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 811-4085

Fidelity Income Fund
(Exact name of registrant as specified in charter)

245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)

Marc Bryant, Secretary

245 Summer St.

Boston, Massachusetts 02210
(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, 2015

Item 1. Reports to Stockholders

Contents Performance: The Bottom Line Management's Discussion of Fund Performance Shareholder Expense Example Investment Changes (Unaudited) Investments August 31, 2015 Financial Statements Notes to Financial Statements Report of Independent Registered Public Accounting Firm Trustees and Officers Distributions (Unaudited)

(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®

Government Income

Fund - Class A, Class T, Class B
and Class C

Annual Report

August 31, 2015

(Fidelity Cover Art)

Class A, Class T, Class B, and Class C are classes of Fidelity® Government Income Fund

Performance	(Click Here)	How the fund has done over time.
Management's Discussion of Fund Performance	(Click Here)	The Portfolio Manager's review of fund performance and strategy.
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)

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

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

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

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

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

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) 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. Returns reflect the conversion of Class B shares to Class A shares after a maximum of seven years.

Average Annual Total Returns

Periods ended August 31, 2015	Past 1 year	Past 5 years	Past 10 years
Class A (incl. 4.00% sales charge) ^A	-2.40%	1.21%	3.47%
Class T (incl. 4.00% sales charge) ^B	-2.39%	1.22%	3.49%
Class B (incl. contingent deferred sales charge)^C	-4.07%	0.93%	3.38%
Class C (incl. contingent deferred sales charge)^D	-0.12%	1.27%	3.21%

^A As of April 1, 2007, Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on October 24, 2006. Returns between October 24, 2006, and March 31, 2007, reflect a 0.15% 12b-1 fee. Returns prior to October 24, 2006, are those of Fidelity® Government Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class A's current 12b-1 fee been reflected, returns prior to April 1, 2007, would have been lower.

^B Class T shares bear a 0.25% 12b-1 fee. The initial offering of Class T shares took place on October 24, 2006. Returns prior to October 24, 2006, are those of Fidelity® Government Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class T's 12b-1 fee been reflected, returns prior to October 24, 2006, would have been lower.

^C Class B shares bear a 0.90% 12b-1 fee. The initial offering of Class B shares took place on October 24, 2006. Returns prior to October 24, 2006, are those of Fidelity Government Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class B's 12b-1 fee been reflected, returns prior to October 24, 2006, would have been lower. Class B shares' contingent deferred sales charges included in the past one year, past five years, and past ten years total return figures are 5%, 2%, and 0%, respectively.

^D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on October 24, 2006. Returns prior to October 24, 2006, are those of Fidelity Government Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class C's 12b-1 fee been reflected, returns prior to October 24, 2006, would have been lower. Class C shares' contingent deferred sales charges included in the past one year, past five years, and past ten years total return figures are 1%, 0%, and 0%, respectively.

Annual Report

Performance - continued

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Government Income Fund - Class A on August 31, 2005, and the current 4.00% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays® U.S. Government Bond Index performed over the same period. See footnote A on the previous page for additional information regarding the performance of Class A.

gvt2126670

Annual Report

Management's Discussion of Fund Performance

Market Recap: U.S. taxable investment-grade bonds posted a modest gain for the 12 months ending August 31, 2015, driven entirely by coupon (stated interest) payments amid expectations for an eventual hike in policy interest rates. The Barclays® U.S. Aggregate Bond Index returned 1.56% for the period. Longer-term bond yields trended lower and bottomed out in February on concerns about economic growth. They then trended higher until June due to expectations for higher policy interest rates. Yet the U.S. Federal Reserve took no action amid continued-low inflationary pressure and dampened economic expectations. Late in the period, market volatility spiked to roughly a four-year high in an environment of decreased bond issuance, weaker economic data emanating from China and falling crude-oil prices, all of which combined to lower expectations for a near-term rate increase while also raising demand for bonds, thus lowering yields. Among sectors in the Barclays index, U.S. Treasury bonds (+2%) strongly outperformed corporate bonds (-1%), as credit spreads - the yield premiums demanded by investors for holding riskier bonds - widened for much of the period. Outside of the index, high-yield declined and was among the weakest sectors. At period end, the Fed kept alive the chance that it may raise rates in 2015, but market expectations of a move before October decreased significantly.

Comments from William Irving, Lead Portfolio Manager: The fund's share classes posted low single-digit gains for the 12 months (excluding sales charges, if applicable), but overall lagged the 2.37% return of the benchmark Barclays 75% U.S. Government/25% U.S MBS Blended Index. Owning Treasury Inflation-Protected Securities (TIPS), which are not in the benchmark, hurt us. TIPS performed poorly as inflation expectations dropped to a five-year low. The fund's performance was hurt also by "pricing basis." The fund is priced daily at 4:00 p.m. Eastern time, while the benchmark is priced at 3:00 p.m. Eastern. This led to pricing dispersion on the final hour of the final day of the review period. In contrast, our focus on certain prepayment-resistant mortgage-backed securities (MBS) proved a plus, more than offsetting the modest amount of ground we lost by slightly overweighting the sector in lieu of comparable Treasuries. For example, our overweighting in high-coupon MBS aided our result. Overweighting reverse-mortgage securities, which can help older homeowners turn a portion of their home equity into cash, was another plus.

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, 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, 2015 to August 31, 2015).

Actual Expenses

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

Annual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio^B	Beginning Account Value March 1, 2015	Ending Account Value August 31, 2015	Expenses Paid During Period^CMarch 1, 2015 to August 31, 2015
Class A	.76%
Actual		$ 1,000.00	$ 996.80	$ 3.83
Hypothetical^A		$ 1,000.00	$ 1,021.37	$ 3.87
Class T	.76%
Actual		$ 1,000.00	$ 996.80	$ 3.83
Hypothetical^A		$ 1,000.00	$ 1,021.37	$ 3.87
Class B	1.48%
Actual		$ 1,000.00	$ 993.10	$ 7.44
Hypothetical^A		$ 1,000.00	$ 1,017.74	$ 7.53
Class C	1.53%
Actual		$ 1,000.00	$ 992.90	$ 7.69
Hypothetical^A		$ 1,000.00	$ 1,017.49	$ 7.78
Government Income	.45%
Actual		$ 1,000.00	$ 998.30	$ 2.27
Hypothetical^A		$ 1,000.00	$ 1,022.94	$ 2.29
Class I	.50%
Actual		$ 1,000.00	$ 998.10	$ 2.52
Hypothetical^A		$ 1,000.00	$ 1,022.68	$ 2.55

^A 5% return per year before expenses

^B Annualized expense ratio reflects expenses net of applicable fee waivers.

^C Expenses are equal to each Class' annualized expense ratio, 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 each Class' annualized expense ratio.

In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying non-money market Fidelity Central Funds as of their most recent fiscal half year were less than .005%.

Annual Report

Investment Changes (Unaudited)

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's fixed-income central funds.

Coupon Distribution as of August 31, 2015
	% of fund's investments	% of fund's investments 6 months ago
Zero coupon bonds	0.0	0.0
0.01 - 0.99%	17.1	17.1
1 - 1.99%	23.1	24.3
2 - 2.99%	12.3	10.5
3 - 3.99%	22.4	20.5
4 - 4.99%	13.2	13.9
5 - 5.99%	9.2	9.2
6 - 6.99%	0.7	0.9
7% and above	0.7	0.9

Coupon distribution shows the range of stated interest rates on the fund's investments, excluding short-term investments.

Weighted Average Maturity as of August 31, 2015
		6 months ago
Years	5.9	6.0

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

Duration as of August 31, 2015
		6 months ago
Years	5.0	4.8

Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration.

Percentages shown as 0.0% may reflect amounts less than 0.05%.
Asset Allocation (% of fund's net assets)
As of August 31, 2015*		As of February 28, 2015**
	Mortgage Securities 24.5%		Mortgage Securities 25.7%
	CMOs and Other Mortgage Related Securities 24.7%		CMOs and Other Mortgage Related Securities 16.2%
	U.S. Treasury Obligations 47.1%		U.S. Treasury Obligations 51.9%
	U.S. Government Agency Obligations^† 2.8%		U.S. Government Agency Obligations^† 2.8%
	Foreign Government & Government Agency Obligations 3.6%		Foreign Government & Government Agency Obligations 2.9%
	Short-Term Investments and Net Other Assets (Liabilities)^†† (2.7)%		Short-Term Investments and Net Other Assets (Liabilities) 0.5%

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* Foreign investments	3.6%	** Foreign investments	2.9%
* Futures and Swaps	3.2%	** Futures and Swaps	3.8%
^† Includes NCUA Guaranteed Notes.

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

Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.

Annual Report

Investments August 31, 2015

Showing Percentage of Net Assets

U.S. Government and Government Agency Obligations - 49.9%
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - 0.8%
Fannie Mae:
1.125% 7/20/18	$ 229		$ 229
1.625% 11/27/18	913		924
Small Business Administration guaranteed development participation certificates:
Series 2002-20J Class 1, 4.75% 10/1/22	1,359		1,431
Series 2002-20K Class 1, 5.08% 11/1/22	2,161		2,317
Series 2004-20H Class 1, 5.17% 8/1/24	744		806
Tennessee Valley Authority:
1.75% 10/15/18	23,006		23,365
5.25% 9/15/39	2,807		3,445
5.375% 4/1/56	3,438		4,241
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			36,758
U.S. Treasury Inflation-Protected Obligations - 1.8%
U.S. Treasury Inflation-Indexed Bonds:
0.75% 2/15/45	58,733		52,833
1.375% 2/15/44	23,946		25,152
TOTAL U.S. TREASURY INFLATION-PROTECTED OBLIGATIONS			77,985
U.S. Treasury Obligations - 45.3%
U.S. Treasury Bonds:
2.875% 8/15/45	16,000		15,744
3% 11/15/44	22,500		22,611
3% 5/15/45	63,797		64,249
3.375% 5/15/44	6,265		6,764
3.625% 2/15/44 (e)	27,582		31,186
4.375% 2/15/38	51,154		64,683
5% 5/15/37 (d)	41,142		56,624
U.S. Treasury Notes:
0.375% 10/31/16	66,800		66,704
0.5% 2/28/17	64,339		64,236
0.5% 3/31/17	15,000		14,968
0.5% 4/30/17	49,500		49,371
0.625% 11/15/16	4,315		4,320
0.625% 12/15/16	1,129		1,130
0.625% 12/31/16	62,265		62,318
0.625% 2/15/17	12,000		12,003
0.625% 7/31/17	40,000		39,935
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
0.625% 8/31/17	$ 20,000		$ 19,953
0.75% 1/15/17	10,000		10,022
0.75% 6/30/17	3,736		3,738
0.75% 4/15/18	46,723		46,435
0.875% 11/30/16	7,522		7,554
0.875% 1/31/17	704		707
0.875% 5/15/17	15,893		15,944
0.875% 8/15/17	715		717
0.875% 10/15/17	4,191		4,195
0.875% 1/31/18	4,683		4,677
0.875% 7/31/19	6,174		6,056
1% 9/30/16	41,719		41,962
1% 10/31/16	39,991		40,219
1% 5/31/18	58,578		58,531
1% 8/15/18	20,000		19,966
1.25% 11/30/18	35,000		35,076
1.375% 7/31/18	14,780		14,908
1.375% 9/30/18	17,526		17,657
1.375% 2/28/19	69,770		70,048
1.375% 3/31/20	144,474		143,676
1.375% 4/30/20	4,172		4,146
1.375% 8/31/20	25,000		24,813
1.5% 12/31/18	10,768		10,868
1.5% 1/31/19	43,197		43,568
1.5% 1/31/22	59,399		57,988
1.625% 4/30/19	11,603		11,735
1.625% 6/30/19	51,223		51,747
1.625% 12/31/19	41,368		41,643
1.625% 6/30/20	21,692		21,777
1.625% 7/31/20 (b)	30,000		30,100
1.75% 9/30/19	78,340		79,388
1.75% 10/31/20	18,000		18,096
1.75% 2/28/22	5,000		4,953
1.75% 3/31/22	19,942		19,740
1.875% 8/31/17	27,000		27,581
1.875% 9/30/17	67,400		68,865
1.875% 8/31/22	15,000		14,955
2% 5/31/21	10,000		10,119
2% 7/31/22	10,000		10,043
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
2% 8/15/25	$ 15,000		$ 14,713
2.125% 6/30/21	22,000		22,400
2.125% 12/31/21	2,000		2,029
2.125% 6/30/22	51,197		51,860
2.125% 5/15/25	6,000		5,946
2.25% 3/31/21	17,358		17,828
2.25% 4/30/21	32,286		33,130
2.375% 7/31/17	741		764
2.5% 6/30/17	10,000		10,324
2.75% 11/30/16	18,530		19,043
3.125% 1/31/17	39,773		41,180
3.5% 2/15/18	23,836		25,314
4.5% 5/15/17	24,685		26,292
4.75% 8/15/17	12,983		13,985
TOTAL U.S. TREASURY OBLIGATIONS			1,975,820
Other Government Related - 2.0%
National Credit Union Administration Guaranteed Notes:
Series 2010-A1 Class A, 0.5385% 12/7/20 (NCUA Guaranteed) (f)	4,583		4,576
Series 2011-R4 Class 1A, 0.5708% 3/6/20 (NCUA Guaranteed) (f)	3,436		3,442
National Credit Union Administration Guaranteed Notes Master Trust 3.45% 6/12/21 (NCUA Guaranteed)	74,000		80,012
TOTAL OTHER GOVERNMENT RELATED			88,030
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,157,352)		2,178,593
U.S. Government Agency - Mortgage Securities - 3.6%

Fannie Mae - 1.8%
1.85% 10/1/33 (f)	186		193
1.885% 2/1/33 (f)	112		117
1.91% 12/1/34 (f)	196		205
1.91% 3/1/35 (f)	96		101
1.915% 11/1/33 (f)	277		291
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
1.931% 10/1/33 (f)	$ 65		$ 68
1.94% 7/1/35 (f)	68		71
2.05% 3/1/35 (f)	16		17
2.149% 3/1/36 (f)	664		701
2.19% 3/1/37 (f)	115		122
2.194% 7/1/34 (f)	118		125
2.273% 3/1/40 (f)	2,140		2,285
2.302% 6/1/36 (f)	189		202
2.334% 7/1/35 (f)	252		267
2.36% 11/1/36 (f)	119		127
2.421% 10/1/33 (f)	133		142
2.458% 3/1/35 (f)	100		107
2.511% 2/1/36 (f)	50		53
2.544% 5/1/36 (f)	182		194
2.557% 6/1/42 (f)	415		429
2.69% 2/1/42 (f)	2,314		2,393
2.758% 1/1/42 (f)	2,206		2,294
2.96% 11/1/40 (f)	244		256
2.982% 9/1/41 (f)	251		261
3% 9/1/45 (c)	20,700		20,789
3% 10/1/45 (c)	20,700		20,738
3.059% 10/1/41 (f)	111		116
3.239% 7/1/41 (f)	418		442
3.309% 10/1/41 (f)	235		247
3.554% 7/1/41 (f)	476		504
4% 2/1/42	488		521
4.5% 7/1/33 to 4/1/39	4,804		5,265
4.5% 9/1/45 (c)	4,800		5,200
5% 7/1/35	10,649		11,792
5.5% 1/1/29	2,275		2,542
6.5% 2/1/17 to 5/1/27	438		493
9.5% 10/1/20	13		14
11.5% 6/15/19 to 1/15/21	3		3
			79,687
Freddie Mac - 0.5%
1.82% 3/1/35 (f)	470		488
2.121% 5/1/37 (f)	323		345
2.394% 10/1/42 (f)	2,460		2,594
2.49% 6/1/35 (f)	456		485
2.506% 2/1/36 (f)	29		31
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
2.722% 3/1/33 (f)	$ 22		$ 24
2.757% 7/1/36 (f)	371		397
2.798% 7/1/35 (f)	1,216		1,301
3% 11/1/42 to 2/1/43	4,474		4,529
3.091% 9/1/41 (f)	2,412		2,510
3.155% 10/1/35 (f)	180		191
3.22% 9/1/41 (f)	271		284
3.235% 4/1/41 (f)	293		307
3.289% 6/1/41 (f)	311		329
3.444% 5/1/41 (f)	290		304
3.62% 6/1/41 (f)	452		478
3.705% 5/1/41 (f)	386		409
4.5% 5/1/39 to 10/1/41	4,137		4,530
5.5% 7/1/29	46		52
6% 1/1/24	1,784		1,966
9.5% 6/1/18 to 8/1/21	24		26
			21,580
Ginnie Mae - 1.3%
3.5% 9/1/45 (c)	100		104
4.3% 8/20/61 (k)	4,958		5,215
4.649% 2/20/62 (k)	3,412		3,662
4.682% 2/20/62 (k)	4,302		4,609
4.684% 1/20/62 (k)	25,578		27,361
5.47% 8/20/59 (k)	1,685		1,739
5.5% 11/15/35	2,634		2,983
5.612% 4/20/58 (k)	1,470		1,493
6% 6/15/36	5,823		6,779
			53,945
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $153,186)		155,212
Collateralized Mortgage Obligations - 14.2%

U.S. Government Agency - 14.2%
Fannie Mae:
floater:
Series 2001-38 Class QF, 1.1794% 8/25/31 (f)	130		133
Series 2002-49 Class FB, 0.7996% 11/18/31 (f)	118		119
Series 2002-60 Class FV, 1.1994% 4/25/32 (f)	51		52
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Fannie Mae: - continued
floater:
Series 2002-75 Class FA, 1.1994% 11/25/32 (f)	$ 105		$ 107
Series 2010-15 Class FJ, 1.1294% 6/25/36 (f)	8,297		8,452
planned amortization class:
Series 2005-19 Class PA, 5.5% 7/25/34	2,806		3,039
Series 2005-27 Class NE, 5.5% 5/25/34	2,058		2,134
Series 2005-64 Class PX, 5.5% 6/25/35	2,775		3,041
Series 2005-68 Class CZ, 5.5% 8/25/35	5,673		6,372
Series 2006-45 Class OP, 0% 6/25/36 (i)	1,186		1,053
Series 2010-118 Class PB, 4.5% 10/25/40	7,053		7,607
Series 2015-5 Class CP, 3% 6/25/43	42,093		43,657
Series 2015-54 Class GA, 2.5% 7/25/45	12,965		13,320
sequential payer:
Series 2003-117 Class MD, 5% 12/25/23	1,373		1,509
Series 2004-91 Class Z, 5% 12/25/34	8,205		9,070
Series 2005-117 Class JN, 4.5% 1/25/36	645		705
Series 2005-14 Class ZB, 5% 3/25/35	2,475		2,737
Series 2006-72 Class CY, 6% 8/25/26	5,377		5,953
Series 2009-59 Class HB, 5% 8/25/39	3,372		3,727
Series 2009-85 Class IB, 4.5% 8/25/24 (h)	584		48
Series 2009-93 Class IC, 4.5% 9/25/24 (h)	877		71
Series 2010-139 Class NI, 4.5% 2/25/40 (h)	5,712		810
Series 2010-39 Class FG, 1.1194% 3/25/36 (f)	5,215		5,347
Series 2010-97 Class CI, 4.5% 8/25/25 (h)	1,866		137
Series 2012-27 Class EZ, 4.25% 3/25/42	7,980		8,596
Freddie Mac:
floater:
Series 2530 Class FE, 0.7976% 2/15/32 (f)	72		73
Series 2630 Class FL, 0.6976% 6/15/18 (f)	57		57
Series 2682 Class FB, 1.0976% 10/15/33 (f)	4,544		4,636
Series 2711 Class FC, 1.0976% 2/15/33 (f)	2,845		2,897
planned amortization class:
Series 1141 Class G, 9% 9/15/21	60		69
Series 2356 Class GD, 6% 9/15/16	15		16
Series 2376 Class JE, 5.5% 11/15/16	109		111
Series 2381 Class OG, 5.5% 11/15/16	52		53
Series 2672 Class MG, 5% 9/15/23	6,659		7,214
Series 2682 Class LD, 4.5% 10/15/33	777		845
Series 3415 Class PC, 5% 12/15/37	843		910
Series 3763 Class QA, 4% 4/15/34	2,437		2,524
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Freddie Mac: - continued
planned amortization class sequential payer Series 2005-2963 Class VB, 5% 11/15/34	$ 3,536		$ 3,627
sequential payer:
Series 2004-2802 Class ZG, 5.5% 5/15/34	10,783		12,201
Series 2587 Class AD, 4.71% 3/15/33	5,180		5,574
Series 2773 Class HC, 4.5% 4/15/19	620		646
Series 2877 Class ZD, 5% 10/15/34	9,726		10,717
Series 3007 Class EW, 5.5% 7/15/25	8,067		8,898
Series 3745 Class KV, 4.5% 12/15/26	7,333		8,079
Series 3871 Class KB, 5.5% 6/15/41	13,870		15,770
Series 3843 Class PZ, 5% 4/15/41	2,316		2,729
Ginnie Mae guaranteed REMIC pass-thru certificates:
floater:
Series 2008-2 Class FD, 0.6828% 1/20/38 (f)	363		366
Series 2008-73 Class FA, 1.0628% 8/20/38 (f)	2,583		2,636
Series 2008-83 Class FB, 1.1028% 9/20/38 (f)	2,578		2,632
Series 2009-108 Class CF, 0.7976% 11/16/39 (f)	1,709		1,727
Series 2011-H20 Class FA, 0.7382% 9/20/61 (f)(k)	10,852		10,888
Series 2011-H21 Class FA, 0.7882% 10/20/61 (f)(k)	7,338		7,373
Series 2012-H01 Class FA, 0.8882% 11/20/61 (f)(k)	6,142		6,179
Series 2012-H03 Class FA, 0.8882% 1/20/62 (f)(k)	3,803		3,826
Series 2012-H06 Class FA, 0.8182% 1/20/62 (f)(k)	5,818		5,854
Series 2012-H07 Class FA, 0.8182% 3/20/62 (f)(k)	3,487		3,514
Series 2013-H19:
Class FC, 0.7882% 8/20/63 (f)(k)	1,238		1,245
Class FD, 0.7882% 8/20/63 (f)(k)	3,391		3,408
Series 2014-H02 Class FB, 0.8382% 12/20/63 (f)(k)	40,266		40,466
Series 2014-H03 Class FA, 0.7882% 1/20/64 (f)(k)	17,130		17,223
Series 2015-H07 Class FA, 0.3% 3/20/65 (f)(k)	28,047		27,988
Series 2015-H13 Class FL, 0.4682% 5/20/63 (f)(k)	45,007		44,917
Series 2015-H19 Class FA, 0.393% 4/20/63 (f)(k)	43,200		43,119
floater sequential payer Series 2011-150 Class D, 3% 4/20/37	246		249
sequential payer Series 2011-69 Class GX, 4.5% 5/16/40	10,205		11,267
Series 2010-H15 Class TP, 5.15% 8/20/60 (k)	18,677		20,146
Series 2010-H17 Class XP, 5.3% 7/20/60 (f)(k)	24,825		26,653
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Ginnie Mae guaranteed REMIC pass-thru certificates: - continued
Series 2010-H18 Class PL, 5.01% 9/20/60 (f)(k)	$ 18,269		$ 19,673
Series 2012-64 Class KB, 5.7099% 5/20/41 (f)	1,269		1,442
Series 2013-124:
Class ES, 8.3963% 4/20/39 (f)(j)	6,373		7,412
Class ST, 8.5297% 8/20/39 (f)(j)	11,972		14,055
Series 2015-H17 Class HA, 2.5% 5/20/65 (k)	17,318		17,747
Ginnie Mae pass thru certificates Series H69 Class JA, 2.5% 8/1/60 (k)	6,645		6,806
Ginnie Mae REMIC Trust Series H68 Class HA, 2.5% 9/1/60 (k)	55,661		57,061
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $616,193)		621,314
Commercial Mortgage Securities - 6.9%

Freddie Mac:
pass thru-certificates floater Series KF01 Class A, 0.5365% 4/25/19 (f)	550		548
pass-thru certificates sequential payer Series K011 Class A2, 4.084% 11/25/20	3,740		4,100
sequential payer:
Series K006 Class A2, 4.251% 1/25/20	24,840		27,174
Series K009 Class A2, 3.808% 8/25/20	32,528		35,158
Series K034 Class A1, 2.669% 2/25/23	14,765		15,188
Series K717 Class A2, 2.991% 9/25/21	9,506		9,880
Series K032 Class A1, 3.016% 2/25/23	25,691		26,908
Series K039 Class A2, 3.303% 7/25/24	24,645		25,575
Series K042 Class A2, 2.67% 12/25/24	22,200		21,856
Series K047 Class A2, 3.329% 5/25/25	32,284		33,485
Series K501 Class A2, 1.655% 11/25/16	9,638		9,707
Series K716 Class A2, 3.13% 6/25/21	6,500		6,821
Freddie Mac Multi-family Strutured Pass-thru Certificates:
sequential payer Series K718 Class A2, 2.791% 1/25/22	27,400		28,149
Series K044 Class A2, 2.811% 1/25/25	58,600		58,225
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $303,620)		302,774
Foreign Government and Government Agency Obligations - 3.6%
	Principal Amount (000s)		Value (000s)
Israeli State:
(guaranteed by U.S. Government through Agency for International Development):
5.5% 9/18/23	$ 72,266		$ 87,706
5.5% 12/4/23	48		58
5.5% 4/26/24	6,065		7,406
Jordanian Kingdom:
2.503% 10/30/20	41,050		42,349
3% 6/30/25	19,267		19,618
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $143,259)		157,137

Fixed-Income Funds - 24.0%
	Shares
Fidelity Mortgage Backed Securities Central Fund (g) (Cost $996,061)	9,569,826		1,044,642
Cash Equivalents - 3.3%
	Maturity Amount (000s)
Investments in repurchase agreements in a joint trading account at 0.15%, dated 8/31/15 due 9/1/15:
(Collateralized by U.S. Government Obligations) # (a)	$ 11,302		11,302
(Collateralized by U.S. Government Obligations) #	131,859		131,858
TOTAL CASH EQUIVALENTS (Cost $143,160)		143,160
TOTAL INVESTMENT PORTFOLIO - 105.5% (Cost $4,512,831)		4,602,832
NET OTHER ASSETS (LIABILITIES) - (5.5)%		(239,350)
NET ASSETS - 100%		$ 4,363,482
TBA Sale Commitments
	Principal Amount (000s)		Value (000s)
Fannie Mae
3% 9/1/45	$ (20,700)		$ (20,789)
4.5% 9/1/45	(4,800)		(5,200)
TOTAL TBA SALE COMMITMENTS (Proceeds $26,075)		$ (25,989)

Futures Contracts
	Expiration Date	Underlying Face Amount at Value (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Purchased
Treasury Contracts
207 CBOT 10 Year U.S. Treasury Note Contracts (United States)	Dec. 2015	$ 26,302	$ (170)
350 CBOT 2 Year U.S. Treasury Note Contracts (United States)	Dec. 2015	76,464	(116)
156 CBOT 5 Year U.S. Treasury Note Contracts (United States)	Dec. 2015	18,632	(89)
407 CBOT Ultra Long Term U.S. Treasury Bond Contracts (United States)	Dec. 2015	64,471	(770)
TOTAL TREASURY CONTRACTS		$ 185,869	$ (1,145)

The face value of futures purchased as a percentage of net assets is 4.3%

For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $214,309,000.

Swaps
Interest Rate Swaps
Clearinghouse/ Counterparty(1)	Expiration Date	Notional Amount(1) (000s)	Payment Received	Payment Paid	Value (000s)	Upfront Premium Received/ (Paid)(2) (000s)	Unrealized Appreciation/(Depreciation) (000s)
LCH	Sep. 2017	$ 11,600	3-month LIBOR	1.5%	$ (59)	$ 0	$ (59)
LCH	Sep. 2020	6,800	3-month LIBOR	2.25%	(126)	0	(126)
CME	Sep. 2025	22,400	2.75%	3-month LIBOR	653	0	653
CME	Sep. 2045	1,100	3%	3-month LIBOR	63	$ 0	$ 63
LCH	Sep. 2045	19,300	3-month LIBOR	3%	(1,217)	0	(1,217)
TOTAL INTEREST RATE SWAPS					$ (686)	$ 0	$ (686)

(1) Swaps with CME Group (CME) and LCH Clearnet Group (LCH) are centrally cleared over-the-counter (OTC) swaps.

(2) Any premiums for centrally cleared OTC swaps are recorded periodically throughout the term of the swap to variation margin and included in unrealized appreciation (depreciation).

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.

(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $2,465,000.

(e) Security or a portion of the security was pledged to cover margin requirements for centrally cleared OTC swaps. At period end, the value of securities pledged amounted to $4,252,000.

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

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

(h) 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 as of the end of the period.

(i) Principal Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans.

(j) Coupon is inversely indexed to a floating interest rate multiplied by a specified factor. The price may be considerably more volatile than the price of a comparable fixed rate security.

(k) Represents an investment in an underlying pool of reverse mortgages which typically do not require regular principal and interest payments as repayment is deferred until a maturity event.

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

Repurchase Agreement / Counterparty	Value (000s)
$11,302,000 due 9/01/15 at 0.15%
Commerz Markets LLC	$ 11,302
$131,858,000 due 9/01/15 at 0.15%
Commerz Markets LLC	$ 131,858

Affiliated Central Funds

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

Fund	Income earned (Amounts in thousands)
Fidelity Mortgage Backed Securities Central Fund	$ 22,562

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

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Mortgage Backed Securities Central Fund	$ 909,967	$ 129,953	$ 0	$ 1,044,642	20.4%

Other Information

The following is a summary of the inputs used, as of August 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:
Description (Amounts in thousands)	Total	Level 1	Level 2	Level 3
Investments in Securities:
U.S. Government and Government Agency Obligations	$ 2,178,593	$ -	$ 2,178,593	$ -
U.S. Government Agency - Mortgage Securities	155,212	-	155,212	-
Collateralized Mortgage Obligations	621,314	-	621,314	-
Commercial Mortgage Securities	302,774	-	302,774	-
Foreign Government and Government Agency Obligations	157,137	-	157,137	-
Fixed-Income Funds	1,044,642	1,044,642	-	-
Cash Equivalents	143,160	-	143,160	-
Total Investments in Securities:	$ 4,602,832	$ 1,044,642	$ 3,558,190	$ -
Derivative Instruments:
Assets
Swaps	$ 716	$ -	$ 716	$ -
Liabilities
Futures Contracts	$ (1,145)	$ (1,145)	$ -	$ -
Swaps	(1,402)	-	(1,402)	-
Total Liabilities:	$ (2,547)	$ (1,145)	$ (1,402)	$ -
Total Derivative Instruments:	$ (1,831)	$ (1,145)	$ (686)	$ -
Other Financial Instruments:
TBA Sale Commitments	$ (25,989)	$ -	$ (25,989)	$ -

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2015. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Primary Risk Exposure / Derivative Type	Value (000s)
	Asset	Liability
Interest Rate Risk
Futures Contracts (a)	$ -	$ (1,145)
Swaps (b)	716	(1,402)
Total Value of Derivatives	$ 716	$ (2,547)

(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities.

(b) For centrally cleared OTC swaps, reflects gross cumulative appreciation (depreciation) as presented in the Schedule of Investments. For centrally cleared OTC swaps, only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities.

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, 2015
Assets
Investment in securities, at value (including securities loaned of $11,081 and repurchase agreements of $143,160) - See accompanying schedule: Unaffiliated issuers (cost $3,516,770)	$ 3,558,190
Fidelity Central Funds (cost $996,061)	1,044,642
Total Investments (cost $4,512,831)		$ 4,602,832
Cash		1
Receivable for investments sold		248
Receivable for TBA sale commitments		26,075
Receivable for fund shares sold		4,671
Interest receivable		12,618
Other receivables		46
Total assets		4,646,491

Liabilities
Payable for investments purchased
Regular delivery	$ 181,734
Delayed delivery	46,843
TBA sale commitments, at value	25,989
Payable for fund shares redeemed	14,832
Distributions payable	181
Accrued management fee	1,121
Distribution and service plan fees payable	131
Payable for daily variation margin for derivative instruments	280
Other affiliated payables	551
Other payables and accrued expenses	45
Collateral on securities loaned, at value	11,302
Total liabilities		283,009

Net Assets		$ 4,363,482
Net Assets consist of:
Paid in capital		$ 4,285,969
Distributions in excess of net investment income		(1,257)
Accumulated undistributed net realized gain (loss) on investments		(9,486)
Net unrealized appreciation (depreciation) on investments		88,256
Net Assets		$ 4,363,482

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, 2015

Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($221,548 ÷ 21,104 shares)		$ 10.50

Maximum offering price per share (100/96.00 of $10.50)		$ 10.94
Class T:
Net Asset Value and redemption price per share ($180,646 ÷ 17,210 shares)		$ 10.50

Maximum offering price per share (100/96.00 of $10.50)		$ 10.94
Class B:
Net Asset Value and offering price per share ($5,890 ÷ 561 shares)^A		$ 10.50

Class C:
Net Asset Value and offering price per share ($54,262 ÷ 5,170 shares)^A		$ 10.50

Government Income:
Net Asset Value, offering price and redemption price per share ($3,489,132 ÷ 332,903 shares)		$ 10.48

Class I:
Net Asset Value, offering price and redemption price per share ($412,004 ÷ 39,251 shares)		$ 10.50

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

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

Annual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands	Year ended August 31, 2015

Investment Income
Interest		$ 60,410
Income from Fidelity Central Funds		22,562
Total income		82,972

Expenses
Management fee	$ 13,128
Transfer agent fees	4,750
Distribution and service plan fees	1,735
Fund wide operations fee	1,652
Independent trustees' compensation	18
Miscellaneous	17
Total expenses before reductions	21,300
Net investment income (loss)		61,672
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	25,952
Futures contracts	7,745
Swaps	(307)
Total net realized gain (loss)		33,390
Change in net unrealized appreciation (depreciation) on: Investment securities	(21,347)
Futures contracts	(2,587)
Swaps	28
Delayed delivery commitments	353
Total change in net unrealized appreciation (depreciation)		(23,553)
Net gain (loss)		9,837
Net increase (decrease) in net assets resulting from operations		$ 71,509

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, 2015	Year ended August 31, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 61,672	$ 65,951
Net realized gain (loss)	33,390	21,718
Change in net unrealized appreciation (depreciation)	(23,553)	87,347
Net increase (decrease) in net assets resulting from operations	71,509	175,016
Distributions to shareholders from net investment income	(57,747)	(66,200)
Distributions to shareholders from net realized gain	(10,638)	(2,860)
Total distributions	(68,385)	(69,060)
Share transactions - net increase (decrease)	395,805	(454,179)
Total increase (decrease) in net assets	398,929	(348,223)

Net Assets
Beginning of period	3,964,553	4,312,776
End of period (including distributions in excess of net investment income of $1,257 and distributions in excess of net investment income of $6,396, respectively)	$ 4,363,482	$ 3,964,553

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

Annual Report

Financial Highlights - Fidelity Government Income Fund Class A

Years ended August 31,	2015	2014	2013	2012	2011^H	2011^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.70	$ 10.84
Income from Investment Operations
Net investment income (loss)^E	.126	.138	.105	.141	.015	.199
Net realized and unrealized gain (loss)	.048	.278	(.454)	.327	.199	.108
Total from investment operations	.174	.416	(.349)	.468	.214	.307
Distributions from net investment income	(.116)	(.139)	(.099)	(.135)	(.014)	(.191)
Distributions from net realized gain	(.028)	(.007)	(.322)	(.263)	-	(.256)
Total distributions	(.144)	(.146)	(.421)	(.398)	(.014)	(.447)
Net asset value, end of period	$ 10.50	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.70
Total Return^{B, C, D}	1.67%	4.10%	(3.29)%	4.39%	2.00%	2.94%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.77%	.77%	.77%	.77%	.76%^A	.77%
Expenses net of fee waivers, if any	.77%	.77%	.77%	.77%	.76%^A	.77%
Expenses net of all reductions	.77%	.77%	.77%	.77%	.76%^A	.77%
Net investment income (loss)	1.20%	1.34%	.99%	1.30%	1.61%^A	1.88%
Supplemental Data
Net assets, end of period (in millions)	$ 222	$ 246	$ 291	$ 380	$ 345	$ 329
Portfolio turnover rate^G	83%	131%	192%	222%	466%^{A, K}	430%

^A Annualized

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

^C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any 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. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.

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

^H For the one month period ended August 31. The Fund changed its fiscal year from July 31 to August 31, effective August 31, 2011.

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

^J For the period ended July 31.

^K Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report

Financial Highlights - Fidelity Government Income Fund Class T

Years ended August 31,	2015	2014	2013	2012	2011^H	2011^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.69	$ 10.84
Income from Investment Operations
Net investment income (loss)^E	.127	.140	.107	.143	.015	.201
Net realized and unrealized gain (loss)	.048	.277	(.454)	.327	.209	.098
Total from investment operations	.175	.417	(.347)	.470	.224	.299
Distributions from net investment income	(.117)	(.140)	(.101)	(.137)	(.014)	(.193)
Distributions from net realized gain	(.028)	(.007)	(.322)	(.263)	-	(.256)
Total distributions	(.145)	(.147)	(.423)	(.400)	(.014)	(.449)
Net asset value, end of period	$ 10.50	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.69
Total Return^{B, C, D}	1.68%	4.12%	(3.27)%	4.41%	2.10%	2.86%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.76%	.76%	.75%	.75%	.75%^A	.76%
Expenses net of fee waivers, if any	.76%	.76%	.75%	.75%	.75%^A	.76%
Expenses net of all reductions	.76%	.76%	.75%	.75%	.75%^A	.76%
Net investment income (loss)	1.20%	1.36%	1.01%	1.32%	1.62%^A	1.89%
Supplemental Data
Net assets, end of period (in millions)	$ 181	$ 196	$ 228	$ 309	$ 286	$ 272
Portfolio turnover rate^G	83%	131%	192%	222%	466%^A,K	430%

^A Annualized

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

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

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

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

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

^H For the one month period ended August 31. The Fund changed its fiscal year from July 31 to August 31, effective August 31, 2011.

^J For the period ended July 31.

^K Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report

Financial Highlights - Fidelity Government Income Fund Class B

Years ended August 31,	2015	2014	2013	2012	2011^H	2011^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.69	$ 10.84
Income from Investment Operations
Net investment income (loss)^E	.049	.063	.028	.062	.008	.122
Net realized and unrealized gain (loss)	.049	.278	(.454)	.328	.210	.098
Total from investment operations	.098	.341	(.426)	.390	.218	.220
Distributions from net investment income	(.040)	(.064)	(.022)	(.057)	(.008)	(.114)
Distributions from net realized gain	(.028)	(.007)	(.322)	(.263)	-	(.256)
Total distributions	(.068)	(.071)	(.344)	(.320)	(.008)	(.370)
Net asset value, end of period	$ 10.50	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.69
Total Return^{B, C, D}	.93%	3.36%	(3.99)%	3.64%	2.04%	2.10%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	1.50%	1.50%	1.50%	1.49%	1.49%^A	1.50%
Expenses net of fee waivers, if any	1.50%	1.50%	1.50%	1.49%	1.49%^A	1.50%
Expenses net of all reductions	1.50%	1.50%	1.50%	1.49%	1.49%^A	1.50%
Net investment income (loss)	.46%	.61%	.26%	.58%	.90%^A	1.15%
Supplemental Data
Net assets, end of period (in millions)	$ 6	$ 9	$ 13	$ 20	$ 26	$ 25
Portfolio turnover rate^G	83%	131%	192%	222%	466%^A,K	430%

^A Annualized

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

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

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

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

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

^H For the one month period ended August 31. The Fund changed its fiscal year from July 31 to August 31, effective August 31, 2011.

^J For the period ended July 31.

^K Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report

Financial Highlights - Fidelity Government Income Fund Class C

Years ended August 31,	2015	2014	2013	2012	2011^H	2011^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.47	$ 10.20	$ 10.96	$ 10.90	$ 10.69	$ 10.84
Income from Investment Operations
Net investment income (loss)^E	.044	.059	.025	.060	.008	.121
Net realized and unrealized gain (loss)	.048	.278	(.443)	.318	.210	.098
Total from investment operations	.092	.337	(.418)	.378	.218	.219
Distributions from net investment income	(.034)	(.060)	(.020)	(.055)	(.008)	(.113)
Distributions from net realized gain	(.028)	(.007)	(.322)	(.263)	-	(.256)
Total distributions	(.062)	(.067)	(.342)	(.318)	(.008)	(.369)
Net asset value, end of period	$ 10.50	$ 10.47	$ 10.20	$ 10.96	$ 10.90	$ 10.69
Total Return^{B, C, D}	.88%	3.32%	(3.93)%	3.53%	2.04%	2.09%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	1.55%	1.54%	1.52%	1.51%	1.50%^A	1.51%
Expenses net of fee waivers, if any	1.55%	1.54%	1.52%	1.51%	1.50%^A	1.51%
Expenses net of all reductions	1.55%	1.54%	1.52%	1.51%	1.50%^A	1.51%
Net investment income (loss)	.42%	.57%	.24%	.56%	.88%^A	1.14%
Supplemental Data
Net assets, end of period (in millions)	$ 54	$ 58	$ 73	$ 98	$ 95	$ 89
Portfolio turnover rate^G	83%	131%	192%	222%	466%^A,K	430%

^A Annualized

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

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

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

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

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

^H For the one month period ended August 31. The Fund changed its fiscal year from July 31 to August 31, effective August 31, 2011.

^J For the period ended July 31.

^K Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report

Financial Highlights - Fidelity Government Income Fund

Years ended August 31,	2015	2014	2013	2012	2011^G	2011^I
Selected Per-Share Data
Net asset value, beginning of period	$ 10.45	$ 10.18	$ 10.95	$ 10.88	$ 10.68	$ 10.82
Income from Investment Operations
Net investment income (loss)^D	.159	.171	.138	.175	.018	.233
Net realized and unrealized gain (loss)	.048	.278	(.453)	.328	.199	.108
Total from investment operations	.207	.449	(.315)	.503	.217	.341
Distributions from net investment income	(.149)	(.172)	(.133)	(.170)	(.017)	(.225)
Distributions from net realized gain	(.028)	(.007)	(.322)	(.263)	-	(.256)
Total distributions	(.177)	(.179)	(.455)	(.433)	(.017)	(.481)
Net asset value, end of period	$ 10.48	$ 10.45	$ 10.18	$ 10.95	$ 10.88	$ 10.68
Total Return^{B, C}	1.99%	4.45%	(2.99)%	4.73%	2.03%	3.27%
Ratios to Average Net Assets^{E, H}
Expenses before reductions	.45%	.45%	.45%	.45%	.45%^A	.45%
Expenses net of fee waivers, if any	.45%	.45%	.45%	.45%	.45%^A	.45%
Expenses net of all reductions	.45%	.45%	.45%	.45%	.45%^A	.45%
Net investment income (loss)	1.51%	1.66%	1.31%	1.62%	1.91%^A	2.20%
Supplemental Data
Net assets, end of period (in millions)	$ 3,489	$ 3,157	$ 3,412	$ 4,313	$ 4,270	$ 4,167
Portfolio turnover rate^F	83%	131%	192%	222%	466%^A,J	430%

^A Annualized

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

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

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

^E Fees and expenses of any 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. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.

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

^G For the one month period ended August 31. The Fund changed its fiscal year from July 31 to August 31, effective August 31, 2011.

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

^I For the period ended July 31.

^J Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report

Financial Highlights - Fidelity Government Income Fund Class I

Years ended August 31,	2015	2014	2013	2012	2011^G	2011^I
Selected Per-Share Data
Net asset value, beginning of period	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.69	$ 10.84
Income from Investment Operations
Net investment income (loss)^D	.154	.166	.133	.169	.017	.225
Net realized and unrealized gain (loss)	.048	.277	(.454)	.327	.210	.099
Total from investment operations	.202	.443	(.321)	.496	.227	.324
Distributions from net investment income	(.144)	(.166)	(.127)	(.163)	(.017)	(.218)
Distributions from net realized gain	(.028)	(.007)	(.322)	(.263)	-	(.256)
Total distributions	(.172)	(.173)	(.449)	(.426)	(.017)	(.474)
Net asset value, end of period	$ 10.50	$ 10.47	$ 10.20	$ 10.97	$ 10.90	$ 10.69
Total Return^{B, C}	1.94%	4.38%	(3.03)%	4.66%	2.12%	3.10%
Ratios to Average Net Assets^{E, H}
Expenses before reductions	.50%	.51%	.51%	.51%	.52%^A	.52%
Expenses net of fee waivers, if any	.50%	.51%	.51%	.51%	.52%^A	.52%
Expenses net of all reductions	.50%	.51%	.51%	.51%	.52%^A	.52%
Net investment income (loss)	1.46%	1.61%	1.26%	1.56%	1.84%^A	2.13%
Supplemental Data
Net assets, end of period (in millions)	$ 412	$ 298	$ 296	$ 334	$ 344	$ 344
Portfolio turnover rate^F	83%	131%	192%	222%	466%^A,J	430%

^A Annualized

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

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

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

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

^G For the one month period ended August 31. The Fund changed its fiscal year from July 31 to August 31, effective August 31, 2011.

^I For the period ended July 31.

^J Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report

Notes to Financial Statements

For the period ended August 31, 2015

(Amounts in thousands except percentages)

1. Organization.

Fidelity Government Income Fund (the Fund) is a fund of Fidelity Income Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Government Income and Class I (formerly Institutional Class) shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.

2. Investments in Fidelity Central Funds.

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

Fidelity Central Fund

Investment Manager

Investment
Objective

Investment
Practices

Expense Ratio*

Fidelity Mortgage Backed Securities Central Fund

Fidelity Investment Money Management, Inc. (FIMM)

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

Delayed Delivery
& When Issued Securities

Repurchase Agreements

Swaps

Less than .005%

* Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual
shareholder report.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

2. Investments in Fidelity Central Funds - continued

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

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

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

Valuation techniques used to value the Fund's investments by major category are as follows:

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Foreign government and government agency obligations, U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Collateralized mortgage obligations, commercial mortgage securities and U.S. government agency mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Swaps are marked-to-market daily based on valuations from third party pricing vendors, registered derivatives clearing organizations (clearinghouses) or broker-supplied valuations. These pricing sources may utilize inputs such as interest rate curves, credit spread curves, default possibilities and recovery rates. When independent prices are unavailable or unreliable, debt securities and swaps may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities and swaps are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Investment Valuation - continued

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of August 31, 2015 is included at the end of the Fund's Schedule of Investments.

Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

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

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2015, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.

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

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

Gross unrealized appreciation	$ 72,462
Gross unrealized depreciation	(33,811)
Net unrealized appreciation (depreciation) on securities	$ 38,651

Tax cost	$ 4,564,181

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income	$ 21,224
Undistributed long-term capital gain	$ 18,581
Net unrealized appreciation (depreciation) on securities and other investments	$ 37,753

The tax character of distributions paid was as follows:

	August 31, 2015	August 31, 2014
Ordinary Income	$ 61,170	$ 69,060
Long-term Capital Gains	7,215	-
Total	$ 68,385	$ 69,060

Repurchase Agreements. Pursuant to an Exemptive Order issued by the SEC, the Fund along with other registered investment companies having management contracts with FMR, or other affiliated entities of FMR, are permitted 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 may be 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

3. Significant Accounting Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

To-Be-Announced (TBA) Securities and Mortgage Dollar Rolls. During the period, the Fund transacted in TBA securities that involved buying or selling mortgage-backed securities (MBS) on a forward commitment basis. A TBA transaction typically does not designate the actual security to be delivered and only includes an approximate principal amount; however delivered securities must meet specified terms defined by industry guidelines, including issuer, rate and current principal amount outstanding on underlying mortgage pools. The Fund may enter into a TBA transaction with the intent to take possession of or deliver the underlying MBS, or the Fund may elect to extend the settlement by entering into either a mortgage or reverse mortgage dollar roll. Mortgage dollar rolls are transactions where a fund sells TBA securities and simultaneously agrees to repurchase MBS on a later date at a lower price and with the same counterparty. Reverse mortgage dollar rolls involve the purchase and simultaneous agreement to sell TBA securities on a later date at a lower price. Transactions in mortgage dollar rolls and reverse mortgage dollar rolls are accounted for as purchases and sales and may result in an increase to the Fund's portfolio turnover rate.

Purchases and sales of TBA securities involve risks similar to those discussed above for delayed delivery and when-issued securities. Also, if the counterparty in a mortgage dollar roll or a reverse mortgage dollar roll transaction files for bankruptcy or becomes insolvent, the Fund's right to repurchase or sell securities may be limited. Additionally, when a fund sells TBA securities without already owning or having the right to obtain the deliverable securities (an uncovered forward commitment to sell), it incurs a risk of loss because it could have to purchase the securities at a price that is higher than the price at which it sold them. A fund may be unable to purchase the deliverable securities if the corresponding market is illiquid.

TBA securities subject to a forward commitment to sell at period end are included at the end of the Fund's Schedule of Investments under the caption "TBA Sale Commitments." The proceeds and value of these commitments are reflected in the Fund's Statement of Assets and Liabilities as Receivable for TBA sale commitments and TBA sale commitments, at value, respectively.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts, options and swaps. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Fund used derivatives to increase returns, to gain exposure to certain types of assets and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

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

Interest Rate Risk

Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain OTC derivatives such as options, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on bi-lateral OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral

Annual Report

4. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. The Fund may be required to pledge collateral for the benefit of the counterparties on bi-lateral OTC derivatives in an amount not less than each counterparty's unrealized appreciation on outstanding derivative contracts, subject to certain minimum transfer provisions, and any such pledged collateral is identified in the Schedule of Investments. Exchange-traded futures contracts are not covered by the ISDA Master Agreement; however counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade. Counterparty credit risk related to centrally cleared OTC swaps may be mitigated by the protection provided by the clearinghouse.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

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

Primary Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Interest Rate Risk
Futures Contracts	$ 7,745	$ (2,587)
Purchased Options	(1,266)	1,216
Swaps	(307)	28
Totals (a)	$ 6,172	$ (1,343)

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

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Notes to Financial Statements - continued

(Amounts in thousands except percentages)

4. Derivative Instruments - continued

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the bond market and fluctuations in interest rates.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.

Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date. The Fund uses OTC options, such as swaptions, which are options where the underlying instrument is a swap, to manage its exposure to fluctuations in interest rates.

Upon entering into an options contract, a fund will pay or receive a premium. Premiums paid on purchased options are reflected as cost of investments and premiums received on written options are reflected as a liability on the Statement of Assets and Liabilities. Certain options may be purchased or written with premiums to be paid or received on a future date. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When an option is exercised, the cost or proceeds of the underlying instrument purchased or sold is adjusted by the amount of the premium. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction is greater or less than the premium received or paid. When an option expires, gains and losses are realized to the extent of premiums received and paid, respectively. The net

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4. Derivative Instruments - continued

Options - continued

realized and unrealized gains (losses) on purchased options are included on the Statement of Operations in net realized gain (loss) and change in net unrealized appreciation (depreciation) on investment securities. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.

Any open options at period end are presented in the Schedule of Investments under the captions "Purchased Options," "Purchased Swaptions," "Written Options" and "Written Swaptions," as applicable.

Writing puts and buying calls tend to increase exposure to the underlying instrument while buying puts and writing calls tend to decrease exposure to the underlying instrument. For purchased options, risk of loss is limited to the premium paid, and for written options, risk of loss is the change in value in excess of the premium received.

Swaps. A swap is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount. A centrally cleared OTC swap is a transaction executed between a fund and a dealer counterparty, then cleared by a futures commission merchant (FCM) through a clearinghouse. Once cleared, the clearinghouse serves as a central counterparty, with whom a fund exchanges cash flows for the life of the transaction, similar to transactions in futures contracts.

Centrally cleared OTC swaps require a fund to deposit either cash or securities (initial margin) with the FCM, at the instruction of and for the benefit of the clearinghouse. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Centrally cleared OTC swaps are marked-to-market daily and subsequent payments (variation margin) are made or received depending on the daily fluctuations in the value of the swaps and are recorded as unrealized appreciation or (depreciation). These daily payments, if any, are included in receivable or payable for daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Any premiums for centrally cleared OTC swaps are recorded periodically throughout the term of the swap to variation margin and included in unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. Any premiums are recognized as realized gain (loss) upon termination or maturity of the swap.

Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Some swaps may be terminated prior to the effective date and realize a gain or loss upon termination. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is included in the Statement of Operations.

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Notes to Financial Statements - continued

(Amounts in thousands except percentages)

4. Derivative Instruments - continued

Swaps - continued

Any open swaps at period end are included in the Schedule of Investments under the caption "Swaps" and are representative of volume of activity during the period.

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

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $156,617 and $15,381, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .31% of the Fund's average net assets.

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

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6. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan Fees - continued

annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.

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

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$ 593	$ 4
Class T	-%	.25%	476	2
Class B	.65%	.25%	67	49
Class C	.75%	.25%	599	46
			$ 1,735	$ 101

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

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

	Retained by FDC
Class A	$ 14
Class T	4
Class B*	4
Class C*	5
	$ 27

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

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Government Income. FIIOC receives an asset-based fee of .10% of Government Income's average net

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Notes to Financial Statements - continued

(Amounts in thousands except percentages)

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

	Amount	% of Class-Level Average Net Assets
Class A	$ 395	.17
Class T	305	.16
Class B	19	.25
Class C	115	.19
Government Income	3,368	.10
Class I	548	.15
	$ 4,750

Fund Wide Operations Fee. Pursuant to the Fund Wide Operations and Expense Agreement (FWOE), the investment adviser has agreed to provide for fund level expenses (which do not include transfer agent, *Rule 12b-1 fees, compensation of the independent Trustees, interest (including commitment fees), taxes or extraordinary expenses, if any) in return for a FWOE fee equal to .35% less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annual rate of .04% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 $6 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

8. Security Lending.

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8. Security Lending - continued

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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is maintained at the Fund's custodian and/or invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $143.

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended August 31,	2015	2014
From net investment income
Class A	$ 2,625	$ 3,486
Class T	2,118	2,832
Class B	28	64
Class C	195	374
Government Income	47,788	54,450
Class I	4,993	4,994
Total	$ 57,747	$ 66,200
From net realized gain
Class A	$ 646	$ 183
Class T	523	147
Class B	22	8
Class C	154	46
Government Income	8,467	2,266
Class I	826	210
Total	$ 10,638	$ 2,860

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Notes to Financial Statements - continued

(Amounts in thousands except percentages)

10. Share Transactions.

Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:

	Shares		Dollars
Years ended August 31,	2015	2014	2015	2014
Class A
Shares sold	6,410	4,076	$ 67,517	$ 42,098
Reinvestment of distributions	298	333	3,143	3,442
Shares redeemed	(9,109)	(9,464)	(95,762)	(97,492)
Net increase (decrease)	(2,401)	(5,055)	$ (25,102)	$ (51,952)
Class T
Shares sold	5,058	3,767	$ 53,356	$ 38,865
Reinvestment of distributions	244	282	2,573	2,910
Shares redeemed	(6,808)	(7,679)	(71,811)	(79,131)
Net increase (decrease)	(1,506)	(3,630)	$ (15,882)	$ (37,356)
Class B
Shares sold	30	28	$ 319	$ 284
Reinvestment of distributions	4	5	40	54
Shares redeemed	(303)	(468)	(3,186)	(4,813)
Net increase (decrease)	(269)	(435)	$ (2,827)	$ (4,475)
Class C
Shares sold	2,397	725	$ 25,389	$ 7,489
Reinvestment of distributions	27	31	282	321
Shares redeemed	(2,806)	(2,355)	(29,497)	(24,278)
Net increase (decrease)	(382)	(1,599)	$ (3,826)	$ (16,468)
Government Income
Shares sold	102,857	58,390	$ 1,086,736	$ 600,976
Reinvestment of distributions	5,138	5,285	54,081	54,536
Shares redeemed	(77,145)	(96,607)	(811,762)	(993,763)
Net increase (decrease)	30,850	(32,932)	$ 329,055	$ (338,251)
Class I
Shares sold	22,692	9,661	$ 240,263	$ 99,548
Reinvestment of distributions	536	488	5,652	5,040
Shares redeemed	(12,486)	(10,680)	(131,528)	(110,265)
Net increase (decrease)	10,742	(531)	$ 114,387	$ (5,677)

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11. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum 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.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Income Fund and the Shareholders of Fidelity Government Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Government Income Fund (a fund of Fidelity Income Fund) at August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Government Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

October 22, 2015

Annual Report

Trustees and Officers

The Trustees, Member of the Advisory Board, and 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, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth S. Acton and John Engler, each of the Trustees oversees 235 funds. Ms. Acton and Mr. Engler each oversees 219 funds.

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) of the trust and the fund (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers and Advisory Board Member 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.

Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.

In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.

Annual Report

Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Marie L. Knowles serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.

Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, asset allocation and certain equity funds, and other Boards oversee Fidelity's high income, sector and other equity funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Boards. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustee*:

Correspondence intended for the Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.

Name, Year of Birth; Principal Occupations and Other Relevant Experience⁺
Abigail P. Johnson (1961)
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees
	Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC (diversified financial services company), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (investment adviser firm, 2011-present), Chairman and Director of FMR (investment adviser firm, 2011-present), and the Vice Chairman and Director (2007- present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc. (investment adviser firm), and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.

Annual Report

* Trustee has been determined to be an "Interested Trustee" by virtue of, among other things, her affiliation with the trust or various entities under common control with FMR.

⁺ The information above includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.

Independent Trustees:

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

Name, Year of Birth; Principal Occupations and Other Relevant Experience⁺
Elizabeth S. Acton (1951)
Year of Election or Appointment: 2013 Trustee
	Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present).
John Engler (1948)
Year of Election or Appointment: 2014 Trustee
	Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association.
Albert R. Gamper, Jr. (1942)
Year of Election or Appointment: 2006 Trustee
	Mr. Gamper also serves as Trustee of other Fidelity funds. 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 (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Chairman (2012-2015) and Vice Chairman (2011-2012) of the Independent Trustees of certain Fidelity funds and as Chairman of the Board of Governors, Rutgers University (2004-2007).
Robert F. Gartland (1951)
Year of Election or Appointment: 2010 Trustee
	Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007).
Arthur E. Johnson (1947)
Year of Election or Appointment: 2008 Trustee Vice Chairman of the Independent Trustees
	Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson.
Michael E. Kenneally (1954)
Year of Election or Appointment: 2009 Trustee
	Mr. Kenneally also serves as Trustee of other Fidelity funds. Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991.
James H. Keyes (1940)
Year of Election or Appointment: 2007 Trustee
	Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008).
Marie L. Knowles (1946)
Year of Election or Appointment: 2001 Trustee Chairman of the Independent Trustees
	Ms. Knowles also serves as Trustee of other Fidelity funds. 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). Ms. Knowles previously served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2012-2015).

⁺ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Advisory Board Member and Officers:

Correspondence intended for each officer, and Geoffrey A. von Kuhn may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation
Geoffrey A. von Kuhn (1951)
Year of Election or Appointment: 2015 Member of the Advisory Board
	Mr. von Kuhn also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Mr. von Kuhn is Chief Administrative Officer for FMR LLC (diversified financial services company, 2013-present), a Director of Pembroke Real Estate, Inc. (2009-present), and a Director of Discovery Natural Resources LLC (2012-present). Previously, Mr. von Kuhn was a managing director of Crosby Group (private wealth management company, 2007-2013), a member of the management committee and senior executive in the Wealth Management Group of AmSouth Bank (2001-2006), and head of the U.S. private bank at Citigroup (2000-2001).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer
	Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (diversified financial services company, 2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015 Secretary and Chief Legal Officer (CLO)
	Mr. Bryant also serves as Secretary and CLO of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jonathan Davis (1968)
Year of Election or Appointment: 2010 Assistant Treasurer
	Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2010 Assistant Treasurer
	Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005).
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2013 President and Treasurer
	Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014 Chief Financial Officer
	Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015 Vice President
	Mr. Goebel serves as an officer of other funds and is an employee of Fidelity Investments (2001-present). Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-present), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-present) and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-present); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-present) and FMR Co., Inc. (investment adviser firm, 2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-present) and FMR Investment Management (U.K.) Limited (investment adviser firm, 2008-present). Previously, Mr. Goebel served as Secretary and CLO of certain Fidelity funds (2008-2015), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Chris Maher (1972)
Year of Election or Appointment: 2013 Assistant Treasurer
	Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2015 Assistant Secretary
	Mr. Pogorelec also serves as Assistant Secretary of other funds. Mr. Pogorelec serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2006-present).
Nancy D. Prior (1967)
Year of Election or Appointment: 2014 Vice President
	Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (investment adviser firm, 2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (investment adviser firm, 2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2009 Assistant Treasurer
	Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.
Stephen Sadoski (1971)
Year of Election or Appointment: 2013 Deputy Treasurer
	Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013 Assistant Treasurer
	Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009).
Renee Stagnone (1975)
Year of Election or Appointment: 2013 Deputy Treasurer
	Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present).
Christine J. Thompson (1958)
Year of Election or Appointment: 2015 Vice President of Fidelity's Bond Funds
	Ms. Thompson also serves as Vice President of other funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments (1985-present). Previously, Ms. Thompson served as Vice President of Fidelity's Bond Funds (2010-2012).
Michael H. Whitaker (1967)
Year of Election or Appointment: 2008 Chief Compliance Officer
	Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2014-present), FMR (investment adviser firm, 2014-present), Fidelity Investments Money Management, Inc. (investment adviser firm, 2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel.
Joseph F. Zambello (1957)
Year of Election or Appointment: 2011 Deputy Treasurer
	Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments (1991-present). Previously, Mr. Zambello served as Vice President of the Program Management Group of FMR (investment adviser firm, 2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report

Distributions (Unaudited)

The Board of Trustees of Fidelity Government Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Class A	10/12/15	10/09/15	$0.082
Class T	10/12/15	10/09/15	$0.082
Class B	10/12/15	10/09/15	$0.082
Class C	10/12/15	10/09/15	$0.082

The fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2015, $21,856,234, or, if subsequently determined to be different, the net capital gain of such year.

A total of 37.14% 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 $38,762,225 of distributions paid during the period January 1, 2015 to August 31, 2015 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.

The fund will notify shareholders in January 2016 of amounts for use in preparing 2015 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Investments Money
Management, Inc.

FMR Investment Management (U.K.)
Limited

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York Mellon

New York, NY

(Fidelity Investment logo)(registered trademark)

AGVT-UANN-1015
1.834241.108

(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®

Government Income

Fund - Class I

(formerly Institutional Class)

Annual Report

August 31, 2015

(Fidelity Cover Art)

Class I is a class of
Fidelity® Government Income Fund

Performance	(Click Here)	How the fund has done over time.
Management's Discussion of Fund Performance	(Click Here)	The Portfolio Manager's review of fund performance and strategy.
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)

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.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended August 31, 2015	Past 1 year	Past 5 years	Past 10 years
Class I ^A	1.94%	2.30%	4.14%

^A The initial offering of Class I shares took place on October 24, 2006. Returns prior to October 24, 2006, are those of Fidelity® Government Income Fund, the original class of the fund.

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Government Income Fund - Class I on August 31, 2005. The chart shows how the value of your investment would have changed, and also shows how the Barclays® U.S. Government Bond Index performed over the same period. See footnote A above for additional information regarding the performance of Class I.

vti2338586

Annual Report

Management's Discussion of Fund Performance

Annual Report

Shareholder Expense Example

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, 2015 to August 31, 2015).

Actual Expenses

Hypothetical Example for Comparison Purposes

Annual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio^B	Beginning Account Value March 1, 2015	Ending Account Value August 31, 2015	Expenses Paid During Period^CMarch 1, 2015 to August 31, 2015
Class A	.76%
Actual		$ 1,000.00	$ 996.80	$ 3.83
Hypothetical^A		$ 1,000.00	$ 1,021.37	$ 3.87
Class T	.76%
Actual		$ 1,000.00	$ 996.80	$ 3.83
Hypothetical^A		$ 1,000.00	$ 1,021.37	$ 3.87
Class B	1.48%
Actual		$ 1,000.00	$ 993.10	$ 7.44
Hypothetical^A		$ 1,000.00	$ 1,017.74	$ 7.53
Class C	1.53%
Actual		$ 1,000.00	$ 992.90	$ 7.69
Hypothetical^A		$ 1,000.00	$ 1,017.49	$ 7.78
Government Income	.45%
Actual		$ 1,000.00	$ 998.30	$ 2.27
Hypothetical^A		$ 1,000.00	$ 1,022.94	$ 2.29
Class I	.50%
Actual		$ 1,000.00	$ 998.10	$ 2.52
Hypothetical^A		$ 1,000.00	$ 1,022.68	$ 2.55

^A 5% return per year before expenses

^B Annualized expense ratio reflects expenses net of applicable fee waivers.

Annual Report

Investment Changes (Unaudited)

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's fixed-income central funds.

Coupon Distribution as of August 31, 2015
	% of fund's investments	% of fund's investments 6 months ago
Zero coupon bonds	0.0	0.0
0.01 - 0.99%	17.1	17.1
1 - 1.99%	23.1	24.3
2 - 2.99%	12.3	10.5
3 - 3.99%	22.4	20.5
4 - 4.99%	13.2	13.9
5 - 5.99%	9.2	9.2
6 - 6.99%	0.7	0.9
7% and above	0.7	0.9

Coupon distribution shows the range of stated interest rates on the fund's investments, excluding short-term investments.

Weighted Average Maturity as of August 31, 2015
		6 months ago
Years	5.9	6.0

Duration as of August 31, 2015
		6 months ago
Years	5.0	4.8

Percentages shown as 0.0% may reflect amounts less than 0.05%.
Asset Allocation (% of fund's net assets)
As of August 31, 2015*		As of February 28, 2015**
	Mortgage Securities 24.5%		Mortgage Securities 25.7%
	CMOs and Other Mortgage Related Securities 24.7%		CMOs and Other Mortgage Related Securities 16.2%
	U.S. Treasury Obligations 47.1%		U.S. Treasury Obligations 51.9%
	U.S. Government Agency Obligations^† 2.8%		U.S. Government Agency Obligations^† 2.8%
	Foreign Government & Government Agency Obligations 3.6%		Foreign Government & Government Agency Obligations 2.9%
	Short-Term Investments and Net Other Assets (Liabilities)^†† (2.7)%		Short-Term Investments and Net Other Assets (Liabilities) 0.5%

vti2338612

* Foreign investments	3.6%	** Foreign investments	2.9%
* Futures and Swaps	3.2%	** Futures and Swaps	3.8%
^† Includes NCUA Guaranteed Notes.

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

Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.

Annual Report

Investments August 31, 2015

Showing Percentage of Net Assets

U.S. Government and Government Agency Obligations - 49.9%
	Principal Amount (000s)		Value (000s)
U.S. Government Agency Obligations - 0.8%
Fannie Mae:
1.125% 7/20/18	$ 229		$ 229
1.625% 11/27/18	913		924
Small Business Administration guaranteed development participation certificates:
Series 2002-20J Class 1, 4.75% 10/1/22	1,359		1,431
Series 2002-20K Class 1, 5.08% 11/1/22	2,161		2,317
Series 2004-20H Class 1, 5.17% 8/1/24	744		806
Tennessee Valley Authority:
1.75% 10/15/18	23,006		23,365
5.25% 9/15/39	2,807		3,445
5.375% 4/1/56	3,438		4,241
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			36,758
U.S. Treasury Inflation-Protected Obligations - 1.8%
U.S. Treasury Inflation-Indexed Bonds:
0.75% 2/15/45	58,733		52,833
1.375% 2/15/44	23,946		25,152
TOTAL U.S. TREASURY INFLATION-PROTECTED OBLIGATIONS			77,985
U.S. Treasury Obligations - 45.3%
U.S. Treasury Bonds:
2.875% 8/15/45	16,000		15,744
3% 11/15/44	22,500		22,611
3% 5/15/45	63,797		64,249
3.375% 5/15/44	6,265		6,764
3.625% 2/15/44 (e)	27,582		31,186
4.375% 2/15/38	51,154		64,683
5% 5/15/37 (d)	41,142		56,624
U.S. Treasury Notes:
0.375% 10/31/16	66,800		66,704
0.5% 2/28/17	64,339		64,236
0.5% 3/31/17	15,000		14,968
0.5% 4/30/17	49,500		49,371
0.625% 11/15/16	4,315		4,320
0.625% 12/15/16	1,129		1,130
0.625% 12/31/16	62,265		62,318
0.625% 2/15/17	12,000		12,003
0.625% 7/31/17	40,000		39,935
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
0.625% 8/31/17	$ 20,000		$ 19,953
0.75% 1/15/17	10,000		10,022
0.75% 6/30/17	3,736		3,738
0.75% 4/15/18	46,723		46,435
0.875% 11/30/16	7,522		7,554
0.875% 1/31/17	704		707
0.875% 5/15/17	15,893		15,944
0.875% 8/15/17	715		717
0.875% 10/15/17	4,191		4,195
0.875% 1/31/18	4,683		4,677
0.875% 7/31/19	6,174		6,056
1% 9/30/16	41,719		41,962
1% 10/31/16	39,991		40,219
1% 5/31/18	58,578		58,531
1% 8/15/18	20,000		19,966
1.25% 11/30/18	35,000		35,076
1.375% 7/31/18	14,780		14,908
1.375% 9/30/18	17,526		17,657
1.375% 2/28/19	69,770		70,048
1.375% 3/31/20	144,474		143,676
1.375% 4/30/20	4,172		4,146
1.375% 8/31/20	25,000		24,813
1.5% 12/31/18	10,768		10,868
1.5% 1/31/19	43,197		43,568
1.5% 1/31/22	59,399		57,988
1.625% 4/30/19	11,603		11,735
1.625% 6/30/19	51,223		51,747
1.625% 12/31/19	41,368		41,643
1.625% 6/30/20	21,692		21,777
1.625% 7/31/20 (b)	30,000		30,100
1.75% 9/30/19	78,340		79,388
1.75% 10/31/20	18,000		18,096
1.75% 2/28/22	5,000		4,953
1.75% 3/31/22	19,942		19,740
1.875% 8/31/17	27,000		27,581
1.875% 9/30/17	67,400		68,865
1.875% 8/31/22	15,000		14,955
2% 5/31/21	10,000		10,119
2% 7/31/22	10,000		10,043
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
2% 8/15/25	$ 15,000		$ 14,713
2.125% 6/30/21	22,000		22,400
2.125% 12/31/21	2,000		2,029
2.125% 6/30/22	51,197		51,860
2.125% 5/15/25	6,000		5,946
2.25% 3/31/21	17,358		17,828
2.25% 4/30/21	32,286		33,130
2.375% 7/31/17	741		764
2.5% 6/30/17	10,000		10,324
2.75% 11/30/16	18,530		19,043
3.125% 1/31/17	39,773		41,180
3.5% 2/15/18	23,836		25,314
4.5% 5/15/17	24,685		26,292
4.75% 8/15/17	12,983		13,985
TOTAL U.S. TREASURY OBLIGATIONS			1,975,820
Other Government Related - 2.0%
National Credit Union Administration Guaranteed Notes:
Series 2010-A1 Class A, 0.5385% 12/7/20 (NCUA Guaranteed) (f)	4,583		4,576
Series 2011-R4 Class 1A, 0.5708% 3/6/20 (NCUA Guaranteed) (f)	3,436		3,442
National Credit Union Administration Guaranteed Notes Master Trust 3.45% 6/12/21 (NCUA Guaranteed)	74,000		80,012
TOTAL OTHER GOVERNMENT RELATED			88,030
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,157,352)		2,178,593
U.S. Government Agency - Mortgage Securities - 3.6%

Fannie Mae - 1.8%
1.85% 10/1/33 (f)	186		193
1.885% 2/1/33 (f)	112		117
1.91% 12/1/34 (f)	196		205
1.91% 3/1/35 (f)	96		101
1.915% 11/1/33 (f)	277		291
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Fannie Mae - continued
1.931% 10/1/33 (f)	$ 65		$ 68
1.94% 7/1/35 (f)	68		71
2.05% 3/1/35 (f)	16		17
2.149% 3/1/36 (f)	664		701
2.19% 3/1/37 (f)	115		122
2.194% 7/1/34 (f)	118		125
2.273% 3/1/40 (f)	2,140		2,285
2.302% 6/1/36 (f)	189		202
2.334% 7/1/35 (f)	252		267
2.36% 11/1/36 (f)	119		127
2.421% 10/1/33 (f)	133		142
2.458% 3/1/35 (f)	100		107
2.511% 2/1/36 (f)	50		53
2.544% 5/1/36 (f)	182		194
2.557% 6/1/42 (f)	415		429
2.69% 2/1/42 (f)	2,314		2,393
2.758% 1/1/42 (f)	2,206		2,294
2.96% 11/1/40 (f)	244		256
2.982% 9/1/41 (f)	251		261
3% 9/1/45 (c)	20,700		20,789
3% 10/1/45 (c)	20,700		20,738
3.059% 10/1/41 (f)	111		116
3.239% 7/1/41 (f)	418		442
3.309% 10/1/41 (f)	235		247
3.554% 7/1/41 (f)	476		504
4% 2/1/42	488		521
4.5% 7/1/33 to 4/1/39	4,804		5,265
4.5% 9/1/45 (c)	4,800		5,200
5% 7/1/35	10,649		11,792
5.5% 1/1/29	2,275		2,542
6.5% 2/1/17 to 5/1/27	438		493
9.5% 10/1/20	13		14
11.5% 6/15/19 to 1/15/21	3		3
			79,687
Freddie Mac - 0.5%
1.82% 3/1/35 (f)	470		488
2.121% 5/1/37 (f)	323		345
2.394% 10/1/42 (f)	2,460		2,594
2.49% 6/1/35 (f)	456		485
2.506% 2/1/36 (f)	29		31
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (000s)
Freddie Mac - continued
2.722% 3/1/33 (f)	$ 22		$ 24
2.757% 7/1/36 (f)	371		397
2.798% 7/1/35 (f)	1,216		1,301
3% 11/1/42 to 2/1/43	4,474		4,529
3.091% 9/1/41 (f)	2,412		2,510
3.155% 10/1/35 (f)	180		191
3.22% 9/1/41 (f)	271		284
3.235% 4/1/41 (f)	293		307
3.289% 6/1/41 (f)	311		329
3.444% 5/1/41 (f)	290		304
3.62% 6/1/41 (f)	452		478
3.705% 5/1/41 (f)	386		409
4.5% 5/1/39 to 10/1/41	4,137		4,530
5.5% 7/1/29	46		52
6% 1/1/24	1,784		1,966
9.5% 6/1/18 to 8/1/21	24		26
			21,580
Ginnie Mae - 1.3%
3.5% 9/1/45 (c)	100		104
4.3% 8/20/61 (k)	4,958		5,215
4.649% 2/20/62 (k)	3,412		3,662
4.682% 2/20/62 (k)	4,302		4,609
4.684% 1/20/62 (k)	25,578		27,361
5.47% 8/20/59 (k)	1,685		1,739
5.5% 11/15/35	2,634		2,983
5.612% 4/20/58 (k)	1,470		1,493
6% 6/15/36	5,823		6,779
			53,945
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $153,186)		155,212
Collateralized Mortgage Obligations - 14.2%

U.S. Government Agency - 14.2%
Fannie Mae:
floater:
Series 2001-38 Class QF, 1.1794% 8/25/31 (f)	130		133
Series 2002-49 Class FB, 0.7996% 11/18/31 (f)	118		119
Series 2002-60 Class FV, 1.1994% 4/25/32 (f)	51		52
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Fannie Mae: - continued
floater:
Series 2002-75 Class FA, 1.1994% 11/25/32 (f)	$ 105		$ 107
Series 2010-15 Class FJ, 1.1294% 6/25/36 (f)	8,297		8,452
planned amortization class:
Series 2005-19 Class PA, 5.5% 7/25/34	2,806		3,039
Series 2005-27 Class NE, 5.5% 5/25/34	2,058		2,134
Series 2005-64 Class PX, 5.5% 6/25/35	2,775		3,041
Series 2005-68 Class CZ, 5.5% 8/25/35	5,673		6,372
Series 2006-45 Class OP, 0% 6/25/36 (i)	1,186		1,053
Series 2010-118 Class PB, 4.5% 10/25/40	7,053		7,607
Series 2015-5 Class CP, 3% 6/25/43	42,093		43,657
Series 2015-54 Class GA, 2.5% 7/25/45	12,965		13,320
sequential payer:
Series 2003-117 Class MD, 5% 12/25/23	1,373		1,509
Series 2004-91 Class Z, 5% 12/25/34	8,205		9,070
Series 2005-117 Class JN, 4.5% 1/25/36	645		705
Series 2005-14 Class ZB, 5% 3/25/35	2,475		2,737
Series 2006-72 Class CY, 6% 8/25/26	5,377		5,953
Series 2009-59 Class HB, 5% 8/25/39	3,372		3,727
Series 2009-85 Class IB, 4.5% 8/25/24 (h)	584		48
Series 2009-93 Class IC, 4.5% 9/25/24 (h)	877		71
Series 2010-139 Class NI, 4.5% 2/25/40 (h)	5,712		810
Series 2010-39 Class FG, 1.1194% 3/25/36 (f)	5,215		5,347
Series 2010-97 Class CI, 4.5% 8/25/25 (h)	1,866		137
Series 2012-27 Class EZ, 4.25% 3/25/42	7,980		8,596
Freddie Mac:
floater:
Series 2530 Class FE, 0.7976% 2/15/32 (f)	72		73
Series 2630 Class FL, 0.6976% 6/15/18 (f)	57		57
Series 2682 Class FB, 1.0976% 10/15/33 (f)	4,544		4,636
Series 2711 Class FC, 1.0976% 2/15/33 (f)	2,845		2,897
planned amortization class:
Series 1141 Class G, 9% 9/15/21	60		69
Series 2356 Class GD, 6% 9/15/16	15		16
Series 2376 Class JE, 5.5% 11/15/16	109		111
Series 2381 Class OG, 5.5% 11/15/16	52		53
Series 2672 Class MG, 5% 9/15/23	6,659		7,214
Series 2682 Class LD, 4.5% 10/15/33	777		845
Series 3415 Class PC, 5% 12/15/37	843		910
Series 3763 Class QA, 4% 4/15/34	2,437		2,524
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Freddie Mac: - continued
planned amortization class sequential payer Series 2005-2963 Class VB, 5% 11/15/34	$ 3,536		$ 3,627
sequential payer:
Series 2004-2802 Class ZG, 5.5% 5/15/34	10,783		12,201
Series 2587 Class AD, 4.71% 3/15/33	5,180		5,574
Series 2773 Class HC, 4.5% 4/15/19	620		646
Series 2877 Class ZD, 5% 10/15/34	9,726		10,717
Series 3007 Class EW, 5.5% 7/15/25	8,067		8,898
Series 3745 Class KV, 4.5% 12/15/26	7,333		8,079
Series 3871 Class KB, 5.5% 6/15/41	13,870		15,770
Series 3843 Class PZ, 5% 4/15/41	2,316		2,729
Ginnie Mae guaranteed REMIC pass-thru certificates:
floater:
Series 2008-2 Class FD, 0.6828% 1/20/38 (f)	363		366
Series 2008-73 Class FA, 1.0628% 8/20/38 (f)	2,583		2,636
Series 2008-83 Class FB, 1.1028% 9/20/38 (f)	2,578		2,632
Series 2009-108 Class CF, 0.7976% 11/16/39 (f)	1,709		1,727
Series 2011-H20 Class FA, 0.7382% 9/20/61 (f)(k)	10,852		10,888
Series 2011-H21 Class FA, 0.7882% 10/20/61 (f)(k)	7,338		7,373
Series 2012-H01 Class FA, 0.8882% 11/20/61 (f)(k)	6,142		6,179
Series 2012-H03 Class FA, 0.8882% 1/20/62 (f)(k)	3,803		3,826
Series 2012-H06 Class FA, 0.8182% 1/20/62 (f)(k)	5,818		5,854
Series 2012-H07 Class FA, 0.8182% 3/20/62 (f)(k)	3,487		3,514
Series 2013-H19:
Class FC, 0.7882% 8/20/63 (f)(k)	1,238		1,245
Class FD, 0.7882% 8/20/63 (f)(k)	3,391		3,408
Series 2014-H02 Class FB, 0.8382% 12/20/63 (f)(k)	40,266		40,466
Series 2014-H03 Class FA, 0.7882% 1/20/64 (f)(k)	17,130		17,223
Series 2015-H07 Class FA, 0.3% 3/20/65 (f)(k)	28,047		27,988
Series 2015-H13 Class FL, 0.4682% 5/20/63 (f)(k)	45,007		44,917
Series 2015-H19 Class FA, 0.393% 4/20/63 (f)(k)	43,200		43,119
floater sequential payer Series 2011-150 Class D, 3% 4/20/37	246		249
sequential payer Series 2011-69 Class GX, 4.5% 5/16/40	10,205		11,267
Series 2010-H15 Class TP, 5.15% 8/20/60 (k)	18,677		20,146
Series 2010-H17 Class XP, 5.3% 7/20/60 (f)(k)	24,825		26,653
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (000s)
U.S. Government Agency - continued
Ginnie Mae guaranteed REMIC pass-thru certificates: - continued
Series 2010-H18 Class PL, 5.01% 9/20/60 (f)(k)	$ 18,269		$ 19,673
Series 2012-64 Class KB, 5.7099% 5/20/41 (f)	1,269		1,442
Series 2013-124:
Class ES, 8.3963% 4/20/39 (f)(j)	6,373		7,412
Class ST, 8.5297% 8/20/39 (f)(j)	11,972		14,055
Series 2015-H17 Class HA, 2.5% 5/20/65 (k)	17,318		17,747
Ginnie Mae pass thru certificates Series H69 Class JA, 2.5% 8/1/60 (k)	6,645		6,806
Ginnie Mae REMIC Trust Series H68 Class HA, 2.5% 9/1/60 (k)	55,661		57,061
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $616,193)		621,314
Commercial Mortgage Securities - 6.9%

Freddie Mac:
pass thru-certificates floater Series KF01 Class A, 0.5365% 4/25/19 (f)	550		548
pass-thru certificates sequential payer Series K011 Class A2, 4.084% 11/25/20	3,740		4,100
sequential payer:
Series K006 Class A2, 4.251% 1/25/20	24,840		27,174
Series K009 Class A2, 3.808% 8/25/20	32,528		35,158
Series K034 Class A1, 2.669% 2/25/23	14,765		15,188
Series K717 Class A2, 2.991% 9/25/21	9,506		9,880
Series K032 Class A1, 3.016% 2/25/23	25,691		26,908
Series K039 Class A2, 3.303% 7/25/24	24,645		25,575
Series K042 Class A2, 2.67% 12/25/24	22,200		21,856
Series K047 Class A2, 3.329% 5/25/25	32,284		33,485
Series K501 Class A2, 1.655% 11/25/16	9,638		9,707
Series K716 Class A2, 3.13% 6/25/21	6,500		6,821
Freddie Mac Multi-family Strutured Pass-thru Certificates:
sequential payer Series K718 Class A2, 2.791% 1/25/22	27,400		28,149
Series K044 Class A2, 2.811% 1/25/25	58,600		58,225
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $303,620)		302,774
Foreign Government and Government Agency Obligations - 3.6%
	Principal Amount (000s)		Value (000s)
Israeli State:
(guaranteed by U.S. Government through Agency for International Development):
5.5% 9/18/23	$ 72,266		$ 87,706
5.5% 12/4/23	48		58
5.5% 4/26/24	6,065		7,406
Jordanian Kingdom:
2.503% 10/30/20	41,050		42,349
3% 6/30/25	19,267		19,618
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $143,259)		157,137

Fixed-Income Funds - 24.0%
	Shares
Fidelity Mortgage Backed Securities Central Fund (g) (Cost $996,061)	9,569,826		1,044,642
Cash Equivalents - 3.3%
	Maturity Amount (000s)
Investments in repurchase agreements in a joint trading account at 0.15%, dated 8/31/15 due 9/1/15:
(Collateralized by U.S. Government Obligations) # (a)	$ 11,302		11,302
(Collateralized by U.S. Government Obligations) #	131,859		131,858
TOTAL CASH EQUIVALENTS (Cost $143,160)		143,160
TOTAL INVESTMENT PORTFOLIO - 105.5% (Cost $4,512,831)		4,602,832
NET OTHER ASSETS (LIABILITIES) - (5.5)%		(239,350)
NET ASSETS - 100%		$ 4,363,482
TBA Sale Commitments
	Principal Amount (000s)		Value (000s)
Fannie Mae
3% 9/1/45	$ (20,700)		$ (20,789)
4.5% 9/1/45	(4,800)		(5,200)
TOTAL TBA SALE COMMITMENTS (Proceeds $26,075)		$ (25,989)

Futures Contracts
	Expiration Date	Underlying Face Amount at Value (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Purchased
Treasury Contracts
207 CBOT 10 Year U.S. Treasury Note Contracts (United States)	Dec. 2015	$ 26,302	$ (170)
350 CBOT 2 Year U.S. Treasury Note Contracts (United States)	Dec. 2015	76,464	(116)
156 CBOT 5 Year U.S. Treasury Note Contracts (United States)	Dec. 2015	18,632	(89)
407 CBOT Ultra Long Term U.S. Treasury Bond Contracts (United States)	Dec. 2015	64,471	(770)
TOTAL TREASURY CONTRACTS		$ 185,869	$ (1,145)

The face value of futures purchased as a percentage of net assets is 4.3%

For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $214,309,000.

Swaps
Interest Rate Swaps
Clearinghouse/ Counterparty(1)	Expiration Date	Notional Amount(1) (000s)	Payment Received	Payment Paid	Value (000s)	Upfront Premium Received/ (Paid)(2) (000s)	Unrealized Appreciation/(Depreciation) (000s)
LCH	Sep. 2017	$ 11,600	3-month LIBOR	1.5%	$ (59)	$ 0	$ (59)
LCH	Sep. 2020	6,800	3-month LIBOR	2.25%	(126)	0	(126)
CME	Sep. 2025	22,400	2.75%	3-month LIBOR	653	0	653
CME	Sep. 2045	1,100	3%	3-month LIBOR	63	$ 0	$ 63
LCH	Sep. 2045	19,300	3-month LIBOR	3%	(1,217)	0	(1,217)
TOTAL INTEREST RATE SWAPS					$ (686)	$ 0	$ (686)