT Properties Trust:
5.75% 11/1/15	982		1,042
6.25% 6/15/17	1,361		1,424
6.65% 1/15/18	792		844
UDR, Inc. 5.5% 4/1/14	4,753		5,033
Washington (REIT):
5.25% 1/15/14	248		262
5.95% 6/15/11	4,736		4,791
			39,826
Real Estate Management & Development - 1.5%
AMB Property LP 5.9% 8/15/13	2,849		3,025
Arden Realty LP 5.2% 9/1/11	2,074		2,120
BioMed Realty LP 6.125% 4/15/20	1,521		1,590
Brandywine Operating Partnership LP:
5.7% 5/1/17	2,338		2,437
5.75% 4/1/12	2,711		2,793
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Colonial Properties Trust:
4.8% 4/1/11	$ 10		$ 10
6.875% 8/15/12	717		751
Duke Realty LP:
5.4% 8/15/14	2,777		2,964
5.625% 8/15/11	4,074		4,139
6.25% 5/15/13	6,766		7,329
6.75% 3/15/20	291		325
8.25% 8/15/19	57		69
ERP Operating LP:
4.75% 7/15/20	2,996		3,046
5.375% 8/1/16	1,323		1,454
5.5% 10/1/12	2,159		2,300
5.75% 6/15/17	4,704		5,178
Liberty Property LP:
4.75% 10/1/20	3,111		3,077
5.125% 3/2/15	1,250		1,322
5.5% 12/15/16	1,941		2,103
6.625% 10/1/17	2,744		3,149
Mack-Cali Realty LP 7.75% 8/15/19	539		648
Post Apartment Homes LP 6.3% 6/1/13	4,169		4,464
Regency Centers LP:
4.95% 4/15/14	675		705
5.25% 8/1/15	2,356		2,517
5.875% 6/15/17	1,166		1,265
Simon Property Group LP:
4.2% 2/1/15	1,570		1,654
5.3% 5/30/13	50		54
Tanger Properties LP:
6.125% 6/1/20	562		608
6.15% 11/15/15	801		864
			61,960
Thrifts & Mortgage Finance - 0.6%
Bank of America Corp.:
4.5% 4/1/15	6,700		7,001
5.65% 5/1/18	7,590		8,020
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Thrifts & Mortgage Finance - continued
First Niagara Financial Group, Inc. 6.75% 3/19/20	$ 4,283		$ 4,655
U.S. Central Federal Credit Union 1.9% 10/19/12	6,480		6,611
			26,287
TOTAL FINANCIALS			739,801
HEALTH CARE - 1.3%
Biotechnology - 0.1%
Amgen, Inc. 5.85% 6/1/17	3,264		3,734
Celgene Corp. 2.45% 10/15/15	472		458
			4,192
Health Care Equipment & Supplies - 0.1%
Medtronic, Inc. 4.45% 3/15/20	4,540		4,704
Health Care Providers & Services - 0.7%
Coventry Health Care, Inc.:
5.95% 3/15/17	1,930		2,004
6.3% 8/15/14	3,995		4,268
Express Scripts, Inc.:
5.25% 6/15/12	3,081		3,231
6.25% 6/15/14	1,824		2,036
Medco Health Solutions, Inc. 2.75% 9/15/15	8,204		8,138
UnitedHealth Group, Inc. 3.875% 10/15/20	5,296		5,092
WellPoint, Inc. 4.35% 8/15/20	5,502		5,489
			30,258
Pharmaceuticals - 0.4%
Merck & Co., Inc. 5% 6/30/19	2,152		2,356
Roche Holdings, Inc. 5% 3/1/14 (d)	6,563		7,182
Teva Pharmaceutical Finance II BV/Teva Pharmaceutical Finance III LLC 3% 6/15/15	6,900		6,988
Watson Pharmaceuticals, Inc. 5% 8/15/14	554		598
			17,124
TOTAL HEALTH CARE			56,278
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INDUSTRIALS - 0.4%
Aerospace & Defense - 0.1%
BAE Systems Holdings, Inc.:
4.95% 6/1/14 (d)	$ 440		$ 469
6.4% 12/15/11 (d)	1,021		1,066
			1,535
Airlines - 0.2%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	90		90
Continental Airlines, Inc.:
6.648% 3/15/19	3,650		3,807
6.795% 2/2/20	189		190
6.82% 5/1/18	244		258
6.9% 7/2/19	992		1,057
Delta Air Lines, Inc. pass-thru trust certificates 6.821% 8/10/22	360		381
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	2,139		2,094
8.36% 7/20/20	1,605		1,632
			9,509
Industrial Conglomerates - 0.1%
Covidien International Finance SA:
5.45% 10/15/12	738		790
6% 10/15/17	3,234		3,670
			4,460
TOTAL INDUSTRIALS			15,504
INFORMATION TECHNOLOGY - 0.8%
Electronic Equipment & Components - 0.3%
Tyco Electronics Group SA:
5.95% 1/15/14	3,938		4,327
6% 10/1/12	5,018		5,371
6.55% 10/1/17	2,606		3,003
			12,701
Office Electronics - 0.3%
Xerox Corp.:
4.25% 2/15/15	11,883		12,508
5.5% 5/15/12	2,072		2,177
			14,685
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INFORMATION TECHNOLOGY - continued
Software - 0.2%
Oracle Corp. 3.875% 7/15/20 (d)	$ 6,900		$ 6,796
TOTAL INFORMATION TECHNOLOGY			34,182
MATERIALS - 0.9%
Chemicals - 0.3%
Dow Chemical Co.:
4.85% 8/15/12	9,864		10,386
7.6% 5/15/14	669		777
			11,163
Construction Materials - 0.0%
CRH America, Inc. 6% 9/30/16	2,372		2,556
Metals & Mining - 0.6%
Anglo American Capital PLC:
2.15% 9/27/13 (d)	7,200		7,267
9.375% 4/8/14 (d)	3,434		4,137
9.375% 4/8/19 (d)	3,822		5,115
ArcelorMittal SA 3.75% 3/1/16	1,138		1,133
BHP Billiton Financial (USA) Ltd. 5.125% 3/29/12	2,182		2,285
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (d)	2,211		2,379
Vale Overseas Ltd. 6.25% 1/23/17	3,005		3,387
			25,703
TOTAL MATERIALS			39,422
TELECOMMUNICATION SERVICES - 2.0%
Diversified Telecommunication Services - 1.4%
AT&T Broadband Corp. 8.375% 3/15/13	2,855		3,238
AT&T, Inc.:
2.5% 8/15/15	515		510
5.5% 2/1/18	4,660		5,117
6.7% 11/15/13	1,296		1,467
CenturyLink, Inc. 6.15% 9/15/19	3,860		4,024
Deutsche Telekom International Financial BV 5.25% 7/22/13	2,703		2,931
France Telecom SA 2.125% 9/16/15	1,491		1,456
SBC Communications, Inc.:
5.1% 9/15/14	6,685		7,356
5.875% 2/1/12	3,018		3,163
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
SBC Communications, Inc.: - continued
5.875% 8/15/12	$ 1,080		$ 1,157
Telecom Italia Capital SA:
4.95% 9/30/14	4,152		4,266
5.25% 10/1/15	2,889		2,938
7.175% 6/18/19	401		434
Telefonica Emisiones SAU:
3.729% 4/27/15	8,664		8,729
5.134% 4/27/20	401		399
6.421% 6/20/16	1,283		1,424
Verizon New England, Inc. 6.5% 9/15/11	1,255		1,294
Verizon New York, Inc. 6.875% 4/1/12	6,531		6,927
			56,830
Wireless Telecommunication Services - 0.6%
America Movil SAB de CV 3.625% 3/30/15	5,062		5,205
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	9,282		9,984
5.875% 10/1/19	287		311
Sprint Nextel Corp. 6% 12/1/16	1,159		1,156
Vodafone Group PLC:
4.15% 6/10/14	2,355		2,494
5% 12/16/13	2,972		3,230
5.5% 6/15/11	3,824		3,879
			26,259
TOTAL TELECOMMUNICATION SERVICES			83,089
UTILITIES - 2.7%
Electric Utilities - 1.5%
Ameren Illinois Co. 6.125% 11/15/17	455		506
AmerenUE 6.4% 6/15/17	3,867		4,382
Cleveland Electric Illuminating Co. 5.65% 12/15/13	5,324		5,842
Commonwealth Edison Co. 5.4% 12/15/11	4,828		5,007
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (d)	203		210
Edison International 3.75% 9/15/17	2,938		2,916
EDP Finance BV:
4.9% 10/1/19 (d)	1,200		1,092
5.375% 11/2/12 (d)	2,201		2,276
Enel Finance International SA 5.7% 1/15/13 (d)	575		611
Exelon Corp. 4.9% 6/15/15	3,038		3,226
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
FirstEnergy Corp. 7.375% 11/15/31	$ 463		$ 505
FirstEnergy Solutions Corp.:
4.8% 2/15/15	1,018		1,071
6.05% 8/15/21	4,294		4,491
LG&E and KU Energy LLC:
2.125% 11/15/15 (d)	3,294		3,157
3.75% 11/15/20 (d)	19		18
Mid-American Energy Co. 5.65% 7/15/12	213		226
Nevada Power Co.:
6.5% 5/15/18	6,784		7,782
6.5% 8/1/18	2,033		2,340
Pennsylvania Electric Co. 6.05% 9/1/17	844		920
Pepco Holdings, Inc. 2.7% 10/1/15	3,115		3,064
Progress Energy, Inc.:
4.4% 1/15/21	4,958		4,931
7.1% 3/1/11	4,381		4,381
Sierra Pacific Power Co. 5.45% 9/1/13	2,018		2,198
Tampa Electric Co. 5.4% 5/15/21 (d)	1,635		1,763
			62,915
Independent Power Producers & Energy Traders - 0.5%
Duke Capital LLC 5.668% 8/15/14	2,661		2,924
Exelon Generation Co. LLC:
4% 10/1/20	669		623
5.2% 10/1/19	6,500		6,696
5.35% 1/15/14	1,687		1,823
PPL Energy Supply LLC 6.3% 7/15/13	8,190		9,002
			21,068
Multi-Utilities - 0.7%
Consolidated Edison Co. of New York, Inc. 4.45% 6/15/20	4,620		4,755
Dominion Resources, Inc.:
6.3% 9/30/66 (i)	4,542		4,440
7.5% 6/30/66 (i)	4,221		4,390
DTE Energy Co. 7.05% 6/1/11	1,991		2,021
MidAmerican Energy Holdings, Co. 5.875% 10/1/12	3,675		3,940
National Grid PLC 6.3% 8/1/16	1,843		2,102
NiSource Finance Corp.:
5.25% 9/15/17	2,656		2,812
5.4% 7/15/14	1,743		1,895
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Multi-Utilities - continued
NiSource Finance Corp.: - continued
5.45% 9/15/20	$ 313		$ 326
6.4% 3/15/18	1,717		1,928
Wisconsin Energy Corp. 6.25% 5/15/67 (i)	3,383		3,379
			31,988
TOTAL UTILITIES			115,971
TOTAL NONCONVERTIBLE BONDS (Cost $1,354,815)		1,457,564
U.S. Government and Government Agency Obligations - 40.9%
U.S. Government Agency Obligations - 5.4%
Fannie Mae:
1.25% 8/20/13	6,260		6,290
1.25% 2/27/14	13,707		13,683
2.5% 5/15/14	57,116		59,012
2.75% 3/13/14	18,330		19,093
4.625% 10/15/13	1,967		2,144
Freddie Mac:
0.625% 12/28/12	24,190		24,159
1.375% 2/25/14	19,070		19,097
1.75% 9/10/15	62,973		61,813
2.5% 1/7/14	15,592		16,087
2.5% 4/23/14	5,680		5,869
4.5% 1/15/14	2,951		3,218
U.S. Department of Housing and Urban Development Government guaranteed participation certificates Series 1996-A, 7.66% 8/1/15	169		171
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			230,636
U.S. Treasury Obligations - 34.4%
U.S. Treasury Notes:
1% 1/15/14	698		696
1.25% 2/15/14	2,108		2,113
1.75% 7/31/15	178,208		177,358
1.875% 9/30/17	1,890		1,794
2.125% 5/31/15	102,259		103,721
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
2.375% 9/30/14 (f)	$ 82,860		$ 85,501
2.375% 10/31/14	14,783		15,240
2.5% 3/31/15	17,997		18,575
2.5% 4/30/15	112,872		116,338
2.625% 7/31/14	110,000		114,615
2.625% 1/31/18	190,686		188,526
2.625% 8/15/20	6,651		6,250
3% 9/30/16	83,994		86,809
3.125% 10/31/16	15,084		15,669
3.125% 1/31/17 (f)	44,686		46,264
3.5% 5/15/20	253,398		257,476
3.625% 2/15/20	228,401		235,146
TOTAL U.S. TREASURY OBLIGATIONS			1,472,091
Other Government Related - 1.1%
Bank of America Corp.:
2.1% 4/30/12 (FDIC Guaranteed) (e)	3,370		3,439
3.125% 6/15/12 (FDIC Guaranteed) (e)	4,498		4,648
Citigroup Funding, Inc.:
1.875% 11/15/12 (FDIC Guaranteed) (e)	10,700		10,914
2.125% 7/12/12 (FDIC Guaranteed) (e)	2,250		2,299
2.25% 12/10/12 (FDIC Guaranteed) (e)	10,850		11,134
General Electric Capital Corp. 2% 9/28/12 (FDIC Guaranteed) (e)	12,980		13,268
Goldman Sachs Group, Inc. 3.25% 6/15/12 (FDIC Guaranteed) (e)	2,149		2,224
TOTAL OTHER GOVERNMENT RELATED			47,926
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $1,736,910)		1,750,653
U.S. Government Agency - Mortgage Securities - 5.7%
Fannie Mae - 4.5%
2.018% 10/1/33 (i)	255		263
2.142% 3/1/35 (i)	167		173
2.165% 10/1/33 (i)	99		102
2.202% 2/1/33 (i)	218		225
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
2.213% 7/1/35 (i)	$ 91		$ 94
2.243% 12/1/34 (i)	230		238
2.316% 3/1/35 (i)	38		39
2.474% 10/1/35 (i)	352		365
2.532% 7/1/34 (i)	118		122
2.553% 10/1/33 (i)	283		298
2.573% 3/1/35 (i)	117		122
2.59% 6/1/36 (i)	185		193
2.622% 12/1/33 (i)	6,960		7,312
2.622% 7/1/34 (i)	499		524
2.634% 7/1/35 (i)	756		794
2.682% 2/1/34 (i)	67		70
2.686% 11/1/36 (i)	1,334		1,401
2.733% 7/1/35 (i)	451		472
2.747% 5/1/35 (i)	506		535
2.917% 4/1/35 (i)	4,244		4,465
2.961% 9/1/36 (i)	2,041		2,161
3.193% 1/1/40 (i)	3,909		4,034
3.335% 1/1/40 (i)	5,824		6,043
3.5% 1/1/26	94,730		95,081
3.536% 7/1/37 (i)	391		410
3.547% 12/1/39 (i)	1,149		1,197
3.606% 3/1/40 (i)	4,442		4,634
3.768% 10/1/39 (i)	2,739		2,837
4% 7/1/18	3,532		3,702
4.5% 8/1/18 to 7/1/20	8,356		8,871
5.5% 7/1/16 to 6/1/36	24,487		26,531
6.5% 4/1/13 to 3/1/35	14,837		16,600
7% 7/1/25 to 2/1/32	33		37
7.5% 8/1/13 to 8/1/29	410		462
12.5% 4/1/15	4		4
TOTAL FANNIE MAE			190,411
Freddie Mac - 1.1%
2.245% 4/1/35 (i)	1,758		1,826
2.35% 3/1/36 (i)	335		347
2.585% 1/1/35 (i)	155		163
2.92% 11/1/35 (i)	795		842
3.147% 3/1/33 (i)	36		37
3.352% 10/1/35 (i)	257		272
3.524% 12/1/39 (i)	3,133		3,248
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
3.552% 4/1/40 (i)	$ 2,984		$ 3,095
3.588% 4/1/40 (i)	2,637		2,739
3.616% 2/1/40 (i)	6,594		6,862
4.5% 8/1/18	11,087		11,776
5% 3/1/19	13,336		14,343
7% 3/1/11 to 7/1/13	11		12
7.5% 5/1/11 to 1/1/33	180		199
TOTAL FREDDIE MAC			45,761
Ginnie Mae - 0.1%
7% 1/15/28 to 11/15/32	4,394		5,013
7.5% 3/15/28	5		5
8% 7/15/17 to 5/15/22	1,036		1,142
TOTAL GINNIE MAE			6,160
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $237,748)		242,332
Asset-Backed Securities - 7.4%
Accredited Mortgage Loan Trust Series 2005-1 Class M1, 0.7315% 4/25/35 (i)	772		577
ACE Securities Corp. Home Equity Loan Trust:
Series 2004-HE1:
Class M1, 1.0115% 3/25/34 (i)	32		32
Class M2, 1.9115% 3/25/34 (i)	356		290
Series 2005-HE2 Class M2, 0.7115% 4/25/35 (i)	77		72
Series 2006-OP1:
Class M4, 0.6315% 4/25/36 (i)	77		1
Class M5, 0.6515% 4/25/36 (i)	5		0*
Advanta Business Card Master Trust:
Series 2006-C1 Class C1, 0.742% 10/20/14 (i)	29		5
Series 2007-D1 Class D, 1.662% 1/22/13 (d)(i)	4,593		46
Ally Auto Receivables Trust:
Series 2009 B Class A3, 1.98% 10/15/13 (d)	7,320		7,407
Series 2009-A:
Class A3, 2.33% 6/17/13 (d)	1,840		1,864
Class A4, 3% 10/15/15 (d)	1,820		1,880
Series 2010-1 Class A4, 2.3% 12/15/14	6,270		6,379
Series 2010-4 Class A4, 1.35% 12/15/15	3,930		3,838
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Ally Auto Receivables Trust: - continued
Series 2010-5 Class A4, 1.75% 3/15/16	$ 1,635		$ 1,613
Series 2011-1 Class A4, 2.14% 3/15/16	7,350		7,387
Ally Master Owner Trust:
Series 2010-3 Class A, 2.88% 4/15/15 (d)	2,160		2,215
Series 2011-1 Class A2, 2.15% 1/15/16	15,400		15,377
AmeriCredit Automobile Receivables Trust Series 2010-4 Class A3, 1.27% 4/8/15	5,980		5,956
AmeriCredit Automobile Receivables Trust Series 2011-1 Class A3, 1.39% 9/8/15	3,080		3,079
AmeriCredit Prime Automobile Receivables Trust Series 2007-1 Class D, 5.62% 9/8/14	714		733
Ameriquest Mortgage Securities, Inc. pass-thru certificates:
Series 2003-10 Class M1, 0.9615% 12/25/33 (i)	43		37
Series 2004-R2 Class M3, 0.8115% 4/25/34 (i)	60		15
Series 2005-R2 Class M1, 0.7115% 4/25/35 (i)	930		799
Argent Securities, Inc. pass-thru certificates:
Series 2003-W7 Class A2, 1.04% 3/25/34 (i)	22		17
Series 2004-W11 Class M2, 0.9615% 11/25/34 (i)	253		188
Series 2004-W7 Class M1, 0.8115% 5/25/34 (i)	968		669
Series 2006-W4 Class A2C, 0.4215% 5/25/36 (i)	628		225
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2004-HE2 Class M1, 1.0865% 4/25/34 (i)	1,202		977
Series 2006-HE2 Class M1, 0.6315% 3/25/36 (i)	193		5
Axon Financial Funding Ltd. 2.025% 4/4/17 (b)(d)(i)	4,149		0*
Bank of America Auto Trust:
Series 2009-1A:
Class A3, 2.67% 7/15/13 (d)	4,692		4,739
Class A4, 3.52% 6/15/16 (d)	3,600		3,728
Series 2009-2A Class A3, 2.13% 9/15/13 (d)	2,404		2,424
Series 2009-3A Class A3, 1.67% 12/15/13 (d)	6,882		6,931
Series 2010-2 Class A3, 1.31% 7/15/14	7,730		7,789
Bear Stearns Asset Backed Securities I Trust Series 2005-HE2 Class M2, 1.0115% 2/25/35 (i)	1,896		1,417
BMW Vehicle Lease Trust Series 2010-1 Class A3, 0.82% 4/15/13	6,180		6,183
Brazos Higher Education Authority, Inc. Student Loan Rev. Series 2006 A2R, 1.0528% 12/1/41 (i)	499		498
Brazos Higher Education Authority, Inc. Series 2006-2 Class A9, 0.3128% 12/26/24 (i)	732		662
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (i)	53		52
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Capital Auto Receivables Asset Trust:
Series 2006-2:
Class B, 5.07% 12/15/11	$ 116		$ 117
Class C, 5.31% 6/15/12	1,205		1,221
Series 2007-1 Class C, 5.38% 11/15/12	429		445
Capital Auto Receivables Trust Series 2007-2 Class A4A, 5.39% 2/18/14	1,420		1,443
Capital One Auto Finance Trust Series 2007-C Class A4, 5.23% 7/15/14 (FGIC Insured)	8,706		8,968
Capital One Multi-Asset Execution Trust Series 2008-A3 Class A3, 5.05% 2/15/16	2,600		2,806
Capital Trust Ltd. Series 2004-1:
Class A2, 0.712% 7/20/39 (d)(i)	327		245
Class B, 1.012% 7/20/39 (d)(i)	189		87
Class C, 1.362% 7/20/39 (d)(i)	243		36
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	589		598
Carrington Mortgage Loan Trust:
Series 2006-FRE1 Class M1, 0.5615% 7/25/36 (i)	514		33
Series 2006-NC2 Class M7, 1.1115% 6/25/36 (i)	304		1
Series 2006-NC4 Class M1, 0.5615% 10/25/36 (i)	165		12
Series 2006-RFC1 Class M9, 2.1315% 5/25/36 (i)	133		8
Series 2007-RFC1 Class A3, 0.4015% 12/25/36 (i)	812		305
Chase Issuance Trust Series 2007-A17 Class A, 5.12% 10/15/14	5,492		5,875
Chrysler Financial Auto Securitization Trust Series 2010-A Class A3, 0.91% 8/8/13	4,830		4,832
Chrysler Financial Lease Trust Series 2010-A Class A2, 1.78% 6/15/11 (d)	1,081		1,081
Citibank Credit Card Issuance Trust:
Series 2008-A5 Class A5, 4.85% 4/22/15	5,489		5,907
Series 2009-A5 Class A5, 2.25% 12/23/14	13,500		13,792
CitiFinancial Auto Issuance Trust Series 2009-1 Class A3, 2.59% 10/15/13 (d)	6,500		6,600
Citigroup Mortgage Loan Trust Series 2007-AMC4 Class M1, 0.5315% 5/25/37 (i)	345		54
Countrywide Asset-Backed Certificates Trust:
Series 2007-11 Class 2A1, 0.3215% 6/25/47 (i)	51		50
Series 2007-4 Class A1A, 0.36% 9/25/37 (i)	366		350
Countrywide Home Loan Trust Series 2006-13 Class N, 7% 8/25/37 (d)	149		0
Countrywide Home Loans, Inc.:
Series 2004-3 Class M4, 1.2315% 4/25/34 (i)	72		30
Series 2004-4 Class M2, 1.0565% 6/25/34 (i)	265		152
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Countrywide Home Loans, Inc.: - continued
Series 2005-3 Class MV1, 0.6815% 8/25/35 (i)	$ 383		$ 366
Series 2005-AB1 Class A2, 0.4715% 8/25/35 (i)	45		44
CPS Auto Receivables Trust Series 2006-D Class A4, 5.115% 8/15/13 (FSA Insured) (d)	266		270
Fannie Mae subordinate REMIC pass-thru certificates Series 2004-T5 Class AB3, 0.6842% 5/28/35 (i)	18		13
Fieldstone Mortgage Investment Corp.:
Series 2004-3 Class M5, 2.4365% 8/25/34 (i)	208		119
Series 2006-3 Class 2A3, 0.4215% 11/25/36 (i)	3,188		1,180
Ford Credit Auto Lease Trust Series 2010-B Class A3, 0.8% 7/15/13 (d)	6,360		6,355
Ford Credit Auto Owner Trust:
Series 2006-B:
Class C, 5.68% 6/15/12	1,940		1,945
Class D, 7.26% 2/15/13 (d)	2,696		2,705
Series 2006-C:
Class B, 5.3% 6/15/12	450		457
Class D, 6.89% 5/15/13 (d)	1,855		1,891
Series 2007-A Class D, 7.05% 12/15/13 (d)	1,014		1,063
Series 2009-B Class A3, 2.79% 8/15/13	4,075		4,128
Series 2009-C Class A4, 4.43% 11/15/14	3,490		3,703
Series 2009-D Class A4, 2.98% 8/15/14	4,950		5,117
Series 2009-E Class A3, 1.51% 1/15/14	4,800		4,839
Series 2010-B:
Class A3, 0.98% 10/15/14	4,170		4,181
Class A4, 1.58% 9/15/15	9,480		9,473
Ford Credit Floorplan Master Owner Trust:
Series 2006-4:
Class A, 0.5158% 6/15/13 (i)	4,500		4,491
Class B, 0.8158% 6/15/13 (i)	348		347
Series 2010-1 Class A, 1.9158% 12/15/14 (d)(i)	3,810		3,885
Series 2010-5 Class A1, 1.5% 9/15/15	4,390		4,353
Franklin Auto Trust:
Series 2006-1 Class B, 5.14% 7/21/14	45		45
Series 2007-1:
Class A4, 5.03% 2/16/15	189		189
Class C, 5.43% 2/16/15	453		451
Fremont Home Loan Trust:
Series 2005-A:
Class M3, 0.7515% 1/25/35 (i)	427		211
Class M4, 0.9415% 1/25/35 (i)	164		52
Series 2006-D Class M1, 0.4915% 11/25/36 (i)	219		7
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
GCO Education Loan Funding Master Trust II Series 2007-1A Class C1L, 0.6915% 2/25/47 (d)(i)	$ 1,457		$ 860
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (d)	1,183		942
GE Business Loan Trust:
Series 2003-1 Class A, 0.6958% 4/15/31 (d)(i)	111		104
Series 2006-2A:
Class A, 0.4458% 11/15/34 (d)(i)	1,549		1,286
Class B, 0.5458% 11/15/34 (d)(i)	561		364
Class C, 0.6458% 11/15/34 (d)(i)	930		465
Class D, 1.0158% 11/15/34 (d)(i)	354		85
GE Capital Credit Card Master Note Trust Series 2009-3 Class A, 2.54% 9/15/14	10,500		10,607
Goal Capital Funding Trust Series 2007-1 Class C1, 0.7028% 6/25/42 (i)	545		454
GS Auto Loan Trust Series 2007-1:
Class B, 5.53% 12/15/14	29		29
Class C, 5.74% 12/15/14	25		26
GSAMP Trust:
Series 2004-AR1:
Class B4, 5% 6/25/34 (d)(i)	261		53
Class M1, 0.9115% 6/25/34 (i)	1,379		965
Series 2007-HE1 Class M1, 0.5115% 3/25/47 (i)	547		31
Guggenheim Structured Real Estate Funding Ltd.:
Series 2005-1 Class C, 1.3415% 5/25/30 (d)(i)	36		18
Series 2006-3:
Class B, 0.6615% 9/25/46 (d)(i)	468		234
Class C, 0.8115% 9/25/46 (d)(i)	688		165
Home Equity Asset Trust:
Series 2003-2 Class M1, 1.5815% 8/25/33 (i)	321		233
Series 2003-3 Class M1, 1.5515% 8/25/33 (i)	352		292
Series 2003-5 Class A2, 0.9615% 12/25/33 (i)	15		10
Series 2005-5 Class 2A2, 0.5115% 11/25/35 (i)	41		41
Series 2006-1 Class 2A3, 0.4865% 4/25/36 (i)	668		650
Series 2006-8 Class 2A1, 0.3115% 3/25/37 (i)	4		4
Honda Auto Receivables Owner Trust:
Series 2009-3 Class A3, 2.31% 5/15/13	2,449		2,474
Series 2010-1 Class A4, 1.98% 5/23/16	1,770		1,799
Series 2010-2 Class A4, 1.92% 6/18/13	9,820		9,942
Series 2011-1 Class A4, 1.8% 4/17/17	2,270		2,269
HSBC Home Equity Loan Trust Series 2006-2 Class M2, 0.552% 3/20/36 (i)	330		275
HSI Asset Securitization Corp. Trust Series 2007-HE1 Class 2A3, 0.4515% 1/25/37 (i)	766		322
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Hyundai Auto Receivables Trust Series 2009-A Class A3, 2.03% 8/15/13	$ 2,320		$ 2,343
John Deere Owner Trust Series 2009-B Class A-3, 1.57% 10/15/13	6,080		6,113
JPMorgan Mortgage Acquisition Trust:
Series 2006-NC2 Class M2, 0.5615% 7/25/36 (i)	151		6
Series 2007-CH1:
Class AV4, 0.3915% 11/25/36 (i)	764		656
Class MV1, 0.4915% 11/25/36 (i)	621		411
Series 2007-CH3 Class M1, 0.5615% 3/25/37 (i)	423		22
Keycorp Student Loan Trust:
Series 1999-A Class A2, 0.6328% 12/27/29 (i)	338		290
Series 2006-A Class 2C, 1.4528% 3/27/42 (i)	2,280		420
Long Beach Auto Receivables Trust Series 2007-A Class A4, 5.025% 1/15/14 (FSA Insured)	1,200		1,214
Long Beach Mortgage Loan Trust Series 2004-2 Class M2, 1.3415% 6/25/34 (i)	42		27
Marriott Vacation Club Owner Trust Series 2006-2A:
Class B, 5.442% 10/20/28 (d)	14		13
Class C, 5.691% 10/20/28 (d)	7		6
Class D, 6.01% 10/20/28 (d)	76		62
MASTR Asset Backed Securities Trust:
Series 2006-AM3 Class M1, 0.5215% 10/25/36 (i)	272		15
Series 2007-HE1 Class M1, 0.5615% 5/25/37 (i)	353		18
Mercedes-Benz Auto Lease Trust Series 2011-1A Class A3 1.18% 11/15/13 (d)	8,530		8,528
Meritage Mortgage Loan Trust Series 2004-1 Class M1, 1.0115% 7/25/34 (i)	135		89
Merrill Auto Trust Securitization Series 2007-1 Class B, 5.79% 12/15/13	80		81
Merrill Lynch Mortgage Investors Trust:
Series 2003-OPT1 Class M1, 0.9115% 7/25/34 (i)	432		338
Series 2006-FM1 Class A2B, 0.3715% 4/25/37 (i)	1,030		941
Series 2006-MLN1 Class A2A, 0.3315% 7/25/37 (i)	10		10
Series 2006-OPT1 Class A1A, 0.5215% 6/25/35 (i)	1,919		1,575
Morgan Stanley ABS Capital I Trust:
Series 2004-HE6 Class A2, 0.6015% 8/25/34 (i)	26		21
Series 2004-HE7 Class B3, 3.7615% 8/25/34 (i)	208		40
Series 2005-NC1 Class M1, 0.7015% 1/25/35 (i)	180		127
Series 2005-NC2 Class B1, 1.4315% 3/25/35 (i)	188		28
Series 2007-HE2 Class M1, 0.5115% 1/25/37 (i)	194		5
National Collegiate Student Loan Trust:
Series 2004-2 Class AIO, 9.75% 10/25/14 (k)	4,649		639
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
National Collegiate Student Loan Trust: - continued
Series 2006-1 Class AIO, 5.5% 4/25/11 (k)	$ 5,694		$ 44
Series 2006-2 Class AIO, 6% 8/25/11 (k)	3,320		68
Series 2006-3 Class AIO, 7.1% 1/25/12 (k)	17,124		771
Series 2006-4:
Class A1, 0.2915% 3/25/25 (i)	57		57
Class AIO, 6.35% 2/27/12 (k)	13,011		692
Class D, 1.3615% 5/25/32 (i)	1,745		41
Series 2007-1 Class AIO, 7.27% 4/25/12 (k)	15,602		1,170
Series 2007-2 Class AIO, 6.7% 7/25/12 (k)	11,606		969
New Century Home Equity Loan Trust:
Series 2005-4 Class M2, 0.7715% 9/25/35 (i)	642		425
Series 2005-D Class M2, 0.7315% 2/25/36 (i)	525		48
Nissan Auto Lease Trust:
Series 2009-A Class A3, 2.92% 12/15/11	1,363		1,367
Series 2009-B Class A3, 2.07% 1/15/15	4,727		4,751
Ocala Funding LLC:
Series 2005-1A Class A, 1.7535% 3/20/49 (b)(d)	0		0
Series 2006-1A Class A, 1.662% 3/20/49 (b)(d)(i)	530		0
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (i)	12		12
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (i)	26		25
Park Place Securities, Inc.:
Series 2004-WCW1:
Class M3, 1.5115% 9/25/34 (i)	240		153
Class M4, 1.7115% 9/25/34 (i)	308		143
Series 2005-WCH1:
Class M2, 0.7815% 1/25/36 (i)	1,658		1,537
Class M3, 0.8215% 1/25/36 (i)	215		152
Class M4, 1.0915% 1/25/36 (i)	665		275
Series 2005-WHQ2:
Class M7, 1.5115% 5/25/35 (i)	788		20
Class M9, 2.1415% 5/25/35 (i)	11		0*
Providian Master Note Trust Series 2006-C1A Class C1, 0.8158% 3/15/15 (d)(i)	1,893		1,892
Residential Asset Mortgage Products, Inc. Series 2006-EFC2 Class M1, 0.4915% 12/25/36 (i)	358		11
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0615% 4/25/33 (i)	2		2
Saxon Asset Securities Trust Series 2004-1 Class M1, 1.0565% 3/25/35 (i)	687		569
Securitized Asset Backed Receivables LLC Trust:
Series 2005-FR4 Class B3, 1.9815% 1/25/36 (i)	54		2
Series 2006-FR4 Class A2A, 0.3415% 8/25/36 (i)	35		14
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Securitized Asset Backed Receivables LLC Trust: - continued
Series 2007-NC1 Class A2A, 0.3115% 12/25/36 (i)	$ 11		$ 11
Sierra Receivables Funding Co. Series 2007-1A Class A2, 0.4106% 3/20/19 (FGIC Insured) (d)(i)	377		355
SLM Private Credit Student Loan Trust Series 2004-A Class C, 1.2516% 6/15/33 (i)	572		51
Specialty Underwriting & Residential Finance Trust Series 2006-AB2 Class N1, 5.75% 6/25/37 (d)	484		0
Structured Asset Investment Loan Trust Series 2004-8 Class M5, 1.4115% 9/25/34 (i)	51		21
SVO VOI Mortgage Corp. Series 2006-AA Class A, 5.28% 2/20/24 (d)	620		639
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.1215% 9/25/34 (i)	168		131
Toyota Auto Receivables Owner Trust Series 2010-B Class M3, 1.04% 2/18/14	2,740		2,752
Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 0.8628% 4/6/42 (d)(i)	1,770		53
Triad Auto Receivables Owner Trust Series 2006-C Class A4, 5.31% 5/13/13 (AMBAC Insured)	274		277
USAA Auto Owner Trust:
Series 2009-1 Class A4, 4.77% 9/15/14	3,080		3,241
Series 2009-2 Class A3, 1.54% 2/18/14	5,398		5,434
Volkswagen Auto Lease Trust:
Series 2009-A Class A3, 3.41% 4/16/12	2,956		2,979
Series 2010-A Class A3, 0.85% 11/20/13	9,700		9,690
WaMu Asset Holdings Corp. Series 2006-8 Class N1, 6.048% 10/25/46 (d)	400		0
WaMu Master Note Trust Series 2006-C2A Class C2, 0.7658% 8/15/15 (d)(i)	4,281		4,267
Wells Fargo Home Equity Trust Series 2004-3 Class A, 4.5% 11/27/34 (a)(d)	3		0
Whinstone Capital Management Ltd. Series 1A Class B3, 2.1031% 10/25/44 (d)(i)	806		363
TOTAL ASSET-BACKED SECURITIES (Cost $312,595)		317,545
Collateralized Mortgage Obligations - 2.5%
	Principal Amount (000s)		Value (000s)
Private Sponsor - 1.8%
Arkle Master Issuer PLC floater Series 2006-1A Class 4A1, 0.4035% 2/17/52 (d)(i)	$ 5,550		$ 5,533
Arran Residential Mortgages Funding No. 1 PLC floater Series 2006-1A Class DB, 0.7331% 4/12/56 (d)(i)	643		638
Banc of America Funding Corp. sequential payer Series 2010-R4 Class 2A1, 4.5% 3/26/37 (d)	2,867		2,921
Banc of America Mortgage Securities, Inc.:
Series 2003-L Class 2A1, 2.9055% 1/25/34 (i)	936		883
Series 2004-1 Class 2A2, 3.2375% 10/25/34 (i)	675		613
Series 2004-A Class 2A2, 2.9991% 2/25/34 (i)	202		180
Series 2004-B:
Class 1A1, 2.9237% 3/25/34 (i)	88		80
Class 2A2, 3.0527% 3/25/34 (i)	605		583
Series 2004-D Class 2A2, 2.9567% 5/25/34 (i)	1,366		1,254
Series 2004-G Class 2A7, 3.0214% 8/25/34 (i)	1,260		1,136
Series 2004-H Class 2A1, 3.1667% 9/25/34 (i)	1,130		1,023
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T24 Class X2, 0.4264% 10/12/41 (d)(i)(k)	2,721		31
Chase Mortgage Finance Trust Series 2007-A1 Class 1A5, 2.9853% 2/25/37 (i)	549		546
Citigroup Commercial Mortgage Trust Series 2008-C7 Class A2B, 6.0995% 12/10/49 (i)	1,207		1,276
Cobalt CMBS Commercial Mortgage Trust Series 2007-C2 Class B, 5.617% 4/15/47 (i)	1,348		607
COMM pass-thru certificates floater Series 2001-J2A Class A2F, 0.7648% 7/16/34 (d)(i)	900		899
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 2.9234% 11/25/34 (i)	1,177		1,102
Credit Suisse Mortgage Capital Certificates sequential payer Series 2010-16 Class A1, 3% 6/25/50 (d)	3,472		3,437
Fosse Master Issuer PLC floater Series 2006-1A:
Class B2, 0.4631% 10/18/54 (d)(i)	1,754		1,744
Class C2, 0.7731% 10/18/54 (d)(i)	587		582
Class M2, 0.5531% 10/18/54 (d)(i)	1,007		988
Gracechurch Mortgage Financing PLC floater Series 2006-1 Class D2, 0.7825% 11/20/56 (d)(i)	1,404		1,370
Granite Master Issuer PLC floater:
Series 2005-4 Class C2, 1.363% 12/20/54 (i)	151		98
Series 2006-1A Class C2, 1.463% 12/20/54 (d)(i)	3,085		1,985
Series 2006-2 Class C1, 0.733% 12/20/54 (i)	2,445		1,573
Series 2006-3 Class C2, 0.763% 12/20/54 (i)	506		326
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Granite Master Issuer PLC floater: - continued
Series 2006-4:
Class B1, 0.353% 12/20/54 (i)	$ 2,386		$ 1,968
Class C1, 0.643% 12/20/54 (i)	1,459		939
Class M1, 0.433% 12/20/54 (i)	629		475
Series 2007-1:
Class 1C1, 0.863% 12/20/54 (i)	1,115		718
Class 1M1, 0.563% 12/20/54 (i)	754		569
Class 2C1, 1.223% 12/20/54 (i)	506		326
Class 2M1, 0.763% 12/20/54 (i)	969		732
Series 2007-2 Class 2C1, 0.694% 12/17/54 (i)	1,341		863
Granite Mortgages PLC floater Series 2003-3 Class 1C, 2.7531% 1/20/44 (i)	194		145
Harborview Mortgage Loan Trust floater Series 2005-2 Class 2A1A, 0.482% 5/19/35 (i)	165		110
Holmes Master Issuer PLC floater Series 2007-1 Class 3A1, 0.3831% 7/15/40 (i)	11,194		11,178
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18:
Class A1, 5.32% 6/12/47 (i)	42		43
Class A3, 5.447% 6/12/47 (i)	2,289		2,369
JPMorgan Mortgage Trust:
Series 2004-A5 Class 2A1, 2.6869% 12/25/34 (i)	883		823
Series 2006-A2 Class 5A1, 2.9739% 11/25/33 (i)	1,092		1,050
MASTR Adjustable Rate Mortgages Trust Series 2007-3 Class 22A2, 0.4715% 5/25/47 (i)	456		314
MASTR Asset Backed Securities Trust Series 2006-NC3 Class M1, 0.4915% 10/25/36 (i)	295		1
Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 0.4315% 2/25/37 (i)	914		657
Merrill Lynch Floating Trust floater Series 2006-1:
Class B, 0.436% 6/15/22 (d)(i)	181		170
Class C, 0.456% 6/15/22 (d)(i)	785		696
Class D, 0.466% 6/15/22 (d)(i)	301		258
Class E, 0.476% 6/15/22 (d)(i)	483		407
Class F, 0.506% 6/15/22 (d)(i)	733		607
Class G, 0.576% 6/15/22 (d)(i)	259		210
Class H, 0.596% 6/15/22 (d)(i)	362		288
Class J, 0.636% 6/15/22 (d)(i)	422		317
Merrill Lynch-CFC Commercial Mortgage Trust Series 2006-3 Class ASB, 5.382% 7/12/46 (i)	5,168		5,450
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Option One Mortgage Loan Trust floater Series 2007-CP1 Class M1, 0.5615% 3/25/37 (i)	$ 1,507		$ 98
Permanent Master Issuer PLC floater Series 2007-1 Class 4A, 0.3831% 10/15/33 (i)	3,080		3,050
Provident Funding Mortgage Loan Trust Series 2005-2 Class 3A, 2.81% 10/25/35 (i)	2,436		2,132
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B:
Class B5, 2.614% 7/10/35 (d)(i)	1,017		827
Class B6, 3.114% 7/10/35 (d)(i)	280		215
Residential Asset Mortgage Products, Inc. sequential payer:
Series 2003-SL1 Class A31, 7.125% 4/25/31	715		752
Series 2004-SL3 Class A1, 7% 8/25/16	43		42
Residential Funding Securities Corp. floater Series 2003-RP2 Class A1, 0.7115% 6/25/33 (d)(i)	245		201
Salomon Brothers Mortgage Securities VII, Inc. Series 2006-C2 Class H, 6.308% 7/18/33 (d)	170		169
Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 0.8997% 7/20/34 (i)	18		13
TBW Mortgage-Backed pass-thru certificates floater Series 2006-4 Class A3, 0.46% 9/25/36 (i)	1,475		1,050
Wells Fargo Mortgage Backed Securities Trust:
Series 2004-H Class A1, 4.5271% 6/25/34 (i)	820		806
Series 2005-AR10 Class 2A2, 2.833% 6/25/35 (i)	712		690
Series 2005-AR12 Class 2A6, 2.8181% 7/25/35 (i)	370		351
Series 2005-AR2 Class 2A2, 2.8076% 3/25/35 (i)	2,070		1,937
Series 2005-AR3 Class 2A1, 2.8794% 3/25/35 (i)	995		909
TOTAL PRIVATE SPONSOR			76,333
U.S. Government Agency - 0.7%
Fannie Mae Series 2010-123 Class DL, 3.5% 11/25/25	4,266		4,426
Fannie Mae subordinate REMIC pass-thru certificates:
planned amortization class Series 2002-9 Class PC, 6% 3/25/17	299		323
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	992		1,063
Series 2004-86 Class KC, 4.5% 5/25/19	747		780
Series 2010-143 Class B, 3.5% 12/25/25	6,608		6,849
Freddie Mac planned amortization class Series 2104 Class PG, 6% 12/15/28	1,946		2,133
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class:
Series 2356 Class GD, 6% 9/15/16	$ 1,039		$ 1,120
Series 2363 Class PF, 6% 9/15/16	1,324		1,424
Series 2425 Class JH, 6% 3/15/17	1,178		1,275
Series 3777 Class AC, 3.5% 12/15/25	9,373		9,535
TOTAL U.S. GOVERNMENT AGENCY			28,928
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $88,434)		105,261
Commercial Mortgage Securities - 4.7%
Asset Securitization Corp. Series 1997-D5:
Class A2, 7.0685% 2/14/43 (i)	888		945
Class A3, 7.1185% 2/14/43 (i)	958		1,035
Class A6, 7.4385% 2/14/43 (i)	1,412		1,501
Class PS1, 1.4561% 2/14/43 (i)(k)	3,591		85
Banc of America Commercial Mortgage Trust:
sequential payer:
Series 2006-2 Class AAB, 5.7218% 5/10/45 (i)	1,409		1,516
Series 2006-5 Class A3, 5.39% 9/10/47	1,683		1,739
Series 2006-6 Class A3, 5.369% 10/10/45	2,414		2,504
Series 2007-2 Class A1, 5.421% 4/10/49	200		204
Series 2007-4 Class A3, 5.8093% 2/10/51 (i)	1,204		1,270
Series 2006-6 Class E, 5.619% 10/10/45 (d)	697		200
Series 2007-3 Class A3, 5.6579% 6/10/49 (i)	2,016		2,103
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2004-2:
Class A3, 4.05% 11/10/38	250		254
Class A4, 4.153% 11/10/38	1,531		1,579
Series 2006-1 Class A1, 5.219% 9/10/45 (i)	288		288
Series 2001-3 Class H, 6.562% 4/11/37 (d)	675		683
Series 2001-PB1:
Class J, 7.166% 5/11/35 (d)	302		298
Class K, 6.15% 5/11/35 (d)	561		534
Series 2007-1 Class B, 5.543% 1/15/49	727		584
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class C, 0.5758% 3/15/22 (d)(i)	$ 518		$ 508
Class D, 0.6258% 3/15/22 (d)(i)	525		488
Class E, 0.6658% 3/15/22 (d)(i)	434		395
Class F, 0.7358% 3/15/22 (d)(i)	277		247
Class G, 0.7958% 3/15/22 (d)(i)	179		156
Series 2006-BIX1:
Class C, 0.4458% 10/15/19 (d)(i)	775		748
Class D, 0.4758% 10/15/19 (d)(i)	947		885
Class E, 0.5058% 10/15/19 (d)(i)	878		799
Class F, 0.5758% 10/15/19 (d)(i)	1,724		1,517
Class G, 0.5958% 10/15/19 (d)(i)	609		512
Bayview Commercial Asset Trust:
floater:
Series 2003-2 Class M1, 1.1115% 12/25/33 (d)(i)	55		40
Series 2004-1:
Class A, 0.6215% 4/25/34 (d)(i)	686		607
Class B, 2.1615% 4/25/34 (d)(i)	77		43
Class M1, 0.8215% 4/25/34 (d)(i)	62		47
Class M2, 1.4615% 4/25/34 (d)(i)	58		40
Series 2004-2:
Class A, 0.6915% 8/25/34 (d)(i)	570		496
Class M1, 0.8415% 8/25/34 (d)(i)	131		97
Series 2004-3:
Class A1, 0.6315% 1/25/35 (d)(i)	1,306		1,123
Class A2, 0.6815% 1/25/35 (d)(i)	187		140
Class M1, 0.7615% 1/25/35 (d)(i)	225		162
Class M2, 1.2615% 1/25/35 (d)(i)	88		60
Series 2005-2A:
Class A1, 0.5715% 8/25/35 (d)(i)	960		782
Class M1, 0.6915% 8/25/35 (d)(i)	41		28
Class M2, 0.7415% 8/25/35 (d)(i)	68		42
Class M3, 0.7615% 8/25/35 (d)(i)	37		23
Class M4, 0.8715% 8/25/35 (d)(i)	55		31
Series 2005-3A:
Class A1, 0.5815% 11/25/35 (d)(i)	310		253
Class A2, 0.6615% 11/25/35 (d)(i)	360		285
Class M1, 0.7015% 11/25/35 (d)(i)	58		38
Class M2, 0.7515% 11/25/35 (d)(i)	74		46
Class M3, 0.7715% 11/25/35 (d)(i)	66		38
Class M4, 0.8615% 11/25/35 (d)(i)	82		44
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2005-4A:
Class A2, 0.6515% 1/25/36 (d)(i)	$ 714		$ 557
Class B1, 1.6615% 1/25/36 (d)(i)	98		37
Class M1, 0.7115% 1/25/36 (d)(i)	230		153
Class M2, 0.7315% 1/25/36 (d)(i)	110		69
Class M3, 0.7615% 1/25/36 (d)(i)	101		58
Class M4, 0.8715% 1/25/36 (d)(i)	89		46
Class M5, 0.9115% 1/25/36 (d)(i)	89		42
Class M6, 0.9615% 1/25/36 (d)(i)	94		39
Series 2006-1:
Class A2, 0.6215% 4/25/36 (d)(i)	110		88
Class M1, 0.6415% 4/25/36 (d)(i)	62		41
Class M2, 0.6615% 4/25/36 (d)(i)	66		40
Class M3, 0.6815% 4/25/36 (d)(i)	57		32
Class M4, 0.7815% 4/25/36 (d)(i)	32		17
Class M5, 0.8215% 4/25/36 (d)(i)	31		15
Class M6, 0.9015% 4/25/36 (d)(i)	62		28
Series 2006-2A:
Class A1, 0.4915% 7/25/36 (d)(i)	2,351		1,881
Class A2, 0.5415% 7/25/36 (d)(i)	98		75
Class B1, 1.1315% 7/25/36 (d)(i)	58		21
Class B3, 2.9615% 7/25/36 (d)(i)	88		23
Class M1, 0.5715% 7/25/36 (d)(i)	103		59
Class M2, 0.5915% 7/25/36 (d)(i)	115		61
Class M3, 0.6115% 7/25/36 (d)(i)	96		46
Class M4, 0.6815% 7/25/36 (d)(i)	65		28
Class M5, 0.7315% 7/25/36 (d)(i)	79		33
Class M6, 0.8015% 7/25/36 (d)(i)	118		43
Series 2006-3A:
Class B1, 1.0615% 10/25/36 (d)(i)	105		19
Class B2, 1.6115% 10/25/36 (d)(i)	76		11
Class B3, 2.8615% 10/25/36 (d)(i)	123		15
Class M4, 0.6915% 10/25/36 (d)(i)	116		43
Class M5, 0.7415% 10/25/36 (d)(i)	139		46
Class M6, 0.8215% 10/25/36 (d)(i)	172		43
Series 2006-4A:
Class A1, 0.4915% 12/25/36 (d)(i)	421		339
Class A2, 0.5315% 12/25/36 (d)(i)	2,232		1,674
Class B1, 0.9615% 12/25/36 (d)(i)	94		16
Class B2, 1.5115% 12/25/36 (d)(i)	96		15
Class B3, 2.7115% 12/25/36 (d)(i)	164		19
Class M1, 0.5515% 12/25/36 (d)(i)	198		115
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2006-4A:
Class M2, 0.5715% 12/25/36 (d)(i)	$ 131		$ 71
Class M3, 0.6015% 12/25/36 (d)(i)	133		66
Class M4, 0.6615% 12/25/36 (d)(i)	159		70
Class M5, 0.7015% 12/25/36 (d)(i)	146		61
Class M6, 0.7815% 12/25/36 (d)(i)	131		49
Series 2007-1:
Class A2, 0.5315% 3/25/37 (d)(i)	497		353
Class B1, 0.9315% 3/25/37 (d)(i)	209		42
Class B2, 1.4115% 3/25/37 (d)(i)	151		24
Class B3, 3.6115% 3/25/37 (d)(i)	314		35
Class M1, 0.5315% 3/25/37 (d)(i)	183		88
Class M2, 0.5515% 3/25/37 (d)(i)	137		59
Class M3, 0.5815% 3/25/37 (d)(i)	123		47
Class M4, 0.6315% 3/25/37 (d)(i)	98		34
Class M5, 0.6815% 3/25/37 (d)(i)	153		47
Class M6, 0.7615% 3/25/37 (d)(i)	213		53
Series 2007-2A:
Class A1, 0.5315% 7/25/37 (d)(i)	445		330
Class A2, 0.5815% 7/25/37 (d)(i)	417		204
Class B1, 1.8615% 7/25/37 (d)(i)	171		22
Class B2, 2.5115% 7/25/37 (d)(i)	148		18
Class B3, 3.6115% 7/25/37 (d)(i)	166		15
Class M1, 0.6315% 7/25/37 (d)(i)	194		62
Class M2, 0.6715% 7/25/37 (d)(i)	105		31
Class M3, 0.7515% 7/25/37 (d)(i)	106		26
Class M4, 0.9115% 7/25/37 (d)(i)	213		38
Class M5, 1.0115% 7/25/37 (d)(i)	188		28
Class M6, 1.2615% 7/25/37 (d)(i)	238		33
Series 2007-3:
Class A2, 0.5515% 7/25/37 (d)(i)	394		264
Class B1, 1.2115% 7/25/37 (d)(i)	149		19
Class B2, 1.8615% 7/25/37 (d)(i)	283		28
Class B3, 4.2615% 7/25/37 (d)(i)	199		16
Class M1, 0.5715% 7/25/37 (d)(i)	134		60
Class M2, 0.6015% 7/25/37 (d)(i)	143		50
Class M3, 0.6315% 7/25/37 (d)(i)	225		67
Class M4, 0.7615% 7/25/37 (d)(i)	267		75
Class M5, 0.8615% 7/25/37 (d)(i)	184		40
Class M6, 1.0615% 7/25/37 (d)(i)	139		28
Series 2007-4A:
Class B1, 2.8115% 9/25/37 (d)(i)	227		7
Class B2, 3.7115% 9/25/37 (d)(i)	624		16
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2007-4A:
Class M1, 1.2115% 9/25/37 (d)(i)	$ 218		$ 33
Class M2, 1.3115% 9/25/37 (d)(i)	218		26
Class M4, 1.8615% 9/25/37 (d)(i)	423		38
Class M5, 2.0115% 9/25/37 (d)(i)	423		30
Class M6, 2.2115% 9/25/37 (d)(i)	424		25
Series 2004-1 Class IO, 1.25% 4/25/34 (d)(k)	2,685		94
Series 2007-5A Class IO, 3.047% 10/25/37 (d)(i)(k)	6,428		763
Bear Stearns Commercial Mortgage Securities Trust:
floater:
Series 2006-BBA7:
Class G, 0.7058% 3/15/19 (d)(i)	363		303
Class H, 0.9158% 3/15/19 (d)(i)	244		182
Class J, 1.1158% 3/15/19 (d)(i)	183		130
Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (d)(i)	349		287
Class E, 0.5658% 3/15/22 (d)(i)	1,818		1,400
Class F, 0.6158% 3/15/22 (d)(i)	1,115		803
Class G, 0.6658% 3/15/22 (d)(i)	376		260
Class H, 0.8158% 3/15/22 (d)(i)	349		220
Class J, 0.9658% 3/15/22 (d)(i)	349		175
sequential payer:
Series 2003-PWR2 Class A3, 4.834% 5/11/39	324		329
Series 2004-PWR3 Class A3, 4.487% 2/11/41	697		708
Series 2006-T24 Class A1, 4.905% 10/12/41 (i)	555		559
Series 2007-PW17 Class A1, 5.282% 6/11/50	493		500
Series 2007-T26 Class A1, 5.145% 1/12/45 (i)	209		213
Series 2003-PWR2 Class X2, 0.5297% 5/11/39 (d)(i)(k)	8,518		27
Series 2003-T12 Class X2, 0.4803% 8/13/39 (d)(i)(k)	33,151		116
Series 2006-PW14 Class X2, 0.6525% 12/11/38 (d)(i)(k)	13,759		247
Series 2007-PW16:
Class B, 5.7174% 6/11/40 (d)(i)	193		129
Class C, 5.7174% 6/11/40 (d)(i)	161		90
Class D, 5.7174% 6/11/40 (d)(i)	161		84
Series 2007-PW18 Class X2, 0.3155% 6/11/50 (d)(i)(k)	105,250		1,268
Series 2007-T28:
Class A1, 5.422% 9/11/42	116		118
Class X2, 0.1785% 9/11/42 (d)(i)(k)	51,855		390
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
C-BASS Trust floater Series 2006-SC1 Class A, 0.5315% 5/25/36 (d)(i)	$ 386		$ 288
CDC Commercial Mortgage Trust Series 2002-FX1:
Class G, 6.625% 5/15/35 (d)	1,418		1,506
Class XCL, 2.1173% 5/15/35 (d)(i)(k)	12,858		283
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2:
Class F, 0.574% 8/15/21 (d)(i)	431		420
Class G, 0.594% 8/15/21 (d)(i)	273		255
Class H, 0.634% 8/15/21 (d)(i)	218		196
Series 2006-C5 Class AMP2, 5.5005% 10/15/49 (d)	1,825		1,651
Series 2007-C6 Class A1, 5.622% 12/10/49 (i)	3,332		3,337
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4 Class A2A, 5.237% 12/11/49	945		954
Series 2007-CD4:
Class A3, 5.293% 12/11/49	1,175		1,210
Class C, 5.476% 12/11/49	2,273		796
Cobalt CMBS Commercial Mortgage Trust:
sequential payer Series 2007-C3 Class A3, 5.8155% 5/15/46 (i)	1,207		1,293
Series 2006-C1 Class B, 5.359% 8/15/48	3,621		1,992
COMM pass-thru certificates:
floater:
Series 2005-F10A:
Class B, 0.4958% 4/15/17 (d)(i)	2,704		2,515
Class C, 0.5358% 4/15/17 (d)(i)	971		893
Class D, 0.5758% 4/15/17 (d)(i)	428		390
Class E, 0.6358% 4/15/17 (d)(i)	136		121
Class F, 0.6758% 4/15/17 (d)(i)	78		67
Class G, 0.8158% 4/15/17 (d)(i)	78		64
Class H, 0.8858% 4/15/17 (d)(i)	78		60
Class J, 1.1158% 4/15/17 (d)(i)	59		41
Series 2005-FL11:
Class C, 0.5658% 11/15/17 (d)(i)	921		875
Class D, 0.6058% 11/15/17 (d)(i)	48		45
Class E, 0.6558% 11/15/17 (d)(i)	170		156
Class F, 0.7158% 11/15/17 (d)(i)	84		76
Class G, 0.7658% 11/15/17 (d)(i)	58		52
Series 2006-FL12 Class AJ, 0.3958% 12/15/20 (d)(i)	1,720		1,591
sequential payer:
Series 2005-C6 Class A2, 4.999% 6/10/44 (i)	12		12
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
COMM pass-thru certificates: - continued
sequential payer:
Series 2006-C8 Class A3, 5.31% 12/10/46	$ 3,439		$ 3,573
Series 2006-CN2A:
Class A2FX, 5.449% 2/5/19 (d)	2,080		2,080
Class AJFX, 5.478% 2/5/19 (d)	2,590		2,586
Series 2004-LBN2 Class X2, 0.8571% 3/10/39 (d)(i)(k)	2,388		0*
Series 2006-C8:
Class B, 5.44% 12/10/46	2,090		1,381
Class XP, 0.4911% 12/10/46 (i)(k)	14,706		179
Credit Suisse Commercial Mortgage Trust:
sequential payer:
Series 2007-C2 Class A3, 5.542% 1/15/49 (i)	2,414		2,535
Series 2007-C3 Class A4, 5.7203% 6/15/39 (i)	726		773
Series 2006-C4 Class AAB, 5.439% 9/15/39	3,435		3,596
Series 2006-C5 Class ASP, 0.6744% 12/15/39 (i)(k)	8,953		162
Credit Suisse First Boston Mortgage Capital Certificates floater Series 2007-TF2A Class B, 0.6158% 4/15/22 (d)(i)	4,306		3,359
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer:
Series 2001-CK6 Class B, 6.582% 8/15/36	1,207		1,236
Series 2002-CP5 Class A1, 4.106% 12/15/35	87		88
Series 2004-C1:
Class A3, 4.321% 1/15/37	203		206
Class A4, 4.75% 1/15/37	562		591
Series 2001-CK6 Class AX, 0.8911% 8/15/36 (i)(k)	3,001		12
Series 2001-CKN5 Class AX, 1.9441% 9/15/34 (d)(i)(k)	8,488		33
Series 2004-C1 Class ASP, 0.9583% 1/15/37 (d)(i)(k)	34,999		6
Series 2006-C1 Class A3, 5.5457% 2/15/39 (i)	3,187		3,371
Credit Suisse Mortgage Capital Certificates:
floater Series 2007-TFL1:
Class B, 0.4158% 2/15/22 (d)(i)	457		411
Class C:
0.4358% 2/15/22 (d)(i)	840		740
0.5358% 2/15/22 (d)(i)	300		252
Class F, 0.5858% 2/15/22 (d)(i)	600		492
Series 2007-C1:
Class ASP, 0.4157% 2/15/40 (i)(k)	22,597		220
Class B, 5.487% 2/15/40 (d)(i)	1,845		277
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1:
Class D, 6.484% 3/15/33	$ 430		$ 430
Class G, 6.936% 3/15/33 (d)	794		796
GE Capital Commercial Mortgage Corp.:
sequential payer Series 2007-C1 Class A4, 5.543% 12/10/49	6,367		6,710
Series 2001-1 Class X1, 0.9778% 5/15/33 (d)(i)(k)	4,404		47
Series 2007-C1 Class XP, 0.2003% 12/10/49 (i)(k)	24,549		130
GMAC Commercial Mortgage Securities, Inc.:
Series 2004-C3 Class X2, 0.6179% 12/10/41 (i)(k)	20,032		88
Series 2005-C1 Class X2, 0.5542% 5/10/43 (i)(k)	4,596		34
Greenwich Capital Commercial Funding Corp.:
floater Series 2006-FL4 Class B, 0.453% 11/5/21 (d)(i)	454		429
sequential payer Series 2007-GG11 Class A2, 5.597% 12/10/49	2,414		2,530
Series 2005-GG3 Class XP, 0.6927% 8/10/42 (d)(i)(k)	20,203		133
Series 2006-GG7 Class A3, 5.8829% 7/10/38 (i)	1,591		1,679
Series 2007-GG11 Class A1, 0.4798% 12/10/49 (d)(k)	27,796		247
GS Mortgage Securities Corp. II:
floater:
Series 2006-FL8A:
Class C, 0.503% 6/6/20 (d)(i)	61		58
Class D, 0.543% 6/6/20 (d)(i)	288		265
Class E, 0.633% 6/6/20 (d)(i)	334		301
Class F, 0.703% 6/6/20 (d)(i)	376		331
Series 2007-EOP:
Class C, 2.1455% 3/6/20 (d)(i)	1,355		1,322
Class D, 2.3636% 3/6/20 (d)(i)	2,650		2,579
Class F, 2.8433% 3/6/20 (d)(i)	112		108
Class G, 3.0177% 3/6/20 (d)(i)	56		54
Class H, 3.5846% 3/6/20 (d)(i)	44		42
Class J, 4.4568% 3/6/20 (d)(i)	63		59
sequential payer Series 2005-GG4 Class A3, 4.607% 7/10/39	2,840		2,904
Series 2005-GG4 Class XP, 0.7101% 7/10/39 (d)(i)(k)	21,985		196
GS Mortgage Securities Trust sequential payer:
Series 2006-GG8 Class A2, 5.479% 11/10/39	1,811		1,835
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
GS Mortgage Securities Trust sequential payer: - continued
Series 2007-GG10:
Class A1, 5.69% 8/10/45	$ 66		$ 67
Class A2, 5.778% 8/10/45	575		590
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2004-CB8 Class X2, 1.1472% 1/12/39 (d)(i)(k)	2,168		0*
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class B, 0.4358% 11/15/18 (d)(i)	785		738
Class C, 0.4758% 11/15/18 (d)(i)	558		524
Class D, 0.4958% 11/15/18 (d)(i)	188		177
Class E, 0.5458% 11/15/18 (d)(i)	204		179
Class F, 0.5958% 11/15/18 (d)(i)	306		263
Class G, 0.6258% 11/15/18 (d)(i)	265		223
Class H, 0.7658% 11/15/18 (d)(i)	204		165
sequential payer:
Series 2006-LDP9 Class A2, 5.134% 5/15/47 (i)	573		593
Series 2007-LD11 Class A2, 5.8025% 6/15/49 (i)	1,695		1,753
Series 2007-LDP10 Class A1, 5.122% 1/15/49	19		19
Series 2007-LDPX:
Class A2 S, 5.305% 1/15/49	9,620		9,839
Class A3, 5.412% 1/15/49	3,322		3,531
Series 2005-CB13 Class E, 5.3502% 1/12/43 (d)(i)	611		63
Series 2006-CB17 Class A3, 5.45% 12/12/43	344		356
Series 2007-CB19:
Class B, 5.7447% 2/12/49 (i)	103		61
Class C, 5.7447% 2/12/49 (i)	270		138
Class D, 5.7447% 2/12/49 (i)	284		133
Series 2007-LDP10 Class ES, 5.5411% 1/15/49 (d)(i)	624		158
JPMorgan Commercial Mortgage Finance Corp. Series 2000-C9 Class G, 6.25% 10/15/32 (d)	409		409
LB Commercial Conduit Mortgage Trust Series 1998-C1 Class D, 6.98% 2/18/30	361		362
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2001-C2 Class A2, 6.653% 11/15/27	11		11
Series 2006-C1 Class A2, 5.084% 2/15/31	306		306
Series 2006-C6 Class A1, 5.23% 9/15/39	104		104
Series 2006-C7:
Class A1, 5.279% 11/15/38	299		301
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
LB-UBS Commercial Mortgage Trust: - continued
sequential payer:
Series 2006-C7:
Class A2, 5.3% 11/15/38	$ 1,328		$ 1,350
Series 2007-C1:
Class A1, 5.391% 2/15/40 (i)	107		109
Class A4, 5.424% 2/15/40	156		167
Series 2007-C2 Class A3, 5.43% 2/15/40	582		621
Series 2001-C3 Class B, 6.512% 6/15/36	2,333		2,368
Series 2001-C7 Class D, 6.514% 11/15/33	1,328		1,359
Series 2004-C2 Class XCP, 1.0355% 3/15/36 (d)(i)(k)	16,374		6
Series 2005-C3 Class XCP, 0.7544% 7/15/40 (i)(k)	3,736		30
Series 2006-C6 Class XCP, 0.6752% 9/15/39 (i)(k)	5,562		92
Series 2007-C1 Class XCP, 0.4772% 2/15/40 (i)(k)	2,073		26
Series 2007-C7 Class XCP, 0.2848% 9/15/45 (i)(k)	92,624		912
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class D, 0.4958% 9/15/21 (d)(i)	387		348
Class E, 0.5558% 9/15/21 (d)(i)	1,395		1,228
Class F, 0.6058% 9/15/21 (d)(i)	515		438
Class G, 0.6258% 9/15/21 (d)(i)	1,017		824
Class H, 0.6658% 9/15/21 (d)(i)	263		205
Merrill Lynch Mortgage Trust:
sequential payer Series 2004-MKB1 Class A2, 4.353% 2/12/42	52		52
Series 2005-CKI1 Class A3, 5.2412% 11/12/37 (i)	1,982		2,020
Series 2005-LC1 Class F, 5.3853% 1/12/44 (d)(i)	1,050		536
Merrill Lynch-CFC Commercial Mortgage Trust:
floater Series 2006-4 Class A2FL, 0.3813% 12/12/49 (i)	550		537
sequential payer:
Series 2006-1 CLass A3, 5.4839% 2/12/39 (i)	1,284		1,335
Series 2006-4 Class ASB, 5.133% 12/12/49 (i)	1,037		1,102
Series 2007-5:
Class A3, 5.364% 8/12/48	471		485
Class A4, 5.378% 8/12/48	48		50
Class B, 5.479% 2/12/17	3,621		1,591
Series 2007-6 Class A1, 5.175% 3/12/51	41		41
Series 2007-8 Class A1, 4.622% 8/12/49	213		215
Series 2007-9 Class A4, 5.7% 9/12/49	315		335
Series 2006-4 Class XP, 0.6112% 12/12/49 (i)(k)	22,523		433
Series 2007-6 Class B, 5.635% 3/12/51 (i)	1,207		591
Series 2007-7 Class B, 5.75% 6/12/50	105		24
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Morgan Stanley Capital I Trust:
floater:
Series 2006-XLF Class C, 1.466% 7/15/19 (d)(i)	$ 161		$ 84
Series 2007-XCLA Class A1, 0.466% 7/17/17 (d)(i)	878		790
Series 2007-XLFA:
Class C, 0.426% 10/15/20 (d)(i)	693		582
Class D, 0.456% 10/15/20 (d)(i)	300		225
Class E, 0.516% 10/15/20 (d)(i)	376		244
Class F, 0.566% 10/15/20 (d)(i)	225		113
Class G, 0.606% 10/15/20 (d)(i)	279		111
Class H, 0.696% 10/15/20 (d)(i)	176		18
Class J, 0.846% 10/15/20 (d)(i)	200		10
Class MHRO, 0.956% 10/15/20 (d)(i)	409		131
Class MJPM, 1.266% 10/15/20 (d)(i)	23		18
Class MSTR, 0.966% 10/15/20 (d)(i)	235		75
Class NHRO, 1.156% 10/15/20 (d)(i)	619		136
Class NSTR, 1.116% 10/15/20 (d)(i)	217		48
sequential payer:
Series 2003-IQ5 Class X2, 0.9108% 4/15/38 (d)(i)(k)	3,322		16
Series 2005-IQ9 Class A3, 4.54% 7/15/56	1,792		1,839
Series 2006-T23 Class A1, 5.682% 8/12/41	162		162
Series 2007-HQ11 Class A1, 5.246% 2/12/44	97		98
Series 2007-IQ13 Class A1, 5.05% 3/15/44	205		207
Series 2007-IQ14 Class A1, 5.38% 4/15/49	397		404
Series 2007-T25 Class A1, 5.391% 11/12/49	171		174
Series 2003-IQ6 Class X2, 0.5897% 12/15/41 (d)(i)(k)	7,142		36
Series 2005-IQ9 Class X2, 1.0924% 7/15/56 (d)(i)(k)	12,766		123
Series 2006-HQ10 Class X2, 0.4925% 11/12/41 (d)(i)(k)	7,033		65
Series 2006-HQ8 Class A3, 5.442% 3/12/44 (i)	1,872		1,894
Series 2006-IQ12 Class B, 5.468% 12/15/43	1,207		785
Series 2006-T23 Class A3, 5.803% 8/12/41 (i)	616		657
Providence Place Group Ltd. Partnership sequential payer Series 2000-C1 Class A1, 7.75% 7/20/16 (d)	1,014		1,148
Structured Asset Securities Corp. Series 1997-LLI Class D, 7.15% 10/12/34	111		113
TrizecHahn Office Properties Trust Series 2001-TZHA Class C4, 6.893% 5/15/16 (d)	751		757
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2005-WL5A Class K, 1.4658% 1/15/18 (d)(i)	$ 575		$ 552
Series 2006-WL7A:
Class E, 0.544% 9/15/21 (d)(i)	867		675
Class F, 0.604% 8/11/18 (d)(i)	846		567
Class G, 0.624% 8/11/18 (d)(i)	801		492
Class J, 0.864% 8/11/18 (d)(i)	178		83
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (d)(i)	99		69
Class AP2, 1.0658% 6/15/20 (d)(i)	165		107
Class F, 0.7458% 6/15/20 (d)(i)	2,422		1,574
Class LXR1, 0.9658% 6/15/20 (d)(i)	148		124
Class LXR2, 1.0658% 6/15/20 (d)(i)	1,651		1,304
sequential payer:
Series 2006-C27 Class A2, 5.624% 7/15/45	982		990
Series 2006-C29:
Class A1, 5.11% 11/15/48	302		305
Class A3, 5.313% 11/15/48	3,206		3,352
Series 2007-C30:
Class A1, 5.031% 12/15/43	6		6
Class A3, 5.246% 12/15/43	1,036		1,065
Class A4, 5.305% 12/15/43	355		362
Class A5, 5.342% 12/15/43	1,291		1,347
Series 2007-C31 Class A1, 5.14% 4/15/47	8		8
Series 2007-C32:
Class A2, 5.7406% 6/15/49 (i)	1,448		1,509
Class A3, 5.7456% 6/15/49 (i)	2,049		2,184
Series 2004-C15:
Class 180A, 5.5782% 10/15/41 (d)(i)	928		891
Class 180B, 5.5782% 10/15/41 (d)(i)	422		397
Series 2005-C22 Class F, 5.3619% 12/15/44 (d)(i)	2,013		1,139
Series 2006-C29 Class E, 5.516% 11/15/48 (i)	1,207		651
Series 2007-C30:
Class C, 5.483% 12/15/43 (i)	3,621		1,874
Class XP, 0.4403% 12/15/43 (d)(i)(k)	13,405		163
Series 2007-C31 Class C, 5.6933% 4/15/47 (i)	332		171
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust: - continued
Series 2007-C31A Class A2, 5.421% 4/15/47	$ 5,557		$ 5,748
Wachovia Bank Commercial Mortgage Trust pass-thru certificates sequential payer Series 2007-C33 Class A5, 5.8994% 2/15/51 (i)	799		862
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $154,085)		198,784
Municipal Securities - 0.4%
California Gen. Oblig.:
5.25% 4/1/14	9,000		9,394
6.2% 3/1/19	803		849
Illinois Gen. Oblig. Series 2010, 3.321% 1/1/13	6,094		6,090
TOTAL MUNICIPAL SECURITIES (Cost $15,962)		16,333
Foreign Government and Government Agency Obligations - 1.0%
Chilean Republic 7.125% 1/11/12	3,362		3,537
Ontario Province 2.7% 6/16/15	36,000		36,785
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $39,450)		40,322
Supranational Obligations - 0.0%
Corporacion Andina de Fomento 5.2% 5/21/13 (Cost $250)	267		284
Bank Notes - 0.3%
National City Bank, Cleveland 0.3959% 3/1/13 (i)	12,421		12,347
Wachovia Bank NA 6% 11/15/17	1,725		1,933
TOTAL BANK NOTES (Cost $13,410)		14,280

Fixed-Income Funds - 1.1%
	Shares		Value (000s)
Fidelity Specialized High Income Central Fund (j) (Cost $47,390)	476,710		$ 48,729
Preferred Securities - 0.1%
	Principal Amount (000s)
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
ING Groep NV 5.775% (i)	$ 1,362		1,230
MUFG Capital Finance 1 Ltd. 6.346% (i)	4,647		4,786
			6,016
TOTAL PREFERRED SECURITIES (Cost $3,866)		6,016
Cash Equivalents - 0.9%
	Maturity Amount (000s)
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $39,046)	$ 39,046		39,046
TOTAL INVESTMENT PORTFOLIO - 99.1% (Cost $4,043,961)			4,237,149
NET OTHER ASSETS (LIABILITIES) - 0.9%			39,056
NET ASSETS - 100%		$ 4,276,205

Swap Agreements
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to UBS upon each credit event of one of the issues of ABX AA 07-1 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $176,000) (h)	Sept. 2037	$ 538	$ (503)
Receive monthly notional amount multiplied by .82% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34 (g)	August 2034	403	(222)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34 (g)	Oct. 2034	484	(202)
Receive monthly notional amount multiplied by 2.5% and pay Credit Suisse First Boston upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11 Class M9, 8.03% 11/25/34 (Rating-C) (g)	Dec. 2034	1,282	(1,250)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32 (Rating-Ba1) (g)	April 2032	184	(108)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34 (Rating-C) (g)	Feb. 2034	4	(4)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 7.2913% 9/25/34 (Rating-B1) (g)	Oct. 2034	$ 534	$ (202)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7, Class B3, 9.01% 8/25/34 (Rating-C) (g)	Sept. 2034	186	(141)
		$ 3,615	$ (2,632)

Legend

(a) Non-income producing

(b) Non-income producing - Security is in default.

(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $439,311,000 or 10.3% of net assets.

(e) Under the Temporary Liquidity Guarantee Program, the Federal Deposit Insurance Corporation guarantees principal and interest in the event of payment default or bankruptcy until the earlier of maturity date of the debt or until June 30, 2012. At the end of the period these securities amounted to $47,926,000 or 1% of net assets.

(f) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $4,281,000.

(g) Represents a credit default swap contract in which the Fund has sold protection on the underlying reference entity. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. For the underlying reference entity, ratings disclosed are from Moody's Investors Service, Inc. Where Moody's ratings are not available, S&P ratings are disclosed and are indicated as such. All ratings are as of the report date and do not reflect subsequent changes. Where a credit rating is not disclosed, the value is used as the measure of the payment/performance risk.

(h) Represents a credit default swap based on a tradable index of home equity asset-backed debt securities. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. In addition, the swap represents a contract in which the Fund has sold protection on the index of underlying securities. Ratings represent a weighted average of the ratings of all securities included in the index. Ratings used in the weighted average are from Moody's Investors Service, Inc., or S&P where Moody's ratings are not available. All ratings are as of the report date and do not reflect subsequent changes.

(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(j) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.

(k) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

* Amount represents less than $1,000.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$39,046,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 3,263
Bank of America NA	2,901
Barclays Capital, Inc.	1,615
Credit Agricole Securities (USA), Inc.	1,450
Deutsche Bank Securities, Inc.	1,664
Goldman, Sachs & Co.	363
HSBC Securities (USA), Inc.	4,351
ING Financial Markets LLC	2,683
Repurchase Agreement / Counterparty	Value (Amounts in thousands)
J.P. Morgan Securities, Inc.	$ 4,351
Merrill Lynch Government Securities, Inc.	1,305
Merrill Lynch, Pierce, Fenner & Smith, Inc.	2,002
Mizuho Securities USA, Inc.	7,978
RBC Capital Markets Corp.	363
Societe Generale, New York Branch	2,901
Wells Fargo Securities LLC	1,856
	$ 39,046

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned (Amounts in thousands)
Fidelity Corporate Bond 1-10 Year Central Fund	$ 1,680
Fidelity Specialized High Income Central Fund	1,611
Total	$ 3,291

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows:

Fund (Amounts in thousands)	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Corporate Bond 1-10 Year Central Fund	$ 135,609	$ -	$ 134,687*	$ -	0.0%
Fidelity Specialized High Income Central Fund	45,200	1,611	-	48,729	11.1%
Total	$ 180,809	$ 1,611	$ 134,687	$ 48,729

* Includes the value of shares redeemed through in-kind transactions. See Note 7 of the Notes to Financial Statements.

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 1,457,564	$ -	$ 1,457,564	$ -
U.S. Government and Government Agency Obligations	1,750,653	-	1,750,653	-
U.S. Government Agency - Mortgage Securities	242,332	-	242,332	-
Asset-Backed Securities	317,545	-	309,386	8,159
Collateralized Mortgage Obligations	105,261	-	105,162	99
Commercial Mortgage Securities	198,784	-	173,512	25,272
Municipal Securities	16,333	-	16,333	-
Foreign Government and Government Agency Obligations	40,322	-	40,322	-
Supranational Obligations	284	-	284	-
Bank Notes	14,280	-	14,280	-
Fixed-Income Funds	48,729	48,729	-	-
Preferred Securities	6,016	-	6,016	-
Cash Equivalents	39,046	-	39,046	-
Total Investments in Securities:	$ 4,237,149	$ 48,729	$ 4,154,890	$ 33,530
Derivative Instruments:
Liabilities
Swap Agreements	$ (2,632)	$ -	$ (1,036)	$ (1,596)

The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 43,868
Total Realized Gain (Loss)	251
Total Unrealized Gain (Loss)	6,034
Cost of Purchases	3,554
Proceeds of Sales	(2,585)
Amortization/Accretion	605
Transfers in to Level 3	2,735
Transfers out of Level 3	(20,932)
Ending Balance	$ 33,530
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 5,381
Derivative Instruments:
Swap Agreements
Beginning Balance	$ (2,523)
Total Unrealized Gain (Loss)	259
Transfers in to Level 3	-
Transfers out of Level 3	668
Ending Balance	$ (1,596)
Realized gain (loss) on Swap Agreements for the period	$ (133)
The change in unrealized gain (loss) for the period attributable to Level 3 Swap Agreements held at February 28, 2011	$ 259

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and Derivative Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, and includes the value of securities received through affiliated in-kind transactions. See Note 7 of the Notes to Financial Statements. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by risk exposure as of February 28, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Risk Exposure / Derivative Type (Amounts in thousands)	Value
	Asset	Liability
Credit Risk
Swap Agreements (a)	$ -	$ (2,632)
Total Value of Derivatives	$ -	$ (2,632)

(a) Value is disclosed on the Statement of Assets and Liabilities in the Unrealized Appreciation and Unrealized Depreciation on Swap Agreements line-items.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America	89.9%
United Kingdom	2.6%
Canada	2.1%
Australia	1.0%
Netherlands	1.0%
Others (Individually Less Than 1%)	3.4%
	100.0%

Income Tax Information

At August 31, 2010, the Fund had a capital loss carryforward of approximately $229,796,000 of which $54,135,000, $12,930,000, $131,741,000 and $30,990,000 will expire in fiscal 2014, 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)	February 28, 2011
Assets
Investment in securities, at value (including repurchase agreements of $39,046) - See accompanying schedule: Unaffiliated issuers (cost $3,996,571)	$ 4,188,420
Fidelity Central Funds (cost $47,390)	48,729
Total Investments (cost $4,043,961)		$ 4,237,149
Cash		434
Receivable for investments sold		12,540
Receivable for swap agreements		7
Receivable for fund shares sold		8,057
Interest receivable		30,592
Other receivables		124
Total assets		4,288,903
Liabilities
Payable for investments purchased	$ 1,338
Payable for swap agreements	9
Payable for fund shares redeemed	6,609
Distributions payable	379
Unrealized depreciation on swap agreements	2,632
Accrued management fee	1,123
Other affiliated payables	484
Other payables and accrued expenses	124
Total liabilities		12,698
Net Assets		$ 4,276,205
Net Assets consist of:
Paid in capital		$ 4,380,301
Undistributed net investment income		27,320
Accumulated undistributed net realized gain (loss) on investments		(322,024)
Net unrealized appreciation (depreciation) on investments		190,608
Net Assets, for 404,289 shares outstanding		$ 4,276,205
Net Asset Value, offering price and redemption price per share ($4,276,205 ÷ 404,289 shares)		$ 10.58

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

Semiannual Report

Statement of Operations

Amounts in thousands	Six months ended February 28, 2011
Investment Income
Dividends		$ 187
Interest		83,217
Income from Fidelity Central Funds		3,291
Total income		86,695
Expenses
Management fee	$ 7,304
Transfer agent fees	2,314
Fund wide operations fee	784
Independent trustees' compensation	10
Miscellaneous	8
Total expenses before reductions	10,420
Net investment income (loss)		76,275
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	50,539
Fidelity Central Funds	10,343
Swap agreements	(187)
Total net realized gain (loss)		60,695
Change in net unrealized appreciation (depreciation) on: Investment securities	(134,949)
Swap agreements	444
Total change in net unrealized appreciation (depreciation)		(134,505)
Net gain (loss)		(73,810)
Net increase (decrease) in net assets resulting from operations		$ 2,465

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 76,275	$ 183,308
Net realized gain (loss)	60,695	184,456
Change in net unrealized appreciation (depreciation)	(134,505)	125,838
Net increase (decrease) in net assets resulting from operations	2,465	493,602
Distributions to shareholders from net investment income	(71,990)	(172,198)
Distributions to shareholders from net realized gain	(5,394)	(8,621)
Total distributions	(77,384)	(180,819)
Share transactions Proceeds from sales of shares	528,507	1,604,830
Reinvestment of distributions	74,649	174,832
Cost of shares redeemed	(1,083,121)	(1,441,585)
Net increase (decrease) in net assets resulting from share transactions	(479,965)	338,077
Total increase (decrease) in net assets	(554,884)	650,860
Net Assets
Beginning of period	4,831,089	4,180,229
End of period (including undistributed net investment income of $27,320 and undistributed net investment income of $23,035, respectively)	$ 4,276,205	$ 4,831,089
Other Information Shares
Sold	49,618	155,324
Issued in reinvestment of distributions	6,993	16,891
Redeemed	(102,091)	(139,684)
Net increase (decrease)	(45,480)	32,531

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

Semiannual Report

Financial Highlights

	Six months ended February 28,	Years ended August 31,
	2011	2010	2009	2008	2007	2006 I	2006 J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.74	$ 10.02	$ 9.85	$ 10.12	$ 10.24	$ 10.14	$ 10.43
Income from Investment Operations
Net investment income (loss) D	.176	.422	.449	.483	.501	.169	.436
Net realized and unrealized gain (loss)	(.159)	.715	.205 G	(.278)	(.134)	.081	(.295)
Total from investment operations	.017	1.137	.654	.205	.367	.250	.141
Distributions from net investment income	(.165)	(.397)	(.454)	(.475)	(.475)	(.150)	(.421)
Distributions from net realized gain	(.012)	(.020)	(.030)	-	(.012)	-	(.010)
Total distributions	(.177)	(.417)	(.484)	(.475)	(.487)	(.150)	(.431)
Net asset value, end of period	$ 10.58	$ 10.74	$ 10.02	$ 9.85	$ 10.12	$ 10.24	$ 10.14
Total Return B, C	.16%	11.59%	7.13%	2.03%	3.63%	2.48%	1.36%
Ratios to Average Net Assets E, H
Expenses before reductions	.45% A	.45%	.45%	.45%	.45%	.45% A	.46%
Expenses net of fee waivers, if any	.45% A	.45%	.45%	.45%	.45%	.45% A	.46%
Expenses net of all reductions	.45% A	.45%	.45%	.44%	.44%	.44% A	.46%
Net investment income (loss)	3.32% A	4.08%	4.80%	4.79%	4.89%	4.96% A	4.22%
Supplemental Data
Net assets, end of period (in millions)	$ 4,276	$ 4,831	$ 4,180	$ 6,886	$ 8,300	$ 7,567	$ 7,658
Portfolio turnover rate F	79% A, K	115% K	66% K	80%	94% K	71% A	44%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns would have been lower had certain expenses not been reduced during the periods shown. ^D Calculated based on average shares outstanding during the period. ^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. ^H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund. ^I For the four month period ended August 31. The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. ^J For the period ended April 30. ^K The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011

(Amounts in thousands except ratios)

1. Organization.

Fidelity Intermediate Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.

2. Investments in Fidelity Central Funds.

The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The following summarizes the Fund's investment in each Fidelity Central Fund.

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity Specialized High Income Central Fund	FMR Co., Inc. (FMRC)	Seeks a high level of current income by normally investing in income-producing debt securities, with an emphasis on lower-quality debt securities.	Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities

An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including security valuation policies) of those funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm are available on the SEC web site or upon request.

Semiannual Report

3. 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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011 for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, bank notes, foreign government and government agency obligations, municipal securities, preferred securities, supranational obligations and U.S. government and government agency obligations pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type

Semiannual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

Swaps are marked-to-market daily based on valuations from independent pricing services or dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Pricing services utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates and, as a result, swaps are generally categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investments in open-end mutual funds, including the Fidelity Central Funds,are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

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3. Significant Accounting Policies - continued

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 130,301
Gross unrealized depreciation	(46,013)
Net unrealized appreciation (depreciation) on securities and other investments	$ 84,288
Tax cost	$ 4,152,861

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Notes to Financial Statements - continued

(Amounts in thousands except ratios)

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

5. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including swap agreements, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risks:

Credit Risk Credit risk relates to the ability of the issuer to a financial instrument to make further principal or interest payments on an obligation or commitment that it has entered into with the Fund.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain over-the-counter derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an

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5. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

International Swaps and Derivatives Association (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other counterparty. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk, the Fund offsets certain payables and/or receivables with collateral. Collateral in the form of cash or securities, if required, is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the swap counterparty and the Fund's custodian bank, and is identified in the Schedule of Investments. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.

Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period.

Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Credit Risk
Swap Agreements	$ (187)	$ 444
Totals (a)	$ (187)	$ 444

(a) A summary of the value of derivatives by risk exposure as of period end, is included at the end of the Schedule of Investments and is representative of activity for the period.

Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.

Details of swaps open at period end, are included in the Schedule of Investments under the caption "Swap Agreements." Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation or (depreciation) and reflected in the Statement of Assets and Liabilities. Any upfront payments made or received upon entering a

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Notes to Financial Statements - continued

(Amounts in thousands except ratios)

5. Derivative Instruments - continued

Swap Agreements - continued

swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded as realized gain or (loss) ratably over the term of the swap. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

Risks of loss include credit risk. In addition, there is the risk of failure by the counterparty to perform under the terms of the agreement and lack of liquidity in the market.

Credit Default Swaps. Credit default swaps enable the Fund to buy or sell protection on a debt security or a basket of securities against a defined credit event. Under the terms of a credit default swap the buyer of protection (buyer) receives credit protection in exchange for making periodic payments to the seller of protection (seller) based on a fixed percentage applied to a notional principal amount. In return for these payments, the seller acts as a guarantor of the creditworthiness of a reference obligation. The Fund entered into credit default swaps as a seller to gain credit exposure to an issuer and/or as a buyer to provide a measure of protection against defaults of an issuer. The issuer may be either a single issuer or a "basket" of issuers. Periodic payments are made over the life of the contract provided that no credit event occurs.

For credit default swaps on most corporate and sovereign issuers, credit events include bankruptcy, failure to pay, obligation acceleration or repudiation/moratorium. For credit default swaps on corporate or sovereign issuers, the obligation that may be put to the seller is not limited to the specific reference obligation described in the Schedule of Investments. For credit default swaps on asset-backed securities, a credit event may be triggered by events such as failure to pay principal, maturity extension, rating downgrade or write-down. For credit default swaps on asset-backed securities, the reference obligation described represents the security that may be put to the seller.

As a seller, if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the reference obligation or underlying securities comprising an index or pay a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

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5. Derivative Instruments - continued

Credit Default Swaps - continued

As a buyer, if an underlying credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the reference obligation or underlying securities comprising an index or receive a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

Typically, the value of each credit default swap and credit rating disclosed for each reference obligation in the Schedule of Investments, where the Fund is the seller, can be used as measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. Any current or future declines in the value of the swap may be partially offset by upfront payments received by the Fund as the seller, if applicable. In addition to these measures, FMR monitors a variety of factors including cash flow assumptions, market activity and market sentiment as part of its ongoing process of assessing payment/performance risk.

The notional amount of credit default swaps is included in the Schedule of Investments and approximates the maximum potential amount of future payments that the Fund could be required to make if the Fund is the seller and a credit event were to occur. The total notional amount of all credit default swaps open at period end where the Fund is the seller amounted to $3,615 representing .08% of net assets.

6. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, U.S. government securities and in-kind transactions aggregated $396,024 and $515,207, respectively.

7. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .32% of the Fund's average net assets.

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Notes to Financial Statements - continued

(Amounts in thousands except ratios)

7. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives an asset-based fee of .10% of the Fund's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.

Exchange In-Kind. During the period, the Fund redeemed in-kind 1,242 shares of Fidelity Corporate Bond 1-10 Year Central Fund ("1-10 Year"), a Fidelity Central Fund in which the Fund invested, valued at $134,687 in exchange for cash and securities, including accrued interest. Realized gain (loss) of $10,343 on the Fund's redemption of 1-10 Year shares is included in the accompanying Statement of Operations as "Realized gain (loss) on Fidelity Central Funds." Because 1-10 Year was a partnership for federal income tax purposes, the redemption generally was tax free to the Fund.

8. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

9. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

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10. Credit Risk.

The Fund invests a portion of its assets in structured securities of issuers backed by residential mortgage loans, credit card receivables and automotive loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults.

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Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Fixed-Income Trust and Shareholders of Fidelity Intermediate Bond Fund:

We have audited the accompanying statement of assets and liabilities of Fidelity Intermediate Bond Fund (the Fund), a fund of Fidelity Fixed-Income Trust, including the schedule of investments, as of February 28, 2011, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months then ended and for the year ended August 31, 2010, and the financial highlights for the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of February 28, 2011, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Intermediate Bond Fund as of February 28, 2011, the results of its operations for the six months then ended, the changes in its net assets for the six months then ended and for the year ended August 31, 2010, and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts

April 19, 2011

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Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Intermediate Bond Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided

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to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.

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Fidelity Intermediate Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the fund was in the first quartile for the one-year period, the third quartile for the three-year period, and the second quartile for the five-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return compared favorably to its benchmark. The Board also reviewed the fund's performance since inception as well as performance in the current year.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 9% means that 91% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Fidelity Intermediate Bond Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2005) to the fund's management contract that lowered the fund's individual fund fee rate from 30 basis points to 20 basis points. The Board considered that the chart reflects the fund's lower management fee for 2005, as if the lower rate were in effect for the entire year.

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Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board also considered that the current contractual arrangements for the fund (i) have the effect of setting the total "fund-level" expenses (including, among certain other expenses, the management fee) at 35 basis points, (ii) lower and limit the "class-level" transfer agent fee to 10 basis points, and (iii) limit the fund's total expenses to 45 basis points. The fees and expenses payable under these contractual arrangements may not be increased without Board and shareholder approval.

The Board noted that the fund's total expenses ranked below its competitive median for 2009.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses at 35 basis points, increases or decreases in the management fee due to changes in the group fee rate will not impact total expenses.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

Semiannual Report

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.

By Phone

Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

(phone_graphic)

Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555

Press

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)

Fidelity's Web Site
www.fidelity.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

To Visit Fidelity

For directions and hours, 
please call 1-800-544-9797.

Arizona

7001 West Ray Road
Chandler, AZ

15445 N. Scottsdale Road
Scottsdale, AZ

17550 North 75th Avenue
Glendale, AZ

5330 E. Broadway Blvd
Tucson, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

601 Larkspur Landing Circle
Larkspur, CA

2000 Avenue of the Stars
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

123 South Lake Avenue
Pasadena, CA

16656 Bernardo Ctr. Drive
Rancho Bernardo, CA

1220 Roseville Parkway
Roseville, CA

1740 Arden Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

11943 El Camino Real
San Diego, CA

8 Montgomery Street
San Francisco, CA

3793 State Street
Santa Barbara, CA

1200 Wilshire Boulevard
Santa Monica, CA

398 West El Camino Real
Sunnyvale, CA

111 South Westlake Blvd
Thousand Oaks, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6326 Canoga Avenue
Woodland Hills, CA

2211 Michelson Drive
Irvine, CA

Colorado

281 East Flatiron Circle
Broomfield, CO

1625 Broadway
Denver, CO

9185 Westview Road
Lone Tree, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

1261 Post Road
Fairfield, CT

Delaware

400 Delaware Avenue
Wilmington, DE

Florida

175 East Altamonte Drive
Altamonte Springs, FL

1400 Glades Road
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

4671 Town Center Parkway
Jacksonville, FL

8880 Tamiami Trail, North
Naples, FL

230 Royal Palm Way
Palm Beach, FL

3501 PGA Boulevard
Palm Beach Gardens, FL

3550 Tamiami Trail, South
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

2465 State Road 7
Wellington, FL

Georgia

3242 Peachtree Road
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

401 North Michigan Avenue
Chicago, IL

One Skokie Valley Road
Highland Park, IL

1415 West 22nd Street
Oak Brook, IL

15105 S LaGrange Road
Orland Park, IL

1572 East Golf Road
Schaumburg, IL

1823 Freedom Drive
Naperville, IL

Indiana

8480 Keystone Crossing
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD

610 York Road
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

238 Main Street
Cambridge, MA

200 Endicott Street
Danvers, MA

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Semiannual Report

405 Cochituate Road
Framingham, MA

551 Boston Turnpike
Shrewsbury, MA

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI

280 N. Old Woodward Ave.
Birmingham, MI

30200 Northwestern Hwy.
Farmington Hills, MI

43420 Grand River Avenue
Novi, MI

3480 28th Street
Grand Rapids, MI

2425 S. Linden Road STE E
Flint, MI

Minnesota

7740 France Avenue South
Edina, MN

8342 3rd Street North
Oakdale, MN

Missouri

1524 South Lindbergh Blvd.
St. Louis, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

501 Route 73 South
Marlton, NJ

150 Essex Street
Millburn, NJ

35 Morris Street
Morristown, NJ

396 Route 17, North
Paramus, NJ

3518 Route 1 North
Princeton, NJ

530 Broad Street
Shrewsbury, NJ

New Mexico

2261 Q Street NE
Albuquerque, NM

New York

1130 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

980 Madison Avenue
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

200 Fifth Avenue
New York, NY

733 Third Avenue
New York, NY

2070 Broadway
New York, NY

1075 Northern Blvd.
Roslyn, NY

799 Central Park Avenue
Scarsdale, NY

3349 Monroe Avenue
Rochester, NY

North Carolina

4611 Sharon Road
Charlotte, NC

7011 Fayetteville Road
Durham, NC

Ohio

3805 Edwards Road
Cincinnati, OH

1324 Polaris Parkway
Columbus, OH

1800 Crocker Road
Westlake, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

7493 SW Bridgeport Road
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

10 Memorial Boulevard
Providence, RI

Tennessee

3018 Peoples Street
Johnson City, TN

7628 West Farmington Blvd.
Germantown, TN

2035 Mallory Lane
Franklin, TN

Texas

10000 Research Boulevard
Austin, TX

4001 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

6560 Fannin Street
Houston, TX

1701 Lake Robbins Drive
The Woodlands, TX

6500 N. MacArthur Blvd.
Irving, TX

6005 West Park Boulevard
Plano, TX

1576 East Southlake Blvd.
Southlake, TX

15600 Southwest Freeway
Sugar Land, TX

139 N. Loop 1604 East
San Antonio, TX

Utah

279 West South Temple
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

11957 Democracy Drive
Reston, VA

Washington

10500 NE 8th Street
Bellevue, WA

1518 6th Avenue
Seattle, WA

304 Strander Blvd
Tukwila, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

16020 West Bluemound Road
Brookfield, WI

Semiannual Report

Investment Adviser

Fidelity Management & Research
Company
Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York Mellon

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555

Automated line for quickest service

IBF-USAN-0411
1.784857.107

Fidelity®
Investment Grade Bond
Fund

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Class A	.78%
Actual		$ 1,000.00	$ 1,006.60	$ 3.88
HypotheticalA		$ 1,000.00	$ 1,020.93	$ 3.91
Class T	.81%
Actual		$ 1,000.00	$ 1,006.50	$ 4.03
HypotheticalA		$ 1,000.00	$ 1,020.78	$ 4.06
Class B	1.52%
Actual		$ 1,000.00	$ 1,001.60	$ 7.54
HypotheticalA		$ 1,000.00	$ 1,017.26	$ 7.60
Class C	1.54%
Actual		$ 1,000.00	$ 1,002.80	$ 7.65
HypotheticalA		$ 1,000.00	$ 1,017.16	$ 7.70
Investment Grade Bond	.45%
Actual		$ 1,000.00	$ 1,008.20	$ 2.24
HypotheticalA		$ 1,000.00	$ 1,022.56	$ 2.26
Institutional Class	.49%
Actual		$ 1,000.00	$ 1,008.00	$ 2.44
HypotheticalA		$ 1,000.00	$ 1,022.36	$ 2.46

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations 78.3%		U.S. Government and U.S. Government Agency Obligations 71.2%
	AAA 6.0%		AAA 6.8%
	AA 2.5%		AA 2.8%
	A 7.2%		A 7.8%
	BBB 12.5%		BBB 11.8%
	BB and Below 5.0%		BB and Below 4.0%
	Not Rated 0.1%		Not Rated 0.1%
	Equities 0.0%		Equities 0.1%
	Short-Term Investments and Net Other Assets† (11.6)%		Short-Term Investments and Net Other Assets† (4.6)%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. The information in the above table is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	6.8	6.3

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	5.0	4.7

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011*			As of August 31, 2010**
	Corporate Bonds 22.5%			Corporate Bonds 22.8%
	U.S. Government and U.S. Government Agency Obligations 78.3%			U.S. Government and U.S. Government Agency Obligations 71.2%
	Asset-Backed Securities 1.6%			Asset-Backed Securities 2.0%
	CMOs and Other Mortgage Related Securities 8.7%			CMOs and Other Mortgage Related Securities 8.1%
	Municipal Bonds 0.3%			Municipal Bonds 0.3%
	Other Investments 0.2%			Other Investments 0.2%
	Short-Term Investments and Net Other Assets† (11.6)%			Short-Term Investments and Net Other Assets† (4.6)%
* Foreign investments		3.7%	** Foreign investments		3.8%
* Futures and Swaps		(0.6)%	** Futures and Swaps		2.9%

^† Short-Term Investments and Net Other Assets are not included in the pie chart.

A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds is available at fidelity.com and/or advisor.fidelity.com, as applicable.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 20.6%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.8%
Household Durables - 0.2%
Fortune Brands, Inc.:
5.375% 1/15/16	$ 1,596		$ 1,679
5.875% 1/15/36	1,818		1,608
6.375% 6/15/14	7,614		8,358
			11,645
Media - 1.6%
Comcast Corp.:
4.95% 6/15/16	7,475		7,985
5.7% 5/15/18	6,385		6,979
6.55% 7/1/39	4,789		5,077
Discovery Communications LLC:
3.7% 6/1/15	3,783		3,921
6.35% 6/1/40	3,458		3,638
Liberty Media Corp. 8.25% 2/1/30	4,856		4,710
NBC Universal, Inc.:
3.65% 4/30/15 (d)	4,134		4,225
5.15% 4/30/20 (d)	5,465		5,630
6.4% 4/30/40 (d)	9,638		10,069
News America Holdings, Inc. 7.75% 12/1/45	2,832		3,412
News America, Inc. 6.15% 3/1/37	2,997		3,036
Time Warner Cable, Inc.:
5.85% 5/1/17	12,691		13,973
6.75% 7/1/18	5,587		6,413
Time Warner, Inc. 6.2% 3/15/40	9,617		9,798
Viacom, Inc.:
6.125% 10/5/17	2,096		2,371
6.75% 10/5/37	3,990		4,418
			95,655
TOTAL CONSUMER DISCRETIONARY			107,300
CONSUMER STAPLES - 1.0%
Beverages - 0.2%
Anheuser-Busch InBev Worldwide, Inc. 5.375% 11/15/14 (d)	4,529		5,004
FBG Finance Ltd. 5.125% 6/15/15 (d)	5,189		5,514
			10,518
Food & Staples Retailing - 0.0%
CVS Caremark Corp. 6.302% 6/1/37 (j)	1,442		1,420
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Food Products - 0.3%
Kraft Foods, Inc.:
5.375% 2/10/20	$ 5,087		$ 5,408
6.5% 8/11/17	4,718		5,420
6.875% 2/1/38	5,289		5,933
			16,761
Tobacco - 0.5%
Altria Group, Inc.:
9.25% 8/6/19	5,257		6,824
9.7% 11/10/18	5,570		7,333
Reynolds American, Inc.:
6.75% 6/15/17	7,156		8,056
7.25% 6/15/37	10,968		11,637
			33,850
TOTAL CONSUMER STAPLES			62,549
ENERGY - 2.0%
Energy Equipment & Services - 0.2%
DCP Midstream LLC 5.35% 3/15/20 (d)	4,973		5,154
El Paso Pipeline Partners Operating Co. LLC 4.1% 11/15/15	6,122		6,231
Weatherford International Ltd. 5.15% 3/15/13	976		1,031
			12,416
Oil, Gas & Consumable Fuels - 1.8%
Anadarko Petroleum Corp. 6.375% 9/15/17	5,436		6,059
Apache Corp. 5.1% 9/1/40	4,838		4,491
Canadian Natural Resources Ltd. 5.9% 2/1/18	1,333		1,509
Delek & Avner-Yam Tethys Ltd. 5.326% 8/1/13 (d)	140		140
Kaneb Pipe Line Operations Participation LP 7.75% 2/15/12	6,497		6,831
Marathon Petroleum Corp. 5.125% 3/1/21 (d)	3,437		3,484
Motiva Enterprises LLC:
5.75% 1/15/20 (d)	1,965		2,161
6.85% 1/15/40 (d)	7,374		8,544
Nakilat, Inc. 6.067% 12/31/33 (d)	2,634		2,647
Nexen, Inc.:
5.05% 11/20/13	4,658		4,968
6.4% 5/15/37	8,585		8,216
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Pemex Project Funding Master Trust 0.9034% 12/3/12 (d)(j)	$ 5,589		$ 5,561
Petro-Canada 6.05% 5/15/18	1,963		2,227
Petrobras International Finance Co. Ltd.:
3.875% 1/27/16	5,695		5,751
5.75% 1/20/20	16,071		16,676
6.875% 1/20/40	3,862		3,939
Plains All American Pipeline LP/PAA Finance Corp. 5% 2/1/21	1,885		1,889
Ras Laffan Liquefied Natural Gas Co. Ltd. III:
4.5% 9/30/12 (d)	2,794		2,888
5.5% 9/30/14 (d)	3,906		4,154
6.75% 9/30/19 (d)	2,556		2,863
Suncor Energy, Inc. 6.1% 6/1/18	6,037		6,869
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	1,907		2,190
			104,057
TOTAL ENERGY			116,473
FINANCIALS - 11.2%
Capital Markets - 2.1%
Goldman Sachs Group, Inc.:
3.7% 8/1/15	3,483		3,533
5.95% 1/18/18	4,817		5,229
6% 6/15/20	2,500		2,679
6.15% 4/1/18	4,469		4,896
6.25% 2/1/41	4,212		4,286
6.75% 10/1/37	4,560		4,674
Janus Capital Group, Inc. 6.125% 9/15/11 (c)	2,730		2,776
JPMorgan Chase Capital XVII 5.85% 8/1/35	1,820		1,785
JPMorgan Chase Capital XX 6.55% 9/29/36	17,448		17,929
Lazard Group LLC:
6.85% 6/15/17	2,464		2,625
7.125% 5/15/15	7,737		8,514
Merrill Lynch & Co., Inc. 6.875% 4/25/18	6,385		7,183
Morgan Stanley:
0.6031% 1/9/14 (j)	8,284		8,101
4.1% 1/26/15	5,004		5,153
5.45% 1/9/17	5,100		5,378
5.75% 1/25/21	6,385		6,558
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Capital Markets - continued
Morgan Stanley: - continued
6% 5/13/14	$ 6,764		$ 7,401
6.625% 4/1/18	7,981		8,822
7.3% 5/13/19	4,777		5,440
UBS AG Stamford Branch 3.875% 1/15/15	8,300		8,524
			121,486
Commercial Banks - 2.0%
Bank of America NA 5.3% 3/15/17	6,133		6,391
BB&T Capital Trust IV 6.82% 6/12/77 (j)	583		593
Credit Suisse (Guernsey) Ltd. 5.86% (j)	6,365		6,150
Credit Suisse New York Branch 6% 2/15/18	8,405		8,975
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (d)(j)	1,517		1,489
Discover Bank:
7% 4/15/20	2,536		2,797
8.7% 11/18/19	5,944		7,147
Export-Import Bank of Korea 5.25% 2/10/14 (d)	3,402		3,623
Fifth Third Bancorp:
3.625% 1/25/16	3,326		3,340
4.5% 6/1/18	2,054		2,003
8.25% 3/1/38	2,385		2,874
Fifth Third Bank 4.75% 2/1/15	949		994
Fifth Third Capital Trust IV 6.5% 4/15/67 (j)	2,462		2,400
HBOS PLC 6.75% 5/21/18 (d)	3,056		2,904
Huntington Bancshares, Inc. 7% 12/15/20	1,597		1,748
JPMorgan Chase Bank 6% 10/1/17	5,986		6,597
KeyBank NA:
5.8% 7/1/14	4,173		4,564
6.95% 2/1/28	1,344		1,437
KeyBank NA, Cleveland 5.45% 3/3/16	2,190		2,355
Korea Development Bank 5.75% 9/10/13	3,220		3,477
Manufacturers & Traders Trust Co. 1.8028% 4/1/13 (j)	572		571
Marshall & Ilsley Bank:
4.85% 6/16/15	2,284		2,397
5% 1/17/17	3,713		3,870
5.25% 9/4/12	1,692		1,773
6.375% 9/1/11	6,820		6,959
Regions Bank:
6.45% 6/26/37	8,147		7,465
7.5% 5/15/18	3,713		3,936
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Regions Financial Corp.:
5.75% 6/15/15	$ 1,094		$ 1,094
7.75% 11/10/14	4,705		5,023
Wachovia Corp. 4.875% 2/15/14	4,283		4,541
Wells Fargo & Co. 3.75% 10/1/14	6,217		6,547
			116,034
Consumer Finance - 0.1%
Discover Financial Services 10.25% 7/15/19	3,781		4,895
SLM Corp.:
0.5016% 3/15/11 (j)	532		531
0.5331% 10/25/11 (j)	1,848		1,833
0.6031% 1/27/14 (j)	1,055		996
5% 10/1/13	391		404
			8,659
Diversified Financial Services - 1.7%
Bank of America Corp. 5.75% 12/1/17	12,613		13,485
BP Capital Markets PLC:
3.125% 10/1/15	5,742		5,826
3.625% 5/8/14	5,058		5,285
Capital One Capital V 10.25% 8/15/39	2,114		2,296
Citigroup, Inc.:
5.5% 4/11/13	20,020		21,461
6.125% 5/15/18	17,793		19,509
6.5% 8/19/13	1,317		1,452
JPMorgan Chase & Co. 4.95% 3/25/20	8,888		9,142
Prime Property Funding, Inc.:
5.125% 6/1/15 (d)	6,138		6,026
5.35% 4/15/12 (d)	1,530		1,554
5.5% 1/15/14 (d)	4,505		4,725
TECO Finance, Inc.:
4% 3/15/16	1,439		1,463
5.15% 3/15/20	2,067		2,140
ZFS Finance USA Trust II 6.45% 12/15/65 (d)(j)	3,532		3,603
ZFS Finance USA Trust IV 5.875% 5/9/62 (d)(j)	1,161		1,156
ZFS Finance USA Trust V 6.5% 5/9/67 (d)(j)	2,033		2,028
			101,151
Insurance - 1.8%
Allstate Corp. 6.2% 5/16/14	6,014		6,774
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Insurance - continued
Aon Corp.:
3.5% 9/30/15	$ 2,336		$ 2,345
5% 9/30/20	2,730		2,785
6.25% 9/30/40	1,748		1,810
Assurant, Inc. 5.625% 2/15/14	4,022		4,264
Axis Capital Holdings Ltd. 5.75% 12/1/14	6,279		6,774
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (d)(j)	10,398		10,658
Liberty Mutual Group, Inc.:
6.7% 8/15/16 (d)	7,459		8,063
10.75% 6/15/88 (d)(j)	4,022		5,239
Lincoln National Corp. 7% 5/17/66 (j)	1,136		1,130
Massachusetts Mutual Life Insurance Co. 8.875% 6/1/39 (d)	2,269		3,054
MetLife, Inc.:
5.875% 2/6/41	1,692		1,745
6.75% 6/1/16	4,485		5,176
Metropolitan Life Global Funding I:
5.125% 4/10/13 (d)	5,619		6,017
5.125% 6/10/14 (d)	3,959		4,299
Monumental Global Funding II 5.65% 7/14/11 (d)	3,801		3,850
New York Life Insurance Co. 6.75% 11/15/39 (d)	2,108		2,453
Northwestern Mutual Life Insurance Co. 6.063% 3/30/40 (d)	2,777		3,002
Pacific Life Global Funding 5.15% 4/15/13 (d)	4,733		5,035
Pacific Life Insurance Co. 9.25% 6/15/39 (d)	4,357		5,742
Prudential Financial, Inc.:
4.75% 9/17/15	7,348		7,869
7.375% 6/15/19	1,732		2,058
Symetra Financial Corp. 6.125% 4/1/16 (d)	4,900		5,122
Unum Group 5.625% 9/15/20	3,183		3,234
			108,498
Real Estate Investment Trusts - 1.0%
AvalonBay Communities, Inc.:
5.5% 1/15/12	770		799
6.125% 11/1/12	1,160		1,245
Camden Property Trust:
5.375% 12/15/13	1,818		1,948
5.875% 11/30/12	687		731
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Investment Trusts - continued
Developers Diversified Realty Corp.:
5.25% 4/15/11	$ 4,366		$ 4,383
5.375% 10/15/12	3,614		3,743
7.5% 4/1/17	2,623		3,000
9.625% 3/15/16	3,987		4,846
Duke Realty LP:
4.625% 5/15/13	317		329
5.875% 8/15/12	571		600
Equity One, Inc.:
6% 9/15/17	3,250		3,338
6.25% 12/15/14	2,985		3,202
6.25% 1/15/17	2,136		2,233
Federal Realty Investment Trust:
5.4% 12/1/13	2,627		2,833
5.9% 4/1/20	1,389		1,526
6% 7/15/12	1,579		1,672
6.2% 1/15/17	1,215		1,354
HRPT Properties Trust:
5.75% 11/1/15	1,378		1,463
6.65% 1/15/18	3,200		3,412
UDR, Inc. 5.5% 4/1/14	6,383		6,759
United Dominion Realty Trust, Inc. 5.25% 1/15/15	1,736		1,820
Washington (REIT) 5.95% 6/15/11	5,055		5,114
			56,350
Real Estate Management & Development - 2.1%
AMB Property LP:
5.9% 8/15/13	4,537		4,818
6.3% 6/1/13	4,607		4,953
BioMed Realty LP 6.125% 4/15/20	1,872		1,957
Brandywine Operating Partnership LP:
5.7% 5/1/17	2,243		2,338
5.75% 4/1/12	3,189		3,285
Colonial Properties Trust:
4.8% 4/1/11	384		385
5.5% 10/1/15	5,995		6,072
6.875% 8/15/12	3,309		3,466
Colonial Realty LP 6.05% 9/1/16	4,436		4,501
Digital Realty Trust LP 4.5% 7/15/15	2,667		2,749
Duke Realty LP:
5.4% 8/15/14	5,135		5,481
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Duke Realty LP: - continued
5.5% 3/1/16	$ 5,038		$ 5,254
5.625% 8/15/11	3,493		3,549
5.95% 2/15/17	1,536		1,646
6.25% 5/15/13	3,807		4,124
6.5% 1/15/18	5,065		5,588
ERP Operating LP:
4.75% 7/15/20	4,173		4,243
5.2% 4/1/13	6,349		6,802
5.5% 10/1/12	6,078		6,476
6.625% 3/15/12	1,111		1,173
Liberty Property LP:
4.75% 10/1/20	6,505		6,433
5.5% 12/15/16	3,158		3,421
6.375% 8/15/12	2,174		2,315
6.625% 10/1/17	3,709		4,257
Post Apartment Homes LP 6.3% 6/1/13	5,470		5,857
Reckson Operating Partnership LP 6% 3/31/16	1,224		1,287
Regency Centers LP 6.75% 1/15/12	5,856		6,047
Simon Property Group LP:
4.2% 2/1/15	2,019		2,127
5.1% 6/15/15	3,142		3,408
Tanger Properties LP:
6.125% 6/1/20	3,058		3,308
6.15% 11/15/15	9,117		9,836
			127,156
Thrifts & Mortgage Finance - 0.4%
Bank of America Corp.:
5.65% 5/1/18	14,862		15,705
6.5% 8/1/16	5,430		6,094
First Niagara Financial Group, Inc. 6.75% 3/19/20	4,247		4,615
			26,414
TOTAL FINANCIALS			665,748
HEALTH CARE - 0.2%
Health Care Providers & Services - 0.2%
Express Scripts, Inc.:
5.25% 6/15/12	4,236		4,442
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
HEALTH CARE - continued
Health Care Providers & Services - continued
Express Scripts, Inc.: - continued
6.25% 6/15/14	$ 1,557		$ 1,738
Medco Health Solutions, Inc. 4.125% 9/15/20	4,148		4,035
			10,215
INDUSTRIALS - 0.4%
Airlines - 0.3%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	72		72
Continental Airlines, Inc.:
6.545% 8/2/20	1,177		1,242
6.795% 2/2/20	408		411
Delta Air Lines, Inc. pass-thru trust certificates 6.821% 8/10/22	5,546		5,865
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	2,365		2,316
8.36% 7/20/20	8,048		8,181
			18,087
Transportation Infrastructure - 0.1%
BNSF Funding Trust I 6.613% 12/15/55 (j)	2,984		3,103
TOTAL INDUSTRIALS			21,190
INFORMATION TECHNOLOGY - 0.1%
Electronic Equipment & Components - 0.1%
Tyco Electronics Group SA:
5.95% 1/15/14	4,695		5,159
6.55% 10/1/17	2,421		2,790
			7,949
MATERIALS - 0.4%
Chemicals - 0.3%
Dow Chemical Co. 7.6% 5/15/14	13,026		15,127
Metals & Mining - 0.1%
ArcelorMittal SA 3.75% 3/1/16	1,580		1,573
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (d)	4,183		4,501
			6,074
TOTAL MATERIALS			21,201
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - 1.4%
Diversified Telecommunication Services - 0.9%
AT&T, Inc.:
6.3% 1/15/38	$ 9,973		$ 10,354
6.8% 5/15/36	8,295		9,115
BellSouth Capital Funding Corp. 7.875% 2/15/30	4,203		5,114
CenturyLink, Inc. 7.6% 9/15/39	3,890		4,106
Deutsche Telekom International Financial BV 5.875% 8/20/13	4,937		5,434
Telecom Italia Capital SA:
4.95% 9/30/14	5,297		5,443
5.25% 10/1/15	2,409		2,450
Telefonica Emisiones SAU:
5.462% 2/16/21	3,870		3,927
5.855% 2/4/13	1,287		1,374
Verizon Communications, Inc. 6.1% 4/15/18	6,019		6,776
			54,093
Wireless Telecommunication Services - 0.5%
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	8,998		9,679
5.875% 10/1/19	6,291		6,818
6.35% 3/15/40	1,971		2,010
Sprint Nextel Corp. 6% 12/1/16	10,058		10,033
			28,540
TOTAL TELECOMMUNICATION SERVICES			82,633
UTILITIES - 2.1%
Electric Utilities - 1.2%
Alabama Power Co. 3.375% 10/1/20	3,371		3,179
Cleveland Electric Illuminating Co. 5.65% 12/15/13	5,410		5,936
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (d)	8,975		9,287
Edison International 3.75% 9/15/17	3,716		3,688
EDP Finance BV 6% 2/2/18 (d)	7,773		7,636
FirstEnergy Corp. 7.375% 11/15/31	5,741		6,258
FirstEnergy Solutions Corp. 6.05% 8/15/21	2,439		2,551
Kentucky Utilities Co.:
3.25% 11/1/20 (d)	451		422
5.125% 11/1/40 (d)	3,219		3,120
LG&E and KU Energy LLC:
2.125% 11/15/15 (d)	4,231		4,055
3.75% 11/15/20 (d)	832		786
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
Louisville Gas & Electric Co. 5.125% 11/15/40 (d)	$ 966		$ 941
Pennsylvania Electric Co. 6.05% 9/1/17	4,923		5,368
Pepco Holdings, Inc. 2.7% 10/1/15	3,942		3,878
Progress Energy, Inc.:
4.4% 1/15/21	6,760		6,723
6% 12/1/39	3,028		3,177
Tampa Electric Co. 5.4% 5/15/21 (d)	2,109		2,274
			69,279
Gas Utilities - 0.0%
Southern Natural Gas Co. 5.9% 4/1/17 (d)	2,894		3,128
Independent Power Producers & Energy Traders - 0.4%
Duke Capital LLC 5.668% 8/15/14	6,310		6,934
Exelon Generation Co. LLC:
4% 10/1/20	4,789		4,456
5.35% 1/15/14	5,292		5,720
PPL Energy Supply LLC:
6.2% 5/15/16	2,534		2,795
6.5% 5/1/18	5,351		5,924
			25,829
Multi-Utilities - 0.5%
Consolidated Edison Co. of New York, Inc. 5.7% 6/15/40	2,011		2,114
Dominion Resources, Inc.:
6.3% 9/30/66 (j)	1,637		1,600
7.5% 6/30/66 (j)	3,654		3,800
National Grid PLC 6.3% 8/1/16	6,667		7,603
NiSource Finance Corp.:
5.4% 7/15/14	1,393		1,514
5.45% 9/15/20	1,461		1,522
6.25% 12/15/40	1,327		1,369
6.4% 3/15/18	4,529		5,085
Wisconsin Energy Corp. 6.25% 5/15/67 (j)	4,001		3,996
			28,603
TOTAL UTILITIES			126,839
TOTAL NONCONVERTIBLE BONDS (Cost $1,154,068)		1,222,097
U.S. Government and Government Agency Obligations - 40.1%
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - 0.3%
Tennessee Valley Authority 5.25% 9/15/39	$ 15,563		$ 16,297
U.S. Treasury Inflation Protected Obligations - 6.1%
U.S. Treasury Inflation-Indexed Bonds:
2.125% 2/15/40	36,279		37,863
2.125% 2/15/41	3,573		3,718
U.S. Treasury Inflation-Indexed Notes:
1.125% 1/15/21	129,274		130,656
1.375% 1/15/20	179,643		188,412
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			360,649
U.S. Treasury Obligations - 33.7%
U.S. Treasury Bonds:
3.875% 8/15/40	124,440		111,724
4.25% 11/15/40	118,939		114,070
4.375% 11/15/39	80,536		79,026
4.75% 2/15/41	8,950		9,332
U.S. Treasury Notes:
0.625% 1/31/13	270,324		270,187
1% 3/31/12	366,273		368,947
1.375% 11/30/15	238,143		231,092
2.125% 2/29/16	66,155		66,124
2.375% 9/30/14 (g)	83,800		86,471
2.625% 7/31/14	428,847		446,835
2.625% 11/15/20 (g)	45,720		42,766
3.625% 2/15/20	122,561		126,180
3.625% 2/15/21	45,640		46,432
TOTAL U.S. TREASURY OBLIGATIONS			1,999,186
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,367,811)		2,376,132
U.S. Government Agency - Mortgage Securities - 24.3%
Fannie Mae - 18.9%
2.59% 6/1/36 (j)	161		168
2.814% 2/1/35 (j)	3,004		3,157
2.999% 10/1/34 (j)	5,160		5,435
3% 1/1/26	30,997		30,214
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
3.5% 12/1/25 to 10/1/40	$ 22,171		$ 21,845
3.5% 3/1/26 (e)(f)	18,000		18,038
3.536% 7/1/37 (j)	445		467
4% 5/1/24 to 2/1/41	36,124		35,724
4% 3/1/26 (e)(f)	6,000		6,166
4% 3/1/41 (e)(f)	7,500		7,396
4% 3/1/41 (e)(f)	31,500		31,061
4.5% 6/1/24 to 11/1/40 (e)	53,406		54,594
4.5% 3/1/26 (e)	5,000		5,239
4.5% 3/1/41 (e)(f)	80,500		82,041
4.5% 3/1/41 (e)	17,000		17,325
4.5% 3/1/41 (e)	23,500		23,950
4.5% 3/1/41 (e)	3,500		3,567
4.5% 3/1/41 (e)	23,500		23,950
4.5% 3/1/41 (e)	24,000		24,459
4.5% 3/1/41 (e)	13,300		13,555
5% 4/1/18 to 9/1/40	117,063		123,496
5% 3/1/41 (e)(f)	70,000		73,314
5% 3/1/41 (e)(f)	52,000		54,462
5% 3/1/41 (e)(f)	29,000		30,373
5% 3/1/41 (e)(f)	29,000		30,373
5.5% 12/1/30 to 12/1/39	87,608		93,777
5.5% 3/1/41 (e)(f)	70,600		75,465
6% 7/1/21 to 9/1/39	93,515		101,926
6% 3/1/41 (e)(f)	88,500		96,191
6% 3/1/41 (e)	16,000		17,390
6.5% 5/1/31 to 9/1/38	11,527		12,954
TOTAL FANNIE MAE			1,118,072
Freddie Mac - 2.1%
2.546% 7/1/35 (j)	1,914		2,002
2.665% 8/1/35 (j)	5,708		5,989
3.352% 10/1/35 (j)	223		236
4.5% 7/1/25 to 10/1/40	4,006		4,122
4.5% 3/1/41 (e)	24,000		24,435
4.5% 3/1/41 (e)	18,000		18,326
5% 9/1/39 to 9/1/40	24,482		25,683
5.5% 10/1/38	22,260		23,760
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
6% 7/1/37 to 8/1/37	$ 4,840		$ 5,269
6% 3/1/41 (e)	14,000		15,209
TOTAL FREDDIE MAC			125,031
Ginnie Mae - 3.3%
4% 1/15/25 to 10/20/25	30,661		32,046
4.5% 12/15/33 to 2/15/41 (f)	86,063		89,065
5% 3/1/41 (e)(f)	26,000		27,605
5% 3/1/41 (e)	17,000		18,049
5% 3/1/41 (e)	15,000		15,926
5.5% 12/20/28 to 12/15/38	11,099		12,080
TOTAL GINNIE MAE			194,771
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $1,430,783)		1,437,874
Asset-Backed Securities - 1.6%
Accredited Mortgage Loan Trust Series 2005-1 Class M1, 0.7315% 4/25/35 (j)	1,084		811
ACE Securities Corp. Home Equity Loan Trust:
Series 2004-HE1:
Class M1, 1.0115% 3/25/34 (j)	35		34
Class M2, 1.9115% 3/25/34 (j)	219		178
Series 2005-HE2 Class M2, 0.7115% 4/25/35 (j)	108		101
Series 2006-OP1:
Class M4, 0.6315% 4/25/36 (j)	108		1
Class M5, 0.6515% 4/25/36 (j)	6		0*
Advanta Business Card Master Trust:
Series 2006-C1 Class C1, 0.742% 10/20/14 (j)	32		6
Series 2007-D1 Class D, 1.662% 1/22/13 (d)(j)	6,136		61
Airspeed Ltd. Series 2007-1A Class C1, 2.7658% 6/15/32 (d)(j)	6,122		2,816
Ally Master Owner Trust:
Series 2010-3 Class A, 2.88% 4/15/15 (d)	4,884		5,008
Series 2011-1 Class A2, 2.15% 1/15/16	16,042		16,018
AmeriCredit Prime Automobile Receivables Trust Series 2007-1:
Class D, 5.62% 9/8/14	648		665
Class E, 6.96% 3/8/16 (d)	2,566		2,626
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Ameriquest Mortgage Securities, Inc. pass-thru certificates:
Series 2003-10 Class M1, 0.9615% 12/25/33 (j)	$ 61		$ 52
Series 2004-R2 Class M3, 0.8115% 4/25/34 (j)	85		22
Series 2005-R2 Class M1, 0.7115% 4/25/35 (j)	1,307		1,122
Argent Securities, Inc. pass-thru certificates:
Series 2003-W7 Class A2, 1.04% 3/25/34 (j)	30		24
Series 2004-W7 Class M1, 0.8115% 5/25/34 (j)	808		559
Series 2006-W4 Class A2C, 0.4215% 5/25/36 (j)	883		316
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2004-HE2 Class M1, 1.0865% 4/25/34 (j)	1,690		1,373
Series 2006-HE2 Class M1, 0.6315% 3/25/36 (j)	149		4
Axon Financial Funding Ltd. 2.025% 4/4/17 (b)(d)(j)	5,160		0*
Bank of America Auto Trust Series 2009-1A Class A4, 3.52% 6/15/16 (d)	4,230		4,381
Brazos Higher Education Authority, Inc. Student Loan Rev. Series 2006 A2R, 1.0528% 12/1/41 (j)	385		385
Brazos Higher Education Authority, Inc. Series 2006-2 Class A9, 0.3128% 12/26/24 (j)	1,028		931
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (j)	75		75
Capital Auto Receivables Asset Trust:
Series 2006-2:
Class B, 5.07% 12/15/11	62		62
Class C, 5.31% 6/15/12	742		752
Series 2007-1 Class C, 5.38% 11/15/12	264		274
Capital Trust Ltd. Series 2004-1:
Class A2, 0.712% 7/20/39 (d)(j)	363		272
Class B, 1.012% 7/20/39 (d)(j)	355		163
Class C, 1.362% 7/20/39 (d)(j)	456		68
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	535		544
Carrington Mortgage Loan Trust:
Series 2006-FRE1 Class M1, 0.5615% 7/25/36 (j)	722		46
Series 2006-NC2 Class M7, 1.1115% 6/25/36 (j)	572		2
Series 2006-NC4 Class M1, 0.5615% 10/25/36 (j)	127		10
Series 2006-RFC1 Class M9, 2.1315% 5/25/36 (j)	251		15
Series 2007-RFC1 Class A3, 0.4015% 12/25/36 (j)	1,140		429
Citigroup Mortgage Loan Trust Series 2007-AMC4 Class M1, 0.5315% 5/25/37 (j)	484		75
Countrywide Asset-Backed Certificates Trust:
Series 2007-11 Class 2A1, 0.3215% 6/25/47 (j)	31		31
Series 2007-4 Class A1A, 0.36% 9/25/37 (j)	226		216
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Countrywide Home Loan Trust Series 2006-13 Class N, 7% 8/25/37 (d)	$ 1,666		$ 0
Countrywide Home Loans, Inc.:
Series 2003-BC1 Class B1, 5.5106% 3/25/32 (MGIC Investment Corp. Insured) (j)	61		23
Series 2004-3 Class M4, 1.2315% 4/25/34 (j)	101		42
Series 2004-4 Class M2, 1.0565% 6/25/34 (j)	372		213
Series 2005-3 Class MV1, 0.6815% 8/25/35 (j)	538		515
Series 2005-AB1 Class A2, 0.4715% 8/25/35 (j)	63		62
CPS Auto Receivables Trust Series 2006-D Class A4, 5.115% 8/15/13 (FSA Insured) (d)	241		245
Fannie Mae subordinate REMIC pass-thru certificates Series 2004-T5 Class AB3, 0.6842% 5/28/35 (j)	25		18
Fieldstone Mortgage Investment Corp.:
Series 2004-3 Class M5, 2.4365% 8/25/34 (j)	231		133
Series 2006-3 Class 2A3, 0.4215% 11/25/36 (j)	3,565		1,319
First Franklin Mortgage Loan Trust Series 2004-FF2 Class M3, 1.0865% 3/25/34 (j)	14		4
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (d)	2,736		2,745
Series 2006-C:
Class B, 5.3% 6/15/12	409		415
Class D, 6.89% 5/15/13 (d)	1,938		1,976
Series 2007-A Class D, 7.05% 12/15/13 (d)	1,100		1,154
Ford Credit Floorplan Master Owner Trust:
Series 2006-4 Class B, 0.8158% 6/15/13 (j)	488		487
Series 2010-1 Class A, 1.9158% 12/15/14 (d)(j)	4,254		4,338
Series 2010-5 Class A1, 1.5% 9/15/15	5,563		5,516
Franklin Auto Trust:
Series 2006-1 Class B, 5.14% 7/21/14	28		28
Series 2007-1:
Class A4, 5.03% 2/16/15	116		116
Class C, 5.43% 2/16/15	279		278
Fremont Home Loan Trust:
Series 2005-A:
Class M3, 0.7515% 1/25/35 (j)	600		297
Class M4, 0.9415% 1/25/35 (j)	231		73
Series 2006-D Class M1, 0.4915% 11/25/36 (j)	169		5
GCO Education Loan Funding Master Trust II Series 2007-1A Class C1L, 0.6915% 2/25/47 (d)(j)	2,174		1,283
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (d)	1,344		1,070
GE Business Loan Trust:
Series 2003-1 Class A, 0.6958% 4/15/31 (d)(j)	156		146
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
GE Business Loan Trust: - continued
Series 2006-2A:
Class A, 0.4458% 11/15/34 (d)(j)	$ 1,183		$ 982
Class B, 0.5458% 11/15/34 (d)(j)	429		279
Class C, 0.6458% 11/15/34 (d)(j)	709		355
Class D, 1.0158% 11/15/34 (d)(j)	339		81
Goal Capital Funding Trust Series 2007-1 Class C1, 0.7028% 6/25/42 (j)	421		351
GS Auto Loan Trust Series 2007-1:
Class B, 5.53% 12/15/14	22		23
Class C, 5.74% 12/15/14	20		20
GSAMP Trust:
Series 2004-AR1:
Class B4, 5% 6/25/34 (d)(j)	279		56
Class M1, 0.9115% 6/25/34 (j)	1,630		1,140
Series 2007-HE1 Class M1, 0.5115% 3/25/47 (j)	660		38
Guggenheim Structured Real Estate Funding Ltd.:
Series 2005-1 Class C, 1.3415% 5/25/30 (d)(j)	63		32
Series 2006-3:
Class B, 0.6615% 9/25/46 (d)(j)	519		260
Class C, 0.8115% 9/25/46 (d)(j)	1,211		291
Home Equity Asset Trust:
Series 2003-2 Class M1, 1.5815% 8/25/33 (j)	198		144
Series 2003-3 Class M1, 1.5515% 8/25/33 (j)	495		411
Series 2003-5 Class A2, 0.9615% 12/25/33 (j)	21		15
Series 2005-5 Class 2A2, 0.5115% 11/25/35 (j)	58		57
Series 2006-1 Class 2A3, 0.4865% 4/25/36 (j)	791		771
Series 2006-8 Class 2A1, 0.3115% 3/25/37 (j)	3		3
HSBC Home Equity Loan Trust Series 2006-2 Class M2, 0.552% 3/20/36 (j)	464		387
HSI Asset Securitization Corp. Trust Series 2007-HE1 Class 2A3, 0.4515% 1/25/37 (j)	913		384
JPMorgan Mortgage Acquisition Trust:
Series 2006-NC2 Class M2, 0.5615% 7/25/36 (j)	116		5
Series 2007-CH1:
Class AV4, 0.3915% 11/25/36 (j)	913		785
Class MV1, 0.4915% 11/25/36 (j)	741		491
Series 2007-CH3 Class M1, 0.5615% 3/25/37 (j)	326		17
Keycorp Student Loan Trust:
Series 1999-A Class A2, 0.6328% 12/27/29 (j)	474		407
Series 2006-A Class 2C, 1.4528% 3/27/42 (j)	1,605		296
Long Beach Auto Receivables Trust Series 2007-A Class A4, 5.025% 1/15/14 (FSA Insured)	901		911
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Long Beach Mortgage Loan Trust Series 2004-2 Class M2, 1.3415% 6/25/34 (j)	$ 60		$ 38
Marriott Vacation Club Owner Trust Series 2006-2A:
Class B, 5.442% 10/20/28 (d)	16		15
Class C, 5.691% 10/20/28 (d)	7		7
Class D, 6.01% 10/20/28 (d)	69		57
MASTR Asset Backed Securities Trust:
Series 2006-AM3 Class M1, 0.5215% 10/25/36 (j)	327		18
Series 2007-HE1 Class M1, 0.5615% 5/25/37 (j)	496		26
Meritage Mortgage Loan Trust Series 2004-1 Class M1, 1.0115% 7/25/34 (j)	83		55
Merrill Auto Trust Securitization Series 2007-1 Class B, 5.79% 12/15/13	49		50
Merrill Lynch Mortgage Investors Trust:
Series 2003-OPT1 Class M1, 0.9115% 7/25/34 (j)	299		234
Series 2006-FM1 Class A2B, 0.3715% 4/25/37 (j)	1,225		1,120
Series 2006-MLN1 Class A2A, 0.3315% 7/25/37 (j)	6		6
Series 2006-OPT1 Class A1A, 0.5215% 6/25/35 (j)	1,741		1,429
Morgan Stanley ABS Capital I Trust:
Series 2004-HE6 Class A2, 0.6015% 8/25/34 (j)	36		30
Series 2004-NC8 Class M6, 1.5115% 9/25/34 (j)	101		42
Series 2005-NC1 Class M1, 0.7015% 1/25/35 (j)	253		179
Series 2005-NC2 Class B1, 1.4315% 3/25/35 (j)	264		40
Series 2007-HE2 Class M1, 0.5115% 1/25/37 (j)	150		4
National Collegiate Student Loan Trust:
Series 2004-2 Class AIO, 9.75% 10/25/14 (l)	6,600		908
Series 2006-1 Class AIO, 5.5% 4/25/11 (l)	8,938		69
Series 2006-2 Class AIO, 6% 8/25/11 (l)	5,162		106
Series 2006-3 Class AIO, 7.1% 1/25/12 (l)	27,151		1,222
Series 2006-4:
Class A1, 0.2915% 3/25/25 (j)	81		80
Class AIO, 6.35% 2/27/12 (l)	20,073		1,068
Class D, 1.3615% 5/25/32 (j)	1,227		29
Series 2007-1 Class AIO, 7.27% 4/25/12 (l)	23,975		1,798
Series 2007-2 Class AIO, 6.7% 7/25/12 (l)	17,719		1,479
New Century Home Equity Loan Trust:
Series 2005-4 Class M2, 0.7715% 9/25/35 (j)	903		598
Series 2005-D Class M2, 0.7315% 2/25/36 (j)	429		39
Ocala Funding LLC:
Series 2005-1A Class A, 1.7535% 3/20/49 (b)(d)(j)	449		0
Series 2006-1A Class A, 1.662% 3/20/49 (b)(d)(j)	933		0
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (j)	$ 36		$ 35
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (j)	79		77
Park Place Securities, Inc.:
Series 2004-WCW1:
Class M3, 1.5115% 9/25/34 (j)	337		214
Class M4, 1.7115% 9/25/34 (j)	433		202
Series 2005-WCH1:
Class M2, 0.7815% 1/25/36 (j)	1,296		1,201
Class M3, 0.8215% 1/25/36 (j)	302		214
Class M4, 1.0915% 1/25/36 (j)	935		386
Series 2005-WHQ2:
Class M7, 1.5115% 5/25/35 (j)	1,149		29
Class M9, 2.1415% 5/25/35 (j)	16		0*
Providian Master Note Trust Series 2006-C1A Class C1, 0.8158% 3/15/15 (d)(j)	1,928		1,927
Residential Asset Mortgage Products, Inc. Series 2006-EFC2 Class M1, 0.4915% 12/25/36 (j)	407		13
Residential Asset Securities Corp. Series 2007-KS2 Class AI1, 0.3315% 2/25/37 (j)	34		33
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0615% 4/25/33 (j)	3		3
Saxon Asset Securities Trust Series 2004-1 Class M1, 1.0565% 3/25/35 (j)	966		800
Securitized Asset Backed Receivables LLC Trust:
Series 2005-FR4 Class B3, 1.9815% 1/25/36 (j)	42		1
Series 2006-FR4 Class A2A, 0.3415% 8/25/36 (j)	21		9
Series 2007-NC1 Class A2A, 0.3115% 12/25/36 (j)	7		7
Sierra Receivables Funding Co. Series 2007-1A Class A2, 0.4106% 3/20/19 (FGIC Insured) (d)(j)	447		421
SLM Private Credit Student Loan Trust Series 2004-A Class C, 1.2516% 6/15/33 (j)	805		71
Specialty Underwriting & Residential Finance Trust Series 2006-AB2 Class N1, 5.75% 6/25/37 (d)	374		0
Structured Asset Investment Loan Trust Series 2004-8 Class M5, 1.4115% 9/25/34 (j)	56		23
SVO VOI Mortgage Corp. Series 2006-AA Class A, 5.28% 2/20/24 (d)	382		393
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.1215% 9/25/34 (j)	18		14
Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 0.8628% 4/6/42 (d)(j)	1,713		51
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Triad Auto Receivables Owner Trust Series 2006-C Class A4, 5.31% 5/13/13 (AMBAC Insured)	$ 249		$ 252
WaMu Asset Holdings Corp. Series 2006-8 Class N1, 6.048% 10/25/46 (d)	704		0
WaMu Master Note Trust Series 2006-C2A Class C2, 0.7658% 8/15/15 (d)(j)	5,126		5,109
Wells Fargo Home Equity Trust Series 2004-3 Class A, 4.5% 11/27/34 (a)(d)	6		0
Whinstone Capital Management Ltd. Series 1A Class B3, 2.1031% 10/25/44 (d)(j)	1,419		639
TOTAL ASSET-BACKED SECURITIES (Cost $96,256)		94,891
Collateralized Mortgage Obligations - 1.4%
Private Sponsor - 1.4%
Arran Residential Mortgages Funding No. 1 PLC floater Series 2006-1A Class DB, 0.7331% 4/12/56 (d)(j)	904		897
Banc of America Commercial Mortgage Trust Series 2007-2:
Class B, 5.6983% 4/10/49 (j)	896		442
Class C, 5.6983% 4/10/49 (j)	2,392		1,034
Class D, 5.6983% 4/10/49 (j)	1,197		435
Banc of America Funding Corp. sequential payer Series 2010-R4 Class 2A1, 4.5% 3/26/37 (d)	3,128		3,188
Banc of America Mortgage Securities, Inc.:
Series 2003-L Class 2A1, 2.9055% 1/25/34 (j)	901		851
Series 2004-1 Class 2A2, 3.2375% 10/25/34 (j)	955		867
Series 2004-A Class 2A2, 2.9991% 2/25/34 (j)	124		111
Series 2004-B:
Class 1A1, 2.9237% 3/25/34 (j)	75		68
Class 2A2, 3.0527% 3/25/34 (j)	563		542
Series 2004-D Class 2A2, 2.9567% 5/25/34 (j)	842		773
Series 2004-G Class 2A7, 3.0214% 8/25/34 (j)	777		700
Series 2004-H Class 2A1, 3.1667% 9/25/34 (j)	696		631
Bayview Commercial Asset Trust Series 2006-3A Class IO, 3.2127% 10/25/36 (d)(j)(l)	32,855		2,398
Bear Stearns ALT-A Trust floater Series 2005-1 Class A1, 0.5415% 1/25/35 (j)	1,363		1,134
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T24 Class X2, 0.4264% 10/12/41 (d)(j)(l)	2,101		24
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Chase Mortgage Finance Trust:
Series 2007-A1 Class 1A5, 2.9853% 2/25/37 (j)	$ 840		$ 835
Series 2007-A2 Class 2A1, 3.0618% 7/25/37 (j)	1,004		1,006
Citigroup Commercial Mortgage Trust Series 2008-C7 Class A2B, 6.0995% 12/10/49 (j)	1,095		1,158
Citigroup Mortgage Loan Trust Series 2004-UST1 Class A4, 2.4204% 8/25/34 (j)	720		715
Cobalt CMBS Commercial Mortgage Trust Series 2007-C2 Class B, 5.617% 4/15/47 (j)	1,223		550
COMM pass-thru certificates floater Series 2001-J2A Class A2F, 0.7648% 7/16/34 (d)(j)	817		815
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 2.9234% 11/25/34 (j)	989		926
Credit Suisse Mortgage Capital Certificates sequential payer Series 2010-16 Class A1, 3% 6/25/50 (d)	4,396		4,352
First Horizon Mortgage pass-thru Trust Series 2004-AR5 Class 2A1, 2.8757% 10/25/34 (j)	871		842
Fosse Master Issuer PLC floater Series 2006-1A:
Class B2, 0.4631% 10/18/54 (d)(j)	2,097		2,085
Class C2, 0.7731% 10/18/54 (d)(j)	703		697
Class M2, 0.5531% 10/18/54 (d)(j)	1,204		1,182
Gracechurch Mortgage Financing PLC floater Series 2006-1 Class D2, 0.7825% 11/20/56 (d)(j)	1,711		1,670
Granite Master Issuer PLC floater:
Series 2005-4 Class C2, 1.363% 12/20/54 (j)	117		76
Series 2006-1A Class C2, 1.463% 12/20/54 (d)(j)	5,059		3,255
Series 2006-2 Class C1, 0.733% 12/20/54 (j)	4,271		2,748
Series 2006-3 Class C2, 0.763% 12/20/54 (j)	890		573
Series 2006-4:
Class B1, 0.353% 12/20/54 (j)	2,694		2,223
Class C1, 0.643% 12/20/54 (j)	2,064		1,328
Class M1, 0.433% 12/20/54 (j)	710		536
Series 2007-1:
Class 1C1, 0.863% 12/20/54 (j)	1,688		1,086
Class 1M1, 0.563% 12/20/54 (j)	894		675
Class 2C1, 1.223% 12/20/54 (j)	768		494
Class 2M1, 0.763% 12/20/54 (j)	1,148		867
Series 2007-2 Class 2C1, 0.694% 12/17/54 (j)	1,992		1,282
Granite Mortgages PLC floater Series 2003-3 Class 1C, 2.7531% 1/20/44 (j)	341		256
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
GSR Mortgage Loan Trust Series 2007-AR2 Class 2A1, 2.9085% 4/25/35 (j)	$ 369		$ 320
Harborview Mortgage Loan Trust floater Series 2005-2 Class 2A1A, 0.482% 5/19/35 (j)	232		155
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class A3, 5.447% 6/12/47 (j)	2,077		2,150
JPMorgan Mortgage Trust:
sequential payer Series 2006-A5 Class 3A5, 5.9004% 8/25/36 (j)	1,303		1,089
Series 2004-A3 Class 4A1, 4.29% 7/25/34 (j)	840		814
Series 2006-A2 Class 5A1, 2.9739% 11/25/33 (j)	952		915
LB-UBS Commercial Mortgage Trust sequential payer Series 2006-C6 Class A4, 5.372% 9/15/39	492		529
MASTR Adjustable Rate Mortgages Trust Series 2007-3 Class 22A2, 0.4715% 5/25/47 (j)	640		442
MASTR Asset Backed Securities Trust Series 2006-NC3 Class M1, 0.4915% 10/25/36 (j)	228		1
Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 0.4315% 2/25/37 (j)	1,091		784
Merrill Lynch Floating Trust floater Series 2006-1:
Class B, 0.436% 6/15/22 (d)(j)	190		179
Class C, 0.456% 6/15/22 (d)(j)	936		831
Class D, 0.466% 6/15/22 (d)(j)	452		386
Class E, 0.476% 6/15/22 (d)(j)	576		485
Class F, 0.506% 6/15/22 (d)(j)	955		790
Class G, 0.576% 6/15/22 (d)(j)	271		220
Class H, 0.596% 6/15/22 (d)(j)	433		345
Class J, 0.636% 6/15/22 (d)(j)	505		380
Merrill Lynch Mortgage Investors Trust:
Series 2004-A4 Class A1, 2.7866% 8/25/34 (j)	1,121		1,069
Series 2005-A2 Class A7, 2.6496% 2/25/35 (j)	766		716
Series 2006-A6 Class A4, 3.1889% 10/25/33 (j)	742		714
Opteum Mortgage Acceptance Corp. floater Series 2005-3 Class APT, 0.5515% 7/25/35 (j)	1,445		1,184
Option One Mortgage Loan Trust floater Series 2007-CP1 Class M1, 0.5615% 3/25/37 (j)	1,797		117
Provident Funding Mortgage Loan Trust Series 2005-2 Class 3A, 2.81% 10/25/35 (j)	2,587		2,264
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B:
Class B5, 2.614% 7/10/35 (d)(j)	923		750
Class B6, 3.114% 7/10/35 (d)(j)	1,223		937
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Residential Asset Mortgage Products, Inc. sequential payer:
Series 2003-SL1 Class A31, 7.125% 4/25/31	$ 497		$ 522
Series 2004-SL3 Class A1, 7% 8/25/16	26		26
Residential Funding Securities Corp. floater Series 2003-RP2 Class A1, 0.7115% 6/25/33 (d)(j)	237		194
Salomon Brothers Mortgage Securities VII, Inc. Series 2006-C2 Class H, 6.308% 7/18/33 (d)	194		193
Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 0.8997% 7/20/34 (j)	25		19
Structured Asset Securities Corp.:
Series 2003-15A Class 4A, 5.3732% 4/25/33 (j)	327		317
Series 2003-20 Class 1A1, 5.5% 7/25/33	249		255
TBW Mortgage-Backed pass-thru certificates floater Series 2006-4 Class A3, 0.46% 9/25/36 (j)	2,073		1,475
WaMu Mortgage pass-thru certificates:
Series 2003-AR8 Class A, 2.7159% 8/25/33 (j)	569		541
Series 2005-AR3 Class A2, 2.7112% 3/25/35 (j)	1,519		1,367
Wells Fargo Mortgage Backed Securities Trust:
Series 2004-W Class A9, 2.7616% 11/25/34 (j)	1,734		1,670
Series 2005-AR12 Class 2A6, 2.8181% 7/25/35 (j)	1,901		1,803
Series 2005-AR2 Class 2A2, 2.8076% 3/25/35 (j)	1,276		1,194
Series 2005-AR3 Class 2A1, 2.8794% 3/25/35 (j)	1,047		956
Series 2006-AR8 Class 3A1, 2.8958% 4/25/36 (j)	10,658		9,725
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $67,220)		85,150
Commercial Mortgage Securities - 7.3%
Asset Securitization Corp. Series 1997-D5:
Class A2, 7.0685% 2/14/43 (j)	805		857
Class A3, 7.1185% 2/14/43 (j)	869		939
Class A6, 7.4385% 2/14/43 (j)	1,281		1,361
Class PS1, 1.4561% 2/14/43 (j)(l)	4,082		97
Banc of America Commercial Mortgage Trust:
sequential payer:
Series 2006-2 Class AAB, 5.7218% 5/10/45 (j)	1,279		1,377
Series 2006-3 Class A4, 5.889% 7/10/44 (j)	6,816		7,449
Series 2006-6 Class A3, 5.369% 10/10/45	2,190		2,271
Series 2007-2 Class A1, 5.421% 4/10/49	60		61
Series 2007-4 Class A3, 5.8093% 2/10/51 (j)	1,092		1,152
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Banc of America Commercial Mortgage Trust: - continued
sequential payer:
Series 2006-6 Class E, 5.619% 10/10/45 (d)	$ 633		$ 182
Series 2007-3:
Class A3, 5.6579% 6/10/49 (j)	1,828		1,906
Class A4, 5.6579% 6/10/49 (j)	2,283		2,438
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2001-1 Class A4, 5.451% 1/15/49	2,398		2,555
Series 2004-2:
Class A3, 4.05% 11/10/38	227		230
Class A4, 4.153% 11/10/38	1,389		1,433
Series 2005-1 Class A3, 4.877% 11/10/42	998		1,000
Series 2006-1 Class A1, 5.219% 9/10/45 (j)	79		79
Series 2001-3 Class H, 6.562% 4/11/37 (d)	612		620
Series 2001-PB1:
Class J, 7.166% 5/11/35 (d)	343		338
Class K, 6.15% 5/11/35 (d)	509		485
Series 2005-3 Series A3B, 5.09% 7/10/43 (j)	3,402		3,532
Series 2007-1 Class B, 5.543% 1/15/49	659		529
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class C, 0.5758% 3/15/22 (d)(j)	470		461
Class D, 0.6258% 3/15/22 (d)(j)	476		443
Class E, 0.6658% 3/15/22 (d)(j)	393		358
Class F, 0.7358% 3/15/22 (d)(j)	489		435
Class G, 0.7958% 3/15/22 (d)(j)	317		275
Series 2006-BIX1:
Class C, 0.4458% 10/15/19 (d)(j)	704		679
Class D, 0.4758% 10/15/19 (d)(j)	860		804
Class E, 0.5058% 10/15/19 (d)(j)	797		725
Class F, 0.5758% 10/15/19 (d)(j)	1,885		1,658
Class G, 0.5958% 10/15/19 (d)(j)	759		638
Bayview Commercial Asset Trust:
floater:
Series 2003-2 Class M1, 1.1115% 12/25/33 (d)(j)	61		44
Series 2004-1:
Class A, 0.6215% 4/25/34 (d)(j)	782		692
Class B, 2.1615% 4/25/34 (d)(j)	87		49
Class M1, 0.8215% 4/25/34 (d)(j)	88		68
Class M2, 1.4615% 4/25/34 (d)(j)	81		57
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2004-2:
Class A, 0.6915% 8/25/34 (d)(j)	$ 637		$ 554
Class M1, 0.8415% 8/25/34 (d)(j)	145		107
Series 2004-3:
Class A1, 0.6315% 1/25/35 (d)(j)	1,428		1,228
Class A2, 0.6815% 1/25/35 (d)(j)	205		154
Class M1, 0.7615% 1/25/35 (d)(j)	247		178
Class M2, 1.2615% 1/25/35 (d)(j)	124		84
Series 2005-2A:
Class A1, 0.5715% 8/25/35 (d)(j)	1,092		890
Class M1, 0.6915% 8/25/35 (d)(j)	72		48
Class M2, 0.7415% 8/25/35 (d)(j)	95		59
Class M3, 0.7615% 8/25/35 (d)(j)	66		40
Class M4, 0.8715% 8/25/35 (d)(j)	60		34
Series 2005-3A:
Class A1, 0.5815% 11/25/35 (d)(j)	436		355
Class A2, 0.6615% 11/25/35 (d)(j)	407		322
Class M1, 0.7015% 11/25/35 (d)(j)	109		72
Class M2, 0.7515% 11/25/35 (d)(j)	82		51
Class M3, 0.7715% 11/25/35 (d)(j)	73		42
Class M4, 0.8615% 11/25/35 (d)(j)	92		49
Series 2005-4A:
Class A2, 0.6515% 1/25/36 (d)(j)	1,004		783
Class B1, 1.6615% 1/25/36 (d)(j)	109		41
Class M1, 0.7115% 1/25/36 (d)(j)	324		215
Class M2, 0.7315% 1/25/36 (d)(j)	122		76
Class M3, 0.7615% 1/25/36 (d)(j)	178		101
Class M4, 0.8715% 1/25/36 (d)(j)	98		51
Class M5, 0.9115% 1/25/36 (d)(j)	98		47
Class M6, 0.9615% 1/25/36 (d)(j)	105		43
Series 2006-1:
Class A2, 0.6215% 4/25/36 (d)(j)	193		155
Class M1, 0.6415% 4/25/36 (d)(j)	117		76
Class M2, 0.6615% 4/25/36 (d)(j)	124		76
Class M3, 0.6815% 4/25/36 (d)(j)	107		61
Class M4, 0.7815% 4/25/36 (d)(j)	60		32
Class M5, 0.8215% 4/25/36 (d)(j)	59		28
Class M6, 0.9015% 4/25/36 (d)(j)	117		53
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2006-2A:
Class A1, 0.4915% 7/25/36 (d)(j)	$ 2,674		$ 2,139
Class A2, 0.5415% 7/25/36 (d)(j)	173		131
Class B1, 1.1315% 7/25/36 (d)(j)	110		39
Class B3, 2.9615% 7/25/36 (d)(j)	98		25
Class M1, 0.5715% 7/25/36 (d)(j)	181		103
Class M2, 0.5915% 7/25/36 (d)(j)	128		68
Class M3, 0.6115% 7/25/36 (d)(j)	106		51
Class M4, 0.6815% 7/25/36 (d)(j)	121		52
Class M5, 0.7315% 7/25/36 (d)(j)	88		36
Class M6, 0.8015% 7/25/36 (d)(j)	131		47
Series 2006-3A:
Class B1, 1.0615% 10/25/36 (d)(j)	117		21
Class B2, 1.6115% 10/25/36 (d)(j)	143		21
Class B3, 2.8615% 10/25/36 (d)(j)	137		16
Class M4, 0.6915% 10/25/36 (d)(j)	129		48
Class M5, 0.7415% 10/25/36 (d)(j)	154		51
Class M6, 0.8215% 10/25/36 (d)(j)	302		76
Series 2006-4A:
Class A1, 0.4915% 12/25/36 (d)(j)	507		408
Class A2, 0.5315% 12/25/36 (d)(j)	2,574		1,930
Class B1, 0.9615% 12/25/36 (d)(j)	160		28
Class B2, 1.5115% 12/25/36 (d)(j)	164		25
Class B3, 2.7115% 12/25/36 (d)(j)	172		20
Class M1, 0.5515% 12/25/36 (d)(j)	207		120
Class M2, 0.5715% 12/25/36 (d)(j)	138		75
Class M3, 0.6015% 12/25/36 (d)(j)	140		69
Class M4, 0.6615% 12/25/36 (d)(j)	168		74
Class M5, 0.7015% 12/25/36 (d)(j)	153		64
Class M6, 0.7815% 12/25/36 (d)(j)	138		51
Series 2007-1:
Class A2, 0.5315% 3/25/37 (d)(j)	555		394
Class B1, 0.9315% 3/25/37 (d)(j)	221		44
Class B2, 1.4115% 3/25/37 (d)(j)	160		26
Class B3, 3.6115% 3/25/37 (d)(j)	351		39
Class M1, 0.5315% 3/25/37 (d)(j)	195		94
Class M2, 0.5515% 3/25/37 (d)(j)	146		63
Class M3, 0.5815% 3/25/37 (d)(j)	193		73
Class M4, 0.6315% 3/25/37 (d)(j)	157		55
Class M5, 0.6815% 3/25/37 (d)(j)	163		51
Class M6, 0.7615% 3/25/37 (d)(j)	227		57
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2007-2A:
Class A1, 0.5315% 7/25/37 (d)(j)	$ 1,405		$ 1,040
Class A2, 0.5815% 7/25/37 (d)(j)	1,316		645
Class B1, 1.8615% 7/25/37 (d)(j)	394		51
Class B2, 2.5115% 7/25/37 (d)(j)	343		41
Class B3, 3.6115% 7/25/37 (d)(j)	385		35
Class M1, 0.6315% 7/25/37 (d)(j)	449		142
Class M2, 0.6715% 7/25/37 (d)(j)	293		85
Class M3, 0.7515% 7/25/37 (d)(j)	296		73
Class M4, 0.9115% 7/25/37 (d)(j)	492		88
Class M5, 1.0115% 7/25/37 (d)(j)	434		65
Class M6, 1.2615% 7/25/37 (d)(j)	551		77
Series 2007-3:
Class A2, 0.5515% 7/25/37 (d)(j)	553		370
Class B1, 1.2115% 7/25/37 (d)(j)	333		43
Class B2, 1.8615% 7/25/37 (d)(j)	858		86
Class B3, 4.2615% 7/25/37 (d)(j)	445		36
Class M1, 0.5715% 7/25/37 (d)(j)	293		132
Class M2, 0.6015% 7/25/37 (d)(j)	313		110
Class M3, 0.6315% 7/25/37 (d)(j)	504		151
Class M4, 0.7615% 7/25/37 (d)(j)	794		222
Class M5, 0.8615% 7/25/37 (d)(j)	402		88
Class M6, 1.0615% 7/25/37 (d)(j)	305		61
Series 2007-4A:
Class B1, 2.8115% 9/25/37 (d)(j)	240		8
Class B2, 3.7115% 9/25/37 (d)(j)	695		17
Class M1, 1.2115% 9/25/37 (d)(j)	232		35
Class M2, 1.3115% 9/25/37 (d)(j)	232		28
Class M4, 1.8615% 9/25/37 (d)(j)	471		42
Class M5, 2.0115% 9/25/37 (d)(j)	471		33
Class M6, 2.2115% 9/25/37 (d)(j)	472		28
Series 2004-1 Class IO, 1.25% 4/25/34 (d)(l)	3,052		107
Series 2007-5A Class IO, 3.047% 10/25/37 (d)(j)(l)	7,307		867
Bear Stearns Commercial Mortgage Securities Trust:
floater:
Series 2006-BBA7:
Class G, 0.7058% 3/15/19 (d)(j)	510		426
Class H, 0.9158% 3/15/19 (d)(j)	429		319
Class J, 1.1158% 3/15/19 (d)(j)	323		229
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bear Stearns Commercial Mortgage Securities Trust: - continued
floater:
Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (d)(j)	$ 489		$ 401
Class E, 0.5658% 3/15/22 (d)(j)	2,030		1,563
Class F, 0.6158% 3/15/22 (d)(j)	1,246		897
Class G, 0.6658% 3/15/22 (d)(j)	401		277
Class H, 0.8158% 3/15/22 (d)(j)	489		308
Class J, 0.9658% 3/15/22 (d)(j)	489		245
sequential payer:
Series 2003-PWR2 Class A3, 4.834% 5/11/39	294		298
Series 2004-PWR3 Class A3, 4.487% 2/11/41	632		642
Series 2006-T24 Class A1, 4.905% 10/12/41 (j)	66		67
Series 2007-PW16 Class A4, 5.7174% 6/11/40 (j)	641		697
Series 2007-PW17 Class A1, 5.282% 6/11/50	381		387
Series 2007-T26 Class A1, 5.145% 1/12/45 (j)	189		193
Series 2003-PWR2 Class X2, 0.5297% 5/11/39 (d)(j)(l)	9,682		30
Series 2006-PW13 Class A3, 5.518% 9/11/41	3,864		4,048
Series 2006-PW14 Class X2, 0.6525% 12/11/38 (d)(j)(l)	15,640		280
Series 2006-T22 Class A4, 5.514% 4/12/38 (j)	137		150
Series 2007-PW16:
Class B, 5.7174% 6/11/40 (d)(j)	176		118
Class C, 5.7174% 6/11/40 (d)(j)	146		82
Class D, 5.7174% 6/11/40 (d)(j)	146		76
Series 2007-PW18 Class X2, 0.3155% 6/11/50 (d)(j)(l)	119,638		1,442
Series 2007-T28 Class X2, 0.1785% 9/11/42 (d)(j)(l)	58,943		444
C-BASS Trust floater Series 2006-SC1 Class A, 0.5315% 5/25/36 (d)(j)	542		404
CDC Commercial Mortgage Trust Series 2002-FX1:
Class G, 6.625% 5/15/35 (d)	1,287		1,367
Class XCL, 2.1173% 5/15/35 (d)(j)(l)	14,616		322
Chase Commercial Mortgage Securities Corp. Series 2000-3 Class G 6.887% 10/15/32 (d)	5,748		5,729
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2:
Class F, 0.574% 8/15/21 (d)(j)	391		381
Class G, 0.594% 8/15/21 (d)(j)	326		305
Class H, 0.634% 8/15/21 (d)(j)	261		235
Series 2006-C5 Class AMP2, 5.5005% 10/15/49 (d)	1,655		1,498
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Citigroup Commercial Mortgage Trust: - continued
floater Series
Series 2007-C6:
Class A1, 5.622% 12/10/49 (j)	$ 272		$ 273
Class A2, 5.6981% 12/10/49 (j)	1,093		1,135
Class A4, 5.6981% 12/10/49 (j)	3,631		3,935
Series 2007-FL3A Class A2, 0.4058% 4/15/22 (d)(j)	3,955		3,795
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4:
Class A2A, 5.237% 12/11/49	857		865
Class A4, 5.322% 12/11/49	12,679		13,364
Series 2007-CD4:
Class A3, 5.293% 12/11/49	1,066		1,097
Class C, 5.476% 12/11/49	2,061		721
Cobalt CMBS Commercial Mortgage Trust:
sequential payer Series 2007-C3 Class A3, 5.8155% 5/15/46 (j)	1,095		1,173
Cobalt CMBS Commercial Mortgage Trust: - continued
Series 2006-C1 Class B, 5.359% 8/15/48	3,285		1,807
COMM pass-thru certificates:
floater:
Series 2005-F10A:
Class B, 0.4958% 4/15/17 (d)(j)	2,955		2,748
Class C, 0.5358% 4/15/17 (d)(j)	881		811
Class D, 0.5758% 4/15/17 (d)(j)	601		547
Class E, 0.6358% 4/15/17 (d)(j)	192		171
Class F, 0.6758% 4/15/17 (d)(j)	109		93
Class G, 0.8158% 4/15/17 (d)(j)	109		89
Class H, 0.8858% 4/15/17 (d)(j)	109		84
Class J, 1.1158% 4/15/17 (d)(j)	104		73
Series 2005-FL11:
Class C, 0.5658% 11/15/17 (d)(j)	836		794
Class D, 0.6058% 11/15/17 (d)(j)	44		41
Class E, 0.6558% 11/15/17 (d)(j)	154		142
Class F, 0.7158% 11/15/17 (d)(j)	118		107
Class G, 0.7658% 11/15/17 (d)(j)	81		73
Series 2006-FL12 Class AJ, 0.3958% 12/15/20 (d)(j)	1,560		1,443
sequential payer:
Series 2005-C6 Class A2, 4.999% 6/10/44 (j)	11		11
Series 2006-C8:
Class A3, 5.31% 12/10/46	3,121		3,243
Class A4, 5.306% 12/10/46	14,677		15,520
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
COMM pass-thru certificates: - continued
sequential payer:
Series 2006-CN2A:
Class A2FX, 5.449% 2/5/19 (d)	$ 1,851		$ 1,851
Class AJFX, 5.478% 2/5/19 (d)	3,272		3,267
Series 2007-C9 Class A4, 5.8148% 12/10/49 (j)	2,423		2,647
Series 2004-LBN2 Class X2, 0.8571% 3/10/39 (d)(j)(l)	1,844		0*
Series 2006-C8:
Class B, 5.44% 12/10/46	1,896		1,252
Class XP, 0.4911% 12/10/46 (j)(l)	11,356		138
Credit Suisse Commercial Mortgage Trust:
sequential payer:
Series 2006-C4 Class A3, 5.467% 9/15/39	5,651		6,043
Series 2007-C2 Class A3, 5.542% 1/15/49 (j)	2,190		2,300
Series 2007-C3 Class A4, 5.7203% 6/15/39 (j)	658		701
Series 2006-C4 Class AAB, 5.439% 9/15/39	6,232		6,524
Series 2006-C5 Class ASP, 0.6744% 12/15/39 (j)(l)	6,913		125
Series 2007-C5 Class A4, 5.695% 9/15/40 (j)	991		1,043
Credit Suisse First Boston Mortgage Capital Certificates floater Series 2007-TF2A Class B, 0.6158% 4/15/22 (d)(j)	3,907		3,047
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer:
Series 2001-CK6 Class B, 6.582% 8/15/36	1,095		1,121
Series 2002-CP5 Class A1, 4.106% 12/15/35	54		54
Series 2004-C1:
Class A3, 4.321% 1/15/37	185		187
Class A4, 4.75% 1/15/37	510		536
Series 2001-CK6 Class AX, 0.8911% 8/15/36 (j)(l)	3,411		13
Series 2001-CKN5 Class AX, 1.9441% 9/15/34 (d)(j)(l)	9,648		37
Series 2004-C1 Class ASP, 0.9583% 1/15/37 (d)(j)(l)	66,274		11
Series 2006-C1 Class A3, 5.5457% 2/15/39 (j)	5,781		6,115
Credit Suisse Mortgage Capital Certificates:
floater Series 2007-TFL1:
Class B, 0.4158% 2/15/22 (d)(j)	414		373
Class C:
0.4358% 2/15/22 (d)(j)	1,180		1,038
0.5358% 2/15/22 (d)(j)	421		354
Class F, 0.5858% 2/15/22 (d)(j)	843		692
Series 2007-C1:
Class ASP, 0.4157% 2/15/40 (j)(l)	25,686		250
Class B, 5.487% 2/15/40 (d)(j)	1,677		252
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1:
Class D, 6.484% 3/15/33	$ 390		$ 390
Class G, 6.936% 3/15/33 (d)	903		906
GE Capital Commercial Mortgage Corp.:
sequential payer Series 2007-C1 Class A4, 5.543% 12/10/49	5,444		5,737
Series 2001-1 Class X1, 0.9778% 5/15/33 (d)(j)(l)	5,006		54
Series 2007-C1 Class XP, 0.2003% 12/10/49 (j)(l)	23,826		126
GMAC Commercial Mortgage Securities, Inc.:
Series 2004-C3 Class X2, 0.6179% 12/10/41 (j)(l)	4,597		20
Series 2005-C1 Class X2, 0.5542% 5/10/43 (j)(l)	5,224		39
Greenwich Capital Commercial Funding Corp.:
floater Series 2006-FL4 Class B, 0.453% 11/5/21 (d)(j)	412		389
sequential payer:
Series 2007-GG11 Class A2, 5.597% 12/10/49	2,190		2,295
Series 2007-GG9 Class A4, 5.444% 3/10/39	3,184		3,401
Series 2005-GG3 Class XP, 0.6927% 8/10/42 (d)(j)(l)	22,965		152
Series 2006-GG7:
Class A3, 5.8829% 7/10/38 (j)	2,887		3,046
Class A4, 5.8829% 7/10/38 (j)	8,476		9,309
Series 2007-GG11 Class A1, 0.4798% 12/10/49 (d)(l)	31,597		281
GS Mortgage Securities Corp. II:
floater: Series 2006-FL8A:
Class C, 0.503% 6/6/20 (d)(j)	69		65
Class D, 0.543% 6/6/20 (d)(j)	261		240
Class E, 0.633% 6/6/20 (d)(j)	302		272
Class F, 0.703% 6/6/20 (d)(j)	528		465
Series 2007-EOP:
Class C, 2.1455% 3/6/20 (d)(j)	1,041		1,016
Class D, 2.3636% 3/6/20 (d)(j)	6,868		6,683
Class F, 2.8433% 3/6/20 (d)(j)	107		104
Class G, 3.0177% 3/6/20 (d)(j)	54		52
Class H, 3.5846% 3/6/20 (d)(j)	479		459
Class J, 4.4568% 3/6/20 (d)(j)	686		644
sequential payer Series 2004-GG2 Class A4, 4.964% 8/10/38	339		343
Series 2005-GG4 Class XP, 0.7101% 7/10/39 (d)(j)(l)	24,991		222
GS Mortgage Securities Trust sequential payer:
Series 2006-GG8 Class A2, 5.479% 11/10/39	1,642		1,664
Series 2007-GG10:
Class A1, 5.69% 8/10/45	20		20
Class A2, 5.778% 8/10/45	522		535
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8 Class X2, 1.1472% 1/12/39 (d)(j)(l)	$ 1,674		$ 0
Series 2006-LDP7 Class A4, 5.8745% 4/15/45 (j)	2,953		3,233
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class B, 0.4358% 11/15/18 (d)(j)	713		670
Class C, 0.4758% 11/15/18 (d)(j)	506		476
Class D, 0.4958% 11/15/18 (d)(j)	200		188
Class E, 0.5458% 11/15/18 (d)(j)	288		254
Class F, 0.5958% 11/15/18 (d)(j)	345		297
floater Series 2006-FLA2:
Class G, 0.6258% 11/15/18 (d)(j)	300		252
Class H, 0.7658% 11/15/18 (d)(j)	288		233
sequential payer:
Series 2006-LDP8 Class A4, 5.399% 5/15/45	698		751
Series 2006-LDP9:
Class A2, 5.134% 5/15/47 (j)	520		538
Class A3, 5.336% 5/15/47	457		486
Series 2007-CB19 Class A4, 5.7447% 2/12/49 (j)	3,840		4,136
Series 2007-CB20 Class A4, 5.794% 2/12/51	5,462		5,932
Series 2007-LD11 Class A2, 5.8025% 6/15/49 (j)	3,074		3,181
Series 2007-LDP10 Class A1, 5.122% 1/15/49	17		17
Series 2007-LDPX:
Class A2 S, 5.305% 1/15/49	2,481		2,537
Class A3, 5.412% 1/15/49	17,842		18,963
Series 2005-CB13 Class E, 5.3502% 1/12/43 (d)(j)	694		72
Series 2006-CB17 Class A3, 5.45% 12/12/43	312		323
Series 2007-CB19:
Class B, 5.7447% 2/12/49 (j)	93		55
Class C, 5.7447% 2/12/49 (j)	245		125
Class D, 5.7447% 2/12/49 (j)	257		120
Series 2007-LDP10:
Class BS, 5.437% 1/15/49 (j)	209		134
Class CS, 5.466% 1/15/49 (j)	90		49
Class ES, 5.5411% 1/15/49 (d)(j)	566		144
JPMorgan Commercial Mortgage Finance Corp. Series 2000-C9 Class G, 6.25% 10/15/32 (d)	371		371
LB Commercial Conduit Mortgage Trust:
sequential payer Series 2007-C3 Class A4, 5.948% 7/15/44 (j)	19,559		21,104
Series 1998-C1 Class D, 6.98% 2/18/30	328		328
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2001-C2 Class A2, 6.653% 11/15/27	$ 10		$ 10
Series 2006-C1 Class A2, 5.084% 2/15/31	277		278
Series 2006-C6:
Class A1, 5.23% 9/15/39	94		94
Class A2, 5.262% 9/15/39 (j)	1,911		1,930
Series 2006-C7:
Class A1, 5.279% 11/15/38	35		35
Class A2, 5.3% 11/15/38	1,204		1,224
Series 2006-C7:
Class A3, 5.347% 11/15/38	816		874
Series 2007-C1:
Class A1, 5.391% 2/15/40 (j)	83		85
Class A4, 5.424% 2/15/40	6,667		7,153
Series 2007-C2 Class A3, 5.43% 2/15/40	1,996		2,130
Series 2001-C3 Class B, 6.512% 6/15/36	2,117		2,149
Series 2001-C7 Class D, 6.514% 11/15/33	1,204		1,232
Series 2004-C2 Class XCP, 1.0355% 3/15/36 (d)(j)(l)	12,644		5
Series 2005-C3 Class XCP, 0.7544% 7/15/40 (j)(l)	4,247		34
Series 2006-C6 Class XCP, 0.6752% 9/15/39 (j)(l)	6,323		105
Series 2007-C1 Class XCP, 0.4772% 2/15/40 (j)(l)	2,356		30
Series 2007-C6 Class A4, 5.858% 7/15/40 (j)	1,368		1,477
Series 2007-C7:
Class A3, 5.866% 9/15/45	1,162		1,254
Class XCP, 0.2848% 9/15/45 (j)(l)	105,287		1,036
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class D, 0.4958% 9/15/21 (d)(j)	351		316
Class E, 0.5558% 9/15/21 (d)(j)	1,265		1,113
Class F, 0.6058% 9/15/21 (d)(j)	723		615
Class G, 0.6258% 9/15/21 (d)(j)	1,429		1,158
Class H, 0.6658% 9/15/21 (d)(j)	369		288
Lehman Large Loan Trust Series 1997-LLI Class E, 7.3% 10/12/34	1,943		1,992
Merrill Lynch Mortgage Trust:
sequential payer:
Series 2004-MKB1 Class A2, 4.353% 2/12/42	32		32
Series 2005-CIP1 Class A2, 4.96% 7/12/38	2,579		2,610
Series 2005-CKI1 Class A3, 5.2412% 11/12/37 (j)	1,798		1,832
Series 2005-LC1 Class F, 5.3853% 1/12/44 (d)(j)	953		486
Series 2006-C1 Class A2, 5.6109% 5/12/39 (j)	1,295		1,334
Series 2007-C1 Class A4, 5.8261% 6/12/50 (j)	4,145		4,500
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Merrill Lynch Mortgage Trust: - continued
sequential payer:
Series 2008-C1 Class A4, 5.69% 2/12/51	$ 2,338		$ 2,504
Merrill Lynch-CFC Commercial Mortgage Trust:
floater Series 2006-4 Class A2FL, 0.3813% 12/12/49 (j)	499		487
sequential payer:
Series 2006-1 CLass A3, 5.4839% 2/12/39 (j)	1,165		1,211
Series 2006-4 Class ASB, 5.133% 12/12/49 (j)	941		1,000
Series 2007-5:
Class A3, 5.364% 8/12/48	427		439
Class A4, 5.378% 8/12/48	55		58
Class B, 5.479% 2/12/17	3,285		1,443
Series 2007-6:
Class A1, 5.175% 3/12/51	37		38
Class A4, 5.485% 3/12/51 (j)	2,594		2,724
Series 2007-7 Class A4, 5.7439% 6/12/50 (j)	3,832		4,076
Series 2007-8 Class A1, 4.622% 8/12/49	165		167
Series 2006-4 Class XP, 0.6112% 12/12/49 (j)(l)	23,869		459
Series 2007-6 Class B, 5.635% 3/12/51 (j)	1,095		536
Series 2007-7 Class B, 5.75% 6/12/50	1,409		320
Series 2007-8 Class A3, 5.9645% 8/12/49 (j)	944		1,022
Morgan Stanley Capital I Trust:
floater:
Series 2006-XLF Class C, 1.466% 7/15/19 (d)(j)	227		118
Series 2007-XCLA Class A1, 0.466% 7/17/17 (d)(j)	1,545		1,391
Series 2007-XLFA:
Class C, 0.426% 10/15/20 (d)(j)	629		528
Class D, 0.456% 10/15/20 (d)(j)	422		317
Class E, 0.516% 10/15/20 (d)(j)	528		343
Class F, 0.566% 10/15/20 (d)(j)	397		199
Class G, 0.606% 10/15/20 (d)(j)	491		197
Class H, 0.696% 10/15/20 (d)(j)	309		31
Class J, 0.846% 10/15/20 (d)(j)	353		18
Class MHRO, 0.956% 10/15/20 (d)(j)	417		133
Class MJPM, 1.266% 10/15/20 (d)(j)	29		22
Class MSTR, 0.966% 10/15/20 (d)(j)	300		96
Class NHRO, 1.156% 10/15/20 (d)(j)	503		111
Class NSTR, 1.116% 10/15/20 (d)(j)	276		61
sequential payer:
Series 2003-IQ5 Class X2, 0.9108% 4/15/38 (d)(j)(l)	3,777		18
Series 2005-IQ9 Class A3, 4.54% 7/15/56	1,626		1,668
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Morgan Stanley Capital I Trust: (continued)
sequential payer:
Series 2007-HQ11:
Class A1, 5.246% 2/12/44	$ 75		$ 75
Class A31, 5.439% 2/12/44 (j)	8,687		9,022
Series 2007-IQ13 Class A1, 5.05% 3/15/44	159		160
Series 2007-IQ14 Class A1, 5.38% 4/15/49	118		120
Series 2007-IQ15 Class A4, 5.8793% 6/11/49 (j)	4,988		5,412
Series 2007-T25 Class A1, 5.391% 11/12/49	105		107
Series 2007-T27 Class A4, 5.6497% 6/11/42 (j)	4,010		4,369
Series 2003-IQ6 Class X2, 0.5897% 12/15/41 (d)(j)(l)	8,119		40
Series 2005-IQ9 Class X2, 1.0924% 7/15/56 (d)(j)(l)	14,512		140
Series 2006-HQ10 Class X2, 0.4925% 11/12/41 (d)(j)(l)	5,430		50
Series 2006-HQ8 Class A3, 5.442% 3/12/44 (j)	1,698		1,718
Series 2006-IQ11 Class A4, 5.7317% 10/15/42 (j)	329		360
Series 2006-IQ12 Class B, 5.468% 12/15/43	1,095		712
Series 2006-T23 Class A3, 5.803% 8/12/41 (j)	559		597
Series 2007-HQ11 Class B, 5.538% 2/20/44 (j)	1,986		1,490
Series 2007-HQ12 Class A4, 5.5971% 4/12/49 (j)	5,793		5,984
Series 2007-IQ14:
Class A4, 5.692% 4/15/49 (j)	1,642		1,739
Class AAB, 5.654% 4/15/49	2,402		2,543
Class B, 5.7308% 4/15/49 (j)	269		148
Structured Asset Securities Corp. Series 1997-LLI Class D, 7.15% 10/12/34	100		102
TrizecHahn Office Properties Trust Series 2001-TZHA Class C4, 6.893% 5/15/16 (d)	681		687
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2005-WL5A Class K, 1.4658% 1/15/18 (d)(j)	809		776
Series 2006-WL7A:
Class E, 0.544% 9/15/21 (d)(j)	1,099		855
Class F, 0.604% 8/11/18 (d)(j)	1,189		797
Class G, 0.624% 8/11/18 (d)(j)	1,126		691
Class J, 0.864% 8/11/18 (d)(j)	314		146
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (d)(j)	105		74
Class AP2, 1.0658% 6/15/20 (d)(j)	175		114
Class F, 0.7458% 6/15/20 (d)(j)	2,710		1,762
Class LXR1, 0.9658% 6/15/20 (d)(j)	169		142
Class LXR2, 1.0658% 6/15/20 (d)(j)	1,847		1,459
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust: - (continued)
sequential payer:
Series 2003-C7 Class A1, 4.241% 10/15/35 (d)	$ 1,514		$ 1,525
Series 2006-C27 Class A2, 5.624% 7/15/45	891		898
Series 2006-C28 Class A4, 5.572% 10/15/48	5,427		5,812
Series 2006-C29:
Class A1, 5.11% 11/15/48	186		188
Class A3, 5.313% 11/15/48	2,908		3,041
Series 2007-C30:
Class A1, 5.031% 12/15/43	5		5
Class A3, 5.246% 12/15/43	940		967
Class A4, 5.305% 12/15/43	322		329
Class A5, 5.342% 12/15/43	1,172		1,223
Series 2007-C31:
Class A1, 5.14% 4/15/47	2		2
Class A4, 5.509% 4/15/47	2,475		2,606
Series 2007-C32:
Class A2, 5.7406% 6/15/49 (j)	1,314		1,370
Class A3, 5.7456% 6/15/49 (j)	15,651		16,684
Series 2003-C6 Class G, 5.125% 8/15/35 (d)(j)	652		644
Series 2004-C15:
Class 180A, 5.5782% 10/15/41 (d)(j)	1,055		1,013
Class 180B, 5.5782% 10/15/41 (d)(j)	480		451
Series 2005-C19 Class B, 4.892% 5/15/44	1,095		1,012
Series 2005-C22:
Class B, 5.3619% 12/15/44 (j)	2,428		2,172
Class F, 5.3619% 12/15/44 (d)(j)	1,826		1,034
Series 2006-C29 Class E, 5.516% 11/15/48 (j)	1,095		591
Series 2007-C30:
Class C, 5.483% 12/15/43 (j)	3,285		1,700
Class D, 5.513% 12/15/43 (j)	1,752		713
Class XP, 0.4403% 12/15/43 (d)(j)(l)	15,237		185
Series 2007-C31 Class C, 5.6933% 4/15/47 (j)	4,515		2,327
Series 2007-C31A Class A2, 5.421% 4/15/47	3,929		4,064
Series 2007-C32:
Class D, 5.7456% 6/15/49 (j)	823		443
Class E, 5.7456% 6/15/49 (j)	1,297		548
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust pass-thru certificates:
sequential payer Series 2007-C33 Class A5, 5.8994% 2/15/51 (j)	$ 725		$ 782
Series 2007-C33 Class B, 5.8994% 2/15/51 (j)	1,841		1,358
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $349,497)		432,980
Municipal Securities - 0.3%
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 1/1/35 (j)	1,835		1,791
California Gen. Oblig.:
7.5% 4/1/34	6,295		6,736
7.55% 4/1/39	4,599		4,963
Illinois Gen. Oblig.:
5.665% 3/1/18 (e)	3,235		3,242
5.877% 3/1/19 (e)	2,885		2,893
TOTAL MUNICIPAL SECURITIES (Cost $18,909)		19,625
Supranational Obligations - 0.0%
Corporacion Andina de Fomento 5.2% 5/21/13 (Cost $410)	412		438

Fixed-Income Funds - 14.0%
	Shares
Fidelity Mortgage Backed Securities Central Fund (k)	6,768,477		708,660
Fidelity Specialized High Income Central Fund (k)	1,212,444		123,936
TOTAL FIXED-INCOME FUNDS (Cost $799,069)		832,596
Preferred Securities - 0.1%
	Principal Amount (000s)
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
MUFG Capital Finance 1 Ltd. 6.346% (j) (Cost $2,822)	$ 2,773		2,856
Cash Equivalents - 3.0%
	Maturity Amount (000s)		Value (000s)
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $179,341)	$ 179,342		$ 179,341
TOTAL INVESTMENT PORTFOLIO - 112.7% (Cost $6,466,186)			6,683,980
NET OTHER ASSETS (LIABILITIES) - (12.7)%			(754,648)
NET ASSETS - 100%		$ 5,929,332

Swap Agreements
	Expiration Date	Notional Amount (000s)
Credit Default Swaps
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Credit Suisse First Boston upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $2,116,000) (i)	Sept. 2037	$ 6,191	(5,787)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Credit Suisse First Boston upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $5,250,000) (i)	Sept. 2037	16,823	(15,725)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to JPMorgan Chase, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $1,302,000) (i)	Sept. 2037	3,768	(3,522)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to JPMorgan Chase, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $4,321,000) (i)	Sept. 2037	12,583	(11,762)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Morgan Stanley, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $2,754,000) (i)	Sept. 2037	$ 6,864	$ (6,416)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to UBS upon each credit event of one of the issues of ABX AA 07-1 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $3,716,000) (i)	Sept. 2037	11,237	(10,504)
Receive monthly notional amount multiplied by .82% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34 (h)	August 2034	574	(318)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34 (h)	Oct. 2034	563	(234)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32 (Rating-Ba1) (h)	April 2032	186	(109)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34 (Rating-C) (h)	Feb. 2034	4	(3)
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 7.2913% 9/25/34 (Rating-B1) (h)	Oct. 2034	743	(281)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7, Class B3, 9.01% 8/25/34 (Rating-C) (h)	Sept. 2034	$ 561	$ (424)
Receive quarterly notional amount multiplied by 4% and pay Morgan Stanley, Inc. upon credit event of Developers Diversified Realty Corp., par value of the notional amount of Developers Diversified Realty Corp. 5.375% 10/15/12 (Rating-Baa3) (h)	March 2013	13,500	1,021
TOTAL CREDIT DEFAULT SWAPS		$ 73,597	$ (54,064)
Interest Rate Swaps
Receive quarterly a floating rate based on 3-month LIBOR and pay semi-annually a fixed rate equal to 4.5176% with JPMorgan Chase, Inc.	Feb. 2041	52,089	(2,276)
		$ 125,686	$ (56,340)

Legend

(a) Non-income producing

(b) Non-income producing - Security is in default.

(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $360,417,000 or 6.1% of net assets.

(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(f) A portion of the security is subject to a forward commitment to sell.

(g) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $58,846,000.

(h) Represents a credit default swap contract in which the Fund has sold protection on the underlying reference entity. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. For the underlying reference entity, ratings disclosed are from Moody's Investors Service, Inc. Where Moody's ratings are not available, S&P ratings are disclosed and are indicated as such. All ratings are as of the report date and do not reflect subsequent changes. Where a credit rating is not disclosed, the value is used as the measure of the payment/performance risk.

(i) Represents a credit default swap based on a tradable index of home equity asset-backed debt securities. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. In addition, the swap represents a contract in which the Fund has sold protection on the index of underlying securities. Ratings represent a weighted average of the ratings of all securities included in the index. Ratings used in the weighted average are from Moody's Investors Service, Inc., or S&P where Moody's ratings are not available. All ratings are as of the report date and do not reflect subsequent changes.

(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(k) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, are available on the SEC's web site or upon request.

(l) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

* Amount represents less than $1,000.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$179,341,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 14,988
Bank of America NA	13,323
Barclays Capital, Inc.	7,419
Credit Agricole Securities (USA), Inc.	6,662
Deutsche Bank Securities, Inc.	7,644
Goldman, Sachs & Co.	1,665
HSBC Securities (USA), Inc.	19,985
ING Financial Markets LLC	12,324
J.P. Morgan Securities, Inc.	19,985
Merrill Lynch Government Securities, Inc.	5,995
Merrill Lynch, Pierce, Fenner & Smith, Inc.	9,197
Mizuho Securities USA, Inc.	36,639
RBC Capital Markets Corp.	1,665
Societe Generale, New York Branch	13,323
Wells Fargo Securities LLC	8,527
	$ 179,341

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned (Amounts in thousands)
Fidelity Mortgage Backed Securities Central Fund	$ 13,516
Fidelity Specialized High Income Central Fund	4,961
Total	$ 18,477

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows:

Fund (Amounts in thousands)	Value, beginning of period	Purchases	Sales Proceeds *	Value, end of period	% ownership, end of period
Fidelity Mortgage Backed Securities Central Fund	$ 885,153	$ 12,151	$ 178,562	$ 708,660	7.1%
Fidelity Specialized High Income Central Fund	143,843	4,323	30,782	123,936	28.1%
Total	$ 1,028,996	$ 16,474	$ 209,344	$ 832,596

* Includes the value of shares redeemed through in-kind transactions. See Note 7 of the Notes to Financial Statements.

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 1,222,097	$ -	$ 1,222,097	$ -
U.S. Government and Government Agency Obligations	2,376,132	-	2,376,132	-
U.S. Government Agency - Mortgage Securities	1,437,874	-	1,437,874	-
Asset-Backed Securities	94,891	-	85,734	9,157
Collateralized Mortgage Obligations	85,150	-	80,723	4,427
Commercial Mortgage Securities	432,980	-	400,061	32,919
Municipal Securities	19,625	-	19,625	-
Supranational Obligations	438	-	438	-
Fixed-Income Funds	832,596	832,596	-	-
Preferred Securities	2,856	-	2,856	-
Cash Equivalents	179,341	-	179,341	-
Total Investments in Securities:	$ 6,683,980	$ 832,596	$ 5,804,881	$ 46,503
Derivative Instruments:
Assets
Swap Agreements	$ 1,021	$ -	$ 1,021	$ -
Liabilities
Swap Agreements	$ (57,361)	$ -	$ (56,699)	$ (662)
Total Derivative Instruments:	$ (56,340)	$ -	$ (55,678)	$ (662)
Other Financial Instruments:
Forward Committments	$ (1,724)	$ -	$ (1,724)	$ -

The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 68,258
Total Realized Gain (Loss)	429
Total Unrealized Gain (Loss)	9,310
Cost of Purchases	5,564
Proceeds of Sales	(11,331)
Amortization/Accretion	(38)
Transfers in to Level 3	6,477
Transfers out of Level 3	(32,166)
Ending Balance	$ 46,503
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 8,436
Derivative Instruments:
Swap Agreements
Beginning Balance	$ (1,687)
Total Unrealized Gain (Loss)	128
Transfers in to Level 3	-
Transfers out of Level 3	897
Ending Balance	$ (662)
Realized gain (loss) on Swap Agreements for the period	$ 37
The change in unrealized gain (loss) for the period attributable to Level 3 Swap Agreements held at February 28, 2011	$ 128

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and Derivative Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, and includes the value of securities received or delivered through affiliated in-kind transactions. See Note 7 of the Notes to Financial Statements. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by risk exposure as of February 28, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Risk Exposure / Derivative Type	Value (Amounts in thousands)
	Asset	Liability
Credit Risk
Swap Agreements (a)	$ 1,021	$ (55,085)
Interest Rate Risk
Swap Agreements (a)	-	(2,276)
Total Value of Derivatives	$ 1,021	$ (57,361)

(a) Value is disclosed on the Statement of Assets and Liabilities in the Unrealized Appreciation and Unrealized Depreciation on Swap Agreements line-items.

Income Tax Information

At August 31, 2010, the Fund had a capital loss carryforward of approximately $488,600,000 of which $1,000, $107,986,000, $17,287,000, $179,146,000 and $184,180,000 will expire in fiscal 2013, 2014, 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $179,341) - See accompanying schedule: Unaffiliated issuers (cost $5,667,117)	$ 5,851,384
Fidelity Central Funds (cost $799,069)	832,596
Total Investments (cost $6,466,186)		$ 6,683,980
Commitment to sell securities on a delayed delivery basis	(457,624)
Receivable for securities sold on a delayed delivery basis	455,900	(1,724)
Receivable for investments sold, regular delivery in Sub-Fund		44,252
Cash		375
Receivable for fund shares sold		6,447
Interest receivable		32,486
Unrealized appreciation on swap agreements		1,021
Other receivables		121
Total assets		6,766,958
Liabilities
Payable for investments purchased Regular delivery	$ 8,313
Delayed delivery	756,187
Payable for swap agreements	939
Payable for fund shares redeemed	11,447
Distributions payable	953
Unrealized depreciation on swap agreements	57,361
Accrued management fee	1,547
Distribution and service plan fees payable	75
Other affiliated payables	683
Other payables and accrued expenses	121
Total liabilities		837,626
Net Assets		$ 5,929,332
Net Assets consist of:
Paid in capital		$ 6,236,606
Undistributed net investment income		17,045
Accumulated undistributed net realized gain (loss) on investments		(489,856)
Net unrealized appreciation (depreciation) on investments		165,537
Net Assets		$ 5,929,332

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($161,536 ÷ 21,782.1 shares)		$ 7.42
Maximum offering price per share (100/96.00 of $7.42)		$ 7.73
Class T: Net Asset Value and redemption price per share ($46,994 ÷ 6,333.7 shares)		$ 7.42
Maximum offering price per share (100/96.00 of $7.42)		$ 7.73
Class B: Net Asset Value and offering price per share ($9,817 ÷ 1,322.2 shares)A		$ 7.42
Class C: Net Asset Value and offering price per share ($28,477 ÷ 3,835.0 shares)A		$ 7.43
Investment Grade Bond: Net Asset Value, offering price and redemption price per share ($5,657,440 ÷ 762,359.7 shares)		$ 7.42
Institutional Class: Net Asset Value, offering price and redemption price per share ($25,068 ÷ 3,374.7 shares)		$ 7.43

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 110
Interest		109,131
Income from Fidelity Central Funds		18,477
Total income		127,718
Expenses
Management fee	$ 11,582
Transfer agent fees	3,783
Distribution and service plan fees	483
Fund wide operations fee	1,244
Independent trustees' compensation	15
Miscellaneous	15
Total expenses before reductions	17,122
Expense reduction	-	17,122
Net investment income (loss)		110,596
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	55,032
Fidelity Central Funds	10,615
Redemption in-kind with affiliated entities	65,117
Swap agreements	18,598
Total net realized gain (loss)		149,362
Change in net unrealized appreciation (depreciation) on: Investment securities	(207,913)
Swap agreements	(120)
Delayed delivery commitments	(2,124)
Total change in net unrealized appreciation (depreciation)		(210,157)
Net gain (loss)		(60,795)
Net increase (decrease) in net assets resulting from operations		$ 49,801

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 110,596	$ 261,967
Net realized gain (loss)	149,362	175,333
Change in net unrealized appreciation (depreciation)	(210,157)	359,702
Net increase (decrease) in net assets resulting from operations	49,801	797,002
Distributions to shareholders from net investment income	(109,470)	(247,482)
Share transactions - net increase (decrease)	(1,659,246)	891,216
Total increase (decrease) in net assets	(1,718,915)	1,440,736
Net Assets
Beginning of period	7,648,247	6,207,511
End of period (including undistributed net investment income of $17,045 and undistributed net investment income of $15,919, respectively)	$ 5,929,332	$ 7,648,247

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.89	$ 6.89	$ 7.18	$ 7.35	$ 7.24	$ 7.50
Income from Investment Operations
Net investment income (loss)E	.100	.254	.303	.331	.353	.118	.298
Net realized and unrealized gain (loss)	(.051)	.566	.007H	(.303)	(.161)	.092	(.206)
Total from investment operations	.049	.820	.310	.028	.192	.210	.092
Distributions from net investment income	(.099)	(.240)	(.310)	(.311)	(.352)	(.100)	(.282)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.099)	(.240)	(.310)	(.318)	(.362)	(.100)	(.352)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.89	$ 6.89	$ 7.18	$ 7.35	$ 7.24
Total ReturnB,C,D	.66%	12.10%	4.89%	.36%	2.61%	2.92%	1.23%
Ratios to Average Net AssetsF,I
Expenses before reductions	.78%A	.77%	.79%	.80%	.75%	.71%A	.71%
Expenses net of fee waivers, if any	.78%A	.77%	.79%	.80%	.75%	.71%A	.71%
Expenses net of all reductions	.78%A	.77%	.79%	.80%	.74%	.71%A	.71%
Net investment income (loss)	2.72%A	3.55%	4.67%	4.67%	4.83%	4.86%A	4.04%
Supplemental Data
Net assets, end of period (in millions)	$ 162	$ 173	$ 145	$ 79	$ 79	$ 46	$ 37
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.90	$ 6.89	$ 7.18	$ 7.35	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.099	.252	.302	.332	.350	.116	.290
Net realized and unrealized gain (loss)	(.051)	.555	.016H	(.303)	(.163)	.091	(.216)
Total from investment operations	.048	.807	.318	.029	.187	.207	.074
Distributions from net investment income	(.098)	(.237)	(.308)	(.312)	(.347)	(.097)	(.274)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.098)	(.237)	(.308)	(.319)	(.357)	(.097)	(.344)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.90	$ 6.89	$ 7.18	$ 7.35	$ 7.24
Total ReturnB,C,D	.65%	11.90%	5.02%	.36%	2.54%	2.89%	.98%
Ratios to Average Net AssetsF,I
Expenses before reductions	.81%A	.80%	.82%	.80%	.80%	.82%A	.83%
Expenses net of fee waivers, if any	.81%A	.80%	.82%	.80%	.80%	.82%A	.83%
Expenses net of all reductions	.81%A	.80%	.82%	.79%	.79%	.81%A	.83%
Net investment income (loss)	2.69%A	3.51%	4.65%	4.67%	4.77%	4.76%A	3.92%
Supplemental Data
Net assets, end of period (in millions)	$ 47	$ 53	$ 46	$ 53	$ 68	$ 59	$ 57
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class B

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.89	$ 7.19	$ 7.36	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.073	.201	.257	.281	.299	.099	.239
Net realized and unrealized gain (loss)	(.061)	.566	.016H	(.313)	(.164)	.102	(.216)
Total from investment operations	.012	.767	.273	(.032)	.135	.201	.023
Distributions from net investment income	(.072)	(.187)	(.263)	(.261)	(.295)	(.081)	(.223)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.072)	(.187)	(.263)	(.268)	(.305)	(.081)	(.293)
Net asset value, end of period	$ 7.42	$ 7.48	$ 6.90	$ 6.89	$ 7.19	$ 7.36	$ 7.24
Total ReturnB,C,D	.16%	11.26%	4.29%	(.49)%	1.83%	2.79%	.28%
Ratios to Average Net AssetsF,I
Expenses before reductions	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Expenses net of fee waivers, if any	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Expenses net of all reductions	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Net investment income (loss)	1.98%A	2.81%	3.95%	3.96%	4.07%	4.07%A	3.24%
Supplemental Data
Net assets, end of period (in millions)	$ 10	$ 12	$ 11	$ 9	$ 10	$ 9	$ 9
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.072	.200	.255	.278	.294	.097	.233
Net realized and unrealized gain (loss)	(.051)	.566	.005H	(.304)	(.163)	.102	(.216)
Total from investment operations	.021	.766	.260	(.026)	.131	.199	.017
Distributions from net investment income	(.071)	(.186)	(.260)	(.257)	(.291)	(.079)	(.217)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.071)	(.186)	(.260)	(.264)	(.301)	(.079)	(.287)
Net asset value, end of period	$ 7.43	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.24
Total ReturnB,C,D	.28%	11.24%	4.09%	(.40)%	1.77%	2.76%	.20%
Ratios to Average Net AssetsF,I
Expenses before reductions	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Expenses net of fee waivers, if any	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Expenses net of all reductions	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Net investment income (loss)	1.96%A	2.79%	3.91%	3.91%	4.02%	3.99%A	3.15%
Supplemental Data
Net assets, end of period (in millions)	$ 28	$ 35	$ 27	$ 14	$ 17	$ 10	$ 9
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Investment Grade Bond

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006L	2006J
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.90	$ 6.89	$ 7.19	$ 7.35	$ 7.24	$ 7.50
Income from Investment Operations
Net investment income (loss)D	.113	.277	.326	.356	.376	.124	.317
Net realized and unrealized gain (loss)	(.052)	.556	.015G	(.313)	(.153)	.092	(.206)
Total from investment operations	.061	.833	.341	.043	.223	.216	.111
Distributions from net investment income	(.111)	(.263)	(.331)	(.336)	(.373)	(.106)	(.301)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.111)	(.263)	(.331)	(.343)	(.383)	(.106)	(.371)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.90	$ 6.89	$ 7.19	$ 7.35	$ 7.24
Total ReturnB,C	.82%	12.29%	5.39%	.57%	3.05%	3.01%	1.48%
Ratios to Average Net AssetsE,H
Expenses before reductions	.45%A	.45%	.46%	.45%	.45%	.45%A	.46%
Expenses net of fee waivers, if any	.45%A	.45%	.46%	.45%	.45%	.45%A	.46%
Expenses net of all reductions	.45%A	.45%	.46%	.44%	.44%	.45%A	.46%
Net investment income (loss)	3.04%A	3.86%	5.00%	5.02%	5.13%	5.12%A	4.29%
Supplemental Data
Net assets, end of period (in millions)	$ 5,657	$ 7,345	$ 5,951	$ 9,814	$ 11,739	$ 10,141	$ 8,018
Portfolio turnover rateF	263%A,M	174%K	119%I,K	231%	181%K	206%A,I	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J For the period ended April 30. K The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. L For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. M Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006L	2006J
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.25	$ 7.51
Income from Investment Operations
Net investment income (loss)D	.111	.274	.322	.353	.374	.124	.313
Net realized and unrealized gain (loss)	(.051)	.565	.005G	(.303)	(.163)	.091	(.205)
Total from investment operations	.060	.839	.327	.050	.211	.215	.108
Distributions from net investment income	(.110)	(.259)	(.327)	(.333)	(.371)	(.105)	(.298)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.110)	(.259)	(.327)	(.340)	(.381)	(.105)	(.368)
Net asset value, end of period	$ 7.43	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.25
Total ReturnB,C	.80%	12.38%	5.16%	.66%	2.88%	2.99%	1.44%
Ratios to Average Net AssetsE,H
Expenses before reductions	.49%A	.50%	.53%	.50%	.48%	.49% A	.50%
Expenses net of fee waivers, if any	.49%A	.50%	.53%	.50%	.48%	.49% A	.50%
Expenses net of all reductions	.49%A	.50%	.53%	.49%	.47%	.49% A	.50%
Net investment income (loss)	3.01%A	3.82%	4.94%	4.97%	5.10%	5.07% A	4.25%
Supplemental Data
Net assets, end of period (in millions)	$ 25	$ 30	$ 27	$ 34	$ 41	$ 29	$ 26
Portfolio turnover rateF	263%A,M	174%K	119%I,K	231%	181%K	206%A,I	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J For the period ended April 30. K The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. L For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. M Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Investment Grade Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Investment Grade Bond and Institutional Class shares, each of which, along with Class B, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The following summarizes the Fund's investment in each Fidelity Central Fund.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Investments in Fidelity Central Funds - continued

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity Mortgage Backed Securities Central Fund	Fidelity Investment Money Management, Inc. (FIMM)	Seeks a high level of income by normally investing in investment-grade mortgage-related securities and repurchase agreements for those securities.	Delayed Delivery & When Issued Securities Futures Repurchase Agreements Swap Agreements
Fidelity Specialized High Income Central Fund	FMR Co., Inc. (FMRC)	Seeks a high level of current income by normally investing in income-producing debt securities, with an emphasis on lower-quality debt securities.	Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities

An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including security valuation policies) of those funds, are available on the SEC web site or upon request.

3. 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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and

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3. Significant Accounting Policies - continued

Security Valuation - continued

they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011 for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, municipal securities, preferred securities, supranational obligations and U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

Swaps are marked-to-market daily based on valuations from independent pricing services or dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Pricing services utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates and, as a result, swaps are generally categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The principal value on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal value. The adjustments to principal due to inflation are reflected as increases or decreases to interest income even though principal is not received until maturity. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

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3. Significant Accounting Policies - continued

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, financing transactions, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 213,117
Gross unrealized depreciation	(76,670)
Net unrealized appreciation (depreciation) on securities and other investments	$ 136,447
Tax cost	$ 6,547,533

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Semiannual Report

5. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including swap agreements, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risks:

Credit Risk	Credit risk relates to the ability of the issuer to a financial instrument to make further principal or interest payments on an obligation or commitment that it has entered into with the Fund.
Interest Rate Risk	Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain over-the-counter derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the counterparty. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk, the Fund offsets certain payables and/or receivables with collateral. Collateral in the form of cash or securities, if required, is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the swap counterparty and the Fund's custodian bank, and is identified in the Schedule of Investments. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Derivative Instruments - continued

Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period.

Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Credit Risk
Swap Agreements	$ (5,302)	$ 6,319
Interest Rate Risk
Swap Agreements	23,900	(6,439)
Totals (a)	$ 18,598	$ (120)

(a) A summary of the value of derivatives by risk exposure as of period end is included at the end of the Schedule of Investments and is representative of activity for the period.

Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.

Details of swaps open at period end, are included in the Schedule of Investments under the caption "Swap Agreements." Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation or (depreciation) and reflected in the Statement of Assets and Liabilities. Any upfront payments made or received upon entering a swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded as realized gain or (loss) ratably over the term of the swap. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

Risks of loss include credit risk and interest rate risk. In addition, there is the risk of failure by the counterparty to perform under the terms of the agreement and lack of liquidity in the market.

Interest Rate Swaps. Interest rate swaps are agreements between counterparties to exchange cash flows, one based on a fixed rate, and the other on a floating rate. The Fund entered into interest rate swaps to manage its exposure to interest rate changes. Changes in interest rates can have an effect on both the value of bond holdings as well as the amount of interest income earned. In general, the value of bonds can fall when interest rates rise and can rise when interest rates fall.

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5. Derivative Instruments - continued

Credit Default Swaps. Credit default swaps enable the Fund to buy or sell protection on a debt security or a basket of securities against a defined credit event. Under the terms of a credit default swap the buyer of protection (buyer) receives credit protection in exchange for making periodic payments to the seller of protection (seller) based on a fixed percentage applied to a notional principal amount. In return for these payments, the seller acts as a guarantor of the creditworthiness of a reference obligation. The Fund entered into credit default swaps as a seller to gain credit exposure to an issuer and/or as a buyer to provide a measure of protection against defaults of an issuer. The issuer may be either a single issuer or a "basket" of issuers. Periodic payments are made over the life of the contract provided that no credit event occurs.

For credit default swaps on most corporate and sovereign issuers, credit events include bankruptcy, failure to pay, obligation acceleration or repudiation/moratorium. For credit default swaps on corporate or sovereign issuers, the obligation that may be put to the seller is not limited to the specific reference obligation described in the Schedule of Investments. For credit default swaps on asset-backed securities, a credit event may be triggered by events such as failure to pay principal, maturity extension, rating downgrade or write-down. For credit default swaps on asset-backed securities, the reference obligation described represents the security that may be put to the seller.

As a seller, if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the reference obligation or underlying securities comprising an index or pay a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

As a buyer, if an underlying credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the reference obligation or underlying securities comprising an index or receive a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

Typically, the value of each credit default swap and credit rating disclosed for each reference obligation in the Schedule of Investments, where the Fund is the seller, can be used as measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. Any current or future declines in the value of the swap may be partially offset by upfront payments received by the Fund as the seller, if applicable. In addition to these measures, FMR monitors a variety of factors including cash flow assumptions, market activity and market sentiment as part of its ongoing process of assessing payment/performance risk.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Derivative Instruments - continued

Credit Default Swaps - continued

The notional amount of credit default swaps is included in the Schedule of Investments and approximates the maximum potential amount of future payments that the Fund could be required to make if the Fund is the seller and a credit event were to occur. The total notional amount of all credit default swaps open at period end where the Fund is the seller amounted to $73,597 representing 1.2% of net assets.

6. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, U.S. government securities and in-kind transactions, aggregated $499,033 and $618,621, respectively.

7. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .32% of the Fund's average net assets.

In addition, under the expense contract, FMR pays all class-level expenses for Investment Grade Bond, so that the total expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense, including commitment fees do not exceed .45% of the Class' average net assets. This agreement does not apply to any of the other classes and any change or modification that would increase expenses can only be made with shareholder approval.

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,

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7. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan Fees - continued

the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$ 209	$ 6
Class T	-%	.25%	62	2
Class B	.65%	.25%	49	36
Class C	.75%	.25%	163	32
			$ 483	$ 76

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 10
Class T	3
Class B*	15
Class C*	2
	$ 30

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Investment Grade Bond. FIIOC receives an asset-based fee of .10% of Investment Grade Bond's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

7. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

	Amount	% of Average Net Assets*
Class A	$ 146	.18
Class T	49	.20
Class B	14	.26
Class C	29	.18
Investment Grade Bond	3,526	.10
Institutional Class	19	.14
	$ 3,783

* Annualized

Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, Rule 12b-1 fees, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.

Redemption In-Kind. During the period, 203,418 shares of the Fund held by an affiliated entity were redeemed in kind for cash and securities, including accrued interest, with a value of $1,507,329. The net realized gain (loss) of $65,117 on securities delivered through the in-kind redemption is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 12: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.

8. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

9. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $24.

10. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by four hundred and six dollars.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010
From net investment income
Class A	$ 2,237	$ 5,063
Class T	653	1,546
Class B	106	292
Class C	314	783
Investment Grade Bond	105,747	238,838
Institutional Class	413	960
Total	$ 109,470	$ 247,482

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010	Six months ended February 28, 2011	Year ended August 31, 2010
Class A
Shares sold	4,060	9,628	$ 30,120	$ 69,206
Reinvestment of distributions	180	439	1,336	3,155
Shares redeemed	(5,605)	(7,903)	(41,552)	(56,412)
Net increase (decrease)	(1,365)	2,164	$ (10,096)	$ 15,949
Class T
Shares sold	1,143	2,791	$ 8,473	$ 20,026
Reinvestment of distributions	80	197	592	1,416
Shares redeemed	(1,962)	(2,638)	(14,577)	(18,750)
Net increase (decrease)	(739)	350	$ (5,512)	$ 2,692
Class B
Shares sold	117	693	$ 864	$ 4,986
Reinvestment of distributions	10	31	76	222
Shares redeemed	(396)	(735)	(2,934)	(5,261)
Net increase (decrease)	(269)	(11)	$ (1,994)	$ (53)
Class C
Shares sold	408	2,029	$ 3,035	$ 14,572
Reinvestment of distributions	34	82	251	591
Shares redeemed	(1,288)	(1,356)	(9,550)	(9,700)
Net increase (decrease)	(846)	755	$ (6,264)	$ 5,463
Investment Grade Bond
Shares sold	244,542	332,220	$ 1,821,352	$ 2,382,429
Reinvestment of distributions	13,019	31,428	96,972	225,823
Shares redeemed	(477,830) A	(243,762)	(3,548,482) A	(1,742,304)
Net increase (decrease)	(220,269)	119,886	$ (1,630,158)	$ 865,948
Institutional Class
Shares sold	761	2,015	$ 5,672	$ 14,647
Reinvestment of distributions	47	111	353	796
Shares redeemed	(1,505)	(1,978)	(11,247)	(14,226)
Net increase (decrease)	(697)	148	$ (5,222)	$ 1,217

^A Amount includes in-kind redemptions (See Note 7: Redemptions in-kind).

Semiannual Report

13. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

14. Credit Risk.

The Fund invests a portion of its assets in structured securities of issuers backed by residential mortgage loans, credit card receivables and automotive loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Investment Grade Bond Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Investment Grade Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the first quartile for the one-year period, the fourth quartile for the three-year period, and the third quartile for the five-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the one-year cumulative total return of the retail class compared favorably to its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Semiannual Report

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 9% means that 91% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Fidelity Investment Grade Bond Fund

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2005) to the fund's management contract that lowered the fund's individual fund fee rate from 30 basis points to 20 basis points. The Board considered that the chart reflects the fund's lower management fee for 2005, as if the lower rate were in effect for the entire year.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board also considered that the current contractual arrangements for the fund (i) have the effect of setting the total "fund-level" expenses (including, among certain other expenses, the management fee) for each class at 35 basis points, (ii) lower and limit the "class-level" transfer agent fee for the retail class to 10 basis points, and (iii) limit the total expenses for the retail class to 45 basis points. The fees and expenses payable under these contractual arrangements may not be increased without the approval of the Board and the shareholders of the applicable class. The fund's Advisor classes are subject to different "class-level" expenses (transfer agent fees and 12b-1 fees).

The Board noted that the total expenses of each class ranked below its competitive median for 2009.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses for each class at 35 basis points, increases or decreases in the management fee due to changes in the group fee rate will not impact total expenses.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Semiannual Report

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555

Automated line for quickest service

IGB-USAN-0411
1.784858.107

(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Investment Grade Bond
Fund - Class A, Class T, Class B
and Class C

Semiannual Report

February 28, 2011

Class A, Class T, Class B, and Class C are classes of Fidelity® Investment Grade
Bond Fund

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Class A	.78%
Actual		$ 1,000.00	$ 1,006.60	$ 3.88
HypotheticalA		$ 1,000.00	$ 1,020.93	$ 3.91
Class T	.81%
Actual		$ 1,000.00	$ 1,006.50	$ 4.03
HypotheticalA		$ 1,000.00	$ 1,020.78	$ 4.06
Class B	1.52%
Actual		$ 1,000.00	$ 1,001.60	$ 7.54
HypotheticalA		$ 1,000.00	$ 1,017.26	$ 7.60
Class C	1.54%
Actual		$ 1,000.00	$ 1,002.80	$ 7.65
HypotheticalA		$ 1,000.00	$ 1,017.16	$ 7.70
Investment Grade Bond	.45%
Actual		$ 1,000.00	$ 1,008.20	$ 2.24
HypotheticalA		$ 1,000.00	$ 1,022.56	$ 2.26
Institutional Class	.49%
Actual		$ 1,000.00	$ 1,008.00	$ 2.44
HypotheticalA		$ 1,000.00	$ 1,022.36	$ 2.46

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations 78.3%		U.S. Government and U.S. Government Agency Obligations 71.2%
	AAA 6.0%		AAA 6.8%
	AA 2.5%		AA 2.8%
	A 7.2%		A 7.8%
	BBB 12.5%		BBB 11.8%
	BB and Below 5.0%		BB and Below 4.0%
	Not Rated 0.1%		Not Rated 0.1%
	Equities 0.0%		Equities 0.1%
	Short-Term Investments and Net Other Assets† (11.6)%		Short-Term Investments and Net Other Assets† (4.6)%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. The information in the above table is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	6.8	6.3

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	5.0	4.7

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011*			As of August 31, 2010**
	Corporate Bonds 22.5%			Corporate Bonds 22.8%
	U.S. Government and U.S. Government Agency Obligations 78.3%			U.S. Government and U.S. Government Agency Obligations 71.2%
	Asset-Backed Securities 1.6%			Asset-Backed Securities 2.0%
	CMOs and Other Mortgage Related Securities 8.7%			CMOs and Other Mortgage Related Securities 8.1%
	Municipal Bonds 0.3%			Municipal Bonds 0.3%
	Other Investments 0.2%			Other Investments 0.2%
	Short-Term Investments and Net Other Assets† (11.6)%			Short-Term Investments and Net Other Assets† (4.6)%
* Foreign investments		3.7%	** Foreign investments		3.8%
* Futures and Swaps		(0.6)%	** Futures and Swaps		2.9%

^† Short-Term Investments and Net Other Assets are not included in the pie chart.

A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds is available at fidelity.com and/or advisor.fidelity.com, as applicable.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 20.6%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.8%
Household Durables - 0.2%
Fortune Brands, Inc.:
5.375% 1/15/16	$ 1,596		$ 1,679
5.875% 1/15/36	1,818		1,608
6.375% 6/15/14	7,614		8,358
			11,645
Media - 1.6%
Comcast Corp.:
4.95% 6/15/16	7,475		7,985
5.7% 5/15/18	6,385		6,979
6.55% 7/1/39	4,789		5,077
Discovery Communications LLC:
3.7% 6/1/15	3,783		3,921
6.35% 6/1/40	3,458		3,638
Liberty Media Corp. 8.25% 2/1/30	4,856		4,710
NBC Universal, Inc.:
3.65% 4/30/15 (d)	4,134		4,225
5.15% 4/30/20 (d)	5,465		5,630
6.4% 4/30/40 (d)	9,638		10,069
News America Holdings, Inc. 7.75% 12/1/45	2,832		3,412
News America, Inc. 6.15% 3/1/37	2,997		3,036
Time Warner Cable, Inc.:
5.85% 5/1/17	12,691		13,973
6.75% 7/1/18	5,587		6,413
Time Warner, Inc. 6.2% 3/15/40	9,617		9,798
Viacom, Inc.:
6.125% 10/5/17	2,096		2,371
6.75% 10/5/37	3,990		4,418
			95,655
TOTAL CONSUMER DISCRETIONARY			107,300
CONSUMER STAPLES - 1.0%
Beverages - 0.2%
Anheuser-Busch InBev Worldwide, Inc. 5.375% 11/15/14 (d)	4,529		5,004
FBG Finance Ltd. 5.125% 6/15/15 (d)	5,189		5,514
			10,518
Food & Staples Retailing - 0.0%
CVS Caremark Corp. 6.302% 6/1/37 (j)	1,442		1,420
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Food Products - 0.3%
Kraft Foods, Inc.:
5.375% 2/10/20	$ 5,087		$ 5,408
6.5% 8/11/17	4,718		5,420
6.875% 2/1/38	5,289		5,933
			16,761
Tobacco - 0.5%
Altria Group, Inc.:
9.25% 8/6/19	5,257		6,824
9.7% 11/10/18	5,570		7,333
Reynolds American, Inc.:
6.75% 6/15/17	7,156		8,056
7.25% 6/15/37	10,968		11,637
			33,850
TOTAL CONSUMER STAPLES			62,549
ENERGY - 2.0%
Energy Equipment & Services - 0.2%
DCP Midstream LLC 5.35% 3/15/20 (d)	4,973		5,154
El Paso Pipeline Partners Operating Co. LLC 4.1% 11/15/15	6,122		6,231
Weatherford International Ltd. 5.15% 3/15/13	976		1,031
			12,416
Oil, Gas & Consumable Fuels - 1.8%
Anadarko Petroleum Corp. 6.375% 9/15/17	5,436		6,059
Apache Corp. 5.1% 9/1/40	4,838		4,491
Canadian Natural Resources Ltd. 5.9% 2/1/18	1,333		1,509
Delek & Avner-Yam Tethys Ltd. 5.326% 8/1/13 (d)	140		140
Kaneb Pipe Line Operations Participation LP 7.75% 2/15/12	6,497		6,831
Marathon Petroleum Corp. 5.125% 3/1/21 (d)	3,437		3,484
Motiva Enterprises LLC:
5.75% 1/15/20 (d)	1,965		2,161
6.85% 1/15/40 (d)	7,374		8,544
Nakilat, Inc. 6.067% 12/31/33 (d)	2,634		2,647
Nexen, Inc.:
5.05% 11/20/13	4,658		4,968
6.4% 5/15/37	8,585		8,216
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Pemex Project Funding Master Trust 0.9034% 12/3/12 (d)(j)	$ 5,589		$ 5,561
Petro-Canada 6.05% 5/15/18	1,963		2,227
Petrobras International Finance Co. Ltd.:
3.875% 1/27/16	5,695		5,751
5.75% 1/20/20	16,071		16,676
6.875% 1/20/40	3,862		3,939
Plains All American Pipeline LP/PAA Finance Corp. 5% 2/1/21	1,885		1,889
Ras Laffan Liquefied Natural Gas Co. Ltd. III:
4.5% 9/30/12 (d)	2,794		2,888
5.5% 9/30/14 (d)	3,906		4,154
6.75% 9/30/19 (d)	2,556		2,863
Suncor Energy, Inc. 6.1% 6/1/18	6,037		6,869
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	1,907		2,190
			104,057
TOTAL ENERGY			116,473
FINANCIALS - 11.2%
Capital Markets - 2.1%
Goldman Sachs Group, Inc.:
3.7% 8/1/15	3,483		3,533
5.95% 1/18/18	4,817		5,229
6% 6/15/20	2,500		2,679
6.15% 4/1/18	4,469		4,896
6.25% 2/1/41	4,212		4,286
6.75% 10/1/37	4,560		4,674
Janus Capital Group, Inc. 6.125% 9/15/11 (c)	2,730		2,776
JPMorgan Chase Capital XVII 5.85% 8/1/35	1,820		1,785
JPMorgan Chase Capital XX 6.55% 9/29/36	17,448		17,929
Lazard Group LLC:
6.85% 6/15/17	2,464		2,625
7.125% 5/15/15	7,737		8,514
Merrill Lynch & Co., Inc. 6.875% 4/25/18	6,385		7,183
Morgan Stanley:
0.6031% 1/9/14 (j)	8,284		8,101
4.1% 1/26/15	5,004		5,153
5.45% 1/9/17	5,100		5,378
5.75% 1/25/21	6,385		6,558
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Capital Markets - continued
Morgan Stanley: - continued
6% 5/13/14	$ 6,764		$ 7,401
6.625% 4/1/18	7,981		8,822
7.3% 5/13/19	4,777		5,440
UBS AG Stamford Branch 3.875% 1/15/15	8,300		8,524
			121,486
Commercial Banks - 2.0%
Bank of America NA 5.3% 3/15/17	6,133		6,391
BB&T Capital Trust IV 6.82% 6/12/77 (j)	583		593
Credit Suisse (Guernsey) Ltd. 5.86% (j)	6,365		6,150
Credit Suisse New York Branch 6% 2/15/18	8,405		8,975
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (d)(j)	1,517		1,489
Discover Bank:
7% 4/15/20	2,536		2,797
8.7% 11/18/19	5,944		7,147
Export-Import Bank of Korea 5.25% 2/10/14 (d)	3,402		3,623
Fifth Third Bancorp:
3.625% 1/25/16	3,326		3,340
4.5% 6/1/18	2,054		2,003
8.25% 3/1/38	2,385		2,874
Fifth Third Bank 4.75% 2/1/15	949		994
Fifth Third Capital Trust IV 6.5% 4/15/67 (j)	2,462		2,400
HBOS PLC 6.75% 5/21/18 (d)	3,056		2,904
Huntington Bancshares, Inc. 7% 12/15/20	1,597		1,748
JPMorgan Chase Bank 6% 10/1/17	5,986		6,597
KeyBank NA:
5.8% 7/1/14	4,173		4,564
6.95% 2/1/28	1,344		1,437
KeyBank NA, Cleveland 5.45% 3/3/16	2,190		2,355
Korea Development Bank 5.75% 9/10/13	3,220		3,477
Manufacturers & Traders Trust Co. 1.8028% 4/1/13 (j)	572		571
Marshall & Ilsley Bank:
4.85% 6/16/15	2,284		2,397
5% 1/17/17	3,713		3,870
5.25% 9/4/12	1,692		1,773
6.375% 9/1/11	6,820		6,959
Regions Bank:
6.45% 6/26/37	8,147		7,465
7.5% 5/15/18	3,713		3,936
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Regions Financial Corp.:
5.75% 6/15/15	$ 1,094		$ 1,094
7.75% 11/10/14	4,705		5,023
Wachovia Corp. 4.875% 2/15/14	4,283		4,541
Wells Fargo & Co. 3.75% 10/1/14	6,217		6,547
			116,034
Consumer Finance - 0.1%
Discover Financial Services 10.25% 7/15/19	3,781		4,895
SLM Corp.:
0.5016% 3/15/11 (j)	532		531
0.5331% 10/25/11 (j)	1,848		1,833
0.6031% 1/27/14 (j)	1,055		996
5% 10/1/13	391		404
			8,659
Diversified Financial Services - 1.7%
Bank of America Corp. 5.75% 12/1/17	12,613		13,485
BP Capital Markets PLC:
3.125% 10/1/15	5,742		5,826
3.625% 5/8/14	5,058		5,285
Capital One Capital V 10.25% 8/15/39	2,114		2,296
Citigroup, Inc.:
5.5% 4/11/13	20,020		21,461
6.125% 5/15/18	17,793		19,509
6.5% 8/19/13	1,317		1,452
JPMorgan Chase & Co. 4.95% 3/25/20	8,888		9,142
Prime Property Funding, Inc.:
5.125% 6/1/15 (d)	6,138		6,026
5.35% 4/15/12 (d)	1,530		1,554
5.5% 1/15/14 (d)	4,505		4,725
TECO Finance, Inc.:
4% 3/15/16	1,439		1,463
5.15% 3/15/20	2,067		2,140
ZFS Finance USA Trust II 6.45% 12/15/65 (d)(j)	3,532		3,603
ZFS Finance USA Trust IV 5.875% 5/9/62 (d)(j)	1,161		1,156
ZFS Finance USA Trust V 6.5% 5/9/67 (d)(j)	2,033		2,028
			101,151
Insurance - 1.8%
Allstate Corp. 6.2% 5/16/14	6,014		6,774
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Insurance - continued
Aon Corp.:
3.5% 9/30/15	$ 2,336		$ 2,345
5% 9/30/20	2,730		2,785
6.25% 9/30/40	1,748		1,810
Assurant, Inc. 5.625% 2/15/14	4,022		4,264
Axis Capital Holdings Ltd. 5.75% 12/1/14	6,279		6,774
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (d)(j)	10,398		10,658
Liberty Mutual Group, Inc.:
6.7% 8/15/16 (d)	7,459		8,063
10.75% 6/15/88 (d)(j)	4,022		5,239
Lincoln National Corp. 7% 5/17/66 (j)	1,136		1,130
Massachusetts Mutual Life Insurance Co. 8.875% 6/1/39 (d)	2,269		3,054
MetLife, Inc.:
5.875% 2/6/41	1,692		1,745
6.75% 6/1/16	4,485		5,176
Metropolitan Life Global Funding I:
5.125% 4/10/13 (d)	5,619		6,017
5.125% 6/10/14 (d)	3,959		4,299
Monumental Global Funding II 5.65% 7/14/11 (d)	3,801		3,850
New York Life Insurance Co. 6.75% 11/15/39 (d)	2,108		2,453
Northwestern Mutual Life Insurance Co. 6.063% 3/30/40 (d)	2,777		3,002
Pacific Life Global Funding 5.15% 4/15/13 (d)	4,733		5,035
Pacific Life Insurance Co. 9.25% 6/15/39 (d)	4,357		5,742
Prudential Financial, Inc.:
4.75% 9/17/15	7,348		7,869
7.375% 6/15/19	1,732		2,058
Symetra Financial Corp. 6.125% 4/1/16 (d)	4,900		5,122
Unum Group 5.625% 9/15/20	3,183		3,234
			108,498
Real Estate Investment Trusts - 1.0%
AvalonBay Communities, Inc.:
5.5% 1/15/12	770		799
6.125% 11/1/12	1,160		1,245
Camden Property Trust:
5.375% 12/15/13	1,818		1,948
5.875% 11/30/12	687		731
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Investment Trusts - continued
Developers Diversified Realty Corp.:
5.25% 4/15/11	$ 4,366		$ 4,383
5.375% 10/15/12	3,614		3,743
7.5% 4/1/17	2,623		3,000
9.625% 3/15/16	3,987		4,846
Duke Realty LP:
4.625% 5/15/13	317		329
5.875% 8/15/12	571		600
Equity One, Inc.:
6% 9/15/17	3,250		3,338
6.25% 12/15/14	2,985		3,202
6.25% 1/15/17	2,136		2,233
Federal Realty Investment Trust:
5.4% 12/1/13	2,627		2,833
5.9% 4/1/20	1,389		1,526
6% 7/15/12	1,579		1,672
6.2% 1/15/17	1,215		1,354
HRPT Properties Trust:
5.75% 11/1/15	1,378		1,463
6.65% 1/15/18	3,200		3,412
UDR, Inc. 5.5% 4/1/14	6,383		6,759
United Dominion Realty Trust, Inc. 5.25% 1/15/15	1,736		1,820
Washington (REIT) 5.95% 6/15/11	5,055		5,114
			56,350
Real Estate Management & Development - 2.1%
AMB Property LP:
5.9% 8/15/13	4,537		4,818
6.3% 6/1/13	4,607		4,953
BioMed Realty LP 6.125% 4/15/20	1,872		1,957
Brandywine Operating Partnership LP:
5.7% 5/1/17	2,243		2,338
5.75% 4/1/12	3,189		3,285
Colonial Properties Trust:
4.8% 4/1/11	384		385
5.5% 10/1/15	5,995		6,072
6.875% 8/15/12	3,309		3,466
Colonial Realty LP 6.05% 9/1/16	4,436		4,501
Digital Realty Trust LP 4.5% 7/15/15	2,667		2,749
Duke Realty LP:
5.4% 8/15/14	5,135		5,481
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Duke Realty LP: - continued
5.5% 3/1/16	$ 5,038		$ 5,254
5.625% 8/15/11	3,493		3,549
5.95% 2/15/17	1,536		1,646
6.25% 5/15/13	3,807		4,124
6.5% 1/15/18	5,065		5,588
ERP Operating LP:
4.75% 7/15/20	4,173		4,243
5.2% 4/1/13	6,349		6,802
5.5% 10/1/12	6,078		6,476
6.625% 3/15/12	1,111		1,173
Liberty Property LP:
4.75% 10/1/20	6,505		6,433
5.5% 12/15/16	3,158		3,421
6.375% 8/15/12	2,174		2,315
6.625% 10/1/17	3,709		4,257
Post Apartment Homes LP 6.3% 6/1/13	5,470		5,857
Reckson Operating Partnership LP 6% 3/31/16	1,224		1,287
Regency Centers LP 6.75% 1/15/12	5,856		6,047
Simon Property Group LP:
4.2% 2/1/15	2,019		2,127
5.1% 6/15/15	3,142		3,408
Tanger Properties LP:
6.125% 6/1/20	3,058		3,308
6.15% 11/15/15	9,117		9,836
			127,156
Thrifts & Mortgage Finance - 0.4%
Bank of America Corp.:
5.65% 5/1/18	14,862		15,705
6.5% 8/1/16	5,430		6,094
First Niagara Financial Group, Inc. 6.75% 3/19/20	4,247		4,615
			26,414
TOTAL FINANCIALS			665,748
HEALTH CARE - 0.2%
Health Care Providers & Services - 0.2%
Express Scripts, Inc.:
5.25% 6/15/12	4,236		4,442
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
HEALTH CARE - continued
Health Care Providers & Services - continued
Express Scripts, Inc.: - continued
6.25% 6/15/14	$ 1,557		$ 1,738
Medco Health Solutions, Inc. 4.125% 9/15/20	4,148		4,035
			10,215
INDUSTRIALS - 0.4%
Airlines - 0.3%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	72		72
Continental Airlines, Inc.:
6.545% 8/2/20	1,177		1,242
6.795% 2/2/20	408		411
Delta Air Lines, Inc. pass-thru trust certificates 6.821% 8/10/22	5,546		5,865
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	2,365		2,316
8.36% 7/20/20	8,048		8,181
			18,087
Transportation Infrastructure - 0.1%
BNSF Funding Trust I 6.613% 12/15/55 (j)	2,984		3,103
TOTAL INDUSTRIALS			21,190
INFORMATION TECHNOLOGY - 0.1%
Electronic Equipment & Components - 0.1%
Tyco Electronics Group SA:
5.95% 1/15/14	4,695		5,159
6.55% 10/1/17	2,421		2,790
			7,949
MATERIALS - 0.4%
Chemicals - 0.3%
Dow Chemical Co. 7.6% 5/15/14	13,026		15,127
Metals & Mining - 0.1%
ArcelorMittal SA 3.75% 3/1/16	1,580		1,573
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (d)	4,183		4,501
			6,074
TOTAL MATERIALS			21,201
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - 1.4%
Diversified Telecommunication Services - 0.9%
AT&T, Inc.:
6.3% 1/15/38	$ 9,973		$ 10,354
6.8% 5/15/36	8,295		9,115
BellSouth Capital Funding Corp. 7.875% 2/15/30	4,203		5,114
CenturyLink, Inc. 7.6% 9/15/39	3,890		4,106
Deutsche Telekom International Financial BV 5.875% 8/20/13	4,937		5,434
Telecom Italia Capital SA:
4.95% 9/30/14	5,297		5,443
5.25% 10/1/15	2,409		2,450
Telefonica Emisiones SAU:
5.462% 2/16/21	3,870		3,927
5.855% 2/4/13	1,287		1,374
Verizon Communications, Inc. 6.1% 4/15/18	6,019		6,776
			54,093
Wireless Telecommunication Services - 0.5%
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	8,998		9,679
5.875% 10/1/19	6,291		6,818
6.35% 3/15/40	1,971		2,010
Sprint Nextel Corp. 6% 12/1/16	10,058		10,033
			28,540
TOTAL TELECOMMUNICATION SERVICES			82,633
UTILITIES - 2.1%
Electric Utilities - 1.2%
Alabama Power Co. 3.375% 10/1/20	3,371		3,179
Cleveland Electric Illuminating Co. 5.65% 12/15/13	5,410		5,936
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (d)	8,975		9,287
Edison International 3.75% 9/15/17	3,716		3,688
EDP Finance BV 6% 2/2/18 (d)	7,773		7,636
FirstEnergy Corp. 7.375% 11/15/31	5,741		6,258
FirstEnergy Solutions Corp. 6.05% 8/15/21	2,439		2,551
Kentucky Utilities Co.:
3.25% 11/1/20 (d)	451		422
5.125% 11/1/40 (d)	3,219		3,120
LG&E and KU Energy LLC:
2.125% 11/15/15 (d)	4,231		4,055
3.75% 11/15/20 (d)	832		786
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
Louisville Gas & Electric Co. 5.125% 11/15/40 (d)	$ 966		$ 941
Pennsylvania Electric Co. 6.05% 9/1/17	4,923		5,368
Pepco Holdings, Inc. 2.7% 10/1/15	3,942		3,878
Progress Energy, Inc.:
4.4% 1/15/21	6,760		6,723
6% 12/1/39	3,028		3,177
Tampa Electric Co. 5.4% 5/15/21 (d)	2,109		2,274
			69,279
Gas Utilities - 0.0%
Southern Natural Gas Co. 5.9% 4/1/17 (d)	2,894		3,128
Independent Power Producers & Energy Traders - 0.4%
Duke Capital LLC 5.668% 8/15/14	6,310		6,934
Exelon Generation Co. LLC:
4% 10/1/20	4,789		4,456
5.35% 1/15/14	5,292		5,720
PPL Energy Supply LLC:
6.2% 5/15/16	2,534		2,795
6.5% 5/1/18	5,351		5,924
			25,829
Multi-Utilities - 0.5%
Consolidated Edison Co. of New York, Inc. 5.7% 6/15/40	2,011		2,114
Dominion Resources, Inc.:
6.3% 9/30/66 (j)	1,637		1,600
7.5% 6/30/66 (j)	3,654		3,800
National Grid PLC 6.3% 8/1/16	6,667		7,603
NiSource Finance Corp.:
5.4% 7/15/14	1,393		1,514
5.45% 9/15/20	1,461		1,522
6.25% 12/15/40	1,327		1,369
6.4% 3/15/18	4,529		5,085
Wisconsin Energy Corp. 6.25% 5/15/67 (j)	4,001		3,996
			28,603
TOTAL UTILITIES			126,839
TOTAL NONCONVERTIBLE BONDS (Cost $1,154,068)		1,222,097
U.S. Government and Government Agency Obligations - 40.1%
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - 0.3%
Tennessee Valley Authority 5.25% 9/15/39	$ 15,563		$ 16,297
U.S. Treasury Inflation Protected Obligations - 6.1%
U.S. Treasury Inflation-Indexed Bonds:
2.125% 2/15/40	36,279		37,863
2.125% 2/15/41	3,573		3,718
U.S. Treasury Inflation-Indexed Notes:
1.125% 1/15/21	129,274		130,656
1.375% 1/15/20	179,643		188,412
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			360,649
U.S. Treasury Obligations - 33.7%
U.S. Treasury Bonds:
3.875% 8/15/40	124,440		111,724
4.25% 11/15/40	118,939		114,070
4.375% 11/15/39	80,536		79,026
4.75% 2/15/41	8,950		9,332
U.S. Treasury Notes:
0.625% 1/31/13	270,324		270,187
1% 3/31/12	366,273		368,947
1.375% 11/30/15	238,143		231,092
2.125% 2/29/16	66,155		66,124
2.375% 9/30/14 (g)	83,800		86,471
2.625% 7/31/14	428,847		446,835
2.625% 11/15/20 (g)	45,720		42,766
3.625% 2/15/20	122,561		126,180
3.625% 2/15/21	45,640		46,432
TOTAL U.S. TREASURY OBLIGATIONS			1,999,186
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,367,811)		2,376,132
U.S. Government Agency - Mortgage Securities - 24.3%
Fannie Mae - 18.9%
2.59% 6/1/36 (j)	161		168
2.814% 2/1/35 (j)	3,004		3,157
2.999% 10/1/34 (j)	5,160		5,435
3% 1/1/26	30,997		30,214
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
3.5% 12/1/25 to 10/1/40	$ 22,171		$ 21,845
3.5% 3/1/26 (e)(f)	18,000		18,038
3.536% 7/1/37 (j)	445		467
4% 5/1/24 to 2/1/41	36,124		35,724
4% 3/1/26 (e)(f)	6,000		6,166
4% 3/1/41 (e)(f)	7,500		7,396
4% 3/1/41 (e)(f)	31,500		31,061
4.5% 6/1/24 to 11/1/40 (e)	53,406		54,594
4.5% 3/1/26 (e)	5,000		5,239
4.5% 3/1/41 (e)(f)	80,500		82,041
4.5% 3/1/41 (e)	17,000		17,325
4.5% 3/1/41 (e)	23,500		23,950
4.5% 3/1/41 (e)	3,500		3,567
4.5% 3/1/41 (e)	23,500		23,950
4.5% 3/1/41 (e)	24,000		24,459
4.5% 3/1/41 (e)	13,300		13,555
5% 4/1/18 to 9/1/40	117,063		123,496
5% 3/1/41 (e)(f)	70,000		73,314
5% 3/1/41 (e)(f)	52,000		54,462
5% 3/1/41 (e)(f)	29,000		30,373
5% 3/1/41 (e)(f)	29,000		30,373
5.5% 12/1/30 to 12/1/39	87,608		93,777
5.5% 3/1/41 (e)(f)	70,600		75,465
6% 7/1/21 to 9/1/39	93,515		101,926
6% 3/1/41 (e)(f)	88,500		96,191
6% 3/1/41 (e)	16,000		17,390
6.5% 5/1/31 to 9/1/38	11,527		12,954
TOTAL FANNIE MAE			1,118,072
Freddie Mac - 2.1%
2.546% 7/1/35 (j)	1,914		2,002
2.665% 8/1/35 (j)	5,708		5,989
3.352% 10/1/35 (j)	223		236
4.5% 7/1/25 to 10/1/40	4,006		4,122
4.5% 3/1/41 (e)	24,000		24,435
4.5% 3/1/41 (e)	18,000		18,326
5% 9/1/39 to 9/1/40	24,482		25,683
5.5% 10/1/38	22,260		23,760
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
6% 7/1/37 to 8/1/37	$ 4,840		$ 5,269
6% 3/1/41 (e)	14,000		15,209
TOTAL FREDDIE MAC			125,031
Ginnie Mae - 3.3%
4% 1/15/25 to 10/20/25	30,661		32,046
4.5% 12/15/33 to 2/15/41 (f)	86,063		89,065
5% 3/1/41 (e)(f)	26,000		27,605
5% 3/1/41 (e)	17,000		18,049
5% 3/1/41 (e)	15,000		15,926
5.5% 12/20/28 to 12/15/38	11,099		12,080
TOTAL GINNIE MAE			194,771
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $1,430,783)		1,437,874
Asset-Backed Securities - 1.6%
Accredited Mortgage Loan Trust Series 2005-1 Class M1, 0.7315% 4/25/35 (j)	1,084		811
ACE Securities Corp. Home Equity Loan Trust:
Series 2004-HE1:
Class M1, 1.0115% 3/25/34 (j)	35		34
Class M2, 1.9115% 3/25/34 (j)	219		178
Series 2005-HE2 Class M2, 0.7115% 4/25/35 (j)	108		101
Series 2006-OP1:
Class M4, 0.6315% 4/25/36 (j)	108		1
Class M5, 0.6515% 4/25/36 (j)	6		0*
Advanta Business Card Master Trust:
Series 2006-C1 Class C1, 0.742% 10/20/14 (j)	32		6
Series 2007-D1 Class D, 1.662% 1/22/13 (d)(j)	6,136		61
Airspeed Ltd. Series 2007-1A Class C1, 2.7658% 6/15/32 (d)(j)	6,122		2,816
Ally Master Owner Trust:
Series 2010-3 Class A, 2.88% 4/15/15 (d)	4,884		5,008
Series 2011-1 Class A2, 2.15% 1/15/16	16,042		16,018
AmeriCredit Prime Automobile Receivables Trust Series 2007-1:
Class D, 5.62% 9/8/14	648		665
Class E, 6.96% 3/8/16 (d)	2,566		2,626
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Ameriquest Mortgage Securities, Inc. pass-thru certificates:
Series 2003-10 Class M1, 0.9615% 12/25/33 (j)	$ 61		$ 52
Series 2004-R2 Class M3, 0.8115% 4/25/34 (j)	85		22
Series 2005-R2 Class M1, 0.7115% 4/25/35 (j)	1,307		1,122
Argent Securities, Inc. pass-thru certificates:
Series 2003-W7 Class A2, 1.04% 3/25/34 (j)	30		24
Series 2004-W7 Class M1, 0.8115% 5/25/34 (j)	808		559
Series 2006-W4 Class A2C, 0.4215% 5/25/36 (j)	883		316
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2004-HE2 Class M1, 1.0865% 4/25/34 (j)	1,690		1,373
Series 2006-HE2 Class M1, 0.6315% 3/25/36 (j)	149		4
Axon Financial Funding Ltd. 2.025% 4/4/17 (b)(d)(j)	5,160		0*
Bank of America Auto Trust Series 2009-1A Class A4, 3.52% 6/15/16 (d)	4,230		4,381
Brazos Higher Education Authority, Inc. Student Loan Rev. Series 2006 A2R, 1.0528% 12/1/41 (j)	385		385
Brazos Higher Education Authority, Inc. Series 2006-2 Class A9, 0.3128% 12/26/24 (j)	1,028		931
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (j)	75		75
Capital Auto Receivables Asset Trust:
Series 2006-2:
Class B, 5.07% 12/15/11	62		62
Class C, 5.31% 6/15/12	742		752
Series 2007-1 Class C, 5.38% 11/15/12	264		274
Capital Trust Ltd. Series 2004-1:
Class A2, 0.712% 7/20/39 (d)(j)	363		272
Class B, 1.012% 7/20/39 (d)(j)	355		163
Class C, 1.362% 7/20/39 (d)(j)	456		68
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	535		544
Carrington Mortgage Loan Trust:
Series 2006-FRE1 Class M1, 0.5615% 7/25/36 (j)	722		46
Series 2006-NC2 Class M7, 1.1115% 6/25/36 (j)	572		2
Series 2006-NC4 Class M1, 0.5615% 10/25/36 (j)	127		10
Series 2006-RFC1 Class M9, 2.1315% 5/25/36 (j)	251		15
Series 2007-RFC1 Class A3, 0.4015% 12/25/36 (j)	1,140		429
Citigroup Mortgage Loan Trust Series 2007-AMC4 Class M1, 0.5315% 5/25/37 (j)	484		75
Countrywide Asset-Backed Certificates Trust:
Series 2007-11 Class 2A1, 0.3215% 6/25/47 (j)	31		31
Series 2007-4 Class A1A, 0.36% 9/25/37 (j)	226		216
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Countrywide Home Loan Trust Series 2006-13 Class N, 7% 8/25/37 (d)	$ 1,666		$ 0
Countrywide Home Loans, Inc.:
Series 2003-BC1 Class B1, 5.5106% 3/25/32 (MGIC Investment Corp. Insured) (j)	61		23
Series 2004-3 Class M4, 1.2315% 4/25/34 (j)	101		42
Series 2004-4 Class M2, 1.0565% 6/25/34 (j)	372		213
Series 2005-3 Class MV1, 0.6815% 8/25/35 (j)	538		515
Series 2005-AB1 Class A2, 0.4715% 8/25/35 (j)	63		62
CPS Auto Receivables Trust Series 2006-D Class A4, 5.115% 8/15/13 (FSA Insured) (d)	241		245
Fannie Mae subordinate REMIC pass-thru certificates Series 2004-T5 Class AB3, 0.6842% 5/28/35 (j)	25		18
Fieldstone Mortgage Investment Corp.:
Series 2004-3 Class M5, 2.4365% 8/25/34 (j)	231		133
Series 2006-3 Class 2A3, 0.4215% 11/25/36 (j)	3,565		1,319
First Franklin Mortgage Loan Trust Series 2004-FF2 Class M3, 1.0865% 3/25/34 (j)	14		4
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (d)	2,736		2,745
Series 2006-C:
Class B, 5.3% 6/15/12	409		415
Class D, 6.89% 5/15/13 (d)	1,938		1,976
Series 2007-A Class D, 7.05% 12/15/13 (d)	1,100		1,154
Ford Credit Floorplan Master Owner Trust:
Series 2006-4 Class B, 0.8158% 6/15/13 (j)	488		487
Series 2010-1 Class A, 1.9158% 12/15/14 (d)(j)	4,254		4,338
Series 2010-5 Class A1, 1.5% 9/15/15	5,563		5,516
Franklin Auto Trust:
Series 2006-1 Class B, 5.14% 7/21/14	28		28
Series 2007-1:
Class A4, 5.03% 2/16/15	116		116
Class C, 5.43% 2/16/15	279		278
Fremont Home Loan Trust:
Series 2005-A:
Class M3, 0.7515% 1/25/35 (j)	600		297
Class M4, 0.9415% 1/25/35 (j)	231		73
Series 2006-D Class M1, 0.4915% 11/25/36 (j)	169		5
GCO Education Loan Funding Master Trust II Series 2007-1A Class C1L, 0.6915% 2/25/47 (d)(j)	2,174		1,283
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (d)	1,344		1,070
GE Business Loan Trust:
Series 2003-1 Class A, 0.6958% 4/15/31 (d)(j)	156		146
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
GE Business Loan Trust: - continued
Series 2006-2A:
Class A, 0.4458% 11/15/34 (d)(j)	$ 1,183		$ 982
Class B, 0.5458% 11/15/34 (d)(j)	429		279
Class C, 0.6458% 11/15/34 (d)(j)	709		355
Class D, 1.0158% 11/15/34 (d)(j)	339		81
Goal Capital Funding Trust Series 2007-1 Class C1, 0.7028% 6/25/42 (j)	421		351
GS Auto Loan Trust Series 2007-1:
Class B, 5.53% 12/15/14	22		23
Class C, 5.74% 12/15/14	20		20
GSAMP Trust:
Series 2004-AR1:
Class B4, 5% 6/25/34 (d)(j)	279		56
Class M1, 0.9115% 6/25/34 (j)	1,630		1,140
Series 2007-HE1 Class M1, 0.5115% 3/25/47 (j)	660		38
Guggenheim Structured Real Estate Funding Ltd.:
Series 2005-1 Class C, 1.3415% 5/25/30 (d)(j)	63		32
Series 2006-3:
Class B, 0.6615% 9/25/46 (d)(j)	519		260
Class C, 0.8115% 9/25/46 (d)(j)	1,211		291
Home Equity Asset Trust:
Series 2003-2 Class M1, 1.5815% 8/25/33 (j)	198		144
Series 2003-3 Class M1, 1.5515% 8/25/33 (j)	495		411
Series 2003-5 Class A2, 0.9615% 12/25/33 (j)	21		15
Series 2005-5 Class 2A2, 0.5115% 11/25/35 (j)	58		57
Series 2006-1 Class 2A3, 0.4865% 4/25/36 (j)	791		771
Series 2006-8 Class 2A1, 0.3115% 3/25/37 (j)	3		3
HSBC Home Equity Loan Trust Series 2006-2 Class M2, 0.552% 3/20/36 (j)	464		387
HSI Asset Securitization Corp. Trust Series 2007-HE1 Class 2A3, 0.4515% 1/25/37 (j)	913		384
JPMorgan Mortgage Acquisition Trust:
Series 2006-NC2 Class M2, 0.5615% 7/25/36 (j)	116		5
Series 2007-CH1:
Class AV4, 0.3915% 11/25/36 (j)	913		785
Class MV1, 0.4915% 11/25/36 (j)	741		491
Series 2007-CH3 Class M1, 0.5615% 3/25/37 (j)	326		17
Keycorp Student Loan Trust:
Series 1999-A Class A2, 0.6328% 12/27/29 (j)	474		407
Series 2006-A Class 2C, 1.4528% 3/27/42 (j)	1,605		296
Long Beach Auto Receivables Trust Series 2007-A Class A4, 5.025% 1/15/14 (FSA Insured)	901		911
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Long Beach Mortgage Loan Trust Series 2004-2 Class M2, 1.3415% 6/25/34 (j)	$ 60		$ 38
Marriott Vacation Club Owner Trust Series 2006-2A:
Class B, 5.442% 10/20/28 (d)	16		15
Class C, 5.691% 10/20/28 (d)	7		7
Class D, 6.01% 10/20/28 (d)	69		57
MASTR Asset Backed Securities Trust:
Series 2006-AM3 Class M1, 0.5215% 10/25/36 (j)	327		18
Series 2007-HE1 Class M1, 0.5615% 5/25/37 (j)	496		26
Meritage Mortgage Loan Trust Series 2004-1 Class M1, 1.0115% 7/25/34 (j)	83		55
Merrill Auto Trust Securitization Series 2007-1 Class B, 5.79% 12/15/13	49		50
Merrill Lynch Mortgage Investors Trust:
Series 2003-OPT1 Class M1, 0.9115% 7/25/34 (j)	299		234
Series 2006-FM1 Class A2B, 0.3715% 4/25/37 (j)	1,225		1,120
Series 2006-MLN1 Class A2A, 0.3315% 7/25/37 (j)	6		6
Series 2006-OPT1 Class A1A, 0.5215% 6/25/35 (j)	1,741		1,429
Morgan Stanley ABS Capital I Trust:
Series 2004-HE6 Class A2, 0.6015% 8/25/34 (j)	36		30
Series 2004-NC8 Class M6, 1.5115% 9/25/34 (j)	101		42
Series 2005-NC1 Class M1, 0.7015% 1/25/35 (j)	253		179
Series 2005-NC2 Class B1, 1.4315% 3/25/35 (j)	264		40
Series 2007-HE2 Class M1, 0.5115% 1/25/37 (j)	150		4
National Collegiate Student Loan Trust:
Series 2004-2 Class AIO, 9.75% 10/25/14 (l)	6,600		908
Series 2006-1 Class AIO, 5.5% 4/25/11 (l)	8,938		69
Series 2006-2 Class AIO, 6% 8/25/11 (l)	5,162		106
Series 2006-3 Class AIO, 7.1% 1/25/12 (l)	27,151		1,222
Series 2006-4:
Class A1, 0.2915% 3/25/25 (j)	81		80
Class AIO, 6.35% 2/27/12 (l)	20,073		1,068
Class D, 1.3615% 5/25/32 (j)	1,227		29
Series 2007-1 Class AIO, 7.27% 4/25/12 (l)	23,975		1,798
Series 2007-2 Class AIO, 6.7% 7/25/12 (l)	17,719		1,479
New Century Home Equity Loan Trust:
Series 2005-4 Class M2, 0.7715% 9/25/35 (j)	903		598
Series 2005-D Class M2, 0.7315% 2/25/36 (j)	429		39
Ocala Funding LLC:
Series 2005-1A Class A, 1.7535% 3/20/49 (b)(d)(j)	449		0
Series 2006-1A Class A, 1.662% 3/20/49 (b)(d)(j)	933		0
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (j)	$ 36		$ 35
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (j)	79		77
Park Place Securities, Inc.:
Series 2004-WCW1:
Class M3, 1.5115% 9/25/34 (j)	337		214
Class M4, 1.7115% 9/25/34 (j)	433		202
Series 2005-WCH1:
Class M2, 0.7815% 1/25/36 (j)	1,296		1,201
Class M3, 0.8215% 1/25/36 (j)	302		214
Class M4, 1.0915% 1/25/36 (j)	935		386
Series 2005-WHQ2:
Class M7, 1.5115% 5/25/35 (j)	1,149		29
Class M9, 2.1415% 5/25/35 (j)	16		0*
Providian Master Note Trust Series 2006-C1A Class C1, 0.8158% 3/15/15 (d)(j)	1,928		1,927
Residential Asset Mortgage Products, Inc. Series 2006-EFC2 Class M1, 0.4915% 12/25/36 (j)	407		13
Residential Asset Securities Corp. Series 2007-KS2 Class AI1, 0.3315% 2/25/37 (j)	34		33
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0615% 4/25/33 (j)	3		3
Saxon Asset Securities Trust Series 2004-1 Class M1, 1.0565% 3/25/35 (j)	966		800
Securitized Asset Backed Receivables LLC Trust:
Series 2005-FR4 Class B3, 1.9815% 1/25/36 (j)	42		1
Series 2006-FR4 Class A2A, 0.3415% 8/25/36 (j)	21		9
Series 2007-NC1 Class A2A, 0.3115% 12/25/36 (j)	7		7
Sierra Receivables Funding Co. Series 2007-1A Class A2, 0.4106% 3/20/19 (FGIC Insured) (d)(j)	447		421
SLM Private Credit Student Loan Trust Series 2004-A Class C, 1.2516% 6/15/33 (j)	805		71
Specialty Underwriting & Residential Finance Trust Series 2006-AB2 Class N1, 5.75% 6/25/37 (d)	374		0
Structured Asset Investment Loan Trust Series 2004-8 Class M5, 1.4115% 9/25/34 (j)	56		23
SVO VOI Mortgage Corp. Series 2006-AA Class A, 5.28% 2/20/24 (d)	382		393
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.1215% 9/25/34 (j)	18		14
Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 0.8628% 4/6/42 (d)(j)	1,713		51
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Triad Auto Receivables Owner Trust Series 2006-C Class A4, 5.31% 5/13/13 (AMBAC Insured)	$ 249		$ 252
WaMu Asset Holdings Corp. Series 2006-8 Class N1, 6.048% 10/25/46 (d)	704		0
WaMu Master Note Trust Series 2006-C2A Class C2, 0.7658% 8/15/15 (d)(j)	5,126		5,109
Wells Fargo Home Equity Trust Series 2004-3 Class A, 4.5% 11/27/34 (a)(d)	6		0
Whinstone Capital Management Ltd. Series 1A Class B3, 2.1031% 10/25/44 (d)(j)	1,419		639
TOTAL ASSET-BACKED SECURITIES (Cost $96,256)		94,891
Collateralized Mortgage Obligations - 1.4%
Private Sponsor - 1.4%
Arran Residential Mortgages Funding No. 1 PLC floater Series 2006-1A Class DB, 0.7331% 4/12/56 (d)(j)	904		897
Banc of America Commercial Mortgage Trust Series 2007-2:
Class B, 5.6983% 4/10/49 (j)	896		442
Class C, 5.6983% 4/10/49 (j)	2,392		1,034
Class D, 5.6983% 4/10/49 (j)	1,197		435
Banc of America Funding Corp. sequential payer Series 2010-R4 Class 2A1, 4.5% 3/26/37 (d)	3,128		3,188
Banc of America Mortgage Securities, Inc.:
Series 2003-L Class 2A1, 2.9055% 1/25/34 (j)	901		851
Series 2004-1 Class 2A2, 3.2375% 10/25/34 (j)	955		867
Series 2004-A Class 2A2, 2.9991% 2/25/34 (j)	124		111
Series 2004-B:
Class 1A1, 2.9237% 3/25/34 (j)	75		68
Class 2A2, 3.0527% 3/25/34 (j)	563		542
Series 2004-D Class 2A2, 2.9567% 5/25/34 (j)	842		773
Series 2004-G Class 2A7, 3.0214% 8/25/34 (j)	777		700
Series 2004-H Class 2A1, 3.1667% 9/25/34 (j)	696		631
Bayview Commercial Asset Trust Series 2006-3A Class IO, 3.2127% 10/25/36 (d)(j)(l)	32,855		2,398
Bear Stearns ALT-A Trust floater Series 2005-1 Class A1, 0.5415% 1/25/35 (j)	1,363		1,134
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T24 Class X2, 0.4264% 10/12/41 (d)(j)(l)	2,101		24
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Chase Mortgage Finance Trust:
Series 2007-A1 Class 1A5, 2.9853% 2/25/37 (j)	$ 840		$ 835
Series 2007-A2 Class 2A1, 3.0618% 7/25/37 (j)	1,004		1,006
Citigroup Commercial Mortgage Trust Series 2008-C7 Class A2B, 6.0995% 12/10/49 (j)	1,095		1,158
Citigroup Mortgage Loan Trust Series 2004-UST1 Class A4, 2.4204% 8/25/34 (j)	720		715
Cobalt CMBS Commercial Mortgage Trust Series 2007-C2 Class B, 5.617% 4/15/47 (j)	1,223		550
COMM pass-thru certificates floater Series 2001-J2A Class A2F, 0.7648% 7/16/34 (d)(j)	817		815
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 2.9234% 11/25/34 (j)	989		926
Credit Suisse Mortgage Capital Certificates sequential payer Series 2010-16 Class A1, 3% 6/25/50 (d)	4,396		4,352
First Horizon Mortgage pass-thru Trust Series 2004-AR5 Class 2A1, 2.8757% 10/25/34 (j)	871		842
Fosse Master Issuer PLC floater Series 2006-1A:
Class B2, 0.4631% 10/18/54 (d)(j)	2,097		2,085
Class C2, 0.7731% 10/18/54 (d)(j)	703		697
Class M2, 0.5531% 10/18/54 (d)(j)	1,204		1,182
Gracechurch Mortgage Financing PLC floater Series 2006-1 Class D2, 0.7825% 11/20/56 (d)(j)	1,711		1,670
Granite Master Issuer PLC floater:
Series 2005-4 Class C2, 1.363% 12/20/54 (j)	117		76
Series 2006-1A Class C2, 1.463% 12/20/54 (d)(j)	5,059		3,255
Series 2006-2 Class C1, 0.733% 12/20/54 (j)	4,271		2,748
Series 2006-3 Class C2, 0.763% 12/20/54 (j)	890		573
Series 2006-4:
Class B1, 0.353% 12/20/54 (j)	2,694		2,223
Class C1, 0.643% 12/20/54 (j)	2,064		1,328
Class M1, 0.433% 12/20/54 (j)	710		536
Series 2007-1:
Class 1C1, 0.863% 12/20/54 (j)	1,688		1,086
Class 1M1, 0.563% 12/20/54 (j)	894		675
Class 2C1, 1.223% 12/20/54 (j)	768		494
Class 2M1, 0.763% 12/20/54 (j)	1,148		867
Series 2007-2 Class 2C1, 0.694% 12/17/54 (j)	1,992		1,282
Granite Mortgages PLC floater Series 2003-3 Class 1C, 2.7531% 1/20/44 (j)	341		256
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
GSR Mortgage Loan Trust Series 2007-AR2 Class 2A1, 2.9085% 4/25/35 (j)	$ 369		$ 320
Harborview Mortgage Loan Trust floater Series 2005-2 Class 2A1A, 0.482% 5/19/35 (j)	232		155
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class A3, 5.447% 6/12/47 (j)	2,077		2,150
JPMorgan Mortgage Trust:
sequential payer Series 2006-A5 Class 3A5, 5.9004% 8/25/36 (j)	1,303		1,089
Series 2004-A3 Class 4A1, 4.29% 7/25/34 (j)	840		814
Series 2006-A2 Class 5A1, 2.9739% 11/25/33 (j)	952		915
LB-UBS Commercial Mortgage Trust sequential payer Series 2006-C6 Class A4, 5.372% 9/15/39	492		529
MASTR Adjustable Rate Mortgages Trust Series 2007-3 Class 22A2, 0.4715% 5/25/47 (j)	640		442
MASTR Asset Backed Securities Trust Series 2006-NC3 Class M1, 0.4915% 10/25/36 (j)	228		1
Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 0.4315% 2/25/37 (j)	1,091		784
Merrill Lynch Floating Trust floater Series 2006-1:
Class B, 0.436% 6/15/22 (d)(j)	190		179
Class C, 0.456% 6/15/22 (d)(j)	936		831
Class D, 0.466% 6/15/22 (d)(j)	452		386
Class E, 0.476% 6/15/22 (d)(j)	576		485
Class F, 0.506% 6/15/22 (d)(j)	955		790
Class G, 0.576% 6/15/22 (d)(j)	271		220
Class H, 0.596% 6/15/22 (d)(j)	433		345
Class J, 0.636% 6/15/22 (d)(j)	505		380
Merrill Lynch Mortgage Investors Trust:
Series 2004-A4 Class A1, 2.7866% 8/25/34 (j)	1,121		1,069
Series 2005-A2 Class A7, 2.6496% 2/25/35 (j)	766		716
Series 2006-A6 Class A4, 3.1889% 10/25/33 (j)	742		714
Opteum Mortgage Acceptance Corp. floater Series 2005-3 Class APT, 0.5515% 7/25/35 (j)	1,445		1,184
Option One Mortgage Loan Trust floater Series 2007-CP1 Class M1, 0.5615% 3/25/37 (j)	1,797		117
Provident Funding Mortgage Loan Trust Series 2005-2 Class 3A, 2.81% 10/25/35 (j)	2,587		2,264
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B:
Class B5, 2.614% 7/10/35 (d)(j)	923		750
Class B6, 3.114% 7/10/35 (d)(j)	1,223		937
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Residential Asset Mortgage Products, Inc. sequential payer:
Series 2003-SL1 Class A31, 7.125% 4/25/31	$ 497		$ 522
Series 2004-SL3 Class A1, 7% 8/25/16	26		26
Residential Funding Securities Corp. floater Series 2003-RP2 Class A1, 0.7115% 6/25/33 (d)(j)	237		194
Salomon Brothers Mortgage Securities VII, Inc. Series 2006-C2 Class H, 6.308% 7/18/33 (d)	194		193
Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 0.8997% 7/20/34 (j)	25		19
Structured Asset Securities Corp.:
Series 2003-15A Class 4A, 5.3732% 4/25/33 (j)	327		317
Series 2003-20 Class 1A1, 5.5% 7/25/33	249		255
TBW Mortgage-Backed pass-thru certificates floater Series 2006-4 Class A3, 0.46% 9/25/36 (j)	2,073		1,475
WaMu Mortgage pass-thru certificates:
Series 2003-AR8 Class A, 2.7159% 8/25/33 (j)	569		541
Series 2005-AR3 Class A2, 2.7112% 3/25/35 (j)	1,519		1,367
Wells Fargo Mortgage Backed Securities Trust:
Series 2004-W Class A9, 2.7616% 11/25/34 (j)	1,734		1,670
Series 2005-AR12 Class 2A6, 2.8181% 7/25/35 (j)	1,901		1,803
Series 2005-AR2 Class 2A2, 2.8076% 3/25/35 (j)	1,276		1,194
Series 2005-AR3 Class 2A1, 2.8794% 3/25/35 (j)	1,047		956
Series 2006-AR8 Class 3A1, 2.8958% 4/25/36 (j)	10,658		9,725
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $67,220)		85,150
Commercial Mortgage Securities - 7.3%
Asset Securitization Corp. Series 1997-D5:
Class A2, 7.0685% 2/14/43 (j)	805		857
Class A3, 7.1185% 2/14/43 (j)	869		939
Class A6, 7.4385% 2/14/43 (j)	1,281		1,361
Class PS1, 1.4561% 2/14/43 (j)(l)	4,082		97
Banc of America Commercial Mortgage Trust:
sequential payer:
Series 2006-2 Class AAB, 5.7218% 5/10/45 (j)	1,279		1,377
Series 2006-3 Class A4, 5.889% 7/10/44 (j)	6,816		7,449
Series 2006-6 Class A3, 5.369% 10/10/45	2,190		2,271
Series 2007-2 Class A1, 5.421% 4/10/49	60		61
Series 2007-4 Class A3, 5.8093% 2/10/51 (j)	1,092		1,152
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Banc of America Commercial Mortgage Trust: - continued
sequential payer:
Series 2006-6 Class E, 5.619% 10/10/45 (d)	$ 633		$ 182
Series 2007-3:
Class A3, 5.6579% 6/10/49 (j)	1,828		1,906
Class A4, 5.6579% 6/10/49 (j)	2,283		2,438
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2001-1 Class A4, 5.451% 1/15/49	2,398		2,555
Series 2004-2:
Class A3, 4.05% 11/10/38	227		230
Class A4, 4.153% 11/10/38	1,389		1,433
Series 2005-1 Class A3, 4.877% 11/10/42	998		1,000
Series 2006-1 Class A1, 5.219% 9/10/45 (j)	79		79
Series 2001-3 Class H, 6.562% 4/11/37 (d)	612		620
Series 2001-PB1:
Class J, 7.166% 5/11/35 (d)	343		338
Class K, 6.15% 5/11/35 (d)	509		485
Series 2005-3 Series A3B, 5.09% 7/10/43 (j)	3,402		3,532
Series 2007-1 Class B, 5.543% 1/15/49	659		529
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class C, 0.5758% 3/15/22 (d)(j)	470		461
Class D, 0.6258% 3/15/22 (d)(j)	476		443
Class E, 0.6658% 3/15/22 (d)(j)	393		358
Class F, 0.7358% 3/15/22 (d)(j)	489		435
Class G, 0.7958% 3/15/22 (d)(j)	317		275
Series 2006-BIX1:
Class C, 0.4458% 10/15/19 (d)(j)	704		679
Class D, 0.4758% 10/15/19 (d)(j)	860		804
Class E, 0.5058% 10/15/19 (d)(j)	797		725
Class F, 0.5758% 10/15/19 (d)(j)	1,885		1,658
Class G, 0.5958% 10/15/19 (d)(j)	759		638
Bayview Commercial Asset Trust:
floater:
Series 2003-2 Class M1, 1.1115% 12/25/33 (d)(j)	61		44
Series 2004-1:
Class A, 0.6215% 4/25/34 (d)(j)	782		692
Class B, 2.1615% 4/25/34 (d)(j)	87		49
Class M1, 0.8215% 4/25/34 (d)(j)	88		68
Class M2, 1.4615% 4/25/34 (d)(j)	81		57
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2004-2:
Class A, 0.6915% 8/25/34 (d)(j)	$ 637		$ 554
Class M1, 0.8415% 8/25/34 (d)(j)	145		107
Series 2004-3:
Class A1, 0.6315% 1/25/35 (d)(j)	1,428		1,228
Class A2, 0.6815% 1/25/35 (d)(j)	205		154
Class M1, 0.7615% 1/25/35 (d)(j)	247		178
Class M2, 1.2615% 1/25/35 (d)(j)	124		84
Series 2005-2A:
Class A1, 0.5715% 8/25/35 (d)(j)	1,092		890
Class M1, 0.6915% 8/25/35 (d)(j)	72		48
Class M2, 0.7415% 8/25/35 (d)(j)	95		59
Class M3, 0.7615% 8/25/35 (d)(j)	66		40
Class M4, 0.8715% 8/25/35 (d)(j)	60		34
Series 2005-3A:
Class A1, 0.5815% 11/25/35 (d)(j)	436		355
Class A2, 0.6615% 11/25/35 (d)(j)	407		322
Class M1, 0.7015% 11/25/35 (d)(j)	109		72
Class M2, 0.7515% 11/25/35 (d)(j)	82		51
Class M3, 0.7715% 11/25/35 (d)(j)	73		42
Class M4, 0.8615% 11/25/35 (d)(j)	92		49
Series 2005-4A:
Class A2, 0.6515% 1/25/36 (d)(j)	1,004		783
Class B1, 1.6615% 1/25/36 (d)(j)	109		41
Class M1, 0.7115% 1/25/36 (d)(j)	324		215
Class M2, 0.7315% 1/25/36 (d)(j)	122		76
Class M3, 0.7615% 1/25/36 (d)(j)	178		101
Class M4, 0.8715% 1/25/36 (d)(j)	98		51
Class M5, 0.9115% 1/25/36 (d)(j)	98		47
Class M6, 0.9615% 1/25/36 (d)(j)	105		43
Series 2006-1:
Class A2, 0.6215% 4/25/36 (d)(j)	193		155
Class M1, 0.6415% 4/25/36 (d)(j)	117		76
Class M2, 0.6615% 4/25/36 (d)(j)	124		76
Class M3, 0.6815% 4/25/36 (d)(j)	107		61
Class M4, 0.7815% 4/25/36 (d)(j)	60		32
Class M5, 0.8215% 4/25/36 (d)(j)	59		28
Class M6, 0.9015% 4/25/36 (d)(j)	117		53
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2006-2A:
Class A1, 0.4915% 7/25/36 (d)(j)	$ 2,674		$ 2,139
Class A2, 0.5415% 7/25/36 (d)(j)	173		131
Class B1, 1.1315% 7/25/36 (d)(j)	110		39
Class B3, 2.9615% 7/25/36 (d)(j)	98		25
Class M1, 0.5715% 7/25/36 (d)(j)	181		103
Class M2, 0.5915% 7/25/36 (d)(j)	128		68
Class M3, 0.6115% 7/25/36 (d)(j)	106		51
Class M4, 0.6815% 7/25/36 (d)(j)	121		52
Class M5, 0.7315% 7/25/36 (d)(j)	88		36
Class M6, 0.8015% 7/25/36 (d)(j)	131		47
Series 2006-3A:
Class B1, 1.0615% 10/25/36 (d)(j)	117		21
Class B2, 1.6115% 10/25/36 (d)(j)	143		21
Class B3, 2.8615% 10/25/36 (d)(j)	137		16
Class M4, 0.6915% 10/25/36 (d)(j)	129		48
Class M5, 0.7415% 10/25/36 (d)(j)	154		51
Class M6, 0.8215% 10/25/36 (d)(j)	302		76
Series 2006-4A:
Class A1, 0.4915% 12/25/36 (d)(j)	507		408
Class A2, 0.5315% 12/25/36 (d)(j)	2,574		1,930
Class B1, 0.9615% 12/25/36 (d)(j)	160		28
Class B2, 1.5115% 12/25/36 (d)(j)	164		25
Class B3, 2.7115% 12/25/36 (d)(j)	172		20
Class M1, 0.5515% 12/25/36 (d)(j)	207		120
Class M2, 0.5715% 12/25/36 (d)(j)	138		75
Class M3, 0.6015% 12/25/36 (d)(j)	140		69
Class M4, 0.6615% 12/25/36 (d)(j)	168		74
Class M5, 0.7015% 12/25/36 (d)(j)	153		64
Class M6, 0.7815% 12/25/36 (d)(j)	138		51
Series 2007-1:
Class A2, 0.5315% 3/25/37 (d)(j)	555		394
Class B1, 0.9315% 3/25/37 (d)(j)	221		44
Class B2, 1.4115% 3/25/37 (d)(j)	160		26
Class B3, 3.6115% 3/25/37 (d)(j)	351		39
Class M1, 0.5315% 3/25/37 (d)(j)	195		94
Class M2, 0.5515% 3/25/37 (d)(j)	146		63
Class M3, 0.5815% 3/25/37 (d)(j)	193		73
Class M4, 0.6315% 3/25/37 (d)(j)	157		55
Class M5, 0.6815% 3/25/37 (d)(j)	163		51
Class M6, 0.7615% 3/25/37 (d)(j)	227		57
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2007-2A:
Class A1, 0.5315% 7/25/37 (d)(j)	$ 1,405		$ 1,040
Class A2, 0.5815% 7/25/37 (d)(j)	1,316		645
Class B1, 1.8615% 7/25/37 (d)(j)	394		51
Class B2, 2.5115% 7/25/37 (d)(j)	343		41
Class B3, 3.6115% 7/25/37 (d)(j)	385		35
Class M1, 0.6315% 7/25/37 (d)(j)	449		142
Class M2, 0.6715% 7/25/37 (d)(j)	293		85
Class M3, 0.7515% 7/25/37 (d)(j)	296		73
Class M4, 0.9115% 7/25/37 (d)(j)	492		88
Class M5, 1.0115% 7/25/37 (d)(j)	434		65
Class M6, 1.2615% 7/25/37 (d)(j)	551		77
Series 2007-3:
Class A2, 0.5515% 7/25/37 (d)(j)	553		370
Class B1, 1.2115% 7/25/37 (d)(j)	333		43
Class B2, 1.8615% 7/25/37 (d)(j)	858		86
Class B3, 4.2615% 7/25/37 (d)(j)	445		36
Class M1, 0.5715% 7/25/37 (d)(j)	293		132
Class M2, 0.6015% 7/25/37 (d)(j)	313		110
Class M3, 0.6315% 7/25/37 (d)(j)	504		151
Class M4, 0.7615% 7/25/37 (d)(j)	794		222
Class M5, 0.8615% 7/25/37 (d)(j)	402		88
Class M6, 1.0615% 7/25/37 (d)(j)	305		61
Series 2007-4A:
Class B1, 2.8115% 9/25/37 (d)(j)	240		8
Class B2, 3.7115% 9/25/37 (d)(j)	695		17
Class M1, 1.2115% 9/25/37 (d)(j)	232		35
Class M2, 1.3115% 9/25/37 (d)(j)	232		28
Class M4, 1.8615% 9/25/37 (d)(j)	471		42
Class M5, 2.0115% 9/25/37 (d)(j)	471		33
Class M6, 2.2115% 9/25/37 (d)(j)	472		28
Series 2004-1 Class IO, 1.25% 4/25/34 (d)(l)	3,052		107
Series 2007-5A Class IO, 3.047% 10/25/37 (d)(j)(l)	7,307		867
Bear Stearns Commercial Mortgage Securities Trust:
floater:
Series 2006-BBA7:
Class G, 0.7058% 3/15/19 (d)(j)	510		426
Class H, 0.9158% 3/15/19 (d)(j)	429		319
Class J, 1.1158% 3/15/19 (d)(j)	323		229
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bear Stearns Commercial Mortgage Securities Trust: - continued
floater:
Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (d)(j)	$ 489		$ 401
Class E, 0.5658% 3/15/22 (d)(j)	2,030		1,563
Class F, 0.6158% 3/15/22 (d)(j)	1,246		897
Class G, 0.6658% 3/15/22 (d)(j)	401		277
Class H, 0.8158% 3/15/22 (d)(j)	489		308
Class J, 0.9658% 3/15/22 (d)(j)	489		245
sequential payer:
Series 2003-PWR2 Class A3, 4.834% 5/11/39	294		298
Series 2004-PWR3 Class A3, 4.487% 2/11/41	632		642
Series 2006-T24 Class A1, 4.905% 10/12/41 (j)	66		67
Series 2007-PW16 Class A4, 5.7174% 6/11/40 (j)	641		697
Series 2007-PW17 Class A1, 5.282% 6/11/50	381		387
Series 2007-T26 Class A1, 5.145% 1/12/45 (j)	189		193
Series 2003-PWR2 Class X2, 0.5297% 5/11/39 (d)(j)(l)	9,682		30
Series 2006-PW13 Class A3, 5.518% 9/11/41	3,864		4,048
Series 2006-PW14 Class X2, 0.6525% 12/11/38 (d)(j)(l)	15,640		280
Series 2006-T22 Class A4, 5.514% 4/12/38 (j)	137		150
Series 2007-PW16:
Class B, 5.7174% 6/11/40 (d)(j)	176		118
Class C, 5.7174% 6/11/40 (d)(j)	146		82
Class D, 5.7174% 6/11/40 (d)(j)	146		76
Series 2007-PW18 Class X2, 0.3155% 6/11/50 (d)(j)(l)	119,638		1,442
Series 2007-T28 Class X2, 0.1785% 9/11/42 (d)(j)(l)	58,943		444
C-BASS Trust floater Series 2006-SC1 Class A, 0.5315% 5/25/36 (d)(j)	542		404
CDC Commercial Mortgage Trust Series 2002-FX1:
Class G, 6.625% 5/15/35 (d)	1,287		1,367
Class XCL, 2.1173% 5/15/35 (d)(j)(l)	14,616		322
Chase Commercial Mortgage Securities Corp. Series 2000-3 Class G 6.887% 10/15/32 (d)	5,748		5,729
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2:
Class F, 0.574% 8/15/21 (d)(j)	391		381
Class G, 0.594% 8/15/21 (d)(j)	326		305
Class H, 0.634% 8/15/21 (d)(j)	261		235
Series 2006-C5 Class AMP2, 5.5005% 10/15/49 (d)	1,655		1,498
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Citigroup Commercial Mortgage Trust: - continued
floater Series
Series 2007-C6:
Class A1, 5.622% 12/10/49 (j)	$ 272		$ 273
Class A2, 5.6981% 12/10/49 (j)	1,093		1,135
Class A4, 5.6981% 12/10/49 (j)	3,631		3,935
Series 2007-FL3A Class A2, 0.4058% 4/15/22 (d)(j)	3,955		3,795
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4:
Class A2A, 5.237% 12/11/49	857		865
Class A4, 5.322% 12/11/49	12,679		13,364
Series 2007-CD4:
Class A3, 5.293% 12/11/49	1,066		1,097
Class C, 5.476% 12/11/49	2,061		721
Cobalt CMBS Commercial Mortgage Trust:
sequential payer Series 2007-C3 Class A3, 5.8155% 5/15/46 (j)	1,095		1,173
Cobalt CMBS Commercial Mortgage Trust: - continued
Series 2006-C1 Class B, 5.359% 8/15/48	3,285		1,807
COMM pass-thru certificates:
floater:
Series 2005-F10A:
Class B, 0.4958% 4/15/17 (d)(j)	2,955		2,748
Class C, 0.5358% 4/15/17 (d)(j)	881		811
Class D, 0.5758% 4/15/17 (d)(j)	601		547
Class E, 0.6358% 4/15/17 (d)(j)	192		171
Class F, 0.6758% 4/15/17 (d)(j)	109		93
Class G, 0.8158% 4/15/17 (d)(j)	109		89
Class H, 0.8858% 4/15/17 (d)(j)	109		84
Class J, 1.1158% 4/15/17 (d)(j)	104		73
Series 2005-FL11:
Class C, 0.5658% 11/15/17 (d)(j)	836		794
Class D, 0.6058% 11/15/17 (d)(j)	44		41
Class E, 0.6558% 11/15/17 (d)(j)	154		142
Class F, 0.7158% 11/15/17 (d)(j)	118		107
Class G, 0.7658% 11/15/17 (d)(j)	81		73
Series 2006-FL12 Class AJ, 0.3958% 12/15/20 (d)(j)	1,560		1,443
sequential payer:
Series 2005-C6 Class A2, 4.999% 6/10/44 (j)	11		11
Series 2006-C8:
Class A3, 5.31% 12/10/46	3,121		3,243
Class A4, 5.306% 12/10/46	14,677		15,520
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
COMM pass-thru certificates: - continued
sequential payer:
Series 2006-CN2A:
Class A2FX, 5.449% 2/5/19 (d)	$ 1,851		$ 1,851
Class AJFX, 5.478% 2/5/19 (d)	3,272		3,267
Series 2007-C9 Class A4, 5.8148% 12/10/49 (j)	2,423		2,647
Series 2004-LBN2 Class X2, 0.8571% 3/10/39 (d)(j)(l)	1,844		0*
Series 2006-C8:
Class B, 5.44% 12/10/46	1,896		1,252
Class XP, 0.4911% 12/10/46 (j)(l)	11,356		138
Credit Suisse Commercial Mortgage Trust:
sequential payer:
Series 2006-C4 Class A3, 5.467% 9/15/39	5,651		6,043
Series 2007-C2 Class A3, 5.542% 1/15/49 (j)	2,190		2,300
Series 2007-C3 Class A4, 5.7203% 6/15/39 (j)	658		701
Series 2006-C4 Class AAB, 5.439% 9/15/39	6,232		6,524
Series 2006-C5 Class ASP, 0.6744% 12/15/39 (j)(l)	6,913		125
Series 2007-C5 Class A4, 5.695% 9/15/40 (j)	991		1,043
Credit Suisse First Boston Mortgage Capital Certificates floater Series 2007-TF2A Class B, 0.6158% 4/15/22 (d)(j)	3,907		3,047
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer:
Series 2001-CK6 Class B, 6.582% 8/15/36	1,095		1,121
Series 2002-CP5 Class A1, 4.106% 12/15/35	54		54
Series 2004-C1:
Class A3, 4.321% 1/15/37	185		187
Class A4, 4.75% 1/15/37	510		536
Series 2001-CK6 Class AX, 0.8911% 8/15/36 (j)(l)	3,411		13
Series 2001-CKN5 Class AX, 1.9441% 9/15/34 (d)(j)(l)	9,648		37
Series 2004-C1 Class ASP, 0.9583% 1/15/37 (d)(j)(l)	66,274		11
Series 2006-C1 Class A3, 5.5457% 2/15/39 (j)	5,781		6,115
Credit Suisse Mortgage Capital Certificates:
floater Series 2007-TFL1:
Class B, 0.4158% 2/15/22 (d)(j)	414		373
Class C:
0.4358% 2/15/22 (d)(j)	1,180		1,038
0.5358% 2/15/22 (d)(j)	421		354
Class F, 0.5858% 2/15/22 (d)(j)	843		692
Series 2007-C1:
Class ASP, 0.4157% 2/15/40 (j)(l)	25,686		250
Class B, 5.487% 2/15/40 (d)(j)	1,677		252
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1:
Class D, 6.484% 3/15/33	$ 390		$ 390
Class G, 6.936% 3/15/33 (d)	903		906
GE Capital Commercial Mortgage Corp.:
sequential payer Series 2007-C1 Class A4, 5.543% 12/10/49	5,444		5,737
Series 2001-1 Class X1, 0.9778% 5/15/33 (d)(j)(l)	5,006		54
Series 2007-C1 Class XP, 0.2003% 12/10/49 (j)(l)	23,826		126
GMAC Commercial Mortgage Securities, Inc.:
Series 2004-C3 Class X2, 0.6179% 12/10/41 (j)(l)	4,597		20
Series 2005-C1 Class X2, 0.5542% 5/10/43 (j)(l)	5,224		39
Greenwich Capital Commercial Funding Corp.:
floater Series 2006-FL4 Class B, 0.453% 11/5/21 (d)(j)	412		389
sequential payer:
Series 2007-GG11 Class A2, 5.597% 12/10/49	2,190		2,295
Series 2007-GG9 Class A4, 5.444% 3/10/39	3,184		3,401
Series 2005-GG3 Class XP, 0.6927% 8/10/42 (d)(j)(l)	22,965		152
Series 2006-GG7:
Class A3, 5.8829% 7/10/38 (j)	2,887		3,046
Class A4, 5.8829% 7/10/38 (j)	8,476		9,309
Series 2007-GG11 Class A1, 0.4798% 12/10/49 (d)(l)	31,597		281
GS Mortgage Securities Corp. II:
floater: Series 2006-FL8A:
Class C, 0.503% 6/6/20 (d)(j)	69		65
Class D, 0.543% 6/6/20 (d)(j)	261		240
Class E, 0.633% 6/6/20 (d)(j)	302		272
Class F, 0.703% 6/6/20 (d)(j)	528		465
Series 2007-EOP:
Class C, 2.1455% 3/6/20 (d)(j)	1,041		1,016
Class D, 2.3636% 3/6/20 (d)(j)	6,868		6,683
Class F, 2.8433% 3/6/20 (d)(j)	107		104
Class G, 3.0177% 3/6/20 (d)(j)	54		52
Class H, 3.5846% 3/6/20 (d)(j)	479		459
Class J, 4.4568% 3/6/20 (d)(j)	686		644
sequential payer Series 2004-GG2 Class A4, 4.964% 8/10/38	339		343
Series 2005-GG4 Class XP, 0.7101% 7/10/39 (d)(j)(l)	24,991		222
GS Mortgage Securities Trust sequential payer:
Series 2006-GG8 Class A2, 5.479% 11/10/39	1,642		1,664
Series 2007-GG10:
Class A1, 5.69% 8/10/45	20		20
Class A2, 5.778% 8/10/45	522		535
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8 Class X2, 1.1472% 1/12/39 (d)(j)(l)	$ 1,674		$ 0
Series 2006-LDP7 Class A4, 5.8745% 4/15/45 (j)	2,953		3,233
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class B, 0.4358% 11/15/18 (d)(j)	713		670
Class C, 0.4758% 11/15/18 (d)(j)	506		476
Class D, 0.4958% 11/15/18 (d)(j)	200		188
Class E, 0.5458% 11/15/18 (d)(j)	288		254
Class F, 0.5958% 11/15/18 (d)(j)	345		297
floater Series 2006-FLA2:
Class G, 0.6258% 11/15/18 (d)(j)	300		252
Class H, 0.7658% 11/15/18 (d)(j)	288		233
sequential payer:
Series 2006-LDP8 Class A4, 5.399% 5/15/45	698		751
Series 2006-LDP9:
Class A2, 5.134% 5/15/47 (j)	520		538
Class A3, 5.336% 5/15/47	457		486
Series 2007-CB19 Class A4, 5.7447% 2/12/49 (j)	3,840		4,136
Series 2007-CB20 Class A4, 5.794% 2/12/51	5,462		5,932
Series 2007-LD11 Class A2, 5.8025% 6/15/49 (j)	3,074		3,181
Series 2007-LDP10 Class A1, 5.122% 1/15/49	17		17
Series 2007-LDPX:
Class A2 S, 5.305% 1/15/49	2,481		2,537
Class A3, 5.412% 1/15/49	17,842		18,963
Series 2005-CB13 Class E, 5.3502% 1/12/43 (d)(j)	694		72
Series 2006-CB17 Class A3, 5.45% 12/12/43	312		323
Series 2007-CB19:
Class B, 5.7447% 2/12/49 (j)	93		55
Class C, 5.7447% 2/12/49 (j)	245		125
Class D, 5.7447% 2/12/49 (j)	257		120
Series 2007-LDP10:
Class BS, 5.437% 1/15/49 (j)	209		134
Class CS, 5.466% 1/15/49 (j)	90		49
Class ES, 5.5411% 1/15/49 (d)(j)	566		144
JPMorgan Commercial Mortgage Finance Corp. Series 2000-C9 Class G, 6.25% 10/15/32 (d)	371		371
LB Commercial Conduit Mortgage Trust:
sequential payer Series 2007-C3 Class A4, 5.948% 7/15/44 (j)	19,559		21,104
Series 1998-C1 Class D, 6.98% 2/18/30	328		328
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2001-C2 Class A2, 6.653% 11/15/27	$ 10		$ 10
Series 2006-C1 Class A2, 5.084% 2/15/31	277		278
Series 2006-C6:
Class A1, 5.23% 9/15/39	94		94
Class A2, 5.262% 9/15/39 (j)	1,911		1,930
Series 2006-C7:
Class A1, 5.279% 11/15/38	35		35
Class A2, 5.3% 11/15/38	1,204		1,224
Series 2006-C7:
Class A3, 5.347% 11/15/38	816		874
Series 2007-C1:
Class A1, 5.391% 2/15/40 (j)	83		85
Class A4, 5.424% 2/15/40	6,667		7,153
Series 2007-C2 Class A3, 5.43% 2/15/40	1,996		2,130
Series 2001-C3 Class B, 6.512% 6/15/36	2,117		2,149
Series 2001-C7 Class D, 6.514% 11/15/33	1,204		1,232
Series 2004-C2 Class XCP, 1.0355% 3/15/36 (d)(j)(l)	12,644		5
Series 2005-C3 Class XCP, 0.7544% 7/15/40 (j)(l)	4,247		34
Series 2006-C6 Class XCP, 0.6752% 9/15/39 (j)(l)	6,323		105
Series 2007-C1 Class XCP, 0.4772% 2/15/40 (j)(l)	2,356		30
Series 2007-C6 Class A4, 5.858% 7/15/40 (j)	1,368		1,477
Series 2007-C7:
Class A3, 5.866% 9/15/45	1,162		1,254
Class XCP, 0.2848% 9/15/45 (j)(l)	105,287		1,036
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class D, 0.4958% 9/15/21 (d)(j)	351		316
Class E, 0.5558% 9/15/21 (d)(j)	1,265		1,113
Class F, 0.6058% 9/15/21 (d)(j)	723		615
Class G, 0.6258% 9/15/21 (d)(j)	1,429		1,158
Class H, 0.6658% 9/15/21 (d)(j)	369		288
Lehman Large Loan Trust Series 1997-LLI Class E, 7.3% 10/12/34	1,943		1,992
Merrill Lynch Mortgage Trust:
sequential payer:
Series 2004-MKB1 Class A2, 4.353% 2/12/42	32		32
Series 2005-CIP1 Class A2, 4.96% 7/12/38	2,579		2,610
Series 2005-CKI1 Class A3, 5.2412% 11/12/37 (j)	1,798		1,832
Series 2005-LC1 Class F, 5.3853% 1/12/44 (d)(j)	953		486
Series 2006-C1 Class A2, 5.6109% 5/12/39 (j)	1,295		1,334
Series 2007-C1 Class A4, 5.8261% 6/12/50 (j)	4,145		4,500
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Merrill Lynch Mortgage Trust: - continued
sequential payer:
Series 2008-C1 Class A4, 5.69% 2/12/51	$ 2,338		$ 2,504
Merrill Lynch-CFC Commercial Mortgage Trust:
floater Series 2006-4 Class A2FL, 0.3813% 12/12/49 (j)	499		487
sequential payer:
Series 2006-1 CLass A3, 5.4839% 2/12/39 (j)	1,165		1,211
Series 2006-4 Class ASB, 5.133% 12/12/49 (j)	941		1,000
Series 2007-5:
Class A3, 5.364% 8/12/48	427		439
Class A4, 5.378% 8/12/48	55		58
Class B, 5.479% 2/12/17	3,285		1,443
Series 2007-6:
Class A1, 5.175% 3/12/51	37		38
Class A4, 5.485% 3/12/51 (j)	2,594		2,724
Series 2007-7 Class A4, 5.7439% 6/12/50 (j)	3,832		4,076
Series 2007-8 Class A1, 4.622% 8/12/49	165		167
Series 2006-4 Class XP, 0.6112% 12/12/49 (j)(l)	23,869		459
Series 2007-6 Class B, 5.635% 3/12/51 (j)	1,095		536
Series 2007-7 Class B, 5.75% 6/12/50	1,409		320
Series 2007-8 Class A3, 5.9645% 8/12/49 (j)	944		1,022
Morgan Stanley Capital I Trust:
floater:
Series 2006-XLF Class C, 1.466% 7/15/19 (d)(j)	227		118
Series 2007-XCLA Class A1, 0.466% 7/17/17 (d)(j)	1,545		1,391
Series 2007-XLFA:
Class C, 0.426% 10/15/20 (d)(j)	629		528
Class D, 0.456% 10/15/20 (d)(j)	422		317
Class E, 0.516% 10/15/20 (d)(j)	528		343
Class F, 0.566% 10/15/20 (d)(j)	397		199
Class G, 0.606% 10/15/20 (d)(j)	491		197
Class H, 0.696% 10/15/20 (d)(j)	309		31
Class J, 0.846% 10/15/20 (d)(j)	353		18
Class MHRO, 0.956% 10/15/20 (d)(j)	417		133
Class MJPM, 1.266% 10/15/20 (d)(j)	29		22
Class MSTR, 0.966% 10/15/20 (d)(j)	300		96
Class NHRO, 1.156% 10/15/20 (d)(j)	503		111
Class NSTR, 1.116% 10/15/20 (d)(j)	276		61
sequential payer:
Series 2003-IQ5 Class X2, 0.9108% 4/15/38 (d)(j)(l)	3,777		18
Series 2005-IQ9 Class A3, 4.54% 7/15/56	1,626		1,668
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Morgan Stanley Capital I Trust: (continued)
sequential payer:
Series 2007-HQ11:
Class A1, 5.246% 2/12/44	$ 75		$ 75
Class A31, 5.439% 2/12/44 (j)	8,687		9,022
Series 2007-IQ13 Class A1, 5.05% 3/15/44	159		160
Series 2007-IQ14 Class A1, 5.38% 4/15/49	118		120
Series 2007-IQ15 Class A4, 5.8793% 6/11/49 (j)	4,988		5,412
Series 2007-T25 Class A1, 5.391% 11/12/49	105		107
Series 2007-T27 Class A4, 5.6497% 6/11/42 (j)	4,010		4,369
Series 2003-IQ6 Class X2, 0.5897% 12/15/41 (d)(j)(l)	8,119		40
Series 2005-IQ9 Class X2, 1.0924% 7/15/56 (d)(j)(l)	14,512		140
Series 2006-HQ10 Class X2, 0.4925% 11/12/41 (d)(j)(l)	5,430		50
Series 2006-HQ8 Class A3, 5.442% 3/12/44 (j)	1,698		1,718
Series 2006-IQ11 Class A4, 5.7317% 10/15/42 (j)	329		360
Series 2006-IQ12 Class B, 5.468% 12/15/43	1,095		712
Series 2006-T23 Class A3, 5.803% 8/12/41 (j)	559		597
Series 2007-HQ11 Class B, 5.538% 2/20/44 (j)	1,986		1,490
Series 2007-HQ12 Class A4, 5.5971% 4/12/49 (j)	5,793		5,984
Series 2007-IQ14:
Class A4, 5.692% 4/15/49 (j)	1,642		1,739
Class AAB, 5.654% 4/15/49	2,402		2,543
Class B, 5.7308% 4/15/49 (j)	269		148
Structured Asset Securities Corp. Series 1997-LLI Class D, 7.15% 10/12/34	100		102
TrizecHahn Office Properties Trust Series 2001-TZHA Class C4, 6.893% 5/15/16 (d)	681		687
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2005-WL5A Class K, 1.4658% 1/15/18 (d)(j)	809		776
Series 2006-WL7A:
Class E, 0.544% 9/15/21 (d)(j)	1,099		855
Class F, 0.604% 8/11/18 (d)(j)	1,189		797
Class G, 0.624% 8/11/18 (d)(j)	1,126		691
Class J, 0.864% 8/11/18 (d)(j)	314		146
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (d)(j)	105		74
Class AP2, 1.0658% 6/15/20 (d)(j)	175		114
Class F, 0.7458% 6/15/20 (d)(j)	2,710		1,762
Class LXR1, 0.9658% 6/15/20 (d)(j)	169		142
Class LXR2, 1.0658% 6/15/20 (d)(j)	1,847		1,459
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust: - (continued)
sequential payer:
Series 2003-C7 Class A1, 4.241% 10/15/35 (d)	$ 1,514		$ 1,525
Series 2006-C27 Class A2, 5.624% 7/15/45	891		898
Series 2006-C28 Class A4, 5.572% 10/15/48	5,427		5,812
Series 2006-C29:
Class A1, 5.11% 11/15/48	186		188
Class A3, 5.313% 11/15/48	2,908		3,041
Series 2007-C30:
Class A1, 5.031% 12/15/43	5		5
Class A3, 5.246% 12/15/43	940		967
Class A4, 5.305% 12/15/43	322		329
Class A5, 5.342% 12/15/43	1,172		1,223
Series 2007-C31:
Class A1, 5.14% 4/15/47	2		2
Class A4, 5.509% 4/15/47	2,475		2,606
Series 2007-C32:
Class A2, 5.7406% 6/15/49 (j)	1,314		1,370
Class A3, 5.7456% 6/15/49 (j)	15,651		16,684
Series 2003-C6 Class G, 5.125% 8/15/35 (d)(j)	652		644
Series 2004-C15:
Class 180A, 5.5782% 10/15/41 (d)(j)	1,055		1,013
Class 180B, 5.5782% 10/15/41 (d)(j)	480		451
Series 2005-C19 Class B, 4.892% 5/15/44	1,095		1,012
Series 2005-C22:
Class B, 5.3619% 12/15/44 (j)	2,428		2,172
Class F, 5.3619% 12/15/44 (d)(j)	1,826		1,034
Series 2006-C29 Class E, 5.516% 11/15/48 (j)	1,095		591
Series 2007-C30:
Class C, 5.483% 12/15/43 (j)	3,285		1,700
Class D, 5.513% 12/15/43 (j)	1,752		713
Class XP, 0.4403% 12/15/43 (d)(j)(l)	15,237		185
Series 2007-C31 Class C, 5.6933% 4/15/47 (j)	4,515		2,327
Series 2007-C31A Class A2, 5.421% 4/15/47	3,929		4,064
Series 2007-C32:
Class D, 5.7456% 6/15/49 (j)	823		443
Class E, 5.7456% 6/15/49 (j)	1,297		548
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust pass-thru certificates:
sequential payer Series 2007-C33 Class A5, 5.8994% 2/15/51 (j)	$ 725		$ 782
Series 2007-C33 Class B, 5.8994% 2/15/51 (j)	1,841		1,358
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $349,497)		432,980
Municipal Securities - 0.3%
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 1/1/35 (j)	1,835		1,791
California Gen. Oblig.:
7.5% 4/1/34	6,295		6,736
7.55% 4/1/39	4,599		4,963
Illinois Gen. Oblig.:
5.665% 3/1/18 (e)	3,235		3,242
5.877% 3/1/19 (e)	2,885		2,893
TOTAL MUNICIPAL SECURITIES (Cost $18,909)		19,625
Supranational Obligations - 0.0%
Corporacion Andina de Fomento 5.2% 5/21/13 (Cost $410)	412		438

Fixed-Income Funds - 14.0%
	Shares
Fidelity Mortgage Backed Securities Central Fund (k)	6,768,477		708,660
Fidelity Specialized High Income Central Fund (k)	1,212,444		123,936
TOTAL FIXED-INCOME FUNDS (Cost $799,069)		832,596
Preferred Securities - 0.1%
	Principal Amount (000s)
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
MUFG Capital Finance 1 Ltd. 6.346% (j) (Cost $2,822)	$ 2,773		2,856
Cash Equivalents - 3.0%
	Maturity Amount (000s)		Value (000s)
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $179,341)	$ 179,342		$ 179,341
TOTAL INVESTMENT PORTFOLIO - 112.7% (Cost $6,466,186)			6,683,980
NET OTHER ASSETS (LIABILITIES) - (12.7)%			(754,648)
NET ASSETS - 100%		$ 5,929,332

Swap Agreements
	Expiration Date	Notional Amount (000s)
Credit Default Swaps
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Credit Suisse First Boston upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $2,116,000) (i)	Sept. 2037	$ 6,191	(5,787)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Credit Suisse First Boston upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $5,250,000) (i)	Sept. 2037	16,823	(15,725)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to JPMorgan Chase, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $1,302,000) (i)	Sept. 2037	3,768	(3,522)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to JPMorgan Chase, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $4,321,000) (i)	Sept. 2037	12,583	(11,762)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Morgan Stanley, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $2,754,000) (i)	Sept. 2037	$ 6,864	$ (6,416)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to UBS upon each credit event of one of the issues of ABX AA 07-1 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $3,716,000) (i)	Sept. 2037	11,237	(10,504)
Receive monthly notional amount multiplied by .82% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34 (h)	August 2034	574	(318)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34 (h)	Oct. 2034	563	(234)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32 (Rating-Ba1) (h)	April 2032	186	(109)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34 (Rating-C) (h)	Feb. 2034	4	(3)
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 7.2913% 9/25/34 (Rating-B1) (h)	Oct. 2034	743	(281)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7, Class B3, 9.01% 8/25/34 (Rating-C) (h)	Sept. 2034	$ 561	$ (424)
Receive quarterly notional amount multiplied by 4% and pay Morgan Stanley, Inc. upon credit event of Developers Diversified Realty Corp., par value of the notional amount of Developers Diversified Realty Corp. 5.375% 10/15/12 (Rating-Baa3) (h)	March 2013	13,500	1,021
TOTAL CREDIT DEFAULT SWAPS		$ 73,597	$ (54,064)
Interest Rate Swaps
Receive quarterly a floating rate based on 3-month LIBOR and pay semi-annually a fixed rate equal to 4.5176% with JPMorgan Chase, Inc.	Feb. 2041	52,089	(2,276)
		$ 125,686	$ (56,340)

Legend

(a) Non-income producing

(b) Non-income producing - Security is in default.

(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $360,417,000 or 6.1% of net assets.

(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(f) A portion of the security is subject to a forward commitment to sell.

(g) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $58,846,000.

(h) Represents a credit default swap contract in which the Fund has sold protection on the underlying reference entity. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. For the underlying reference entity, ratings disclosed are from Moody's Investors Service, Inc. Where Moody's ratings are not available, S&P ratings are disclosed and are indicated as such. All ratings are as of the report date and do not reflect subsequent changes. Where a credit rating is not disclosed, the value is used as the measure of the payment/performance risk.

(i) Represents a credit default swap based on a tradable index of home equity asset-backed debt securities. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. In addition, the swap represents a contract in which the Fund has sold protection on the index of underlying securities. Ratings represent a weighted average of the ratings of all securities included in the index. Ratings used in the weighted average are from Moody's Investors Service, Inc., or S&P where Moody's ratings are not available. All ratings are as of the report date and do not reflect subsequent changes.

(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(k) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, are available on the SEC's web site or upon request.

(l) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

* Amount represents less than $1,000.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$179,341,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 14,988
Bank of America NA	13,323
Barclays Capital, Inc.	7,419
Credit Agricole Securities (USA), Inc.	6,662
Deutsche Bank Securities, Inc.	7,644
Goldman, Sachs & Co.	1,665
HSBC Securities (USA), Inc.	19,985
ING Financial Markets LLC	12,324
J.P. Morgan Securities, Inc.	19,985
Merrill Lynch Government Securities, Inc.	5,995
Merrill Lynch, Pierce, Fenner & Smith, Inc.	9,197
Mizuho Securities USA, Inc.	36,639
RBC Capital Markets Corp.	1,665
Societe Generale, New York Branch	13,323
Wells Fargo Securities LLC	8,527
	$ 179,341

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned (Amounts in thousands)
Fidelity Mortgage Backed Securities Central Fund	$ 13,516
Fidelity Specialized High Income Central Fund	4,961
Total	$ 18,477

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows:

Fund (Amounts in thousands)	Value, beginning of period	Purchases	Sales Proceeds *	Value, end of period	% ownership, end of period
Fidelity Mortgage Backed Securities Central Fund	$ 885,153	$ 12,151	$ 178,562	$ 708,660	7.1%
Fidelity Specialized High Income Central Fund	143,843	4,323	30,782	123,936	28.1%
Total	$ 1,028,996	$ 16,474	$ 209,344	$ 832,596

* Includes the value of shares redeemed through in-kind transactions. See Note 7 of the Notes to Financial Statements.

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 1,222,097	$ -	$ 1,222,097	$ -
U.S. Government and Government Agency Obligations	2,376,132	-	2,376,132	-
U.S. Government Agency - Mortgage Securities	1,437,874	-	1,437,874	-
Asset-Backed Securities	94,891	-	85,734	9,157
Collateralized Mortgage Obligations	85,150	-	80,723	4,427
Commercial Mortgage Securities	432,980	-	400,061	32,919
Municipal Securities	19,625	-	19,625	-
Supranational Obligations	438	-	438	-
Fixed-Income Funds	832,596	832,596	-	-
Preferred Securities	2,856	-	2,856	-
Cash Equivalents	179,341	-	179,341	-
Total Investments in Securities:	$ 6,683,980	$ 832,596	$ 5,804,881	$ 46,503
Derivative Instruments:
Assets
Swap Agreements	$ 1,021	$ -	$ 1,021	$ -
Liabilities
Swap Agreements	$ (57,361)	$ -	$ (56,699)	$ (662)
Total Derivative Instruments:	$ (56,340)	$ -	$ (55,678)	$ (662)
Other Financial Instruments:
Forward Committments	$ (1,724)	$ -	$ (1,724)	$ -

The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 68,258
Total Realized Gain (Loss)	429
Total Unrealized Gain (Loss)	9,310
Cost of Purchases	5,564
Proceeds of Sales	(11,331)
Amortization/Accretion	(38)
Transfers in to Level 3	6,477
Transfers out of Level 3	(32,166)
Ending Balance	$ 46,503
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 8,436
Derivative Instruments:
Swap Agreements
Beginning Balance	$ (1,687)
Total Unrealized Gain (Loss)	128
Transfers in to Level 3	-
Transfers out of Level 3	897
Ending Balance	$ (662)
Realized gain (loss) on Swap Agreements for the period	$ 37
The change in unrealized gain (loss) for the period attributable to Level 3 Swap Agreements held at February 28, 2011	$ 128

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and Derivative Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, and includes the value of securities received or delivered through affiliated in-kind transactions. See Note 7 of the Notes to Financial Statements. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by risk exposure as of February 28, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Risk Exposure / Derivative Type	Value (Amounts in thousands)
	Asset	Liability
Credit Risk
Swap Agreements (a)	$ 1,021	$ (55,085)
Interest Rate Risk
Swap Agreements (a)	-	(2,276)
Total Value of Derivatives	$ 1,021	$ (57,361)

(a) Value is disclosed on the Statement of Assets and Liabilities in the Unrealized Appreciation and Unrealized Depreciation on Swap Agreements line-items.

Income Tax Information

At August 31, 2010, the Fund had a capital loss carryforward of approximately $488,600,000 of which $1,000, $107,986,000, $17,287,000, $179,146,000 and $184,180,000 will expire in fiscal 2013, 2014, 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $179,341) - See accompanying schedule: Unaffiliated issuers (cost $5,667,117)	$ 5,851,384
Fidelity Central Funds (cost $799,069)	832,596
Total Investments (cost $6,466,186)		$ 6,683,980
Commitment to sell securities on a delayed delivery basis	(457,624)
Receivable for securities sold on a delayed delivery basis	455,900	(1,724)
Receivable for investments sold, regular delivery in Sub-Fund		44,252
Cash		375
Receivable for fund shares sold		6,447
Interest receivable		32,486
Unrealized appreciation on swap agreements		1,021
Other receivables		121
Total assets		6,766,958
Liabilities
Payable for investments purchased Regular delivery	$ 8,313
Delayed delivery	756,187
Payable for swap agreements	939
Payable for fund shares redeemed	11,447
Distributions payable	953
Unrealized depreciation on swap agreements	57,361
Accrued management fee	1,547
Distribution and service plan fees payable	75
Other affiliated payables	683
Other payables and accrued expenses	121
Total liabilities		837,626
Net Assets		$ 5,929,332
Net Assets consist of:
Paid in capital		$ 6,236,606
Undistributed net investment income		17,045
Accumulated undistributed net realized gain (loss) on investments		(489,856)
Net unrealized appreciation (depreciation) on investments		165,537
Net Assets		$ 5,929,332

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($161,536 ÷ 21,782.1 shares)		$ 7.42
Maximum offering price per share (100/96.00 of $7.42)		$ 7.73
Class T: Net Asset Value and redemption price per share ($46,994 ÷ 6,333.7 shares)		$ 7.42
Maximum offering price per share (100/96.00 of $7.42)		$ 7.73
Class B: Net Asset Value and offering price per share ($9,817 ÷ 1,322.2 shares)A		$ 7.42
Class C: Net Asset Value and offering price per share ($28,477 ÷ 3,835.0 shares)A		$ 7.43
Investment Grade Bond: Net Asset Value, offering price and redemption price per share ($5,657,440 ÷ 762,359.7 shares)		$ 7.42
Institutional Class: Net Asset Value, offering price and redemption price per share ($25,068 ÷ 3,374.7 shares)		$ 7.43

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 110
Interest		109,131
Income from Fidelity Central Funds		18,477
Total income		127,718
Expenses
Management fee	$ 11,582
Transfer agent fees	3,783
Distribution and service plan fees	483
Fund wide operations fee	1,244
Independent trustees' compensation	15
Miscellaneous	15
Total expenses before reductions	17,122
Expense reduction	-	17,122
Net investment income (loss)		110,596
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	55,032
Fidelity Central Funds	10,615
Redemption in-kind with affiliated entities	65,117
Swap agreements	18,598
Total net realized gain (loss)		149,362
Change in net unrealized appreciation (depreciation) on: Investment securities	(207,913)
Swap agreements	(120)
Delayed delivery commitments	(2,124)
Total change in net unrealized appreciation (depreciation)		(210,157)
Net gain (loss)		(60,795)
Net increase (decrease) in net assets resulting from operations		$ 49,801

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 110,596	$ 261,967
Net realized gain (loss)	149,362	175,333
Change in net unrealized appreciation (depreciation)	(210,157)	359,702
Net increase (decrease) in net assets resulting from operations	49,801	797,002
Distributions to shareholders from net investment income	(109,470)	(247,482)
Share transactions - net increase (decrease)	(1,659,246)	891,216
Total increase (decrease) in net assets	(1,718,915)	1,440,736
Net Assets
Beginning of period	7,648,247	6,207,511
End of period (including undistributed net investment income of $17,045 and undistributed net investment income of $15,919, respectively)	$ 5,929,332	$ 7,648,247

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.89	$ 6.89	$ 7.18	$ 7.35	$ 7.24	$ 7.50
Income from Investment Operations
Net investment income (loss)E	.100	.254	.303	.331	.353	.118	.298
Net realized and unrealized gain (loss)	(.051)	.566	.007H	(.303)	(.161)	.092	(.206)
Total from investment operations	.049	.820	.310	.028	.192	.210	.092
Distributions from net investment income	(.099)	(.240)	(.310)	(.311)	(.352)	(.100)	(.282)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.099)	(.240)	(.310)	(.318)	(.362)	(.100)	(.352)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.89	$ 6.89	$ 7.18	$ 7.35	$ 7.24
Total ReturnB,C,D	.66%	12.10%	4.89%	.36%	2.61%	2.92%	1.23%
Ratios to Average Net AssetsF,I
Expenses before reductions	.78%A	.77%	.79%	.80%	.75%	.71%A	.71%
Expenses net of fee waivers, if any	.78%A	.77%	.79%	.80%	.75%	.71%A	.71%
Expenses net of all reductions	.78%A	.77%	.79%	.80%	.74%	.71%A	.71%
Net investment income (loss)	2.72%A	3.55%	4.67%	4.67%	4.83%	4.86%A	4.04%
Supplemental Data
Net assets, end of period (in millions)	$ 162	$ 173	$ 145	$ 79	$ 79	$ 46	$ 37
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.90	$ 6.89	$ 7.18	$ 7.35	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.099	.252	.302	.332	.350	.116	.290
Net realized and unrealized gain (loss)	(.051)	.555	.016H	(.303)	(.163)	.091	(.216)
Total from investment operations	.048	.807	.318	.029	.187	.207	.074
Distributions from net investment income	(.098)	(.237)	(.308)	(.312)	(.347)	(.097)	(.274)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.098)	(.237)	(.308)	(.319)	(.357)	(.097)	(.344)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.90	$ 6.89	$ 7.18	$ 7.35	$ 7.24
Total ReturnB,C,D	.65%	11.90%	5.02%	.36%	2.54%	2.89%	.98%
Ratios to Average Net AssetsF,I
Expenses before reductions	.81%A	.80%	.82%	.80%	.80%	.82%A	.83%
Expenses net of fee waivers, if any	.81%A	.80%	.82%	.80%	.80%	.82%A	.83%
Expenses net of all reductions	.81%A	.80%	.82%	.79%	.79%	.81%A	.83%
Net investment income (loss)	2.69%A	3.51%	4.65%	4.67%	4.77%	4.76%A	3.92%
Supplemental Data
Net assets, end of period (in millions)	$ 47	$ 53	$ 46	$ 53	$ 68	$ 59	$ 57
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class B

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.89	$ 7.19	$ 7.36	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.073	.201	.257	.281	.299	.099	.239
Net realized and unrealized gain (loss)	(.061)	.566	.016H	(.313)	(.164)	.102	(.216)
Total from investment operations	.012	.767	.273	(.032)	.135	.201	.023
Distributions from net investment income	(.072)	(.187)	(.263)	(.261)	(.295)	(.081)	(.223)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.072)	(.187)	(.263)	(.268)	(.305)	(.081)	(.293)
Net asset value, end of period	$ 7.42	$ 7.48	$ 6.90	$ 6.89	$ 7.19	$ 7.36	$ 7.24
Total ReturnB,C,D	.16%	11.26%	4.29%	(.49)%	1.83%	2.79%	.28%
Ratios to Average Net AssetsF,I
Expenses before reductions	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Expenses net of fee waivers, if any	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Expenses net of all reductions	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Net investment income (loss)	1.98%A	2.81%	3.95%	3.96%	4.07%	4.07%A	3.24%
Supplemental Data
Net assets, end of period (in millions)	$ 10	$ 12	$ 11	$ 9	$ 10	$ 9	$ 9
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.072	.200	.255	.278	.294	.097	.233
Net realized and unrealized gain (loss)	(.051)	.566	.005H	(.304)	(.163)	.102	(.216)
Total from investment operations	.021	.766	.260	(.026)	.131	.199	.017
Distributions from net investment income	(.071)	(.186)	(.260)	(.257)	(.291)	(.079)	(.217)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.071)	(.186)	(.260)	(.264)	(.301)	(.079)	(.287)
Net asset value, end of period	$ 7.43	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.24
Total ReturnB,C,D	.28%	11.24%	4.09%	(.40)%	1.77%	2.76%	.20%
Ratios to Average Net AssetsF,I
Expenses before reductions	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Expenses net of fee waivers, if any	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Expenses net of all reductions	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Net investment income (loss)	1.96%A	2.79%	3.91%	3.91%	4.02%	3.99%A	3.15%
Supplemental Data
Net assets, end of period (in millions)	$ 28	$ 35	$ 27	$ 14	$ 17	$ 10	$ 9
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Investment Grade Bond

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006L	2006J
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.90	$ 6.89	$ 7.19	$ 7.35	$ 7.24	$ 7.50
Income from Investment Operations
Net investment income (loss)D	.113	.277	.326	.356	.376	.124	.317
Net realized and unrealized gain (loss)	(.052)	.556	.015G	(.313)	(.153)	.092	(.206)
Total from investment operations	.061	.833	.341	.043	.223	.216	.111
Distributions from net investment income	(.111)	(.263)	(.331)	(.336)	(.373)	(.106)	(.301)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.111)	(.263)	(.331)	(.343)	(.383)	(.106)	(.371)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.90	$ 6.89	$ 7.19	$ 7.35	$ 7.24
Total ReturnB,C	.82%	12.29%	5.39%	.57%	3.05%	3.01%	1.48%
Ratios to Average Net AssetsE,H
Expenses before reductions	.45%A	.45%	.46%	.45%	.45%	.45%A	.46%
Expenses net of fee waivers, if any	.45%A	.45%	.46%	.45%	.45%	.45%A	.46%
Expenses net of all reductions	.45%A	.45%	.46%	.44%	.44%	.45%A	.46%
Net investment income (loss)	3.04%A	3.86%	5.00%	5.02%	5.13%	5.12%A	4.29%
Supplemental Data
Net assets, end of period (in millions)	$ 5,657	$ 7,345	$ 5,951	$ 9,814	$ 11,739	$ 10,141	$ 8,018
Portfolio turnover rateF	263%A,M	174%K	119%I,K	231%	181%K	206%A,I	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J For the period ended April 30. K The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. L For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. M Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006L	2006J
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.25	$ 7.51
Income from Investment Operations
Net investment income (loss)D	.111	.274	.322	.353	.374	.124	.313
Net realized and unrealized gain (loss)	(.051)	.565	.005G	(.303)	(.163)	.091	(.205)
Total from investment operations	.060	.839	.327	.050	.211	.215	.108
Distributions from net investment income	(.110)	(.259)	(.327)	(.333)	(.371)	(.105)	(.298)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.110)	(.259)	(.327)	(.340)	(.381)	(.105)	(.368)
Net asset value, end of period	$ 7.43	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.25
Total ReturnB,C	.80%	12.38%	5.16%	.66%	2.88%	2.99%	1.44%
Ratios to Average Net AssetsE,H
Expenses before reductions	.49%A	.50%	.53%	.50%	.48%	.49% A	.50%
Expenses net of fee waivers, if any	.49%A	.50%	.53%	.50%	.48%	.49% A	.50%
Expenses net of all reductions	.49%A	.50%	.53%	.49%	.47%	.49% A	.50%
Net investment income (loss)	3.01%A	3.82%	4.94%	4.97%	5.10%	5.07% A	4.25%
Supplemental Data
Net assets, end of period (in millions)	$ 25	$ 30	$ 27	$ 34	$ 41	$ 29	$ 26
Portfolio turnover rateF	263%A,M	174%K	119%I,K	231%	181%K	206%A,I	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J For the period ended April 30. K The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. L For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. M Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Investment Grade Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Investment Grade Bond and Institutional Class shares, each of which, along with Class B, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The following summarizes the Fund's investment in each Fidelity Central Fund.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Investments in Fidelity Central Funds - continued

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity Mortgage Backed Securities Central Fund	Fidelity Investment Money Management, Inc. (FIMM)	Seeks a high level of income by normally investing in investment-grade mortgage-related securities and repurchase agreements for those securities.	Delayed Delivery & When Issued Securities Futures Repurchase Agreements Swap Agreements
Fidelity Specialized High Income Central Fund	FMR Co., Inc. (FMRC)	Seeks a high level of current income by normally investing in income-producing debt securities, with an emphasis on lower-quality debt securities.	Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities

An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including security valuation policies) of those funds, are available on the SEC web site or upon request.

3. 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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and

Semiannual Report

3. Significant Accounting Policies - continued

Security Valuation - continued

they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011 for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, municipal securities, preferred securities, supranational obligations and U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

Swaps are marked-to-market daily based on valuations from independent pricing services or dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Pricing services utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates and, as a result, swaps are generally categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The principal value on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal value. The adjustments to principal due to inflation are reflected as increases or decreases to interest income even though principal is not received until maturity. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

Semiannual Report

3. Significant Accounting Policies - continued

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, financing transactions, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 213,117
Gross unrealized depreciation	(76,670)
Net unrealized appreciation (depreciation) on securities and other investments	$ 136,447
Tax cost	$ 6,547,533

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Semiannual Report

5. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including swap agreements, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risks:

Credit Risk	Credit risk relates to the ability of the issuer to a financial instrument to make further principal or interest payments on an obligation or commitment that it has entered into with the Fund.
Interest Rate Risk	Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain over-the-counter derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the counterparty. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk, the Fund offsets certain payables and/or receivables with collateral. Collateral in the form of cash or securities, if required, is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the swap counterparty and the Fund's custodian bank, and is identified in the Schedule of Investments. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Derivative Instruments - continued

Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period.

Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Credit Risk
Swap Agreements	$ (5,302)	$ 6,319
Interest Rate Risk
Swap Agreements	23,900	(6,439)
Totals (a)	$ 18,598	$ (120)

(a) A summary of the value of derivatives by risk exposure as of period end is included at the end of the Schedule of Investments and is representative of activity for the period.

Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.

Details of swaps open at period end, are included in the Schedule of Investments under the caption "Swap Agreements." Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation or (depreciation) and reflected in the Statement of Assets and Liabilities. Any upfront payments made or received upon entering a swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded as realized gain or (loss) ratably over the term of the swap. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

Risks of loss include credit risk and interest rate risk. In addition, there is the risk of failure by the counterparty to perform under the terms of the agreement and lack of liquidity in the market.

Interest Rate Swaps. Interest rate swaps are agreements between counterparties to exchange cash flows, one based on a fixed rate, and the other on a floating rate. The Fund entered into interest rate swaps to manage its exposure to interest rate changes. Changes in interest rates can have an effect on both the value of bond holdings as well as the amount of interest income earned. In general, the value of bonds can fall when interest rates rise and can rise when interest rates fall.

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5. Derivative Instruments - continued

Credit Default Swaps. Credit default swaps enable the Fund to buy or sell protection on a debt security or a basket of securities against a defined credit event. Under the terms of a credit default swap the buyer of protection (buyer) receives credit protection in exchange for making periodic payments to the seller of protection (seller) based on a fixed percentage applied to a notional principal amount. In return for these payments, the seller acts as a guarantor of the creditworthiness of a reference obligation. The Fund entered into credit default swaps as a seller to gain credit exposure to an issuer and/or as a buyer to provide a measure of protection against defaults of an issuer. The issuer may be either a single issuer or a "basket" of issuers. Periodic payments are made over the life of the contract provided that no credit event occurs.

For credit default swaps on most corporate and sovereign issuers, credit events include bankruptcy, failure to pay, obligation acceleration or repudiation/moratorium. For credit default swaps on corporate or sovereign issuers, the obligation that may be put to the seller is not limited to the specific reference obligation described in the Schedule of Investments. For credit default swaps on asset-backed securities, a credit event may be triggered by events such as failure to pay principal, maturity extension, rating downgrade or write-down. For credit default swaps on asset-backed securities, the reference obligation described represents the security that may be put to the seller.

As a seller, if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the reference obligation or underlying securities comprising an index or pay a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

As a buyer, if an underlying credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the reference obligation or underlying securities comprising an index or receive a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

Typically, the value of each credit default swap and credit rating disclosed for each reference obligation in the Schedule of Investments, where the Fund is the seller, can be used as measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. Any current or future declines in the value of the swap may be partially offset by upfront payments received by the Fund as the seller, if applicable. In addition to these measures, FMR monitors a variety of factors including cash flow assumptions, market activity and market sentiment as part of its ongoing process of assessing payment/performance risk.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Derivative Instruments - continued

Credit Default Swaps - continued

The notional amount of credit default swaps is included in the Schedule of Investments and approximates the maximum potential amount of future payments that the Fund could be required to make if the Fund is the seller and a credit event were to occur. The total notional amount of all credit default swaps open at period end where the Fund is the seller amounted to $73,597 representing 1.2% of net assets.

6. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, U.S. government securities and in-kind transactions, aggregated $499,033 and $618,621, respectively.

7. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .32% of the Fund's average net assets.

In addition, under the expense contract, FMR pays all class-level expenses for Investment Grade Bond, so that the total expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense, including commitment fees do not exceed .45% of the Class' average net assets. This agreement does not apply to any of the other classes and any change or modification that would increase expenses can only be made with shareholder approval.

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,

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7. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan Fees - continued

the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$ 209	$ 6
Class T	-%	.25%	62	2
Class B	.65%	.25%	49	36
Class C	.75%	.25%	163	32
			$ 483	$ 76

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 10
Class T	3
Class B*	15
Class C*	2
	$ 30

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Investment Grade Bond. FIIOC receives an asset-based fee of .10% of Investment Grade Bond's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

7. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

	Amount	% of Average Net Assets*
Class A	$ 146	.18
Class T	49	.20
Class B	14	.26
Class C	29	.18
Investment Grade Bond	3,526	.10
Institutional Class	19	.14
	$ 3,783

* Annualized

Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, Rule 12b-1 fees, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.

Redemption In-Kind. During the period, 203,418 shares of the Fund held by an affiliated entity were redeemed in kind for cash and securities, including accrued interest, with a value of $1,507,329. The net realized gain (loss) of $65,117 on securities delivered through the in-kind redemption is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 12: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.

8. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

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9. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $24.

10. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by four hundred and six dollars.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010
From net investment income
Class A	$ 2,237	$ 5,063
Class T	653	1,546
Class B	106	292
Class C	314	783
Investment Grade Bond	105,747	238,838
Institutional Class	413	960
Total	$ 109,470	$ 247,482

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010	Six months ended February 28, 2011	Year ended August 31, 2010
Class A
Shares sold	4,060	9,628	$ 30,120	$ 69,206
Reinvestment of distributions	180	439	1,336	3,155
Shares redeemed	(5,605)	(7,903)	(41,552)	(56,412)
Net increase (decrease)	(1,365)	2,164	$ (10,096)	$ 15,949
Class T
Shares sold	1,143	2,791	$ 8,473	$ 20,026
Reinvestment of distributions	80	197	592	1,416
Shares redeemed	(1,962)	(2,638)	(14,577)	(18,750)
Net increase (decrease)	(739)	350	$ (5,512)	$ 2,692
Class B
Shares sold	117	693	$ 864	$ 4,986
Reinvestment of distributions	10	31	76	222
Shares redeemed	(396)	(735)	(2,934)	(5,261)
Net increase (decrease)	(269)	(11)	$ (1,994)	$ (53)
Class C
Shares sold	408	2,029	$ 3,035	$ 14,572
Reinvestment of distributions	34	82	251	591
Shares redeemed	(1,288)	(1,356)	(9,550)	(9,700)
Net increase (decrease)	(846)	755	$ (6,264)	$ 5,463
Investment Grade Bond
Shares sold	244,542	332,220	$ 1,821,352	$ 2,382,429
Reinvestment of distributions	13,019	31,428	96,972	225,823
Shares redeemed	(477,830) A	(243,762)	(3,548,482) A	(1,742,304)
Net increase (decrease)	(220,269)	119,886	$ (1,630,158)	$ 865,948
Institutional Class
Shares sold	761	2,015	$ 5,672	$ 14,647
Reinvestment of distributions	47	111	353	796
Shares redeemed	(1,505)	(1,978)	(11,247)	(14,226)
Net increase (decrease)	(697)	148	$ (5,222)	$ 1,217

^A Amount includes in-kind redemptions (See Note 7: Redemptions in-kind).

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13. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

14. Credit Risk.

The Fund invests a portion of its assets in structured securities of issuers backed by residential mortgage loans, credit card receivables and automotive loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults.

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Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Investment Grade Bond Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

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Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Investment Grade Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the first quartile for the one-year period, the fourth quartile for the three-year period, and the third quartile for the five-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the one-year cumulative total return of the retail class compared favorably to its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

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Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 9% means that 91% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Fidelity Investment Grade Bond Fund

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Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2005) to the fund's management contract that lowered the fund's individual fund fee rate from 30 basis points to 20 basis points. The Board considered that the chart reflects the fund's lower management fee for 2005, as if the lower rate were in effect for the entire year.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board also considered that the current contractual arrangements for the fund (i) have the effect of setting the total "fund-level" expenses (including, among certain other expenses, the management fee) for each class at 35 basis points, (ii) lower and limit the "class-level" transfer agent fee for the retail class to 10 basis points, and (iii) limit the total expenses for the retail class to 45 basis points. The fees and expenses payable under these contractual arrangements may not be increased without the approval of the Board and the shareholders of the applicable class. The fund's Advisor classes are subject to different "class-level" expenses (transfer agent fees and 12b-1 fees).

The Board noted that the total expenses of each class ranked below its competitive median for 2009.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses for each class at 35 basis points, increases or decreases in the management fee due to changes in the group fee rate will not impact total expenses.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Semiannual Report

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

AIGB-USAN-0411
1.784859.107

(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Investment Grade Bond
Fund - Institutional Class

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Institutional Class is a
class of Fidelity® Investment
Grade Bond Fund

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Class A	.78%
Actual		$ 1,000.00	$ 1,006.60	$ 3.88
HypotheticalA		$ 1,000.00	$ 1,020.93	$ 3.91
Class T	.81%
Actual		$ 1,000.00	$ 1,006.50	$ 4.03
HypotheticalA		$ 1,000.00	$ 1,020.78	$ 4.06
Class B	1.52%
Actual		$ 1,000.00	$ 1,001.60	$ 7.54
HypotheticalA		$ 1,000.00	$ 1,017.26	$ 7.60
Class C	1.54%
Actual		$ 1,000.00	$ 1,002.80	$ 7.65
HypotheticalA		$ 1,000.00	$ 1,017.16	$ 7.70
Investment Grade Bond	.45%
Actual		$ 1,000.00	$ 1,008.20	$ 2.24
HypotheticalA		$ 1,000.00	$ 1,022.56	$ 2.26
Institutional Class	.49%
Actual		$ 1,000.00	$ 1,008.00	$ 2.44
HypotheticalA		$ 1,000.00	$ 1,022.36	$ 2.46

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations 78.3%		U.S. Government and U.S. Government Agency Obligations 71.2%
	AAA 6.0%		AAA 6.8%
	AA 2.5%		AA 2.8%
	A 7.2%		A 7.8%
	BBB 12.5%		BBB 11.8%
	BB and Below 5.0%		BB and Below 4.0%
	Not Rated 0.1%		Not Rated 0.1%
	Equities 0.0%		Equities 0.1%
	Short-Term Investments and Net Other Assets† (11.6)%		Short-Term Investments and Net Other Assets† (4.6)%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. The information in the above table is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	6.8	6.3

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	5.0	4.7

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011*			As of August 31, 2010**
	Corporate Bonds 22.5%			Corporate Bonds 22.8%
	U.S. Government and U.S. Government Agency Obligations 78.3%			U.S. Government and U.S. Government Agency Obligations 71.2%
	Asset-Backed Securities 1.6%			Asset-Backed Securities 2.0%
	CMOs and Other Mortgage Related Securities 8.7%			CMOs and Other Mortgage Related Securities 8.1%
	Municipal Bonds 0.3%			Municipal Bonds 0.3%
	Other Investments 0.2%			Other Investments 0.2%
	Short-Term Investments and Net Other Assets† (11.6)%			Short-Term Investments and Net Other Assets† (4.6)%
* Foreign investments		3.7%	** Foreign investments		3.8%
* Futures and Swaps		(0.6)%	** Futures and Swaps		2.9%

^† Short-Term Investments and Net Other Assets are not included in the pie chart.

A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds is available at fidelity.com and/or advisor.fidelity.com, as applicable.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 20.6%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.8%
Household Durables - 0.2%
Fortune Brands, Inc.:
5.375% 1/15/16	$ 1,596		$ 1,679
5.875% 1/15/36	1,818		1,608
6.375% 6/15/14	7,614		8,358
			11,645
Media - 1.6%
Comcast Corp.:
4.95% 6/15/16	7,475		7,985
5.7% 5/15/18	6,385		6,979
6.55% 7/1/39	4,789		5,077
Discovery Communications LLC:
3.7% 6/1/15	3,783		3,921
6.35% 6/1/40	3,458		3,638
Liberty Media Corp. 8.25% 2/1/30	4,856		4,710
NBC Universal, Inc.:
3.65% 4/30/15 (d)	4,134		4,225
5.15% 4/30/20 (d)	5,465		5,630
6.4% 4/30/40 (d)	9,638		10,069
News America Holdings, Inc. 7.75% 12/1/45	2,832		3,412
News America, Inc. 6.15% 3/1/37	2,997		3,036
Time Warner Cable, Inc.:
5.85% 5/1/17	12,691		13,973
6.75% 7/1/18	5,587		6,413
Time Warner, Inc. 6.2% 3/15/40	9,617		9,798
Viacom, Inc.:
6.125% 10/5/17	2,096		2,371
6.75% 10/5/37	3,990		4,418
			95,655
TOTAL CONSUMER DISCRETIONARY			107,300
CONSUMER STAPLES - 1.0%
Beverages - 0.2%
Anheuser-Busch InBev Worldwide, Inc. 5.375% 11/15/14 (d)	4,529		5,004
FBG Finance Ltd. 5.125% 6/15/15 (d)	5,189		5,514
			10,518
Food & Staples Retailing - 0.0%
CVS Caremark Corp. 6.302% 6/1/37 (j)	1,442		1,420
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Food Products - 0.3%
Kraft Foods, Inc.:
5.375% 2/10/20	$ 5,087		$ 5,408
6.5% 8/11/17	4,718		5,420
6.875% 2/1/38	5,289		5,933
			16,761
Tobacco - 0.5%
Altria Group, Inc.:
9.25% 8/6/19	5,257		6,824
9.7% 11/10/18	5,570		7,333
Reynolds American, Inc.:
6.75% 6/15/17	7,156		8,056
7.25% 6/15/37	10,968		11,637
			33,850
TOTAL CONSUMER STAPLES			62,549
ENERGY - 2.0%
Energy Equipment & Services - 0.2%
DCP Midstream LLC 5.35% 3/15/20 (d)	4,973		5,154
El Paso Pipeline Partners Operating Co. LLC 4.1% 11/15/15	6,122		6,231
Weatherford International Ltd. 5.15% 3/15/13	976		1,031
			12,416
Oil, Gas & Consumable Fuels - 1.8%
Anadarko Petroleum Corp. 6.375% 9/15/17	5,436		6,059
Apache Corp. 5.1% 9/1/40	4,838		4,491
Canadian Natural Resources Ltd. 5.9% 2/1/18	1,333		1,509
Delek & Avner-Yam Tethys Ltd. 5.326% 8/1/13 (d)	140		140
Kaneb Pipe Line Operations Participation LP 7.75% 2/15/12	6,497		6,831
Marathon Petroleum Corp. 5.125% 3/1/21 (d)	3,437		3,484
Motiva Enterprises LLC:
5.75% 1/15/20 (d)	1,965		2,161
6.85% 1/15/40 (d)	7,374		8,544
Nakilat, Inc. 6.067% 12/31/33 (d)	2,634		2,647
Nexen, Inc.:
5.05% 11/20/13	4,658		4,968
6.4% 5/15/37	8,585		8,216
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Pemex Project Funding Master Trust 0.9034% 12/3/12 (d)(j)	$ 5,589		$ 5,561
Petro-Canada 6.05% 5/15/18	1,963		2,227
Petrobras International Finance Co. Ltd.:
3.875% 1/27/16	5,695		5,751
5.75% 1/20/20	16,071		16,676
6.875% 1/20/40	3,862		3,939
Plains All American Pipeline LP/PAA Finance Corp. 5% 2/1/21	1,885		1,889
Ras Laffan Liquefied Natural Gas Co. Ltd. III:
4.5% 9/30/12 (d)	2,794		2,888
5.5% 9/30/14 (d)	3,906		4,154
6.75% 9/30/19 (d)	2,556		2,863
Suncor Energy, Inc. 6.1% 6/1/18	6,037		6,869
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	1,907		2,190
			104,057
TOTAL ENERGY			116,473
FINANCIALS - 11.2%
Capital Markets - 2.1%
Goldman Sachs Group, Inc.:
3.7% 8/1/15	3,483		3,533
5.95% 1/18/18	4,817		5,229
6% 6/15/20	2,500		2,679
6.15% 4/1/18	4,469		4,896
6.25% 2/1/41	4,212		4,286
6.75% 10/1/37	4,560		4,674
Janus Capital Group, Inc. 6.125% 9/15/11 (c)	2,730		2,776
JPMorgan Chase Capital XVII 5.85% 8/1/35	1,820		1,785
JPMorgan Chase Capital XX 6.55% 9/29/36	17,448		17,929
Lazard Group LLC:
6.85% 6/15/17	2,464		2,625
7.125% 5/15/15	7,737		8,514
Merrill Lynch & Co., Inc. 6.875% 4/25/18	6,385		7,183
Morgan Stanley:
0.6031% 1/9/14 (j)	8,284		8,101
4.1% 1/26/15	5,004		5,153
5.45% 1/9/17	5,100		5,378
5.75% 1/25/21	6,385		6,558
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Capital Markets - continued
Morgan Stanley: - continued
6% 5/13/14	$ 6,764		$ 7,401
6.625% 4/1/18	7,981		8,822
7.3% 5/13/19	4,777		5,440
UBS AG Stamford Branch 3.875% 1/15/15	8,300		8,524
			121,486
Commercial Banks - 2.0%
Bank of America NA 5.3% 3/15/17	6,133		6,391
BB&T Capital Trust IV 6.82% 6/12/77 (j)	583		593
Credit Suisse (Guernsey) Ltd. 5.86% (j)	6,365		6,150
Credit Suisse New York Branch 6% 2/15/18	8,405		8,975
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (d)(j)	1,517		1,489
Discover Bank:
7% 4/15/20	2,536		2,797
8.7% 11/18/19	5,944		7,147
Export-Import Bank of Korea 5.25% 2/10/14 (d)	3,402		3,623
Fifth Third Bancorp:
3.625% 1/25/16	3,326		3,340
4.5% 6/1/18	2,054		2,003
8.25% 3/1/38	2,385		2,874
Fifth Third Bank 4.75% 2/1/15	949		994
Fifth Third Capital Trust IV 6.5% 4/15/67 (j)	2,462		2,400
HBOS PLC 6.75% 5/21/18 (d)	3,056		2,904
Huntington Bancshares, Inc. 7% 12/15/20	1,597		1,748
JPMorgan Chase Bank 6% 10/1/17	5,986		6,597
KeyBank NA:
5.8% 7/1/14	4,173		4,564
6.95% 2/1/28	1,344		1,437
KeyBank NA, Cleveland 5.45% 3/3/16	2,190		2,355
Korea Development Bank 5.75% 9/10/13	3,220		3,477
Manufacturers & Traders Trust Co. 1.8028% 4/1/13 (j)	572		571
Marshall & Ilsley Bank:
4.85% 6/16/15	2,284		2,397
5% 1/17/17	3,713		3,870
5.25% 9/4/12	1,692		1,773
6.375% 9/1/11	6,820		6,959
Regions Bank:
6.45% 6/26/37	8,147		7,465
7.5% 5/15/18	3,713		3,936
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Regions Financial Corp.:
5.75% 6/15/15	$ 1,094		$ 1,094
7.75% 11/10/14	4,705		5,023
Wachovia Corp. 4.875% 2/15/14	4,283		4,541
Wells Fargo & Co. 3.75% 10/1/14	6,217		6,547
			116,034
Consumer Finance - 0.1%
Discover Financial Services 10.25% 7/15/19	3,781		4,895
SLM Corp.:
0.5016% 3/15/11 (j)	532		531
0.5331% 10/25/11 (j)	1,848		1,833
0.6031% 1/27/14 (j)	1,055		996
5% 10/1/13	391		404
			8,659
Diversified Financial Services - 1.7%
Bank of America Corp. 5.75% 12/1/17	12,613		13,485
BP Capital Markets PLC:
3.125% 10/1/15	5,742		5,826
3.625% 5/8/14	5,058		5,285
Capital One Capital V 10.25% 8/15/39	2,114		2,296
Citigroup, Inc.:
5.5% 4/11/13	20,020		21,461
6.125% 5/15/18	17,793		19,509
6.5% 8/19/13	1,317		1,452
JPMorgan Chase & Co. 4.95% 3/25/20	8,888		9,142
Prime Property Funding, Inc.:
5.125% 6/1/15 (d)	6,138		6,026
5.35% 4/15/12 (d)	1,530		1,554
5.5% 1/15/14 (d)	4,505		4,725
TECO Finance, Inc.:
4% 3/15/16	1,439		1,463
5.15% 3/15/20	2,067		2,140
ZFS Finance USA Trust II 6.45% 12/15/65 (d)(j)	3,532		3,603
ZFS Finance USA Trust IV 5.875% 5/9/62 (d)(j)	1,161		1,156
ZFS Finance USA Trust V 6.5% 5/9/67 (d)(j)	2,033		2,028
			101,151
Insurance - 1.8%
Allstate Corp. 6.2% 5/16/14	6,014		6,774
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Insurance - continued
Aon Corp.:
3.5% 9/30/15	$ 2,336		$ 2,345
5% 9/30/20	2,730		2,785
6.25% 9/30/40	1,748		1,810
Assurant, Inc. 5.625% 2/15/14	4,022		4,264
Axis Capital Holdings Ltd. 5.75% 12/1/14	6,279		6,774
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (d)(j)	10,398		10,658
Liberty Mutual Group, Inc.:
6.7% 8/15/16 (d)	7,459		8,063
10.75% 6/15/88 (d)(j)	4,022		5,239
Lincoln National Corp. 7% 5/17/66 (j)	1,136		1,130
Massachusetts Mutual Life Insurance Co. 8.875% 6/1/39 (d)	2,269		3,054
MetLife, Inc.:
5.875% 2/6/41	1,692		1,745
6.75% 6/1/16	4,485		5,176
Metropolitan Life Global Funding I:
5.125% 4/10/13 (d)	5,619		6,017
5.125% 6/10/14 (d)	3,959		4,299
Monumental Global Funding II 5.65% 7/14/11 (d)	3,801		3,850
New York Life Insurance Co. 6.75% 11/15/39 (d)	2,108		2,453
Northwestern Mutual Life Insurance Co. 6.063% 3/30/40 (d)	2,777		3,002
Pacific Life Global Funding 5.15% 4/15/13 (d)	4,733		5,035
Pacific Life Insurance Co. 9.25% 6/15/39 (d)	4,357		5,742
Prudential Financial, Inc.:
4.75% 9/17/15	7,348		7,869
7.375% 6/15/19	1,732		2,058
Symetra Financial Corp. 6.125% 4/1/16 (d)	4,900		5,122
Unum Group 5.625% 9/15/20	3,183		3,234
			108,498
Real Estate Investment Trusts - 1.0%
AvalonBay Communities, Inc.:
5.5% 1/15/12	770		799
6.125% 11/1/12	1,160		1,245
Camden Property Trust:
5.375% 12/15/13	1,818		1,948
5.875% 11/30/12	687		731
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Investment Trusts - continued
Developers Diversified Realty Corp.:
5.25% 4/15/11	$ 4,366		$ 4,383
5.375% 10/15/12	3,614		3,743
7.5% 4/1/17	2,623		3,000
9.625% 3/15/16	3,987		4,846
Duke Realty LP:
4.625% 5/15/13	317		329
5.875% 8/15/12	571		600
Equity One, Inc.:
6% 9/15/17	3,250		3,338
6.25% 12/15/14	2,985		3,202
6.25% 1/15/17	2,136		2,233
Federal Realty Investment Trust:
5.4% 12/1/13	2,627		2,833
5.9% 4/1/20	1,389		1,526
6% 7/15/12	1,579		1,672
6.2% 1/15/17	1,215		1,354
HRPT Properties Trust:
5.75% 11/1/15	1,378		1,463
6.65% 1/15/18	3,200		3,412
UDR, Inc. 5.5% 4/1/14	6,383		6,759
United Dominion Realty Trust, Inc. 5.25% 1/15/15	1,736		1,820
Washington (REIT) 5.95% 6/15/11	5,055		5,114
			56,350
Real Estate Management & Development - 2.1%
AMB Property LP:
5.9% 8/15/13	4,537		4,818
6.3% 6/1/13	4,607		4,953
BioMed Realty LP 6.125% 4/15/20	1,872		1,957
Brandywine Operating Partnership LP:
5.7% 5/1/17	2,243		2,338
5.75% 4/1/12	3,189		3,285
Colonial Properties Trust:
4.8% 4/1/11	384		385
5.5% 10/1/15	5,995		6,072
6.875% 8/15/12	3,309		3,466
Colonial Realty LP 6.05% 9/1/16	4,436		4,501
Digital Realty Trust LP 4.5% 7/15/15	2,667		2,749
Duke Realty LP:
5.4% 8/15/14	5,135		5,481
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Duke Realty LP: - continued
5.5% 3/1/16	$ 5,038		$ 5,254
5.625% 8/15/11	3,493		3,549
5.95% 2/15/17	1,536		1,646
6.25% 5/15/13	3,807		4,124
6.5% 1/15/18	5,065		5,588
ERP Operating LP:
4.75% 7/15/20	4,173		4,243
5.2% 4/1/13	6,349		6,802
5.5% 10/1/12	6,078		6,476
6.625% 3/15/12	1,111		1,173
Liberty Property LP:
4.75% 10/1/20	6,505		6,433
5.5% 12/15/16	3,158		3,421
6.375% 8/15/12	2,174		2,315
6.625% 10/1/17	3,709		4,257
Post Apartment Homes LP 6.3% 6/1/13	5,470		5,857
Reckson Operating Partnership LP 6% 3/31/16	1,224		1,287
Regency Centers LP 6.75% 1/15/12	5,856		6,047
Simon Property Group LP:
4.2% 2/1/15	2,019		2,127
5.1% 6/15/15	3,142		3,408
Tanger Properties LP:
6.125% 6/1/20	3,058		3,308
6.15% 11/15/15	9,117		9,836
			127,156
Thrifts & Mortgage Finance - 0.4%
Bank of America Corp.:
5.65% 5/1/18	14,862		15,705
6.5% 8/1/16	5,430		6,094
First Niagara Financial Group, Inc. 6.75% 3/19/20	4,247		4,615
			26,414
TOTAL FINANCIALS			665,748
HEALTH CARE - 0.2%
Health Care Providers & Services - 0.2%
Express Scripts, Inc.:
5.25% 6/15/12	4,236		4,442
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
HEALTH CARE - continued
Health Care Providers & Services - continued
Express Scripts, Inc.: - continued
6.25% 6/15/14	$ 1,557		$ 1,738
Medco Health Solutions, Inc. 4.125% 9/15/20	4,148		4,035
			10,215
INDUSTRIALS - 0.4%
Airlines - 0.3%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	72		72
Continental Airlines, Inc.:
6.545% 8/2/20	1,177		1,242
6.795% 2/2/20	408		411
Delta Air Lines, Inc. pass-thru trust certificates 6.821% 8/10/22	5,546		5,865
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	2,365		2,316
8.36% 7/20/20	8,048		8,181
			18,087
Transportation Infrastructure - 0.1%
BNSF Funding Trust I 6.613% 12/15/55 (j)	2,984		3,103
TOTAL INDUSTRIALS			21,190
INFORMATION TECHNOLOGY - 0.1%
Electronic Equipment & Components - 0.1%
Tyco Electronics Group SA:
5.95% 1/15/14	4,695		5,159
6.55% 10/1/17	2,421		2,790
			7,949
MATERIALS - 0.4%
Chemicals - 0.3%
Dow Chemical Co. 7.6% 5/15/14	13,026		15,127
Metals & Mining - 0.1%
ArcelorMittal SA 3.75% 3/1/16	1,580		1,573
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (d)	4,183		4,501
			6,074
TOTAL MATERIALS			21,201
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - 1.4%
Diversified Telecommunication Services - 0.9%
AT&T, Inc.:
6.3% 1/15/38	$ 9,973		$ 10,354
6.8% 5/15/36	8,295		9,115
BellSouth Capital Funding Corp. 7.875% 2/15/30	4,203		5,114
CenturyLink, Inc. 7.6% 9/15/39	3,890		4,106
Deutsche Telekom International Financial BV 5.875% 8/20/13	4,937		5,434
Telecom Italia Capital SA:
4.95% 9/30/14	5,297		5,443
5.25% 10/1/15	2,409		2,450
Telefonica Emisiones SAU:
5.462% 2/16/21	3,870		3,927
5.855% 2/4/13	1,287		1,374
Verizon Communications, Inc. 6.1% 4/15/18	6,019		6,776
			54,093
Wireless Telecommunication Services - 0.5%
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	8,998		9,679
5.875% 10/1/19	6,291		6,818
6.35% 3/15/40	1,971		2,010
Sprint Nextel Corp. 6% 12/1/16	10,058		10,033
			28,540
TOTAL TELECOMMUNICATION SERVICES			82,633
UTILITIES - 2.1%
Electric Utilities - 1.2%
Alabama Power Co. 3.375% 10/1/20	3,371		3,179
Cleveland Electric Illuminating Co. 5.65% 12/15/13	5,410		5,936
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (d)	8,975		9,287
Edison International 3.75% 9/15/17	3,716		3,688
EDP Finance BV 6% 2/2/18 (d)	7,773		7,636
FirstEnergy Corp. 7.375% 11/15/31	5,741		6,258
FirstEnergy Solutions Corp. 6.05% 8/15/21	2,439		2,551
Kentucky Utilities Co.:
3.25% 11/1/20 (d)	451		422
5.125% 11/1/40 (d)	3,219		3,120
LG&E and KU Energy LLC:
2.125% 11/15/15 (d)	4,231		4,055
3.75% 11/15/20 (d)	832		786
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
Louisville Gas & Electric Co. 5.125% 11/15/40 (d)	$ 966		$ 941
Pennsylvania Electric Co. 6.05% 9/1/17	4,923		5,368
Pepco Holdings, Inc. 2.7% 10/1/15	3,942		3,878
Progress Energy, Inc.:
4.4% 1/15/21	6,760		6,723
6% 12/1/39	3,028		3,177
Tampa Electric Co. 5.4% 5/15/21 (d)	2,109		2,274
			69,279
Gas Utilities - 0.0%
Southern Natural Gas Co. 5.9% 4/1/17 (d)	2,894		3,128
Independent Power Producers & Energy Traders - 0.4%
Duke Capital LLC 5.668% 8/15/14	6,310		6,934
Exelon Generation Co. LLC:
4% 10/1/20	4,789		4,456
5.35% 1/15/14	5,292		5,720
PPL Energy Supply LLC:
6.2% 5/15/16	2,534		2,795
6.5% 5/1/18	5,351		5,924
			25,829
Multi-Utilities - 0.5%
Consolidated Edison Co. of New York, Inc. 5.7% 6/15/40	2,011		2,114
Dominion Resources, Inc.:
6.3% 9/30/66 (j)	1,637		1,600
7.5% 6/30/66 (j)	3,654		3,800
National Grid PLC 6.3% 8/1/16	6,667		7,603
NiSource Finance Corp.:
5.4% 7/15/14	1,393		1,514
5.45% 9/15/20	1,461		1,522
6.25% 12/15/40	1,327		1,369
6.4% 3/15/18	4,529		5,085
Wisconsin Energy Corp. 6.25% 5/15/67 (j)	4,001		3,996
			28,603
TOTAL UTILITIES			126,839
TOTAL NONCONVERTIBLE BONDS (Cost $1,154,068)		1,222,097
U.S. Government and Government Agency Obligations - 40.1%
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - 0.3%
Tennessee Valley Authority 5.25% 9/15/39	$ 15,563		$ 16,297
U.S. Treasury Inflation Protected Obligations - 6.1%
U.S. Treasury Inflation-Indexed Bonds:
2.125% 2/15/40	36,279		37,863
2.125% 2/15/41	3,573		3,718
U.S. Treasury Inflation-Indexed Notes:
1.125% 1/15/21	129,274		130,656
1.375% 1/15/20	179,643		188,412
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			360,649
U.S. Treasury Obligations - 33.7%
U.S. Treasury Bonds:
3.875% 8/15/40	124,440		111,724
4.25% 11/15/40	118,939		114,070
4.375% 11/15/39	80,536		79,026
4.75% 2/15/41	8,950		9,332
U.S. Treasury Notes:
0.625% 1/31/13	270,324		270,187
1% 3/31/12	366,273		368,947
1.375% 11/30/15	238,143		231,092
2.125% 2/29/16	66,155		66,124
2.375% 9/30/14 (g)	83,800		86,471
2.625% 7/31/14	428,847		446,835
2.625% 11/15/20 (g)	45,720		42,766
3.625% 2/15/20	122,561		126,180
3.625% 2/15/21	45,640		46,432
TOTAL U.S. TREASURY OBLIGATIONS			1,999,186
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,367,811)		2,376,132
U.S. Government Agency - Mortgage Securities - 24.3%
Fannie Mae - 18.9%
2.59% 6/1/36 (j)	161		168
2.814% 2/1/35 (j)	3,004		3,157
2.999% 10/1/34 (j)	5,160		5,435
3% 1/1/26	30,997		30,214
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
3.5% 12/1/25 to 10/1/40	$ 22,171		$ 21,845
3.5% 3/1/26 (e)(f)	18,000		18,038
3.536% 7/1/37 (j)	445		467
4% 5/1/24 to 2/1/41	36,124		35,724
4% 3/1/26 (e)(f)	6,000		6,166
4% 3/1/41 (e)(f)	7,500		7,396
4% 3/1/41 (e)(f)	31,500		31,061
4.5% 6/1/24 to 11/1/40 (e)	53,406		54,594
4.5% 3/1/26 (e)	5,000		5,239
4.5% 3/1/41 (e)(f)	80,500		82,041
4.5% 3/1/41 (e)	17,000		17,325
4.5% 3/1/41 (e)	23,500		23,950
4.5% 3/1/41 (e)	3,500		3,567
4.5% 3/1/41 (e)	23,500		23,950
4.5% 3/1/41 (e)	24,000		24,459
4.5% 3/1/41 (e)	13,300		13,555
5% 4/1/18 to 9/1/40	117,063		123,496
5% 3/1/41 (e)(f)	70,000		73,314
5% 3/1/41 (e)(f)	52,000		54,462
5% 3/1/41 (e)(f)	29,000		30,373
5% 3/1/41 (e)(f)	29,000		30,373
5.5% 12/1/30 to 12/1/39	87,608		93,777
5.5% 3/1/41 (e)(f)	70,600		75,465
6% 7/1/21 to 9/1/39	93,515		101,926
6% 3/1/41 (e)(f)	88,500		96,191
6% 3/1/41 (e)	16,000		17,390
6.5% 5/1/31 to 9/1/38	11,527		12,954
TOTAL FANNIE MAE			1,118,072
Freddie Mac - 2.1%
2.546% 7/1/35 (j)	1,914		2,002
2.665% 8/1/35 (j)	5,708		5,989
3.352% 10/1/35 (j)	223		236
4.5% 7/1/25 to 10/1/40	4,006		4,122
4.5% 3/1/41 (e)	24,000		24,435
4.5% 3/1/41 (e)	18,000		18,326
5% 9/1/39 to 9/1/40	24,482		25,683
5.5% 10/1/38	22,260		23,760
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
6% 7/1/37 to 8/1/37	$ 4,840		$ 5,269
6% 3/1/41 (e)	14,000		15,209
TOTAL FREDDIE MAC			125,031
Ginnie Mae - 3.3%
4% 1/15/25 to 10/20/25	30,661		32,046
4.5% 12/15/33 to 2/15/41 (f)	86,063		89,065
5% 3/1/41 (e)(f)	26,000		27,605
5% 3/1/41 (e)	17,000		18,049
5% 3/1/41 (e)	15,000		15,926
5.5% 12/20/28 to 12/15/38	11,099		12,080
TOTAL GINNIE MAE			194,771
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $1,430,783)		1,437,874
Asset-Backed Securities - 1.6%
Accredited Mortgage Loan Trust Series 2005-1 Class M1, 0.7315% 4/25/35 (j)	1,084		811
ACE Securities Corp. Home Equity Loan Trust:
Series 2004-HE1:
Class M1, 1.0115% 3/25/34 (j)	35		34
Class M2, 1.9115% 3/25/34 (j)	219		178
Series 2005-HE2 Class M2, 0.7115% 4/25/35 (j)	108		101
Series 2006-OP1:
Class M4, 0.6315% 4/25/36 (j)	108		1
Class M5, 0.6515% 4/25/36 (j)	6		0*
Advanta Business Card Master Trust:
Series 2006-C1 Class C1, 0.742% 10/20/14 (j)	32		6
Series 2007-D1 Class D, 1.662% 1/22/13 (d)(j)	6,136		61
Airspeed Ltd. Series 2007-1A Class C1, 2.7658% 6/15/32 (d)(j)	6,122		2,816
Ally Master Owner Trust:
Series 2010-3 Class A, 2.88% 4/15/15 (d)	4,884		5,008
Series 2011-1 Class A2, 2.15% 1/15/16	16,042		16,018
AmeriCredit Prime Automobile Receivables Trust Series 2007-1:
Class D, 5.62% 9/8/14	648		665
Class E, 6.96% 3/8/16 (d)	2,566		2,626
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Ameriquest Mortgage Securities, Inc. pass-thru certificates:
Series 2003-10 Class M1, 0.9615% 12/25/33 (j)	$ 61		$ 52
Series 2004-R2 Class M3, 0.8115% 4/25/34 (j)	85		22
Series 2005-R2 Class M1, 0.7115% 4/25/35 (j)	1,307		1,122
Argent Securities, Inc. pass-thru certificates:
Series 2003-W7 Class A2, 1.04% 3/25/34 (j)	30		24
Series 2004-W7 Class M1, 0.8115% 5/25/34 (j)	808		559
Series 2006-W4 Class A2C, 0.4215% 5/25/36 (j)	883		316
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2004-HE2 Class M1, 1.0865% 4/25/34 (j)	1,690		1,373
Series 2006-HE2 Class M1, 0.6315% 3/25/36 (j)	149		4
Axon Financial Funding Ltd. 2.025% 4/4/17 (b)(d)(j)	5,160		0*
Bank of America Auto Trust Series 2009-1A Class A4, 3.52% 6/15/16 (d)	4,230		4,381
Brazos Higher Education Authority, Inc. Student Loan Rev. Series 2006 A2R, 1.0528% 12/1/41 (j)	385		385
Brazos Higher Education Authority, Inc. Series 2006-2 Class A9, 0.3128% 12/26/24 (j)	1,028		931
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (j)	75		75
Capital Auto Receivables Asset Trust:
Series 2006-2:
Class B, 5.07% 12/15/11	62		62
Class C, 5.31% 6/15/12	742		752
Series 2007-1 Class C, 5.38% 11/15/12	264		274
Capital Trust Ltd. Series 2004-1:
Class A2, 0.712% 7/20/39 (d)(j)	363		272
Class B, 1.012% 7/20/39 (d)(j)	355		163
Class C, 1.362% 7/20/39 (d)(j)	456		68
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	535		544
Carrington Mortgage Loan Trust:
Series 2006-FRE1 Class M1, 0.5615% 7/25/36 (j)	722		46
Series 2006-NC2 Class M7, 1.1115% 6/25/36 (j)	572		2
Series 2006-NC4 Class M1, 0.5615% 10/25/36 (j)	127		10
Series 2006-RFC1 Class M9, 2.1315% 5/25/36 (j)	251		15
Series 2007-RFC1 Class A3, 0.4015% 12/25/36 (j)	1,140		429
Citigroup Mortgage Loan Trust Series 2007-AMC4 Class M1, 0.5315% 5/25/37 (j)	484		75
Countrywide Asset-Backed Certificates Trust:
Series 2007-11 Class 2A1, 0.3215% 6/25/47 (j)	31		31
Series 2007-4 Class A1A, 0.36% 9/25/37 (j)	226		216
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Countrywide Home Loan Trust Series 2006-13 Class N, 7% 8/25/37 (d)	$ 1,666		$ 0
Countrywide Home Loans, Inc.:
Series 2003-BC1 Class B1, 5.5106% 3/25/32 (MGIC Investment Corp. Insured) (j)	61		23
Series 2004-3 Class M4, 1.2315% 4/25/34 (j)	101		42
Series 2004-4 Class M2, 1.0565% 6/25/34 (j)	372		213
Series 2005-3 Class MV1, 0.6815% 8/25/35 (j)	538		515
Series 2005-AB1 Class A2, 0.4715% 8/25/35 (j)	63		62
CPS Auto Receivables Trust Series 2006-D Class A4, 5.115% 8/15/13 (FSA Insured) (d)	241		245
Fannie Mae subordinate REMIC pass-thru certificates Series 2004-T5 Class AB3, 0.6842% 5/28/35 (j)	25		18
Fieldstone Mortgage Investment Corp.:
Series 2004-3 Class M5, 2.4365% 8/25/34 (j)	231		133
Series 2006-3 Class 2A3, 0.4215% 11/25/36 (j)	3,565		1,319
First Franklin Mortgage Loan Trust Series 2004-FF2 Class M3, 1.0865% 3/25/34 (j)	14		4
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (d)	2,736		2,745
Series 2006-C:
Class B, 5.3% 6/15/12	409		415
Class D, 6.89% 5/15/13 (d)	1,938		1,976
Series 2007-A Class D, 7.05% 12/15/13 (d)	1,100		1,154
Ford Credit Floorplan Master Owner Trust:
Series 2006-4 Class B, 0.8158% 6/15/13 (j)	488		487
Series 2010-1 Class A, 1.9158% 12/15/14 (d)(j)	4,254		4,338
Series 2010-5 Class A1, 1.5% 9/15/15	5,563		5,516
Franklin Auto Trust:
Series 2006-1 Class B, 5.14% 7/21/14	28		28
Series 2007-1:
Class A4, 5.03% 2/16/15	116		116
Class C, 5.43% 2/16/15	279		278
Fremont Home Loan Trust:
Series 2005-A:
Class M3, 0.7515% 1/25/35 (j)	600		297
Class M4, 0.9415% 1/25/35 (j)	231		73
Series 2006-D Class M1, 0.4915% 11/25/36 (j)	169		5
GCO Education Loan Funding Master Trust II Series 2007-1A Class C1L, 0.6915% 2/25/47 (d)(j)	2,174		1,283
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (d)	1,344		1,070
GE Business Loan Trust:
Series 2003-1 Class A, 0.6958% 4/15/31 (d)(j)	156		146
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
GE Business Loan Trust: - continued
Series 2006-2A:
Class A, 0.4458% 11/15/34 (d)(j)	$ 1,183		$ 982
Class B, 0.5458% 11/15/34 (d)(j)	429		279
Class C, 0.6458% 11/15/34 (d)(j)	709		355
Class D, 1.0158% 11/15/34 (d)(j)	339		81
Goal Capital Funding Trust Series 2007-1 Class C1, 0.7028% 6/25/42 (j)	421		351
GS Auto Loan Trust Series 2007-1:
Class B, 5.53% 12/15/14	22		23
Class C, 5.74% 12/15/14	20		20
GSAMP Trust:
Series 2004-AR1:
Class B4, 5% 6/25/34 (d)(j)	279		56
Class M1, 0.9115% 6/25/34 (j)	1,630		1,140
Series 2007-HE1 Class M1, 0.5115% 3/25/47 (j)	660		38
Guggenheim Structured Real Estate Funding Ltd.:
Series 2005-1 Class C, 1.3415% 5/25/30 (d)(j)	63		32
Series 2006-3:
Class B, 0.6615% 9/25/46 (d)(j)	519		260
Class C, 0.8115% 9/25/46 (d)(j)	1,211		291
Home Equity Asset Trust:
Series 2003-2 Class M1, 1.5815% 8/25/33 (j)	198		144
Series 2003-3 Class M1, 1.5515% 8/25/33 (j)	495		411
Series 2003-5 Class A2, 0.9615% 12/25/33 (j)	21		15
Series 2005-5 Class 2A2, 0.5115% 11/25/35 (j)	58		57
Series 2006-1 Class 2A3, 0.4865% 4/25/36 (j)	791		771
Series 2006-8 Class 2A1, 0.3115% 3/25/37 (j)	3		3
HSBC Home Equity Loan Trust Series 2006-2 Class M2, 0.552% 3/20/36 (j)	464		387
HSI Asset Securitization Corp. Trust Series 2007-HE1 Class 2A3, 0.4515% 1/25/37 (j)	913		384
JPMorgan Mortgage Acquisition Trust:
Series 2006-NC2 Class M2, 0.5615% 7/25/36 (j)	116		5
Series 2007-CH1:
Class AV4, 0.3915% 11/25/36 (j)	913		785
Class MV1, 0.4915% 11/25/36 (j)	741		491
Series 2007-CH3 Class M1, 0.5615% 3/25/37 (j)	326		17
Keycorp Student Loan Trust:
Series 1999-A Class A2, 0.6328% 12/27/29 (j)	474		407
Series 2006-A Class 2C, 1.4528% 3/27/42 (j)	1,605		296
Long Beach Auto Receivables Trust Series 2007-A Class A4, 5.025% 1/15/14 (FSA Insured)	901		911
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Long Beach Mortgage Loan Trust Series 2004-2 Class M2, 1.3415% 6/25/34 (j)	$ 60		$ 38
Marriott Vacation Club Owner Trust Series 2006-2A:
Class B, 5.442% 10/20/28 (d)	16		15
Class C, 5.691% 10/20/28 (d)	7		7
Class D, 6.01% 10/20/28 (d)	69		57
MASTR Asset Backed Securities Trust:
Series 2006-AM3 Class M1, 0.5215% 10/25/36 (j)	327		18
Series 2007-HE1 Class M1, 0.5615% 5/25/37 (j)	496		26
Meritage Mortgage Loan Trust Series 2004-1 Class M1, 1.0115% 7/25/34 (j)	83		55
Merrill Auto Trust Securitization Series 2007-1 Class B, 5.79% 12/15/13	49		50
Merrill Lynch Mortgage Investors Trust:
Series 2003-OPT1 Class M1, 0.9115% 7/25/34 (j)	299		234
Series 2006-FM1 Class A2B, 0.3715% 4/25/37 (j)	1,225		1,120
Series 2006-MLN1 Class A2A, 0.3315% 7/25/37 (j)	6		6
Series 2006-OPT1 Class A1A, 0.5215% 6/25/35 (j)	1,741		1,429
Morgan Stanley ABS Capital I Trust:
Series 2004-HE6 Class A2, 0.6015% 8/25/34 (j)	36		30
Series 2004-NC8 Class M6, 1.5115% 9/25/34 (j)	101		42
Series 2005-NC1 Class M1, 0.7015% 1/25/35 (j)	253		179
Series 2005-NC2 Class B1, 1.4315% 3/25/35 (j)	264		40
Series 2007-HE2 Class M1, 0.5115% 1/25/37 (j)	150		4
National Collegiate Student Loan Trust:
Series 2004-2 Class AIO, 9.75% 10/25/14 (l)	6,600		908
Series 2006-1 Class AIO, 5.5% 4/25/11 (l)	8,938		69
Series 2006-2 Class AIO, 6% 8/25/11 (l)	5,162		106
Series 2006-3 Class AIO, 7.1% 1/25/12 (l)	27,151		1,222
Series 2006-4:
Class A1, 0.2915% 3/25/25 (j)	81		80
Class AIO, 6.35% 2/27/12 (l)	20,073		1,068
Class D, 1.3615% 5/25/32 (j)	1,227		29
Series 2007-1 Class AIO, 7.27% 4/25/12 (l)	23,975		1,798
Series 2007-2 Class AIO, 6.7% 7/25/12 (l)	17,719		1,479
New Century Home Equity Loan Trust:
Series 2005-4 Class M2, 0.7715% 9/25/35 (j)	903		598
Series 2005-D Class M2, 0.7315% 2/25/36 (j)	429		39
Ocala Funding LLC:
Series 2005-1A Class A, 1.7535% 3/20/49 (b)(d)(j)	449		0
Series 2006-1A Class A, 1.662% 3/20/49 (b)(d)(j)	933		0
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (j)	$ 36		$ 35
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (j)	79		77
Park Place Securities, Inc.:
Series 2004-WCW1:
Class M3, 1.5115% 9/25/34 (j)	337		214
Class M4, 1.7115% 9/25/34 (j)	433		202
Series 2005-WCH1:
Class M2, 0.7815% 1/25/36 (j)	1,296		1,201
Class M3, 0.8215% 1/25/36 (j)	302		214
Class M4, 1.0915% 1/25/36 (j)	935		386
Series 2005-WHQ2:
Class M7, 1.5115% 5/25/35 (j)	1,149		29
Class M9, 2.1415% 5/25/35 (j)	16		0*
Providian Master Note Trust Series 2006-C1A Class C1, 0.8158% 3/15/15 (d)(j)	1,928		1,927
Residential Asset Mortgage Products, Inc. Series 2006-EFC2 Class M1, 0.4915% 12/25/36 (j)	407		13
Residential Asset Securities Corp. Series 2007-KS2 Class AI1, 0.3315% 2/25/37 (j)	34		33
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0615% 4/25/33 (j)	3		3
Saxon Asset Securities Trust Series 2004-1 Class M1, 1.0565% 3/25/35 (j)	966		800
Securitized Asset Backed Receivables LLC Trust:
Series 2005-FR4 Class B3, 1.9815% 1/25/36 (j)	42		1
Series 2006-FR4 Class A2A, 0.3415% 8/25/36 (j)	21		9
Series 2007-NC1 Class A2A, 0.3115% 12/25/36 (j)	7		7
Sierra Receivables Funding Co. Series 2007-1A Class A2, 0.4106% 3/20/19 (FGIC Insured) (d)(j)	447		421
SLM Private Credit Student Loan Trust Series 2004-A Class C, 1.2516% 6/15/33 (j)	805		71
Specialty Underwriting & Residential Finance Trust Series 2006-AB2 Class N1, 5.75% 6/25/37 (d)	374		0
Structured Asset Investment Loan Trust Series 2004-8 Class M5, 1.4115% 9/25/34 (j)	56		23
SVO VOI Mortgage Corp. Series 2006-AA Class A, 5.28% 2/20/24 (d)	382		393
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.1215% 9/25/34 (j)	18		14
Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 0.8628% 4/6/42 (d)(j)	1,713		51
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Triad Auto Receivables Owner Trust Series 2006-C Class A4, 5.31% 5/13/13 (AMBAC Insured)	$ 249		$ 252
WaMu Asset Holdings Corp. Series 2006-8 Class N1, 6.048% 10/25/46 (d)	704		0
WaMu Master Note Trust Series 2006-C2A Class C2, 0.7658% 8/15/15 (d)(j)	5,126		5,109
Wells Fargo Home Equity Trust Series 2004-3 Class A, 4.5% 11/27/34 (a)(d)	6		0
Whinstone Capital Management Ltd. Series 1A Class B3, 2.1031% 10/25/44 (d)(j)	1,419		639
TOTAL ASSET-BACKED SECURITIES (Cost $96,256)		94,891
Collateralized Mortgage Obligations - 1.4%
Private Sponsor - 1.4%
Arran Residential Mortgages Funding No. 1 PLC floater Series 2006-1A Class DB, 0.7331% 4/12/56 (d)(j)	904		897
Banc of America Commercial Mortgage Trust Series 2007-2:
Class B, 5.6983% 4/10/49 (j)	896		442
Class C, 5.6983% 4/10/49 (j)	2,392		1,034
Class D, 5.6983% 4/10/49 (j)	1,197		435
Banc of America Funding Corp. sequential payer Series 2010-R4 Class 2A1, 4.5% 3/26/37 (d)	3,128		3,188
Banc of America Mortgage Securities, Inc.:
Series 2003-L Class 2A1, 2.9055% 1/25/34 (j)	901		851
Series 2004-1 Class 2A2, 3.2375% 10/25/34 (j)	955		867
Series 2004-A Class 2A2, 2.9991% 2/25/34 (j)	124		111
Series 2004-B:
Class 1A1, 2.9237% 3/25/34 (j)	75		68
Class 2A2, 3.0527% 3/25/34 (j)	563		542
Series 2004-D Class 2A2, 2.9567% 5/25/34 (j)	842		773
Series 2004-G Class 2A7, 3.0214% 8/25/34 (j)	777		700
Series 2004-H Class 2A1, 3.1667% 9/25/34 (j)	696		631
Bayview Commercial Asset Trust Series 2006-3A Class IO, 3.2127% 10/25/36 (d)(j)(l)	32,855		2,398
Bear Stearns ALT-A Trust floater Series 2005-1 Class A1, 0.5415% 1/25/35 (j)	1,363		1,134
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T24 Class X2, 0.4264% 10/12/41 (d)(j)(l)	2,101		24
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Chase Mortgage Finance Trust:
Series 2007-A1 Class 1A5, 2.9853% 2/25/37 (j)	$ 840		$ 835
Series 2007-A2 Class 2A1, 3.0618% 7/25/37 (j)	1,004		1,006
Citigroup Commercial Mortgage Trust Series 2008-C7 Class A2B, 6.0995% 12/10/49 (j)	1,095		1,158
Citigroup Mortgage Loan Trust Series 2004-UST1 Class A4, 2.4204% 8/25/34 (j)	720		715
Cobalt CMBS Commercial Mortgage Trust Series 2007-C2 Class B, 5.617% 4/15/47 (j)	1,223		550
COMM pass-thru certificates floater Series 2001-J2A Class A2F, 0.7648% 7/16/34 (d)(j)	817		815
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 2.9234% 11/25/34 (j)	989		926
Credit Suisse Mortgage Capital Certificates sequential payer Series 2010-16 Class A1, 3% 6/25/50 (d)	4,396		4,352
First Horizon Mortgage pass-thru Trust Series 2004-AR5 Class 2A1, 2.8757% 10/25/34 (j)	871		842
Fosse Master Issuer PLC floater Series 2006-1A:
Class B2, 0.4631% 10/18/54 (d)(j)	2,097		2,085
Class C2, 0.7731% 10/18/54 (d)(j)	703		697
Class M2, 0.5531% 10/18/54 (d)(j)	1,204		1,182
Gracechurch Mortgage Financing PLC floater Series 2006-1 Class D2, 0.7825% 11/20/56 (d)(j)	1,711		1,670
Granite Master Issuer PLC floater:
Series 2005-4 Class C2, 1.363% 12/20/54 (j)	117		76
Series 2006-1A Class C2, 1.463% 12/20/54 (d)(j)	5,059		3,255
Series 2006-2 Class C1, 0.733% 12/20/54 (j)	4,271		2,748
Series 2006-3 Class C2, 0.763% 12/20/54 (j)	890		573
Series 2006-4:
Class B1, 0.353% 12/20/54 (j)	2,694		2,223
Class C1, 0.643% 12/20/54 (j)	2,064		1,328
Class M1, 0.433% 12/20/54 (j)	710		536
Series 2007-1:
Class 1C1, 0.863% 12/20/54 (j)	1,688		1,086
Class 1M1, 0.563% 12/20/54 (j)	894		675
Class 2C1, 1.223% 12/20/54 (j)	768		494
Class 2M1, 0.763% 12/20/54 (j)	1,148		867
Series 2007-2 Class 2C1, 0.694% 12/17/54 (j)	1,992		1,282
Granite Mortgages PLC floater Series 2003-3 Class 1C, 2.7531% 1/20/44 (j)	341		256
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
GSR Mortgage Loan Trust Series 2007-AR2 Class 2A1, 2.9085% 4/25/35 (j)	$ 369		$ 320
Harborview Mortgage Loan Trust floater Series 2005-2 Class 2A1A, 0.482% 5/19/35 (j)	232		155
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class A3, 5.447% 6/12/47 (j)	2,077		2,150
JPMorgan Mortgage Trust:
sequential payer Series 2006-A5 Class 3A5, 5.9004% 8/25/36 (j)	1,303		1,089
Series 2004-A3 Class 4A1, 4.29% 7/25/34 (j)	840		814
Series 2006-A2 Class 5A1, 2.9739% 11/25/33 (j)	952		915
LB-UBS Commercial Mortgage Trust sequential payer Series 2006-C6 Class A4, 5.372% 9/15/39	492		529
MASTR Adjustable Rate Mortgages Trust Series 2007-3 Class 22A2, 0.4715% 5/25/47 (j)	640		442
MASTR Asset Backed Securities Trust Series 2006-NC3 Class M1, 0.4915% 10/25/36 (j)	228		1
Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 0.4315% 2/25/37 (j)	1,091		784
Merrill Lynch Floating Trust floater Series 2006-1:
Class B, 0.436% 6/15/22 (d)(j)	190		179
Class C, 0.456% 6/15/22 (d)(j)	936		831
Class D, 0.466% 6/15/22 (d)(j)	452		386
Class E, 0.476% 6/15/22 (d)(j)	576		485
Class F, 0.506% 6/15/22 (d)(j)	955		790
Class G, 0.576% 6/15/22 (d)(j)	271		220
Class H, 0.596% 6/15/22 (d)(j)	433		345
Class J, 0.636% 6/15/22 (d)(j)	505		380
Merrill Lynch Mortgage Investors Trust:
Series 2004-A4 Class A1, 2.7866% 8/25/34 (j)	1,121		1,069
Series 2005-A2 Class A7, 2.6496% 2/25/35 (j)	766		716
Series 2006-A6 Class A4, 3.1889% 10/25/33 (j)	742		714
Opteum Mortgage Acceptance Corp. floater Series 2005-3 Class APT, 0.5515% 7/25/35 (j)	1,445		1,184
Option One Mortgage Loan Trust floater Series 2007-CP1 Class M1, 0.5615% 3/25/37 (j)	1,797		117
Provident Funding Mortgage Loan Trust Series 2005-2 Class 3A, 2.81% 10/25/35 (j)	2,587		2,264
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B:
Class B5, 2.614% 7/10/35 (d)(j)	923		750
Class B6, 3.114% 7/10/35 (d)(j)	1,223		937
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Residential Asset Mortgage Products, Inc. sequential payer:
Series 2003-SL1 Class A31, 7.125% 4/25/31	$ 497		$ 522
Series 2004-SL3 Class A1, 7% 8/25/16	26		26
Residential Funding Securities Corp. floater Series 2003-RP2 Class A1, 0.7115% 6/25/33 (d)(j)	237		194
Salomon Brothers Mortgage Securities VII, Inc. Series 2006-C2 Class H, 6.308% 7/18/33 (d)	194		193
Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 0.8997% 7/20/34 (j)	25		19
Structured Asset Securities Corp.:
Series 2003-15A Class 4A, 5.3732% 4/25/33 (j)	327		317
Series 2003-20 Class 1A1, 5.5% 7/25/33	249		255
TBW Mortgage-Backed pass-thru certificates floater Series 2006-4 Class A3, 0.46% 9/25/36 (j)	2,073		1,475
WaMu Mortgage pass-thru certificates:
Series 2003-AR8 Class A, 2.7159% 8/25/33 (j)	569		541
Series 2005-AR3 Class A2, 2.7112% 3/25/35 (j)	1,519		1,367
Wells Fargo Mortgage Backed Securities Trust:
Series 2004-W Class A9, 2.7616% 11/25/34 (j)	1,734		1,670
Series 2005-AR12 Class 2A6, 2.8181% 7/25/35 (j)	1,901		1,803
Series 2005-AR2 Class 2A2, 2.8076% 3/25/35 (j)	1,276		1,194
Series 2005-AR3 Class 2A1, 2.8794% 3/25/35 (j)	1,047		956
Series 2006-AR8 Class 3A1, 2.8958% 4/25/36 (j)	10,658		9,725
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $67,220)		85,150
Commercial Mortgage Securities - 7.3%
Asset Securitization Corp. Series 1997-D5:
Class A2, 7.0685% 2/14/43 (j)	805		857
Class A3, 7.1185% 2/14/43 (j)	869		939
Class A6, 7.4385% 2/14/43 (j)	1,281		1,361
Class PS1, 1.4561% 2/14/43 (j)(l)	4,082		97
Banc of America Commercial Mortgage Trust:
sequential payer:
Series 2006-2 Class AAB, 5.7218% 5/10/45 (j)	1,279		1,377
Series 2006-3 Class A4, 5.889% 7/10/44 (j)	6,816		7,449
Series 2006-6 Class A3, 5.369% 10/10/45	2,190		2,271
Series 2007-2 Class A1, 5.421% 4/10/49	60		61
Series 2007-4 Class A3, 5.8093% 2/10/51 (j)	1,092		1,152
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Banc of America Commercial Mortgage Trust: - continued
sequential payer:
Series 2006-6 Class E, 5.619% 10/10/45 (d)	$ 633		$ 182
Series 2007-3:
Class A3, 5.6579% 6/10/49 (j)	1,828		1,906
Class A4, 5.6579% 6/10/49 (j)	2,283		2,438
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2001-1 Class A4, 5.451% 1/15/49	2,398		2,555
Series 2004-2:
Class A3, 4.05% 11/10/38	227		230
Class A4, 4.153% 11/10/38	1,389		1,433
Series 2005-1 Class A3, 4.877% 11/10/42	998		1,000
Series 2006-1 Class A1, 5.219% 9/10/45 (j)	79		79
Series 2001-3 Class H, 6.562% 4/11/37 (d)	612		620
Series 2001-PB1:
Class J, 7.166% 5/11/35 (d)	343		338
Class K, 6.15% 5/11/35 (d)	509		485
Series 2005-3 Series A3B, 5.09% 7/10/43 (j)	3,402		3,532
Series 2007-1 Class B, 5.543% 1/15/49	659		529
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class C, 0.5758% 3/15/22 (d)(j)	470		461
Class D, 0.6258% 3/15/22 (d)(j)	476		443
Class E, 0.6658% 3/15/22 (d)(j)	393		358
Class F, 0.7358% 3/15/22 (d)(j)	489		435
Class G, 0.7958% 3/15/22 (d)(j)	317		275
Series 2006-BIX1:
Class C, 0.4458% 10/15/19 (d)(j)	704		679
Class D, 0.4758% 10/15/19 (d)(j)	860		804
Class E, 0.5058% 10/15/19 (d)(j)	797		725
Class F, 0.5758% 10/15/19 (d)(j)	1,885		1,658
Class G, 0.5958% 10/15/19 (d)(j)	759		638
Bayview Commercial Asset Trust:
floater:
Series 2003-2 Class M1, 1.1115% 12/25/33 (d)(j)	61		44
Series 2004-1:
Class A, 0.6215% 4/25/34 (d)(j)	782		692
Class B, 2.1615% 4/25/34 (d)(j)	87		49
Class M1, 0.8215% 4/25/34 (d)(j)	88		68
Class M2, 1.4615% 4/25/34 (d)(j)	81		57
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2004-2:
Class A, 0.6915% 8/25/34 (d)(j)	$ 637		$ 554
Class M1, 0.8415% 8/25/34 (d)(j)	145		107
Series 2004-3:
Class A1, 0.6315% 1/25/35 (d)(j)	1,428		1,228
Class A2, 0.6815% 1/25/35 (d)(j)	205		154
Class M1, 0.7615% 1/25/35 (d)(j)	247		178
Class M2, 1.2615% 1/25/35 (d)(j)	124		84
Series 2005-2A:
Class A1, 0.5715% 8/25/35 (d)(j)	1,092		890
Class M1, 0.6915% 8/25/35 (d)(j)	72		48
Class M2, 0.7415% 8/25/35 (d)(j)	95		59
Class M3, 0.7615% 8/25/35 (d)(j)	66		40
Class M4, 0.8715% 8/25/35 (d)(j)	60		34
Series 2005-3A:
Class A1, 0.5815% 11/25/35 (d)(j)	436		355
Class A2, 0.6615% 11/25/35 (d)(j)	407		322
Class M1, 0.7015% 11/25/35 (d)(j)	109		72
Class M2, 0.7515% 11/25/35 (d)(j)	82		51
Class M3, 0.7715% 11/25/35 (d)(j)	73		42
Class M4, 0.8615% 11/25/35 (d)(j)	92		49
Series 2005-4A:
Class A2, 0.6515% 1/25/36 (d)(j)	1,004		783
Class B1, 1.6615% 1/25/36 (d)(j)	109		41
Class M1, 0.7115% 1/25/36 (d)(j)	324		215
Class M2, 0.7315% 1/25/36 (d)(j)	122		76
Class M3, 0.7615% 1/25/36 (d)(j)	178		101
Class M4, 0.8715% 1/25/36 (d)(j)	98		51
Class M5, 0.9115% 1/25/36 (d)(j)	98		47
Class M6, 0.9615% 1/25/36 (d)(j)	105		43
Series 2006-1:
Class A2, 0.6215% 4/25/36 (d)(j)	193		155
Class M1, 0.6415% 4/25/36 (d)(j)	117		76
Class M2, 0.6615% 4/25/36 (d)(j)	124		76
Class M3, 0.6815% 4/25/36 (d)(j)	107		61
Class M4, 0.7815% 4/25/36 (d)(j)	60		32
Class M5, 0.8215% 4/25/36 (d)(j)	59		28
Class M6, 0.9015% 4/25/36 (d)(j)	117		53
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2006-2A:
Class A1, 0.4915% 7/25/36 (d)(j)	$ 2,674		$ 2,139
Class A2, 0.5415% 7/25/36 (d)(j)	173		131
Class B1, 1.1315% 7/25/36 (d)(j)	110		39
Class B3, 2.9615% 7/25/36 (d)(j)	98		25
Class M1, 0.5715% 7/25/36 (d)(j)	181		103
Class M2, 0.5915% 7/25/36 (d)(j)	128		68
Class M3, 0.6115% 7/25/36 (d)(j)	106		51
Class M4, 0.6815% 7/25/36 (d)(j)	121		52
Class M5, 0.7315% 7/25/36 (d)(j)	88		36
Class M6, 0.8015% 7/25/36 (d)(j)	131		47
Series 2006-3A:
Class B1, 1.0615% 10/25/36 (d)(j)	117		21
Class B2, 1.6115% 10/25/36 (d)(j)	143		21
Class B3, 2.8615% 10/25/36 (d)(j)	137		16
Class M4, 0.6915% 10/25/36 (d)(j)	129		48
Class M5, 0.7415% 10/25/36 (d)(j)	154		51
Class M6, 0.8215% 10/25/36 (d)(j)	302		76
Series 2006-4A:
Class A1, 0.4915% 12/25/36 (d)(j)	507		408
Class A2, 0.5315% 12/25/36 (d)(j)	2,574		1,930
Class B1, 0.9615% 12/25/36 (d)(j)	160		28
Class B2, 1.5115% 12/25/36 (d)(j)	164		25
Class B3, 2.7115% 12/25/36 (d)(j)	172		20
Class M1, 0.5515% 12/25/36 (d)(j)	207		120
Class M2, 0.5715% 12/25/36 (d)(j)	138		75
Class M3, 0.6015% 12/25/36 (d)(j)	140		69
Class M4, 0.6615% 12/25/36 (d)(j)	168		74
Class M5, 0.7015% 12/25/36 (d)(j)	153		64
Class M6, 0.7815% 12/25/36 (d)(j)	138		51
Series 2007-1:
Class A2, 0.5315% 3/25/37 (d)(j)	555		394
Class B1, 0.9315% 3/25/37 (d)(j)	221		44
Class B2, 1.4115% 3/25/37 (d)(j)	160		26
Class B3, 3.6115% 3/25/37 (d)(j)	351		39
Class M1, 0.5315% 3/25/37 (d)(j)	195		94
Class M2, 0.5515% 3/25/37 (d)(j)	146		63
Class M3, 0.5815% 3/25/37 (d)(j)	193		73
Class M4, 0.6315% 3/25/37 (d)(j)	157		55
Class M5, 0.6815% 3/25/37 (d)(j)	163		51
Class M6, 0.7615% 3/25/37 (d)(j)	227		57
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2007-2A:
Class A1, 0.5315% 7/25/37 (d)(j)	$ 1,405		$ 1,040
Class A2, 0.5815% 7/25/37 (d)(j)	1,316		645
Class B1, 1.8615% 7/25/37 (d)(j)	394		51
Class B2, 2.5115% 7/25/37 (d)(j)	343		41
Class B3, 3.6115% 7/25/37 (d)(j)	385		35
Class M1, 0.6315% 7/25/37 (d)(j)	449		142
Class M2, 0.6715% 7/25/37 (d)(j)	293		85
Class M3, 0.7515% 7/25/37 (d)(j)	296		73
Class M4, 0.9115% 7/25/37 (d)(j)	492		88
Class M5, 1.0115% 7/25/37 (d)(j)	434		65
Class M6, 1.2615% 7/25/37 (d)(j)	551		77
Series 2007-3:
Class A2, 0.5515% 7/25/37 (d)(j)	553		370
Class B1, 1.2115% 7/25/37 (d)(j)	333		43
Class B2, 1.8615% 7/25/37 (d)(j)	858		86
Class B3, 4.2615% 7/25/37 (d)(j)	445		36
Class M1, 0.5715% 7/25/37 (d)(j)	293		132
Class M2, 0.6015% 7/25/37 (d)(j)	313		110
Class M3, 0.6315% 7/25/37 (d)(j)	504		151
Class M4, 0.7615% 7/25/37 (d)(j)	794		222
Class M5, 0.8615% 7/25/37 (d)(j)	402		88
Class M6, 1.0615% 7/25/37 (d)(j)	305		61
Series 2007-4A:
Class B1, 2.8115% 9/25/37 (d)(j)	240		8
Class B2, 3.7115% 9/25/37 (d)(j)	695		17
Class M1, 1.2115% 9/25/37 (d)(j)	232		35
Class M2, 1.3115% 9/25/37 (d)(j)	232		28
Class M4, 1.8615% 9/25/37 (d)(j)	471		42
Class M5, 2.0115% 9/25/37 (d)(j)	471		33
Class M6, 2.2115% 9/25/37 (d)(j)	472		28
Series 2004-1 Class IO, 1.25% 4/25/34 (d)(l)	3,052		107
Series 2007-5A Class IO, 3.047% 10/25/37 (d)(j)(l)	7,307		867
Bear Stearns Commercial Mortgage Securities Trust:
floater:
Series 2006-BBA7:
Class G, 0.7058% 3/15/19 (d)(j)	510		426
Class H, 0.9158% 3/15/19 (d)(j)	429		319
Class J, 1.1158% 3/15/19 (d)(j)	323		229
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bear Stearns Commercial Mortgage Securities Trust: - continued
floater:
Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (d)(j)	$ 489		$ 401
Class E, 0.5658% 3/15/22 (d)(j)	2,030		1,563
Class F, 0.6158% 3/15/22 (d)(j)	1,246		897
Class G, 0.6658% 3/15/22 (d)(j)	401		277
Class H, 0.8158% 3/15/22 (d)(j)	489		308
Class J, 0.9658% 3/15/22 (d)(j)	489		245
sequential payer:
Series 2003-PWR2 Class A3, 4.834% 5/11/39	294		298
Series 2004-PWR3 Class A3, 4.487% 2/11/41	632		642
Series 2006-T24 Class A1, 4.905% 10/12/41 (j)	66		67
Series 2007-PW16 Class A4, 5.7174% 6/11/40 (j)	641		697
Series 2007-PW17 Class A1, 5.282% 6/11/50	381		387
Series 2007-T26 Class A1, 5.145% 1/12/45 (j)	189		193
Series 2003-PWR2 Class X2, 0.5297% 5/11/39 (d)(j)(l)	9,682		30
Series 2006-PW13 Class A3, 5.518% 9/11/41	3,864		4,048
Series 2006-PW14 Class X2, 0.6525% 12/11/38 (d)(j)(l)	15,640		280
Series 2006-T22 Class A4, 5.514% 4/12/38 (j)	137		150
Series 2007-PW16:
Class B, 5.7174% 6/11/40 (d)(j)	176		118
Class C, 5.7174% 6/11/40 (d)(j)	146		82
Class D, 5.7174% 6/11/40 (d)(j)	146		76
Series 2007-PW18 Class X2, 0.3155% 6/11/50 (d)(j)(l)	119,638		1,442
Series 2007-T28 Class X2, 0.1785% 9/11/42 (d)(j)(l)	58,943		444
C-BASS Trust floater Series 2006-SC1 Class A, 0.5315% 5/25/36 (d)(j)	542		404
CDC Commercial Mortgage Trust Series 2002-FX1:
Class G, 6.625% 5/15/35 (d)	1,287		1,367
Class XCL, 2.1173% 5/15/35 (d)(j)(l)	14,616		322
Chase Commercial Mortgage Securities Corp. Series 2000-3 Class G 6.887% 10/15/32 (d)	5,748		5,729
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2:
Class F, 0.574% 8/15/21 (d)(j)	391		381
Class G, 0.594% 8/15/21 (d)(j)	326		305
Class H, 0.634% 8/15/21 (d)(j)	261		235
Series 2006-C5 Class AMP2, 5.5005% 10/15/49 (d)	1,655		1,498
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Citigroup Commercial Mortgage Trust: - continued
floater Series
Series 2007-C6:
Class A1, 5.622% 12/10/49 (j)	$ 272		$ 273
Class A2, 5.6981% 12/10/49 (j)	1,093		1,135
Class A4, 5.6981% 12/10/49 (j)	3,631		3,935
Series 2007-FL3A Class A2, 0.4058% 4/15/22 (d)(j)	3,955		3,795
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4:
Class A2A, 5.237% 12/11/49	857		865
Class A4, 5.322% 12/11/49	12,679		13,364
Series 2007-CD4:
Class A3, 5.293% 12/11/49	1,066		1,097
Class C, 5.476% 12/11/49	2,061		721
Cobalt CMBS Commercial Mortgage Trust:
sequential payer Series 2007-C3 Class A3, 5.8155% 5/15/46 (j)	1,095		1,173
Cobalt CMBS Commercial Mortgage Trust: - continued
Series 2006-C1 Class B, 5.359% 8/15/48	3,285		1,807
COMM pass-thru certificates:
floater:
Series 2005-F10A:
Class B, 0.4958% 4/15/17 (d)(j)	2,955		2,748
Class C, 0.5358% 4/15/17 (d)(j)	881		811
Class D, 0.5758% 4/15/17 (d)(j)	601		547
Class E, 0.6358% 4/15/17 (d)(j)	192		171
Class F, 0.6758% 4/15/17 (d)(j)	109		93
Class G, 0.8158% 4/15/17 (d)(j)	109		89
Class H, 0.8858% 4/15/17 (d)(j)	109		84
Class J, 1.1158% 4/15/17 (d)(j)	104		73
Series 2005-FL11:
Class C, 0.5658% 11/15/17 (d)(j)	836		794
Class D, 0.6058% 11/15/17 (d)(j)	44		41
Class E, 0.6558% 11/15/17 (d)(j)	154		142
Class F, 0.7158% 11/15/17 (d)(j)	118		107
Class G, 0.7658% 11/15/17 (d)(j)	81		73
Series 2006-FL12 Class AJ, 0.3958% 12/15/20 (d)(j)	1,560		1,443
sequential payer:
Series 2005-C6 Class A2, 4.999% 6/10/44 (j)	11		11
Series 2006-C8:
Class A3, 5.31% 12/10/46	3,121		3,243
Class A4, 5.306% 12/10/46	14,677		15,520
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
COMM pass-thru certificates: - continued
sequential payer:
Series 2006-CN2A:
Class A2FX, 5.449% 2/5/19 (d)	$ 1,851		$ 1,851
Class AJFX, 5.478% 2/5/19 (d)	3,272		3,267
Series 2007-C9 Class A4, 5.8148% 12/10/49 (j)	2,423		2,647
Series 2004-LBN2 Class X2, 0.8571% 3/10/39 (d)(j)(l)	1,844		0*
Series 2006-C8:
Class B, 5.44% 12/10/46	1,896		1,252
Class XP, 0.4911% 12/10/46 (j)(l)	11,356		138
Credit Suisse Commercial Mortgage Trust:
sequential payer:
Series 2006-C4 Class A3, 5.467% 9/15/39	5,651		6,043
Series 2007-C2 Class A3, 5.542% 1/15/49 (j)	2,190		2,300
Series 2007-C3 Class A4, 5.7203% 6/15/39 (j)	658		701
Series 2006-C4 Class AAB, 5.439% 9/15/39	6,232		6,524
Series 2006-C5 Class ASP, 0.6744% 12/15/39 (j)(l)	6,913		125
Series 2007-C5 Class A4, 5.695% 9/15/40 (j)	991		1,043
Credit Suisse First Boston Mortgage Capital Certificates floater Series 2007-TF2A Class B, 0.6158% 4/15/22 (d)(j)	3,907		3,047
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer:
Series 2001-CK6 Class B, 6.582% 8/15/36	1,095		1,121
Series 2002-CP5 Class A1, 4.106% 12/15/35	54		54
Series 2004-C1:
Class A3, 4.321% 1/15/37	185		187
Class A4, 4.75% 1/15/37	510		536
Series 2001-CK6 Class AX, 0.8911% 8/15/36 (j)(l)	3,411		13
Series 2001-CKN5 Class AX, 1.9441% 9/15/34 (d)(j)(l)	9,648		37
Series 2004-C1 Class ASP, 0.9583% 1/15/37 (d)(j)(l)	66,274		11
Series 2006-C1 Class A3, 5.5457% 2/15/39 (j)	5,781		6,115
Credit Suisse Mortgage Capital Certificates:
floater Series 2007-TFL1:
Class B, 0.4158% 2/15/22 (d)(j)	414		373
Class C:
0.4358% 2/15/22 (d)(j)	1,180		1,038
0.5358% 2/15/22 (d)(j)	421		354
Class F, 0.5858% 2/15/22 (d)(j)	843		692
Series 2007-C1:
Class ASP, 0.4157% 2/15/40 (j)(l)	25,686		250
Class B, 5.487% 2/15/40 (d)(j)	1,677		252
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1:
Class D, 6.484% 3/15/33	$ 390		$ 390
Class G, 6.936% 3/15/33 (d)	903		906
GE Capital Commercial Mortgage Corp.:
sequential payer Series 2007-C1 Class A4, 5.543% 12/10/49	5,444		5,737
Series 2001-1 Class X1, 0.9778% 5/15/33 (d)(j)(l)	5,006		54
Series 2007-C1 Class XP, 0.2003% 12/10/49 (j)(l)	23,826		126
GMAC Commercial Mortgage Securities, Inc.:
Series 2004-C3 Class X2, 0.6179% 12/10/41 (j)(l)	4,597		20
Series 2005-C1 Class X2, 0.5542% 5/10/43 (j)(l)	5,224		39
Greenwich Capital Commercial Funding Corp.:
floater Series 2006-FL4 Class B, 0.453% 11/5/21 (d)(j)	412		389
sequential payer:
Series 2007-GG11 Class A2, 5.597% 12/10/49	2,190		2,295
Series 2007-GG9 Class A4, 5.444% 3/10/39	3,184		3,401
Series 2005-GG3 Class XP, 0.6927% 8/10/42 (d)(j)(l)	22,965		152
Series 2006-GG7:
Class A3, 5.8829% 7/10/38 (j)	2,887		3,046
Class A4, 5.8829% 7/10/38 (j)	8,476		9,309
Series 2007-GG11 Class A1, 0.4798% 12/10/49 (d)(l)	31,597		281
GS Mortgage Securities Corp. II:
floater: Series 2006-FL8A:
Class C, 0.503% 6/6/20 (d)(j)	69		65
Class D, 0.543% 6/6/20 (d)(j)	261		240
Class E, 0.633% 6/6/20 (d)(j)	302		272
Class F, 0.703% 6/6/20 (d)(j)	528		465
Series 2007-EOP:
Class C, 2.1455% 3/6/20 (d)(j)	1,041		1,016
Class D, 2.3636% 3/6/20 (d)(j)	6,868		6,683
Class F, 2.8433% 3/6/20 (d)(j)	107		104
Class G, 3.0177% 3/6/20 (d)(j)	54		52
Class H, 3.5846% 3/6/20 (d)(j)	479		459
Class J, 4.4568% 3/6/20 (d)(j)	686		644
sequential payer Series 2004-GG2 Class A4, 4.964% 8/10/38	339		343
Series 2005-GG4 Class XP, 0.7101% 7/10/39 (d)(j)(l)	24,991		222
GS Mortgage Securities Trust sequential payer:
Series 2006-GG8 Class A2, 5.479% 11/10/39	1,642		1,664
Series 2007-GG10:
Class A1, 5.69% 8/10/45	20		20
Class A2, 5.778% 8/10/45	522		535
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8 Class X2, 1.1472% 1/12/39 (d)(j)(l)	$ 1,674		$ 0
Series 2006-LDP7 Class A4, 5.8745% 4/15/45 (j)	2,953		3,233
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class B, 0.4358% 11/15/18 (d)(j)	713		670
Class C, 0.4758% 11/15/18 (d)(j)	506		476
Class D, 0.4958% 11/15/18 (d)(j)	200		188
Class E, 0.5458% 11/15/18 (d)(j)	288		254
Class F, 0.5958% 11/15/18 (d)(j)	345		297
floater Series 2006-FLA2:
Class G, 0.6258% 11/15/18 (d)(j)	300		252
Class H, 0.7658% 11/15/18 (d)(j)	288		233
sequential payer:
Series 2006-LDP8 Class A4, 5.399% 5/15/45	698		751
Series 2006-LDP9:
Class A2, 5.134% 5/15/47 (j)	520		538
Class A3, 5.336% 5/15/47	457		486
Series 2007-CB19 Class A4, 5.7447% 2/12/49 (j)	3,840		4,136
Series 2007-CB20 Class A4, 5.794% 2/12/51	5,462		5,932
Series 2007-LD11 Class A2, 5.8025% 6/15/49 (j)	3,074		3,181
Series 2007-LDP10 Class A1, 5.122% 1/15/49	17		17
Series 2007-LDPX:
Class A2 S, 5.305% 1/15/49	2,481		2,537
Class A3, 5.412% 1/15/49	17,842		18,963
Series 2005-CB13 Class E, 5.3502% 1/12/43 (d)(j)	694		72
Series 2006-CB17 Class A3, 5.45% 12/12/43	312		323
Series 2007-CB19:
Class B, 5.7447% 2/12/49 (j)	93		55
Class C, 5.7447% 2/12/49 (j)	245		125
Class D, 5.7447% 2/12/49 (j)	257		120
Series 2007-LDP10:
Class BS, 5.437% 1/15/49 (j)	209		134
Class CS, 5.466% 1/15/49 (j)	90		49
Class ES, 5.5411% 1/15/49 (d)(j)	566		144
JPMorgan Commercial Mortgage Finance Corp. Series 2000-C9 Class G, 6.25% 10/15/32 (d)	371		371
LB Commercial Conduit Mortgage Trust:
sequential payer Series 2007-C3 Class A4, 5.948% 7/15/44 (j)	19,559		21,104
Series 1998-C1 Class D, 6.98% 2/18/30	328		328
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2001-C2 Class A2, 6.653% 11/15/27	$ 10		$ 10
Series 2006-C1 Class A2, 5.084% 2/15/31	277		278
Series 2006-C6:
Class A1, 5.23% 9/15/39	94		94
Class A2, 5.262% 9/15/39 (j)	1,911		1,930
Series 2006-C7:
Class A1, 5.279% 11/15/38	35		35
Class A2, 5.3% 11/15/38	1,204		1,224
Series 2006-C7:
Class A3, 5.347% 11/15/38	816		874
Series 2007-C1:
Class A1, 5.391% 2/15/40 (j)	83		85
Class A4, 5.424% 2/15/40	6,667		7,153
Series 2007-C2 Class A3, 5.43% 2/15/40	1,996		2,130
Series 2001-C3 Class B, 6.512% 6/15/36	2,117		2,149
Series 2001-C7 Class D, 6.514% 11/15/33	1,204		1,232
Series 2004-C2 Class XCP, 1.0355% 3/15/36 (d)(j)(l)	12,644		5
Series 2005-C3 Class XCP, 0.7544% 7/15/40 (j)(l)	4,247		34
Series 2006-C6 Class XCP, 0.6752% 9/15/39 (j)(l)	6,323		105
Series 2007-C1 Class XCP, 0.4772% 2/15/40 (j)(l)	2,356		30
Series 2007-C6 Class A4, 5.858% 7/15/40 (j)	1,368		1,477
Series 2007-C7:
Class A3, 5.866% 9/15/45	1,162		1,254
Class XCP, 0.2848% 9/15/45 (j)(l)	105,287		1,036
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class D, 0.4958% 9/15/21 (d)(j)	351		316
Class E, 0.5558% 9/15/21 (d)(j)	1,265		1,113
Class F, 0.6058% 9/15/21 (d)(j)	723		615
Class G, 0.6258% 9/15/21 (d)(j)	1,429		1,158
Class H, 0.6658% 9/15/21 (d)(j)	369		288
Lehman Large Loan Trust Series 1997-LLI Class E, 7.3% 10/12/34	1,943		1,992
Merrill Lynch Mortgage Trust:
sequential payer:
Series 2004-MKB1 Class A2, 4.353% 2/12/42	32		32
Series 2005-CIP1 Class A2, 4.96% 7/12/38	2,579		2,610
Series 2005-CKI1 Class A3, 5.2412% 11/12/37 (j)	1,798		1,832
Series 2005-LC1 Class F, 5.3853% 1/12/44 (d)(j)	953		486
Series 2006-C1 Class A2, 5.6109% 5/12/39 (j)	1,295		1,334
Series 2007-C1 Class A4, 5.8261% 6/12/50 (j)	4,145		4,500
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Merrill Lynch Mortgage Trust: - continued
sequential payer:
Series 2008-C1 Class A4, 5.69% 2/12/51	$ 2,338		$ 2,504
Merrill Lynch-CFC Commercial Mortgage Trust:
floater Series 2006-4 Class A2FL, 0.3813% 12/12/49 (j)	499		487
sequential payer:
Series 2006-1 CLass A3, 5.4839% 2/12/39 (j)	1,165		1,211
Series 2006-4 Class ASB, 5.133% 12/12/49 (j)	941		1,000
Series 2007-5:
Class A3, 5.364% 8/12/48	427		439
Class A4, 5.378% 8/12/48	55		58
Class B, 5.479% 2/12/17	3,285		1,443
Series 2007-6:
Class A1, 5.175% 3/12/51	37		38
Class A4, 5.485% 3/12/51 (j)	2,594		2,724
Series 2007-7 Class A4, 5.7439% 6/12/50 (j)	3,832		4,076
Series 2007-8 Class A1, 4.622% 8/12/49	165		167
Series 2006-4 Class XP, 0.6112% 12/12/49 (j)(l)	23,869		459
Series 2007-6 Class B, 5.635% 3/12/51 (j)	1,095		536
Series 2007-7 Class B, 5.75% 6/12/50	1,409		320
Series 2007-8 Class A3, 5.9645% 8/12/49 (j)	944		1,022
Morgan Stanley Capital I Trust:
floater:
Series 2006-XLF Class C, 1.466% 7/15/19 (d)(j)	227		118
Series 2007-XCLA Class A1, 0.466% 7/17/17 (d)(j)	1,545		1,391
Series 2007-XLFA:
Class C, 0.426% 10/15/20 (d)(j)	629		528
Class D, 0.456% 10/15/20 (d)(j)	422		317
Class E, 0.516% 10/15/20 (d)(j)	528		343
Class F, 0.566% 10/15/20 (d)(j)	397		199
Class G, 0.606% 10/15/20 (d)(j)	491		197
Class H, 0.696% 10/15/20 (d)(j)	309		31
Class J, 0.846% 10/15/20 (d)(j)	353		18
Class MHRO, 0.956% 10/15/20 (d)(j)	417		133
Class MJPM, 1.266% 10/15/20 (d)(j)	29		22
Class MSTR, 0.966% 10/15/20 (d)(j)	300		96
Class NHRO, 1.156% 10/15/20 (d)(j)	503		111
Class NSTR, 1.116% 10/15/20 (d)(j)	276		61
sequential payer:
Series 2003-IQ5 Class X2, 0.9108% 4/15/38 (d)(j)(l)	3,777		18
Series 2005-IQ9 Class A3, 4.54% 7/15/56	1,626		1,668
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Morgan Stanley Capital I Trust: (continued)
sequential payer:
Series 2007-HQ11:
Class A1, 5.246% 2/12/44	$ 75		$ 75
Class A31, 5.439% 2/12/44 (j)	8,687		9,022
Series 2007-IQ13 Class A1, 5.05% 3/15/44	159		160
Series 2007-IQ14 Class A1, 5.38% 4/15/49	118		120
Series 2007-IQ15 Class A4, 5.8793% 6/11/49 (j)	4,988		5,412
Series 2007-T25 Class A1, 5.391% 11/12/49	105		107
Series 2007-T27 Class A4, 5.6497% 6/11/42 (j)	4,010		4,369
Series 2003-IQ6 Class X2, 0.5897% 12/15/41 (d)(j)(l)	8,119		40
Series 2005-IQ9 Class X2, 1.0924% 7/15/56 (d)(j)(l)	14,512		140
Series 2006-HQ10 Class X2, 0.4925% 11/12/41 (d)(j)(l)	5,430		50
Series 2006-HQ8 Class A3, 5.442% 3/12/44 (j)	1,698		1,718
Series 2006-IQ11 Class A4, 5.7317% 10/15/42 (j)	329		360
Series 2006-IQ12 Class B, 5.468% 12/15/43	1,095		712
Series 2006-T23 Class A3, 5.803% 8/12/41 (j)	559		597
Series 2007-HQ11 Class B, 5.538% 2/20/44 (j)	1,986		1,490
Series 2007-HQ12 Class A4, 5.5971% 4/12/49 (j)	5,793		5,984
Series 2007-IQ14:
Class A4, 5.692% 4/15/49 (j)	1,642		1,739
Class AAB, 5.654% 4/15/49	2,402		2,543
Class B, 5.7308% 4/15/49 (j)	269		148
Structured Asset Securities Corp. Series 1997-LLI Class D, 7.15% 10/12/34	100		102
TrizecHahn Office Properties Trust Series 2001-TZHA Class C4, 6.893% 5/15/16 (d)	681		687
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2005-WL5A Class K, 1.4658% 1/15/18 (d)(j)	809		776
Series 2006-WL7A:
Class E, 0.544% 9/15/21 (d)(j)	1,099		855
Class F, 0.604% 8/11/18 (d)(j)	1,189		797
Class G, 0.624% 8/11/18 (d)(j)	1,126		691
Class J, 0.864% 8/11/18 (d)(j)	314		146
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (d)(j)	105		74
Class AP2, 1.0658% 6/15/20 (d)(j)	175		114
Class F, 0.7458% 6/15/20 (d)(j)	2,710		1,762
Class LXR1, 0.9658% 6/15/20 (d)(j)	169		142
Class LXR2, 1.0658% 6/15/20 (d)(j)	1,847		1,459
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust: - (continued)
sequential payer:
Series 2003-C7 Class A1, 4.241% 10/15/35 (d)	$ 1,514		$ 1,525
Series 2006-C27 Class A2, 5.624% 7/15/45	891		898
Series 2006-C28 Class A4, 5.572% 10/15/48	5,427		5,812
Series 2006-C29:
Class A1, 5.11% 11/15/48	186		188
Class A3, 5.313% 11/15/48	2,908		3,041
Series 2007-C30:
Class A1, 5.031% 12/15/43	5		5
Class A3, 5.246% 12/15/43	940		967
Class A4, 5.305% 12/15/43	322		329
Class A5, 5.342% 12/15/43	1,172		1,223
Series 2007-C31:
Class A1, 5.14% 4/15/47	2		2
Class A4, 5.509% 4/15/47	2,475		2,606
Series 2007-C32:
Class A2, 5.7406% 6/15/49 (j)	1,314		1,370
Class A3, 5.7456% 6/15/49 (j)	15,651		16,684
Series 2003-C6 Class G, 5.125% 8/15/35 (d)(j)	652		644
Series 2004-C15:
Class 180A, 5.5782% 10/15/41 (d)(j)	1,055		1,013
Class 180B, 5.5782% 10/15/41 (d)(j)	480		451
Series 2005-C19 Class B, 4.892% 5/15/44	1,095		1,012
Series 2005-C22:
Class B, 5.3619% 12/15/44 (j)	2,428		2,172
Class F, 5.3619% 12/15/44 (d)(j)	1,826		1,034
Series 2006-C29 Class E, 5.516% 11/15/48 (j)	1,095		591
Series 2007-C30:
Class C, 5.483% 12/15/43 (j)	3,285		1,700
Class D, 5.513% 12/15/43 (j)	1,752		713
Class XP, 0.4403% 12/15/43 (d)(j)(l)	15,237		185
Series 2007-C31 Class C, 5.6933% 4/15/47 (j)	4,515		2,327
Series 2007-C31A Class A2, 5.421% 4/15/47	3,929		4,064
Series 2007-C32:
Class D, 5.7456% 6/15/49 (j)	823		443
Class E, 5.7456% 6/15/49 (j)	1,297		548
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust pass-thru certificates:
sequential payer Series 2007-C33 Class A5, 5.8994% 2/15/51 (j)	$ 725		$ 782
Series 2007-C33 Class B, 5.8994% 2/15/51 (j)	1,841		1,358
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $349,497)		432,980
Municipal Securities - 0.3%
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 1/1/35 (j)	1,835		1,791
California Gen. Oblig.:
7.5% 4/1/34	6,295		6,736
7.55% 4/1/39	4,599		4,963
Illinois Gen. Oblig.:
5.665% 3/1/18 (e)	3,235		3,242
5.877% 3/1/19 (e)	2,885		2,893
TOTAL MUNICIPAL SECURITIES (Cost $18,909)		19,625
Supranational Obligations - 0.0%
Corporacion Andina de Fomento 5.2% 5/21/13 (Cost $410)	412		438

Fixed-Income Funds - 14.0%
	Shares
Fidelity Mortgage Backed Securities Central Fund (k)	6,768,477		708,660
Fidelity Specialized High Income Central Fund (k)	1,212,444		123,936
TOTAL FIXED-INCOME FUNDS (Cost $799,069)		832,596
Preferred Securities - 0.1%
	Principal Amount (000s)
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
MUFG Capital Finance 1 Ltd. 6.346% (j) (Cost $2,822)	$ 2,773		2,856
Cash Equivalents - 3.0%
	Maturity Amount (000s)		Value (000s)
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $179,341)	$ 179,342		$ 179,341
TOTAL INVESTMENT PORTFOLIO - 112.7% (Cost $6,466,186)			6,683,980
NET OTHER ASSETS (LIABILITIES) - (12.7)%			(754,648)
NET ASSETS - 100%		$ 5,929,332

Swap Agreements
	Expiration Date	Notional Amount (000s)
Credit Default Swaps
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Credit Suisse First Boston upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $2,116,000) (i)	Sept. 2037	$ 6,191	(5,787)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Credit Suisse First Boston upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $5,250,000) (i)	Sept. 2037	16,823	(15,725)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to JPMorgan Chase, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $1,302,000) (i)	Sept. 2037	3,768	(3,522)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to JPMorgan Chase, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $4,321,000) (i)	Sept. 2037	12,583	(11,762)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Morgan Stanley, Inc. upon each credit event of one of the issues of ABX AA 07-01 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $2,754,000) (i)	Sept. 2037	$ 6,864	$ (6,416)
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to UBS upon each credit event of one of the issues of ABX AA 07-1 Index, par value of the proportional notional amount (Rating-C) (Upfront Payment (Made)/Received $3,716,000) (i)	Sept. 2037	11,237	(10,504)
Receive monthly notional amount multiplied by .82% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34 (h)	August 2034	574	(318)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34 (h)	Oct. 2034	563	(234)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32 (Rating-Ba1) (h)	April 2032	186	(109)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34 (Rating-C) (h)	Feb. 2034	4	(3)
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 7.2913% 9/25/34 (Rating-B1) (h)	Oct. 2034	743	(281)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7, Class B3, 9.01% 8/25/34 (Rating-C) (h)	Sept. 2034	$ 561	$ (424)
Receive quarterly notional amount multiplied by 4% and pay Morgan Stanley, Inc. upon credit event of Developers Diversified Realty Corp., par value of the notional amount of Developers Diversified Realty Corp. 5.375% 10/15/12 (Rating-Baa3) (h)	March 2013	13,500	1,021
TOTAL CREDIT DEFAULT SWAPS		$ 73,597	$ (54,064)
Interest Rate Swaps
Receive quarterly a floating rate based on 3-month LIBOR and pay semi-annually a fixed rate equal to 4.5176% with JPMorgan Chase, Inc.	Feb. 2041	52,089	(2,276)
		$ 125,686	$ (56,340)

Legend

(a) Non-income producing

(b) Non-income producing - Security is in default.

(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $360,417,000 or 6.1% of net assets.

(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(f) A portion of the security is subject to a forward commitment to sell.

(g) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $58,846,000.

(h) Represents a credit default swap contract in which the Fund has sold protection on the underlying reference entity. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. For the underlying reference entity, ratings disclosed are from Moody's Investors Service, Inc. Where Moody's ratings are not available, S&P ratings are disclosed and are indicated as such. All ratings are as of the report date and do not reflect subsequent changes. Where a credit rating is not disclosed, the value is used as the measure of the payment/performance risk.

(i) Represents a credit default swap based on a tradable index of home equity asset-backed debt securities. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. In addition, the swap represents a contract in which the Fund has sold protection on the index of underlying securities. Ratings represent a weighted average of the ratings of all securities included in the index. Ratings used in the weighted average are from Moody's Investors Service, Inc., or S&P where Moody's ratings are not available. All ratings are as of the report date and do not reflect subsequent changes.

(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(k) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, are available on the SEC's web site or upon request.

(l) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

* Amount represents less than $1,000.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$179,341,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 14,988
Bank of America NA	13,323
Barclays Capital, Inc.	7,419
Credit Agricole Securities (USA), Inc.	6,662
Deutsche Bank Securities, Inc.	7,644
Goldman, Sachs & Co.	1,665
HSBC Securities (USA), Inc.	19,985
ING Financial Markets LLC	12,324
J.P. Morgan Securities, Inc.	19,985
Merrill Lynch Government Securities, Inc.	5,995
Merrill Lynch, Pierce, Fenner & Smith, Inc.	9,197
Mizuho Securities USA, Inc.	36,639
RBC Capital Markets Corp.	1,665
Societe Generale, New York Branch	13,323
Wells Fargo Securities LLC	8,527
	$ 179,341

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned (Amounts in thousands)
Fidelity Mortgage Backed Securities Central Fund	$ 13,516
Fidelity Specialized High Income Central Fund	4,961
Total	$ 18,477

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows:

Fund (Amounts in thousands)	Value, beginning of period	Purchases	Sales Proceeds *	Value, end of period	% ownership, end of period
Fidelity Mortgage Backed Securities Central Fund	$ 885,153	$ 12,151	$ 178,562	$ 708,660	7.1%
Fidelity Specialized High Income Central Fund	143,843	4,323	30,782	123,936	28.1%
Total	$ 1,028,996	$ 16,474	$ 209,344	$ 832,596

* Includes the value of shares redeemed through in-kind transactions. See Note 7 of the Notes to Financial Statements.

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 1,222,097	$ -	$ 1,222,097	$ -
U.S. Government and Government Agency Obligations	2,376,132	-	2,376,132	-
U.S. Government Agency - Mortgage Securities	1,437,874	-	1,437,874	-
Asset-Backed Securities	94,891	-	85,734	9,157
Collateralized Mortgage Obligations	85,150	-	80,723	4,427
Commercial Mortgage Securities	432,980	-	400,061	32,919
Municipal Securities	19,625	-	19,625	-
Supranational Obligations	438	-	438	-
Fixed-Income Funds	832,596	832,596	-	-
Preferred Securities	2,856	-	2,856	-
Cash Equivalents	179,341	-	179,341	-
Total Investments in Securities:	$ 6,683,980	$ 832,596	$ 5,804,881	$ 46,503
Derivative Instruments:
Assets
Swap Agreements	$ 1,021	$ -	$ 1,021	$ -
Liabilities
Swap Agreements	$ (57,361)	$ -	$ (56,699)	$ (662)
Total Derivative Instruments:	$ (56,340)	$ -	$ (55,678)	$ (662)
Other Financial Instruments:
Forward Committments	$ (1,724)	$ -	$ (1,724)	$ -

The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 68,258
Total Realized Gain (Loss)	429
Total Unrealized Gain (Loss)	9,310
Cost of Purchases	5,564
Proceeds of Sales	(11,331)
Amortization/Accretion	(38)
Transfers in to Level 3	6,477
Transfers out of Level 3	(32,166)
Ending Balance	$ 46,503
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 8,436
Derivative Instruments:
Swap Agreements
Beginning Balance	$ (1,687)
Total Unrealized Gain (Loss)	128
Transfers in to Level 3	-
Transfers out of Level 3	897
Ending Balance	$ (662)
Realized gain (loss) on Swap Agreements for the period	$ 37
The change in unrealized gain (loss) for the period attributable to Level 3 Swap Agreements held at February 28, 2011	$ 128

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and Derivative Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, and includes the value of securities received or delivered through affiliated in-kind transactions. See Note 7 of the Notes to Financial Statements. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by risk exposure as of February 28, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Risk Exposure / Derivative Type	Value (Amounts in thousands)
	Asset	Liability
Credit Risk
Swap Agreements (a)	$ 1,021	$ (55,085)
Interest Rate Risk
Swap Agreements (a)	-	(2,276)
Total Value of Derivatives	$ 1,021	$ (57,361)

(a) Value is disclosed on the Statement of Assets and Liabilities in the Unrealized Appreciation and Unrealized Depreciation on Swap Agreements line-items.

Income Tax Information

At August 31, 2010, the Fund had a capital loss carryforward of approximately $488,600,000 of which $1,000, $107,986,000, $17,287,000, $179,146,000 and $184,180,000 will expire in fiscal 2013, 2014, 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $179,341) - See accompanying schedule: Unaffiliated issuers (cost $5,667,117)	$ 5,851,384
Fidelity Central Funds (cost $799,069)	832,596
Total Investments (cost $6,466,186)		$ 6,683,980
Commitment to sell securities on a delayed delivery basis	(457,624)
Receivable for securities sold on a delayed delivery basis	455,900	(1,724)
Receivable for investments sold, regular delivery in Sub-Fund		44,252
Cash		375
Receivable for fund shares sold		6,447
Interest receivable		32,486
Unrealized appreciation on swap agreements		1,021
Other receivables		121
Total assets		6,766,958
Liabilities
Payable for investments purchased Regular delivery	$ 8,313
Delayed delivery	756,187
Payable for swap agreements	939
Payable for fund shares redeemed	11,447
Distributions payable	953
Unrealized depreciation on swap agreements	57,361
Accrued management fee	1,547
Distribution and service plan fees payable	75
Other affiliated payables	683
Other payables and accrued expenses	121
Total liabilities		837,626
Net Assets		$ 5,929,332
Net Assets consist of:
Paid in capital		$ 6,236,606
Undistributed net investment income		17,045
Accumulated undistributed net realized gain (loss) on investments		(489,856)
Net unrealized appreciation (depreciation) on investments		165,537
Net Assets		$ 5,929,332

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($161,536 ÷ 21,782.1 shares)		$ 7.42
Maximum offering price per share (100/96.00 of $7.42)		$ 7.73
Class T: Net Asset Value and redemption price per share ($46,994 ÷ 6,333.7 shares)		$ 7.42
Maximum offering price per share (100/96.00 of $7.42)		$ 7.73
Class B: Net Asset Value and offering price per share ($9,817 ÷ 1,322.2 shares)A		$ 7.42
Class C: Net Asset Value and offering price per share ($28,477 ÷ 3,835.0 shares)A		$ 7.43
Investment Grade Bond: Net Asset Value, offering price and redemption price per share ($5,657,440 ÷ 762,359.7 shares)		$ 7.42
Institutional Class: Net Asset Value, offering price and redemption price per share ($25,068 ÷ 3,374.7 shares)		$ 7.43

^A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

Semiannual Report

Statement of Operations

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 110
Interest		109,131
Income from Fidelity Central Funds		18,477
Total income		127,718
Expenses
Management fee	$ 11,582
Transfer agent fees	3,783
Distribution and service plan fees	483
Fund wide operations fee	1,244
Independent trustees' compensation	15
Miscellaneous	15
Total expenses before reductions	17,122
Expense reduction	-	17,122
Net investment income (loss)		110,596
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	55,032
Fidelity Central Funds	10,615
Redemption in-kind with affiliated entities	65,117
Swap agreements	18,598
Total net realized gain (loss)		149,362
Change in net unrealized appreciation (depreciation) on: Investment securities	(207,913)
Swap agreements	(120)
Delayed delivery commitments	(2,124)
Total change in net unrealized appreciation (depreciation)		(210,157)
Net gain (loss)		(60,795)
Net increase (decrease) in net assets resulting from operations		$ 49,801

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 110,596	$ 261,967
Net realized gain (loss)	149,362	175,333
Change in net unrealized appreciation (depreciation)	(210,157)	359,702
Net increase (decrease) in net assets resulting from operations	49,801	797,002
Distributions to shareholders from net investment income	(109,470)	(247,482)
Share transactions - net increase (decrease)	(1,659,246)	891,216
Total increase (decrease) in net assets	(1,718,915)	1,440,736
Net Assets
Beginning of period	7,648,247	6,207,511
End of period (including undistributed net investment income of $17,045 and undistributed net investment income of $15,919, respectively)	$ 5,929,332	$ 7,648,247

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.89	$ 6.89	$ 7.18	$ 7.35	$ 7.24	$ 7.50
Income from Investment Operations
Net investment income (loss)E	.100	.254	.303	.331	.353	.118	.298
Net realized and unrealized gain (loss)	(.051)	.566	.007H	(.303)	(.161)	.092	(.206)
Total from investment operations	.049	.820	.310	.028	.192	.210	.092
Distributions from net investment income	(.099)	(.240)	(.310)	(.311)	(.352)	(.100)	(.282)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.099)	(.240)	(.310)	(.318)	(.362)	(.100)	(.352)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.89	$ 6.89	$ 7.18	$ 7.35	$ 7.24
Total ReturnB,C,D	.66%	12.10%	4.89%	.36%	2.61%	2.92%	1.23%
Ratios to Average Net AssetsF,I
Expenses before reductions	.78%A	.77%	.79%	.80%	.75%	.71%A	.71%
Expenses net of fee waivers, if any	.78%A	.77%	.79%	.80%	.75%	.71%A	.71%
Expenses net of all reductions	.78%A	.77%	.79%	.80%	.74%	.71%A	.71%
Net investment income (loss)	2.72%A	3.55%	4.67%	4.67%	4.83%	4.86%A	4.04%
Supplemental Data
Net assets, end of period (in millions)	$ 162	$ 173	$ 145	$ 79	$ 79	$ 46	$ 37
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.90	$ 6.89	$ 7.18	$ 7.35	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.099	.252	.302	.332	.350	.116	.290
Net realized and unrealized gain (loss)	(.051)	.555	.016H	(.303)	(.163)	.091	(.216)
Total from investment operations	.048	.807	.318	.029	.187	.207	.074
Distributions from net investment income	(.098)	(.237)	(.308)	(.312)	(.347)	(.097)	(.274)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.098)	(.237)	(.308)	(.319)	(.357)	(.097)	(.344)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.90	$ 6.89	$ 7.18	$ 7.35	$ 7.24
Total ReturnB,C,D	.65%	11.90%	5.02%	.36%	2.54%	2.89%	.98%
Ratios to Average Net AssetsF,I
Expenses before reductions	.81%A	.80%	.82%	.80%	.80%	.82%A	.83%
Expenses net of fee waivers, if any	.81%A	.80%	.82%	.80%	.80%	.82%A	.83%
Expenses net of all reductions	.81%A	.80%	.82%	.79%	.79%	.81%A	.83%
Net investment income (loss)	2.69%A	3.51%	4.65%	4.67%	4.77%	4.76%A	3.92%
Supplemental Data
Net assets, end of period (in millions)	$ 47	$ 53	$ 46	$ 53	$ 68	$ 59	$ 57
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class B

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.89	$ 7.19	$ 7.36	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.073	.201	.257	.281	.299	.099	.239
Net realized and unrealized gain (loss)	(.061)	.566	.016H	(.313)	(.164)	.102	(.216)
Total from investment operations	.012	.767	.273	(.032)	.135	.201	.023
Distributions from net investment income	(.072)	(.187)	(.263)	(.261)	(.295)	(.081)	(.223)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.072)	(.187)	(.263)	(.268)	(.305)	(.081)	(.293)
Net asset value, end of period	$ 7.42	$ 7.48	$ 6.90	$ 6.89	$ 7.19	$ 7.36	$ 7.24
Total ReturnB,C,D	.16%	11.26%	4.29%	(.49)%	1.83%	2.79%	.28%
Ratios to Average Net AssetsF,I
Expenses before reductions	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Expenses net of fee waivers, if any	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Expenses net of all reductions	1.52%A	1.51%	1.51%	1.50%	1.50%	1.50%A	1.51%
Net investment income (loss)	1.98%A	2.81%	3.95%	3.96%	4.07%	4.07%A	3.24%
Supplemental Data
Net assets, end of period (in millions)	$ 10	$ 12	$ 11	$ 9	$ 10	$ 9	$ 9
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006M	2006K
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.24	$ 7.51
Income from Investment Operations
Net investment income (loss)E	.072	.200	.255	.278	.294	.097	.233
Net realized and unrealized gain (loss)	(.051)	.566	.005H	(.304)	(.163)	.102	(.216)
Total from investment operations	.021	.766	.260	(.026)	.131	.199	.017
Distributions from net investment income	(.071)	(.186)	(.260)	(.257)	(.291)	(.079)	(.217)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.071)	(.186)	(.260)	(.264)	(.301)	(.079)	(.287)
Net asset value, end of period	$ 7.43	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.24
Total ReturnB,C,D	.28%	11.24%	4.09%	(.40)%	1.77%	2.76%	.20%
Ratios to Average Net AssetsF,I
Expenses before reductions	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Expenses net of fee waivers, if any	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Expenses net of all reductions	1.54%A	1.52%	1.55%	1.55%	1.55%	1.58%A	1.60%
Net investment income (loss)	1.96%A	2.79%	3.91%	3.91%	4.02%	3.99%A	3.15%
Supplemental Data
Net assets, end of period (in millions)	$ 28	$ 35	$ 27	$ 14	$ 17	$ 10	$ 9
Portfolio turnover rateG	263%A,N	174%L	119%J,L	231%	181%L	206%A,J	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J The portfolio turnover rate does not include the assets acquired in the merger. K For the period ended April 30. L The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. M For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. N Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Investment Grade Bond

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006L	2006J
Selected Per-Share Data
Net asset value, beginning of period	$ 7.47	$ 6.90	$ 6.89	$ 7.19	$ 7.35	$ 7.24	$ 7.50
Income from Investment Operations
Net investment income (loss)D	.113	.277	.326	.356	.376	.124	.317
Net realized and unrealized gain (loss)	(.052)	.556	.015G	(.313)	(.153)	.092	(.206)
Total from investment operations	.061	.833	.341	.043	.223	.216	.111
Distributions from net investment income	(.111)	(.263)	(.331)	(.336)	(.373)	(.106)	(.301)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.111)	(.263)	(.331)	(.343)	(.383)	(.106)	(.371)
Net asset value, end of period	$ 7.42	$ 7.47	$ 6.90	$ 6.89	$ 7.19	$ 7.35	$ 7.24
Total ReturnB,C	.82%	12.29%	5.39%	.57%	3.05%	3.01%	1.48%
Ratios to Average Net AssetsE,H
Expenses before reductions	.45%A	.45%	.46%	.45%	.45%	.45%A	.46%
Expenses net of fee waivers, if any	.45%A	.45%	.46%	.45%	.45%	.45%A	.46%
Expenses net of all reductions	.45%A	.45%	.46%	.44%	.44%	.45%A	.46%
Net investment income (loss)	3.04%A	3.86%	5.00%	5.02%	5.13%	5.12%A	4.29%
Supplemental Data
Net assets, end of period (in millions)	$ 5,657	$ 7,345	$ 5,951	$ 9,814	$ 11,739	$ 10,141	$ 8,018
Portfolio turnover rateF	263%A,M	174%K	119%I,K	231%	181%K	206%A,I	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J For the period ended April 30. K The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. L For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. M Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006L	2006J
Selected Per-Share Data
Net asset value, beginning of period	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.25	$ 7.51
Income from Investment Operations
Net investment income (loss)D	.111	.274	.322	.353	.374	.124	.313
Net realized and unrealized gain (loss)	(.051)	.565	.005G	(.303)	(.163)	.091	(.205)
Total from investment operations	.060	.839	.327	.050	.211	.215	.108
Distributions from net investment income	(.110)	(.259)	(.327)	(.333)	(.371)	(.105)	(.298)
Distributions from net realized gain	-	-	-	(.007)	(.010)	-	(.070)
Total distributions	(.110)	(.259)	(.327)	(.340)	(.381)	(.105)	(.368)
Net asset value, end of period	$ 7.43	$ 7.48	$ 6.90	$ 6.90	$ 7.19	$ 7.36	$ 7.25
Total ReturnB,C	.80%	12.38%	5.16%	.66%	2.88%	2.99%	1.44%
Ratios to Average Net AssetsE,H
Expenses before reductions	.49%A	.50%	.53%	.50%	.48%	.49% A	.50%
Expenses net of fee waivers, if any	.49%A	.50%	.53%	.50%	.48%	.49% A	.50%
Expenses net of all reductions	.49%A	.50%	.53%	.49%	.47%	.49% A	.50%
Net investment income (loss)	3.01%A	3.82%	4.94%	4.97%	5.10%	5.07% A	4.25%
Supplemental Data
Net assets, end of period (in millions)	$ 25	$ 30	$ 27	$ 34	$ 41	$ 29	$ 26
Portfolio turnover rateF	263%A,M	174%K	119%I,K	231%	181%K	206%A,I	145%
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J For the period ended April 30. K The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. L For the four month period ended August 31. The fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006. M Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Investment Grade Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Investment Grade Bond and Institutional Class shares, each of which, along with Class B, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The following summarizes the Fund's investment in each Fidelity Central Fund.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Investments in Fidelity Central Funds - continued

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity Mortgage Backed Securities Central Fund	Fidelity Investment Money Management, Inc. (FIMM)	Seeks a high level of income by normally investing in investment-grade mortgage-related securities and repurchase agreements for those securities.	Delayed Delivery & When Issued Securities Futures Repurchase Agreements Swap Agreements
Fidelity Specialized High Income Central Fund	FMR Co., Inc. (FMRC)	Seeks a high level of current income by normally investing in income-producing debt securities, with an emphasis on lower-quality debt securities.	Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities

An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including security valuation policies) of those funds, are available on the SEC web site or upon request.

3. 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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and

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3. Significant Accounting Policies - continued

Security Valuation - continued

they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011 for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, municipal securities, preferred securities, supranational obligations and U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

Swaps are marked-to-market daily based on valuations from independent pricing services or dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Pricing services utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates and, as a result, swaps are generally categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The principal value on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal value. The adjustments to principal due to inflation are reflected as increases or decreases to interest income even though principal is not received until maturity. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

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3. Significant Accounting Policies - continued

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, financing transactions, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 213,117
Gross unrealized depreciation	(76,670)
Net unrealized appreciation (depreciation) on securities and other investments	$ 136,447
Tax cost	$ 6,547,533

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

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5. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including swap agreements, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risks:

Credit Risk	Credit risk relates to the ability of the issuer to a financial instrument to make further principal or interest payments on an obligation or commitment that it has entered into with the Fund.
Interest Rate Risk	Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain over-the-counter derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the counterparty. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk, the Fund offsets certain payables and/or receivables with collateral. Collateral in the form of cash or securities, if required, is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the swap counterparty and the Fund's custodian bank, and is identified in the Schedule of Investments. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Derivative Instruments - continued

Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period.

Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Credit Risk
Swap Agreements	$ (5,302)	$ 6,319
Interest Rate Risk
Swap Agreements	23,900	(6,439)
Totals (a)	$ 18,598	$ (120)

(a) A summary of the value of derivatives by risk exposure as of period end is included at the end of the Schedule of Investments and is representative of activity for the period.

Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.

Details of swaps open at period end, are included in the Schedule of Investments under the caption "Swap Agreements." Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation or (depreciation) and reflected in the Statement of Assets and Liabilities. Any upfront payments made or received upon entering a swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded as realized gain or (loss) ratably over the term of the swap. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

Risks of loss include credit risk and interest rate risk. In addition, there is the risk of failure by the counterparty to perform under the terms of the agreement and lack of liquidity in the market.

Interest Rate Swaps. Interest rate swaps are agreements between counterparties to exchange cash flows, one based on a fixed rate, and the other on a floating rate. The Fund entered into interest rate swaps to manage its exposure to interest rate changes. Changes in interest rates can have an effect on both the value of bond holdings as well as the amount of interest income earned. In general, the value of bonds can fall when interest rates rise and can rise when interest rates fall.

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5. Derivative Instruments - continued

Credit Default Swaps. Credit default swaps enable the Fund to buy or sell protection on a debt security or a basket of securities against a defined credit event. Under the terms of a credit default swap the buyer of protection (buyer) receives credit protection in exchange for making periodic payments to the seller of protection (seller) based on a fixed percentage applied to a notional principal amount. In return for these payments, the seller acts as a guarantor of the creditworthiness of a reference obligation. The Fund entered into credit default swaps as a seller to gain credit exposure to an issuer and/or as a buyer to provide a measure of protection against defaults of an issuer. The issuer may be either a single issuer or a "basket" of issuers. Periodic payments are made over the life of the contract provided that no credit event occurs.

For credit default swaps on most corporate and sovereign issuers, credit events include bankruptcy, failure to pay, obligation acceleration or repudiation/moratorium. For credit default swaps on corporate or sovereign issuers, the obligation that may be put to the seller is not limited to the specific reference obligation described in the Schedule of Investments. For credit default swaps on asset-backed securities, a credit event may be triggered by events such as failure to pay principal, maturity extension, rating downgrade or write-down. For credit default swaps on asset-backed securities, the reference obligation described represents the security that may be put to the seller.

As a seller, if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the reference obligation or underlying securities comprising an index or pay a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

As a buyer, if an underlying credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the reference obligation or underlying securities comprising an index or receive a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

Typically, the value of each credit default swap and credit rating disclosed for each reference obligation in the Schedule of Investments, where the Fund is the seller, can be used as measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. Any current or future declines in the value of the swap may be partially offset by upfront payments received by the Fund as the seller, if applicable. In addition to these measures, FMR monitors a variety of factors including cash flow assumptions, market activity and market sentiment as part of its ongoing process of assessing payment/performance risk.

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Derivative Instruments - continued

Credit Default Swaps - continued

The notional amount of credit default swaps is included in the Schedule of Investments and approximates the maximum potential amount of future payments that the Fund could be required to make if the Fund is the seller and a credit event were to occur. The total notional amount of all credit default swaps open at period end where the Fund is the seller amounted to $73,597 representing 1.2% of net assets.

6. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, U.S. government securities and in-kind transactions, aggregated $499,033 and $618,621, respectively.

7. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .32% of the Fund's average net assets.

In addition, under the expense contract, FMR pays all class-level expenses for Investment Grade Bond, so that the total expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense, including commitment fees do not exceed .45% of the Class' average net assets. This agreement does not apply to any of the other classes and any change or modification that would increase expenses can only be made with shareholder approval.

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,

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7. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan Fees - continued

the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$ 209	$ 6
Class T	-%	.25%	62	2
Class B	.65%	.25%	49	36
Class C	.75%	.25%	163	32
			$ 483	$ 76

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

	Retained by FDC
Class A	$ 10
Class T	3
Class B*	15
Class C*	2
	$ 30

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Investment Grade Bond. FIIOC receives an asset-based fee of .10% of Investment Grade Bond's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

7. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

	Amount	% of Average Net Assets*
Class A	$ 146	.18
Class T	49	.20
Class B	14	.26
Class C	29	.18
Investment Grade Bond	3,526	.10
Institutional Class	19	.14
	$ 3,783

* Annualized

Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, Rule 12b-1 fees, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.

Redemption In-Kind. During the period, 203,418 shares of the Fund held by an affiliated entity were redeemed in kind for cash and securities, including accrued interest, with a value of $1,507,329. The net realized gain (loss) of $65,117 on securities delivered through the in-kind redemption is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 12: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.

8. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

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9. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $24.

10. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by four hundred and six dollars.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010
From net investment income
Class A	$ 2,237	$ 5,063
Class T	653	1,546
Class B	106	292
Class C	314	783
Investment Grade Bond	105,747	238,838
Institutional Class	413	960
Total	$ 109,470	$ 247,482

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010	Six months ended February 28, 2011	Year ended August 31, 2010
Class A
Shares sold	4,060	9,628	$ 30,120	$ 69,206
Reinvestment of distributions	180	439	1,336	3,155
Shares redeemed	(5,605)	(7,903)	(41,552)	(56,412)
Net increase (decrease)	(1,365)	2,164	$ (10,096)	$ 15,949
Class T
Shares sold	1,143	2,791	$ 8,473	$ 20,026
Reinvestment of distributions	80	197	592	1,416
Shares redeemed	(1,962)	(2,638)	(14,577)	(18,750)
Net increase (decrease)	(739)	350	$ (5,512)	$ 2,692
Class B
Shares sold	117	693	$ 864	$ 4,986
Reinvestment of distributions	10	31	76	222
Shares redeemed	(396)	(735)	(2,934)	(5,261)
Net increase (decrease)	(269)	(11)	$ (1,994)	$ (53)
Class C
Shares sold	408	2,029	$ 3,035	$ 14,572
Reinvestment of distributions	34	82	251	591
Shares redeemed	(1,288)	(1,356)	(9,550)	(9,700)
Net increase (decrease)	(846)	755	$ (6,264)	$ 5,463
Investment Grade Bond
Shares sold	244,542	332,220	$ 1,821,352	$ 2,382,429
Reinvestment of distributions	13,019	31,428	96,972	225,823
Shares redeemed	(477,830) A	(243,762)	(3,548,482) A	(1,742,304)
Net increase (decrease)	(220,269)	119,886	$ (1,630,158)	$ 865,948
Institutional Class
Shares sold	761	2,015	$ 5,672	$ 14,647
Reinvestment of distributions	47	111	353	796
Shares redeemed	(1,505)	(1,978)	(11,247)	(14,226)
Net increase (decrease)	(697)	148	$ (5,222)	$ 1,217

^A Amount includes in-kind redemptions (See Note 7: Redemptions in-kind).

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13. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

14. Credit Risk.

The Fund invests a portion of its assets in structured securities of issuers backed by residential mortgage loans, credit card receivables and automotive loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults.

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Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Investment Grade Bond Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the cumulative total returns of the retail class and Class C of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Investment Grade Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the first quartile for the one-year period, the fourth quartile for the three-year period, and the third quartile for the five-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the one-year cumulative total return of the retail class compared favorably to its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board also reviewed the fund's performance since inception as well as performance in the current year.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Semiannual Report

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 9% means that 91% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Fidelity Investment Grade Bond Fund

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2005) to the fund's management contract that lowered the fund's individual fund fee rate from 30 basis points to 20 basis points. The Board considered that the chart reflects the fund's lower management fee for 2005, as if the lower rate were in effect for the entire year.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board also considered that the current contractual arrangements for the fund (i) have the effect of setting the total "fund-level" expenses (including, among certain other expenses, the management fee) for each class at 35 basis points, (ii) lower and limit the "class-level" transfer agent fee for the retail class to 10 basis points, and (iii) limit the total expenses for the retail class to 45 basis points. The fees and expenses payable under these contractual arrangements may not be increased without the approval of the Board and the shareholders of the applicable class. The fund's Advisor classes are subject to different "class-level" expenses (transfer agent fees and 12b-1 fees).

The Board noted that the total expenses of each class ranked below its competitive median for 2009.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses for each class at 35 basis points, increases or decreases in the management fee due to changes in the group fee rate will not impact total expenses.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Semiannual Report

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

AIGBI-USAN-0411
1.784860.107

Fidelity®
Series Investment Grade Bond
Fund

Fidelity Series Investment Grade Bond Fund
Class F

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of the major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the Financial Statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity Series Investment Grade Bond Fund or 1-800-835-5092 for Class F to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http:www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Series Investment Grade Bond	.45%
Actual		$ 1,000.00	$ 999.20	$ 2.23
HypotheticalA		$ 1,000.00	$ 1,022.56	$ 2.26
Class F	.35%
Actual		$ 1,000.00	$ 999.70	$ 1.74
HypotheticalA		$ 1,000.00	$ 1,023.06	$ 1.76

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each class' annualized expense ratio.

Semiannual Report

Investment Changes (Unaudited)

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of its investments in each non-money market Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations†† 71.3%		U.S. Government and U.S. Government Agency Obligations†† 72.5%
	AAA 6.3%		AAA 6.9%
	AA 3.5%		AA 3.3%
	A 7.0%		A 8.2%
	BBB 11.3%		BBB 12.7%
	BB and Below 2.9%		BB and Below 3.3%
	Not Rated 0.3%		Not Rated 0.2%
	Equities 0.0%		Equities 0.1%
	Short-Term Investments and Net Other Assets† (2.6)%		Short-Term Investments and Net Other Assets† (7.2)%

We have used ratings from Moody's Investors Service, Inc. Where Moody's ratings are not available, we have used S&P ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	6.3	6.2

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	4.9	4.4

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011*			As of August 31, 2010**
	Corporate Bonds 21.3%			Corporate Bonds 24.4%
	U.S. Government and U.S. Government Agency Obligations†† 71.3%			U.S. Government and U.S. Government Agency Obligations†† 72.5%
	Asset-Backed Securities 2.9%			Asset-Backed Securities 3.0%
	CMOs and Other Mortgage Related Securities 6.7%			CMOs and Other Mortgage Related Securities 6.8%
	Municipal Bonds 0.3%			Municipal Bonds 0.3%
	Other Investments 0.1%			Other Investments 0.2%
	Short-Term Investments and Net Other Assets† (2.6)%			Short-Term Investments and Net Other Assets† (7.2)%
* Foreign investments		2.2%	** Foreign investments		3.0%
* Futures and Swaps		1.5%	** Futures and Swaps		1.8%

^† Short-Term Investments and Net Other Assets are not included in the pie chart.

^†† Includes FDIC Guaranteed Corporate Securities.

A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 20.4%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 1.9%
Auto Components - 0.0%
DaimlerChrysler NA Holding Corp.:
5.75% 9/8/11	$ 7,807,000		$ 8,010,989
5.875% 3/15/11	4,639,000		4,647,114
			12,658,103
Diversified Consumer Services - 0.1%
Cornell University 5.45% 2/1/19	5,740,000		6,410,202
Trustees of Princeton Univ. 5.7% 3/1/39	8,900,000		9,719,512
			16,129,714
Household Durables - 0.3%
Fortune Brands, Inc.:
3% 6/1/12	4,835,000		4,891,961
5.375% 1/15/16	9,254,000		9,735,939
5.875% 1/15/36	8,773,000		7,757,376
6.375% 6/15/14	24,690,000		27,103,077
Whirlpool Corp.:
6.125% 6/15/11	2,381,000		2,416,489
6.5% 6/15/16	1,327,000		1,479,257
			53,384,099
Media - 1.5%
Comcast Corp.:
4.95% 6/15/16	9,131,000		9,753,679
5.15% 3/1/20	1,226,000		1,278,144
5.5% 3/15/11	267,000		267,427
5.7% 5/15/18	12,823,000		14,016,565
5.9% 3/15/16	3,813,000		4,240,655
6.4% 3/1/40	29,536,000		30,729,934
6.45% 3/15/37	4,665,000		4,882,151
6.55% 7/1/39	10,000,000		10,600,720
COX Communications, Inc. 4.625% 6/1/13	3,122,000		3,333,856
Discovery Communications LLC:
3.7% 6/1/15	11,423,000		11,840,648
5.05% 6/1/20	278,000		291,370
6.35% 6/1/40	10,151,000		10,680,283
Liberty Media Corp. 8.25% 2/1/30	4,149,000		4,024,530
NBC Universal, Inc.:
3.65% 4/30/15 (f)	6,432,000		6,573,877
5.15% 4/30/20 (f)	28,753,000		29,618,782
6.4% 4/30/40 (f)	13,528,000		14,133,432
News America Holdings, Inc. 7.75% 12/1/45	2,466,000		2,971,239
Nonconvertible Bonds - continued
	Principal Amount		Value
CONSUMER DISCRETIONARY - continued
Media - continued
News America, Inc.:
6.15% 3/1/37	$ 5,610,000		$ 5,683,003
6.15% 2/15/41 (f)	15,000,000		15,246,870
6.2% 12/15/34	7,989,000		8,238,425
Time Warner Cable, Inc.:
5.4% 7/2/12	3,410,000		3,597,588
5.85% 5/1/17	17,523,000		19,293,752
6.2% 7/1/13	3,242,000		3,579,139
6.75% 7/1/18	23,280,000		26,723,601
Time Warner, Inc.:
3.15% 7/15/15	12,747,000		12,943,087
4.875% 3/15/20	1,870,000		1,919,037
5.875% 11/15/16	4,039,000		4,518,837
6.2% 3/15/40	15,555,000		15,848,258
6.5% 11/15/36	6,573,000		6,919,167
Viacom, Inc.:
4.375% 9/15/14	796,000		851,347
6.125% 10/5/17	7,650,000		8,652,609
6.25% 4/30/16	6,675,000		7,658,575
6.75% 10/5/37	3,475,000		3,848,177
			304,758,764
Specialty Retail - 0.0%
Staples, Inc. 7.375% 10/1/12	1,561,000		1,697,260
TOTAL CONSUMER DISCRETIONARY			388,627,940
CONSUMER STAPLES - 1.2%
Beverages - 0.3%
Anheuser-Busch InBev Worldwide, Inc.:
2.5% 3/26/13	391,000		399,325
5.375% 11/15/14 (f)	12,487,000		13,797,523
7.2% 1/15/14 (f)	8,300,000		9,501,234
7.75% 1/15/19 (f)	14,500,000		17,966,515
Bottling Group LLC 6.95% 3/15/14	2,000,000		2,309,020
Diageo Capital PLC 5.2% 1/30/13	1,963,000		2,110,243
FBG Finance Ltd. 5.125% 6/15/15 (f)	11,614,000		12,342,372
PepsiCo, Inc. 7.9% 11/1/18	1,047,000		1,327,310
The Coca-Cola Co. 3.15% 11/15/20	2,453,000		2,286,633
			62,040,175
Nonconvertible Bonds - continued
	Principal Amount		Value
CONSUMER STAPLES - continued
Food & Staples Retailing - 0.0%
CVS Caremark Corp. 6.302% 6/1/37 (i)	$ 2,287,000		$ 2,252,695
Food Products - 0.4%
Cargill, Inc. 6% 11/27/17 (f)	2,169,000		2,437,516
General Mills, Inc. 5.2% 3/17/15	2,184,000		2,397,718
Kraft Foods, Inc.:
5.375% 2/10/20	14,630,000		15,551,836
5.625% 11/1/11	908,000		936,788
6.125% 2/1/18	11,078,000		12,448,072
6.25% 6/1/12	2,162,000		2,297,666
6.5% 8/11/17	28,164,000		32,353,170
6.75% 2/19/14	1,258,000		1,428,333
			69,851,099
Tobacco - 0.5%
Altria Group, Inc.:
8.5% 11/10/13	920,000		1,083,928
9.25% 8/6/19	4,577,000		5,941,230
9.7% 11/10/18	43,684,000		57,508,850
Philip Morris International, Inc.:
4.875% 5/16/13	3,627,000		3,904,712
5.65% 5/16/18	2,251,000		2,530,086
Reynolds American, Inc.:
6.75% 6/15/17	10,391,000		11,697,886
7.25% 6/15/37	17,814,000		18,900,440
			101,567,132
TOTAL CONSUMER STAPLES			235,711,101
ENERGY - 2.5%
Energy Equipment & Services - 0.2%
DCP Midstream LLC:
5.35% 3/15/20 (f)	11,804,000		12,233,087
6.75% 9/15/37 (f)	2,991,000		3,219,695
El Paso Pipeline Partners Operating Co. LLC:
4.1% 11/15/15	17,654,000		17,968,277
6.5% 4/1/20	2,078,000		2,292,275
Noble Holding International Ltd. 3.45% 8/1/15	1,779,000		1,816,765
Nonconvertible Bonds - continued
	Principal Amount		Value
ENERGY - continued
Energy Equipment & Services - continued
Weatherford International Ltd.:
4.95% 10/15/13	$ 2,431,000		$ 2,583,783
5.15% 3/15/13	7,716,000		8,151,753
			48,265,635
Oil, Gas & Consumable Fuels - 2.3%
Anadarko Petroleum Corp.:
5.95% 9/15/16	1,367,000		1,499,445
6.375% 9/15/17	24,155,000		26,923,018
Apache Corp. 5.1% 9/1/40	13,235,000		12,285,018
BW Group Ltd. 6.625% 6/28/17 (f)	4,126,000		4,166,323
Canadian Natural Resources Ltd.:
5.15% 2/1/13	6,276,000		6,702,454
5.7% 5/15/17	4,557,000		5,091,509
Cenovus Energy, Inc. 4.5% 9/15/14	1,234,000		1,329,357
ConocoPhillips:
4.4% 5/15/13	20,500,000		21,857,654
5.75% 2/1/19	12,956,000		14,677,192
Delek & Avner-Yam Tethys Ltd. 5.326% 8/1/13 (f)	148,207		148,635
Duke Capital LLC 6.25% 2/15/13	699,000		759,572
Duke Energy Field Services:
5.375% 10/15/15 (f)	1,706,000		1,831,197
6.45% 11/3/36 (f)	7,882,000		8,029,590
El Paso Natural Gas Co. 5.95% 4/15/17	1,304,000		1,420,914
EnCana Corp.:
4.75% 10/15/13	930,000		1,010,060
6.3% 11/1/11	2,412,000		2,501,251
EnCana Holdings Finance Corp. 5.8% 5/1/14	4,029,000		4,479,366
Enterprise Products Operating LP:
5.6% 10/15/14	1,361,000		1,509,273
5.65% 4/1/13	487,000		525,860
Gulf South Pipeline Co. LP 5.75% 8/15/12 (f)	5,389,000		5,685,174
Gulfstream Natural Gas System LLC 6.95% 6/1/16 (f)	9,551,000		11,026,056
Marathon Petroleum Corp. 5.125% 3/1/21 (f)	20,728,000		21,008,968
Midcontinent Express Pipeline LLC 5.45% 9/15/14 (f)	17,029,000		18,525,440
Motiva Enterprises LLC:
5.75% 1/15/20 (f)	6,844,000		7,528,352
6.85% 1/15/40 (f)	19,290,000		22,350,821
Nakilat, Inc. 6.067% 12/31/33 (f)	5,435,000		5,462,175
Nexen, Inc.:
5.05% 11/20/13	10,688,000		11,398,286
Nonconvertible Bonds - continued
	Principal Amount		Value
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Nexen, Inc.: - continued
5.2% 3/10/15	$ 1,267,000		$ 1,346,953
5.875% 3/10/35	4,330,000		3,939,282
6.2% 7/30/19	1,700,000		1,818,327
6.4% 5/15/37	22,414,000		21,450,422
NGPL PipeCo LLC 6.514% 12/15/12 (f)	6,869,000		7,404,500
Pemex Project Funding Master Trust 0.9034% 12/3/12 (f)(i)	4,867,000		4,842,665
Petro-Canada:
6.05% 5/15/18	2,920,000		3,312,956
6.8% 5/15/38	4,427,000		4,968,763
Petrobras International Finance Co. Ltd.:
3.875% 1/27/16	17,613,000		17,786,488
5.75% 1/20/20	30,188,000		31,324,518
6.875% 1/20/40	11,451,000		11,680,020
7.875% 3/15/19	14,377,000		16,954,077
Petroleos Mexicanos 6% 3/5/20	1,813,000		1,899,118
Plains All American Pipeline LP/PAA Finance Corp.:
3.95% 9/15/15	8,916,000		9,165,657
4.25% 9/1/12	1,368,000		1,421,637
5% 2/1/21	5,638,000		5,650,595
6.125% 1/15/17	5,000,000		5,570,245
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 3/15/14 (f)	2,916,900		3,157,544
Ras Laffan Liquefied Natural Gas Co. Ltd. III:
4.5% 9/30/12 (f)	6,678,000		6,903,449
5.5% 9/30/14 (f)	9,333,000		9,924,852
5.832% 9/30/16 (f)	1,611,313		1,716,049
6.75% 9/30/19 (f)	6,109,000		6,843,222
Rockies Express Pipeline LLC 6.25% 7/15/13 (f)	3,795,000		4,078,380
Southeast Supply Header LLC 4.85% 8/15/14 (f)	1,033,000		1,083,296
Spectra Energy Capital, LLC 5.65% 3/1/20	15,101,000		15,984,106
Suncor Energy, Inc.:
6.1% 6/1/18	9,550,000		10,865,465
6.5% 6/15/38	1,052,000		1,136,816
Talisman Energy, Inc. yankee 6.25% 2/1/38	4,604,000		4,857,611
Texas Eastern Transmission LP 6% 9/15/17 (f)	12,691,000		14,397,431
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	2,800,000		3,214,977
XTO Energy, Inc.:
4.9% 2/1/14	751,000		823,288
Nonconvertible Bonds - continued
	Principal Amount		Value
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
XTO Energy, Inc.: - continued
5% 1/31/15	$ 1,222,000		$ 1,356,055
5.65% 4/1/16	839,000		963,355
6.25% 8/1/17	4,098,000		4,796,938
			462,372,017
TOTAL ENERGY			510,637,652
FINANCIALS - 10.2%
Capital Markets - 2.1%
Bear Stearns Companies, Inc. 5.3% 10/30/15	8,920,000		9,717,591
BlackRock, Inc. 6.25% 9/15/17	6,699,000		7,655,182
Goldman Sachs Group, Inc.:
3.7% 8/1/15	17,599,000		17,849,592
5.95% 1/18/18	9,760,000		10,595,749
6% 6/15/20	47,000,000		50,356,740
6.15% 4/1/18	10,942,000		11,986,720
6.25% 2/1/41	13,223,000		13,456,518
6.75% 10/1/37	1,467,000		1,503,610
Janus Capital Group, Inc. 6.125% 9/15/11 (d)	6,169,000		6,272,140
JPMorgan Chase Capital XVII 5.85% 8/1/35	1,585,000		1,554,435
JPMorgan Chase Capital XX 6.55% 9/29/36	39,647,000		40,738,878
Lazard Group LLC:
6.85% 6/15/17	7,532,000		8,022,860
7.125% 5/15/15	8,656,000		9,525,677
Merrill Lynch & Co., Inc.:
5.45% 2/5/13	19,177,000		20,432,518
6.4% 8/28/17	7,888,000		8,667,398
6.875% 4/25/18	16,189,000		18,211,119
Morgan Stanley:
0.6031% 1/9/14 (i)	8,733,000		8,540,341
4% 7/24/15	9,059,000		9,278,762
4.75% 4/1/14	1,108,000		1,158,456
5.45% 1/9/17	10,500,000		11,072,208
5.625% 9/23/19	16,919,000		17,368,386
5.75% 1/25/21	52,000,000		53,410,812
5.95% 12/28/17	1,904,000		2,032,358
6% 5/13/14	19,250,000		21,062,869
6% 4/28/15	3,982,000		4,361,162
6.625% 4/1/18	9,869,000		10,909,045
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Capital Markets - continued
Morgan Stanley: - continued
7.3% 5/13/19	$ 22,127,000		$ 25,199,046
UBS AG Stamford Branch:
3.875% 1/15/15	20,000,000		20,540,640
5.75% 4/25/18	3,251,000		3,533,141
			425,013,953
Commercial Banks - 1.7%
Bank of America NA:
5.3% 3/15/17	18,193,000		18,959,671
6.1% 6/15/17	1,076,000		1,155,227
BB&T Capital Trust IV 6.82% 6/12/77 (i)	524,000		532,956
Credit Suisse (Guernsey) Ltd. 5.86% (i)	5,543,000		5,355,924
Credit Suisse New York Branch 6% 2/15/18	25,069,000		26,767,951
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (f)(i)	5,956,000		5,844,325
Discover Bank:
7% 4/15/20	267,000		294,458
8.7% 11/18/19	16,188,000		19,463,286
Export-Import Bank of Korea:
5.25% 2/10/14 (f)	3,328,000		3,544,422
5.5% 10/17/12	3,148,000		3,323,551
Fifth Third Bancorp:
3.625% 1/25/16	10,288,000		10,330,736
4.5% 6/1/18	2,562,000		2,498,742
8.25% 3/1/38	12,528,000		15,099,021
Fifth Third Bank 4.75% 2/1/15	2,013,000		2,109,046
Fifth Third Capital Trust IV 6.5% 4/15/67 (i)	6,571,000		6,406,725
HBOS PLC 6.75% 5/21/18 (f)	4,594,000		4,365,265
Huntington Bancshares, Inc. 7% 12/15/20	4,459,000		4,881,049
JPMorgan Chase Bank 6% 10/1/17	6,068,000		6,687,834
KeyBank NA:
5.45% 3/3/16	6,295,000		6,768,283
5.8% 7/1/14	14,023,000		15,336,955
6.95% 2/1/28	3,200,000		3,421,939
Korea Development Bank 5.75% 9/10/13	2,804,000		3,027,445
Manufacturers & Traders Trust Co. 1.8028% 4/1/13 (i)	397,000		396,266
Marshall & Ilsley Bank:
4.85% 6/16/15	7,539,000		7,912,309
5% 1/17/17	10,979,000		11,443,093
5.25% 9/4/12	5,004,000		5,242,686
PNC Funding Corp. 3.625% 2/8/15	4,133,000		4,278,725
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Commercial Banks - continued
Regions Bank:
6.45% 6/26/37	$ 18,578,000		$ 17,023,021
7.5% 5/15/18	9,871,000		10,463,260
Regions Financial Corp.:
0.4728% 6/26/12 (i)	951,000		905,284
5.75% 6/15/15	3,253,000		3,253,000
7.75% 11/10/14	8,459,000		9,029,983
U.S. Bancorp 4.2% 5/15/14	13,800,000		14,746,100
UniCredit Luxembourg Finance SA 5.584% 1/13/17 (f)(i)	3,046,000		2,917,520
Union Planters Corp. 7.75% 3/1/11	1,364,000		1,364,000
UnionBanCal Corp. 5.25% 12/16/13	925,000		995,538
Wachovia Bank NA:
4.8% 11/1/14	1,049,000		1,115,565
4.875% 2/1/15	1,893,000		2,023,377
5.85% 2/1/37	7,795,000		8,017,656
Wachovia Corp.:
4.875% 2/15/14	734,000		778,185
5.625% 10/15/16	14,742,000		16,062,352
5.75% 6/15/17	2,050,000		2,286,055
5.75% 2/1/18	4,000,000		4,447,500
Wells Fargo & Co.:
3.625% 4/15/15	15,560,000		16,119,024
3.676% 6/15/16	20,000,000		20,434,560
3.75% 10/1/14	8,062,000		8,490,471
Wells Fargo Bank NA 5.95% 8/26/36	4,694,000		4,915,585
			340,835,926
Consumer Finance - 1.0%
Capital One Financial Corp. 5.7% 9/15/11	6,468,000		6,638,755
Discover Financial Services:
6.45% 6/12/17	16,773,000		18,185,387
10.25% 7/15/19	15,329,000		19,847,284
General Electric Capital Corp.:
2.25% 11/9/15	18,930,000		18,348,395
3.5% 6/29/15	10,928,000		11,232,804
4.625% 1/7/21	42,124,000		41,860,557
5.625% 9/15/17	3,505,000		3,838,518
5.625% 5/1/18	10,000,000		10,874,800
5.875% 1/14/38	3,000,000		3,009,846
6% 8/7/19	22,000,000		24,309,560
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Consumer Finance - continued
General Electric Capital Corp.: - continued
6.375% 11/15/67 (i)	$ 10,755,000		$ 11,010,431
Household Finance Corp. 6.375% 10/15/11	3,570,000		3,693,701
HSBC Finance Corp. 5.9% 6/19/12	11,627,000		12,278,647
SLM Corp.:
0.5016% 3/15/11 (i)	542,000		541,311
0.5331% 10/25/11 (i)	10,097,000		10,014,578
0.6031% 1/27/14 (i)	918,000		866,637
5.375% 1/15/13	2,851,000		2,960,381
			199,511,592
Diversified Financial Services - 1.7%
Bank of America Corp. 5.75% 12/1/17	29,302,000		31,326,797
BP Capital Markets PLC:
3.125% 10/1/15	17,104,000		17,354,830
3.625% 5/8/14	2,002,000		2,092,008
4.5% 10/1/20	11,831,000		11,882,181
Capital One Capital V 10.25% 8/15/39	9,719,000		10,557,264
Citigroup, Inc.:
4.75% 5/19/15	40,390,000		42,649,093
5.375% 8/9/20	20,000,000		20,718,340
5.5% 4/11/13	26,194,000		28,079,968
6.125% 5/15/18	25,399,000		27,848,302
6.5% 8/19/13	20,989,000		23,132,607
General Electric Capital Corp. 5.3% 2/11/21	19,600,000		20,120,066
JPMorgan Chase & Co.:
3.4% 6/24/15	1,808,000		1,833,081
4.25% 10/15/20	30,000,000		28,904,730
4.65% 6/1/14	10,000,000		10,685,980
6% 1/15/18	10,000,000		11,122,680
6.3% 4/23/19	10,326,000		11,602,748
ORIX Corp. 5.48% 11/22/11	269,000		276,805
Prime Property Funding, Inc.:
5.125% 6/1/15 (f)	6,865,000		6,739,249
5.35% 4/15/12 (f)	1,620,000		1,645,564
5.5% 1/15/14 (f)	4,958,000		5,200,050
5.7% 4/15/17 (f)	2,366,000		2,429,267
TECO Finance, Inc.:
4% 3/15/16	9,634,000		9,795,196
5.15% 3/15/20	11,097,000		11,487,370
TransCapitalInvest Ltd. 5.67% 3/5/14 (f)	5,304,000		5,615,042
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Diversified Financial Services - continued
ZFS Finance USA Trust II 6.45% 12/15/65 (f)(i)	$ 7,307,000		$ 7,453,140
ZFS Finance USA Trust IV 5.875% 5/9/62 (f)(i)	2,103,000		2,094,630
ZFS Finance USA Trust V 6.5% 5/9/67 (f)(i)	1,824,000		1,819,440
			354,466,428
Insurance - 1.2%
Allstate Corp. 6.2% 5/16/14	7,894,000		8,891,849
Aon Corp.:
3.5% 9/30/15	6,878,000		6,904,061
5% 9/30/20	7,271,000		7,418,790
6.25% 9/30/40	4,660,000		4,825,458
Assurant, Inc. 5.625% 2/15/14	6,168,000		6,538,826
Axis Capital Holdings Ltd. 5.75% 12/1/14	5,857,000		6,318,789
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (f)(i)	11,133,000		11,411,325
Hartford Financial Services Group, Inc. 5.375% 3/15/17	546,000		569,258
Liberty Mutual Group, Inc.:
6.5% 3/15/35 (f)	830,000		765,108
6.7% 8/15/16 (f)	6,494,000		7,019,902
10.75% 6/15/88 (f)(i)	3,501,000		4,560,053
Massachusetts Mutual Life Insurance Co. 8.875% 6/1/39 (f)	6,328,000		8,517,374
MetLife, Inc.:
2.375% 2/6/14	11,504,000		11,656,094
4.75% 2/8/21	6,004,000		6,151,975
5% 6/15/15	813,000		879,415
5.875% 2/6/41	4,635,000		4,778,889
6.125% 12/1/11	1,143,000		1,190,574
6.75% 6/1/16	9,220,000		10,640,560
Metropolitan Life Global Funding I:
5.125% 4/10/13 (f)	5,256,000		5,627,962
5.125% 6/10/14 (f)	8,554,000		9,287,865
Monumental Global Funding II 5.65% 7/14/11 (f)	5,681,000		5,753,751
Monumental Global Funding III 5.5% 4/22/13 (f)	3,073,000		3,270,907
New York Life Global Funding 4.65% 5/9/13 (f)	3,983,000		4,260,165
New York Life Insurance Co. 6.75% 11/15/39 (f)	4,383,000		5,101,220
Northwestern Mutual Life Insurance Co. 6.063% 3/30/40 (f)	9,371,000		10,130,257
Pacific Life Global Funding 5.15% 4/15/13 (f)	11,018,000		11,720,860
Pacific Life Insurance Co. 9.25% 6/15/39 (f)	9,078,000		11,962,798
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Insurance - continued
Pacific LifeCorp 6% 2/10/20 (f)	$ 5,371,000		$ 5,669,875
Prudential Financial, Inc.:
3.625% 9/17/12	13,500,000		13,933,688
4.75% 9/17/15	13,500,000		14,458,068
5.15% 1/15/13	3,765,000		3,997,873
7.375% 6/15/19	3,820,000		4,538,706
8.875% 6/15/38 (i)	1,338,000		1,558,770
QBE Insurance Group Ltd. 5.647% 7/1/23 (f)(i)	901,000		843,077
Symetra Financial Corp. 6.125% 4/1/16 (f)	11,250,000		11,760,278
The Chubb Corp. 5.75% 5/15/18	1,125,000		1,260,876
Unum Group:
5.625% 9/15/20	8,528,000		8,664,243
7.125% 9/30/16	1,654,000		1,874,349
			244,713,888
Real Estate Investment Trusts - 0.7%
AvalonBay Communities, Inc.:
4.95% 3/15/13	5,057,000		5,388,051
5.375% 4/15/14	2,899,000		3,150,622
5.5% 1/15/12	4,659,000		4,831,812
6.125% 11/1/12	2,564,000		2,752,851
BRE Properties, Inc. 5.5% 3/15/17	1,861,000		2,002,583
Camden Property Trust:
5.375% 12/15/13	5,530,000		5,926,578
5.875% 11/30/12	1,067,000		1,135,420
Developers Diversified Realty Corp.:
5.25% 4/15/11	8,244,000		8,276,564
5.375% 10/15/12	7,023,000		7,273,047
7.5% 4/1/17	9,638,000		11,021,525
Duke Realty LP:
4.625% 5/15/13	1,515,000		1,571,640
5.875% 8/15/12	837,000		879,663
Equity One, Inc.:
6% 9/15/17	3,467,000		3,561,094
6.25% 12/15/14	9,619,000		10,319,109
6.25% 1/15/17	2,204,000		2,304,436
Equity Residential 5.125% 3/15/16	8,850,000		9,556,832
Federal Realty Investment Trust:
5.4% 12/1/13	3,666,000		3,953,510
5.9% 4/1/20	3,969,000		4,359,466
6% 7/15/12	5,468,000		5,790,300
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Real Estate Investment Trusts - continued
Federal Realty Investment Trust: - continued
6.2% 1/15/17	$ 1,491,000		$ 1,661,465
HRPT Properties Trust:
5.75% 11/1/15	1,821,000		1,932,913
6.25% 6/15/17	861,000		900,731
6.65% 1/15/18	3,483,000		3,713,700
UDR, Inc. 5.5% 4/1/14	17,798,000		18,845,176
United Dominion Realty Trust, Inc. 5.25% 1/15/15	1,548,000		1,622,800
Washington (REIT):
5.25% 1/15/14	907,000		956,393
5.95% 6/15/11	9,550,000		9,661,907
			133,350,188
Real Estate Management & Development - 1.4%
AMB Property LP:
5.9% 8/15/13	5,754,000		6,110,201
6.3% 6/1/13	4,012,000		4,313,690
Arden Realty LP 5.2% 9/1/11	1,869,000		1,910,679
BioMed Realty LP 6.125% 4/15/20	5,563,000		5,816,014
Brandywine Operating Partnership LP:
5.7% 5/1/17	6,890,000		7,181,426
5.75% 4/1/12	5,707,000		5,879,283
Colonial Properties Trust:
4.8% 4/1/11	351,000		351,927
5.5% 10/1/15	12,454,000		12,614,582
6.875% 8/15/12	4,824,000		5,053,415
Colonial Realty LP 6.05% 9/1/16	3,862,000		3,918,883
Digital Realty Trust LP 4.5% 7/15/15	7,544,000		7,774,628
Duke Realty LP:
5.4% 8/15/14	6,754,000		7,209,740
5.5% 3/1/16	10,207,000		10,644,258
5.625% 8/15/11	8,118,000		8,247,888
5.95% 2/15/17	9,023,000		9,666,511
6.25% 5/15/13	9,569,000		10,364,913
6.5% 1/15/18	12,019,000		13,259,205
6.75% 3/15/20	1,066,000		1,190,751
8.25% 8/15/19	5,060,000		6,096,688
ERP Operating LP:
4.75% 7/15/20	31,427,000		31,953,811
5.375% 8/1/16	4,428,000		4,865,385
5.5% 10/1/12	5,487,000		5,846,184
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Real Estate Management & Development - continued
ERP Operating LP: - continued
5.75% 6/15/17	$ 18,634,000		$ 20,509,959
6.625% 3/15/12	968,000		1,022,336
Liberty Property LP:
4.75% 10/1/20	17,245,000		17,054,357
5.125% 3/2/15	1,706,000		1,804,648
5.5% 12/15/16	4,865,000		5,270,532
6.375% 8/15/12	4,758,000		5,066,680
6.625% 10/1/17	12,549,000		14,402,788
Mack-Cali Realty LP 7.75% 8/15/19	1,973,000		2,370,297
Post Apartment Homes LP 6.3% 6/1/13	7,452,000		7,979,803
Reckson Operating Partnership LP 6% 3/31/16	1,066,000		1,120,862
Regency Centers LP:
4.95% 4/15/14	427,000		446,214
5.25% 8/1/15	1,490,000		1,591,841
5.875% 6/15/17	789,000		855,901
6.75% 1/15/12	5,098,000		5,264,547
Simon Property Group LP:
4.2% 2/1/15	5,265,000		5,546,620
5.1% 6/15/15	6,421,000		6,964,306
Tanger Properties LP:
6.125% 6/1/20	8,964,000		9,695,507
6.15% 11/15/15	9,801,000		10,574,338
			287,811,598
Thrifts & Mortgage Finance - 0.4%
Bank of America Corp.:
5.65% 5/1/18	25,896,000		27,364,666
5.875% 1/5/21	20,000,000		21,217,720
6.5% 8/1/16	11,950,000		13,411,844
First Niagara Financial Group, Inc. 6.75% 3/19/20	12,844,000		13,958,435
			75,952,665
TOTAL FINANCIALS			2,061,656,238
HEALTH CARE - 0.3%
Biotechnology - 0.0%
Celgene Corp. 2.45% 10/15/15	1,728,000		1,675,647
Nonconvertible Bonds - continued
	Principal Amount		Value
HEALTH CARE - continued
Health Care Providers & Services - 0.2%
Coventry Health Care, Inc.:
5.95% 3/15/17	$ 1,221,000		$ 1,267,566
6.3% 8/15/14	2,529,000		2,701,748
Express Scripts, Inc.:
5.25% 6/15/12	8,958,000		9,393,072
6.25% 6/15/14	3,291,000		3,673,875
Medco Health Solutions, Inc.:
2.75% 9/15/15	3,314,000		3,287,435
4.125% 9/15/20	11,062,000		10,759,841
UnitedHealth Group, Inc. 3.875% 10/15/20	1,816,000		1,745,975
WellPoint, Inc. 4.35% 8/15/20	1,841,000		1,836,725
			34,666,237
Pharmaceuticals - 0.1%
Novartis Capital Corp. 4.125% 2/10/14	2,049,000		2,195,944
Pfizer, Inc. 6.2% 3/15/19	10,000,000		11,622,187
Roche Holdings, Inc. 5% 3/1/14 (f)	4,153,000		4,544,902
Watson Pharmaceuticals, Inc. 5% 8/15/14	2,028,000		2,190,133
			20,553,166
TOTAL HEALTH CARE			56,895,050
INDUSTRIALS - 0.2%
Aerospace & Defense - 0.1%
BAE Systems Holdings, Inc.:
4.95% 6/1/14 (f)	1,610,000		1,716,949
6.375% 6/1/19 (f)	9,485,000		10,580,290
6.4% 12/15/11 (f)	1,011,000		1,055,791
			13,353,030
Airlines - 0.1%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	120,142		120,562
Continental Airlines, Inc.:
6.545% 8/2/20	1,024,567		1,081,430
6.648% 3/15/19	3,935,198		4,104,411
6.795% 2/2/20	473,818		477,371
6.82% 5/1/18	154,725		163,699
6.9% 7/2/19	1,068,974		1,138,457
Delta Air Lines, Inc. pass-thru trust certificates 6.821% 8/10/22	5,057,092		5,347,875
Nonconvertible Bonds - continued
	Principal Amount		Value
INDUSTRIALS - continued
Airlines - continued
U.S. Airways pass-thru trust certificates:
6.85% 7/30/19	$ 4,365,390		$ 4,273,717
8.36% 7/20/20	8,737,650		8,881,821
			25,589,343
Industrial Conglomerates - 0.0%
General Electric Co. 5.25% 12/6/17	8,512,000		9,324,504
Transportation Infrastructure - 0.0%
BNSF Funding Trust I 6.613% 12/15/55 (i)	2,599,000		2,702,960
TOTAL INDUSTRIALS			50,969,837
INFORMATION TECHNOLOGY - 0.1%
Electronic Equipment & Components - 0.1%
Tyco Electronics Group SA:
5.95% 1/15/14	8,642,000		9,495,786
6% 10/1/12	5,409,000		5,788,988
6.55% 10/1/17	3,075,000		3,543,073
			18,827,847
Office Electronics - 0.0%
Xerox Corp.:
4.25% 2/15/15	1,037,000		1,091,535
5.5% 5/15/12	2,235,000		2,348,069
			3,439,604
TOTAL INFORMATION TECHNOLOGY			22,267,451
MATERIALS - 0.4%
Chemicals - 0.3%
Dow Chemical Co.:
4.85% 8/15/12	17,906,000		18,853,514
7.6% 5/15/14	27,938,000		32,443,310
			51,296,824
Construction Materials - 0.0%
CRH America, Inc. 6% 9/30/16	2,557,000		2,755,152
Metals & Mining - 0.1%
Anglo American Capital PLC 9.375% 4/8/14 (f)	9,430,000		11,361,528
ArcelorMittal SA 3.75% 3/1/16	5,299,000		5,276,373
BHP Billiton Financial (USA) Ltd. 5.125% 3/29/12	1,381,000		1,446,121
Nonconvertible Bonds - continued
	Principal Amount		Value
MATERIALS - continued
Metals & Mining - continued
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (f)	$ 2,818,000		$ 3,032,526
Vale Overseas Ltd. 6.25% 1/23/17	3,240,000		3,651,898
			24,768,446
TOTAL MATERIALS			78,820,422
TELECOMMUNICATION SERVICES - 1.5%
Diversified Telecommunication Services - 1.1%
AT&T, Inc.:
2.5% 8/15/15	6,887,000		6,820,141
5.35% 9/1/40 (f)	20,000,000		18,338,320
6.3% 1/15/38	28,984,000		30,091,015
6.8% 5/15/36	7,223,000		7,937,066
BellSouth Capital Funding Corp. 7.875% 2/15/30	3,658,000		4,451,204
CenturyLink, Inc. 7.6% 9/15/39	12,718,000		13,424,536
Deutsche Telekom International Financial BV 5.875% 8/20/13	4,299,000		4,731,583
Sprint Capital Corp. 6.875% 11/15/28	4,047,000		3,647,359
Telecom Italia Capital SA:
4.95% 9/30/14	29,089,000		29,888,918
5.25% 10/1/15	4,673,000		4,751,983
6.999% 6/4/18	4,029,000		4,324,028
7.175% 6/18/19	1,468,000		1,589,368
7.2% 7/18/36	13,929,000		13,608,842
Telefonica Emisiones SAU:
5.134% 4/27/20	1,471,000		1,464,111
5.462% 2/16/21	12,361,000		12,544,536
5.855% 2/4/13	1,120,000		1,195,673
6.421% 6/20/16	753,000		836,046
Verizon Communications, Inc.:
5.25% 4/15/13	3,032,000		3,281,998
6.1% 4/15/18	23,353,000		26,289,219
6.35% 4/1/19	7,155,000		8,205,619
6.9% 4/15/38	18,370,000		20,835,787
Verizon New England, Inc. 6.5% 9/15/11	1,624,000		1,675,028
Verizon New York, Inc. 6.875% 4/1/12	3,703,000		3,927,809
			223,860,189
Wireless Telecommunication Services - 0.4%
America Movil SAB de CV 3.625% 3/30/15	2,060,000		2,118,337
Nonconvertible Bonds - continued
	Principal Amount		Value
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	$ 34,213,000		$ 36,802,103
5.875% 10/1/19	16,408,000		17,781,957
6.35% 3/15/40	5,301,000		5,406,585
Sprint Nextel Corp. 6% 12/1/16	9,496,000		9,472,260
Vodafone Group PLC:
5% 12/16/13	3,204,000		3,482,402
5.5% 6/15/11	4,818,000		4,887,254
			79,950,898
TOTAL TELECOMMUNICATION SERVICES			303,811,087
UTILITIES - 2.1%
Electric Utilities - 1.3%
Alabama Power Co. 3.375% 10/1/20	8,620,000		8,130,186
Ameren Illinois Co. 6.125% 11/15/17	289,000		321,478
AmerenUE 6.4% 6/15/17	5,870,000		6,651,385
Cleveland Electric Illuminating Co. 5.65% 12/15/13	10,449,000		11,464,852
Commonwealth Edison Co.:
1.625% 1/15/14	9,906,000		9,881,374
5.4% 12/15/11	8,566,000		8,884,073
Duquesne Light Holdings, Inc. 6.4% 9/15/20 (f)	24,012,000		24,845,408
Edison International 3.75% 9/15/17	9,811,000		9,736,230
EDP Finance BV:
4.9% 10/1/19 (f)	9,000,000		8,192,151
6% 2/2/18 (f)	11,997,000		11,785,145
Enel Finance International SA 5.7% 1/15/13 (f)	581,000		617,006
FirstEnergy Corp. 7.375% 11/15/31	17,377,000		18,943,033
FirstEnergy Solutions Corp.:
4.8% 2/15/15	3,098,000		3,258,988
6.05% 8/15/21	11,010,000		11,514,577
Florida Power Corp. 5.65% 6/15/18	2,323,000		2,630,667
Kentucky Utilities Co.:
3.25% 11/1/20 (f)	1,389,000		1,299,986
5.125% 11/1/40 (f)	9,919,000		9,615,479
LG&E and KU Energy LLC:
2.125% 11/15/15 (f)	11,341,000		10,868,783
3.75% 11/15/20 (f)	2,232,000		2,108,539
Louisville Gas & Electric Co. 5.125% 11/15/40 (f)	2,974,000		2,895,897
Mid-American Energy Co. 5.65% 7/15/12	796,000		844,555
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Electric Utilities - continued
Nevada Power Co.:
6.5% 5/15/18	$ 15,159,000		$ 17,387,979
6.5% 8/1/18	1,094,000		1,258,939
Pennsylvania Electric Co. 6.05% 9/1/17	4,822,000		5,257,836
Pepco Holdings, Inc. 2.7% 10/1/15	10,408,000		10,238,880
Progress Energy, Inc.:
4.4% 1/15/21	40,776,000		40,554,749
6% 12/1/39	13,076,000		13,719,444
7.1% 3/1/11	4,722,000		4,722,000
Public Service Co. of Colorado 6.25% 9/1/37	3,400,000		3,872,359
Sierra Pacific Power Co. 5.45% 9/1/13	2,177,000		2,370,644
Tampa Electric Co. 5.4% 5/15/21 (f)	5,806,000		6,259,820
			270,132,442
Gas Utilities - 0.0%
Southern Natural Gas Co. 5.9% 4/1/17 (f)	2,827,000		3,055,888
Independent Power Producers & Energy Traders - 0.3%
Duke Capital LLC 5.668% 8/15/14	8,362,000		9,188,659
Exelon Generation Co. LLC:
4% 10/1/20	19,101,000		17,773,786
5.35% 1/15/14	10,825,000		11,699,855
PPL Energy Supply LLC:
6.2% 5/15/16	2,207,000		2,434,615
6.3% 7/15/13	5,310,000		5,836,625
6.5% 5/1/18	6,905,000		7,644,850
			54,578,390
Multi-Utilities - 0.5%
Consolidated Edison Co. of New York, Inc. 5.7% 6/15/40	5,881,000		6,182,313
Dominion Resources, Inc.:
6.3% 9/30/66 (i)	12,205,000		11,930,388
7.5% 6/30/66 (i)	7,991,000		8,310,640
DTE Energy Co. 7.05% 6/1/11	4,051,000		4,111,218
MidAmerican Energy Holdings, Co. 5.875% 10/1/12	3,690,000		3,956,488
National Grid PLC 6.3% 8/1/16	17,348,000		19,784,457
NiSource Finance Corp.:
5.25% 9/15/17	590,000		624,611
5.4% 7/15/14	3,094,000		3,363,611
5.45% 9/15/20	1,330,000		1,385,625
6.25% 12/15/40	3,663,000		3,778,637
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Multi-Utilities - continued
NiSource Finance Corp.: - continued
6.4% 3/15/18	$ 9,293,000		$ 10,433,260
6.8% 1/15/19	6,774,000		7,802,666
Wisconsin Energy Corp. 6.25% 5/15/67 (i)	13,102,000		13,085,623
			94,749,537
TOTAL UTILITIES			422,516,257
TOTAL NONCONVERTIBLE BONDS (Cost $3,740,166,833)		4,131,913,035
U.S. Government and Government Agency Obligations - 33.9%
U.S. Government Agency Obligations - 1.7%
Fannie Mae:
0.375% 12/28/12	14,630,000		14,514,204
0.75% 2/26/13	3,978,000		3,978,107
1.25% 8/20/13	18,909,000		18,999,082
1.25% 2/27/14	14,663,000		14,637,794
2.5% 5/15/14	34,612,000		35,761,222
2.75% 3/13/14	46,642,000		48,582,727
5% 2/16/12	4,391,000		4,582,614
5% 2/13/17	12,300,000		13,818,976
5.375% 6/12/17	10,250,000		11,710,051
Federal Home Loan Bank 1.625% 3/20/13	2,970,000		3,020,644
Freddie Mac:
0.75% 3/28/13	8,570,000		8,560,899
1.125% 7/27/12	18,420,000		18,571,744
1.375% 2/25/14	29,604,000		29,646,097
1.75% 6/15/12	3,100,000		3,150,837
1.75% 9/10/15	38,164,000		37,461,019
2.125% 3/23/12	6,198,000		6,308,120
2.5% 1/7/14	9,157,000		9,447,597
2.5% 4/23/14	25,290,000		26,129,881
3.75% 3/27/19	15,000,000		15,468,330
U.S. Government and Government Agency Obligations - continued
	Principal Amount		Value
U.S. Government Agency Obligations - continued
Freddie Mac: - continued
5.25% 7/18/11	$ 13,288,000		$ 13,546,226
U.S. Department of Housing and Urban Development Government guaranteed participation certificates Series 1996-A, 7.66% 8/1/15	17,165		17,371
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			337,913,542
U.S. Treasury Inflation Protected Obligations - 4.2%
U.S. Treasury Inflation-Indexed Bonds:
2.125% 2/15/40	111,773,220		116,652,307
2.125% 2/15/41	10,998,792		11,446,249
2.5% 1/15/29	46,307,571		52,069,899
U.S. Treasury Inflation-Indexed Notes:
1.125% 1/15/21	170,181,035		172,000,368
1.375% 1/15/20	478,777,400		502,147,482
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			854,316,305
U.S. Treasury Obligations - 28.0%
U.S. Treasury Bonds:
3.875% 8/15/40	580,435,000		521,121,508
4.25% 11/15/40	195,000,000		187,017,090
4.75% 2/15/41	31,574,000		32,920,821
U.S. Treasury Notes:
1% 1/15/14 (e)	744,910,000		742,524,063
1.25% 2/15/14	213,958,000		214,492,895
1.25% 8/31/15	325,296,000		316,019,859
1.75% 3/31/14	18,250,000		18,552,257
1.875% 4/30/14	85,530,000		87,213,915
1.875% 9/30/17	6,924,000		6,571,305
2% 1/31/16	197,350,000		196,424,823
2.125% 2/29/16	231,009,000		230,900,657
2.375% 8/31/14	100,000,000		103,226,600
2.375% 9/30/14	260,559,000		268,864,318
2.5% 3/31/15	200,000,000		206,422,000
2.625% 7/31/14	304,537,000		317,313,241
2.625% 12/31/14	348,703,000		362,269,639
2.625% 1/31/18	259,280,000		256,342,876
2.625% 8/15/20	274,369,000		257,821,257
2.625% 11/15/20	280,526,000		262,401,496
3.125% 4/30/17	118,350,000		122,159,450
U.S. Government and Government Agency Obligations - continued
	Principal Amount		Value
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
3.25% 3/31/17	$ 119,160,000		$ 124,000,875
3.625% 2/15/21	576,828,000		586,832,505
4.25% 11/15/17	250,000,000		273,672,000
TOTAL U.S. TREASURY OBLIGATIONS			5,695,085,450
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $6,911,282,053)		6,887,315,297
U.S. Government Agency - Mortgage Securities - 12.8%
Fannie Mae - 10.1%
2.018% 10/1/33 (i)	169,748		175,000
2.142% 3/1/35 (i)	111,911		115,752
2.165% 10/1/33 (i)	65,555		67,773
2.202% 2/1/33 (i)	144,712		149,308
2.213% 7/1/35 (i)	60,804		62,801
2.243% 12/1/34 (i)	153,558		158,393
2.316% 3/1/35 (i)	25,323		26,259
2.474% 10/1/35 (i)	234,284		242,565
2.532% 7/1/34 (i)	89,970		93,515
2.553% 10/1/33 (i)	124,579		131,160
2.573% 3/1/35 (i)	77,743		81,587
2.59% 6/1/36 (i)	262,190		274,071
2.622% 12/1/33 (i)	4,626,342		4,860,350
2.622% 7/1/34 (i)	4,478,083		4,703,848
2.682% 2/1/34 (i)	44,689		46,847
2.686% 11/1/36 (i)	885,084		929,522
2.733% 7/1/35 (i)	360,416		377,897
2.747% 5/1/35 (i)	336,147		355,387
2.961% 9/1/36 (i)	1,326,949		1,405,032
3% 11/1/25 to 2/1/26	32,000,304		31,192,024
3.5% 1/1/26 to 11/1/40 (h)	141,555,041		136,789,885
3.5% 3/1/26 (g)(h)	56,000,000		56,117,998
3.536% 7/1/37 (i)	631,316		661,584
4% 7/1/18 to 12/1/40	23,317,338		23,214,797
4% 3/1/26 (g)(h)	20,000,000		20,554,300
4% 3/1/41 (g)(h)	80,500,000		79,378,450
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4% 3/1/41 (g)	$ 3,000,000		$ 2,958,203
4% 3/1/41 (g)	33,000,000		32,540,234
4.5% 6/1/24 to 11/1/40	63,179,739		64,586,405
4.5% 3/1/26 (g)	5,000,000		5,239,108
4.5% 3/1/41 (g)(h)	170,000,000		173,254,514
4.5% 3/1/41 (g)(h)	20,000,000		20,382,884
4.5% 3/1/41 (g)(h)	42,000,000		42,804,056
4.5% 3/1/41 (g)	3,000,000		3,057,433
4.5% 3/1/41 (g)	41,500,000		42,294,484
4.5% 3/1/41 (g)	41,000,000		41,784,912
4.5% 3/1/41 (g)	23,100,000		23,542,231
5% 5/1/23 to 8/1/40 (h)	223,315,144		235,148,453
5% 3/1/41 (g)(h)	127,200,000		133,221,381
5% 3/1/41 (g)(h)	60,000,000		62,840,274
5% 3/1/41 (g)(h)	60,000,000		62,840,274
5.5% 7/1/16 to 3/1/40 (h)	228,126,933		244,370,436
5.5% 3/1/41 (g)(h)	69,400,000		74,182,715
5.5% 3/1/41 (g)(h)	12,000,000		12,826,982
6% 5/1/16 to 9/1/39	127,917,744		139,259,251
6% 3/1/41 (g)(h)	203,500,000		221,184,862
6.5% 4/1/13 to 9/1/38	31,259,677		35,073,427
7% 11/1/11 to 6/1/33	323,255		367,984
7.5% 8/1/13 to 8/1/29	339,663		382,937
8.5% 5/1/21 to 9/1/25	16,587		18,815
9.5% 2/1/25	2,237		2,432
10.5% 8/1/20	4,041		4,773
12.5% 12/1/13 to 4/1/15	4,062		4,482
TOTAL FANNIE MAE			2,036,340,047
Freddie Mac - 1.0%
2.245% 4/1/35 (i)	1,167,683		1,212,675
2.35% 3/1/36 (i)	196,781		203,659
2.546% 7/1/35 (i)	1,816,153		1,899,186
2.585% 1/1/35 (i)	127,952		134,335
2.665% 8/1/35 (i)	4,969,717		5,214,644
2.92% 11/1/35 (i)	467,034		494,589
3.147% 3/1/33 (i)	23,623		24,894
3.352% 10/1/35 (i)	363,728		385,325
4.5% 7/1/25 to 10/1/40	10,625,914		10,928,796
4.5% 3/1/41 (g)	38,000,000		38,688,887
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Freddie Mac - continued
4.5% 3/1/41 (g)	$ 20,000,000		$ 20,362,572
5% 3/1/19 to 9/1/40	63,438,445		66,742,723
5.5% 10/1/38	36,777,685		39,256,199
6% 7/1/37 to 8/1/37	5,384,832		5,861,448
6% 3/1/41 (g)	13,000,000		14,122,636
7% 3/1/11 to 7/1/13	6,703		6,804
7.5% 5/1/11 to 1/1/33	105,634		117,074
8.5% 9/1/24 to 8/1/27	16,444		18,936
11.5% 10/1/15	863		958
TOTAL FREDDIE MAC			205,676,340
Ginnie Mae - 1.7%
4% 1/15/25 to 10/20/25	42,809,033		44,744,421
4.5% 2/15/39 to 1/15/41	150,693,150		155,954,672
5% 3/1/41 (g)(h)	55,000,000		58,394,210
5% 3/1/41 (g)(h)	34,000,000		36,098,239
5% 3/1/41 (g)(h)	31,000,000		32,913,100
5.5% 12/20/28 to 12/15/38	9,015,818		9,806,735
6% 7/20/36 to 12/20/37	5,670,076		6,213,324
6% 3/1/41 (g)	3,000,000		3,302,429
7% 1/15/28 to 11/15/32	2,638,298		3,009,536
7.5% 3/15/28 to 10/15/28	4,142		4,737
8% 7/15/17 to 11/15/17	607,736		670,370
8.5% 5/15/17 to 10/15/21	20,875		23,698
11% 7/20/19 to 8/20/19	1,031		1,231
TOTAL GINNIE MAE			351,136,702
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $2,583,144,594)		2,593,153,089
Asset-Backed Securities - 2.9%
Accredited Mortgage Loan Trust Series 2005-1 Class M1, 0.7315% 4/25/35 (i)	1,450,774		1,085,397
ACE Securities Corp. Home Equity Loan Trust:
Series 2004-HE1:
Class M1, 1.0115% 3/25/34 (i)	51,197		50,539
Class M2, 1.9115% 3/25/34 (i)	420,000		342,028
Series 2005-HE2 Class M2, 0.7115% 4/25/35 (i)	139,141		130,726
Asset-Backed Securities - continued
	Principal Amount		Value
ACE Securities Corp. Home Equity Loan Trust: - continued
Series 2006-OP1:
Class M4, 0.6315% 4/25/36 (i)	$ 139,000		$ 1,234
Class M5, 0.6515% 4/25/36 (i)	8,237		17
Advanta Business Card Master Trust:
Series 2006-C1 Class C1, 0.742% 10/20/14 (i)	46,178		8,592
Series 2007-D1 Class D, 1.662% 1/22/13 (f)(i)	7,316,000		73,160
Airspeed Ltd. Series 2007-1A Class C1, 2.7658% 6/15/32 (f)(i)	4,254,007		1,956,843
Ally Auto Receivables Trust:
Series 2009-A:
Class A3, 2.33% 6/17/13 (f)	5,210,000		5,278,332
Class A4, 3% 10/15/15 (f)	9,105,000		9,404,774
Series 2010-5 Class A4, 1.75% 3/15/16	7,090,000		6,996,323
Series 2011-1 Class A4, 2.14% 3/15/16	31,910,000		32,072,559
Ally Master Owner Trust:
Series 2010-3 Class A, 2.88% 4/15/15 (f)	13,770,000		14,120,295
Series 2011-1 Class A2, 2.15% 1/15/16	14,883,000		14,860,335
AmeriCredit Automobile Receivables Trust Series 2011-1 Class A3, 1.39% 9/8/15	13,060,000		13,056,994
AmeriCredit Prime Automobile Receivables Trust Series 2007-1:
Class D, 5.62% 9/8/14	1,026,000		1,052,969
Class E, 6.96% 3/8/16 (f)	2,233,886		2,286,760
Ameriquest Mortgage Securities, Inc. pass-thru certificates:
Series 2003-10 Class M1, 0.9615% 12/25/33 (i)	78,398		66,921
Series 2004-R2 Class M3, 0.8115% 4/25/34 (i)	109,017		28,045
Series 2005-R2 Class M1, 0.7115% 4/25/35 (i)	1,743,000		1,496,412
Argent Securities, Inc. pass-thru certificates:
Series 2003-W7 Class A2, 1.04% 3/25/34 (i)	40,480		32,244
Series 2004-W11 Class M2, 0.9615% 11/25/34 (i)	457,000		338,953
Series 2004-W7 Class M1, 0.8115% 5/25/34 (i)	1,310,000		906,057
Series 2006-W4 Class A2C, 0.4215% 5/25/36 (i)	1,137,453		407,093
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2004-HE2 Class M1, 1.0865% 4/25/34 (i)	2,253,000		1,830,264
Series 2006-HE2 Class M1, 0.6315% 3/25/36 (i)	228,000		6,014
Axon Financial Funding Ltd. 2.025% 4/4/17 (c)(f)(i)	6,174,000		62
Bank of America Auto Trust Series 2009-1A:
Class A3, 2.67% 7/15/13 (f)	8,313,530		8,395,685
Class A4, 3.52% 6/15/16 (f)	30,100,000		31,171,289
Asset-Backed Securities - continued
	Principal Amount		Value
Bear Stearns Asset Backed Securities I Trust Series 2005-HE2 Class M2, 1.0115% 2/25/35 (i)	$ 1,257,000		$ 939,422
BMW Vehicle Lease Trust:
Series 2009-1 Class A3, 2.91% 3/15/12	2,495,003		2,511,428
Series 2010-1 Class A3, 0.82% 4/15/13	20,570,000		20,580,544
Brazos Higher Education Authority, Inc. Student Loan Rev. Series 2006 A2R, 1.0528% 12/1/41 (i)	588,772		588,042
Brazos Higher Education Authority, Inc. Series 2006-2 Class A9, 0.3128% 12/26/24 (i)	1,374,505		1,243,927
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (i)	97,978		97,155
Capital Auto Receivables Asset Trust:
Series 2006-2:
Class B, 5.07% 12/15/11	119,207		119,396
Class C, 5.31% 6/15/12	1,422,000		1,440,986
Series 2007-1 Class C, 5.38% 11/15/12	506,000		524,296
Capital Auto Receivables Trust Series 2007-2 Class A4A, 5.39% 2/18/14	3,966,042		4,031,659
Capital One Auto Finance Trust Series 2007-C Class A4, 5.23% 7/15/14 (FGIC Insured)	5,261,230		5,419,285
Capital One Multi-Asset Execution Trust:
Series 2008-A3 Class A3, 5.05% 2/15/16	13,676,000		14,762,036
Series 2008-A5 Class A5, 4.85% 2/18/14	5,405,000		5,432,280
Series 2008-A6 Class A6, 1.3658% 3/17/14 (i)	13,801,000		13,825,095
Series 2009-A2 Class A2, 3.2% 4/15/14	26,000,000		26,196,477
Capital Trust Ltd. Series 2004-1 Class A2, 0.712% 7/20/39 (f)(i)	252,000		189,000
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	846,000		859,521
Carrington Mortgage Loan Trust:
Series 2006-FRE1 Class M1, 0.5615% 7/25/36 (i)	931,000		59,063
Series 2006-NC4 Class M1, 0.5615% 10/25/36 (i)	195,000		14,736
Series 2007-RFC1 Class A3, 0.4015% 12/25/36 (i)	1,471,000		553,041
Chase Issuance Trust Series 2007-A17 Class A, 5.12% 10/15/14	7,400,000		7,916,055
Chrysler Financial Auto Securitization Trust Series 2010-A Class A3, 0.91% 8/8/13	25,040,000		25,051,821
Chrysler Financial Lease Trust Series 2010-A Class A2, 1.78% 6/15/11 (f)	3,635,703		3,637,097
Citibank Credit Card Issuance Trust:
Series 2006-A4 Class A4, 5.45% 5/10/13	26,000,000		26,280,800
Series 2009-A3 Class A3, 2.7% 6/24/13	18,000,000		18,216,428
Series 2009-A5 Class A5, 2.25% 12/23/14	48,200,000		49,241,028
Asset-Backed Securities - continued
	Principal Amount		Value
Citigroup Mortgage Loan Trust Series 2007-AMC4 Class M1, 0.5315% 5/25/37 (i)	$ 624,000		$ 97,270
Countrywide Asset-Backed Certificates Trust:
Series 2007-11 Class 2A1, 0.3215% 6/25/47 (i)	59,774		58,691
Series 2007-4 Class A1A, 0.36% 9/25/37 (i)	432,204		413,369
Countrywide Home Loan Trust Series 2006-13 Class N, 7% 8/25/37 (f)	1,245,451		0
Countrywide Home Loans, Inc.:
Series 2004-3 Class M4, 1.2315% 4/25/34 (i)	131,909		54,961
Series 2004-4 Class M2, 1.0565% 6/25/34 (i)	496,195		284,389
Series 2005-3 Class MV1, 0.6815% 8/25/35 (i)	719,935		688,512
Series 2005-AB1 Class A2, 0.4715% 8/25/35 (i)	84,192		83,078
CPS Auto Receivables Trust Series 2006-D Class A4, 5.115% 8/15/13 (FSA Insured) (f)	382,210		387,253
Fannie Mae subordinate REMIC pass-thru certificates Series 2004-T5 Class AB3, 0.6842% 5/28/35 (i)	31,732		23,412
Fieldstone Mortgage Investment Corp.:
Series 2004-3 Class M5, 2.4365% 8/25/34 (i)	160,000		91,819
Series 2006-3 Class 2A3, 0.4215% 11/25/36 (i)	5,169,000		1,913,334
First Franklin Mortgage Loan Trust Series 2004-FF2 Class M3, 1.0865% 3/25/34 (i)	19,703		5,306
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (f)	3,966,000		3,978,690
Series 2006-C:
Class B, 5.3% 6/15/12	575,000		583,758
Class D, 6.89% 5/15/13 (f)	2,923,000		2,980,066
Series 2007-A Class D, 7.05% 12/15/13 (f)	1,553,000		1,628,639
Series 2009-D:
Class A3, 2.17% 10/15/13	5,990,860		6,057,529
Class A4, 2.98% 8/15/14	5,800,000		5,996,045
Series 2010-B Class A3, 0.98% 10/15/14	14,330,000		14,368,915
Ford Credit Floorplan Master Owner Trust:
Series 2006-4 Class B, 0.8158% 6/15/13 (i)	635,000		633,377
Series 2010-5 Class A1, 1.5% 9/15/15	14,820,000		14,695,253
Franklin Auto Trust:
Series 2006-1 Class B, 5.14% 7/21/14	52,673		52,788
Series 2007-1:
Class A4, 5.03% 2/16/15	222,643		222,947
Class C, 5.43% 2/16/15	535,000		533,201
Fremont Home Loan Trust:
Series 2005-A:
Class M3, 0.7515% 1/25/35 (i)	801,000		395,843
Class M4, 0.9415% 1/25/35 (i)	296,000		94,291
Asset-Backed Securities - continued
	Principal Amount		Value
Fremont Home Loan Trust: - continued
Series 2006-D Class M1, 0.4915% 11/25/36 (i)	$ 258,656		$ 8,219
GCO Education Loan Funding Master Trust II Series 2007-1A Class C1L, 0.6915% 2/25/47 (f)(i)	2,392,000		1,411,280
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (f)	1,699,488		1,352,792
GE Business Loan Trust:
Series 2003-1 Class A, 0.6958% 4/15/31 (f)(i)	201,673		188,565
Series 2006-2A:
Class A, 0.4458% 11/15/34 (f)(i)	2,030,290		1,685,141
Class B, 0.5458% 11/15/34 (f)(i)	734,022		477,114
Class C, 0.6458% 11/15/34 (f)(i)	1,217,538		608,769
Class D, 1.0158% 11/15/34 (f)(i)	462,839		111,081
Goal Capital Funding Trust Series 2007-1 Class C1, 0.7028% 6/25/42 (i)	643,000		535,398
GS Auto Loan Trust Series 2007-1:
Class B, 5.53% 12/15/14	33,849		34,439
Class C, 5.74% 12/15/14	30,027		30,525
GSAMP Trust:
Series 2004-AR1:
Class B4, 5% 6/25/34 (f)(i)	419,320		84,502
Class M1, 0.9115% 6/25/34 (i)	2,313,000		1,617,851
Series 2007-HE1 Class M1, 0.5115% 3/25/47 (i)	931,000		53,044
Guggenheim Structured Real Estate Funding Ltd.:
Series 2005-1 Class C, 1.3415% 5/25/30 (f)(i)	65,197		33,251
Series 2006-3:
Class B, 0.6615% 9/25/46 (f)(i)	361,000		180,500
Class C, 0.8115% 9/25/46 (f)(i)	1,245,000		298,800
Home Equity Asset Trust:
Series 2003-2 Class M1, 1.5815% 8/25/33 (i)	378,937		275,200
Series 2003-3 Class M1, 1.5515% 8/25/33 (i)	659,363		547,746
Series 2003-5 Class A2, 0.9615% 12/25/33 (i)	27,804		19,542
Series 2005-5 Class 2A2, 0.5115% 11/25/35 (i)	77,126		76,114
Series 2006-1 Class 2A3, 0.4865% 4/25/36 (i)	1,121,521		1,092,488
Series 2006-8 Class 2A1, 0.3115% 3/25/37 (i)	5,244		5,174
Honda Auto Receivables Owner Trust:
Series 2009-3 Class A3, 2.31% 5/15/13	7,021,681		7,093,289
Series 2011-1 Class A4, 1.8% 4/17/17	10,400,000		10,396,880
HSBC Home Equity Loan Trust Series 2006-2 Class M2, 0.552% 3/20/36 (i)	619,980		516,411
HSI Asset Securitization Corp. Trust Series 2007-HE1 Class 2A3, 0.4515% 1/25/37 (i)	1,292,000		542,628
Hyundai Auto Receivables Trust Series 2009-A Class A3, 2.03% 8/15/13	6,590,000		6,654,544
Asset-Backed Securities - continued
	Principal Amount		Value
JPMorgan Mortgage Acquisition Trust:
Series 2006-NC2 Class M2, 0.5615% 7/25/36 (i)	$ 178,000		$ 7,320
Series 2007-CH1:
Class AV4, 0.3915% 11/25/36 (i)	1,255,000		1,078,361
Class MV1, 0.4915% 11/25/36 (i)	1,020,000		675,280
Series 2007-CH3 Class M1, 0.5615% 3/25/37 (i)	499,000		25,411
Keycorp Student Loan Trust:
Series 1999-A Class A2, 0.6328% 12/27/29 (i)	633,033		543,858
Series 2006-A Class 2C, 1.4528% 3/27/42 (i)	2,867,000		527,945
Long Beach Auto Receivables Trust Series 2007-A Class A4, 5.025% 1/15/14 (FSA Insured)	1,558,321		1,576,780
Long Beach Mortgage Loan Trust Series 2004-2 Class M2, 1.3415% 6/25/34 (i)	77,167		48,505
Marriott Vacation Club Owner Trust Series 2006-2A:
Class B, 5.442% 10/20/28 (f)	20,551		19,467
Class C, 5.691% 10/20/28 (f)	9,169		8,645
Class D, 6.01% 10/20/28 (f)	109,712		89,700
MASTR Asset Backed Securities Trust:
Series 2006-AM3 Class M1, 0.5215% 10/25/36 (i)	450,000		25,265
Series 2007-HE1 Class M1, 0.5615% 5/25/37 (i)	641,000		33,136
Mercedes-Benz Auto Lease Trust Series 2011-1A Class A3 1.18% 11/15/13 (f)	38,910,000		38,902,265
Meritage Mortgage Loan Trust Series 2004-1 Class M1, 1.0115% 7/25/34 (i)	159,302		105,298
Merrill Auto Trust Securitization Series 2007-1 Class B, 5.79% 12/15/13	94,458		95,079
Merrill Lynch Mortgage Investors Trust:
Series 2003-OPT1 Class M1, 0.9115% 7/25/34 (i)	535,260		419,365
Series 2006-FM1 Class A2B, 0.3715% 4/25/37 (i)	1,735,629		1,586,602
Series 2006-MLN1 Class A2A, 0.3315% 7/25/37 (i)	12,086		11,968
Series 2006-OPT1 Class A1A, 0.5215% 6/25/35 (i)	2,756,080		2,262,029
Morgan Stanley ABS Capital I Trust:
Series 2004-HE6 Class A2, 0.6015% 8/25/34 (i)	48,462		40,240
Series 2005-NC1 Class M1, 0.7015% 1/25/35 (i)	326,000		230,128
Series 2005-NC2 Class B1, 1.4315% 3/25/35 (i)	339,222		51,293
Series 2007-HE2 Class M1, 0.5115% 1/25/37 (i)	229,000		6,254
National Collegiate Student Loan Trust:
Series 2004-2 Class AIO, 9.75% 10/25/14 (k)	12,226,200		1,681,103
Series 2006-1 Class AIO, 5.5% 4/25/11 (k)	18,850,067		145,353
Series 2006-2 Class AIO, 6% 8/25/11 (k)	10,871,000		224,193
Series 2006-3 Class AIO, 7.1% 1/25/12 (k)	57,413,000		2,583,585
Series 2006-4:
Class A1, 0.2915% 3/25/25 (i)	104,201		103,623
Class AIO, 6.35% 2/27/12 (k)	42,154,000		2,243,402
Asset-Backed Securities - continued
	Principal Amount		Value
National Collegiate Student Loan Trust: - continued
Series 2006-4:
Class D, 1.3615% 5/25/32 (i)	$ 2,193,000		$ 51,038
Series 2007-1 Class AIO, 7.27% 4/25/12 (k)	50,293,000		3,771,975
Series 2007-2 Class AIO, 6.7% 7/25/12 (k)	37,116,000		3,098,195
New Century Home Equity Loan Trust:
Series 2005-4 Class M2, 0.7715% 9/25/35 (i)	1,164,000		770,043
Series 2005-D Class M2, 0.7315% 2/25/36 (i)	704,000		64,850
Nissan Auto Lease Trust:
Series 2009-A Class A3, 2.92% 12/15/11	6,172,717		6,192,982
Series 2009-B Class A3, 2.07% 1/15/15	9,969,984		10,019,548
Nissan Auto Receivables Owner Trust Series 2010-A Class A4, 1.31% 9/15/16	8,720,000		8,653,412
Ocala Funding LLC:
Series 2005-1A Class A, 1.7535% 3/20/49 (c)(f)(i)	317,000		0
Series 2006-1A Class A, 1.662% 3/20/49 (c)(f)(i)	962,000		0
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (i)	39,131		38,402
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (i)	85,247		83,308
Park Place Securities, Inc.:
Series 2004-WCW1:
Class M3, 1.5115% 9/25/34 (i)	435,000		276,538
Class M4, 1.7115% 9/25/34 (i)	558,000		260,225
Series 2005-WCH1:
Class M2, 0.7815% 1/25/36 (i)	2,176,000		2,017,444
Class M3, 0.8215% 1/25/36 (i)	391,000		276,869
Class M4, 1.0915% 1/25/36 (i)	1,245,000		513,783
Series 2005-WHQ2:
Class M7, 1.5115% 5/25/35 (i)	1,616,000		40,138
Class M9, 2.1415% 5/25/35 (i)	20,593		27
Providian Master Note Trust Series 2006-C1A Class C1, 0.8158% 3/15/15 (f)(i)	2,842,000		2,841,473
Residential Asset Mortgage Products, Inc. Series 2006-EFC2 Class M1, 0.4915% 12/25/36 (i)	515,000		16,014
Residential Asset Securities Corp. Series 2007-KS2 Class AI1, 0.3315% 2/25/37 (i)	29,339		29,020
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0615% 4/25/33 (i)	4,173		3,675
Saxon Asset Securities Trust Series 2004-1 Class M1, 1.0565% 3/25/35 (i)	1,249,284		1,035,178
Securitized Asset Backed Receivables LLC Trust:
Series 2005-FR4 Class B3, 1.9815% 1/25/36 (i)	64,516		2,165
Series 2006-FR4 Class A2A, 0.3415% 8/25/36 (i)	41,198		16,525
Series 2007-NC1 Class A2A, 0.3115% 12/25/36 (i)	13,262		13,021
Asset-Backed Securities - continued
	Principal Amount		Value
Sierra Receivables Funding Co. Series 2007-1A Class A2, 0.4106% 3/20/19 (FGIC Insured) (f)(i)	$ 617,474		$ 581,253
SLM Private Credit Student Loan Trust Series 2004-A Class C, 1.2516% 6/15/33 (i)	1,043,000		92,580
Specialty Underwriting & Residential Finance Trust Series 2006-AB2 Class N1, 5.75% 6/25/37 (f)	571,164		0
Structured Asset Investment Loan Trust Series 2004-8 Class M5, 1.4115% 9/25/34 (i)	39,113		16,318
SVO VOI Mortgage Corp. Series 2006-AA Class A, 5.28% 2/20/24 (f)	731,975		753,935
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.1215% 9/25/34 (i)	115,176		89,714
Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 0.8628% 4/6/42 (f)(i)	2,332,902		69,987
Triad Auto Receivables Owner Trust Series 2006-C Class A4, 5.31% 5/13/13 (AMBAC Insured)	394,674		398,245
Volkswagen Auto Lease Trust Series 2009-A Class A3, 3.41% 4/16/12	13,062,148		13,161,823
WaMu Asset Holdings Corp. Series 2006-8 Class N1, 6.048% 10/25/46 (f)	749,203		0
WaMu Master Note Trust Series 2006-C2A Class C2, 0.7658% 8/15/15 (f)(i)	7,241,000		7,216,903
Wells Fargo Home Equity Trust Series 2004-3 Class A, 4.5% 11/27/34 (a)(f)	6,399		0
Whinstone Capital Management Ltd. Series 1A Class B3, 2.1031% 10/25/44 (f)(i)	1,459,789		656,905
TOTAL ASSET-BACKED SECURITIES (Cost $563,048,883)		587,916,521
Collateralized Mortgage Obligations - 0.8%
Private Sponsor - 0.8%
Arran Residential Mortgages Funding No. 1 PLC floater Series 2006-1A Class DB, 0.7331% 4/12/56 (f)(i)	1,169,849		1,160,719
Banc of America Commercial Mortgage Trust Series 2007-2:
Class B, 5.6983% 4/10/49 (i)	824,000		406,637
Class C, 5.6983% 4/10/49 (i)	2,198,000		950,531
Class D, 5.6983% 4/10/49 (i)	1,100,000		399,674
Banc of America Mortgage Securities, Inc.:
Series 2003-L Class 2A1, 2.9055% 1/25/34 (i)	1,387,457		1,309,120
Series 2004-1 Class 2A2, 3.2375% 10/25/34 (i)	1,266,917		1,150,011
Series 2004-A Class 2A2, 2.9991% 2/25/34 (i)	652,264		582,612
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Banc of America Mortgage Securities, Inc.: - continued
Series 2004-B:
Class 1A1, 2.9237% 3/25/34 (i)	$ 122,499		$ 111,061
Class 2A2, 3.0527% 3/25/34 (i)	878,874		847,020
Series 2004-D Class 2A2, 2.9567% 5/25/34 (i)	1,611,977		1,480,043
Series 2004-G Class 2A7, 3.0214% 8/25/34 (i)	1,487,211		1,340,738
Series 2004-H Class 2A1, 3.1667% 9/25/34 (i)	1,333,346		1,207,837
Bayview Commercial Asset Trust Series 2006-3A Class IO, 3.2127% 10/25/36 (f)(i)(k)	22,830,960		1,666,660
Bear Stearns ALT-A Trust floater Series 2005-1 Class A1, 0.5415% 1/25/35 (i)	1,823,809		1,517,190
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T24 Class X2, 0.4264% 10/12/41 (f)(i)(k)	3,211,283		37,042
Chase Mortgage Finance Trust:
Series 2007-A1 Class 1A5, 2.9853% 2/25/37 (i)	1,089,033		1,082,156
Series 2007-A2 Class 2A1, 3.0618% 7/25/37 (i)	876,650		878,207
Citigroup Commercial Mortgage Trust Series 2008-C7 Class A2B, 6.0995% 12/10/49 (i)	1,734,000		1,833,020
Citigroup Mortgage Loan Trust Series 2004-UST1 Class A4, 2.4204% 8/25/34 (i)	627,040		622,409
Cobalt CMBS Commercial Mortgage Trust Series 2007-C2 Class B, 5.617% 4/15/47 (i)	1,937,000		871,650
COMM pass-thru certificates floater Series 2001-J2A Class A2F, 0.7648% 7/16/34 (f)(i)	1,293,145		1,290,963
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 2.9234% 11/25/34 (i)	3,586,994		3,358,063
First Horizon Mortgage pass-thru Trust Series 2004-AR5 Class 2A1, 2.8757% 10/25/34 (i)	758,817		732,967
Fosse Master Issuer PLC floater Series 2006-1A:
Class B2, 0.4631% 10/18/54 (f)(i)	2,889,000		2,871,810
Class C2, 0.7731% 10/18/54 (f)(i)	970,000		961,658
Class M2, 0.5531% 10/18/54 (f)(i)	1,661,000		1,630,105
Gracechurch Mortgage Financing PLC floater Series 2006-1 Class D2, 0.7825% 11/20/56 (f)(i)	2,405,000		2,346,795
Granite Master Issuer PLC floater:
Series 2005-4 Class C2, 1.363% 12/20/54 (i)	178,650		116,213
Series 2006-1A Class C2, 1.463% 12/20/54 (f)(i)	5,526,000		3,555,981
Series 2006-2 Class C1, 0.733% 12/20/54 (i)	4,563,000		2,936,291
Series 2006-3 Class C2, 0.763% 12/20/54 (i)	922,000		593,307
Series 2006-4:
Class B1, 0.353% 12/20/54 (i)	3,812,000		3,144,900
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Granite Master Issuer PLC floater: - continued
Series 2006-4:
Class C1, 0.643% 12/20/54 (i)	$ 2,331,000		$ 1,499,999
Class M1, 0.433% 12/20/54 (i)	1,006,000		759,530
Series 2007-1:
Class 1C1, 0.863% 12/20/54 (i)	1,847,000		1,188,544
Class 1M1, 0.563% 12/20/54 (i)	1,238,000		934,690
Class 2C1, 1.223% 12/20/54 (i)	842,000		541,827
Class 2M1, 0.763% 12/20/54 (i)	1,589,000		1,199,695
Series 2007-2 Class 2C1, 0.694% 12/17/54 (i)	2,199,000		1,415,057
Granite Mortgages PLC floater Series 2003-3 Class 1C, 2.7531% 1/20/44 (i)	365,737		274,303
GSR Mortgage Loan Trust Series 2007-AR2 Class 2A1, 2.9085% 4/25/35 (i)	401,038		347,335
Harborview Mortgage Loan Trust floater Series 2005-2 Class 2A1A, 0.482% 5/19/35 (i)	309,208		206,975
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18:
Class A1, 5.32% 6/12/47 (i)	60,697		61,424
Class A3, 5.447% 6/12/47 (i)	3,289,000		3,404,599
JPMorgan Mortgage Trust:
sequential payer Series 2006-A5 Class 3A5, 5.9004% 8/25/36 (i)	1,135,000		948,459
Series 2004-A3 Class 4A1, 4.29% 7/25/34 (i)	731,151		708,807
Series 2004-A5 Class 2A1, 2.6869% 12/25/34 (i)	566,451		527,934
Series 2006-A2 Class 5A1, 2.9739% 11/25/33 (i)	1,532,632		1,473,793
Series 2007-A1 Class 1A1, 3.0107% 7/25/35 (i)	2,829,815		2,737,735
LB-UBS Commercial Mortgage Trust sequential payer Series 2006-C6 Class A4, 5.372% 9/15/39	780,000		839,116
MASTR Adjustable Rate Mortgages Trust Series 2007-3 Class 22A2, 0.4715% 5/25/47 (i)	853,094		588,716
MASTR Asset Backed Securities Trust Series 2006-NC3 Class M1, 0.4915% 10/25/36 (i)	348,871		1,556
Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 0.4315% 2/25/37 (i)	1,542,493		1,109,210
Merrill Lynch Floating Trust floater Series 2006-1:
Class B, 0.436% 6/15/22 (f)(i)	153,000		144,203
Class C, 0.456% 6/15/22 (f)(i)	1,288,000		1,143,100
Class D, 0.466% 6/15/22 (f)(i)	496,000		424,080
Class E, 0.476% 6/15/22 (f)(i)	792,000		667,260
Class F, 0.506% 6/15/22 (f)(i)	1,268,000		1,049,270
Class G, 0.576% 6/15/22 (f)(i)	219,000		177,938
Class H, 0.596% 6/15/22 (f)(i)	595,000		474,513
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Merrill Lynch Floating Trust floater Series 2006-1: - continued
Class J, 0.636% 6/15/22 (f)(i)	$ 694,000		$ 522,235
Merrill Lynch Mortgage Investors Trust:
Series 2004-A4 Class A1, 2.7866% 8/25/34 (i)	975,724		930,774
Series 2005-A2 Class A7, 2.6496% 2/25/35 (i)	667,612		624,167
Series 2006-A6 Class A4, 3.1889% 10/25/33 (i)	645,741		621,627
Merrill Lynch-CFC Commercial Mortgage Trust Series 2006-3 Class ASB, 5.382% 7/12/46 (i)	7,424,000		7,828,579
Opteum Mortgage Acceptance Corp. floater Series 2005-3 Class APT, 0.5515% 7/25/35 (i)	1,927,294		1,579,188
Option One Mortgage Loan Trust floater Series 2007-CP1 Class M1, 0.5615% 3/25/37 (i)	2,543,000		166,215
Provident Funding Mortgage Loan Trust Series 2005-2 Class 3A, 2.81% 10/25/35 (i)	3,864,118		3,381,567
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B:
Class B5, 2.614% 7/10/35 (f)(i)	1,437,344		1,168,704
Class B6, 3.114% 7/10/35 (f)(i)	1,342,750		1,028,815
Residential Asset Mortgage Products, Inc. sequential payer:
Series 2003-SL1 Class A31, 7.125% 4/25/31	893,639		939,325
Series 2004-SL3 Class A1, 7% 8/25/16	50,718		49,162
Residential Funding Securities Corp. floater Series 2003-RP2 Class A1, 0.7115% 6/25/33 (f)(i)	364,697		298,931
Salomon Brothers Mortgage Securities VII, Inc. Series 2006-C2 Class H, 6.308% 7/18/33 (f)	245,000		243,687
Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 0.8997% 7/20/34 (i)	32,314		24,038
Structured Asset Securities Corp.:
Series 2003-15A Class 4A, 5.3732% 4/25/33 (i)	285,128		276,182
Series 2003-20 Class 1A1, 5.5% 7/25/33	217,094		222,078
TBW Mortgage-Backed pass-thru certificates floater Series 2006-4 Class A3, 0.46% 9/25/36 (i)	2,763,000		1,966,726
Thornburg Mortgage Securities Trust floater:
Series 2006-4 Class A2B, 0.38% 7/25/36 (i)	22,528,131		22,452,617
Series 2006-5 Class A1, 0.3815% 10/25/46 (i)	7,969,311		7,883,354
WaMu Mortgage pass-thru certificates:
Series 2003-AR8 Class A, 2.7159% 8/25/33 (i)	495,231		471,129
Series 2005-AR14 Class 1A1, 2.6694% 12/25/35 (i)	1,997,362		1,939,602
Series 2005-AR3 Class A2, 2.7112% 3/25/35 (i)	1,322,699		1,190,108
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Wells Fargo Mortgage Backed Securities Trust:
Series 2004-EE Class 2A2, 2.8554% 12/25/34 (i)	$ 3,128,472		$ 3,128,355
Series 2004-H Class A1, 4.5271% 6/25/34 (i)	526,320		517,065
Series 2004-V Class 1A2, 2.8496% 10/25/34 (i)	1,375,652		1,353,672
Series 2004-W Class A9, 2.7616% 11/25/34 (i)	1,510,458		1,454,674
Series 2005-AR10 Class 2A2, 2.833% 6/25/35 (i)	959,098		929,221
Series 2005-AR12:
Class 2A5, 2.8181% 7/25/35 (i)	11,244,280		10,681,234
Class 2A6, 2.8181% 7/25/35 (i)	1,899,864		1,801,536
Series 2005-AR2 Class 2A2, 2.8076% 3/25/35 (i)	2,443,780		2,286,110
Series 2005-AR3 Class 2A1, 2.8794% 3/25/35 (i)	1,561,525		1,426,298
Series 2006-AR8 Class 3A1, 2.8958% 4/25/36 (i)	9,280,153		8,467,457
TOTAL PRIVATE SPONSOR			155,697,490
U.S. Government Agency - 0.0%
Fannie Mae subordinate REMIC pass-thru certificates:
planned amortization class Series 2002-9 Class PC, 6% 3/25/17	197,483		213,803
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	659,011		706,385
Series 2004-86 Class KC, 4.5% 5/25/19	494,654		516,325
Freddie Mac planned amortization class Series 2104 Class PG, 6% 12/15/28	1,292,181		1,416,431
Freddie Mac Multi-class participation certificates guaranteed planned amortization class:
Series 2356 Class GD, 6% 9/15/16	690,814		744,487
Series 2363 Class PF, 6% 9/15/16	879,735		946,584
Series 2425 Class JH, 6% 3/15/17	692,218		748,846
TOTAL U.S. GOVERNMENT AGENCY			5,292,861
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $115,591,828)		160,990,351
Commercial Mortgage Securities - 5.9%
Asset Securitization Corp. Series 1997-D5:
Class A2, 7.0685% 2/14/43 (i)	1,275,000		1,356,738
Class A3, 7.1185% 2/14/43 (i)	1,377,000		1,488,010
Class A6, 7.4385% 2/14/43 (i)	2,029,000		2,156,427
Class PS1, 1.4561% 2/14/43 (i)(k)	5,158,896		122,254
Commercial Mortgage Securities - continued
	Principal Amount		Value
Banc of America Commercial Mortgage Trust:
sequential payer:
Series 2006-2 Class AAB, 5.7218% 5/10/45 (i)	$ 2,024,000		$ 2,178,354
Series 2006-5:
Class A2, 5.317% 9/10/47	8,147,668		8,344,752
Class A3, 5.39% 9/10/47	2,418,000		2,498,374
Series 2006-6 Class A3, 5.369% 10/10/45	3,468,000		3,596,986
Series 2007-2 Class A1, 5.421% 4/10/49	263,019		267,830
Series 2007-4 Class A3, 5.8093% 2/10/51 (i)	1,729,000		1,823,880
Series 2006-6 Class E, 5.619% 10/10/45 (f)	1,002,000		288,014
Series 2007-3:
Class A3, 5.6579% 6/10/49 (i)	2,896,000		3,020,293
Class A4, 5.6579% 6/10/49 (i)	3,615,000		3,859,721
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2001-1 Class A4, 5.451% 1/15/49	3,797,000		4,046,199
Series 2004-2:
Class A3, 4.05% 11/10/38	359,565		365,086
Class A4, 4.153% 11/10/38	2,199,000		2,268,374
Series 2004-6 Class A2, 4.161% 12/10/42	1,786,751		1,797,507
Series 2005-1 Class A3, 4.877% 11/10/42	1,580,678		1,583,987
Series 2006-1 Class A1, 5.219% 9/10/45 (i)	381,115		381,039
Series 2001-3 Class H, 6.562% 4/11/37 (f)	969,000		981,072
Series 2001-PB1:
Class J, 7.166% 5/11/35 (f)	434,000		427,768
Class K, 6.15% 5/11/35 (f)	806,000		767,378
Series 2005-3 Series A3B, 5.09% 7/10/43 (i)	5,387,000		5,592,911
Series 2007-1 Class B, 5.543% 1/15/49	1,044,000		838,553
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class C, 0.5758% 3/15/22 (f)(i)	745,000		730,100
Class D, 0.6258% 3/15/22 (f)(i)	754,000		701,220
Class E, 0.6658% 3/15/22 (f)(i)	623,000		566,930
Class F, 0.7358% 3/15/22 (f)(i)	502,000		446,780
Class G, 0.7958% 3/15/22 (f)(i)	326,000		283,620
Series 2006-BIX1:
Class C, 0.4458% 10/15/19 (f)(i)	1,114,000		1,075,010
Class D, 0.4758% 10/15/19 (f)(i)	1,361,000		1,272,535
Class E, 0.5058% 10/15/19 (f)(i)	1,261,000		1,147,510
Class F, 0.5758% 10/15/19 (f)(i)	2,713,000		2,387,440
Class G, 0.5958% 10/15/19 (f)(i)	1,026,000		861,840
Commercial Mortgage Securities - continued
	Principal Amount		Value
Bayview Commercial Asset Trust:
floater:
Series 2003-2 Class M1, 1.1115% 12/25/33 (f)(i)	$ 42,262		$ 30,852
Series 2004-1:
Class A, 0.6215% 4/25/34 (f)(i)	1,125,809		996,341
Class B, 2.1615% 4/25/34 (f)(i)	123,139		68,958
Class M1, 0.8215% 4/25/34 (f)(i)	98,469		75,329
Class M2, 1.4615% 4/25/34 (f)(i)	91,152		63,806
Series 2004-2:
Class A, 0.6915% 8/25/34 (f)(i)	901,587		784,381
Class M1, 0.8415% 8/25/34 (f)(i)	100,659		74,488
Series 2004-3:
Class A1, 0.6315% 1/25/35 (f)(i)	2,089,764		1,797,197
Class A2, 0.6815% 1/25/35 (f)(i)	292,665		219,499
Class M1, 0.7615% 1/25/35 (f)(i)	352,180		253,569
Class M2, 1.2615% 1/25/35 (f)(i)	160,138		108,093
Series 2005-2A:
Class A1, 0.5715% 8/25/35 (f)(i)	1,572,747		1,281,789
Class M1, 0.6915% 8/25/35 (f)(i)	74,150		49,703
Class M2, 0.7415% 8/25/35 (f)(i)	122,180		76,362
Class M3, 0.7615% 8/25/35 (f)(i)	67,831		40,868
Class M4, 0.8715% 8/25/35 (f)(i)	42,131		23,935
Series 2005-3A:
Class A1, 0.5815% 11/25/35 (f)(i)	561,313		457,470
Class A2, 0.6615% 11/25/35 (f)(i)	574,913		454,181
Class M2, 0.7515% 11/25/35 (f)(i)	56,741		35,179
Class M3, 0.7715% 11/25/35 (f)(i)	51,114		29,646
Class M4, 0.8615% 11/25/35 (f)(i)	63,306		33,710
Series 2005-4A:
Class A2, 0.6515% 1/25/36 (f)(i)	1,293,140		1,008,649
Class B1, 1.6615% 1/25/36 (f)(i)	75,358		28,636
Class M1, 0.7115% 1/25/36 (f)(i)	416,980		277,292
Class M2, 0.7315% 1/25/36 (f)(i)	84,401		52,750
Class M3, 0.7615% 1/25/36 (f)(i)	182,868		104,235
Class M4, 0.8715% 1/25/36 (f)(i)	68,324		35,529
Class M5, 0.9115% 1/25/36 (f)(i)	68,324		32,454
Class M6, 0.9615% 1/25/36 (f)(i)	72,343		29,661
Series 2006-1 Class A2, 0.6215% 4/25/36 (f)(i)	199,292		159,434
Series 2006-2A:
Class A1, 0.4915% 7/25/36 (f)(i)	3,852,961		3,082,369
Class A2, 0.5415% 7/25/36 (f)(i)	177,475		134,881
Class B3, 2.9615% 7/25/36 (f)(i)	67,923		17,660
Class M1, 0.5715% 7/25/36 (f)(i)	186,239		106,156
Commercial Mortgage Securities - continued
	Principal Amount		Value
Bayview Commercial Asset Trust: - continued
floater:
Series 2006-2A:
Class M2, 0.5915% 7/25/36 (f)(i)	$ 88,738		$ 47,031
Class M3, 0.6115% 7/25/36 (f)(i)	73,948		35,865
Class M5, 0.7315% 7/25/36 (f)(i)	61,349		25,153
Class M6, 0.8015% 7/25/36 (f)(i)	91,476		32,931
Series 2006-3A:
Class B1, 1.0615% 10/25/36 (f)(i)	81,114		14,601
Class B3, 2.8615% 10/25/36 (f)(i)	95,061		11,407
Class M4, 0.6915% 10/25/36 (f)(i)	89,550		33,134
Class M5, 0.7415% 10/25/36 (f)(i)	107,071		35,333
Class M6, 0.8215% 10/25/36 (f)(i)	310,181		77,545
Series 2006-4A:
Class A1, 0.4915% 12/25/36 (f)(i)	698,312		562,141
Class A2, 0.5315% 12/25/36 (f)(i)	3,689,092		2,766,819
Class B1, 0.9615% 12/25/36 (f)(i)	19,184		3,309
Class B2, 1.5115% 12/25/36 (f)(i)	17,905		2,789
Class B3, 2.7115% 12/25/36 (f)(i)	141,694		16,698
Class M1, 0.5515% 12/25/36 (f)(i)	169,462		98,288
Class M2, 0.5715% 12/25/36 (f)(i)	112,548		60,776
Class M3, 0.6015% 12/25/36 (f)(i)	114,467		56,661
Class M4, 0.6615% 12/25/36 (f)(i)	136,849		60,213
Class M5, 0.7015% 12/25/36 (f)(i)	125,977		52,910
Class M6, 0.7815% 12/25/36 (f)(i)	112,548		41,643
Series 2007-1:
Class A2, 0.5315% 3/25/37 (f)(i)	789,561		560,589
Class B1, 0.9315% 3/25/37 (f)(i)	199,077		39,815
Class B2, 1.4115% 3/25/37 (f)(i)	143,066		22,891
Class B3, 3.6115% 3/25/37 (f)(i)	497,356		54,709
Class M1, 0.5315% 3/25/37 (f)(i)	175,458		84,220
Class M2, 0.5515% 3/25/37 (f)(i)	131,594		56,585
Class M3, 0.5815% 3/25/37 (f)(i)	54,662		20,772
Class M4, 0.6315% 3/25/37 (f)(i)	39,815		13,935
Class M5, 0.6815% 3/25/37 (f)(i)	145,765		45,187
Class M6, 0.7615% 3/25/37 (f)(i)	204,476		51,119
Series 2007-2A:
Class A1, 0.5315% 7/25/37 (f)(i)	1,497,548		1,108,185
Class A2, 0.5815% 7/25/37 (f)(i)	1,402,974		687,457
Class B1, 1.8615% 7/25/37 (f)(i)	379,077		49,280
Class B2, 2.5115% 7/25/37 (f)(i)	329,054		39,486
Class B3, 3.6115% 7/25/37 (f)(i)	369,697		33,273
Class M1, 0.6315% 7/25/37 (f)(i)	429,881		136,487
Class M2, 0.6715% 7/25/37 (f)(i)	224,320		65,053
Class M3, 0.7515% 7/25/37 (f)(i)	226,664		56,099
Commercial Mortgage Securities - continued
	Principal Amount		Value
Bayview Commercial Asset Trust: - continued
floater:
Series 2007-2A:
Class M4, 0.9115% 7/25/37 (f)(i)	$ 472,087		$ 84,976
Class M5, 1.0115% 7/25/37 (f)(i)	417,375		62,606
Class M6, 1.2615% 7/25/37 (f)(i)	529,926		74,190
Series 2007-3:
Class A2, 0.5515% 7/25/37 (f)(i)	712,781		477,563
Class B1, 1.2115% 7/25/37 (f)(i)	320,235		41,631
Class B2, 1.8615% 7/25/37 (f)(i)	919,384		91,938
Class B3, 4.2615% 7/25/37 (f)(i)	429,993		34,399
Class M1, 0.5715% 7/25/37 (f)(i)	283,434		127,545
Class M2, 0.6015% 7/25/37 (f)(i)	302,157		105,755
Class M3, 0.6315% 7/25/37 (f)(i)	487,455		146,236
Class M4, 0.7615% 7/25/37 (f)(i)	855,467		239,531
Class M5, 0.8615% 7/25/37 (f)(i)	389,318		85,650
Class M6, 1.0615% 7/25/37 (f)(i)	295,701		59,140
Series 2007-4A:
Class B1, 2.8115% 9/25/37 (f)(i)	217,174		7,058
Class B2, 3.7115% 9/25/37 (f)(i)	988,516		24,713
Class M1, 1.2115% 9/25/37 (f)(i)	208,021		31,203
Class M2, 1.3115% 9/25/37 (f)(i)	208,021		24,963
Class M4, 1.8615% 9/25/37 (f)(i)	668,995		60,210
Class M5, 2.0115% 9/25/37 (f)(i)	668,995		46,830
Class M6, 2.2115% 9/25/37 (f)(i)	672,324		40,339
Series 2004-1 Class IO, 1.25% 4/25/34 (f)(k)	3,856,765		134,987
Series 2007-5A Class IO, 3.047% 10/25/37 (f)(i)(k)	9,234,692		1,096,158
Bear Stearns Commercial Mortgage Securities Trust:
floater:
Series 2006-BBA7:
Class G, 0.7058% 3/15/19 (f)(i)	657,000		549,175
Class H, 0.9158% 3/15/19 (f)(i)	442,000		328,479
Class J, 1.1158% 3/15/19 (f)(i)	332,000		235,457
Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (f)(i)	554,000		454,280
Class E, 0.5658% 3/15/22 (f)(i)	2,884,000		2,220,680
Class F, 0.6158% 3/15/22 (f)(i)	1,770,000		1,274,400
Class G, 0.6658% 3/15/22 (f)(i)	364,000		251,160
Class H, 0.8158% 3/15/22 (f)(i)	554,000		349,020
Class J, 0.9658% 3/15/22 (f)(i)	554,000		277,000
sequential payer:
2007-PW15 Class A4, 5.331% 2/11/44	10,000,000		10,546,024
Series 2003-PWR2 Class A3, 4.834% 5/11/39	465,234		472,447
Series 2004-PWR3 Class A3, 4.487% 2/11/41	1,000,282		1,016,921
Series 2006-T24 Class A1, 4.905% 10/12/41 (i)	770,305		775,909
Commercial Mortgage Securities - continued
	Principal Amount		Value
Bear Stearns Commercial Mortgage Securities Trust: - continued
sequential payer:
Series 2007 PW17 Class A4, 5.694% 6/11/50	$ 9,784,000		$ 10,592,859
Series 2007-PW16 Class A4, 5.7174% 6/11/40 (i)	2,484,000		2,701,085
Series 2007-PW17 Class A1, 5.282% 6/11/50	649,721		660,008
Series 2007-PW18:
Class A2, 5.613% 6/11/50	605,000		628,106
Class A4, 5.7% 6/11/50	20,000,000		21,609,658
Series 2007-T26 Class A1, 5.145% 1/12/45 (i)	299,711		306,207
Series 2003-PWR2 Class X2, 0.5297% 5/11/39 (f)(i)(k)	12,236,446		38,531
Series 2003-T12 Class X2, 0.4803% 8/13/39 (f)(i)(k)	21,345,582		74,473
Series 2006-PW13 Class A3, 5.518% 9/11/41	6,120,000		6,411,259
Series 2006-PW14 Class X2, 0.6525% 12/11/38 (f)(i)(k)	19,766,134		354,411
Series 2006-T22 Class A4, 5.514% 4/12/38 (i)	217,000		237,437
Series 2007-PW16:
Class B, 5.7174% 6/11/40 (f)(i)	277,000		185,035
Class C, 5.7174% 6/11/40 (f)(i)	231,000		129,449
Class D, 5.7174% 6/11/40 (f)(i)	231,000		120,204
Series 2007-PW18 Class X2, 0.3155% 6/11/50 (f)(i)(k)	151,203,462		1,822,153
Series 2007-T28:
Class A1, 5.422% 9/11/42	166,845		169,983
Class X2, 0.1785% 9/11/42 (f)(i)(k)	74,495,119		560,628
C-BASS Trust floater Series 2006-SC1 Class A, 0.5315% 5/25/36 (f)(i)	699,444		520,922
CDC Commercial Mortgage Trust Series 2002-FX1:
Class G, 6.625% 5/15/35 (f)	2,037,000		2,164,009
Class XCL, 2.1173% 5/15/35 (f)(i)(k)	18,472,747		406,883
Chase Commercial Mortgage Securities Corp. Series 2000-3 Class G 6.887% 10/15/32 (f)	3,994,000		3,980,992
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2:
Class F, 0.574% 8/15/21 (f)(i)	619,000		603,525
Class G, 0.594% 8/15/21 (f)(i)	462,000		432,173
Class H, 0.634% 8/15/21 (f)(i)	368,000		331,200
Series 2006-C5 Class AMP2, 5.5005% 10/15/49 (f)	2,622,445		2,372,439
Series 2007-C6:
Class A1, 5.622% 12/10/49 (i)	5,380,728		5,388,735
Class A2, 5.6981% 12/10/49 (i)	2,250,000		2,336,146
Class A4, 5.6981% 12/10/49 (i)	6,296,000		6,823,720
Commercial Mortgage Securities - continued
	Principal Amount		Value
Citigroup Commercial Mortgage Trust: - continued
Series 2007-FL3A Class A2, 0.4058% 4/15/22 (f)(i)	$ 3,443,000		$ 3,304,412
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer:
Series 2006-CD3 Class A3, 5.607% 10/15/48	6,300,000		6,490,458
Series 2007-CD4:
Class A2A, 5.237% 12/11/49	6,748,666		6,816,894
Class A4, 5.322% 12/11/49	29,121,000		30,693,464
Series 2007-CD4:
Class A3, 5.293% 12/11/49	1,688,000		1,737,648
Class C, 5.476% 12/11/49	3,265,000		1,142,750
Cobalt CMBS Commercial Mortgage Trust:
sequential payer Series 2007-C3 Class A3, 5.8155% 5/15/46 (i)	1,734,000		1,857,585
Series 2006-C1 Class B, 5.359% 8/15/48	5,202,000		2,861,100
COMM pass-thru certificates:
floater:
Series 2005-F10A:
Class B, 0.4958% 4/15/17 (f)(i)	5,219,000		4,853,670
Class C, 0.5358% 4/15/17 (f)(i)	1,395,000		1,283,400
Class D, 0.5758% 4/15/17 (f)(i)	802,000		729,820
Class E, 0.6358% 4/15/17 (f)(i)	247,000		219,830
Class F, 0.6758% 4/15/17 (f)(i)	140,000		120,400
Class G, 0.8158% 4/15/17 (f)(i)	140,000		114,800
Class H, 0.8858% 4/15/17 (f)(i)	140,000		107,800
Class J, 1.1158% 4/15/17 (f)(i)	108,000		75,600
Series 2005-FL11:
Class C, 0.5658% 11/15/17 (f)(i)	1,323,234		1,257,072
Class D, 0.6058% 11/15/17 (f)(i)	68,839		64,020
Class E, 0.6558% 11/15/17 (f)(i)	244,095		224,567
Class F, 0.7158% 11/15/17 (f)(i)	151,645		137,997
Class G, 0.7658% 11/15/17 (f)(i)	105,420		94,878
Series 2006-CN2A:
Class A2FL, 0.483% 2/5/19 (f)(i)	4,120,000		4,045,367
Class AJFL, 0.523% 2/5/19 (i)	1,890,000		1,836,647
Series 2006-FL12 Class AJ, 0.3958% 12/15/20 (f)(i)	2,471,000		2,285,675
sequential payer:
Series 2005-C6 Class A2, 4.999% 6/10/44 (i)	17,239		17,235
Series 2006-C8:
Class A3, 5.31% 12/10/46	4,941,000		5,134,187
Class A4, 5.306% 12/10/46	9,370,000		9,907,968
Commercial Mortgage Securities - continued
	Principal Amount		Value
COMM pass-thru certificates: - continued
sequential payer:
Series 2006-CN2A:
Class A2FX, 5.449% 2/5/19 (f)	$ 3,071,000		$ 3,071,000
Class AJFX, 5.478% 2/5/19 (f)	8,710,000		8,696,184
Series 2007-C9 Class A4, 5.8148% 12/10/49 (i)	3,836,000		4,190,937
Series 2004-LBN2 Class X2, 0.8571% 3/10/39 (f)(i)(k)	2,818,851		408
Series 2006-C8:
Class B, 5.44% 12/10/46	3,003,000		1,983,746
Class XP, 0.4911% 12/10/46 (i)(k)	17,356,977		210,792
Credit Suisse Commercial Mortgage Trust:
sequential payer:
Series 2006-C4 Class A3, 5.467% 9/15/39	4,618,000		4,938,653
Series 2007-C2:
Class A2, 5.448% 1/15/49 (i)	9,576,060		9,737,779
Class A3, 5.542% 1/15/49 (i)	3,468,000		3,642,525
Series 2007-C3 Class A4, 5.7203% 6/15/39 (i)	1,923,000		2,047,260
Series 2006-C4 Class AAB, 5.439% 9/15/39	9,869,000		10,331,431
Series 2006-C5 Class ASP, 0.6744% 12/15/39 (i)(k)	10,566,942		190,972
Series 2007-C5 Class A4, 5.695% 9/15/40 (i)	3,962,000		4,171,253
Credit Suisse First Boston Mortgage Capital Certificates floater Series 2007-TF2A Class B, 0.6158% 4/15/22 (f)(i)	6,186,000		4,825,080
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer:
Series 2001-CK6 Class B, 6.582% 8/15/36	1,734,000		1,775,831
Series 2002-CP5 Class A1, 4.106% 12/15/35	102,961		104,339
Series 2004-C1:
Class A3, 4.321% 1/15/37	291,837		295,298
Class A4, 4.75% 1/15/37	807,000		848,860
Series 2001-CK6 Class AX, 0.8911% 8/15/36 (i)(k)	4,311,620		16,905
Series 2001-CKN5 Class AX, 1.9441% 9/15/34 (f)(i)(k)	12,193,406		47,123
Series 2004-C1 Class ASP, 0.9583% 1/15/37 (f)(i)(k)	66,610,080		10,598
Series 2006-C1 Class A3, 5.5457% 2/15/39 (i)	9,156,000		9,684,804
Credit Suisse Mortgage Capital Certificates:
floater Series 2007-TFL1:
Class B, 0.4158% 2/15/22 (f)(i)	656,000		590,400
Class C:
0.4358% 2/15/22 (f)(i)	1,521,000		1,338,480
0.5358% 2/15/22 (f)(i)	543,000		456,120
Class F, 0.5858% 2/15/22 (f)(i)	1,086,000		890,520
Commercial Mortgage Securities - continued
	Principal Amount		Value
Credit Suisse Mortgage Capital Certificates: - continued
Series 2007-C1:
Class ASP, 0.4157% 2/15/40 (i)(k)	$ 32,463,287		$ 316,540
Class B, 5.487% 2/15/40 (f)(i)	2,651,000		397,650
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1:
Class D, 6.484% 3/15/33	618,000		617,681
Class G, 6.936% 3/15/33 (f)	1,141,000		1,144,553
GE Capital Commercial Mortgage Corp.:
sequential payer Series 2007-C1 Class A4, 5.543% 12/10/49	36,396,000		38,356,394
Series 2001-1 Class X1, 0.9778% 5/15/33 (f)(i)(k)	6,326,758		67,817
Series 2007-C1 Class XP, 0.2003% 12/10/49 (i)(k)	32,399,705		171,764
GMAC Commercial Mortgage Securities, Inc.:
Series 2004-C3 Class X2, 0.6179% 12/10/41 (i)(k)	16,451,905		71,977
Series 2005-C1 Class X2, 0.5542% 5/10/43 (i)(k)	6,602,309		49,499
Greenwich Capital Commercial Funding Corp.:
floater Series 2006-FL4 Class B, 0.453% 11/5/21 (f)(i)	652,000		616,289
sequential payer:
Series 2007-GG11 Class A2, 5.597% 12/10/49	3,468,000		3,634,115
Series 2007-GG9 Class A4, 5.444% 3/10/39	16,142,000		17,244,550
Series 2005-GG3 Class XP, 0.6927% 8/10/42 (f)(i)(k)	29,023,626		191,570
Series 2006-GG7:
Class A3, 5.8829% 7/10/38 (i)	4,571,000		4,822,430
Class A4, 5.8829% 7/10/38 (i)	13,274,000		14,577,965
Series 2007-GG11 Class A1, 0.4798% 12/10/49 (f)(k)	39,933,089		354,518
GS Mortgage Securities Corp. II:
floater:
Series 2006-FL8A:
Class C, 0.503% 6/6/20 (f)(i)	88,000		83,499
Class D, 0.543% 6/6/20 (f)(i)	414,000		380,985
Class E, 0.633% 6/6/20 (f)(i)	479,000		431,042
Class F, 0.703% 6/6/20 (f)(i)	681,000		599,195
Series 2007-EOP:
Class C, 2.1455% 3/6/20 (f)(i)	1,781,000		1,737,691
Class D, 2.3636% 3/6/20 (f)(i)	7,692,000		7,485,317
Class F, 2.8433% 3/6/20 (f)(i)	146,000		141,396
Class G, 3.0177% 3/6/20 (f)(i)	74,000		71,118
Class H, 3.5846% 3/6/20 (f)(i)	446,000		426,952
Class J, 4.4568% 3/6/20 (f)(i)	639,000		599,889
Commercial Mortgage Securities - continued
	Principal Amount		Value
GS Mortgage Securities Corp. II: - continued
sequential payer:
Series 2004-GG2 Class A4, 4.964% 8/10/38	$ 538,000		$ 544,458
Series 2005-GG4 Class A3, 4.607% 7/10/39	9,600,000		9,814,655
Series 2005-GG4 Class XP, 0.7101% 7/10/39 (f)(i)(k)	31,585,152		281,083
Series 2006-GG6:
Class A2, 5.506% 4/10/38	6,389,494		6,399,703
Class A3, 5.5756% 4/10/38 (i)	20,000,000		21,047,042
GS Mortgage Securities Trust sequential payer:
Series 2006-GG8:
Class A2, 5.479% 11/10/39	9,531,000		9,657,588
Class A4, 5.56% 11/10/39 (i)	34,187,000		36,808,247
Series 2007-GG10:
Class A1, 5.69% 8/10/45	85,984		87,155
Class A2, 5.778% 8/10/45	826,000		847,025
Class A4, 5.8075% 8/10/45 (i)	8,288,000		8,853,604
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2004-CB8 Class X2, 1.1472% 1/12/39 (f)(i)(k)	2,558,698		504
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class B, 0.4358% 11/15/18 (f)(i)	1,128,596		1,060,880
Class C, 0.4758% 11/15/18 (f)(i)	801,562		753,469
Class D, 0.4958% 11/15/18 (f)(i)	178,012		167,331
Class E, 0.5458% 11/15/18 (f)(i)	325,508		286,447
Class F, 0.5958% 11/15/18 (f)(i)	487,753		419,467
Class G, 0.6258% 11/15/18 (f)(i)	424,177		356,309
Class H, 0.7658% 11/15/18 (f)(i)	325,525		263,675
sequential payer:
Series 2005-CB11 Class A2, 5.016% 8/12/37	179,637		179,781
Series 2006-CB14 Class A3B, 5.4864% 12/12/44 (i)	5,157,000		5,389,635
Series 2006-LDP8 Class A4, 5.399% 5/15/45	2,725,000		2,930,939
Series 2006-LDP9:
Class A2, 5.134% 5/15/47 (i)	824,000		852,902
Class A3, 5.336% 5/15/47	10,293,000		10,939,032
Series 2007-CB18 Class A4, 5.44% 6/12/47	10,100,000		10,733,021
Series 2007-CB19 Class A4, 5.7447% 2/12/49 (i)	16,081,000		17,320,216
Series 2007-CB20 Class A4, 5.794% 2/12/51	43,296,000		47,023,547
Series 2007-LD11:
Class A2, 5.8025% 6/15/49 (i)	4,868,000		5,037,179
Class A4, 5.8175% 6/15/49 (i)	60,756,000		65,439,674
Series 2007-LDP10 Class A1, 5.122% 1/15/49	27,043		27,175
Commercial Mortgage Securities - continued
	Principal Amount		Value
JPMorgan Chase Commercial Mortgage Securities Trust: - continued
sequential payer:
Series 2007-LDPX:
Class A2 S, 5.305% 1/15/49	$ 3,920,000		$ 4,009,231
Class A3, 5.412% 1/15/49	12,612,000		13,404,503
Series 2005-CB13 Class E, 5.3502% 1/12/43 (f)(i)	877,000		90,818
Series 2006-CB17 Class A3, 5.45% 12/12/43	494,000		511,826
Series 2007-CB19:
Class B, 5.7447% 2/12/49 (i)	148,000		87,383
Class C, 5.7447% 2/12/49 (i)	388,000		198,250
Class D, 5.7447% 2/12/49 (i)	407,000		190,105
Series 2007-LDP10:
Class BS, 5.437% 1/15/49 (i)	331,000		212,005
Class CS, 5.466% 1/15/49 (i)	143,000		77,269
Class ES, 5.5411% 1/15/49 (f)(i)	896,000		227,535
JPMorgan Commercial Mortgage Finance Corp. Series 2000-C9 Class G, 6.25% 10/15/32 (f)	586,531		586,825
LB Commercial Conduit Mortgage Trust:
sequential payer Series 2007-C3 Class A4, 5.948% 7/15/44 (i)	1,403,000		1,513,880
Series 1998-C1 Class D, 6.98% 2/18/30	518,902		519,555
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2001-C2 Class A2, 6.653% 11/15/27	15,492		15,521
Series 2006-C1 Class A2, 5.084% 2/15/31	439,673		440,098
Series 2006-C6:
Class A1, 5.23% 9/15/39	148,836		148,976
Class A2, 5.262% 9/15/39 (i)	3,026,000		3,055,797
Series 2006-C7:
Class A1, 5.279% 11/15/38	227,661		229,779
Class A2, 5.3% 11/15/38	1,907,000		1,938,749
Class A3, 5.347% 11/15/38	3,172,000		3,397,960
Series 2007-C1:
Class A1, 5.391% 2/15/40 (i)	141,827		143,893
Class A4, 5.424% 2/15/40	20,427,000		21,917,070
Series 2007-C2 Class A3, 5.43% 2/15/40	4,646,000		4,958,198
Series 2001-C3 Class B, 6.512% 6/15/36	3,352,000		3,402,694
Series 2001-C7 Class D, 6.514% 11/15/33	1,907,000		1,951,496
Series 2004-C2 Class XCP, 1.0355% 3/15/36 (f)(i)(k)	19,326,007		7,178
Series 2005-C3 Class XCP, 0.7544% 7/15/40 (i)(k)	5,367,427		43,558
Series 2006-C6 Class XCP, 0.6752% 9/15/39 (i)(k)	7,990,689		132,112
Series 2007-C1 Class XCP, 0.4772% 2/15/40 (i)(k)	2,977,759		37,289
Series 2007-C6 Class A4, 5.858% 7/15/40 (i)	3,957,000		4,272,534
Commercial Mortgage Securities - continued
	Principal Amount		Value
LB-UBS Commercial Mortgage Trust: - continued
Series 2007-C7:
Class A3, 5.866% 9/15/45	$ 26,850,000		$ 28,976,211
Class XCP, 0.2848% 9/15/45 (i)(k)	133,066,679		1,309,562
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class D, 0.4958% 9/15/21 (f)(i)	555,142		499,628
Class E, 0.5558% 9/15/21 (f)(i)	2,003,583		1,763,153
Class F, 0.6058% 9/15/21 (f)(i)	965,627		820,783
Class G, 0.6258% 9/15/21 (f)(i)	1,906,832		1,544,534
Class H, 0.6658% 9/15/21 (f)(i)	492,207		383,921
Lehman Large Loan Trust Series 1997-LLI Class E, 7.3% 10/12/34	3,078,000		3,156,286
Merrill Lynch Mortgage Trust:
sequential payer:
Series 2004-MKB1 Class A2, 4.353% 2/12/42	61,306		61,296
Series 2005-MKB2 Class A2, 4.806% 9/12/42	3,003,849		3,005,652
Series 2005-CKI1 Class A3, 5.2412% 11/12/37 (i)	2,847,000		2,901,074
Series 2005-LC1 Class F, 5.3853% 1/12/44 (f)(i)	1,509,000		770,016
Series 2006-C1 Class A2, 5.6109% 5/12/39 (i)	2,050,057		2,113,079
Series 2007-C1:
Class A3, 5.8261% 6/12/50 (i)	7,212,000		7,600,431
Class A4, 5.8261% 6/12/50 (i)	6,564,000		7,126,612
Series 2008-C1 Class A4, 5.69% 2/12/51	3,701,000		3,963,762
Merrill Lynch-CFC Commercial Mortgage Trust:
floater Series 2006-4 Class A2FL, 0.3813% 12/12/49 (i)	790,171		771,502
sequential payer:
Series 2006-1 CLass A3, 5.4839% 2/12/39 (i)	1,845,000		1,917,696
Series 2006-4 Class ASB, 5.133% 12/12/49 (i)	1,490,000		1,583,242
Series 2007-5:
Class A3, 5.364% 8/12/48	676,000		695,603
Class A4, 5.378% 8/12/48	44,314,000		46,600,363
Class B, 5.479% 2/12/17	5,202,000		2,284,979
Series 2007-6:
Class A1, 5.175% 3/12/51	58,637		59,261
Class A2, 5.331% 3/12/51	20,000,000		20,453,416
Class A4, 5.485% 3/12/51 (i)	24,350,000		25,569,784
Series 2007-7 Class A4, 5.7439% 6/12/50 (i)	6,069,000		6,455,345
Series 2007-8 Class A1, 4.622% 8/12/49	280,800		283,912
Series 2007-9:
Class A2, 5.59% 9/12/49	8,299,132		8,633,787
Class A4, 5.7% 9/12/49	185,000		196,918
Commercial Mortgage Securities - continued
	Principal Amount		Value
Merrill Lynch-CFC Commercial Mortgage Trust: - continued
sequential payer:
Series 2007-9:
Class ASB, 5.644% 9/12/49	$ 12,500,000		$ 13,239,193
Series 2006-4 Class XP, 0.6112% 12/12/49 (i)(k)	31,138,433		599,160
Series 2007-6 Class B, 5.635% 3/12/51 (i)	1,734,000		849,404
Series 2007-7 Class B, 5.75% 6/12/50	1,295,000		294,025
Series 2007-8 Class A3, 5.9645% 8/12/49 (i)	1,496,000		1,619,775
Morgan Stanley Capital I Trust:
floater:
Series 2006-XLF Class C, 1.466% 7/15/19 (f)(i)	291,739		151,704
Series 2007-XCLA Class A1, 0.466% 7/17/17 (f)(i)	1,591,024		1,431,922
Series 2007-XLFA:
Class C, 0.426% 10/15/20 (f)(i)	995,000		835,800
Class D, 0.456% 10/15/20 (f)(i)	545,000		408,750
Class E, 0.516% 10/15/20 (f)(i)	681,000		442,650
Class F, 0.566% 10/15/20 (f)(i)	409,000		204,500
Class G, 0.606% 10/15/20 (f)(i)	505,000		202,000
Class H, 0.696% 10/15/20 (f)(i)	318,000		31,800
Class J, 0.846% 10/15/20 (f)(i)	363,000		18,150
Class MHRO, 0.956% 10/15/20 (f)(i)	474,271		151,767
Class MJPM, 1.266% 10/15/20 (f)(i)	20,434		15,734
Class MSTR, 0.966% 10/15/20 (f)(i)	210,691		67,421
Class NHRO, 1.156% 10/15/20 (f)(i)	721,754		158,786
Class NSTR, 1.116% 10/15/20 (f)(i)	191,450		42,119
sequential payer:
Series 2003-IQ5 Class X2, 0.9108% 4/15/38 (f)(i)(k)	4,773,322		22,457
Series 2005-IQ9 Class A3, 4.54% 7/15/56	2,575,000		2,641,986
Series 2006-T23 Class A1, 5.682% 8/12/41	232,206		232,724
Series 2007-HQ11:
Class A1, 5.246% 2/12/44	127,803		128,852
Class A31, 5.439% 2/12/44 (i)	7,959,000		8,266,120
Series 2007-IQ13 Class A1, 5.05% 3/15/44	270,910		273,661
Series 2007-IQ14 Class A1, 5.38% 4/15/49	520,467		530,028
Series 2007-IQ16 Class A4, 5.809% 12/12/49	9,680,000		10,547,639
Series 2007-T25 Class A1, 5.391% 11/12/49	201,756		205,147
Series 2007-T27 Class A4, 5.6497% 6/11/42 (i)	3,492,000		3,804,312
Series 2003-IQ6 Class X2, 0.5897% 12/15/41 (f)(i)(k)	10,261,254		51,068
Series 2005-IQ9 Class X2, 1.0924% 7/15/56 (f)(i)(k)	18,340,180		176,324
Series 2006-HQ10 Class X2, 0.4925% 11/12/41 (f)(i)(k)	8,300,643		76,935
Series 2006-HQ8 Class A3, 5.442% 3/12/44 (i)	2,689,000		2,720,588
Commercial Mortgage Securities - continued
	Principal Amount		Value
Morgan Stanley Capital I Trust: - continued
Series 2006-IQ11:
Class A3, 5.6957% 10/15/42 (i)	$ 2,729,511		$ 2,834,306
Class A4, 5.7317% 10/15/42 (i)	520,000		568,620
Series 2006-IQ12 Class B, 5.468% 12/15/43	1,734,000		1,127,100
Series 2006-T23 Class A3, 5.803% 8/12/41 (i)	885,000		944,511
Series 2007-HQ11 Class B, 5.538% 2/20/44 (i)	3,144,000		2,358,000
Series 2007-IQ14:
Class A4, 5.692% 4/15/49 (i)	2,601,000		2,755,198
Class AAB, 5.654% 4/15/49	4,940,000		5,229,567
Class B, 5.7308% 4/15/49 (i)	426,000		234,300
Providence Place Group Ltd. Partnership sequential payer Series 2000-C1 Class A1, 7.75% 7/20/16 (f)	3,405,014		3,853,454
Structured Asset Securities Corp. Series 1997-LLI Class D, 7.15% 10/12/34	158,858		162,189
TrizecHahn Office Properties Trust Series 2001-TZHA Class C4, 6.893% 5/15/16 (f)	1,078,483		1,087,050
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2005-WL5A Class K, 1.4658% 1/15/18 (f)(i)	1,041,000		999,405
Series 2006-WL7A:
Class E, 0.544% 9/15/21 (f)(i)	1,481,000		1,151,945
Class F, 0.604% 8/11/18 (f)(i)	1,532,000		1,027,097
Class G, 0.624% 8/11/18 (f)(i)	1,452,000		890,947
Class J, 0.864% 8/11/18 (f)(i)	323,000		150,338
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (f)(i)	93,624		65,537
Class AP2, 1.0658% 6/15/20 (f)(i)	157,378		102,295
Class F, 0.7458% 6/15/20 (f)(i)	3,844,000		2,498,600
Class LXR1, 0.9658% 6/15/20 (f)(i)	212,473		178,478
Class LXR2, 1.0658% 6/15/20 (f)(i)	2,620,829		2,070,455
sequential payer:
Series 2003-C7 Class A1, 4.241% 10/15/35 (f)	2,438,340		2,455,714
Series 2003-C8 Class A3, 4.445% 11/15/35	7,552,000		7,655,250
Series 2004-C14 Class A2, 4.368% 8/15/41	8,512,065		8,732,102
Series 2006-C27 Class A2, 5.624% 7/15/45	1,410,935		1,423,067
Series 2006-C29:
Class A1, 5.11% 11/15/48	356,886		359,541
Class A3, 5.313% 11/15/48	4,606,000		4,816,133
Class A4, 5.308% 11/15/48	12,000,000		12,839,238
Series 2007-C30:
Class A1, 5.031% 12/15/43	8,229		8,224
Commercial Mortgage Securities - continued
	Principal Amount		Value
Wachovia Bank Commercial Mortgage Trust: - continued
sequential payer:
Series 2007-C30:
Class A3, 5.246% 12/15/43	$ 1,489,000		$ 1,530,996
Class A4, 5.305% 12/15/43	510,000		520,703
Class A5, 5.342% 12/15/43	30,890,000		32,228,464
Series 2007-C31:
Class A1, 5.14% 4/15/47	10,406		10,399
Class A4, 5.509% 4/15/47	15,531,309		16,352,438
Series 2007-C32:
Class A2, 5.7406% 6/15/49 (i)	2,081,000		2,169,068
Class A3, 5.7456% 6/15/49 (i)	28,312,000		30,180,875
Series 2003-C6 Class G, 5.125% 8/15/35 (f)(i)	824,000		814,372
Series 2004-C15:
Class 180A, 5.5782% 10/15/41 (f)(i)	1,333,000		1,279,680
Class 180B, 5.5782% 10/15/41 (f)(i)	607,000		570,580
Series 2005-C19 Class B, 4.892% 5/15/44	1,734,000		1,602,625
Series 2005-C22:
Class B, 5.3619% 12/15/44 (i)	3,845,000		3,439,111
Class F, 5.3619% 12/15/44 (f)(i)	2,892,000		1,636,897
Series 2006-C29 Class E, 5.516% 11/15/48 (i)	1,734,000		935,880
Series 2007-C30:
Class C, 5.483% 12/15/43 (i)	5,202,000		2,692,633
Class D, 5.513% 12/15/43 (i)	2,774,000		1,128,338
Class XP, 0.4403% 12/15/43 (f)(i)(k)	19,258,232		233,581
Series 2007-C31 Class C, 5.6933% 4/15/47 (i)	4,147,000		2,137,536
Series 2007-C31A Class A2, 5.421% 4/15/47	18,990,000		19,642,158
Series 2007-C32:
Class D, 5.7456% 6/15/49 (i)	1,303,000		700,768
Class E, 5.7456% 6/15/49 (i)	2,054,000		867,404
Wachovia Bank Commercial Mortgage Trust pass-thru certificates:
sequential payer Series 2007-C33:
Class A4, 5.8994% 2/15/51 (i)	1,500,000		1,620,280
Class A5, 5.8994% 2/15/51 (i)	2,818,000		3,038,858
Series 2007-C33 Class B, 5.8994% 2/15/51 (i)	2,916,000		2,150,674
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $947,497,657)		1,187,876,802
Municipal Securities - 0.3%
	Principal Amount		Value
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 1/1/35 (i)	$ 5,700,000		$ 5,563,941
California Gen. Oblig.:
5.25% 4/1/14	9,500,000		9,915,910
6.2% 3/1/19	9,941,000		10,514,596
7.5% 4/1/34	6,800,000		7,276,816
7.55% 4/1/39	5,220,000		5,632,850
Illinois Gen. Oblig.:
Series 2010, 4.421% 1/1/15	9,780,000		9,749,193
5.665% 3/1/18 (g)	10,820,000		10,843,155
5.877% 3/1/19 (g)	9,645,000		9,670,077
TOTAL MUNICIPAL SECURITIES (Cost $67,613,364)		69,166,538
Foreign Government and Government Agency Obligations - 0.0%
Chilean Republic 7.125% 1/11/12 (Cost $2,197,776)	2,128,000		2,238,656
Supranational Obligations - 0.0%
Corporacion Andina de Fomento 5.2% 5/21/13 (Cost $504,591)	528,000		561,523
Bank Notes - 0.1%
National City Bank, Cleveland 0.3959% 3/1/13 (i)	4,203,000		4,178,051
Wachovia Bank NA 6% 11/15/17	6,320,000		7,082,129
TOTAL BANK NOTES (Cost $10,737,494)		11,260,180

Fixed-Income Funds - 22.2%
	Shares
Fidelity Mortgage Backed Securities Central Fund (j)	41,040,375		4,296,927,233
Fidelity Specialized High Income Central Fund (j)	1,990,744		203,493,860
TOTAL FIXED-INCOME FUNDS (Cost $4,388,421,441)		4,500,421,093
Preferred Securities - 0.0%
	Principal Amount		Value
FINANCIALS - 0.0%
Diversified Financial Services - 0.0%
ING Groep NV 5.775% (i)	$ 1,468,000		$ 1,325,618
MUFG Capital Finance 1 Ltd. 6.346% (i)	6,338,000		6,526,963
			7,852,581
TOTAL PREFERRED SECURITIES (Cost $5,948,652)		7,852,581
Cash Equivalents - 9.8%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at:
0.2%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (b)	$ 606,753,371		606,750,000
0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) #	1,384,444,080		1,384,436,000
TOTAL CASH EQUIVALENTS (Cost $1,991,186,000)		1,991,186,000
TOTAL INVESTMENT PORTFOLIO - 109.1% (Cost $21,327,341,166)			22,131,851,666
NET OTHER ASSETS (LIABILITIES) - (9.1)%			(1,837,614,067)
NET ASSETS - 100%		$ 20,294,237,599

Swap Agreements
	Expiration Date	Notional Amount
Interest Rate Swaps
Receive semi-annually a fixed rate equal to 1.2857% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	June 2012	$ 325,000,000	3,982,258

Legend

(a) Non-income producing

(b) Includes investment made with cash collateral received from securities on loan.

(c) Non-income producing - Security is in default.

(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(e) Security or a portion of the security is on loan at period end.

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $912,286,400 or 4.5% of net assets.

(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(h) A portion of the security is subject to a forward commitment to sell.

(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(j) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.

(k) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value
$606,750,000 due 3/01/11 at 0.20%
Barclays Capital, Inc.	$ 606,750,000
$1,384,436,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 115,704,464
Bank of America NA	102,848,412
Barclays Capital, Inc.	57,273,710
Credit Agricole Securities (USA), Inc.	51,424,206
Deutsche Bank Securities, Inc.	59,007,014
Goldman, Sachs & Co.	12,856,052
HSBC Securities (USA), Inc.	154,272,619
Repurchase Agreement / Counterparty	Value
ING Financial Markets LLC	$ 95,134,781
J.P. Morgan Securities, Inc.	154,272,619
Merrill Lynch Government Securities, Inc.	46,281,786
Merrill Lynch, Pierce, Fenner & Smith, Inc.	70,999,756
Mizuho Securities USA, Inc.	282,833,133
RBC Capital Markets Corp.	12,856,052
Societe Generale, New York Branch	102,848,412
Wells Fargo Securities LLC	65,822,984
	$ 1,384,436,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Corporate Bond 1-10 Year Central Fund	$ 6,151,882
Fidelity Mortgage Backed Securities Central Fund	47,236,555
Fidelity Specialized High Income Central Fund	6,728,008
Total	$ 60,116,445

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows:

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Corporate Bond 1-10 Year Central Fund	$ 496,693,915	$ -	$ 493,317,907*	$ -	0.0%
Fidelity Mortgage Backed Securities Central Fund	2,690,638,106	1,636,345,483	-	4,296,927,233	43.2%
Fidelity Specialized High Income Central Fund	188,755,230	6,728,008	-	203,493,860	46.2%
Total	$ 3,376,087,251	$ 1,643,073,491	$ 493,317,907	$ 4,500,421,093

* Includes the value of shares redeemed through in-kind transactions. See Note 7 of the Notes to Financial Statements.

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 4,131,913,035	$ -	$ 4,131,913,035	$ -
U.S. Government and Government Agency Obligations	6,887,315,297	-	6,887,315,297	-
U.S. Government Agency - Mortgage Securities	2,593,153,089	-	2,593,153,089	-
Asset-Backed Securities	587,916,521	-	575,154,108	12,762,413
Collateralized Mortgage Obligations	160,990,351	-	157,399,078	3,591,273
Commercial Mortgage Securities	1,187,876,802	-	1,140,518,123	47,358,679
Municipal Securities	69,166,538	-	69,166,538	-
Foreign Government and Government Agency Obligations	2,238,656	-	2,238,656	-
Supranational Obligations	561,523	-	561,523	-
Bank Notes	11,260,180	-	11,260,180	-
Fixed-Income Funds	4,500,421,093	4,500,421,093	-	-
Preferred Securities	7,852,581	-	7,852,581	-
Cash Equivalents	1,991,186,000	-	1,991,186,000	-
Total Investments in Securities:	$ 22,131,851,666	$ 4,500,421,093	$ 17,567,718,208	$ 63,712,365
Derivative Instruments:
Assets
Swap Agreements	$ 3,982,258	$ -	$ 3,982,258	$ -
Other Financial Instruments:
Forward Commitment	$ (5,136,678)	$ -	$ (5,136,678)	$ -

The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:

Investments in Securities:
Beginning Balance	$ 72,787,535
Total Realized Gain (Loss)	1,272,451
Total Unrealized Gain (Loss)	8,942,713
Cost of Purchases	11,800,435
Proceeds of Sales	(3,835,986)
Amortization/Accretion	553,629
Transfers in to Level 3	7,502,736
Transfers out of Level 3	(35,311,148)
Ending Balance	$ 63,712,365
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 8,817,318

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, and includes the value of securities received through affiliated in-kind transactions. See Note 7 of the Notes to Financial Statements. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by risk exposure as of February 28, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Risk Exposure / Derivative Type	Value
	Asset	Liability
Interest Rate Risk
Swap Agreements (a)	$ 3,982,258	$ -

(a) Value is disclosed on the Statement of Assets and Liabilities in the Unrealized Appreciation and Unrealized Depreciation on Swap Agreements line-items.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $598,056,840 and repurchase agreements of $1,991,186,000) - See accompanying schedule: Unaffiliated issuers (cost $16,938,919,725)	$ 17,631,430,573
Fidelity Central Funds (cost $4,388,421,441)	4,500,421,093
Total Investments (cost $21,327,341,166)		$ 22,131,851,666
Commitment to sell securities on a delayed delivery basis	(1,330,819,260)
Receivable for securities sold on a delayed delivery basis	1,325,682,582	(5,136,678)
Receivable for investments sold, regular delivery		600,512,445
Cash		1,158,807
Receivable for fund shares sold		656,628
Interest receivable		97,543,111
Distributions receivable from Fidelity Central Funds		8,974,531
Unrealized appreciation on swap agreements		3,982,258
Receivable from investment adviser for expense reductions		631,945
Total assets		22,840,174,713
Liabilities
Payable for investments purchased Regular delivery	$ 487,862,242
Delayed delivery	1,329,092,328
Payable for fund shares redeemed	115,163,981
Accrued management fee	5,629,404
Other affiliated payables	1,436,576
Other payables and accrued expenses	2,583
Collateral on securities loaned, at value	606,750,000
Total liabilities		2,545,937,114
Net Assets		$ 20,294,237,599
Net Assets consist of:
Paid in capital		$ 19,419,825,951
Undistributed net investment income		68,022,744
Accumulated undistributed net realized gain (loss) on investments		3,032,824
Net unrealized appreciation (depreciation) on investments		803,356,080
Net Assets		$ 20,294,237,599
Series Investment Grade Bond: Net Asset Value, offering price and redemption price per share ($15,884,026,228 ÷ 1,391,802,238 shares)		$ 11.41
Class F: Net Asset Value, offering price and redemption price per share ($4,410,211,371 ÷ 386,307,120 shares)		$ 11.42

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

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Financial Statements - continued

Statement of Operations

Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 243,530
Interest		250,008,708
Income from Fidelity Central Funds		60,116,445
Total income		310,368,683
Expenses
Management fee	$ 30,406,231
Transfer agent fees	8,616,036
Independent trustees' compensation	32,252
Miscellaneous	30,065
Total expenses before reductions	39,084,584
Expense reductions	(1,740,611)	37,343,973
Net investment income (loss)		273,024,710
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	156,013,329
Fidelity Central Funds	13,096,029
Swap agreements	1,398,163
Total net realized gain (loss)		170,507,521
Change in net unrealized appreciation (depreciation) on: Investment securities	(421,823,031)
Swap agreements	(547,755)
Delayed delivery commitments	(4,389,472)
Total change in net unrealized appreciation (depreciation)		(426,760,258)
Net gain (loss)		(256,252,737)
Net increase (decrease) in net assets resulting from operations		$ 16,771,973

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

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Statement of Changes in Net Assets

	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 273,024,710	$ 554,244,962
Net realized gain (loss)	170,507,521	353,707,217
Change in net unrealized appreciation (depreciation)	(426,760,258)	629,494,142
Net increase (decrease) in net assets resulting from operations	16,771,973	1,537,446,321
Distributions to shareholders from net investment income	(282,577,599)	(534,029,234)
Distributions to shareholders from net realized gain	(464,316,023)	(146,409,587)
Total distributions	(746,893,622)	(680,438,821)
Share transactions - net increase (decrease)	4,756,273,618	3,528,208,062
Total increase (decrease) in net assets	4,026,151,969	4,385,215,562
Net Assets
Beginning of period	16,268,085,630	11,882,870,068
End of period (including undistributed net investment income of $68,022,744 and undistributed net investment income of $77,575,633, respectively)	$ 20,294,237,599	$ 16,268,085,630

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

Semiannual Report

Financial Highlights - Series Investment Grade Bond

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009 G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.94	$ 11.29	$ 10.00
Income from Investment Operations
Net investment income (loss) D	.181	.432	.486
Net realized and unrealized gain (loss)	(.190)	.765	1.146
Total from investment operations	(.009)	1.197	1.632
Distributions from net investment income	(.188)	(.422)	(.332)
Distributions from net realized gain	(.333)	(.125)	(.010)
Total distributions	(.521)	(.547)	(.342)
Net asset value, end of period	$ 11.41	$ 11.94	$ 11.29
Total Return B, C	(.08)%	10.90%	16.54%
Ratios to Average Net Assets E, H
Expenses before reductions	.47% A	.48%	.50% A
Expenses net of fee waivers, if any	.45% A	.45%	.45% A
Expenses net of all reductions	.45% A	.45%	.45% A
Net investment income (loss)	3.15% A	3.75%	5.07% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 15,884,026	$ 14,060,678	$ 11,881,921
Portfolio turnover rate F	196% A, I	109% I	156% A, I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period October 8, 2008 (commencement of operations) to August 31, 2009.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class F

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009 G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.95	$ 11.30	$ 10.96
Income from Investment Operations
Net investment income (loss) D	.185	.442	.104
Net realized and unrealized gain (loss)	(.189)	.767	.323
Total from investment operations	(.004)	1.209	.427
Distributions from net investment income	(.193)	(.434)	(.087)
Distributions from net realized gain	(.333)	(.125)	-
Total distributions	(.526)	(.559)	(.087)
Net asset value, end of period	$ 11.42	$ 11.95	$ 11.30
Total Return B, C	(.03)%	11.00%	3.91%
Ratios to Average Net Assets E, H
Expenses before reductions	.35% A	.35%	.35% A
Expenses net of fee waivers, if any	.35% A	.35%	.35% A
Expenses net of all reductions	.35% A	.35%	.35% A
Net investment income (loss)	3.25% A	3.85%	5.63% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 4,410,211	$ 2,207,408	$ 949
Portfolio turnover rate F	196% A, I	109% I	156% A, I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period June 26, 2009 (commencement of operations) to August 31, 2009.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I The portfolio turnover rate excludes liquidations and redemptions in-kind from Affiliated Central Funds.

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

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Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

1. Organization.

Fidelity Series Investment Grade Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Series Investment Grade Bond and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which FMR or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.

2. Investments in Fidelity Central Funds.

The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The following summarizes the Fund's investment in each Fidelity Central Fund.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Investments in Fidelity Central Funds - continued

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity Corporate Bond 1-10 Year Central Fund	Fidelity Investment Money Management, Inc. (FIMM)	Seeks a high level of income by normally investing in investment-grade corporate bonds and other corporate debt securities and repurchase agreements for those securities.	Repurchase Agreements Restricted Securities Swap Agreements
Fidelity Mortgage Backed Securities Central Fund	FIMM	Seeks a high level of income by normally investing in investment-grade mortgage-related securities and repurchase agreements for those securities.	Delayed Delivery & When Issued Securities Futures Repurchase Agreements Swap Agreements
Fidelity Specialized High Income Central Fund	FMR Co., Inc. (FMRC)	Seeks a high level of current income by normally investing in income-producing debt securities, with an emphasis on lower-quality debt securities.	Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities

An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including security valuation policies) of those funds are available on the SEC web site or upon request.

3. 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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

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3. Significant Accounting Policies - continued

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011, for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, bank notes, foreign government and government agency obligations, municipal securities, preferred securities, supranational obligations and U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Security Valuation - continued

Swaps are marked-to-market daily based on valuations from independent pricing services or dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Pricing services utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates and, as a result, swaps are generally categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investments in open-end mutual funds, including the Fidelity Central Funds,are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The principal value on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal value. The adjustments to principal due to inflation are reflected as increases or decreases to interest income even though principal is not received until maturity. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds) and losses deferred due to wash sales.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 1,042,063,803
Gross unrealized depreciation	(145,519,970)
Net unrealized appreciation (depreciation) on securities and other investments	$ 896,543,833
Tax cost	$ 21,235,307,833

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

5. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including swap agreements, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Interest Rate Risk Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund.

Semiannual Report

5. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain over-the-counter derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the counterparty. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk, the Fund offsets certain payables and/or receivables with collateral. Collateral in the form of cash or securities, if required, is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the swap counterparty and the Fund's custodian bank, and is identified in the Schedule of Investments. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.

Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period.

Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Interest Rate Risk
Swap Agreements (a)	$ 1,398,163	$ (547,755)

(a) A summary of the value of derivatives by risk exposure as of period end is included at the end of the Schedule of Investments and is representative of activity for the period.

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Notes to Financial Statements (Unaudited) - continued

5. Derivative Instruments - continued

Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.

Details of swaps open at period end are included in the Schedule of Investments under the caption "Swap Agreements." Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation or (depreciation) and reflected in the Statement of Assets and Liabilities. Any upfront payments made or received upon entering a swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded as realized gain or (loss) ratably over the term of the swap. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

Risks of loss include interest rate risk. In addition, there is the risk of failure by the counterparty to perform under the terms of the agreement and lack of liquidity in the market.

Interest Rate Swaps. Interest rate swaps are agreements between counterparties to exchange cash flows, one based on a fixed rate, and the other on a floating rate. The Fund entered into interest rate swaps to manage its exposure to interest rate changes. Changes in interest rates can have an effect on both the value of bond holdings as well as the amount of interest income earned. In general, the value of bonds can fall when interest rates rise and can rise when interest rates fall.

6. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, U.S. government securities and in-kind transactions, aggregated $3,229,230,680 and $975,813,313, respectively.

7. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .35% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and certain exceptions such as transfer agent and interest expense, including commitment fees.

Semiannual Report

7. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Investment Grade Bond. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

	Amount	% of Average Net Assets*
Series Investment Grade Bond	$ 8,616,036	.12

* Annualized

Exchange In-Kind. During the period, the Fund redeemed in-kind 4,549,728 shares of Fidelity Corporate Bond 1-10 Year Central Fund ("1-10 Year"), a Fidelity Central Fund in which the Fund invested, valued at $493,317,907 in exchange for cash and securities, including accrued interest. Realized gain (loss) of $13,097,467 on the Fund's redemption of 1-10 Year shares is included in the accompanying Statement of Operations as "Realized gain (loss) on Fidelity Central Funds." Because 1-10 Year was a partnership for federal income tax purposes, the redemption generally was tax free to the Fund.

8. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $30,065 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

9. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

9. Security Lending - continued

experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $195,780.

10. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser
Series Investment Grade Bond	.45%	$ 1,739,937

In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $674.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010
From net investment income
Series Investment Grade Bond	$ 232,442,913	$ 502,064,508
Class F	50,134,686	31,964,726
Total	$ 282,577,599	$ 534,029,234
From net realized gain
Series Investment Grade Bond	$ 390,541,227	$ 144,072,070
Class F	73,774,796	2,337,517
Total	$ 464,316,023	$ 146,409,587

Semiannual Report

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010	Six months ended February 28, 2011	Year ended August 31, 2010
Series Investment Grade Bond
Shares sold	339,262,929	456,565,125	$ 3,887,346,396	$ 5,245,451,728
Reinvestment of distributions	53,679,355	56,145,905	622,984,140	646,136,578
Shares redeemed	(178,608,840)	(387,299,981)	(2,070,335,034)	(4,496,711,469)
Net increase (decrease)	214,333,444	125,411,049	$ 2,439,995,502	$ 1,394,876,837
Class F
Shares sold	206,440,425	202,455,008	$ 2,372,009,420	$ 2,340,966,037
Reinvestment of distributions	10,694,014	2,951,002	123,909,482	34,302,243
Shares redeemed	(15,621,705)	(20,695,650)	(179,640,786)	(241,937,055)
Net increase (decrease)	201,512,734	184,710,360	$ 2,316,278,116	$ 2,133,331,225

13. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

At the end of the period, mutual funds managed by FMR or an FMR affiliate were the owners of record of all of the outstanding shares of the Fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Series Investment Grade Bond Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for the retail class, as well as the fund's relative investment performance for the retail class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. Because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2009, the total return of the retail class of the fund, the total return of a broad-based securities market index ("benchmark"), and a range of total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. (Class F of the fund had less than one year of performance as of December 31, 2009.) The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below the chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the retail class of the fund.

Semiannual Report

Fidelity Series Investment Grade Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the third quartile for the period shown. The Board also noted that the investment performance of the retail class of the fund compared favorably to its benchmark for the period shown. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board noted that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board. For a more meaningful comparison of management fees, the fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for "fund-level" non-management expenses (including pricing and bookkeeping fees and fees paid to non-affiliated custodians) from the fund's management fee. In this regard, the Board realizes that net management fees can vary from year to year because of differences in "fund level" non-management expenses. The Board noted, however, that FMR does not pay transfer agent fees or other "class-level" expenses under the fund's management contract.

Semiannual Report

Fidelity Series Investment Grade Bond Fund

The Board noted that the fund's hypothetical net management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's hypothetical net management fee as well as the fund's gross management fee. The Board also considered other "fund-level" expenses, such as pricing and bookkeeping fees and custodial, legal, and audit fees. The Board also considered other "class-level" expenses, such as transfer agent fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board also considered that the current contractual arrangements for the fund limit the total expenses to 45 basis points. The fees and expenses payable under these contractual arrangements may not be increased without the approval of the Board.

The Board noted that the total expenses of each class ranked below its competitive median for the period.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Semiannual Report

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.

By Phone

Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

(phone_graphic)

Fidelity Workplace
Investing
1-800-835-5092

By PC

Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.

(computer_graphic)

Fidelity's Web Site
www.401k.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money Management, Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Management & Research (Hong Kong) Limited

Fidelity Management & Research (Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York Mellon

New York, NY

LIG-SANN-0411
1.873110.102

Fidelity®
Short-Term Bond
Fund

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Semiannual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Short-Term Bond	.45%
Actual		$ 1,000.00	$ 1,007.00	$ 2.24
HypotheticalA		$ 1,000.00	$ 1,022.56	$ 2.26
Class F	.35%
Actual		$ 1,000.00	$ 1,006.30	$ 1.74
HypotheticalA		$ 1,000.00	$ 1,023.06	$ 1.76

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Semiannual Report

1.Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations † 57.4%		U.S. Government and U.S. Government Agency Obligations † 59.7%
	AAA 11.9%		AAA 12.9%
	AA 9.3%		AA 8.3%
	A 8.1%		A 7.3%
	BBB 8.9%		BBB 9.9%
	BB and Below 0.8%		BB and Below 0.9%
	Not Rated 0.6%		Not Rated 0.3%
	Short-Term Investments and Net Other Assets 3.0%		Short-Term Investments and Net Other Assets 0.7%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	2.1	2.4

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	1.8	1.9

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011 *			As of August 31, 2010 **
	Corporate Bonds 24.2%			Corporate Bonds 23.6%
	U.S. Government and U.S. Government Agency Obligations † 57.4%			U.S. Government and U.S. Government Agency Obligations † 59.7%
	Asset-Backed Securities 9.2%			Asset-Backed Securities 9.7%
	CMOs and Other Mortgage Related Securities 5.5%			CMOs and Other Mortgage Related Securities 5.7%
	Municipal Bonds 0.1%			Municipal Bonds 0.1%
	Other Investments 0.6%			Other Investments 0.5%
	Short-Term Investments and Net Other Assets 3.0%			Short-Term Investments and Net Other Assets 0.7%
* Foreign investments * Futures and Swaps		8.1% 0.0%	** Foreign investments ** Futures and Swaps		8.2% 0.0%

^† Includes FDIC Guaranteed Corporate Securities.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 24.2%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.6%
Auto Components - 0.4%
DaimlerChrysler NA Holding Corp.:
5.75% 9/8/11	$ 16,316		$ 16,742
5.875% 3/15/11	9,595		9,612
6.5% 11/15/13	6,814		7,680
			34,034
Diversified Consumer Services - 0.0%
Yale University 2.9% 10/15/14	5,340		5,540
Household Durables - 0.2%
Fortune Brands, Inc. 3% 6/1/12	6,820		6,900
Whirlpool Corp. 6.125% 6/15/11	7,250		7,358
			14,258
Media - 0.8%
COX Communications, Inc. 7.125% 10/1/12	18,400		20,029
NBC Universal, Inc. 3.65% 4/30/15 (f)	7,820		7,992
News America, Inc. 5.3% 12/15/14	9,474		10,494
Time Warner Cable, Inc. 5.4% 7/2/12	20,680		21,818
Time Warner, Inc. 3.15% 7/15/15	11,388		11,563
			71,896
Specialty Retail - 0.2%
Staples, Inc.:
7.375% 10/1/12	6,373		6,929
7.75% 4/1/11	8,050		8,093
			15,022
TOTAL CONSUMER DISCRETIONARY			140,750
CONSUMER STAPLES - 1.4%
Beverages - 0.7%
Anheuser-Busch InBev Worldwide, Inc.:
2.5% 3/26/13	17,822		18,201
7.2% 1/15/14 (f)	11,100		12,706
Coca-Cola Enterprises, Inc. 1.125% 11/12/13	8,628		8,518
Diageo Capital PLC 5.2% 1/30/13	2,405		2,585
Diageo Finance BV 5.5% 4/1/13	8,519		9,247
SABMiller PLC 6.2% 7/1/11 (f)	8,000		8,143
The Coca-Cola Co. 3.625% 3/15/14	590		626
			60,026
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Food & Staples Retailing - 0.1%
Wal-Mart Stores, Inc. 2.25% 7/8/15	$ 9,508		$ 9,499
Food Products - 0.4%
Cargill, Inc. 5.2% 1/22/13 (f)	2,175		2,323
Kraft Foods, Inc.:
2.625% 5/8/13	27,534		28,274
5.625% 11/1/11	986		1,017
			31,614
Tobacco - 0.2%
Altria Group, Inc.:
4.125% 9/11/15	7,500		7,796
8.5% 11/10/13	8,000		9,425
			17,221
TOTAL CONSUMER STAPLES			118,360
ENERGY - 1.6%
Energy Equipment & Services - 0.0%
Weatherford International Ltd. 5.15% 3/15/13	401		424
Oil, Gas & Consumable Fuels - 1.6%
Cenovus Energy, Inc. 4.5% 9/15/14	11,287		12,159
Delek & Avner-Yam Tethys Ltd. 5.326% 8/1/13 (f)	4,790		4,803
EnCana Corp. 6.3% 11/1/11	936		971
Enterprise Products Operating LP 4.6% 8/1/12	9,289		9,688
Gazstream SA 5.625% 7/22/13 (f)	4,565		4,719
Kaneb Pipe Line Operations Participation LP 7.75% 2/15/12	8,710		9,158
Marathon Petroleum Corp. 3.5% 3/1/16 (f)	7,520		7,560
Nexen, Inc. 5.05% 11/20/13	2,438		2,600
NGPL PipeCo LLC 6.514% 12/15/12 (f)	6,699		7,221
Petrobras International Finance Co. Ltd. 3.875% 1/27/16	8,216		8,297
Plains All American Pipeline LP/PAA Finance Corp. 4.25% 9/1/12	9,200		9,561
Ras Laffan Liquefied Natural Gas Co. Ltd. III 4.5% 9/30/12 (f)	3,544		3,664
Rockies Express Pipeline LLC 6.25% 7/15/13 (f)	8,777		9,432
Shell International Finance BV 1.875% 3/25/13	14,810		15,108
Southeast Supply Header LLC 4.85% 8/15/14 (f)	10,282		10,783
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Total Capital Canada Ltd. 1.625% 1/28/14	$ 8,680		$ 8,700
XTO Energy, Inc. 4.9% 2/1/14	8,743		9,585
			134,009
TOTAL ENERGY			134,433
FINANCIALS - 14.3%
Capital Markets - 2.5%
Goldman Sachs Group, Inc.:
3.625% 8/1/12	21,000		21,706
3.625% 2/7/16	10,300		10,286
3.7% 8/1/15	7,094		7,195
4.75% 7/15/13	5,401		5,749
5.25% 10/15/13	5,483		5,941
Janus Capital Group, Inc. 6.125% 9/15/11 (d)	5,672		5,767
JPMorgan Chase & Co.:
1.1031% 1/24/14 (j)	15,000		15,094
2.05% 1/24/14	34,170		34,275
Merrill Lynch & Co., Inc.:
5.45% 2/5/13	7,360		7,842
5.45% 7/15/14	4,605		4,960
Morgan Stanley:
1.9025% 1/24/14 (j)	8,740		8,868
2.875% 1/24/14	8,670		8,739
4.2% 11/20/14	4,995		5,187
6% 5/13/14	12,430		13,601
Northern Trust Corp. 4.625% 5/1/14	1,346		1,466
Royal Bank of Scotland PLC:
3.25% 1/11/14	8,500		8,589
3.4% 8/23/13	8,000		8,155
The Bank of New York, Inc. 4.3% 5/15/14	12,445		13,419
UBS AG Stamford Branch:
1.3044% 1/28/14 (j)	6,500		6,567
2.25% 1/28/14	16,500		16,429
			209,835
Commercial Banks - 5.3%
ANZ Banking Group Ltd. 2.125% 1/10/14 (f)	17,000		17,099
Bank of Montreal 2.125% 6/28/13	15,550		15,875
Bank of Nova Scotia 2.25% 1/22/13	24,370		24,952
Barclays Bank PLC 2.375% 1/13/14	22,100		22,211
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Canadian Imperial Bank of Commerce 1.45% 9/13/13	$ 13,791		$ 13,747
Commonwealth Bank of Australia 0.8538% 3/19/13 (f)(j)	15,350		15,381
Credit Agricole SA 0.4834% 6/7/11 (f)(j)	10,000		9,990
Credit Suisse New York Branch 2.2% 1/14/14	31,458		31,587
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (f)(j)	1,144		1,123
Fifth Third Bancorp 3.625% 1/25/16	4,799		4,819
Fifth Third Bank 0.4235% 5/17/13 (j)	1,500		1,478
ING Bank NV:
2% 10/18/13 (f)	5,000		4,951
2.65% 1/14/13 (f)	14,190		14,225
Manufacturers & Traders Trust Co. 1.8028% 4/1/13 (j)	485		484
Marshall & Ilsley Bank 6.375% 9/1/11	9,120		9,306
Nordea Bank AB 1.75% 10/4/13 (f)	12,260		12,190
PNC Funding Corp.:
3% 5/19/14	8,490		8,712
3.625% 2/8/15	8,119		8,405
Rabobank Nederland NV 1.85% 1/10/14	25,541		25,572
Regions Financial Corp. 4.875% 4/26/13	7,700		7,739
Royal Bank of Canada 1.125% 1/15/14	17,298		17,105
Royal Bank of Scotland PLC 1.5% 3/30/12 (f)	17,050		17,199
Santander US Debt SA Unipersonal 2.485% 1/18/13 (f)	13,200		12,950
Sumitomo Mitsui Banking Corp. 1.95% 1/14/14 (f)	18,000		18,018
SunTrust Bank 6.375% 4/1/11	3,000		3,012
Svenska Handelsbanken AB 2.875% 9/14/12 (f)	22,266		22,752
U.S. Bancorp:
1.375% 9/13/13	8,130		8,133
4.2% 5/15/14	8,510		9,093
Union Bank NA Mtn Bank Nts Be 2.125% 12/16/13	26,150		26,233
Wells Fargo & Co.:
3.625% 4/15/15	7,400		7,666
3.75% 10/1/14	12,527		13,193
4.375% 1/31/13	22,251		23,558
5.25% 10/23/12	3,290		3,507
Westpac Banking Corp.:
0.8531% 4/8/13 (f)(j)	8,700		8,720
1.85% 12/9/13	10,339		10,370
2.1% 8/2/13	3,181		3,216
			454,571
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Consumer Finance - 2.3%
American Honda Finance Corp.:
1.625% 9/20/13 (f)	$ 8,190		$ 8,209
2.375% 3/18/13 (f)	3,000		3,041
Capital One Financial Corp.:
5.7% 9/15/11	11,765		12,076
7.375% 5/23/14	13,000		14,982
Caterpillar Financial Services Corp.:
1.55% 12/20/13	12,000		12,043
2% 4/5/13	5,668		5,749
General Electric Capital Corp.:
1.875% 9/16/13	31,809		31,920
2.1% 1/7/14	17,406		17,459
2.25% 11/9/15	4,902		4,751
2.8% 1/8/13	1,270		1,303
3.5% 8/13/12	48,785		50,458
3.5% 6/29/15	2,968		3,051
Household Finance Corp. 6.375% 10/15/11	5,378		5,564
HSBC Finance Corp. 5.9% 6/19/12	6,125		6,468
John Deere Capital Corp.:
1.6% 3/3/14	8,550		8,542
1.875% 6/17/13	12,414		12,588
			198,204
Diversified Financial Services - 2.3%
BB&T Corp.:
3.2% 3/15/16	5,000		4,993
3.375% 9/25/13	6,700		7,002
BNP Paribas 2.125% 12/21/12	11,280		11,449
BP Capital Markets PLC:
1.55% 8/11/11	1,000		1,004
3.125% 3/10/12	8,461		8,652
Citigroup, Inc.:
1.7531% 1/13/14 (j)	12,990		13,183
2.312% 8/13/13 (j)	8,191		8,409
4.75% 5/19/15	8,020		8,469
5.125% 5/5/14	4,158		4,470
5.5% 4/11/13	6,500		6,968
6.375% 8/12/14	19,196		21,418
6.5% 8/19/13	9		10
Deutsche Bank AG London Branch 2.375% 1/11/13	29,670		30,166
Iberbond 2004 PLC 4.826% 12/24/17 (m)	6,069		5,948
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Diversified Financial Services - continued
JPMorgan Chase & Co. 3.4% 6/24/15	$ 11,433		$ 11,592
MassMutual Global Funding II 3.625% 7/16/12 (f)	4,300		4,447
New York Life Global Fund:
2.25% 12/14/12 (f)	6,570		6,719
5.25% 10/16/12 (f)	10,930		11,695
OAO Industry & Construction Bank 5.01% 9/29/15 (Issued by Or-ICB SA for OAO Industry & Construction Bank) (j)	1,425		1,389
Pricoa Global Funding I 5.45% 6/11/14 (f)	5,730		6,243
Prime Property Funding, Inc.:
5.35% 4/15/12 (f)	628		638
5.5% 1/15/14 (f)	144		151
USAA Capital Corp. 3.5% 7/17/14 (f)	9,044		9,380
Volkswagen International Finance NV 1.625% 8/12/13 (f)	6,457		6,495
Whirlpool Corp. 8% 5/1/12	7,298		7,823
ZFS Finance USA Trust IV 5.875% 5/9/62 (f)(j)	500		498
			199,211
Insurance - 0.8%
Berkshire Hathaway Finance Corp. 1.5% 1/10/14	8,340		8,340
Berkshire Hathaway, Inc. 2.125% 2/11/13	14,470		14,793
Metropolitan Life Global Funding I:
2.5% 1/11/13 (f)	11,430		11,647
2.5% 9/29/15 (f)	5,000		4,878
2.875% 9/17/12 (f)	11,731		11,996
Monumental Global Funding II 5.65% 7/14/11 (f)	146		148
Prudential Financial, Inc. 3.625% 9/17/12	9,639		9,949
Unum Group 7.625% 3/1/11	6,335		6,335
			68,086
Real Estate Investment Trusts - 0.2%
AvalonBay Communities, Inc. 5.5% 1/15/12	570		591
Developers Diversified Realty Corp. 5.375% 10/15/12	1,885		1,952
Duke Realty LP 4.625% 5/15/13	114		118
Equity One, Inc. 6.25% 12/15/14	8,778		9,417
Federal Realty Investment Trust 5.4% 12/1/13	150		162
HRPT Properties Trust 0.9019% 3/16/11 (j)	3,745		3,745
			15,985
Real Estate Management & Development - 0.3%
Colonial Properties Trust 4.8% 4/1/11	7		7
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Duke Realty LP 5.625% 8/15/11	$ 5,464		$ 5,551
ERP Operating LP:
5.2% 4/1/13	3,570		3,824
5.5% 10/1/12	117		125
Liberty Property LP 6.375% 8/15/12	7,473		7,958
Simon Property Group LP:
4.2% 2/1/15	2,715		2,860
5.3% 5/30/13	7,322		7,929
			28,254
Thrifts & Mortgage Finance - 0.6%
Bank of America Corp.:
1.7138% 1/30/14 (j)	12,000		12,150
3.7% 9/1/15	10,610		10,723
Countrywide Financial Corp. 5.8% 6/7/12	16,258		17,143
U.S. Central Federal Credit Union 1.9% 10/19/12	9,870		10,070
			50,086
TOTAL FINANCIALS			1,224,232
HEALTH CARE - 0.2%
Health Care Providers & Services - 0.1%
Express Scripts, Inc. 5.25% 6/15/12	10,265		10,764
Pharmaceuticals - 0.1%
Wyeth 5.5% 2/1/14	4,108		4,557
TOTAL HEALTH CARE			15,321
INDUSTRIALS - 0.5%
Aerospace & Defense - 0.2%
BAE Systems Holdings, Inc.:
4.95% 6/1/14 (f)	7,300		7,785
6.4% 12/15/11 (f)	8,377		8,748
			16,533
Airlines - 0.0%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	57		57
Continental Airlines, Inc. 6.795% 2/2/20	167		168
			225
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INDUSTRIALS - continued
Commercial Services & Supplies - 0.2%
R.R. Donnelley & Sons Co. 5.625% 1/15/12	$ 16,805		$ 17,152
Industrial Conglomerates - 0.1%
Covidien International Finance SA:
1.875% 6/15/13	7,770		7,855
5.45% 10/15/12	3,003		3,215
			11,070
TOTAL INDUSTRIALS			44,980
INFORMATION TECHNOLOGY - 0.3%
Office Electronics - 0.3%
Xerox Corp.:
4.25% 2/15/15	8,040		8,463
5.5% 5/15/12	9,707		10,198
6.875% 8/15/11	4,390		4,508
			23,169
MATERIALS - 0.7%
Chemicals - 0.3%
Dow Chemical Co. 4.85% 8/15/12	29,758		31,333
Metals & Mining - 0.4%
Anglo American Capital PLC 2.15% 9/27/13 (f)	16,540		16,694
BHP Billiton Financial (USA) Ltd. 5.125% 3/29/12	3,598		3,768
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (f)	3,300		3,551
Rio Tinto Finance (USA) Ltd. 8.95% 5/1/14	6,662		8,065
			32,078
TOTAL MATERIALS			63,411
TELECOMMUNICATION SERVICES - 2.2%
Diversified Telecommunication Services - 1.6%
AT&T Broadband Corp. 8.375% 3/15/13	3,140		3,561
AT&T, Inc.:
2.5% 8/15/15	10,110		10,012
4.95% 1/15/13	10,874		11,637
6.7% 11/15/13	2,385		2,699
Deutsche Telekom International Financial BV 5.375% 3/23/11	20,000		20,054
France Telecom SA 4.375% 7/8/14	12,631		13,591
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
SBC Communications, Inc.:
5.1% 9/15/14	$ 7,403		$ 8,146
5.875% 2/1/12	4,923		5,159
Telecom Italia Capital SA 6.175% 6/18/14	16,200		17,243
Telefonica Emisiones SAU 2.582% 4/26/13	19,310		19,448
Verizon New England, Inc. 6.5% 9/15/11	7,923		8,172
Verizon New York, Inc. 6.875% 4/1/12	13,328		14,137
Verizon Pennsylvania, Inc. 5.65% 11/15/11	1,000		1,034
			134,893
Wireless Telecommunication Services - 0.6%
DIRECTV Holdings LLC/DIRECTV Financing, Inc. 4.75% 10/1/14	14,442		15,535
Verizon Wireless Capital LLC:
3.75% 5/20/11	16,939		17,059
5.25% 2/1/12	5,544		5,773
Vodafone Group PLC:
4.15% 6/10/14	3,995		4,231
5.5% 6/15/11	10,561		10,713
			53,311
TOTAL TELECOMMUNICATION SERVICES			188,204
UTILITIES - 1.4%
Electric Utilities - 1.0%
Alabama Power Co. 4.85% 12/15/12	7,496		8,013
Commonwealth Edison Co.:
1.625% 1/15/14	4,701		4,689
5.4% 12/15/11	5,225		5,419
EDP Finance BV 5.375% 11/2/12 (f)	10,575		10,938
FirstEnergy Corp. 6.45% 11/15/11	11,495		11,886
FirstEnergy Solutions Corp. 4.8% 2/15/15	1,720		1,809
LG&E and KU Energy LLC 2.125% 11/15/15 (f)	5,651		5,416
Mid-American Energy Co. 5.65% 7/15/12	309		328
Niagara Mohawk Power Corp. 3.553% 10/1/14 (f)	14,230		14,683
Progress Energy, Inc.:
6.05% 3/15/14	3,658		4,073
7.1% 3/1/11	11,662		11,662
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
Southern Co.:
0.7031% 10/21/11 (j)	$ 6,432		$ 6,448
4.15% 5/15/14	1,976		2,094
			87,458
Independent Power Producers & Energy Traders - 0.1%
PSEG Power LLC 2.5% 4/15/13	12,986		13,245
Multi-Utilities - 0.3%
Dominion Resources, Inc.:
2.25% 9/1/15	5,149		5,023
6.3% 9/30/66 (j)	7,611		7,440
DTE Energy Co. 7.05% 6/1/11	9,501		9,642
			22,105
TOTAL UTILITIES			122,808
TOTAL NONCONVERTIBLE BONDS (Cost $2,033,681)		2,075,668
U.S. Government and Government Agency Obligations - 51.5%
U.S. Government Agency Obligations - 10.8%
Fannie Mae:
0.375% 12/28/12	63,570		63,067
0.75% 2/26/13	112,245		112,248
1.125% 7/30/12	11,460		11,553
1.25% 8/20/13	37,930		38,111
1.25% 2/27/14	46,865		46,784
2.5% 5/15/14	68,673		70,953
2.75% 3/13/14	53,701		55,935
4.375% 9/15/12	5,723		6,054
4.625% 10/15/13	74,550		81,253
4.75% 11/19/12	5,715		6,114
Federal Home Loan Bank:
1% 3/27/13	4,400		4,407
1.125% 5/18/12	21,500		21,667
Freddie Mac:
0.625% 12/28/12	116,990		116,839
0.75% 3/28/13	60,587		60,523
1.125% 7/27/12	29,907		30,153
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - continued
Freddie Mac: - continued
1.375% 2/25/14	$ 80,336		$ 80,450
1.75% 6/15/12	17,506		17,793
2.5% 1/7/14	15,000		15,476
2.5% 4/23/14	5,880		6,075
4.125% 12/21/12	2,549		2,704
4.5% 1/15/14	69,792		76,103
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			924,262
U.S. Treasury Inflation Protected Obligations - 0.6%
U.S. Treasury Inflation-Indexed Notes 2.375% 4/15/11	47,135		47,558
U.S. Treasury Obligations - 37.8%
U.S. Treasury Notes:
0.375% 10/31/12	40,439		40,328
0.625% 12/31/12	37,974		37,977
0.75% 5/31/12	251,275		252,511
0.875% 1/31/12	362,598		364,567
1% 4/30/12	270,341		272,401
1% 1/15/14 (e)	263,639		262,795
1.25% 2/15/14	792,756		794,747
1.375% 2/15/13	297,187		301,239
1.75% 4/15/13 (h)	551,164		562,876
1.75% 3/31/14	18,100		18,400
1.75% 7/31/15	6,081		6,052
1.875% 4/30/14	236,453		241,108
2.375% 9/30/14	23,131		23,868
2.375% 10/31/14	63,074		65,025
TOTAL U.S. TREASURY OBLIGATIONS			3,243,894
Other Government Related - 2.3%
American Express Bank FSB 3.15% 12/9/11 (FDIC Guaranteed) (g)	6,100		6,234
Bank of America Corp.:
2.1% 4/30/12 (FDIC Guaranteed) (g)	10,006		10,210
3.125% 6/15/12 (FDIC Guaranteed) (g)	3,916		4,047
Citibank NA 1.875% 6/4/12 (FDIC Guaranteed) (g)	11,830		12,021
Citigroup Funding, Inc.:
1.875% 10/22/12 (FDIC Guaranteed) (g)	22,590		23,050
1.875% 11/15/12 (FDIC Guaranteed) (g)	16,200		16,524
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
Other Government Related - continued
Citigroup Funding, Inc.: - continued
2.25% 12/10/12 (FDIC Guaranteed) (g)	$ 16,520		$ 16,952
Citigroup, Inc. 2.875% 12/9/11 (FDIC Guaranteed) (g)	3,850		3,926
General Electric Capital Corp.:
2% 9/28/12 (FDIC Guaranteed) (g)	19,730		20,168
2.625% 12/28/12 (FDIC Guaranteed) (g)	17,600		18,197
3% 12/9/11 (FDIC Guaranteed) (g)	20,007		20,422
Goldman Sachs Group, Inc.:
2.15% 3/15/12 (FDIC Guaranteed) (g)	2,300		2,340
3.25% 6/15/12 (FDIC Guaranteed) (g)	1,870		1,936
HSBC USA, Inc. 3.125% 12/16/11 (FDIC Guaranteed) (g)	2,310		2,361
JPMorgan Chase & Co. 3.125% 12/1/11 (FDIC Guaranteed) (g)	8,140		8,311
Morgan Stanley 3.25% 12/1/11 (FDIC Guaranteed) (g)	12,180		12,450
Wells Fargo & Co. 3% 12/9/11 (FDIC Guaranteed) (g)	19,250		19,648
TOTAL OTHER GOVERNMENT RELATED			198,797
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $4,388,967)		4,414,511
U.S. Government Agency - Mortgage Securities - 3.4%
Fannie Mae - 2.4%
2.018% 10/1/33 (j)	277		286
2.142% 3/1/35 (j)	195		201
2.165% 10/1/33 (j)	127		131
2.202% 2/1/33 (j)	245		253
2.213% 7/1/35 (j)	99		103
2.243% 12/1/34 (j)	256		264
2.316% 3/1/35 (j)	42		43
2.319% 3/1/35 (j)	2,602		2,695
2.397% 5/1/33 (j)	58		60
2.474% 10/1/35 (j)	496		513
2.532% 7/1/34 (j)	129		134
2.545% 5/1/35 (j)	3,292		3,464
2.553% 10/1/33 (j)	355		374
2.554% 12/1/34 (j)	1,974		2,079
2.573% 3/1/35 (j)	124		130
2.59% 6/1/36 (j)	257		269
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
2.62% 11/1/36 (j)	$ 485		$ 510
2.622% 12/1/33 (j)	1,606		1,687
2.634% 11/1/34 (j)	1,763		1,840
2.634% 7/1/35 (j)	2,701		2,839
2.643% 2/1/35 (j)	3,323		3,488
2.673% 10/1/35 (j)	12,333		12,950
2.682% 2/1/34 (j)	87		91
2.686% 11/1/36 (j)	3,561		3,740
2.688% 11/1/34 (j)	14,427		15,225
2.733% 7/1/35 (j)	1,075		1,127
2.743% 8/1/35 (j)	2,415		2,529
2.917% 4/1/35 (j)	5,446		5,731
3.193% 1/1/40 (j)	6,300		6,501
3.247% 10/1/35 (j)	772		814
3.259% 1/1/40 (j)	15,708		16,234
3.282% 2/1/40 (j)	10,904		11,268
3.335% 1/1/40 (j)	9,428		9,782
3.547% 12/1/39 (j)	1,817		1,891
3.565% 2/1/40 (j)	3,942		4,104
3.606% 3/1/40 (j)	7,383		7,702
3.768% 10/1/39 (j)	9,762		10,111
4.5% 8/1/18 to 7/1/20	39,886		42,328
5.5% 3/1/16 to 1/1/20	17,248		18,674
6.5% 11/1/11 to 3/1/35	11,432		12,459
7% 10/1/12 to 11/1/18	1,107		1,199
7.5% 6/1/12 to 11/1/31	45		48
TOTAL FANNIE MAE			205,871
Freddie Mac - 1.0%
2.521% 4/1/35 (j)	3,757		3,920
2.585% 1/1/35 (j)	173		181
2.597% 11/1/35 (j)	1,692		1,774
3.087% 8/1/34 (j)	861		901
3.147% 3/1/33 (j)	39		41
3.212% 6/1/37 (j)	2,265		2,387
3.325% 8/1/36 (j)	1,391		1,458
3.352% 10/1/35 (j)	359		380
3.524% 12/1/39 (j)	4,949		5,130
3.552% 4/1/40 (j)	4,988		5,173
3.588% 4/1/40 (j)	4,401		4,572
3.616% 2/1/40 (j)	10,651		11,084
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
4.5% 8/1/18 to 11/1/18	$ 32,249		$ 34,240
5% 4/1/20	13,952		14,995
8.5% 5/1/27 to 7/1/28	288		332
12% 11/1/19	8		9
TOTAL FREDDIE MAC			86,577
Ginnie Mae - 0.0%
7% 11/15/27 to 8/15/32	2,607		2,969
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $287,597)		295,417
Asset-Backed Securities - 9.2%
Accredited Mortgage Loan Trust:
Series 2003-3 Class A1, 4.46% 1/25/34 (AMBAC Insured)	2,169		1,735
Series 2005-1 Class M1, 0.7315% 4/25/35 (j)	1,153		863
ACE Securities Corp. Home Equity Loan Trust:
Series 2004-HE1:
Class M1, 1.0115% 3/25/34 (j)	33		32
Class M2, 1.9115% 3/25/34 (j)	115		94
Series 2005-HE2 Class M2, 0.7115% 4/25/35 (j)	115		108
Series 2006-OP1:
Class M1, 0.5415% 4/25/36 (j)	8,000		454
Class M4, 0.6315% 4/25/36 (j)	115		1
Class M5, 0.6515% 4/25/36 (j)	7		0*
Advanta Business Card Master Trust Series 2006-C1 Class C1, 0.742% 10/20/14 (j)	30		6
Ally Auto Receivables Trust:
Series 2009 B Class A3, 1.98% 10/15/13 (f)	11,180		11,313
Series 2009-A Class A3, 2.33% 6/17/13 (f)	2,780		2,816
Series 2010-1:
Class A3, 1.45% 5/15/14	1,385		1,393
Class A4, 2.3% 12/15/14	10,250		10,429
Series 2010-4 Class A3, 0.91% 11/17/14	11,420		11,344
Series 2010-5 Class A3, 1.11% 1/15/15	7,950		7,925
Series 2011-1 Class A3, 1.45% 1/15/15	9,980		10,006
Ally Master Owner Trust:
Series 2010-3 Class A, 2.88% 4/15/15 (f)	2,980		3,056
Series 2011-1 Class A2, 2.15% 1/15/16	26,800		26,759
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
AmeriCredit Automobile Receivables Trust:
Series 2006-1 Class D, 5.49% 4/6/12	$ 4,133		$ 4,140
Series 2007-AX Class A4, 0.303% 10/6/13 (XL Capital Assurance, Inc. Insured) (j)	12,967		12,898
Series 2007-CM Class A4B, 0.343% 4/7/14 (National Public Finance Guarantee Corp. Insured) (j)	17,296		17,190
Series 2010-3 Class A2, 0.77% 12/9/13	9,000		9,002
Series 2010-4 Class A3, 1.27% 4/8/15	10,300		10,259
Series 2010-B Class A2, 1.18% 2/6/14 (Assured Guaranty Corp. Insured)	5,971		5,963
Series 2011-1 Class A3, 1.39% 9/8/15	6,060		6,059
Ameriquest Mortgage Securities, Inc. pass-thru certificates:
Series 2004-R2 Class M3, 0.8115% 4/25/34 (j)	90		23
Series 2005-R2 Class M1, 0.7115% 4/25/35 (j)	1,390		1,194
Argent Securities, Inc. pass-thru certificates:
Series 2003-W7 Class A2, 1.04% 3/25/34 (j)	378		301
Series 2004-W7 Class M1, 0.8115% 5/25/34 (j)	227		157
Series 2006-W4 Class A2C, 0.4215% 5/25/36 (j)	939		336
Asset Backed Securities Corp. Home Equity Loan Trust Series 2006-HE2 Class M1, 0.6315% 3/25/36 (j)	63		2
Axon Financial Funding Ltd. 2.025% 4/4/17 (c)(f)(j)	2,749		0*
Bank of America Auto Trust:
Series 2009-1A:
Class A3, 2.67% 7/15/13 (f)	7,537		7,612
Class A4, 3.52% 6/15/16 (f)	5,400		5,592
Series 2009-2A Class A3, 2.13% 9/15/13 (f)	3,648		3,678
Series 2009-3A Class A3, 1.67% 12/15/13 (f)	10,716		10,792
Series 2010-2 Class A3, 1.31% 7/15/14	13,020		13,119
BMW Vehicle Lease Trust:
Series 2009-1 Class A3, 2.91% 3/15/12	2,754		2,772
Series 2010-1 Class A3, 0.82% 4/15/13	10,450		10,455
Brazos Higher Education Authority, Inc. Student Loan Rev. Series 2006 A2R, 1.0528% 12/1/41 (j)	4,598		4,592
Brazos Higher Education Authority, Inc. Series 2006-2 Class A9, 0.3128% 12/26/24 (j)	1,094		990
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (j)	49		49
Capital Auto Receivables Asset Trust:
Series 2006-2:
Class B, 5.07% 12/15/11	511		511
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Capital Auto Receivables Asset Trust: - continued
Series 2006-2:
Class C, 5.31% 6/15/12	$ 391		$ 396
Series 2007-1:
Class B, 5.15% 9/17/12	5,755		5,930
Class C, 5.38% 11/15/12	139		144
Capital Auto Receivables Trust Series 2007-2 Class A4A, 5.39% 2/18/14	3,359		3,415
Capital One Auto Finance Trust Series 2007-C Class A4, 5.23% 7/15/14 (FGIC Insured)	13,705		14,117
Capital One Multi-Asset Execution Trust:
Series 2008-A3 Class A3, 5.05% 2/15/16	4,100		4,426
Series 2009-A2 Class A2, 3.2% 4/15/14	22,200		22,368
Capital One Prime Auto Receivables Trust Series 2007-1 Class B1, 5.76% 12/15/13	5,590		5,646
Capital Trust Ltd. Series 2004-1:
Class A2, 0.712% 7/20/39 (f)(j)	308		231
Class B, 1.012% 7/20/39 (f)(j)	178		82
Class C, 1.362% 7/20/39 (f)(j)	229		34
Carrington Mortgage Loan Trust:
Series 2006-FRE1 Class M1, 0.5615% 7/25/36 (j)	768		49
Series 2006-NC2 Class M7, 1.1115% 6/25/36 (j)	287		1
Series 2006-NC4 Class M1, 0.5615% 10/25/36 (j)	53		4
Series 2006-RFC1 Class M9, 2.1315% 5/25/36 (j)	125		8
Series 2007-RFC1 Class A3, 0.4015% 12/25/36 (j)	1,214		456
Chase Issuance Trust:
Series 2007-A17 Class A, 5.12% 10/15/14	9,410		10,066
Series 2008-9 Class A, 4.26% 5/15/13	6,537		6,590
Series 2008-A4 Class A4, 4.65% 3/15/15	7,180		7,703
Series 2009-A3 Class A3, 2.4% 6/17/13	19,250		19,362
Chrysler Financial Auto Securitization Trust Series 2010-A Class A3, 0.91% 8/8/13	8,260		8,264
Chrysler Financial Lease Trust Series 2010-A Class A2, 1.78% 6/15/11 (f)	956		957
Citibank Credit Card Issuance Trust:
Series 2006-A4 Class A4, 5.45% 5/10/13	8,000		8,086
Series 2008-A5 Class A5, 4.85% 4/22/15	8,166		8,787
Series 2009-A3 Class A3, 2.7% 6/24/13	4,020		4,068
Series 2009-A5 Class A5, 2.25% 12/23/14	25,840		26,398
CitiFinancial Auto Issuance Trust Series 2009-1 Class A2, 1.83% 11/15/12 (f)	2,770		2,777
Citigroup Mortgage Loan Trust Series 2007-AMC4 Class M1, 0.5315% 5/25/37 (j)	515		80
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Countrywide Asset-Backed Certificates Trust:
Series 2007-11 Class 2A1, 0.3215% 6/25/47 (j)	$ 16		$ 16
Series 2007-4 Class A1A, 0.36% 9/25/37 (j)	119		114
Countrywide Home Loan Trust Series 2006-13 Class N, 7% 8/25/37 (f)	222		0
Countrywide Home Loans, Inc.:
Series 2004-2 Class 3A4, 0.5115% 7/25/34 (j)	395		318
Series 2004-3 Class M4, 1.2315% 4/25/34 (j)	107		45
Series 2004-4 Class M2, 1.0565% 6/25/34 (j)	396		227
Series 2005-3 Class MV1, 0.6815% 8/25/35 (j)	573		548
Series 2005-AB1 Class A2, 0.4715% 8/25/35 (j)	67		66
Fannie Mae subordinate REMIC pass-thru certificates Series 2004-T5:
Class AB1, 0.7353% 5/28/35 (j)	634		508
Class AB3, 0.6842% 5/28/35 (j)	273		201
Fieldstone Mortgage Investment Corp.:
Series 2004-3 Class M5, 2.4365% 8/25/34 (j)	196		112
Series 2006-2 Class M1, 0.5715% 7/25/36 (j)	6,145		192
Series 2006-3 Class 2A3, 0.4215% 11/25/36 (j)	3,407		1,261
Ford Credit Auto Lease Trust:
Series 2010-A Class A2, 1.04% 3/15/13 (f)	6,685		6,692
Series 2010-B Class A3, 0.8% 7/15/13 (f)	11,120		11,112
Ford Credit Auto Owner Trust:
Series 2006-B:
Class B, 5.43% 2/15/12	1,259		1,261
Class C, 5.68% 6/15/12	9,900		9,923
Series 2006-C:
Class B, 5.3% 6/15/12	1,306		1,326
Class C, 5.47% 9/15/12	6,400		6,516
Series 2007-A:
Class B, 5.6% 10/15/12	2,575		2,676
Class C, 5.8% 2/15/13	4,100		4,275
Series 2009-B Class A3, 2.79% 8/15/13	5,426		5,496
Series 2009-C Class A4, 4.43% 11/15/14	6,210		6,589
Series 2009-D Class A3, 2.17% 10/15/13	3,318		3,355
Series 2009-E Class A3, 1.51% 1/15/14	10,584		10,669
Series 2010-B Class A3, 0.98% 10/15/14	7,150		7,169
Ford Credit Floorplan Master Owner Trust:
Series 2006-4:
Class A, 0.5158% 6/15/13 (j)	12,180		12,157
Class B, 0.8158% 6/15/13 (j)	520		519
Series 2010-1 Class A, 1.9158% 12/15/14 (f)(j)	5,880		5,996
Series 2010-5 Class A1, 1.5% 9/15/15	7,430		7,367
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Franklin Auto Trust:
Series 2006-1 Class B, 5.14% 7/21/14	$ 14		$ 14
Series 2007-1:
Class A4, 5.03% 2/16/15	4,140		4,145
Class C, 5.43% 2/16/15	9,937		9,904
Fremont Home Loan Trust:
Series 2004-D:
Class M4, 1.6865% 11/25/34 (j)	410		97
Class M5, 1.7615% 11/25/34 (j)	262		40
Series 2005-A:
Class M3, 0.7515% 1/25/35 (j)	639		316
Class M4, 0.9415% 1/25/35 (j)	245		78
Series 2006-A Class M1, 0.5615% 5/25/36 (j)	9,027		494
Series 2006-D Class M1, 0.4915% 11/25/36 (j)	71		2
GCO Education Loan Funding Master Trust II Series 2007-1A Class C1L, 0.6915% 2/25/47 (f)(j)	1,714		1,011
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (f)	2,592		2,063
GE Business Loan Trust:
Series 2003-1 Class A, 0.6958% 4/15/31 (f)(j)	166		156
Series 2006-2A:
Class A, 0.4458% 11/15/34 (f)(j)	247		205
Class B, 0.5458% 11/15/34 (f)(j)	89		58
Class C, 0.6458% 11/15/34 (f)(j)	149		74
Class D, 1.0158% 11/15/34 (f)(j)	56		14
GE Capital Credit Card Master Note Trust Series 2009-3 Class A, 2.54% 9/15/14	15,000		15,152
Goal Capital Funding Trust Series 2007-1 Class C1, 0.7028% 6/25/42 (j)	177		147
Greenpoint Credit LLC Series 2001-1 Class 1A, 0.602% 4/20/32 (j)	93		93
GS Auto Loan Trust Series 2007-1:
Class B, 5.53% 12/15/14	9		10
Class C, 5.74% 12/15/14	8		8
GSAMP Trust:
Series 2004-AR1 Class M1, 0.9115% 6/25/34 (j)	1,604		1,122
Series 2007-HE1 Class M1, 0.5115% 3/25/47 (j)	658		37
Guggenheim Structured Real Estate Funding Ltd.:
Series 2005-1 Class C, 1.3415% 5/25/30 (f)(j)	505		257
Series 2006-3:
Class B, 0.6615% 9/25/46 (f)(j)	3,791		1,895
Class C, 0.8115% 9/25/46 (f)(j)	9,428		2,263
Home Equity Asset Trust:
Series 2003-2 Class M1, 1.5815% 8/25/33 (j)	104		76
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Home Equity Asset Trust: - continued
Series 2003-3 Class M1, 1.5515% 8/25/33 (j)	$ 526		$ 437
Series 2003-5 Class A2, 0.9615% 12/25/33 (j)	205		144
Series 2004-1 Class M2, 1.9615% 6/25/34 (j)	440		271
Series 2005-5 Class 2A2, 0.5115% 11/25/35 (j)	62		61
Series 2006-1 Class 2A3, 0.4865% 4/25/36 (j)	780		760
Series 2006-8 Class 2A1, 0.3115% 3/25/37 (j)	38		38
Honda Auto Receivables Owner Trust:
Series 2008-1 Class A4, 4.88% 9/18/14	4,901		4,979
Series 2009-3 Class A3, 2.31% 5/15/13	3,495		3,531
Series 2010-1 Class A4, 1.98% 5/23/16	2,870		2,917
Series 2010-2 Class A3, 1.34% 3/18/14	8,620		8,685
Series 2010-3 Class A3, 0.7% 5/21/13	16,600		16,564
Series 2011-1 Class A4, 1.8% 4/17/17	4,540		4,539
HSBC Home Equity Loan Trust Series 2006-2 Class M2, 0.552% 3/20/36 (j)	493		411
HSI Asset Securitization Corp. Trust Series 2007-HE1 Class 2A3, 0.4515% 1/25/37 (j)	902		379
Hyundai Auto Receivables Trust:
Series 2009-A:
Class A3, 2.03% 8/15/13	3,510		3,544
Class A4, 3.15% 3/15/16	1,490		1,549
Series 2011-A Class A3, 1.16% 4/15/15	5,730		5,730
John Deere Owner Trust Series 2009-B Class A-3, 1.57% 10/15/13	9,264		9,315
JPMorgan Auto Receivables Trust Series 2006-A Class C, 5.61% 12/15/14 (f)	789		789
JPMorgan Mortgage Acquisition Trust:
Series 2006-NC2 Class M2, 0.5615% 7/25/36 (j)	49		2
Series 2007-CH1:
Class AV4, 0.3915% 11/25/36 (j)	903		776
Class MV1, 0.4915% 11/25/36 (j)	734		486
Series 2007-CH3 Class M1, 0.5615% 3/25/37 (j)	137		7
Keycorp Student Loan Trust:
Series 1999-A Class A2, 0.6328% 12/27/29 (j)	504		433
Series 2006-A Class 2C, 1.4528% 3/27/42 (j)	516		95
Long Beach Auto Receivables Trust Series 2007-A Class A4, 5.025% 1/15/14 (FSA Insured)	209		212
Long Beach Mortgage Loan Trust:
Series 2004-2 Class M2, 1.3415% 6/25/34 (j)	64		40
Series 2006-6 Class 2A3, 0.4115% 7/25/36 (j)	10,340		4,229
Marriott Vacation Club Owner Trust:
Series 2005-2 Class A, 5.25% 10/20/27 (f)	1,079		1,110
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Marriott Vacation Club Owner Trust: - continued
Series 2006-1A:
Class B, 5.827% 4/20/28 (f)	$ 423		$ 404
Class C, 6.125% 4/20/28 (f)	423		370
MASTR Asset Backed Securities Trust:
Series 2006-AM3 Class M1, 0.5215% 10/25/36 (j)	326		18
Series 2007-HE1 Class M1, 0.5615% 5/25/37 (j)	528		27
Mercedes-Benz Auto Lease Trust Series 2011-1A Class A3 1.18% 11/15/13 (f)	17,060		17,057
Mercedes-Benz Auto Receivables Trust Series 2009-1 Class A3, 1.67% 1/15/14	5,010		5,057
Meritage Mortgage Loan Trust Series 2004-1 Class M1, 1.0115% 7/25/34 (j)	44		29
Merrill Auto Trust Securitization Series 2007-1 Class B, 5.79% 12/15/13	26		26
Merrill Lynch Mortgage Investors Trust:
Series 2003-OPT1 Class M1, 0.9115% 7/25/34 (j)	126		99
Series 2006-FM1 Class A2B, 0.3715% 4/25/37 (j)	1,212		1,108
Series 2006-MLN1 Class A2A, 0.3315% 7/25/37 (j)	3		3
Series 2006-OPT1 Class A1A, 0.5215% 6/25/35 (j)	1,450		1,190
Morgan Stanley ABS Capital I Trust:
Series 2004-HE6 Class A2, 0.6015% 8/25/34 (j)	367		305
Series 2005-NC1 Class M1, 0.7015% 1/25/35 (j)	269		190
Series 2005-NC2 Class B1, 1.4315% 3/25/35 (j)	280		42
Series 2006-NC4 Class A2D, 0.5015% 6/25/36 (j)	7,135		2,871
Series 2007-HE2 Class M1, 0.5115% 1/25/37 (j)	63		2
National Collegiate Student Loan Trust:
Series 2004-2 Class AIO, 9.75% 10/25/14 (l)	4,449		612
Series 2006-1 Class AIO, 5.5% 4/25/11 (l)	8,116		63
Series 2006-2 Class AIO, 6% 8/25/11 (l)	3,755		77
Series 2006-3 Class AIO, 7.1% 1/25/12 (l)	26,229		1,180
Series 2006-4:
Class A1, 0.2915% 3/25/25 (j)	86		85
Class AIO, 6.35% 2/27/12 (l)	4,953		264
Class D, 1.3615% 5/25/32 (j)	398		9
Series 2007-1 Class AIO, 7.27% 4/25/12 (l)	380		29
Series 2007-2 Class AIO, 6.7% 7/25/12 (l)	323		27
New Century Home Equity Loan Trust Series 2005-D Class M2, 0.7315% 2/25/36 (j)	327		30
Nissan Auto Lease Trust:
Series 2009-A Class A3, 2.92% 12/15/11	3,474		3,485
Series 2009-B Class A3, 2.07% 1/15/15	7,364		7,400
Series 2010-A Class A2, 1.1% 3/15/13	4,725		4,730
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Nissan Auto Lease Trust: - continued
Series 2010-B Class A3, 1.12% 12/15/13	$ 7,510		$ 7,518
Northstar Education Finance, Inc., Delaware Series 2005-1 Class A5, 1.0384% 10/30/45 (j)	4,554		4,563
Ocala Funding LLC:
Series 2005-1A Class A, 1.7535% 3/20/49(c)(f)(j)	381		0
Series 2006-1A Class A, 1.662% 3/20/49 (c)(f)(j)	792		0
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (j)	4		4
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (j)	8		8
Park Place Securities, Inc.:
Series 2004-WCW1:
Class M3, 1.5115% 9/25/34 (j)	3,309		2,103
Class M4, 1.7115% 9/25/34 (j)	460		215
Series 2004-WWF1 Class M4, 1.3615% 12/25/34 (j)	7,490		2,323
Series 2005-WCH1:
Class M2, 0.7815% 1/25/36 (j)	944		876
Class M3, 0.8215% 1/25/36 (j)	322		228
Class M4, 1.0915% 1/25/36 (j)	994		410
Series 2005-WHQ2:
Class M7, 1.5115% 5/25/35 (j)	1,178		29
Class M9, 2.1415% 5/25/35 (j)	17		0*
Providian Master Note Trust Series 2006-C1A Class C1, 0.8158% 3/15/15 (f)(j)	2,746		2,746
Residential Asset Mortgage Products, Inc. Series 2003-RZ2 Class A1, 3.6% 4/25/33 (AMBAC Insured)	836		778
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0615% 4/25/33 (j)	3		3
Santander Drive Auto Receivables Trust:
Series 2007-2 Class A3, 1.0658% 8/15/14 (National Public Finance Guarantee Corp. Insured) (j)	13,460		13,463
Series 2010-2 Class A2, 0.95% 8/15/13	18,100		18,122
Series 2010-3 Class A2, 0.93% 6/17/13	6,170		6,171
Saxon Asset Securities Trust Series 2004-1 Class M1, 1.0565% 3/25/35 (j)	1,027		851
Securitized Asset Backed Receivables LLC Trust:
Series 2005-FR4 Class B3, 1.9815% 1/25/36 (j)	18		1
Series 2006-FR4 Class A2A, 0.3415% 8/25/36 (j)	11		5
Series 2007-NC1 Class A2A, 0.3115% 12/25/36 (j)	4		4
Sierra Receivables Funding Co. Series 2007-1A Class A2, 0.4106% 3/20/19 (FGIC Insured) (f)(j)	441		415
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
SLM Private Credit Student Loan Trust:
Series 2004 B Class A2, 0.5016% 6/15/21 (j)	$ 8,200		$ 7,548
Series 2004-A:
Class B, 0.8816% 6/15/33 (j)	2,087		1,131
Class C, 1.2516% 6/15/33 (j)	5,771		512
Series 2004-B Class C, 1.1716% 9/15/33 (j)	8,600		4,120
Specialty Underwriting & Residential Finance Trust Series 2006-AB2 Class N1, 5.75% 6/25/37 (f)	157		0
Structured Asset Investment Loan Trust Series 2004-8 Class M5, 1.4115% 9/25/34 (j)	48		20
SVO VOI Mortgage Corp. Series 2006-AA Class A, 5.28% 2/20/24 (f)	201		207
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.1215% 9/25/34 (j)	386		301
Toyota Auto Receivables Owner Trust Series 2010-B Class M3, 1.04% 2/18/14	4,710		4,731
Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 0.8628% 4/6/42 (f)(j)	265		8
USAA Auto Owner Trust Series 2009-2 Class A3, 1.54% 2/18/14	8,404		8,460
Volkswagen Auto Lease Trust:
Series 2009-A Class A3, 3.41% 4/16/12	7,700		7,759
Series 2010-A Class A3, 0.85% 11/20/13	16,770		16,753
Wachovia Auto Loan Owner Trust Series 2007-1:
Class C, 5.45% 10/22/12	2,025		2,053
Class D, 5.65% 2/20/13	14,940		15,040
Wachovia Auto Owner Trust Series 2008-A Class A4B, 1.412% 3/20/14 (j)	7,440		7,501
WaMu Asset Holdings Corp. Series 2006-8 Class N1, 6.048% 10/25/46 (f)	598		0
WaMu Master Note Trust Series 2006-C2A Class C2, 0.7658% 8/15/15 (f)(j)	7,433		7,408
Wells Fargo Home Equity Trust Series 2004-3 Class A, 4.5% 11/27/34 (a)(f)	5		0
Whinstone Capital Management Ltd. Series 1A Class B3, 2.1031% 10/25/44 (f)(j)	5,586		2,514
TOTAL ASSET-BACKED SECURITIES (Cost $841,323)		788,626
Collateralized Mortgage Obligations - 4.1%
	Principal Amount (000s)		Value (000s)
Private Sponsor - 1.6%
Arkle Master Issuer PLC floater Series 2006-1A Class 4A1, 0.4035% 2/17/52 (f)(j)	$ 8,550		$ 8,524
Arran Residential Mortgages Funding No. 1 PLC floater Series 2006-1A Class DB, 0.7331% 4/12/56 (f)(j)	961		954
Banc of America Funding Corp. sequential payer Series 2010-R4 Class 2A1, 4.5% 3/26/37 (f)	4,796		4,887
Banc of America Funding Trust sequential payer Series 2009-R1 Class A1, 5.081% 5/20/36 (j)	3,559		3,616
Banc of America Large Loan, Inc. Series 2005-MIB1 Class A2, 0.4758% 3/15/22 (f)(j)	1,746		1,710
Banc of America Mortgage Securities, Inc.:
Series 2003-L Class 2A1, 2.9055% 1/25/34 (j)	304		286
Series 2004-1 Class 2A2, 3.2375% 10/25/34 (j)	219		199
Series 2004-A Class 2A2, 2.9991% 2/25/34 (j)	65		58
Series 2004-B:
Class 1A1, 2.9237% 3/25/34 (j)	59		54
Class 2A2, 3.0527% 3/25/34 (j)	196		189
Series 2004-D Class 2A2, 2.9567% 5/25/34 (j)	443		407
Series 2004-G Class 2A7, 3.0214% 8/25/34 (j)	409		368
Series 2004-H Class 2A1, 3.1667% 9/25/34 (j)	366		332
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T24 Class X2, 0.4264% 10/12/41 (f)(j)(l)	882		10
Countrywide Alternative Loan Trust Series 2006-OC5N Class N, 7.25% 7/25/37 (f)	2,020		0
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 2.9234% 11/25/34 (j)	29		27
Credit Suisse Mortgage Capital Certificates sequential payer Series 2010-16 Class A1, 3% 6/25/50 (f)	5,881		5,822
Fosse Master Issuer PLC floater:
Series 2006-1A:
Class B2, 0.4631% 10/18/54 (f)(j)	2,075		2,063
Class C2, 0.7731% 10/18/54 (f)(j)	696		690
Class M2, 0.5531% 10/18/54 (f)(j)	1,193		1,171
Series 2007-1A Class A2, 0.3831% 10/18/54 (f)(j)	1,817		1,812
Gracechurch Mortgage Financing PLC floater:
Series 2006-1 Class D2, 0.7825% 11/20/56 (f)(j)	1,751		1,709
Series 2007-1A Class 3A1, 0.3925% 11/20/56 (f)(j)	7,150		7,052
Granite Master Issuer PLC floater:
Series 2005-4 Class C2, 1.363% 12/20/54 (j)	49		32
Series 2006-1A Class C2, 1.463% 12/20/54 (f)(j)	4,170		2,683
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Granite Master Issuer PLC floater: - continued
Series 2006-2:
Class C1, 0.733% 12/20/54 (j)	$ 15,090		$ 9,710
Class M2, 0.493% 12/20/54 (j)	3,000		2,265
Series 2006-3 Class C2, 0.763% 12/20/54 (j)	6,611		4,254
Series 2006-4:
Class B1, 0.353% 12/20/54 (j)	13,366		11,027
Class C1, 0.643% 12/20/54 (j)	8,172		5,259
Class M1, 0.433% 12/20/54 (j)	3,521		2,658
Series 2007-1:
Class 1C1, 0.863% 12/20/54 (j)	1,340		862
Class 1M1, 0.563% 12/20/54 (j)	881		665
Class 2C1, 1.223% 12/20/54 (j)	610		393
Class 2M1, 0.763% 12/20/54 (j)	1,132		855
Series 2007-2 Class 2C1, 0.694% 12/17/54 (j)	1,568		1,009
Granite Mortgages PLC floater Series 2003-3 Class 1C, 2.7531% 1/20/44 (j)	2,644		1,983
Harborview Mortgage Loan Trust floater Series 2005-2 Class 2A1A, 0.482% 5/19/35 (j)	247		165
Holmes Master Issuer PLC floater Series 2007-1 Class 3A1, 0.3831% 7/15/40 (j)	17,544		17,519
MASTR Adjustable Rate Mortgages Trust Series 2007-3 Class 22A2, 0.4715% 5/25/47 (j)	681		470
MASTR Asset Backed Securities Trust Series 2006-NC3 Class M1, 0.4915% 10/25/36 (j)	96		0*
Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 0.4315% 2/25/37 (j)	1,079		776
Merrill Lynch Floating Trust floater Series 2006-1:
Class B, 0.436% 6/15/22 (f)(j)	151		142
Class C, 0.456% 6/15/22 (f)(j)	926		821
Class D, 0.466% 6/15/22 (f)(j)	356		304
Class E, 0.476% 6/15/22 (f)(j)	570		480
Class F, 0.506% 6/15/22 (f)(j)	984		814
Class G, 0.576% 6/15/22 (f)(j)	214		174
Class H, 0.596% 6/15/22 (f)(j)	428		341
Class J, 0.636% 6/15/22 (f)(j)	499		376
Option One Mortgage Loan Trust floater Series 2007-CP1 Class M1, 0.5615% 3/25/37 (j)	1,778		116
Permanent Master Issuer PLC floater Series 2007-1 Class 4A, 0.3831% 10/15/33 (j)	5,260		5,209
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B:
Class B5, 2.614% 7/10/35 (f)(j)	$ 769		$ 625
Class B6, 3.114% 7/10/35 (f)(j)	91		70
Residential Asset Mortgage Products, Inc. sequential payer:
Series 2003-SL1 Class A31, 7.125% 4/25/31	209		219
Series 2004-SL3 Class A1, 7% 8/25/16	14		14
Residential Funding Securities Corp. floater Series 2003-RP2 Class A1, 0.7115% 6/25/33 (f)(j)	207		169
Sasco Net Interest Margin Trust Series 2006-BC1A Class A, 6.25% 3/27/36 (f)	1,466		0
Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 0.8997% 7/20/34 (j)	27		20
TBW Mortgage-Backed pass-thru certificates floater Series 2006-4 Class A3, 0.46% 9/25/36 (j)	2,204		1,569
Thornburg Mortgage Securities Trust floater:
Series 2006-4 Class A2B, 0.38% 7/25/36 (j)	8,980		8,950
Series 2006-5 Class A1, 0.3815% 10/25/46 (j)	4,125		4,081
Wachovia Bank Commercial Mortgage Trust Series 2004-C14 Class PP, 5.3117% 8/15/41 (f)(j)	5,697		4,729
Wells Fargo Mortgage Backed Securities Trust:
Series 2005-AR2 Class 2A2, 2.8076% 3/25/35 (j)	672		628
Series 2005-AR3 Class 2A1, 2.8794% 3/25/35 (j)	787		719
TOTAL PRIVATE SPONSOR			135,095
U.S. Government Agency - 2.5%
Fannie Mae:
planned amortization class:
Series 1993-187 Class L, 6.5% 7/25/23	1,102		1,127
Series 2006-53 Class WB, 6% 12/25/31	7,925		8,120
Series 2006-64 Class PA, 5.5% 2/25/30	4,797		4,867
Series 2010-123 Class DL, 3.5% 11/25/25	7,236		7,507
Fannie Mae subordinate REMIC pass-thru certificates:
floater:
Series 2008-76 Class EF, 0.7615% 9/25/23 (j)	2,698		2,696
Series 2010-86 Class FE, 0.7115% 8/25/25 (j)	11,742		11,742
planned amortization class Series 2006-54 Class PE, 6% 2/25/33	4,122		4,422
sequential payer:
Series 2001-40 Class Z, 6% 8/25/31	2,126		2,327
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Fannie Mae subordinate REMIC pass-thru certificates: - continued
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	$ 1,261		$ 1,351
Series 2003-129 Class GF, 0.6615% 4/25/30 (j)	1,205		1,208
Series 2003-76 Class BA, 4.5% 3/25/18	5,229		5,489
Series 2010-143 Class B, 3.5% 12/25/25	11,270		11,680
Freddie Mac sequential payer:
Series 2114 Class ZM, 6% 1/15/29	965		1,058
Series 2508 Class UL, 5% 12/15/16	399		404
Freddie Mac Multi-class participation certificates guaranteed:
floater Series 3346 Class FA, 0.4958% 2/15/19 (j)	21,753		21,775
planned amortization class:
Series 2382 Class MB, 6% 11/15/16	2,609		2,808
Series 2394 Class KD, 6% 12/15/16	1,483		1,605
Series 2417 Class EH, 6% 2/15/17	782		842
Series 2535 Class PC, 6% 9/15/32	2,481		2,634
Series 2755 Class LC, 4% 6/15/27	406		405
Series 2770 Class UD, 4.5% 5/15/17	8,730		8,987
Series 2866 Class XE, 4% 12/15/18	9,360		9,762
Series 2901 Class UM, 4.5% 1/15/30	7,422		7,552
sequential payer:
Series 2609 Class UJ, 6% 2/15/17	1,149		1,187
Series 2635 Class DG, 4.5% 1/15/18	5,587		5,840
Series 2915 Class DC, 4.5% 3/15/19	5,501		5,704
Series 2970 Class YA, 5% 9/15/18	1,302		1,330
Series 3427 Class FX, 0.4158% 8/15/18 (j)	6,564		6,558
Series 3555:
Class CM, 4% 12/15/14	26,113		26,993
Class KH, 4% 12/15/14	27,822		28,946
Series 3560 Class LA, 2% 8/15/14	6,670		6,749
Series 3573 Class LC, 1.85% 8/15/14	10,614		10,725
TOTAL U.S. GOVERNMENT AGENCY			214,400
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $347,050)		349,495
Commercial Mortgage Securities - 3.9%
	Principal Amount (000s)		Value (000s)
Asset Securitization Corp. Series 1997-D5 Class PS1, 1.4561% 2/14/43 (j)(l)	$ 15,829		$ 375
Banc of America Commercial Mortgage Trust sequential payer:
Series 2007-2 Class A1, 5.421% 4/10/49	31		32
Series 2007-3 Class A1, 5.6579% 6/10/49 (j)	5,249		5,356
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2006-1 Class A1, 5.219% 9/10/45 (j)	41		41
Series 2007-1 Class A2, 5.381% 1/15/49	2,296		2,337
Series 2004-6 Class XP, 0.5011% 12/10/42 (j)(l)	31,380		101
Series 2005-4 Class XP, 0.1875% 7/10/45 (j)(l)	42,989		151
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class F, 0.7358% 3/15/22 (f)(j)	415		369
Class G, 0.7958% 3/15/22 (f)(j)	269		234
Series 2006-BIX1:
Class F, 0.5758% 10/15/19 (f)(j)	1,104		972
Class G, 0.5958% 10/15/19 (f)(j)	767		644
Bayview Commercial Asset Trust:
floater:
Series 2003-2 Class M1, 1.1115% 12/25/33 (f)(j)	52		38
Series 2004-1:
Class A, 0.6215% 4/25/34 (f)(j)	2,366		2,094
Class B, 2.1615% 4/25/34 (f)(j)	252		141
Class M1, 0.8215% 4/25/34 (f)(j)	214		164
Class M2, 1.4615% 4/25/34 (f)(j)	187		131
Series 2004-2:
Class A, 0.6915% 8/25/34 (f)(j)	1,816		1,580
Class M1, 0.8415% 8/25/34 (f)(j)	606		448
Series 2004-3:
Class A1, 0.6315% 1/25/35 (f)(j)	3,311		2,848
Class A2, 0.6815% 1/25/35 (f)(j)	470		352
Class M1, 0.7615% 1/25/35 (f)(j)	233		168
Class M2, 1.2615% 1/25/35 (f)(j)	132		89
Series 2005-2A:
Class A1, 0.5715% 8/25/35 (f)(j)	885		721
Class M1, 0.6915% 8/25/35 (f)(j)	61		41
Class M2, 0.7415% 8/25/35 (f)(j)	101		63
Class M3, 0.7615% 8/25/35 (f)(j)	56		34
Class M4, 0.8715% 8/25/35 (f)(j)	51		29
Series 2005-3A:
Class A1, 0.5815% 11/25/35 (f)(j)	463		378
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2005-3A:
Class A2, 0.6615% 11/25/35 (f)(j)	$ 322		$ 255
Class M1, 0.7015% 11/25/35 (f)(j)	55		36
Class M2, 0.7515% 11/25/35 (f)(j)	70		43
Class M3, 0.7715% 11/25/35 (f)(j)	62		36
Class M4, 0.8615% 11/25/35 (f)(j)	78		41
Series 2005-4A:
Class A2, 0.6515% 1/25/36 (f)(j)	4,383		3,419
Class B1, 1.6615% 1/25/36 (f)(j)	343		131
Class M1, 0.7115% 1/25/36 (f)(j)	1,399		931
Class M2, 0.7315% 1/25/36 (f)(j)	455		284
Class M3, 0.7615% 1/25/36 (f)(j)	603		344
Class M4, 0.8715% 1/25/36 (f)(j)	335		174
Class M5, 0.9115% 1/25/36 (f)(j)	335		159
Class M6, 0.9615% 1/25/36 (f)(j)	340		139
Series 2006-1:
Class A2, 0.6215% 4/25/36 (f)(j)	1,463		1,171
Class M1, 0.6415% 4/25/36 (f)(j)	455		296
Class M2, 0.6615% 4/25/36 (f)(j)	481		294
Class M3, 0.6815% 4/25/36 (f)(j)	413		235
Class M4, 0.7815% 4/25/36 (f)(j)	235		123
Class M5, 0.8215% 4/25/36 (f)(j)	226		106
Class M6, 0.9015% 4/25/36 (f)(j)	493		222
Series 2006-2A:
Class A1, 0.4915% 7/25/36 (f)(j)	1,625		1,300
Class A2, 0.5415% 7/25/36 (f)(j)	1,204		915
Class B1, 1.1315% 7/25/36 (f)(j)	436		157
Class B3, 2.9615% 7/25/36 (f)(j)	718		187
Class M1, 0.5715% 7/25/36 (f)(j)	1,263		720
Class M2, 0.5915% 7/25/36 (f)(j)	889		471
Class M3, 0.6115% 7/25/36 (f)(j)	704		341
Class M4, 0.6815% 7/25/36 (f)(j)	472		203
Class M5, 0.7315% 7/25/36 (f)(j)	581		238
Class M6, 0.8015% 7/25/36 (f)(j)	914		329
Series 2006-3A:
Class B1, 1.0615% 10/25/36 (f)(j)	99		18
Class B2, 1.6115% 10/25/36 (f)(j)	71		11
Class B3, 2.8615% 10/25/36 (f)(j)	116		14
Class M4, 0.6915% 10/25/36 (f)(j)	109		40
Class M5, 0.7415% 10/25/36 (f)(j)	131		43
Class M6, 0.8215% 10/25/36 (f)(j)	256		64
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2006-4A:
Class A1, 0.4915% 12/25/36 (f)(j)	$ 503		$ 405
Class A2, 0.5315% 12/25/36 (f)(j)	2,282		1,711
Class B1, 0.9615% 12/25/36 (f)(j)	79		14
Class B2, 1.5115% 12/25/36 (f)(j)	81		13
Class B3, 2.7115% 12/25/36 (f)(j)	137		16
Class M1, 0.5515% 12/25/36 (f)(j)	164		95
Class M2, 0.5715% 12/25/36 (f)(j)	109		59
Class M3, 0.6015% 12/25/36 (f)(j)	111		55
Class M4, 0.6615% 12/25/36 (f)(j)	133		59
Class M5, 0.7015% 12/25/36 (f)(j)	122		51
Class M6, 0.7815% 12/25/36 (f)(j)	109		40
Series 2007-1:
Class A2, 0.5315% 3/25/37 (f)(j)	2,355		1,672
Class B1, 0.9315% 3/25/37 (f)(j)	756		151
Class B2, 1.4115% 3/25/37 (f)(j)	545		87
Class B3, 3.6115% 3/25/37 (f)(j)	1,547		170
Class M1, 0.5315% 3/25/37 (f)(j)	640		307
Class M2, 0.5515% 3/25/37 (f)(j)	481		207
Class M3, 0.5815% 3/25/37 (f)(j)	427		162
Class M4, 0.6315% 3/25/37 (f)(j)	328		115
Class M5, 0.6815% 3/25/37 (f)(j)	535		166
Class M6, 0.7615% 3/25/37 (f)(j)	748		187
Series 2007-2A:
Class A1, 0.5315% 7/25/37 (f)(j)	402		297
Class A2, 0.5815% 7/25/37 (f)(j)	377		185
Class B1, 1.8615% 7/25/37 (f)(j)	117		15
Class B2, 2.5115% 7/25/37 (f)(j)	102		12
Class B3, 3.6115% 7/25/37 (f)(j)	114		10
Class M1, 0.6315% 7/25/37 (f)(j)	134		43
Class M2, 0.6715% 7/25/37 (f)(j)	75		22
Class M3, 0.7515% 7/25/37 (f)(j)	75		19
Class M4, 0.9115% 7/25/37 (f)(j)	146		26
Class M5, 1.0115% 7/25/37 (f)(j)	129		19
Class M6, 1.2615% 7/25/37 (f)(j)	164		23
Series 2007-3:
Class A2, 0.5515% 7/25/37 (f)(j)	588		394
Class B1, 1.2115% 7/25/37 (f)(j)	513		67
Class B2, 1.8615% 7/25/37 (f)(j)	1,322		132
Class B3, 4.2615% 7/25/37 (f)(j)	682		55
Class M1, 0.5715% 7/25/37 (f)(j)	443		199
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2007-3:
Class M2, 0.6015% 7/25/37 (f)(j)	$ 475		$ 166
Class M3, 0.6315% 7/25/37 (f)(j)	771		231
Class M4, 0.7615% 7/25/37 (f)(j)	1,209		339
Class M5, 0.8615% 7/25/37 (f)(j)	613		135
Class M6, 1.0615% 7/25/37 (f)(j)	467		93
Series 2007-4A:
Class A2, 0.8115% 9/25/37 (f)(j)	4,626		1,388
Class B1, 2.8115% 9/25/37 (f)(j)	782		25
Class B2, 3.7115% 9/25/37 (f)(j)	2,912		73
Class M1, 1.2115% 9/25/37 (f)(j)	729		109
Class M2, 1.3115% 9/25/37 (f)(j)	729		88
Class M4, 1.8615% 9/25/37 (f)(j)	1,916		172
Class M5, 2.0115% 9/25/37 (f)(j)	1,916		134
Class M6, 2.2115% 9/25/37 (f)(j)	1,917		115
Series 2004-1 Class IO, 1.25% 4/25/34 (f)(l)	17,376		608
Series 2006-2A Class IO, 2.4155% 7/25/36 (d)(f)(l)	46,993		2,556
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AAB, 5.4539% 3/11/39 (j)	7,695		8,172
Bear Stearns Commercial Mortgage Securities Trust:
floater:
Series 2006-BBA7:
Class G, 0.7058% 3/15/19 (f)(j)	542		453
Class H, 0.9158% 3/15/19 (f)(j)	365		271
Class J, 1.1158% 3/15/19 (f)(j)	274		194
Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (f)(j)	303		248
Class E, 0.5658% 3/15/22 (f)(j)	1,576		1,214
Class F, 0.6158% 3/15/22 (f)(j)	967		696
Class G, 0.6658% 3/15/22 (f)(j)	248		171
Class H, 0.8158% 3/15/22 (f)(j)	303		191
Class J, 0.9658% 3/15/22 (f)(j)	303		151
sequential payer:
Series 2006-PW12 Class A2, 5.688% 9/11/38	6,372		6,396
Series 2006-T24 Class A1, 4.905% 10/12/41 (j)	35		35
Series 2007-PW17:
Class A1, 5.282% 6/11/50	4,268		4,336
Class A2, 5.574% 6/11/50	3,020		3,113
Series 2003-PWR2 Class X2, 0.5297% 5/11/39 (f)(j)(l)	55,343		174
Series 2004-PWR6 Class X2, 0.6144% 11/11/41 (f)(j)(l)	17,880		214
Series 2005-PWR9 Class X2, 0.3626% 9/11/42 (f)(j)(l)	112,943		1,079
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bear Stearns Commercial Mortgage Securities Trust: - continued
Series 2006-PW13 Class A1, 5.294% 9/11/41	$ 3,668		$ 3,706
Series 2007-T28 Class A1, 5.422% 9/11/42	1,849		1,883
C-BASS Trust floater Series 2006-SC1 Class A, 0.5315% 5/25/36 (f)(j)	5,321		3,963
CDC Commercial Mortgage Trust Series 2002-FX1 Class XCL, 2.1173% 5/15/35 (f)(j)(l)	92,734		2,043
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2:
Class G, 0.594% 8/15/21 (f)(j)	323		302
Class H, 0.634% 8/15/21 (f)(j)	258		233
Series 2004-C2 Class XP, 0.9134% 10/15/41 (f)(j)(l)	23,133		168
Series 2007-C6 Class A1, 5.622% 12/10/49 (j)	143		144
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4 Class A2A, 5.237% 12/11/49	3,756		3,794
Series 2006-CD3 Class X3, 0.4254% 10/15/48 (j)(l)	250,621		3,056
Cobalt CMBS Commercial Mortgage Trust sequential payer Series 2007-C2 Class A2, 5.334% 4/15/47	11,447		11,786
COMM pass-thru certificates:
floater:
Series 2005-F10A:
Class D, 0.5758% 4/15/17 (f)(j)	640		582
Class E, 0.6358% 4/15/17 (f)(j)	204		181
Class F, 0.6758% 4/15/17 (f)(j)	116		99
Class G, 0.8158% 4/15/17 (f)(j)	116		95
Class H, 0.8858% 4/15/17 (f)(j)	116		89
Class J, 1.1158% 4/15/17 (f)(j)	89		62
Series 2005-FL11:
Class F, 0.7158% 11/15/17 (f)(j)	125		114
Class G, 0.7658% 11/15/17 (f)(j)	87		78
Series 2006-CN2A Class A2FL, 0.483% 2/5/19 (f)(j)	3,060		3,005
sequential payer Series 2006-CN2A:
Class A2FX, 5.449% 2/5/19 (f)	7,645		7,645
Class AJFX, 5.478% 2/5/19 (f)	4,380		4,373
Series 2004-LBN2 Class X2, 0.8571% 3/10/39 (f)(j)(l)	8,328		1
Series 2005-LP5 Class XP, 0.2903% 5/10/43 (j)(l)	27,507		98
Series 2006-C8 Class XP, 0.4911% 12/10/46 (j)(l)	4,769		58
Commercial Mortgage Asset Trust sequential payer Series 1999-C1 Class A3, 6.64% 1/17/32	103		103
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Credit Suisse Commercial Mortgage Trust Series 2006-C5 Class ASP, 0.6744% 12/15/39 (j)(l)	$ 195,837		$ 3,539
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer Series 2002-CP5 Class A1, 4.106% 12/15/35	2,555		2,590
Series 2001-CK6 Class AX, 0.8911% 8/15/36 (j)(l)	94,324		370
Series 2001-SPGA Class A2, 6.515% 8/13/18 (f)	13,475		13,711
Series 2004-C1 Class ASP, 0.9583% 1/15/37 (f)(j)(l)	44,162		7
Series 2005-C1 Class ASP, 0.3207% 2/15/38 (f)(j)(l)	227,021		723
Series 2005-C2 Class ASP, 0.5227% 4/15/37 (f)(j)(l)	40,906		253
Credit Suisse Mortgage Capital Certificates floater Series 2007-TFL1:
Class C:
0.4358% 2/15/22 (f)(j)	1,256		1,105
0.5358% 2/15/22 (f)(j)	448		377
Class F, 0.5858% 2/15/22 (f)(j)	897		735
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1 Class D, 6.484% 3/15/33	6,920		6,916
GE Capital Commercial Mortgage Corp.:
Series 2001-1 Class X1, 0.9778% 5/15/33 (f)(j)(l)	25,542		274
Series 2007-C1 Class XP, 0.2003% 12/10/49 (j)(l)	3,630		19
GMAC Commercial Mortgage Securities, Inc.:
sequential payer Series 2003-C2 Class A1, 4.576% 5/10/40	5,007		5,214
Series 2004-C3 Class X2, 0.6179% 12/10/41 (j)(l)	23,797		104
Greenwich Capital Commercial Funding Corp.:
sequential payer Series 2005-GG3 Class A2, 4.305% 8/10/42 (j)	17,856		17,960
Series 2005-GG3 Class XP, 0.6927% 8/10/42 (f)(j)(l)	98,509		650
Series 2006-GG7 Class A2, 5.8829% 7/10/38 (j)	7,352		7,403
GS Mortgage Securities Corp. II:
floater:
Series 2006-FL8A Class F, 0.703% 6/6/20 (f)(j)	562		495
Series 2007-EOP:
Class C, 2.1455% 3/6/20 (f)(j)	4,021		3,923
Class D, 2.3636% 3/6/20 (f)(j)	1,390		1,353
Class E, 2.6688% 3/6/20 (f)(j)	1,905		1,851
Class F, 2.8433% 3/6/20 (f)(j)	967		937
Class G, 3.0177% 3/6/20 (f)(j)	479		460
Class H, 3.5846% 3/6/20 (f)(j)	799		765
Class J, 4.4568% 3/6/20 (f)(j)	1,146		1,076
sequential payer Series 2005-GG4 Class A3, 4.607% 7/10/39	4,810		4,918
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
GS Mortgage Securities Corp. II: - continued
sequential payer:
Series 2006-GG6 Class A2, 5.506% 4/10/38	$ 7,331		$ 7,343
GS Mortgage Securities Trust sequential payer:
Series 2006-GG8 Class A2, 5.479% 11/10/39	18,191		18,433
Series 2007-GG10 Class A1, 5.69% 8/10/45	10		11
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8 Class X2, 1.1472% 1/12/39 (f)(j)(l)	13,179		3
Series 2006-LDP7 Class A2, 5.8605% 4/15/45 (j)	3,064		3,084
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class A2, 0.3958% 11/15/18 (f)(j)	5,000		4,750
Class D, 0.4958% 11/15/18 (f)(j)	130		122
Class E, 0.5458% 11/15/18 (f)(j)	185		162
Class F, 0.5958% 11/15/18 (f)(j)	277		238
Class G, 0.6258% 11/15/18 (f)(j)	241		202
Class H, 0.7658% 11/15/18 (f)(j)	185		149
sequential payer:
Series 2005-LDP5 Class A2, 5.198% 12/15/44	7,862		8,013
Series 2006-LDP9 Class A1, 5.17% 5/15/47 (j)	1,157		1,164
Series 2007-LDPX Class A2 S, 5.305% 1/15/49	3,310		3,385
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2006-C1 Class A2, 5.084% 2/15/31	8,681		8,690
Series 2006-C6:
Class A1, 5.23% 9/15/39	1,943		1,944
Class A2, 5.262% 9/15/39 (j)	2,213		2,235
Series 2006-C7 Class A1, 5.279% 11/15/38	430		434
Series 2007-C1 Class A1, 5.391% 2/15/40 (j)	1,033		1,048
Series 2001-C3 Class B, 6.512% 6/15/36	2,451		2,488
Series 2004-C2 Class XCP, 1.0355% 3/15/36 (f)(j)(l)	31,396		12
Series 2004-C6 Class XCP, 0.5645% 8/15/36 (f)(j)(l)	25,928		87
Series 2006-C1 Class XCP, 0.3479% 2/15/41 (j)(l)	166,324		1,190
Series 2006-C6 Class XCP, 0.6752% 9/15/39 (j)(l)	104,297		1,724
Series 2007-C1 Class XCP, 0.4772% 2/15/40 (j)(l)	38,776		486
Series 2007-C2 Class XCP, 0.5199% 2/15/40 (j)(l)	229,018		2,938
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class F, 0.6058% 9/15/21 (f)(j)	770		654
Class G, 0.6258% 9/15/21 (f)(j)	1,521		1,232
Class H, 0.6658% 9/15/21 (f)(j)	392		306
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Merrill Lynch Mortgage Trust:
sequential payer:
Series 2004-MKB1 Class A2, 4.353% 2/12/42	$ 17		$ 17
Series 2005-MKB2 Class A2, 4.806% 9/12/42	1,562		1,563
Merrill Lynch Mortgage Trust: - continued
Series 2005-MCP1 Class XP, 0.6475% 6/12/43 (j)(l)	33,837		486
Series 2005-MKB2 Class XP, 0.2211% 9/12/42 (j)(l)	16,003		83
Merrill Lynch-CFC Commercial Mortgage Trust:
sequential payer:
Series 2007-6 Class A1, 5.175% 3/12/51	744		752
Series 2007-8 Class A1, 4.622% 8/12/49	1,854		1,875
Series 2007-9 Class A2, 5.59% 9/12/49	4,533		4,715
Series 2006-4 Class XP, 0.6112% 12/12/49 (j)(l)	89,130		1,715
Morgan Stanley Capital I Trust:
floater:
Series 2006-XLF Class C, 1.466% 7/15/19 (f)(j)	241		125
Series 2007-XCLA Class A1, 0.466% 7/17/17 (f)(j)	1,312		1,180
Series 2007-XLFA:
Class D, 0.456% 10/15/20 (f)(j)	449		337
Class E, 0.516% 10/15/20 (f)(j)	562		365
Class F, 0.566% 10/15/20 (f)(j)	337		169
Class G, 0.606% 10/15/20 (f)(j)	417		167
Class H, 0.696% 10/15/20 (f)(j)	262		26
Class J, 0.846% 10/15/20 (f)(j)	300		15
Class MHRO, 0.956% 10/15/20 (f)(j)	156		50
Class MJPM, 1.266% 10/15/20 (f)(j)	9		7
Class MSTR, 0.966% 10/15/20 (f)(j)	94		30
Class NHRO, 1.156% 10/15/20 (f)(j)	230		51
Class NSTR, 1.116% 10/15/20 (f)(j)	87		19
sequential payer:
Series 2003-IQ5 Class X2, 0.9108% 4/15/38 (f)(j)(l)	21,721		102
Series 2006-T23 Class A1, 5.682% 8/12/41	303		304
Series 2007-HQ11 Class A1, 5.246% 2/12/44	970		978
Series 2007-IQ13 Class A1, 5.05% 3/15/44	30		30
Series 2007-IQ14:
Class A1, 5.38% 4/15/49	62		63
Class A2, 5.61% 4/15/49	12,445		12,826
Series 2007-T25 Class A1, 5.391% 11/12/49	55		56
Series 2003-IQ6 Class X2, 0.5897% 12/15/41 (f)(j)(l)	45,013		224
Series 2005-HQ5 Class X2, 0.1687% 1/14/42 (j)(l)	40,965		170
Series 2005-IQ9 Class X2, 1.0924% 7/15/56 (f)(j)(l)	39,175		377
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Morgan Stanley Capital I Trust: - continued
floater:
Series 2005-TOP17 Class X2, 0.5846% 12/13/41 (j)(l)	$ 28,701		$ 315
Series 2006-HQ10 Class X2, 0.4925% 11/12/41 (f)(j)(l)	2,281		21
Morgan Stanley Dean Witter Capital I Trust Series 2003-HQ2 Class X2, 1.3359% 3/12/35 (f)(j)(l)	44,124		10
Structured Asset Securities Corp. Series 1997-LLI Class F, 7.3% 10/12/34 (f)	3,490		3,579
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2005-WL5A Class K, 1.4658% 1/15/18 (f)(j)	859		825
Series 2006-WL7A:
Class E, 0.544% 9/15/21 (f)(j)	938		730
Class F, 0.604% 8/11/18 (f)(j)	1,264		848
Class G, 0.624% 8/11/18 (f)(j)	1,198		735
Class J, 0.864% 8/11/18 (f)(j)	266		124
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (f)(j)	68		47
Class AP2, 1.0658% 6/15/20 (f)(j)	112		73
Class F, 0.7458% 6/15/20 (f)(j)	2,172		1,412
Class LXR2, 1.0658% 6/15/20 (f)(j)	1,481		1,170
sequential payer:
Series 2006-C29 Class A1, 5.11% 11/15/48	98		99
Series 2007-C30 Class A1, 5.031% 12/15/43	104		104
Series 2007-C31 Class A1, 5.14% 4/15/47	75		75
Series 2006-C23 Class X, 0.085% 1/15/45 (f)(j)(l)	912,585		2,628
Series 2007-C30 Class XP, 0.4403% 12/15/43 (f)(j)(l)	242,617		2,943
Series 2007-C31A Class A2, 5.421% 4/15/47	9,795		10,131
WaMu Commercial Mortgage Securities Trust sequential payer Series 2005-C1A Class AJ, 5.19% 5/25/36 (f)	4,914		4,954
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $356,380)		331,637
Municipal Securities - 0.6%
Illinois Gen. Oblig. Series 2010, 3.321% 1/1/13	9,917		9,910
Indiana Fin. Auth.'s Econ. Dev. Bonds (Republic Svcs., Inc. Proj.) 2.5%, tender 6/1/11 (j)(k)	7,050		7,050
Kentucky Econ. Dev. Fin. Auth. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series A, 2.5%, tender 6/1/11 (j)(k)	10,200		10,200
Municipal Securities - continued
	Principal Amount (000s)		Value (000s)
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Electronic Co. Proj.):
Series 2003 A, 1.9%, tender 4/2/12 (j)	$ 3,000		$ 3,010
Series 2007 B, 1.9%, tender 6/1/12 (j)	3,000		3,004
New York State Energy Research & Dev. Auth. Facilities Rev. Bonds (Consolidated Edison Co. of New York, Inc. Proj.) Series 2010 A, 1.45%, tender 11/1/12 (j)(k)	15,900		15,869
TOTAL MUNICIPAL SECURITIES (Cost $49,059)		49,043
Foreign Government and Government Agency Obligations - 0.3%
Ontario Province 1.375% 1/27/14 (Cost $28,165)	28,250		28,139
Bank Notes - 0.0%
National City Bank, Cleveland 0.3959% 3/1/13 (j) (Cost $5,399)	5,470		5,438
Certificates of Deposit - 0.2%
Bank of Tokyo-Mitsubishi yankee 0.4% 8/8/11 (Cost $21,000)	21,000		21,001

Cash Equivalents - 6.1%
	Maturity Amount (000s)		Value (000s)
Investments in repurchase agreements in a joint trading account at:
0.2%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (b)	$ 202,251	$ 202,250
0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) #	319,498	319,496
TOTAL CASH EQUIVALENTS (Cost $521,746)		521,746
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $8,880,367)		8,880,721
NET OTHER ASSETS (LIABILITIES) - (3.5)%		(304,316)
NET ASSETS - 100%		$ 8,576,405

Swap Agreements
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps
Receive monthly notional amount multiplied by .82% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34 (i)	August 2034	$ 282	$ (157)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34 (i)	Oct. 2034	340	(141)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32 (Rating-Ba1) (i)	April 2032	129	(76)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34 (Rating-C) (i)	Feb. 2034	4	(4)
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 7.2913% 9/25/34 (Rating-B1) (i)	Oct. 2034	372	(140)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7, Class B3, 9.01% 8/25/34 (Rating-C) (i)	Sept. 2034	276	(208)
		$ 1,403	$ (726)

Legend

(a) Non-income producing

(b) Includes investment made with cash collateral received from securities on loan.

(c) Non-income producing - Security is in default.

(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(e) Security or a portion of the security is on loan at period end.

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $676,404,000 or 7.9% of net assets.

(g) Under the Temporary Liquidity Guarantee Program, the Federal Deposit Insurance Corporation guarantees principal and interest in the event of payment default or bankruptcy until the earlier of maturity date of the debt or until June 30, 2012. At the end of the period these securities amounted to $198,797,000 or 2.3% of net assets.

(h) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $1,450,000.

(i) Represents a credit default swap contract in which the Fund has sold protection on the underlying reference entity. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. For the underlying reference entity, ratings disclosed are from Moody's Investors Service, Inc. Where Moody's ratings are not available, S&P ratings are disclosed and are indicated as such. All ratings are as of the report date and do not reflect subsequent changes. Where a credit rating is not disclosed, the value is used as the measure of the payment/ performance risk.

(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(k) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(l) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

(m) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,948,000 or 0.1% of net assets.

* Amount represents less than $1,000.

Additional information on each restricted holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Iberbond 2004 PLC 4.826% 12/24/17	11/30/05	$ 5,887

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$202,250,000 due 3/01/11 at 0.20%
Barclays Capital, Inc.	$ 202,250
$319,496,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 26,702
Bank of America NA	23,735
Barclays Capital, Inc.	13,217
Credit Agricole Securities (USA), Inc.	11,868
Deutsche Bank Securities, Inc.	13,617
Goldman, Sachs & Co.	2,967
HSBC Securities (USA), Inc.	35,603
ING Financial Markets LLC	21,955
J.P. Morgan Securities, Inc.	35,603
Merrill Lynch Government Securities, Inc.	10,681
Merrill Lynch, Pierce, Fenner & Smith, Inc.	16,385
Mizuho Securities USA, Inc.	65,271
RBC Capital Markets Corp.	2,967
Societe Generale, New York Branch	23,735
Wells Fargo Securities LLC	15,190
	$ 319,496

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 2,075,668	$ -	$ 2,069,720	$ 5,948
U.S. Government and Government Agency Obligations	4,414,511	-	4,414,511	-
U.S. Government Agency - Mortgage Securities	295,417	-	295,417	-
Asset-Backed Securities	788,626	-	765,706	22,920
Collateralized Mortgage Obligations	349,495	-	349,379	116
Commercial Mortgage Securities	331,637	-	284,349	47,288
Municipal Securities	49,043	-	49,043	-
Foreign Government and Government Agency Obligations	28,139	-	28,139	-
Bank Notes	5,438	-	5,438	-
Certificates of Deposit	21,001	-	21,001	-
Cash Equivalents	521,746	-	521,746	-
Total Investments in Securities:	$ 8,880,721	$ -	$ 8,804,449	$ 76,272
Derivative Instruments:
Liabilities
Swap Agreements	$ (726)	$ -	$ (373)	$ (353)

The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 87,853
Total Realized Gain (Loss)	638
Total Unrealized Gain (Loss)	10,947
Cost of Purchases	4,375
Proceeds of Sales	(11,590)
Amortization/Accretion	(508)
Transfers in to Level 3	7,697
Transfers out of Level 3	(23,140)
Ending Balance	$ 76,272
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 10,813
Derivative Instruments:
Swap Agreements
Beginning Balance	$ (892)
Total Unrealized Gain (Loss)	72
Transfers in to Level 3	-
Transfers out of Level 3	467
Ending Balance	$ (353)
Realized gain (loss) on Swap Agreements for the period	$ 19
The change in unrealized gain (loss) for the period attributable to Level 3 Swap Agreements held at February 28, 2011	$ 72

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and Derivative Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by risk exposure as of February 28, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Risk Exposure / Derivative Type (Amounts in thousands)	Value
	Asset	Liability
Credit Risk
Swap Agreements (a)	$ -	$ (726)

(a) Value is disclosed on the Statement of Assets and Liabilities in the Unrealized Appreciation and Unrealized Depreciation on Swap Agreements line-items.

Income Tax Information

At August 31, 2010, the Fund had a capital loss carryforward of approximately $380,964,000 of which $22,435,000, $14,472,000, $2,521,000, $20,065,000, $179,350,000 and $142,121,000 will expire in fiscal 2013, 2014, 2015, 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

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

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Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $199,352 and repurchase agreements of $521,746) - See accompanying schedule: Unaffiliated issuers (cost $8,880,367)		$ 8,880,721
Cash		2,355
Receivable for investments sold		88,825
Receivable for swap agreements		3
Receivable for fund shares sold		6,657
Interest receivable		38,025
Other receivables		76
Total assets		9,016,662
Liabilities
Payable for investments purchased	$ 214,681
Payable for fund shares redeemed	18,804
Distributions payable	555
Unrealized depreciation on swap agreements	726
Accrued management fee	2,247
Other affiliated payables	918
Other payables and accrued expenses	76
Collateral on securities loaned, at value	202,250
Total liabilities		440,257
Net Assets		$ 8,576,405
Net Assets consist of:
Paid in capital		$ 8,954,105
Undistributed net investment income		3,496
Accumulated undistributed net realized gain (loss) on investments		(380,824)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		(372)
Net Assets		$ 8,576,405

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

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Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Short-Term Bond: Net Asset Value, offering price and redemption price per share ($7,991,023 ÷ 943,690 shares)		$ 8.47
Class F: Net Asset Value, offering price and redemption price per share ($585,382 ÷ 69,156 shares)		$ 8.46

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

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Financial Statements - continued

Statement of Operations

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)
Investment Income
Interest		$ 82,718
Expenses
Management fee	$ 13,235
Transfer agent fees	3,966
Fund wide operations fee	1,428
Independent trustees' compensation	16
Miscellaneous	16
Total expenses before reductions	18,661
Expense reductions	(1)	18,660
Net investment income (loss)		64,058
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	8,281
Swap agreements	19
Total net realized gain (loss)		8,300
Change in net unrealized appreciation (depreciation) on: Investment securities	(17,128)
Swap agreements	166
Total change in net unrealized appreciation (depreciation)		(16,962)
Net gain (loss)		(8,662)
Net increase (decrease) in net assets resulting from operations		$ 55,396

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

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Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 64,058	$ 163,064
Net realized gain (loss)	8,300	87,508
Change in net unrealized appreciation (depreciation)	(16,962)	136,206
Net increase (decrease) in net assets resulting from operations	55,396	386,778
Distributions to shareholders from net investment income	(68,599)	(164,826)
Share transactions - net increase (decrease)	471,863	1,562,230
Total increase (decrease) in net assets	458,660	1,784,182
Net Assets
Beginning of period	8,117,745	6,333,563
End of period (including undistributed net investment income of $3,496 and undistributed net investment income of $8,037, respectively)	$ 8,576,405	$ 8,117,745

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

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Financial Highlights - Short-Term Bond

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006 I	2006 H
Selected Per-Share Data
Net asset value, beginning of period	$ 8.48	$ 8.22	$ 8.31	$ 8.66	$ 8.86	$ 8.82	$ 8.92
Income from Investment Operations
Net investment income (loss) D	.065	.186	.260	.376	.421	.133	.344
Net realized and unrealized gain (loss)	(.006)	.264	(.097)	(.355)	(.208)	.037	(.107)
Total from investment operations	.059	.450	.163	.021	.213	.170	.237
Distributions from net investment income	(.069)	(.190)	(.253)	(.371)	(.413)	(.130)	(.337)
Net asset value, end of period	$ 8.47	$ 8.48	$ 8.22	$ 8.31	$ 8.66	$ 8.86	$ 8.82
Total Return B,C	.70%	5.53%	2.07%	.23%	2.41%	1.95%	2.70%
Ratios to Average Net Assets E,G
Expenses before reductions	.45% A	.45%	.45%	.45%	.45%	.45% A	.46%
Expenses net of fee waivers, if any	.45% A	.45%	.45%	.45%	.45%	.45% A	.46%
Expenses net of all reductions	.45% A	.45%	.45%	.45%	.45%	.44% A	.46%
Net investment income (loss)	1.53% A	2.23%	3.22%	4.42%	4.77%	4.48% A	3.88%
Supplemental Data
Net assets, end of period (in millions)	$ 7,991	$ 7,774	$ 6,333	$ 6,694	$ 7,341	$ 6,345	$ 5,865
Portfolio turnover rate F	198% A	233% J	264% J	71%	82% J	55% A	62%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^H For the period ended April 30.

^I For the four month period ended August 31. The Fund changed its fiscal year from April 30 to August 31, effective August 31, 2006.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class F

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009 G
Selected Per-Share Data
Net asset value, beginning of period	$ 8.48	$ 8.22	$ 8.10
Income from Investment Operations
Net investment income (loss) D	.069	.193	.042
Net realized and unrealized gain (loss)	(.016)	.265	.121
Total from investment operations	.053	.458	.163
Distributions from net investment income	(.073)	(.198)	(.043)
Net asset value, end of period	$ 8.46	$ 8.48	$ 8.22
Total Return B,C	.63%	5.63%	2.01%
Ratios to Average Net Assets E,H
Expenses before reductions	.35% A	.35%	.35% A
Expenses net of fee waivers, if any	.35% A	.35%	.35% A
Expenses net of all reductions	.35% A	.35%	.35% A
Net investment income (loss)	1.64% A	2.33%	3.02% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 585,382	$ 344,203	$ 398
Portfolio turnover rate F	198% A	233% I	264% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period June 26, 2009 (commencement of sale of shares) to August 31, 2009.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Short-Term Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Short-Term Bond and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.

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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011, for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, bank notes, foreign government and government agency obligations, municipal securities, U.S. government and government agency obligations and certificates of deposit, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

Swaps are marked-to-market daily based on valuations from independent pricing services or dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Pricing services utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates and, as a result, swaps are generally categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost and may

Semiannual Report

2. Significant Accounting Policies - continued

Investment Transactions and Income - continued

include proceeds received from litigation. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The principal value on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal value. The adjustments to principal due to inflation are reflected as increases or decreases to interest income even though principal is not received until maturity. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to futures transactions, swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, financing transactions, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 124,769
Gross unrealized depreciation	(127,286)
Net unrealized appreciation (depreciation) on securities and other investments	$ (2,517)
Tax cost	$ 8,883,238

3. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Semiannual Report

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including swap agreements, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Credit Risk Credit risk relates to the ability of the issuer to a financial instrument to make further principal or interest payments on an obligation or commitment that it has entered into with the Fund.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain over-the-counter derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the counterparty. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk, the Fund offsets certain payables and/or receivables with collateral. Collateral in the form of cash or securities, if required, is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the swap counterparty and the Fund's custodian bank, and is identified in the Schedule of Investments. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Derivative Instruments - continued

Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period.

Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Credit Risk
Swap Agreements (a)	$ 19	$ 166

(a) A summary of the value of derivatives by risk exposure as of period end is included at the end of the Schedule of Investments and is
representative of activity for the period.

Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.

Details of swaps open at period end, are included in the Schedule of Investments under the caption "Swap Agreements." Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation or (depreciation) and reflected in the Statement of Assets and Liabilities. Any upfront payments made or received upon entering a swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded as realized gain or (loss) ratably over the term of the swap. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

Risks of loss include credit risk. In addition, there is the risk of failure by the counterparty to perform under the terms of the agreement and lack of liquidity in the market.

Credit Default Swaps. Credit default swaps enable the Fund to buy or sell protection on a debt security or a basket of securities against a defined credit event. Under the terms of a credit default swap the buyer of protection (buyer) receives credit protection in exchange for making periodic payments to the seller of protection (seller) based on a fixed percentage applied to a notional principal amount. In return for these payments, the seller acts as a guarantor of the creditworthiness of a reference obligation. The Fund entered into credit default swaps as a seller to gain credit exposure to an issuer and/or as a buyer to provide a measure of protection against defaults of an issuer. The issuer may be either a single issuer or a "basket" of issuers. Periodic payments are made over the life of the contract provided that no credit event occurs.

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4. Derivative Instruments - continued

Credit Default Swaps - continued

For credit default swaps on most corporate and sovereign issuers, credit events include bankruptcy, failure to pay, obligation acceleration or repudiation/moratorium. For credit default swaps on corporate or sovereign issuers, the obligation that may be put to the seller is not limited to the specific reference obligation described in the Schedule of Investments. For credit default swaps on asset-backed securities, a credit event may be triggered by events such as failure to pay principal, maturity extension, rating downgrade or write-down. For credit default swaps on asset-backed securities, the reference obligation described represents the security that may be put to the seller.

As a seller, if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the reference obligation or underlying securities comprising an index or pay a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

As a buyer, if an underlying credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the reference obligation or underlying securities comprising an index or receive a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

Typically, the value of each credit default swap and credit rating disclosed for each reference obligation in the Schedule of Investments, where the Fund is the seller, can be used as measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. Any current or future declines in the value of the swap may be partially offset by upfront payments received by the Fund as the seller, if applicable. In addition to these measures, FMR monitors a variety of factors including cash flow assumptions, market activity and market sentiment as part of its ongoing process of assessing payment/performance risk.

The notional amount of credit default swaps is included in the Schedule of Investments and approximates the maximum potential amount of future payments that the Fund could be required to make if the Fund is the seller and a credit event were to occur. The total notional amount of all credit default swaps open at period end where the Fund is the seller amounted to $1,403 representing .02% of net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $1,134,599 and $953,733, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .32% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives an asset-based fee of .10% of Short-Term Bond's average net assets. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $175.

9. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010
From net investment income
Short-Term Bond	$ 64,663	$ 161,868
Class F	3,936	2,958
Total	$ 68,599	$ 164,826

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

11. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010	Six months ended February 28, 2011	Year ended August 31, 2010
Short-Term Bond
Shares sold	194,622	335,554	$ 1,649,463	$ 2,807,160
Reinvestment of distributions	7,170	18,212	60,841	152,546
Shares redeemed	(174,744)	(207,396)	(1,480,416)	(1,737,665)
Net increase (decrease)	27,048	146,370	$ 229,888	$ 1,222,041
Class F
Shares sold	33,152	42,291	$ 280,843	$ 354,784
Reinvestment of distributions	464	351	3,936	2,958
Shares redeemed	(5,063)	(2,088)	(42,804)	(17,553)
Net increase (decrease)	28,553	40,554	$ 241,975	$ 340,189

12. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

At the end of the period, the Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 31% of the total outstanding shares of the fund.

13. Credit Risk

The fund invests a portion of its assets in structured securities of issuers backed by residential mortgage loans, credit card receivables and automotive loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Short-Term Bond Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for the retail class, as well as the fund's relative investment performance for the retail class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the cumulative total returns of the retail class of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. (Class F of the fund had less than one year of performance as of December 31, 2009.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the retail class of the fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Short-Term Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the third quartile for the one- and five-year periods and the fourth quartile for the three-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the one-year cumulative total return of the retail class compared favorably to its benchmark. The Board discussed with FMR actions that have been taken by FMR to improve the fund's disappointing performance relative to its peer group and how investment personnel evaluate potential for incremental return against the risks involved in obtaining that incremental return. The Board considered the steps that FMR has taken to strengthen and refine its risk management processes in light of recent credit events that have affected various sectors of the fixed-income markets. The Board noted that this fund had underperformed in the previous year and discussed with FMR its disappointment with the continued underperformance of the fund. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Semiannual Report

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 22% means that 78% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Short-Term Bond Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2005) to the fund's management contract that lowered the fund's individual fund fee rate from 30 basis points to 20 basis points. The Board considered that the chart reflects the fund's lower management fee for 2005, as if the lower rate were in effect for the entire year.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board also considered that the current contractual arrangements for the fund (i) have the effect of setting the total "fund-level" expenses (including, among certain other expenses, the management fee) at 35 basis points, (ii) lower and limit the "class-level" transfer agent fee to 10 basis points, and (iii) limit the fund's total expenses to 45 basis points. The fees and expenses payable under these contractual arrangements may not be increased without Board and shareholder approval.

Semiannual Report

The Board noted that the total expenses of each class ranked below its competitive median for the period.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses at 35 basis points, increases or decreases in the management fee due to changes in the group fee rate will not impact total expenses.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Semiannual Report

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.

By Phone

Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

(phone_graphic)

Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555

Press

For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)

Fidelity's Web Site
www.fidelity.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York Mellon

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555

Automated line for quickest service

STP-USAN-0411
1.784864.107

Fidelity®
Short-Term Bond
Fund -
Class F

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

The fund uses "to be announced" ("TBA") securities, which are transactions in which a fund buys or sells mortgage-backed securities on a forward-commitment basis in order to gain exposure to certain securities, or for hedging purposes to adjust the risk exposure of the fund without having to restructure the portfolio. Previously, the fund was permitted to sell TBAs only if it owned, or had the right to obtain, the underlying pools of mortgage securities. The fund can now sell forward-settling TBAs when it does not own, or have the right to obtain, the underlying mortgage pools.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Semiannual Report

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
Short-Term Bond	.45%
Actual		$ 1,000.00	$ 1,007.00	$ 2.24
HypotheticalA		$ 1,000.00	$ 1,022.56	$ 2.26
Class F	.35%
Actual		$ 1,000.00	$ 1,006.30	$ 1.74
HypotheticalA		$ 1,000.00	$ 1,023.06	$ 1.76

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Semiannual Report

Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations † 57.4%		U.S. Government and U.S. Government Agency Obligations † 59.7%
	AAA 11.9%		AAA 12.9%
	AA 9.3%		AA 8.3%
	A 8.1%		A 7.3%
	BBB 8.9%		BBB 9.9%
	BB and Below 0.8%		BB and Below 0.9%
	Not Rated 0.6%		Not Rated 0.3%
	Short-Term Investments and Net Other Assets 3.0%		Short-Term Investments and Net Other Assets 0.7%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	2.1	2.4

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	1.8	1.9

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011 *			As of August 31, 2010 **
	Corporate Bonds 24.2%			Corporate Bonds 23.6%
	U.S. Government and U.S. Government Agency Obligations † 57.4%			U.S. Government and U.S. Government Agency Obligations † 59.7%
	Asset-Backed Securities 9.2%			Asset-Backed Securities 9.7%
	CMOs and Other Mortgage Related Securities 5.5%			CMOs and Other Mortgage Related Securities 5.7%
	Municipal Bonds 0.1%			Municipal Bonds 0.1%
	Other Investments 0.6%			Other Investments 0.5%
	Short-Term Investments and Net Other Assets 3.0%			Short-Term Investments and Net Other Assets 0.7%
* Foreign investments * Futures and Swaps		8.1% 0.0%	** Foreign investments ** Futures and Swaps		8.2% 0.0%

^† Includes FDIC Guaranteed Corporate Securities.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 24.2%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.6%
Auto Components - 0.4%
DaimlerChrysler NA Holding Corp.:
5.75% 9/8/11	$ 16,316		$ 16,742
5.875% 3/15/11	9,595		9,612
6.5% 11/15/13	6,814		7,680
			34,034
Diversified Consumer Services - 0.0%
Yale University 2.9% 10/15/14	5,340		5,540
Household Durables - 0.2%
Fortune Brands, Inc. 3% 6/1/12	6,820		6,900
Whirlpool Corp. 6.125% 6/15/11	7,250		7,358
			14,258
Media - 0.8%
COX Communications, Inc. 7.125% 10/1/12	18,400		20,029
NBC Universal, Inc. 3.65% 4/30/15 (f)	7,820		7,992
News America, Inc. 5.3% 12/15/14	9,474		10,494
Time Warner Cable, Inc. 5.4% 7/2/12	20,680		21,818
Time Warner, Inc. 3.15% 7/15/15	11,388		11,563
			71,896
Specialty Retail - 0.2%
Staples, Inc.:
7.375% 10/1/12	6,373		6,929
7.75% 4/1/11	8,050		8,093
			15,022
TOTAL CONSUMER DISCRETIONARY			140,750
CONSUMER STAPLES - 1.4%
Beverages - 0.7%
Anheuser-Busch InBev Worldwide, Inc.:
2.5% 3/26/13	17,822		18,201
7.2% 1/15/14 (f)	11,100		12,706
Coca-Cola Enterprises, Inc. 1.125% 11/12/13	8,628		8,518
Diageo Capital PLC 5.2% 1/30/13	2,405		2,585
Diageo Finance BV 5.5% 4/1/13	8,519		9,247
SABMiller PLC 6.2% 7/1/11 (f)	8,000		8,143
The Coca-Cola Co. 3.625% 3/15/14	590		626
			60,026
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Food & Staples Retailing - 0.1%
Wal-Mart Stores, Inc. 2.25% 7/8/15	$ 9,508		$ 9,499
Food Products - 0.4%
Cargill, Inc. 5.2% 1/22/13 (f)	2,175		2,323
Kraft Foods, Inc.:
2.625% 5/8/13	27,534		28,274
5.625% 11/1/11	986		1,017
			31,614
Tobacco - 0.2%
Altria Group, Inc.:
4.125% 9/11/15	7,500		7,796
8.5% 11/10/13	8,000		9,425
			17,221
TOTAL CONSUMER STAPLES			118,360
ENERGY - 1.6%
Energy Equipment & Services - 0.0%
Weatherford International Ltd. 5.15% 3/15/13	401		424
Oil, Gas & Consumable Fuels - 1.6%
Cenovus Energy, Inc. 4.5% 9/15/14	11,287		12,159
Delek & Avner-Yam Tethys Ltd. 5.326% 8/1/13 (f)	4,790		4,803
EnCana Corp. 6.3% 11/1/11	936		971
Enterprise Products Operating LP 4.6% 8/1/12	9,289		9,688
Gazstream SA 5.625% 7/22/13 (f)	4,565		4,719
Kaneb Pipe Line Operations Participation LP 7.75% 2/15/12	8,710		9,158
Marathon Petroleum Corp. 3.5% 3/1/16 (f)	7,520		7,560
Nexen, Inc. 5.05% 11/20/13	2,438		2,600
NGPL PipeCo LLC 6.514% 12/15/12 (f)	6,699		7,221
Petrobras International Finance Co. Ltd. 3.875% 1/27/16	8,216		8,297
Plains All American Pipeline LP/PAA Finance Corp. 4.25% 9/1/12	9,200		9,561
Ras Laffan Liquefied Natural Gas Co. Ltd. III 4.5% 9/30/12 (f)	3,544		3,664
Rockies Express Pipeline LLC 6.25% 7/15/13 (f)	8,777		9,432
Shell International Finance BV 1.875% 3/25/13	14,810		15,108
Southeast Supply Header LLC 4.85% 8/15/14 (f)	10,282		10,783
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Total Capital Canada Ltd. 1.625% 1/28/14	$ 8,680		$ 8,700
XTO Energy, Inc. 4.9% 2/1/14	8,743		9,585
			134,009
TOTAL ENERGY			134,433
FINANCIALS - 14.3%
Capital Markets - 2.5%
Goldman Sachs Group, Inc.:
3.625% 8/1/12	21,000		21,706
3.625% 2/7/16	10,300		10,286
3.7% 8/1/15	7,094		7,195
4.75% 7/15/13	5,401		5,749
5.25% 10/15/13	5,483		5,941
Janus Capital Group, Inc. 6.125% 9/15/11 (d)	5,672		5,767
JPMorgan Chase & Co.:
1.1031% 1/24/14 (j)	15,000		15,094
2.05% 1/24/14	34,170		34,275
Merrill Lynch & Co., Inc.:
5.45% 2/5/13	7,360		7,842
5.45% 7/15/14	4,605		4,960
Morgan Stanley:
1.9025% 1/24/14 (j)	8,740		8,868
2.875% 1/24/14	8,670		8,739
4.2% 11/20/14	4,995		5,187
6% 5/13/14	12,430		13,601
Northern Trust Corp. 4.625% 5/1/14	1,346		1,466
Royal Bank of Scotland PLC:
3.25% 1/11/14	8,500		8,589
3.4% 8/23/13	8,000		8,155
The Bank of New York, Inc. 4.3% 5/15/14	12,445		13,419
UBS AG Stamford Branch:
1.3044% 1/28/14 (j)	6,500		6,567
2.25% 1/28/14	16,500		16,429
			209,835
Commercial Banks - 5.3%
ANZ Banking Group Ltd. 2.125% 1/10/14 (f)	17,000		17,099
Bank of Montreal 2.125% 6/28/13	15,550		15,875
Bank of Nova Scotia 2.25% 1/22/13	24,370		24,952
Barclays Bank PLC 2.375% 1/13/14	22,100		22,211
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Canadian Imperial Bank of Commerce 1.45% 9/13/13	$ 13,791		$ 13,747
Commonwealth Bank of Australia 0.8538% 3/19/13 (f)(j)	15,350		15,381
Credit Agricole SA 0.4834% 6/7/11 (f)(j)	10,000		9,990
Credit Suisse New York Branch 2.2% 1/14/14	31,458		31,587
DBS Bank Ltd. (Singapore) 0.534% 5/16/17 (f)(j)	1,144		1,123
Fifth Third Bancorp 3.625% 1/25/16	4,799		4,819
Fifth Third Bank 0.4235% 5/17/13 (j)	1,500		1,478
ING Bank NV:
2% 10/18/13 (f)	5,000		4,951
2.65% 1/14/13 (f)	14,190		14,225
Manufacturers & Traders Trust Co. 1.8028% 4/1/13 (j)	485		484
Marshall & Ilsley Bank 6.375% 9/1/11	9,120		9,306
Nordea Bank AB 1.75% 10/4/13 (f)	12,260		12,190
PNC Funding Corp.:
3% 5/19/14	8,490		8,712
3.625% 2/8/15	8,119		8,405
Rabobank Nederland NV 1.85% 1/10/14	25,541		25,572
Regions Financial Corp. 4.875% 4/26/13	7,700		7,739
Royal Bank of Canada 1.125% 1/15/14	17,298		17,105
Royal Bank of Scotland PLC 1.5% 3/30/12 (f)	17,050		17,199
Santander US Debt SA Unipersonal 2.485% 1/18/13 (f)	13,200		12,950
Sumitomo Mitsui Banking Corp. 1.95% 1/14/14 (f)	18,000		18,018
SunTrust Bank 6.375% 4/1/11	3,000		3,012
Svenska Handelsbanken AB 2.875% 9/14/12 (f)	22,266		22,752
U.S. Bancorp:
1.375% 9/13/13	8,130		8,133
4.2% 5/15/14	8,510		9,093
Union Bank NA Mtn Bank Nts Be 2.125% 12/16/13	26,150		26,233
Wells Fargo & Co.:
3.625% 4/15/15	7,400		7,666
3.75% 10/1/14	12,527		13,193
4.375% 1/31/13	22,251		23,558
5.25% 10/23/12	3,290		3,507
Westpac Banking Corp.:
0.8531% 4/8/13 (f)(j)	8,700		8,720
1.85% 12/9/13	10,339		10,370
2.1% 8/2/13	3,181		3,216
			454,571
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Consumer Finance - 2.3%
American Honda Finance Corp.:
1.625% 9/20/13 (f)	$ 8,190		$ 8,209
2.375% 3/18/13 (f)	3,000		3,041
Capital One Financial Corp.:
5.7% 9/15/11	11,765		12,076
7.375% 5/23/14	13,000		14,982
Caterpillar Financial Services Corp.:
1.55% 12/20/13	12,000		12,043
2% 4/5/13	5,668		5,749
General Electric Capital Corp.:
1.875% 9/16/13	31,809		31,920
2.1% 1/7/14	17,406		17,459
2.25% 11/9/15	4,902		4,751
2.8% 1/8/13	1,270		1,303
3.5% 8/13/12	48,785		50,458
3.5% 6/29/15	2,968		3,051
Household Finance Corp. 6.375% 10/15/11	5,378		5,564
HSBC Finance Corp. 5.9% 6/19/12	6,125		6,468
John Deere Capital Corp.:
1.6% 3/3/14	8,550		8,542
1.875% 6/17/13	12,414		12,588
			198,204
Diversified Financial Services - 2.3%
BB&T Corp.:
3.2% 3/15/16	5,000		4,993
3.375% 9/25/13	6,700		7,002
BNP Paribas 2.125% 12/21/12	11,280		11,449
BP Capital Markets PLC:
1.55% 8/11/11	1,000		1,004
3.125% 3/10/12	8,461		8,652
Citigroup, Inc.:
1.7531% 1/13/14 (j)	12,990		13,183
2.312% 8/13/13 (j)	8,191		8,409
4.75% 5/19/15	8,020		8,469
5.125% 5/5/14	4,158		4,470
5.5% 4/11/13	6,500		6,968
6.375% 8/12/14	19,196		21,418
6.5% 8/19/13	9		10
Deutsche Bank AG London Branch 2.375% 1/11/13	29,670		30,166
Iberbond 2004 PLC 4.826% 12/24/17 (m)	6,069		5,948
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Diversified Financial Services - continued
JPMorgan Chase & Co. 3.4% 6/24/15	$ 11,433		$ 11,592
MassMutual Global Funding II 3.625% 7/16/12 (f)	4,300		4,447
New York Life Global Fund:
2.25% 12/14/12 (f)	6,570		6,719
5.25% 10/16/12 (f)	10,930		11,695
OAO Industry & Construction Bank 5.01% 9/29/15 (Issued by Or-ICB SA for OAO Industry & Construction Bank) (j)	1,425		1,389
Pricoa Global Funding I 5.45% 6/11/14 (f)	5,730		6,243
Prime Property Funding, Inc.:
5.35% 4/15/12 (f)	628		638
5.5% 1/15/14 (f)	144		151
USAA Capital Corp. 3.5% 7/17/14 (f)	9,044		9,380
Volkswagen International Finance NV 1.625% 8/12/13 (f)	6,457		6,495
Whirlpool Corp. 8% 5/1/12	7,298		7,823
ZFS Finance USA Trust IV 5.875% 5/9/62 (f)(j)	500		498
			199,211
Insurance - 0.8%
Berkshire Hathaway Finance Corp. 1.5% 1/10/14	8,340		8,340
Berkshire Hathaway, Inc. 2.125% 2/11/13	14,470		14,793
Metropolitan Life Global Funding I:
2.5% 1/11/13 (f)	11,430		11,647
2.5% 9/29/15 (f)	5,000		4,878
2.875% 9/17/12 (f)	11,731		11,996
Monumental Global Funding II 5.65% 7/14/11 (f)	146		148
Prudential Financial, Inc. 3.625% 9/17/12	9,639		9,949
Unum Group 7.625% 3/1/11	6,335		6,335
			68,086
Real Estate Investment Trusts - 0.2%
AvalonBay Communities, Inc. 5.5% 1/15/12	570		591
Developers Diversified Realty Corp. 5.375% 10/15/12	1,885		1,952
Duke Realty LP 4.625% 5/15/13	114		118
Equity One, Inc. 6.25% 12/15/14	8,778		9,417
Federal Realty Investment Trust 5.4% 12/1/13	150		162
HRPT Properties Trust 0.9019% 3/16/11 (j)	3,745		3,745
			15,985
Real Estate Management & Development - 0.3%
Colonial Properties Trust 4.8% 4/1/11	7		7
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Duke Realty LP 5.625% 8/15/11	$ 5,464		$ 5,551
ERP Operating LP:
5.2% 4/1/13	3,570		3,824
5.5% 10/1/12	117		125
Liberty Property LP 6.375% 8/15/12	7,473		7,958
Simon Property Group LP:
4.2% 2/1/15	2,715		2,860
5.3% 5/30/13	7,322		7,929
			28,254
Thrifts & Mortgage Finance - 0.6%
Bank of America Corp.:
1.7138% 1/30/14 (j)	12,000		12,150
3.7% 9/1/15	10,610		10,723
Countrywide Financial Corp. 5.8% 6/7/12	16,258		17,143
U.S. Central Federal Credit Union 1.9% 10/19/12	9,870		10,070
			50,086
TOTAL FINANCIALS			1,224,232
HEALTH CARE - 0.2%
Health Care Providers & Services - 0.1%
Express Scripts, Inc. 5.25% 6/15/12	10,265		10,764
Pharmaceuticals - 0.1%
Wyeth 5.5% 2/1/14	4,108		4,557
TOTAL HEALTH CARE			15,321
INDUSTRIALS - 0.5%
Aerospace & Defense - 0.2%
BAE Systems Holdings, Inc.:
4.95% 6/1/14 (f)	7,300		7,785
6.4% 12/15/11 (f)	8,377		8,748
			16,533
Airlines - 0.0%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	57		57
Continental Airlines, Inc. 6.795% 2/2/20	167		168
			225
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INDUSTRIALS - continued
Commercial Services & Supplies - 0.2%
R.R. Donnelley & Sons Co. 5.625% 1/15/12	$ 16,805		$ 17,152
Industrial Conglomerates - 0.1%
Covidien International Finance SA:
1.875% 6/15/13	7,770		7,855
5.45% 10/15/12	3,003		3,215
			11,070
TOTAL INDUSTRIALS			44,980
INFORMATION TECHNOLOGY - 0.3%
Office Electronics - 0.3%
Xerox Corp.:
4.25% 2/15/15	8,040		8,463
5.5% 5/15/12	9,707		10,198
6.875% 8/15/11	4,390		4,508
			23,169
MATERIALS - 0.7%
Chemicals - 0.3%
Dow Chemical Co. 4.85% 8/15/12	29,758		31,333
Metals & Mining - 0.4%
Anglo American Capital PLC 2.15% 9/27/13 (f)	16,540		16,694
BHP Billiton Financial (USA) Ltd. 5.125% 3/29/12	3,598		3,768
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (f)	3,300		3,551
Rio Tinto Finance (USA) Ltd. 8.95% 5/1/14	6,662		8,065
			32,078
TOTAL MATERIALS			63,411
TELECOMMUNICATION SERVICES - 2.2%
Diversified Telecommunication Services - 1.6%
AT&T Broadband Corp. 8.375% 3/15/13	3,140		3,561
AT&T, Inc.:
2.5% 8/15/15	10,110		10,012
4.95% 1/15/13	10,874		11,637
6.7% 11/15/13	2,385		2,699
Deutsche Telekom International Financial BV 5.375% 3/23/11	20,000		20,054
France Telecom SA 4.375% 7/8/14	12,631		13,591
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
SBC Communications, Inc.:
5.1% 9/15/14	$ 7,403		$ 8,146
5.875% 2/1/12	4,923		5,159
Telecom Italia Capital SA 6.175% 6/18/14	16,200		17,243
Telefonica Emisiones SAU 2.582% 4/26/13	19,310		19,448
Verizon New England, Inc. 6.5% 9/15/11	7,923		8,172
Verizon New York, Inc. 6.875% 4/1/12	13,328		14,137
Verizon Pennsylvania, Inc. 5.65% 11/15/11	1,000		1,034
			134,893
Wireless Telecommunication Services - 0.6%
DIRECTV Holdings LLC/DIRECTV Financing, Inc. 4.75% 10/1/14	14,442		15,535
Verizon Wireless Capital LLC:
3.75% 5/20/11	16,939		17,059
5.25% 2/1/12	5,544		5,773
Vodafone Group PLC:
4.15% 6/10/14	3,995		4,231
5.5% 6/15/11	10,561		10,713
			53,311
TOTAL TELECOMMUNICATION SERVICES			188,204
UTILITIES - 1.4%
Electric Utilities - 1.0%
Alabama Power Co. 4.85% 12/15/12	7,496		8,013
Commonwealth Edison Co.:
1.625% 1/15/14	4,701		4,689
5.4% 12/15/11	5,225		5,419
EDP Finance BV 5.375% 11/2/12 (f)	10,575		10,938
FirstEnergy Corp. 6.45% 11/15/11	11,495		11,886
FirstEnergy Solutions Corp. 4.8% 2/15/15	1,720		1,809
LG&E and KU Energy LLC 2.125% 11/15/15 (f)	5,651		5,416
Mid-American Energy Co. 5.65% 7/15/12	309		328
Niagara Mohawk Power Corp. 3.553% 10/1/14 (f)	14,230		14,683
Progress Energy, Inc.:
6.05% 3/15/14	3,658		4,073
7.1% 3/1/11	11,662		11,662
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
Southern Co.:
0.7031% 10/21/11 (j)	$ 6,432		$ 6,448
4.15% 5/15/14	1,976		2,094
			87,458
Independent Power Producers & Energy Traders - 0.1%
PSEG Power LLC 2.5% 4/15/13	12,986		13,245
Multi-Utilities - 0.3%
Dominion Resources, Inc.:
2.25% 9/1/15	5,149		5,023
6.3% 9/30/66 (j)	7,611		7,440
DTE Energy Co. 7.05% 6/1/11	9,501		9,642
			22,105
TOTAL UTILITIES			122,808
TOTAL NONCONVERTIBLE BONDS (Cost $2,033,681)		2,075,668
U.S. Government and Government Agency Obligations - 51.5%
U.S. Government Agency Obligations - 10.8%
Fannie Mae:
0.375% 12/28/12	63,570		63,067
0.75% 2/26/13	112,245		112,248
1.125% 7/30/12	11,460		11,553
1.25% 8/20/13	37,930		38,111
1.25% 2/27/14	46,865		46,784
2.5% 5/15/14	68,673		70,953
2.75% 3/13/14	53,701		55,935
4.375% 9/15/12	5,723		6,054
4.625% 10/15/13	74,550		81,253
4.75% 11/19/12	5,715		6,114
Federal Home Loan Bank:
1% 3/27/13	4,400		4,407
1.125% 5/18/12	21,500		21,667
Freddie Mac:
0.625% 12/28/12	116,990		116,839
0.75% 3/28/13	60,587		60,523
1.125% 7/27/12	29,907		30,153
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - continued
Freddie Mac: - continued
1.375% 2/25/14	$ 80,336		$ 80,450
1.75% 6/15/12	17,506		17,793
2.5% 1/7/14	15,000		15,476
2.5% 4/23/14	5,880		6,075
4.125% 12/21/12	2,549		2,704
4.5% 1/15/14	69,792		76,103
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			924,262
U.S. Treasury Inflation Protected Obligations - 0.6%
U.S. Treasury Inflation-Indexed Notes 2.375% 4/15/11	47,135		47,558
U.S. Treasury Obligations - 37.8%
U.S. Treasury Notes:
0.375% 10/31/12	40,439		40,328
0.625% 12/31/12	37,974		37,977
0.75% 5/31/12	251,275		252,511
0.875% 1/31/12	362,598		364,567
1% 4/30/12	270,341		272,401
1% 1/15/14 (e)	263,639		262,795
1.25% 2/15/14	792,756		794,747
1.375% 2/15/13	297,187		301,239
1.75% 4/15/13 (h)	551,164		562,876
1.75% 3/31/14	18,100		18,400
1.75% 7/31/15	6,081		6,052
1.875% 4/30/14	236,453		241,108
2.375% 9/30/14	23,131		23,868
2.375% 10/31/14	63,074		65,025
TOTAL U.S. TREASURY OBLIGATIONS			3,243,894
Other Government Related - 2.3%
American Express Bank FSB 3.15% 12/9/11 (FDIC Guaranteed) (g)	6,100		6,234
Bank of America Corp.:
2.1% 4/30/12 (FDIC Guaranteed) (g)	10,006		10,210
3.125% 6/15/12 (FDIC Guaranteed) (g)	3,916		4,047
Citibank NA 1.875% 6/4/12 (FDIC Guaranteed) (g)	11,830		12,021
Citigroup Funding, Inc.:
1.875% 10/22/12 (FDIC Guaranteed) (g)	22,590		23,050
1.875% 11/15/12 (FDIC Guaranteed) (g)	16,200		16,524
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
Other Government Related - continued
Citigroup Funding, Inc.: - continued
2.25% 12/10/12 (FDIC Guaranteed) (g)	$ 16,520		$ 16,952
Citigroup, Inc. 2.875% 12/9/11 (FDIC Guaranteed) (g)	3,850		3,926
General Electric Capital Corp.:
2% 9/28/12 (FDIC Guaranteed) (g)	19,730		20,168
2.625% 12/28/12 (FDIC Guaranteed) (g)	17,600		18,197
3% 12/9/11 (FDIC Guaranteed) (g)	20,007		20,422
Goldman Sachs Group, Inc.:
2.15% 3/15/12 (FDIC Guaranteed) (g)	2,300		2,340
3.25% 6/15/12 (FDIC Guaranteed) (g)	1,870		1,936
HSBC USA, Inc. 3.125% 12/16/11 (FDIC Guaranteed) (g)	2,310		2,361
JPMorgan Chase & Co. 3.125% 12/1/11 (FDIC Guaranteed) (g)	8,140		8,311
Morgan Stanley 3.25% 12/1/11 (FDIC Guaranteed) (g)	12,180		12,450
Wells Fargo & Co. 3% 12/9/11 (FDIC Guaranteed) (g)	19,250		19,648
TOTAL OTHER GOVERNMENT RELATED			198,797
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $4,388,967)		4,414,511
U.S. Government Agency - Mortgage Securities - 3.4%
Fannie Mae - 2.4%
2.018% 10/1/33 (j)	277		286
2.142% 3/1/35 (j)	195		201
2.165% 10/1/33 (j)	127		131
2.202% 2/1/33 (j)	245		253
2.213% 7/1/35 (j)	99		103
2.243% 12/1/34 (j)	256		264
2.316% 3/1/35 (j)	42		43
2.319% 3/1/35 (j)	2,602		2,695
2.397% 5/1/33 (j)	58		60
2.474% 10/1/35 (j)	496		513
2.532% 7/1/34 (j)	129		134
2.545% 5/1/35 (j)	3,292		3,464
2.553% 10/1/33 (j)	355		374
2.554% 12/1/34 (j)	1,974		2,079
2.573% 3/1/35 (j)	124		130
2.59% 6/1/36 (j)	257		269
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
2.62% 11/1/36 (j)	$ 485		$ 510
2.622% 12/1/33 (j)	1,606		1,687
2.634% 11/1/34 (j)	1,763		1,840
2.634% 7/1/35 (j)	2,701		2,839
2.643% 2/1/35 (j)	3,323		3,488
2.673% 10/1/35 (j)	12,333		12,950
2.682% 2/1/34 (j)	87		91
2.686% 11/1/36 (j)	3,561		3,740
2.688% 11/1/34 (j)	14,427		15,225
2.733% 7/1/35 (j)	1,075		1,127
2.743% 8/1/35 (j)	2,415		2,529
2.917% 4/1/35 (j)	5,446		5,731
3.193% 1/1/40 (j)	6,300		6,501
3.247% 10/1/35 (j)	772		814
3.259% 1/1/40 (j)	15,708		16,234
3.282% 2/1/40 (j)	10,904		11,268
3.335% 1/1/40 (j)	9,428		9,782
3.547% 12/1/39 (j)	1,817		1,891
3.565% 2/1/40 (j)	3,942		4,104
3.606% 3/1/40 (j)	7,383		7,702
3.768% 10/1/39 (j)	9,762		10,111
4.5% 8/1/18 to 7/1/20	39,886		42,328
5.5% 3/1/16 to 1/1/20	17,248		18,674
6.5% 11/1/11 to 3/1/35	11,432		12,459
7% 10/1/12 to 11/1/18	1,107		1,199
7.5% 6/1/12 to 11/1/31	45		48
TOTAL FANNIE MAE			205,871
Freddie Mac - 1.0%
2.521% 4/1/35 (j)	3,757		3,920
2.585% 1/1/35 (j)	173		181
2.597% 11/1/35 (j)	1,692		1,774
3.087% 8/1/34 (j)	861		901
3.147% 3/1/33 (j)	39		41
3.212% 6/1/37 (j)	2,265		2,387
3.325% 8/1/36 (j)	1,391		1,458
3.352% 10/1/35 (j)	359		380
3.524% 12/1/39 (j)	4,949		5,130
3.552% 4/1/40 (j)	4,988		5,173
3.588% 4/1/40 (j)	4,401		4,572
3.616% 2/1/40 (j)	10,651		11,084
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
4.5% 8/1/18 to 11/1/18	$ 32,249		$ 34,240
5% 4/1/20	13,952		14,995
8.5% 5/1/27 to 7/1/28	288		332
12% 11/1/19	8		9
TOTAL FREDDIE MAC			86,577
Ginnie Mae - 0.0%
7% 11/15/27 to 8/15/32	2,607		2,969
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $287,597)		295,417
Asset-Backed Securities - 9.2%
Accredited Mortgage Loan Trust:
Series 2003-3 Class A1, 4.46% 1/25/34 (AMBAC Insured)	2,169		1,735
Series 2005-1 Class M1, 0.7315% 4/25/35 (j)	1,153		863
ACE Securities Corp. Home Equity Loan Trust:
Series 2004-HE1:
Class M1, 1.0115% 3/25/34 (j)	33		32
Class M2, 1.9115% 3/25/34 (j)	115		94
Series 2005-HE2 Class M2, 0.7115% 4/25/35 (j)	115		108
Series 2006-OP1:
Class M1, 0.5415% 4/25/36 (j)	8,000		454
Class M4, 0.6315% 4/25/36 (j)	115		1
Class M5, 0.6515% 4/25/36 (j)	7		0*
Advanta Business Card Master Trust Series 2006-C1 Class C1, 0.742% 10/20/14 (j)	30		6
Ally Auto Receivables Trust:
Series 2009 B Class A3, 1.98% 10/15/13 (f)	11,180		11,313
Series 2009-A Class A3, 2.33% 6/17/13 (f)	2,780		2,816
Series 2010-1:
Class A3, 1.45% 5/15/14	1,385		1,393
Class A4, 2.3% 12/15/14	10,250		10,429
Series 2010-4 Class A3, 0.91% 11/17/14	11,420		11,344
Series 2010-5 Class A3, 1.11% 1/15/15	7,950		7,925
Series 2011-1 Class A3, 1.45% 1/15/15	9,980		10,006
Ally Master Owner Trust:
Series 2010-3 Class A, 2.88% 4/15/15 (f)	2,980		3,056
Series 2011-1 Class A2, 2.15% 1/15/16	26,800		26,759
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
AmeriCredit Automobile Receivables Trust:
Series 2006-1 Class D, 5.49% 4/6/12	$ 4,133		$ 4,140
Series 2007-AX Class A4, 0.303% 10/6/13 (XL Capital Assurance, Inc. Insured) (j)	12,967		12,898
Series 2007-CM Class A4B, 0.343% 4/7/14 (National Public Finance Guarantee Corp. Insured) (j)	17,296		17,190
Series 2010-3 Class A2, 0.77% 12/9/13	9,000		9,002
Series 2010-4 Class A3, 1.27% 4/8/15	10,300		10,259
Series 2010-B Class A2, 1.18% 2/6/14 (Assured Guaranty Corp. Insured)	5,971		5,963
Series 2011-1 Class A3, 1.39% 9/8/15	6,060		6,059
Ameriquest Mortgage Securities, Inc. pass-thru certificates:
Series 2004-R2 Class M3, 0.8115% 4/25/34 (j)	90		23
Series 2005-R2 Class M1, 0.7115% 4/25/35 (j)	1,390		1,194
Argent Securities, Inc. pass-thru certificates:
Series 2003-W7 Class A2, 1.04% 3/25/34 (j)	378		301
Series 2004-W7 Class M1, 0.8115% 5/25/34 (j)	227		157
Series 2006-W4 Class A2C, 0.4215% 5/25/36 (j)	939		336
Asset Backed Securities Corp. Home Equity Loan Trust Series 2006-HE2 Class M1, 0.6315% 3/25/36 (j)	63		2
Axon Financial Funding Ltd. 2.025% 4/4/17 (c)(f)(j)	2,749		0*
Bank of America Auto Trust:
Series 2009-1A:
Class A3, 2.67% 7/15/13 (f)	7,537		7,612
Class A4, 3.52% 6/15/16 (f)	5,400		5,592
Series 2009-2A Class A3, 2.13% 9/15/13 (f)	3,648		3,678
Series 2009-3A Class A3, 1.67% 12/15/13 (f)	10,716		10,792
Series 2010-2 Class A3, 1.31% 7/15/14	13,020		13,119
BMW Vehicle Lease Trust:
Series 2009-1 Class A3, 2.91% 3/15/12	2,754		2,772
Series 2010-1 Class A3, 0.82% 4/15/13	10,450		10,455
Brazos Higher Education Authority, Inc. Student Loan Rev. Series 2006 A2R, 1.0528% 12/1/41 (j)	4,598		4,592
Brazos Higher Education Authority, Inc. Series 2006-2 Class A9, 0.3128% 12/26/24 (j)	1,094		990
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (j)	49		49
Capital Auto Receivables Asset Trust:
Series 2006-2:
Class B, 5.07% 12/15/11	511		511
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Capital Auto Receivables Asset Trust: - continued
Series 2006-2:
Class C, 5.31% 6/15/12	$ 391		$ 396
Series 2007-1:
Class B, 5.15% 9/17/12	5,755		5,930
Class C, 5.38% 11/15/12	139		144
Capital Auto Receivables Trust Series 2007-2 Class A4A, 5.39% 2/18/14	3,359		3,415
Capital One Auto Finance Trust Series 2007-C Class A4, 5.23% 7/15/14 (FGIC Insured)	13,705		14,117
Capital One Multi-Asset Execution Trust:
Series 2008-A3 Class A3, 5.05% 2/15/16	4,100		4,426
Series 2009-A2 Class A2, 3.2% 4/15/14	22,200		22,368
Capital One Prime Auto Receivables Trust Series 2007-1 Class B1, 5.76% 12/15/13	5,590		5,646
Capital Trust Ltd. Series 2004-1:
Class A2, 0.712% 7/20/39 (f)(j)	308		231
Class B, 1.012% 7/20/39 (f)(j)	178		82
Class C, 1.362% 7/20/39 (f)(j)	229		34
Carrington Mortgage Loan Trust:
Series 2006-FRE1 Class M1, 0.5615% 7/25/36 (j)	768		49
Series 2006-NC2 Class M7, 1.1115% 6/25/36 (j)	287		1
Series 2006-NC4 Class M1, 0.5615% 10/25/36 (j)	53		4
Series 2006-RFC1 Class M9, 2.1315% 5/25/36 (j)	125		8
Series 2007-RFC1 Class A3, 0.4015% 12/25/36 (j)	1,214		456
Chase Issuance Trust:
Series 2007-A17 Class A, 5.12% 10/15/14	9,410		10,066
Series 2008-9 Class A, 4.26% 5/15/13	6,537		6,590
Series 2008-A4 Class A4, 4.65% 3/15/15	7,180		7,703
Series 2009-A3 Class A3, 2.4% 6/17/13	19,250		19,362
Chrysler Financial Auto Securitization Trust Series 2010-A Class A3, 0.91% 8/8/13	8,260		8,264
Chrysler Financial Lease Trust Series 2010-A Class A2, 1.78% 6/15/11 (f)	956		957
Citibank Credit Card Issuance Trust:
Series 2006-A4 Class A4, 5.45% 5/10/13	8,000		8,086
Series 2008-A5 Class A5, 4.85% 4/22/15	8,166		8,787
Series 2009-A3 Class A3, 2.7% 6/24/13	4,020		4,068
Series 2009-A5 Class A5, 2.25% 12/23/14	25,840		26,398
CitiFinancial Auto Issuance Trust Series 2009-1 Class A2, 1.83% 11/15/12 (f)	2,770		2,777
Citigroup Mortgage Loan Trust Series 2007-AMC4 Class M1, 0.5315% 5/25/37 (j)	515		80
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Countrywide Asset-Backed Certificates Trust:
Series 2007-11 Class 2A1, 0.3215% 6/25/47 (j)	$ 16		$ 16
Series 2007-4 Class A1A, 0.36% 9/25/37 (j)	119		114
Countrywide Home Loan Trust Series 2006-13 Class N, 7% 8/25/37 (f)	222		0
Countrywide Home Loans, Inc.:
Series 2004-2 Class 3A4, 0.5115% 7/25/34 (j)	395		318
Series 2004-3 Class M4, 1.2315% 4/25/34 (j)	107		45
Series 2004-4 Class M2, 1.0565% 6/25/34 (j)	396		227
Series 2005-3 Class MV1, 0.6815% 8/25/35 (j)	573		548
Series 2005-AB1 Class A2, 0.4715% 8/25/35 (j)	67		66
Fannie Mae subordinate REMIC pass-thru certificates Series 2004-T5:
Class AB1, 0.7353% 5/28/35 (j)	634		508
Class AB3, 0.6842% 5/28/35 (j)	273		201
Fieldstone Mortgage Investment Corp.:
Series 2004-3 Class M5, 2.4365% 8/25/34 (j)	196		112
Series 2006-2 Class M1, 0.5715% 7/25/36 (j)	6,145		192
Series 2006-3 Class 2A3, 0.4215% 11/25/36 (j)	3,407		1,261
Ford Credit Auto Lease Trust:
Series 2010-A Class A2, 1.04% 3/15/13 (f)	6,685		6,692
Series 2010-B Class A3, 0.8% 7/15/13 (f)	11,120		11,112
Ford Credit Auto Owner Trust:
Series 2006-B:
Class B, 5.43% 2/15/12	1,259		1,261
Class C, 5.68% 6/15/12	9,900		9,923
Series 2006-C:
Class B, 5.3% 6/15/12	1,306		1,326
Class C, 5.47% 9/15/12	6,400		6,516
Series 2007-A:
Class B, 5.6% 10/15/12	2,575		2,676
Class C, 5.8% 2/15/13	4,100		4,275
Series 2009-B Class A3, 2.79% 8/15/13	5,426		5,496
Series 2009-C Class A4, 4.43% 11/15/14	6,210		6,589
Series 2009-D Class A3, 2.17% 10/15/13	3,318		3,355
Series 2009-E Class A3, 1.51% 1/15/14	10,584		10,669
Series 2010-B Class A3, 0.98% 10/15/14	7,150		7,169
Ford Credit Floorplan Master Owner Trust:
Series 2006-4:
Class A, 0.5158% 6/15/13 (j)	12,180		12,157
Class B, 0.8158% 6/15/13 (j)	520		519
Series 2010-1 Class A, 1.9158% 12/15/14 (f)(j)	5,880		5,996
Series 2010-5 Class A1, 1.5% 9/15/15	7,430		7,367
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Franklin Auto Trust:
Series 2006-1 Class B, 5.14% 7/21/14	$ 14		$ 14
Series 2007-1:
Class A4, 5.03% 2/16/15	4,140		4,145
Class C, 5.43% 2/16/15	9,937		9,904
Fremont Home Loan Trust:
Series 2004-D:
Class M4, 1.6865% 11/25/34 (j)	410		97
Class M5, 1.7615% 11/25/34 (j)	262		40
Series 2005-A:
Class M3, 0.7515% 1/25/35 (j)	639		316
Class M4, 0.9415% 1/25/35 (j)	245		78
Series 2006-A Class M1, 0.5615% 5/25/36 (j)	9,027		494
Series 2006-D Class M1, 0.4915% 11/25/36 (j)	71		2
GCO Education Loan Funding Master Trust II Series 2007-1A Class C1L, 0.6915% 2/25/47 (f)(j)	1,714		1,011
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (f)	2,592		2,063
GE Business Loan Trust:
Series 2003-1 Class A, 0.6958% 4/15/31 (f)(j)	166		156
Series 2006-2A:
Class A, 0.4458% 11/15/34 (f)(j)	247		205
Class B, 0.5458% 11/15/34 (f)(j)	89		58
Class C, 0.6458% 11/15/34 (f)(j)	149		74
Class D, 1.0158% 11/15/34 (f)(j)	56		14
GE Capital Credit Card Master Note Trust Series 2009-3 Class A, 2.54% 9/15/14	15,000		15,152
Goal Capital Funding Trust Series 2007-1 Class C1, 0.7028% 6/25/42 (j)	177		147
Greenpoint Credit LLC Series 2001-1 Class 1A, 0.602% 4/20/32 (j)	93		93
GS Auto Loan Trust Series 2007-1:
Class B, 5.53% 12/15/14	9		10
Class C, 5.74% 12/15/14	8		8
GSAMP Trust:
Series 2004-AR1 Class M1, 0.9115% 6/25/34 (j)	1,604		1,122
Series 2007-HE1 Class M1, 0.5115% 3/25/47 (j)	658		37
Guggenheim Structured Real Estate Funding Ltd.:
Series 2005-1 Class C, 1.3415% 5/25/30 (f)(j)	505		257
Series 2006-3:
Class B, 0.6615% 9/25/46 (f)(j)	3,791		1,895
Class C, 0.8115% 9/25/46 (f)(j)	9,428		2,263
Home Equity Asset Trust:
Series 2003-2 Class M1, 1.5815% 8/25/33 (j)	104		76
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Home Equity Asset Trust: - continued
Series 2003-3 Class M1, 1.5515% 8/25/33 (j)	$ 526		$ 437
Series 2003-5 Class A2, 0.9615% 12/25/33 (j)	205		144
Series 2004-1 Class M2, 1.9615% 6/25/34 (j)	440		271
Series 2005-5 Class 2A2, 0.5115% 11/25/35 (j)	62		61
Series 2006-1 Class 2A3, 0.4865% 4/25/36 (j)	780		760
Series 2006-8 Class 2A1, 0.3115% 3/25/37 (j)	38		38
Honda Auto Receivables Owner Trust:
Series 2008-1 Class A4, 4.88% 9/18/14	4,901		4,979
Series 2009-3 Class A3, 2.31% 5/15/13	3,495		3,531
Series 2010-1 Class A4, 1.98% 5/23/16	2,870		2,917
Series 2010-2 Class A3, 1.34% 3/18/14	8,620		8,685
Series 2010-3 Class A3, 0.7% 5/21/13	16,600		16,564
Series 2011-1 Class A4, 1.8% 4/17/17	4,540		4,539
HSBC Home Equity Loan Trust Series 2006-2 Class M2, 0.552% 3/20/36 (j)	493		411
HSI Asset Securitization Corp. Trust Series 2007-HE1 Class 2A3, 0.4515% 1/25/37 (j)	902		379
Hyundai Auto Receivables Trust:
Series 2009-A:
Class A3, 2.03% 8/15/13	3,510		3,544
Class A4, 3.15% 3/15/16	1,490		1,549
Series 2011-A Class A3, 1.16% 4/15/15	5,730		5,730
John Deere Owner Trust Series 2009-B Class A-3, 1.57% 10/15/13	9,264		9,315
JPMorgan Auto Receivables Trust Series 2006-A Class C, 5.61% 12/15/14 (f)	789		789
JPMorgan Mortgage Acquisition Trust:
Series 2006-NC2 Class M2, 0.5615% 7/25/36 (j)	49		2
Series 2007-CH1:
Class AV4, 0.3915% 11/25/36 (j)	903		776
Class MV1, 0.4915% 11/25/36 (j)	734		486
Series 2007-CH3 Class M1, 0.5615% 3/25/37 (j)	137		7
Keycorp Student Loan Trust:
Series 1999-A Class A2, 0.6328% 12/27/29 (j)	504		433
Series 2006-A Class 2C, 1.4528% 3/27/42 (j)	516		95
Long Beach Auto Receivables Trust Series 2007-A Class A4, 5.025% 1/15/14 (FSA Insured)	209		212
Long Beach Mortgage Loan Trust:
Series 2004-2 Class M2, 1.3415% 6/25/34 (j)	64		40
Series 2006-6 Class 2A3, 0.4115% 7/25/36 (j)	10,340		4,229
Marriott Vacation Club Owner Trust:
Series 2005-2 Class A, 5.25% 10/20/27 (f)	1,079		1,110
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Marriott Vacation Club Owner Trust: - continued
Series 2006-1A:
Class B, 5.827% 4/20/28 (f)	$ 423		$ 404
Class C, 6.125% 4/20/28 (f)	423		370
MASTR Asset Backed Securities Trust:
Series 2006-AM3 Class M1, 0.5215% 10/25/36 (j)	326		18
Series 2007-HE1 Class M1, 0.5615% 5/25/37 (j)	528		27
Mercedes-Benz Auto Lease Trust Series 2011-1A Class A3 1.18% 11/15/13 (f)	17,060		17,057
Mercedes-Benz Auto Receivables Trust Series 2009-1 Class A3, 1.67% 1/15/14	5,010		5,057
Meritage Mortgage Loan Trust Series 2004-1 Class M1, 1.0115% 7/25/34 (j)	44		29
Merrill Auto Trust Securitization Series 2007-1 Class B, 5.79% 12/15/13	26		26
Merrill Lynch Mortgage Investors Trust:
Series 2003-OPT1 Class M1, 0.9115% 7/25/34 (j)	126		99
Series 2006-FM1 Class A2B, 0.3715% 4/25/37 (j)	1,212		1,108
Series 2006-MLN1 Class A2A, 0.3315% 7/25/37 (j)	3		3
Series 2006-OPT1 Class A1A, 0.5215% 6/25/35 (j)	1,450		1,190
Morgan Stanley ABS Capital I Trust:
Series 2004-HE6 Class A2, 0.6015% 8/25/34 (j)	367		305
Series 2005-NC1 Class M1, 0.7015% 1/25/35 (j)	269		190
Series 2005-NC2 Class B1, 1.4315% 3/25/35 (j)	280		42
Series 2006-NC4 Class A2D, 0.5015% 6/25/36 (j)	7,135		2,871
Series 2007-HE2 Class M1, 0.5115% 1/25/37 (j)	63		2
National Collegiate Student Loan Trust:
Series 2004-2 Class AIO, 9.75% 10/25/14 (l)	4,449		612
Series 2006-1 Class AIO, 5.5% 4/25/11 (l)	8,116		63
Series 2006-2 Class AIO, 6% 8/25/11 (l)	3,755		77
Series 2006-3 Class AIO, 7.1% 1/25/12 (l)	26,229		1,180
Series 2006-4:
Class A1, 0.2915% 3/25/25 (j)	86		85
Class AIO, 6.35% 2/27/12 (l)	4,953		264
Class D, 1.3615% 5/25/32 (j)	398		9
Series 2007-1 Class AIO, 7.27% 4/25/12 (l)	380		29
Series 2007-2 Class AIO, 6.7% 7/25/12 (l)	323		27
New Century Home Equity Loan Trust Series 2005-D Class M2, 0.7315% 2/25/36 (j)	327		30
Nissan Auto Lease Trust:
Series 2009-A Class A3, 2.92% 12/15/11	3,474		3,485
Series 2009-B Class A3, 2.07% 1/15/15	7,364		7,400
Series 2010-A Class A2, 1.1% 3/15/13	4,725		4,730
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Nissan Auto Lease Trust: - continued
Series 2010-B Class A3, 1.12% 12/15/13	$ 7,510		$ 7,518
Northstar Education Finance, Inc., Delaware Series 2005-1 Class A5, 1.0384% 10/30/45 (j)	4,554		4,563
Ocala Funding LLC:
Series 2005-1A Class A, 1.7535% 3/20/49(c)(f)(j)	381		0
Series 2006-1A Class A, 1.662% 3/20/49 (c)(f)(j)	792		0
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (j)	4		4
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (j)	8		8
Park Place Securities, Inc.:
Series 2004-WCW1:
Class M3, 1.5115% 9/25/34 (j)	3,309		2,103
Class M4, 1.7115% 9/25/34 (j)	460		215
Series 2004-WWF1 Class M4, 1.3615% 12/25/34 (j)	7,490		2,323
Series 2005-WCH1:
Class M2, 0.7815% 1/25/36 (j)	944		876
Class M3, 0.8215% 1/25/36 (j)	322		228
Class M4, 1.0915% 1/25/36 (j)	994		410
Series 2005-WHQ2:
Class M7, 1.5115% 5/25/35 (j)	1,178		29
Class M9, 2.1415% 5/25/35 (j)	17		0*
Providian Master Note Trust Series 2006-C1A Class C1, 0.8158% 3/15/15 (f)(j)	2,746		2,746
Residential Asset Mortgage Products, Inc. Series 2003-RZ2 Class A1, 3.6% 4/25/33 (AMBAC Insured)	836		778
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-HE1 Class A, 1.0615% 4/25/33 (j)	3		3
Santander Drive Auto Receivables Trust:
Series 2007-2 Class A3, 1.0658% 8/15/14 (National Public Finance Guarantee Corp. Insured) (j)	13,460		13,463
Series 2010-2 Class A2, 0.95% 8/15/13	18,100		18,122
Series 2010-3 Class A2, 0.93% 6/17/13	6,170		6,171
Saxon Asset Securities Trust Series 2004-1 Class M1, 1.0565% 3/25/35 (j)	1,027		851
Securitized Asset Backed Receivables LLC Trust:
Series 2005-FR4 Class B3, 1.9815% 1/25/36 (j)	18		1
Series 2006-FR4 Class A2A, 0.3415% 8/25/36 (j)	11		5
Series 2007-NC1 Class A2A, 0.3115% 12/25/36 (j)	4		4
Sierra Receivables Funding Co. Series 2007-1A Class A2, 0.4106% 3/20/19 (FGIC Insured) (f)(j)	441		415
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
SLM Private Credit Student Loan Trust:
Series 2004 B Class A2, 0.5016% 6/15/21 (j)	$ 8,200		$ 7,548
Series 2004-A:
Class B, 0.8816% 6/15/33 (j)	2,087		1,131
Class C, 1.2516% 6/15/33 (j)	5,771		512
Series 2004-B Class C, 1.1716% 9/15/33 (j)	8,600		4,120
Specialty Underwriting & Residential Finance Trust Series 2006-AB2 Class N1, 5.75% 6/25/37 (f)	157		0
Structured Asset Investment Loan Trust Series 2004-8 Class M5, 1.4115% 9/25/34 (j)	48		20
SVO VOI Mortgage Corp. Series 2006-AA Class A, 5.28% 2/20/24 (f)	201		207
Terwin Mortgage Trust Series 2003-4HE Class A1, 1.1215% 9/25/34 (j)	386		301
Toyota Auto Receivables Owner Trust Series 2010-B Class M3, 1.04% 2/18/14	4,710		4,731
Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 0.8628% 4/6/42 (f)(j)	265		8
USAA Auto Owner Trust Series 2009-2 Class A3, 1.54% 2/18/14	8,404		8,460
Volkswagen Auto Lease Trust:
Series 2009-A Class A3, 3.41% 4/16/12	7,700		7,759
Series 2010-A Class A3, 0.85% 11/20/13	16,770		16,753
Wachovia Auto Loan Owner Trust Series 2007-1:
Class C, 5.45% 10/22/12	2,025		2,053
Class D, 5.65% 2/20/13	14,940		15,040
Wachovia Auto Owner Trust Series 2008-A Class A4B, 1.412% 3/20/14 (j)	7,440		7,501
WaMu Asset Holdings Corp. Series 2006-8 Class N1, 6.048% 10/25/46 (f)	598		0
WaMu Master Note Trust Series 2006-C2A Class C2, 0.7658% 8/15/15 (f)(j)	7,433		7,408
Wells Fargo Home Equity Trust Series 2004-3 Class A, 4.5% 11/27/34 (a)(f)	5		0
Whinstone Capital Management Ltd. Series 1A Class B3, 2.1031% 10/25/44 (f)(j)	5,586		2,514
TOTAL ASSET-BACKED SECURITIES (Cost $841,323)		788,626
Collateralized Mortgage Obligations - 4.1%
	Principal Amount (000s)		Value (000s)
Private Sponsor - 1.6%
Arkle Master Issuer PLC floater Series 2006-1A Class 4A1, 0.4035% 2/17/52 (f)(j)	$ 8,550		$ 8,524
Arran Residential Mortgages Funding No. 1 PLC floater Series 2006-1A Class DB, 0.7331% 4/12/56 (f)(j)	961		954
Banc of America Funding Corp. sequential payer Series 2010-R4 Class 2A1, 4.5% 3/26/37 (f)	4,796		4,887
Banc of America Funding Trust sequential payer Series 2009-R1 Class A1, 5.081% 5/20/36 (j)	3,559		3,616
Banc of America Large Loan, Inc. Series 2005-MIB1 Class A2, 0.4758% 3/15/22 (f)(j)	1,746		1,710
Banc of America Mortgage Securities, Inc.:
Series 2003-L Class 2A1, 2.9055% 1/25/34 (j)	304		286
Series 2004-1 Class 2A2, 3.2375% 10/25/34 (j)	219		199
Series 2004-A Class 2A2, 2.9991% 2/25/34 (j)	65		58
Series 2004-B:
Class 1A1, 2.9237% 3/25/34 (j)	59		54
Class 2A2, 3.0527% 3/25/34 (j)	196		189
Series 2004-D Class 2A2, 2.9567% 5/25/34 (j)	443		407
Series 2004-G Class 2A7, 3.0214% 8/25/34 (j)	409		368
Series 2004-H Class 2A1, 3.1667% 9/25/34 (j)	366		332
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T24 Class X2, 0.4264% 10/12/41 (f)(j)(l)	882		10
Countrywide Alternative Loan Trust Series 2006-OC5N Class N, 7.25% 7/25/37 (f)	2,020		0
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 2.9234% 11/25/34 (j)	29		27
Credit Suisse Mortgage Capital Certificates sequential payer Series 2010-16 Class A1, 3% 6/25/50 (f)	5,881		5,822
Fosse Master Issuer PLC floater:
Series 2006-1A:
Class B2, 0.4631% 10/18/54 (f)(j)	2,075		2,063
Class C2, 0.7731% 10/18/54 (f)(j)	696		690
Class M2, 0.5531% 10/18/54 (f)(j)	1,193		1,171
Series 2007-1A Class A2, 0.3831% 10/18/54 (f)(j)	1,817		1,812
Gracechurch Mortgage Financing PLC floater:
Series 2006-1 Class D2, 0.7825% 11/20/56 (f)(j)	1,751		1,709
Series 2007-1A Class 3A1, 0.3925% 11/20/56 (f)(j)	7,150		7,052
Granite Master Issuer PLC floater:
Series 2005-4 Class C2, 1.363% 12/20/54 (j)	49		32
Series 2006-1A Class C2, 1.463% 12/20/54 (f)(j)	4,170		2,683
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Granite Master Issuer PLC floater: - continued
Series 2006-2:
Class C1, 0.733% 12/20/54 (j)	$ 15,090		$ 9,710
Class M2, 0.493% 12/20/54 (j)	3,000		2,265
Series 2006-3 Class C2, 0.763% 12/20/54 (j)	6,611		4,254
Series 2006-4:
Class B1, 0.353% 12/20/54 (j)	13,366		11,027
Class C1, 0.643% 12/20/54 (j)	8,172		5,259
Class M1, 0.433% 12/20/54 (j)	3,521		2,658
Series 2007-1:
Class 1C1, 0.863% 12/20/54 (j)	1,340		862
Class 1M1, 0.563% 12/20/54 (j)	881		665
Class 2C1, 1.223% 12/20/54 (j)	610		393
Class 2M1, 0.763% 12/20/54 (j)	1,132		855
Series 2007-2 Class 2C1, 0.694% 12/17/54 (j)	1,568		1,009
Granite Mortgages PLC floater Series 2003-3 Class 1C, 2.7531% 1/20/44 (j)	2,644		1,983
Harborview Mortgage Loan Trust floater Series 2005-2 Class 2A1A, 0.482% 5/19/35 (j)	247		165
Holmes Master Issuer PLC floater Series 2007-1 Class 3A1, 0.3831% 7/15/40 (j)	17,544		17,519
MASTR Adjustable Rate Mortgages Trust Series 2007-3 Class 22A2, 0.4715% 5/25/47 (j)	681		470
MASTR Asset Backed Securities Trust Series 2006-NC3 Class M1, 0.4915% 10/25/36 (j)	96		0*
Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 0.4315% 2/25/37 (j)	1,079		776
Merrill Lynch Floating Trust floater Series 2006-1:
Class B, 0.436% 6/15/22 (f)(j)	151		142
Class C, 0.456% 6/15/22 (f)(j)	926		821
Class D, 0.466% 6/15/22 (f)(j)	356		304
Class E, 0.476% 6/15/22 (f)(j)	570		480
Class F, 0.506% 6/15/22 (f)(j)	984		814
Class G, 0.576% 6/15/22 (f)(j)	214		174
Class H, 0.596% 6/15/22 (f)(j)	428		341
Class J, 0.636% 6/15/22 (f)(j)	499		376
Option One Mortgage Loan Trust floater Series 2007-CP1 Class M1, 0.5615% 3/25/37 (j)	1,778		116
Permanent Master Issuer PLC floater Series 2007-1 Class 4A, 0.3831% 10/15/33 (j)	5,260		5,209
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B:
Class B5, 2.614% 7/10/35 (f)(j)	$ 769		$ 625
Class B6, 3.114% 7/10/35 (f)(j)	91		70
Residential Asset Mortgage Products, Inc. sequential payer:
Series 2003-SL1 Class A31, 7.125% 4/25/31	209		219
Series 2004-SL3 Class A1, 7% 8/25/16	14		14
Residential Funding Securities Corp. floater Series 2003-RP2 Class A1, 0.7115% 6/25/33 (f)(j)	207		169
Sasco Net Interest Margin Trust Series 2006-BC1A Class A, 6.25% 3/27/36 (f)	1,466		0
Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 0.8997% 7/20/34 (j)	27		20
TBW Mortgage-Backed pass-thru certificates floater Series 2006-4 Class A3, 0.46% 9/25/36 (j)	2,204		1,569
Thornburg Mortgage Securities Trust floater:
Series 2006-4 Class A2B, 0.38% 7/25/36 (j)	8,980		8,950
Series 2006-5 Class A1, 0.3815% 10/25/46 (j)	4,125		4,081
Wachovia Bank Commercial Mortgage Trust Series 2004-C14 Class PP, 5.3117% 8/15/41 (f)(j)	5,697		4,729
Wells Fargo Mortgage Backed Securities Trust:
Series 2005-AR2 Class 2A2, 2.8076% 3/25/35 (j)	672		628
Series 2005-AR3 Class 2A1, 2.8794% 3/25/35 (j)	787		719
TOTAL PRIVATE SPONSOR			135,095
U.S. Government Agency - 2.5%
Fannie Mae:
planned amortization class:
Series 1993-187 Class L, 6.5% 7/25/23	1,102		1,127
Series 2006-53 Class WB, 6% 12/25/31	7,925		8,120
Series 2006-64 Class PA, 5.5% 2/25/30	4,797		4,867
Series 2010-123 Class DL, 3.5% 11/25/25	7,236		7,507
Fannie Mae subordinate REMIC pass-thru certificates:
floater:
Series 2008-76 Class EF, 0.7615% 9/25/23 (j)	2,698		2,696
Series 2010-86 Class FE, 0.7115% 8/25/25 (j)	11,742		11,742
planned amortization class Series 2006-54 Class PE, 6% 2/25/33	4,122		4,422
sequential payer:
Series 2001-40 Class Z, 6% 8/25/31	2,126		2,327
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Fannie Mae subordinate REMIC pass-thru certificates: - continued
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	$ 1,261		$ 1,351
Series 2003-129 Class GF, 0.6615% 4/25/30 (j)	1,205		1,208
Series 2003-76 Class BA, 4.5% 3/25/18	5,229		5,489
Series 2010-143 Class B, 3.5% 12/25/25	11,270		11,680
Freddie Mac sequential payer:
Series 2114 Class ZM, 6% 1/15/29	965		1,058
Series 2508 Class UL, 5% 12/15/16	399		404
Freddie Mac Multi-class participation certificates guaranteed:
floater Series 3346 Class FA, 0.4958% 2/15/19 (j)	21,753		21,775
planned amortization class:
Series 2382 Class MB, 6% 11/15/16	2,609		2,808
Series 2394 Class KD, 6% 12/15/16	1,483		1,605
Series 2417 Class EH, 6% 2/15/17	782		842
Series 2535 Class PC, 6% 9/15/32	2,481		2,634
Series 2755 Class LC, 4% 6/15/27	406		405
Series 2770 Class UD, 4.5% 5/15/17	8,730		8,987
Series 2866 Class XE, 4% 12/15/18	9,360		9,762
Series 2901 Class UM, 4.5% 1/15/30	7,422		7,552
sequential payer:
Series 2609 Class UJ, 6% 2/15/17	1,149		1,187
Series 2635 Class DG, 4.5% 1/15/18	5,587		5,840
Series 2915 Class DC, 4.5% 3/15/19	5,501		5,704
Series 2970 Class YA, 5% 9/15/18	1,302		1,330
Series 3427 Class FX, 0.4158% 8/15/18 (j)	6,564		6,558
Series 3555:
Class CM, 4% 12/15/14	26,113		26,993
Class KH, 4% 12/15/14	27,822		28,946
Series 3560 Class LA, 2% 8/15/14	6,670		6,749
Series 3573 Class LC, 1.85% 8/15/14	10,614		10,725
TOTAL U.S. GOVERNMENT AGENCY			214,400
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $347,050)		349,495
Commercial Mortgage Securities - 3.9%
	Principal Amount (000s)		Value (000s)
Asset Securitization Corp. Series 1997-D5 Class PS1, 1.4561% 2/14/43 (j)(l)	$ 15,829		$ 375
Banc of America Commercial Mortgage Trust sequential payer:
Series 2007-2 Class A1, 5.421% 4/10/49	31		32
Series 2007-3 Class A1, 5.6579% 6/10/49 (j)	5,249		5,356
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2006-1 Class A1, 5.219% 9/10/45 (j)	41		41
Series 2007-1 Class A2, 5.381% 1/15/49	2,296		2,337
Series 2004-6 Class XP, 0.5011% 12/10/42 (j)(l)	31,380		101
Series 2005-4 Class XP, 0.1875% 7/10/45 (j)(l)	42,989		151
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class F, 0.7358% 3/15/22 (f)(j)	415		369
Class G, 0.7958% 3/15/22 (f)(j)	269		234
Series 2006-BIX1:
Class F, 0.5758% 10/15/19 (f)(j)	1,104		972
Class G, 0.5958% 10/15/19 (f)(j)	767		644
Bayview Commercial Asset Trust:
floater:
Series 2003-2 Class M1, 1.1115% 12/25/33 (f)(j)	52		38
Series 2004-1:
Class A, 0.6215% 4/25/34 (f)(j)	2,366		2,094
Class B, 2.1615% 4/25/34 (f)(j)	252		141
Class M1, 0.8215% 4/25/34 (f)(j)	214		164
Class M2, 1.4615% 4/25/34 (f)(j)	187		131
Series 2004-2:
Class A, 0.6915% 8/25/34 (f)(j)	1,816		1,580
Class M1, 0.8415% 8/25/34 (f)(j)	606		448
Series 2004-3:
Class A1, 0.6315% 1/25/35 (f)(j)	3,311		2,848
Class A2, 0.6815% 1/25/35 (f)(j)	470		352
Class M1, 0.7615% 1/25/35 (f)(j)	233		168
Class M2, 1.2615% 1/25/35 (f)(j)	132		89
Series 2005-2A:
Class A1, 0.5715% 8/25/35 (f)(j)	885		721
Class M1, 0.6915% 8/25/35 (f)(j)	61		41
Class M2, 0.7415% 8/25/35 (f)(j)	101		63
Class M3, 0.7615% 8/25/35 (f)(j)	56		34
Class M4, 0.8715% 8/25/35 (f)(j)	51		29
Series 2005-3A:
Class A1, 0.5815% 11/25/35 (f)(j)	463		378
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2005-3A:
Class A2, 0.6615% 11/25/35 (f)(j)	$ 322		$ 255
Class M1, 0.7015% 11/25/35 (f)(j)	55		36
Class M2, 0.7515% 11/25/35 (f)(j)	70		43
Class M3, 0.7715% 11/25/35 (f)(j)	62		36
Class M4, 0.8615% 11/25/35 (f)(j)	78		41
Series 2005-4A:
Class A2, 0.6515% 1/25/36 (f)(j)	4,383		3,419
Class B1, 1.6615% 1/25/36 (f)(j)	343		131
Class M1, 0.7115% 1/25/36 (f)(j)	1,399		931
Class M2, 0.7315% 1/25/36 (f)(j)	455		284
Class M3, 0.7615% 1/25/36 (f)(j)	603		344
Class M4, 0.8715% 1/25/36 (f)(j)	335		174
Class M5, 0.9115% 1/25/36 (f)(j)	335		159
Class M6, 0.9615% 1/25/36 (f)(j)	340		139
Series 2006-1:
Class A2, 0.6215% 4/25/36 (f)(j)	1,463		1,171
Class M1, 0.6415% 4/25/36 (f)(j)	455		296
Class M2, 0.6615% 4/25/36 (f)(j)	481		294
Class M3, 0.6815% 4/25/36 (f)(j)	413		235
Class M4, 0.7815% 4/25/36 (f)(j)	235		123
Class M5, 0.8215% 4/25/36 (f)(j)	226		106
Class M6, 0.9015% 4/25/36 (f)(j)	493		222
Series 2006-2A:
Class A1, 0.4915% 7/25/36 (f)(j)	1,625		1,300
Class A2, 0.5415% 7/25/36 (f)(j)	1,204		915
Class B1, 1.1315% 7/25/36 (f)(j)	436		157
Class B3, 2.9615% 7/25/36 (f)(j)	718		187
Class M1, 0.5715% 7/25/36 (f)(j)	1,263		720
Class M2, 0.5915% 7/25/36 (f)(j)	889		471
Class M3, 0.6115% 7/25/36 (f)(j)	704		341
Class M4, 0.6815% 7/25/36 (f)(j)	472		203
Class M5, 0.7315% 7/25/36 (f)(j)	581		238
Class M6, 0.8015% 7/25/36 (f)(j)	914		329
Series 2006-3A:
Class B1, 1.0615% 10/25/36 (f)(j)	99		18
Class B2, 1.6115% 10/25/36 (f)(j)	71		11
Class B3, 2.8615% 10/25/36 (f)(j)	116		14
Class M4, 0.6915% 10/25/36 (f)(j)	109		40
Class M5, 0.7415% 10/25/36 (f)(j)	131		43
Class M6, 0.8215% 10/25/36 (f)(j)	256		64
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2006-4A:
Class A1, 0.4915% 12/25/36 (f)(j)	$ 503		$ 405
Class A2, 0.5315% 12/25/36 (f)(j)	2,282		1,711
Class B1, 0.9615% 12/25/36 (f)(j)	79		14
Class B2, 1.5115% 12/25/36 (f)(j)	81		13
Class B3, 2.7115% 12/25/36 (f)(j)	137		16
Class M1, 0.5515% 12/25/36 (f)(j)	164		95
Class M2, 0.5715% 12/25/36 (f)(j)	109		59
Class M3, 0.6015% 12/25/36 (f)(j)	111		55
Class M4, 0.6615% 12/25/36 (f)(j)	133		59
Class M5, 0.7015% 12/25/36 (f)(j)	122		51
Class M6, 0.7815% 12/25/36 (f)(j)	109		40
Series 2007-1:
Class A2, 0.5315% 3/25/37 (f)(j)	2,355		1,672
Class B1, 0.9315% 3/25/37 (f)(j)	756		151
Class B2, 1.4115% 3/25/37 (f)(j)	545		87
Class B3, 3.6115% 3/25/37 (f)(j)	1,547		170
Class M1, 0.5315% 3/25/37 (f)(j)	640		307
Class M2, 0.5515% 3/25/37 (f)(j)	481		207
Class M3, 0.5815% 3/25/37 (f)(j)	427		162
Class M4, 0.6315% 3/25/37 (f)(j)	328		115
Class M5, 0.6815% 3/25/37 (f)(j)	535		166
Class M6, 0.7615% 3/25/37 (f)(j)	748		187
Series 2007-2A:
Class A1, 0.5315% 7/25/37 (f)(j)	402		297
Class A2, 0.5815% 7/25/37 (f)(j)	377		185
Class B1, 1.8615% 7/25/37 (f)(j)	117		15
Class B2, 2.5115% 7/25/37 (f)(j)	102		12
Class B3, 3.6115% 7/25/37 (f)(j)	114		10
Class M1, 0.6315% 7/25/37 (f)(j)	134		43
Class M2, 0.6715% 7/25/37 (f)(j)	75		22
Class M3, 0.7515% 7/25/37 (f)(j)	75		19
Class M4, 0.9115% 7/25/37 (f)(j)	146		26
Class M5, 1.0115% 7/25/37 (f)(j)	129		19
Class M6, 1.2615% 7/25/37 (f)(j)	164		23
Series 2007-3:
Class A2, 0.5515% 7/25/37 (f)(j)	588		394
Class B1, 1.2115% 7/25/37 (f)(j)	513		67
Class B2, 1.8615% 7/25/37 (f)(j)	1,322		132
Class B3, 4.2615% 7/25/37 (f)(j)	682		55
Class M1, 0.5715% 7/25/37 (f)(j)	443		199
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bayview Commercial Asset Trust: - continued
floater:
Series 2007-3:
Class M2, 0.6015% 7/25/37 (f)(j)	$ 475		$ 166
Class M3, 0.6315% 7/25/37 (f)(j)	771		231
Class M4, 0.7615% 7/25/37 (f)(j)	1,209		339
Class M5, 0.8615% 7/25/37 (f)(j)	613		135
Class M6, 1.0615% 7/25/37 (f)(j)	467		93
Series 2007-4A:
Class A2, 0.8115% 9/25/37 (f)(j)	4,626		1,388
Class B1, 2.8115% 9/25/37 (f)(j)	782		25
Class B2, 3.7115% 9/25/37 (f)(j)	2,912		73
Class M1, 1.2115% 9/25/37 (f)(j)	729		109
Class M2, 1.3115% 9/25/37 (f)(j)	729		88
Class M4, 1.8615% 9/25/37 (f)(j)	1,916		172
Class M5, 2.0115% 9/25/37 (f)(j)	1,916		134
Class M6, 2.2115% 9/25/37 (f)(j)	1,917		115
Series 2004-1 Class IO, 1.25% 4/25/34 (f)(l)	17,376		608
Series 2006-2A Class IO, 2.4155% 7/25/36 (d)(f)(l)	46,993		2,556
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AAB, 5.4539% 3/11/39 (j)	7,695		8,172
Bear Stearns Commercial Mortgage Securities Trust:
floater:
Series 2006-BBA7:
Class G, 0.7058% 3/15/19 (f)(j)	542		453
Class H, 0.9158% 3/15/19 (f)(j)	365		271
Class J, 1.1158% 3/15/19 (f)(j)	274		194
Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (f)(j)	303		248
Class E, 0.5658% 3/15/22 (f)(j)	1,576		1,214
Class F, 0.6158% 3/15/22 (f)(j)	967		696
Class G, 0.6658% 3/15/22 (f)(j)	248		171
Class H, 0.8158% 3/15/22 (f)(j)	303		191
Class J, 0.9658% 3/15/22 (f)(j)	303		151
sequential payer:
Series 2006-PW12 Class A2, 5.688% 9/11/38	6,372		6,396
Series 2006-T24 Class A1, 4.905% 10/12/41 (j)	35		35
Series 2007-PW17:
Class A1, 5.282% 6/11/50	4,268		4,336
Class A2, 5.574% 6/11/50	3,020		3,113
Series 2003-PWR2 Class X2, 0.5297% 5/11/39 (f)(j)(l)	55,343		174
Series 2004-PWR6 Class X2, 0.6144% 11/11/41 (f)(j)(l)	17,880		214
Series 2005-PWR9 Class X2, 0.3626% 9/11/42 (f)(j)(l)	112,943		1,079
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Bear Stearns Commercial Mortgage Securities Trust: - continued
Series 2006-PW13 Class A1, 5.294% 9/11/41	$ 3,668		$ 3,706
Series 2007-T28 Class A1, 5.422% 9/11/42	1,849		1,883
C-BASS Trust floater Series 2006-SC1 Class A, 0.5315% 5/25/36 (f)(j)	5,321		3,963
CDC Commercial Mortgage Trust Series 2002-FX1 Class XCL, 2.1173% 5/15/35 (f)(j)(l)	92,734		2,043
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2:
Class G, 0.594% 8/15/21 (f)(j)	323		302
Class H, 0.634% 8/15/21 (f)(j)	258		233
Series 2004-C2 Class XP, 0.9134% 10/15/41 (f)(j)(l)	23,133		168
Series 2007-C6 Class A1, 5.622% 12/10/49 (j)	143		144
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4 Class A2A, 5.237% 12/11/49	3,756		3,794
Series 2006-CD3 Class X3, 0.4254% 10/15/48 (j)(l)	250,621		3,056
Cobalt CMBS Commercial Mortgage Trust sequential payer Series 2007-C2 Class A2, 5.334% 4/15/47	11,447		11,786
COMM pass-thru certificates:
floater:
Series 2005-F10A:
Class D, 0.5758% 4/15/17 (f)(j)	640		582
Class E, 0.6358% 4/15/17 (f)(j)	204		181
Class F, 0.6758% 4/15/17 (f)(j)	116		99
Class G, 0.8158% 4/15/17 (f)(j)	116		95
Class H, 0.8858% 4/15/17 (f)(j)	116		89
Class J, 1.1158% 4/15/17 (f)(j)	89		62
Series 2005-FL11:
Class F, 0.7158% 11/15/17 (f)(j)	125		114
Class G, 0.7658% 11/15/17 (f)(j)	87		78
Series 2006-CN2A Class A2FL, 0.483% 2/5/19 (f)(j)	3,060		3,005
sequential payer Series 2006-CN2A:
Class A2FX, 5.449% 2/5/19 (f)	7,645		7,645
Class AJFX, 5.478% 2/5/19 (f)	4,380		4,373
Series 2004-LBN2 Class X2, 0.8571% 3/10/39 (f)(j)(l)	8,328		1
Series 2005-LP5 Class XP, 0.2903% 5/10/43 (j)(l)	27,507		98
Series 2006-C8 Class XP, 0.4911% 12/10/46 (j)(l)	4,769		58
Commercial Mortgage Asset Trust sequential payer Series 1999-C1 Class A3, 6.64% 1/17/32	103		103
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Credit Suisse Commercial Mortgage Trust Series 2006-C5 Class ASP, 0.6744% 12/15/39 (j)(l)	$ 195,837		$ 3,539
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer Series 2002-CP5 Class A1, 4.106% 12/15/35	2,555		2,590
Series 2001-CK6 Class AX, 0.8911% 8/15/36 (j)(l)	94,324		370
Series 2001-SPGA Class A2, 6.515% 8/13/18 (f)	13,475		13,711
Series 2004-C1 Class ASP, 0.9583% 1/15/37 (f)(j)(l)	44,162		7
Series 2005-C1 Class ASP, 0.3207% 2/15/38 (f)(j)(l)	227,021		723
Series 2005-C2 Class ASP, 0.5227% 4/15/37 (f)(j)(l)	40,906		253
Credit Suisse Mortgage Capital Certificates floater Series 2007-TFL1:
Class C:
0.4358% 2/15/22 (f)(j)	1,256		1,105
0.5358% 2/15/22 (f)(j)	448		377
Class F, 0.5858% 2/15/22 (f)(j)	897		735
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1 Class D, 6.484% 3/15/33	6,920		6,916
GE Capital Commercial Mortgage Corp.:
Series 2001-1 Class X1, 0.9778% 5/15/33 (f)(j)(l)	25,542		274
Series 2007-C1 Class XP, 0.2003% 12/10/49 (j)(l)	3,630		19
GMAC Commercial Mortgage Securities, Inc.:
sequential payer Series 2003-C2 Class A1, 4.576% 5/10/40	5,007		5,214
Series 2004-C3 Class X2, 0.6179% 12/10/41 (j)(l)	23,797		104
Greenwich Capital Commercial Funding Corp.:
sequential payer Series 2005-GG3 Class A2, 4.305% 8/10/42 (j)	17,856		17,960
Series 2005-GG3 Class XP, 0.6927% 8/10/42 (f)(j)(l)	98,509		650
Series 2006-GG7 Class A2, 5.8829% 7/10/38 (j)	7,352		7,403
GS Mortgage Securities Corp. II:
floater:
Series 2006-FL8A Class F, 0.703% 6/6/20 (f)(j)	562		495
Series 2007-EOP:
Class C, 2.1455% 3/6/20 (f)(j)	4,021		3,923
Class D, 2.3636% 3/6/20 (f)(j)	1,390		1,353
Class E, 2.6688% 3/6/20 (f)(j)	1,905		1,851
Class F, 2.8433% 3/6/20 (f)(j)	967		937
Class G, 3.0177% 3/6/20 (f)(j)	479		460
Class H, 3.5846% 3/6/20 (f)(j)	799		765
Class J, 4.4568% 3/6/20 (f)(j)	1,146		1,076
sequential payer Series 2005-GG4 Class A3, 4.607% 7/10/39	4,810		4,918
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
GS Mortgage Securities Corp. II: - continued
sequential payer:
Series 2006-GG6 Class A2, 5.506% 4/10/38	$ 7,331		$ 7,343
GS Mortgage Securities Trust sequential payer:
Series 2006-GG8 Class A2, 5.479% 11/10/39	18,191		18,433
Series 2007-GG10 Class A1, 5.69% 8/10/45	10		11
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8 Class X2, 1.1472% 1/12/39 (f)(j)(l)	13,179		3
Series 2006-LDP7 Class A2, 5.8605% 4/15/45 (j)	3,064		3,084
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class A2, 0.3958% 11/15/18 (f)(j)	5,000		4,750
Class D, 0.4958% 11/15/18 (f)(j)	130		122
Class E, 0.5458% 11/15/18 (f)(j)	185		162
Class F, 0.5958% 11/15/18 (f)(j)	277		238
Class G, 0.6258% 11/15/18 (f)(j)	241		202
Class H, 0.7658% 11/15/18 (f)(j)	185		149
sequential payer:
Series 2005-LDP5 Class A2, 5.198% 12/15/44	7,862		8,013
Series 2006-LDP9 Class A1, 5.17% 5/15/47 (j)	1,157		1,164
Series 2007-LDPX Class A2 S, 5.305% 1/15/49	3,310		3,385
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2006-C1 Class A2, 5.084% 2/15/31	8,681		8,690
Series 2006-C6:
Class A1, 5.23% 9/15/39	1,943		1,944
Class A2, 5.262% 9/15/39 (j)	2,213		2,235
Series 2006-C7 Class A1, 5.279% 11/15/38	430		434
Series 2007-C1 Class A1, 5.391% 2/15/40 (j)	1,033		1,048
Series 2001-C3 Class B, 6.512% 6/15/36	2,451		2,488
Series 2004-C2 Class XCP, 1.0355% 3/15/36 (f)(j)(l)	31,396		12
Series 2004-C6 Class XCP, 0.5645% 8/15/36 (f)(j)(l)	25,928		87
Series 2006-C1 Class XCP, 0.3479% 2/15/41 (j)(l)	166,324		1,190
Series 2006-C6 Class XCP, 0.6752% 9/15/39 (j)(l)	104,297		1,724
Series 2007-C1 Class XCP, 0.4772% 2/15/40 (j)(l)	38,776		486
Series 2007-C2 Class XCP, 0.5199% 2/15/40 (j)(l)	229,018		2,938
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class F, 0.6058% 9/15/21 (f)(j)	770		654
Class G, 0.6258% 9/15/21 (f)(j)	1,521		1,232
Class H, 0.6658% 9/15/21 (f)(j)	392		306
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Merrill Lynch Mortgage Trust:
sequential payer:
Series 2004-MKB1 Class A2, 4.353% 2/12/42	$ 17		$ 17
Series 2005-MKB2 Class A2, 4.806% 9/12/42	1,562		1,563
Merrill Lynch Mortgage Trust: - continued
Series 2005-MCP1 Class XP, 0.6475% 6/12/43 (j)(l)	33,837		486
Series 2005-MKB2 Class XP, 0.2211% 9/12/42 (j)(l)	16,003		83
Merrill Lynch-CFC Commercial Mortgage Trust:
sequential payer:
Series 2007-6 Class A1, 5.175% 3/12/51	744		752
Series 2007-8 Class A1, 4.622% 8/12/49	1,854		1,875
Series 2007-9 Class A2, 5.59% 9/12/49	4,533		4,715
Series 2006-4 Class XP, 0.6112% 12/12/49 (j)(l)	89,130		1,715
Morgan Stanley Capital I Trust:
floater:
Series 2006-XLF Class C, 1.466% 7/15/19 (f)(j)	241		125
Series 2007-XCLA Class A1, 0.466% 7/17/17 (f)(j)	1,312		1,180
Series 2007-XLFA:
Class D, 0.456% 10/15/20 (f)(j)	449		337
Class E, 0.516% 10/15/20 (f)(j)	562		365
Class F, 0.566% 10/15/20 (f)(j)	337		169
Class G, 0.606% 10/15/20 (f)(j)	417		167
Class H, 0.696% 10/15/20 (f)(j)	262		26
Class J, 0.846% 10/15/20 (f)(j)	300		15
Class MHRO, 0.956% 10/15/20 (f)(j)	156		50
Class MJPM, 1.266% 10/15/20 (f)(j)	9		7
Class MSTR, 0.966% 10/15/20 (f)(j)	94		30
Class NHRO, 1.156% 10/15/20 (f)(j)	230		51
Class NSTR, 1.116% 10/15/20 (f)(j)	87		19
sequential payer:
Series 2003-IQ5 Class X2, 0.9108% 4/15/38 (f)(j)(l)	21,721		102
Series 2006-T23 Class A1, 5.682% 8/12/41	303		304
Series 2007-HQ11 Class A1, 5.246% 2/12/44	970		978
Series 2007-IQ13 Class A1, 5.05% 3/15/44	30		30
Series 2007-IQ14:
Class A1, 5.38% 4/15/49	62		63
Class A2, 5.61% 4/15/49	12,445		12,826
Series 2007-T25 Class A1, 5.391% 11/12/49	55		56
Series 2003-IQ6 Class X2, 0.5897% 12/15/41 (f)(j)(l)	45,013		224
Series 2005-HQ5 Class X2, 0.1687% 1/14/42 (j)(l)	40,965		170
Series 2005-IQ9 Class X2, 1.0924% 7/15/56 (f)(j)(l)	39,175		377
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Morgan Stanley Capital I Trust: - continued
floater:
Series 2005-TOP17 Class X2, 0.5846% 12/13/41 (j)(l)	$ 28,701		$ 315
Series 2006-HQ10 Class X2, 0.4925% 11/12/41 (f)(j)(l)	2,281		21
Morgan Stanley Dean Witter Capital I Trust Series 2003-HQ2 Class X2, 1.3359% 3/12/35 (f)(j)(l)	44,124		10
Structured Asset Securities Corp. Series 1997-LLI Class F, 7.3% 10/12/34 (f)	3,490		3,579
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2005-WL5A Class K, 1.4658% 1/15/18 (f)(j)	859		825
Series 2006-WL7A:
Class E, 0.544% 9/15/21 (f)(j)	938		730
Class F, 0.604% 8/11/18 (f)(j)	1,264		848
Class G, 0.624% 8/11/18 (f)(j)	1,198		735
Class J, 0.864% 8/11/18 (f)(j)	266		124
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (f)(j)	68		47
Class AP2, 1.0658% 6/15/20 (f)(j)	112		73
Class F, 0.7458% 6/15/20 (f)(j)	2,172		1,412
Class LXR2, 1.0658% 6/15/20 (f)(j)	1,481		1,170
sequential payer:
Series 2006-C29 Class A1, 5.11% 11/15/48	98		99
Series 2007-C30 Class A1, 5.031% 12/15/43	104		104
Series 2007-C31 Class A1, 5.14% 4/15/47	75		75
Series 2006-C23 Class X, 0.085% 1/15/45 (f)(j)(l)	912,585		2,628
Series 2007-C30 Class XP, 0.4403% 12/15/43 (f)(j)(l)	242,617		2,943
Series 2007-C31A Class A2, 5.421% 4/15/47	9,795		10,131
WaMu Commercial Mortgage Securities Trust sequential payer Series 2005-C1A Class AJ, 5.19% 5/25/36 (f)	4,914		4,954
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $356,380)		331,637
Municipal Securities - 0.6%
Illinois Gen. Oblig. Series 2010, 3.321% 1/1/13	9,917		9,910
Indiana Fin. Auth.'s Econ. Dev. Bonds (Republic Svcs., Inc. Proj.) 2.5%, tender 6/1/11 (j)(k)	7,050		7,050
Kentucky Econ. Dev. Fin. Auth. Solid Waste Disp. Rev. Bonds (Republic Svcs., Inc. Proj.) Series A, 2.5%, tender 6/1/11 (j)(k)	10,200		10,200
Municipal Securities - continued
	Principal Amount (000s)		Value (000s)
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Electronic Co. Proj.):
Series 2003 A, 1.9%, tender 4/2/12 (j)	$ 3,000		$ 3,010
Series 2007 B, 1.9%, tender 6/1/12 (j)	3,000		3,004
New York State Energy Research & Dev. Auth. Facilities Rev. Bonds (Consolidated Edison Co. of New York, Inc. Proj.) Series 2010 A, 1.45%, tender 11/1/12 (j)(k)	15,900		15,869
TOTAL MUNICIPAL SECURITIES (Cost $49,059)		49,043
Foreign Government and Government Agency Obligations - 0.3%
Ontario Province 1.375% 1/27/14 (Cost $28,165)	28,250		28,139
Bank Notes - 0.0%
National City Bank, Cleveland 0.3959% 3/1/13 (j) (Cost $5,399)	5,470		5,438
Certificates of Deposit - 0.2%
Bank of Tokyo-Mitsubishi yankee 0.4% 8/8/11 (Cost $21,000)	21,000		21,001

Cash Equivalents - 6.1%
	Maturity Amount (000s)		Value (000s)
Investments in repurchase agreements in a joint trading account at:
0.2%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (b)	$ 202,251	$ 202,250
0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) #	319,498	319,496
TOTAL CASH EQUIVALENTS (Cost $521,746)		521,746
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $8,880,367)		8,880,721
NET OTHER ASSETS (LIABILITIES) - (3.5)%		(304,316)
NET ASSETS - 100%		$ 8,576,405

Swap Agreements
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps
Receive monthly notional amount multiplied by .82% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34 (i)	August 2034	$ 282	$ (157)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34 (i)	Oct. 2034	340	(141)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32 (Rating-Ba1) (i)	April 2032	129	(76)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34 (Rating-C) (i)	Feb. 2034	4	(4)
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 7.2913% 9/25/34 (Rating-B1) (i)	Oct. 2034	372	(140)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7, Class B3, 9.01% 8/25/34 (Rating-C) (i)	Sept. 2034	276	(208)
		$ 1,403	$ (726)

Legend

(a) Non-income producing

(b) Includes investment made with cash collateral received from securities on loan.

(c) Non-income producing - Security is in default.

(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(e) Security or a portion of the security is on loan at period end.

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $676,404,000 or 7.9% of net assets.

(g) Under the Temporary Liquidity Guarantee Program, the Federal Deposit Insurance Corporation guarantees principal and interest in the event of payment default or bankruptcy until the earlier of maturity date of the debt or until June 30, 2012. At the end of the period these securities amounted to $198,797,000 or 2.3% of net assets.

(h) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $1,450,000.

(i) Represents a credit default swap contract in which the Fund has sold protection on the underlying reference entity. The value of each credit default swap and the credit rating can be measures of the current payment/performance risk. For the underlying reference entity, ratings disclosed are from Moody's Investors Service, Inc. Where Moody's ratings are not available, S&P ratings are disclosed and are indicated as such. All ratings are as of the report date and do not reflect subsequent changes. Where a credit rating is not disclosed, the value is used as the measure of the payment/ performance risk.

(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(k) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(l) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

(m) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,948,000 or 0.1% of net assets.

* Amount represents less than $1,000.

Additional information on each restricted holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Iberbond 2004 PLC 4.826% 12/24/17	11/30/05	$ 5,887

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$202,250,000 due 3/01/11 at 0.20%
Barclays Capital, Inc.	$ 202,250
$319,496,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 26,702
Bank of America NA	23,735
Barclays Capital, Inc.	13,217
Credit Agricole Securities (USA), Inc.	11,868
Deutsche Bank Securities, Inc.	13,617
Goldman, Sachs & Co.	2,967
HSBC Securities (USA), Inc.	35,603
ING Financial Markets LLC	21,955
J.P. Morgan Securities, Inc.	35,603
Merrill Lynch Government Securities, Inc.	10,681
Merrill Lynch, Pierce, Fenner & Smith, Inc.	16,385
Mizuho Securities USA, Inc.	65,271
RBC Capital Markets Corp.	2,967
Societe Generale, New York Branch	23,735
Wells Fargo Securities LLC	15,190
	$ 319,496

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 2,075,668	$ -	$ 2,069,720	$ 5,948
U.S. Government and Government Agency Obligations	4,414,511	-	4,414,511	-
U.S. Government Agency - Mortgage Securities	295,417	-	295,417	-
Asset-Backed Securities	788,626	-	765,706	22,920
Collateralized Mortgage Obligations	349,495	-	349,379	116
Commercial Mortgage Securities	331,637	-	284,349	47,288
Municipal Securities	49,043	-	49,043	-
Foreign Government and Government Agency Obligations	28,139	-	28,139	-
Bank Notes	5,438	-	5,438	-
Certificates of Deposit	21,001	-	21,001	-
Cash Equivalents	521,746	-	521,746	-
Total Investments in Securities:	$ 8,880,721	$ -	$ 8,804,449	$ 76,272
Derivative Instruments:
Liabilities
Swap Agreements	$ (726)	$ -	$ (373)	$ (353)

The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 87,853
Total Realized Gain (Loss)	638
Total Unrealized Gain (Loss)	10,947
Cost of Purchases	4,375
Proceeds of Sales	(11,590)
Amortization/Accretion	(508)
Transfers in to Level 3	7,697
Transfers out of Level 3	(23,140)
Ending Balance	$ 76,272
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 10,813
Derivative Instruments:
Swap Agreements
Beginning Balance	$ (892)
Total Unrealized Gain (Loss)	72
Transfers in to Level 3	-
Transfers out of Level 3	467
Ending Balance	$ (353)
Realized gain (loss) on Swap Agreements for the period	$ 19
The change in unrealized gain (loss) for the period attributable to Level 3 Swap Agreements held at February 28, 2011	$ 72

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and Derivative Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by risk exposure as of February 28, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Risk Exposure / Derivative Type (Amounts in thousands)	Value
	Asset	Liability
Credit Risk
Swap Agreements (a)	$ -	$ (726)

(a) Value is disclosed on the Statement of Assets and Liabilities in the Unrealized Appreciation and Unrealized Depreciation on Swap Agreements line-items.

Income Tax Information

At August 31, 2010, the Fund had a capital loss carryforward of approximately $380,964,000 of which $22,435,000, $14,472,000, $2,521,000, $20,065,000, $179,350,000 and $142,121,000 will expire in fiscal 2013, 2014, 2015, 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $199,352 and repurchase agreements of $521,746) - See accompanying schedule: Unaffiliated issuers (cost $8,880,367)		$ 8,880,721
Cash		2,355
Receivable for investments sold		88,825
Receivable for swap agreements		3
Receivable for fund shares sold		6,657
Interest receivable		38,025
Other receivables		76
Total assets		9,016,662
Liabilities
Payable for investments purchased	$ 214,681
Payable for fund shares redeemed	18,804
Distributions payable	555
Unrealized depreciation on swap agreements	726
Accrued management fee	2,247
Other affiliated payables	918
Other payables and accrued expenses	76
Collateral on securities loaned, at value	202,250
Total liabilities		440,257
Net Assets		$ 8,576,405
Net Assets consist of:
Paid in capital		$ 8,954,105
Undistributed net investment income		3,496
Accumulated undistributed net realized gain (loss) on investments		(380,824)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		(372)
Net Assets		$ 8,576,405

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

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Financial Statements - continued

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Short-Term Bond: Net Asset Value, offering price and redemption price per share ($7,991,023 ÷ 943,690 shares)		$ 8.47
Class F: Net Asset Value, offering price and redemption price per share ($585,382 ÷ 69,156 shares)		$ 8.46

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

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Statement of Operations

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)
Investment Income
Interest		$ 82,718
Expenses
Management fee	$ 13,235
Transfer agent fees	3,966
Fund wide operations fee	1,428
Independent trustees' compensation	16
Miscellaneous	16
Total expenses before reductions	18,661
Expense reductions	(1)	18,660
Net investment income (loss)		64,058
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	8,281
Swap agreements	19
Total net realized gain (loss)		8,300
Change in net unrealized appreciation (depreciation) on: Investment securities	(17,128)
Swap agreements	166
Total change in net unrealized appreciation (depreciation)		(16,962)
Net gain (loss)		(8,662)
Net increase (decrease) in net assets resulting from operations		$ 55,396

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

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Financial Statements - continued

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 64,058	$ 163,064
Net realized gain (loss)	8,300	87,508
Change in net unrealized appreciation (depreciation)	(16,962)	136,206
Net increase (decrease) in net assets resulting from operations	55,396	386,778
Distributions to shareholders from net investment income	(68,599)	(164,826)
Share transactions - net increase (decrease)	471,863	1,562,230
Total increase (decrease) in net assets	458,660	1,784,182
Net Assets
Beginning of period	8,117,745	6,333,563
End of period (including undistributed net investment income of $3,496 and undistributed net investment income of $8,037, respectively)	$ 8,576,405	$ 8,117,745

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

Semiannual Report

Financial Highlights - Short-Term Bond

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009	2008	2007	2006 I	2006 H
Selected Per-Share Data
Net asset value, beginning of period	$ 8.48	$ 8.22	$ 8.31	$ 8.66	$ 8.86	$ 8.82	$ 8.92
Income from Investment Operations
Net investment income (loss) D	.065	.186	.260	.376	.421	.133	.344
Net realized and unrealized gain (loss)	(.006)	.264	(.097)	(.355)	(.208)	.037	(.107)
Total from investment operations	.059	.450	.163	.021	.213	.170	.237
Distributions from net investment income	(.069)	(.190)	(.253)	(.371)	(.413)	(.130)	(.337)
Net asset value, end of period	$ 8.47	$ 8.48	$ 8.22	$ 8.31	$ 8.66	$ 8.86	$ 8.82
Total Return B,C	.70%	5.53%	2.07%	.23%	2.41%	1.95%	2.70%
Ratios to Average Net Assets E,G
Expenses before reductions	.45% A	.45%	.45%	.45%	.45%	.45% A	.46%
Expenses net of fee waivers, if any	.45% A	.45%	.45%	.45%	.45%	.45% A	.46%
Expenses net of all reductions	.45% A	.45%	.45%	.45%	.45%	.44% A	.46%
Net investment income (loss)	1.53% A	2.23%	3.22%	4.42%	4.77%	4.48% A	3.88%
Supplemental Data
Net assets, end of period (in millions)	$ 7,991	$ 7,774	$ 6,333	$ 6,694	$ 7,341	$ 6,345	$ 5,865
Portfolio turnover rate F	198% A	233% J	264% J	71%	82% J	55% A	62%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^H For the period ended April 30.

^I For the four month period ended August 31. The Fund changed its fiscal year from April 30 to August 31, effective August 31, 2006.

^J The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Financial Highlights - Class F

	Six months ended February 28, 2011	Years ended August 31,
	(Unaudited)	2010	2009 G
Selected Per-Share Data
Net asset value, beginning of period	$ 8.48	$ 8.22	$ 8.10
Income from Investment Operations
Net investment income (loss) D	.069	.193	.042
Net realized and unrealized gain (loss)	(.016)	.265	.121
Total from investment operations	.053	.458	.163
Distributions from net investment income	(.073)	(.198)	(.043)
Net asset value, end of period	$ 8.46	$ 8.48	$ 8.22
Total Return B,C	.63%	5.63%	2.01%
Ratios to Average Net Assets E,H
Expenses before reductions	.35% A	.35%	.35% A
Expenses net of fee waivers, if any	.35% A	.35%	.35% A
Expenses net of all reductions	.35% A	.35%	.35% A
Net investment income (loss)	1.64% A	2.33%	3.02% A
Supplemental Data
Net assets, end of period (000 omitted)	$ 585,382	$ 344,203	$ 398
Portfolio turnover rate F	198% A	233% I	264% I

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G For the period June 26, 2009 (commencement of sale of shares) to August 31, 2009.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^I The portfolio turnover rate excludes liquidations and/or redemptions executed in-kind from Affiliated Central Funds.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity Short-Term Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Short-Term Bond and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.

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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Security Valuation - continued

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011, for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, bank notes, foreign government and government agency obligations, municipal securities, U.S. government and government agency obligations and certificates of deposit, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

Swaps are marked-to-market daily based on valuations from independent pricing services or dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Pricing services utilize matrix pricing which considers comparisons to interest rate curves, credit spread curves, default possibilities and recovery rates and, as a result, swaps are generally categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder 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 identified cost and may

Semiannual Report

2. Significant Accounting Policies - continued

Investment Transactions and Income - continued

include proceeds received from litigation. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The principal value on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal value. The adjustments to principal due to inflation are reflected as increases or decreases to interest income even though principal is not received until maturity. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to futures transactions, swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, financing transactions, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 124,769
Gross unrealized depreciation	(127,286)
Net unrealized appreciation (depreciation) on securities and other investments	$ (2,517)
Tax cost	$ 8,883,238

3. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Semiannual Report

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including swap agreements, in order to meet its investment objectives. The strategy is to use derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Credit Risk Credit risk relates to the ability of the issuer to a financial instrument to make further principal or interest payments on an obligation or commitment that it has entered into with the Fund.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain over-the-counter derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement on a bilateral basis with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the counterparty. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk, the Fund offsets certain payables and/or receivables with collateral. Collateral in the form of cash or securities, if required, is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the swap counterparty and the Fund's custodian bank, and is identified in the Schedule of Investments. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Derivative Instruments - continued

Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period.

Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Credit Risk
Swap Agreements (a)	$ 19	$ 166

(a) A summary of the value of derivatives by risk exposure as of period end is included at the end of the Schedule of Investments and is
representative of activity for the period.

Swap Agreements. A swap agreement (swap) is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount.

Details of swaps open at period end, are included in the Schedule of Investments under the caption "Swap Agreements." Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation or (depreciation) and reflected in the Statement of Assets and Liabilities. Any upfront payments made or received upon entering a swap to compensate for differences between stated terms of the agreement and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded as realized gain or (loss) ratably over the term of the swap. Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Realized gain or (loss) is also recorded in the event of an early termination of a swap. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

Risks of loss include credit risk. In addition, there is the risk of failure by the counterparty to perform under the terms of the agreement and lack of liquidity in the market.

Credit Default Swaps. Credit default swaps enable the Fund to buy or sell protection on a debt security or a basket of securities against a defined credit event. Under the terms of a credit default swap the buyer of protection (buyer) receives credit protection in exchange for making periodic payments to the seller of protection (seller) based on a fixed percentage applied to a notional principal amount. In return for these payments, the seller acts as a guarantor of the creditworthiness of a reference obligation. The Fund entered into credit default swaps as a seller to gain credit exposure to an issuer and/or as a buyer to provide a measure of protection against defaults of an issuer. The issuer may be either a single issuer or a "basket" of issuers. Periodic payments are made over the life of the contract provided that no credit event occurs.

Semiannual Report

4. Derivative Instruments - continued

Credit Default Swaps - continued

For credit default swaps on most corporate and sovereign issuers, credit events include bankruptcy, failure to pay, obligation acceleration or repudiation/moratorium. For credit default swaps on corporate or sovereign issuers, the obligation that may be put to the seller is not limited to the specific reference obligation described in the Schedule of Investments. For credit default swaps on asset-backed securities, a credit event may be triggered by events such as failure to pay principal, maturity extension, rating downgrade or write-down. For credit default swaps on asset-backed securities, the reference obligation described represents the security that may be put to the seller.

As a seller, if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the reference obligation or underlying securities comprising an index or pay a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

As a buyer, if an underlying credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the reference obligation or underlying securities comprising an index or receive a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index.

Typically, the value of each credit default swap and credit rating disclosed for each reference obligation in the Schedule of Investments, where the Fund is the seller, can be used as measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. Any current or future declines in the value of the swap may be partially offset by upfront payments received by the Fund as the seller, if applicable. In addition to these measures, FMR monitors a variety of factors including cash flow assumptions, market activity and market sentiment as part of its ongoing process of assessing payment/performance risk.

The notional amount of credit default swaps is included in the Schedule of Investments and approximates the maximum potential amount of future payments that the Fund could be required to make if the Fund is the seller and a credit event were to occur. The total notional amount of all credit default swaps open at period end where the Fund is the seller amounted to $1,403 representing .02% of net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $1,134,599 and $953,733, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .32% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives an asset-based fee of .10% of Short-Term Bond's average net assets. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), FMR has agreed to provide for fund level expenses (which do not include transfer agent, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .03% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $175.

9. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010
From net investment income
Short-Term Bond	$ 64,663	$ 161,868
Class F	3,936	2,958
Total	$ 68,599	$ 164,826

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

11. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010	Six months ended February 28, 2011	Year ended August 31, 2010
Short-Term Bond
Shares sold	194,622	335,554	$ 1,649,463	$ 2,807,160
Reinvestment of distributions	7,170	18,212	60,841	152,546
Shares redeemed	(174,744)	(207,396)	(1,480,416)	(1,737,665)
Net increase (decrease)	27,048	146,370	$ 229,888	$ 1,222,041
Class F
Shares sold	33,152	42,291	$ 280,843	$ 354,784
Reinvestment of distributions	464	351	3,936	2,958
Shares redeemed	(5,063)	(2,088)	(42,804)	(17,553)
Net increase (decrease)	28,553	40,554	$ 241,975	$ 340,189

12. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

At the end of the period, the Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 31% of the total outstanding shares of the fund.

13. Credit Risk

The fund invests a portion of its assets in structured securities of issuers backed by residential mortgage loans, credit card receivables and automotive loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Short-Term Bond Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for the retail class, as well as the fund's relative investment performance for the retail class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the cumulative total returns of the retail class of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. (Class F of the fund had less than one year of performance as of December 31, 2009.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the retail class of the fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Short-Term Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the third quartile for the one- and five-year periods and the fourth quartile for the three-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the one-year cumulative total return of the retail class compared favorably to its benchmark. The Board discussed with FMR actions that have been taken by FMR to improve the fund's disappointing performance relative to its peer group and how investment personnel evaluate potential for incremental return against the risks involved in obtaining that incremental return. The Board considered the steps that FMR has taken to strengthen and refine its risk management processes in light of recent credit events that have affected various sectors of the fixed-income markets. The Board noted that this fund had underperformed in the previous year and discussed with FMR its disappointment with the continued underperformance of the fund. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Semiannual Report

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 22% means that 78% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Short-Term Bond Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2005) to the fund's management contract that lowered the fund's individual fund fee rate from 30 basis points to 20 basis points. The Board considered that the chart reflects the fund's lower management fee for 2005, as if the lower rate were in effect for the entire year.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board also considered that the current contractual arrangements for the fund (i) have the effect of setting the total "fund-level" expenses (including, among certain other expenses, the management fee) at 35 basis points, (ii) lower and limit the "class-level" transfer agent fee to 10 basis points, and (iii) limit the fund's total expenses to 45 basis points. The fees and expenses payable under these contractual arrangements may not be increased without Board and shareholder approval.

Semiannual Report

The Board noted that the total expenses of each class ranked below its competitive median for the period.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses at 35 basis points, increases or decreases in the management fee due to changes in the group fee rate will not impact total expenses.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Semiannual Report

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.

By Phone

Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

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Fidelity Workplace
Investing
1-800-835-5092

By PC

Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.

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Fidelity's Web Site
www.401k.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

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For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

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Fidelity Investments
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P.O. Box 770001
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General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York Mellon

New York, NY

STP-F-SANN-0411
1.891868.101

Fidelity ®
U.S. Bond Index
Fund
(To be renamed Spartan® U.S. Bond Index Fund effective April 28, 2011)

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message	<Click Here>	The Chairman's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Abigail_P_Johnson)

Dear Shareholder:

Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 has begun on a positive note. U.S. equities gained ground in January and February, reaching their highest point since June 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

(The chairman's signature appears here.)

Abigail P. Johnson

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
U.S. Bond Index	.31%
Actual		$ 1,000.00	$ 990.60	$ 1.53**
HypotheticalA		$ 1,000.00	$ 1,023.26	$ 1.56**
Class F	.19%
Actual		$ 1,000.00	$ 991.20	$ .94**
HypotheticalA		$ 1,000.00	$ 1,023.85	$ .95**

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Semiannual Report

Shareholder Expense Example - continued

** If fees and changes to U.S. Bond Index's contractual expenses effective February 1, 2011, had been in effect during the entire period, the annualized expense ratio and the expenses paid in the actual and hypothetical examples above would have been as follows:

	Annualized Expense Ratio	Expenses Paid
U.S. Bond Index
Actual	.22%	$ 1.09
HypotheticalA		$ 1.10
Class F
Actual	.05%	$ .25
HypotheticalA		$ .25

^A 5% return per year before expenses

Semiannual Report

Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations † 73.7%		U.S. Government and U.S. Government Agency Obligations † 73.6%
	AAA 4.3%		AAA 5.2%
	AA 4.8%		AA 3.5%
	A 8.2%		A 7.9%
	BBB 8.0%		BBB 7.4%
	BB and Below 0.3%		BB and Below 0.2%
	Not Rated 0.1%		Not Rated 0.0%
	Short-Term Investments and Net Other Assets 0.6%		Short-Term Investments and Net Other Assets 2.2%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	6.2	5.5

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	4.7	4.1

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011*			As of August 31, 2010**
	Corporate Bonds 19.2%			Corporate Bonds 17.5%
	U.S. Government and U.S. Government Agency Obligations † 73.7%			U.S. Government and U.S. Government Agency Obligations † 73.6%
	Asset-Backed Securities 0.4%			Asset-Backed Securities 0.4%
	CMOs and Other Mortgage Related Securities 3.3%			CMOs and Other Mortgage Related Securities 3.6%
	Municipal Bonds 0.4%			Municipal Bonds 0.3%
	Other Investments 2.4%			Other Investments 2.4%
	Short-Term Investments and Net Other Assets 0.6%			Short-Term Investments and Net Other Assets 2.2%
* Foreign investments		6.3%	** Foreign investments		5.6%

^† Includes FDIC Guaranteed Corporate Securities.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 19.2%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.5%
Auto Components - 0.1%
DaimlerChrysler NA Holding Corp.:
5.75% 9/8/11	$ 5,542		$ 5,687
5.875% 3/15/11	2,058		2,062
			7,749
Hotels, Restaurants & Leisure - 0.1%
McDonald's Corp.:
5.35% 3/1/18	2,317		2,587
6.3% 3/1/38	7,045		8,162
Yum! Brands, Inc.:
4.25% 9/15/15	2,000		2,102
5.3% 9/15/19	2,000		2,127
			14,978
Household Durables - 0.1%
Fortune Brands, Inc. 5.875% 1/15/36	10,000		8,842
Media - 0.9%
AOL Time Warner, Inc. 7.625% 4/15/31	3,250		3,840
Comcast Corp.:
4.95% 6/15/16	1,862		1,989
5.5% 3/15/11	378		379
5.7% 5/15/18	2,940		3,214
5.7% 7/1/19	8,500		9,252
6.4% 3/1/40	1,000		1,040
6.55% 7/1/39	3,000		3,180
COX Communications, Inc. 4.625% 6/1/13	4,425		4,725
NBC Universal, Inc. 6.4% 4/30/40 (a)	3,000		3,134
News America Holdings, Inc. 7.75% 12/1/45	3,160		3,807
News America, Inc.:
5.3% 12/15/14	868		961
5.65% 8/15/20	1,000		1,097
6.15% 3/1/37	3,955		4,006
6.9% 3/1/19	2,110		2,481
6.9% 8/15/39	2,000		2,238
Thomson Reuters Corp. 4.7% 10/15/19	4,000		4,203
Time Warner Cable, Inc.:
5.4% 7/2/12	2,421		2,554
5.85% 5/1/17	5,801		6,387
6.2% 7/1/13	2,302		2,541
6.75% 7/1/18	1,162		1,334
7.3% 7/1/38	4,000		4,506
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - continued
Media - continued
Time Warner Cable, Inc.: - continued
8.75% 2/14/19	$ 2,368		$ 2,987
Time Warner, Inc.:
3.15% 7/15/15	5,000		5,077
5.875% 11/15/16	2,131		2,384
6.5% 11/15/36	5,724		6,025
Viacom, Inc.:
4.375% 9/15/14	2,000		2,139
5.625% 9/15/19	1,000		1,095
6.125% 10/5/17	5,420		6,130
6.75% 10/5/37	1,865		2,065
Walt Disney Co. 5.5% 3/15/19	2,000		2,244
			97,014
Multiline Retail - 0.0%
Target Corp. 3.875% 7/15/20	3,000		2,962
Specialty Retail - 0.3%
Home Depot, Inc.:
5.4% 3/1/16	6,400		7,126
5.875% 12/16/36	4,700		4,765
Lowe's Companies, Inc.:
4.625% 4/15/20	2,000		2,096
5.8% 4/15/40	2,000		2,104
Staples, Inc. 9.75% 1/15/14	10,000		12,080
			28,171
TOTAL CONSUMER DISCRETIONARY			159,716
CONSUMER STAPLES - 1.6%
Beverages - 0.4%
Anheuser-Busch Companies, Inc. 6.45% 9/1/37	2,073		2,359
Anheuser-Busch InBev Worldwide, Inc.:
4.125% 1/15/15	5,700		6,059
5.375% 1/15/20	1,500		1,625
Diageo Capital PLC:
5.2% 1/30/13	1,028		1,105
5.75% 10/23/17	5,185		5,837
PepsiCo, Inc.:
3.1% 1/15/15	10,300		10,670
4.875% 11/1/40	2,300		2,152
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Beverages - continued
PepsiCo, Inc.: - continued
7.9% 11/1/18	$ 6,000		$ 7,606
The Coca-Cola Co.:
1.5% 11/15/15	3,770		3,607
3.15% 11/15/20	3,700		3,449
			44,469
Food & Staples Retailing - 0.3%
CVS Caremark Corp.:
6.125% 9/15/39	1,000		1,038
6.302% 6/1/37 (e)	5,809		5,722
Kroger Co. 3.9% 10/1/15	9,000		9,352
Safeway, Inc. 5% 8/15/19	1,000		1,026
Wal-Mart Stores, Inc.:
3.2% 5/15/14	10,000		10,479
5.625% 4/1/40	2,000		2,084
6.5% 8/15/37	8,275		9,549
			39,250
Food Products - 0.4%
ConAgra Foods, Inc. 5.875% 4/15/14	4,000		4,393
General Mills, Inc. 5.65% 2/15/19	13,501		14,994
Kellogg Co. 4.45% 5/30/16	2,000		2,154
Kraft Foods, Inc.:
5.625% 11/1/11	467		482
6% 2/11/13	7,895		8,572
6.125% 2/1/18	5,497		6,177
6.75% 2/19/14	535		607
6.875% 2/1/38	3,250		3,646
			41,025
Household Products - 0.1%
Procter & Gamble Co.:
1.8% 11/15/15	5,000		4,893
3.15% 9/1/15	4,500		4,665
			9,558
Tobacco - 0.4%
Altria Group, Inc. 9.7% 11/10/18	6,065		7,984
Philip Morris International, Inc.:
4.5% 3/26/20	2,000		2,063
4.875% 5/16/13	8,937		9,621
5.65% 5/16/18	6,789		7,631
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Tobacco - continued
Philip Morris International, Inc.: - continued
6.375% 5/16/38	$ 1,450		$ 1,659
Reynolds American, Inc.:
6.75% 6/15/17	2,899		3,264
7.25% 6/15/37	7,220		7,660
			39,882
TOTAL CONSUMER STAPLES			174,184
ENERGY - 1.7%
Energy Equipment & Services - 0.2%
Baker Hughes, Inc. 5.125% 9/15/40	2,000		1,908
Halliburton Co.:
6.15% 9/15/19	2,000		2,293
7.45% 9/15/39	1,500		1,901
Noble Holding International Ltd.:
3.05% 3/1/16	1,020		1,014
4.625% 3/1/21	1,340		1,335
Rowan Companies, Inc. 7.875% 8/1/19	500		593
Weatherford International Ltd.:
4.95% 10/15/13	1,726		1,834
5.15% 3/15/13	2,255		2,382
7% 3/15/38	5,580		6,084
			19,344
Oil, Gas & Consumable Fuels - 1.5%
Anadarko Petroleum Co. 6.2% 3/15/40	2,000		1,958
Anadarko Petroleum Corp.:
5.75% 6/15/14	5,000		5,495
6.45% 9/15/36	2,675		2,695
Apache Corp. 5.1% 9/1/40	3,000		2,785
Boardwalk Pipelines LP 5.75% 9/15/19	1,000		1,075
Canadian Natural Resources Ltd.:
5.15% 2/1/13	4,456		4,759
5.7% 5/15/17	1,148		1,283
Cenovus Energy, Inc. 6.75% 11/15/39	2,000		2,276
ConocoPhillips:
4.6% 1/15/15	3,000		3,266
5.75% 2/1/19	2,902		3,288
6.5% 2/1/39	7,529		8,740
Devon Energy Corp. 5.625% 1/15/14	2,321		2,581
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
El Paso Natural Gas Co. 5.95% 4/15/17	$ 926		$ 1,009
Enbridge Energy Partners LP:
5.875% 12/15/16	1,000		1,119
6.5% 4/15/18	1,000		1,134
EnCana Holdings Finance Corp. 5.8% 5/1/14	2,861		3,181
Enterprise Products Operating LP:
4.6% 8/1/12	5,000		5,215
5.6% 10/15/14	1,937		2,148
5.65% 4/1/13	690		745
6.65% 4/15/18	2,000		2,295
7.55% 4/15/38	2,000		2,370
EOG Resources, Inc. 5.625% 6/1/19	1,000		1,101
EQT Corp. 8.125% 6/1/19	1,000		1,185
Kinder Morgan Energy Partners LP:
5% 12/15/13	5,000		5,434
6.55% 9/15/40	3,000		3,100
Magellan Midstream Partners LP 6.55% 7/15/19	4,592		5,242
Marathon Petroleum Corp.:
3.5% 3/1/16 (a)	1,000		1,005
5.125% 3/1/21 (a)	1,000		1,014
6.5% 3/1/41 (a)	1,000		1,013
Nexen, Inc.:
5.05% 11/20/13	3,809		4,062
5.2% 3/10/15	900		957
5.875% 3/10/35	3,710		3,375
Petro-Canada:
6.05% 5/15/18	3,650		4,141
6.8% 5/15/38	8,445		9,478
Petrobras International Finance Co. Ltd. 7.875% 3/15/19	12,228		14,420
Plains All American Pipeline LP/PAA Finance Corp.:
3.95% 9/15/15	2,000		2,056
5.75% 1/15/20	1,000		1,073
6.125% 1/15/17	1,795		2,000
6.65% 1/15/37	2,795		2,960
Shell International Finance BV 1.875% 3/25/13	7,000		7,141
Spectra Energy Capital, LLC 5.65% 3/1/20	2,000		2,117
StatoilHydro ASA:
2.9% 10/15/14	1,500		1,549
5.1% 8/17/40	2,000		1,926
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Suncor Energy, Inc.:
6.1% 6/1/18	$ 11,244		$ 12,793
6.85% 6/1/39	2,000		2,271
Talisman Energy, Inc. 5.85% 2/1/37	5,000		5,046
TransCanada PipeLines Ltd. 3.4% 6/1/15	1,000		1,025
Valero Energy Corp. 6.625% 6/15/37	3,620		3,699
XTO Energy, Inc.:
5% 1/31/15	1,733		1,923
5.65% 4/1/16	1,189		1,365
			163,888
TOTAL ENERGY			183,232
FINANCIALS - 7.4%
Capital Markets - 1.8%
Bear Stearns Companies, Inc. 5.3% 10/30/15	1,159		1,263
BlackRock, Inc. 6.25% 9/15/17	8,365		9,559
Goldman Sachs Group, Inc.:
3.625% 8/1/12	1,500		1,550
3.625% 2/7/16	5,000		4,993
3.7% 8/1/15	7,848		7,960
5.625% 1/15/17	7,000		7,418
6% 6/15/20	1,650		1,768
6.15% 4/1/18	1,951		2,137
6.25% 2/1/41	2,000		2,035
6.75% 10/1/37	24,510		25,122
JPMorgan Chase Capital XX 6.55% 9/29/36	14,550		14,951
Lazard Group LLC:
6.85% 6/15/17	3,804		4,052
7.125% 5/15/15	1,364		1,501
Merrill Lynch & Co., Inc.:
5.45% 2/5/13	10,924		11,639
6.4% 8/28/17	3,140		3,450
6.875% 4/25/18	6,991		7,864
Morgan Stanley:
2.875% 1/24/14	5,000		5,040
4.2% 11/20/14	7,250		7,528
4.75% 4/1/14	4,287		4,482
5.45% 1/9/17	236		249
5.625% 9/23/19	2,000		2,053
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Capital Markets - continued
Morgan Stanley: - continued
5.75% 1/25/21	$ 5,000		$ 5,136
5.95% 12/28/17	5,745		6,132
6% 5/13/14	3,242		3,547
6% 4/28/15	5,666		6,206
6.625% 4/1/18	5,055		5,588
7.3% 5/13/19	3,000		3,417
Northern Trust Corp. 5.5% 8/15/13	2,607		2,872
Royal Bank of Scotland PLC:
3.95% 9/21/15	6,500		6,480
4.875% 3/16/15	5,000		5,184
6.125% 1/11/21	3,700		3,759
State Street Corp. 4.3% 5/30/14	1,940		2,093
The Bank of New York, Inc.:
4.3% 5/15/14	9,828		10,597
5.45% 5/15/19	2,000		2,208
UBS AG Stamford Branch:
2.25% 1/28/14	1,300		1,294
3.875% 1/15/15	2,000		2,054
5.75% 4/25/18	1,700		1,848
5.875% 12/20/17	3,500		3,832
			198,861
Commercial Banks - 1.4%
American Express Bank FSB 6% 9/13/17	615		684
Bank of America NA:
5.3% 3/15/17	3,500		3,647
6% 10/15/36	2,419		2,360
Barclays Bank PLC:
3.9% 4/7/15	6,600		6,815
5.2% 7/10/14	2,000		2,162
BB&T Capital Trust IV 6.82% 6/12/77 (e)	3,510		3,570
Canadian Imperial Bank of Commerce 1.45% 9/13/13	1,000		997
Comerica, Inc. 3% 9/16/15	1,268		1,263
Credit Suisse New York Branch:
2.2% 1/14/14	7,948		7,981
6% 2/15/18	15,651		16,712
Export-Import Bank of Korea 5.5% 10/17/12	2,235		2,360
Fifth Third Bancorp:
3.625% 1/25/16	2,000		2,008
4.5% 6/1/18	824		804
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Fifth Third Bancorp: - continued
8.25% 3/1/38	$ 2,079		$ 2,506
Fifth Third Bank 4.75% 2/1/15	3,422		3,585
HSBC Holdings PLC 6.5% 9/15/37	10,000		10,367
JPMorgan Chase Bank 6% 10/1/17	7,075		7,798
KeyBank NA 5.8% 7/1/14	1,109		1,213
KeyCorp. 3.75% 8/13/15	7,000		7,088
PNC Funding Corp. 6.7% 6/10/19	2,500		2,910
Rabobank Nederland NV:
2.125% 10/13/15	1,000		966
4.5% 1/11/21	1,000		1,001
Regions Bank 7.5% 5/15/18	2,000		2,120
Royal Bank of Canada 2.625% 12/15/15	3,000		3,007
U.S. Bancorp 3.15% 3/4/15	5,000		5,110
UniCredit Luxembourg Finance SA 5.584% 1/13/17 (a)(e)	2,905		2,782
UnionBanCal Corp. 5.25% 12/16/13	656		706
Wachovia Bank NA:
4.875% 2/1/15	1,394		1,490
6.6% 1/15/38	10,000		11,293
Wachovia Corp.:
5.5% 5/1/13	14,000		15,184
5.625% 10/15/16	3,367		3,669
5.75% 6/15/17	2,905		3,240
Wells Fargo & Co. 5.625% 12/11/17	5,972		6,619
Westpac Banking Corp.:
1.85% 12/9/13	9,800		9,829
4.875% 11/19/19	3,700		3,856
			157,702
Consumer Finance - 1.0%
American Express Co.:
7.25% 5/20/14	1,500		1,715
8.15% 3/19/38	8,500		11,323
American Express Credit Corp. 2.75% 9/15/15	5,000		4,920
Capital One Bank USA NA 8.8% 7/15/19	2,020		2,550
Capital One Financial Corp.:
5.7% 9/15/11	2,000		2,053
7.375% 5/23/14	1,578		1,819
Caterpillar Financial Services Corp.:
2% 4/5/13	8,104		8,220
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Consumer Finance - continued
Caterpillar Financial Services Corp.: - continued
2.75% 6/24/15	$ 1,500		$ 1,525
Discover Financial Services:
6.45% 6/12/17	2,263		2,454
10.25% 7/15/19	1,000		1,295
General Electric Capital Corp.:
2.25% 11/9/15	6,228		6,037
3.5% 6/29/15	23,772		24,435
5.625% 9/15/17	7,044		7,714
5.625% 5/1/18	15,000		16,312
6.375% 11/15/67 (e)	9,000		9,214
Household Finance Corp. 6.375% 10/15/11	1,842		1,906
PACCAR Financial Corp. 1.95% 12/17/12	2,000		2,036
			105,528
Diversified Financial Services - 1.8%
Bank of America Corp. 5.75% 12/1/17	5,855		6,260
BB&T Corp. 3.85% 7/27/12	1,000		1,038
BNP Paribas:
2.125% 12/21/12	2,000		2,030
3.6% 2/23/16	10,380		10,448
BP Capital Markets PLC:
3.125% 3/10/12	4,000		4,090
3.125% 10/1/15	2,500		2,537
3.875% 3/10/15	2,000		2,096
4.5% 10/1/20	2,000		2,009
4.75% 3/10/19	1,000		1,041
Capital One Capital V 10.25% 8/15/39	3,557		3,864
Capital One Capital VI 8.875% 5/15/40	1,000		1,061
Citigroup, Inc.:
4.75% 5/19/15	15,244		16,097
5.5% 4/11/13	13,899		14,900
6.125% 5/15/18	5,731		6,284
6.5% 8/19/13	6,095		6,717
8.125% 7/15/39	8,000		10,146
8.5% 5/22/19	2,000		2,480
CME Group, Inc. 5.75% 2/15/14	501		557
Deutsche Bank AG London Branch:
3.45% 3/30/15	2,000		2,046
3.875% 8/18/14	5,000		5,234
Export Development Canada 1.25% 10/27/15	3,000		2,887
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Diversified Financial Services - continued
GlaxoSmithKline Capital, Inc.:
5.65% 5/15/18	$ 8,585		$ 9,690
6.375% 5/15/38	7,218		8,226
JPMorgan Chase & Co.:
3.4% 6/24/15	10,710		10,859
3.7% 1/20/15	5,000		5,177
4.65% 6/1/14	4,000		4,274
5.5% 10/15/40	5,700		5,658
6.3% 4/23/19	10,000		11,236
Kreditanstalt fuer Wiederaufbau:
1.875% 1/14/13	3,100		3,161
4% 1/27/20	3,000		3,103
4.875% 6/17/19	25,000		27,590
National Rural Utils. Coop. Finance Corp.:
2.625% 9/16/12	3,000		3,077
3.875% 9/16/15	4,000		4,195
ORIX Corp. 5.48% 11/22/11	381		392
TECO Finance, Inc. 4% 3/15/16	2,875		2,923
			203,383
Insurance - 0.7%
Ace INA Holdings, Inc. 5.9% 6/15/19	3,000		3,345
Allstate Corp. 7.45% 5/16/19	3,000		3,606
American International Group, Inc.:
3.65% 1/15/14	3,700		3,800
5.05% 10/1/15	3,000		3,125
5.85% 1/16/18	2,000		2,111
6.4% 12/15/20	2,900		3,144
8.25% 8/15/18	4,000		4,776
Assurant, Inc. 5.625% 2/15/14	1,894		2,008
Axis Capital Holdings Ltd. 5.75% 12/1/14	553		597
Berkshire Hathaway Finance Corp. 5.75% 1/15/40	5,000		5,280
MetLife, Inc.:
2.375% 2/6/14	3,000		3,040
5% 6/15/15	1,153		1,247
6.125% 12/1/11	981		1,022
7.717% 2/15/19	9,000		11,072
Prudential Financial, Inc.:
5.15% 1/15/13	2,146		2,279
5.4% 6/13/35	447		424
5.5% 3/15/16	421		454
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Insurance - continued
Prudential Financial, Inc.: - continued
5.7% 12/14/36	$ 380		$ 378
6.2% 1/15/15	1,340		1,486
7.375% 6/15/19	3,000		3,564
8.875% 6/15/38 (e)	2,944		3,430
The Chubb Corp.:
5.75% 5/15/18	4,175		4,679
6.5% 5/15/38	3,510		3,953
The Travelers Companies, Inc. 6.25% 6/15/37	8,350		9,116
			77,936
Real Estate Investment Trusts - 0.1%
AvalonBay Communities, Inc. 6.125% 11/1/12	527		566
Developers Diversified Realty Corp. 5.25% 4/15/11	2,410		2,420
HRPT Properties Trust:
5.75% 11/1/15	881		935
6.25% 6/15/17	1,221		1,277
6.65% 1/15/18	612		653
Kimco Realty Corp. 6.875% 10/1/19	1,000		1,166
			7,017
Real Estate Management & Development - 0.3%
Brandywine Operating Partnership LP 5.75% 4/1/12	1,000		1,030
Digital Realty Trust LP 4.5% 7/15/15	2,000		2,061
Duke Realty LP:
5.4% 8/15/14	5,172		5,521
5.625% 8/15/11	2,929		2,976
5.95% 2/15/17	630		675
6.25% 5/15/13	1,000		1,083
6.5% 1/15/18	1,000		1,103
ERP Operating LP 5.5% 10/1/12	3,403		3,626
Liberty Property LP:
4.75% 10/1/20	1,000		989
5.125% 3/2/15	840		889
5.5% 12/15/16	1,000		1,083
Regency Centers LP:
5.25% 8/1/15	2,113		2,257
5.875% 6/15/17	1,046		1,135
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Tanger Properties LP:
6.125% 6/1/20	$ 4,408		$ 4,768
6.15% 11/15/15	24		26
			29,222
Thrifts & Mortgage Finance - 0.3%
Bank of America Corp.:
4.5% 4/1/15	5,840		6,102
5.65% 5/1/18	8,539		9,023
6.5% 8/1/16	15,000		16,835
U.S. Central Federal Credit Union:
1.25% 10/19/11	1,500		1,509
1.9% 10/19/12	1,500		1,530
			34,999
TOTAL FINANCIALS			814,648
HEALTH CARE - 1.0%
Biotechnology - 0.0%
Amgen, Inc. 5.85% 6/1/17	2,928		3,350
Health Care Equipment & Supplies - 0.0%
Baxter International, Inc. 4.5% 8/15/19	3,000		3,133
St. Jude Medical, Inc. 3.75% 7/15/14	1,000		1,053
			4,186
Health Care Providers & Services - 0.3%
Coventry Health Care, Inc.:
5.95% 3/15/17	1,731		1,797
6.3% 8/15/14	3,584		3,829
Express Scripts, Inc.:
5.25% 6/15/12	2,000		2,097
6.25% 6/15/14	2,000		2,233
7.25% 6/15/19	2,000		2,398
Medco Health Solutions, Inc. 2.75% 9/15/15	2,000		1,984
WellPoint, Inc.:
5% 12/15/14	7,200		7,837
5.8% 8/15/40	4,000		4,028
			26,203
Life Sciences Tools & Services - 0.0%
Agilent Technologies, Inc. 5.5% 9/14/15	1,000		1,084
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
HEALTH CARE - continued
Pharmaceuticals - 0.7%
Abbott Laboratories 4.125% 5/27/20	$ 9,500		$ 9,598
AstraZeneca PLC:
5.9% 9/15/17	4,505		5,156
6.45% 9/15/37	3,250		3,733
Bristol-Myers Squibb Co. 5.45% 5/1/18	2,905		3,249
Hospira, Inc. 6.4% 5/15/15	2,000		2,255
Merck & Co., Inc.:
2.25% 1/15/16	1,000		984
3.875% 1/15/21	1,000		979
4% 6/30/15	3,000		3,201
5% 6/30/19	5,970		6,536
5.85% 6/30/39	1,000		1,096
Novartis Capital Corp. 4.125% 2/10/14	12,903		13,828
Pfizer, Inc.:
5.35% 3/15/15	4,000		4,479
6.2% 3/15/19	4,000		4,649
7.2% 3/15/39	5,400		6,768
Teva Pharmaceutical Finance LLC 5.55% 2/1/16	949		1,058
Watson Pharmaceuticals, Inc.:
5% 8/15/14	1,000		1,080
6.125% 8/15/19	1,000		1,104
Wyeth 5.5% 2/1/14	5,400		5,990
			75,743
TOTAL HEALTH CARE			110,566
INDUSTRIALS - 0.9%
Aerospace & Defense - 0.2%
Honeywell International, Inc.:
5.375% 3/1/41	1,400		1,424
5.4% 3/15/16	3,400		3,825
Raytheon Co.:
1.625% 10/15/15	1,000		955
3.125% 10/15/20	2,000		1,836
4.875% 10/15/40	1,000		930
The Boeing Co.:
5% 3/15/14	3,000		3,294
6% 3/15/19	1,000		1,149
6.875% 3/15/39	1,000		1,207
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INDUSTRIALS - continued
Aerospace & Defense - continued
United Technologies Corp.:
4.5% 4/15/20	$ 4,000		$ 4,161
5.7% 4/15/40	2,000		2,133
6.125% 2/1/19	4,000		4,660
			25,574
Airlines - 0.0%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	63		63
Continental Airlines, Inc.:
6.648% 3/15/19	2,794		2,914
6.9% 7/2/19	759		808
Delta Air Lines, Inc. pass-thru trust certificates 6.821% 8/10/22	323		342
			4,127
Commercial Services & Supplies - 0.0%
Republic Services, Inc. 5.5% 9/15/19	4,000		4,321
Industrial Conglomerates - 0.3%
Covidien International Finance SA:
5.45% 10/15/12	613		656
6% 10/15/17	2,902		3,294
6.55% 10/15/37	4,250		4,882
General Electric Co. 5.25% 12/6/17	18,540		20,310
			29,142
Machinery - 0.1%
Caterpillar, Inc. 5.3% 9/15/35	7,000		7,195
Deere & Co.:
4.375% 10/16/19	2,000		2,096
5.375% 10/16/29	1,000		1,068
			10,359
Road & Rail - 0.3%
Burlington Northern Santa Fe Corp. 4.7% 10/1/19	5,000		5,244
CSX Corp. 7.375% 2/1/19	10,000		12,118
Norfolk Southern Corp. 5.75% 1/15/16	10,000		11,137
			28,499
TOTAL INDUSTRIALS			102,022
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INFORMATION TECHNOLOGY - 0.9%
Communications Equipment - 0.2%
Cisco Systems, Inc.:
2.9% 11/17/14	$ 3,000		$ 3,148
4.45% 1/15/20	2,000		2,059
4.95% 2/15/19	3,479		3,739
5.9% 2/15/39	12,416		13,065
Nokia Corp.:
5.375% 5/15/19	1,000		1,032
6.625% 5/15/39	1,000		1,013
			24,056
Computers & Peripherals - 0.1%
Dell, Inc. 5.625% 4/15/14	2,000		2,201
Hewlett-Packard Co. 4.75% 6/2/14	8,300		9,029
			11,230
Electronic Equipment & Components - 0.1%
Tyco Electronics Group SA:
5.95% 1/15/14	2,922		3,211
6% 10/1/12	3,840		4,110
6.55% 10/1/17	2,338		2,694
7.125% 10/1/37	2,475		2,860
			12,875
IT Services - 0.2%
International Business Machines Corp. 7.625% 10/15/18	13,000		16,429
Office Electronics - 0.1%
Xerox Corp.:
4.25% 2/15/15	1,000		1,053
5.5% 5/15/12	1,586		1,666
5.625% 12/15/19	1,000		1,075
8.25% 5/15/14	3,902		4,566
			8,360
Software - 0.2%
Microsoft Corp.:
2.5% 2/8/16	2,000		2,025
2.95% 6/1/14	2,000		2,090
4.2% 6/1/19	2,000		2,089
5.3% 2/8/41	1,500		1,511
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INFORMATION TECHNOLOGY - continued
Software - continued
Oracle Corp.:
5.375% 7/15/40 (a)	$ 4,000		$ 3,899
5.75% 4/15/18	7,400		8,322
			19,936
TOTAL INFORMATION TECHNOLOGY			92,886
MATERIALS - 0.9%
Chemicals - 0.4%
Air Products & Chemicals, Inc. 4.375% 8/21/19	1,000		1,009
Dow Chemical Co.:
4.85% 8/15/12	10,000		10,529
5.9% 2/15/15	2,500		2,788
7.6% 5/15/14	3,000		3,484
8.55% 5/15/19	3,000		3,802
9.4% 5/15/39	3,000		4,468
E.I. du Pont de Nemours & Co.:
3.25% 1/15/15	4,000		4,151
4.625% 1/15/20	3,000		3,118
Lubrizol Corp. 8.875% 2/1/19	919		1,152
Potash Corp. of Saskatchewan, Inc.:
3.75% 9/30/15	2,000		2,084
4.875% 3/30/20	1,500		1,568
Praxair, Inc. 3.25% 9/15/15	3,200		3,295
			41,448
Construction Materials - 0.0%
CRH America, Inc. 6% 9/30/16	1,816		1,957
Containers & Packaging - 0.1%
Bemis Co., Inc.:
5.65% 8/1/14	3,000		3,273
6.8% 8/1/19	3,000		3,431
			6,704
Metals & Mining - 0.4%
ArcelorMittal SA:
3.75% 8/5/15	7,800		7,878
7% 10/15/39	2,100		2,196
9.85% 6/1/19	2,000		2,570
BHP Billiton Financial (USA) Ltd.:
5.125% 3/29/12	1,957		2,049
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
MATERIALS - continued
Metals & Mining - continued
BHP Billiton Financial (USA) Ltd.: - continued
5.5% 4/1/14	$ 2,500		$ 2,779
6.5% 4/1/19	2,500		2,963
Newmont Mining Corp.:
5.125% 10/1/19	1,000		1,076
6.25% 10/1/39	1,600		1,686
Rio Tinto Finance (USA) Ltd.:
5.2% 11/2/40	1,000		952
6.5% 7/15/18	1,398		1,618
7.125% 7/15/28	2,000		2,442
8.95% 5/1/14	4,000		4,843
Vale Overseas Ltd.:
5.625% 9/15/19	6,210		6,583
6.25% 1/23/17	9,395		10,589
			50,224
TOTAL MATERIALS			100,333
TELECOMMUNICATION SERVICES - 1.6%
Diversified Telecommunication Services - 1.2%
AT&T Broadband Corp. 8.375% 3/15/13	2,560		2,903
AT&T, Inc.:
5.8% 2/15/19	4,000		4,469
6.3% 1/15/38	838		870
6.7% 11/15/13	1,162		1,315
BellSouth Capital Funding Corp. 7.875% 2/15/30	2,477		3,014
British Telecommunications PLC 9.875% 12/15/30	4,515		6,260
CenturyLink, Inc.:
6.15% 9/15/19	5,000		5,213
7.6% 9/15/39	2,500		2,639
Deutsche Telekom International Financial BV:
5.25% 7/22/13	2,425		2,629
5.875% 8/20/13	10,000		11,006
6.75% 8/20/18	3,595		4,203
France Telecom SA:
2.125% 9/16/15	1,000		976
5.375% 7/8/19	4,000		4,411
SBC Communications, Inc.:
5.1% 9/15/14	2,149		2,365
5.875% 2/1/12	2,707		2,837
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
SBC Communications, Inc.: - continued
5.875% 8/15/12	$ 968		$ 1,037
6.15% 9/15/34	5,270		5,382
6.45% 6/15/34	11,795		12,408
Telecom Italia Capital SA:
4.95% 9/30/14	3,178		3,265
5.25% 10/1/15	4,571		4,648
6.999% 6/4/18	1,776		1,906
7.175% 6/18/19	6,000		6,496
Telefonica Emisiones SAU:
3.992% 2/16/16	3,850		3,865
4.949% 1/15/15	3,000		3,158
5.462% 2/16/21	2,700		2,740
5.877% 7/15/19	2,000		2,102
6.421% 6/20/16	1,151		1,278
7.045% 6/20/36	2,600		2,798
Verizon Communications, Inc.:
6.25% 4/1/37	3,121		3,244
6.35% 4/1/19	6,000		6,881
6.9% 4/15/38	6,025		6,834
Verizon Global Funding Corp. 5.85% 9/15/35	3,190		3,210
Verizon New England, Inc. 6.5% 9/15/11	882		910
Verizon New York, Inc. 6.875% 4/1/12	2,628		2,788
			130,060
Wireless Telecommunication Services - 0.4%
America Movil SAB de CV 6.125% 11/15/37	8,365		8,778
AT&T Wireless Services, Inc. 8.125% 5/1/12	10,000		10,840
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	4,500		4,841
5.875% 10/1/19	2,905		3,148
6.35% 3/15/40	1,000		1,020
Verizon Wireless Capital LLC:
5.55% 2/1/14	2,352		2,600
8.5% 11/15/18	3,486		4,517
Vodafone Group PLC:
3.375% 11/24/15	1,000		1,019
5% 12/16/13	2,275		2,473
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
Vodafone Group PLC: - continued
5.45% 6/10/19	$ 6,000		$ 6,577
5.5% 6/15/11	2,735		2,774
			48,587
TOTAL TELECOMMUNICATION SERVICES			178,647
UTILITIES - 1.7%
Electric Utilities - 1.1%
Ameren Illinois Co. 6.125% 11/15/17	3,364		3,742
AmerenUE 6.4% 6/15/17	2,959		3,353
Cleveland Electric Illuminating Co.:
5.65% 12/15/13	4,074		4,470
8.875% 11/15/18	2,000		2,539
Commonwealth Edison Co.:
5.4% 12/15/11	6,418		6,656
5.8% 3/15/18	9,945		11,086
Duke Energy Carolinas LLC:
5.25% 1/15/18	4,355		4,796
6% 1/15/38	3,450		3,741
Duke Energy Corp. 3.95% 9/15/14	4,500		4,741
Edison International 3.75% 9/15/17	3,000		2,977
FirstEnergy Solutions Corp. 6.8% 8/15/39	3,500		3,456
FPL Group Capital, Inc. 7.875% 12/15/15	1,532		1,830
Nevada Power Co. 6.5% 8/1/18	1,555		1,789
Northern States Power Co. 5.25% 3/1/18	10,500		11,517
Oncor Electric Delivery Co. LLC 5% 9/30/17 (a)	2,705		2,871
Pacific Gas & Electric Co. 5.4% 1/15/40	4,000		3,919
PacifiCorp 6% 1/15/39	6,193		6,696
Pennsylvania Electric Co. 6.05% 9/1/17	757		825
Potomac Electric Power Co. 6.5% 11/15/37	3,806		4,393
Progress Energy, Inc.:
4.875% 12/1/19	1,700		1,776
6% 12/1/39	3,200		3,357
7.1% 3/1/11	3,353		3,353
Public Service Electric & Gas Co. 2.7% 5/1/15	2,000		2,017
Sierra Pacific Power Co. 5.45% 9/1/13	1,545		1,682
Tampa Electric Co.:
6.15% 5/15/37	6,260		6,774
6.55% 5/15/36	5,500		6,160
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
Virginia Electric & Power Co. 5% 6/30/19	$ 5,000		$ 5,381
Wisconsin Electric Power Co. 6.25% 12/1/15	2,983		3,447
Wisconsin Power & Light Co. 5% 7/15/19	1,000		1,077
			120,421
Gas Utilities - 0.0%
Southern Natural Gas Co. 5.9% 4/1/17 (a)	438		473
Independent Power Producers & Energy Traders - 0.1%
Duke Capital LLC 5.668% 8/15/14	2,036		2,237
Exelon Generation Co. LLC 5.35% 1/15/14	1,513		1,635
PPL Energy Supply LLC 6.5% 5/1/18	6,485		7,180
			11,052
Multi-Utilities - 0.5%
CenterPoint Energy, Inc. 5.95% 2/1/17	1,181		1,276
Consolidated Edison Co. of New York, Inc.:
4.45% 6/15/20	2,000		2,058
5.5% 12/1/39	2,500		2,536
Dominion Resources, Inc.:
2.25% 9/1/15	1,000		976
6.3% 9/30/66 (e)	1,000		978
7.5% 6/30/66 (e)	1,000		1,040
DTE Energy Co. 7.05% 6/1/11	974		988
MidAmerican Energy Holdings, Co.:
5.75% 4/1/18	3,750		4,220
5.875% 10/1/12	2,893		3,102
6.5% 9/15/37	7,605		8,453
National Grid PLC 6.3% 8/1/16	1,463		1,668
NiSource Finance Corp.:
5.25% 9/15/17	835		884
5.4% 7/15/14	1,334		1,450
5.45% 9/15/20	5,111		5,325
6.25% 12/15/40	2,453		2,530
6.4% 3/15/18	1,532		1,720
San Diego Gas & Electric Co. 4.5% 8/15/40	1,000		895
Sempra Energy:
6% 10/15/39	1,000		1,036
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Multi-Utilities - continued
Sempra Energy: - continued
6.5% 6/1/16	$ 3,000		$ 3,438
Wisconsin Energy Corp. 6.25% 5/15/67 (e)	4,228		4,223
			48,796
TOTAL UTILITIES			180,742
TOTAL NONCONVERTIBLE BONDS (Cost $1,925,540)		2,096,976
U.S. Government and Government Agency Obligations - 41.8%
U.S. Government Agency Obligations - 7.5%
Fannie Mae:
0.375% 12/28/12	80,420		79,783
0.5% 10/30/12	23,650		23,596
1% 4/4/12	41,600		41,856
1.25% 8/20/13	9,624		9,670
1.75% 2/22/13	22,745		23,174
2% 1/9/12	3,050		3,093
2.5% 5/15/14	18,484		19,098
2.75% 3/13/14	63,630		66,278
3.625% 2/12/13	55,295		58,301
5% 2/16/12	13,565		14,157
Federal Farm Credit Bank 3% 9/22/14	50,000		52,324
Federal Home Loan Bank:
1.625% 11/21/12	78,670		79,963
1.875% 6/21/13	38,900		39,728
Freddie Mac:
0.625% 12/28/12	18,110		18,087
0.75% 3/28/13	31,355		31,322
1.125% 7/27/12	28,500		28,735
1.375% 2/25/14	8,804		8,817
1.75% 9/10/15	20,385		20,010
2.125% 3/23/12	17,776		18,092
3.75% 3/27/19	2,300		2,372
4.875% 6/13/18	98,230		109,270
6.25% 7/15/32	7,700		9,341
6.75% 3/15/31	26,000		33,145
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - continued
Tennessee Valley Authority:
5.25% 9/15/39	$ 20,000		$ 20,943
5.375% 4/1/56	5,395		5,695
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			816,850
U.S. Treasury Obligations - 32.8%
U.S. Treasury Bonds:
3.5% 2/15/39	12,115		10,186
3.875% 8/15/40	44,180		39,665
4.25% 5/15/39	26,000		25,013
4.25% 11/15/40	20,211		19,384
4.375% 2/15/38	11,000		10,857
4.375% 11/15/39	100		98
4.375% 5/15/40	8,000		7,841
4.5% 2/15/36	18,000		18,236
4.5% 5/15/38	15,000		15,098
4.5% 8/15/39	39,000		39,110
4.625% 2/15/40	21,500		21,984
4.75% 2/15/37	11,000		11,560
4.75% 2/15/41	19,000		19,810
5% 5/15/37	11,000		11,999
5.375% 2/15/31	70,000		80,413
6.25% 5/15/30	86,360		109,407
8% 11/15/21	75,392		105,796
8.75% 5/15/17	8,000		10,878
8.875% 8/15/17	5,000		6,878
8.875% 2/15/19	7,000		9,966
9% 11/15/18	4,000		5,708
9.125% 5/15/18	3,000		4,254
U.S. Treasury Notes:
0.375% 8/31/12	117,000		116,867
0.375% 9/30/12	51,000		50,906
0.375% 10/31/12	33,000		32,910
0.5% 11/30/12	144,000		143,809
0.625% 6/30/12	60,000		60,194
0.625% 7/31/12	83,000		83,253
0.625% 12/31/12	57,000		57,004
0.625% 1/31/13	199,000		198,899
0.625% 2/28/13	67,000		66,916
0.75% 5/31/12	12,000		12,059
0.75% 12/15/13	980		971
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
1% 4/30/12	$ 36,000		$ 36,274
1% 7/15/13	19,000		19,064
1% 1/15/14	2,459		2,451
1.25% 8/31/15	92,000		89,377
1.25% 9/30/15	6,000		5,816
1.25% 10/31/15	39,660		38,352
1.375% 10/15/12	9,100		9,224
1.5% 12/31/13	1,300		1,315
1.75% 1/31/14	13,759		14,009
1.75% 3/31/14	20,550		20,890
1.75% 7/31/15	53,000		52,747
1.875% 2/28/14	1,660		1,695
1.875% 4/30/14	23,821		24,290
1.875% 6/30/15	79,000		79,179
1.875% 8/31/17	25,000		23,781
1.875% 10/31/17	13,000		12,313
2% 1/31/16	84,000		83,606
2.125% 5/31/15	98,000		99,401
2.125% 12/31/15	18,710		18,763
2.125% 2/29/16	70,000		69,967
2.25% 5/31/14	25,170		25,941
2.25% 11/30/17	11,000		10,656
2.375% 9/30/14	34,410		35,507
2.375% 2/28/15	32,434		33,329
2.375% 7/31/17	25,000		24,578
2.5% 3/31/13	18,030		18,700
2.5% 3/31/15	53,600		55,321
2.5% 4/30/15	105,000		108,224
2.5% 6/30/17	2,000		1,985
2.625% 6/30/14	31,801		33,143
2.625% 7/31/14	28,000		29,175
2.625% 12/31/14	204,900		212,872
2.625% 2/29/16	13,600		13,919
2.625% 8/15/20	141,000		132,496
2.625% 11/15/20	94,180		88,095
2.75% 11/30/16	25,000		25,430
2.75% 12/31/17	3,000		2,995
3% 8/31/16	12,402		12,831
3% 9/30/16	22,000		22,737
3.125% 10/31/16	23,900		24,826
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
3.125% 5/15/19	$ 14,260		$ 14,303
3.25% 5/31/16	14,200		14,918
3.25% 12/31/16	25,000		26,076
3.375% 11/15/19	62,740		63,598
3.5% 2/15/18	4,000		4,180
3.5% 5/15/20	81,800		83,116
3.625% 8/15/19	20,000		20,744
3.625% 2/15/20	59,600		61,360
3.625% 2/15/21	48,000		48,833
3.75% 11/15/18	6,000		6,332
3.875% 2/15/13	3,150		3,350
3.875% 5/15/18	20,000		21,363
4% 2/15/14	11,600		12,582
4% 2/15/15	9,600		10,484
4% 8/15/18	22,000		23,650
4.125% 5/15/15	19,300		21,176
4.25% 8/15/13	5,600		6,060
4.25% 11/15/13	12,007		13,064
4.25% 11/15/14	6,580		7,248
4.25% 11/15/17	16,000		17,515
4.5% 5/15/17	13,000		14,454
4.625% 7/31/12	8,700		9,219
4.625% 11/15/16	15,000		16,812
4.625% 2/15/17	14,000		15,677
4.75% 8/15/17	14,000		15,771
5.125% 5/15/16	13,100		15,004
TOTAL U.S. TREASURY OBLIGATIONS			3,590,092
Other Government Related - 1.5%
Citibank NA 1.875% 6/4/12 (FDIC Guaranteed) (b)	30,000		30,485
Citigroup Funding, Inc.:
2% 3/30/12 (FDIC Guaranteed) (b)	50,000		50,800
2.125% 7/12/12 (FDIC Guaranteed) (b)	52,060		53,197
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
Other Government Related - continued
General Electric Capital Corp. 2.125% 12/21/12 (FDIC Guaranteed) (b)	$ 25,000		$ 25,629
Goldman Sachs Group, Inc. 3.25% 6/15/12 (FDIC Guaranteed) (b)	9,504		9,837
TOTAL OTHER GOVERNMENT RELATED			169,948
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $4,521,492)		4,576,890
U.S. Government Agency - Mortgage Securities - 31.9%
Fannie Mae - 23.3%
4% 4/1/24 to 2/1/41	323,465		322,595
4% 3/1/26 (c)	108,000		110,993
4.5% 5/1/18 to 11/1/40	432,639		444,511
4.5% 3/1/26 (c)	31,000		32,482
4.5% 3/1/41 (c)	154,000		156,948
4.5% 3/1/41 (c)	22,000		22,421
4.538% 11/1/34 (e)	6,615		7,054
5% 12/1/17 to 8/1/40 (d)	394,401		416,703
5% 3/1/41 (c)	38,000		39,799
5% 3/1/41 (c)	3,000		3,142
5.062% 11/1/34 (e)	34,788		36,514
5.5% 5/1/21 to 6/1/40	439,207		471,824
5.5% 3/1/41 (c)	38,500		41,153
6% 8/1/22 to 9/1/39	278,986		305,084
6% 3/1/41 (c)	11,000		11,956
6.5% 5/1/31 to 9/1/38	111,496		124,725
6.5% 3/1/41 (c)	3,000		3,349
TOTAL FANNIE MAE			2,551,253
Freddie Mac - 2.3%
2.505% 12/1/35 (e)	10,764		11,294
4.5% 6/1/25 to 10/1/40	19,710		20,522
4.853% 3/1/35 (e)	15,597		16,572
5% 4/1/23 to 9/1/40	104,572		109,735
5% 3/1/41 (c)	22,000		23,019
5.079% 9/1/35 (e)	22,658		23,887
5.144% 3/1/36 (e)	11,811		12,133
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
5.5% 1/1/36	$ 9,034		$ 9,697
5.794% 9/1/37 (e)	5,883		6,235
6% 4/1/32 to 8/1/37	7,805		8,567
6% 3/1/41 (c)	4,000		4,345
11.75% 9/1/13	4		4
TOTAL FREDDIE MAC			246,010
Ginnie Mae - 6.3%
4% 1/15/25 to 8/15/39	9,477		9,879
4% 3/1/41 (c)	51,200		51,231
4.5% 3/15/39 to 1/20/41	223,051		230,883
5% 6/15/38 to 7/15/40	185,769		198,731
5% 3/1/41 (c)	11,700		12,422
5.5% 10/15/35 to 9/15/39	91,494		99,537
6% 5/20/34 to 11/15/39	48,199		52,921
6% 3/1/41 (c)	11,500		12,659
6.5% 1/15/32 to 2/15/39	21,929		24,619
TOTAL GINNIE MAE			692,882
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $3,421,147)		3,490,145
Asset-Backed Securities - 0.4%
AmeriCredit Prime Automobile Receivables Trust Series 2007-1 Class D, 5.62% 9/8/14	750		770
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (e)	48		47
Capital Auto Receivables Trust Series 2007-2 Class A4A, 5.39% 2/18/14	2,572		2,615
Capital One Multi-Asset Execution Trust:
Series 2008-A3 Class A3, 5.05% 2/15/16	5,000		5,397
Series 2009-A2 Class A2, 3.2% 4/15/14	1,000		1,008
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	619		629
Chase Issuance Trust:
Series 2008-9 Class A, 4.26% 5/15/13	4,900		4,940
Series 2008-A4 Class A4, 4.65% 3/15/15	5,000		5,364
Citibank Credit Card Issuance Trust:
Series 2006-A4 Class A4, 5.45% 5/10/13	5,000		5,054
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Citibank Credit Card Issuance Trust: - continued
Series 2009-A3 Class A3, 2.7% 6/24/13	$ 1,000		$ 1,012
Series 2009-A4 Class A4, 4.9% 6/23/16	1,000		1,096
Series 2009-A5 Class A5, 2.25% 12/23/14	6,000		6,130
CPS Auto Receivables Trust Series 2006-D Class A4, 5.115% 8/15/13 (FSA Insured) (a)	280		283
Detroit Edison Securitization Funding LLC Series 2001-1 Class A6, 6.62% 3/1/16	6,000		6,918
Ford Credit Auto Owner Trust Series 2006-C Class B, 5.3% 6/15/12	177		180
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (a)	1,242		989
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (e)	64		63
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (e)	141		137
Residential Asset Mortgage Products, Inc. Series 2006-EFC2 Class M1, 0.4915% 12/25/36 (e)	377		12
Residential Asset Securities Corp. Series 2007-KS2 Class AI1, 0.3315% 2/25/37 (e)	75		75
Triad Auto Receivables Owner Trust Series 2006-C Class A4, 5.31% 5/13/13 (AMBAC Insured)	288		291
TOTAL ASSET-BACKED SECURITIES (Cost $41,649)		43,010
Collateralized Mortgage Obligations - 0.1%
Private Sponsor - 0.1%
Citigroup Commercial Mortgage Trust Series 2008-C7 Class A2B, 6.0995% 12/10/49 (e)	1,268		1,340
Cobalt CMBS Commercial Mortgage Trust Series 2007-C2 Class B, 5.617% 4/15/47 (e)	1,416		637
COMM pass-thru certificates floater Series 2001-J2A Class A2F, 0.7648% 7/16/34 (a)(e)	946		944
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18:
Class A1, 5.32% 6/12/47 (e)	44		45
Class A3, 5.447% 6/12/47 (e)	2,405		2,490
LB-UBS Commercial Mortgage Trust sequential payer Series 2006-C6 Class A4, 5.372% 9/15/39	571		614
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Merrill Lynch-CFC Commercial Mortgage Trust Series 2006-3 Class ASB, 5.382% 7/12/46 (e)	$ 5,429		$ 5,725
Salomon Brothers Mortgage Securities VII, Inc. Series 2006-C2 Class H, 6.308% 7/18/33 (a)	179		178
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $8,964)		11,973
Commercial Mortgage Securities - 3.2%
Banc of America Commercial Mortgage Trust:
sequential payer:
Series 2006-2 Class AAB, 5.7218% 5/10/45 (e)	1,480		1,593
Series 2006-5:
Class A2, 5.317% 9/10/47	4,844		4,962
Class A3, 5.39% 9/10/47	1,768		1,827
Series 2006-6 Class A3, 5.369% 10/10/45	2,536		2,630
Series 2007-2 Class A1, 5.421% 4/10/49	108		110
Series 2007-4 Class A3, 5.8093% 2/10/51 (e)	1,265		1,334
Series 2006-6 Class E, 5.619% 10/10/45 (a)	733		211
Series 2007-3:
Class A3, 5.6579% 6/10/49 (e)	2,118		2,209
Class A4, 5.6579% 6/10/49 (e)	2,643		2,822
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2001-1 Class A4, 5.451% 1/15/49	2,777		2,959
Series 2004-2:
Class A3, 4.05% 11/10/38	263		267
Class A4, 4.153% 11/10/38	1,608		1,659
Series 2005-1 Class A3, 4.877% 11/10/42	1,156		1,158
Series 2006-1 Class A1, 5.219% 9/10/45 (e)	168		168
Series 2001-3 Class H, 6.562% 4/11/37 (a)	709		718
Series 2001-PB1:
Class J, 7.166% 5/11/35 (a)	317		312
Class K, 6.15% 5/11/35 (a)	590		562
Series 2005-3 Series A3B, 5.09% 7/10/43 (e)	3,939		4,090
Series 2007-1 Class B, 5.543% 1/15/49	763		613
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class C, 0.5758% 3/15/22 (a)(e)	545		534
Class D, 0.6258% 3/15/22 (a)(e)	552		513
Class E, 0.6658% 3/15/22 (a)(e)	456		415
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Banc of America Large Loan, Inc. floater: - continued
Series 2006-BIX1 Class F, 0.5758% 10/15/19 (a)(e)	$ 939		$ 826
Bayview Commercial Asset Trust:
Series 2004-1 Class IO, 1.25% 4/25/34 (a)(f)	2,820		99
Series 2007-5A Class IO, 3.047% 10/25/37 (a)(e)(f)	6,753		802
Bear Stearns Commercial Mortgage Securities Trust:
floater Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (a)(e)	97		80
Class E, 0.5658% 3/15/22 (a)(e)	507		390
Class F, 0.6158% 3/15/22 (a)(e)	311		224
Class G, 0.6658% 3/15/22 (a)(e)	80		55
Class H, 0.8158% 3/15/22 (a)(e)	97		61
Class J, 0.9658% 3/15/22 (a)(e)	97		49
sequential payer:
Series 2003-PWR2 Class A3, 4.834% 5/11/39	340		345
Series 2007-PW16 Class A4, 5.7174% 6/11/40 (e)	16,612		18,064
Series 2007-PW17 Class A1, 5.282% 6/11/50	279		284
Series 2007-T26 Class A1, 5.145% 1/12/45 (e)	219		224
Series 2006-PW13 Class A3, 5.518% 9/11/41	4,475		4,688
Series 2006-T22 Class A4, 5.514% 4/12/38 (e)	159		174
Series 2007-PW16:
Class B, 5.7174% 6/11/40 (a)(e)	203		136
Class C, 5.7174% 6/11/40 (a)(e)	169		95
Class D, 5.7174% 6/11/40 (a)(e)	169		88
Series 2007-T28 Class A1, 5.422% 9/11/42	122		124
CDC Commercial Mortgage Trust Series 2002-FX1 Class G, 6.625% 5/15/35 (a)	1,490		1,583
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2 Class F, 0.574% 8/15/21 (a)(e)	453		442
sequential payer Series 2006-C5 Class A4, 5.431% 10/15/49	9,390		10,134
Series 2006-C5 Class AMP2, 5.5005% 10/15/49 (a)	1,918		1,735
Series 2007-C6:
Class A1, 5.622% 12/10/49 (e)	1,020		1,022
Class A4, 5.6981% 12/10/49 (e)	9,950		10,784
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4 Class A4, 5.322% 12/11/49	2,212		2,331
Series 2007-CD4:
Class A3, 5.293% 12/11/49	1,234		1,270
Class C, 5.476% 12/11/49	2,387		835
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Cobalt CMBS Commercial Mortgage Trust:
sequential payer Series 2007-C3 Class A3, 5.8155% 5/15/46 (e)	$ 1,268		$ 1,358
Series 2006-C1 Class B, 5.359% 8/15/48	3,804		2,092
COMM pass-thru certificates:
floater:
Series 2005-F10A Class C, 0.5358% 4/15/17 (a)(e)	1,020		938
Series 2005-FL11:
Class C, 0.5658% 11/15/17 (a)(e)	968		919
Class D, 0.6058% 11/15/17 (a)(e)	51		47
Class E, 0.6558% 11/15/17 (a)(e)	179		164
sequential payer:
Series 2005-C6 Class A2, 4.999% 6/10/44 (e)	13		13
Series 2006-C8 Class A3, 5.31% 12/10/46	3,613		3,754
Series 2007-C9 Class A4, 5.8148% 12/10/49 (e)	2,805		3,065
Series 2006-C8 Class B, 5.44% 12/10/46	2,196		1,451
Credit Suisse Commercial Mortgage Trust:
sequential payer:
Series 2006-C4 Class A3, 5.467% 9/15/39	6,558		7,013
Series 2007-C2 Class A3, 5.542% 1/15/49 (e)	2,536		2,664
Series 2007-C3 Class A4, 5.7203% 6/15/39 (e)	10,213		10,873
Series 2006-C4 Class AAB, 5.439% 9/15/39	7,217		7,555
Series 2007-C5 Class A4, 5.695% 9/15/40 (e)	1,148		1,209
Credit Suisse First Boston Mortgage Capital Certificates floater Series 2007-TF2A Class B, 0.6158% 4/15/22 (a)(e)	4,524		3,529
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer Series 2004-C1:
Class A3, 4.321% 1/15/37	213		216
Class A4, 4.75% 1/15/37	590		621
Series 2006-C1 Class A3, 5.5457% 2/15/39 (e)	6,695		7,082
Credit Suisse Mortgage Capital Certificates:
floater Series 2007-TFL1 Class B, 0.4158% 2/15/22 (a)(e)	480		432
Series 2007-C1 Class B, 5.487% 2/15/40 (a)(e)	1,938		291
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1:
Class D, 6.484% 3/15/33	452		452
Class G, 6.936% 3/15/33 (a)	834		837
GE Capital Commercial Mortgage Corp. sequential payer Series 2007-C1 Class A4, 5.543% 12/10/49	13,264		13,978
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Greenwich Capital Commercial Funding Corp.:
floater Series 2006-FL4 Class B, 0.453% 11/5/21 (a)(e)	$ 477		$ 451
sequential payer:
Series 2007-GG11 Class A2, 5.597% 12/10/49	2,536		2,657
Series 2007-GG9 Class A4, 5.444% 3/10/39	3,687		3,939
Series 2006-GG7:
Class A3, 5.8829% 7/10/38 (e)	3,342		3,526
Class A4, 5.8829% 7/10/38 (e)	10,980		12,059
GS Mortgage Securities Corp. II:
floater Series 2006-FL8A:
Class C, 0.503% 6/6/20 (a)(e)	64		61
Class D, 0.543% 6/6/20 (a)(e)	302		278
Class E, 0.633% 6/6/20 (a)(e)	351		316
sequential payer Series 2004-GG2 Class A4, 4.964% 8/10/38	393		398
GS Mortgage Securities Trust sequential payer Series 2007-GG10:
Class A1, 5.69% 8/10/45	35		36
Class A2, 5.778% 8/10/45	604		619
Class A4, 5.8075% 8/10/45 (e)	603		644
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class B, 0.4358% 11/15/18 (a)(e)	825		775
Class C, 0.4758% 11/15/18 (a)(e)	586		551
Class D, 0.4958% 11/15/18 (a)(e)	34		32
Class E, 0.5458% 11/15/18 (a)(e)	51		45
Class F, 0.5958% 11/15/18 (a)(e)	76		66
Class G, 0.6258% 11/15/18 (a)(e)	67		56
Class H, 0.7658% 11/15/18 (a)(e)	51		41
sequential payer:
Series 2006-CB14 Class A3B, 5.4864% 12/12/44 (e)	3,771		3,941
Series 2006-LDP8 Class A4, 5.399% 5/15/45	808		869
Series 2006-LDP9:
Class A2, 5.134% 5/15/47 (e)	602		623
Class A3, 5.336% 5/15/47	529		562
Series 2007-CB19 Class A4, 5.7447% 2/12/49 (e)	17,057		18,371
Series 2007-LD11 Class A2, 5.8025% 6/15/49 (e)	3,560		3,684
Series 2007-LDP10 Class A1, 5.122% 1/15/49	20		20
Series 2007-LDPX Class A3, 5.412% 1/15/49	5,440		5,782
Series 2005-CB13 Class E, 5.3502% 1/12/43 (a)(e)	642		66
Series 2006-CB17 Class A3, 5.45% 12/12/43	361		374
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
JPMorgan Chase Commercial Mortgage Securities Trust: - continued
Series 2007-CB19:
Class B, 5.7447% 2/12/49 (e)	$ 108		$ 64
Class C, 5.7447% 2/12/49 (e)	283		145
Class D, 5.7447% 2/12/49 (e)	298		139
Series 2007-LDP10 Class ES, 5.5411% 1/15/49 (a)(e)	656		167
JPMorgan Commercial Mortgage Finance Corp. Series 2000-C9 Class G, 6.25% 10/15/32 (a)	429		429
LB Commercial Conduit Mortgage Trust:
sequential payer Series 2007-C3 Class A4, 5.948% 7/15/44 (e)	3,327		3,590
Series 1998-C1 Class D, 6.98% 2/18/30	379		380
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2001-C2 Class A2, 6.653% 11/15/27	11		11
Series 2006-C1 Class A2, 5.084% 2/15/31	321		322
Series 2006-C6 Class A1, 5.23% 9/15/39	109		109
Series 2006-C7:
Class A1, 5.279% 11/15/38	411		415
Class A3, 5.347% 11/15/38	945		1,012
Series 2007-C1:
Class A1, 5.391% 2/15/40 (e)	62		63
Class A3, 5.398% 2/15/40	5,000		5,170
Class A4, 5.424% 2/15/40	1,163		1,248
Series 2007-C2 Class A3, 5.43% 2/15/40	611		652
Series 2007-C6 Class A4, 5.858% 7/15/40 (e)	1,584		1,710
Series 2007-C7 Class A3, 5.866% 9/15/45	4,146		4,474
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class D, 0.4958% 9/15/21 (a)(e)	406		365
Class E, 0.5558% 9/15/21 (a)(e)	1,465		1,290
Merrill Lynch Mortgage Trust:
Series 2005-CKI1 Class A3, 5.2412% 11/12/37 (e)	2,082		2,122
Series 2005-LC1 Class F, 5.3853% 1/12/44 (a)(e)	1,103		563
Series 2006-C1 Class A2, 5.6109% 5/12/39 (e)	1,499		1,545
Series 2007-C1 Class A4, 5.8261% 6/12/50 (e)	4,800		5,211
Series 2008-C1 Class A4, 5.69% 2/12/51	2,707		2,899
Merrill Lynch-CFC Commercial Mortgage Trust:
floater Series 2006-4 Class A2FL, 0.3813% 12/12/49 (e)	578		564
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Merrill Lynch-CFC Commercial Mortgage Trust: - continued
sequential payer:
Series 2006-1 CLass A3, 5.4839% 2/12/39 (e)	$ 1,349		$ 1,402
Series 2006-4 Class ASB, 5.133% 12/12/49 (e)	1,090		1,158
Series 2007-5:
Class A3, 5.364% 8/12/48	495		509
Class A4, 5.378% 8/12/48	51		54
Class B, 5.479% 2/12/17	3,804		1,671
Series 2007-6:
Class A1, 5.175% 3/12/51	43		43
Class A4, 5.485% 3/12/51 (e)	2,000		2,100
Series 2007-7 Class A4, 5.7439% 6/12/50 (e)	4,438		4,721
Series 2007-8 Class A1, 4.622% 8/12/49	121		122
Series 2007-6 Class B, 5.635% 3/12/51 (e)	1,268		621
Series 2007-7 Class B, 5.75% 6/12/50	110		25
Series 2007-8 Class A3, 5.9645% 8/12/49 (e)	1,094		1,185
Morgan Stanley Capital I Trust:
floater Series 2007-XLFA:
Class C, 0.426% 10/15/20 (a)(e)	728		612
Class MHRO, 0.956% 10/15/20 (a)(e)	171		55
Class MJPM, 1.266% 10/15/20 (a)(e)	9		7
Class MSTR, 0.966% 10/15/20 (a)(e)	95		30
Class NHRO, 1.156% 10/15/20 (a)(e)	263		58
Class NSTR, 1.116% 10/15/20 (a)(e)	87		19
sequential payer:
Series 2005-IQ9 Class A3, 4.54% 7/15/56	1,883		1,932
Series 2006-T23 Class A1, 5.682% 8/12/41	170		170
Series 2007-HQ11:
Class A1, 5.246% 2/12/44	54		55
Class A31, 5.439% 2/12/44 (e)	642		667
Series 2007-IQ13:
Class A1, 5.05% 3/15/44	118		119
Class A4, 5.364% 3/15/44	5,000		5,219
Series 2007-IQ14 Class A1, 5.38% 4/15/49	215		219
Series 2006-IQ11:
Class A3, 5.6957% 10/15/42 (e)	1,995		2,072
Class A4, 5.7317% 10/15/42 (e)	380		416
Series 2006-IQ12 Class B, 5.468% 12/15/43	1,268		824
Series 2006-T23 Class A3, 5.803% 8/12/41 (e)	647		691
Series 2007-HQ11 Class B, 5.538% 2/20/44 (e)	2,299		1,724
Series 2007-IQ14 Class A4, 5.692% 4/15/49 (e)	1,902		2,015
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Structured Asset Securities Corp. Series 1997-LLI Class D, 7.15% 10/12/34	$ 116		$ 119
TrizecHahn Office Properties Trust Series 2001-TZHA Class C4, 6.893% 5/15/16 (a)	789		795
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2006-WL7A Class E, 0.544% 9/15/21 (a)(e)	252		196
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (a)(e)	17		12
Class AP2, 1.0658% 6/15/20 (a)(e)	30		19
Class F, 0.7458% 6/15/20 (a)(e)	583		379
Class LXR1, 0.9658% 6/15/20 (a)(e)	156		131
Class LXR2, 1.0658% 6/15/20 (a)(e)	398		314
sequential payer:
Series 2003-C7 Class A1, 4.241% 10/15/35 (a)	1,613		1,624
Series 2003-C8 Class A3, 4.445% 11/15/35	5,522		5,597
Series 2006-C24 Class A2, 5.506% 3/15/45	26		26
Series 2006-C29 Class A3, 5.313% 11/15/48	3,368		3,522
Series 2007-C30:
Class A1, 5.031% 12/15/43	6		6
Class A3, 5.246% 12/15/43	1,089		1,120
Class A4, 5.305% 12/15/43	373		381
Class A5, 5.342% 12/15/43	1,357		1,416
Series 2007-C31:
Class A1, 5.14% 4/15/47	4		4
Class A4, 5.509% 4/15/47	7,866		8,282
Series 2007-C32:
Class A2, 5.7406% 6/15/49 (e)	9,622		10,029
Class A3, 5.7456% 6/15/49 (e)	7,152		7,624
Series 2003-C6 Class G, 5.125% 8/15/35 (a)(e)	602		595
Series 2004-C15:
Class 180A, 5.5782% 10/15/41 (a)(e)	975		936
Class 180B, 5.5782% 10/15/41 (a)(e)	444		417
Series 2005-C19 Class B, 4.892% 5/15/44	1,268		1,172
Series 2005-C22:
Class B, 5.3619% 12/15/44 (e)	2,812		2,515
Class F, 5.3619% 12/15/44 (a)(e)	2,115		1,197
Series 2006-C23 Class A5, 5.416% 1/15/45 (e)	7,395		7,891
Series 2006-C25 Class AM, 5.738% 5/15/43 (e)	664		696
Series 2006-C29 Class E, 5.516% 11/15/48 (e)	1,268		684
Series 2007-C30 Class C, 5.483% 12/15/43 (e)	3,804		1,969
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust: - continued
Series 2007-C31 Class C, 5.6933% 4/15/47 (e)	$ 348		$ 179
Wachovia Bank Commercial Mortgage Trust pass-thru certificates sequential payer Series 2007-C33 Class A5, 5.8994% 2/15/51 (e)	839		905
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $253,285)		345,931
Municipal Securities - 0.4%
California Gen. Oblig.:
5.25% 4/1/14	5,000		5,219
7.55% 4/1/39	15,000		16,186
Illinois Gen. Oblig.:
Series 2010, 4.421% 1/1/15	7,460		7,437
4.511% 3/1/15 (c)	1,590		1,590
4.961% 3/1/16 (c)	2,830		2,833
5.365% 3/1/17 (c)	1,875		1,879
5.665% 3/1/18 (c)	3,500		3,507
5.877% 3/1/19 (c)	3,500		3,509
Univ. of California Revs. Series 2009 R, 5.77% 5/15/43	1,000		959
TOTAL MUNICIPAL SECURITIES (Cost $42,242)		43,119
Foreign Government and Government Agency Obligations - 1.1%
Bank of Nova Scotia:
2.05% 10/7/15	4,000		3,901
4.375% 1/13/21	1,000		996
Brazilian Federative Republic:
4.875% 1/22/21	4,045		4,106
5.625% 1/7/41	13,000		12,740
Canadian Government 2.375% 9/10/14	3,000		3,085
Chilean Republic 7.125% 1/11/12	3,016		3,173
Italian Republic:
2.125% 10/5/12	2,000		2,019
3.125% 1/26/15	16,000		16,024
Ontario Province:
1.375% 1/27/14	2,000		1,992
4% 10/7/19	15,000		15,319
4.1% 6/16/14	15,000		16,144
Foreign Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
Quebec Province 3.5% 7/29/20	$ 20,000		$ 19,347
United Mexican States:
5.125% 1/15/20	15,000		15,735
6.05% 1/11/40	6,000		6,150
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $118,551)		120,731
Supranational Obligations - 1.3%
African Development Bank:
1.75% 10/1/12	1,000		1,016
euro 3% 5/27/14	5,000		5,227
Asian Development Bank 2.75% 5/21/14	30,000		31,113
Corporacion Andina de Fomento:
5.2% 5/21/13	240		255
6.875% 3/15/12	390		408
8.125% 6/4/19	2,000		2,401
European Bank for Reconstruction and Development 1.25% 6/10/11	1,500		1,505
European Investment Bank:
1.625% 3/15/13	3,000		3,043
1.75% 9/14/12	4,000		4,069
2.875% 1/15/15	5,000		5,184
3.125% 6/4/14	72,000		75,597
Inter-American Development Bank:
euro 1.75% 10/22/12	5,000		5,084
3.875% 9/17/19	5,000		5,172
International Bank for Reconstruction & Development 1.75% 7/15/13	4,000		4,067
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $137,665)		144,141

Preferred Securities - 0.0%
	Principal Amount (000s)		Value (000s)
FINANCIALS - 0.0%
Diversified Financial Services - 0.0%
ING Groep NV 5.775% (e)	$ 1,042		$ 941
MUFG Capital Finance 1 Ltd. 6.346% (e)	1,725		1,776
			2,717
TOTAL PREFERRED SECURITIES (Cost $1,549)		2,717
Cash Equivalents - 5.7%
	Maturity Amount (000s)
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $620,677)	$ 620,681		620,677
TOTAL INVESTMENT PORTFOLIO - 105.1% (Cost $11,092,761)			11,496,310
NET OTHER ASSETS (LIABILITIES) - (5.1)%			(557,191)
NET ASSETS - 100%		$ 10,939,119

Legend

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $48,620,000 or 0.4% of net assets.

(b) Under the Temporary Liquidity Guarantee Program, the Federal Deposit Insurance Corporation guarantees principal and interest in the event of payment default or bankruptcy until the earlier of maturity date of the debt or until June 30, 2012. At the end of the period these securities amounted to $169,948,000 or 1.5% of net assets.

(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(d) A portion of the security is subject to a forward commitment to sell.

(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(f) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$620,677,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 51,873
Bank of America NA	46,109
Barclays Capital, Inc.	25,677
Credit Agricole Securities (USA), Inc.	23,055
Deutsche Bank Securities, Inc.	26,454
Goldman, Sachs & Co.	5,764
HSBC Securities (USA), Inc.	69,166
ING Financial Markets LLC	42,651
J.P. Morgan Securities, Inc.	69,164
Merrill Lynch Government Securities, Inc.	20,749
Merrill Lynch, Pierce, Fenner & Smith, Inc.	31,831
Mizuho Securities USA, Inc.	126,801
RBC Capital Markets Corp.	5,764
Societe Generale, New York Branch	46,109
Wells Fargo Securities LLC	29,510
	$ 620,677

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 2,096,976	$ -	$ 2,096,976	$ -
U.S. Government and Government Agency Obligations	4,576,890	-	4,576,890	-
U.S. Government Agency - Mortgage Securities	3,490,145	-	3,490,145	-
Asset-Backed Securities	43,010	-	42,009	1,001
Collateralized Mortgage Obligations	11,973	-	11,973	-
Commercial Mortgage Securities	345,931	-	335,941	9,990
Municipal Securities	43,119	-	43,119	-
Foreign Government and Government Agency Obligations	120,731	-	120,731	-
Supranational Obligations	144,141	-	144,141	-
Preferred Securities	2,717	-	2,717	-
Cash Equivalents	620,677	-	620,677	-
Total Investments in Securities:	$ 11,496,310	$ -	$ 11,485,319	$ 10,991
Other Financial Instruments
Forward Commitments	$ (16)	$ -	$ (16)	$ -

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 12,562
Total Realized Gain (Loss)	130
Total Unrealized Gain (Loss)	4,082
Cost of Purchases	-
Proceeds of Sales	(4,970)
Amortization/Accretion	485
Transfers in to Level 3	3,739
Transfers out of Level 3	(5,037)
Ending Balance	$ 10,991
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 3,627

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $620,677) - See accompanying schedule: Unaffiliated issuers (cost $11,092,761)		$ 11,496,310
Commitment to sell securities on a delayed delivery basis	$ (2,125)
Receivable for securities sold on a delayed delivery basis	2,109	(16)
Receivable for investments sold, regular delivery		123,564
Receivable for fund shares sold		33,710
Interest receivable		67,222
Other receivables		40
Total assets		11,720,830
Liabilities
Payable for investments purchased Regular delivery	$ 219,922
Delayed delivery	537,535
Payable for fund shares redeemed	21,501
Distributions payable	523
Accrued management fee	451
Other affiliated payables	1,739
Other payables and accrued expenses	40
Total liabilities		781,711
Net Assets		$ 10,939,119
Net Assets consist of:
Paid in capital		$ 10,610,258
Undistributed net investment income		10,916
Accumulated undistributed net realized gain (loss) on investments		(85,588)
Net unrealized appreciation (depreciation) on investments		403,533
Net Assets		$ 10,939,119

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

Semiannual Report

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
U.S. Bond Index: Net Asset Value, offering price and redemption price per share ($10,480,009 ÷ 925,756 shares)		$ 11.32
Class F: Net Asset Value, offering price and redemption price per share ($459,110 ÷ 40,560 shares)		$ 11.32

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 85
Interest		184,578
Total income		184,663
Expenses
Management fee	$ 10,806
Transfer agent fees	7,831
Independent trustees' compensation	22
Miscellaneous	21
Total expenses before reductions	18,680
Expense reductions	(1,402)	17,278
Net investment income (loss)		167,385
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		46,922
Change in net unrealized appreciation (depreciation) on: Investment securities	(320,498)
Delayed delivery commitments	129
Total change in net unrealized appreciation (depreciation)		(320,369)
Net gain (loss)		(273,447)
Net increase (decrease) in net assets resulting from operations		$ (106,062)

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

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 167,385	$ 352,833
Net realized gain (loss)	46,922	152,062
Change in net unrealized appreciation (depreciation)	(320,369)	417,036
Net increase (decrease) in net assets resulting from operations	(106,062)	921,931
Distributions to shareholders from net investment income	(162,274)	(346,700)
Distributions to shareholders from net realized gain	(75,325)	-
Total distributions	(237,599)	(346,700)
Share transactions - net increase (decrease)	(169,052)	595,550
Total increase (decrease) in net assets	(512,713)	1,170,781
Net Assets
Beginning of period	11,451,832	10,281,051
End of period (including undistributed net investment income of $10,916 and undistributed net investment income of $5,805, respectively)	$ 10,939,119	$ 11,451,832

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

Semiannual Report

Financial Highlights - U.S. Bond Index

	Six months ended February 28, 2011
	(Unaudited)	2010	2009	2008	2007	2006 F	2006 J
Selected Per-Share Data
Net asset value, beginning of period	$ 11.67	$ 11.05	$ 10.73	$ 10.76	$ 10.82	$ 10.87	$ 11.08
Income from Investment Operations
Net investment income (loss) D	.170	.373	.445	.503	.537	.266	.473
Net realized and unrealized gain (loss)	(.279)	.613	.325	(.012)	(.078)	(.067)	(.183)
Total from investment operations	(.109)	.986	.770	.491	.459	.199	.290
Distributions from net investment income	(.165)	(.366)	(.450)	(.521)	(.519)	(.249)	(.460)
Distributions from net realized gain	(.076)	-	-	-	-	-	(.040)
Total distributions	(.241)	(.366)	(.450)	(.521)	(.519)	(.249)	(.500)
Net asset value, end of period	$ 11.32	$ 11.67	$ 11.05	$ 10.73	$ 10.76	$ 10.82	$ 10.87
Total Return B, C	(.94)%	9.10%	7.39%	4.61%	4.31%	1.89%	2.67%
Ratios to Average Net Assets E,G
Expenses before reductions	.34% A	.36%	.45%	.48%	.49%	.50% A	.51%
Expenses net of fee waivers, if any	.31% A	.32%	.32%	.32%	.32%	.32% A	.32%
Expenses net of all reductions	.31% A	.32%	.32%	.32%	.31%	.31% A	.31%
Net investment income (loss)	3.00% A	3.32%	4.16%	4.64%	4.96%	4.94% A	4.31%
Supplemental Data
Net assets, end of period (in millions)	$ 10,480	$ 11,355	$ 10,281	$ 8,954	$ 7,687	$ 6,129	$ 5,784
Portfolio turnover rate I	127% A	165%	231% H	151%	174% H	82% A	108%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns would have been lower had certain expenses not been reduced during the periods shown. ^D Calculated based on average shares outstanding during the period. ^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^F For the six month period ended August 31. The Fund changed its fiscal year from February 28 to August 31, effective August 31, 2006. ^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^H The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. ^I Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^J For the period ended February 28.

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

Semiannual Report

Financial Highlights - Class F

	Six months ended February 28, 2011
	(Unaudited)	2010 E
Selected Per-Share Data
Net asset value, beginning of period	$ 11.67	$ 11.12
Income from Investment Operations
Net investment income (loss) D	.174	.359
Net realized and unrealized gain (loss)	(.276)	.542
Total from investment operations	(.102)	.901
Distributions from net investment income	(.172)	(.351)
Distributions from net realized gain	(.076)	-
Total distributions	(.248)	(.351)
Net asset value, end of period	$ 11.32	$ 11.67
Total Return B, C	(.88)%	8.26%
Ratios to Average Net Assets F
Expenses before reductions	.19% A	.22% A
Expenses net of fee waivers, if any	.19% A	.22% A
Expenses net of all reductions	.19% A	.22% A
Net investment income (loss)	3.12% A	3.42% A
Supplemental Data
Net assets, end of period (in millions)	$ 459	$ 97
Portfolio turnover rate	127% A	165%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E For the period September 24, 2009 (commencement of sale of shares) to August 31, 2010.

^F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity U.S. Bond Index Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.

The Fund offers U.S. Bond Index and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

In January 2011, the Board of Trustees of the Fund approved the creation of additional classes of shares. The Fund will commence sale of shares of Fidelity Advantage Class, Fidelity Institutional Class and Fidelity Institutional Advantage Class in May 2011. In March 2011, the Board of Trustees approved a change in the name of Fidelity U.S. Bond Index Fund to Spartan U.S. Bond Index Fund effective April 2011.

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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Security Valuation - continued

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011 for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, municipal securities, preferred securities, supranational obligations and U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally

Semiannual Report

2. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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 identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to swap agreements, prior period premium and discount on debt securities, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 378,000
Gross unrealized depreciation	(61,809)
Net unrealized appreciation (depreciation) on securities and other investments	$ 316,191
Tax cost	$ 11,180,119

3. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Semiannual Report

3. Operating Policies - continued

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $326,478 and $237,540, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. Effective February 1, 2011, an amendment to the management contract was approved by the Board of Trustees reducing the management fee from .22% to .05% of the Fund's average net assets. Under the management contract, FMR pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. For the period, the total annual management fee rate was .19% of average net assets.

Effective February 1, 2011, the Board of Trustees approved a new expense contract for U.S. Bond Index limiting the total expenses of the class to .22%, with certain exceptions.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. Effective February 1, 2011, U.S. Bond Index pays transfer agent fees at an annual rate of .17% of average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Prior to February 1, 2011, FIIOC received account fees and asset-based fees that varied according to account size and type of account of the shareholders of U.S. Bond Index.

FIIOC receives no fees for providing transfer agency services to Class F.

For the period, the total transfer agent fees paid by each applicable class were as follows:

	Amount	% of Average Net Assets*
U.S. Bond Index	$ 7,831	.14

* Annualized

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

6. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $21 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

7. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $45.

8. Expense Reductions.

Prior to February 1, 2011, FMR had contractually agreed to waive expenses of U.S. Bond Index to the extent annual operating expenses exceeded .32% of average net assets, with certain exceptions. During the period this waiver reduced U.S. Bond Index's expenses by $1,402.

Semiannual Report

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net investment income
U.S. Bond Index	$ 158,374	$ 345,387
Class F	3,900	1,313
Total	$ 162,274	$ 346,700
From net realized gain
U.S. Bond Index	$ 73,706	$ -
Class F	1,619	-
Total	$ 75,325	$ -

^A Distributions for Class F are for the period September 24, 2009 (commencement of sale of shares) to August 31, 2010.

10. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010 A	Six months ended February 28, 2011	Year ended August 31, 2010 A
U.S. Bond Index
Shares sold	136,166	374,729	$ 1,560,536	$ 4,216,268
Reinvestment of distributions	19,804	29,929	227,204	337,209
Shares redeemed	(203,477)	(361,514)	(2,324,669)	(4,051,189)
Net increase (decrease)	(47,507)	43,144	$ (536,929)	$ 502,288
Class F
Shares sold	32,756	9,818	$ 373,740	$ 110,320
Reinvestment of distributions	482	115	5,519	1,313
Shares redeemed	(996)	(1,615)	(11,382)	(18,371)
Net increase (decrease)	32,242	8,318	$ 367,877	$ 93,262

^A Share transactions for Class F are for the period September 24, 2009 (commencement of sale of shares) to August 31,2010.

11. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

11. Other - continued

exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity U.S. Bond Index Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Semiannual Report

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for the retail class, as well as the fund's relative investment performance for the retail class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the cumulative total returns of the retail class of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. (Class F of the fund had less than one year of performance as of December 31, 2009.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the retail class of the fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity U.S. Bond Index Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the fourth quartile for the one-year period, the third quartile for the three-year period, and the second quartile for the five-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the one-year cumulative total return of the retail class compared favorably to its benchmark. The Board considered that the performance of the fund and benchmark may vary due to valuation differences or due to fees and transaction costs, which apply to the fund but not to the benchmark. The Board discussed with FMR actions that have been taken by FMR to improve the fund's more recent disappointing performance relative to its peer group. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Semiannual Report

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and is narrower than the Lipper peer group used by the Board for performance comparisons. The Board considered that, for the 2006 through 2009 management fee comparisons shown in the chart below, FMR created a mapped group comprising only those funds that Lipper identifies as "pure index" funds, and that FMR considers this smaller universe of funds to be a more meaningful comparison than a universe comprising primarily actively managed funds. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 48% means that 52% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board. For a more meaningful comparison of management fees, the fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for "fund-level" non-management expenses (including pricing and bookkeeping fees and fees paid to non-affiliated custodians) from the fund's management fee. In this regard, the Board realizes that net management fees can vary from year to year because of differences in "fund level" non-management expenses. The Board noted, however, that FMR does not pay transfer agent fees or other "class-level" expenses under the fund's management contract.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity U.S. Bond Index Fund

The Board noted that the fund's hypothetical net management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2009) to the fund's management contract that reduced the fund's management fee rate from 32 basis points to 22 basis points. The Board considered that the chart reflects the fund's lower management fee for 2009, as if the lower rate were in effect for the entire year.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's hypothetical net management fee as well as the fund's gross management fee. The Board also considered other "fund-level" expenses, such as pricing and bookkeeping fees and custodial, legal, and audit fees. The Board also considered other "class-level" expenses, such as transfer agent fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

Semiannual Report

The Board noted that the total expenses of each class ranked above its competitive median for the period.

The Board considered that FMR contractually caps total expenses for the retail class of the fund at 32 basis points. The fees and expenses payable under this contractual arrangement may not be increased without the approval of the Board.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable, although in all cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Semiannual Report

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments
Money Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA 

Fidelity Service Company, Inc.

Boston, MA 

Custodian

The Bank of New York Mellon

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

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UBI-USAN-0411
1.790948.107

Fidelity ®
U.S. Bond Index
Fund
(To be renamed Spartan® U.S. Bond Index Fund effective April 28, 2011)

Class F

Semiannual Report

February 28, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.

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 FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2010 to February 28, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Annualized Expense Ratio	Beginning Account Value September 1, 2010	Ending Account Value February 28, 2011	Expenses Paid During Period* September 1, 2010 to February 28, 2011
U.S. Bond Index	.31%
Actual		$ 1,000.00	$ 990.60	$ 1.53**
HypotheticalA		$ 1,000.00	$ 1,023.26	$ 1.56**
Class F	.19%
Actual		$ 1,000.00	$ 991.20	$ .94**
HypotheticalA		$ 1,000.00	$ 1,023.85	$ .95**

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Semiannual Report

Shareholder Expense Example - continued

** If fees and changes to U.S. Bond Index's contractual expenses effective February 1, 2011, had been in effect during the entire period, the annualized expense ratio and the expenses paid in the actual and hypothetical examples above would have been as follows:

	Annualized Expense Ratio	Expenses Paid
U.S. Bond Index
Actual	.22%	$ 1.09
HypotheticalA		$ 1.10
Class F
Actual	.05%	$ .25
HypotheticalA		$ .25

^A 5% return per year before expenses

Semiannual Report

Investment Changes (Unaudited)

Quality Diversification (% of fund's net assets)
As of February 28, 2011		As of August 31, 2010
	U.S. Government and U.S. Government Agency Obligations † 73.7%		U.S. Government and U.S. Government Agency Obligations † 73.6%
	AAA 4.3%		AAA 5.2%
	AA 4.8%		AA 3.5%
	A 8.2%		A 7.9%
	BBB 8.0%		BBB 7.4%
	BB and Below 0.3%		BB and Below 0.2%
	Not Rated 0.1%		Not Rated 0.0%
	Short-Term Investments and Net Other Assets 0.6%		Short-Term Investments and Net Other Assets 2.2%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent changes. Securities rated BB or below were rated investment grade at the time of acquisition.

Weighted Average Maturity as of February 28, 2011
		6 months ago
Years	6.2	5.5

This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and markets changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

Duration as of February 28, 2011
		6 months ago
Years	4.7	4.1

Duration estimates how much a bond fund's price will change with a change in comparable interest rates. If rates rise 1%, for example, a fund with a 5-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. Duration takes into account any call or put option embedded in the bonds.

Asset Allocation (% of fund's net assets)
As of February 28, 2011*			As of August 31, 2010**
	Corporate Bonds 19.2%			Corporate Bonds 17.5%
	U.S. Government and U.S. Government Agency Obligations † 73.7%			U.S. Government and U.S. Government Agency Obligations † 73.6%
	Asset-Backed Securities 0.4%			Asset-Backed Securities 0.4%
	CMOs and Other Mortgage Related Securities 3.3%			CMOs and Other Mortgage Related Securities 3.6%
	Municipal Bonds 0.4%			Municipal Bonds 0.3%
	Other Investments 2.4%			Other Investments 2.4%
	Short-Term Investments and Net Other Assets 0.6%			Short-Term Investments and Net Other Assets 2.2%
* Foreign investments		6.3%	** Foreign investments		5.6%

^† Includes FDIC Guaranteed Corporate Securities.

Semiannual Report

Investments February 28, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 19.2%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.5%
Auto Components - 0.1%
DaimlerChrysler NA Holding Corp.:
5.75% 9/8/11	$ 5,542		$ 5,687
5.875% 3/15/11	2,058		2,062
			7,749
Hotels, Restaurants & Leisure - 0.1%
McDonald's Corp.:
5.35% 3/1/18	2,317		2,587
6.3% 3/1/38	7,045		8,162
Yum! Brands, Inc.:
4.25% 9/15/15	2,000		2,102
5.3% 9/15/19	2,000		2,127
			14,978
Household Durables - 0.1%
Fortune Brands, Inc. 5.875% 1/15/36	10,000		8,842
Media - 0.9%
AOL Time Warner, Inc. 7.625% 4/15/31	3,250		3,840
Comcast Corp.:
4.95% 6/15/16	1,862		1,989
5.5% 3/15/11	378		379
5.7% 5/15/18	2,940		3,214
5.7% 7/1/19	8,500		9,252
6.4% 3/1/40	1,000		1,040
6.55% 7/1/39	3,000		3,180
COX Communications, Inc. 4.625% 6/1/13	4,425		4,725
NBC Universal, Inc. 6.4% 4/30/40 (a)	3,000		3,134
News America Holdings, Inc. 7.75% 12/1/45	3,160		3,807
News America, Inc.:
5.3% 12/15/14	868		961
5.65% 8/15/20	1,000		1,097
6.15% 3/1/37	3,955		4,006
6.9% 3/1/19	2,110		2,481
6.9% 8/15/39	2,000		2,238
Thomson Reuters Corp. 4.7% 10/15/19	4,000		4,203
Time Warner Cable, Inc.:
5.4% 7/2/12	2,421		2,554
5.85% 5/1/17	5,801		6,387
6.2% 7/1/13	2,302		2,541
6.75% 7/1/18	1,162		1,334
7.3% 7/1/38	4,000		4,506
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - continued
Media - continued
Time Warner Cable, Inc.: - continued
8.75% 2/14/19	$ 2,368		$ 2,987
Time Warner, Inc.:
3.15% 7/15/15	5,000		5,077
5.875% 11/15/16	2,131		2,384
6.5% 11/15/36	5,724		6,025
Viacom, Inc.:
4.375% 9/15/14	2,000		2,139
5.625% 9/15/19	1,000		1,095
6.125% 10/5/17	5,420		6,130
6.75% 10/5/37	1,865		2,065
Walt Disney Co. 5.5% 3/15/19	2,000		2,244
			97,014
Multiline Retail - 0.0%
Target Corp. 3.875% 7/15/20	3,000		2,962
Specialty Retail - 0.3%
Home Depot, Inc.:
5.4% 3/1/16	6,400		7,126
5.875% 12/16/36	4,700		4,765
Lowe's Companies, Inc.:
4.625% 4/15/20	2,000		2,096
5.8% 4/15/40	2,000		2,104
Staples, Inc. 9.75% 1/15/14	10,000		12,080
			28,171
TOTAL CONSUMER DISCRETIONARY			159,716
CONSUMER STAPLES - 1.6%
Beverages - 0.4%
Anheuser-Busch Companies, Inc. 6.45% 9/1/37	2,073		2,359
Anheuser-Busch InBev Worldwide, Inc.:
4.125% 1/15/15	5,700		6,059
5.375% 1/15/20	1,500		1,625
Diageo Capital PLC:
5.2% 1/30/13	1,028		1,105
5.75% 10/23/17	5,185		5,837
PepsiCo, Inc.:
3.1% 1/15/15	10,300		10,670
4.875% 11/1/40	2,300		2,152
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Beverages - continued
PepsiCo, Inc.: - continued
7.9% 11/1/18	$ 6,000		$ 7,606
The Coca-Cola Co.:
1.5% 11/15/15	3,770		3,607
3.15% 11/15/20	3,700		3,449
			44,469
Food & Staples Retailing - 0.3%
CVS Caremark Corp.:
6.125% 9/15/39	1,000		1,038
6.302% 6/1/37 (e)	5,809		5,722
Kroger Co. 3.9% 10/1/15	9,000		9,352
Safeway, Inc. 5% 8/15/19	1,000		1,026
Wal-Mart Stores, Inc.:
3.2% 5/15/14	10,000		10,479
5.625% 4/1/40	2,000		2,084
6.5% 8/15/37	8,275		9,549
			39,250
Food Products - 0.4%
ConAgra Foods, Inc. 5.875% 4/15/14	4,000		4,393
General Mills, Inc. 5.65% 2/15/19	13,501		14,994
Kellogg Co. 4.45% 5/30/16	2,000		2,154
Kraft Foods, Inc.:
5.625% 11/1/11	467		482
6% 2/11/13	7,895		8,572
6.125% 2/1/18	5,497		6,177
6.75% 2/19/14	535		607
6.875% 2/1/38	3,250		3,646
			41,025
Household Products - 0.1%
Procter & Gamble Co.:
1.8% 11/15/15	5,000		4,893
3.15% 9/1/15	4,500		4,665
			9,558
Tobacco - 0.4%
Altria Group, Inc. 9.7% 11/10/18	6,065		7,984
Philip Morris International, Inc.:
4.5% 3/26/20	2,000		2,063
4.875% 5/16/13	8,937		9,621
5.65% 5/16/18	6,789		7,631
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
CONSUMER STAPLES - continued
Tobacco - continued
Philip Morris International, Inc.: - continued
6.375% 5/16/38	$ 1,450		$ 1,659
Reynolds American, Inc.:
6.75% 6/15/17	2,899		3,264
7.25% 6/15/37	7,220		7,660
			39,882
TOTAL CONSUMER STAPLES			174,184
ENERGY - 1.7%
Energy Equipment & Services - 0.2%
Baker Hughes, Inc. 5.125% 9/15/40	2,000		1,908
Halliburton Co.:
6.15% 9/15/19	2,000		2,293
7.45% 9/15/39	1,500		1,901
Noble Holding International Ltd.:
3.05% 3/1/16	1,020		1,014
4.625% 3/1/21	1,340		1,335
Rowan Companies, Inc. 7.875% 8/1/19	500		593
Weatherford International Ltd.:
4.95% 10/15/13	1,726		1,834
5.15% 3/15/13	2,255		2,382
7% 3/15/38	5,580		6,084
			19,344
Oil, Gas & Consumable Fuels - 1.5%
Anadarko Petroleum Co. 6.2% 3/15/40	2,000		1,958
Anadarko Petroleum Corp.:
5.75% 6/15/14	5,000		5,495
6.45% 9/15/36	2,675		2,695
Apache Corp. 5.1% 9/1/40	3,000		2,785
Boardwalk Pipelines LP 5.75% 9/15/19	1,000		1,075
Canadian Natural Resources Ltd.:
5.15% 2/1/13	4,456		4,759
5.7% 5/15/17	1,148		1,283
Cenovus Energy, Inc. 6.75% 11/15/39	2,000		2,276
ConocoPhillips:
4.6% 1/15/15	3,000		3,266
5.75% 2/1/19	2,902		3,288
6.5% 2/1/39	7,529		8,740
Devon Energy Corp. 5.625% 1/15/14	2,321		2,581
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
El Paso Natural Gas Co. 5.95% 4/15/17	$ 926		$ 1,009
Enbridge Energy Partners LP:
5.875% 12/15/16	1,000		1,119
6.5% 4/15/18	1,000		1,134
EnCana Holdings Finance Corp. 5.8% 5/1/14	2,861		3,181
Enterprise Products Operating LP:
4.6% 8/1/12	5,000		5,215
5.6% 10/15/14	1,937		2,148
5.65% 4/1/13	690		745
6.65% 4/15/18	2,000		2,295
7.55% 4/15/38	2,000		2,370
EOG Resources, Inc. 5.625% 6/1/19	1,000		1,101
EQT Corp. 8.125% 6/1/19	1,000		1,185
Kinder Morgan Energy Partners LP:
5% 12/15/13	5,000		5,434
6.55% 9/15/40	3,000		3,100
Magellan Midstream Partners LP 6.55% 7/15/19	4,592		5,242
Marathon Petroleum Corp.:
3.5% 3/1/16 (a)	1,000		1,005
5.125% 3/1/21 (a)	1,000		1,014
6.5% 3/1/41 (a)	1,000		1,013
Nexen, Inc.:
5.05% 11/20/13	3,809		4,062
5.2% 3/10/15	900		957
5.875% 3/10/35	3,710		3,375
Petro-Canada:
6.05% 5/15/18	3,650		4,141
6.8% 5/15/38	8,445		9,478
Petrobras International Finance Co. Ltd. 7.875% 3/15/19	12,228		14,420
Plains All American Pipeline LP/PAA Finance Corp.:
3.95% 9/15/15	2,000		2,056
5.75% 1/15/20	1,000		1,073
6.125% 1/15/17	1,795		2,000
6.65% 1/15/37	2,795		2,960
Shell International Finance BV 1.875% 3/25/13	7,000		7,141
Spectra Energy Capital, LLC 5.65% 3/1/20	2,000		2,117
StatoilHydro ASA:
2.9% 10/15/14	1,500		1,549
5.1% 8/17/40	2,000		1,926
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Suncor Energy, Inc.:
6.1% 6/1/18	$ 11,244		$ 12,793
6.85% 6/1/39	2,000		2,271
Talisman Energy, Inc. 5.85% 2/1/37	5,000		5,046
TransCanada PipeLines Ltd. 3.4% 6/1/15	1,000		1,025
Valero Energy Corp. 6.625% 6/15/37	3,620		3,699
XTO Energy, Inc.:
5% 1/31/15	1,733		1,923
5.65% 4/1/16	1,189		1,365
			163,888
TOTAL ENERGY			183,232
FINANCIALS - 7.4%
Capital Markets - 1.8%
Bear Stearns Companies, Inc. 5.3% 10/30/15	1,159		1,263
BlackRock, Inc. 6.25% 9/15/17	8,365		9,559
Goldman Sachs Group, Inc.:
3.625% 8/1/12	1,500		1,550
3.625% 2/7/16	5,000		4,993
3.7% 8/1/15	7,848		7,960
5.625% 1/15/17	7,000		7,418
6% 6/15/20	1,650		1,768
6.15% 4/1/18	1,951		2,137
6.25% 2/1/41	2,000		2,035
6.75% 10/1/37	24,510		25,122
JPMorgan Chase Capital XX 6.55% 9/29/36	14,550		14,951
Lazard Group LLC:
6.85% 6/15/17	3,804		4,052
7.125% 5/15/15	1,364		1,501
Merrill Lynch & Co., Inc.:
5.45% 2/5/13	10,924		11,639
6.4% 8/28/17	3,140		3,450
6.875% 4/25/18	6,991		7,864
Morgan Stanley:
2.875% 1/24/14	5,000		5,040
4.2% 11/20/14	7,250		7,528
4.75% 4/1/14	4,287		4,482
5.45% 1/9/17	236		249
5.625% 9/23/19	2,000		2,053
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Capital Markets - continued
Morgan Stanley: - continued
5.75% 1/25/21	$ 5,000		$ 5,136
5.95% 12/28/17	5,745		6,132
6% 5/13/14	3,242		3,547
6% 4/28/15	5,666		6,206
6.625% 4/1/18	5,055		5,588
7.3% 5/13/19	3,000		3,417
Northern Trust Corp. 5.5% 8/15/13	2,607		2,872
Royal Bank of Scotland PLC:
3.95% 9/21/15	6,500		6,480
4.875% 3/16/15	5,000		5,184
6.125% 1/11/21	3,700		3,759
State Street Corp. 4.3% 5/30/14	1,940		2,093
The Bank of New York, Inc.:
4.3% 5/15/14	9,828		10,597
5.45% 5/15/19	2,000		2,208
UBS AG Stamford Branch:
2.25% 1/28/14	1,300		1,294
3.875% 1/15/15	2,000		2,054
5.75% 4/25/18	1,700		1,848
5.875% 12/20/17	3,500		3,832
			198,861
Commercial Banks - 1.4%
American Express Bank FSB 6% 9/13/17	615		684
Bank of America NA:
5.3% 3/15/17	3,500		3,647
6% 10/15/36	2,419		2,360
Barclays Bank PLC:
3.9% 4/7/15	6,600		6,815
5.2% 7/10/14	2,000		2,162
BB&T Capital Trust IV 6.82% 6/12/77 (e)	3,510		3,570
Canadian Imperial Bank of Commerce 1.45% 9/13/13	1,000		997
Comerica, Inc. 3% 9/16/15	1,268		1,263
Credit Suisse New York Branch:
2.2% 1/14/14	7,948		7,981
6% 2/15/18	15,651		16,712
Export-Import Bank of Korea 5.5% 10/17/12	2,235		2,360
Fifth Third Bancorp:
3.625% 1/25/16	2,000		2,008
4.5% 6/1/18	824		804
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Fifth Third Bancorp: - continued
8.25% 3/1/38	$ 2,079		$ 2,506
Fifth Third Bank 4.75% 2/1/15	3,422		3,585
HSBC Holdings PLC 6.5% 9/15/37	10,000		10,367
JPMorgan Chase Bank 6% 10/1/17	7,075		7,798
KeyBank NA 5.8% 7/1/14	1,109		1,213
KeyCorp. 3.75% 8/13/15	7,000		7,088
PNC Funding Corp. 6.7% 6/10/19	2,500		2,910
Rabobank Nederland NV:
2.125% 10/13/15	1,000		966
4.5% 1/11/21	1,000		1,001
Regions Bank 7.5% 5/15/18	2,000		2,120
Royal Bank of Canada 2.625% 12/15/15	3,000		3,007
U.S. Bancorp 3.15% 3/4/15	5,000		5,110
UniCredit Luxembourg Finance SA 5.584% 1/13/17 (a)(e)	2,905		2,782
UnionBanCal Corp. 5.25% 12/16/13	656		706
Wachovia Bank NA:
4.875% 2/1/15	1,394		1,490
6.6% 1/15/38	10,000		11,293
Wachovia Corp.:
5.5% 5/1/13	14,000		15,184
5.625% 10/15/16	3,367		3,669
5.75% 6/15/17	2,905		3,240
Wells Fargo & Co. 5.625% 12/11/17	5,972		6,619
Westpac Banking Corp.:
1.85% 12/9/13	9,800		9,829
4.875% 11/19/19	3,700		3,856
			157,702
Consumer Finance - 1.0%
American Express Co.:
7.25% 5/20/14	1,500		1,715
8.15% 3/19/38	8,500		11,323
American Express Credit Corp. 2.75% 9/15/15	5,000		4,920
Capital One Bank USA NA 8.8% 7/15/19	2,020		2,550
Capital One Financial Corp.:
5.7% 9/15/11	2,000		2,053
7.375% 5/23/14	1,578		1,819
Caterpillar Financial Services Corp.:
2% 4/5/13	8,104		8,220
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Consumer Finance - continued
Caterpillar Financial Services Corp.: - continued
2.75% 6/24/15	$ 1,500		$ 1,525
Discover Financial Services:
6.45% 6/12/17	2,263		2,454
10.25% 7/15/19	1,000		1,295
General Electric Capital Corp.:
2.25% 11/9/15	6,228		6,037
3.5% 6/29/15	23,772		24,435
5.625% 9/15/17	7,044		7,714
5.625% 5/1/18	15,000		16,312
6.375% 11/15/67 (e)	9,000		9,214
Household Finance Corp. 6.375% 10/15/11	1,842		1,906
PACCAR Financial Corp. 1.95% 12/17/12	2,000		2,036
			105,528
Diversified Financial Services - 1.8%
Bank of America Corp. 5.75% 12/1/17	5,855		6,260
BB&T Corp. 3.85% 7/27/12	1,000		1,038
BNP Paribas:
2.125% 12/21/12	2,000		2,030
3.6% 2/23/16	10,380		10,448
BP Capital Markets PLC:
3.125% 3/10/12	4,000		4,090
3.125% 10/1/15	2,500		2,537
3.875% 3/10/15	2,000		2,096
4.5% 10/1/20	2,000		2,009
4.75% 3/10/19	1,000		1,041
Capital One Capital V 10.25% 8/15/39	3,557		3,864
Capital One Capital VI 8.875% 5/15/40	1,000		1,061
Citigroup, Inc.:
4.75% 5/19/15	15,244		16,097
5.5% 4/11/13	13,899		14,900
6.125% 5/15/18	5,731		6,284
6.5% 8/19/13	6,095		6,717
8.125% 7/15/39	8,000		10,146
8.5% 5/22/19	2,000		2,480
CME Group, Inc. 5.75% 2/15/14	501		557
Deutsche Bank AG London Branch:
3.45% 3/30/15	2,000		2,046
3.875% 8/18/14	5,000		5,234
Export Development Canada 1.25% 10/27/15	3,000		2,887
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Diversified Financial Services - continued
GlaxoSmithKline Capital, Inc.:
5.65% 5/15/18	$ 8,585		$ 9,690
6.375% 5/15/38	7,218		8,226
JPMorgan Chase & Co.:
3.4% 6/24/15	10,710		10,859
3.7% 1/20/15	5,000		5,177
4.65% 6/1/14	4,000		4,274
5.5% 10/15/40	5,700		5,658
6.3% 4/23/19	10,000		11,236
Kreditanstalt fuer Wiederaufbau:
1.875% 1/14/13	3,100		3,161
4% 1/27/20	3,000		3,103
4.875% 6/17/19	25,000		27,590
National Rural Utils. Coop. Finance Corp.:
2.625% 9/16/12	3,000		3,077
3.875% 9/16/15	4,000		4,195
ORIX Corp. 5.48% 11/22/11	381		392
TECO Finance, Inc. 4% 3/15/16	2,875		2,923
			203,383
Insurance - 0.7%
Ace INA Holdings, Inc. 5.9% 6/15/19	3,000		3,345
Allstate Corp. 7.45% 5/16/19	3,000		3,606
American International Group, Inc.:
3.65% 1/15/14	3,700		3,800
5.05% 10/1/15	3,000		3,125
5.85% 1/16/18	2,000		2,111
6.4% 12/15/20	2,900		3,144
8.25% 8/15/18	4,000		4,776
Assurant, Inc. 5.625% 2/15/14	1,894		2,008
Axis Capital Holdings Ltd. 5.75% 12/1/14	553		597
Berkshire Hathaway Finance Corp. 5.75% 1/15/40	5,000		5,280
MetLife, Inc.:
2.375% 2/6/14	3,000		3,040
5% 6/15/15	1,153		1,247
6.125% 12/1/11	981		1,022
7.717% 2/15/19	9,000		11,072
Prudential Financial, Inc.:
5.15% 1/15/13	2,146		2,279
5.4% 6/13/35	447		424
5.5% 3/15/16	421		454
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Insurance - continued
Prudential Financial, Inc.: - continued
5.7% 12/14/36	$ 380		$ 378
6.2% 1/15/15	1,340		1,486
7.375% 6/15/19	3,000		3,564
8.875% 6/15/38 (e)	2,944		3,430
The Chubb Corp.:
5.75% 5/15/18	4,175		4,679
6.5% 5/15/38	3,510		3,953
The Travelers Companies, Inc. 6.25% 6/15/37	8,350		9,116
			77,936
Real Estate Investment Trusts - 0.1%
AvalonBay Communities, Inc. 6.125% 11/1/12	527		566
Developers Diversified Realty Corp. 5.25% 4/15/11	2,410		2,420
HRPT Properties Trust:
5.75% 11/1/15	881		935
6.25% 6/15/17	1,221		1,277
6.65% 1/15/18	612		653
Kimco Realty Corp. 6.875% 10/1/19	1,000		1,166
			7,017
Real Estate Management & Development - 0.3%
Brandywine Operating Partnership LP 5.75% 4/1/12	1,000		1,030
Digital Realty Trust LP 4.5% 7/15/15	2,000		2,061
Duke Realty LP:
5.4% 8/15/14	5,172		5,521
5.625% 8/15/11	2,929		2,976
5.95% 2/15/17	630		675
6.25% 5/15/13	1,000		1,083
6.5% 1/15/18	1,000		1,103
ERP Operating LP 5.5% 10/1/12	3,403		3,626
Liberty Property LP:
4.75% 10/1/20	1,000		989
5.125% 3/2/15	840		889
5.5% 12/15/16	1,000		1,083
Regency Centers LP:
5.25% 8/1/15	2,113		2,257
5.875% 6/15/17	1,046		1,135
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Management & Development - continued
Tanger Properties LP:
6.125% 6/1/20	$ 4,408		$ 4,768
6.15% 11/15/15	24		26
			29,222
Thrifts & Mortgage Finance - 0.3%
Bank of America Corp.:
4.5% 4/1/15	5,840		6,102
5.65% 5/1/18	8,539		9,023
6.5% 8/1/16	15,000		16,835
U.S. Central Federal Credit Union:
1.25% 10/19/11	1,500		1,509
1.9% 10/19/12	1,500		1,530
			34,999
TOTAL FINANCIALS			814,648
HEALTH CARE - 1.0%
Biotechnology - 0.0%
Amgen, Inc. 5.85% 6/1/17	2,928		3,350
Health Care Equipment & Supplies - 0.0%
Baxter International, Inc. 4.5% 8/15/19	3,000		3,133
St. Jude Medical, Inc. 3.75% 7/15/14	1,000		1,053
			4,186
Health Care Providers & Services - 0.3%
Coventry Health Care, Inc.:
5.95% 3/15/17	1,731		1,797
6.3% 8/15/14	3,584		3,829
Express Scripts, Inc.:
5.25% 6/15/12	2,000		2,097
6.25% 6/15/14	2,000		2,233
7.25% 6/15/19	2,000		2,398
Medco Health Solutions, Inc. 2.75% 9/15/15	2,000		1,984
WellPoint, Inc.:
5% 12/15/14	7,200		7,837
5.8% 8/15/40	4,000		4,028
			26,203
Life Sciences Tools & Services - 0.0%
Agilent Technologies, Inc. 5.5% 9/14/15	1,000		1,084
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
HEALTH CARE - continued
Pharmaceuticals - 0.7%
Abbott Laboratories 4.125% 5/27/20	$ 9,500		$ 9,598
AstraZeneca PLC:
5.9% 9/15/17	4,505		5,156
6.45% 9/15/37	3,250		3,733
Bristol-Myers Squibb Co. 5.45% 5/1/18	2,905		3,249
Hospira, Inc. 6.4% 5/15/15	2,000		2,255
Merck & Co., Inc.:
2.25% 1/15/16	1,000		984
3.875% 1/15/21	1,000		979
4% 6/30/15	3,000		3,201
5% 6/30/19	5,970		6,536
5.85% 6/30/39	1,000		1,096
Novartis Capital Corp. 4.125% 2/10/14	12,903		13,828
Pfizer, Inc.:
5.35% 3/15/15	4,000		4,479
6.2% 3/15/19	4,000		4,649
7.2% 3/15/39	5,400		6,768
Teva Pharmaceutical Finance LLC 5.55% 2/1/16	949		1,058
Watson Pharmaceuticals, Inc.:
5% 8/15/14	1,000		1,080
6.125% 8/15/19	1,000		1,104
Wyeth 5.5% 2/1/14	5,400		5,990
			75,743
TOTAL HEALTH CARE			110,566
INDUSTRIALS - 0.9%
Aerospace & Defense - 0.2%
Honeywell International, Inc.:
5.375% 3/1/41	1,400		1,424
5.4% 3/15/16	3,400		3,825
Raytheon Co.:
1.625% 10/15/15	1,000		955
3.125% 10/15/20	2,000		1,836
4.875% 10/15/40	1,000		930
The Boeing Co.:
5% 3/15/14	3,000		3,294
6% 3/15/19	1,000		1,149
6.875% 3/15/39	1,000		1,207
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INDUSTRIALS - continued
Aerospace & Defense - continued
United Technologies Corp.:
4.5% 4/15/20	$ 4,000		$ 4,161
5.7% 4/15/40	2,000		2,133
6.125% 2/1/19	4,000		4,660
			25,574
Airlines - 0.0%
American Airlines, Inc. pass-thru trust certificates 6.978% 10/1/12	63		63
Continental Airlines, Inc.:
6.648% 3/15/19	2,794		2,914
6.9% 7/2/19	759		808
Delta Air Lines, Inc. pass-thru trust certificates 6.821% 8/10/22	323		342
			4,127
Commercial Services & Supplies - 0.0%
Republic Services, Inc. 5.5% 9/15/19	4,000		4,321
Industrial Conglomerates - 0.3%
Covidien International Finance SA:
5.45% 10/15/12	613		656
6% 10/15/17	2,902		3,294
6.55% 10/15/37	4,250		4,882
General Electric Co. 5.25% 12/6/17	18,540		20,310
			29,142
Machinery - 0.1%
Caterpillar, Inc. 5.3% 9/15/35	7,000		7,195
Deere & Co.:
4.375% 10/16/19	2,000		2,096
5.375% 10/16/29	1,000		1,068
			10,359
Road & Rail - 0.3%
Burlington Northern Santa Fe Corp. 4.7% 10/1/19	5,000		5,244
CSX Corp. 7.375% 2/1/19	10,000		12,118
Norfolk Southern Corp. 5.75% 1/15/16	10,000		11,137
			28,499
TOTAL INDUSTRIALS			102,022
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INFORMATION TECHNOLOGY - 0.9%
Communications Equipment - 0.2%
Cisco Systems, Inc.:
2.9% 11/17/14	$ 3,000		$ 3,148
4.45% 1/15/20	2,000		2,059
4.95% 2/15/19	3,479		3,739
5.9% 2/15/39	12,416		13,065
Nokia Corp.:
5.375% 5/15/19	1,000		1,032
6.625% 5/15/39	1,000		1,013
			24,056
Computers & Peripherals - 0.1%
Dell, Inc. 5.625% 4/15/14	2,000		2,201
Hewlett-Packard Co. 4.75% 6/2/14	8,300		9,029
			11,230
Electronic Equipment & Components - 0.1%
Tyco Electronics Group SA:
5.95% 1/15/14	2,922		3,211
6% 10/1/12	3,840		4,110
6.55% 10/1/17	2,338		2,694
7.125% 10/1/37	2,475		2,860
			12,875
IT Services - 0.2%
International Business Machines Corp. 7.625% 10/15/18	13,000		16,429
Office Electronics - 0.1%
Xerox Corp.:
4.25% 2/15/15	1,000		1,053
5.5% 5/15/12	1,586		1,666
5.625% 12/15/19	1,000		1,075
8.25% 5/15/14	3,902		4,566
			8,360
Software - 0.2%
Microsoft Corp.:
2.5% 2/8/16	2,000		2,025
2.95% 6/1/14	2,000		2,090
4.2% 6/1/19	2,000		2,089
5.3% 2/8/41	1,500		1,511
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INFORMATION TECHNOLOGY - continued
Software - continued
Oracle Corp.:
5.375% 7/15/40 (a)	$ 4,000		$ 3,899
5.75% 4/15/18	7,400		8,322
			19,936
TOTAL INFORMATION TECHNOLOGY			92,886
MATERIALS - 0.9%
Chemicals - 0.4%
Air Products & Chemicals, Inc. 4.375% 8/21/19	1,000		1,009
Dow Chemical Co.:
4.85% 8/15/12	10,000		10,529
5.9% 2/15/15	2,500		2,788
7.6% 5/15/14	3,000		3,484
8.55% 5/15/19	3,000		3,802
9.4% 5/15/39	3,000		4,468
E.I. du Pont de Nemours & Co.:
3.25% 1/15/15	4,000		4,151
4.625% 1/15/20	3,000		3,118
Lubrizol Corp. 8.875% 2/1/19	919		1,152
Potash Corp. of Saskatchewan, Inc.:
3.75% 9/30/15	2,000		2,084
4.875% 3/30/20	1,500		1,568
Praxair, Inc. 3.25% 9/15/15	3,200		3,295
			41,448
Construction Materials - 0.0%
CRH America, Inc. 6% 9/30/16	1,816		1,957
Containers & Packaging - 0.1%
Bemis Co., Inc.:
5.65% 8/1/14	3,000		3,273
6.8% 8/1/19	3,000		3,431
			6,704
Metals & Mining - 0.4%
ArcelorMittal SA:
3.75% 8/5/15	7,800		7,878
7% 10/15/39	2,100		2,196
9.85% 6/1/19	2,000		2,570
BHP Billiton Financial (USA) Ltd.:
5.125% 3/29/12	1,957		2,049
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
MATERIALS - continued
Metals & Mining - continued
BHP Billiton Financial (USA) Ltd.: - continued
5.5% 4/1/14	$ 2,500		$ 2,779
6.5% 4/1/19	2,500		2,963
Newmont Mining Corp.:
5.125% 10/1/19	1,000		1,076
6.25% 10/1/39	1,600		1,686
Rio Tinto Finance (USA) Ltd.:
5.2% 11/2/40	1,000		952
6.5% 7/15/18	1,398		1,618
7.125% 7/15/28	2,000		2,442
8.95% 5/1/14	4,000		4,843
Vale Overseas Ltd.:
5.625% 9/15/19	6,210		6,583
6.25% 1/23/17	9,395		10,589
			50,224
TOTAL MATERIALS			100,333
TELECOMMUNICATION SERVICES - 1.6%
Diversified Telecommunication Services - 1.2%
AT&T Broadband Corp. 8.375% 3/15/13	2,560		2,903
AT&T, Inc.:
5.8% 2/15/19	4,000		4,469
6.3% 1/15/38	838		870
6.7% 11/15/13	1,162		1,315
BellSouth Capital Funding Corp. 7.875% 2/15/30	2,477		3,014
British Telecommunications PLC 9.875% 12/15/30	4,515		6,260
CenturyLink, Inc.:
6.15% 9/15/19	5,000		5,213
7.6% 9/15/39	2,500		2,639
Deutsche Telekom International Financial BV:
5.25% 7/22/13	2,425		2,629
5.875% 8/20/13	10,000		11,006
6.75% 8/20/18	3,595		4,203
France Telecom SA:
2.125% 9/16/15	1,000		976
5.375% 7/8/19	4,000		4,411
SBC Communications, Inc.:
5.1% 9/15/14	2,149		2,365
5.875% 2/1/12	2,707		2,837
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
SBC Communications, Inc.: - continued
5.875% 8/15/12	$ 968		$ 1,037
6.15% 9/15/34	5,270		5,382
6.45% 6/15/34	11,795		12,408
Telecom Italia Capital SA:
4.95% 9/30/14	3,178		3,265
5.25% 10/1/15	4,571		4,648
6.999% 6/4/18	1,776		1,906
7.175% 6/18/19	6,000		6,496
Telefonica Emisiones SAU:
3.992% 2/16/16	3,850		3,865
4.949% 1/15/15	3,000		3,158
5.462% 2/16/21	2,700		2,740
5.877% 7/15/19	2,000		2,102
6.421% 6/20/16	1,151		1,278
7.045% 6/20/36	2,600		2,798
Verizon Communications, Inc.:
6.25% 4/1/37	3,121		3,244
6.35% 4/1/19	6,000		6,881
6.9% 4/15/38	6,025		6,834
Verizon Global Funding Corp. 5.85% 9/15/35	3,190		3,210
Verizon New England, Inc. 6.5% 9/15/11	882		910
Verizon New York, Inc. 6.875% 4/1/12	2,628		2,788
			130,060
Wireless Telecommunication Services - 0.4%
America Movil SAB de CV 6.125% 11/15/37	8,365		8,778
AT&T Wireless Services, Inc. 8.125% 5/1/12	10,000		10,840
DIRECTV Holdings LLC/DIRECTV Financing, Inc.:
4.75% 10/1/14	4,500		4,841
5.875% 10/1/19	2,905		3,148
6.35% 3/15/40	1,000		1,020
Verizon Wireless Capital LLC:
5.55% 2/1/14	2,352		2,600
8.5% 11/15/18	3,486		4,517
Vodafone Group PLC:
3.375% 11/24/15	1,000		1,019
5% 12/16/13	2,275		2,473
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
Vodafone Group PLC: - continued
5.45% 6/10/19	$ 6,000		$ 6,577
5.5% 6/15/11	2,735		2,774
			48,587
TOTAL TELECOMMUNICATION SERVICES			178,647
UTILITIES - 1.7%
Electric Utilities - 1.1%
Ameren Illinois Co. 6.125% 11/15/17	3,364		3,742
AmerenUE 6.4% 6/15/17	2,959		3,353
Cleveland Electric Illuminating Co.:
5.65% 12/15/13	4,074		4,470
8.875% 11/15/18	2,000		2,539
Commonwealth Edison Co.:
5.4% 12/15/11	6,418		6,656
5.8% 3/15/18	9,945		11,086
Duke Energy Carolinas LLC:
5.25% 1/15/18	4,355		4,796
6% 1/15/38	3,450		3,741
Duke Energy Corp. 3.95% 9/15/14	4,500		4,741
Edison International 3.75% 9/15/17	3,000		2,977
FirstEnergy Solutions Corp. 6.8% 8/15/39	3,500		3,456
FPL Group Capital, Inc. 7.875% 12/15/15	1,532		1,830
Nevada Power Co. 6.5% 8/1/18	1,555		1,789
Northern States Power Co. 5.25% 3/1/18	10,500		11,517
Oncor Electric Delivery Co. LLC 5% 9/30/17 (a)	2,705		2,871
Pacific Gas & Electric Co. 5.4% 1/15/40	4,000		3,919
PacifiCorp 6% 1/15/39	6,193		6,696
Pennsylvania Electric Co. 6.05% 9/1/17	757		825
Potomac Electric Power Co. 6.5% 11/15/37	3,806		4,393
Progress Energy, Inc.:
4.875% 12/1/19	1,700		1,776
6% 12/1/39	3,200		3,357
7.1% 3/1/11	3,353		3,353
Public Service Electric & Gas Co. 2.7% 5/1/15	2,000		2,017
Sierra Pacific Power Co. 5.45% 9/1/13	1,545		1,682
Tampa Electric Co.:
6.15% 5/15/37	6,260		6,774
6.55% 5/15/36	5,500		6,160
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
Virginia Electric & Power Co. 5% 6/30/19	$ 5,000		$ 5,381
Wisconsin Electric Power Co. 6.25% 12/1/15	2,983		3,447
Wisconsin Power & Light Co. 5% 7/15/19	1,000		1,077
			120,421
Gas Utilities - 0.0%
Southern Natural Gas Co. 5.9% 4/1/17 (a)	438		473
Independent Power Producers & Energy Traders - 0.1%
Duke Capital LLC 5.668% 8/15/14	2,036		2,237
Exelon Generation Co. LLC 5.35% 1/15/14	1,513		1,635
PPL Energy Supply LLC 6.5% 5/1/18	6,485		7,180
			11,052
Multi-Utilities - 0.5%
CenterPoint Energy, Inc. 5.95% 2/1/17	1,181		1,276
Consolidated Edison Co. of New York, Inc.:
4.45% 6/15/20	2,000		2,058
5.5% 12/1/39	2,500		2,536
Dominion Resources, Inc.:
2.25% 9/1/15	1,000		976
6.3% 9/30/66 (e)	1,000		978
7.5% 6/30/66 (e)	1,000		1,040
DTE Energy Co. 7.05% 6/1/11	974		988
MidAmerican Energy Holdings, Co.:
5.75% 4/1/18	3,750		4,220
5.875% 10/1/12	2,893		3,102
6.5% 9/15/37	7,605		8,453
National Grid PLC 6.3% 8/1/16	1,463		1,668
NiSource Finance Corp.:
5.25% 9/15/17	835		884
5.4% 7/15/14	1,334		1,450
5.45% 9/15/20	5,111		5,325
6.25% 12/15/40	2,453		2,530
6.4% 3/15/18	1,532		1,720
San Diego Gas & Electric Co. 4.5% 8/15/40	1,000		895
Sempra Energy:
6% 10/15/39	1,000		1,036
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Multi-Utilities - continued
Sempra Energy: - continued
6.5% 6/1/16	$ 3,000		$ 3,438
Wisconsin Energy Corp. 6.25% 5/15/67 (e)	4,228		4,223
			48,796
TOTAL UTILITIES			180,742
TOTAL NONCONVERTIBLE BONDS (Cost $1,925,540)		2,096,976
U.S. Government and Government Agency Obligations - 41.8%
U.S. Government Agency Obligations - 7.5%
Fannie Mae:
0.375% 12/28/12	80,420		79,783
0.5% 10/30/12	23,650		23,596
1% 4/4/12	41,600		41,856
1.25% 8/20/13	9,624		9,670
1.75% 2/22/13	22,745		23,174
2% 1/9/12	3,050		3,093
2.5% 5/15/14	18,484		19,098
2.75% 3/13/14	63,630		66,278
3.625% 2/12/13	55,295		58,301
5% 2/16/12	13,565		14,157
Federal Farm Credit Bank 3% 9/22/14	50,000		52,324
Federal Home Loan Bank:
1.625% 11/21/12	78,670		79,963
1.875% 6/21/13	38,900		39,728
Freddie Mac:
0.625% 12/28/12	18,110		18,087
0.75% 3/28/13	31,355		31,322
1.125% 7/27/12	28,500		28,735
1.375% 2/25/14	8,804		8,817
1.75% 9/10/15	20,385		20,010
2.125% 3/23/12	17,776		18,092
3.75% 3/27/19	2,300		2,372
4.875% 6/13/18	98,230		109,270
6.25% 7/15/32	7,700		9,341
6.75% 3/15/31	26,000		33,145
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - continued
Tennessee Valley Authority:
5.25% 9/15/39	$ 20,000		$ 20,943
5.375% 4/1/56	5,395		5,695
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			816,850
U.S. Treasury Obligations - 32.8%
U.S. Treasury Bonds:
3.5% 2/15/39	12,115		10,186
3.875% 8/15/40	44,180		39,665
4.25% 5/15/39	26,000		25,013
4.25% 11/15/40	20,211		19,384
4.375% 2/15/38	11,000		10,857
4.375% 11/15/39	100		98
4.375% 5/15/40	8,000		7,841
4.5% 2/15/36	18,000		18,236
4.5% 5/15/38	15,000		15,098
4.5% 8/15/39	39,000		39,110
4.625% 2/15/40	21,500		21,984
4.75% 2/15/37	11,000		11,560
4.75% 2/15/41	19,000		19,810
5% 5/15/37	11,000		11,999
5.375% 2/15/31	70,000		80,413
6.25% 5/15/30	86,360		109,407
8% 11/15/21	75,392		105,796
8.75% 5/15/17	8,000		10,878
8.875% 8/15/17	5,000		6,878
8.875% 2/15/19	7,000		9,966
9% 11/15/18	4,000		5,708
9.125% 5/15/18	3,000		4,254
U.S. Treasury Notes:
0.375% 8/31/12	117,000		116,867
0.375% 9/30/12	51,000		50,906
0.375% 10/31/12	33,000		32,910
0.5% 11/30/12	144,000		143,809
0.625% 6/30/12	60,000		60,194
0.625% 7/31/12	83,000		83,253
0.625% 12/31/12	57,000		57,004
0.625% 1/31/13	199,000		198,899
0.625% 2/28/13	67,000		66,916
0.75% 5/31/12	12,000		12,059
0.75% 12/15/13	980		971
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
1% 4/30/12	$ 36,000		$ 36,274
1% 7/15/13	19,000		19,064
1% 1/15/14	2,459		2,451
1.25% 8/31/15	92,000		89,377
1.25% 9/30/15	6,000		5,816
1.25% 10/31/15	39,660		38,352
1.375% 10/15/12	9,100		9,224
1.5% 12/31/13	1,300		1,315
1.75% 1/31/14	13,759		14,009
1.75% 3/31/14	20,550		20,890
1.75% 7/31/15	53,000		52,747
1.875% 2/28/14	1,660		1,695
1.875% 4/30/14	23,821		24,290
1.875% 6/30/15	79,000		79,179
1.875% 8/31/17	25,000		23,781
1.875% 10/31/17	13,000		12,313
2% 1/31/16	84,000		83,606
2.125% 5/31/15	98,000		99,401
2.125% 12/31/15	18,710		18,763
2.125% 2/29/16	70,000		69,967
2.25% 5/31/14	25,170		25,941
2.25% 11/30/17	11,000		10,656
2.375% 9/30/14	34,410		35,507
2.375% 2/28/15	32,434		33,329
2.375% 7/31/17	25,000		24,578
2.5% 3/31/13	18,030		18,700
2.5% 3/31/15	53,600		55,321
2.5% 4/30/15	105,000		108,224
2.5% 6/30/17	2,000		1,985
2.625% 6/30/14	31,801		33,143
2.625% 7/31/14	28,000		29,175
2.625% 12/31/14	204,900		212,872
2.625% 2/29/16	13,600		13,919
2.625% 8/15/20	141,000		132,496
2.625% 11/15/20	94,180		88,095
2.75% 11/30/16	25,000		25,430
2.75% 12/31/17	3,000		2,995
3% 8/31/16	12,402		12,831
3% 9/30/16	22,000		22,737
3.125% 10/31/16	23,900		24,826
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
3.125% 5/15/19	$ 14,260		$ 14,303
3.25% 5/31/16	14,200		14,918
3.25% 12/31/16	25,000		26,076
3.375% 11/15/19	62,740		63,598
3.5% 2/15/18	4,000		4,180
3.5% 5/15/20	81,800		83,116
3.625% 8/15/19	20,000		20,744
3.625% 2/15/20	59,600		61,360
3.625% 2/15/21	48,000		48,833
3.75% 11/15/18	6,000		6,332
3.875% 2/15/13	3,150		3,350
3.875% 5/15/18	20,000		21,363
4% 2/15/14	11,600		12,582
4% 2/15/15	9,600		10,484
4% 8/15/18	22,000		23,650
4.125% 5/15/15	19,300		21,176
4.25% 8/15/13	5,600		6,060
4.25% 11/15/13	12,007		13,064
4.25% 11/15/14	6,580		7,248
4.25% 11/15/17	16,000		17,515
4.5% 5/15/17	13,000		14,454
4.625% 7/31/12	8,700		9,219
4.625% 11/15/16	15,000		16,812
4.625% 2/15/17	14,000		15,677
4.75% 8/15/17	14,000		15,771
5.125% 5/15/16	13,100		15,004
TOTAL U.S. TREASURY OBLIGATIONS			3,590,092
Other Government Related - 1.5%
Citibank NA 1.875% 6/4/12 (FDIC Guaranteed) (b)	30,000		30,485
Citigroup Funding, Inc.:
2% 3/30/12 (FDIC Guaranteed) (b)	50,000		50,800
2.125% 7/12/12 (FDIC Guaranteed) (b)	52,060		53,197
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
Other Government Related - continued
General Electric Capital Corp. 2.125% 12/21/12 (FDIC Guaranteed) (b)	$ 25,000		$ 25,629
Goldman Sachs Group, Inc. 3.25% 6/15/12 (FDIC Guaranteed) (b)	9,504		9,837
TOTAL OTHER GOVERNMENT RELATED			169,948
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $4,521,492)		4,576,890
U.S. Government Agency - Mortgage Securities - 31.9%
Fannie Mae - 23.3%
4% 4/1/24 to 2/1/41	323,465		322,595
4% 3/1/26 (c)	108,000		110,993
4.5% 5/1/18 to 11/1/40	432,639		444,511
4.5% 3/1/26 (c)	31,000		32,482
4.5% 3/1/41 (c)	154,000		156,948
4.5% 3/1/41 (c)	22,000		22,421
4.538% 11/1/34 (e)	6,615		7,054
5% 12/1/17 to 8/1/40 (d)	394,401		416,703
5% 3/1/41 (c)	38,000		39,799
5% 3/1/41 (c)	3,000		3,142
5.062% 11/1/34 (e)	34,788		36,514
5.5% 5/1/21 to 6/1/40	439,207		471,824
5.5% 3/1/41 (c)	38,500		41,153
6% 8/1/22 to 9/1/39	278,986		305,084
6% 3/1/41 (c)	11,000		11,956
6.5% 5/1/31 to 9/1/38	111,496		124,725
6.5% 3/1/41 (c)	3,000		3,349
TOTAL FANNIE MAE			2,551,253
Freddie Mac - 2.3%
2.505% 12/1/35 (e)	10,764		11,294
4.5% 6/1/25 to 10/1/40	19,710		20,522
4.853% 3/1/35 (e)	15,597		16,572
5% 4/1/23 to 9/1/40	104,572		109,735
5% 3/1/41 (c)	22,000		23,019
5.079% 9/1/35 (e)	22,658		23,887
5.144% 3/1/36 (e)	11,811		12,133
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
5.5% 1/1/36	$ 9,034		$ 9,697
5.794% 9/1/37 (e)	5,883		6,235
6% 4/1/32 to 8/1/37	7,805		8,567
6% 3/1/41 (c)	4,000		4,345
11.75% 9/1/13	4		4
TOTAL FREDDIE MAC			246,010
Ginnie Mae - 6.3%
4% 1/15/25 to 8/15/39	9,477		9,879
4% 3/1/41 (c)	51,200		51,231
4.5% 3/15/39 to 1/20/41	223,051		230,883
5% 6/15/38 to 7/15/40	185,769		198,731
5% 3/1/41 (c)	11,700		12,422
5.5% 10/15/35 to 9/15/39	91,494		99,537
6% 5/20/34 to 11/15/39	48,199		52,921
6% 3/1/41 (c)	11,500		12,659
6.5% 1/15/32 to 2/15/39	21,929		24,619
TOTAL GINNIE MAE			692,882
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $3,421,147)		3,490,145
Asset-Backed Securities - 0.4%
AmeriCredit Prime Automobile Receivables Trust Series 2007-1 Class D, 5.62% 9/8/14	750		770
C-BASS Trust Series 2006-CB7 Class A2, 0.3215% 10/25/36 (e)	48		47
Capital Auto Receivables Trust Series 2007-2 Class A4A, 5.39% 2/18/14	2,572		2,615
Capital One Multi-Asset Execution Trust:
Series 2008-A3 Class A3, 5.05% 2/15/16	5,000		5,397
Series 2009-A2 Class A2, 3.2% 4/15/14	1,000		1,008
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	619		629
Chase Issuance Trust:
Series 2008-9 Class A, 4.26% 5/15/13	4,900		4,940
Series 2008-A4 Class A4, 4.65% 3/15/15	5,000		5,364
Citibank Credit Card Issuance Trust:
Series 2006-A4 Class A4, 5.45% 5/10/13	5,000		5,054
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Citibank Credit Card Issuance Trust: - continued
Series 2009-A3 Class A3, 2.7% 6/24/13	$ 1,000		$ 1,012
Series 2009-A4 Class A4, 4.9% 6/23/16	1,000		1,096
Series 2009-A5 Class A5, 2.25% 12/23/14	6,000		6,130
CPS Auto Receivables Trust Series 2006-D Class A4, 5.115% 8/15/13 (FSA Insured) (a)	280		283
Detroit Edison Securitization Funding LLC Series 2001-1 Class A6, 6.62% 3/1/16	6,000		6,918
Ford Credit Auto Owner Trust Series 2006-C Class B, 5.3% 6/15/12	177		180
GCO Slims Trust Series 2006-1A, 5.72% 3/1/22 (a)	1,242		989
Option One Mortgage Loan Trust:
Series 2007-5 Class 2A1, 0.3515% 5/25/37 (e)	64		63
Series 2007-6 Class 2A1, 0.3215% 7/25/37 (e)	141		137
Residential Asset Mortgage Products, Inc. Series 2006-EFC2 Class M1, 0.4915% 12/25/36 (e)	377		12
Residential Asset Securities Corp. Series 2007-KS2 Class AI1, 0.3315% 2/25/37 (e)	75		75
Triad Auto Receivables Owner Trust Series 2006-C Class A4, 5.31% 5/13/13 (AMBAC Insured)	288		291
TOTAL ASSET-BACKED SECURITIES (Cost $41,649)		43,010
Collateralized Mortgage Obligations - 0.1%
Private Sponsor - 0.1%
Citigroup Commercial Mortgage Trust Series 2008-C7 Class A2B, 6.0995% 12/10/49 (e)	1,268		1,340
Cobalt CMBS Commercial Mortgage Trust Series 2007-C2 Class B, 5.617% 4/15/47 (e)	1,416		637
COMM pass-thru certificates floater Series 2001-J2A Class A2F, 0.7648% 7/16/34 (a)(e)	946		944
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18:
Class A1, 5.32% 6/12/47 (e)	44		45
Class A3, 5.447% 6/12/47 (e)	2,405		2,490
LB-UBS Commercial Mortgage Trust sequential payer Series 2006-C6 Class A4, 5.372% 9/15/39	571		614
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Merrill Lynch-CFC Commercial Mortgage Trust Series 2006-3 Class ASB, 5.382% 7/12/46 (e)	$ 5,429		$ 5,725
Salomon Brothers Mortgage Securities VII, Inc. Series 2006-C2 Class H, 6.308% 7/18/33 (a)	179		178
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $8,964)		11,973
Commercial Mortgage Securities - 3.2%
Banc of America Commercial Mortgage Trust:
sequential payer:
Series 2006-2 Class AAB, 5.7218% 5/10/45 (e)	1,480		1,593
Series 2006-5:
Class A2, 5.317% 9/10/47	4,844		4,962
Class A3, 5.39% 9/10/47	1,768		1,827
Series 2006-6 Class A3, 5.369% 10/10/45	2,536		2,630
Series 2007-2 Class A1, 5.421% 4/10/49	108		110
Series 2007-4 Class A3, 5.8093% 2/10/51 (e)	1,265		1,334
Series 2006-6 Class E, 5.619% 10/10/45 (a)	733		211
Series 2007-3:
Class A3, 5.6579% 6/10/49 (e)	2,118		2,209
Class A4, 5.6579% 6/10/49 (e)	2,643		2,822
Banc of America Commercial Mortgage, Inc.:
sequential payer:
Series 2001-1 Class A4, 5.451% 1/15/49	2,777		2,959
Series 2004-2:
Class A3, 4.05% 11/10/38	263		267
Class A4, 4.153% 11/10/38	1,608		1,659
Series 2005-1 Class A3, 4.877% 11/10/42	1,156		1,158
Series 2006-1 Class A1, 5.219% 9/10/45 (e)	168		168
Series 2001-3 Class H, 6.562% 4/11/37 (a)	709		718
Series 2001-PB1:
Class J, 7.166% 5/11/35 (a)	317		312
Class K, 6.15% 5/11/35 (a)	590		562
Series 2005-3 Series A3B, 5.09% 7/10/43 (e)	3,939		4,090
Series 2007-1 Class B, 5.543% 1/15/49	763		613
Banc of America Large Loan, Inc. floater:
Series 2005-MIB1:
Class C, 0.5758% 3/15/22 (a)(e)	545		534
Class D, 0.6258% 3/15/22 (a)(e)	552		513
Class E, 0.6658% 3/15/22 (a)(e)	456		415
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Banc of America Large Loan, Inc. floater: - continued
Series 2006-BIX1 Class F, 0.5758% 10/15/19 (a)(e)	$ 939		$ 826
Bayview Commercial Asset Trust:
Series 2004-1 Class IO, 1.25% 4/25/34 (a)(f)	2,820		99
Series 2007-5A Class IO, 3.047% 10/25/37 (a)(e)(f)	6,753		802
Bear Stearns Commercial Mortgage Securities Trust:
floater Series 2007-BBA8:
Class D, 0.5158% 3/15/22 (a)(e)	97		80
Class E, 0.5658% 3/15/22 (a)(e)	507		390
Class F, 0.6158% 3/15/22 (a)(e)	311		224
Class G, 0.6658% 3/15/22 (a)(e)	80		55
Class H, 0.8158% 3/15/22 (a)(e)	97		61
Class J, 0.9658% 3/15/22 (a)(e)	97		49
sequential payer:
Series 2003-PWR2 Class A3, 4.834% 5/11/39	340		345
Series 2007-PW16 Class A4, 5.7174% 6/11/40 (e)	16,612		18,064
Series 2007-PW17 Class A1, 5.282% 6/11/50	279		284
Series 2007-T26 Class A1, 5.145% 1/12/45 (e)	219		224
Series 2006-PW13 Class A3, 5.518% 9/11/41	4,475		4,688
Series 2006-T22 Class A4, 5.514% 4/12/38 (e)	159		174
Series 2007-PW16:
Class B, 5.7174% 6/11/40 (a)(e)	203		136
Class C, 5.7174% 6/11/40 (a)(e)	169		95
Class D, 5.7174% 6/11/40 (a)(e)	169		88
Series 2007-T28 Class A1, 5.422% 9/11/42	122		124
CDC Commercial Mortgage Trust Series 2002-FX1 Class G, 6.625% 5/15/35 (a)	1,490		1,583
Citigroup Commercial Mortgage Trust:
floater Series 2006-FL2 Class F, 0.574% 8/15/21 (a)(e)	453		442
sequential payer Series 2006-C5 Class A4, 5.431% 10/15/49	9,390		10,134
Series 2006-C5 Class AMP2, 5.5005% 10/15/49 (a)	1,918		1,735
Series 2007-C6:
Class A1, 5.622% 12/10/49 (e)	1,020		1,022
Class A4, 5.6981% 12/10/49 (e)	9,950		10,784
Citigroup/Deutsche Bank Commercial Mortgage Trust:
sequential payer Series 2007-CD4 Class A4, 5.322% 12/11/49	2,212		2,331
Series 2007-CD4:
Class A3, 5.293% 12/11/49	1,234		1,270
Class C, 5.476% 12/11/49	2,387		835
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Cobalt CMBS Commercial Mortgage Trust:
sequential payer Series 2007-C3 Class A3, 5.8155% 5/15/46 (e)	$ 1,268		$ 1,358
Series 2006-C1 Class B, 5.359% 8/15/48	3,804		2,092
COMM pass-thru certificates:
floater:
Series 2005-F10A Class C, 0.5358% 4/15/17 (a)(e)	1,020		938
Series 2005-FL11:
Class C, 0.5658% 11/15/17 (a)(e)	968		919
Class D, 0.6058% 11/15/17 (a)(e)	51		47
Class E, 0.6558% 11/15/17 (a)(e)	179		164
sequential payer:
Series 2005-C6 Class A2, 4.999% 6/10/44 (e)	13		13
Series 2006-C8 Class A3, 5.31% 12/10/46	3,613		3,754
Series 2007-C9 Class A4, 5.8148% 12/10/49 (e)	2,805		3,065
Series 2006-C8 Class B, 5.44% 12/10/46	2,196		1,451
Credit Suisse Commercial Mortgage Trust:
sequential payer:
Series 2006-C4 Class A3, 5.467% 9/15/39	6,558		7,013
Series 2007-C2 Class A3, 5.542% 1/15/49 (e)	2,536		2,664
Series 2007-C3 Class A4, 5.7203% 6/15/39 (e)	10,213		10,873
Series 2006-C4 Class AAB, 5.439% 9/15/39	7,217		7,555
Series 2007-C5 Class A4, 5.695% 9/15/40 (e)	1,148		1,209
Credit Suisse First Boston Mortgage Capital Certificates floater Series 2007-TF2A Class B, 0.6158% 4/15/22 (a)(e)	4,524		3,529
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer Series 2004-C1:
Class A3, 4.321% 1/15/37	213		216
Class A4, 4.75% 1/15/37	590		621
Series 2006-C1 Class A3, 5.5457% 2/15/39 (e)	6,695		7,082
Credit Suisse Mortgage Capital Certificates:
floater Series 2007-TFL1 Class B, 0.4158% 2/15/22 (a)(e)	480		432
Series 2007-C1 Class B, 5.487% 2/15/40 (a)(e)	1,938		291
First Union National Bank-Bank of America Commercial Mortgage Trust Series 2001-C1:
Class D, 6.484% 3/15/33	452		452
Class G, 6.936% 3/15/33 (a)	834		837
GE Capital Commercial Mortgage Corp. sequential payer Series 2007-C1 Class A4, 5.543% 12/10/49	13,264		13,978
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Greenwich Capital Commercial Funding Corp.:
floater Series 2006-FL4 Class B, 0.453% 11/5/21 (a)(e)	$ 477		$ 451
sequential payer:
Series 2007-GG11 Class A2, 5.597% 12/10/49	2,536		2,657
Series 2007-GG9 Class A4, 5.444% 3/10/39	3,687		3,939
Series 2006-GG7:
Class A3, 5.8829% 7/10/38 (e)	3,342		3,526
Class A4, 5.8829% 7/10/38 (e)	10,980		12,059
GS Mortgage Securities Corp. II:
floater Series 2006-FL8A:
Class C, 0.503% 6/6/20 (a)(e)	64		61
Class D, 0.543% 6/6/20 (a)(e)	302		278
Class E, 0.633% 6/6/20 (a)(e)	351		316
sequential payer Series 2004-GG2 Class A4, 4.964% 8/10/38	393		398
GS Mortgage Securities Trust sequential payer Series 2007-GG10:
Class A1, 5.69% 8/10/45	35		36
Class A2, 5.778% 8/10/45	604		619
Class A4, 5.8075% 8/10/45 (e)	603		644
JPMorgan Chase Commercial Mortgage Securities Trust:
floater Series 2006-FLA2:
Class B, 0.4358% 11/15/18 (a)(e)	825		775
Class C, 0.4758% 11/15/18 (a)(e)	586		551
Class D, 0.4958% 11/15/18 (a)(e)	34		32
Class E, 0.5458% 11/15/18 (a)(e)	51		45
Class F, 0.5958% 11/15/18 (a)(e)	76		66
Class G, 0.6258% 11/15/18 (a)(e)	67		56
Class H, 0.7658% 11/15/18 (a)(e)	51		41
sequential payer:
Series 2006-CB14 Class A3B, 5.4864% 12/12/44 (e)	3,771		3,941
Series 2006-LDP8 Class A4, 5.399% 5/15/45	808		869
Series 2006-LDP9:
Class A2, 5.134% 5/15/47 (e)	602		623
Class A3, 5.336% 5/15/47	529		562
Series 2007-CB19 Class A4, 5.7447% 2/12/49 (e)	17,057		18,371
Series 2007-LD11 Class A2, 5.8025% 6/15/49 (e)	3,560		3,684
Series 2007-LDP10 Class A1, 5.122% 1/15/49	20		20
Series 2007-LDPX Class A3, 5.412% 1/15/49	5,440		5,782
Series 2005-CB13 Class E, 5.3502% 1/12/43 (a)(e)	642		66
Series 2006-CB17 Class A3, 5.45% 12/12/43	361		374
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
JPMorgan Chase Commercial Mortgage Securities Trust: - continued
Series 2007-CB19:
Class B, 5.7447% 2/12/49 (e)	$ 108		$ 64
Class C, 5.7447% 2/12/49 (e)	283		145
Class D, 5.7447% 2/12/49 (e)	298		139
Series 2007-LDP10 Class ES, 5.5411% 1/15/49 (a)(e)	656		167
JPMorgan Commercial Mortgage Finance Corp. Series 2000-C9 Class G, 6.25% 10/15/32 (a)	429		429
LB Commercial Conduit Mortgage Trust:
sequential payer Series 2007-C3 Class A4, 5.948% 7/15/44 (e)	3,327		3,590
Series 1998-C1 Class D, 6.98% 2/18/30	379		380
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2001-C2 Class A2, 6.653% 11/15/27	11		11
Series 2006-C1 Class A2, 5.084% 2/15/31	321		322
Series 2006-C6 Class A1, 5.23% 9/15/39	109		109
Series 2006-C7:
Class A1, 5.279% 11/15/38	411		415
Class A3, 5.347% 11/15/38	945		1,012
Series 2007-C1:
Class A1, 5.391% 2/15/40 (e)	62		63
Class A3, 5.398% 2/15/40	5,000		5,170
Class A4, 5.424% 2/15/40	1,163		1,248
Series 2007-C2 Class A3, 5.43% 2/15/40	611		652
Series 2007-C6 Class A4, 5.858% 7/15/40 (e)	1,584		1,710
Series 2007-C7 Class A3, 5.866% 9/15/45	4,146		4,474
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2006-LLFA:
Class D, 0.4958% 9/15/21 (a)(e)	406		365
Class E, 0.5558% 9/15/21 (a)(e)	1,465		1,290
Merrill Lynch Mortgage Trust:
Series 2005-CKI1 Class A3, 5.2412% 11/12/37 (e)	2,082		2,122
Series 2005-LC1 Class F, 5.3853% 1/12/44 (a)(e)	1,103		563
Series 2006-C1 Class A2, 5.6109% 5/12/39 (e)	1,499		1,545
Series 2007-C1 Class A4, 5.8261% 6/12/50 (e)	4,800		5,211
Series 2008-C1 Class A4, 5.69% 2/12/51	2,707		2,899
Merrill Lynch-CFC Commercial Mortgage Trust:
floater Series 2006-4 Class A2FL, 0.3813% 12/12/49 (e)	578		564
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Merrill Lynch-CFC Commercial Mortgage Trust: - continued
sequential payer:
Series 2006-1 CLass A3, 5.4839% 2/12/39 (e)	$ 1,349		$ 1,402
Series 2006-4 Class ASB, 5.133% 12/12/49 (e)	1,090		1,158
Series 2007-5:
Class A3, 5.364% 8/12/48	495		509
Class A4, 5.378% 8/12/48	51		54
Class B, 5.479% 2/12/17	3,804		1,671
Series 2007-6:
Class A1, 5.175% 3/12/51	43		43
Class A4, 5.485% 3/12/51 (e)	2,000		2,100
Series 2007-7 Class A4, 5.7439% 6/12/50 (e)	4,438		4,721
Series 2007-8 Class A1, 4.622% 8/12/49	121		122
Series 2007-6 Class B, 5.635% 3/12/51 (e)	1,268		621
Series 2007-7 Class B, 5.75% 6/12/50	110		25
Series 2007-8 Class A3, 5.9645% 8/12/49 (e)	1,094		1,185
Morgan Stanley Capital I Trust:
floater Series 2007-XLFA:
Class C, 0.426% 10/15/20 (a)(e)	728		612
Class MHRO, 0.956% 10/15/20 (a)(e)	171		55
Class MJPM, 1.266% 10/15/20 (a)(e)	9		7
Class MSTR, 0.966% 10/15/20 (a)(e)	95		30
Class NHRO, 1.156% 10/15/20 (a)(e)	263		58
Class NSTR, 1.116% 10/15/20 (a)(e)	87		19
sequential payer:
Series 2005-IQ9 Class A3, 4.54% 7/15/56	1,883		1,932
Series 2006-T23 Class A1, 5.682% 8/12/41	170		170
Series 2007-HQ11:
Class A1, 5.246% 2/12/44	54		55
Class A31, 5.439% 2/12/44 (e)	642		667
Series 2007-IQ13:
Class A1, 5.05% 3/15/44	118		119
Class A4, 5.364% 3/15/44	5,000		5,219
Series 2007-IQ14 Class A1, 5.38% 4/15/49	215		219
Series 2006-IQ11:
Class A3, 5.6957% 10/15/42 (e)	1,995		2,072
Class A4, 5.7317% 10/15/42 (e)	380		416
Series 2006-IQ12 Class B, 5.468% 12/15/43	1,268		824
Series 2006-T23 Class A3, 5.803% 8/12/41 (e)	647		691
Series 2007-HQ11 Class B, 5.538% 2/20/44 (e)	2,299		1,724
Series 2007-IQ14 Class A4, 5.692% 4/15/49 (e)	1,902		2,015
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Structured Asset Securities Corp. Series 1997-LLI Class D, 7.15% 10/12/34	$ 116		$ 119
TrizecHahn Office Properties Trust Series 2001-TZHA Class C4, 6.893% 5/15/16 (a)	789		795
Wachovia Bank Commercial Mortgage Trust:
floater:
Series 2006-WL7A Class E, 0.544% 9/15/21 (a)(e)	252		196
Series 2007-WHL8:
Class AP1, 0.9658% 6/15/20 (a)(e)	17		12
Class AP2, 1.0658% 6/15/20 (a)(e)	30		19
Class F, 0.7458% 6/15/20 (a)(e)	583		379
Class LXR1, 0.9658% 6/15/20 (a)(e)	156		131
Class LXR2, 1.0658% 6/15/20 (a)(e)	398		314
sequential payer:
Series 2003-C7 Class A1, 4.241% 10/15/35 (a)	1,613		1,624
Series 2003-C8 Class A3, 4.445% 11/15/35	5,522		5,597
Series 2006-C24 Class A2, 5.506% 3/15/45	26		26
Series 2006-C29 Class A3, 5.313% 11/15/48	3,368		3,522
Series 2007-C30:
Class A1, 5.031% 12/15/43	6		6
Class A3, 5.246% 12/15/43	1,089		1,120
Class A4, 5.305% 12/15/43	373		381
Class A5, 5.342% 12/15/43	1,357		1,416
Series 2007-C31:
Class A1, 5.14% 4/15/47	4		4
Class A4, 5.509% 4/15/47	7,866		8,282
Series 2007-C32:
Class A2, 5.7406% 6/15/49 (e)	9,622		10,029
Class A3, 5.7456% 6/15/49 (e)	7,152		7,624
Series 2003-C6 Class G, 5.125% 8/15/35 (a)(e)	602		595
Series 2004-C15:
Class 180A, 5.5782% 10/15/41 (a)(e)	975		936
Class 180B, 5.5782% 10/15/41 (a)(e)	444		417
Series 2005-C19 Class B, 4.892% 5/15/44	1,268		1,172
Series 2005-C22:
Class B, 5.3619% 12/15/44 (e)	2,812		2,515
Class F, 5.3619% 12/15/44 (a)(e)	2,115		1,197
Series 2006-C23 Class A5, 5.416% 1/15/45 (e)	7,395		7,891
Series 2006-C25 Class AM, 5.738% 5/15/43 (e)	664		696
Series 2006-C29 Class E, 5.516% 11/15/48 (e)	1,268		684
Series 2007-C30 Class C, 5.483% 12/15/43 (e)	3,804		1,969
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Wachovia Bank Commercial Mortgage Trust: - continued
Series 2007-C31 Class C, 5.6933% 4/15/47 (e)	$ 348		$ 179
Wachovia Bank Commercial Mortgage Trust pass-thru certificates sequential payer Series 2007-C33 Class A5, 5.8994% 2/15/51 (e)	839		905
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $253,285)		345,931
Municipal Securities - 0.4%
California Gen. Oblig.:
5.25% 4/1/14	5,000		5,219
7.55% 4/1/39	15,000		16,186
Illinois Gen. Oblig.:
Series 2010, 4.421% 1/1/15	7,460		7,437
4.511% 3/1/15 (c)	1,590		1,590
4.961% 3/1/16 (c)	2,830		2,833
5.365% 3/1/17 (c)	1,875		1,879
5.665% 3/1/18 (c)	3,500		3,507
5.877% 3/1/19 (c)	3,500		3,509
Univ. of California Revs. Series 2009 R, 5.77% 5/15/43	1,000		959
TOTAL MUNICIPAL SECURITIES (Cost $42,242)		43,119
Foreign Government and Government Agency Obligations - 1.1%
Bank of Nova Scotia:
2.05% 10/7/15	4,000		3,901
4.375% 1/13/21	1,000		996
Brazilian Federative Republic:
4.875% 1/22/21	4,045		4,106
5.625% 1/7/41	13,000		12,740
Canadian Government 2.375% 9/10/14	3,000		3,085
Chilean Republic 7.125% 1/11/12	3,016		3,173
Italian Republic:
2.125% 10/5/12	2,000		2,019
3.125% 1/26/15	16,000		16,024
Ontario Province:
1.375% 1/27/14	2,000		1,992
4% 10/7/19	15,000		15,319
4.1% 6/16/14	15,000		16,144
Foreign Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
Quebec Province 3.5% 7/29/20	$ 20,000		$ 19,347
United Mexican States:
5.125% 1/15/20	15,000		15,735
6.05% 1/11/40	6,000		6,150
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $118,551)		120,731
Supranational Obligations - 1.3%
African Development Bank:
1.75% 10/1/12	1,000		1,016
euro 3% 5/27/14	5,000		5,227
Asian Development Bank 2.75% 5/21/14	30,000		31,113
Corporacion Andina de Fomento:
5.2% 5/21/13	240		255
6.875% 3/15/12	390		408
8.125% 6/4/19	2,000		2,401
European Bank for Reconstruction and Development 1.25% 6/10/11	1,500		1,505
European Investment Bank:
1.625% 3/15/13	3,000		3,043
1.75% 9/14/12	4,000		4,069
2.875% 1/15/15	5,000		5,184
3.125% 6/4/14	72,000		75,597
Inter-American Development Bank:
euro 1.75% 10/22/12	5,000		5,084
3.875% 9/17/19	5,000		5,172
International Bank for Reconstruction & Development 1.75% 7/15/13	4,000		4,067
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $137,665)		144,141

Preferred Securities - 0.0%
	Principal Amount (000s)		Value (000s)
FINANCIALS - 0.0%
Diversified Financial Services - 0.0%
ING Groep NV 5.775% (e)	$ 1,042		$ 941
MUFG Capital Finance 1 Ltd. 6.346% (e)	1,725		1,776
			2,717
TOTAL PREFERRED SECURITIES (Cost $1,549)		2,717
Cash Equivalents - 5.7%
	Maturity Amount (000s)
Investments in repurchase agreements in a joint trading account at 0.21%, dated 2/28/11 due 3/1/11 (Collateralized by U.S. Government Obligations) # (Cost $620,677)	$ 620,681		620,677
TOTAL INVESTMENT PORTFOLIO - 105.1% (Cost $11,092,761)			11,496,310
NET OTHER ASSETS (LIABILITIES) - (5.1)%			(557,191)
NET ASSETS - 100%		$ 10,939,119

Legend

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $48,620,000 or 0.4% of net assets.

(b) Under the Temporary Liquidity Guarantee Program, the Federal Deposit Insurance Corporation guarantees principal and interest in the event of payment default or bankruptcy until the earlier of maturity date of the debt or until June 30, 2012. At the end of the period these securities amounted to $169,948,000 or 1.5% of net assets.

(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(d) A portion of the security is subject to a forward commitment to sell.

(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(f) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$620,677,000 due 3/01/11 at 0.21%
BNP Paribas Securities Corp.	$ 51,873
Bank of America NA	46,109
Barclays Capital, Inc.	25,677
Credit Agricole Securities (USA), Inc.	23,055
Deutsche Bank Securities, Inc.	26,454
Goldman, Sachs & Co.	5,764
HSBC Securities (USA), Inc.	69,166
ING Financial Markets LLC	42,651
J.P. Morgan Securities, Inc.	69,164
Merrill Lynch Government Securities, Inc.	20,749
Merrill Lynch, Pierce, Fenner & Smith, Inc.	31,831
Mizuho Securities USA, Inc.	126,801
RBC Capital Markets Corp.	5,764
Societe Generale, New York Branch	46,109
Wells Fargo Securities LLC	29,510
	$ 620,677

Other Information

The following is a summary of the inputs used, as of February 28, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
Corporate Bonds	$ 2,096,976	$ -	$ 2,096,976	$ -
U.S. Government and Government Agency Obligations	4,576,890	-	4,576,890	-
U.S. Government Agency - Mortgage Securities	3,490,145	-	3,490,145	-
Asset-Backed Securities	43,010	-	42,009	1,001
Collateralized Mortgage Obligations	11,973	-	11,973	-
Commercial Mortgage Securities	345,931	-	335,941	9,990
Municipal Securities	43,119	-	43,119	-
Foreign Government and Government Agency Obligations	120,731	-	120,731	-
Supranational Obligations	144,141	-	144,141	-
Preferred Securities	2,717	-	2,717	-
Cash Equivalents	620,677	-	620,677	-
Total Investments in Securities:	$ 11,496,310	$ -	$ 11,485,319	$ 10,991
Other Financial Instruments
Forward Commitments	$ (16)	$ -	$ (16)	$ -

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

(Amounts in thousands)
Investments in Securities:
Beginning Balance	$ 12,562
Total Realized Gain (Loss)	130
Total Unrealized Gain (Loss)	4,082
Cost of Purchases	-
Proceeds of Sales	(4,970)
Amortization/Accretion	485
Transfers in to Level 3	3,739
Transfers out of Level 3	(5,037)
Ending Balance	$ 10,991
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2011	$ 3,627

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
Assets
Investment in securities, at value (including repurchase agreements of $620,677) - See accompanying schedule: Unaffiliated issuers (cost $11,092,761)		$ 11,496,310
Commitment to sell securities on a delayed delivery basis	$ (2,125)
Receivable for securities sold on a delayed delivery basis	2,109	(16)
Receivable for investments sold, regular delivery		123,564
Receivable for fund shares sold		33,710
Interest receivable		67,222
Other receivables		40
Total assets		11,720,830
Liabilities
Payable for investments purchased Regular delivery	$ 219,922
Delayed delivery	537,535
Payable for fund shares redeemed	21,501
Distributions payable	523
Accrued management fee	451
Other affiliated payables	1,739
Other payables and accrued expenses	40
Total liabilities		781,711
Net Assets		$ 10,939,119
Net Assets consist of:
Paid in capital		$ 10,610,258
Undistributed net investment income		10,916
Accumulated undistributed net realized gain (loss) on investments		(85,588)
Net unrealized appreciation (depreciation) on investments		403,533
Net Assets		$ 10,939,119

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

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Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	February 28, 2011 (Unaudited)
U.S. Bond Index: Net Asset Value, offering price and redemption price per share ($10,480,009 ÷ 925,756 shares)		$ 11.32
Class F: Net Asset Value, offering price and redemption price per share ($459,110 ÷ 40,560 shares)		$ 11.32

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

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Financial Statements - continued

Statement of Operations

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)
Investment Income
Dividends		$ 85
Interest		184,578
Total income		184,663
Expenses
Management fee	$ 10,806
Transfer agent fees	7,831
Independent trustees' compensation	22
Miscellaneous	21
Total expenses before reductions	18,680
Expense reductions	(1,402)	17,278
Net investment income (loss)		167,385
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		46,922
Change in net unrealized appreciation (depreciation) on: Investment securities	(320,498)
Delayed delivery commitments	129
Total change in net unrealized appreciation (depreciation)		(320,369)
Net gain (loss)		(273,447)
Net increase (decrease) in net assets resulting from operations		$ (106,062)

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

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2011 (Unaudited)	Year ended August 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 167,385	$ 352,833
Net realized gain (loss)	46,922	152,062
Change in net unrealized appreciation (depreciation)	(320,369)	417,036
Net increase (decrease) in net assets resulting from operations	(106,062)	921,931
Distributions to shareholders from net investment income	(162,274)	(346,700)
Distributions to shareholders from net realized gain	(75,325)	-
Total distributions	(237,599)	(346,700)
Share transactions - net increase (decrease)	(169,052)	595,550
Total increase (decrease) in net assets	(512,713)	1,170,781
Net Assets
Beginning of period	11,451,832	10,281,051
End of period (including undistributed net investment income of $10,916 and undistributed net investment income of $5,805, respectively)	$ 10,939,119	$ 11,451,832

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

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Financial Highlights - U.S. Bond Index

	Six months ended February 28, 2011
	(Unaudited)	2010	2009	2008	2007	2006 F	2006 J
Selected Per-Share Data
Net asset value, beginning of period	$ 11.67	$ 11.05	$ 10.73	$ 10.76	$ 10.82	$ 10.87	$ 11.08
Income from Investment Operations
Net investment income (loss) D	.170	.373	.445	.503	.537	.266	.473
Net realized and unrealized gain (loss)	(.279)	.613	.325	(.012)	(.078)	(.067)	(.183)
Total from investment operations	(.109)	.986	.770	.491	.459	.199	.290
Distributions from net investment income	(.165)	(.366)	(.450)	(.521)	(.519)	(.249)	(.460)
Distributions from net realized gain	(.076)	-	-	-	-	-	(.040)
Total distributions	(.241)	(.366)	(.450)	(.521)	(.519)	(.249)	(.500)
Net asset value, end of period	$ 11.32	$ 11.67	$ 11.05	$ 10.73	$ 10.76	$ 10.82	$ 10.87
Total Return B, C	(.94)%	9.10%	7.39%	4.61%	4.31%	1.89%	2.67%
Ratios to Average Net Assets E,G
Expenses before reductions	.34% A	.36%	.45%	.48%	.49%	.50% A	.51%
Expenses net of fee waivers, if any	.31% A	.32%	.32%	.32%	.32%	.32% A	.32%
Expenses net of all reductions	.31% A	.32%	.32%	.32%	.31%	.31% A	.31%
Net investment income (loss)	3.00% A	3.32%	4.16%	4.64%	4.96%	4.94% A	4.31%
Supplemental Data
Net assets, end of period (in millions)	$ 10,480	$ 11,355	$ 10,281	$ 8,954	$ 7,687	$ 6,129	$ 5,784
Portfolio turnover rate I	127% A	165%	231% H	151%	174% H	82% A	108%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns would have been lower had certain expenses not been reduced during the periods shown. ^D Calculated based on average shares outstanding during the period. ^E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^F For the six month period ended August 31. The Fund changed its fiscal year from February 28 to August 31, effective August 31, 2006. ^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^H The portfolio turnover rate excludes liquidations and redemptions executed in-kind from Affiliated Central Funds. ^I Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^J For the period ended February 28.

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

Semiannual Report

Financial Highlights - Class F

	Six months ended February 28, 2011
	(Unaudited)	2010 E
Selected Per-Share Data
Net asset value, beginning of period	$ 11.67	$ 11.12
Income from Investment Operations
Net investment income (loss) D	.174	.359
Net realized and unrealized gain (loss)	(.276)	.542
Total from investment operations	(.102)	.901
Distributions from net investment income	(.172)	(.351)
Distributions from net realized gain	(.076)	-
Total distributions	(.248)	(.351)
Net asset value, end of period	$ 11.32	$ 11.67
Total Return B, C	(.88)%	8.26%
Ratios to Average Net Assets F
Expenses before reductions	.19% A	.22% A
Expenses net of fee waivers, if any	.19% A	.22% A
Expenses net of all reductions	.19% A	.22% A
Net investment income (loss)	3.12% A	3.42% A
Supplemental Data
Net assets, end of period (in millions)	$ 459	$ 97
Portfolio turnover rate	127% A	165%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E For the period September 24, 2009 (commencement of sale of shares) to August 31, 2010.

^F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2011 (Unaudited)

(Amounts in thousands except ratios)

1. Organization.

Fidelity U.S. Bond Index Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.

The Fund offers U.S. Bond Index and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

In January 2011, the Board of Trustees of the Fund approved the creation of additional classes of shares. The Fund will commence sale of shares of Fidelity Advantage Class, Fidelity Institutional Class and Fidelity Institutional Advantage Class in May 2011. In March 2011, the Board of Trustees approved a change in the name of Fidelity U.S. Bond Index Fund to Spartan U.S. Bond Index Fund effective April 2011.

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 have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Security Valuation - continued

The Fund 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 (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of February 28, 2011 for the Fund's investments, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, municipal securities, preferred securities, supranational obligations and U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally

Semiannual Report

2. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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 identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to swap agreements, prior period premium and discount on debt securities, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation	$ 378,000
Gross unrealized depreciation	(61,809)
Net unrealized appreciation (depreciation) on securities and other investments	$ 316,191
Tax cost	$ 11,180,119

3. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Semiannual Report

3. Operating Policies - continued

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $326,478 and $237,540, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. Effective February 1, 2011, an amendment to the management contract was approved by the Board of Trustees reducing the management fee from .22% to .05% of the Fund's average net assets. Under the management contract, FMR pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. For the period, the total annual management fee rate was .19% of average net assets.

Effective February 1, 2011, the Board of Trustees approved a new expense contract for U.S. Bond Index limiting the total expenses of the class to .22%, with certain exceptions.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. Effective February 1, 2011, U.S. Bond Index pays transfer agent fees at an annual rate of .17% of average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Prior to February 1, 2011, FIIOC received account fees and asset-based fees that varied according to account size and type of account of the shareholders of U.S. Bond Index.

FIIOC receives no fees for providing transfer agency services to Class F.

For the period, the total transfer agent fees paid by each applicable class were as follows:

	Amount	% of Average Net Assets*
U.S. Bond Index	$ 7,831	.14

* Annualized

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Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

6. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $3.75 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $21 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

7. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in cash equivalents. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $45.

8. Expense Reductions.

Prior to February 1, 2011, FMR had contractually agreed to waive expenses of U.S. Bond Index to the extent annual operating expenses exceeded .32% of average net assets, with certain exceptions. During the period this waiver reduced U.S. Bond Index's expenses by $1,402.

Semiannual Report

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2011	Year ended August 31, 2010 A
From net investment income
U.S. Bond Index	$ 158,374	$ 345,387
Class F	3,900	1,313
Total	$ 162,274	$ 346,700
From net realized gain
U.S. Bond Index	$ 73,706	$ -
Class F	1,619	-
Total	$ 75,325	$ -

^A Distributions for Class F are for the period September 24, 2009 (commencement of sale of shares) to August 31, 2010.

10. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 28, 2011	Year ended August 31, 2010 A	Six months ended February 28, 2011	Year ended August 31, 2010 A
U.S. Bond Index
Shares sold	136,166	374,729	$ 1,560,536	$ 4,216,268
Reinvestment of distributions	19,804	29,929	227,204	337,209
Shares redeemed	(203,477)	(361,514)	(2,324,669)	(4,051,189)
Net increase (decrease)	(47,507)	43,144	$ (536,929)	$ 502,288
Class F
Shares sold	32,756	9,818	$ 373,740	$ 110,320
Reinvestment of distributions	482	115	5,519	1,313
Shares redeemed	(996)	(1,615)	(11,382)	(18,371)
Net increase (decrease)	32,242	8,318	$ 367,877	$ 93,262

^A Share transactions for Class F are for the period September 24, 2009 (commencement of sale of shares) to August 31,2010.

11. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

11. Other - continued

exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity U.S. Bond Index Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.

At its September 2010 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests of the fund and its shareholders and that the compensation to be received by Fidelity under the management contract is fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by Fidelity's competitors, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In addition, the Board considered the trading resources that are an integral part of the fixed-income portfolio management investment process.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and restructuring and broadening the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) launching Class F of certain funds as a lower-fee class available to Freedom K and Freedom Index Funds; (iv) lowering the initial investment minimums and ongoing balance requirements for Real Estate High Income Fund; (v) eliminating subsequent purchase minimums for all funds and adding a waiver of the investment minimum requirement for new accounts opened with the proceeds of a systematic withdrawal plan; (vi) eliminating the withdrawal minimum and maximum limits for systematic withdrawals from Advisor funds; (vii) expanding sales load waivers on Class A shares for Destiny Planholders and expanding Institutional Class eligibility for Class O Destiny Planholders; and (viii) changing certain Class A and Class T sales charge structures to further align them with industry practices.

Semiannual Report

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for the retail class, as well as the fund's relative investment performance for the retail class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2009, the cumulative total returns of the retail class of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. (Class F of the fund had less than one year of performance as of December 31, 2009.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the retail class of the fund.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity U.S. Bond Index Fund

The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the fund was in the fourth quartile for the one-year period, the third quartile for the three-year period, and the second quartile for the five-year period. The Board also noted that the investment performance of the fund was lower than its benchmark for the three- and five-year periods, although the one-year cumulative total return of the retail class compared favorably to its benchmark. The Board considered that the performance of the fund and benchmark may vary due to valuation differences or due to fees and transaction costs, which apply to the fund but not to the benchmark. The Board discussed with FMR actions that have been taken by FMR to improve the fund's more recent disappointing performance relative to its peer group. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in recent years, the Board concluded that the nature, extent, and quality of investment management and support services and of shareholder and administrative services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Semiannual Report

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and is narrower than the Lipper peer group used by the Board for performance comparisons. The Board considered that, for the 2006 through 2009 management fee comparisons shown in the chart below, FMR created a mapped group comprising only those funds that Lipper identifies as "pure index" funds, and that FMR considers this smaller universe of funds to be a more meaningful comparison than a universe comprising primarily actively managed funds. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 48% means that 52% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board. For a more meaningful comparison of management fees, the fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for "fund-level" non-management expenses (including pricing and bookkeeping fees and fees paid to non-affiliated custodians) from the fund's management fee. In this regard, the Board realizes that net management fees can vary from year to year because of differences in "fund level" non-management expenses. The Board noted, however, that FMR does not pay transfer agent fees or other "class-level" expenses under the fund's management contract.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity U.S. Bond Index Fund

The Board noted that the fund's hypothetical net management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2009.

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2009) to the fund's management contract that reduced the fund's management fee rate from 32 basis points to 22 basis points. The Board considered that the chart reflects the fund's lower management fee for 2009, as if the lower rate were in effect for the entire year.

Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expenses. In its review of each class's total expenses, the Board considered the fund's hypothetical net management fee as well as the fund's gross management fee. The Board also considered other "fund-level" expenses, such as pricing and bookkeeping fees and custodial, legal, and audit fees. The Board also considered other "class-level" expenses, such as transfer agent fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

Semiannual Report

The Board noted that the total expenses of each class ranked above its competitive median for the period.

The Board considered that FMR contractually caps total expenses for the retail class of the fund at 32 basis points. The fees and expenses payable under this contractual arrangement may not be increased without the approval of the Board.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. In March 2010, the Board created an ad hoc joint committee with the board of other Fidelity funds (the Committee) to review and compare Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Based on its review of total expenses and fees charged to other Fidelity clients, the Board concluded that the total expenses of each class of the fund were reasonable, although in all cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered, including the findings of the Committee.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board has also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and were satisfied that the profitability was not excessive in the circumstances.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board and the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, considering the findings of the Economies of Scale Committee, that any potential economies of scale are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology and profitability trends for certain funds; (iii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iv) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (v) the compensation paid by FMR to fund sub-advisers on behalf of the Fidelity funds; (vi) Fidelity's fee structures and rationale for recommending different fees among different categories of funds and classes, as well as Fidelity's voluntary waiver of fees to maintain minimum yields for certain funds and classes; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; and (viii) explanations regarding the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes or to achieve further economies of scale.

Semiannual Report

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Semiannual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.

By Phone

Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

(phone_graphic)

Fidelity Workplace
Investing
1-800-835-5092

By PC

Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.

(computer_graphic)

Fidelity's Web Site
www.401k.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.

Semiannual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments
Money Management, Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA 

Fidelity Service Company, Inc.

Boston, MA 

Custodian

The Bank of New York Mellon

New York, NY

UBI-F-SANN-0411
1.899041.101

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Not applicable.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Fixed-Income Trust's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Fixed-Income Trust's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 12. Exhibits

(a)	(1)	Not applicable.
(a)	(2)	Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)	(3)	Not applicable.
(b)		Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Fixed-Income Trust

By:	/s/John R. Hebble
	John R. Hebble
	President and Treasurer
Date:	May 4, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/John R. Hebble
	John R. Hebble
	President and Treasurer
Date:	May 4, 2011

By:	/s/Christine Reynolds
	Christine Reynolds
	Chief Financial Officer
Date:	May 4, 2011