Converted by EDGARwiz

0001379491-18-001590.txt : 20180424 0001379491-18-001590.hdr.sgml : 20180424 20180424095944 ACCESSION NUMBER: 0001379491-18-001590 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 20 CONFORMED PERIOD OF REPORT: 20180228 FILED AS OF DATE: 20180424 DATE AS OF CHANGE: 20180424 EFFECTIVENESS DATE: 20180424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY INCOME FUND /MA/ CENTRAL INDEX KEY: 0000751199 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04085 FILM NUMBER: 18770421 BUSINESS ADDRESS: STREET 1: 245 SUMMER STREET CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 617-563-7000 MAIL ADDRESS: STREET 1: 245 SUMMER STREET CITY: BOSTON STATE: MA ZIP: 02210 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY MORTGAGE SECURITIES FUND DATE OF NAME CHANGE: 19851103

0000751199 S000007066 Fidelity Total Bond Fund

C000019272 Fidelity Total Bond Fund FTBFX

C000019273 Fidelity Advisor Total Bond Fund: Class A FEPAX

C000019275 Fidelity Advisor Total Bond Fund: Class C FCEPX

C000019276 Fidelity Advisor Total Bond Fund: Class M FEPTX

C000019277 Fidelity Advisor Total Bond Fund: Class I FEPIX

C000150510 Class Z FBKWX

0000751199 S000007069 Fidelity Government Income Fund

C000019283 Fidelity Government Income Fund FGOVX

C000038098 Fidelity Advisor Government Income Fund: Class A FVIAX

C000038100 Fidelity Advisor Government Income Fund: Class C FVICX

C000038101 Fidelity Advisor Government Income Fund: Class M FVITX

C000038102 Fidelity Advisor Government Income Fund: Class I FVIIX

0000751199 S000007070 Fidelity Intermediate Government Income Fund

C000019284 Fidelity Intermediate Government Income Fund FSTGX

0000751199 S000056368 Fidelity Flex Core Bond Fund

C000177595 Fidelity Flex Core Bond Fund FLXCX

0000751199 S000057288 Fidelity Total Bond K6 Fund

C000182864 Fidelity Total Bond K6 Fund FTKFX

N-CSRS 1 filing842.htm PRIMARY DOCUMENT

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, MA 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:	February 28, 2018

Item 1.

Reports to Stockholders

Fidelity Advisor® Government Income Fund -
Class A, Class M, Class C and Class I

Semi-Annual Report

February 28, 2018

Class A, Class M, Class C and Class I are classes of Fidelity® Government Income Fund

Contents

Investment Summary
Schedule of Investments
Financial Statements
Notes to Financial Statements
Shareholder Expense Example
Board Approval of Investment Advisory Contracts and Management Fees

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.institutional.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.

Investment Summary (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 February 28, 2018

	% of fund's investments
Zero coupon bonds	0.3
0.01 - 0.99%	0.0
1 - 1.99%	19.7
2 - 2.99%	27.7
3 - 3.99%	24.3
4 - 4.99%	14.0
5 - 5.99%	7.8
6 - 6.99%	0.9
7% and above	0.0

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

Asset Allocation (% of fund's net assets)

As of February 28, 2018^,^,^**
	Mortgage Securities	26.4%
	CMOs and Other Mortgage Related Securities	29.6%
	U.S. Treasury Obligations	36.0%
	U.S. Government Agency Obligations^†	2.2%
	Foreign Government & Government Agency Obligations	3.6%
	Asset-Backed Securities	3.9%
	Short-Term Investments and Net Other Assets (Liabilities)^††	(1.7)%

* Foreign investments – 3.6%

** Futures and Swaps – 10.6%

*** Written options - (3.0)%

† 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.

Percentages shown as 0.0% may reflect amounts less than 0.05%.

Schedule of Investments February 28, 2018 (Unaudited)

Showing Percentage of Net Assets

U.S. Government and Government Agency Obligations - 38.2%
	Principal Amount (000s)	Value (000s)
U.S. Government Agency Obligations - 0.2%
Fannie Mae:
0.875% 8/2/19	$131	$129
1% 2/26/19	326	322
1.125% 12/14/18	240	238
Tennessee Valley Authority:
5.25% 9/15/39	2,807	3,607
5.375% 4/1/56	3,438	4,559
		8,855
U.S. Treasury Obligations - 36.0%
U.S. Treasury Bonds:
stripped coupon 2/15/34	23,210	14,118
2.5% 2/15/46	28,232	24,909
2.75% 8/15/47	49,596	45,946
2.75% 11/15/47	4,400	4,077
2.875% 8/15/45	112,441	107,188
3% 11/15/44	29,032	28,380
3% 11/15/45	40,000	39,056
3% 5/15/47	15,900	15,498
3% 2/15/48	4,500	4,389
3.625% 2/15/44	43,531	47,450
4.75% 2/15/37 (a)(b)	52,044	65,285
5% 5/15/37 (a)(b)(c)	32,242	41,648
U.S. Treasury Notes:
1.125% 9/30/21	60,467	57,578
1.375% 4/30/20	29,895	29,303
1.375% 8/31/20	5,000	4,881
1.375% 1/31/21	22,500	21,835
1.375% 4/30/21	15,000	14,504
1.375% 5/31/21	20,000	19,313
1.5% 4/15/20	653	642
1.5% 7/15/20	20,725	20,325
1.5% 8/15/26	9,629	8,642
1.625% 6/30/20	4,710	4,633
1.625% 7/31/20	30,000	29,495
1.625% 8/31/22	17,293	16,565
1.75% 10/31/20	2,405	2,366
1.75% 12/31/20	31,701	31,134
1.75% 6/30/22	34,052	32,859
1.875% 1/31/22	45,770	44,592
1.875% 3/31/22	56,661	55,107
1.875% 7/31/22	85,036	82,405
1.875% 9/30/22(b)	28,814	27,876
2% 9/30/20	15,143	15,001
2% 12/31/21	78,894	77,291
2% 7/31/22	18,845	18,375
2% 10/31/22	10,000	9,720
2% 8/15/25 (a)	38,778	36,632
2% 11/15/26	12,579	11,732
2.125% 6/30/21	22,000	21,746
2.125% 12/31/21	2,000	1,969
2.125% 6/30/22	146	143
2.125% 7/31/24	77,525	74,585
2.125% 11/30/24	51,557	49,440
2.125% 5/15/25	18,702	17,860
2.25% 2/29/20	22,000	21,996
2.25% 7/31/21	26,021	25,801
2.25% 12/31/24	47,409	45,800
2.25% 2/15/27	3,000	2,850
2.25% 11/15/27	13,251	12,538
2.375% 1/31/23	8,710	8,600
2.375% 5/15/27	2,200	2,110
2.625% 2/28/23	25,000	24,973
2.75% 2/15/28	9,000	8,909
		1,430,070
Other Government Related - 2.0%
National Credit Union Administration Guaranteed Notes Series 2010-A1 Class A, 1 month U.S. LIBOR + 0.350% 1.9293% 12/7/20 (NCUA Guaranteed) (d)(e)	2,394	2,397
National Credit Union Administration Guaranteed Notes Master Trust 3.45% 6/12/21 (NCUA Guaranteed)	74,000	75,522
		77,919
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,565,589)		1,516,844

U.S. Government Agency - Mortgage Securities - 12.0%
Fannie Mae - 5.3%
12 month U.S. LIBOR + 1.415% 3.165% 11/1/33 (d)(e)	77	79
12 month U.S. LIBOR + 1.480% 3.312% 7/1/34 (d)(e)	88	91
12 month U.S. LIBOR + 1.523% 3.218% 3/1/36 (d)(e)	340	352
12 month U.S. LIBOR + 1.551% 2.488% 2/1/44 (d)(e)	308	317
12 month U.S. LIBOR + 1.553% 2.611% 5/1/44 (d)(e)	972	997
12 month U.S. LIBOR + 1.553% 3.326% 6/1/36 (d)(e)	81	84
12 month U.S. LIBOR + 1.558% 2.449% 2/1/44 (d)(e)	393	405
12 month U.S. LIBOR + 1.565% 3.315% 3/1/37 (d)(e)	111	116
12 month U.S. LIBOR + 1.570% 2.559% 5/1/44 (d)(e)	528	542
12 month U.S. LIBOR + 1.574% 2.656% 4/1/44 (d)(e)	1,396	1,436
12 month U.S. LIBOR + 1.580% 2.44% 4/1/44 (d)(e)	555	570
12 month U.S. LIBOR + 1.580% 2.519% 1/1/44 (d)(e)	576	593
12 month U.S. LIBOR + 1.725% 2.592% 6/1/42 (d)(e)	236	243
12 month U.S. LIBOR + 1.728% 3.445% 11/1/36 (d)(e)	54	57
12 month U.S. LIBOR + 1.741% 3.477% 3/1/40 (d)(e)	1,055	1,087
12 month U.S. LIBOR + 1.745% 3.448% 7/1/35 (d)(e)	124	128
12 month U.S. LIBOR + 1.800% 2.747% 1/1/42 (d)(e)	804	834
12 month U.S. LIBOR + 1.800% 3.573% 7/1/41 (d)(e)	210	221
12 month U.S. LIBOR + 1.818% 2.689% 2/1/42 (d)(e)	1,145	1,187
12 month U.S. LIBOR + 1.818% 3.016% 9/1/41 (d)(e)	120	124
12 month U.S. LIBOR + 1.818% 3.266% 7/1/41 (d)(e)	161	169
12 month U.S. LIBOR + 1.830% 3.337% 10/1/41 (d)(e)	110	116
12 month U.S. LIBOR + 1.851% 3.518% 5/1/36 (d)(e)	66	68
6 month U.S. LIBOR + 1.475% 2.975% 10/1/33 (d)(e)	70	72
6 month U.S. LIBOR + 1.510% 3.043% 2/1/33 (d)(e)	47	48
6 month U.S. LIBOR + 1.535% 2.938% 12/1/34 (d)(e)	105	108
6 month U.S. LIBOR + 1.535% 2.958% 3/1/35 (d)(e)	53	55
6 month U.S. LIBOR + 1.556% 3.046% 10/1/33 (d)(e)	39	40
6 month U.S. LIBOR + 1.565% 2.999% 7/1/35 (d)(e)	46	47
U.S. TREASURY 1 YEAR INDEX + 1.965% 2.84% 2/1/36 (d)(e)	46	48
U.S. TREASURY 1 YEAR INDEX + 2.208% 3.083% 3/1/35 (d)(e)	49	52
U.S. TREASURY 1 YEAR INDEX + 2.295% 3.54% 10/1/33 (d)(e)	83	87
3.5% 3/1/48 (f)	98,100	97,921
4% 5/1/29 to 1/1/47	42,827	44,165
4% 3/1/48 (f)	7,000	7,171
4% 4/1/48 (f)	7,000	7,159
4.5% 11/1/25 to 6/1/41	7,358	7,715
5.5% 12/1/39 to 5/1/44	29,060	31,974
6% 1/1/34 to 6/1/36	4,437	4,948
6.5% 3/1/22 to 5/1/27	226	247
9.5% 10/1/20	3	3
11.5% 1/15/21	0	0
		211,676
Freddie Mac - 0.6%
12 month U.S. LIBOR + 1.754% 3.067% 9/1/41 (d)(e)	1,164	1,218
12 month U.S. LIBOR + 1.874% 3.634% 10/1/42 (d)(e)	639	668
12 month U.S. LIBOR + 1.877% 3.213% 4/1/41 (d)(e)	107	110
12 month U.S. LIBOR + 1.880% 3.055% 10/1/41 (d)(e)	1,785	1,859
12 month U.S. LIBOR + 1.880% 3.206% 9/1/41 (d)(e)	126	130
12 month U.S. LIBOR + 1.910% 3.278% 6/1/41 (d)(e)	129	135
12 month U.S. LIBOR + 1.910% 3.417% 5/1/41 (d)(e)	129	136
12 month U.S. LIBOR + 1.910% 3.579% 5/1/41 (d)(e)	174	183
12 month U.S. LIBOR + 1.910% 3.677% 6/1/41 (d)(e)	163	171
12 month U.S. LIBOR + 2.045% 3.811% 7/1/36 (d)(e)	241	255
12 month U.S. LIBOR + 2.197% 3.771% 3/1/33 (d)(e)	6	7
6 month U.S. LIBOR + 1.445% 2.945% 3/1/35 (d)(e)	154	158
6 month U.S. LIBOR + 1.746% 3.092% 5/1/37 (d)(e)	110	114
6 month U.S. LIBOR + 2.755% 4.273% 10/1/35 (d)(e)	118	125
U.S. TREASURY 1 YEAR INDEX + 2.383% 3.441% 2/1/36 (d)(e)	10	11
U.S. TREASURY 1 YEAR INDEX + 2.548% 3.548% 7/1/35 (d)(e)	485	506
3% 2/1/31	9,474	9,470
4% 5/1/47 to 7/1/47	4,245	4,353
4.5% 5/1/39 to 10/1/41	2,334	2,470
5.5% 7/1/29	17	18
6% 1/1/24	807	853
9.5% 11/1/19 to 8/1/21	2	2
		22,952
Ginnie Mae - 6.1%
6% 6/15/36	3,610	4,145
4.312% 8/20/61 (d)(g)	1,468	1,480
4.5% 3/1/48 (f)	12,800	13,314
4.5% 3/1/48 (f)	10,950	11,389
4.5% 3/1/48 (f)	10,950	11,389
4.5% 3/1/48 (f)	11,400	11,858
4.5% 3/1/48 (f)	17,050	17,734
4.5% 3/1/48 (f)	42,650	44,362
4.5% 4/1/48 (f)	49,400	51,323
4.5% 4/1/48 (f)	56,400	58,595
4.642% 2/20/62 (d)(g)	1,905	1,938
4.674% 2/20/62 (d)(g)	2,328	2,362
4.698% 1/20/62 (d)(g)	12,873	13,054
5.47% 8/20/59 (d)(g)	14	14
		242,957
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES
(Cost $479,703)		477,585

Asset-Backed Securities - 3.9%
GCO Education Loan Funding Trust Series 2006-1 Class A8L, 3 month U.S. LIBOR + 0.130% 2.0736% 5/25/25 (d)(e)	$7,233	$7,226
Goal Capital Funding Trust Series 2005-2 Class A3, 3 month U.S. LIBOR + 0.170% 2.1136% 5/28/30 (d)(e)	3,496	3,492
Illinois Student Assistance Commission Student Loan Rev. Series 2010-1 Class A2, 3 month U.S. LIBOR + 1.050% 2.4174% 4/25/22 (d)(e)	993	994
Navient Student Loan Trust:
Series 2017-3A:
Class A1, 1 month U.S. LIBOR + 0.300% 1.9207% 7/26/66 (d)(e)(h)	9,737	9,742
Class A2, 1 month U.S. LIBOR + 0.600% 2.2207% 7/26/66 (d)(e)(h)	14,550	14,642
Series 2018-1A Class A1, 1 month U.S. LIBOR + 0.250% 1.7514% 3/25/67 (d)(e)(h)	16,267	16,261
Nelnet Student Loan Trust 3 month U.S. LIBOR + 0.100% 1.8452% 1/25/30 (d)(e)	8,717	8,703
Northstar Education Finance, Inc., Delaware Series 2004-2 Class A4, 3 month U.S. LIBOR + 0.230% 1.608% 7/28/21 (d)(e)	26,023	26,002
SLM Student Loan Trust Series 2007-8 Class A4, 3 month U.S. LIBOR + 0.470% 2.2152% 1/26/26 (d)(e)	64,752	64,921
Small Business Administration guaranteed development participation certificates:
Series 2002-20J Class 1, 4.75% 10/1/22	558	568
Series 2002-20K Class 1, 5.08% 11/1/22	834	861
Series 2004-20H Class 1, 5.17% 8/1/24	342	357
TOTAL ASSET-BACKED SECURITIES
(Cost $153,633)		153,769

Collateralized Mortgage Obligations - 16.7%
U.S. Government Agency - 16.7%
Fannie Mae:
floater:	$	$
Series 2001-38 Class QF, 1 month U.S. LIBOR + 0.980% 2.6007% 8/25/31 (d)(e)	78	80
Series 2002-49 Class FB, 1 month U.S. LIBOR + 0.600% 2.19% 11/18/31 (d)(e)	72	73
Series 2002-60 Class FV, 1 month U.S. LIBOR + 1.000% 2.6207% 4/25/32 (d)(e)	31	32
Series 2002-75 Class FA, 1 month U.S. LIBOR + 1.000% 2.6207% 11/25/32 (d)(e)	63	65
Series 2010-15 Class FJ, 1 month U.S. LIBOR + 0.930% 2.5507% 6/25/36 (d)(e)	4,730	4,803
planned amortization class:
Series 2005-19 Class PA, 5.5% 7/25/34	972	999
Series 2005-64 Class PX, 5.5% 6/25/35	1,264	1,337
Series 2005-68 Class CZ, 5.5% 8/25/35	3,778	4,126
Series 2006-45 Class OP 6/25/36 (i)	649	550
Series 2010-118 Class PB, 4.5% 10/25/40	5,382	5,554
Series 2012-149:
Class DA, 1.75% 1/25/43	970	928
Class GA, 1.75% 6/25/42	954	911
sequential payer:
Series 2003-117 Class MD, 5% 12/25/23	660	688
Series 2004-91 Class Z, 5% 12/25/34	4,427	4,725
Series 2005-117 Class JN, 4.5% 1/25/36	322	335
Series 2005-14 Class ZB, 5% 3/25/35	1,379	1,475
Series 2006-72 Class CY, 6% 8/25/26	2,734	2,909
Series 2009-59 Class HB, 5% 8/25/39	2,046	2,188
Series 201-75 Class AL, 3.5% 8/25/26	11,851	12,087
Series 2010-97 Class CX, 4.5% 9/25/25	10,927	11,406
Series 2011-80:
Class HE, 3.5% 8/25/26	4,160	4,254
Class KB, 3.5% 8/25/26	6,462	6,598
Series 2009-85 Class IB, 4.5% 8/25/24 (j)	160	6
Series 2009-93 Class IC, 4.5% 9/25/24 (j)	219	7
Series 2010-139 Class NI, 4.5% 2/25/40 (j)	2,898	296
Series 2010-39 Class FG, 1 month U.S. LIBOR + 0.920% 2.5407% 3/25/36 (d)(e)	2,958	3,023
Series 2010-97 Class CI, 4.5% 8/25/25 (j)	636	30
Series 2012-27 Class EZ, 4.25% 3/25/42	6,806	7,047
Series 2016-26 Class CG, 3% 5/25/46	18,866	18,773
Freddie Mac:
floater:
Series 2530 Class FE, 1 month U.S. LIBOR + 0.600% 2.1875% 2/15/32 (d)(e)	42	42
Series 2630 Class FL, 1 month U.S. LIBOR + 0.500% 2.0875% 6/15/18 (d)(e)	2	2
Series 2682 Class FB, 1 month U.S. LIBOR + 0.900% 2.4875% 10/15/33 (d)(e)	2,203	2,235
Series 2711 Class FC, 1 month U.S. LIBOR + 0.900% 2.4875% 2/15/33 (d)(e)	1,347	1,373
planned amortization class:
Series 1141 Class G, 9% 9/15/21	26	28
Series 2682 Class LD, 4.5% 10/15/33	591	617
Series 3415 Class PC, 5% 12/15/37	405	431
Series 3840 Class VA, 4.5% 9/15/27	3,465	3,502
Series 3857 Class ZP, 5% 5/15/41	3,067	3,457
Series 4135 Class AB, 1.75% 6/15/42	713	681
sequential payer:
Series 2004-2802 Class ZG, 5.5% 5/15/34	6,664	7,274
Series 2587 Class AD, 4.71% 3/15/33	2,368	2,462
Series 2773 Class HC, 4.5% 4/15/19	46	46
Series 2877 Class ZD, 5% 10/15/34	5,452	5,823
Series 3007 Class EW, 5.5% 7/15/25	4,333	4,580
Series 3745 Class KV, 4.5% 12/15/26	6,018	6,310
Series 3806 Class L, 3.5% 2/15/26	8,900	9,102
Series 3862 Class MB, 3.5% 5/15/26	6,893	7,039
Series 3871 Class KB, 5.5% 6/15/41	13,870	15,553
Series 3889 Class DZ, 4% 1/15/41	35,497	36,351
Series 3843 Class PZ, 5% 4/15/41	2,623	2,927
Freddie Mac Multi-family Structured pass-thru certificates sequential payer:
Series 4335 Class AL, 4.25% 3/15/40	6,078	6,268
Series 4341 Class ML, 3.5% 11/15/31	8,800	8,954
Ginnie Mae guaranteed REMIC pass-thru certificates:
floater:
Series 2008-2 Class FD, 1 month U.S. LIBOR + 0.480% 2.0412% 1/20/38 (d)(e)	216	217
Series 2008-73 Class FA, 1 month U.S. LIBOR + 0.860% 2.4212% 8/20/38 (d)(e)	1,663	1,692
Series 2008-83 Class FB, 1 month U.S. LIBOR + 0.900% 2.4612% 9/20/38 (d)(e)	1,416	1,446
Series 2009-108 Class CF, 1 month U.S. LIBOR + 0.600% 2.1881% 11/16/39 (d)(e)	881	887
Series 2011-H20 Class FA, 1 month U.S. LIBOR + 0.550% 1.9294% 9/20/61 (d)(e)(g)	8,184	8,215
Series 2011-H21 Class FA, 1 month U.S. LIBOR + 0.600% 1.9794% 10/20/61 (d)(e)(g)	5,344	5,368
Series 2012-H01 Class FA, 1 month U.S. LIBOR + 0.700% 2.0794% 11/20/61 (d)(e)(g)	4,547	4,582
Series 2012-H03 Class FA, 1 month U.S. LIBOR + 0.700% 2.0794% 1/20/62 (d)(e)(g)	2,991	3,013
Series 2012-H06 Class FA, 1 month U.S. LIBOR + 0.630% 2.0094% 1/20/62 (d)(e)(g)	4,282	4,306
Series 2012-H07 Class FA, 1 month U.S. LIBOR + 0.630% 2.0094% 3/20/62 (d)(e)(g)	2,638	2,653
Series 2012-H21 Class DF, 1 month U.S. LIBOR + 0.650% 2.0294% 5/20/61 (d)(e)(g)	2,264	2,268
Series 2013-H19:
Class FC, 1 month U.S. LIBOR + 0.600% 1.9794% 8/20/63 (d)(e)(g)	1,091	1,096
Class FD, 1 month U.S. LIBOR + 0.600% 1.9794% 8/20/63 (d)(e)(g)	2,838	2,849
Series 2014-H02 Class FB, 1 month U.S. LIBOR + 0.650% 2.2118% 12/20/63 (d)(e)(g)	35,584	35,830
Series 2014-H03 Class FA, 1 month U.S. LIBOR + 0.600% 2.1618% 1/20/64 (d)(e)(g)	13,245	13,307
Series 2015-H07 Class FA, 1 month U.S. LIBOR + 0.300% 1.8618% 3/20/65 (d)(e)(g)	6,465	6,466
Series 2015-H13 Class FL, 1 month U.S. LIBOR + 0.280% 1.8418% 5/20/63 (d)(e)(g)	8,210	8,212
Series 2015-H19 Class FA, 1 month U.S. LIBOR + 0.200% 1.7618% 4/20/63 (d)(e)(g)	9,484	9,481
Series 2016-H20 Class FM, 1 month U.S. LIBOR + 0.400% 1.9618% 12/20/62 (d)(e)(g)	10,209	10,219
planned amortization class Series 2010-31 Class BP, 5% 3/20/40	11,191	12,122
sequential payer:
Series 2011-69 Class GX, 4.5% 5/16/40	10,205	10,741
Series 2013-H06 Class HA, 1.65% 1/20/63 (g)	4,122	4,072
Series 2013-H26 Class HA, 3.5% 9/20/63 (g)	35,666	35,998
Series 2014-H04 Class HA, 2.75% 2/20/64 (g)	8,623	8,595
Series 2014-H12 Class KA, 2.75% 5/20/64 (g)	4,728	4,682
Series 2016-H02 Class FM, 1 month U.S. LIBOR + 0.500% 2.0618% 9/20/62 (d)(e)(g)	17,875	17,924
Series 2016-H04 Class FE, 1 month U.S. LIBOR + 0.650% 2.2118% 11/20/65 (d)(e)(g)	3,183	3,194
Series 2004-22 Class M1, 5.5% 4/20/34	600	717
Series 2010-169 Class Z, 4.5% 12/20/40	6,980	7,347
Series 2010-H15 Class TP, 5.15% 8/20/60 (g)	10,915	11,139
Series 2010-H17 Class XP, 5.2946% 7/20/60 (d)(g)	10,751	11,011
Series 2010-H18 Class PL, 5.01% 9/20/60 (d)(g)	9,679	9,862
Series 2012-64 Class KI, 3.5% 11/20/36 (j)	978	77
Series 2013-124:
Class ES, 8.667% - 1 month U.S. LIBOR 6.5851% 4/20/39 (d)(k)	3,530	3,617
Class ST, 8.800% - 1 month U.S. LIBOR 6.7184% 8/20/39 (d)(k)	9,799	10,156
Series 2013-H07 Class JA, 1.75% 3/20/63 (g)	23,116	22,782
Series 2015-H17 Class HA, 2.5% 5/20/65 (g)	12,428	12,391
Series 2015-H21:
Class HA, 2.5% 6/20/63 (g)	34,918	34,841
Class JA, 2.5% 6/20/65 (g)	4,043	4,032
Series 2015-H30 Class HA, 1.75% 9/20/62 (d)(g)	36,646	36,236
Series 2016-H13 Class FB, U.S. TREASURY 1 YEAR INDEX + 0.500% 1.65% 5/20/66 (d)(e)(g)	23,600	23,730
Series 2017-H06 Class FA, U.S. TREASURY 1 YEAR INDEX + 0.350% 2.11% 8/20/66 (d)(e)(g)	20,958	21,014
Series 2090-118 Class XZ, 5% 12/20/39	14,448	15,777
		664,526
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $676,388)		664,526

Commercial Mortgage Securities - 10.4%
Fannie Mae Series 2017-T1 Class A, 2.898% 6/25/27	46,890	45,022
FHLMC Multi-Family Structured Pass-Through Certificates sequential payer:
Series K071 Class A2, 3.289% 11/25/27	8,900	8,884
Series K072 Class A2, 3.444% 12/25/50	21,029	21,263
Freddie Mac:
floater:
Series KP04 Class AG1, 1 month U.S. LIBOR + 0.220% 1.7997% 7/25/20 (d)(e)	10,600	10,610
Series KP04, Class AG2, 1 month U.S. LIBOR + 0.200% 1.7797% 10/25/19 (d)(e)	21,200	21,210
pass-thru certificates sequential payer Series K011 Class A2, 4.084% 11/25/20	3,740	3,860
sequential payer:
Series 2017-SR01 Class A2, 2.75% 11/25/22	19,000	18,780
Series K009 Class A2, 3.808% 8/25/20	5,591	5,728
Series K034 Class A1, 2.669% 2/25/23	10,896	10,824
Series K073 Class A2, 3.35% 1/25/28	33,000	33,081
Series K708 Class A2, 2.13% 1/25/19	23,574	23,502
Series K709 Class A2, 2.086% 3/25/19	17,210	17,143
Series K710 Class A2, 1.883% 5/25/19	16,814	16,719
Series K713 Class A2, 2.313% 3/25/20	5,437	5,399
Series K717 Class A2, 2.991% 9/25/21	12,968	13,012
Series K729 Class A1, 2.9184% 2/25/24	24,304	24,288
Series K032 Class A1, 3.016% 2/25/23	18,386	18,497
Series K504 Class A2, 2.566% 9/25/20	15,428	15,409
Series K704 Class A2, 2.412% 8/25/18	4,481	4,479
Series K706 Class A2, 2.323% 10/25/18	9,365	9,360
Series K724 Class A1, 2.776% 3/25/23	15,830	15,770
Series K726 Class A1, 2.596% 8/25/23	4,796	4,748
Series K730 Class A1, 3.447% 9/24/24	22,600	23,051
Freddie Mac Multi-family floater Series 2017-KT01 Class A, 1 month U.S. LIBOR + 0.320% 1.8814% 2/25/20 (d)(e)	43,722	43,884
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $419,760)		414,523

Foreign Government and Government Agency Obligations - 3.6%
Israeli State:
(guaranteed by U.S. Government through Agency for International Development):
5.5% 9/18/23	72,266	82,037
5.5% 12/4/23	48	55
5.5% 4/26/24	6,065	6,936
Jordanian Kingdom 3% 6/30/25	19,267	19,336
Ukraine Government 1.471% 9/29/21	34,809	33,458
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $135,746)		141,822
	Shares	Value (000s)

Fixed-Income Funds - 21.6%
Fidelity Mortgage Backed Securities Central Fund (l)
(Cost $852,107)	8,146,148	858,767

Money Market Funds - 3.1%
Fidelity Cash Central Fund, 1.41% (m)
(Cost $122,981)	122,956,009	122,981

Purchased Swaptions - 0.2%
	Expiration Date	Notional Amount (000s)	Value (000s)
Put Options - 0.1%
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 2.495% and receive quarterly a floating rate based on 3-month LIBOR, expiring October 2027	10/5/20	13,400	$624
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 2.7875% and receive quarterly a floating rate based on 3-month LIBOR, expiring January 2028	1/25/21	77,100	2,894
Option on an interest rate swap with JPMorgan Chase Bank NA to pay semi-annually a fixed rate of 2.5340% and receive quarterly a floating rate based on 3-month LIBOR, expiring December 2027	12/8/20	44,800	2,057

TOTAL PUT OPTIONS			5,575

Call Options - 0.1%
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 2.495% and pay quarterly a floating rate based on 3-month LIBOR, expiring October 2027	10/5/20	13,400	235
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 2.7875% and pay quarterly a floating rate based on 3-month LIBOR, expiring January 2028	1/25/21	77,100	1,965
Option on an interest rate swap with JPMorgan Chase Bank NA to receive semi-annually a fixed rate of 2.5340% and pay quarterly a floating rate based on 3-month LIBOR, expiring December 2027	12/8/20	44,800	849

TOTAL CALL OPTIONS			3,049

TOTAL PURCHASED SWAPTIONS
(Cost $8,178)			8,624
TOTAL INVESTMENT IN SECURITIES - 109.7%
(Cost $4,414,085)			4,359,441
NET OTHER ASSETS (LIABILITIES) - (9.7)%			(384,188)
NET ASSETS - 100%			$3,975,253

TBA Sale Commitments
	Principal Amount (000s)	Value (000s)
Fannie Mae
3.5% 3/1/48	$(98,100)	$(97,922)
4% 3/1/48	(7,000)	(7,170)

TOTAL FANNIE MAE		(105,092)

Ginnie Mae
4.5% 3/1/48	(49,400)	(51,383)
4.5% 3/1/48	(56,400)	(58,663)

TOTAL GINNIE MAE		(110,046)

TOTAL TBA SALE COMMITMENTS
(Proceeds $215,065)		$(215,138)

Written Swaptions
	Expiration Date	Notional Amount	Value (000s)
Put Swaptions
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 3.065% and receive quarterly a floating rate based on 3-month LIBOR, expiring January 2028	2/5/21	57,570	$(1,702)
Call Swaptions
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 3.065% and pay quarterly a floating rate based on 3-month LIBOR, expiring January 2028	2/5/21	57,570	(1,955)
TOTAL WRITTEN SWAPTIONS			$(3,657)

Futures Contracts
	Number of contracts	Expiration Date	Notional Amount (000s)	Value (000s)	Unrealized Appreciation/(Depreciation) (000s)
Purchased
Treasury Contracts
CBOT 10-Year U.S. Treasury Note Contracts (United States)	730	June 2018	$87,634	$141	$141
CBOT 2-Year U.S. Treasury Note Contracts (United States)	872	June 2018	185,273	(2)	(2)
CBOT 5-Year U.S. Treasury Note Contracts (United States)	636	June 2018	72,459	(255)	(255)
CBOT Long Term U.S. Treasury Bond Contracts (United States)	238	June 2018	34,138	416	416
CBOT Ultra 10-Year U.S. Treasury Note Contracts (United States)	75	June 2018	9,605	29	29
TOTAL FUTURES CONTRACTS					$329

The notional amount of futures purchased as a percentage of Net Assets is 9.8%

For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $385,714.

Swaps

Payment Received	Payment Frequency	Payment Paid	Payment Frequency	Clearinghouse / Counterparty(1)	Maturity Date	Notional Amount (000s)	Value (000s)	Upfront Premium Received/(Paid) (000s)(2)	Unrealized Appreciation/(Depreciation) (000s)
Interest Rate Swaps
2%	Semi - annual	3-month LIBOR(3)	Quarterly	LCH	Mar. 2025	$19,866	$(289)	$0	$(289)

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

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

(3) Represents floating rate.

Values shown as $0 may reflect amounts less than $500.

Legend

(a) 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 $2,189,000.

(b) Security or a portion of the security has been segregated as collateral for mortgage-backed or asset-backed securities purchased on a delayed delivery or when-issued basis. At period end, the value of securities pledged amounted to $170,000.

(c) 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 $674,000.

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

(e) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.

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

(g) 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.

(h) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $40,645,000 or 1.0% of net assets.

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

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

(k) 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.

(l) 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 institutional.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.

(m) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.

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 Cash Central Fund	$226
Fidelity Mortgage Backed Securities Central Fund	12,490
Total	$12,716

Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.

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

Fund (Amounts in thousands)	Value, beginning of period	Purchases	Sales Proceeds	Realized Gain/Loss	Change in Unrealized appreciation (depreciation)	Value, end of period	% ownership, end of period
Fidelity Mortgage Backed Securities Central Fund	$939,005	$100,490	$152,000	$3,913	$(32,641)	$858,767	12.0%
Total	$939,005	$100,490	$152,000	$3,913	$(32,641)	$858,767

Investment Valuation

The following is a summary of the inputs used, as of February 28, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
(Amounts in thousands)
Investments in Securities:
U.S. Government and Government Agency Obligations	$1,516,844	$--	$1,516,844	$--
U.S. Government Agency - Mortgage Securities	477,585	--	477,585	--
Asset-Backed Securities	153,769	--	153,769	--
Collateralized Mortgage Obligations	664,526	--	664,526	--
Commercial Mortgage Securities	414,523	--	414,523	--
Foreign Government and Government Agency Obligations	141,822	--	141,822	--
Fixed-Income Funds	858,767	858,767	--	--
Money Market Funds	122,981	122,981	--	--
Purchased Swaptions	8,624	--	8,624	--
Total Investments in Securities:	$4,359,441	$981,748	$3,377,693	$--
Derivative Instruments:
Assets
Futures Contracts	$586	$586	$--	$--
Total Assets	$586	$586	$--	$--
Liabilities
Futures Contracts	$(257)	$(257)	$--	$--
Swaps	(289)	--	(289)	--
Written Swaptions	(3,657)	--	(3,657)	--
Total Liabilities	$(4,203)	$(257)	$(3,946)	$--
Total Derivative Instruments:	$(3,617)	$329	$(3,946)	$--
Other Financial Instruments:
TBA Sale Commitments	$(215,138)	$--	$(215,138)	$--
Total Other Financial Instruments:	$(215,138)	$--	$(215,138)	$--

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of February 28, 2018. 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
	Asset	Liability
(Amounts in thousands)
Interest Rate Risk
Futures Contracts(a)	$586	$(257)
Purchased Swaptions(b)	8,624	0
Swaps(c)	0	(289)
Written Swaptions(d)	0	(3,657)
Total Interest Rate Risk	9,210	(4,203)
Total Value of Derivatives	$9,210	$(4,203)

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

(b) Gross value is included in the Statement of Assets and Liabilities in the investments, at value line-item.

(c) For centrally cleared over-the-counter (OTC) swaps, reflects gross cumulative appreciation (depreciation) as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin for centrally cleared OTC swaps is included in receivable or payable for daily variation margin on centrally cleared OTC swaps, and the net cumulative appreciation (depreciation) for centrally cleared OTC swaps is included in net unrealized appreciation (depreciation).

(d) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.

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

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)		February 28, 2018 (Unaudited)
Assets
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $3,438,997)	$3,377,693
Fidelity Central Funds (cost $975,088)	981,748
Total Investment in Securities (cost $4,414,085)		$4,359,441
Receivable for investments sold		35,041
Receivable for TBA sale commitments		215,065
Receivable for fund shares sold		2,440
Interest receivable		11,082
Distributions receivable from Fidelity Central Funds		110
Receivable for daily variation margin for on futures contracts		484
Receivable for daily variation margin on centrally cleared OTC swaps		46
Other receivables		68
Total assets		4,623,777
Liabilities
Payable for investments purchased
Regular delivery	$91,488
Delayed delivery	332,375
TBA sale commitments, at value	215,138
Payable for fund shares redeemed	3,914
Distributions payable	235
Accrued management fee	1,017
Distribution and service plan fees payable	112
Written options, at value (premium received $3,748)	3,657
Other affiliated payables	520
Other payables and accrued expenses	68
Total liabilities		648,524
Net Assets		$3,975,253
Net Assets consist of:
Paid in capital		$4,119,944
Distributions in excess of net investment income		(7,437)
Accumulated undistributed net realized gain (loss) on investments		(82,668)
Net unrealized appreciation (depreciation) on investments		(54,586)
Net Assets		$3,975,253
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($152,293 ÷ 15,242 shares)		$9.99
Maximum offering price per share (100/96.00 of $9.99)		$10.41
Class M:
Net Asset Value and redemption price per share ($140,278 ÷ 14,041 shares)		$9.99
Maximum offering price per share (100/96.00 of $9.99)		$10.41
Class C:
Net Asset Value and offering price per share ($59,188 ÷ 5,925 shares)^(a)		$9.99
Government Income:
Net Asset Value, offering price and redemption price per share ($3,172,355 ÷ 318,009 shares)		$9.98
Class I:
Net Asset Value, offering price and redemption price per share ($451,139 ÷ 45,154 shares)		$9.99

(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.

Statement of Operations

Amounts in thousands		Six months ended February 28, 2018 (Unaudited)
Investment Income
Interest		$36,272
Income from Fidelity Central Funds		12,716
Total income		48,988
Expenses
Management fee	$6,427
Transfer agent fees	2,334
Distribution and service plan fees	717
Fund wide operations fee	908
Independent trustees' fees and expenses	8
Miscellaneous	7
Total expenses before reductions	10,401
Expense reductions	(2)	10,399
Net investment income (loss)		38,589
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	(12,143)
Fidelity Central Funds	3,913
Futures contracts	(11,097)
Swaps	(131)
Total net realized gain (loss)		(19,458)
Change in net unrealized appreciation (depreciation) on:
Investment securities:
Unaffiliated issuers	(99,739)
Fidelity Central Funds	(32,643)
Futures contracts	(225)
Swaps	(305)
Written options	91
Delayed delivery commitments	799
Total change in net unrealized appreciation (depreciation)		(132,022)
Net gain (loss)		(151,480)
Net increase (decrease) in net assets resulting from operations		$(112,891)

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

Statement of Changes in Net Assets

Amounts in thousands	Six months ended February 28, 2018 (Unaudited)	Year ended August 31, 2017
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$38,589	$76,961
Net realized gain (loss)	(19,458)	1,723
Change in net unrealized appreciation (depreciation)	(132,022)	(115,167)
Net increase (decrease) in net assets resulting from operations	(112,891)	(36,483)
Distributions to shareholders from net investment income	(38,482)	(74,479)
Distributions to shareholders from net realized gain	–	(34,956)
Total distributions	(38,482)	(109,435)
Share transactions - net increase (decrease)	(238,658)	(430,132)
Total increase (decrease) in net assets	(390,031)	(576,050)
Net Assets
Beginning of period	4,365,284	4,941,334
End of period	$3,975,253	$4,365,284
Other Information
Distributions in excess of net investment income end of period	$(7,437)	$(7,544)

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

Financial Highlights

Fidelity Government Income Fund Class A

	Six months ended (Unaudited) February 28,	Years endedAugust 31,
	2018	2017	2016	2015	2014	2013
Selected Per–Share Data
Net asset value, beginning of period	$10.36	$10.66	$10.50	$10.47	$10.20	$10.97
Income from Investment Operations
Net investment income (loss)^A	.080	.149	.135	.126	.138	.105
Net realized and unrealized gain (loss)	(.370)	(.230)	.270	.048	.278	(.454)
Total from investment operations	(.290)	(.081)	.405	.174	.416	(.349)
Distributions from net investment income	(.080)	(.143)	(.150)	(.116)	(.139)	(.099)
Distributions from net realized gain	–	(.076)	(.095)	(.028)	(.007)	(.322)
Total distributions	(.080)	(.219)	(.245)	(.144)	(.146)	(.421)
Net asset value, end of period	$9.99	$10.36	$10.66	$10.50	$10.47	$10.20
Total Return^B,^C,^D	(2.81)%	(.73)%	3.92%	1.67%	4.10%	(3.29)%
Ratios to Average Net Assets^E,^F
Expenses before reductions	.77%^G	.77%	.76%	.77%	.77%	.77%
Expenses net of fee waivers, if any	.77%^G	.77%	.76%	.77%	.77%	.77%
Expenses net of all reductions	.77%^G	.77%	.76%	.77%	.77%	.77%
Net investment income (loss)	1.58%^G	1.44%	1.28%	1.20%	1.34%	.99%
Supplemental Data
Net assets, end of period (in millions)	$152	$174	$261	$222	$246	$291
Portfolio turnover rate^H	146%^G	157%	93%	83%	131%	192%

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

^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 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 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.

^G Annualized

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

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

Fidelity Government Income Fund Class M

	Six months ended (Unaudited) February 28,	Years endedAugust 31,
	2018	2017	2016	2015	2014	2013
Selected Per–Share Data
Net asset value, beginning of period	$10.36	$10.66	$10.50	$10.47	$10.20	$10.97
Income from Investment Operations
Net investment income (loss)^A	.080	.149	.135	.127	.140	.107
Net realized and unrealized gain (loss)	(.370)	(.229)	.270	.048	.277	(.454)
Total from investment operations	(.290)	(.080)	.405	.175	.417	(.347)
Distributions from net investment income	(.080)	(.144)	(.150)	(.117)	(.140)	(.101)
Distributions from net realized gain	–	(.076)	(.095)	(.028)	(.007)	(.322)
Total distributions	(.080)	(.220)	(.245)	(.145)	(.147)	(.423)
Net asset value, end of period	$9.99	$10.36	$10.66	$10.50	$10.47	$10.20
Total Return^B,^C,^D	(2.81)%	(.73)%	3.92%	1.68%	4.12%	(3.27)%
Ratios to Average Net Assets^E,^F
Expenses before reductions	.77%^G	.76%	.76%	.76%	.76%	.75%
Expenses net of fee waivers, if any	.77%^G	.76%	.76%	.76%	.76%	.75%
Expenses net of all reductions	.77%^G	.76%	.76%	.76%	.76%	.75%
Net investment income (loss)	1.58%^G	1.44%	1.28%	1.20%	1.36%	1.01%
Supplemental Data
Net assets, end of period (in millions)	$140	$157	$197	$181	$196	$228
Portfolio turnover rate^H	146%^G	157%	93%	83%	131%	192%

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

^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.

^G Annualized

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

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

Fidelity Government Income Fund Class C

	Six months ended (Unaudited) February 28,	Years endedAugust 31,
	2018	2017	2016	2015	2014	2013
Selected Per–Share Data
Net asset value, beginning of period	$10.36	$10.66	$10.50	$10.47	$10.20	$10.96
Income from Investment Operations
Net investment income (loss)^A	.041	.069	.053	.044	.059	.025
Net realized and unrealized gain (loss)	(.371)	(.229)	.270	.048	.278	(.443)
Total from investment operations	(.330)	(.160)	.323	.092	.337	(.418)
Distributions from net investment income	(.040)	(.064)	(.068)	(.034)	(.060)	(.020)
Distributions from net realized gain	–	(.076)	(.095)	(.028)	(.007)	(.322)
Total distributions	(.040)	(.140)	(.163)	(.062)	(.067)	(.342)
Net asset value, end of period	$9.99	$10.36	$10.66	$10.50	$10.47	$10.20
Total Return^B,^C,^D	(3.19)%	(1.49)%	3.12%	.88%	3.32%	(3.93)%
Ratios to Average Net Assets^E,^F
Expenses before reductions	1.55%^G	1.54%	1.54%	1.55%	1.54%	1.52%
Expenses net of fee waivers, if any	1.55%^G	1.54%	1.54%	1.55%	1.54%	1.52%
Expenses net of all reductions	1.55%^G	1.54%	1.54%	1.55%	1.54%	1.52%
Net investment income (loss)	.80%^G	.67%	.50%	.42%	.57%	.24%
Supplemental Data
Net assets, end of period (in millions)	$59	$72	$94	$54	$58	$73
Portfolio turnover rate^H	146%^G	157%	93%	83%	131%	192%

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

^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.

^G Annualized

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

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

Fidelity Government Income Fund

	Six months ended (Unaudited) February 28,	Years endedAugust 31,
	2018	2017	2016	2015	2014	2013
Selected Per–Share Data
Net asset value, beginning of period	$10.35	$10.65	$10.48	$10.45	$10.18	$10.95
Income from Investment Operations
Net investment income (loss)^A	.096	.181	.167	.159	.171	.138
Net realized and unrealized gain (loss)	(.370)	(.229)	.281	.048	.278	(.453)
Total from investment operations	(.274)	(.048)	.448	.207	.449	(.315)
Distributions from net investment income	(.096)	(.176)	(.183)	(.149)	(.172)	(.133)
Distributions from net realized gain	–	(.076)	(.095)	(.028)	(.007)	(.322)
Total distributions	(.096)	(.252)	(.278)	(.177)	(.179)	(.455)
Net asset value, end of period	$9.98	$10.35	$10.65	$10.48	$10.45	$10.18
Total Return^B,^C	(2.66)%	(.42)%	4.35%	1.99%	4.45%	(2.99)%
Ratios to Average Net Assets^D,^E
Expenses before reductions	.45%^F	.45%	.45%	.45%	.45%	.45%
Expenses net of fee waivers, if any	.45%^F	.45%	.45%	.45%	.45%	.45%
Expenses net of all reductions	.45%^F	.45%	.45%	.45%	.45%	.45%
Net investment income (loss)	1.90%^F	1.76%	1.59%	1.51%	1.66%	1.31%
Supplemental Data
Net assets, end of period (in millions)	$3,172	$3,467	$3,896	$3,489	$3,157	$3,412
Portfolio turnover rate^G	146%^F	157%	93%	83%	131%	192%

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

^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 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%.

^E 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.

^F Annualized

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

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

Fidelity Government Income Fund Class I

	Six months ended (Unaudited) February 28,	Years endedAugust 31,
	2018	2017	2016	2015	2014	2013
Selected Per–Share Data
Net asset value, beginning of period	$10.36	$10.66	$10.50	$10.47	$10.20	$10.97
Income from Investment Operations
Net investment income (loss)^A	.094	.177	.162	.154	.166	.133
Net realized and unrealized gain (loss)	(.370)	(.230)	.271	.048	.277	(.454)
Total from investment operations	(.276)	(.053)	.433	.202	.443	(.321)
Distributions from net investment income	(.094)	(.171)	(.178)	(.144)	(.166)	(.127)
Distributions from net realized gain	–	(.076)	(.095)	(.028)	(.007)	(.322)
Total distributions	(.094)	(.247)	(.273)	(.172)	(.173)	(.449)
Net asset value, end of period	$9.99	$10.36	$10.66	$10.50	$10.47	$10.20
Total Return^B,^C	(2.68)%	(.46)%	4.19%	1.94%	4.38%	(3.03)%
Ratios to Average Net Assets^D,^E
Expenses before reductions	.50%^F	.49%	.50%	.50%	.51%	.51%
Expenses net of fee waivers, if any	.50%^F	.49%	.50%	.50%	.51%	.51%
Expenses net of all reductions	.50%^F	.49%	.50%	.50%	.51%	.51%
Net investment income (loss)	1.86%^F	1.71%	1.54%	1.46%	1.61%	1.26%
Supplemental Data
Net assets, end of period (in millions)	$451	$496	$494	$412	$298	$296
Portfolio turnover rate^G	146%^F	157%	93%	83%	131%	192%

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

^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.

^F Annualized

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

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

Notes to Financial Statements (Unaudited)

For the period ended February 28, 2018
(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 M, Class C, Government Income and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.

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.

Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%. The following summarizes the Fund's investment in each non-money market Fidelity Central Fund.

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices	Expense Ratio^(a)
Fidelity Mortgage Backed Securities Central Fund	FIMM	Seeks a high level of income by normally investing in investment-grade mortgage-related securities and repurchase agreements for those securities.	Delayed Delivery & When Issued Securities Futures Swaps	Less Than .005%

(a) 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.

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 institutional.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 Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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 Fair Value Committee (the Committee) established by the Fund's investment adviser. 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.

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 and 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. Asset backed securities, 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. Options traded over-the-counter are valued using vendor or broker-supplied valuations and are categorized as Level 2 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.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of February 28, 2018, 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.

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. 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.

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 the short-term gain distributions from the Fidelity Central Funds, futures contracts, swaps, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.

As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:

Gross unrealized appreciation	$22,537
Gross unrealized depreciation	(119,552)
Net unrealized appreciation (depreciation)	$(97,015)
Tax cost	$4,456,514

The Fund elected to defer to its next fiscal year approximately $14,932 of capital losses recognized during the period November 1, 2016 to August 31, 2017.

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

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.

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

New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.

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 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. For OTC written options with upfront premiums received, the Fund is obligated to perform and therefore does not have counterparty risk. For OTC written options with premiums to be received at a future date, the maximum risk of loss from counterparty credit risk is the amount of the premium in excess of any collateral pledged by the counterparty. 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	$(11,097)	$(225)
Purchased Options	66	446
Swaps	(131)	(305)
Written Options	–	91
Totals	$(11,162)	$7

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.

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 on futures contracts 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 presented 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 notional 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 realized and unrealized gains (losses) on purchased options are included in 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 presented in 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, and are representative of volume of activity during the period.

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 on centrally cleared OTC swaps 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 presented in the Statement of Operations.

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 $239,830 and $189,317, 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.

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

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$203	$37
Class M	-%	.25%	186	41
Class C	.75%	.25%	328	11
			$717	$89

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, .75% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.

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

	Retained by FDC
Class A	$2
Class M	1
Class C^(a)	1
	$4

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

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of 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 average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

	Amount	% of Class-Level Average Net Assets^(a)
Class A	$137	.17
Class M	120	.16
Class C	63	.19
Government Income	1,668	.10
Class I	346	.14
	$2,334

(a) Annualized

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% of the Fund's average net assets less the total amount of the management fee. The FWOE paid by the Fund is reduced by an amount equal to the fees and expenses paid to the independent Trustees. For the period, the FWOE fee was equivalent to an annualized rate of .04% of average net assets.

Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.

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.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and 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. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $18.

9. Expense Reductions.

Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses $2.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2018	Year ended August 31, 2017
From net investment income
Class A	$1,265	$3,003
Class M	1,165	2,353
Class C	258	492
Government Income	31,372	60,593
Class I	4,422	8,038
Total	$38,482	$74,479
From net realized gain
Class A	$–	$1,831
Class M	–	1,339
Class C	–	658
Government Income	–	27,600
Class I	–	3,528
Total	$–	$34,956

11. Share Transactions.

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

	Shares	Shares	Dollars	Dollars
	Six months ended February 28, 2018	Year ended August 31, 2017	Six months ended February 28, 2018	Year ended August 31, 2017
Class A
Shares sold	1,470	4,084	$14,931	$42,226
Reinvestment of distributions	120	450	1,225	4,652
Shares redeemed	(3,158)	(12,230)	(32,227)	(125,628)
Net increase (decrease)	(1,568)	(7,696)	$(16,071)	$(78,750)
Class M
Shares sold	1,871	3,752	$19,034	$38,695
Reinvestment of distributions	106	338	1,076	3,499
Shares redeemed	(3,042)	(7,416)	(30,989)	(76,589)
Net increase (decrease)	(1,065)	(3,326)	$(10,879)	$(34,395)
Class C
Shares sold	517	1,245	$5,274	$12,880
Reinvestment of distributions	24	102	244	1,056
Shares redeemed	(1,520)	(3,261)	(15,467)	(33,484)
Net increase (decrease)	(979)	(1,914)	$(9,949)	$(19,548)
Government Income
Shares sold	26,130	78,457	$265,748	$805,428
Reinvestment of distributions	2,963	8,206	30,085	84,659
Shares redeemed	(46,215)	(117,437)	(470,136)	(1,203,566)
Net increase (decrease)	(17,122)	(30,774)	$(174,303)	$(313,479)
Class I
Shares sold	11,075	13,696	$113,239	$140,776
Reinvestment of distributions	418	1,085	4,245	11,211
Shares redeemed	(14,199)	(13,214)	(144,940)	(135,947)
Net increase (decrease)	(2,706)	1,567	$(27,456)	$16,040

12. Other.

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

Shareholder Expense Example

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2017 to February 28, 2018).

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.

	Annualized Expense Ratio-^A	Beginning Account Value September 1, 2017	Ending Account Value February 28, 2018	Expenses Paid During Period-^B September 1, 2017 to February 28, 2018
Class A	.77%
Actual		$1,000.00	$971.90	$3.76
Hypothetical-^C		$1,000.00	$1,020.98	$3.86
Class M	.77%
Actual		$1,000.00	$971.90	$3.76
Hypothetical-^C		$1,000.00	$1,020.98	$3.86
Class C	1.55%
Actual		$1,000.00	$968.10	$7.56
Hypothetical-^C		$1,000.00	$1,017.11	$7.75
Government Income	.45%
Actual		$1,000.00	$973.40	$2.20
Hypothetical-^C		$1,000.00	$1,022.56	$2.26
Class I	.50%
Actual		$1,000.00	$973.20	$2.45
Hypothetical-^C		$1,000.00	$1,022.32	$2.51

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

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

^C 5% return per year before expenses

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Government Income Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

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

At its September 2017 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.

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

Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase above the new breakpoint.

Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.

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

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

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.

Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.

The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance.

In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.

The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.

Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.

Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' competitive analysis of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.

Management Fee. The Board considered two proprietary management fee comparisons for the 12-month periods shown in basis points (BP) in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s and the number of funds in the Total Mapped Group are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee rate ranked, is also included in the chart and considered by the Board.

Fidelity Government Income Fund

The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2016.

The Board noted that it and the boards of other Fidelity funds formed an ad hoc Committee on Group Fee, which meets periodically, to conduct an in-depth review of the "group fee" component of the management fee of funds with such management fee structures. The Committee's focus included the mechanics of the group fee, the competitive landscape of group fee structures, Fidelity funds with no group fee component and investment products not included in group fee assets. The Board also considered that, for funds subject to the group fee, FMR agreed to voluntarily waive fees over a specified period of time in amounts designed to account for assets converted from certain funds to certain collective investment trusts.

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

Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's management fee rate as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expense ratio of each class ranked below the competitive median for 2016.

The Board considered that the current contractual arrangements for the fund have the effect of setting the total "fund-level" (but not "class-level") expenses (including, among certain other "fund-level" expenses, the management fee) for each class at 0.35%. The Board also considered that current contractual arrangements oblige FMR to pay all "class-level" expenses of the retail class of the fund to the extent necessary to limit total operating expenses, with certain exceptions, to 0.45%. These contractual arrangements may not be amended to increase the fees or expenses payable except by a vote of a majority of the Board and by a vote of a majority of the outstanding voting securities of the fund or class, as applicable.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus the assets of sector funds previously under FMR's management). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board noted, however, that because the current contractual arrangements set the total "fund-level" expenses for each class at 0.35%, increases or decreases in the management fee due to changes in the group fee rate will not impact the total expense ratio.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients with similar mandates. The Board noted that an ad hoc joint committee created by it and the boards of other Fidelity funds periodically reviews and compares Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.

Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

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

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

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

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

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

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that a committee (the Economies of Scale Committee) created by it and the boards of other Fidelity funds periodically analyzes whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) the terms of Fidelity's contractual and voluntary expense cap and waiver arrangements with the funds; (vi) the methodology with respect to competitive fund data and peer group classifications; (vii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes relative to competitive trends, and the impact of the increased use of omnibus accounts; (viii) Fidelity's long-term expectations for its offerings in the workplace investing channel; (ix) new developments in the retail and institutional marketplaces and the competitive positioning of the funds relative to other investment products and services; (x) the approach to considering "fall-out" benefits; (xi) the impact of money market reform on Fidelity's money market funds, including with respect to costs and profitability; (xii) the funds' share class structures and distribution channels, including the impact of the Department of Labor's new fiduciary rule on the funds' distribution arrangements; and (xiii) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain classes. In addition, the Board considered its discussions with Fidelity throughout the year regarding enhanced information security initiatives and the funds' fair valuation policies.

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

Fidelity Investments

AGVT-SANN-0418
1.834245.111

Fidelity® Government Income Fund

Semi-Annual Report

February 28, 2018

Contents

Investment Summary
Schedule of Investments
Financial Statements
Notes to Financial Statements
Shareholder Expense Example
Board Approval of Investment Advisory Contracts and Management Fees

You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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

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

NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE

Neither the Fund nor Fidelity Distributors Corporation is a bank.

Investment Summary (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 February 28, 2018

	% of fund's investments
Zero coupon bonds	0.3
0.01 - 0.99%	0.0
1 - 1.99%	19.7
2 - 2.99%	27.7
3 - 3.99%	24.3
4 - 4.99%	14.0
5 - 5.99%	7.8
6 - 6.99%	0.9
7% and above	0.0

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

Asset Allocation (% of fund's net assets)

As of February 28, 2018^,^,^**
	Mortgage Securities	26.4%
	CMOs and Other Mortgage Related Securities	29.6%
	U.S. Treasury Obligations	36.0%
	U.S. Government Agency Obligations^†	2.2%
	Foreign Government & Government Agency Obligations	3.6%
	Asset-Backed Securities	3.9%
	Short-Term Investments and Net Other Assets (Liabilities)^††	(1.7)%

* Foreign investments – 3.6%

** Futures and Swaps – 10.6%

*** Written options - (3.0)%

† 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.

Percentages shown as 0.0% may reflect amounts less than 0.05%.

Schedule of Investments February 28, 2018 (Unaudited)

Showing Percentage of Net Assets

U.S. Government and Government Agency Obligations - 38.2%
	Principal Amount (000s)	Value (000s)
U.S. Government Agency Obligations - 0.2%
Fannie Mae:
0.875% 8/2/19	$131	$129
1% 2/26/19	326	322
1.125% 12/14/18	240	238
Tennessee Valley Authority:
5.25% 9/15/39	2,807	3,607
5.375% 4/1/56	3,438	4,559
		8,855
U.S. Treasury Obligations - 36.0%
U.S. Treasury Bonds:
stripped coupon 2/15/34	23,210	14,118
2.5% 2/15/46	28,232	24,909
2.75% 8/15/47	49,596	45,946
2.75% 11/15/47	4,400	4,077
2.875% 8/15/45	112,441	107,188
3% 11/15/44	29,032	28,380
3% 11/15/45	40,000	39,056
3% 5/15/47	15,900	15,498
3% 2/15/48	4,500	4,389
3.625% 2/15/44	43,531	47,450
4.75% 2/15/37 (a)(b)	52,044	65,285
5% 5/15/37 (a)(b)(c)	32,242	41,648
U.S. Treasury Notes:
1.125% 9/30/21	60,467	57,578
1.375% 4/30/20	29,895	29,303
1.375% 8/31/20	5,000	4,881
1.375% 1/31/21	22,500	21,835
1.375% 4/30/21	15,000	14,504
1.375% 5/31/21	20,000	19,313
1.5% 4/15/20	653	642
1.5% 7/15/20	20,725	20,325
1.5% 8/15/26	9,629	8,642
1.625% 6/30/20	4,710	4,633
1.625% 7/31/20	30,000	29,495
1.625% 8/31/22	17,293	16,565
1.75% 10/31/20	2,405	2,366
1.75% 12/31/20	31,701	31,134
1.75% 6/30/22	34,052	32,859
1.875% 1/31/22	45,770	44,592
1.875% 3/31/22	56,661	55,107
1.875% 7/31/22	85,036	82,405
1.875% 9/30/22(b)	28,814	27,876
2% 9/30/20	15,143	15,001
2% 12/31/21	78,894	77,291
2% 7/31/22	18,845	18,375
2% 10/31/22	10,000	9,720
2% 8/15/25 (a)	38,778	36,632
2% 11/15/26	12,579	11,732
2.125% 6/30/21	22,000	21,746
2.125% 12/31/21	2,000	1,969
2.125% 6/30/22	146	143
2.125% 7/31/24	77,525	74,585
2.125% 11/30/24	51,557	49,440
2.125% 5/15/25	18,702	17,860
2.25% 2/29/20	22,000	21,996
2.25% 7/31/21	26,021	25,801
2.25% 12/31/24	47,409	45,800
2.25% 2/15/27	3,000	2,850
2.25% 11/15/27	13,251	12,538
2.375% 1/31/23	8,710	8,600
2.375% 5/15/27	2,200	2,110
2.625% 2/28/23	25,000	24,973
2.75% 2/15/28	9,000	8,909
		1,430,070
Other Government Related - 2.0%
National Credit Union Administration Guaranteed Notes Series 2010-A1 Class A, 1 month U.S. LIBOR + 0.350% 1.9293% 12/7/20 (NCUA Guaranteed) (d)(e)	2,394	2,397
National Credit Union Administration Guaranteed Notes Master Trust 3.45% 6/12/21 (NCUA Guaranteed)	74,000	75,522
		77,919
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,565,589)		1,516,844

U.S. Government Agency - Mortgage Securities - 12.0%
Fannie Mae - 5.3%
12 month U.S. LIBOR + 1.415% 3.165% 11/1/33 (d)(e)	77	79
12 month U.S. LIBOR + 1.480% 3.312% 7/1/34 (d)(e)	88	91
12 month U.S. LIBOR + 1.523% 3.218% 3/1/36 (d)(e)	340	352
12 month U.S. LIBOR + 1.551% 2.488% 2/1/44 (d)(e)	308	317
12 month U.S. LIBOR + 1.553% 2.611% 5/1/44 (d)(e)	972	997
12 month U.S. LIBOR + 1.553% 3.326% 6/1/36 (d)(e)	81	84
12 month U.S. LIBOR + 1.558% 2.449% 2/1/44 (d)(e)	393	405
12 month U.S. LIBOR + 1.565% 3.315% 3/1/37 (d)(e)	111	116
12 month U.S. LIBOR + 1.570% 2.559% 5/1/44 (d)(e)	528	542
12 month U.S. LIBOR + 1.574% 2.656% 4/1/44 (d)(e)	1,396	1,436
12 month U.S. LIBOR + 1.580% 2.44% 4/1/44 (d)(e)	555	570
12 month U.S. LIBOR + 1.580% 2.519% 1/1/44 (d)(e)	576	593
12 month U.S. LIBOR + 1.725% 2.592% 6/1/42 (d)(e)	236	243
12 month U.S. LIBOR + 1.728% 3.445% 11/1/36 (d)(e)	54	57
12 month U.S. LIBOR + 1.741% 3.477% 3/1/40 (d)(e)	1,055	1,087
12 month U.S. LIBOR + 1.745% 3.448% 7/1/35 (d)(e)	124	128
12 month U.S. LIBOR + 1.800% 2.747% 1/1/42 (d)(e)	804	834
12 month U.S. LIBOR + 1.800% 3.573% 7/1/41 (d)(e)	210	221
12 month U.S. LIBOR + 1.818% 2.689% 2/1/42 (d)(e)	1,145	1,187
12 month U.S. LIBOR + 1.818% 3.016% 9/1/41 (d)(e)	120	124
12 month U.S. LIBOR + 1.818% 3.266% 7/1/41 (d)(e)	161	169
12 month U.S. LIBOR + 1.830% 3.337% 10/1/41 (d)(e)	110	116
12 month U.S. LIBOR + 1.851% 3.518% 5/1/36 (d)(e)	66	68
6 month U.S. LIBOR + 1.475% 2.975% 10/1/33 (d)(e)	70	72
6 month U.S. LIBOR + 1.510% 3.043% 2/1/33 (d)(e)	47	48
6 month U.S. LIBOR + 1.535% 2.938% 12/1/34 (d)(e)	105	108
6 month U.S. LIBOR + 1.535% 2.958% 3/1/35 (d)(e)	53	55
6 month U.S. LIBOR + 1.556% 3.046% 10/1/33 (d)(e)	39	40
6 month U.S. LIBOR + 1.565% 2.999% 7/1/35 (d)(e)	46	47
U.S. TREASURY 1 YEAR INDEX + 1.965% 2.84% 2/1/36 (d)(e)	46	48
U.S. TREASURY 1 YEAR INDEX + 2.208% 3.083% 3/1/35 (d)(e)	49	52
U.S. TREASURY 1 YEAR INDEX + 2.295% 3.54% 10/1/33 (d)(e)	83	87
3.5% 3/1/48 (f)	98,100	97,921
4% 5/1/29 to 1/1/47	42,827	44,165
4% 3/1/48 (f)	7,000	7,171
4% 4/1/48 (f)	7,000	7,159
4.5% 11/1/25 to 6/1/41	7,358	7,715
5.5% 12/1/39 to 5/1/44	29,060	31,974
6% 1/1/34 to 6/1/36	4,437	4,948
6.5% 3/1/22 to 5/1/27	226	247
9.5% 10/1/20	3	3
11.5% 1/15/21	0	0
		211,676
Freddie Mac - 0.6%
12 month U.S. LIBOR + 1.754% 3.067% 9/1/41 (d)(e)	1,164	1,218
12 month U.S. LIBOR + 1.874% 3.634% 10/1/42 (d)(e)	639	668
12 month U.S. LIBOR + 1.877% 3.213% 4/1/41 (d)(e)	107	110
12 month U.S. LIBOR + 1.880% 3.055% 10/1/41 (d)(e)	1,785	1,859
12 month U.S. LIBOR + 1.880% 3.206% 9/1/41 (d)(e)	126	130
12 month U.S. LIBOR + 1.910% 3.278% 6/1/41 (d)(e)	129	135
12 month U.S. LIBOR + 1.910% 3.417% 5/1/41 (d)(e)	129	136
12 month U.S. LIBOR + 1.910% 3.579% 5/1/41 (d)(e)	174	183
12 month U.S. LIBOR + 1.910% 3.677% 6/1/41 (d)(e)	163	171
12 month U.S. LIBOR + 2.045% 3.811% 7/1/36 (d)(e)	241	255
12 month U.S. LIBOR + 2.197% 3.771% 3/1/33 (d)(e)	6	7
6 month U.S. LIBOR + 1.445% 2.945% 3/1/35 (d)(e)	154	158
6 month U.S. LIBOR + 1.746% 3.092% 5/1/37 (d)(e)	110	114
6 month U.S. LIBOR + 2.755% 4.273% 10/1/35 (d)(e)	118	125
U.S. TREASURY 1 YEAR INDEX + 2.383% 3.441% 2/1/36 (d)(e)	10	11
U.S. TREASURY 1 YEAR INDEX + 2.548% 3.548% 7/1/35 (d)(e)	485	506
3% 2/1/31	9,474	9,470
4% 5/1/47 to 7/1/47	4,245	4,353
4.5% 5/1/39 to 10/1/41	2,334	2,470
5.5% 7/1/29	17	18
6% 1/1/24	807	853
9.5% 11/1/19 to 8/1/21	2	2
		22,952
Ginnie Mae - 6.1%
6% 6/15/36	3,610	4,145
4.312% 8/20/61 (d)(g)	1,468	1,480
4.5% 3/1/48 (f)	12,800	13,314
4.5% 3/1/48 (f)	10,950	11,389
4.5% 3/1/48 (f)	10,950	11,389
4.5% 3/1/48 (f)	11,400	11,858
4.5% 3/1/48 (f)	17,050	17,734
4.5% 3/1/48 (f)	42,650	44,362
4.5% 4/1/48 (f)	49,400	51,323
4.5% 4/1/48 (f)	56,400	58,595
4.642% 2/20/62 (d)(g)	1,905	1,938
4.674% 2/20/62 (d)(g)	2,328	2,362
4.698% 1/20/62 (d)(g)	12,873	13,054
5.47% 8/20/59 (d)(g)	14	14
		242,957
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES
(Cost $479,703)		477,585

Asset-Backed Securities - 3.9%
GCO Education Loan Funding Trust Series 2006-1 Class A8L, 3 month U.S. LIBOR + 0.130% 2.0736% 5/25/25 (d)(e)	$7,233	$7,226
Goal Capital Funding Trust Series 2005-2 Class A3, 3 month U.S. LIBOR + 0.170% 2.1136% 5/28/30 (d)(e)	3,496	3,492
Illinois Student Assistance Commission Student Loan Rev. Series 2010-1 Class A2, 3 month U.S. LIBOR + 1.050% 2.4174% 4/25/22 (d)(e)	993	994
Navient Student Loan Trust:
Series 2017-3A:
Class A1, 1 month U.S. LIBOR + 0.300% 1.9207% 7/26/66 (d)(e)(h)	9,737	9,742
Class A2, 1 month U.S. LIBOR + 0.600% 2.2207% 7/26/66 (d)(e)(h)	14,550	14,642
Series 2018-1A Class A1, 1 month U.S. LIBOR + 0.250% 1.7514% 3/25/67 (d)(e)(h)	16,267	16,261
Nelnet Student Loan Trust 3 month U.S. LIBOR + 0.100% 1.8452% 1/25/30 (d)(e)	8,717	8,703
Northstar Education Finance, Inc., Delaware Series 2004-2 Class A4, 3 month U.S. LIBOR + 0.230% 1.608% 7/28/21 (d)(e)	26,023	26,002
SLM Student Loan Trust Series 2007-8 Class A4, 3 month U.S. LIBOR + 0.470% 2.2152% 1/26/26 (d)(e)	64,752	64,921
Small Business Administration guaranteed development participation certificates:
Series 2002-20J Class 1, 4.75% 10/1/22	558	568
Series 2002-20K Class 1, 5.08% 11/1/22	834	861
Series 2004-20H Class 1, 5.17% 8/1/24	342	357
TOTAL ASSET-BACKED SECURITIES
(Cost $153,633)		153,769

Collateralized Mortgage Obligations - 16.7%
U.S. Government Agency - 16.7%
Fannie Mae:
floater:	$	$
Series 2001-38 Class QF, 1 month U.S. LIBOR + 0.980% 2.6007% 8/25/31 (d)(e)	78	80
Series 2002-49 Class FB, 1 month U.S. LIBOR + 0.600% 2.19% 11/18/31 (d)(e)	72	73
Series 2002-60 Class FV, 1 month U.S. LIBOR + 1.000% 2.6207% 4/25/32 (d)(e)	31	32
Series 2002-75 Class FA, 1 month U.S. LIBOR + 1.000% 2.6207% 11/25/32 (d)(e)	63	65
Series 2010-15 Class FJ, 1 month U.S. LIBOR + 0.930% 2.5507% 6/25/36 (d)(e)	4,730	4,803
planned amortization class:
Series 2005-19 Class PA, 5.5% 7/25/34	972	999
Series 2005-64 Class PX, 5.5% 6/25/35	1,264	1,337
Series 2005-68 Class CZ, 5.5% 8/25/35	3,778	4,126
Series 2006-45 Class OP 6/25/36 (i)	649	550
Series 2010-118 Class PB, 4.5% 10/25/40	5,382	5,554
Series 2012-149:
Class DA, 1.75% 1/25/43	970	928
Class GA, 1.75% 6/25/42	954	911
sequential payer:
Series 2003-117 Class MD, 5% 12/25/23	660	688
Series 2004-91 Class Z, 5% 12/25/34	4,427	4,725
Series 2005-117 Class JN, 4.5% 1/25/36	322	335
Series 2005-14 Class ZB, 5% 3/25/35	1,379	1,475
Series 2006-72 Class CY, 6% 8/25/26	2,734	2,909
Series 2009-59 Class HB, 5% 8/25/39	2,046	2,188
Series 201-75 Class AL, 3.5% 8/25/26	11,851	12,087
Series 2010-97 Class CX, 4.5% 9/25/25	10,927	11,406
Series 2011-80:
Class HE, 3.5% 8/25/26	4,160	4,254
Class KB, 3.5% 8/25/26	6,462	6,598
Series 2009-85 Class IB, 4.5% 8/25/24 (j)	160	6
Series 2009-93 Class IC, 4.5% 9/25/24 (j)	219	7
Series 2010-139 Class NI, 4.5% 2/25/40 (j)	2,898	296
Series 2010-39 Class FG, 1 month U.S. LIBOR + 0.920% 2.5407% 3/25/36 (d)(e)	2,958	3,023
Series 2010-97 Class CI, 4.5% 8/25/25 (j)	636	30
Series 2012-27 Class EZ, 4.25% 3/25/42	6,806	7,047
Series 2016-26 Class CG, 3% 5/25/46	18,866	18,773
Freddie Mac:
floater:
Series 2530 Class FE, 1 month U.S. LIBOR + 0.600% 2.1875% 2/15/32 (d)(e)	42	42
Series 2630 Class FL, 1 month U.S. LIBOR + 0.500% 2.0875% 6/15/18 (d)(e)	2	2
Series 2682 Class FB, 1 month U.S. LIBOR + 0.900% 2.4875% 10/15/33 (d)(e)	2,203	2,235
Series 2711 Class FC, 1 month U.S. LIBOR + 0.900% 2.4875% 2/15/33 (d)(e)	1,347	1,373
planned amortization class:
Series 1141 Class G, 9% 9/15/21	26	28
Series 2682 Class LD, 4.5% 10/15/33	591	617
Series 3415 Class PC, 5% 12/15/37	405	431
Series 3840 Class VA, 4.5% 9/15/27	3,465	3,502
Series 3857 Class ZP, 5% 5/15/41	3,067	3,457
Series 4135 Class AB, 1.75% 6/15/42	713	681
sequential payer:
Series 2004-2802 Class ZG, 5.5% 5/15/34	6,664	7,274
Series 2587 Class AD, 4.71% 3/15/33	2,368	2,462
Series 2773 Class HC, 4.5% 4/15/19	46	46
Series 2877 Class ZD, 5% 10/15/34	5,452	5,823
Series 3007 Class EW, 5.5% 7/15/25	4,333	4,580
Series 3745 Class KV, 4.5% 12/15/26	6,018	6,310
Series 3806 Class L, 3.5% 2/15/26	8,900	9,102
Series 3862 Class MB, 3.5% 5/15/26	6,893	7,039
Series 3871 Class KB, 5.5% 6/15/41	13,870	15,553
Series 3889 Class DZ, 4% 1/15/41	35,497	36,351
Series 3843 Class PZ, 5% 4/15/41	2,623	2,927
Freddie Mac Multi-family Structured pass-thru certificates sequential payer:
Series 4335 Class AL, 4.25% 3/15/40	6,078	6,268
Series 4341 Class ML, 3.5% 11/15/31	8,800	8,954
Ginnie Mae guaranteed REMIC pass-thru certificates:
floater:
Series 2008-2 Class FD, 1 month U.S. LIBOR + 0.480% 2.0412% 1/20/38 (d)(e)	216	217
Series 2008-73 Class FA, 1 month U.S. LIBOR + 0.860% 2.4212% 8/20/38 (d)(e)	1,663	1,692
Series 2008-83 Class FB, 1 month U.S. LIBOR + 0.900% 2.4612% 9/20/38 (d)(e)	1,416	1,446
Series 2009-108 Class CF, 1 month U.S. LIBOR + 0.600% 2.1881% 11/16/39 (d)(e)	881	887
Series 2011-H20 Class FA, 1 month U.S. LIBOR + 0.550% 1.9294% 9/20/61 (d)(e)(g)	8,184	8,215
Series 2011-H21 Class FA, 1 month U.S. LIBOR + 0.600% 1.9794% 10/20/61 (d)(e)(g)	5,344	5,368
Series 2012-H01 Class FA, 1 month U.S. LIBOR + 0.700% 2.0794% 11/20/61 (d)(e)(g)	4,547	4,582
Series 2012-H03 Class FA, 1 month U.S. LIBOR + 0.700% 2.0794% 1/20/62 (d)(e)(g)	2,991	3,013
Series 2012-H06 Class FA, 1 month U.S. LIBOR + 0.630% 2.0094% 1/20/62 (d)(e)(g)	4,282	4,306
Series 2012-H07 Class FA, 1 month U.S. LIBOR + 0.630% 2.0094% 3/20/62 (d)(e)(g)	2,638	2,653
Series 2012-H21 Class DF, 1 month U.S. LIBOR + 0.650% 2.0294% 5/20/61 (d)(e)(g)	2,264	2,268
Series 2013-H19:
Class FC, 1 month U.S. LIBOR + 0.600% 1.9794% 8/20/63 (d)(e)(g)	1,091	1,096
Class FD, 1 month U.S. LIBOR + 0.600% 1.9794% 8/20/63 (d)(e)(g)	2,838	2,849
Series 2014-H02 Class FB, 1 month U.S. LIBOR + 0.650% 2.2118% 12/20/63 (d)(e)(g)	35,584	35,830
Series 2014-H03 Class FA, 1 month U.S. LIBOR + 0.600% 2.1618% 1/20/64 (d)(e)(g)	13,245	13,307
Series 2015-H07 Class FA, 1 month U.S. LIBOR + 0.300% 1.8618% 3/20/65 (d)(e)(g)	6,465	6,466
Series 2015-H13 Class FL, 1 month U.S. LIBOR + 0.280% 1.8418% 5/20/63 (d)(e)(g)	8,210	8,212
Series 2015-H19 Class FA, 1 month U.S. LIBOR + 0.200% 1.7618% 4/20/63 (d)(e)(g)	9,484	9,481
Series 2016-H20 Class FM, 1 month U.S. LIBOR + 0.400% 1.9618% 12/20/62 (d)(e)(g)	10,209	10,219
planned amortization class Series 2010-31 Class BP, 5% 3/20/40	11,191	12,122
sequential payer:
Series 2011-69 Class GX, 4.5% 5/16/40	10,205	10,741
Series 2013-H06 Class HA, 1.65% 1/20/63 (g)	4,122	4,072
Series 2013-H26 Class HA, 3.5% 9/20/63 (g)	35,666	35,998
Series 2014-H04 Class HA, 2.75% 2/20/64 (g)	8,623	8,595
Series 2014-H12 Class KA, 2.75% 5/20/64 (g)	4,728	4,682
Series 2016-H02 Class FM, 1 month U.S. LIBOR + 0.500% 2.0618% 9/20/62 (d)(e)(g)	17,875	17,924
Series 2016-H04 Class FE, 1 month U.S. LIBOR + 0.650% 2.2118% 11/20/65 (d)(e)(g)	3,183	3,194
Series 2004-22 Class M1, 5.5% 4/20/34	600	717
Series 2010-169 Class Z, 4.5% 12/20/40	6,980	7,347
Series 2010-H15 Class TP, 5.15% 8/20/60 (g)	10,915	11,139
Series 2010-H17 Class XP, 5.2946% 7/20/60 (d)(g)	10,751	11,011
Series 2010-H18 Class PL, 5.01% 9/20/60 (d)(g)	9,679	9,862
Series 2012-64 Class KI, 3.5% 11/20/36 (j)	978	77
Series 2013-124:
Class ES, 8.667% - 1 month U.S. LIBOR 6.5851% 4/20/39 (d)(k)	3,530	3,617
Class ST, 8.800% - 1 month U.S. LIBOR 6.7184% 8/20/39 (d)(k)	9,799	10,156
Series 2013-H07 Class JA, 1.75% 3/20/63 (g)	23,116	22,782
Series 2015-H17 Class HA, 2.5% 5/20/65 (g)	12,428	12,391
Series 2015-H21:
Class HA, 2.5% 6/20/63 (g)	34,918	34,841
Class JA, 2.5% 6/20/65 (g)	4,043	4,032
Series 2015-H30 Class HA, 1.75% 9/20/62 (d)(g)	36,646	36,236
Series 2016-H13 Class FB, U.S. TREASURY 1 YEAR INDEX + 0.500% 1.65% 5/20/66 (d)(e)(g)	23,600	23,730
Series 2017-H06 Class FA, U.S. TREASURY 1 YEAR INDEX + 0.350% 2.11% 8/20/66 (d)(e)(g)	20,958	21,014
Series 2090-118 Class XZ, 5% 12/20/39	14,448	15,777
		664,526
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $676,388)		664,526

Commercial Mortgage Securities - 10.4%
Fannie Mae Series 2017-T1 Class A, 2.898% 6/25/27	46,890	45,022
FHLMC Multi-Family Structured Pass-Through Certificates sequential payer:
Series K071 Class A2, 3.289% 11/25/27	8,900	8,884
Series K072 Class A2, 3.444% 12/25/50	21,029	21,263
Freddie Mac:
floater:
Series KP04 Class AG1, 1 month U.S. LIBOR + 0.220% 1.7997% 7/25/20 (d)(e)	10,600	10,610
Series KP04, Class AG2, 1 month U.S. LIBOR + 0.200% 1.7797% 10/25/19 (d)(e)	21,200	21,210
pass-thru certificates sequential payer Series K011 Class A2, 4.084% 11/25/20	3,740	3,860
sequential payer:
Series 2017-SR01 Class A2, 2.75% 11/25/22	19,000	18,780
Series K009 Class A2, 3.808% 8/25/20	5,591	5,728
Series K034 Class A1, 2.669% 2/25/23	10,896	10,824
Series K073 Class A2, 3.35% 1/25/28	33,000	33,081
Series K708 Class A2, 2.13% 1/25/19	23,574	23,502
Series K709 Class A2, 2.086% 3/25/19	17,210	17,143
Series K710 Class A2, 1.883% 5/25/19	16,814	16,719
Series K713 Class A2, 2.313% 3/25/20	5,437	5,399
Series K717 Class A2, 2.991% 9/25/21	12,968	13,012
Series K729 Class A1, 2.9184% 2/25/24	24,304	24,288
Series K032 Class A1, 3.016% 2/25/23	18,386	18,497
Series K504 Class A2, 2.566% 9/25/20	15,428	15,409
Series K704 Class A2, 2.412% 8/25/18	4,481	4,479
Series K706 Class A2, 2.323% 10/25/18	9,365	9,360
Series K724 Class A1, 2.776% 3/25/23	15,830	15,770
Series K726 Class A1, 2.596% 8/25/23	4,796	4,748
Series K730 Class A1, 3.447% 9/24/24	22,600	23,051
Freddie Mac Multi-family floater Series 2017-KT01 Class A, 1 month U.S. LIBOR + 0.320% 1.8814% 2/25/20 (d)(e)	43,722	43,884
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $419,760)		414,523

Foreign Government and Government Agency Obligations - 3.6%
Israeli State:
(guaranteed by U.S. Government through Agency for International Development):
5.5% 9/18/23	72,266	82,037
5.5% 12/4/23	48	55
5.5% 4/26/24	6,065	6,936
Jordanian Kingdom 3% 6/30/25	19,267	19,336
Ukraine Government 1.471% 9/29/21	34,809	33,458
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $135,746)		141,822
	Shares	Value (000s)

Fixed-Income Funds - 21.6%
Fidelity Mortgage Backed Securities Central Fund (l)
(Cost $852,107)	8,146,148	858,767

Money Market Funds - 3.1%
Fidelity Cash Central Fund, 1.41% (m)
(Cost $122,981)	122,956,009	122,981

Purchased Swaptions - 0.2%
	Expiration Date	Notional Amount (000s)	Value (000s)
Put Options - 0.1%
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 2.495% and receive quarterly a floating rate based on 3-month LIBOR, expiring October 2027	10/5/20	13,400	$624
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 2.7875% and receive quarterly a floating rate based on 3-month LIBOR, expiring January 2028	1/25/21	77,100	2,894
Option on an interest rate swap with JPMorgan Chase Bank NA to pay semi-annually a fixed rate of 2.5340% and receive quarterly a floating rate based on 3-month LIBOR, expiring December 2027	12/8/20	44,800	2,057

TOTAL PUT OPTIONS			5,575

Call Options - 0.1%
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 2.495% and pay quarterly a floating rate based on 3-month LIBOR, expiring October 2027	10/5/20	13,400	235
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 2.7875% and pay quarterly a floating rate based on 3-month LIBOR, expiring January 2028	1/25/21	77,100	1,965
Option on an interest rate swap with JPMorgan Chase Bank NA to receive semi-annually a fixed rate of 2.5340% and pay quarterly a floating rate based on 3-month LIBOR, expiring December 2027	12/8/20	44,800	849

TOTAL CALL OPTIONS			3,049

TOTAL PURCHASED SWAPTIONS
(Cost $8,178)			8,624
TOTAL INVESTMENT IN SECURITIES - 109.7%
(Cost $4,414,085)			4,359,441
NET OTHER ASSETS (LIABILITIES) - (9.7)%			(384,188)
NET ASSETS - 100%			$3,975,253

TBA Sale Commitments
	Principal Amount (000s)	Value (000s)
Fannie Mae
3.5% 3/1/48	$(98,100)	$(97,922)
4% 3/1/48	(7,000)	(7,170)

TOTAL FANNIE MAE		(105,092)

Ginnie Mae
4.5% 3/1/48	(49,400)	(51,383)
4.5% 3/1/48	(56,400)	(58,663)

TOTAL GINNIE MAE		(110,046)

TOTAL TBA SALE COMMITMENTS
(Proceeds $215,065)		$(215,138)

Written Swaptions
	Expiration Date	Notional Amount	Value (000s)
Put Swaptions
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to pay semi-annually a fixed rate of 3.065% and receive quarterly a floating rate based on 3-month LIBOR, expiring January 2028	2/5/21	57,570	$(1,702)
Call Swaptions
Option on an interest rate swap with Goldman Sachs Bank U.S.A. to receive semi-annually a fixed rate of 3.065% and pay quarterly a floating rate based on 3-month LIBOR, expiring January 2028	2/5/21	57,570	(1,955)
TOTAL WRITTEN SWAPTIONS			$(3,657)

Futures Contracts
	Number of contracts	Expiration Date	Notional Amount (000s)	Value (000s)	Unrealized Appreciation/(Depreciation) (000s)
Purchased
Treasury Contracts
CBOT 10-Year U.S. Treasury Note Contracts (United States)	730	June 2018	$87,634	$141	$141
CBOT 2-Year U.S. Treasury Note Contracts (United States)	872	June 2018	185,273	(2)	(2)
CBOT 5-Year U.S. Treasury Note Contracts (United States)	636	June 2018	72,459	(255)	(255)
CBOT Long Term U.S. Treasury Bond Contracts (United States)	238	June 2018	34,138	416	416
CBOT Ultra 10-Year U.S. Treasury Note Contracts (United States)	75	June 2018	9,605	29	29
TOTAL FUTURES CONTRACTS					$329

The notional amount of futures purchased as a percentage of Net Assets is 9.8%

For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $385,714.

Swaps

Payment Received	Payment Frequency	Payment Paid	Payment Frequency	Clearinghouse / Counterparty(1)	Maturity Date	Notional Amount (000s)	Value (000s)	Upfront Premium Received/(Paid) (000s)(2)	Unrealized Appreciation/(Depreciation) (000s)
Interest Rate Swaps
2%	Semi - annual	3-month LIBOR(3)	Quarterly	LCH	Mar. 2025	$19,866	$(289)	$0	$(289)