-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OLF3tdKwRX4P9bzHjuGPPY+etpkvB5L2HPQN9bBbLPQfz5oYdw0m4o090e6lXV8s agb7GsvRZorlfZLqAhp5Aw== 0000729218-06-000019.txt : 20060629 0000729218-06-000019.hdr.sgml : 20060629 20060629142347 ACCESSION NUMBER: 0000729218-06-000019 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 24 CONFORMED PERIOD OF REPORT: 20060430 FILED AS OF DATE: 20060629 DATE AS OF CHANGE: 20060629 EFFECTIVENESS DATE: 20060629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY ADVISOR SERIES II CENTRAL INDEX KEY: 0000795422 IRS NUMBER: 000000000 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04707 FILM NUMBER: 06933109 BUSINESS ADDRESS: STREET 1: 82 DEVONSHIRE ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6175707000 MAIL ADDRESS: STREET 1: 82 DEVONSHIRE STREET STREET 2: MAILZONE ZH1 CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY DIVERSIFIED TRUST DATE OF NAME CHANGE: 19930706 FORMER COMPANY: FORMER CONFORMED NAME: PLYMOUTH FUND DATE OF NAME CHANGE: 19920130 FORMER COMPANY: FORMER CONFORMED NAME: PLYMOUTH INVESTMENT SERIES DATE OF NAME CHANGE: 19911204 0000795422 S000005127 Fidelity Advisor Floating Rate High Income Fund C000014012 Class A FFRAX C000014013 Class B FFRBX C000014014 Class C FFRCX C000014015 Class T FFRTX C000014016 Institutional Class FFRIX C000014128 Fidelity Floating Rate High Income Fund N-CSRS 1 adfloatrtsemi.htm

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-4707

Fidelity Advisor Series II
(Exact name of registrant as specified in charter)

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

Eric D. Roiter, Secretary

82 Devonshire St.

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

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

Date of fiscal year end:

October 31

Date of reporting period:

April 30, 2006

Item 1. Reports to Stockholders


  Fidelity® Advisor
Floating Rate High Income
Fund - Class A, Class T, Class B
and Class C

  Semiannual Report
April 30, 2006

Contents         
 
 
Chairman’s Message    3    Ned Johnson’s message to shareholders. 
 
Shareholder Expense    4    An example of shareholder expenses. 
Example         
 
Investment Changes    6    A summary of major shifts in the fund’s 
        investments over the past six months. 
 
Investments    8    A complete list of the fund’s investments 
        with their market values. 
 
Financial Statements    28    Statements of assets and liabilities, 
        operations, and changes in net assets, 
        as well as financial highlights. 
 
Notes    38    Notes to the financial statements. 
 
Report of Independent    46     
Registered Public         
Accounting Firm         
 
Board Approval of    48     
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 www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commis
sion’s (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of
the proxy voting guidelines.

Standard & Poor’s, S&P and S&P 500 are registered service marks of The McGraw Hill Companies,

Inc. and have been licensed for use by Fidelity Distributors Corporation.

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


All other marks appearing herein are registered or unregistered trademarks or service marks

of FMR Corp. or an affiliated company.

  This report and the financial statements contained herein are submitted for the general information
of the shareholders of the fund. This report is not authorized for distribution to prospective investors
in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third
quarters of each fiscal year on Form N Q. Forms N Q are available on the SEC’s web site at
http://www.sec.gov. A fund’s Forms N Q may be reviewed and copied at the SEC’s Public Refer
ence 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 hold
ings, view the most recent quarterly holdings report, semiannual report, or annual report on
Fidelity’s web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

2

Chairman’s Message

(photograph of Edward C. Johnson 3d)

Dear Shareholder:

Although many securities markets made gains in early 2006, there is only one certainty when it comes to investing: There is no sure thing. There are, however, a number of time tested, fundamental investment principles that can put the historical odds in your favor.

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

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

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

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

Sincerely,

/s/ Edward C. Johnson 3d

Edward C. Johnson 3d

3 Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, 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 (November 1, 2005 to April 30, 2006).

Actual Expenses

The first line of the table below 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 esti mate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the table below 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.

Semiannual Report

4

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.

                        Expenses Paid 
        Beginning        Ending        During Period* 
        Account Value        Account Value    November 1, 2005 
    November 1, 2005        April 30, 2006        to April 30, 2006 
Class A                         
Actual        $ 1,000.00        $ 1,028.10        $ 5.33 
HypotheticalA        $ 1,000.00        $ 1,019.54        $ 5.31 
Class T                         
Actual        $ 1,000.00        $ 1,027.80        $ 5.63 
HypotheticalA        $ 1,000.00        $ 1,019.24        $ 5.61 
Class B                         
Actual        $ 1,000.00        $ 1,025.20        $ 8.24 
HypotheticalA        $ 1,000.00        $ 1,016.66        $ 8.20 
Class C                         
Actual        $ 1,000.00        $ 1,024.90        $ 8.48 
HypotheticalA        $ 1,000.00        $ 1,016.41        $ 8.45 
Fidelity Floating Rate High                         
    Income Fund                         
Actual        $ 1,000.00        $ 1,029.40        $ 4.13 
HypotheticalA        $ 1,000.00        $ 1,020.73        $ 4.11 
Institutional Class                         
Actual        $ 1,000.00        $ 1,028.20        $ 4.27 
HypotheticalA        $ 1,000.00        $ 1,020.58        $ 4.26 
 
A 5% return per year before expenses                 

* Expenses are equal to each Class’ annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one half year period).

    Annualized 
    Expense Ratio 
Class A    1.06% 
Class T    1.12% 
Class B    1.64% 
Class C    1.69% 
Fidelity Floating Rate High Income Fund    .82% 
Institutional Class    .85% 

5 Semiannual Report

Investment Changes         
 
 
 Top Five Holdings as of April 30, 2006         
(by issuer, excluding cash equivalents)    % of fund’s    % of fund’s net assets 
    net assets    6 months ago 
NRG Energy, Inc.    2.5    0.4 
Charter Communications Operating LLC    2.5    2.8 
Qwest Corp.    2.2    2.0 
Georgia Pacific Corp.    2.2    0.5 
CSC Holdings, Inc.    2.2   0.3 
    11.6     
 
Top Five Market Sectors as of April 30, 2006 
   
    % of fund’s    % of fund’s net assets 
    net assets    6 months ago 
Cable TV    12.5    12.8 
Healthcare    7.5    7.3 
Telecommunications    7.5    8.1 
Energy    5.8    7.1 
Electric Utilities    5.1    4.5 


We have used ratings from Moody’s® Investors Services, Inc. Where Moody’s ratings are not available, we have used S&P® ratings.

Semiannual Report 6


7 Semiannual Report

Investments April 30,  2006         
Showing Percentage of Net Assets                 
 
 Floating Rate Loans (d) 76.3%                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Aerospace – 0.4%                 
DRS Technologies, Inc. term loan 6.444% 1/31/13 (c)                        $ 1,730        $ 1,747 
Mid-Western Aircraft Systems, Inc. Tranche B, term loan                 
   7.3183% 12/31/11 (c)        14,074        14,267 
Transdigm, Inc. term loan:                 
   7.1513% 7/22/10 (c)        1,564        1,583 
   10.22% 11/10/11 (c)        2,000        2,015 
                19,612 
Air Transportation – 0.9%                 
Delta Air Lines, Inc. Tranche B, term loan 11.01%                 
   3/16/08 (c)        3,290        3,380 
UAL Corp.:                 
   Tranche B, term loan 8.625% 2/1/12 (c)        21,000        21,315 
   Tranche DD, term loan 8.75% 2/1/12 (c)        3,000        3,045 
US Airways Group, Inc. term loan 8.5% 3/31/11 (c)        11,000        11,138 
                38,878 
Automotive 2.7%                 
Accuride Corp. term loan 7.1875% 1/31/12 (c)        3,277        3,314 
Advance Auto Parts, Inc. Tranche B, term loan 6.3727%                 
   9/30/10 (c)        2,974        2,981 
AM General LLC Tranche B1, term loan 9.5459%                 
   11/1/11 (c)        1,750        1,789 
Dana Corp. term loan 7.22% 4/13/08 (c)        11,120        11,190 
Delphi Corp.:                 
   revolver loan 11.75% 6/18/09 (c)(e)        2,000        2,070 
   Tranche B, term loan:                 
       7.375% 10/8/07 (c)        14,690        14,910 
       13.25% 6/14/11 (c)        16,998        17,677 
Enersys Capital, Inc. term loan 6.8232% 3/17/11 (c)        983        994 
Federal-Mogul Financing Trust term loan 6.8125%                 
   12/9/06 (c)        8,700        8,754 
Goodyear Tire & Rubber Co. Tranche 1, Credit-Linked                 
   Deposit 6.4% 4/30/10 (c)        19,820        19,993 
Mark IV Industries, Inc. Tranche B, term loan 7.9655%                 
   6/23/11 (c)        2,937        2,970 
Rexnord Corp. term loan 7.1056% 12/31/11 (c)        2,678        2,722 
Tenneco Auto, Inc.:                 
   Tranche B, term loan 7.02% 12/12/10 (c)        3,042        3,087 
   Tranche B1, Credit-Linked Deposit 7.0756%                 
       12/12/10 (c)        1,336        1,356 
Travelcenters of America, Inc. Tranche B, term loan                 
   6.6199% 12/1/11 (c)        7,554        7,591 

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

Semiannual Report

8

 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Automotive continued                 
TRW Automotive Holdings Corp.:                 
   Tranche B, term loan 6.25% 6/30/12 (c)        $ 2,283        $ 2,289 
   Tranche B2, term loan 6.125% 6/30/12 (c)        1,995        2,000 
   Tranche E, term loan 6% 10/31/10 (c)        14,813        14,850 
                120,537 
Broadcasting – 1.4%                 
Emmis Operating Co. Tranche B, term loan 6.7238%                 
   11/10/11 (c)        9,490        9,538 
Entravision Communication Corp. term loan 6.49%                 
   3/29/13 (c)        5,970        6,007 
Gray Television, Inc.:                 
   Tranche B, term loan 6.49% 11/22/12 (c)        8,152        8,193 
   Tranche B2, term loan 6.48% 5/22/13 (c)        2,494        2,506 
Montecito Broadcast Group LLC Tranche 1, term loan                 
   7.7231% 1/27/13 (c)        1,995        2,025 
Nexstar Broadcasting, Inc. Tranche B, term loan 6.28%                 
   10/1/12 (c)        14,483        14,519 
Paxson Communications Corp. term loan 8.3183%                 
   1/15/12 (c)        6,000        6,120 
Raycom TV Broadcasting, Inc. Tranche B, term loan 6.5%                 
   8/28/13 (c)        5,984        5,999 
Spanish Broadcasting System, Inc. Tranche 1, term loan                 
   6.73% 6/10/12 (c)        7,920        7,970 
                62,877 
Building Materials – 0.8%                 
Contech Construction Products, Inc., Ohio term loan                 
   6.9267% 2/9/13 (c)        3,750        3,797 
Goodman Global Holdings, Inc. Tranche C, term loan                 
   6.625% 12/23/11 (c)        5,813        5,856 
Masonite International Corp. term loan 7.106%                 
   4/5/13 (c)        16,335        16,192 
Nortek Holdings, Inc. Tranche B, term loan 6.9504%                 
   8/27/11 (c)        11,820        11,894 
                37,739 
Cable TV – 10.0%                 
Adelphia Communications Corp. Tranche B, term loan                 
   6.9375% 8/7/06 (c)        30,350        30,502 
Charter Communications Operating LLC Tranche B, term                 
   loan 7.755% 4/28/13 (c)        110,000        110,401 
Cox Communications, Inc. term loan 5.87% 12/8/09 (c)        21,000        21,000 
CSC Holdings, Inc. Tranche B, term loan 6.6643%                 
   3/29/13 (c)        80,000        80,200 

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

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Cable TV – continued                 
DIRECTV Holdings LLC Tranche B, term loan 6.4225%                 
   4/13/13 (c)        $ 24,347        $ 24,560 
Insight Midwest Holdings LLC:                 
   Tranche A, term loan 6.25% 6/30/09 (c)        21,503        21,530 
   Tranche C, term loan 7% 12/31/09 (c)        14,670        14,798 
Liberty Cablevision of Puerto Rico LTC term loan 7.09%                 
   3/1/13 (c)        5,000        5,038 
Mediacom Broadband LLC/Mediacom Broadband Corp.                 
   Tranche C, term loan 6.7861% 2/1/14 (c)        3,930        3,930 
Mediacom LLC Tranche B, term loan 7.0671%                 
   3/31/13 (c)        9,825        9,825 
NTL Cable PLC term loan 10.3313% 3/3/07 (c)        17,000        17,000 
PanAmSat Corp. Tranche B1, term loan 6.8998%                 
   8/20/11 (c)        52,334        52,857 
Rainbow Media Holdings, Inc. Tranche B, term loan                 
   7.5625% 3/31/12 (c)        6,935        7,004 
San Juan Cable, Inc. Tranche 1, term loan 6.84%                 
   10/31/12 (c)        5,985        6,052 
UPC Broadband Holding BV Tranche H2, term loan                 
   7.33% 9/30/12 (c)        33,000        33,000 
UPC Distribution Holdings BV Tranche F, term loan                 
   7.83% 12/31/11 (c)        11,008        11,008 
                448,705 
Capital Goods 1.5%                 
AGCO Corp. term loan 6.7294% 7/3/09 (c)        9,286        9,356 
Amsted Industries, Inc.:                 
   term loan 7.0023% 4/5/13 (c)        4,889        4,950 
   Tranche DD, term loan 4/5/13 (e)        3,111        3,096 
Chart Industries, Inc. Tranche B, term loan 6.625%                 
   10/17/12 (c)        3,617        3,676 
Dresser, Inc. Tranche C, term loan 7.5% 4/10/09 (c)        1,407        1,432 
Flowserve Corp. term loan 6.6582% 8/10/12 (c)        11,362        11,504 
Hexcel Corp. Tranche B, term loan 6.7253% 3/1/12 (c)        5,057        5,101 
Invensys International Holding Ltd.:                 
   Tranche A, term loan 7.8413% 3/5/09 (c)        1,927        1,942 
   Tranche B1, term loan 8.5013% 9/4/09 (c)        3,049        3,079 
Mueller Group, Inc. term loan 7.263% 10/3/12 (c)        8,060        8,170 
NACCO Materials Handling Group, Inc. term loan                 
   3/21/13 (e)        2,000        2,015 

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

Semiannual Report

10

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Capital Goods – continued                 
Terex Corp.:                 
   term loan 7.7594% 12/31/09 (c)        $ 1,489        $ 1,503 
   Tranche B, term loan 7.2594% 7/3/09 (c)        7,309        7,382 
Walter Industries, Inc. term loan 6.885% 10/3/12 (c)        4,692        4,745 
                67,951 
Chemicals – 3.9%                 
Basell USA, Inc.:                 
   Tranche B2, term loan 7.31% 8/1/13 (c)        1,730        1,760 
   Tranche C2, term loan 8% 8/1/14 (c)        1,730        1,760 
Brenntag AG Tranche B, term loan 7.44% 1/18/14 (c) .        4,000        4,055 
Celanese AG Credit-Linked Deposit 7.3375% 4/6/09 (c)        6,000        6,090 
Celanese Holding LLC term loan 6.9272% 4/6/11 (c)        39,652        40,198 
Hercules, Inc. Tranche B, term loan 6.526% 10/8/10 (c)        5,397        5,424 
Huntsman International LLC Tranche B, term loan                 
   6.6794% 8/16/12 (c)        36,631        36,677 
INEOS US Finance:                 
   Tranche B, term loan 7.3392% 1/31/13 (c)        9,825        9,954 
   Tranche C, term loan 7.8392% 1/31/14 (c)        9,825        9,954 
Innophos, Inc. Tranche B, term loan 7.2272% 8/13/10 (c)        3,788        3,826 
ISP Chemco, Inc. Tranche B, term loan 6.5% 2/16/13 (c)        8,000        8,040 
Mosaic Co. Tranche B, term loan 6.1934% 2/21/12 (c)        8,705        8,748 
Nalco Co. Tranche B, term loan 6.6451% 11/4/10 (c) .        18,365        18,549 
Rockwood Specialties Group, Inc. Tranche E, term loan                 
   7.1256% 7/30/12 (c)        14,553        14,699 
Solutia, Inc. Tranche B, term loan 8.33% 3/31/07 (c)        6,690        6,749 
                176,483 
Consumer Products – 1.2%                 
ACCO Brands Corp. Tranche B, term loan 6.6744%                 
   8/17/12 (c)        1,963        1,972 
American Achievement Corp. Tranche B, term loan                 
   7.3435% 3/25/11 (c)        2,413        2,449 
Central Garden & Pet Co. Tranche B, term loan 6.5217%                 
   9/12/12 (c)        5,000        5,025 
Jarden Corp.:                 
   term loan 6.99% 1/24/12 (c)        6,257        6,312 
   Tranche B2, term loan 6.74% 1/24/12 (c)        3,274        3,295 
Jostens IH Corp. Tranche C, term loan 7.3181%                 
   10/4/11 (c)        13,843        14,016 
NPI Merger Corp. term loan 7.0225% 4/21/13 (c)        5,800        5,851 
Revlon Consumer Products Corp. term loan 10.8514%                 
   7/9/10 (c)        6,750        6,927 

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

11 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
       Amount (000s)    (000s) 
Consumer Products – continued                 
Sealy Mattress Co. Tranche D, term loan 6.6028%                 
   4/6/12 (c)        $ 6,681        $ 6,739 
Weight Watchers International, Inc.:                 
   Tranche B, term loan 6.6461% 3/31/10 (c)        1,205        1,217 
   Tranche C, term loan 6.5769% 3/31/10 (c)        1,970        1,985 
                55,788 
Containers – 1.6%                 
Berry Plastics Corp. term loan 6.84% 12/2/11 (c)        2,228        2,242 
BWAY Corp. Tranche B term loan 6.8125% 6/30/11 (c)        4,628        4,675 
Covalence Specialty Materials Corp. Tranche B, term                 
   loan 6.6875% 2/16/13 (c)        6,800        6,860 
Crown Holdings, Inc. Tranche B, term loan 6.44%                 
   11/15/12 (c)        4,320        4,336 
Graham Packaging Holdings Co.:                 
   Tranche B, term loan 7.375% 10/4/11 (c)        2,670        2,693 
   Tranche B1, term loan 7.1079% 10/4/11 (c)        16,836        16,983 
Intertape Polymer, Inc. Tranche B, term loan 7.1575%                 
   7/28/11 (c)        6,893        6,961 
Owens-Illinois Group, Inc.:                 
   Tranche A1, term loan 6.61% 4/1/07 (c)        7,761        7,752 
   Tranche B1, term loan 6.71% 4/1/08 (c)        5,631        5,624 
Owens-Illinois, Inc. Tranche C1, term loan 6.78%                 
   4/1/08 (c)        7,360        7,379 
Solo Cup Co. Tranche B1, term loan 7.5316%                 
   2/27/11 (c)        7,333        7,415 
                72,920 
Diversified Financial Services – 1.4%                 
Ameritrade Holding Corp. Tranche B, term loan 6.49%                 
   1/23/13 (c)        20,000        20,050 
AWAS Aviation Acquisitions Ltd. Tranche 1, term loan                 
   6.75% 3/15/13 (c)        23,000        22,770 
Global Cash Access LLC/Global Cash Access Finance                 
   Corp. Tranche B, term loan 6.75% 3/10/10 (c)        5,694        5,744 
LPL Holdings, Inc. Tranche B, term loan 8.1962%                 
   6/28/13 (c)        10,973        11,110 
Newkirk Master LP Tranche B, term loan 7.3502%                 
   8/11/08 (c)        4,728        4,757 
                64,431 
Diversified Media – 0.7%                 
Adams Outdoor Advertising Ltd. term loan 7.0876%                 
   10/18/12 (c)        2,908        2,948 
LBI Media, Inc. Tranche B, term loan 6.7631% 3/31/12 (c)        2,300        2,306 

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

Semiannual Report

12

Floating Rate Loans (d) continued                 
        Principal   Value (Note 1) 
       Amount (000s)    (000s) 
Diversified Media – continued                 
NextMedia Operating, Inc. Tranche 1, term loan                 
   6.8816% 11/18/12 (c)        $ 4,358        $ 4,402 
Quebecor Media, Inc. Tranche B, term loan 7.0683%                 
   1/17/13 (c)        4,988        5,050 
R.H. Donnelley Corp.:                 
   Tranche A4, term loan 6.2738% 12/31/09 (c)        1,111        1,111 
   Tranche D1, term loan 6.437% 6/30/11 (c)        9,965        9,965 
Thomson Media, Inc. Tranche B1, term loan 7.21%                 
   11/8/11 (c)        3,411        3,453 
                29,235 
Electric Utilities – 4.3%                 
AES Corp. term loan 6.22% 8/10/11 (c)        5,429        5,469 
Allegheny Energy Supply Co. LLC term loan 6.4138%                 
   3/8/11 (c)        29,049        29,049 
Calpine Generating Co. LLC Tranche 1, term loan                 
   8.5756% 4/1/09 (c)        16,350        16,963 
Dynegy Holdings, Inc. term loan 6.71% 4/19/12 (c)        10,000        10,038 
LSP Gen Finance Co. LLC Tranche B1, term loan 8.5%                 
   4/13/13 (c)(e)        8,650        8,693 
Midwest Generation LLC term loan 6.6971%                 
   4/27/11 (c)        903        908 
Mirant North America LLC/Mirant North America                 
   Finance Corp. term loan 6.5988% 1/3/13 (c)        15,970        16,090 
NRG Energy, Inc.:                 
   Credit-Linked Deposit 6.9794% 2/1/13 (c)        20,566        20,746 
   term loan 6.82% 2/1/13 (c)        81,434        82,146 
Primary Energy Finance LLC term loan 6.9794%                 
   8/24/12 (c)        1,990        1,995 
                192,097 
Energy – 4.1%                 
ATP Oil & Gas Corp. term loan 10.4707% 4/14/10 (c)        1,980        2,030 
Boart Longyear Holdings, Inc. Tranche 1, term loan                 
   7.98% 7/28/12 (c)        8,955        9,067 
Buckeye Pipe Line Co. term loan 7.3104% 12/17/11 (c)        2,817        2,831 
Citgo Petroleum Corp. Tranche B, term loan 6.2125%                 
   11/15/12 (c)        13,117        13,134 
Coffeyville Resources LLC:                 
   Credit-Linked Deposit 7.3% 7/8/11 (c)        4,800        4,848 
   Tranche B1, term loan 7.5034% 7/8/12 (c)        7,146        7,218 
Dresser-Rand Group, Inc. Tranche B, term loan 6.9235%                 
   10/29/11 (c)        4,095        4,151 

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

13 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Energy – continued                 
El Paso Corp.:                 
   Credit-Linked Deposit 7.52% 11/22/09 (c)        $ 32,438        $ 32,843 
   term loan 7.75% 11/22/09 (c)        42,884        43,420 
EPCO Holdings, Inc. Tranche C, term loan 7.0238%                 
   8/16/10 (c)        12,870        13,031 
Lyondell-Citgo Refining LP term loan 6.9794%                 
   5/21/07 (c)        7,860        7,899 
MEG Energy Corp.:                 
   term loan 7% 4/3/13 (c)        2,500        2,522 
   Tranche DD, term loan 4/3/13 (e)        2,500        2,503 
Petroleum Geo-Services ASA term loan 7.48%                 
   12/16/12 (c)        6,983        7,017 
Targa Resources, Inc./Targa Resources Finance Corp.:                 
   Credit-Linked Deposit 7.1044% 10/31/12 (c)        3,290        3,323 
   term loan 7.2565% 10/31/12 (c)        13,641        13,778 
Universal Compression, Inc. term loan 6.48%                 
   2/15/12 (c)        9,253        9,334 
Vulcan/Plains Resources, Inc. term loan 6.25%                 
   8/12/11 (c)        2,966        2,985 
                181,934 
Entertainment/Film 2.0%                 
Alliance Atlantis Communications, Inc. Tranche C, term                 
   loan 6.4794% 12/19/11 (c)        3,960        3,985 
AMC Entertainment, Inc. term loan 7.1144%                 
   1/26/13 (c)        12,479        12,572 
Cinemark USA, Inc. Tranche C, term loan 6.53%                 
   3/31/11 (c)        10,731        10,825 
MGM Holdings II, Inc. Tranche B, term loan 7.2294%                 
   4/8/12 (c)        34,000        34,298 
Regal Cinemas Corp. term loan 6.4794% 11/10/10 (c)        27,476        27,717 
                89,397 
Environmental – 1.3%                 
Allied Waste Industries, Inc.:                 
   term loan 6.7593% 1/15/12 (c)        38,779        38,876 
   Tranche A, Credit-Linked Deposit 6.7734%                 
      1/15/12 (c)        15,056        15,093 
Waste Services, Inc. Tranche C, term loan 8.1733%                 
   3/31/11 (c)        1,980        2,012 
                55,981 
Food and Drug Retail – 0.7%                 
Jean Coutu Group (PJC) USA, Inc. Tranche B, term loan                 
   7.6247% 7/30/11 (c)        31,463        31,778 

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

Semiannual Report

14

Floating Rate Loans (d) continued                     
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Food/Beverage/Tobacco – 1.6%                     
Bolthouse Farms, Inc. Tranche 1, term loan 7.37%                     
   12/16/12 (c)            $ 3,990        $ 4,050 
Bumble Bee Foods LLC Tranche B, term loan 6.9176%                     
   4/20/12 (c)            3,000        3,034 
Commonwealth Brands, Inc. term loan 7% 12/22/12 (c)            7,913        8,002 
Constellation Brands, Inc. Tranche B, term loan 6.3613%                     
   11/30/11 (c)            33,109        33,109 
Del Monte Corp. Tranche B, term loan 6.5% 2/8/12 (c)             1,782        1,789 
Doane Pet Care Co. term loan 7.1747% 10/24/12 (c)            6,776        6,784 
Dr Pepper/Seven Up Bottling Group, Inc. Tranche B,                     
   term loan 6.9294% 12/19/10 (c)            8,755        8,853 
Michael Foods, Inc. Tranche B, term loan 6.698%                     
   11/21/10 (c)            4,548        4,594 
Reddy Ice Group, Inc. term loan 6.7947% 8/12/12 (c)            2,000        2,015 
                    72,230 
Gaming – 3.0%                     
Alliance Gaming Corp. term loan 8.18% 9/5/09 (c)            3,693        3,730 
Ameristar Casinos, Inc. term loan 6.5% 11/10/12 (c)            4,030        4,065 
BLB Worldwide Holdings, Inc. Tranche 1, term loan                     
   6.8177% 6/30/12 (c)            7,950        8,049 
Boyd Gaming Corp. term loan 6.5445% 6/30/11 (c)            13,279        13,395 
Choctaw Resort Development Enterprise term loan 6.94%                     
   11/4/11 (c)            2,233        2,253 
Green Valley Ranch Gaming LLC term loan 6.9794%                     
   12/17/11 (c)            3,688        3,721 
Herbst Gaming, Inc. term loan 7.1087% 1/7/11 (c)            3,564        3,595 
Isle Capri Black Hawk LLC / Isle Capri Black Hawk                     
   Capital term loan 6.8356% 10/24/11 (c)            498        500 
MGM MIRAGE Tranche A, term loan 6.2838%                     
   4/25/10 (c)            4,000        4,010 
Motor City Casino Tranche B, term loan 6.924%                     
   7/29/12 (c)            3,056        3,063 
Penn National Gaming, Inc. Tranche B, term loan                     
   6.6617% 7/31/12 (c)            8,955        9,056 
Pinnacle Entertainment, Inc. Tranche B, term loan 6.93%                     
   12/14/11 (c)            5,350        5,377 
Trump Entertainment Resorts Holdings LP Tranche B, term                     
   loan 7.17% 5/20/12 (c)(e)            14,540        14,704 
Venetian Casino Resort LLC Tranche B, term loan 6.73%                     
   6/15/11 (c)            24,200        24,200 
Venetian Macau Ltd. Tranche B, term loan:                     
   4/7/12 (e)            7,000        7,000 
   7.83% 4/7/13 (c)            14,000        14,140 

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

15 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)   (000s) 
Gaming – continued                 
Wynn Las Vegas LLC term loan 7.085% 12/14/11 (c)        $ 12,650        $ 12,777 
                133,635 
Healthcare 7.5%                 
Accellent, Inc. term loan 6.8% 11/22/12 (c)        6,065        6,088 
AmeriPath, Inc. Tranche B, term loan 6.83%                 
   10/31/12 (c)        3,000        3,030 
AMR HoldCo, Inc./EmCare HoldCo, Inc. term loan                 
   6.8374% 2/7/12 (c)        7,089        7,178 
Angiotech Pharmaceuticals, Inc. term loan 6.45%                 
   3/23/13 (c)        4,000        4,010 
Community Health Systems, Inc. term loan 6.56%                 
   8/19/11 (c)        38,026        38,264 
Concentra Operating Corp. term loan 6.69%                 
   9/30/11 (c)        7,478        7,534 
CONMED Corp. Tranche B, term loan 6.68%                 
   4/12/13 (c)        3,000        3,030 
CRC Health Group, Inc. term loan 7.2294% 2/6/13 (c) .        4,000        4,045 
DaVita, Inc. Tranche B, term loan 6.9456% 10/5/12 (c)        50,056        50,369 
DJ Orthopedics, Inc. Tranche B, term loan 6.5625%                 
   4/7/13 (c)        2,650        2,660 
Fresenius Medical Care Holdings, Inc. Tranche B, term                 
   loan 6.5086% 3/23/12 (c)        36,000        35,955 
Gentiva Health Services, Inc. term loan 7.2688%                 
   2/28/12 (c)        1,989        2,004 
HCA, Inc. term loan 6% 11/9/09 (c)        27,800        27,696 
HealthSouth Corp. term loan 8.15% 3/10/13 (c)        36,000        36,360 
Iasis Healthcare LLC Tranche B, term loan 7.2637%                 
   6/22/11 (c)        14,249        14,427 
Kinetic Concepts, Inc. Tranche B2, term loan 6.73%                 
   8/11/10 (c)        4,372        4,426 
LifePoint Hospitals, Inc. Tranche B, term loan 6.185%                 
   4/15/12 (c)        22,413        22,525 
Multiplan, Inc. term loan 6.86% 4/12/13 (c)        5,960        6,020 
Mylan Laboratories, Inc. Tranche B, term loan 6.5%                 
   6/30/10 (c)        3,089        3,116 
National Renal Institutes, Inc. term loan 9% 3/31/13 (c)        3,460        3,486 
Psychiatric Solutions, Inc. term loan 6.36% 7/1/12 (c)        7,323        7,378 
Quintiles Transnational Corp. Tranche B, term loan                 
   6.82% 3/31/13 (c)        4,000        4,025 
Renal Advantage, Inc. Tranche B, term loan 7.4246%                 
   9/30/12 (c)        5,283        5,349 
Team Health, Inc. term loan 7.27% 11/22/12 (c)        16,459        16,541 

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

Semiannual Report

16

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
        Amount (000s)    (000s) 
Healthcare continued                 
U.S. Oncology, Inc. Tranche B, term loan 6.9447%                 
   8/20/11 (c)        $ 8,529        $ 8,615 
Vanguard Health Holding Co. I term loan 6.95%                 
   9/23/11 (c)        5,777        5,849 
Vicar Operating, Inc. term loan 6.5% 5/16/11 (c)        2,498        2,517 
VWR Corp. Tranche B, term loan 7.34% 4/7/11 (c)        5,298        5,371 
                337,868 
Homebuilding/Real Estate – 2.3%                 
Apartment Investment & Management Co. term loan                 
   6.36% 3/22/11 (c)        2,100        2,111 
Blount, Inc. Tranche B1, term loan 6.658% 8/9/10 (c)        1,657        1,673 
Capital Automotive (REIT) Tranche B, term loan 6.58%                 
   12/16/10 (c)        8,000        8,050 
CB Richard Ellis Services, Inc. term loan 6.7584%                 
   3/31/10 (c)        8,077        8,157 
General Growth Properties, Inc. Tranche A1, term loan                 
   6.2% 2/24/10 (c)        34,000        33,873 
Lion Gables Realty LP term loan 6.59% 9/30/06 (c)        12,375        12,391 
Maguire Properties, Inc. Tranche B, term loan 6.5988%                 
   3/15/10 (c)        1,622        1,626 
The Rouse Co. term loan 6.25% 8/24/06 (c)        15,000        15,000 
Trizec Properties, Inc. term loan 6.3144% 4/19/07 (c) .        21,000        20,974 
                103,855 
Hotels 0.3%                 
Hilton Hotels Corp. Tranche B, term loan 6.2472%                 
   2/9/13 (c)        11,700        11,744 
Insurance – 0.1%                 
Conseco, Inc. term loan 6.6513% 6/22/10 (c)        2,134        2,153 
Leisure – 1.3%                 
Century Theaters, Inc. Tranche B, term loan 6.695%                 
   3/1/13 (c)        5,640        5,696 
Easton Bell Sports, Inc. Tranche B, term loan 6.8037%                 
   3/16/12 (c)        2,630        2,656 
London Arena & Waterfront Finance LLC Tranche A,                 
   term loan 8.38% 3/8/12 (c)        3,000        3,023 
Mega Bloks, Inc. Tranche B, term loan 6.9113%                 
   7/26/12 (c)        3,960        3,985 
Six Flags Theme Park, Inc. Tranche B1, term loan                 
   7.472% 6/30/09 (c)        24,144        24,295 

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

17 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Leisure – continued                 
Universal City Development Partners Ltd. term loan                 
   6.9415% 6/9/11 (c)        $ 17,728        $ 17,950 
Yankees Holdings LP term loan 7.3244% 6/25/07 (c)        943        943 
                58,548 
Metals/Mining – 1.5%                 
Alpha National Resources LLC/Alpha National                 
   Resources Capital Corp. Tranche B, term loan 6.32%                 
   10/26/12 (c)        7,980        8,010 
Compass Minerals Tranche B, term loan 6.4844%                 
   12/22/12 (c)        7,636        7,674 
Foundation Pennsylvania Coal Co. Tranche B, term loan                 
   6.6205% 7/30/11 (c)        17,605        17,847 
Murray Energy Corp. Tranche 1, term loan 8%                 
   1/28/10 (c)        2,970        3,000 
Novelis, Inc. term loan 6.44% 1/7/12 (c)        14,561        14,689 
Peabody Energy Corp. term loan 5.6526% 3/21/10 (c)        14,667        14,648 
Stillwater Mining Co. term loan 7.25% 7/30/10 (c)        2,146        2,172 
                68,040 
Paper 4.4%                 
Appleton Papers, Inc. term loan 6.9986% 6/11/10 (c) .        3,588        3,624 
Boise Cascade Holdings LLC Tranche D, term loan                 
   6.7518% 10/26/11 (c)        22,329        22,580 
Buckeye Technologies, Inc. term loan 7.006% 3/15/08 (c)        3,201        3,209 
Georgia-Pacific Corp.:                 
   Tranche 2, term loan 7.9393% 12/23/13 (c)        23,000        23,460 
   Tranche B, term loan 6.8847% 12/23/12 (c)        74,813        75,187 
Graphic Packaging International, Inc. Tranche C, term                 
   loan 7.4368% 8/8/10 (c)        15,413        15,606 
NewPage Corp. term loan 7.96% 5/2/11 (c)        5,136        5,162 
Smurfit-Stone Container Enterprises, Inc.:                 
   Credit-Linked Deposit 7.01% 11/1/10 (c)        4,164        4,206 
   Tranche B, term loan 7.193% 11/1/11 (c)        26,522        26,788 
   Tranche C, term loan 7.125% 11/1/11 (c)        7,840        7,919 
   Tranche C1, term loan 7.125% 11/1/11 (c)        2,823        2,859 
Xerium Technologies, Inc. Tranche B, term loan 7.2294%                 
   5/18/12 (c)        4,891        4,885 
                195,485 
Publishing/Printing – 1.9%                 
Caribe Information Investments, Inc. term loan 7.4036%                 
   3/31/13 (c)        3,000        3,030 
CBD Media, Inc. Tranche D, term loan 7.41%                 
   12/31/09 (c)        5,610        5,695 

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

Semiannual Report

18

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Publishing/Printing – continued                 
Dex Media East LLC/Dex Media East Finance Co.:                 
   Tranche A, term loan 6.1202% 11/8/08 (c)        $ 2,647        $ 2,647 
   Tranche B, term loan 6.5899% 5/8/09 (c)        7,844        7,844 
Dex Media West LLC/Dex Media West Finance Co.:                 
   Tranche A, term loan 6.1634% 9/9/09 (c)        2,364        2,364 
   Tranche B, term loan 6.6137% 3/9/10 (c)        15,580        15,580 
   Tranche B1, term loan 6.2968% 3/10/10 (c)        15,727        15,727 
Herald Media, Inc. Tranche 1, term loan 7.67%                 
   7/22/11 (c)        2,455        2,455 
Liberty Group Operating, Inc. Tranche B, term loan                 
   7.25% 2/28/12 (c)        1,601        1,615 
R.H. Donnelley Corp. Tranche D2, term loan 6.6906%                 
   6/30/11 (c)        27,916        27,916 
Sun Media Corp. Canada Tranche B, term loan                 
   7.1256% 2/7/09 (c)        1,718        1,730 
                86,603 
Railroad 0.1%                 
RailAmerica, Inc. term loan 7.0625% 9/29/11 (c)        5,543        5,612 
Restaurants 1.6%                 
Arby’s Restaurant Group, Inc. Tranche B, term loan                 
   7.1812% 7/25/12 (c)        4,963        5,025 
Burger King Corp. Tranche B1, term loan 6.5% 6/30/12 (c)        19,483        19,483 
CKE Restaurants, Inc. term loan 6.9375% 5/1/10 (c)        1,285        1,294 
Del Taco Tranche B, term loan 7.0719% 3/29/13 (c)        5,000        5,050 
Domino’s, Inc. term loan 6.4557% 6/25/10 (c)        11,404        11,489 
Dunkin Brands Acquisition, Inc. term loan 7.3256%                 
   3/1/13 (c)        15,430        15,430 
El Pollo Loco, Inc. Tranche B, term loan 7.56% 11/18/11 (c)        1,995        2,025 
Jack in the Box, Inc. term loan 6.5193% 1/8/11 (c)        3,516        3,547 
Landry’s Seafood Restaurants, Inc. term loan 6.8597%                 
   12/28/10 (c)        6,024        6,076 
                69,419 
Services – 1.8%                 
Audatex North America, Inc. Tranche 1, term loan 7.3%                 
   4/13/13 (c)        2,000        2,008 
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.                 
   term loan 6.35% 4/19/12 (c)        4,000        4,000 
CACI International, Inc. Tranche B, term loan 6.2491%                 
   4/30/11 (c)        4,949        4,987 
Coinmach Corp. Tranche B1, term loan 7.9328%                 
   12/19/12 (c)        5,994        6,084 
Coinstar, Inc. term loan 7.0298% 7/1/11 (c)        5,575        5,659 

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

19 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
        Amount (000s)     (000s) 
Services – continued                 
Hertz Corp.:                 
   Credit-Linked Deposit 7.18% 12/21/12 (c)        $ 1,444        $ 1,453 
   Tranche B, term loan 7.0171% 12/21/12 (c)        9,838        9,899 
   Tranche DD, term loan 12/21/12 (e)        1,693        1,699 
IAP Worldwide Services, Inc. Tranche 1, term loan 8%                 
   12/27/12 (c)        2,993        3,022 
Iron Mountain, Inc.:                 
   term loan 6.656% 4/2/11 (c)        4,938        4,975 
   Tranche C, term loan 6.5625% 4/2/11 (c)        11,196        11,280 
JohnsonDiversey, Inc.:                 
   Tranche B, term loan 7.2068% 12/16/11 (c)        4,055        4,111 
   Tranche DD, term loan 12/16/10 (e)        509        511 
Rural/Metro Corp.:                 
   Credit-Linked Deposit 7.3488% 3/4/11 (c)        408        410 
   term loan 7.1029% 3/4/11 (c)        1,304        1,313 
The Geo Group, Inc. term loan 7% 9/14/11 (c)        1,300        1,306 
United Rentals, Inc.:                 
   term loan 7% 2/14/11 (c)        8,778        8,844 
   Tranche B, Credit-Linked Deposit 6.75% 2/14/11 (c) .        1,598        1,610 
US Investigations Services, Inc.:                 
   term loan 7.43% 10/14/12 (c)        5,920        6,001 
   Tranche C, term loan 7.43% 10/14/12 (c)        1,978        2,005 
                81,177 
Shipping – 0.2%                 
Baker Tanks, Inc.:                 
   term loan 11/23/12 (e)        107        107 
   Tranche B, term loan 7.3229% 11/23/12 (c)        888        899 
Horizon Lines LLC Tranche C, term loan 7.17%                 
   7/7/11 (c)        3,783        3,825 
Ozburn Hessey Holding Co. LLC term loan 7.2906%                 
   8/9/12 (c)        2,513        2,539 
                7,370 
Super Retail – 0.9%                 
Alimentation Couche-Tard, Inc. term loan 6.7545%                 
   12/17/10 (c)        1,560        1,576 
Buhrmann US, Inc. Tranche D1, term loan 6.555%                 
   12/31/10 (c)        5,590        5,639 
Neiman Marcus Group, Inc. term loan 7.34%                 
   4/6/13 (c)        15,190        15,342 

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

Semiannual Report

20

Floating Rate Loans (d) continued                     
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Super Retail – continued                     
The Pep Boys – Manny, Moe & Jack term loan 7.89%                     
   1/27/11 (c)            $ 2,360        $ 2,398 
Toys ’R’ US, Inc. term loan 7.8256% 12/9/08 (c)            17,000        17,043 
                    41,998 
Technology – 4.3%                     
Affiliated Computer Services, Inc. term loan 6.4294%                     
   3/20/13 (c)            15,327        15,422 
AMI Semiconductor, Inc. term loan 6.5% 4/1/12 (c)            4,955        4,986 
Anteon International Corp. term loan 6.5788%                     
   12/31/10 (c)            6,858        6,927 
Eastman Kodak Co. term loan 7.2405% 10/18/12 (c)            7,136        7,207 
Fairchild Semiconductor Corp. Tranche B3, term loan                     
   6.625% 12/31/10 (c)            6,893        6,970 
Fidelity National Information Solutions, Inc.:                     
   Tranche A, term loan 6.3519% 3/9/11 (c)            1,985        1,987 
   Tranche B, term loan 6.6019% 3/9/13 (c)            33,784        33,953 
Global Imaging Systems, Inc. term loan 6.3845%                     
   5/10/10 (c)            2,702        2,715 
Infor Global Solutions AG Tranche 1, term loan 7.8%                     
   4/18/11 (c)            5,000        5,000 
K & F Industries, Inc. term loan 7.169% 11/18/12 (c)            7,026        7,123 
ON Semiconductor Corp. Tranche H, term loan 7.23%                     
   12/15/11 (c)            5,913        5,972 
Sensata Technologies BV term loan 6.86% 4/27/13 (c)    .        9,265        9,300 
SERENA Software, Inc. term loan 7.41% 3/10/13 (c)            6,000        6,060 
SSA Global Technologies, Inc. term loan 6.97%                     
   9/22/11 (c)            3,970        4,000 
SunGard Data Systems, Inc. Tranche B, term loan                     
   7.215% 2/10/13 (c)            69,453        70,321 
Verifone, Inc. Tranche B, term loan 6.8756%                     
   6/30/11 (c)            5,858        5,888 
                    193,831 
Telecommunications – 4.3%                     
Alaska Communications Systems Holding term loan                     
   6.7294% 2/1/12 (c)            5,000        5,050 
Centennial Cellular Operating Co. LLC term loan 7.214%                     
   2/9/11 (c)            15,635        15,830 
Cincinnati Bell, Inc. Tranche B, term loan 6.3587%                     
   8/31/12 (c)            12,935        13,000 
Consolidated Communications, Inc. Tranche D term loan                     
   6.6752% 10/14/11 (c)            2,000        2,013 
Intelsat Ltd. term loan 6.75% 7/28/11 (c)            26,374        26,605 

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

21 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Telecommunications – continued                 
Iowa Telecommunication Services, Inc. Tranche B, term                 
   loan 6.6888% 11/23/11 (c)        $ 4,000        $ 4,035 
Level 3 Communications, Inc. term loan 11.8225%                 
   12/2/11 (c)        10,000        10,500 
Madison River Capital LLC/Madison River Finance Corp.                 
   Tranche B1, term loan 7.26% 7/29/12 (c)        5,000        5,069 
Nextel Partners Operating Corp. Tranche D, term loan                 
   6.32% 5/31/12 (c)        16,364        16,364 
NTELOS, Inc. Tranche B1, term loan 7.5% 8/24/11 (c) .        6,913        7,008 
Qwest Corp.:                 
   Tranche A, term loan 9.6513% 6/30/07 (c)        36,400        37,196 
   Tranche B, term loan 6.95% 6/30/10 (c)        11,000        11,110 
Time Warner Telecom Holdings, Inc. Tranche B, term                 
   loan 6.6826% 11/30/10 (c)        4,703        4,762 
Triton PCS, Inc. term loan 8.08% 11/18/09 (c)        7,848        7,897 
Valor Telecommunications Enterprises LLC/Valor Finance                 
   Corp. Tranche B, term loan 6.7531% 2/14/12 (c)        9,135        9,146 
Wind Telecomunicazioni Spa:                 
   Tranche B, term loan 7.7819% 9/21/13 (c)        7,500        7,575 
   Tranche C, term loan 8.2819% 9/21/14 (c)        7,500        7,575 
                190,735 
Textiles & Apparel – 0.3%                 
Warnaco Group, Inc. term loan 6.4069% 1/31/13 (c) .        7,000        7,000 
William Carter Co. term loan 6.7045% 6/29/12 (c)        8,399        8,441 
                15,441 
 
TOTAL FLOATING RATE LOANS                 
 (Cost $3,401,701)            3,422,087 

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

Semiannual Report

22

Nonconvertible Bonds 12.6%                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Air Transportation – 0.1%                 
Delta Air Lines, Inc. pass thru trust certificates 7.57%                 
   11/18/10        $ 6,000        $ 6,000 
Auto Parts Distribution – 0.0%                 
Ford Motor Credit Co. 5.7948% 9/28/07 (c)        2,000        1,915 
Automotive 0.7%                 
Ford Motor Credit Co.:                 
   5.7% 11/16/06 (c)        22,000        21,893 
   5.88% 3/21/07 (c)        4,000        3,930 
General Motors Acceptance Corp.:                 
   5.645% 5/18/06 (c)        2,000        2,000 
   6.125% 9/15/06        5,000        4,961 
                32,784 
Broadcasting – 0.2%                 
Radio One, Inc. 8.875% 7/1/11        7,000        7,324 
Cable TV 2.5%                 
Cablevision Systems Corp. 9.62% 4/1/09 (c)        5,000        5,300 
CSC Holdings, Inc.:                 
   7.25% 7/15/08        2,000        2,020 
   7.875% 12/15/07        13,000        13,277 
   10.5% 5/15/16        2,000        2,140 
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375%                 
   3/15/13        1,963        2,100 
EchoStar DBS Corp.:                 
   5.75% 10/1/08        4,000        3,940 
   7.93% 10/1/08 (c)        79,285        80,871 
                109,648 
Chemicals – 0.1%                 
Equistar Chemicals LP/Equistar Funding Corp. 10.625%                 
   5/1/11        2,000        2,180 
NOVA Chemicals Corp. 7.5613% 11/15/13 (c)        3,000        3,008 
                5,188 
Containers – 0.1%                 
Owens-Brockway Glass Container, Inc. 8.875%                 
   2/15/09        3,000        3,105 
Diversified Media – 0.6%                 
Liberty Media Corp. 6.41% 9/17/06 (c)        26,000        26,092 
Electric Utilities – 0.8%                 
AES Corp. 8.75% 6/15/08        3,000        3,131 
CMS Energy Corp. 9.875% 10/15/07        12,000        12,690 
NRG Energy, Inc. 7.375% 2/1/16        9,000        9,056 

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

23 Semiannual Report

Investments continued                 
 
 
 Nonconvertible Bonds continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Electric Utilities – continued                 
TECO Energy, Inc.:                 
   6.125% 5/1/07        $ 4,000        $ 4,000 
   6.68% 5/1/10 (c)        5,000        5,125 
                34,002 
Energy – 1.7%                 
El Paso Corp.:                 
   6.5% 5/15/06 (b)        6,000        6,000 
   7.5% 8/15/06 (b)        2,000        2,009 
   7.625% 8/16/07        8,000        8,100 
El Paso Energy Corp. 6.95% 12/15/07        3,350        3,371 
Parker Drilling Co. 9.57% 9/1/10 (c)        7,000        7,210 
Pemex Project Funding Master Trust 6.21%                 
   6/15/10 (b)(c)        18,000        18,432 
Premcor Refining Group, Inc.:                 
   9.25% 2/1/10        2,000        2,120 
   9.5% 2/1/13        2,000        2,190 
Sonat, Inc. 7.625% 7/15/11        3,000        3,060 
Southern Natural Gas Co. 8.875% 3/15/10        840        890 
Williams Companies, Inc. 6.99% 10/1/10 (b)(c)        17,000        17,383 
Williams Companies, Inc. Credit Linked Certificate Trust                 
   IV 7.94% 5/1/09 (b)(c)        7,000        7,158 
                77,923 
Entertainment/Film 0.2%                 
AMC Entertainment, Inc. 8.9988% 8/15/10 (c)        9,000        9,270 
Food and Drug Retail – 0.2%                 
Rite Aid Corp. 12.5% 9/15/06        8,000        8,190 
Food/Beverage/Tobacco – 0.0%                 
Canandaigua Brands, Inc. 8.625% 8/1/06        1,000        1,008 
Gaming – 0.2%                 
Mandalay Resort Group:                 
   9.5% 8/1/08        2,000        2,140 
   10.25% 8/1/07        2,000        2,098 
Mirage Resorts, Inc. 6.75% 8/1/07        3,000        3,030 
                7,268 
Healthcare 0.0%                 
Service Corp. International (SCI) 6.5% 3/15/08        2,000        1,990 
Leisure – 0.1%                 
Universal City Florida Holding Co. I/II 9.43% 5/1/10 (c)        5,140        5,294 

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

Semiannual Report

24

Nonconvertible Bonds continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Metals/Mining – 0.5%                 
Freeport-McMoRan Copper & Gold, Inc.:                 
   6.875% 2/1/14        $ 8,000        $ 7,950 
   10.125% 2/1/10        13,470        14,463 
                22,413 
Paper 0.1%                 
Boise Cascade LLC/Boise Cascade Finance Corp.                 
   7.9433% 10/15/12 (c)        2,190        2,212 
Publishing/Printing – 0.2%                 
Dex Media East LLC/Dex Media East Finance Co.                 
   9.875% 11/15/09        6,000        6,375 
R.H. Donnelley Finance Corp. III 8.875% 1/15/16 (b)        4,000        4,120 
                10,495 
Services – 0.0%                 
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.                 
   7.576% 5/15/14 (b)(c)        1,650        1,695 
Shipping – 0.1%                 
OMI Corp. 7.625% 12/1/13        2,000        2,030 
Ship Finance International Ltd. 8.5% 12/15/13        3,620        3,403 
                5,433 
Super Retail – 0.3%                 
GSC Holdings Corp./Gamestop, Inc. 8.865%                 
   10/1/11 (b)(c)        14,000        14,420 
Technology – 0.6%                 
Freescale Semiconductor, Inc. 7.8183% 7/15/09 (c)        24,000        24,540 
Telecommunications – 3.2%                 
AirGate PCS, Inc. 8.8269% 10/15/11 (c)        7,000        7,193 
America Movil SA de CV 5.735% 4/27/07 (c)        1,000        1,003 
Dobson Cellular Systems, Inc. 9.43% 11/1/11 (c)        8,000        8,320 
Intelsat Subsidiary Holding Co. Ltd. 9.6094%                 
   1/15/12 (c)        7,000        7,131 
Qwest Communications International, Inc. 8.2488%                 
   2/15/09 (c)        5,000        5,100 
Qwest Corp. 8.16% 6/15/13 (c)        47,150        51,394 
Rogers Communications, Inc.:                 
   6.375% 3/1/14        3,000        2,925 
   8.035% 12/15/10 (c)        38,450        39,604 
Rural Cellular Corp.:                 
   8.25% 3/15/12        6,000        6,300 

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

25 Semiannual Report

Investments continued                 
 
 
 Nonconvertible Bonds continued             
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Telecommunications – continued                 
Rural Cellular Corp.: – continued                 
   9.41% 3/15/10 (c)                    $ 13,000    $ 13,390 
Time Warner Telecom Holdings, Inc. 8.7488%                 
   2/15/11 (c)            1,000    1,020 
                143,380 
Textiles & Apparel – 0.1%                 
Levi Strauss & Co. 9.74% 4/1/12 (c)            2,000    2,083 
TOTAL NONCONVERTIBLE BONDS             
 (Cost $556,553)                563,672 
 U.S. Treasury Obligations  0.4%                 
 
U.S. Treasury Notes 3.375% 2/28/07                 
   (Cost $16,964)            17,000    16,783 
 Money Market Funds 10.6%                 
            Shares     
Fidelity Cash Central Fund, 4.8% (a)        311,278,091    311,278 
Fidelity Money Market Central Fund, 4.96% (a)        162,842,923    162,843 
TOTAL MONEY MARKET FUNDS                 
 (Cost $474,121)                474,121 
 Cash Equivalents 0.5%                 
          Maturity       
          Amount (000s)     
Investments in repurchase agreements (Collateralized by                 
   U.S. Treasury Obligations, in a joint trading account at                 
   4.69%, dated 4/28/06 due 5/1/06)                 
   (Cost $22,696)        22,705    22,696 
TOTAL INVESTMENT PORTFOLIO  100.4%                 
 (Cost $4,472,035)                4,499,359 
 
NET OTHER ASSETS – (0.4)%                (17,033) 
NET ASSETS 100%                $ 4,482,326 
 
 
 
 
See accompanying notes which are an integral part of the financial statements.     
 
Semiannual Report    26             

Legend

(a) Affiliated fund that is 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.

(b) Security exempt from registration under

Rule 144A of the Securities Act of 1933.
These securities may be resold in
transactions exempt from registration,
normally to qualified institutional buyers.
At the period end, the value of these
securities amounted to $71,217,000 or
1.6% of net assets.

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

(d) Remaining maturities of floating rate

loans may be less than the stated
maturities shown as a result of
contractual or optional prepayments by
the borrower. Such prepayments cannot
be predicted with certainty.

(e) Position or a portion of the position

represents an unfunded loan
commitment. At period end, the total
principal amount and market value of
unfunded commitments totaled
$24,605,000 and $24,703,000,
respectively. The coupon rate will be
determined at time of settlement.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund      Income earned 
    (Amounts in thousands) 
Fidelity Cash Central Fund          $ 9,727 
Fidelity Money Market Central Fund        3,873 
Total           $ 13,600 

Income Tax Information

At October 31, 2005, the fund had a capital loss carryforward of approximately $3,375,000 of which $1,297,000 and $2,078,000 will expire on October 31, 2010 and 2011, respectively.

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

27 Semiannual Report

Financial Statements                 
 
 Statement of Assets and Liabilities                 
Amounts in thousands (except per share amounts)                April 30, 2006 
 
Assets                 
Investment in securities, at value (including repurchase                 
   agreements of $22,696) See accompanying                 
   schedule:                 
   Unaffiliated issuers (cost $3,997,914)        $ 4,025,238         
   Affiliated Central Funds (cost $474,121)        474,121         
Total Investments (cost $4,472,035)                $ 4,499,359 
Cash                2,933 
Receivable for investments sold                178,605 
Receivable for fund shares sold                14,632 
Interest receivable                33,439 
Prepaid expenses                12 
Other affiliated receivables                1 
   Total assets                4,728,981 
 
Liabilities                 
Payable for investments purchased        $ 227,351         
Payable for fund shares redeemed        11,550         
Distributions payable        4,041         
Accrued management fee        2,489         
Distribution fees payable        563         
Other affiliated payables        555         
Other payables and accrued expenses        106         
   Total liabilities                246,655 
 
Net Assets                $ 4,482,326 
Net Assets consist of:                 
Paid in capital                $ 4,452,029 
Undistributed net investment income                3,882 
Accumulated undistributed net realized gain (loss) on                 
   investments                (909) 
Net unrealized appreciation (depreciation) on                 
   investments                27,324 
Net Assets                $ 4,482,326 

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

Semiannual Report

28

Statement of Assets and Liabilities continued         
Amounts in thousands (except per share amounts)            April 30, 2006 
Calculation of Maximum Offering Price             
   Class A:             
   Net Asset Value and redemption price per share             
       ($304,171 ÷ 30,488 shares)            $ 9.98 
 
Maximum offering price per share (100/96.25 of $9.98)            $ 10.37 
 Class T:             
 Net Asset Value and redemption price per share             
       ($497,756 ÷ 49,940 shares)            $ 9.97 
 
Maximum offering price per share (100/97.25 of $9.97)            $ 10.25 
 Class B:             
 Net Asset Value and offering price per share             
       ($155,301 ÷ 15,582 shares)A            $ 9.97 
 
 Class C:             
 Net Asset Value and offering price per share             
       ($491,768 ÷ 49,299 shares)A            $ 9.98 
 
 Fidelity Floating Rate High Income Fund:             
 Net Asset Value, offering price and redemption price per             
       share ($2,743,397 ÷ 275,232 shares)            $ 9.97 
 
 Institutional Class:             
 Net Asset Value, offering price and redemption price per             
       share ($289,933 ÷ 29,100 shares)            $ 9.96 
 
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.

29 Semiannual Report

Financial Statements  continued         
 
 
 Statement of Operations             
Amounts in thousands        Six months ended April 30, 2006 
 
Investment Income             
Interest            $ 124,240 
Income from affiliated Central Funds            13,600 
   Total income            137,840 
 
Expenses             
Management fee                                             $ 14,644     
Transfer agent fees        2,626     
Distribution fees        3,510     
Accounting fees and expenses        676     
Independent trustees’ compensation        9     
Custodian fees and expenses        51     
Registration fees        153     
Audit        70     
Legal        29     
Interest        4     
Miscellaneous        45     
   Total expenses before reductions        21,817     
   Expense reductions        (50)    21,767 
 
Net investment income            116,073 
Realized and Unrealized Gain (Loss)             
Net realized gain (loss) on:             
   Investment securities:             
      Unaffiliated issuers            2,636 
Change in net unrealized appreciation (depreciation) on             
   investment securities            1,910 
Net gain (loss)            4,546 
Net increase (decrease) in net assets resulting             
   from operations            $ 120,619 

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

Semiannual Report

30

Statement of Changes in Net Assets                 
    Six months ended        Year ended 
        April 30,        October 31, 
Amounts in thousands        2006        2005 
Increase (Decrease) in Net Assets                 
Operations                 
   Net investment income        $ 116,073        $ 168,450 
   Net realized gain (loss)        2,636        2,418 
   Change in net unrealized appreciation (depreciation) .        1,910        (9,021) 
   Net increase (decrease) in net assets resulting                 
       from operations        120,619        161,847 
Distributions to shareholders from net investment income .        (113,803)        (166,193) 
Distributions to shareholders from net realized gain                (3,785) 
   Total distributions        (113,803)        (169,978) 
Share transactions - net increase (decrease)        184,412        740,096 
Redemption fees        110        399 
   Total increase (decrease) in net assets        191,338        732,364 
 
Net Assets                 
   Beginning of period        4,290,988        3,558,624 
   End of period (including undistributed net investment                 
       income of $3,882 and undistributed net investment                 
       income of $1,612, respectively)        $ 4,482,326        $ 4,290,988 

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

31 Semiannual Report

Financial Highlights  Class A                             
    Six months ended                                 
      April 30,        Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.96        $ 9.97        $ 9.88     $ 9.45    $ 9.70        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .263        .404        .285    .292    .352        .580 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .098    .447    (.264)        (.185) 
Total from investment                                         
   operations        .277        .396        .383    .739    .088        .395 
Distributions from net                                         
   investment income        (.257)        (.397)        (.295)    (.311)    (.339)        (.638) 
Distributions from net                                         
   realized gain                 (.010)                         
   Total distributions        (.257)        (.407)        (.295)    (.311)    (.339)        (.638) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period      $ 9.98        $ 9.96        $ 9.97     $ 9.88     $ 9.45        $ 9.70 
Total ReturnB,C,D        2.81%        4.05%        3.96%    7.95%    .90%        4.08% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.06%A        1.06%        1.08%    1.10%    1.12%        1.14% 
   Expenses net of fee                                         
       waivers, if any        1.06%A        1.06%        1.08%    1.10%    1.10%        .99% 
   Expenses net of all                                         
       reductions        1.06%A        1.06%        1.08%    1.09%    1.09%        .98% 
   Net investment                                         
       income        5.31%A        4.05%        2.90%    3.04%    3.64%        5.93% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)      $ 304        $ 312        $ 299     $ 88     $ 37        $ 41 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

Semiannual Report

32

Financial Highlights  Class T                                 
    Six months ended                                 
      April 30,          Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.95        $ 9.96        $ 9.87     $ 9.44     $ 9.69        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .259        .396        .276    .285    .342        .573 
   Net realized and un                                         
       realized gain (loss)        .015        (.007)        .098    .446    (.263)        (.195) 
Total from investment                                         
   operations        .274        .389        .374    .731    .079        .378 
Distributions from net                                         
   investment income        (.254)        (.390)        (.286)    (.303)    (.330)        (.631) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.254)        (.400)        (.286)    (.303)    (.330)        (.631) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.97        $ 9.95        $ 9.96     $ 9.87     $ 9.44        $ 9.69 
Total ReturnB,C,D        2.78%        3.98%        3.87%    7.87%    .80%        3.90% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.12%A        1.13%        1.17%    1.18%    1.20%        1.22% 
   Expenses net of fee                                         
       waivers, if any        1.12%A        1.13%        1.17%    1.18%    1.19%        1.06% 
   Expenses net of all                                         
       reductions        1.12%A        1.13%        1.17%    1.18%    1.19%        1.06% 
   Net investment                                         
       income        5.25%A        3.98%        2.81%    2.96%    3.54%        5.86% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 498        $ 511        $ 389     $ 113     $ 75        $ 76 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

33 Semiannual Report

Financial Highlights  Class B                             
    Six months ended                                 
      April 30,          Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.95        $ 9.96        $ 9.87     $ 9.44     $ 9.69        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .234        .346        .231    .243    .298        .525 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .096    .444    (.263)        (.194) 
Total from investment                                         
   operations        .248        .338        .327    .687    .035        .331 
Distributions from net                                         
   investment income        (.228)        (.339)        (.239)    (.259)    (.286)        (.584) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.228)        (.349)        (.239)    (.259)    (.286)        (.584) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.97        $ 9.95        $ 9.96     $ 9.87     $ 9.44        $ 9.69 
Total ReturnB,C,D        2.52%        3.46%        3.38%    7.38%    .35%        3.42% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.64%A        1.64%        1.65%    1.64%    1.65%        1.66% 
   Expenses net of fee                                         
       waivers, if any        1.64%A        1.64%        1.65%    1.63%    1.64%        1.54% 
   Expenses net of all                                         
       reductions        1.64%A        1.64%        1.65%    1.63%    1.64%        1.54% 
   Net investment                                         
       income        4.73%A        3.47%        2.33%    2.50%    3.09%        5.38% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 155        $ 173        $ 184     $ 134     $ 118        $ 125 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

Semiannual Report

34

Financial Highlights Class C                             
    Six months ended                                 
      April 30,          Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.96        $ 9.97        $ 9.87     $ 9.45     $ 9.70        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .232        .341        .224    .235    .290        .516 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .107    .434    (.263)        (.184) 
Total from investment                                         
   operations        246        .333        .331    .669    .027        .332 
Distributions from net                                         
   investment income        (.226)        (.334)        (.233)    (.251)    (.278)        (.575) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.226)        (.344)        (.233)    (.251)    (.278)        (.575) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.98        $ 9.96        $ 9.97     $ 9.87 $    $ 9.45        $ 9.70 
Total ReturnB,C,D        2.49%        3.40%        3.41%    7.18%    .26%        3.42% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.69%A        1.69%        1.71%    1.72%    1.73%        1.75% 
   Expenses net of fee                                         
       waivers, if any        1.69%A        1.69%        1.71%    1.71%    1.73%        1.64% 
   Expenses net of all                                         
       reductions        1.69%A        1.69%        1.71%    1.71%    1.73%        1.63% 
   Net investment                                         
       income        4.68%A        3.42%        2.27%    2.42%    3.00%        5.28% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 492        $ 539        $ 524     $ 269     $ 235        $ 278 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

35 Semiannual Report

Financial Highlights  Fidelity Floating Rate High Income Fund                     
    Six months ended                 
    April 30,    Years ended October 31,   
    2006    2005    2004    2003    2002G 
Selected Per Share Data                     
Net asset value, beginning                     
   of period    $ 9.95    $ 9.96    $ 9.87    $ 9.44    $ 9.52 
Income from Investment                     
   Operations                     
   Net investment incomeD    .274    .427    .309    .311    .040 
   Net realized and                     
       unrealized gain (loss)    .015    (.008)    .099    .450    (.084) 
Total from investment                     
   operations    .289    .419    .408    .761    (.044) 
Distributions from net                     
   investment income    (.269)    (.420)    (.320)    (.333)    (.037) 
Distributions from net                     
   realized gain          (.010)             
   Total distributions    (.269)    (.430)    (.320)    (.333)    (.037) 
Redemption fees added to                     
   paid in capitalD    F    .001    .002    .002    .001 
Net asset value, end of                     
   period    $ 9.97    $ 9.95    $ 9.96    $ 9.87    $ 9.44 
Total ReturnB,C    2.94%    4.30%    4.22%    8.20%    (.45)% 
Ratios to Average Net AssetsE                     
   Expenses before                     
       reductions    .82%A    .82%    .84%    .86%    1.15%A 
   Expenses net of fee                     
       waivers, if any    .82%A    .82%    .84%    .86%    .95%A 
   Expenses net of all                     
       reductions    .82%A    .82%    .84%    .86%    .94%A 
   Net investment income .    5.55%A    4.29%    3.14%    3.27%    3.99%A 
Supplemental Data                     
   Net assets, end of period                     
       (in millions)    $ 2,743    $ 2,471    $ 1,982    $ 811    $ 18 
   Portfolio turnover rate    68%A    66%    61%    55%    77% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
F Amount represents less than $.001 per share.
G For the period September 19, 2002 (commencement of sale of shares) to October 31, 2002.

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

Semiannual Report

36

Financial Highlights    Institutional Class                         
 
     Six months ended                                            
      April 30,      Years ended October 31,     
        2006    2005    2004    2003    2002    2001 
Selected Per Share Data                                                 
Net asset value,                                                 
   beginning of period .        $ 9.95        $ 9.96        $ 9.86        $ 9.44        $ 9.69        $ 9.94 
Income from Investment                                                 
   Operations                                                 
   Net investment                                                 
       incomeD        273        .424        .304        .312        .365        .590 
   Net realized and un                                                 
       realized gain (loss)        .005        (.007)        .110        .436        (.262)        (.193) 
Total from investment                                                 
   operations        278        .417        .414        .748        .103        .397 
Distributions from net                                                 
   investment income        (.268)        (.418)        (.316)        (.330)        (.354)        (.650) 
Distributions from net                                                 
   realized gain                  (.010)                                 
   Total distributions        (.268)        (.428)        (.316)        (.330)        (.354)        (.650) 
Redemption fees added                                                 
   to paid in capitalD        F        .001        .002        .002        .001        .003 
Net asset value, end of                                                 
   period        $ 9.96        $ 9.95        $ 9.96        $ 9.86        $ 9.44        $ 9.69 
Total ReturnB,C        2.82%        4.27%        4.29%        8.06%        1.06%        4.11% 
Ratios to Average Net AssetsE                                                 
   Expenses before                                                 
       reductions        .85%A        .85%        .87%        .90%        .94%        1.02% 
   Expenses net of fee                                                 
       waivers, if any        .85%A        .85%        .87%        .89%        .94%        .87% 
   Expenses net of all                                                 
       reductions        .84%A        .85%        .87%        .89%        .93%        .87% 
   Net investment                                                 
       income        5.53%A        4.26%        3.11%        3.24%        3.79%        6.05% 
Supplemental Data                                                 
   Net assets, end of                                                 
       period (in millions)        $ 290        $ 285        $ 182        $ 36        $ 18        $ 7 
   Portfolio turnover rate        68%A        66%        61%        55%        77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
F Amount represents less than $.001 per share.

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

37 Semiannual Report

Notes to Financial Statements

For the period ended April 30, 2006
(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Advisor Floating Rate High Income Fund (the fund) is a fund of Fidelity Advisor Series II (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open end management investment company organized as a Massachusetts business trust.

The fund offers Class A, Class T, Class B, Class C, Fidelity Floating Rate High Income, and Institutional Class shares, each of which has equal rights as to assets and voting privi leges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain ex pense reductions also differ by class.

The fund may invest in affiliated money market central funds (Money Market Central Funds), which are open end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require manage ment to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by indepen dent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accor dance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Invest ments in open end mutual funds are valued at their closing net asset value each business day. Short term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Semiannual Report

38

1. Significant Accounting Policies continued

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The fund earns certain fees in connection with its floating rate loan purchasing activites. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Income in the accompanying financial statements.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each fund in the trust.

Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.

Dividends are declared daily and paid monthly from net investment income. Distribu tions from realized gains, if any, are 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 generally accepted accounting principles.

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

Book tax differences are primarily due to market discount, capital loss carryforwards and losses deferred due to wash sales.

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

Unrealized appreciation        $ 30,909 
Unrealized depreciation        (3,326) 
Net unrealized appreciation (depreciation)        $ 27,583 
Cost for federal income tax purposes        $ 4,471,776 

Short Term Trading (Redemption) Fees. Shares held in the fund less than 60 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the fund and accounted for as an addition to paid in capital.

39 Semiannual Report

Notes to Financial Statements  continued 
(Amounts in thousands except ratios)     
 
2. Operating Policies.     

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

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

Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The fund may be contrac tually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

3. Purchases and Sales of Investments.

Purchases and sales of securities (including principal repayments of floating rate loans), other than short term securities, aggregated $1,472,312 and $1,288,547, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment manage ment related services for which the fund pays a monthly management fee. The manage ment fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the fund’s average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR.

Semiannual Report

40

4. Fees and Other Transactions with Affiliates  continued 

Management Fee - continued
 
   

The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .68% of the fund’s average net assets.

Distribution and Service Plan. In accordance with Rule 12b 1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees 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 and the total amounts paid to and retained by FDC were as follows:

    Distribution    Service        Paid to        Retained 
    Fee    Fee        FDC        by FDC 
Class A    0%    .15%        $ 230        $ 4 
Class T    0%    .25%        639        4 
Class B    .55%    .15%        575        453 
Class C    .55%    .25%        2,066        532 
                $ 3,510        $ 993 

Sales Load. FDC receives a front end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermedi aries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3.50% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:     
 
        Retained 
        by FDC 
Class A        $ 64 
Class T        23 
Class B*        193 
Class C*        127 
        $ 407 

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

41 Semiannual Report

Notes to Financial Statements continued     
(Amounts in thousands except ratios)     
 
4. Fees and Other Transactions with Affiliates  continued 

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Fidelity Floating Rate High Income Fund. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Fidelity Floating Rate High Income Fund shares. FIIOC and FSC receive account fees and asset based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:

            % of 
            Average 
        Amount    Net Assets 
Class A        $ 279    .18* 
Class T        371    .15* 
Class B        172    .21* 
Class C        419    .16* 
Fidelity Floating Rate High Income Fund        1,212    .09* 
Institutional Class        173    .12* 
        $ 2,626     
 
* Annualized             

Accounting Fees. FSC maintains the fund’s accounting records. The fee is based on the level of average net assets for the month.

Affiliated Central Funds. The fund may invest in Money Market Central Funds which seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

The Money Market Central Funds do not pay a management fee.

5. Committed Line of Credit.

The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the “line of credit”) to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounts to $4 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

42

6. Bank Borrowings.

The fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank’s base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $16,971. The weighted average interest rate was 4.25% . At period end, there were no bank borrowings outstanding.

7. Expense Reductions.

Through arrangements with the fund’s custodian credits realized as a result of unin vested cash balances were used to reduce the fund’s expenses. During the period, these credits reduced the fund’s custody expense by $47, respectively. During the period, credits reduced each class’ transfer agent expense as noted in the table below.

      Transfer Agent 
    expense reduction 
Class C        1 
Fidelity Floating Rate High Income Fund        2 
        $ 3 
 
8. 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.

43 Semiannual Report

Notes to Financial Statements    continued         
(Amounts in thousands except ratios)                 
 
9. Distributions to Shareholders.         
 
Distributions to shareholders of each class were as follows:         
 
        Six months ended        Year ended 
        April 30,        October 31, 
        2006        2005 
From net investment income                 
Class A        $ 7,907        $ 12,889 
Class T        13,022        18,576 
Class B        3,763        6,130 
Class C        11,701        18,615 
Fidelity Floating Rate High Income Fund        69,653        99,532 
Institutional Class        7,757        10,451 
Total        $ 113,803        $ 166,193 
From net realized gain                 
Class A        $ —        $ 311 
Class T                412 
Class B                184 
Class C                543 
Fidelity Floating Rate High Income Fund                2,131 
Institutional Class                204 
Total        $ —        $ 3,785 

Semiannual Report

44

10. Share Transactions.                     
 
Transactions for each class of shares were as follows:
 
               
    Shares        Dollars 
    Six months ended    Year ended    Six months ended        Year ended 
    April 30,    October 31,        April 30,        October 31, 
    2006    2005        2006        2005 
Class A                         
Shares sold    6,078    17,372        $ 60,628        $ 173,298 
Reinvestment of                         
   distributions    578    972        5,763        9,697 
Shares redeemed    (7,484)    (17,054)        (74,656)        (170,023) 
Net increase (decrease)    (828)    1,290        $ (8,265)        $ 12,972 
Class T                         
Shares sold    9,483    30,403        $ 94,487        $ 302,938 
Reinvestment of                         
   distributions    1,169    1,707        11,651        17,036 
Shares redeemed    (12,079)    (19,747)        (120,387)        (196,695) 
Net increase (decrease)    (1,427)    12,363        $ (14,249)        $ 123,279 
Class B                         
Shares sold    701    3,269        $ 6,991        $ 32,570 
Reinvestment of                         
   distributions    279    468        2,777        4,667 
Shares redeemed    (2,814)    (4,746)        (28,041)        (47,274) 
Net increase (decrease)    (1,834)    (1,009)        $ (18,273)        $ (10,037) 
Class C                         
Shares sold    4,189    18,049        $ 41,774        $ 180,076 
Reinvestment of                         
   distributions    797    1,287        7,949        12,828 
Shares redeemed    (9,793)    (17,764)        (97,674)        (177,066) 
Net increase (decrease)    (4,807)    1,572        $ (47,951)        $ 15,838 
Fidelity Floating Rate                         
   High Income Fund                         
Shares sold    69,233    151,558        $ 689,998        $ 1,511,153 
Reinvestment of                         
   distributions    5,969    8,742        59,494        87,090 
Shares redeemed    (48,259)    (110,895)        (480,835)        (1,103,883) 
Net increase (decrease)    26,943    49,405        $ 268,657        $ 494,360 
Institutional Class                         
Shares sold    7,118    21,744        $ 70,914        $ 216,646 
Reinvestment of                         
   distributions    342    444        3,407        4,394 
Shares redeemed    (7,008)    (11,790)        (69,828)        (117,356) 
Net increase (decrease)    452    10,398        $ 4,493        $ 103,684 

45 Semiannual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Advisor Series II and Shareholders of Fidelity Advisor Floating Rate High Income Fund:

We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series II, includ ing the schedule of investments as of April 30, 2006, and the related statement of operations for the six months then ended, the statement of changes in net assets for the six months then ended April 30, 2006 and for the year ended October 31, 2005, and the financial highlights for the six months ended April 30, 2006 and each of the five years in the period ended October 31, 2005. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures in cluded confirmation of securities owned as of April 30, 2006, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of April 30, 2006, the results of its operations for the six months then ended, the changes in its net assets for the six months then ended April 30, 2006 and for the year ended October 31, 2005, and its financial highlights for the six months ended April 30, 2006 and each of the five years in the period ended October 31, 2005, in conform ity with accounting principles generally accepted in the United States of America.

  /s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts
June 20, 2006

Semiannual Report 46

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Advisor Floating Rate High Income Fund

On January 19, 2006, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve a general research services agreement (the Agreement) between FMR, FMR Co., Inc. (FMRC), Fidelity Investments Money Manage ment, Inc. (FIMM), and Fidelity Research & Analysis Company (FRAC) (together, the Investment Advisers) for the fund, effective January 20, 2006, pursuant to which FRAC may provide general research and investment advisory support services to FMRC and FIMM. The Board considered that it has approved previously various sub advisory agreements for the fund with affiliates of FMR that allow FMR to obtain research, non discretionary advice, or discretionary portfolio management at no additional expense to the fund. The Board, assisted by the advice of fund counsel and independent Trustees’ counsel, considered a broad range of information and determined that it would be beneficial for the fund to access the research and investment advisory support services supplied by FRAC at no additional expense to the fund.

The Board reached this determination in part because the new arrangement will involve no changes in (i) the contractual terms of and fees payable under the fund’s manage ment contract or sub advisory agreements; (ii) the investment process or strategies employed in the management of the fund’s assets; (iii) the nature or level of services provided under the fund’s management contract or sub advisory agreements; (iv) the day to day management of the fund or the persons primarily responsible for such man agement; or (v) the ultimate control or beneficial ownership of FMR, FMRC, or FIMM. The Board also considered that the establishment of the Agreement would not necessi tate prior shareholder approval of the Agreement or result in an assignment and termination of the fund’s management contract or sub advisory agreements under the Investment Company Act of 1940.

Because the Board was approving an arrangement with FRAC under which the fund will not bear any additional management fees or expenses and under which the fund’s portfolio manager would not change, it did not consider the fund’s investment perfor mance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.

In connection with its future renewal of the fund’s management contract and sub advisory agreements, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund’s management fee and total expenses; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders; and (iv) whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have

Semiannual Report

48

appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund’s Agreement is fair and reasonable, and that the fund’s Agreement should be approved.

49 Semiannual Report

Semiannual Report

50

51 Semiannual Report

Semiannual Report

52

Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York
New York, NY

AFR-USAN-0606
1.784877.103



Fidelity® Advisor
Floating Rate High Income
Fund - Institutional Class

  Semiannual Report
April 30, 2006

Contents         
 
 
Chairman’s Message    3    Ned Johnson’s message to shareholders. 
 
Shareholder Expense    4    An example of shareholder expenses. 
Example         
 
Investment Changes    6    A summary of major shifts in the fund’s 
        investments over the past six months. 
 
Investments    8    A complete list of the fund’s investments 
        with their market values. 
 
Financial Statements    28    Statements of assets and liabilities, 
        operations, and changes in net assets, 
        as well as financial highlights. 
 
Notes    38    Notes to the financial statements. 
 
Report of Independent    46     
Registered Public         
Accounting Firm         
 
Board Approval of    48     
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 www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commis
sion’s (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of
the proxy voting guidelines.

Standard & Poor’s, S&P and S&P 500 are registered service marks of The McGraw Hill Companies,

Inc. and have been licensed for use by Fidelity Distributors Corporation.

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


All other marks appearing herein are registered or unregistered trademarks or service marks

of FMR Corp. or an affiliated company.

  This report and the financial statements contained herein are submitted for the general information
of the shareholders of the fund. This report is not authorized for distribution to prospective investors
in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third
quarters of each fiscal year on Form N Q. Forms N Q are available on the SEC’s web site at
http://www.sec.gov. A fund’s Forms N Q may be reviewed and copied at the SEC’s Public Refer
ence 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 hold
ings, view the most recent quarterly holdings report, semiannual report, or annual report on
Fidelity’s web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

2

Chairman’s Message

(photograph of Edward C. Johnson 3d)

Dear Shareholder:

Although many securities markets made gains in early 2006, there is only one certainty when it comes to investing: There is no sure thing. There are, however, a number of time tested, fundamental investment principles that can put the historical odds in your favor.

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

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

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

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

Sincerely,

/s/ Edward C. Johnson 3d

Edward C. Johnson 3d

3 Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, 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 (November 1, 2005 to April 30, 2006).

Actual Expenses

The first line of the table below 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 esti mate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the table below 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.

Semiannual Report

4

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.

                        Expenses Paid 
        Beginning        Ending        During Period* 
        Account Value        Account Value    November 1, 2005 
    November 1, 2005        April 30, 2006        to April 30, 2006 
Class A                         
Actual        $ 1,000.00        $ 1,028.10        $ 5.33 
HypotheticalA        $ 1,000.00        $ 1,019.54        $ 5.31 
Class T                         
Actual        $ 1,000.00        $ 1,027.80        $ 5.63 
HypotheticalA        $ 1,000.00        $ 1,019.24        $ 5.61 
Class B                         
Actual        $ 1,000.00        $ 1,025.20        $ 8.24 
HypotheticalA        $ 1,000.00        $ 1,016.66        $ 8.20 
Class C                         
Actual        $ 1,000.00        $ 1,024.90        $ 8.48 
HypotheticalA        $ 1,000.00        $ 1,016.41        $ 8.45 
Fidelity Floating Rate High                         
    Income Fund                         
Actual        $ 1,000.00        $ 1,029.40        $ 4.13 
HypotheticalA        $ 1,000.00        $ 1,020.73        $ 4.11 
Institutional Class                         
Actual        $ 1,000.00        $ 1,028.20        $ 4.27 
HypotheticalA        $ 1,000.00        $ 1,020.58        $ 4.26 
 
A 5% return per year before expenses                 

* Expenses are equal to each Class’ annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one half year period).

    Annualized 
    Expense Ratio 
Class A    1.06% 
Class T    1.12% 
Class B    1.64% 
Class C    1.69% 
Fidelity Floating Rate High Income Fund    .82% 
Institutional Class    .85% 

5 Semiannual Report

Investment Changes         
 
 
 Top Five Holdings as of April 30, 2006         
(by issuer, excluding cash equivalents)    % of fund’s    % of fund’s net assets 
    net assets    6 months ago 
NRG Energy, Inc.    2.5    0.4 
Charter Communications Operating LLC    2.5    2.8 
Qwest Corp.    2.2    2.0 
Georgia Pacific Corp.    2.2    0.5 
CSC Holdings, Inc.    2.2    0.3 
    11.6     
 
Top Five Market Sectors as of April 30, 2006 
   
    % of fund’s    % of fund’s net assets 
    net assets    6 months ago 
Cable TV    12.5    12.8 
Healthcare    7.5    7.3 
Telecommunications    7.5    8.1 
Energy    5.8    7.1 
Electric Utilities    5.1    4.5 


We have used ratings from Moody’s® Investors Services, Inc. Where Moody’s ratings are not available, we have used S&P® ratings.

Semiannual Report 6


7 Semiannual Report

Investments April 30,  2006         
Showing Percentage of Net Assets                 
 
 Floating Rate Loans (d) 76.3%                 
        Principal    Value (Note 1) 
      Amount (000s)      (000s) 
Aerospace – 0.4%                 
DRS Technologies, Inc. term loan 6.444% 1/31/13 (c)                        $ 1,730        $ 1,747 
Mid-Western Aircraft Systems, Inc. Tranche B, term loan                 
   7.3183% 12/31/11 (c)        14,074        14,267 
Transdigm, Inc. term loan:                 
   7.1513% 7/22/10 (c)        1,564        1,583 
   10.22% 11/10/11 (c)        2,000        2,015 
                19,612 
Air Transportation – 0.9%                 
Delta Air Lines, Inc. Tranche B, term loan 11.01%                 
   3/16/08 (c)        3,290        3,380 
UAL Corp.:                 
   Tranche B, term loan 8.625% 2/1/12 (c)        21,000        21,315 
   Tranche DD, term loan 8.75% 2/1/12 (c)        3,000        3,045 
US Airways Group, Inc. term loan 8.5% 3/31/11 (c)        11,000        11,138 
                38,878 
Automotive 2.7%                 
Accuride Corp. term loan 7.1875% 1/31/12 (c)        3,277        3,314 
Advance Auto Parts, Inc. Tranche B, term loan 6.3727%                 
   9/30/10 (c)        2,974        2,981 
AM General LLC Tranche B1, term loan 9.5459%                 
   11/1/11 (c)        1,750        1,789 
Dana Corp. term loan 7.22% 4/13/08 (c)        11,120        11,190 
Delphi Corp.:                 
   revolver loan 11.75% 6/18/09 (c)(e)        2,000        2,070 
   Tranche B, term loan:                 
       7.375% 10/8/07 (c)        14,690        14,910 
       13.25% 6/14/11 (c)        16,998        17,677 
Enersys Capital, Inc. term loan 6.8232% 3/17/11 (c)        983        994 
Federal-Mogul Financing Trust term loan 6.8125%                 
   12/9/06 (c)        8,700        8,754 
Goodyear Tire & Rubber Co. Tranche 1, Credit-Linked                 
   Deposit 6.4% 4/30/10 (c)        19,820        19,993 
Mark IV Industries, Inc. Tranche B, term loan 7.9655%                 
   6/23/11 (c)        2,937        2,970 
Rexnord Corp. term loan 7.1056% 12/31/11 (c)        2,678        2,722 
Tenneco Auto, Inc.:                 
   Tranche B, term loan 7.02% 12/12/10 (c)        3,042        3,087 
   Tranche B1, Credit-Linked Deposit 7.0756%                 
       12/12/10 (c)        1,336        1,356 
Travelcenters of America, Inc. Tranche B, term loan                 
   6.6199% 12/1/11 (c)        7,554        7,591 

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

Semiannual Report

8

 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Automotive continued                 
TRW Automotive Holdings Corp.:                 
   Tranche B, term loan 6.25% 6/30/12 (c)        $ 2,283        $ 2,289 
   Tranche B2, term loan 6.125% 6/30/12 (c)        1,995        2,000 
   Tranche E, term loan 6% 10/31/10 (c)        14,813        14,850 
                120,537 
Broadcasting – 1.4%                 
Emmis Operating Co. Tranche B, term loan 6.7238%                 
   11/10/11 (c)        9,490        9,538 
Entravision Communication Corp. term loan 6.49%                 
   3/29/13 (c)        5,970        6,007 
Gray Television, Inc.:                 
   Tranche B, term loan 6.49% 11/22/12 (c)        8,152        8,193 
   Tranche B2, term loan 6.48% 5/22/13 (c)        2,494        2,506 
Montecito Broadcast Group LLC Tranche 1, term loan                 
   7.7231% 1/27/13 (c)        1,995        2,025 
Nexstar Broadcasting, Inc. Tranche B, term loan 6.28%                 
   10/1/12 (c)        14,483        14,519 
Paxson Communications Corp. term loan 8.3183%                 
   1/15/12 (c)        6,000        6,120 
Raycom TV Broadcasting, Inc. Tranche B, term loan 6.5%                 
   8/28/13 (c)        5,984        5,999 
Spanish Broadcasting System, Inc. Tranche 1, term loan                 
   6.73% 6/10/12 (c)        7,920        7,970 
                62,877 
Building Materials – 0.8%                 
Contech Construction Products, Inc., Ohio term loan                 
   6.9267% 2/9/13 (c)        3,750        3,797 
Goodman Global Holdings, Inc. Tranche C, term loan                 
   6.625% 12/23/11 (c)        5,813        5,856 
Masonite International Corp. term loan 7.106%                 
   4/5/13 (c)        16,335        16,192 
Nortek Holdings, Inc. Tranche B, term loan 6.9504%                 
   8/27/11 (c)        11,820        11,894 
                37,739 
Cable TV – 10.0%                 
Adelphia Communications Corp. Tranche B, term loan                 
   6.9375% 8/7/06 (c)        30,350        30,502 
Charter Communications Operating LLC Tranche B, term                 
   loan 7.755% 4/28/13 (c)        110,000        110,401 
Cox Communications, Inc. term loan 5.87% 12/8/09 (c)        21,000        21,000 
CSC Holdings, Inc. Tranche B, term loan 6.6643%                 
   3/29/13 (c)        80,000        80,200 

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

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Cable TV – continued                 
DIRECTV Holdings LLC Tranche B, term loan 6.4225%                 
   4/13/13 (c)        $ 24,347        $ 24,560 
Insight Midwest Holdings LLC:                 
   Tranche A, term loan 6.25% 6/30/09 (c)        21,503        21,530 
   Tranche C, term loan 7% 12/31/09 (c)        14,670        14,798 
Liberty Cablevision of Puerto Rico LTC term loan 7.09%                 
   3/1/13 (c)        5,000        5,038 
Mediacom Broadband LLC/Mediacom Broadband Corp.                 
   Tranche C, term loan 6.7861% 2/1/14 (c)        3,930        3,930 
Mediacom LLC Tranche B, term loan 7.0671%                 
   3/31/13 (c)        9,825        9,825 
NTL Cable PLC term loan 10.3313% 3/3/07 (c)        17,000        17,000 
PanAmSat Corp. Tranche B1, term loan 6.8998%                 
   8/20/11 (c)        52,334        52,857 
Rainbow Media Holdings, Inc. Tranche B, term loan                 
   7.5625% 3/31/12 (c)        6,935        7,004 
San Juan Cable, Inc. Tranche 1, term loan 6.84%                 
   10/31/12 (c)        5,985        6,052 
UPC Broadband Holding BV Tranche H2, term loan                 
   7.33% 9/30/12 (c)        33,000        33,000 
UPC Distribution Holdings BV Tranche F, term loan                 
   7.83% 12/31/11 (c)        11,008        11,008 
                448,705 
Capital Goods 1.5%                 
AGCO Corp. term loan 6.7294% 7/3/09 (c)        9,286        9,356 
Amsted Industries, Inc.:                 
   term loan 7.0023% 4/5/13 (c)        4,889        4,950 
   Tranche DD, term loan 4/5/13 (e)        3,111        3,096 
Chart Industries, Inc. Tranche B, term loan 6.625%                 
   10/17/12 (c)        3,617        3,676 
Dresser, Inc. Tranche C, term loan 7.5% 4/10/09 (c)        1,407        1,432 
Flowserve Corp. term loan 6.6582% 8/10/12 (c)        11,362        11,504 
Hexcel Corp. Tranche B, term loan 6.7253% 3/1/12 (c)        5,057        5,101 
Invensys International Holding Ltd.:                 
   Tranche A, term loan 7.8413% 3/5/09 (c)        1,927        1,942 
   Tranche B1, term loan 8.5013% 9/4/09 (c)        3,049        3,079 
Mueller Group, Inc. term loan 7.263% 10/3/12 (c)        8,060        8,170 
NACCO Materials Handling Group, Inc. term loan                 
   3/21/13 (e)        2,000        2,015 

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

Semiannual Report

10

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Capital Goods – continued                 
Terex Corp.:                 
   term loan 7.7594% 12/31/09 (c)        $ 1,489        $ 1,503 
   Tranche B, term loan 7.2594% 7/3/09 (c)        7,309        7,382 
Walter Industries, Inc. term loan 6.885% 10/3/12 (c)        4,692        4,745 
                67,951 
Chemicals – 3.9%                 
Basell USA, Inc.:                 
   Tranche B2, term loan 7.31% 8/1/13 (c)        1,730        1,760 
   Tranche C2, term loan 8% 8/1/14 (c)        1,730        1,760 
Brenntag AG Tranche B, term loan 7.44% 1/18/14 (c) .        4,000        4,055 
Celanese AG Credit-Linked Deposit 7.3375% 4/6/09 (c)        6,000        6,090 
Celanese Holding LLC term loan 6.9272% 4/6/11 (c)        39,652        40,198 
Hercules, Inc. Tranche B, term loan 6.526% 10/8/10 (c)        5,397        5,424 
Huntsman International LLC Tranche B, term loan                 
   6.6794% 8/16/12 (c)        36,631        36,677 
INEOS US Finance:                 
   Tranche B, term loan 7.3392% 1/31/13 (c)        9,825        9,954 
   Tranche C, term loan 7.8392% 1/31/14 (c)        9,825        9,954 
Innophos, Inc. Tranche B, term loan 7.2272% 8/13/10 (c)        3,788        3,826 
ISP Chemco, Inc. Tranche B, term loan 6.5% 2/16/13 (c)        8,000        8,040 
Mosaic Co. Tranche B, term loan 6.1934% 2/21/12 (c)        8,705        8,748 
Nalco Co. Tranche B, term loan 6.6451% 11/4/10 (c) .        18,365        18,549 
Rockwood Specialties Group, Inc. Tranche E, term loan                 
   7.1256% 7/30/12 (c)        14,553        14,699 
Solutia, Inc. Tranche B, term loan 8.33% 3/31/07 (c)        6,690        6,749 
                176,483 
Consumer Products – 1.2%                 
ACCO Brands Corp. Tranche B, term loan 6.6744%                 
   8/17/12 (c)        1,963        1,972 
American Achievement Corp. Tranche B, term loan                 
   7.3435% 3/25/11 (c)        2,413        2,449 
Central Garden & Pet Co. Tranche B, term loan 6.5217%                 
   9/12/12 (c)        5,000        5,025 
Jarden Corp.:                 
   term loan 6.99% 1/24/12 (c)        6,257        6,312 
   Tranche B2, term loan 6.74% 1/24/12 (c)        3,274        3,295 
Jostens IH Corp. Tranche C, term loan 7.3181%                 
   10/4/11 (c)        13,843        14,016 
NPI Merger Corp. term loan 7.0225% 4/21/13 (c)        5,800        5,851 
Revlon Consumer Products Corp. term loan 10.8514%                 
   7/9/10 (c)        6,750        6,927 

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

11 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Consumer Products – continued                 
Sealy Mattress Co. Tranche D, term loan 6.6028%                 
   4/6/12 (c)        $ 6,681        $ 6,739 
Weight Watchers International, Inc.:                 
   Tranche B, term loan 6.6461% 3/31/10 (c)        1,205        1,217 
   Tranche C, term loan 6.5769% 3/31/10 (c)        1,970        1,985 
                55,788 
Containers – 1.6%                 
Berry Plastics Corp. term loan 6.84% 12/2/11 (c)        2,228        2,242 
BWAY Corp. Tranche B term loan 6.8125% 6/30/11 (c)        4,628        4,675 
Covalence Specialty Materials Corp. Tranche B, term                 
   loan 6.6875% 2/16/13 (c)        6,800        6,860 
Crown Holdings, Inc. Tranche B, term loan 6.44%                 
   11/15/12 (c)        4,320        4,336 
Graham Packaging Holdings Co.:                 
   Tranche B, term loan 7.375% 10/4/11 (c)        2,670        2,693 
   Tranche B1, term loan 7.1079% 10/4/11 (c)        16,836        16,983 
Intertape Polymer, Inc. Tranche B, term loan 7.1575%                 
   7/28/11 (c)        6,893        6,961 
Owens-Illinois Group, Inc.:                 
   Tranche A1, term loan 6.61% 4/1/07 (c)        7,761        7,752 
   Tranche B1, term loan 6.71% 4/1/08 (c)        5,631        5,624 
Owens-Illinois, Inc. Tranche C1, term loan 6.78%                 
   4/1/08 (c)        7,360        7,379 
Solo Cup Co. Tranche B1, term loan 7.5316%                 
   2/27/11 (c)        7,333        7,415 
                72,920 
Diversified Financial Services – 1.4%                 
Ameritrade Holding Corp. Tranche B, term loan 6.49%                 
   1/23/13 (c)        20,000        20,050 
AWAS Aviation Acquisitions Ltd. Tranche 1, term loan                 
   6.75% 3/15/13 (c)        23,000        22,770 
Global Cash Access LLC/Global Cash Access Finance                 
   Corp. Tranche B, term loan 6.75% 3/10/10 (c)        5,694        5,744 
LPL Holdings, Inc. Tranche B, term loan 8.1962%                 
   6/28/13 (c)        10,973        11,110 
Newkirk Master LP Tranche B, term loan 7.3502%                 
   8/11/08 (c)        4,728        4,757 
                64,431 
Diversified Media – 0.7%                 
Adams Outdoor Advertising Ltd. term loan 7.0876%                 
   10/18/12 (c)        2,908        2,948 
LBI Media, Inc. Tranche B, term loan 6.7631% 3/31/12 (c)        2,300        2,306 

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

Semiannual Report

12

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Diversified Media – continued                 
NextMedia Operating, Inc. Tranche 1, term loan                 
   6.8816% 11/18/12 (c)        $ 4,358        $ 4,402 
Quebecor Media, Inc. Tranche B, term loan 7.0683%                 
   1/17/13 (c)        4,988        5,050 
R.H. Donnelley Corp.:                 
   Tranche A4, term loan 6.2738% 12/31/09 (c)        1,111        1,111 
   Tranche D1, term loan 6.437% 6/30/11 (c)        9,965        9,965 
Thomson Media, Inc. Tranche B1, term loan 7.21%                 
   11/8/11 (c)        3,411        3,453 
                29,235 
Electric Utilities – 4.3%                 
AES Corp. term loan 6.22% 8/10/11 (c)        5,429        5,469 
Allegheny Energy Supply Co. LLC term loan 6.4138%                 
   3/8/11 (c)        29,049        29,049 
Calpine Generating Co. LLC Tranche 1, term loan                 
   8.5756% 4/1/09 (c)        16,350        16,963 
Dynegy Holdings, Inc. term loan 6.71% 4/19/12 (c)        10,000        10,038 
LSP Gen Finance Co. LLC Tranche B1, term loan 8.5%                 
   4/13/13 (c)(e)        8,650        8,693 
Midwest Generation LLC term loan 6.6971%                 
   4/27/11 (c)        903        908 
Mirant North America LLC/Mirant North America                 
   Finance Corp. term loan 6.5988% 1/3/13 (c)        15,970        16,090 
NRG Energy, Inc.:                 
   Credit-Linked Deposit 6.9794% 2/1/13 (c)        20,566        20,746 
   term loan 6.82% 2/1/13 (c)        81,434        82,146 
Primary Energy Finance LLC term loan 6.9794%                 
   8/24/12 (c)        1,990        1,995 
                192,097 
Energy – 4.1%                 
ATP Oil & Gas Corp. term loan 10.4707% 4/14/10 (c)        1,980        2,030 
Boart Longyear Holdings, Inc. Tranche 1, term loan                 
   7.98% 7/28/12 (c)        8,955        9,067 
Buckeye Pipe Line Co. term loan 7.3104% 12/17/11 (c)        2,817        2,831 
Citgo Petroleum Corp. Tranche B, term loan 6.2125%                 
   11/15/12 (c)        13,117        13,134 
Coffeyville Resources LLC:                 
   Credit-Linked Deposit 7.3% 7/8/11 (c)        4,800        4,848 
   Tranche B1, term loan 7.5034% 7/8/12 (c)        7,146        7,218 
Dresser-Rand Group, Inc. Tranche B, term loan 6.9235%                 
   10/29/11 (c)        4,095        4,151 

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

13 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Energy – continued                 
El Paso Corp.:                 
   Credit-Linked Deposit 7.52% 11/22/09 (c)        $ 32,438        $ 32,843 
   term loan 7.75% 11/22/09 (c)        42,884        43,420 
EPCO Holdings, Inc. Tranche C, term loan 7.0238%                 
   8/16/10 (c)        12,870        13,031 
Lyondell-Citgo Refining LP term loan 6.9794%                 
   5/21/07 (c)        7,860        7,899 
MEG Energy Corp.:                 
   term loan 7% 4/3/13 (c)        2,500        2,522 
   Tranche DD, term loan 4/3/13 (e)        2,500        2,503 
Petroleum Geo-Services ASA term loan 7.48%                 
   12/16/12 (c)        6,983        7,017 
Targa Resources, Inc./Targa Resources Finance Corp.:                 
   Credit-Linked Deposit 7.1044% 10/31/12 (c)        3,290        3,323 
   term loan 7.2565% 10/31/12 (c)        13,641        13,778 
Universal Compression, Inc. term loan 6.48%                 
   2/15/12 (c)        9,253        9,334 
Vulcan/Plains Resources, Inc. term loan 6.25%                 
   8/12/11 (c)        2,966        2,985 
                181,934 
Entertainment/Film 2.0%                 
Alliance Atlantis Communications, Inc. Tranche C, term                 
   loan 6.4794% 12/19/11 (c)        3,960        3,985 
AMC Entertainment, Inc. term loan 7.1144%                 
   1/26/13 (c)        12,479        12,572 
Cinemark USA, Inc. Tranche C, term loan 6.53%                 
   3/31/11 (c)        10,731        10,825 
MGM Holdings II, Inc. Tranche B, term loan 7.2294%                 
   4/8/12 (c)        34,000        34,298 
Regal Cinemas Corp. term loan 6.4794% 11/10/10 (c)        27,476        27,717 
                89,397 
Environmental – 1.3%                 
Allied Waste Industries, Inc.:                 
   term loan 6.7593% 1/15/12 (c)        38,779        38,876 
   Tranche A, Credit-Linked Deposit 6.7734%                 
       1/15/12 (c)        15,056        15,093 
Waste Services, Inc. Tranche C, term loan 8.1733%                 
   3/31/11 (c)        1,980        2,012 
                55,981 
Food and Drug Retail – 0.7%                 
Jean Coutu Group (PJC) USA, Inc. Tranche B, term loan                 
   7.6247% 7/30/11 (c)        31,463        31,778 

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

Semiannual Report

14

Floating Rate Loans (d) continued                     
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Food/Beverage/Tobacco – 1.6%                     
Bolthouse Farms, Inc. Tranche 1, term loan 7.37%                     
   12/16/12 (c)            $ 3,990        $ 4,050 
Bumble Bee Foods LLC Tranche B, term loan 6.9176%                     
   4/20/12 (c)            3,000        3,034 
Commonwealth Brands, Inc. term loan 7% 12/22/12 (c)            7,913        8,002 
Constellation Brands, Inc. Tranche B, term loan 6.3613%                     
   11/30/11 (c)            33,109        33,109 
Del Monte Corp. Tranche B, term loan 6.5% 2/8/12 (c)             1,782        1,789 
Doane Pet Care Co. term loan 7.1747% 10/24/12 (c)            6,776        6,784 
Dr Pepper/Seven Up Bottling Group, Inc. Tranche B,                     
   term loan 6.9294% 12/19/10 (c)            8,755        8,853 
Michael Foods, Inc. Tranche B, term loan 6.698%                     
   11/21/10 (c)            4,548        4,594 
Reddy Ice Group, Inc. term loan 6.7947% 8/12/12 (c)            2,000        2,015 
                    72,230 
Gaming – 3.0%                     
Alliance Gaming Corp. term loan 8.18% 9/5/09 (c)            3,693        3,730 
Ameristar Casinos, Inc. term loan 6.5% 11/10/12 (c)            4,030        4,065 
BLB Worldwide Holdings, Inc. Tranche 1, term loan                     
   6.8177% 6/30/12 (c)            7,950        8,049 
Boyd Gaming Corp. term loan 6.5445% 6/30/11 (c)            13,279        13,395 
Choctaw Resort Development Enterprise term loan 6.94%                     
   11/4/11 (c)            2,233        2,253 
Green Valley Ranch Gaming LLC term loan 6.9794%                     
   12/17/11 (c)            3,688        3,721 
Herbst Gaming, Inc. term loan 7.1087% 1/7/11 (c)            3,564        3,595 
Isle Capri Black Hawk LLC / Isle Capri Black Hawk                     
   Capital term loan 6.8356% 10/24/11 (c)            498        500 
MGM MIRAGE Tranche A, term loan 6.2838%                     
   4/25/10 (c)            4,000        4,010 
Motor City Casino Tranche B, term loan 6.924%                     
   7/29/12 (c)            3,056        3,063 
Penn National Gaming, Inc. Tranche B, term loan                     
   6.6617% 7/31/12 (c)            8,955        9,056 
Pinnacle Entertainment, Inc. Tranche B, term loan 6.93%                     
   12/14/11 (c)            5,350        5,377 
Trump Entertainment Resorts Holdings LP Tranche B, term                     
   loan 7.17% 5/20/12 (c)(e)            14,540        14,704 
Venetian Casino Resort LLC Tranche B, term loan 6.73%                     
   6/15/11 (c)            24,200        24,200 
Venetian Macau Ltd. Tranche B, term loan:                     
   4/7/12 (e)            7,000        7,000 
   7.83% 4/7/13 (c)            14,000        14,140 

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

15 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Gaming – continued                 
Wynn Las Vegas LLC term loan 7.085% 12/14/11 (c)        $ 12,650        $ 12,777 
                133,635 
Healthcare 7.5%                 
Accellent, Inc. term loan 6.8% 11/22/12 (c)        6,065        6,088 
AmeriPath, Inc. Tranche B, term loan 6.83%                 
   10/31/12 (c)        3,000        3,030 
AMR HoldCo, Inc./EmCare HoldCo, Inc. term loan                 
   6.8374% 2/7/12 (c)        7,089        7,178 
Angiotech Pharmaceuticals, Inc. term loan 6.45%                 
   3/23/13 (c)        4,000        4,010 
Community Health Systems, Inc. term loan 6.56%                 
   8/19/11 (c)        38,026        38,264 
Concentra Operating Corp. term loan 6.69%                 
   9/30/11 (c)        7,478        7,534 
CONMED Corp. Tranche B, term loan 6.68%                 
   4/12/13 (c)        3,000        3,030 
CRC Health Group, Inc. term loan 7.2294% 2/6/13 (c) .        4,000        4,045 
DaVita, Inc. Tranche B, term loan 6.9456% 10/5/12 (c)        50,056        50,369 
DJ Orthopedics, Inc. Tranche B, term loan 6.5625%                 
   4/7/13 (c)        2,650        2,660 
Fresenius Medical Care Holdings, Inc. Tranche B, term                 
   loan 6.5086% 3/23/12 (c)        36,000        35,955 
Gentiva Health Services, Inc. term loan 7.2688%                 
   2/28/12 (c)        1,989        2,004 
HCA, Inc. term loan 6% 11/9/09 (c)        27,800        27,696 
HealthSouth Corp. term loan 8.15% 3/10/13 (c)        36,000        36,360 
Iasis Healthcare LLC Tranche B, term loan 7.2637%                 
   6/22/11 (c)        14,249        14,427 
Kinetic Concepts, Inc. Tranche B2, term loan 6.73%                 
   8/11/10 (c)        4,372        4,426 
LifePoint Hospitals, Inc. Tranche B, term loan 6.185%                 
   4/15/12 (c)        22,413        22,525 
Multiplan, Inc. term loan 6.86% 4/12/13 (c)        5,960        6,020 
Mylan Laboratories, Inc. Tranche B, term loan 6.5%                 
   6/30/10 (c)        3,089        3,116 
National Renal Institutes, Inc. term loan 9% 3/31/13 (c)        3,460        3,486 
Psychiatric Solutions, Inc. term loan 6.36% 7/1/12 (c)        7,323        7,378 
Quintiles Transnational Corp. Tranche B, term loan                 
   6.82% 3/31/13 (c)        4,000        4,025 
Renal Advantage, Inc. Tranche B, term loan 7.4246%                 
   9/30/12 (c)        5,283        5,349 
Team Health, Inc. term loan 7.27% 11/22/12 (c)        16,459        16,541 

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

Semiannual Report

16

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Healthcare continued                 
U.S. Oncology, Inc. Tranche B, term loan 6.9447%                 
   8/20/11 (c)        $ 8,529        $ 8,615 
Vanguard Health Holding Co. I term loan 6.95%                 
   9/23/11 (c)        5,777        5,849 
Vicar Operating, Inc. term loan 6.5% 5/16/11 (c)        2,498        2,517 
VWR Corp. Tranche B, term loan 7.34% 4/7/11 (c)        5,298        5,371 
                337,868 
Homebuilding/Real Estate – 2.3%                 
Apartment Investment & Management Co. term loan                 
   6.36% 3/22/11 (c)        2,100        2,111 
Blount, Inc. Tranche B1, term loan 6.658% 8/9/10 (c)        1,657        1,673 
Capital Automotive (REIT) Tranche B, term loan 6.58%                 
   12/16/10 (c)        8,000        8,050 
CB Richard Ellis Services, Inc. term loan 6.7584%                 
   3/31/10 (c)        8,077        8,157 
General Growth Properties, Inc. Tranche A1, term loan                 
   6.2% 2/24/10 (c)        34,000        33,873 
Lion Gables Realty LP term loan 6.59% 9/30/06 (c)        12,375        12,391 
Maguire Properties, Inc. Tranche B, term loan 6.5988%                 
   3/15/10 (c)        1,622        1,626 
The Rouse Co. term loan 6.25% 8/24/06 (c)        15,000        15,000 
Trizec Properties, Inc. term loan 6.3144% 4/19/07 (c) .        21,000        20,974 
                103,855 
Hotels 0.3%                 
Hilton Hotels Corp. Tranche B, term loan 6.2472%                 
   2/9/13 (c)        11,700        11,744 
Insurance – 0.1%                 
Conseco, Inc. term loan 6.6513% 6/22/10 (c)        2,134        2,153 
Leisure – 1.3%                 
Century Theaters, Inc. Tranche B, term loan 6.695%                 
   3/1/13 (c)        5,640        5,696 
Easton Bell Sports, Inc. Tranche B, term loan 6.8037%                 
   3/16/12 (c)        2,630        2,656 
London Arena & Waterfront Finance LLC Tranche A,                 
   term loan 8.38% 3/8/12 (c)        3,000        3,023 
Mega Bloks, Inc. Tranche B, term loan 6.9113%                 
   7/26/12 (c)        3,960        3,985 
Six Flags Theme Park, Inc. Tranche B1, term loan                 
   7.472% 6/30/09 (c)        24,144        24,295 

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

17 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Leisure – continued                 
Universal City Development Partners Ltd. term loan                 
   6.9415% 6/9/11 (c)        $ 17,728        $ 17,950 
Yankees Holdings LP term loan 7.3244% 6/25/07 (c)        943        943 
                58,548 
Metals/Mining – 1.5%                 
Alpha National Resources LLC/Alpha National                 
   Resources Capital Corp. Tranche B, term loan 6.32%                 
   10/26/12 (c)        7,980        8,010 
Compass Minerals Tranche B, term loan 6.4844%                 
   12/22/12 (c)        7,636        7,674 
Foundation Pennsylvania Coal Co. Tranche B, term loan                 
   6.6205% 7/30/11 (c)        17,605        17,847 
Murray Energy Corp. Tranche 1, term loan 8%                 
   1/28/10 (c)        2,970        3,000 
Novelis, Inc. term loan 6.44% 1/7/12 (c)        14,561        14,689 
Peabody Energy Corp. term loan 5.6526% 3/21/10 (c)        14,667        14,648 
Stillwater Mining Co. term loan 7.25% 7/30/10 (c)        2,146        2,172 
                68,040 
Paper 4.4%                 
Appleton Papers, Inc. term loan 6.9986% 6/11/10 (c) .        3,588        3,624 
Boise Cascade Holdings LLC Tranche D, term loan                 
   6.7518% 10/26/11 (c)        22,329        22,580 
Buckeye Technologies, Inc. term loan 7.006% 3/15/08 (c)        3,201        3,209 
Georgia-Pacific Corp.:                 
   Tranche 2, term loan 7.9393% 12/23/13 (c)        23,000        23,460 
   Tranche B, term loan 6.8847% 12/23/12 (c)        74,813        75,187 
Graphic Packaging International, Inc. Tranche C, term                 
   loan 7.4368% 8/8/10 (c)        15,413        15,606 
NewPage Corp. term loan 7.96% 5/2/11 (c)        5,136        5,162 
Smurfit-Stone Container Enterprises, Inc.:                 
   Credit-Linked Deposit 7.01% 11/1/10 (c)        4,164        4,206 
   Tranche B, term loan 7.193% 11/1/11 (c)        26,522        26,788 
   Tranche C, term loan 7.125% 11/1/11 (c)        7,840        7,919 
   Tranche C1, term loan 7.125% 11/1/11 (c)        2,823        2,859 
Xerium Technologies, Inc. Tranche B, term loan 7.2294%                 
   5/18/12 (c)        4,891        4,885 
                195,485 
Publishing/Printing – 1.9%                 
Caribe Information Investments, Inc. term loan 7.4036%                 
   3/31/13 (c)        3,000        3,030 
CBD Media, Inc. Tranche D, term loan 7.41%                 
   12/31/09 (c)        5,610        5,695 

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

Semiannual Report

18

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Publishing/Printing – continued                 
Dex Media East LLC/Dex Media East Finance Co.:                 
   Tranche A, term loan 6.1202% 11/8/08 (c)        $ 2,647        $ 2,647 
   Tranche B, term loan 6.5899% 5/8/09 (c)        7,844        7,844 
Dex Media West LLC/Dex Media West Finance Co.:                 
   Tranche A, term loan 6.1634% 9/9/09 (c)        2,364        2,364 
   Tranche B, term loan 6.6137% 3/9/10 (c)        15,580        15,580 
   Tranche B1, term loan 6.2968% 3/10/10 (c)        15,727        15,727 
Herald Media, Inc. Tranche 1, term loan 7.67%                 
   7/22/11 (c)        2,455        2,455 
Liberty Group Operating, Inc. Tranche B, term loan                 
   7.25% 2/28/12 (c)        1,601        1,615 
R.H. Donnelley Corp. Tranche D2, term loan 6.6906%                 
   6/30/11 (c)        27,916        27,916 
Sun Media Corp. Canada Tranche B, term loan                 
   7.1256% 2/7/09 (c)        1,718        1,730 
                86,603 
Railroad 0.1%                 
RailAmerica, Inc. term loan 7.0625% 9/29/11 (c)        5,543        5,612 
Restaurants 1.6%                 
Arby’s Restaurant Group, Inc. Tranche B, term loan                 
   7.1812% 7/25/12 (c)        4,963        5,025 
Burger King Corp. Tranche B1, term loan 6.5% 6/30/12 (c)        19,483        19,483 
CKE Restaurants, Inc. term loan 6.9375% 5/1/10 (c)        1,285        1,294 
Del Taco Tranche B, term loan 7.0719% 3/29/13 (c)        5,000        5,050 
Domino’s, Inc. term loan 6.4557% 6/25/10 (c)        11,404        11,489 
Dunkin Brands Acquisition, Inc. term loan 7.3256%                 
   3/1/13 (c)        15,430        15,430 
El Pollo Loco, Inc. Tranche B, term loan 7.56% 11/18/11 (c)        1,995        2,025 
Jack in the Box, Inc. term loan 6.5193% 1/8/11 (c)        3,516        3,547 
Landry’s Seafood Restaurants, Inc. term loan 6.8597%                 
   12/28/10 (c)        6,024        6,076 
                69,419 
Services – 1.8%                 
Audatex North America, Inc. Tranche 1, term loan 7.3%                 
   4/13/13 (c)        2,000        2,008 
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.                 
   term loan 6.35% 4/19/12 (c)        4,000        4,000 
CACI International, Inc. Tranche B, term loan 6.2491%                 
   4/30/11 (c)        4,949        4,987 
Coinmach Corp. Tranche B1, term loan 7.9328%                 
   12/19/12 (c)        5,994        6,084 
Coinstar, Inc. term loan 7.0298% 7/1/11 (c)        5,575        5,659 

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

19 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Services – continued                 
Hertz Corp.:                 
   Credit-Linked Deposit 7.18% 12/21/12 (c)        $ 1,444        $ 1,453 
   Tranche B, term loan 7.0171% 12/21/12 (c)        9,838        9,899 
   Tranche DD, term loan 12/21/12 (e)        1,693        1,699 
IAP Worldwide Services, Inc. Tranche 1, term loan 8%                 
   12/27/12 (c)        2,993        3,022 
Iron Mountain, Inc.:                 
   term loan 6.656% 4/2/11 (c)        4,938        4,975 
   Tranche C, term loan 6.5625% 4/2/11 (c)        11,196        11,280 
JohnsonDiversey, Inc.:                 
   Tranche B, term loan 7.2068% 12/16/11 (c)        4,055        4,111 
   Tranche DD, term loan 12/16/10 (e)        509        511 
Rural/Metro Corp.:                 
   Credit-Linked Deposit 7.3488% 3/4/11 (c)        408        410 
   term loan 7.1029% 3/4/11 (c)        1,304        1,313 
The Geo Group, Inc. term loan 7% 9/14/11 (c)        1,300        1,306 
United Rentals, Inc.:                 
   term loan 7% 2/14/11 (c)        8,778        8,844 
   Tranche B, Credit-Linked Deposit 6.75% 2/14/11 (c) .        1,598        1,610 
US Investigations Services, Inc.:                 
   term loan 7.43% 10/14/12 (c)        5,920        6,001 
   Tranche C, term loan 7.43% 10/14/12 (c)        1,978        2,005 
                81,177 
Shipping – 0.2%                 
Baker Tanks, Inc.:                 
   term loan 11/23/12 (e)        107        107 
   Tranche B, term loan 7.3229% 11/23/12 (c)        888        899 
Horizon Lines LLC Tranche C, term loan 7.17%                 
   7/7/11 (c)        3,783        3,825 
Ozburn Hessey Holding Co. LLC term loan 7.2906%                 
   8/9/12 (c)        2,513        2,539 
                7,370 
Super Retail – 0.9%                 
Alimentation Couche-Tard, Inc. term loan 6.7545%                 
   12/17/10 (c)        1,560        1,576 
Buhrmann US, Inc. Tranche D1, term loan 6.555%                 
   12/31/10 (c)        5,590        5,639 
Neiman Marcus Group, Inc. term loan 7.34%                 
   4/6/13 (c)        15,190        15,342 

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

Semiannual Report

20

Floating Rate Loans (d) continued                     
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Super Retail – continued                     
The Pep Boys – Manny, Moe & Jack term loan 7.89%                     
   1/27/11 (c)            $ 2,360        $ 2,398 
Toys ’R’ US, Inc. term loan 7.8256% 12/9/08 (c)            17,000        17,043 
                    41,998 
Technology – 4.3%                     
Affiliated Computer Services, Inc. term loan 6.4294%                     
   3/20/13 (c)            15,327        15,422 
AMI Semiconductor, Inc. term loan 6.5% 4/1/12 (c)            4,955        4,986 
Anteon International Corp. term loan 6.5788%                     
   12/31/10 (c)            6,858        6,927 
Eastman Kodak Co. term loan 7.2405% 10/18/12 (c)    .        7,136        7,207 
Fairchild Semiconductor Corp. Tranche B3, term loan                     
   6.625% 12/31/10 (c)            6,893        6,970 
Fidelity National Information Solutions, Inc.:                     
   Tranche A, term loan 6.3519% 3/9/11 (c)            1,985        1,987 
   Tranche B, term loan 6.6019% 3/9/13 (c)            33,784        33,953 
Global Imaging Systems, Inc. term loan 6.3845%                     
   5/10/10 (c)            2,702        2,715 
Infor Global Solutions AG Tranche 1, term loan 7.8%                     
   4/18/11 (c)            5,000        5,000 
K & F Industries, Inc. term loan 7.169% 11/18/12 (c)            7,026        7,123 
ON Semiconductor Corp. Tranche H, term loan 7.23%                     
   12/15/11 (c)            5,913        5,972 
Sensata Technologies BV term loan 6.86% 4/27/13 (c)    .        9,265        9,300 
SERENA Software, Inc. term loan 7.41% 3/10/13 (c)            6,000        6,060 
SSA Global Technologies, Inc. term loan 6.97%                     
   9/22/11 (c)            3,970        4,000 
SunGard Data Systems, Inc. Tranche B, term loan                     
   7.215% 2/10/13 (c)            69,453        70,321 
Verifone, Inc. Tranche B, term loan 6.8756%                     
   6/30/11 (c)            5,858        5,888 
                    193,831 
Telecommunications – 4.3%                     
Alaska Communications Systems Holding term loan                     
   6.7294% 2/1/12 (c)            5,000        5,050 
Centennial Cellular Operating Co. LLC term loan 7.214%                     
   2/9/11 (c)            15,635        15,830 
Cincinnati Bell, Inc. Tranche B, term loan 6.3587%                     
   8/31/12 (c)            12,935        13,000 
Consolidated Communications, Inc. Tranche D term loan                     
   6.6752% 10/14/11 (c)            2,000        2,013 
Intelsat Ltd. term loan 6.75% 7/28/11 (c)            26,374        26,605 

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

21 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Telecommunications – continued                 
Iowa Telecommunication Services, Inc. Tranche B, term                 
   loan 6.6888% 11/23/11 (c)        $ 4,000        $ 4,035 
Level 3 Communications, Inc. term loan 11.8225%                 
   12/2/11 (c)        10,000        10,500 
Madison River Capital LLC/Madison River Finance Corp.                 
   Tranche B1, term loan 7.26% 7/29/12 (c)        5,000        5,069 
Nextel Partners Operating Corp. Tranche D, term loan                 
   6.32% 5/31/12 (c)        16,364        16,364 
NTELOS, Inc. Tranche B1, term loan 7.5% 8/24/11 (c) .        6,913        7,008 
Qwest Corp.:                 
   Tranche A, term loan 9.6513% 6/30/07 (c)        36,400        37,196 
   Tranche B, term loan 6.95% 6/30/10 (c)        11,000        11,110 
Time Warner Telecom Holdings, Inc. Tranche B, term                 
   loan 6.6826% 11/30/10 (c)        4,703        4,762 
Triton PCS, Inc. term loan 8.08% 11/18/09 (c)        7,848        7,897 
Valor Telecommunications Enterprises LLC/Valor Finance                 
   Corp. Tranche B, term loan 6.7531% 2/14/12 (c)        9,135        9,146 
Wind Telecomunicazioni Spa:                 
   Tranche B, term loan 7.7819% 9/21/13 (c)        7,500        7,575 
   Tranche C, term loan 8.2819% 9/21/14 (c)        7,500        7,575 
                190,735 
Textiles & Apparel – 0.3%                 
Warnaco Group, Inc. term loan 6.4069% 1/31/13 (c) .        7,000        7,000 
William Carter Co. term loan 6.7045% 6/29/12 (c)        8,399        8,441 
                15,441 
 
TOTAL FLOATING RATE LOANS                 
 (Cost $3,401,701)            3,422,087 

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

Semiannual Report

22

Nonconvertible Bonds 12.6%                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Air Transportation – 0.1%                 
Delta Air Lines, Inc. pass thru trust certificates 7.57%                 
   11/18/10        $ 6,000        $ 6,000 
Auto Parts Distribution – 0.0%                 
Ford Motor Credit Co. 5.7948% 9/28/07 (c)        2,000        1,915 
Automotive 0.7%                 
Ford Motor Credit Co.:                 
   5.7% 11/16/06 (c)        22,000        21,893 
   5.88% 3/21/07 (c)        4,000        3,930 
General Motors Acceptance Corp.:                 
   5.645% 5/18/06 (c)        2,000        2,000 
   6.125% 9/15/06        5,000        4,961 
                32,784 
Broadcasting – 0.2%                 
Radio One, Inc. 8.875% 7/1/11        7,000        7,324 
Cable TV 2.5%                 
Cablevision Systems Corp. 9.62% 4/1/09 (c)        5,000        5,300 
CSC Holdings, Inc.:                 
   7.25% 7/15/08        2,000        2,020 
   7.875% 12/15/07        13,000        13,277 
   10.5% 5/15/16        2,000        2,140 
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375%                 
   3/15/13        1,963        2,100 
EchoStar DBS Corp.:                 
   5.75% 10/1/08        4,000        3,940 
   7.93% 10/1/08 (c)        79,285        80,871 
                109,648 
Chemicals – 0.1%                 
Equistar Chemicals LP/Equistar Funding Corp. 10.625%                 
   5/1/11        2,000        2,180 
NOVA Chemicals Corp. 7.5613% 11/15/13 (c)        3,000        3,008 
                5,188 
Containers – 0.1%                 
Owens-Brockway Glass Container, Inc. 8.875%                 
   2/15/09        3,000        3,105 
Diversified Media – 0.6%                 
Liberty Media Corp. 6.41% 9/17/06 (c)        26,000        26,092 
Electric Utilities – 0.8%                 
AES Corp. 8.75% 6/15/08        3,000        3,131 
CMS Energy Corp. 9.875% 10/15/07        12,000        12,690 
NRG Energy, Inc. 7.375% 2/1/16        9,000        9,056 

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

23 Semiannual Report

Investments continued                 
 
 
 Nonconvertible Bonds continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Electric Utilities – continued                 
TECO Energy, Inc.:                 
   6.125% 5/1/07        $ 4,000        $ 4,000 
   6.68% 5/1/10 (c)        5,000        5,125 
                34,002 
Energy – 1.7%                 
El Paso Corp.:                 
   6.5% 5/15/06 (b)        6,000        6,000 
   7.5% 8/15/06 (b)        2,000        2,009 
   7.625% 8/16/07        8,000        8,100 
El Paso Energy Corp. 6.95% 12/15/07        3,350        3,371 
Parker Drilling Co. 9.57% 9/1/10 (c)        7,000        7,210 
Pemex Project Funding Master Trust 6.21%                 
   6/15/10 (b)(c)        18,000        18,432 
Premcor Refining Group, Inc.:                 
   9.25% 2/1/10        2,000        2,120 
   9.5% 2/1/13        2,000        2,190 
Sonat, Inc. 7.625% 7/15/11        3,000        3,060 
Southern Natural Gas Co. 8.875% 3/15/10        840        890 
Williams Companies, Inc. 6.99% 10/1/10 (b)(c)        17,000        17,383 
Williams Companies, Inc. Credit Linked Certificate Trust                 
   IV 7.94% 5/1/09 (b)(c)        7,000        7,158 
                77,923 
Entertainment/Film 0.2%                 
AMC Entertainment, Inc. 8.9988% 8/15/10 (c)        9,000        9,270 
Food and Drug Retail – 0.2%                 
Rite Aid Corp. 12.5% 9/15/06        8,000        8,190 
Food/Beverage/Tobacco – 0.0%                 
Canandaigua Brands, Inc. 8.625% 8/1/06        1,000        1,008 
Gaming – 0.2%                 
Mandalay Resort Group:                 
   9.5% 8/1/08        2,000        2,140 
   10.25% 8/1/07        2,000        2,098 
Mirage Resorts, Inc. 6.75% 8/1/07        3,000        3,030 
                7,268 
Healthcare 0.0%                 
Service Corp. International (SCI) 6.5% 3/15/08        2,000        1,990 
Leisure – 0.1%                 
Universal City Florida Holding Co. I/II 9.43% 5/1/10 (c)        5,140        5,294 

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

Semiannual Report

24

Nonconvertible Bonds continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Metals/Mining – 0.5%                 
Freeport-McMoRan Copper & Gold, Inc.:                 
   6.875% 2/1/14        $ 8,000        $ 7,950 
   10.125% 2/1/10        13,470        14,463 
                22,413 
Paper 0.1%                 
Boise Cascade LLC/Boise Cascade Finance Corp.                 
   7.9433% 10/15/12 (c)        2,190        2,212 
Publishing/Printing – 0.2%                 
Dex Media East LLC/Dex Media East Finance Co.                 
   9.875% 11/15/09        6,000        6,375 
R.H. Donnelley Finance Corp. III 8.875% 1/15/16 (b)        4,000        4,120 
                10,495 
Services – 0.0%                 
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.                 
   7.576% 5/15/14 (b)(c)        1,650        1,695 
Shipping – 0.1%                 
OMI Corp. 7.625% 12/1/13        2,000        2,030 
Ship Finance International Ltd. 8.5% 12/15/13        3,620        3,403 
                5,433 
Super Retail – 0.3%                 
GSC Holdings Corp./Gamestop, Inc. 8.865%                 
   10/1/11 (b)(c)        14,000        14,420 
Technology – 0.6%                 
Freescale Semiconductor, Inc. 7.8183% 7/15/09 (c)        24,000        24,540 
Telecommunications – 3.2%                 
AirGate PCS, Inc. 8.8269% 10/15/11 (c)        7,000        7,193 
America Movil SA de CV 5.735% 4/27/07 (c)        1,000        1,003 
Dobson Cellular Systems, Inc. 9.43% 11/1/11 (c)        8,000        8,320 
Intelsat Subsidiary Holding Co. Ltd. 9.6094%                 
   1/15/12 (c)        7,000        7,131 
Qwest Communications International, Inc. 8.2488%                 
   2/15/09 (c)        5,000        5,100 
Qwest Corp. 8.16% 6/15/13 (c)        47,150        51,394 
Rogers Communications, Inc.:                 
   6.375% 3/1/14        3,000        2,925 
   8.035% 12/15/10 (c)        38,450        39,604 
Rural Cellular Corp.:                 
   8.25% 3/15/12        6,000        6,300 

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

25 Semiannual Report

Investments continued                 
 
 
 Nonconvertible Bonds continued             
            Principal    Value (Note 1) 
          Amount (000s)           (000s) 
Telecommunications – continued                 
Rural Cellular Corp.: – continued                 
   9.41% 3/15/10 (c)                    $ 13,000    $ 13,390 
Time Warner Telecom Holdings, Inc. 8.7488%                 
   2/15/11 (c)            1,000    1,020 
                143,380 
Textiles & Apparel – 0.1%                 
Levi Strauss & Co. 9.74% 4/1/12 (c)            2,000    2,083 
TOTAL NONCONVERTIBLE BONDS             
 (Cost $556,553)                563,672 
 U.S. Treasury Obligations  0.4%                 
 
U.S. Treasury Notes 3.375% 2/28/07                 
   (Cost $16,964)            17,000    16,783 
 Money Market Funds 10.6%                 
            Shares     
Fidelity Cash Central Fund, 4.8% (a)        311,278,091    311,278 
Fidelity Money Market Central Fund, 4.96% (a)        162,842,923    162,843 
TOTAL MONEY MARKET FUNDS                 
 (Cost $474,121)                474,121 
 Cash Equivalents 0.5%                 
          Maturity        
          Amount (000s)     
Investments in repurchase agreements (Collateralized by                 
   U.S. Treasury Obligations, in a joint trading account at                 
   4.69%, dated 4/28/06 due 5/1/06)                 
   (Cost $22,696)        22,705    22,696 
TOTAL INVESTMENT PORTFOLIO  100.4%                 
 (Cost $4,472,035)                4,499,359 
 
NET OTHER ASSETS – (0.4)%                (17,033) 
NET ASSETS 100%                $ 4,482,326 
 
 
 
 
See accompanying notes which are an integral part of the financial statements.     
 
Semiannual Report    26             

Legend

(a) Affiliated fund that is 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.

(b) Security exempt from registration under

Rule 144A of the Securities Act of 1933.
These securities may be resold in
transactions exempt from registration,
normally to qualified institutional buyers
At the period end, the value of these
securities amounted to $71,217,000 or
1.6% of net assets.

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

(d) Remaining maturities of floating rate

loans may be less than the stated
maturities shown as a result of
contractual or optional prepayments by
the borrower. Such prepayments cannot
be predicted with certainty.

(e) Position or a portion of the position

represents an unfunded loan
commitment. At period end, the total
principal amount and market value of
unfunded commitments totaled
$24,605,000 and $24,703,000,
respectively. The coupon rate will be
determined at time of settlement.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund      Income earned 
    (Amounts in thousands) 
Fidelity Cash Central Fund          $ 9,727 
Fidelity Money Market Central Fund        3,873 
Total           $ 13,600 

Income Tax Information

At October 31, 2005, the fund had a capital loss carryforward of approximately $3,375,000 of which $1,297,000 and $2,078,000 will expire on October 31, 2010 and 2011, respectively.

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

27 Semiannual Report

Financial Statements                 
 
 Statement of Assets and Liabilities                 
Amounts in thousands (except per share amounts)                April 30, 2006 
 
Assets                 
Investment in securities, at value (including repurchase                 
   agreements of $22,696) See accompanying                 
   schedule:                 
   Unaffiliated issuers (cost $3,997,914)        $ 4,025,238         
   Affiliated Central Funds (cost $474,121)        474,121         
Total Investments (cost $4,472,035)                $ 4,499,359 
Cash                2,933 
Receivable for investments sold                178,605 
Receivable for fund shares sold                14,632 
Interest receivable                33,439 
Prepaid expenses                12 
Other affiliated receivables                1 
   Total assets                4,728,981 
 
Liabilities                 
Payable for investments purchased        $ 227,351         
Payable for fund shares redeemed        11,550         
Distributions payable        4,041         
Accrued management fee        2,489         
Distribution fees payable        563         
Other affiliated payables        555         
Other payables and accrued expenses        106         
   Total liabilities                246,655 
 
Net Assets                $ 4,482,326 
Net Assets consist of:                 
Paid in capital                $ 4,452,029 
Undistributed net investment income                3,882 
Accumulated undistributed net realized gain (loss) on                 
   investments                (909) 
Net unrealized appreciation (depreciation) on                 
   investments                27,324 
Net Assets                $ 4,482,326 

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

Semiannual Report

28

Statement of Assets and Liabilities continued         

Amounts in thousands (except per share amounts)
 
          April 30, 2006 
Calculation of Maximum Offering Price             
   Class A:             
   Net Asset Value and redemption price per share             
       ($304,171 ÷ 30,488 shares)            $ 9.98 
 
Maximum offering price per share (100/96.25 of $9.98)            $ 10.37 
 Class T:             
 Net Asset Value and redemption price per share             
       ($497,756 ÷ 49,940 shares)            $ 9.97 
 
Maximum offering price per share (100/97.25 of $9.97)            $ 10.25 
 Class B:             
 Net Asset Value and offering price per share             
       ($155,301 ÷ 15,582 shares)A            $ 9.97 
 
 Class C:             
 Net Asset Value and offering price per share             
       ($491,768 ÷ 49,299 shares)A            $ 9.98 
 
 Fidelity Floating Rate High Income Fund:             
 Net Asset Value, offering price and redemption price per         
       share ($2,743,397 ÷ 275,232 shares)            $ 9.97 
 
 Institutional Class:             
 Net Asset Value, offering price and redemption price per         
       share ($289,933 ÷ 29,100 shares)            $ 9.96 
 
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.

29 Semiannual Report

Financial Statements continued         
 
 
 Statement of Operations             
Amounts in thousands        Six months ended April 30, 2006 
 
Investment Income             
Interest            $ 124,240 
Income from affiliated Central Funds            13,600 
   Total income            137,840 
 
Expenses             
Management fee                                             $ 14,644     
Transfer agent fees        2,626     
Distribution fees        3,510     
Accounting fees and expenses        676     
Independent trustees’ compensation        9     
Custodian fees and expenses        51     
Registration fees        153     
Audit        70     
Legal        29     
Interest        4     
Miscellaneous        45     
   Total expenses before reductions        21,817     
   Expense reductions        (50)    21,767 
 
Net investment income            116,073 
Realized and Unrealized Gain (Loss)         
Net realized gain (loss) on:             
   Investment securities:             
      Unaffiliated issuers            2,636 
Change in net unrealized appreciation (depreciation) on             
   investment securities            1,910 
Net gain (loss)            4,546 
Net increase (decrease) in net assets resulting             
   from operations            $ 120,619 

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

Semiannual Report

30

Statement of Changes in Net Assets                 
    Six months ended        Year ended 
        April 30,        October 31, 
Amounts in thousands        2006        2005 
Increase (Decrease) in Net Assets                 
Operations                 
   Net investment income        $ 116,073        $ 168,450 
   Net realized gain (loss)        2,636        2,418 
   Change in net unrealized appreciation (depreciation) .        1,910        (9,021) 
   Net increase (decrease) in net assets resulting                 
       from operations        120,619        161,847 
Distributions to shareholders from net investment income .        (113,803)        (166,193) 
Distributions to shareholders from net realized gain                (3,785) 
   Total distributions        (113,803)        (169,978) 
Share transactions - net increase (decrease)        184,412        740,096 
Redemption fees        110        399 
   Total increase (decrease) in net assets        191,338        732,364 
 
Net Assets                 
   Beginning of period        4,290,988        3,558,624 
   End of period (including undistributed net investment                 
       income of $3,882 and undistributed net investment                 
       income of $1,612, respectively)        $ 4,482,326        $ 4,290,988 

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

31 Semiannual Report

Financial Highlights  Class A                             
    Six months ended                                 
      April 30,           Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.96        $ 9.97        $ 9.88     $ 9.45     $ 9.70        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .263        .404        .285    .292    .352        .580 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .098    .447    (.264)        (.185) 
Total from investment                                         
   operations        .277        .396        .383    .739    .088        .395 
Distributions from net                                         
   investment income        (.257)        (.397)        (.295)    (.311)    (.339)        (.638) 
Distributions from net                                         
   realized gain                 (.010)                         
   Total distributions        (.257)        (.407)        (.295)    (.311)    (.339)        (.638) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period      $ 9.98        $ 9.96        $ 9.97     $ 9.88     $ 9.45        $ 9.70 
Total ReturnB,C,D        2.81%        4.05%        3.96%    7.95%    .90%        4.08% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.06%A        1.06%        1.08%    1.10%    1.12%        1.14% 
   Expenses net of fee                                         
       waivers, if any        1.06%A        1.06%        1.08%    1.10%    1.10%        .99% 
   Expenses net of all                                         
       reductions        1.06%A        1.06%        1.08%    1.09%    1.09%        .98% 
   Net investment                                         
       income        5.31%A        4.05%        2.90%    3.04%    3.64%        5.93% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)      $ 304        $ 312        $ 299     $ 88     $ 37        $ 41 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

Semiannual Report

32

Financial Highlights  Class T                                 
    Six months ended                                 
      April 30,          Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.95        $ 9.96        $ 9.87     $ 9.44     $ 9.69        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .259        .396        .276    .285    .342        .573 
   Net realized and un                                         
       realized gain (loss)        .015        (.007)        .098    .446    (.263)        (.195) 
Total from investment                                         
   operations        .274        .389        .374    .731    .079        .378 
Distributions from net                                         
   investment income        (.254)        (.390)        (.286)    (.303)    (.330)        (.631) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.254)        (.400)        (.286)    (.303)    (.330)        (.631) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.97        $ 9.95        $ 9.96     $ 9.87     $ 9.44        $ 9.69 
Total ReturnB,C,D        2.78%        3.98%        3.87%    7.87%    .80%        3.90% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.12%A        1.13%        1.17%    1.18%    1.20%        1.22% 
   Expenses net of fee                                         
       waivers, if any        1.12%A        1.13%        1.17%    1.18%    1.19%        1.06% 
   Expenses net of all                                         
       reductions        1.12%A        1.13%        1.17%    1.18%    1.19%        1.06% 
   Net investment                                         
       income        5.25%A        3.98%        2.81%    2.96%    3.54%        5.86% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 498        $ 511        $ 389     $ 113     $ 75        $ 76 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

33 Semiannual Report

Financial Highlights  Class B                             
      Six months ended                                   
      April 30,           Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.95        $ 9.96        $ 9.87     $ 9.44     $ 9.69        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .234        .346        .231    .243    .298        .525 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .096    .444    (.263)        (.194) 
Total from investment                                         
   operations        .248        .338        .327    .687    .035        .331 
Distributions from net                                         
   investment income        (.228)        (.339)        (.239)    (.259)    (.286)        (.584) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.228)        (.349)        (.239)    (.259)    (.286)        (.584) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.97        $ 9.95        $ 9.96     $ 9.87     $ 9.44        $ 9.69 
Total ReturnB,C,D        2.52%        3.46%        3.38%    7.38%    .35%        3.42% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.64%A        1.64%        1.65%    1.64%    1.65%        1.66% 
   Expenses net of fee                                         
       waivers, if any        1.64%A        1.64%        1.65%    1.63%    1.64%        1.54% 
   Expenses net of all                                         
       reductions        1.64%A        1.64%        1.65%    1.63%    1.64%        1.54% 
   Net investment                                         
       income        4.73%A        3.47%        2.33%    2.50%    3.09%        5.38% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 155        $ 173        $ 184     $ 134    $ 118        $ 125 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

Semiannual Report

34

Financial Highlights Class C                             
    Six months ended                                 
      April 30,        Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.96        $ 9.97        $ 9.87     $ 9.45     $ 9.70        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .232        .341        .224    .235    .290        .516 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .107    .434    (.263)        (.184) 
Total from investment                                         
   operations        .246        .333        .331    .669    .027        .332 
Distributions from net                                         
   investment income        (.226)        (.334)        (.233)    (.251)    (.278)        (.575) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.226)        (.344)        (.233)    (.251)    (.278)        (.575) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.98        $ 9.96        $ 9.97     $ 9.87     $ 9.45        $ 9.70 
Total ReturnB,C,D        2.49%        3.40%        3.41%    7.18%    .26%        3.42% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.69%A        1.69%        1.71%    1.72%    1.73%        1.75% 
   Expenses net of fee                                         
       waivers, if any        1.69%A        1.69%        1.71%    1.71%    1.73%        1.64% 
   Expenses net of all                                         
       reductions        1.69%A        1.69%        1.71%    1.71%    1.73%        1.63% 
   Net investment                                         
       income        4.68%A        3.42%        2.27%    2.42%    3.00%        5.28% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 492        $ 539        $ 524     $ 269     $ 235        $ 278 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

35 Semiannual Report

Financial Highlights  Fidelity Floating Rate High Income Fund                     
    Six months ended                 
    April 30,    Years ended October 31,   
    2006    2005    2004    2003    2002G 
Selected Per Share Data                     
Net asset value, beginning                     
   of period    $ 9.95    $ 9.96    $ 9.87    $ 9.44    $ 9.52 
Income from Investment                     
   Operations                     
   Net investment incomeD    .274    .427    .309    .311    .040 
   Net realized and                     
       unrealized gain (loss)    .015    (.008)    .099    .450    (.084) 
Total from investment                     
   operations    .289    .419    .408    .761    (.044) 
Distributions from net                     
   investment income    (.269)    (.420)    (.320)    (.333)    (.037) 
Distributions from net                     
   realized gain          (.010)             
   Total distributions    (.269)    (.430)    (.320)    (.333)    (.037) 
Redemption fees added to                     
   paid in capitalD    F    .001    .002    .002    .001 
Net asset value, end of                     
   period    $ 9.97    $ 9.95    $ 9.96    $ 9.87    $ 9.44 
Total ReturnB,C    2.94%    4.30%    4.22%    8.20%    (.45)% 
Ratios to Average Net AssetsE                     
   Expenses before                     
       reductions    .82%A    .82%    .84%    .86%    1.15%A 
   Expenses net of fee                     
       waivers, if any    .82%A    .82%    .84%    .86%    .95%A 
   Expenses net of all                     
       reductions    82%A    .82%    .84%    .86%    .94%A 
   Net investment income .    5.55%A    4.29%    3.14%    3.27%    3.99%A 
Supplemental Data                     
   Net assets, end of period                     
       (in millions)    $ 2,743    $ 2,471    $ 1,982    $ 811    $ 18 
   Portfolio turnover rate    68%A    66%    61%    55%    77% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
F Amount represents less than $.001 per share.
G For the period September 19, 2002 (commencement of sale of shares) to October 31, 2002.

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

Semiannual Report

36

Financial Highlights Institutional Class                         
 
Six months ended                                         
    April 30,    Years ended October 31,     
    2006    2005    2004    2003    2002    2001 
Selected Per Share Data                                                 
Net asset value,                                                 
   beginning of period .        $ 9.95        $ 9.96        $ 9.86        $ 9.44        $ 9.69        $ 9.94 
Income from Investment                                                 
   Operations                                                 
   Net investment                                                 
       incomeD        .273        .424        .304        .312        .365        .590 
   Net realized and un                                                 
       realized gain (loss)        .005        (.007)        .110        .436        (.262)        (.193) 
Total from investment                                                 
   operations        .278        .417        .414        .748        .103        .397 
Distributions from net                                                 
   investment income        (.268)        (.418)        (.316)        (.330)        (.354)        (.650) 
Distributions from net                                                 
   realized gain                  (.010)                                 
   Total distributions        (.268)        (.428)        (.316)        (.330)        (.354)        (.650) 
Redemption fees added                                                 
   to paid in capitalD        F        .001        .002        .002        .001        .003 
Net asset value, end of                                                 
   period        $ 9.96        $ 9.95        $ 9.96        $ 9.86        $ 9.44        $ 9.69 
Total ReturnB,C        2.82%        4.27%        4.29%        8.06%        1.06%        4.11% 
Ratios to Average Net AssetsE                                                 
   Expenses before                                                 
       reductions        .85%A        .85%        .87%        .90%        .94%        1.02% 
   Expenses net of fee                                                 
       waivers, if any        .85%A        .85%        .87%        .89%        .94%        .87% 
   Expenses net of all                                                 
       reductions        .84%A        .85%        .87%        .89%        .93%        .87% 
   Net investment                                                 
       income        5.53%A        4.26%        3.11%        3.24%        3.79%        6.05% 
Supplemental Data                                                 
   Net assets, end of                                                 
       period (in millions)        $ 290        $ 285        $ 182        $ 36        $ 18        $ 7 
   Portfolio turnover rate        68%A        66%        61%        55%        77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
F Amount represents less than $.001 per share.

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

37 Semiannual Report

Notes to Financial Statements

For the period ended April 30, 2006
(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Advisor Floating Rate High Income Fund (the fund) is a fund of Fidelity Advisor Series II (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open end management investment company organized as a Massachusetts business trust.

The fund offers Class A, Class T, Class B, Class C, Fidelity Floating Rate High Income, and Institutional Class shares, each of which has equal rights as to assets and voting privi leges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain ex pense reductions also differ by class.

The fund may invest in affiliated money market central funds (Money Market Central Funds), which are open end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require manage ment to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by indepen dent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accor dance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Invest ments in open end mutual funds are valued at their closing net asset value each business day. Short term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Semiannual Report

38

1. Significant Accounting Policies continued

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The fund earns certain fees in connection with its floating rate loan purchasing activites. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Income in the accompanying financial statements.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each fund in the trust.

Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.

Dividends are declared daily and paid monthly from net investment income. Distribu tions from realized gains, if any, are 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 generally accepted accounting principles.

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

Book tax differences are primarily due to market discount, capital loss carryforwards and losses deferred due to wash sales.

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

Unrealized appreciation        $ 30,909 
Unrealized depreciation        (3,326) 
Net unrealized appreciation (depreciation)        $ 27,583 
Cost for federal income tax purposes        $ 4,471,776 

Short Term Trading (Redemption) Fees. Shares held in the fund less than 60 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the fund and accounted for as an addition to paid in capital.

39 Semiannual Report

Notes to Financial Statements  continued 
(Amounts in thousands except ratios)     
 
2. Operating Policies.     

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

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

Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The fund may be contrac tually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

3. Purchases and Sales of Investments.

Purchases and sales of securities (including principal repayments of floating rate loans), other than short term securities, aggregated $1,472,312 and $1,288,547, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment manage ment 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 .55% of the fund’s average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR.

Semiannual Report

40

4. Fees and Other Transactions with Affiliates  continued 
Management Fee - continued     

The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .68% of the fund’s average net assets.

Distribution and Service Plan. In accordance with Rule 12b 1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees 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 and the total amounts paid to and retained by FDC were as follows:

    Distribution    Service        Paid to        Retained 
    Fee    Fee        FDC        by FDC 
Class A    0%    .15%        $ 230        $ 4 
Class T    0%    .25%        639        4 
Class B    .55%    .15%        575        453 
Class C    .55%    .25%        2,066        532 
                $ 3,510        $ 993 

Sales Load. FDC receives a front end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermedi aries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3.50% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:     
 
        Retained 
        by FDC 
Class A        $ 64 
Class T        23 
Class B*        193 
Class C*        127 
        $ 407 

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

41 Semiannual Report

Notes to Financial Statements continued     
(Amounts in thousands except ratios)     
 
4. Fees and Other Transactions with Affiliates  continued 

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Fidelity Floating Rate High Income Fund. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Fidelity Floating Rate High Income Fund shares. FIIOC and FSC receive account fees and asset based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:

            % of 
            Average 
        Amount    Net Assets 
Class A        $ 279    .18* 
Class T        371    .15* 
Class B        172    .21* 
Class C        419    .16* 
Fidelity Floating Rate High Income Fund        1,212    .09* 
Institutional Class        173    .12* 
        $ 2,626     
 
* Annualized             

Accounting Fees. FSC maintains the fund’s accounting records. The fee is based on the level of average net assets for the month.

Affiliated Central Funds. The fund may invest in Money Market Central Funds which seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

The Money Market Central Funds do not pay a management fee.

5. Committed Line of Credit.

The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the “line of credit”) to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounts to $4 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

42

6. Bank Borrowings.

The fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank’s base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $16,971. The weighted average interest rate was 4.25% . At period end, there were no bank borrowings outstanding.

7. Expense Reductions.

Through arrangements with the fund’s custodian credits realized as a result of unin vested cash balances were used to reduce the fund’s expenses. During the period, these credits reduced the fund’s custody expense by $47, respectively. During the period, credits reduced each class’ transfer agent expense as noted in the table below.

      Transfer Agent 
    expense reduction 
Class C        1 
Fidelity Floating Rate High Income Fund        2 
        $ 3 
 
8. 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.

43 Semiannual Report

Notes to Financial Statements    continued         
(Amounts in thousands except ratios)                 
 
9. Distributions to Shareholders.         
 
Distributions to shareholders of each class were as follows:         
 
        Six months ended        Year ended 
        April 30,        October 31, 
        2006        2005 
From net investment income                 
Class A        $ 7,907        $ 12,889 
Class T        13,022        18,576 
Class B        3,763        6,130 
Class C        11,701        18,615 
Fidelity Floating Rate High Income Fund        69,653        99,532 
Institutional Class        7,757        10,451 
Total        $ 113,803        $ 166,193 
From net realized gain                 
Class A        $ —        $ 311 
Class T                412 
Class B                184 
Class C                543 
Fidelity Floating Rate High Income Fund                2,131 
Institutional Class                204 
Total        $ —        $ 3,785 

Semiannual Report

44

10. Share Transactions.                     
 
Transactions for each class of shares were as follows:
 
               
    Shares    Dollars 
    Six months ended    Year ended     Six months ended        Year ended 
    April 30,    October 31,        April 30,        October 31, 
    2006    2005        2006        2005 
Class A                         
Shares sold    6,078    17,372        $ 60,628        $ 173,298 
Reinvestment of                         
   distributions    578    972        5,763        9,697 
Shares redeemed    (7,484)    (17,054)        (74,656)        (170,023) 
Net increase (decrease)    (828)    1,290        $ (8,265)        $ 12,972 
Class T                         
Shares sold    9,483    30,403        $ 94,487        $ 302,938 
Reinvestment of                         
   distributions    1,169    1,707        11,651        17,036 
Shares redeemed    (12,079)    (19,747)        (120,387)        (196,695) 
Net increase (decrease)    (1,427)    12,363        $ (14,249)        $ 123,279 
Class B                         
Shares sold    701    3,269        $ 6,991        $ 32,570 
Reinvestment of                         
   distributions    279    468        2,777        4,667 
Shares redeemed    (2,814)    (4,746)        (28,041)        (47,274) 
Net increase (decrease)     (1,834)    (1,009)        $ (18,273)        $ (10,037) 
Class C                         
Shares sold    4,189    18,049        $ 41,774        $ 180,076 
Reinvestment of                         
   distributions    797    1,287        7,949        12,828 
Shares redeemed    (9,793)    (17,764)        (97,674)        (177,066) 
Net increase (decrease)    (4,807)    1,572        $ (47,951)        $ 15,838 
Fidelity Floating Rate                         
   High Income Fund                         
Shares sold    69,233    151,558        $ 689,998        $ 1,511,153 
Reinvestment of                         
   distributions    5,969    8,742        59,494        87,090 
Shares redeemed    (48,259)    (110,895)        (480,835)        (1,103,883) 
Net increase (decrease)    26,943    49,405        $ 268,657        $ 494,360 
Institutional Class                         
Shares sold    7,118    21,744        $ 70,914        $ 216,646 
Reinvestment of                         
   distributions    342    444        3,407        4,394 
Shares redeemed    (7,008)    (11,790)        (69,828)        (117,356) 
Net increase (decrease)    452    10,398        $ 4,493        $ 103,684 

45 Semiannual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Advisor Series II and Shareholders of Fidelity Advisor Floating Rate High Income Fund:

We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series II, includ ing the schedule of investments as of April 30, 2006, and the related statement of operations for the six months then ended, the statement of changes in net assets for the six months then ended April 30, 2006 and for the year ended October 31, 2005, and the financial highlights for the six months ended April 30, 2006 and each of the five years in the period ended October 31, 2005. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures in cluded confirmation of securities owned as of April 30, 2006, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of April 30, 2006, the results of its operations for the six months then ended, the changes in its net assets for the six months then ended April 30, 2006 and for the year ended October 31, 2005, and its financial highlights for the six months ended April 30, 2006 and each of the five years in the period ended October 31, 2005, in conform ity with accounting principles generally accepted in the United States of America.

  /s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 20, 2006

Semiannual Report 46

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Advisor Floating Rate High Income Fund

On January 19, 2006, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve a general research services agreement (the Agreement) between FMR, FMR Co., Inc. (FMRC), Fidelity Investments Money Manage ment, Inc. (FIMM), and Fidelity Research & Analysis Company (FRAC) (together, the Investment Advisers) for the fund, effective January 20, 2006, pursuant to which FRAC may provide general research and investment advisory support services to FMRC and FIMM. The Board considered that it has approved previously various sub advisory agreements for the fund with affiliates of FMR that allow FMR to obtain research, non discretionary advice, or discretionary portfolio management at no additional expense to the fund. The Board, assisted by the advice of fund counsel and independent Trustees’ counsel, considered a broad range of information and determined that it would be beneficial for the fund to access the research and investment advisory support services supplied by FRAC at no additional expense to the fund.

The Board reached this determination in part because the new arrangement will involve no changes in (i) the contractual terms of and fees payable under the fund’s manage ment contract or sub advisory agreements; (ii) the investment process or strategies employed in the management of the fund’s assets; (iii) the nature or level of services provided under the fund’s management contract or sub advisory agreements; (iv) the day to day management of the fund or the persons primarily responsible for such man agement; or (v) the ultimate control or beneficial ownership of FMR, FMRC, or FIMM. The Board also considered that the establishment of the Agreement would not necessi tate prior shareholder approval of the Agreement or result in an assignment and termination of the fund’s management contract or sub advisory agreements under the Investment Company Act of 1940.

Because the Board was approving an arrangement with FRAC under which the fund will not bear any additional management fees or expenses and under which the fund’s portfolio manager would not change, it did not consider the fund’s investment perfor mance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.

In connection with its future renewal of the fund’s management contract and sub advisory agreements, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund’s management fee and total expenses; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders; and (iv) whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have

Semiannual Report

48

appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund’s Agreement is fair and reasonable, and that the fund’s Agreement should be approved.

49 Semiannual Report

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50

51 Semiannual Report

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53 Semiannual Report

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54

Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York
New York, NY

AFRI-USAN-0606
1.784878.103


  Fidelity
Floating Rate High Income
Fund
(A Class of Fidelity® Advisor
Floating Rate High Income Fund)

Semiannual Report
April 30, 2006


Contents         
 
 
Chairman’s Message    3    Ned Johnson’s message to shareholders. 
 
Shareholder Expense    4    An example of shareholder expenses. 
Example         
 
Investment Changes    6    A summary of major shifts in the fund’s 
        investments over the past six months. 
 
Investments    8    A complete list of the fund’s investments 
        with their market values. 
 
Financial Statements    28    Statements of assets and liabilities, 
        operations, and changes in net assets, 
        as well as financial highlights. 
 
Notes    38    Notes to the financial statements. 
 
Report of Independent    46     
Registered Public         
Accounting Firm         
 
Board Approval of    48     
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 www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commis
sion’s (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of
the proxy voting guidelines.

Standard & Poor’s, S&P and S&P 500 are registered service marks of The McGraw Hill Companies,

Inc. and have been licensed for use by Fidelity Distributors Corporation.

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


All other marks appearing herein are registered or unregistered trademarks or service marks

of FMR Corp. or an affiliated company.

  This report and the financial statements contained herein are submitted for the general information
of the shareholders of the fund. This report is not authorized for distribution to prospective investors
in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third
quarters of each fiscal year on Form N Q. Forms N Q are available on the SEC’s web site at
http://www.sec.gov. A fund’s Forms N Q may be reviewed and copied at the SEC’s Public Refer
ence 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 hold
ings, view the most recent quarterly holdings report, semiannual report, or annual report on
Fidelity’s web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

2

Chairman’s Message

(photograph of Edward C. Johnson 3d)

Dear Shareholder:

Although many securities markets made gains in early 2006, there is only one certainty when it comes to investing: There is no sure thing. There are, however, a number of time tested, fundamental investment principles that can put the historical odds in your favor.

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

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

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

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

Sincerely,

/s/ Edward C. Johnson 3d

Edward C. Johnson 3d

3 Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, 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 (November 1, 2005 to April 30, 2006).

Actual Expenses

The first line of the table below 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 esti mate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.

Hypothetical Example for Comparison Purposes

The second line of the table below 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.

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4

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.

                        Expenses Paid 
        Beginning        Ending        During Period* 
        Account Value        Account Value    November 1, 2005 
    November 1, 2005        April 30, 2006        to April 30, 2006 
Class A                         
Actual        $ 1,000.00        $ 1,028.10        $ 5.33 
HypotheticalA        $ 1,000.00        $ 1,019.54        $ 5.31 
Class T                         
Actual        $ 1,000.00        $ 1,027.80        $ 5.63 
HypotheticalA        $ 1,000.00        $ 1,019.24        $ 5.61 
Class B                         
Actual        $ 1,000.00        $ 1,025.20        $ 8.24 
HypotheticalA        $ 1,000.00        $ 1,016.66        $ 8.20 
Class C                         
Actual        $ 1,000.00        $ 1,024.90        $ 8.48 
HypotheticalA        $ 1,000.00        $ 1,016.41        $ 8.45 
Fidelity Floating Rate High                         
    Income Fund                         
Actual        $ 1,000.00        $ 1,029.40        $ 4.13 
HypotheticalA        $ 1,000.00        $ 1,020.73        $ 4.11 
Institutional Class                         
Actual        $ 1,000.00        $ 1,028.20        $ 4.27 
HypotheticalA        $ 1,000.00        $ 1,020.58        $ 4.26 
 
A 5% return per year before expenses                 

* Expenses are equal to each Class’ annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one half year period).

    Annualized 
    Expense Ratio 
Class A    1.06% 
Class T    1.12% 
Class B    1.64% 
Class C    1.69% 
Fidelity Floating Rate High Income Fund    82% 
Institutional Class    85% 

5 Semiannual Report

Investment Changes         
 
 
 Top Five Holdings as of April 30, 2006         
(by issuer, excluding cash equivalents)    % of fund’s    % of fund’s net assets 
    net assets    6 months ago 
NRG Energy, Inc.    2.5    0.4 
Charter Communications Operating LLC    2.5    2.8 
Qwest Corp.    2.2    2.0 
Georgia Pacific Corp.    2.2    0.5 
CSC Holdings, Inc.    2.2    0.3 
    11.6     
 
Top Five Market Sectors as of April 30, 2006 
   
    % of fund’s    % of fund’s net assets 
    net assets    6 months ago 
Cable TV    12.5    12.8 
Healthcare    7.5    7.3 
Telecommunications    7.5    8.1 
Energy    5.8    7.1 
Electric Utilities    5.1    4.5 


We have used ratings from Moody’s® Investors Services, Inc. Where Moody’s ratings are not available, we have used S&P® ratings.

Semiannual Report 6


7 Semiannual Report

Investments April 30,  2006         
Showing Percentage of Net Assets                 
 
 Floating Rate Loans (d) 76.3%                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Aerospace – 0.4%                 
DRS Technologies, Inc. term loan 6.444% 1/31/13 (c)                        $ 1,730        $ 1,747 
Mid-Western Aircraft Systems, Inc. Tranche B, term loan                 
   7.3183% 12/31/11 (c)        14,074        14,267 
Transdigm, Inc. term loan:                 
   7.1513% 7/22/10 (c)        1,564        1,583 
   10.22% 11/10/11 (c)        2,000        2,015 
                19,612 
Air Transportation – 0.9%                 
Delta Air Lines, Inc. Tranche B, term loan 11.01%                 
   3/16/08 (c)        3,290        3,380 
UAL Corp.:                 
   Tranche B, term loan 8.625% 2/1/12 (c)        21,000        21,315 
   Tranche DD, term loan 8.75% 2/1/12 (c)        3,000        3,045 
US Airways Group, Inc. term loan 8.5% 3/31/11 (c)        11,000        11,138 
                38,878 
Automotive 2.7%                 
Accuride Corp. term loan 7.1875% 1/31/12 (c)        3,277        3,314 
Advance Auto Parts, Inc. Tranche B, term loan 6.3727%                 
   9/30/10 (c)        2,974        2,981 
AM General LLC Tranche B1, term loan 9.5459%                 
   11/1/11 (c)        1,750        1,789 
Dana Corp. term loan 7.22% 4/13/08 (c)        11,120        11,190 
Delphi Corp.:                 
   revolver loan 11.75% 6/18/09 (c)(e)        2,000        2,070 
   Tranche B, term loan:                 
       7.375% 10/8/07 (c)        14,690        14,910 
       13.25% 6/14/11 (c)        16,998        17,677 
Enersys Capital, Inc. term loan 6.8232% 3/17/11 (c)        983        994 
Federal-Mogul Financing Trust term loan 6.8125%                 
   12/9/06 (c)        8,700        8,754 
Goodyear Tire & Rubber Co. Tranche 1, Credit-Linked                 
   Deposit 6.4% 4/30/10 (c)        19,820        19,993 
Mark IV Industries, Inc. Tranche B, term loan 7.9655%                 
   6/23/11 (c)        2,937        2,970 
Rexnord Corp. term loan 7.1056% 12/31/11 (c)        2,678        2,722 
Tenneco Auto, Inc.:                 
   Tranche B, term loan 7.02% 12/12/10 (c)        3,042        3,087 
   Tranche B1, Credit-Linked Deposit 7.0756%                 
       12/12/10 (c)        1,336        1,356 
Travelcenters of America, Inc. Tranche B, term loan                 
   6.6199% 12/1/11 (c)        7,554        7,591 

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

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8

 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Automotive continued                 
TRW Automotive Holdings Corp.:                 
   Tranche B, term loan 6.25% 6/30/12 (c)        $ 2,283        $ 2,289 
   Tranche B2, term loan 6.125% 6/30/12 (c)        1,995        2,000 
   Tranche E, term loan 6% 10/31/10 (c)        14,813        14,850 
                120,537 
Broadcasting – 1.4%                 
Emmis Operating Co. Tranche B, term loan 6.7238%                 
   11/10/11 (c)        9,490        9,538 
Entravision Communication Corp. term loan 6.49%                 
   3/29/13 (c)        5,970        6,007 
Gray Television, Inc.:                 
   Tranche B, term loan 6.49% 11/22/12 (c)        8,152        8,193 
   Tranche B2, term loan 6.48% 5/22/13 (c)        2,494        2,506 
Montecito Broadcast Group LLC Tranche 1, term loan                 
   7.7231% 1/27/13 (c)        1,995        2,025 
Nexstar Broadcasting, Inc. Tranche B, term loan 6.28%                 
   10/1/12 (c)        14,483        14,519 
Paxson Communications Corp. term loan 8.3183%                 
   1/15/12 (c)        6,000        6,120 
Raycom TV Broadcasting, Inc. Tranche B, term loan 6.5%                 
   8/28/13 (c)        5,984        5,999 
Spanish Broadcasting System, Inc. Tranche 1, term loan                 
   6.73% 6/10/12 (c)        7,920        7,970 
                62,877 
Building Materials – 0.8%                 
Contech Construction Products, Inc., Ohio term loan                 
   6.9267% 2/9/13 (c)        3,750        3,797 
Goodman Global Holdings, Inc. Tranche C, term loan                 
   6.625% 12/23/11 (c)        5,813        5,856 
Masonite International Corp. term loan 7.106%                 
   4/5/13 (c)        16,335        16,192 
Nortek Holdings, Inc. Tranche B, term loan 6.9504%                 
   8/27/11 (c)        11,820        11,894 
                37,739 
Cable TV – 10.0%                 
Adelphia Communications Corp. Tranche B, term loan                 
   6.9375% 8/7/06 (c)        30,350        30,502 
Charter Communications Operating LLC Tranche B, term                 
   loan 7.755% 4/28/13 (c)        110,000        110,401 
Cox Communications, Inc. term loan 5.87% 12/8/09 (c)        21,000        21,000 
CSC Holdings, Inc. Tranche B, term loan 6.6643%                 
   3/29/13 (c)        80,000        80,200 

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

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Cable TV – continued                 
DIRECTV Holdings LLC Tranche B, term loan 6.4225%                 
   4/13/13 (c)        $ 24,347        $ 24,560 
Insight Midwest Holdings LLC:                 
   Tranche A, term loan 6.25% 6/30/09 (c)        21,503        21,530 
   Tranche C, term loan 7% 12/31/09 (c)        14,670        14,798 
Liberty Cablevision of Puerto Rico LTC term loan 7.09%                 
   3/1/13 (c)        5,000        5,038 
Mediacom Broadband LLC/Mediacom Broadband Corp.                 
   Tranche C, term loan 6.7861% 2/1/14 (c)        3,930        3,930 
Mediacom LLC Tranche B, term loan 7.0671%                 
   3/31/13 (c)        9,825        9,825 
NTL Cable PLC term loan 10.3313% 3/3/07 (c)        17,000        17,000 
PanAmSat Corp. Tranche B1, term loan 6.8998%                 
   8/20/11 (c)        52,334        52,857 
Rainbow Media Holdings, Inc. Tranche B, term loan                 
   7.5625% 3/31/12 (c)        6,935        7,004 
San Juan Cable, Inc. Tranche 1, term loan 6.84%                 
   10/31/12 (c)        5,985        6,052 
UPC Broadband Holding BV Tranche H2, term loan                 
   7.33% 9/30/12 (c)        33,000        33,000 
UPC Distribution Holdings BV Tranche F, term loan                 
   7.83% 12/31/11 (c)        11,008        11,008 
                448,705 
Capital Goods 1.5%                 
AGCO Corp. term loan 6.7294% 7/3/09 (c)        9,286        9,356 
Amsted Industries, Inc.:                 
   term loan 7.0023% 4/5/13 (c)        4,889        4,950 
   Tranche DD, term loan 4/5/13 (e)        3,111        3,096 
Chart Industries, Inc. Tranche B, term loan 6.625%                 
   10/17/12 (c)        3,617        3,676 
Dresser, Inc. Tranche C, term loan 7.5% 4/10/09 (c)        1,407        1,432 
Flowserve Corp. term loan 6.6582% 8/10/12 (c)        11,362        11,504 
Hexcel Corp. Tranche B, term loan 6.7253% 3/1/12 (c)        5,057        5,101 
Invensys International Holding Ltd.:                 
   Tranche A, term loan 7.8413% 3/5/09 (c)        1,927        1,942 
   Tranche B1, term loan 8.5013% 9/4/09 (c)        3,049        3,079 
Mueller Group, Inc. term loan 7.263% 10/3/12 (c)        8,060        8,170 
NACCO Materials Handling Group, Inc. term loan                 
   3/21/13 (e)        2,000        2,015 

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

Semiannual Report

10

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Capital Goods – continued                 
Terex Corp.:                 
   term loan 7.7594% 12/31/09 (c)        $ 1,489        $ 1,503 
   Tranche B, term loan 7.2594% 7/3/09 (c)        7,309        7,382 
Walter Industries, Inc. term loan 6.885% 10/3/12 (c)        4,692        4,745 
                67,951 
Chemicals – 3.9%                 
Basell USA, Inc.:                 
   Tranche B2, term loan 7.31% 8/1/13 (c)        1,730        1,760 
   Tranche C2, term loan 8% 8/1/14 (c)        1,730        1,760 
Brenntag AG Tranche B, term loan 7.44% 1/18/14 (c) .        4,000        4,055 
Celanese AG Credit-Linked Deposit 7.3375% 4/6/09 (c)        6,000        6,090 
Celanese Holding LLC term loan 6.9272% 4/6/11 (c)        39,652        40,198 
Hercules, Inc. Tranche B, term loan 6.526% 10/8/10 (c)        5,397        5,424 
Huntsman International LLC Tranche B, term loan                 
   6.6794% 8/16/12 (c)        36,631        36,677 
INEOS US Finance:                 
   Tranche B, term loan 7.3392% 1/31/13 (c)        9,825        9,954 
   Tranche C, term loan 7.8392% 1/31/14 (c)        9,825        9,954 
Innophos, Inc. Tranche B, term loan 7.2272% 8/13/10 (c)        3,788        3,826 
ISP Chemco, Inc. Tranche B, term loan 6.5% 2/16/13 (c)        8,000        8,040 
Mosaic Co. Tranche B, term loan 6.1934% 2/21/12 (c)        8,705        8,748 
Nalco Co. Tranche B, term loan 6.6451% 11/4/10 (c) .        18,365        18,549 
Rockwood Specialties Group, Inc. Tranche E, term loan                 
   7.1256% 7/30/12 (c)        14,553        14,699 
Solutia, Inc. Tranche B, term loan 8.33% 3/31/07 (c)        6,690        6,749 
                176,483 
Consumer Products – 1.2%                 
ACCO Brands Corp. Tranche B, term loan 6.6744%                 
   8/17/12 (c)        1,963        1,972 
American Achievement Corp. Tranche B, term loan                 
   7.3435% 3/25/11 (c)        2,413        2,449 
Central Garden & Pet Co. Tranche B, term loan 6.5217%                 
   9/12/12 (c)        5,000        5,025 
Jarden Corp.:                 
   term loan 6.99% 1/24/12 (c)        6,257        6,312 
   Tranche B2, term loan 6.74% 1/24/12 (c)        3,274        3,295 
Jostens IH Corp. Tranche C, term loan 7.3181%                 
   10/4/11 (c)        13,843        14,016 
NPI Merger Corp. term loan 7.0225% 4/21/13 (c)        5,800        5,851 
Revlon Consumer Products Corp. term loan 10.8514%                 
   7/9/10 (c)        6,750        6,927 

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

11 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Consumer Products – continued                 
Sealy Mattress Co. Tranche D, term loan 6.6028%                 
   4/6/12 (c)        $ 6,681        $ 6,739 
Weight Watchers International, Inc.:                 
   Tranche B, term loan 6.6461% 3/31/10 (c)        1,205        1,217 
   Tranche C, term loan 6.5769% 3/31/10 (c)        1,970        1,985 
                55,788 
Containers – 1.6%                 
Berry Plastics Corp. term loan 6.84% 12/2/11 (c)        2,228        2,242 
BWAY Corp. Tranche B term loan 6.8125% 6/30/11 (c)        4,628        4,675 
Covalence Specialty Materials Corp. Tranche B, term                 
   loan 6.6875% 2/16/13 (c)        6,800        6,860 
Crown Holdings, Inc. Tranche B, term loan 6.44%                 
   11/15/12 (c)        4,320        4,336 
Graham Packaging Holdings Co.:                 
   Tranche B, term loan 7.375% 10/4/11 (c)        2,670        2,693 
   Tranche B1, term loan 7.1079% 10/4/11 (c)        16,836        16,983 
Intertape Polymer, Inc. Tranche B, term loan 7.1575%                 
   7/28/11 (c)        6,893        6,961 
Owens-Illinois Group, Inc.:                 
   Tranche A1, term loan 6.61% 4/1/07 (c)        7,761        7,752 
   Tranche B1, term loan 6.71% 4/1/08 (c)        5,631        5,624 
Owens-Illinois, Inc. Tranche C1, term loan 6.78%                 
   4/1/08 (c)        7,360        7,379 
Solo Cup Co. Tranche B1, term loan 7.5316%                 
   2/27/11 (c)        7,333        7,415 
                72,920 
Diversified Financial Services – 1.4%                 
Ameritrade Holding Corp. Tranche B, term loan 6.49%                 
   1/23/13 (c)        20,000        20,050 
AWAS Aviation Acquisitions Ltd. Tranche 1, term loan                 
   6.75% 3/15/13 (c)        23,000        22,770 
Global Cash Access LLC/Global Cash Access Finance                 
   Corp. Tranche B, term loan 6.75% 3/10/10 (c)        5,694        5,744 
LPL Holdings, Inc. Tranche B, term loan 8.1962%                 
   6/28/13 (c)        10,973        11,110 
Newkirk Master LP Tranche B, term loan 7.3502%                 
   8/11/08 (c)        4,728        4,757 
                64,431 
Diversified Media – 0.7%                 
Adams Outdoor Advertising Ltd. term loan 7.0876%                 
   10/18/12 (c)        2,908        2,948 
LBI Media, Inc. Tranche B, term loan 6.7631% 3/31/12 (c)        2,300        2,306 

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

Semiannual Report

12

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
        Amount (000s)    (000s) 
Diversified Media – continued                 
NextMedia Operating, Inc. Tranche 1, term loan                 
   6.8816% 11/18/12 (c)        $ 4,358        $ 4,402 
Quebecor Media, Inc. Tranche B, term loan 7.0683%                 
   1/17/13 (c)        4,988        5,050 
R.H. Donnelley Corp.:                 
   Tranche A4, term loan 6.2738% 12/31/09 (c)        1,111        1,111 
   Tranche D1, term loan 6.437% 6/30/11 (c)        9,965        9,965 
Thomson Media, Inc. Tranche B1, term loan 7.21%                 
   11/8/11 (c)        3,411        3,453 
                29,235 
Electric Utilities – 4.3%                 
AES Corp. term loan 6.22% 8/10/11 (c)        5,429        5,469 
Allegheny Energy Supply Co. LLC term loan 6.4138%                 
   3/8/11 (c)        29,049        29,049 
Calpine Generating Co. LLC Tranche 1, term loan                 
   8.5756% 4/1/09 (c)        16,350        16,963 
Dynegy Holdings, Inc. term loan 6.71% 4/19/12 (c)        10,000        10,038 
LSP Gen Finance Co. LLC Tranche B1, term loan 8.5%                 
   4/13/13 (c)(e)        8,650        8,693 
Midwest Generation LLC term loan 6.6971%                 
   4/27/11 (c)        903        908 
Mirant North America LLC/Mirant North America                 
   Finance Corp. term loan 6.5988% 1/3/13 (c)        15,970        16,090 
NRG Energy, Inc.:                 
   Credit-Linked Deposit 6.9794% 2/1/13 (c)        20,566        20,746 
   term loan 6.82% 2/1/13 (c)        81,434        82,146 
Primary Energy Finance LLC term loan 6.9794%                 
   8/24/12 (c)        1,990        1,995 
                192,097 
Energy – 4.1%                 
ATP Oil & Gas Corp. term loan 10.4707% 4/14/10 (c)        1,980        2,030 
Boart Longyear Holdings, Inc. Tranche 1, term loan                 
   7.98% 7/28/12 (c)        8,955        9,067 
Buckeye Pipe Line Co. term loan 7.3104% 12/17/11 (c)        2,817        2,831 
Citgo Petroleum Corp. Tranche B, term loan 6.2125%                 
   11/15/12 (c)        13,117        13,134 
Coffeyville Resources LLC:                 
   Credit-Linked Deposit 7.3% 7/8/11 (c)        4,800        4,848 
   Tranche B1, term loan 7.5034% 7/8/12 (c)        7,146        7,218 
Dresser-Rand Group, Inc. Tranche B, term loan 6.9235%                 
   10/29/11 (c)        4,095        4,151 

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

13 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Energy – continued                 
El Paso Corp.:                 
   Credit-Linked Deposit 7.52% 11/22/09 (c)        $ 32,438        $ 32,843 
   term loan 7.75% 11/22/09 (c)        42,884        43,420 
EPCO Holdings, Inc. Tranche C, term loan 7.0238%                 
   8/16/10 (c)        12,870        13,031 
Lyondell-Citgo Refining LP term loan 6.9794%                 
   5/21/07 (c)        7,860        7,899 
MEG Energy Corp.:                 
   term loan 7% 4/3/13 (c)        2,500        2,522 
   Tranche DD, term loan 4/3/13 (e)        2,500        2,503 
Petroleum Geo-Services ASA term loan 7.48%                 
   12/16/12 (c)        6,983        7,017 
Targa Resources, Inc./Targa Resources Finance Corp.:                 
   Credit-Linked Deposit 7.1044% 10/31/12 (c)        3,290        3,323 
   term loan 7.2565% 10/31/12 (c)        13,641        13,778 
Universal Compression, Inc. term loan 6.48%                 
   2/15/12 (c)        9,253        9,334 
Vulcan/Plains Resources, Inc. term loan 6.25%                 
   8/12/11 (c)        2,966        2,985 
                181,934 
Entertainment/Film 2.0%                 
Alliance Atlantis Communications, Inc. Tranche C, term                 
   loan 6.4794% 12/19/11 (c)        3,960        3,985 
AMC Entertainment, Inc. term loan 7.1144%                 
   1/26/13 (c)        12,479        12,572 
Cinemark USA, Inc. Tranche C, term loan 6.53%                 
   3/31/11 (c)        10,731        10,825 
MGM Holdings II, Inc. Tranche B, term loan 7.2294%                 
   4/8/12 (c)        34,000        34,298 
Regal Cinemas Corp. term loan 6.4794% 11/10/10 (c)        27,476        27,717 
                89,397 
Environmental – 1.3%                 
Allied Waste Industries, Inc.:                 
   term loan 6.7593% 1/15/12 (c)        38,779        38,876 
   Tranche A, Credit-Linked Deposit 6.7734%                 
      1/15/12 (c)        15,056        15,093 
Waste Services, Inc. Tranche C, term loan 8.1733%                 
   3/31/11 (c)        1,980        2,012 
                55,981 
Food and Drug Retail – 0.7%                 
Jean Coutu Group (PJC) USA, Inc. Tranche B, term loan                 
   7.6247% 7/30/11 (c)        31,463        31,778 

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

Semiannual Report

14

Floating Rate Loans (d) continued                     
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Food/Beverage/Tobacco – 1.6%                     
Bolthouse Farms, Inc. Tranche 1, term loan 7.37%                     
   12/16/12 (c)            $ 3,990        $ 4,050 
Bumble Bee Foods LLC Tranche B, term loan 6.9176%                     
   4/20/12 (c)            3,000        3,034 
Commonwealth Brands, Inc. term loan 7% 12/22/12 (c)            7,913        8,002 
Constellation Brands, Inc. Tranche B, term loan 6.3613%                     
   11/30/11 (c)            33,109        33,109 
Del Monte Corp. Tranche B, term loan 6.5% 2/8/12 (c)             1,782        1,789 
Doane Pet Care Co. term loan 7.1747% 10/24/12 (c)            6,776        6,784 
Dr Pepper/Seven Up Bottling Group, Inc. Tranche B,                     
   term loan 6.9294% 12/19/10 (c)            8,755        8,853 
Michael Foods, Inc. Tranche B, term loan 6.698%                     
   11/21/10 (c)            4,548        4,594 
Reddy Ice Group, Inc. term loan 6.7947% 8/12/12 (c)            2,000        2,015 
                    72,230 
Gaming – 3.0%                     
Alliance Gaming Corp. term loan 8.18% 9/5/09 (c)            3,693        3,730 
Ameristar Casinos, Inc. term loan 6.5% 11/10/12 (c)            4,030        4,065 
BLB Worldwide Holdings, Inc. Tranche 1, term loan                     
   6.8177% 6/30/12 (c)            7,950        8,049 
Boyd Gaming Corp. term loan 6.5445% 6/30/11 (c)            13,279        13,395 
Choctaw Resort Development Enterprise term loan 6.94%                     
   11/4/11 (c)            2,233        2,253 
Green Valley Ranch Gaming LLC term loan 6.9794%                     
   12/17/11 (c)            3,688        3,721 
Herbst Gaming, Inc. term loan 7.1087% 1/7/11 (c)            3,564        3,595 
Isle Capri Black Hawk LLC / Isle Capri Black Hawk                     
   Capital term loan 6.8356% 10/24/11 (c)            498        500 
MGM MIRAGE Tranche A, term loan 6.2838%                     
   4/25/10 (c)            4,000        4,010 
Motor City Casino Tranche B, term loan 6.924%                     
   7/29/12 (c)            3,056        3,063 
Penn National Gaming, Inc. Tranche B, term loan                     
   6.6617% 7/31/12 (c)            8,955        9,056 
Pinnacle Entertainment, Inc. Tranche B, term loan 6.93%                     
   12/14/11 (c)            5,350        5,377 
Trump Entertainment Resorts Holdings LP Tranche B, term                     
   loan 7.17% 5/20/12 (c)(e)            14,540        14,704 
Venetian Casino Resort LLC Tranche B, term loan 6.73%                     
   6/15/11 (c)            24,200        24,200 
Venetian Macau Ltd. Tranche B, term loan:                     
   4/7/12 (e)            7,000        7,000 
   7.83% 4/7/13 (c)            14,000        14,140 

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

15 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Gaming – continued                 
Wynn Las Vegas LLC term loan 7.085% 12/14/11 (c)        $ 12,650        $ 12,777 
                133,635 
Healthcare 7.5%                 
Accellent, Inc. term loan 6.8% 11/22/12 (c)        6,065        6,088 
AmeriPath, Inc. Tranche B, term loan 6.83%                 
   10/31/12 (c)        3,000        3,030 
AMR HoldCo, Inc./EmCare HoldCo, Inc. term loan                 
   6.8374% 2/7/12 (c)        7,089        7,178 
Angiotech Pharmaceuticals, Inc. term loan 6.45%                 
   3/23/13 (c)        4,000        4,010 
Community Health Systems, Inc. term loan 6.56%                 
   8/19/11 (c)        38,026        38,264 
Concentra Operating Corp. term loan 6.69%                 
   9/30/11 (c)        7,478        7,534 
CONMED Corp. Tranche B, term loan 6.68%                 
   4/12/13 (c)        3,000        3,030 
CRC Health Group, Inc. term loan 7.2294% 2/6/13 (c) .        4,000        4,045 
DaVita, Inc. Tranche B, term loan 6.9456% 10/5/12 (c)        50,056        50,369 
DJ Orthopedics, Inc. Tranche B, term loan 6.5625%                 
   4/7/13 (c)        2,650        2,660 
Fresenius Medical Care Holdings, Inc. Tranche B, term                 
   loan 6.5086% 3/23/12 (c)        36,000        35,955 
Gentiva Health Services, Inc. term loan 7.2688%                 
   2/28/12 (c)        1,989        2,004 
HCA, Inc. term loan 6% 11/9/09 (c)        27,800        27,696 
HealthSouth Corp. term loan 8.15% 3/10/13 (c)        36,000        36,360 
Iasis Healthcare LLC Tranche B, term loan 7.2637%                 
   6/22/11 (c)        14,249        14,427 
Kinetic Concepts, Inc. Tranche B2, term loan 6.73%                 
   8/11/10 (c)        4,372        4,426 
LifePoint Hospitals, Inc. Tranche B, term loan 6.185%                 
   4/15/12 (c)        22,413        22,525 
Multiplan, Inc. term loan 6.86% 4/12/13 (c)        5,960        6,020 
Mylan Laboratories, Inc. Tranche B, term loan 6.5%                 
   6/30/10 (c)        3,089        3,116 
National Renal Institutes, Inc. term loan 9% 3/31/13 (c)        3,460        3,486 
Psychiatric Solutions, Inc. term loan 6.36% 7/1/12 (c)        7,323        7,378 
Quintiles Transnational Corp. Tranche B, term loan                 
   6.82% 3/31/13 (c)        4,000        4,025 
Renal Advantage, Inc. Tranche B, term loan 7.4246%                 
   9/30/12 (c)        5,283        5,349 
Team Health, Inc. term loan 7.27% 11/22/12 (c)        16,459        16,541 

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

Semiannual Report

16

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Healthcare continued                 
U.S. Oncology, Inc. Tranche B, term loan 6.9447%                 
   8/20/11 (c)        $ 8,529        $ 8,615 
Vanguard Health Holding Co. I term loan 6.95%                 
   9/23/11 (c)        5,777        5,849 
Vicar Operating, Inc. term loan 6.5% 5/16/11 (c)        2,498        2,517 
VWR Corp. Tranche B, term loan 7.34% 4/7/11 (c)        5,298        5,371 
                337,868 
Homebuilding/Real Estate – 2.3%                 
Apartment Investment & Management Co. term loan                 
   6.36% 3/22/11 (c)        2,100        2,111 
Blount, Inc. Tranche B1, term loan 6.658% 8/9/10 (c)        1,657        1,673 
Capital Automotive (REIT) Tranche B, term loan 6.58%                 
   12/16/10 (c)        8,000        8,050 
CB Richard Ellis Services, Inc. term loan 6.7584%                 
   3/31/10 (c)        8,077        8,157 
General Growth Properties, Inc. Tranche A1, term loan                 
   6.2% 2/24/10 (c)        34,000        33,873 
Lion Gables Realty LP term loan 6.59% 9/30/06 (c)        12,375        12,391 
Maguire Properties, Inc. Tranche B, term loan 6.5988%                 
   3/15/10 (c)        1,622        1,626 
The Rouse Co. term loan 6.25% 8/24/06 (c)        15,000        15,000 
Trizec Properties, Inc. term loan 6.3144% 4/19/07 (c) .        21,000        20,974 
                103,855 
Hotels 0.3%                 
Hilton Hotels Corp. Tranche B, term loan 6.2472%                 
   2/9/13 (c)        11,700        11,744 
Insurance – 0.1%                 
Conseco, Inc. term loan 6.6513% 6/22/10 (c)        2,134        2,153 
Leisure – 1.3%                 
Century Theaters, Inc. Tranche B, term loan 6.695%                 
   3/1/13 (c)        5,640        5,696 
Easton Bell Sports, Inc. Tranche B, term loan 6.8037%                 
   3/16/12 (c)        2,630        2,656 
London Arena & Waterfront Finance LLC Tranche A,                 
   term loan 8.38% 3/8/12 (c)        3,000        3,023 
Mega Bloks, Inc. Tranche B, term loan 6.9113%                 
   7/26/12 (c)        3,960        3,985 
Six Flags Theme Park, Inc. Tranche B1, term loan                 
   7.472% 6/30/09 (c)        24,144        24,295 

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

17 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Leisure – continued                 
Universal City Development Partners Ltd. term loan                 
   6.9415% 6/9/11 (c)        $ 17,728        $ 17,950 
Yankees Holdings LP term loan 7.3244% 6/25/07 (c)        943        943 
                58,548 
Metals/Mining – 1.5%                 
Alpha National Resources LLC/Alpha National                 
   Resources Capital Corp. Tranche B, term loan 6.32%                 
   10/26/12 (c)        7,980        8,010 
Compass Minerals Tranche B, term loan 6.4844%                 
   12/22/12 (c)        7,636        7,674 
Foundation Pennsylvania Coal Co. Tranche B, term loan                 
   6.6205% 7/30/11 (c)        17,605        17,847 
Murray Energy Corp. Tranche 1, term loan 8%                 
   1/28/10 (c)        2,970        3,000 
Novelis, Inc. term loan 6.44% 1/7/12 (c)        14,561        14,689 
Peabody Energy Corp. term loan 5.6526% 3/21/10 (c)        14,667        14,648 
Stillwater Mining Co. term loan 7.25% 7/30/10 (c)        2,146        2,172 
                68,040 
Paper 4.4%                 
Appleton Papers, Inc. term loan 6.9986% 6/11/10 (c) .        3,588        3,624 
Boise Cascade Holdings LLC Tranche D, term loan                 
   6.7518% 10/26/11 (c)        22,329        22,580 
Buckeye Technologies, Inc. term loan 7.006% 3/15/08 (c)        3,201        3,209 
Georgia-Pacific Corp.:                 
   Tranche 2, term loan 7.9393% 12/23/13 (c)        23,000        23,460 
   Tranche B, term loan 6.8847% 12/23/12 (c)        74,813        75,187 
Graphic Packaging International, Inc. Tranche C, term                 
   loan 7.4368% 8/8/10 (c)        15,413        15,606 
NewPage Corp. term loan 7.96% 5/2/11 (c)        5,136        5,162 
Smurfit-Stone Container Enterprises, Inc.:                 
   Credit-Linked Deposit 7.01% 11/1/10 (c)        4,164        4,206 
   Tranche B, term loan 7.193% 11/1/11 (c)        26,522        26,788 
   Tranche C, term loan 7.125% 11/1/11 (c)        7,840        7,919 
   Tranche C1, term loan 7.125% 11/1/11 (c)        2,823        2,859 
Xerium Technologies, Inc. Tranche B, term loan 7.2294%                 
   5/18/12 (c)        4,891        4,885 
                195,485 
Publishing/Printing – 1.9%                 
Caribe Information Investments, Inc. term loan 7.4036%                 
   3/31/13 (c)        3,000        3,030 
CBD Media, Inc. Tranche D, term loan 7.41%                 
   12/31/09 (c)        5,610        5,695 

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

Semiannual Report

18

Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Publishing/Printing – continued                 
Dex Media East LLC/Dex Media East Finance Co.:                 
   Tranche A, term loan 6.1202% 11/8/08 (c)        $ 2,647        $ 2,647 
   Tranche B, term loan 6.5899% 5/8/09 (c)        7,844        7,844 
Dex Media West LLC/Dex Media West Finance Co.:                 
   Tranche A, term loan 6.1634% 9/9/09 (c)        2,364        2,364 
   Tranche B, term loan 6.6137% 3/9/10 (c)        15,580        15,580 
   Tranche B1, term loan 6.2968% 3/10/10 (c)        15,727        15,727 
Herald Media, Inc. Tranche 1, term loan 7.67%                 
   7/22/11 (c)        2,455        2,455 
Liberty Group Operating, Inc. Tranche B, term loan                 
   7.25% 2/28/12 (c)        1,601        1,615 
R.H. Donnelley Corp. Tranche D2, term loan 6.6906%                 
   6/30/11 (c)        27,916        27,916 
Sun Media Corp. Canada Tranche B, term loan                 
   7.1256% 2/7/09 (c)        1,718        1,730 
                86,603 
Railroad 0.1%                 
RailAmerica, Inc. term loan 7.0625% 9/29/11 (c)        5,543        5,612 
Restaurants 1.6%                 
Arby’s Restaurant Group, Inc. Tranche B, term loan                 
   7.1812% 7/25/12 (c)        4,963        5,025 
Burger King Corp. Tranche B1, term loan 6.5% 6/30/12 (c)        19,483        19,483 
CKE Restaurants, Inc. term loan 6.9375% 5/1/10 (c)        1,285        1,294 
Del Taco Tranche B, term loan 7.0719% 3/29/13 (c)        5,000        5,050 
Domino’s, Inc. term loan 6.4557% 6/25/10 (c)        11,404        11,489 
Dunkin Brands Acquisition, Inc. term loan 7.3256%                 
   3/1/13 (c)        15,430        15,430 
El Pollo Loco, Inc. Tranche B, term loan 7.56% 11/18/11 (c)        1,995        2,025 
Jack in the Box, Inc. term loan 6.5193% 1/8/11 (c)        3,516        3,547 
Landry’s Seafood Restaurants, Inc. term loan 6.8597%                 
   12/28/10 (c)        6,024        6,076 
                69,419 
Services – 1.8%                 
Audatex North America, Inc. Tranche 1, term loan 7.3%                 
   4/13/13 (c)        2,000        2,008 
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.                 
   term loan 6.35% 4/19/12 (c)        4,000        4,000 
CACI International, Inc. Tranche B, term loan 6.2491%                 
   4/30/11 (c)        4,949        4,987 
Coinmach Corp. Tranche B1, term loan 7.9328%                 
   12/19/12 (c)        5,994        6,084 
Coinstar, Inc. term loan 7.0298% 7/1/11 (c)        5,575        5,659 

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

19 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Services – continued                 
Hertz Corp.:                 
   Credit-Linked Deposit 7.18% 12/21/12 (c)        $ 1,444        $ 1,453 
   Tranche B, term loan 7.0171% 12/21/12 (c)        9,838        9,899 
   Tranche DD, term loan 12/21/12 (e)        1,693        1,699 
IAP Worldwide Services, Inc. Tranche 1, term loan 8%                 
   12/27/12 (c)        2,993        3,022 
Iron Mountain, Inc.:                 
   term loan 6.656% 4/2/11 (c)        4,938        4,975 
   Tranche C, term loan 6.5625% 4/2/11 (c)        11,196        11,280 
JohnsonDiversey, Inc.:                 
   Tranche B, term loan 7.2068% 12/16/11 (c)        4,055        4,111 
   Tranche DD, term loan 12/16/10 (e)        509        511 
Rural/Metro Corp.:                 
   Credit-Linked Deposit 7.3488% 3/4/11 (c)        408        410 
   term loan 7.1029% 3/4/11 (c)        1,304        1,313 
The Geo Group, Inc. term loan 7% 9/14/11 (c)        1,300        1,306 
United Rentals, Inc.:                 
   term loan 7% 2/14/11 (c)        8,778        8,844 
   Tranche B, Credit-Linked Deposit 6.75% 2/14/11 (c) .        1,598        1,610 
US Investigations Services, Inc.:                 
   term loan 7.43% 10/14/12 (c)        5,920        6,001 
   Tranche C, term loan 7.43% 10/14/12 (c)        1,978        2,005 
                81,177 
Shipping – 0.2%                 
Baker Tanks, Inc.:                 
   term loan 11/23/12 (e)        107        107 
   Tranche B, term loan 7.3229% 11/23/12 (c)        888        899 
Horizon Lines LLC Tranche C, term loan 7.17%                 
   7/7/11 (c)        3,783        3,825 
Ozburn Hessey Holding Co. LLC term loan 7.2906%                 
   8/9/12 (c)        2,513        2,539 
                7,370 
Super Retail – 0.9%                 
Alimentation Couche-Tard, Inc. term loan 6.7545%                 
   12/17/10 (c)        1,560        1,576 
Buhrmann US, Inc. Tranche D1, term loan 6.555%                 
   12/31/10 (c)        5,590        5,639 
Neiman Marcus Group, Inc. term loan 7.34%                 
   4/6/13 (c)        15,190        15,342 

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

Semiannual Report

20

Floating Rate Loans (d) continued                     
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Super Retail – continued                     
The Pep Boys – Manny, Moe & Jack term loan 7.89%                     
   1/27/11 (c)            $ 2,360        $ 2,398 
Toys ’R’ US, Inc. term loan 7.8256% 12/9/08 (c)            17,000        17,043 
                    41,998 
Technology – 4.3%                     
Affiliated Computer Services, Inc. term loan 6.4294%                     
   3/20/13 (c)            15,327        15,422 
AMI Semiconductor, Inc. term loan 6.5% 4/1/12 (c)            4,955        4,986 
Anteon International Corp. term loan 6.5788%                     
   12/31/10 (c)            6,858        6,927 
Eastman Kodak Co. term loan 7.2405% 10/18/12 (c)    .        7,136        7,207 
Fairchild Semiconductor Corp. Tranche B3, term loan                     
   6.625% 12/31/10 (c)            6,893        6,970 
Fidelity National Information Solutions, Inc.:                     
   Tranche A, term loan 6.3519% 3/9/11 (c)            1,985        1,987 
   Tranche B, term loan 6.6019% 3/9/13 (c)            33,784        33,953 
Global Imaging Systems, Inc. term loan 6.3845%                     
   5/10/10 (c)            2,702        2,715 
Infor Global Solutions AG Tranche 1, term loan 7.8%                     
   4/18/11 (c)            5,000        5,000 
K & F Industries, Inc. term loan 7.169% 11/18/12 (c)            7,026        7,123 
ON Semiconductor Corp. Tranche H, term loan 7.23%                     
   12/15/11 (c)            5,913        5,972 
Sensata Technologies BV term loan 6.86% 4/27/13 (c)    .        9,265        9,300 
SERENA Software, Inc. term loan 7.41% 3/10/13 (c)            6,000        6,060 
SSA Global Technologies, Inc. term loan 6.97%                     
   9/22/11 (c)            3,970        4,000 
SunGard Data Systems, Inc. Tranche B, term loan                     
   7.215% 2/10/13 (c)            69,453        70,321 
Verifone, Inc. Tranche B, term loan 6.8756%                     
   6/30/11 (c)            5,858        5,888 
                    193,831 
Telecommunications – 4.3%                     
Alaska Communications Systems Holding term loan                     
   6.7294% 2/1/12 (c)            5,000        5,050 
Centennial Cellular Operating Co. LLC term loan 7.214%                 
   2/9/11 (c)            15,635        15,830 
Cincinnati Bell, Inc. Tranche B, term loan 6.3587%                     
   8/31/12 (c)            12,935        13,000 
Consolidated Communications, Inc. Tranche D term loan                 
   6.6752% 10/14/11 (c)            2,000        2,013 
Intelsat Ltd. term loan 6.75% 7/28/11 (c)            26,374        26,605 

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

21 Semiannual Report

Investments continued                 
 
 
 Floating Rate Loans (d) continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Telecommunications – continued                 
Iowa Telecommunication Services, Inc. Tranche B, term                 
   loan 6.6888% 11/23/11 (c)        $ 4,000        $ 4,035 
Level 3 Communications, Inc. term loan 11.8225%                 
   12/2/11 (c)        10,000        10,500 
Madison River Capital LLC/Madison River Finance Corp.                 
   Tranche B1, term loan 7.26% 7/29/12 (c)        5,000        5,069 
Nextel Partners Operating Corp. Tranche D, term loan                 
   6.32% 5/31/12 (c)        16,364        16,364 
NTELOS, Inc. Tranche B1, term loan 7.5% 8/24/11 (c) .        6,913        7,008 
Qwest Corp.:                 
   Tranche A, term loan 9.6513% 6/30/07 (c)        36,400        37,196 
   Tranche B, term loan 6.95% 6/30/10 (c)        11,000        11,110 
Time Warner Telecom Holdings, Inc. Tranche B, term                 
   loan 6.6826% 11/30/10 (c)        4,703        4,762 
Triton PCS, Inc. term loan 8.08% 11/18/09 (c)        7,848        7,897 
Valor Telecommunications Enterprises LLC/Valor Finance                 
   Corp. Tranche B, term loan 6.7531% 2/14/12 (c)        9,135        9,146 
Wind Telecomunicazioni Spa:                 
   Tranche B, term loan 7.7819% 9/21/13 (c)        7,500        7,575 
   Tranche C, term loan 8.2819% 9/21/14 (c)        7,500        7,575 
                190,735 
Textiles & Apparel – 0.3%                 
Warnaco Group, Inc. term loan 6.4069% 1/31/13 (c) .        7,000        7,000 
William Carter Co. term loan 6.7045% 6/29/12 (c)        8,399        8,441 
                15,441 
 
TOTAL FLOATING RATE LOANS                 
 (Cost $3,401,701)            3,422,087 

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

Semiannual Report

22

Nonconvertible Bonds 12.6%                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Air Transportation – 0.1%                 
Delta Air Lines, Inc. pass thru trust certificates 7.57%                 
   11/18/10        $ 6,000        $ 6,000 
Auto Parts Distribution – 0.0%                 
Ford Motor Credit Co. 5.7948% 9/28/07 (c)        2,000        1,915 
Automotive 0.7%                 
Ford Motor Credit Co.:                 
   5.7% 11/16/06 (c)        22,000        21,893 
   5.88% 3/21/07 (c)        4,000        3,930 
General Motors Acceptance Corp.:                 
   5.645% 5/18/06 (c)        2,000        2,000 
   6.125% 9/15/06        5,000        4,961 
                32,784 
Broadcasting – 0.2%                 
Radio One, Inc. 8.875% 7/1/11        7,000        7,324 
Cable TV 2.5%                 
Cablevision Systems Corp. 9.62% 4/1/09 (c)        5,000        5,300 
CSC Holdings, Inc.:                 
   7.25% 7/15/08        2,000        2,020 
   7.875% 12/15/07        13,000        13,277 
   10.5% 5/15/16        2,000        2,140 
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375%                 
   3/15/13        1,963        2,100 
EchoStar DBS Corp.:                 
   5.75% 10/1/08        4,000        3,940 
   7.93% 10/1/08 (c)        79,285        80,871 
                109,648 
Chemicals – 0.1%                 
Equistar Chemicals LP/Equistar Funding Corp. 10.625%                 
   5/1/11        2,000        2,180 
NOVA Chemicals Corp. 7.5613% 11/15/13 (c)        3,000        3,008 
                5,188 
Containers – 0.1%                 
Owens-Brockway Glass Container, Inc. 8.875%                 
   2/15/09        3,000        3,105 
Diversified Media – 0.6%                 
Liberty Media Corp. 6.41% 9/17/06 (c)        26,000        26,092 
Electric Utilities – 0.8%                 
AES Corp. 8.75% 6/15/08        3,000        3,131 
CMS Energy Corp. 9.875% 10/15/07        12,000        12,690 
NRG Energy, Inc. 7.375% 2/1/16        9,000        9,056 

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

23 Semiannual Report

Investments continued                 
 
 
 Nonconvertible Bonds continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Electric Utilities – continued                 
TECO Energy, Inc.:                 
   6.125% 5/1/07        $ 4,000        $ 4,000 
   6.68% 5/1/10 (c)        5,000        5,125 
                34,002 
Energy – 1.7%                 
El Paso Corp.:                 
   6.5% 5/15/06 (b)        6,000        6,000 
   7.5% 8/15/06 (b)        2,000        2,009 
   7.625% 8/16/07        8,000        8,100 
El Paso Energy Corp. 6.95% 12/15/07        3,350        3,371 
Parker Drilling Co. 9.57% 9/1/10 (c)        7,000        7,210 
Pemex Project Funding Master Trust 6.21%                 
   6/15/10 (b)(c)        18,000        18,432 
Premcor Refining Group, Inc.:                 
   9.25% 2/1/10        2,000        2,120 
   9.5% 2/1/13        2,000        2,190 
Sonat, Inc. 7.625% 7/15/11        3,000        3,060 
Southern Natural Gas Co. 8.875% 3/15/10        840        890 
Williams Companies, Inc. 6.99% 10/1/10 (b)(c)        17,000        17,383 
Williams Companies, Inc. Credit Linked Certificate Trust                 
   IV 7.94% 5/1/09 (b)(c)        7,000        7,158 
                77,923 
Entertainment/Film 0.2%                 
AMC Entertainment, Inc. 8.9988% 8/15/10 (c)        9,000        9,270 
Food and Drug Retail – 0.2%                 
Rite Aid Corp. 12.5% 9/15/06        8,000        8,190 
Food/Beverage/Tobacco – 0.0%                 
Canandaigua Brands, Inc. 8.625% 8/1/06        1,000        1,008 
Gaming – 0.2%                 
Mandalay Resort Group:                 
   9.5% 8/1/08        2,000        2,140 
   10.25% 8/1/07        2,000        2,098 
Mirage Resorts, Inc. 6.75% 8/1/07        3,000        3,030 
                7,268 
Healthcare 0.0%                 
Service Corp. International (SCI) 6.5% 3/15/08        2,000        1,990 
Leisure – 0.1%                 
Universal City Florida Holding Co. I/II 9.43% 5/1/10 (c)        5,140        5,294 

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

Semiannual Report

24

Nonconvertible Bonds continued                 
        Principal    Value (Note 1) 
      Amount (000s)    (000s) 
Metals/Mining – 0.5%                 
Freeport-McMoRan Copper & Gold, Inc.:                 
   6.875% 2/1/14        $ 8,000        $ 7,950 
   10.125% 2/1/10        13,470        14,463 
                22,413 
Paper 0.1%                 
Boise Cascade LLC/Boise Cascade Finance Corp.                 
   7.9433% 10/15/12 (c)        2,190        2,212 
Publishing/Printing – 0.2%                 
Dex Media East LLC/Dex Media East Finance Co.                 
   9.875% 11/15/09        6,000        6,375 
R.H. Donnelley Finance Corp. III 8.875% 1/15/16 (b)        4,000        4,120 
                10,495 
Services – 0.0%                 
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.                 
   7.576% 5/15/14 (b)(c)        1,650        1,695 
Shipping – 0.1%                 
OMI Corp. 7.625% 12/1/13        2,000        2,030 
Ship Finance International Ltd. 8.5% 12/15/13        3,620        3,403 
                5,433 
Super Retail – 0.3%                 
GSC Holdings Corp./Gamestop, Inc. 8.865%                 
   10/1/11 (b)(c)        14,000        14,420 
Technology – 0.6%                 
Freescale Semiconductor, Inc. 7.8183% 7/15/09 (c)        24,000        24,540 
Telecommunications – 3.2%                 
AirGate PCS, Inc. 8.8269% 10/15/11 (c)        7,000        7,193 
America Movil SA de CV 5.735% 4/27/07 (c)        1,000        1,003 
Dobson Cellular Systems, Inc. 9.43% 11/1/11 (c)        8,000        8,320 
Intelsat Subsidiary Holding Co. Ltd. 9.6094%                 
   1/15/12 (c)        7,000        7,131 
Qwest Communications International, Inc. 8.2488%                 
   2/15/09 (c)        5,000        5,100 
Qwest Corp. 8.16% 6/15/13 (c)        47,150        51,394 
Rogers Communications, Inc.:                 
   6.375% 3/1/14        3,000        2,925 
   8.035% 12/15/10 (c)        38,450        39,604 
Rural Cellular Corp.:                 
   8.25% 3/15/12        6,000        6,300 

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

25 Semiannual Report

Investments continued                 
 
 
 Nonconvertible Bonds continued             
            Principal    Value (Note 1) 
          Amount (000s)    (000s) 
Telecommunications – continued                 
Rural Cellular Corp.: – continued                 
   9.41% 3/15/10 (c)                    $ 13,000    $ 13,390 
Time Warner Telecom Holdings, Inc. 8.7488%                 
   2/15/11 (c)            1,000    1,020 
                143,380 
Textiles & Apparel – 0.1%                 
Levi Strauss & Co. 9.74% 4/1/12 (c)            2,000    2,083 
TOTAL NONCONVERTIBLE BONDS                 
 (Cost $556,553)                563,672 
 U.S. Treasury Obligations  0.4%                 
 
U.S. Treasury Notes 3.375% 2/28/07                 
   (Cost $16,964)            17,000    16,783 
 Money Market Funds 10.6%             
            Shares     
Fidelity Cash Central Fund, 4.8% (a)        311,278,091    311,278 
Fidelity Money Market Central Fund, 4.96% (a)          162,842,923    162,843 
TOTAL MONEY MARKET FUNDS                 
 (Cost $474,121)                474,121 
 Cash Equivalents 0.5%                 
          Maturity       
          Amount (000s)     
Investments in repurchase agreements (Collateralized by                 
   U.S. Treasury Obligations, in a joint trading account at                 
   4.69%, dated 4/28/06 due 5/1/06)                 
   (Cost $22,696)        22,705    22,696 
TOTAL INVESTMENT PORTFOLIO  100.4%                 
 (Cost $4,472,035)                4,499,359 
 
NET OTHER ASSETS – (0.4)%                (17,033) 
NET ASSETS 100%                $ 4,482,326 
 
 
 
 
See accompanying notes which are an integral part of the financial statements.     
 
Semiannual Report    26             

Legend

(a) Affiliated fund that is 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.

(b) Security exempt from registration under

Rule 144A of the Securities Act of 1933.
These securities may be resold in
transactions exempt from registration,
normally to qualified institutional buyers.
At the period end, the value of these
securities amounted to $71,217,000 or
1.6% of net assets.

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

(d) Remaining maturities of floating rate

loans may be less than the stated
maturities shown as a result of
contractual or optional prepayments by
the borrower. Such prepayments cannot
be predicted with certainty.

(e) Position or a portion of the position

represents an unfunded loan
commitment. At period end, the total
principal amount and market value of
unfunded commitments totaled
$24,605,000 and $24,703,000,
respectively. The coupon rate will be
determined at time of settlement.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund      Income earned 
    (Amounts in thousands) 
Fidelity Cash Central Fund          $ 9,727 
Fidelity Money Market Central Fund        3,873 
Total           $ 13,600 

Income Tax Information

At October 31, 2005, the fund had a capital loss carryforward of approximately $3,375,000 of which $1,297,000 and $2,078,000 will expire on October 31, 2010 and 2011, respectively.

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

27 Semiannual Report

Financial Statements                 
 
 Statement of Assets and Liabilities                 
Amounts in thousands (except per share amounts)                April 30, 2006 
 
Assets                 
Investment in securities, at value (including repurchase                 
   agreements of $22,696) See accompanying                 
   schedule:                 
   Unaffiliated issuers (cost $3,997,914)        $ 4,025,238         
   Affiliated Central Funds (cost $474,121)        474,121         
Total Investments (cost $4,472,035)                $ 4,499,359 
Cash                2,933 
Receivable for investments sold                178,605 
Receivable for fund shares sold                14,632 
Interest receivable                33,439 
Prepaid expenses                12 
Other affiliated receivables                1 
   Total assets                4,728,981 
 
Liabilities                 
Payable for investments purchased        $ 227,351         
Payable for fund shares redeemed        11,550         
Distributions payable        4,041         
Accrued management fee        2,489         
Distribution fees payable        563         
Other affiliated payables        555         
Other payables and accrued expenses        106         
   Total liabilities                246,655 
 
Net Assets                $ 4,482,326 
Net Assets consist of:                 
Paid in capital                $ 4,452,029 
Undistributed net investment income                3,882 
Accumulated undistributed net realized gain (loss) on                 
   investments                (909) 
Net unrealized appreciation (depreciation) on                 
   investments                27,324 
Net Assets                $ 4,482,326 

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

Semiannual Report

28

Statement of Assets and Liabilities continued         

Amounts in thousands (except per share amounts)
 
          April 30, 2006 
Calculation of Maximum Offering Price             
   Class A:             
   Net Asset Value and redemption price per share             
       ($304,171 ÷ 30,488 shares)            $ 9.98 
 
Maximum offering price per share (100/96.25 of $9.98)            $ 10.37 
 Class T:             
 Net Asset Value and redemption price per share             
       ($497,756 ÷ 49,940 shares)            $ 9.97 
 
Maximum offering price per share (100/97.25 of $9.97)            $ 10.25 
 Class B:             
 Net Asset Value and offering price per share             
       ($155,301 ÷ 15,582 shares)A            $ 9.97 
 
 Class C:             
 Net Asset Value and offering price per share             
       ($491,768 ÷ 49,299 shares)A            $ 9.98 
 
 Fidelity Floating Rate High Income Fund:             
 Net Asset Value, offering price and redemption price per         
       share ($2,743,397 ÷ 275,232 shares)            $ 9.97 
 
 Institutional Class:             
 Net Asset Value, offering price and redemption price per         
       share ($289,933 ÷ 29,100 shares)            $ 9.96 
 
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.

29 Semiannual Report

Financial Statements  continued         
 
 
 Statement of Operations             
Amounts in thousands        Six months ended April 30, 2006 
 
Investment Income             
Interest            $ 124,240 
Income from affiliated Central Funds            13,600 
   Total income            137,840 
 
Expenses             
Management fee                                             $ 14,644     
Transfer agent fees        2,626     
Distribution fees        3,510     
Accounting fees and expenses        676     
Independent trustees’ compensation        9     
Custodian fees and expenses        51     
Registration fees        153     
Audit        70     
Legal        29     
Interest        4     
Miscellaneous        45     
   Total expenses before reductions        21,817     
   Expense reductions        (50)    21,767 
 
Net investment income            116,073 
Realized and Unrealized Gain (Loss)         
Net realized gain (loss) on:             
   Investment securities:             
      Unaffiliated issuers            2,636 
Change in net unrealized appreciation (depreciation) on             
   investment securities            1,910 
Net gain (loss)            4,546 
Net increase (decrease) in net assets resulting             
   from operations            $ 120,619 

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

Semiannual Report

30

Statement of Changes in Net Assets                 
    Six months ended        Year ended 
        April 30,        October 31, 
Amounts in thousands        2006        2005 
Increase (Decrease) in Net Assets                 
Operations                 
   Net investment income        $ 116,073        $ 168,450 
   Net realized gain (loss)        2,636        2,418 
   Change in net unrealized appreciation (depreciation) .        1,910        (9,021) 
   Net increase (decrease) in net assets resulting                 
       from operations        120,619        161,847 
Distributions to shareholders from net investment income .        (113,803)        (166,193) 
Distributions to shareholders from net realized gain                (3,785) 
   Total distributions        (113,803)        (169,978) 
Share transactions - net increase (decrease)        184,412        740,096 
Redemption fees        110        399 
   Total increase (decrease) in net assets        191,338        732,364 
 
Net Assets                 
   Beginning of period        4,290,988        3,558,624 
   End of period (including undistributed net investment                 
       income of $3,882 and undistributed net investment                 
       income of $1,612, respectively)        $ 4,482,326        $ 4,290,988 

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

31 Semiannual Report

Financial Highlights  Class A                             
    Six months ended                                 
      April 30,          Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.96        $ 9.97        $ 9.88     $ 9.45     $ 9.70        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .263        .404        .285    .292    .352        .580 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .098    .447    (.264)        (.185) 
Total from investment                                         
   operations        .277        .396        .383    .739    .088        .395 
Distributions from net                                         
   investment income        (.257)        (.397)        (.295)    (.311)    (.339)        (.638) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.257)        (.407)        (.295)    (.311)    (.339)        (.638) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.98        $ 9.96        $ 9.97     $ 9.88     $ 9.45        $ 9.70 
Total ReturnB,C,D        2.81%        4.05%        3.96%    7.95%    .90%        4.08% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.06%A        1.06%        1.08%    1.10%    1.12%        1.14% 
   Expenses net of fee                                         
       waivers, if any        1.06%A        1.06%        1.08%    1.10%    1.10%        .99% 
   Expenses net of all                                         
       reductions        1.06%A        1.06%        1.08%    1.09%    1.09%        .98% 
   Net investment                                         
       income        5.31%A        4.05%        2.90%    3.04%    3.64%        5.93% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 304        $ 312        $ 299   $ 88     $ 37        $ 41 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

Semiannual Report

32

Financial Highlights  Class T                                 
    Six months ended                                 
      April 30,           Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.95        $ 9.96        $ 9.87     $ 9.44     $ 9.69        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .259        .396        .276    .285    .342        .573 
   Net realized and un                                         
       realized gain (loss)        .015        (.007)        .098    .446    (.263)        (.195) 
Total from investment                                         
   operations        .274        .389        .374    .731    .079        .378 
Distributions from net                                         
   investment income        (.254)        (.390)        (.286)    (.303)    (.330)        (.631) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.254)        (.400)        (.286)    (.303)    (.330)        (.631) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.97        $ 9.95        $ 9.96     $ 9.87     $ 9.44        $ 9.69 
Total ReturnB,C,D        2.78%        3.98%        3.87%    7.87%    .80%        3.90% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.12%A        1.13%        1.17%    1.18%    1.20%        1.22% 
   Expenses net of fee                                         
       waivers, if any        1.12%A        1.13%        1.17%    1.18%    1.19%        1.06% 
   Expenses net of all                                         
       reductions        1.12%A        1.13%        1.17%    1.18%    1.19%        1.06% 
   Net investment                                         
       income        5.25%A        3.98%        2.81%    2.96%    3.54%        5.86% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 498        $ 511        $ 389     $ 113     $ 75        $ 76 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

33 Semiannual Report

Financial Highlights  Class B                             
    Six months ended                                 
      April 30,          Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.95        $ 9.96        $ 9.87     $ 9.44     $ 9.69        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .234        .346        .231    .243    .298        .525 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .096    .444    (.263)        (.194) 
Total from investment                                         
   operations        .248        .338        .327    .687    .035        .331 
Distributions from net                                         
   investment income        (.228)        (.339)        (.239)    (.259)    (.286)        (.584) 
Distributions from net                                         
   realized gain                  (.010)                         
   Total distributions        (.228)        (.349)        (.239)    (.259)    (.286)        (.584) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.97        $ 9.95        $ 9.96     $ 9.87     $ 9.44        $ 9.69 
Total ReturnB,C,D        2.52%        3.46%        3.38%    7.38%    .35%        3.42% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.64%A        1.64%        1.65%    1.64%    1.65%        1.66% 
   Expenses net of fee                                         
       waivers, if any        1.64%A        1.64%        1.65%    1.63%    1.64%        1.54% 
   Expenses net of all                                         
       reductions        1.64%A        1.64%        1.65%    1.63%    1.64%        1.54% 
   Net investment                                         
       income        4.73%A        3.47%        2.33%    2.50%    3.09%        5.38% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 155        $ 173        $ 184    $ 134     $ 118        $ 125 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

Semiannual Report

34

Financial Highlights Class C                             
    Six months ended                                 
      April 30,          Years ended October 31,     
        2006        2005        2004    2003    2002        2001 
Selected Per Share Data                                         
Net asset value,                                         
   beginning of period .        $ 9.96        $ 9.97         $ 9.87     $ 9.45     $ 9.70        $ 9.94 
Income from Investment                                         
   Operations                                         
   Net investment                                         
       incomeE        .232        .341        .224    .235    .290        .516 
   Net realized and un                                         
       realized gain (loss)        .014        (.008)        .107    .434    (.263)        (.184) 
Total from investment                                         
   operations        .246        .333        .331    .669    .027        .332 
Distributions from net                                         
   investment income        (.226)        (.334)        (.233)    (.251)    (.278)        (.575) 
Distributions from net                                         
   realized gain                 (.010)                         
   Total distributions        (.226)        (.344)        (.233)    (.251)    (.278)        (.575) 
Redemption fees added                                         
   to paid in capitalE        G        .001        .002    .002    .001        .003 
Net asset value, end of                                         
   period        $ 9.98        $ 9.96        $ 9.97     $ 9.87     $ 9.45        $ 9.70 
Total ReturnB,C,D        2.49%        3.40%        3.41%    7.18%    .26%        3.42% 
Ratios to Average Net AssetsF                                         
   Expenses before                                         
       reductions        1.69%A        1.69%        1.71%    1.72%    1.73%        1.75% 
   Expenses net of fee                                         
       waivers, if any        1.69%A        1.69%        1.71%    1.71%    1.73%        1.64% 
   Expenses net of all                                         
       reductions        1.69%A        1.69%        1.71%    1.71%    1.73%        1.63% 
   Net investment                                         
       income        4.68%A        3.42%        2.27%    2.42%    3.00%        5.28% 
Supplemental Data                                         
   Net assets, end of                                         
       period (in millions)        $ 492        $ 539        $ 524     $ 269     $ 235        $ 278 
   Portfolio turnover                                         
       rate        68%A        66%        61%    55%    77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
G Amount represents less than $.001 per share.

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

35 Semiannual Report

Financial Highlights  Fidelity Floating Rate High Income Fund                     
    Six months ended                 
    April 30,    Years ended October 31,   
    2006    2005    2004    2003    2002G 
Selected Per Share Data                     
Net asset value, beginning                     
   of period    $ 9.95    $ 9.96    $ 9.87    $ 9.44    $ 9.52 
Income from Investment                     
   Operations                     
   Net investment incomeD    .274    .427    .309    .311    .040 
   Net realized and                     
       unrealized gain (loss)    .015    (.008)    .099    .450    (.084) 
Total from investment                     
   operations    .289    .419    .408    .761    (.044) 
Distributions from net                     
   investment income    (.269)    (.420)    (.320)    (.333)    (.037) 
Distributions from net                     
   realized gain          (.010)             
   Total distributions    (.269)    (.430)    (.320)    (.333)    (.037) 
Redemption fees added to                     
   paid in capitalD    F    .001    .002    .002    .001 
Net asset value, end of                     
   period    $ 9.97    $ 9.95    $ 9.96    $ 9.87    $ 9.44 
Total ReturnB,C    2.94%    4.30%    4.22%    8.20%    (.45)% 
Ratios to Average Net AssetsE                     
   Expenses before                     
       reductions    .82%A    .82%    .84%    .86%    1.15%A 
   Expenses net of fee                     
       waivers, if any    .82%A    .82%    .84%    .86%    .95%A 
   Expenses net of all                     
       reductions    .82%A    .82%    .84%    .86%    .94%A 
   Net investment income .    5.55%A    4.29%    3.14%    3.27%    3.99%A 
Supplemental Data                     
   Net assets, end of period                     
       (in millions)    $ 2,743    $ 2,471    $ 1,982    $ 811    $ 18 
   Portfolio turnover rate    68%A    66%    61%    55%    77% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
F Amount represents less than $.001 per share.
G For the period September 19, 2002 (commencement of sale of shares) to October 31, 2002.

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

Semiannual Report

36

Financial Highlights Institutional Class                         
 
 Six months ended                                         
    April 30,    Years ended October 31,     
    2006    2005    2004    2003    2002    2001 
Selected Per Share Data                                                 
Net asset value,                                                 
   beginning of period .        $ 9.95        $ 9.96        $ 9.86        $ 9.44        $ 9.69        $ 9.94 
Income from Investment                                                 
   Operations                                                 
   Net investment                                                 
       incomeD        .273        .424        .304        .312        .365        .590 
   Net realized and un                                                 
       realized gain (loss)        .005        (.007)        .110        .436        (.262)        (.193) 
Total from investment                                                 
   operations        .278        .417        .414        .748        .103        .397 
Distributions from net                                                 
   investment income        (.268)        (.418)        (.316)        (.330)        (.354)        (.650) 
Distributions from net                                                 
   realized gain                  (.010)                                 
   Total distributions        (.268)        (.428)        (.316)        (.330)        (.354)        (.650) 
Redemption fees added                                                 
   to paid in capitalD        F        .001        .002        .002        .001        .003 
Net asset value, end of                                                 
   period        $ 9.96        $ 9.95        $ 9.96        $ 9.86        $ 9.44        $ 9.69 
Total ReturnB,C        2.82%        4.27%        4.29%        8.06%        1.06%        4.11% 
Ratios to Average Net AssetsE                                                 
   Expenses before                                                 
       reductions        .85%A        .85%        .87%        .90%        .94%        1.02% 
   Expenses net of fee                                                 
       waivers, if any        .85%A        .85%        .87%        .89%        .94%        .87% 
   Expenses net of all                                                 
       reductions        .84%A        .85%        .87%        .89%        .93%        .87% 
   Net investment                                                 
       income        5.53%A        4.26%        3.11%        3.24%        3.79%        6.05% 
Supplemental Data                                                 
   Net assets, end of                                                 
       period (in millions)        $ 290        $ 285        $ 182        $ 36        $ 18        $ 7 
   Portfolio turnover rate        68%A        66%        61%        55%        77%        55% 

A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net
expenses paid by the class.
F Amount represents less than $.001 per share.

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

37 Semiannual Report

Notes to Financial Statements

For the period ended April 30, 2006
(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Advisor Floating Rate High Income Fund (the fund) is a fund of Fidelity Advisor Series II (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open end management investment company organized as a Massachusetts business trust.

The fund offers Class A, Class T, Class B, Class C, Fidelity Floating Rate High Income, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain ex pense reductions also differ by class.

The fund may invest in affiliated money market central funds (Money Market Central Funds), which are open end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require manage ment to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by indepen dent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accor dance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Invest ments in open end mutual funds are valued at their closing net asset value each business day. Short term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Semiannual Report

38

1. Significant Accounting Policies continued

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The fund earns certain fees in connection with its floating rate loan purchasing activites. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Income in the accompanying financial statements.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each fund in the trust.

Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.

Dividends are declared daily and paid monthly from net investment income. Distribu tions from realized gains, if any, are 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 generally accepted accounting principles.

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

Book tax differences are primarily due to market discount, capital loss carryforwards and losses deferred due to wash sales.

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

Unrealized appreciation        $ 30,909 
Unrealized depreciation        (3,326) 
Net unrealized appreciation (depreciation)        $ 27,583 
Cost for federal income tax purposes        $ 4,471,776 

Short Term Trading (Redemption) Fees. Shares held in the fund less than 60 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the fund and accounted for as an addition to paid in capital.

39 Semiannual Report

Notes to Financial Statements  continued 
(Amounts in thousands except ratios)     
 
2. Operating Policies.     

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

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

Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The fund may be contrac tually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

3. Purchases and Sales of Investments.

Purchases and sales of securities (including principal repayments of floating rate loans), other than short term securities, aggregated $1,472,312 and $1,288,547, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment manage ment 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 .55% of the fund’s average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR.

Semiannual Report

40

4. Fees and Other Transactions with Affiliates  continued 

Management Fee - continued
 
   

The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .68% of the fund’s average net assets.

Distribution and Service Plan. In accordance with Rule 12b 1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees 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 and the total amounts paid to and retained by FDC were as follows:

    Distribution    Service        Paid to        Retained 
    Fee    Fee        FDC        by FDC 
Class A    0%    .15%        $ 230        $ 4 
Class T    0%    .25%        639        4 
Class B    .55%    .15%        575        453 
Class C    .55%    .25%        2,066        532 
                $ 3,510        993 

Sales Load. FDC receives a front end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermedi aries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3.50% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:     
 
        Retained 
        by FDC 
Class A        $ 64 
Class T        23 
Class B*        193 
Class C*        127 
        $ 407 

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

41 Semiannual Report

Notes to Financial Statements continued     
(Amounts in thousands except ratios)     
 
4. Fees and Other Transactions with Affiliates  continued 

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Fidelity Floating Rate High Income Fund. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Fidelity Floating Rate High Income Fund shares. FIIOC and FSC receive account fees and asset based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:

            % of 
            Average 
        Amount    Net Assets 
Class A        $ 279    .18* 
Class T        371    .15* 
Class B        172    .21* 
Class C        419    .16* 
Fidelity Floating Rate High Income Fund        1,212    .09* 
Institutional Class        173    .12* 
        $ 2,626     
 
* Annualized             

Accounting Fees. FSC maintains the fund’s accounting records. The fee is based on the level of average net assets for the month.

Affiliated Central Funds. The fund may invest in Money Market Central Funds which seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

The Money Market Central Funds do not pay a management fee.

5. Committed Line of Credit.

The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the “line of credit”) to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounts to $4 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Semiannual Report

42

6. Bank Borrowings.

The fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank’s base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $16,971. The weighted average interest rate was 4.25% . At period end, there were no bank borrowings outstanding.

7. Expense Reductions.

Through arrangements with the fund’s custodian credits realized as a result of unin vested cash balances were used to reduce the fund’s expenses. During the period, these credits reduced the fund’s custody expense by $47, respectively. During the period, credits reduced each class’ transfer agent expense as noted in the table below.

      Transfer Agent 
    expense reduction 
Class C        1 
Fidelity Floating Rate High Income Fund        2 
        $ 3 
 
8. 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.

43 Semiannual Report

Notes to Financial Statements    continued         
(Amounts in thousands except ratios)                 
 
9. Distributions to Shareholders.         
 
Distributions to shareholders of each class were as follows:         
 
        Six months ended        Year ended 
        April 30,        October 31, 
        2006        2005 
From net investment income                 
Class A        $ 7,907        $ 12,889 
Class T        13,022        18,576 
Class B        3,763        6,130 
Class C        11,701        18,615 
Fidelity Floating Rate High Income Fund        69,653        99,532 
Institutional Class        7,757        10,451 
Total        $ 113,803        $ 166,193 
From net realized gain                 
Class A        $ —        $ 311 
Class T                412 
Class B                184 
Class C                543 
Fidelity Floating Rate High Income Fund                2,131 
Institutional Class                204 
Total        $ —        $ 3,785 

Semiannual Report

44

10. Share Transactions.                     
 
Transactions for each class of shares were as follows:
 
               
    Shares        Dollars 
    Six months ended    Year ended    Six months ended        Year ended 
    April 30,    October 31,        April 30,        October 31, 
    2006    2005        2006        2005 
Class A                         
Shares sold    6,078    17,372        $ 60,628        $ 173,298 
Reinvestment of                         
   distributions    578    972        5,763        9,697 
Shares redeemed    (7,484)    (17,054)        (74,656)        (170,023) 
Net increase (decrease)     (828)    1,290        $ (8,265)        $ 12,972 
Class T                         
Shares sold    9,483    30,403        $ 94,487        $ 302,938 
Reinvestment of                         
   distributions    1,169    1,707        11,651        17,036 
Shares redeemed    (12,079)    (19,747)        (120,387)        (196,695) 
Net increase (decrease)     (1,427)    12,363        $ (14,249)        $ 123,279 
Class B                         
Shares sold    701    3,269        $ 6,991        $ 32,570 
Reinvestment of                         
   distributions    279    468        2,777        4,667 
Shares redeemed    (2,814)    (4,746)        (28,041)        (47,274) 
Net increase (decrease)     (1,834)    (1,009)        $ (18,273)        $ (10,037) 
Class C                         
Shares sold    4,189    18,049        $ 41,774        $ 180,076 
Reinvestment of                         
   distributions    797    1,287        7,949        12,828 
Shares redeemed    (9,793)    (17,764)        (97,674)        (177,066) 
Net increase (decrease)     (4,807)    1,572        $ (47,951)        $ 15,838 
Fidelity Floating Rate                         
   High Income Fund                         
Shares sold    69,233    151,558        $ 689,998        $ 1,511,153 
Reinvestment of                         
   distributions    5,969    8,742        59,494        87,090 
Shares redeemed    (48,259)    (110,895)        (480,835)        (1,103,883) 
Net increase (decrease)     26,943    49,405        $ 268,657        $ 494,360 
Institutional Class                         
Shares sold    7,118    21,744        $ 70,914        $ 216,646 
Reinvestment of                         
   distributions    342    444        3,407        4,394 
Shares redeemed    (7,008)    (11,790)        (69,828)        (117,356) 
Net increase (decrease)    452    10,398        $ 4,493        $ 103,684 

45 Semiannual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Advisor Series II and Shareholders of Fidelity Advisor Floating Rate High Income Fund:

We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series II, includ ing the schedule of investments as of April 30, 2006, and the related statement of operations for the six months then ended, the statement of changes in net assets for the six months then ended April 30, 2006 and for the year ended October 31, 2005, and the financial highlights for the six months ended April 30, 2006 and each of the five years in the period ended October 31, 2005. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures in cluded confirmation of securities owned as of April 30, 2006, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of April 30, 2006, the results of its operations for the six months then ended, the changes in its net assets for the six months then ended April 30, 2006 and for the year ended October 31, 2005, and its financial highlights for the six months ended April 30, 2006 and each of the five years in the period ended October 31, 2005, in conform ity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts
June 20, 2006

Semiannual Report 46

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Advisor Floating Rate High Income Fund

On January 19, 2006, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve a general research services agreement (the Agreement) between FMR, FMR Co., Inc. (FMRC), Fidelity Investments Money Manage ment, Inc. (FIMM), and Fidelity Research & Analysis Company (FRAC) (together, the Investment Advisers) for the fund, effective January 20, 2006, pursuant to which FRAC may provide general research and investment advisory support services to FMRC and FIMM. The Board considered that it has approved previously various sub advisory agreements for the fund with affiliates of FMR that allow FMR to obtain research, non discretionary advice, or discretionary portfolio management at no additional expense to the fund. The Board, assisted by the advice of fund counsel and independent Trustees’ counsel, considered a broad range of information and determined that it would be beneficial for the fund to access the research and investment advisory support services supplied by FRAC at no additional expense to the fund.

The Board reached this determination in part because the new arrangement will involve no changes in (i) the contractual terms of and fees payable under the fund’s manage ment contract or sub advisory agreements; (ii) the investment process or strategies employed in the management of the fund’s assets; (iii) the nature or level of services provided under the fund’s management contract or sub advisory agreements; (iv) the day to day management of the fund or the persons primarily responsible for such man agement; or (v) the ultimate control or beneficial ownership of FMR, FMRC, or FIMM. The Board also considered that the establishment of the Agreement would not necessi tate prior shareholder approval of the Agreement or result in an assignment and termination of the fund’s management contract or sub advisory agreements under the Investment Company Act of 1940.

Because the Board was approving an arrangement with FRAC under which the fund will not bear any additional management fees or expenses and under which the fund’s portfolio manager would not change, it did not consider the fund’s investment perfor mance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.

In connection with its future renewal of the fund’s management contract and sub advisory agreements, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund’s management fee and total expenses; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders; and (iv) whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have

Semiannual Report

48

appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund’s Agreement is fair and reasonable, and that the fund’s Agreement should be approved.

49 Semiannual Report

Managing Your Investments

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

By Phone

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



By PC

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


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

Semiannual Report 50

To Visit Fidelity

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

Arizona

7001 West Ray Road
Chandler, AZ
7373 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73 575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA

Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT

Delaware

222 Delaware Avenue
Wilmington, DE

Florida

4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
3501 PGA Boulevard
West Palm Beach, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL

1415 West 22nd Street
Oak Brook, IL
1572 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI

Minnesota

7600 France Avenue South
Edina, MN

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

51 Semiannual Report

51

Missouri
8885 Ladue Road
Ladue, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Highway 35
Shrewsbury, NJ

New York

1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY

North Carolina

4611 Sharon Road
Charlotte, NC

Ohio

3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
28699 Chagrin Boulevard
Woodmere Village, OH

Oregon
16850 SW 72nd Avenue
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA

Rhode Island

47 Providence Place
Providence, RI

Tennessee

6150 Poplar Avenue
Memphis, TN

Texas

10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX

Utah

215 South State Street
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA

Washington, DC
1900 K Street, N.W.
Washington, DC

Wisconsin

595 North Barker Road
Brookfield, WI

Semiannual Report 52

To Write Fidelity

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


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

Fidelity Investments

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


Buying shares

Fidelity Investments

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

Overnight Express

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

Selling shares


Fidelity Investments

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

Overnight Express

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

General Correspondence


Fidelity Investments

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


Buying shares

Fidelity Investments

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

Selling shares


Fidelity Investments

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

Overnight Express

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

General Correspondence


Fidelity Investments

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

53 Semiannual Report

Semiannual Report

54

  Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York
New York, NY

The Fidelity Telephone Connection 
Mutual Fund 24-Hour Service 
Exchanges/Redemptions     
 and Account Assistance    1-800-544-6666 
Product Information    1-800-544-6666 
Retirement Accounts    1-800-544-4774 
 (8 a.m. - 9 p.m.)     
TDD Service    1-800-544-0118 
 for the deaf and hearing impaired 
 (9 a.m. - 9 p.m. Eastern time) 
Fidelity Automated Service     
 Telephone (FASTr) (automated phone logo)    1-800-544-5555 
(automated phone logo)  Automated line for quickest service 

FHI-USAN-0606
1.784879.103


Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Advisor Series II: Fidelity Advisor Floating Rate High Income Fund's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series II: Fidelity Advisor Floating Rate High Income Fund's (the "Fund") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Fund is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Fund's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting.

Item 12. Exhibits

(a)

(1)

Not applicable.

(a)

(2)

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)

(3)

Not applicable.

(b)

Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Advisor Series II

By:

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

Date:

June 22, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

Date:

June 22, 2006

By:

/s/Paul M. Murphy

Paul M. Murphy

Chief Financial Officer

Date:

June 22, 2006

EX-99.CERT 2 adfltrate99cert.htm

Exhibit EX-99.CERT

I, Christine Reynolds, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Advisor Series II: Fidelity Advisor Floating Rate High Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 22, 2006

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

I, Paul M. Murphy, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Advisor Series II: Fidelity Advisor Floating Rate High Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 22, 2006

/s/Paul M. Murphy

Paul M. Murphy

Chief Financial Officer

EX-99.906 CERT 3 adfltrate906cert.htm

Exhibit EX-99.906CERT

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code)

In connection with the attached Report of Fidelity Advisor Series II: Fidelity Advisor Floating Rate High Income Fund (the "Fund") on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the Fund does hereby certify that, to the best of such officer's knowledge:

1. The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund as of, and for, the periods presented in the Report.

Dated: June 22, 2006

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

Dated: June 22, 2006

/s/Paul M. Murphy

Paul M. Murphy

Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.

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