N-CSR 1 main.htm

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)

Eric D. Roiter, 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:	August 31, 2007

Item 1. Reports to Stockholders

Fidelity®

Intermediate Bond

Fund

Annual Report

August 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Notes to Shareholders	<Click Here>	An explanation of the changes to the fund.
Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook
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>
Trustees and Officers	<Click Here>
Distributions	<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 (search for "proxy voting guidelines") 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.

Annual Report

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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Notes to Shareholders:

As discussed in prior shareholder reports, the fund changed its investment approach in the way it invests in the investment-grade debt market, seeking exposure to various types of securities by investing in central funds as well as investing directly in individual investment-grade securities. Central funds are Fidelity mutual funds used by this fund and other Fidelity funds as an investment vehicle to gain pooled exposure to a particular core market sector, such as corporate bonds or mortgage-backed securities. Instead of multiple funds each investing in investment-grade debt securities individually, they can now take advantage of consolidating investments in a single, larger pool of investment-grade debt by investing directly in central funds. Shares of the central funds are offered only to other Fidelity mutual funds and accounts; investors cannot directly invest in them.

It's important to point out that investing in central funds does not impact the fund's investment objective or risk profile, only the mechanics of how we manage its investment portfolio. The portfolio managers continue to be responsible for choosing appropriate investments for their funds, whether they elect to purchase shares of a central fund or individual securities. Fidelity does not charge any additional management fees for central funds.

Investing in central funds does change the way this report presents the fund's holdings. The Investments section continues to list direct investments of the fund, including each central fund. However, many of the individual investment-grade debt securities previously held by the fund were transferred to the central funds, so they are no longer directly held and thus not listed. The financial statements and a complete schedule of portfolio holdings for each of the fixed-income central funds are available upon request or at the SEC's web site at www.sec.gov.

Annual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Many stock and bond markets around the world have been unsettled of late; however, volatility can often lead to opportunity for patient investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical 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 are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. 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 investment 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 unconstructive "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 over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

Average annual total returns reflect the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended August 31, 2007	Past 1 year	Past 5 years	Past 10 years
Fidelity® Intermediate Bond Fund	3.63%	3.85%	5.49%

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity® Intermediate Bond Fund on August 31, 1997. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Intermediate U.S. Government/Credit Index performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Ford O'Neil, Portfolio Manager of Fidelity® Intermediate Bond Fund

A subprime mortgage loan crisis and an emerging credit crunch contributed to subpar performance for some sectors of the investment-grade bond market during the 12-month period ending August 31, 2007. While returns for high-grade debt were fairly solid overall, they also were tempered to an extent by the Federal Reserve Board's decision not to lower interest rates as bond investors had hoped. The Lehman Brothers® U.S. Aggregate Index - a performance gauge of the taxable, high-quality debt market - gained 5.26%. Within the index, Treasuries - the bond market's highest-quality debt instrument - fared best, as many investors fled riskier fixed-income securities. The asset-backed category - home to volatile subprime mortgages, as well as credit card debt and auto loans - had the weakest performance.

During the period, the fund gained 3.63% and the Lehman Brothers Intermediate U.S. Government/Credit Index rose 5.54%. By way of a refresher, I hold securities both directly and indirectly through Fidelity fixed-income central funds, available only to other Fidelity funds. They allow me to gain exposure to particular segments of the bond market. I also invested in Fidelity Ultra-Short Central Fund, a diversified pool of short-term assets. As I address fund performance, I will be doing so by looking at the portfolio as a whole, combining my direct investments with those of the central funds. Turning to fund performance, sector selection proved to be the biggest detractor, fueled by a significant underweighting in U.S. Treasury and agency securities and sizable out-of-benchmark investments in higher-quality, higher-yielding securities such as commercial mortgage-backed and asset-backed bonds. While Treasuries and agencies were bolstered by a global flight to quality as the subprime mortgage market meltdown and resulting credit contagion forced a repricing of risk, securitized products were hurt by it. Among securitized products, our exposure to subprime mortgage securities - mainly classified in this report as asset-backed securities - were the most detrimental to our absolute and relative returns. An out-of-index exposure to commercial mortgage-backed securities also worked against us. They suffered in response to concerns that the commerical property makert could be vulnerable to lax lending standards. I believe my choices regarding yield-curve positioning - meaning how I allocated the fund's investments across bonds with various maturities - generally worked in our favor. Security selection within corporates also helped, with particularly good gains from holdings in the real estate investment trust and communications segments.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Annual 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 (March 1, 2007 to August 31, 2007).

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.

Annual Report

	Beginning Account Value March 1, 2007	Ending Account Value August 31, 2007	Expenses Paid During Period* March 1, 2007 to August 31, 2007
Actual	$ 1,000.00	$ 1,003.40	$ 2.27
Hypothetical (5% return per year before expenses)	$ 1,000.00	$ 1,022.94	$ 2.29

* Expenses are equal to the Fund's annualized expense ratio of .45%; multiplied by the average account value over the period, multiplied by 184/365 (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.

Annual Report

Investment Changes

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 Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of August 31, 2007		As of February 28, 2007
	U.S. Government and U.S. Government Agency Obligations 44.0%		U.S. Government and U.S. Government Agency Obligations 39.9%
	AAA 16.3%		AAA 18.0%
	AA 7.5%		AA 6.9%
	A 7.1%		A 9.4%
	BBB 19.8%		BBB 19.8%
	BB and Below 4.3%		BB and Below 3.3%
	Not Rated 0.5%		Not Rated 1.0%
	Short-Term Investments and Net Other Assets 0.5%		Short-Term Investments and Net Other Assets 1.7%

We have used ratings from Moody's® Investors Services, 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 downgrades.

Weighted Average Maturity as of August 31, 2007
		6 months ago
Years	3.8	4.2

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of August 31, 2007
		6 months ago
Years	3.7	3.5

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-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.

Asset Allocation (% of fund's net assets)
As of August 31, 2007*			As of February 28, 2007**
	Corporate Bonds 29.5%			Corporate Bonds 29.8%
	U.S. Government and U.S. Government Agency Obligations 44.0%			U.S. Government and U.S. Government Agency Obligations 39.9%
	Asset-Backed Securities 10.9%			Asset-Backed Securities 13.2%
	CMOs and Other Mortgage Related Securities 14.3%			CMOs and Other Mortgage Related Securities 14.5%
	Other Investments 0.8%			Other Investments 0.9%
	Short-Term Investments and Net Other Assets 0.5%			Short-Term Investments and Net Other Assets 1.7%
* Foreign investments		9.6%	** Foreign investments		9.3%
* Futures and Swaps		18.0%	** Futures and Swaps		16.5%

Annual Report

Investments August 31, 2007

Showing Percentage of Net Assets

Nonconvertible Bonds - 2.4%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 0.2%
Media - 0.2%
Time Warner Cable, Inc. 5.85% 5/1/17 (c)	$ 6,815		$ 6,661
Univision Communications, Inc. 3.875% 10/15/08	8,635		8,311
			14,972
CONSUMER STAPLES - 0.3%
Food & Staples Retailing - 0.1%
CVS Caremark Corp. 6.302% 6/1/37 (h)	13,010		12,567
Food Products - 0.1%
Kraft Foods, Inc. 6% 2/11/13	7,335		7,483
Tobacco - 0.1%
Reynolds American, Inc. 7.25% 6/15/37	8,210		8,321
TOTAL CONSUMER STAPLES			28,371
ENERGY - 0.3%
Oil, Gas & Consumable Fuels - 0.3%
Gazstream SA 5.625% 7/22/13 (c)	11,259		11,006
Kinder Morgan Energy Partners LP 6.95% 1/15/38	1,190		1,197
Nexen, Inc. 6.4% 5/15/37	5,370		5,224
Talisman Energy, Inc. yankee 6.25% 2/1/38	3,365		3,161
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	6,130		6,084
Valero Energy Corp. 6.625% 6/15/37	2,230		2,249
			28,921
FINANCIALS - 0.5%
Consumer Finance - 0.2%
SLM Corp.:
4.5% 7/26/10	2,935		2,716
5.5% 7/27/09 (h)	2,783		2,670
5.52% 7/26/10 (h)	10,585		9,974
			15,360
Diversified Financial Services - 0.1%
ZFS Finance USA Trust V 6.5% 5/9/67 (c)(h)	4,410		4,126
Insurance - 0.1%
Pennsylvania Mutual Life Insurance Co. 6.65% 6/15/34 (c)	11,200		11,227
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Investment Trusts - 0.1%
Archstone-Smith Operating Trust 5.25% 5/1/15	$ 3,320		$ 3,203
UDR, Inc. 5.5% 4/1/14	7,495		7,312
			10,515
TOTAL FINANCIALS			41,228
INDUSTRIALS - 0.5%
Aerospace & Defense - 0.2%
Bombardier, Inc. 6.3% 5/1/14 (c)	12,815		12,238
Airlines - 0.3%
American Airlines, Inc. pass thru trust certificates 7.324% 4/15/11	2,000		1,965
Delta Air Lines, Inc. pass thru trust certificates 7.57% 11/18/10	10,765		10,900
United Air Lines, Inc. pass-thru trust certificates:
7.032% 4/1/12	4,065		4,083
7.186% 10/1/12	10,072		10,173
			27,121
TOTAL INDUSTRIALS			39,359
UTILITIES - 0.6%
Electric Utilities - 0.3%
Commonwealth Edison Co. 5.4% 12/15/11	4,609		4,581
Nevada Power Co. 6.5% 5/15/18	20,260		20,260
			24,841
Independent Power Producers & Energy Traders - 0.1%
TXU Corp. 5.55% 11/15/14	8,680		7,118
Multi-Utilities - 0.2%
CMS Energy Corp. 6.55% 7/17/17	9,075		8,698
TECO Energy, Inc. 7% 5/1/12	7,703		7,899
			16,597
TOTAL UTILITIES			48,556
TOTAL NONCONVERTIBLE BONDS (Cost $203,438)		201,407
U.S. Government and Government Agency Obligations - 26.7%
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - 4.7%
Fannie Mae:
4.75% 12/15/10	$ 16,545		$ 16,554
5% 2/16/12 (b)	45,000		45,401
6.625% 9/15/09	28,675		29,730
Federal Home Loan Bank 5.375% 8/19/11	22,735		23,236
Freddie Mac:
4.75% 3/5/12 (b)	80,000		79,886
5% 1/30/14	23,200		23,315
5.25% 7/18/11 (b)	167,319		170,339
U.S. Department of Housing and Urban Development Government guaranteed participation certificates Series 1996-A, 7.66% 8/1/15	3,130		3,141
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			391,602
U.S. Treasury Inflation Protected Obligations - 7.0%
U.S. Treasury Inflation-Indexed Notes:
0.875% 4/15/10	115,472		110,438
2% 1/15/14 (e)	280,980		274,383
2% 7/15/14 (b)(e)	165,791		162,047
2.375% 4/15/11 (e)	30,440		30,382
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			577,250
U.S. Treasury Obligations - 15.0%
U.S. Treasury Notes:
4.125% 8/31/12 (d)	28,848		28,684
4.25% 8/15/13 (b)(e)	102,032		101,689
4.25% 11/15/13 (e)	800		797
4.25% 8/15/14 (b)(e)	132,016		130,995
4.5% 4/30/12 (b)(d)	125,000		126,270
4.625% 7/31/12 (d)	256,755		260,885
4.75% 1/31/12 (b)	103,000		105,012
4.75% 5/15/14 (b)(e)	478,041		488,874
TOTAL U.S. TREASURY OBLIGATIONS			1,243,206
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,209,088)		2,212,058
U.S. Government Agency - Mortgage Securities - 10.5%
	Principal Amount (000s)		Value (000s)
Fannie Mae - 6.9%
3.72% 10/1/33 (h)	$ 836		$ 819
3.75% 1/1/34 (h)	770		760
3.754% 10/1/33 (h)	777		773
3.785% 6/1/34 (h)	3,918		3,852
3.823% 4/1/33 (h)	2,265		2,264
3.845% 10/1/33 (h)	19,425		19,257
3.934% 5/1/33 (h)	250		247
4% 7/1/18	12,752		11,980
4% 10/1/18 (h)	563		555
4.025% 4/1/33 (h)	210		210
4.067% 2/1/35 (h)	358		357
4.098% 1/1/35 (h)	1,255		1,250
4.167% 1/1/35 (h)	1,777		1,748
4.249% 1/1/34 (h)	2,125		2,106
4.25% 2/1/35 (h)	837		825
4.26% 5/1/35 (h)	846		844
4.27% 10/1/33 (h)	334		331
4.285% 3/1/33 (h)	826		825
4.288% 8/1/33 (h)	1,429		1,431
4.295% 3/1/35 (h)	703		707
4.296% 3/1/33 (h)	373		367
4.297% 3/1/33 (h)	419		412
4.303% 6/1/33 (h)	430		430
4.304% 4/1/35 (h)	416		415
4.343% 1/1/35 (h)	918		906
4.356% 2/1/34 (h)	1,669		1,655
4.391% 2/1/35 (h)	1,356		1,338
4.413% 5/1/35 (h)	714		711
4.417% 12/1/33 (h)	34,286		33,845
4.43% 5/1/35 (h)	2,257		2,250
4.434% 3/1/35 (h)	1,266		1,250
4.452% 8/1/34 (h)	2,354		2,337
4.481% 1/1/35 (h)	934		926
4.487% 3/1/35 (h)	2,691		2,658
4.5% 4/1/20	3,884		3,750
4.502% 10/1/35 (h)	319		317
4.503% 2/1/35 (h)	4,207		4,220
4.506% 2/1/35 (h)	665		664
4.509% 3/1/35 (h)	2,639		2,609
4.513% 2/1/35 (h)	11,798		11,725
4.517% 2/1/35 (h)	352		353
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
4.528% 7/1/35 (h)	$ 2,665		$ 2,642
4.57% 11/1/34 (h)	2,338		2,317
4.57% 2/1/35 (h)	8,257		8,171
4.57% 7/1/35 (h)	2,977		2,981
4.575% 2/1/35 (h)	2,316		2,294
4.578% 9/1/34 (h)	2,244		2,226
4.586% 1/1/35 (h)	4,209		4,171
4.613% 7/1/34 (h)	25,768		25,543
4.657% 3/1/35 (h)	5,471		5,493
4.668% 11/1/34 (h)	2,706		2,687
4.7% 10/1/34 (h)	2,714		2,696
4.708% 12/1/34 (h)	1,784		1,772
4.709% 3/1/35 (h)	259		261
4.717% 7/1/34 (h)	2,217		2,206
4.776% 12/1/34 (h)	754		749
4.799% 6/1/35 (h)	3,502		3,488
4.807% 11/1/34 (h)	2,293		2,280
4.808% 2/1/33 (h)	1,130		1,138
4.856% 10/1/34 (h)	9,266		9,225
4.87% 5/1/33 (h)	36		36
4.884% 10/1/35 (h)	1,691		1,674
4.945% 8/1/34 (h)	7,333		7,315
5% 12/1/17 to 8/1/18	52,905		51,991
5.016% 7/1/34 (h)	363		363
5.045% 5/1/35 (h)	4,387		4,400
5.062% 8/1/34 (h)	609		610
5.07% 9/1/34 (h)	6,530		6,521
5.079% 9/1/34 (h)	758		758
5.112% 1/1/36 (h)	6,276		6,271
5.138% 3/1/35 (h)	350		350
5.144% 5/1/35 (h)	2,751		2,746
5.157% 5/1/35 (h)	8,241		8,231
5.173% 6/1/35 (h)	3,129		3,140
5.176% 8/1/33 (h)	1,057		1,058
5.197% 5/1/35 (h)	8,894		8,889
5.22% 4/1/36 (h)	9,318		9,286
5.261% 11/1/36 (h)	2,929		2,935
5.297% 7/1/35 (h)	406		407
5.317% 12/1/34 (h)	1,070		1,072
5.37% 2/1/36 (h)	1,066		1,066
5.475% 2/1/36 (h)	14,194		14,246
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
5.5% 3/1/14 to 12/1/33	$ 92,510		$ 92,427
5.532% 11/1/36 (h)	5,958		5,980
5.558% 9/1/36 (h)	4,685		4,707
5.602% 1/1/36 (h)	4,186		4,212
5.651% 7/1/37 (h)	2,478		2,493
5.7% 9/1/35 (h)	3,854		3,881
5.795% 2/1/36 (h)	2,167		2,186
5.815% 1/1/36 (h)	2,796		2,814
5.819% 7/1/46 (d)(h)	24,729		24,941
5.829% 3/1/36 (h)	8,880		8,958
6.061% 4/1/36 (h)	1,763		1,784
6.256% 6/1/36 (h)	872		880
6.319% 4/1/36 (h)	1,563		1,588
6.5% 4/1/13 to 3/1/35	62,325		63,722
6.575% 9/1/36 (h)	11,722		11,901
7% 7/1/25 to 2/1/32	108		112
7.5% 8/1/13 to 8/1/29	1,217		1,289
12.5% 4/1/15 to 8/1/15	23		26
TOTAL FANNIE MAE			573,885
Freddie Mac - 1.5%
4.064% 1/1/35 (h)	872		872
4.173% 1/1/34 (h)	8,812		8,704
4.289% 3/1/35 (h)	936		938
4.292% 2/1/35 (h)	2,007		2,012
4.307% 12/1/34 (h)	1,186		1,166
4.342% 3/1/35 (h)	1,892		1,860
4.375% 2/1/35 (h)	2,248		2,211
4.423% 3/1/35 (h)	1,181		1,161
4.423% 6/1/35 (h)	1,438		1,423
4.426% 2/1/34 (h)	972		962
4.455% 3/1/35 (h)	1,210		1,191
4.539% 2/1/35 (h)	2,047		2,017
4.773% 10/1/34 (h)	3,272		3,243
4.807% 3/1/33 (h)	356		358
4.822% 9/1/34 (h)	1,596		1,583
4.99% 4/1/35 (h)	5,047		5,052
5.131% 4/1/35 (h)	5,111		5,089
5.199% 3/1/36 (h)	1,688		1,684
5.435% 11/1/35 (h)	2,186		2,186
5.534% 1/1/36 (h)	6,625		6,633
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
5.787% 10/1/35 (h)	$ 1,610		$ 1,617
5.877% 6/1/36 (h)	1,979		1,991
6.044% 6/1/36 (h)	1,935		1,951
6.049% 7/1/37 (h)	10,055		10,127
6.089% 4/1/36 (h)	3,265		3,290
6.1% 6/1/36 (h)	1,827		1,846
6.492% 10/1/36 (h)	11,559		11,702
6.703% 8/1/36 (h)	1,888		1,917
6.744% 10/1/36 (h)	10,937		11,081
6.747% 1/1/37 (h)	15,295		15,548
6.853% 10/1/36 (h)	15,128		15,391
7% 4/1/08 to 7/1/13	640		652
7.5% 12/1/07 to 1/1/33	1,189		1,234
8.5% 6/1/13	3		3
TOTAL FREDDIE MAC			128,695
Government National Mortgage Association - 2.1%
4.25% 7/20/34 (h)	1,604		1,597
4.75% 1/20/34 (h)	4,818		4,800
6.5% 9/1/37 (d)	145,000		147,766
7% 1/15/28 to 11/15/32	12,424		12,905
7.5% 3/15/28	10		10
8% 7/15/17 to 8/15/30	3,566		3,781
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			170,859
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $877,544)		873,439
Asset-Backed Securities - 0.6%

Advanta Business Card Master Trust Series 2007-D1 Class D, 6.9375% 1/22/13 (c)(h)	7,290		7,156
AmeriCredit Automobile Receivables Trust Series 2006-1 Class E1, 6.62% 5/6/13 (c)	3,815		3,052
Bear Stearns Asset Backed Securities Trust Series 2005-HE2 Class M2, 6.255% 2/25/35 (h)	3,010		2,083
Capital Auto Receivables Asset Trust Series 2006-SN1A:
Class B, 5.5% 4/20/10 (c)	1,230		1,226
Class C, 5.77% 5/20/10 (c)	1,180		1,172
Class D, 6.15% 4/20/11 (c)	2,010		2,009
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Carrington Mortgage Loan Trust Series 2006-NC3 Class M10, 7.505% 8/25/36 (c)(h)	$ 1,080		$ 236
DB Master Finance LLC Series 2006-1 Class M1, 8.285% 6/20/31 (c)	3,665		3,767
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (c)	4,280		4,259
Series 2006-C Class D, 6.89% 5/15/13 (c)	2,945		2,930
Series 2007-A Class D, 7.05% 12/15/13 (c)	1,610		1,530
GS Auto Loan Trust Series 2006-1 Class D, 6.25% 1/15/14 (c)	5,180		5,068
GSAMP Trust Series 2004-AR1 Class B4, 5% 6/25/34 (c)(h)	1,510		755
Merna Reinsurance Ltd. Series 2007-1 Class B, 7.11% 6/30/12 (c)(h)	8,830		8,830
Structured Asset Securities Corp. Series 2006-BC1 Class B1, 8.005% 3/25/36 (c)(h)	3,500		536
Terwin Mortgage Trust Series 2003-4HE Class A1, 5.935% 9/25/34 (h)	246		233
Wachovia Auto Loan Trust Series 2006-2A Class E, 7.05% 5/20/14 (c)	4,820		4,635
WaMu Asset-Backed Certificates Series 2006-HE5 Class B1, 8.005% 10/25/36 (c)(h)	4,156		831
TOTAL ASSET-BACKED SECURITIES (Cost $59,033)		50,308
Collateralized Mortgage Obligations - 3.0%

Private Sponsor - 0.3%
Chase Mortgage Finance Trust Series 2007-A1 Class 1A5, 4.3588% 2/25/37 (h)	893		880
Countrywide Home Loans pass-thru certificates Series 2007-HY5 Class 3A1, 6.2335% 9/25/37 (h)	6,680		6,580
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 4.6454% 11/25/34 (h)	3,764		3,698
JPMorgan Mortgage Trust Series 2007-A1 Class 3A2, 5.0072% 7/25/35 (h)	3,936		3,876
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-CB1:
Class B4, 7% 6/10/35 (c)(h)	3,475		3,492
Class B5, 7.6% 6/10/35 (c)(h)	2,373		2,385
Class B6, 8.1% 6/10/35 (c)(h)	1,406		1,420
Structured Asset Securities Corp. floater Series 2006-BC5 Class B, 8.005% 12/25/36 (c)(h)	3,280		1,168
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Wells Fargo Mortgage Backed Securities Trust:
Series 2005-AR12 Class 2A6, 4.3186% 7/25/35 (h)	$ 1,160		$ 1,131
Series 2005-AR3 Class 2A1, 4.187% 3/25/35 (h)	2,284		2,240
TOTAL PRIVATE SPONSOR			26,870
U.S. Government Agency - 2.7%
Fannie Mae subordinate REMIC pass-thru certificates:
planned amortization class:
Series 2001-68 Class QZ, 5.5% 12/25/16	6,176		6,188
Series 2002-73 Class QC, 5.5% 1/25/26	2,416		2,414
Series 2002-9 Class PC, 6% 3/25/17	1,249		1,262
Series 2003-84 Class GC, 4.5% 5/25/15	7,965		7,916
Series 2005-67 Class HD, 5.5% 12/25/30	14,745		14,818
Series 2006-4 Class PB, 6% 9/25/35	14,914		15,102
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	4,257		4,259
Series 2004-3 Class BA, 4% 7/25/17	737		712
Series 2004-45 Class AV, 4.5% 10/25/22	5,599		5,576
Series 2004-86 Class KC, 4.5% 5/25/19	3,198		3,124
Series 2004-91 Class AH, 4.5% 5/25/29	6,447		6,297
Series 2005-41 Class LA, 5.5% 5/25/35	11,181		11,157
Freddie Mac:
planned amortization class:
Series 2104 Class PG, 6% 12/15/28	6,860		6,982
Series 2356 Class GD, 6% 9/15/16	4,718		4,797
Series 3033 Class UD, 5.5% 10/15/30	5,585		5,624
sequential payer Series 2516 Class AH, 5% 1/15/16	2,570		2,571
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class:
Series 2363 Class PF, 6% 9/15/16	6,278		6,382
Series 2425 Class JH, 6% 3/15/17	5,431		5,527
Series 2489 Class PD, 6% 2/15/31	433		433
Series 2543 Class QT, 5.5% 4/15/22	10,607		10,572
Series 2702 Class WB, 5% 4/15/17	13,170		13,169
Series 2952 Class EC, 5.5% 11/15/28	14,305		14,385
Series 3018 Class UD, 5.5% 9/15/30	9,030		9,089
Series 3049 Class DB, 5.5% 6/15/31	12,936		13,026
Series 3117 Class PC, 5% 6/15/31	24,000		23,782
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Freddie Mac Multi-class participation certificates guaranteed: - continued
sequential payer:
Series 2528 Class HN, 5% 11/15/17	$ 8,075		$ 7,933
Series 2777 Class AB, 4.5% 6/15/29	14,962		14,608
Series 2809 Class UA, 4% 12/15/14	3,287		3,257
TOTAL U.S. GOVERNMENT AGENCY			220,962
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $248,547)		247,832
Commercial Mortgage Securities - 0.7%

Bear Stearns Commercial Mortgage Securities, Inc. Series 2003-T12 Class X2, 0.5582% 8/13/39 (c)(h)(j)	97,262		1,566
Citigroup/Deutsche Bank Commercial Mortgage Trust sequential payer Series 2006-CD3 Class A3, 5.607% 10/15/48	15,000		14,974
Credit Suisse Commercial Mortgage Trust Series 2007-C2 Class A1, 5.269% 1/15/49	3,096		3,081
Credit Suisse First Boston Mortgage Securities Corp. Series 2004-C1 Class ASP, 0.7916% 1/15/37 (c)(h)(j)	84,185		1,985
DLJ Commercial Mortgage Corp. sequential payer Series 1999-CG1 Class A1B, 6.46% 3/10/32	19,166		19,346
Ginnie Mae guaranteed Multi-family pass-thru securities sequential payer Series 2002-35 Class C, 5.8739% 10/16/23 (h)	579		585
Ginnie Mae guaranteed REMIC pass-thru securities sequential payer Series 2003-47 Class C, 4.227% 10/16/27	14,006		13,728
GMAC Commercial Mortgage Securities, Inc. Series 2004-C3 Class X2, 0.6778% 12/10/41 (h)(j)	61,017		1,181
LB-UBS Commercial Mortgage Trust:
sequential payer Series 2006-C7 Class A1, 5.279% 11/15/38	1,893		1,890
Series 2007-C2 Class A1, 5.226% 2/15/40	2,362		2,353
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $61,381)		60,689
Foreign Government and Government Agency Obligations - 0.2%
	Principal Amount (000s)		Value (000s)
Manitoba Province yankee 5.5% 10/1/08 (Cost $14,739)	$ 15,000		$ 15,132
Fixed-Income Funds - 58.1%
	Shares
Fidelity 1-3 Year Duration Securitized Bond Central Fund (i)	6,155,930		587,522
Fidelity 2-5 Year Duration Securitized Bond Central Fund (i)	8,084,850		790,617
Fidelity Corporate Bond 1-10 Year Central Fund (i)	20,418,361		2,020,805
Fidelity Corporate Bond 1-5 Year Central Fund (i)	1,351,415		133,817
Fidelity Specialized High Income Central Fund (i)	1,354,567		131,393
Fidelity Ultra-Short Central Fund (i)	12,257,390		1,158,936
TOTAL FIXED-INCOME FUNDS (Cost $4,962,368)		4,823,090
Cash Equivalents - 20.5%
	Maturity Amount (000s)
Investments in repurchase agreements in a joint trading account at:
5.37%, dated 8/31/07 due 9/4/07 (Collateralized by U.S. Government Obligations) #	$ 265,314		265,156
5.4%, dated 8/31/07 due 9/4/07 (Collateralized by U.S. Government Obligations) # (a)	1,436,281		1,435,420
TOTAL CASH EQUIVALENTS (Cost $1,700,576)		1,700,576
TOTAL INVESTMENT PORTFOLIO - 122.7% (Cost $10,336,714)			10,184,531
NET OTHER ASSETS - (22.7)%			(1,884,655)
NET ASSETS - 100%		$ 8,299,876

Swap Agreements
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps
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-HE8 Class B3, 7.3913% 9/25/34	Oct. 2034	$ 2,086	$ (366)
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	Oct. 2034	2,300	(509)
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	Sept. 2034	2,086	(516)
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-NC7, Class B3, 7.6913% 7/25/34	August 2034	2,086	(322)
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	Dec. 2034	3,225	(904)
Receive monthly notional amount multiplied by .56% and pay Bank of America upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11 Class M6, 6.785% 11/25/34	Dec. 2034	8,000	(1,161)
Receive monthly notional amount multiplied by .8% and pay Deutsche Bank upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WCH1 Class M6, 6.365% 1/25/35	Feb. 2035	2,900	(597)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
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	August 2034	$ 2,086	$ (232)
Receive monthly notional amount multiplied by .85% and pay Deutsche Bank upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M6, 6.105% 5/25/35	June 2035	2,900	(888)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R9 Class M5, 5.5913% 10/25/34	Nov. 2034	2,086	(348)
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	Oct. 2034	2,086	(295)
Receive monthly notional amount multiplied by 1.6% and pay Morgan Stanley, Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	1,910	(592)
Receive monthly notional amount multiplied by 1.66% and pay Morgan Stanley, Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	2,086	(644)
Receive monthly notional amount multiplied by 2% and pay Goldman Sachs upon credit event of Long Beach Mortgage Loan Trust, par value of the notional amount of Long Beach Mortgage Loan Trust Series 2006-7 Class M9, 7.14% 8/25/36	Sept. 2036	4,900	(3,835)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
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	April 2032	$ 184	$ (6)
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 2004-1 Class M9, 7.3913% 2/25/34	March 2034	436	(62)
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	Feb. 2034	202	(164)
Receive monthly notional amount multiplied by 3% and pay UBS upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2005-R4 Class M9, 7.07% 7/25/35	August 2035	3,300	(1,200)
Receive monthly notional amount multiplied by 5% and pay Deutsche Bank upon credit event of MASTR Asset Backed Securities Trust, par value of the notional amount of MASTR Asset Backed Securities Trust Series 2003-NC1 Class M6, 8.1913% 4/25/33	May 2033	2,086	(603)
Receive monthly notional amount multiplied by 5.55% and pay Deutsche Bank upon credit event of Carrington Mortgage Loan Trust, par value of the notional amount of Carrington Mortgage Loan Trust Series 2006-FRE1 Class M10, 7.74% 7/25/36	August 2036	3,300	(1,385)
Receive monthly notional amount multiplied by 6.25% and pay Deutsche Bank upon credit event of Residential Asset Mortgage Products, Inc., par value of the notional amount of Residential Asset Mortgage Products, Inc. Series 2006-RS5 Class M9, 7.17% 9/25/36	Oct. 2036	3,300	(2,312)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive quarterly a fixed rate of .4% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 4 Index, par value of the proportional notional amount (g)	June 2010	$ 55,000	$ (122)
Receive quarterly a fixed rate of .5% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 3 Index, par value of the proportional notional amount (f)	March 2010	34,720	62
Receive quarterly notional amount multiplied by .72% and pay Bank of America upon credit event of Alleghany Energy Supply Co. LLC, par value of the notional amount of Alleghany Energy Supply Co. LLC 8.25% 4/15/12	June 2012	7,200	(147)
Receive quarterly notional amount multiplied by .78% and pay Deutsche Bank upon credit event of Allegheny Energy Supply Co. LLC, par value of the notional amount of Allegheny Energy Supply Co. LLC 8.25% 4/15/12	June 2012	7,270	(133)
TOTAL CREDIT DEFAULT SWAPS		157,735	(17,281)
Interest Rate Swaps
Receive quarterly a fixed rate equal to 4.039% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Feb. 2010	100,000	(1,908)
Receive quarterly a fixed rate equal to 4.3875% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	March 2010	35,000	(467)
Receive quarterly a fixed rate equal to 4.774% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	March 2015	35,000	(733)
Receive semi-annually a fixed rate equal to 4.795% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Dec. 2011	30,000	(218)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Interest Rate Swaps - continued
Receive semi-annually a fixed rate equal to 4.9375% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	March 2012	$ 75,000	$ 808
Receive semi-annually a fixed rate equal to 5.022% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Nov. 2011	40,000	624
Receive semi-annually a fixed rate equal to 5.095% and pay quarterly a floating rate based on 3-month LIBOR with Bank of America	Feb. 2012	100,000	575
Receive semi-annually a fixed rate equal to 5.145% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	Feb. 2012	200,000	1,539
Receive semi-annually a fixed rate equal to 5.186% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	Sept. 2011	100,000	2,177
Receive semi-annually a fixed rate equal to 5.2605% and pay quarterly a floating rate based on 3-month LIBOR with Deutsche Bank	Sept. 2011	150,000	1,820
Receive semi-annually a fixed rate equal to 5.3315% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	April 2011	100,000	2,720
TOTAL INTEREST RATE SWAPS		965,000	6,937
Total Return Swaps
Receive monthly a return equal to Lehman Brothers CMBS U.S. Aggregate Index and pay monthly a floating rate based on 1-month LIBOR with Lehman Brothers, Inc.	Dec. 2007	20,000	167
		$ 1,142,735	$ (10,177)

Legend

(a) Includes investment made with cash collateral received from securities on loan.

(b) Security or a portion of the security is on loan at period end.

(c) 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 $105,266,000 or 1.3% of net assets.

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

(e) 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 $8,833,000.

(f) Dow Jones CDX N.A. Investment Grade 3 is a tradable index of credit default swaps on investment grade debt of U.S. companies.

(g) Dow Jones CDX N.A. Investment Grade 4 is a tradable index of credit default swaps on investment grade debt of U.S. companies.

(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(i) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete 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. A 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.

(j) 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)
$265,156,000 due 9/04/07 at 5.37%
BNP Paribas Securities Corp.	$ 6,127
Banc of America Securities LLC	93,894
Bank of America, NA	42,202
Bear Stearns & Co., Inc.	5,275
Citigroup Global Markets, Inc.	16,638
Credit Suisse Securities (USA) LLC	10,550
Greenwich Capital Markets, Inc.	5,275
HSBC Securities (USA), Inc.	10,550
ING Financial Markets LLC	21,101
Societe Generale, New York Branch	31,651
UBS Securities LLC	10,287
WestLB AG	11,606
	$ 265,156
$1,435,420,000 due 9/04/07 at 5.40%
Barclays Capital, Inc.	$ 919,887
Citigroup Global Markets, Inc.	121,296
Countrywide Securities Corp.	394,237
	$ 1,435,420

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 1-3 Year Duration Securitized Bond Central Fund	$ 27,360
Fidelity 2-5 Year Duration Securitized Bond Central Fund	31,602
Fidelity Corporate Bond 1-10 Year Central Fund	97,397
Fidelity Corporate Bond 1-5 Year Central Fund	6,616
Fidelity Specialized High Income Central Fund	5,465
Fidelity Ultra-Short Central Fund	68,609
Total	$ 237,049

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 1-3 Year Duration Securitized Bond Central Fund	$ -	$ 615,234*	$ -	$ 587,522	21.1%
Fidelity 2-5 Year Duration Securitized Bond Central Fund	-	806,678*	-	790,617	20.8%
Fidelity Corporate Bond 1-10 Year Central Fund	-	2,251,463*	210,836	2,020,805	28.3%
Fidelity Corporate Bond 1-5 Year Central Fund	-	201,431*	65,962	133,817	14.4%
Fidelity Specialized High Income Central Fund	73,886	58,161	-	131,393	38.3%
Fidelity Ultra-Short Central Fund	909,057	617,727*	300,432	1,158,936	9.2%
Total	$ 982,943	$ 4,550,694	$ 577,230	$ 4,823,090

* Includes the value of shares received through in-kind contributions. See Note 6 of the Notes to
Financial Statements.

Income Tax Information

At August 31, 2007, the fund had a capital loss carryforward of approximately $54,135,000 all of which will expire on August 31, 2014.

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

Annual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)	August 31, 2007

Assets
Investment in securities, at value (including securities loaned of $1,394,762 and repurchase agreements of $1,700,576) - See accompanying schedule: Unaffiliated issuers (cost $5,374,346)	$ 5,361,441
Fidelity Central Funds (cost $4,962,368)	4,823,090
Total Investments (cost $10,336,714)		$ 10,184,531
Cash		1
Receivable for investments sold		1,600
Receivable for swap agreements		116
Receivable for fund shares sold		6,485
Interest receivable		26,284
Distributions receivable from Fidelity Central Funds		23,688
Other receivables		130
Total assets		10,242,835

Liabilities
Payable for investments purchased Regular delivery	$ 28,495
Delayed delivery	460,425
Payable for fund shares redeemed	4,541
Distributions payable	437
Swap agreements, at value	10,177
Accrued management fee	2,170
Other affiliated payables	930
Other payables and accrued expenses	364
Collateral on securities loaned, at value	1,435,420
Total liabilities		1,942,959

Net Assets		$ 8,299,876
Net Assets consist of:
Paid in capital		$ 8,512,322
Undistributed net investment income		20,825
Accumulated undistributed net realized gain (loss) on investments		(71,230)
Net unrealized appreciation (depreciation) on investments		(162,041)
Net Assets, for 820,451 shares outstanding		$ 8,299,876
Net Asset Value, offering price and redemption price per share ($8,299,876 ÷ 820,451 shares)		$ 10.12

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

Annual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands	Year ended August 31, 2007

Investment Income
Interest		$ 190,208
Income from Fidelity Central Funds		237,049
Total income		427,257

Expenses
Management fee	$ 25,425
Transfer agent fees	7,975
Fund wide operations fee	2,588
Independent trustees' compensation	26
Miscellaneous	18
Total expenses before reductions	36,032
Expense reductions	(789)	35,243
Net investment income		392,014
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	(4,476)
Fidelity Central Funds	(6,065)
Swap agreements	(9,347)
Capital gain distributions from Fidelity Central Funds	163
Total net realized gain (loss)		(19,725)
Change in net unrealized appreciation (depreciation) on:
Investment securities:
Unaffiliated issuers	33,951
Fidelity Central Funds	(127,046)
Swap agreements	(3,955)
Total change in net unrealized appreciation (depreciation)		(97,050)
Net gain (loss)		(116,775)
Net increase (decrease) in net assets resulting from operations		$ 275,239

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

Annual Report

Statement of Changes in Net Assets

Amounts in thousands	Year ended August 31, 2007	Four months ended August 31, 2006*	Year ended April 30, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 392,014	$ 125,816	$ 316,054
Net realized gain (loss)	(19,725)	(27,450)	(32,424)
Change in net unrealized appreciation (depreciation)	(97,050)	89,636	(183,468)
Net increase (decrease) in net assets resulting from operations	275,239	188,002	100,162
Distributions to shareholders from net investment income	(371,955)	(111,353)	(305,552)
Distributions to shareholders from net realized gain	(9,025)	-	(7,046)
Total distributions	(380,980)	(111,353)	(312,598)
Share transactions Proceeds from sales of shares	1,778,045	410,324	1,965,733
Reinvestment of distributions	375,667	109,643	307,173
Cost of shares redeemed	(1,315,374)	(687,668)	(1,673,659)
Net increase (decrease) in net assets resulting from share transactions	838,338	(167,701)	599,247
Total increase (decrease) in net assets	732,597	(91,052)	386,811

Net Assets
Beginning of period	7,567,279	7,658,331	7,271,520
End of period (including undistributed net investment income of $20,825 and $5,900 and distributions in excess of net investment income of $4,194, respectively)	$ 8,299,876	$ 7,567,279	$ 7,658,331
Other Information Shares
Sold	173,471	40,515	190,716
Issued in reinvestment of distributions	36,662	10,810	29,798
Redeemed	(128,570)	(67,970)	(162,458)
Net increase (decrease)	81,563	(16,645)	58,056

* The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006.

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

Annual Report

Financial Highlights

Years ended August 31,	2007	2006^G	2006^J	2005^J	2004^J	2003^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.24	$ 10.14	$ 10.43	$ 10.54	$ 10.87	$ 10.31
Income from Investment Operations
Net investment income^D	.501	.169	.436	.366	.374	.473
Net realized and unrealized gain (loss)	(.134)	.081	(.295)	(.009)	(.123)	.562
Total from investment operations	.367	.250	.141	.357	.251	1.035
Distributions from net investment income	(.475)	(.150)	(.421)	(.362)	(.381)	(.475)
Distributions from net realized gain	(.012)	-	(.010)	(.105)	(.200)	-
Total distributions	(.487)	(.150)	(.431)	(.467)	(.581)	(.475)
Net asset value, end of period	$ 10.12	$ 10.24	$ 10.14	$ 10.43	$ 10.54	$ 10.87
Total Return^{B, C}	3.63%	2.48%	1.36%	3.47%	2.33%	10.25%
Ratios to Average Net Assets^{E, H}
Expenses before reductions	.45%	.45%^A	.46%	.62%	.61%	.64%
Expenses net of fee waivers, if any	.45%	.45%^A	.46%	.62%	.61%	.64%
Expenses net of all reductions	.44%	.44%^A	.46%	.61%	.61%	.64%
Net investment income	4.89%	4.96%^A	4.22%	3.50%	3.48%	4.47%
Supplemental Data
Net assets, end of period (in millions)	$ 8,300	$ 7,567	$ 7,658	$ 7,272	$ 6,846	$ 6,983
Portfolio turnover rate^F	94%^I	71%^A	44%	74%	120%	117%

^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 four month period ended August 31. The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006.

^H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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 Portfolio turnover rate excludes securities received or delivered through non-taxable in-kind activity.

^J For the period ended April 30.

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

Annual Report

Notes to Financial Statements

For the period ended August 31, 2007

(Amounts in thousands except ratios)

1. Organization.

Fidelity Intermediate Bond Fund (the Fund) is a fund of Fidelity Fixed-Income Trust (the trust) (formerly of Fidelity Commonwealth Trust) and is authorized to issue an unlimited number of shares. Effective April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Fund reorganized into Fidelity Fixed-Income Trust effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Fund's investment strategies or Fidelity Management & Research Company's (FMR) management of the Fund. 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 may invest 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 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 1-3 Year Duration Securitized Bond Central Fund

Fidelity Investment Money Management, Inc. (FIMM)

Seeks a high level of income by normally investing in investment-grade securitized debt securities and repurchase agreements for those securities.

Futures

Repurchase Agreements

Restricted Securities

Swap Agreements

Fidelity 2-5 Year Duration Securitized Bond Central Fund

FIMM

Seeks a high level of income by normally investing in investment-grade securitized debt securities and repurchase agreements for those securities.

Repurchase Agreements

Restricted Securities

Swap Agreements

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

2. Investments in Fidelity Central Funds - continued

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity Corporate Bond 1-5 Year Central Fund	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 Corporate Bond 1-10 Year Central Fund	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 Specialized High Income Central Fund	Fidelity Management & Research Company, 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
Fidelity Ultra-Short Central Fund	FIMM	Seeks to obtain a high level of current income consistent with preservation of capital by investing in U.S. dollar denominated money market and investment-grade debt securities.	Futures Mortgage Dollar Rolls Repurchase Agreements Restricted Securities Swap Agreements

The Central Funds may invest a portion of their assets in securities of issuers that hold mortgage securities, including subprime mortgage securities. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market's perception of the issuers and changes in interest rates.

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. A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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.

Annual Report

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Certain of the Fund's securities may be valued by a single source or dealer.

When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. Factors used in the determination of fair value may include current market trading activity, interest rates, credit quality and default rates. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. 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 value.

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 for processing shareholder transactions 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. Interest income and income and capital gain 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. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. Interest is accrued based on the principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond is recorded as interest income, even though principal is not received until maturity.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. All legal and other expenses associated with the Trust Reorganization will be paid by FMR.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), Independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional 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 by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.

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

Capital accounts within the financial statements are adjusted for permanent book-tax differences. Certain adjustments have been made to the accounts relating to prior periods. Collectively, 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 the short-term gain distributions from the Fidelity Central Funds, 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.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 40,825
Unrealized depreciation	(198,365)
Net unrealized appreciation (depreciation)	(157,540)
Undistributed ordinary income	20,218
Capital loss carryforward	$ (54,135)

Cost for federal income tax purposes	$ 10,342,071

The tax character of distributions paid was as follows:

	August 31, 2007	Four months ended August 31, 2006	April 30, 2006
Ordinary Income	$ 380,980	$ 111,353	$ 309,075
Long-term Capital Gains	-	-	3,523
Total	$ 380,980	$ 111,353	$ 312,598

Annual Report

3. Significant Accounting Policies - continued

New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management has concluded that the adoption of FIN 48 will not result in a material impact on the Fund's net assets, results of operations and financial statement disclosures.

In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

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.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

4. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

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.

Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Total return swaps are agreements to exchange the return generated by one instrument or index for the return generated by another instrument, for example, the agreement to pay interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the index exceeds the offsetting interest obligation, a fund will receive a payment from the counterparty. To the extent it is less, a fund will make a payment to the counterparty.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a "guarantor" receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. The Fund may enter into credit default swaps in which either it or its counterparty act as guarantors. By acting as the guarantor of a swap, a fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value.

Annual Report

4. Operating Policies - continued

Swap Agreements - continued

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Periodic payments and premiums received or made by the Fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the Fund's Schedule of Investments under the caption "Swap Agreements."

5. 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 non-taxable in-kind transactions, aggregated $1,728,695 and $1,043,611, 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 annual management fee rate was .32% of the Fund's average net assets.

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

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

6. Fees and Other Transactions with Affiliates - continued

Fundwide Operations Fee - continued

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 annual rate of .03% of average net assets.

Exchange-In-Kind. During the period, the Fund exchanged securities for shares of four newly created Fidelity Fixed-Income Central Funds, all of which are affiliated investment companies managed by FIMM, an affiliate of FMR. The Fund delivered securities to each Fixed-Income Central Fund in exchange for shares of each respective Fixed-Income Central Fund, as presented in the accompanying table. Each exchange is considered a non-taxable exchange for federal income tax purposes, with no gain or loss recognized by the Fund or its shareholders.

Fidelity Fixed-Income Central Fund	Value of Securities Delivered (including accrued interest)	Unrealized Appreciation/ (Depreciation)	Shares of Fixed-Income Central Fund Exchanged
1-3 Year Duration Securitized Bond Central Fund	$ 343,133	$ (3,548)	3,431
2-5 Year Duration Securitized Bond Central Fund	560,406	(6,618)	5,604
Corporate Bond 1-5 Year Central Fund	150,000	-	1,500
Corporate Bond 1-10 Year Central Fund	2,232,395	(2,444)	22,324
Total	$ 3,285,934	$ (12,610)	32,859

On April 27, 2007, the Fund purchased 2,198 shares of Fidelity Ultra-Short Central Fund, an affiliated entity, valued at $217,737 by transferring securities of equal value, including accrued interest. This is considered taxable for federal income tax purposes, and the Fund recognized a gain of $251.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 $18 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

Annual Report

8. Security Lending - continued

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 fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Net income from lending portfolio securities during the period amounted to $2,085.

9. Expense Reductions.

Through arrangements with the Fund's custodian and transfer agent, 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 and transfer agent expenses by $111 and $678, respectively.

10. 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, Fidelity 2010 Fund and Fidelity 2020 of Freedom Fund were the owners of record of approximately 11% and 10%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 35% of the total outstanding shares of the Fund.

11. Credit Risk.

The Fund invests a portion of its assets in securities of issuers that hold mortgage securities, including subprime mortgage securities. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market's perception of the issuers and changes in interest rates.

Annual Report

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 August 31, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for the year then ended, the four month period ended August 31, 2006 and the year ended April 30, 2006, and the financial highlights for the year then ended, the four month period ended August 31, 2006 and each of the four years in the period ended April 30, 2006. 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 August 31, 2007, 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 August 31, 2007, the results of its operations for the year then ended, the changes in its net assets for the year then ended, the four month period ended August 31, 2006 and the year ended April 30, 2006, and its financial highlights for the year then ended, the four month period ended August 31, 2006 and each of the four years in the period ended April 30, 2006, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts

October 30, 2007

Annual Report

Trustees and Officers

The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 369 funds advised by FMR or an affiliate. Mr. Curvey oversees 339 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL).
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (66)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (60)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present).

Advisory Board Members and Executive Officers**:

Correspondence intended for Mr. Mauriello and Mr. Wiley may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Fixed-Income Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (62)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Fixed-Income Trust. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd., (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc., (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
Michael E. Wiley (56)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Fidelity Fixed-Income Trust. Mr. Wiley also serves as Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-present) and a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present), and an Advisory Director of Riverstone Holdings (private investment firm). Previously, Mr. Wiley served as Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (43)
	Year of Election or Appointment: 2007 President and Treasurer of Intermediate Bond. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Boyce I. Greer (51)
	Year of Election or Appointment: 2006 Vice President of Intermediate Bond. Mr. Greer also serves as Vice President of certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). Mr. Greer is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as Vice President of certain Fidelity Equity Funds (2005-2007), a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. Mr. Greer also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).
David L. Murphy (59)
	Year of Election or Appointment: 2005 Vice President of Intermediate Bond. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present) and Fixed-Income Funds (2005-present). Mr. Murphy serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of certain Asset Allocation Funds (2003-2007), Balanced Funds (2005-2007), Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002).
Thomas J. Silvia (46)
	Year of Election or Appointment: 2005 Vice President of Intermediate Bond. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present) and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Vice President of certain Balanced Funds (2005-2007), certain Asset Allocation Funds (2005-2007), a Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004).
Eric D. Roiter (58)
	Year of Election or Appointment: 1998 Secretary of Intermediate Bond. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
Scott C. Goebel (39)
	Year of Election or Appointment: 2007 Assistant Secretary of Intermediate Bond. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present) and is an employee of FMR.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Intermediate Bond. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of Intermediate Bond. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of Intermediate Bond. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of Intermediate Bond. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of Intermediate Bond. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (40)
	Year of Election or Appointment: 2005 Assistant Treasurer of Intermediate Bond. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of Intermediate Bond. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of Intermediate Bond. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

A total of 7.36% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.

The fund designates $336,160,306 of distributions paid during the period January 1, 2007 to August 31, 2007, as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Intermediate Bond Fund

On April 19, 2007, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract and subadvisory agreements (together, the Advisory Contracts) for the fund in connection with reorganizing the fund from one Trust to another. The Board reached this determination because the contractual terms of and fees payable under the fund's Advisory Contracts are identical to those in the fund's current Advisory Contracts. The Advisory Contracts involve no changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the nature or level of services provided under the fund's Advisory Contracts; or (iii) the day-to-day management of the fund or the persons primarily responsible for such management. The Board considered that it approved the Advisory Contracts for the fund during the past year and that it will again consider renewal of the Advisory Contracts in June 2007.

Because the Board was approving Advisory Contracts with terms identical to the current Advisory Contracts, it did not consider the fund's investment performance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.

In connection with its future renewal of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund's management fee and total expenses; (iii) the costs of the services and profitability, including 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; and (iv) 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.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved, without modification, as part of the process of reorganizing the fund from one Trust to another.

Each year, typically in June, 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 throughout the year.

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 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. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.

Annual Report

At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. 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 management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the 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. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.

In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, 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 competitors to Fidelity, 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 staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager 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.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

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 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 noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. 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 integrated 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, distribution, 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 Advisers' 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 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 phone 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 for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.

Annual Report

Investment Performance. The Board considered whether the fund has operated within 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 against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, 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.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Intermediate Bond Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for all the periods shown. The Board also stated that the relative investment performance of the fund compared favorably to its benchmark for all the periods shown.

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, the Board concluded that the nature, extent, and quality of the 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.

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 8% means that 92% 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.

Annual Report

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 2006.

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.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

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

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 noted that the fund's total expenses ranked below its competitive median for 2006.

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 determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board noted, however, that because the current contractual arrangements set the fund's 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.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Annual Report

Based on its review, 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.

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 the results 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 any 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 determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

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 several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.

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

Annual Report

Investment Adviser

Fidelity Management & Research
Company
Boston, MA

Investment Sub-Advisers

Fidelity Investments Japan Limited

Fidelity Investments Money
Management, Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agent

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York

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®) (automated graphic) 1-800-544-5555

(automated graphic) Automated line for quickest service

IBF-UANN-1007
1.784721.105

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com

Fidelity®

Investment Grade Bond

Fund

Annual Report

August 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Notes to Shareholders	<Click Here>	An explanation of the changes to the fund.
Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook
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>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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.

Annual Report

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Notes to Shareholders:

Annual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Sincerely,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended August 31, 2007	Past 1 year	Past 5 years	Past 10 years
Investment Grade Bond	3.05%	4.23%	5.69%

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Investment Grade Bond, a class of the fund on August 31, 1997. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® U.S. Aggregate Index performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Jeffrey Moore, Portfolio Manager of Fidelity® Investment Grade Bond Fund

A subprime mortgage loan crisis and an emerging credit crunch contributed to subpar performance for some sectors of the investment-grade bond market during the 12-month period ending August 31, 2007, though some categories, particularly Treasuries, benefited from a flight to quality. While returns for high-grade debt were fairly solid overall, they also were tempered to an extent by the Federal Reserve Board's decision to leave interest rates unchanged - and not lower them as bond investors had hoped - citing its concern that inflation was still a threat given the continued strength of the U.S. economy. During the one-year span, the Lehman Brothers® U.S. Aggregate Index - a performance gauge of the taxable, high-quality debt market - gained 5.26%. Within the index, Treasuries - the bond market's highest-quality debt instrument - fared best during the past 12 months, as many investors fled riskier fixed-income securities. The Lehman Brothers U.S. Treasury Index rose 6.02%. The asset-backed category - home to volatile subprime mortgages, as well as credit card debt and auto loans - had the weakest performance, gaining only 3.68% according to the Lehman Brothers Asset-Backed Securities Index.

Investment Grade Bond gained 3.05% during the year ending August 31, 2007, trailing its benchmark, the Lehman Brothers U.S. Aggregate Index. This underperformance was mainly due to investments in asset-backed securities, particularly those backed by subprime mortgages. Although subprime-backed securities constituted a relatively small portion of the portfolio, the dramatic flight from risk that occurred during the period triggered a sharp sell-off in many of the fund's subprime-backed holdings - even those with AAA and AA credit ratings, which represented most of the portfolio's subprime allocation. The fund had subprime exposure both through securities I purchased directly and through the various central funds in which I invested. Fidelity Ultra-Short Central Fund - a diversified pool of short-term assets - had the biggest negative subprime-related impact on the fund during the period. In contrast, the fund's underweighting in riskier spread products - taxable, non-U.S. Treasury issues - proved to be helpful in a challenging market environment in which U.S. government-backed bonds were the best overall performers. The fund also was helped by underweighting U.S. agency-issued mortgage pass-through securities, which underperformed amid higher interest rate volatility that increased the prepayment risk inherent in these bonds.

Annual 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 (March 1, 2007 to August 31, 2007).

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.

Annual Report

	Beginning Account Value March 1, 2007	Ending Account Value August 31, 2007	Expenses Paid During Period* March 1, 2007 to August 31, 2007
Class A
Actual	$ 1,000.00	$ 991.70	$ 3.92
Hypothetical ^A	$ 1,000.00	$ 1,021.27	$ 3.97
Class T
Actual	$ 1,000.00	$ 991.60	$ 3.97
Hypothetical ^A	$ 1,000.00	$ 1,021.22	$ 4.02
Class B
Actual	$ 1,000.00	$ 988.10	$ 7.47
Hypothetical ^A	$ 1,000.00	$ 1,017.69	$ 7.58
Class C
Actual	$ 1,000.00	$ 987.90	$ 7.67
Hypothetical ^A	$ 1,000.00	$ 1,017.49	$ 7.78
Investment Grade Bond
Actual	$ 1,000.00	$ 994.70	$ 2.26
Hypothetical ^A	$ 1,000.00	$ 1,022.94	$ 2.29
Institutional Class
Actual	$ 1,000.00	$ 993.20	$ 2.41
Hypothetical ^A	$ 1,000.00	$ 1,022.79	$ 2.45

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (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.

	Annualized Expense Ratio
Class A	.78%
Class T	.79%
Class B	1.49%
Class C	1.53%
Investment Grade Bond	.45%
Institutional Class	.48%

Annual Report

Investment Changes

The information in the tables is based on the combined investments of the Fund and its pro rata share of its investments of each Fidelity Central Fund.

Quality Diversification (% of fund's net assets) as of August 31, 2007
As of August 31, 2007		As of February 28, 2007
	U.S. Government and U.S. Government Agency Obligations 57.6%		U.S. Government and U.S. Government Agency Obligations 53.9%
	AAA 22.3%		AAA 22.2%
	AA 7.7%		AA 7.6%
	A 6.4%		A 8.7%
	BBB 18.6%		BBB 17.7%
	BB and Below 4.7%		BB and Below 4.2%
	Not Rated 0.6%		Not Rated 1.4%
	Short-Term Investments and Net Other Assets ^(dagger) (17.9)%		Short-Term Investments and Net Other Assets ^(dagger) (15.7)%

We have used ratings from Moody's® Investors Services, 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 downgrades.

Weighted Average Maturity as of August 31, 2007
		6 months ago
Years	4.9	5.2

Duration as of August 31, 2007
		6 months ago
Years	4.5	4.1

Asset Allocation (% of fund's net assets)
As of August 31, 2007 *			As of February 28, 2007 **
	Corporate Bonds 26.2%			Corporate Bonds 27.6%
	U.S. Government and U.S. Government Agency Obligations 57.6%			U.S. Government and U.S. Government Agency Obligations 53.9%
	Asset-Backed Securities 14.5%			Asset-Backed Securities 16.2%
	CMOs and Other Mortgage Related Securities 19.1%			CMOs and Other Mortgage Related Securities 17.5%
	Municipal Bonds 0.3%			Municipal Bonds 0.1%
	Other Investments 0.2%			Other Investments 0.4%
	Short-Term Investments and Net Other Assets ^(dagger) (17.9)%			Short-Term Investments and Net Other Assets ^(dagger) (15.7)%
* Foreign investments		9.1%	** Foreign investments		9.8%
* Futures and Swaps		11.6%	** Futures and Swaps		17.7%

* Short-term Investments and Net Other Assets are not included in the pie chart.

Annual Report

Investments August 31, 2007

Showing Percentage of Net Assets

Nonconvertible Bonds - 17.2%
	Principal Amount (000s)		Value (000s)
CONSUMER DISCRETIONARY - 1.4%
Automobiles - 0.3%
Ford Motor Co. 7.45% 7/16/31	$ 40,245		$ 30,184
Household Durables - 0.0%
Fortune Brands, Inc. 5.875% 1/15/36	2,745		2,475
Media - 1.1%
Comcast Corp. 4.95% 6/15/16	15,874		14,694
Cox Communications, Inc. 6.45% 12/1/36 (d)	25,731		24,653
Gannett Co., Inc. 5.705% 5/26/09 (h)	15,990		15,951
Liberty Media Corp.:
5.7% 5/15/13	8,500		7,863
8.25% 2/1/30	19,105		18,532
News America Holdings, Inc. 7.75% 12/1/45	6,015		6,584
News America, Inc.:
6.15% 3/1/37	6,365		5,913
6.2% 12/15/34	4,570		4,243
Time Warner Cable, Inc. 5.85% 5/1/17 (d)	28,639		27,991
Univision Communications, Inc. 3.875% 10/15/08	9,840		9,471
			135,895
TOTAL CONSUMER DISCRETIONARY			168,554
CONSUMER STAPLES - 0.5%
Beverages - 0.1%
FBG Finance Ltd. 5.125% 6/15/15 (d)	11,020		10,412
Food & Staples Retailing - 0.1%
CVS Caremark Corp. 6.302% 6/1/37 (h)	14,340		13,852
Food Products - 0.0%
Kraft Foods, Inc. 7% 8/11/37	925		952
Tobacco - 0.3%
Reynolds American, Inc.:
6.75% 6/15/17	15,115		15,336
7.25% 6/15/37	18,095		18,339
			33,675
TOTAL CONSUMER STAPLES			58,891
ENERGY - 1.0%
Oil, Gas & Consumable Fuels - 1.0%
Anadarko Petroleum Corp. 5.95% 9/15/16	3,086		3,069
Kinder Morgan Energy Partners LP 6.95% 1/15/38	1,715		1,725
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
ENERGY - continued
Oil, Gas & Consumable Fuels - continued
Nakilat, Inc. 6.067% 12/31/33 (d)	$ 23,610		$ 22,833
National Gas Co. of Trinidad & Tobago Ltd. 6.05% 1/15/36 (d)	5,985		5,743
Nexen, Inc. 6.4% 5/15/37	7,730		7,520
Pemex Project Funding Master Trust:
5.75% 12/15/15	55,046		54,440
5.96% 12/3/12 (d)(h)	11,870		11,852
Talisman Energy, Inc. yankee 6.25% 2/1/38	4,840		4,547
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	9,120		9,052
Valero Energy Corp. 6.625% 6/15/37	3,235		3,262
			124,043
FINANCIALS - 8.0%
Capital Markets - 1.7%
Bear Stearns Companies, Inc. 6.9% 8/15/12	24,040		24,203
Deutsche Bank AG London 6% 9/1/17	12,840		12,955
Janus Capital Group, Inc. 5.875% 9/15/11	2,605		2,593
JPMorgan Chase Capital XVII 5.85% 8/1/35	3,865		3,413
JPMorgan Chase Capital XVIII 6.95% 8/17/36	14,000		13,269
JPMorgan Chase Capital XX 6.55% 9/29/36	82,700		74,448
Lazard Group LLC:
6.85% 6/15/17	5,200		5,134
7.125% 5/15/15	16,430		16,780
Lehman Brothers Holdings, Inc. 6.5% 7/19/17	5,150		5,070
Morgan Stanley:
4.75% 4/1/14	9,200		8,600
5.66% 1/9/14 (h)	40,435		39,183
			205,648
Commercial Banks - 1.3%
Bank of America NA 6% 10/15/36	23,240		22,464
Bank One Corp. 5.25% 1/30/13	13,775		13,672
BB&T Capital Trust IV 6.82% 6/12/77 (h)	1,220		1,151
Credit Suisse (Guernsey) Ltd. 5.86%	13,520		12,818
Export-Import Bank of Korea 5.25% 2/10/14 (d)	7,225		7,154
HSBC Holdings PLC 6.5% 5/2/36	11,470		11,634
KeyCorp Capital Trust VII 5.7% 6/15/35	16,490		14,076
Korea Development Bank 5.75% 9/10/13	14,578		14,748
Wachovia Bank NA 5.85% 2/1/37	29,335		27,613
Wachovia Corp. 4.875% 2/15/14	1,791		1,721
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Commercial Banks - continued
Wells Fargo Bank NA:
4.75% 2/9/15	$ 12,250		$ 11,665
5.95% 8/26/36	16,699		16,338
			155,054
Consumer Finance - 0.5%
SLM Corp.:
4.5% 7/26/10	2,325		2,152
5.52% 7/26/10 (h)	56,195		52,954
			55,106
Diversified Financial Services - 0.7%
Citigroup, Inc.:
5.875% 5/29/37	2,500		2,367
6.125% 8/25/36	8,130		7,941
JPMorgan Chase & Co.:
4.875% 3/15/14	10,460		10,076
5.75% 1/2/13	2,935		2,967
Mizuho Financial Group Cayman Ltd. 5.79% 4/15/14 (d)	15,505		15,395
Prime Property Funding, Inc.:
5.125% 6/1/15 (d)	13,035		12,103
5.5% 1/15/14 (d)	8,820		8,568
ZFS Finance USA Trust II 6.45% 12/15/65 (d)(h)	7,500		7,048
ZFS Finance USA Trust V 6.5% 5/9/67 (d)(h)	13,680		12,800
			79,265
Insurance - 0.9%
AMBAC Financial Group, Inc. 6.15% 2/15/37	9,795		7,498
Assurant, Inc. 5.625% 2/15/14	8,540		8,415
Axis Capital Holdings Ltd. 5.75% 12/1/14	13,335		13,223
Great-West Life & Annuity Insurance Co. 7.153% 5/16/46 (d)(h)	22,081		21,863
Liberty Mutual Group, Inc. 6.7% 8/15/16 (d)	15,840		16,181
Lincoln National Corp. 7% 5/17/66 (h)	8,870		8,988
QBE Insurance Group Ltd. 5.647% 7/1/23 (d)(h)	18,775		18,413
Symetra Financial Corp. 6.125% 4/1/16 (d)	10,405		10,470
			105,051
Real Estate Investment Trusts - 2.2%
AMB Property LP 5.9% 8/15/13	9,635		9,657
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Investment Trusts - continued
Archstone-Smith Operating Trust:
5.25% 12/1/10	$ 5,185		$ 5,163
5.25% 5/1/15	12,985		12,527
Boston Properties, Inc. 6.25% 1/15/13	7,487		7,730
Brandywine Operating Partnership LP:
5.625% 12/15/10	19,900		19,761
5.75% 4/1/12	6,050		6,005
Camden Property Trust 5.875% 11/30/12	6,435		6,477
Colonial Properties Trust:
4.75% 2/1/10	12,325		12,084
5.5% 10/1/15	12,730		12,109
6.875% 8/15/12	5,000		5,259
Developers Diversified Realty Corp.:
4.625% 8/1/10	975		957
5% 5/3/10	6,840		6,813
5.25% 4/15/11	5,400		5,370
5.375% 10/15/12	5,485		5,402
Duke Realty LP:
5.5% 3/1/16	10,700		10,201
5.625% 8/15/11	1,525		1,517
5.95% 2/15/17	1,410		1,381
Equity One, Inc.:
6% 9/15/17 (d)	6,860		6,572
6.25% 1/15/17	4,535		4,447
Federal Realty Investment Trust:
5.4% 12/1/13	4,880		4,757
6% 7/15/12	3,355		3,403
6.2% 1/15/17	2,580		2,575
Healthcare Realty Trust, Inc. 5.125% 4/1/14	4,130		3,965
HRPT Properties Trust 5.75% 11/1/15	2,925		2,826
Liberty Property LP:
5.5% 12/15/16	6,665		6,340
6.375% 8/15/12	4,617		4,745
Mack-Cali Realty LP:
5.05% 4/15/10	6,290		6,250
7.25% 3/15/09	4,110		4,233
Reckson Operating Partnership LP:
5.15% 1/15/11	2,790		2,720
6% 3/31/16	2,600		2,486
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
FINANCIALS - continued
Real Estate Investment Trusts - continued
Simon Property Group LP:
4.6% 6/15/10	$ 8,400		$ 8,207
5.1% 6/15/15	22,675		21,479
5.45% 3/15/13	8,720		8,567
5.75% 5/1/12	4,015		4,013
7.75% 1/20/11	2,250		2,402
Tanger Properties LP 6.15% 11/15/15	17,300		16,993
UDR, Inc. 5.5% 4/1/14	10,720		10,458
United Dominion Realty Trust, Inc. 5.25% 1/15/15	3,645		3,495
Washington (REIT) 5.95% 6/15/11	10,660		10,810
			270,156
Real Estate Management & Development - 0.3%
Colonial Realty LP 6.05% 9/1/16	9,420		9,222
ERP Operating LP 5.5% 10/1/12	5,765		5,703
Post Apartment Homes LP 6.3% 6/1/13	11,550		11,692
Regency Centers LP 6.75% 1/15/12	12,435		12,931
			39,548
Thrifts & Mortgage Finance - 0.4%
Capmark Financial Group, Inc. 6.3% 5/10/17 (d)	5,570		4,524
Residential Capital Corp. 8.69% 4/17/09 (d)(h)	15,695		8,632
The PMI Group, Inc. 6% 9/15/16	9,880		9,068
Washington Mutual, Inc.:
4.625% 4/1/14	14,680		13,287
5.76% 9/17/12 (h)	15,415		14,574
			50,085
TOTAL FINANCIALS			959,913
INDUSTRIALS - 1.6%
Aerospace & Defense - 0.1%
Bombardier, Inc. 6.3% 5/1/14 (d)	18,035		17,223
Airlines - 1.3%
American Airlines, Inc. pass thru trust certificates:
7.324% 4/15/11	13,531		13,294
7.858% 4/1/13	26,059		27,492
Continental Airlines, Inc. pass thru trust certificates 6.545% 8/2/20	4,245		4,269
Delta Air Lines, Inc. pass thru trust certificates 7.57% 11/18/10	17,570		17,790
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
INDUSTRIALS - continued
Airlines - continued
U.S. Airways pass thru trust certificates:
6.85% 7/30/19	$ 6,914		$ 6,810
8.36% 7/20/20	21,289		22,992
United Air Lines, Inc. pass-thru certificates Class 1A, 6.636% 7/2/22	30,010		29,485
United Air Lines, Inc. pass-thru trust certificates:
6.071% 9/1/14	3,559		3,577
6.602% 9/1/13	6,291		6,307
7.032% 4/1/12	4,453		4,472
7.186% 10/1/12	11,032		11,142
7.811% 10/1/09 (b)	4,909		5,769
			153,399
Commercial Services & Supplies - 0.1%
R.R. Donnelley & Sons Co. 5.5% 5/15/15	12,745		12,270
Road & Rail - 0.0%
Canadian Pacific Railway Co. 5.95% 5/15/37	990		939
Transportation Infrastructure - 0.1%
BNSF Funding Trust I 6.613% 12/15/55 (h)	6,338		5,628
TOTAL INDUSTRIALS			189,459
INFORMATION TECHNOLOGY - 0.2%
Semiconductors & Semiconductor Equipment - 0.2%
Chartered Semiconductor Manufacturing Ltd.:
5.75% 8/3/10	9,825		9,876
6.375% 8/3/15	10,650		10,579
National Semiconductor Corp. 6.15% 6/15/12	7,260		7,391
			27,846
MATERIALS - 0.1%
Chemicals - 0.1%
Agrium, Inc. 7.125% 5/23/36	11,735		11,930
Metals & Mining - 0.0%
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (d)	3,460		3,618
TOTAL MATERIALS			15,548
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
TELECOMMUNICATION SERVICES - 1.4%
Diversified Telecommunication Services - 0.8%
AT&T, Inc. 6.8% 5/15/36	$ 1,275		$ 1,331
BellSouth Capital Funding Corp. 7.875% 2/15/30	12,752		14,528
Deutsche Telekom International Finance BV 5.25% 7/22/13	11,230		10,951
Embarq Corp. 7.082% 6/1/16	17,205		17,743
KT Corp. 5.875% 6/24/14 (d)	7,455		7,610
Sprint Capital Corp. 8.75% 3/15/32	2,280		2,632
Telecom Italia Capital SA:
4.95% 9/30/14	11,250		10,538
5.25% 10/1/15	12,725		12,002
7.2% 7/18/36	2,550		2,652
Telefonica Emisiones SAU:
6.221% 7/3/17	11,230		11,309
7.045% 6/20/36	5,850		6,091
			97,387
Wireless Telecommunication Services - 0.6%
Sprint Nextel Corp. 6% 12/1/16	23,971		23,302
Vodafone Group PLC:
5% 12/16/13	7,380		7,086
5.625% 2/27/17	35,292		34,116
			64,504
TOTAL TELECOMMUNICATION SERVICES			161,891
UTILITIES - 3.0%
Electric Utilities - 1.5%
AmerenUE 6.4% 6/15/17	18,252		18,930
Cleveland Electric Illuminating Co. 5.65% 12/15/13	11,490		11,403
Commonwealth Edison Co. 5.4% 12/15/11	14,943		14,852
Exelon Corp. 4.9% 6/15/15	27,100		25,198
Nevada Power Co. 6.5% 5/15/18	26,280		26,280
Pacific Gas & Electric Co.:
4.8% 3/1/14	2,670		2,549
5.8% 3/1/37	7,180		6,776
Pennsylvania Electric Co. 6.05% 9/1/17 (d)	10,455		10,460
PPL Capital Funding, Inc. 6.7% 3/30/67 (h)	15,620		15,093
Southern California Edison Co.:
4.65% 4/1/15	990		939
5% 1/15/14	585		571
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (000s)
UTILITIES - continued
Electric Utilities - continued
TXU Energy Co. LLC:
5.86% 9/16/08 (d)(h)	$ 30,500		$ 30,517
7% 3/15/13	10,903		11,199
			174,767
Gas Utilities - 0.4%
NiSource Finance Corp.:
5.4% 7/15/14	2,960		2,849
5.45% 9/15/20	8,100		7,321
6.0644% 11/23/09 (h)	9,874		9,786
6.4% 3/15/18	24,090		24,091
Southern Natural Gas Co. 5.9% 4/1/17 (d)	6,145		5,973
			50,020
Independent Power Producers & Energy Traders - 0.5%
Duke Capital LLC 5.668% 8/15/14	13,400		13,260
Exelon Generation Co. LLC 5.35% 1/15/14	23,798		22,997
PPL Energy Supply LLC 6.2% 5/15/16	11,895		12,019
TXU Corp. 5.55% 11/15/14	7,555		6,195
			54,471
Multi-Utilities - 0.6%
CMS Energy Corp. 6.55% 7/17/17	13,140		12,594
Dominion Resources, Inc. 7.5% 6/30/66 (h)	12,110		12,547
MidAmerican Energy Holdings, Co. 6.5% 9/15/37 (d)	11,895		11,991
National Grid PLC 6.3% 8/1/16	26,485		27,130
TECO Energy, Inc. 7% 5/1/12	11,415		11,706
			75,968
TOTAL UTILITIES			355,226
TOTAL NONCONVERTIBLE BONDS (Cost $2,114,776)		2,061,371
U.S. Government and Government Agency Obligations - 19.6%
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - 1.6%
Freddie Mac:
4.5% 7/15/13	$ 150,000		$ 147,071
5.5% 8/23/17	50,000		51,544
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			198,615
U.S. Treasury Inflation Protected Obligations - 4.9%
U.S. Treasury Inflation-Indexed Notes:
2% 1/15/14 (c)(f)	291,656		284,808
2.375% 1/15/17 (c)(f)	302,347		302,184
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			586,992
U.S. Treasury Obligations - 13.1%
U.S. Treasury Bond stripped principal 2/15/31	119,730		38,300
U.S. Treasury Bonds 5% 5/15/37 (f)	12,875		13,216
U.S. Treasury Notes 4.625% 7/31/12 (e)	1,487,595		1,511,504
TOTAL U.S. TREASURY OBLIGATIONS			1,563,020
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,330,611)		2,348,627
U.S. Government Agency - Mortgage Securities - 11.8%

Fannie Mae - 10.9%
4.5% 4/1/20	5,574		5,382
4.5% 9/1/22 (e)	16,000		15,365
4.5% 9/1/22 (e)	4,000		3,841
5% 4/1/18	17,380		17,078
5% 9/1/37 (e)	188,000		178,801
5% 9/1/37 (e)	34,000		32,336
5% 9/1/37 (e)	160,000		152,171
5% 9/1/37 (e)	199,000		189,263
5.5% 9/1/37 (e)	35,000		34,200
5.5% 9/1/37 (e)	163,000		159,276
5.5% 9/1/37 (e)	100,000		97,716
5.5% 9/1/37 (e)	20,000		19,543
5.5% 9/1/37 (e)	173,000		169,048
5.651% 7/1/37 (h)	3,565		3,586
5.819% 7/1/46 (e)(h)	35,518		35,822
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
6% 9/1/22 (e)	$ 2,000		$ 2,021
6% 9/1/37 (e)	9,000		8,997
6.061% 4/1/36 (h)	2,530		2,561
6.155% 4/1/36 (h)	6,607		6,697
6.256% 6/1/36 (h)	1,016		1,025
6.319% 4/1/36 (h)	2,247		2,282
6.5% 9/1/37 (e)	14,000		14,215
6.5% 9/1/37 (e)	142,000		144,177
TOTAL FANNIE MAE			1,295,403
Freddie Mac - 0.3%
4.766% 7/1/35 (h)	9,854		9,732
5.787% 10/1/35 (h)	1,875		1,883
5.877% 6/1/36 (h)	2,849		2,867
6.044% 6/1/36 (h)	2,787		2,810
6.049% 7/1/37 (h)	14,470		14,574
6.089% 4/1/36 (h)	4,697		4,733
6.1% 6/1/36 (h)	2,629		2,656
TOTAL FREDDIE MAC			39,255
Government National Mortgage Association - 0.6%
6.5% 9/1/37 (e)	33,000		33,630
6.5% 9/1/37 (e)	37,000		37,706
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			71,336
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $1,394,638)		1,405,994
Asset-Backed Securities - 1.2%

Advanta Business Card Master Trust Series 2007-D1 Class D, 6.9375% 1/22/13 (d)(h)	10,400		10,209
Airspeed Ltd. Series 2007-1A Class C1, 8.1113% 4/15/24 (d)(h)	11,868		11,760
AmeriCredit Prime Automobile Receivables Trust Series 2007-1 Class E, 6.96% 3/31/16 (d)	5,880		5,752
Capital Auto Receivables Asset Trust:
Series 2006-1 Class D, 7.16% 1/15/13 (d)	4,195		4,185
Series 2006-SN1A Class D, 6.15% 4/20/11 (d)	2,730		2,728
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (000s)
Carrington Mortgage Loan Trust Series 2006-NC3 Class M10, 7.505% 8/25/36 (d)(h)	$ 1,449		$ 317
Countrywide Home Loan Trust Series 2006-13N Class N, 7% 8/25/37 (d)	3,796		2,771
DB Master Finance LLC Series 2006-1 Class M1, 8.285% 6/20/31 (d)	5,545		5,699
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (d)	5,810		5,782
Series 2006-C Class D, 6.89% 5/15/13 (d)	4,115		4,094
Series 2007-A Class D, 7.05% 12/15/13 (d)	2,335		2,218
GS Auto Loan Trust Series 2006-1 Class D, 6.25% 1/15/14 (d)	7,046		6,893
GSAMP Trust Series 2004-AR1 Class B4, 5% 6/25/34 (d)(h)	2,180		1,090
Merna Reinsurance Ltd. Series 2007-1 Class B, 7.11% 6/30/12 (d)(h)	17,200		17,200
Structured Asset Securities Corp. Series 2006-BC1 Class B1, 8.005% 3/25/36 (d)(h)	4,513		691
Wachovia Auto Loan Trust Series 2006-2A:
Class A4, 5.23% 3/20/12 (d)	50,000		49,857
Class E, 7.05% 5/20/14 (d)	6,660		6,405
WaMu Asset-Backed Certificates Series 2006-HE5 Class B2, 8.005% 10/25/36 (d)(h)	6,417		770
TOTAL ASSET-BACKED SECURITIES (Cost $149,453)		138,421
Collateralized Mortgage Obligations - 3.4%

Private Sponsor - 1.4%
Banc of America Commercial Mortgage Trust Series 2007-2:
Class B, 5.6984% 4/10/17	1,775		1,672
Class C, 5.6984% 4/10/17	4,735		4,429
Class D, 5.6984% 5/10/17	2,370		2,200
Banc of America Mortgage Securities, Inc.:
Series 2003-J Class 2A2, 4.3919% 11/25/33 (h)	5,153		5,069
Series 2004-A Class 2A1, 3.5523% 2/25/34 (h)	3,024		2,941
Series 2004-D Class 2A1, 3.6156% 5/25/34 (h)	1,457		1,415
Series 2005-H:
Class 1A1, 4.9226% 9/25/35 (h)	1,600		1,581
Class 2A2, 4.8021% 9/25/35 (h)	1,642		1,599
Bayview Commercial Asset Trust Series 2006-3A Class IO, 1.1688% 10/25/36 (h)(j)	80,162		9,459
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
Private Sponsor - continued
Chase Mortgage Finance Trust:
Series 2007-A1:
Class 1A5, 4.3588% 2/25/37 (h)	$ 1,037		$ 1,022
Class 5A1, 4.1708% 2/25/37 (h)	7,979		7,785
Series 2007-A2:
Class 2A1, 4.243% 7/25/37 (h)	4,533		4,463
Class 3A1, 4.566% 7/25/37 (h)	8,168		8,022
Countrywide Home Loans pass-thru certificates Series 2007-HY5 Class 3A1, 6.2335% 9/25/37 (h)	7,755		7,639
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 4.6454% 11/25/34 (h)	4,298		4,223
GMAC Mortgage Loan Trust Series 2005-AR6 Class 3A1, 5.3013% 11/19/35 (h)	9,288		9,110
JPMorgan Mortgage Trust:
Series 2006-A4 Class 1A1, 5.8257% 6/25/36 (h)	1,589		1,577
Series 2007-A1 Class 3A2, 5.0072% 7/25/35 (h)	4,492		4,423
RESI Finance LP/RESI Finance DE Corp. floater:
Series 2003-B Class B6, 8.2% 7/10/35 (d)(h)	4,245		4,287
Series 2003-CB1:
Class B4, 7% 6/10/35 (d)(h)	4,039		4,059
Class B5, 7.6% 6/10/35 (d)(h)	2,757		2,770
Class B6, 8.1% 6/10/35 (d)(h)	1,636		1,652
Structured Asset Securities Corp. floater Series 2006-BC5 Class B, 8.005% 12/25/36 (d)(h)	4,593		1,636
WaMu Mortgage pass-thru certificates:
Series 2004-AR7 Class A6, 3.941% 7/25/34 (h)	2,108		2,039
Series 2005-AR14 Class 1A1, 5.0596% 12/25/35 (h)	17,148		16,963
Wells Fargo Mortgage Backed Securities Trust:
Series 2005-AR12 Class 2A6, 4.3186% 7/25/35 (h)	1,349		1,316
Series 2005-AR3 Class 2A1, 4.187% 3/25/35 (h)	2,653		2,602
Series 2006-AR8 Class 3A1, 5.2377% 4/25/36 (h)	55,715		55,038
TOTAL PRIVATE SPONSOR			170,991
U.S. Government Agency - 2.0%
Freddie Mac Multi-class participation certificates guaranteed planned amortization class:
Series 2630 Class KS, 4% 1/15/17	22,130		21,303
Series 3079 Class MB, 5% 10/15/28	30,807		30,561
Series 3082 Class PG, 5% 10/15/29	50,300		49,866
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Freddie Mac Multi-class participation certificates guaranteed planned amortization class: - continued
Series 3118 Class QB, 5% 2/15/29	$ 33,731		$ 33,422
Series 3258 Class PM, 5.5% 12/15/36	95,231		95,856
TOTAL U.S. GOVERNMENT AGENCY			231,008
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $404,655)		401,999
Commercial Mortgage Securities - 1.4%

Bayview Commercial Asset Trust floater:
Series 2007-2A:
Class A1, 5.775% 7/25/37 (d)(h)	2,423		2,401
Class A2, 5.825% 7/25/37 (d)(h)	2,270		2,249
Class B1, 7.105% 7/25/37 (d)(h)	670		643
Class B2, 7.755% 7/25/37 (d)(h)	583		554
Class B3, 8.855% 7/25/37 (d)(h)	655		610
Class M1, 5.875% 7/25/37 (d)(h)	761		740
Class M2, 5.915% 7/25/37 (d)(h)	386		374
Class M3, 5.995% 7/25/37 (d)(h)	391		380
Class M4, 6.155% 7/25/37 (d)(h)	836		800
Class M5, 6.255% 7/25/37 (d)(h)	737		704
Class M6, 6.505% 7/25/37 (d)(h)	939		898
Series 2007-3:
Class B1, 6.455% 7/25/37 (d)(h)	659		649
Class B2, 7.105% 7/25/37 (d)(h)	1,726		1,700
Class B3, 9.505% 7/25/37 (d)(h)	882		869
Class M1, 5.815% 7/25/37 (d)(h)	572		569
Class M2, 5.845% 7/25/37 (d)(h)	611		607
Class M3, 5.875% 7/25/37 (d)(h)	999		992
Class M4, 6.005% 7/25/37 (d)(h)	1,576		1,562
Class M5, 6.105% 7/25/37 (d)(h)	785		778
Class M6, 6.305% 7/25/37 (d)(h)	596		590
Chase Commercial Mortgage Securities Corp. Series 2000-3 Class G 6.887% 10/15/32 (d)	9,742		10,012
Credit Suisse First Boston Mortgage Securities Corp. Series 2004-C1 Class ASP, 0.7916% 1/15/37 (d)(h)(j)	170,220		4,013
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Ginnie Mae guaranteed REMIC pass-thru securities sequential payer Series 2003-47 Class C, 4.227% 10/16/27	$ 10,128		$ 9,927
GMAC Commercial Mortgage Securities, Inc. Series 2004-C3 Class X2, 0.6778% 12/10/41 (h)(j)	14,951		289
GS Mortgage Securities Corp. II floater Series 2007-EOP:
Class H, 5.98% 3/1/20 (d)(h)	960		936
Class J:
6.18% 3/1/20 (d)(h)	1,375		1,341
6.38% 3/1/20 (d)(h)	960		936
GS Mortgage Securities Trust sequential payer Series 2007-GG10 Class A4, 5.9933% 8/10/45 (h)	7,400		7,469
JPMorgan Chase Commercial Mortgage Securities Corp. sequential payer Series 2006-LDP9 Class A2, 5.134% 5/15/47 (h)	18,365		17,785
JPMorgan Chase Commercial Mortgage Securities Trust sequential payer Series 2007-CB19 Class A4, 5.747% 2/12/49 (h)	7,600		7,625
LB Commercial Mortgage Trust sequential payer Series 2007-C3 Class A4, 6.1339% 7/15/44	18,248		18,624
ML-CFC Commercial Mortgage Trust Series 2007-7 Class B, 5.75% 6/25/50	2,790		2,627
Morgan Stanley Capital I Trust sequential payer Series 2007-HQ11 Class A31, 5.439% 2/20/44 (h)	17,270		16,993
Wachovia Bank Commercial Mortgage Trust:
sequential payer Series 2007-C31:
Class A1, 5.14% 4/15/47	5,432		5,384
Class A4, 5.509% 4/15/47	31,752		31,178
Series 2007-C31 Class C, 5.6917% 4/15/47 (h)	8,950		8,476
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $163,641)		162,284
Municipal Securities - 0.3%

California Gen. Oblig. 5% 9/1/35	27,300		27,355
Chicago Board of Ed. Series A, 5.5% 12/1/30 (AMBAC Insured)	5,000		5,524
TOTAL MUNICIPAL SECURITIES (Cost $34,833)		32,879
Foreign Government and Government Agency Obligations - 0.0%
	Principal Amount (000s)		Value (000s)
Israeli State 4.625% 6/15/13 (Cost $6,668)	$ 6,725		$ 6,623
Supranational Obligations - 0.0%

Corporacion Andina de Fomento:
5.2% 5/21/13	1,575		1,563
6.875% 3/15/12	1,630		1,736
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $3,182)		3,299

Fixed-Income Funds - 59.9%
	Shares
Fidelity 1-3 Year Duration Securitized Bond Central Fund (i)	7,175,156		684,797
Fidelity 2-5 Year Duration Securitized Bond Central Fund (i)	11,040,053		1,079,607
Fidelity Corporate Bond 1-5 Year Central Fund (i)	6,400,645		633,792
Fidelity Mortgage Backed Securities Central Fund (i)	23,225,004		2,282,321
Fidelity Specialized High Income Central Fund (i)	1,587,157		153,954
Fidelity Ultra-Short Central Fund (i)	24,612,807		2,327,141
TOTAL FIXED-INCOME FUNDS (Cost $7,390,853)		7,161,612
Preferred Securities - 0.1%
	Principal Amount (000s)
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
MUFG Capital Finance 1 Ltd. 6.346% (h) (Cost $15,235)	$ 15,235		14,638
Cash Equivalents - 13.3%
	Maturity Amount (000s)
Investments in repurchase agreements in a joint trading account at:
5.02%, dated 8/31/07 due 9/4/07 (Collateralized by U.S. Treasury Obligations) #	97,901		97,846
Cash Equivalents - continued
	Maturity Amount (000s)		Value (000s)
Investments in repurchase agreements in a joint trading account at: - continued
5.37%, dated 8/31/07 due 9/4/07 (Collateralized by U.S. Government Obligations) #	$ 1,021,094		$ 1,020,485
5.4%, dated 8/31/07 due 9/4/07 (Collateralized by U.S. Government Obligations) # (a)	469,647		469,365
TOTAL CASH EQUIVALENTS (Cost $1,587,696)		1,587,696
TOTAL INVESTMENT PORTFOLIO - 128.2% (Cost $15,596,241)			15,325,443
NET OTHER ASSETS - (28.2)%			(3,372,743)
NET ASSETS - 100%		$ 11,952,700

Swap Agreements
	Expiration Date	Notional Amount (000s)
Credit Default Swaps
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-HE8 Class B3, 7.3913% 9/25/34	Oct. 2034	$ 2,971	(522)
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	Oct. 2034	3,200	(708)
Receive monthly notional amount multiplied by 3.3% and pay to Morgan Stanley, Inc. upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11, Class M9, 6.88% 11/25/34	Dec. 2034	3,380	(920)
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	Sept. 2034	$ 2,971	$ (735)
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-NC7, Class B3, 7.6913% 7/25/34	August 2034	2,971	(458)
Receive from Bank of America upon credit event of Bristol-Myers Squibb Co., par value of the notional amount of Bristol-Myers Squibb Co. 5.25% 8/15/13, and pay quarterly notional amount multiplied by .30%	Sept. 2017	9,100	93
Receive from Bank of America upon credit event of Eli Lilly & Co., par value of the notional amount of Eli Lilly & Co. 6.57% 1/1/16, and pay quarterly notional amount multiplied by .22%	Sept. 2017	7,220	19
Receive from Bank of America, upon credit event of Gannett Co., Inc., par value of the notional amount of Gannett Co., Inc. 6.375% 4/1/12, and pay quarterly notional amount multiplied by .2%	June 2009	7,095	(12)
Receive from Citibank upon credit event of Bristol-Myers Squibb Co., par value of the notional amount of Bristol-Myers Squibb Co. 5.25% 8/15/13, and pay quarterly notional amount multiplied by .32%	Sept. 2017	3,800	33
Receive from Citibank upon credit event of Schering-Plough Corp., par value of the notional amount of Schering-Plough Corp. 5.55% 12/1/13, and pay quarterly notional amount multiplied by .4%	Sept. 2017	6,400	44
Receive from Citibank upon credit event of Schering-Plough Corp., par value of the notional amount of Schering-Plough Corp. 5.55% 12/1/13, and pay quarterly notional amount multiplied by .42%	Sept. 2017	10,900	58
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive from Citibank upon credit event of Washington Mutual, Inc., par value of the notional amount of Washington Mutual, Inc. 5.25% 9/15/17, and pay quarterly notional amount multiplied by .93%	Sept. 2012	$ 9,800	$ 91
Receive from Citibank upon credit event of Washington Mutual, Inc., par value of the notional amount of Washington Mutual, Inc. 5.25% 9/15/17, and pay quarterly notional amount multiplied by 1.07%	Sept. 2012	9,800	31
Receive from Deutsche Bank upon credit event of Aetna, Inc., par value of the notional amount of Aetna, Inc. 6.625% 6/15/36, and pay quarterly notional amount multiplied by .33%	Sept. 2017	17,250	280
Receive from Deutsche Bank upon credit event of Washington Mutual, Inc., par value of the notional amount of Washington Mutual, Inc. 5.25% 9/15/17, and pay quarterly notional amount multiplied by 1.19%	Sept. 2012	9,800	(23)
Receive from Deutsche Bank, upon credit event of Chartered Semiconductor Manufacturing Ltd., par value of the notional amount of Chartered Semiconductor Manufacturing Ltd. 6.375% 8/3/15 and pay quarterly notional amount multiplied by 1.14%	Sept. 2013	10,650	(79)
Receive from Deutsche Bank, upon credit event of Gannett Co., Inc., par value of the notional amount of Gannett Co., Inc. 6.375% 4/1/12, and pay quarterly notional amount multiplied by .24%	June 2009	8,895	(22)
Receive from Goldman Sachs upon credit event of CSX Corp., par value of the notional amount of CSX Corp. 5.30% 2/15/14, and pay quarterly notional amount multiplied by .77%	Sept. 2017	11,500	121
Receive from Goldman Sachs upon credit event of Dow Chemical Co., par value of the notional amount of Dow Chemical Co. 6% 10/1/12, and pay quarterly notional amount multiplied by .55%	Sept. 2017	13,700	31
Receive from Goldman Sachs upon credit event of Eli Lilly & Co., par value of the notional amount of Eli Lilly & Co. 6.57% 1/1/16, and pay quarterly notional amount multiplied by .24%	Sept. 2017	6,400	9
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive from Merrill Lynch, Inc. upon credit event of R.R. Donnelley & Sons Co., par value of the notional amount of R.R. Donnelley & Sons Co. 5.5% 5/15/15, and pay quarterly notional amount multiplied by 2.12%	Sept. 2013	$ 5,085	$ (439)
Receive from Merrill Lynch, Inc., upon credit event of R.R. Donnelley & Sons Co., par value of the notional amount of R.R. Donnelley & Sons Co. 5.5% 5/15/15 and pay quarterly notional amount multiplied by 1.68%	Sept. 2013	7,660	(480)
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 Dow Jones ABX AA 07-1 Index, par value of the proportional notional amount (g)	Sept. 2037	10,200	(2,856)
Receive monthly notional amount multiplied by .55% and pay Deutsche Bank upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2004-WCW1 Class M4, 6.835% 9/25/34	Oct. 2034	9,300	(1,736)
Receive monthly notional amount multiplied by .8% and pay Deutsche Bank upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WCH1 Class M6, 6.365% 1/25/35	Feb. 2035	3,200	(659)
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	August 2034	2,971	(330)
Receive monthly notional amount multiplied by .85% and pay Deutsche Bank upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M6, 6.105% 5/25/35	June 2035	3,200	(980)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R9 Class M5, 5.5913% 10/25/34	Nov. 2034	$ 2,971	$ (496)
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	Oct. 2034	2,971	(420)
Receive monthly notional amount multiplied by 1.6% and pay Morgan Stanley, Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	2,730	(847)
Receive monthly notional amount multiplied by 1.66% and pay Morgan Stanley, Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	2,971	(917)
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	April 2032	262	(8)
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 2004-1 Class M9, 7.3913% 2/25/34	March 2034	387	(55)
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	Feb. 2034	179	(145)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 2.7% and pay Morgan Stanley, Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M9, 6.41% 5/25/35	June 2035	$ 10,445	$ (4,522)
Receive monthly notional amount multiplied by 2.79% and pay Merrill Lynch, Inc. upon credit event of New Century Home Equity Loan Trust, par value of the notional amount of New Century Home Equity Loan Trust Series 2004-4 Class M9, 7.0788% 2/25/35	March 2035	5,139	(1,115)
Receive monthly notional amount multiplied by 3% and pay UBS upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2005-R4 Class M9, 7.07% 7/25/35	August 2035	4,750	(1,728)
Receive monthly notional amount multiplied by 5% and pay Deutsche Bank upon credit event of MASTR Asset Backed Securities Trust, par value of the notional amount of MASTR Asset Backed Securities Trust Series 2003-NC1 Class M6, 8.1913% 4/25/33	May 2033	2,971	(858)
Receive monthly notional amount multiplied by 5.55% and pay Deutsche Bank upon credit event of Carrington Mortgage Loan Trust, par value of the notional amount of Carrington Mortgage Loan Trust Series 2006-FRE1 Class M10, 7.74% 7/25/36	August 2036	4,750	(1,994)
Receive monthly notional amount multiplied by 6.25% and pay Deutsche Bank upon credit event of Residential Asset Mortgage Products, Inc., par value of the notional amount of Residential Asset Mortgage Products, Inc. Series 2006-RS5, 7.17% 9/25/36	Oct. 2036	4,750	(3,328)
Receive quarterly notional amount multiplied by .31% and pay Deutsche Bank upon credit of Altria Group, Inc., par value of the notional amount of Altria Group 7% 11/4/13	June 2008	61,000	80
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive quarterly notional amount multiplied by .35% and pay Goldman Sachs upon credit event of Southern California Edison Co., par value of the notional amount of Southern California Edison Co. 7.625% 1/15/10	Sept. 2010	$ 11,200	$ 49
Receive quarterly notional amount multiplied by .68% and pay Lehman Brothers, Inc. upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. 4% 3/22/11	March 2012	1,450	(116)
Receive quarterly notional amount multiplied by .72% and pay Bank of America upon credit event of Alleghany Energy Supply Co. LLC, par value of the notional amount of Alleghany Energy Supply Co. LLC 8.25% 4/15/12	June 2012	10,500	(215)
Receive quarterly notional amount multiplied by .78% and pay Deutsche Bank upon credit event of Allegheny Energy Supply Co. LLC, par value of the notional amount of Allegheny Energy Supply Co. LLC 8.25% 4/15/12	June 2012	10,505	(192)
Receive semi-annually notional amount multiplied by .285% and pay Deutsche Bank upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	April 2009	30,000	(142)
Receive semi-annually notional amount multiplied by .32% and pay Merrill Lynch, Inc. upon credit event of United Mexican States, par value of the notional amount of United Mexican States 7.5% 4/8/33	April 2011	30,000	(149)
Receive semi-annually notional amount multiplied by .41% and pay Credit Suisse First Boston upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	May 2012	13,700	(216)
Receive semi-annually notional amount multiplied by .495% and pay Credit Suisse First Boston, upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	Sept. 2011	5,750	(50)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Credit Default Swaps - continued
Receive semi-annually notional amount multiplied by .5% and pay Credit Suisse First Boston upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	June 2008	$ 22,335	$ 13
Receive semi-annually notional amount multiplied by .5% and pay Deutsche Bank upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	June 2008	14,815	9
Receive semi-annually notional amount multiplied by .53% and pay Credit Suisse First Boston upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	June 2008	12,150	11
Receive semi-annually notional amount multiplied by .78% and pay Deutsche Bank, upon credit event of United Mexican States, par value of the notional amount of United Mexican States 7.5% 4/8/33	Sept. 2016	2,400	14
TOTAL CREDIT DEFAULT SWAPS		470,500	(27,486)
Interest Rate Swaps
Receive quarterly a fixed rate equal to 4.898% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	August 2014	32,550	(294)
Receive semi-annually a fixed rate equal to 4.745% and pay quarterly a floating rate based on 3-month LIBOR with UBS	Jan. 2011	70,000	(376)
Receive semi-annually a fixed rate equal to 4.975% and pay quarterly a floating rate based on 3-month LIBOR with Bank of America	Nov. 2011	200,000	2,774
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Value (000s)
Interest Rate Swaps - continued
Receive semi-annually a fixed rate equal to 5.0375% and pay quarterly a floating rate based on 3-month LIBOR with Bank of America	Nov. 2010	$ 270,000	$ 4,490
Receive semi-annually a fixed rate equal to 5.51% and pay quarterly a floating rate based on 3-month LIBOR with Deutsche Bank	Nov. 2036	75,000	1,606
TOTAL INTEREST RATE SWAPS		647,550	8,200
Total Return Swaps
Receive monthly a return equal to Lehman Brothers CMBS AAA 8.5+ and pay monthly a floating rate based on 1-month LIBOR minus 5.5 basis points with Lehman Brothers, Inc.	Oct. 2007	200,000	2,646
Receive monthly a return equal to Lehman Brothers CMBS AAA 8.5+ Index and pay monthly a floating rate based on 1-month LIBOR minus 25 basis points with Lehman Brothers, Inc.	May 2008	30,000	402
TOTAL TOTAL RETURN SWAPS		230,000	3,048
		$ 1,348,050	$ (16,238)

Legend

(a) Includes investment made with cash collateral received from securities on loan.

(b) Non-income producing.

(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 $529,331,000 or 4.4% of net assets.

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

(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 $23,600,000

(g) Represents a tradable index of credit default swaps on home equity asset-backed debt securities.

(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(i) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete 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. A holdings list 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.

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

Repurchase Agreement / Counterparty	Value (Amounts in thousands)
$97,846,000 due 9/04/07 at 5.02%
Banc of America Securities LLC	$ 8,551
Citigroup Global Markets, Inc.	31,094
Lehman Brothers, Inc.	26,310
UBS Securities LLC	31,891
	$ 97,846
$1,020,485,000 due 9/04/07 at 5.37%
BNP Paribas Securities Corp.	$ 23,580
Banc of America Securities LLC	361,360
Bank of America, NA	162,419
Bear Stearns & Co., Inc.	20,302
Citigroup Global Markets, Inc.	64,033
Credit Suisse Securities (USA) LLC	40,605
Greenwich Capital Markets, Inc.	20,302
HSBC Securities (USA), Inc.	40,605
ING Financial Markets LLC	81,210
Societe Generale, New York Branch	121,814
UBS Securities LLC	39,590
WestLB AG	44,665
	$ 1,020,485
$469,365,000 due 9/04/07 at 5.40%
Barclays Capital, Inc.	$ 300,792
Citigroup Global Markets, Inc.	39,662
Countrywide Securities Corp.	128,911
	$ 469,365

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 1-3 Year Duration Securitized Bond Central Fund	$ 25,613
Fidelity 2-5 Year Duration Securitized Bond Central Fund	41,386
Fidelity Corporate Bond 1-5 Year Central Fund	40,632
Fidelity Mortgage Backed Securities Central Fund	90,380
Fidelity Specialized High Income Central Fund	7,206
Fidelity Ultra-Short Central Fund	154,297
Total	$ 359,514

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 1-3 Year Duration Securitized Bond Central Fund	$ -	$ 715,630 *	$ -	$ 684,797	24.6%
Fidelity 2-5 Year Duration Securitized Bond Central Fund	-	1,102,295 *	-	1,079,607	28.4%
Fidelity Corporate Bond 1-5 Year Central Fund	-	962,807 *	319,816	633,792	68.3%
Fidelity Mortgage Backed Securities Central Fund	-	2,320,775 *	-	2,282,321	26.5%
Fidelity Specialized High Income Central Fund	98,514	56,466	-	153,954	44.9%
Fidelity Ultra-Short Central Fund	1,960,403	1,307,326 *	792,665	2,327,141	18.5%
Total	$ 2,058,917	$ 6,465,299	$ 1,112,481	$ 7,161,612

* Includes the value of shares received through in-kind contributions. See note 6 of the Notes to Financial Statements.

Income Tax Information

At August 31, 2007, the fund had a capital loss carryforward of approximately $107,051,000 all of which will expire on August 31, 2014.

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

Annual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)	August 31, 2007

Assets
Investment in securities, at value (including securities loaned of $459,913 and repurchase agreements of $1,587,696) - See accompanying schedule: Unaffiliated issuers (cost $8,205,388)	$ 8,163,831
Fidelity Central Funds (cost $7,390,853)	7,161,612
Total Investments (cost $15,596,241)		$ 15,325,443
Cash		1
Receivable for investments sold		130
Receivable for swap agreements		199
Receivable for fund shares sold		8,061
Interest receivable		46,368
Distributions receivable from Fidelity Central Funds		36,735
Other receivables		88
Total assets		15,417,025

Liabilities
Payable for investments purchased Regular delivery	$ 151,601
Delayed delivery	2,817,328
Payable for fund shares redeemed	5,407
Distributions payable	1,306
Swap agreements, at value	16,238
Accrued management fee	3,126
Distribution fees payable	52
Other affiliated payables	1,351
Other payables and accrued expenses	173
Collateral on securities loaned, at value	467,743
Total liabilities		3,464,325

Net Assets		$ 11,952,700
Net Assets consist of:
Paid in capital		$ 12,359,849
Undistributed net investment income		9,642
Accumulated undistributed net realized gain (loss) on investments		(132,477)
Net unrealized appreciation (depreciation) on investments		(284,314)
Net Assets		$ 11,952,700

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

Annual Report

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)	August 31, 2007

Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($78,580 ÷ 10,942 shares)		$ 7.18

Maximum offering price per share (100/96.00 of $7.18)		$ 7.48
Class T: Net Asset Value and redemption price per share ($67,673 ÷ 9,419 shares)		$ 7.18

Maximum offering price per share (100/96.00 of $7.18)		$ 7.48
Class B: Net Asset Value and offering price per share ($9,853 ÷ 1,371 shares)^A		$ 7.19

Class C: Net Asset Value and offering price per share ($16,801 ÷ 2,337 shares)^A		$ 7.19

Investment Grade Bond: Net Asset Value, offering price and redemption price per share ($11,738,517 ÷ 1,633,664 shares)		$ 7.19

Institutional Class: Net Asset Value, offering price and redemption price per share ($41,276 ÷ 5,739 shares)		$ 7.19

^ARedemption 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.

Annual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands	Year ended August 31, 2007

Investment Income
Dividends		$ 967
Interest		273,013
Income from Fidelity Central Funds		359,514
Total income		633,494

Expenses
Management fee	$ 36,104
Transfer agent fees	11,526
Distribution fees	522
Fund wide operations fee	3,679
Independent trustees' compensation	37
Miscellaneous	26
Total expenses before reductions	51,894
Expense reductions	(980)	50,914
Net investment income		582,580
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	25,913
Fidelity Central Funds	(27,309)
Capital gain distributions from Fidelity Central Funds	374
Swap agreements	(9,881)
Total net realized gain (loss)		(10,903)
Change in net unrealized appreciation (depreciation) on: Investment securities:
Unaffiliated securities	(28,325)
Fidelity Central Funds	(222,785)
Swap agreements	(14,738)
Delayed delivery commitments	28
Total change in net unrealized appreciation (depreciation)		(265,820)
Net gain (loss)		(276,723)
Net increase (decrease) in net assets resulting from operations		$ 305,857

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

Annual Report

Statement of Changes in Net Assets

Amounts in thousands	Year ended August 31, 2007	Four months ended August 31, 2006*	Year ended April 30, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 582,580	$ 149,398	$ 320,576
Net realized gain (loss)	(10,903)	(17,325)	(38,248)
Change in net unrealized appreciation (depreciation)	(265,820)	146,084	(184,829)
Net increase (decrease) in net assets resulting from operations	305,857	278,157	97,499
Distributions to shareholders from net investment income	(577,055)	(127,262)	(304,745)
Distributions to shareholders from net realized gain	(14,688)	-	(66,460)
Total distributions	(591,743)	(127,262)	(371,205)
Share transactions - net increase (decrease)	1,944,823	1,985,853	1,599,350
Total increase (decrease) in net assets	1,658,937	2,136,748	1,325,644

Net Assets
Beginning of period	10,293,763	8,157,015	6,831,371
End of period (including undistributed net investment income of $9,642, $11,929 and $289, respectively)	$ 11,952,700	$ 10,293,763	$ 8,157,015

* The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2006.

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

Annual Report

Financial Highlights - Class A

Years ended August 31,	2007	2006^H	2006^M	2005^M	2004^M	2003^I
Selected Per-Share Data
Net asset value, beginning of period	$ 7.35	$ 7.24	$ 7.50	$ 7.47	$ 7.70	$ 7.48
Income from Investment Operations
Net investment income^E	.353	.118	.298	.237	.224	.186
Net realized and unrealized gain (loss)	(.161)	.092	(.206)	.131	(.095)	.326
Total from investment operations	.192	.210	.092	.368	.129	.512
Distributions from net investment income	(.352)	(.100)	(.282)	(.238)	(.229)	(.172)
Distributions from net realized gain	(.010)	-	(.070)	(.100)	(.130)	(.120)
Total distributions	(.362)	(.100)	(.352)	(.338)	(.359)	(.292)
Net asset value, end of period	$ 7.18	$ 7.35	$ 7.24	$ 7.50	$ 7.47	$ 7.70
Total Return^B,C,D	2.61%	2.92%	1.23%	5.03%	1.68%	6.98%
Ratios to Average Net Assets^F,J
Expenses before reductions	.75%	.71%^A	.71%	.83%	.83%	.79%^A
Expenses net of fee waivers, if any	.75%	.71%^A	.71%	.83%	.83%	.79%^A
Expenses net of all reductions	.74%	.71%^A	.71%	.83%	.83%	.79%^A
Net investment income	4.83%	4.86%^A	4.04%	3.17%	2.96%	3.73%^A
Supplemental Data
Net assets, end of period (in millions)	$ 79	$ 46	$ 37	$ 31	$ 22	$ 8
Portfolio turnover rate^G	181%^L	206%^A,K	145%	227%	238%	276%

^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 four month period ended August 31. The Fund changed its fiscal year from April 30 to August 31, effective August 31, 2006.

^I For the period August 27, 2002 (commencement of sale of shares) to April 30, 2003.

^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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.

^K The portfolio turnover rate does not include the assets acquired in the merger.

^L Portfolio turnover rate excludes securities received or delivered through non-taxable in-kind activity.

^M For the period ended April 30.

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

Annual Report

Financial Highlights - Class T

Years ended August 31,	2007	2006^H	2006^M	2005^M	2004^M	2003^I
Selected Per-Share Data
Net asset value, beginning of period	$ 7.35	$ 7.24	$ 7.51	$ 7.47	$ 7.70	$ 7.48
Income from Investment Operations
Net investment income^E	.350	.116	.290	.230	.214	.180
Net realized and unrealized gain (loss)	(.163)	.091	(.216)	.141	(.094)	.324
Total from investment operations	.187	.207	.074	.371	.120	.504
Distributions from net investment income	(.347)	(.097)	(.274)	(.231)	(.220)	(.164)
Distributions from net realized gain	(.010)	-	(.070)	(.100)	(.130)	(.120)
Total distributions	(.357)	(.097)	(.344)	(.331)	(.350)	(.284)
Net asset value, end of period	$ 7.18	$ 7.35	$ 7.24	$ 7.51	$ 7.47	$ 7.70
Total Return^B,C,D	2.54%	2.89%	.98%	5.07%	1.56%	6.87%
Ratios to Average Net Assets^F,J
Expenses before reductions	.80%	.82%^A	.83%	.93%	.96%	.97%^A
Expenses net of fee waivers, if any	.80%	.82%^A	.83%	.93%	.95%	.95%^A
Expenses net of all reductions	.79%	.81%^A	.83%	.93%	.95%	.95%^A
Net investment income	4.77%	4.76%^A	3.92%	3.07%	2.84%	3.57%^A
Supplemental Data
Net assets, end of period (in millions)	$ 68	$ 59	$ 57	$ 48	$ 30	$ 10
Portfolio turnover rate^G	181%^L	206%^A,K	145%	227%	238%	276%