N-CSRS 1 main.htm

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-4707

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:

December 31

Date of reporting period:

June 30, 2005

Item 1. Reports to Stockholders

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

Mid Cap II

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

Semiannual Report

June 30, 2005

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

Ned Johnson's message to shareholders.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Proxy Voting Results

<Click Here>

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 Commission'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 Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent 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

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.

First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.

Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.

Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.

For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.

Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2005 to June 30, 2005).

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.

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.

Semiannual Report

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.

Beginning
Account Value
January 1, 2005

Ending
Account Value
June 30, 2005

Expenses Paid
During Period*
January 1, 2005
to June 30, 2005

Class A

Actual

$ 1,000.00

$ 1,026.40

$ 6.28

HypotheticalA

$ 1,000.00

$ 1,018.60

$ 6.26

Class T

Actual

$ 1,000.00

$ 1,024.40

$ 7.53

HypotheticalA

$ 1,000.00

$ 1,017.36

$ 7.50

Class B

Actual

$ 1,000.00

$ 1,022.40

$ 10.03

HypotheticalA

$ 1,000.00

$ 1,014.88

$ 9.99

Class C

Actual

$ 1,000.00

$ 1,022.40

$ 10.03

HypotheticalA

$ 1,000.00

$ 1,014.88

$ 9.99

Institutional Class

Actual

$ 1,000.00

$ 1,027.10

$ 5.13

HypotheticalA

$ 1,000.00

$ 1,019.74

$ 5.11

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

1.25%

Class T

1.50%

Class B

2.00%

Class C

2.00%

Institutional Class

1.02%

Semiannual Report

Investment Changes

Top Ten Stocks as of June 30, 2005

% of fund's
net assets

% of fund's net assets
6 months ago

Invitrogen Corp.

3.0

2.6

Assurant, Inc.

1.8

0.9

NVIDIA Corp.

1.7

0.6

Newmont Mining Corp.

1.7

2.7

NII Holdings, Inc.

1.3

0.4

QIAGEN NV

1.2

1.2

CONSOL Energy, Inc.

1.1

0.8

Valero Energy Corp.

1.1

0.9

Caremark Rx, Inc.

1.1

1.2

Freeport-McMoRan Copper & Gold, Inc. Class B

1.1

1.3

15.1

Top Five Market Sectors as of June 30, 2005

% of fund's
net assets

% of fund's net assets
6 months ago

Health Care

17.3

15.6

Energy

15.3

13.6

Information Technology

14.1

9.1

Consumer Discretionary

13.1

10.7

Industrials

10.3

10.8

Asset Allocation (% of fund's net assets)

As of June 30, 2005 *

As of December 31, 2004 * *

Stocks 95.4%

Stocks 96.4%

Short-Term
Investments and
Net Other Assets 4.6%

Short-Term
Investments and
Net Other Assets 3.6%

* Foreign
investments

24.4%

** Foreign
investments

27.0%



Semiannual Report

Investments June 30, 2005 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 95.3%

Shares

Value (Note 1)

CONSUMER DISCRETIONARY - 13.0%

Auto Components - 1.7%

Autoliv, Inc.

30

$ 1,314

Bharat Forge Ltd.

4

133

BorgWarner, Inc.

17,300

928,491

Gentex Corp.

57,800

1,051,960

IMPCO Technologies, Inc. (a)

156,400

752,284

LKQ Corp. (a)

109,213

2,965,133

New Focus Auto Tech Holdings Ltd.

1,016,000

132,050

Nokian Tyres Ltd.

95,020

1,731,726

7,563,091

Automobiles - 0.4%

Bajaj Auto Ltd.

33,171

1,055,673

Geely Automobile Holdings Ltd.

4,095,000

263,480

Hero Honda Motors Ltd.

6

80

Mahindra & Mahindra Ltd.

5,100

65,429

Maruti Udyog Ltd.

26,753

285,929

1,670,591

Distributors - 0.0%

Eicher Motors Ltd.

30,058

210,147

Diversified Consumer Services - 0.8%

Bright Horizons Family Solutions, Inc. (a)

79,972

3,256,460

Princeton Review, Inc. (a)

31,145

181,575

3,438,035

Hotels, Restaurants & Leisure - 2.1%

Buffalo Wild Wings, Inc. (a)

17,860

557,232

Outback Steakhouse, Inc.

50,000

2,262,000

Red Robin Gourmet Burgers, Inc. (a)

9,800

607,404

Royal Caribbean Cruises Ltd.

39,200

1,895,712

Sonic Corp. (a)

133,600

4,078,808

TAJ GVK Hotels & Resorts Ltd.

7,529

75,065

9,476,221

Household Durables - 0.5%

Alba PLC

19

127

LG Electronics, Inc.

15,620

993,520

Rational AG

3,900

420,043

Sekisui House Ltd.

86,000

869,267

2,282,957

Internet & Catalog Retail - 0.2%

Alloy, Inc. (a)

1,700

8,738

Common Stocks - continued

Shares

Value (Note 1)

CONSUMER DISCRETIONARY - continued

Internet & Catalog Retail - continued

Provide Commerce, Inc. (a)

5,100

$ 110,109

Rakuten, Inc.

813

651,690

770,537

Leisure Equipment & Products - 0.8%

Beneteau SA

3,600

279,472

Jumbo SA (a)

64,500

665,026

Oakley, Inc.

64,300

1,095,029

RC2 Corp. (a)

600

22,542

Sega Sammy Holdings, Inc.

12,300

754,159

Trigano SA

7,100

618,199

3,434,427

Media - 1.2%

Astral Media, Inc. Class A (non-vtg.)

34,100

878,106

Clear Media Ltd. (a)

1,000

869

Getty Images, Inc. (a)

500

37,130

Harris Interactive, Inc. (a)

165,358

805,293

JC Decaux SA (a)

24,200

613,534

Omnicom Group, Inc.

12,700

1,014,222

Salem Communications Corp. Class A (a)

11,200

222,208

Univision Communications, Inc. Class A (a)

38,400

1,057,920

Zee Telefilms Ltd.

140,097

500,933

5,130,215

Multiline Retail - 0.1%

Don Quijote Co. Ltd. (d)

6,000

326,766

Pantaloon Retail India Ltd.

6,611

209,507

PT Mitra Adiperkasa Tbk

238,000

27,074

563,347

Specialty Retail - 4.2%

Abercrombie & Fitch Co. Class A

500

34,350

AC Moore Arts & Crafts, Inc. (a)

90,706

2,867,217

Advance Auto Parts, Inc. (a)

8,000

516,400

Best Buy Co., Inc.

40,100

2,748,855

CarMax, Inc. (a)

50,900

1,356,485

Dixons Group PLC

494,600

1,391,294

Edgars Consolidated Stores Ltd.

11,800

514,498

GameStop Corp.:

Class A (a)

4,500

147,195

Class B (a)

45,400

1,357,460

GOME Electrical Appliances Holdings Ltd.

629,000

542,311

Common Stocks - continued

Shares

Value (Note 1)

CONSUMER DISCRETIONARY - continued

Specialty Retail - continued

Guitar Center, Inc. (a)

12,001

$ 700,498

Hot Topic, Inc. (a)

37,300

713,176

KOMERI Co. Ltd.

66,000

1,779,361

Nitori Co. Ltd.

22,400

1,605,699

Peacock Group PLC

115,700

528,614

PETsMART, Inc.

41,200

1,250,420

Ross Stores, Inc.

4,400

127,204

Tiffany & Co., Inc.

5,700

186,732

18,367,769

Textiles, Apparel & Luxury Goods - 1.0%

Columbia Sportswear Co. (a)

30,100

1,486,639

Quiksilver, Inc. (a)

108,800

1,738,624

Ted Baker PLC

115,140

1,032,513

4,257,776

TOTAL CONSUMER DISCRETIONARY

57,165,113

CONSUMER STAPLES - 5.5%

Beverages - 0.1%

Grupo Modelo SA de CV Series C

25,400

79,841

Jones Soda Co. (a)

24,000

144,000

223,841

Food & Staples Retailing - 0.7%

Heng Tai Consumables Group Ltd.

796,000

151,600

Massmart Holdings Ltd.

77,600

522,429

Metro AG

20,300

1,007,454

Plant Co. Ltd.

9,800

123,533

Shinsegae Co. Ltd.

160

50,575

Sugi Pharmacy Co. Ltd.

20,400

610,685

Whole Foods Market, Inc.

4,800

567,840

3,034,116

Food Products - 3.2%

Barry Callebaut AG

5

1,268

Bunge Ltd.

43,200

2,738,880

Chaoda Modern Agriculture (Holdings) Ltd.

491,700

194,567

Corn Products International, Inc.

34,500

819,720

Glanbia PLC

64,200

217,537

Green Mountain Coffee Roasters, Inc. (a)

7,739

262,584

Groupe Danone (d)

20,500

1,803,547

Common Stocks - continued

Shares

Value (Note 1)

CONSUMER STAPLES - continued

Food Products - continued

Groupe Danone sponsored ADR

57,800

$ 1,011,500

Hershey Co.

32,900

2,043,090

IAWS Group PLC (Ireland)

700

9,793

Lindt & Spruengli AG

36

551,804

Lindt & Spruengli AG (participation certificate)

272

405,989

McCormick & Co., Inc. (non-vtg.)

48,300

1,578,444

People's Food Holdings Ltd.

1,175,000

606,371

Poore Brothers, Inc. (a)

70,200

313,794

PT Indofood Sukses Makmur Tbk

5,373,500

605,773

Smithfield Foods, Inc. (a)

6,700

182,709

Wimm-Bill-Dann Foods OJSC sponsored ADR (a)

4,000

65,720

Wm. Wrigley Jr. Co.

12,800

881,152

14,294,242

Household Products - 0.0%

Godrej Consumer Products Ltd.

13,000

97,212

Personal Products - 1.5%

Avon Products, Inc.

110,700

4,189,995

Beauty China Holdings Ltd.

401,000

230,726

Hengan International Group Co. Ltd.

1,666,000

1,157,689

Natura Cosmeticos SA

23,000

733,063

Ojsc Concern Kalina sponsored ADR

3,000

85,950

Shiseido Co. Ltd. sponsored ADR

27,500

343,750

6,741,173

TOTAL CONSUMER STAPLES

24,390,584

ENERGY - 15.3%

Energy Equipment & Services - 9.3%

Cal Dive International, Inc. (a)

46,900

2,456,153

Cooper Cameron Corp. (a)

39,500

2,450,975

Core Laboratories NV (a)

56,200

1,507,284

FMC Technologies, Inc. (a)

38,100

1,218,057

Global Industries Ltd. (a)

264,400

2,247,400

GlobalSantaFe Corp.

73,000

2,978,400

Gulf Island Fabrication, Inc.

20,900

415,492

Halliburton Co.

21,400

1,023,348

Helmerich & Payne, Inc.

21,700

1,018,164

Nabors Industries Ltd. (a)

47,300

2,867,326

National Oilwell Varco, Inc. (a)

41,611

1,978,187

Noble Corp.

47,900

2,946,329

Common Stocks - continued

Shares

Value (Note 1)

ENERGY - continued

Energy Equipment & Services - continued

Oceaneering International, Inc. (a)

37,800

$ 1,460,970

Parker Drilling Co. (a)

366,100

2,566,361

Pason Systems, Inc.

148,000

2,572,968

Patterson-UTI Energy, Inc.

28,700

798,721

Precision Drilling Corp. (a)

43,500

1,714,508

Pride International, Inc. (a)

46,500

1,195,050

Rowan Companies, Inc.

65,600

1,948,976

Smith International, Inc.

20,600

1,312,220

Superior Energy Services, Inc. (a)

48,500

863,300

Transocean, Inc. (a)

47,900

2,585,163

Weatherford International Ltd. (a)

10,700

620,386

40,745,738

Oil, Gas & Consumable Fuels - 6.0%

Arch Coal, Inc.

18,400

1,002,248

Comstock Resources, Inc. (a)

47,300

1,196,217

CONSOL Energy, Inc.

94,600

5,068,668

Forest Oil Corp. (a)

17,100

718,200

Golar LNG Ltd. (Nasdaq) (a)

377

4,524

Massey Energy Co.

44,106

1,663,678

Newfield Exploration Co. (a)

28,700

1,144,843

Nippon Oil Corp.

107,000

726,487

Peabody Energy Corp.

46,800

2,435,472

Premcor, Inc.

21,000

1,557,780

Southwestern Energy Co. (a)

90,800

4,265,784

Tesoro Petroleum Corp.

19,400

902,488

TransMontaigne, Inc. (a)

70,000

735,000

Valero Energy Corp.

63,800

5,047,218

World Fuel Services Corp.

3,100

72,571

26,541,178

TOTAL ENERGY

67,286,916

FINANCIALS - 9.9%

Capital Markets - 0.2%

Matsui Securities Co. Ltd. (d)

38,800

417,020

Mitsubishi Securities Co. Ltd.

39,000

345,674

762,694

Commercial Banks - 3.5%

Banco Itau Holding Financeira SA sponsored ADR (non-vtg.)

5,200

481,000

Banco Pastor SA (Reg.)

37,100

1,481,587

Common Stocks - continued

Shares

Value (Note 1)

FINANCIALS - continued

Commercial Banks - continued

Bank Austria Creditanstalt AG

31,500

$ 3,287,445

Bank of Baroda

118,334

546,500

Bank of Fukuoka Ltd.

250,000

1,480,997

Bank of India

646,919

1,540,106

Bank of Yokohama Ltd.

239,000

1,381,353

Boston Private Financial Holdings, Inc.

9,800

246,960

Canara Bank

78,404

381,425

Center Financial Corp., California

4,100

101,803

Colonial Bancgroup, Inc.

21,500

474,290

Commerce Bancorp, Inc., New Jersey

17,300

524,363

Corp. Bank

7,279

60,802

HDFC Bank Ltd. sponsored ADR

8,100

376,731

Hiroshima Bank Ltd.

155,100

707,638

ICICI Bank Ltd. sponsored ADR

6,100

133,285

Juroku Bank Ltd.

42,000

227,600

PrivateBancorp, Inc.

2,200

77,836

State Bank of India

60,650

1,062,278

The Keiyo Bank Ltd.

54,000

276,074

Wintrust Financial Corp.

9,800

513,030

15,363,103

Consumer Finance - 0.0%

EZCORP, Inc. Class A (a)

16,755

179,614

Diversified Financial Services - 0.4%

Kotak Mahindra Bank Ltd.

53,264

481,306

Moody's Corp.

10,400

467,584

TSX Group, Inc.

29,300

873,117

1,822,007

Insurance - 4.5%

AFLAC, Inc.

105,400

4,561,712

American International Group, Inc.

14,900

865,690

Assurant, Inc.

219,900

7,938,390

Brown & Brown, Inc.

2,400

107,856

Mercury General Corp.

2,800

152,656

Ohio Casualty Corp.

10,000

241,800

Ping An Insurance (Group) Co. of China, Ltd. (H Shares)

572,500

920,892

Progressive Corp.

8,900

879,409

Reinsurance Group of America, Inc.

22,300

1,037,173

Universal American Financial Corp. (a)

1,600

36,192

Common Stocks - continued

Shares

Value (Note 1)

FINANCIALS - continued

Insurance - continued

USI Holdings Corp. (a)

16,900

$ 217,672

W.R. Berkley Corp.

79,650

2,841,912

19,801,354

Real Estate - 0.9%

CBL & Associates Properties, Inc.

2,800

120,596

Equity Office Properties Trust

41,200

1,363,720

Pan Pacific Retail Properties, Inc.

10,500

696,990

Plum Creek Timber Co., Inc.

13,800

500,940

United Dominion Realty Trust, Inc. (SBI)

51,100

1,228,955

3,911,201

Thrifts & Mortgage Finance - 0.4%

Doral Financial Corp.

14,600

241,484

Golden West Financial Corp., Delaware

7,700

495,726

Housing Development Finance Corp. Ltd.

13,692

280,564

NetBank, Inc.

93,429

870,758

1,888,532

TOTAL FINANCIALS

43,728,505

HEALTH CARE - 17.3%

Biotechnology - 6.0%

Affymetrix, Inc. (a)

21,400

1,154,102

Albany Molecular Research, Inc. (a)

121,800

1,705,200

Charles River Laboratories International, Inc. (a)

32,524

1,569,283

Genentech, Inc. (a)

2,200

176,616

Harvard Bioscience, Inc. (a)

263,711

828,053

ImmunoGen, Inc. (a)

4,600

26,634

Invitrogen Corp. (a)

160,400

13,359,717

Martek Biosciences (a)(d)

13,598

516,044

Neogen Corp. (a)

1,600

22,880

QIAGEN NV (a)(d)

473,700

5,466,498

Stratagene Corp. (a)

138,212

1,201,062

Strategic Diagnostics, Inc. (a)

101,900

349,517

26,375,606

Health Care Equipment & Supplies - 2.7%

Beckman Coulter, Inc.

70,000

4,449,900

Bio-Rad Laboratories, Inc. Class A (a)

8,100

479,601

BioLase Technology, Inc.

5,100

32,232

Bruker BioSciences Corp. (a)

2,000

7,980

Common Stocks - continued

Shares

Value (Note 1)

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Endocare, Inc. (a)

7,500

$ 30,000

Epix Pharmaceuticals, Inc. (a)

17,200

152,220

Gen-Probe, Inc. (a)

1,800

65,214

IDEXX Laboratories, Inc. (a)

8,900

554,737

Kinetic Concepts, Inc. (a)

3,700

222,000

Meridian Bioscience, Inc.

40,900

775,055

Millipore Corp. (a)

51,300

2,910,249

Molecular Devices Corp. (a)

20

433

Synthes, Inc.

6,752

741,237

Thermo Electron Corp. (a)

24,300

652,941

Waters Corp. (a)

24,600

914,382

11,988,181

Health Care Providers & Services - 7.1%

Aetna, Inc.

42,900

3,552,978

Allscripts Healthcare Solutions, Inc. (a)

48,500

805,585

Caremark Rx, Inc. (a)

110,600

4,923,912

Cerner Corp. (a)

10,100

686,497

Community Health Systems, Inc. (a)

13,800

521,502

Covance, Inc. (a)

89,700

4,024,839

Eclipsys Corp. (a)

52,200

734,454

HealthExtras, Inc. (a)

22,900

459,603

Humana, Inc. (a)

39,200

1,557,808

ICON PLC sponsored ADR (a)

15,700

544,790

IMS Health, Inc.

127,600

3,160,652

Lifeline Systems, Inc. (a)

10,200

327,624

Omnicare, Inc.

23,100

980,133

Pharmaceutical Product Development, Inc. (a)

64,200

3,008,412

ProxyMed, Inc. (a)

39,388

308,802

ResCare, Inc. (a)

87,900

1,191,924

Sunrise Senior Living, Inc. (a)(d)

30,800

1,662,584

Triad Hospitals, Inc. (a)

9,300

508,152

TriZetto Group, Inc. (a)

18,000

252,180

VCA Antech, Inc. (a)

10,000

242,500

VistaCare, Inc. Class A (a)

28,900

533,783

WebMD Corp. (a)

120,600

1,238,562

31,227,276

Pharmaceuticals - 1.5%

Bentley Pharmaceuticals, Inc. (a)

19,700

215,715

Connetics Corp. (a)

30,100

530,964

Dr. Reddy's Laboratories Ltd. sponsored ADR

10,300

174,276

Common Stocks - continued

Shares

Value (Note 1)

HEALTH CARE - continued

Pharmaceuticals - continued

Hi-Tech Pharmacal Co., Inc. (a)

80

$ 2,549

Merck KGaA

32,300

2,574,716

Ranbaxy Laboratories Ltd. sponsored GDR

27,006

668,399

Roche Holding AG:

(participation certificate)

14,165

1,792,660

sponsored ADR

5,800

365,922

6,325,201

TOTAL HEALTH CARE

75,916,264

INDUSTRIALS - 10.3%

Aerospace & Defense - 0.8%

DRS Technologies, Inc.

13,000

666,640

Esterline Technologies Corp. (a)

23,500

941,880

L-3 Communications Holdings, Inc.

21,700

1,661,786

3,270,306

Air Freight & Logistics - 0.5%

C.H. Robinson Worldwide, Inc.

10,854

631,703

Hub Group, Inc. Class A (a)

59,088

1,480,154

2,111,857

Airlines - 0.2%

ACE Aviation Holdings, Inc. Class A (a)

25,700

835,900

Building Products - 0.0%

Quixote Corp.

6,900

135,309

Commercial Services & Supplies - 1.0%

Bennett Environmental, Inc. (a)

1,600

4,871

ChoicePoint, Inc. (a)

24,800

993,240

Fullcast Co. Ltd.

573

1,451,810

Randstad Holdings NV

7,000

241,933

Societe Generale de Surveillance Holding SA (SGS) (Reg.)

1,188

816,162

Stericycle, Inc. (a)

20,442

1,028,641

4,536,657

Construction & Engineering - 1.7%

Chicago Bridge & Iron Co. NV (NY Shares)

51,600

1,179,576

Dycom Industries, Inc. (a)

12,300

243,663

Foster Wheeler Ltd. (a)

40,995

805,962

Jacobs Engineering Group, Inc. (a)

41,200

2,317,912

Shaw Group, Inc. (a)

101,600

2,185,416

Common Stocks - continued

Shares

Value (Note 1)

INDUSTRIALS - continued

Construction & Engineering - continued

United Group Ltd.

65,100

$ 477,984

United Group Ltd. New (a)

14,000

100,766

7,311,279

Electrical Equipment - 1.5%

Baldor Electric Co.

10,900

265,088

C&D Technologies, Inc.

49,200

452,148

Crompton Greaves Ltd.

8,700

88,061

Rockwell Automation, Inc.

88,100

4,291,351

Roper Industries, Inc.

22,200

1,584,414

6,681,062

Industrial Conglomerates - 0.6%

Max India Ltd. (a)

14,252

174,843

Teleflex, Inc.

43,200

2,564,784

2,739,627

Machinery - 3.6%

AGCO Corp. (a)

180,600

3,453,072

Dover Corp.

20,400

742,152

Flowserve Corp. (a)

111,300

3,367,938

Gardner Denver, Inc. (a)

18,400

645,472

Harsco Corp.

47,300

2,580,215

Heidelberger Druckmaschinen AG

16,600

486,141

Krones AG

190

22,993

Tata Motors Ltd.

45,134

441,685

Terex Corp. (a)

24,900

981,060

Wabtec Corp.

16,500

354,420

Watts Water Technologies, Inc. Class A

63,600

2,129,964

Zenon Environmental, Inc. (a)

28,800

581,077

15,786,189

Marine - 0.1%

Alexander & Baldwin, Inc.

13,200

611,820

Hanjin Shipping Co. Ltd.

10

251

612,071

Road & Rail - 0.2%

Landstar System, Inc. (a)

26,300

792,156

Trading Companies & Distributors - 0.1%

MSC Industrial Direct Co., Inc. Class A

11,000

371,250

TOTAL INDUSTRIALS

45,183,663

Common Stocks - continued

Shares

Value (Note 1)

INFORMATION TECHNOLOGY - 14.1%

Communications Equipment - 1.5%

C-COR, Inc. (a)

144,370

$ 988,935

NETGEAR, Inc. (a)

74,596

1,387,486

Plantronics, Inc.

58,600

2,130,696

TANDBERG ASA

214,200

2,294,660

6,801,777

Computers & Peripherals - 1.4%

Apple Computer, Inc. (a)

115,051

4,235,027

iCAD, Inc. (a)

72,140

322,466

SanDisk Corp. (a)

69,800

1,656,354

6,213,847

Electronic Equipment & Instruments - 3.7%

CDW Corp.

64,920

3,706,283

Elec & Eltek International Co. Ltd.

160,000

406,400

Hon Hai Precision Industries Co. Ltd.

881,000

4,575,359

KEMET Corp. (a)

77,100

485,730

Keyence Corp.

1,400

313,818

Measurement Specialties, Inc. (a)

10,600

246,026

Mettler-Toledo International, Inc. (a)

19,900

926,942

Symbol Technologies, Inc.

400,400

3,951,948

Vishay Intertechnology, Inc. (a)

145,900

1,731,833

Xyratex Ltd.

1,800

27,918

16,372,257

Internet Software & Services - 1.1%

aQuantive, Inc. (a)

17,450

309,214

eCollege.com (a)

9,100

108,290

RealNetworks, Inc. (a)

367,272

1,825,342

Sohu.com, Inc. (a)

3,900

85,488

ValueClick, Inc. (a)

75,309

928,560

VeriSign, Inc. (a)

24,700

710,372

Yahoo! Japan Corp.

329

691,195

4,658,461

IT Services - 1.6%

Affiliated Computer Services, Inc. Class A (a)

14,384

735,022

Anteon International Corp. (a)

36,500

1,665,130

Lionbridge Technologies, Inc. (a)

89,500

606,810

ManTech International Corp. Class A (a)

18,000

558,720

Maximus, Inc.

31,300

1,104,577

Net One Systems Co. Ltd.

5

12,894

Obic Co. Ltd.

6,100

1,035,688

Common Stocks - continued

Shares

Value (Note 1)

INFORMATION TECHNOLOGY - continued

IT Services - continued

SI International, Inc. (a)

27,408

$ 821,144

TIS, Inc.

15,000

512,601

7,052,586

Office Electronics - 0.1%

Neopost SA

2,600

228,900

Semiconductors & Semiconductor Equipment - 3.0%

Analog Devices, Inc.

31,500

1,175,265

Cabot Microelectronics Corp. (a)

13,800

400,062

Credence Systems Corp. (a)

91,700

829,885

IXYS Corp. (a)

34,300

486,374

LSI Logic Corp. (a)

221,000

1,876,290

NVIDIA Corp. (a)

283,856

7,584,632

Skyworks Solutions, Inc. (a)

26,400

194,568

Varian Semiconductor Equipment Associates, Inc. (a)

13,900

514,300

13,061,376

Software - 1.7%

Activision, Inc. (a)

51,200

845,824

Adobe Systems, Inc.

14,500

414,990

Electronic Arts, Inc. (a)

8,600

486,846

Intuit, Inc. (a)

6,183

278,915

Macrovision Corp. (a)

26,341

593,726

NAVTEQ Corp.

14,400

535,392

Open Solutions, Inc. (a)

45,000

913,950

Renaissance Learning, Inc.

41,623

844,947

RSA Security, Inc. (a)(d)

81,400

934,472

Salesforce.com, Inc.

1,300

26,624

Synopsys, Inc. (a)

44,400

740,148

THQ, Inc. (a)

30,000

878,100

7,493,934

TOTAL INFORMATION TECHNOLOGY

61,883,138

MATERIALS - 7.4%

Chemicals - 2.3%

Airgas, Inc.

58,000

1,430,860

Asian Paints India Ltd.

32,396

306,262

Crompton Corp.

89,300

1,263,595

Ecolab, Inc.

39,900

1,291,164

K&S AG

4,600

254,843

Monsanto Co.

27,000

1,697,490

Common Stocks - continued

Shares

Value (Note 1)

MATERIALS - continued

Chemicals - continued

Nitto Denko Corp.

16,900

$ 969,154

Olin Corp.

29,300

534,432

Praxair, Inc.

5,800

270,280

Sinopec Shanghai Petrochemical Co. Ltd. sponsored ADR

3,800

131,100

Tokuyama Corp.

127,000

904,648

Tosoh Corp.

274,500

1,141,017

United Phosphorous Ltd.

9

168

10,195,013

Construction Materials - 0.2%

Florida Rock Industries, Inc.

9,300

682,155

Containers & Packaging - 0.0%

Essel Propack Ltd.

23,235

170,354

Silgan Holdings, Inc.

94

5,287

175,641

Metals & Mining - 4.6%

Agnico-Eagle Mines Ltd.

109,900

1,375,096

Compania de Minas Buenaventura SA sponsored ADR

45,300

1,041,447

Fording Canadian Coal Trust

3,200

292,994

Freeport-McMoRan Copper & Gold, Inc. Class B

127,300

4,766,112

Goldcorp, Inc.

13,200

209,980

Golden Star Resources Ltd. (a)

4,700

14,577

Harmony Gold Mining Co. Ltd.

105,200

900,512

High River Gold Mines Ltd. (a)

138,800

152,938

Kinross Gold Corp. (a)

393,800

2,410,627

Newmont Mining Corp.

192,700

7,521,081

Nippon Steel Corp.

307,300

714,877

Teck Cominco Ltd. Class B (sub. vtg.)

27,400

924,515

20,324,756

Paper & Forest Products - 0.3%

Lee & Man Paper Manufacturing Ltd. (a)

968,000

822,134

Sino-Forest Corp. (a)

222,900

502,125

1,324,259

TOTAL MATERIALS

32,701,824

TELECOMMUNICATION SERVICES - 1.8%

Diversified Telecommunication Services - 0.3%

Philippine Long Distance Telephone Co. sponsored ADR

43,000

1,249,150

Common Stocks - continued

Shares

Value (Note 1)

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - 1.5%

America Movil SA de CV Series L sponsored ADR

12,100

$ 721,281

Bharti Televentures Ltd. (a)

40,647

235,851

NII Holdings, Inc. (a)

89,903

5,748,398

6,705,530

TOTAL TELECOMMUNICATION SERVICES

7,954,680

UTILITIES - 0.7%

Gas Utilities - 0.2%

SEMCO Energy, Inc. (a)

161,800

969,182

Independent Power Producers & Energy Traders - 0.5%

AES Corp. (a)

126,800

2,076,984

TOTAL UTILITIES

3,046,166

TOTAL COMMON STOCKS

(Cost $392,565,426)

419,256,853

Nonconvertible Preferred Stocks - 0.1%

CONSUMER DISCRETIONARY - 0.1%

Automobiles - 0.1%

Porsche AG (non-vtg.)(Cost $499,486)

700

526,594

Money Market Funds - 5.2%

Fidelity Cash Central Fund, 3.21% (b)

18,943,034

18,943,034

Fidelity Securities Lending Cash Central Fund, 3.23% (b)(c)

4,078,085

4,078,085

TOTAL MONEY MARKET FUNDS

(Cost $23,021,119)

23,021,119

TOTAL INVESTMENT PORTFOLIO - 100.6%

(Cost $416,086,031)

442,804,566

NET OTHER ASSETS - (0.6)%

(2,759,066)

NET ASSETS - 100%

$ 440,045,500

Legend

(a) Non-income producing

(b) 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 listing of the fund's holdings as of its most recent quarter end is available upon request.

(c) Investment made with cash collateral received from securities on loan.

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

Other Information

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

United States of America

75.6%

Japan

5.0%

Canada

3.0%

India

1.9%

Netherlands

1.9%

Cayman Islands

1.8%

Germany

1.1%

Taiwan

1.0%

France

1.0%

Others (individually less than 1%)

7.7%

100.0%

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

June 30, 2005 (Unaudited)

Assets

Investment in securities, at value (including securities loaned of $3,883,010) (cost $416,086,031) - See accompanying schedule

$ 442,804,566

Foreign currency held at value (cost $228,083)

226,635

Receivable for investments sold

2,561,871

Receivable for foreign currency contracts

1,385,316

Receivable for fund shares sold

2,913,794

Dividends receivable

229,037

Interest receivable

75,054

Prepaid expenses

6,518

Other receivables

110,032

Total assets

450,312,823

Liabilities

Payable to custodian bank

$ 282,681

Payable for investments purchased

3,552,498

Payable for foreign currency contracts

1,274,939

Payable for fund shares redeemed

471,895

Accrued management fee

205,330

Distribution fees payable

159,015

Other affiliated payables

112,710

Other payables and accrued expenses

130,170

Collateral on securities loaned, at value

4,078,085

Total liabilities

10,267,323

Net Assets

$ 440,045,500

Net Assets consist of:

Paid in capital

$ 417,671,645

Accumulated net investment loss

(428,714)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(3,814,890)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

26,617,459

Net Assets

$ 440,045,500

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

Semiannual Report

Statement of Assets and Liabilities - continued

June 30, 2005 (Unaudited)

Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($95,931,315 ÷ 7,472,728 shares)

$ 12.84

Maximum offering price per share (100/94.25 of $12.84)

$ 13.62

Class T:
Net Asset Value and redemption price per share ($173,634,589 ÷ 13,554,804 shares)

$ 12.81

Maximum offering price per share (100/96.50 of $12.81)

$ 13.27

Class B:
Net Asset Value and offering price per share ($33,817,151 ÷ 2,650,294 shares)A

$ 12.76

Class C:
Net Asset Value and offering price per share ($56,435,856 ÷ 4,420,743 shares)A

$ 12.77

Institutional Class:
Net Asset Value, offering price and redemption price per share ($80,226,589 ÷ 6,233,813 shares)

$ 12.87

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

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Six months ended June 30, 2005 (Unaudited)

Investment Income

Dividends

$ 1,185,582

Interest

354,107

Security lending

24,035

Total income

1,563,724

Expenses

Management fee

$ 801,185

Transfer agent fees

448,531

Distribution fees

670,397

Accounting and security lending fees

57,907

Independent trustees' compensation

518

Custodian fees and expenses

73,416

Registration fees

112,734

Audit

19,709

Legal

596

Miscellaneous

167

Total expenses before reductions

2,185,160

Expense reductions

(195,187)

1,989,973

Net investment income (loss)

(426,249)

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities

(3,533,330)

Foreign currency transactions

(27,004)

Total net realized gain (loss)

(3,560,334)

Change in net unrealized appreciation (depreciation) on:

Investment securities (net of increase in deferred foreign taxes of $61,790)

14,041,668

Assets and liabilities in foreign currencies

(4,148)

Total change in net unrealized appreciation (depreciation)

14,037,520

Net gain (loss)

10,477,186

Net increase (decrease) in net assets resulting from operations

$ 10,050,937

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

Semiannual Report

Statement of Changes in Net Assets

Six months ended
June 30, 2005
(Unaudited)

For the period August 12, 2004 (commencement
of operations) to
December 31, 2004

Increase (Decrease) in Net Assets

Operations

Net investment income (loss)

$ (426,249)

$ (194,575)

Net realized gain (loss)

(3,560,334)

12,035

Change in net unrealized appreciation (depreciation)

14,037,520

12,579,939

Net increase (decrease) in net assets resulting
from operations

10,050,937

12,397,399

Distributions to shareholders from net realized gain

(74,481)

-

Share transactions - net increase (decrease)

295,417,621

122,254,024

Total increase (decrease) in net assets

305,394,077

134,651,423

Net Assets

Beginning of period

134,651,423

-

End of period (including accumulated net investment loss of $428,714 and accumulated net investment loss of $2,465, respectively)

$ 440,045,500

$ 134,651,423

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

Semiannual Report

Financial Highlights - Class A

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.52

$ 10.00

Income from Investment Operations

Net investment income (loss) E

- H

(.02)

Net realized and unrealized gain (loss)

.33

2.54

Total from investment operations

.33

2.52

Distributions from net realized gain

(.01)

-

Net asset value, end of period

$ 12.84

$ 12.52

Total Return B, C, D

2.64%

25.20%

Ratios to Average Net Assets G

Expenses before expense reductions

1.37% A

1.79% A

Expenses net of voluntary waivers, if any

1.25% A

1.30% A

Expenses net of all reductions

1.17% A

1.26% A

Net investment income (loss)

(.07)% A

(.53)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 95,931

$ 34,438

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

H Amount represents less than $.01 per share.

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

Semiannual Report

Financial Highlights - Class T

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.51

$ 10.00

Income from Investment Operations

Net investment income (loss) E

(.02)

(.03)

Net realized and unrealized gain (loss)

.33

2.54

Total from investment operations

.31

2.51

Distributions from net realized gain

(.01)

-

Net asset value, end of period

$ 12.81

$ 12.51

Total Return B, C, D

2.44%

25.10%

Ratios to Average Net Assets G

Expenses before expense reductions

1.51% A

1.96% A

Expenses net of voluntary waivers, if any

1.50% A

1.55% A

Expenses net of all reductions

1.43% A

1.51% A

Net investment income (loss)

(.32)% A

(.78)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 173,635

$ 60,107

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Financial Highlights - Class B

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.48

$ 10.00

Income from Investment Operations

Net investment income (loss) E

(.05)

(.06)

Net realized and unrealized gain (loss)

.33

2.54

Total from investment operations

.28

2.48

Net asset value, end of period

$ 12.76

$ 12.48

Total Return B, C, D

2.24%

24.80%

Ratios to Average Net Assets G

Expenses before expense reductions

2.12% A

2.61% A

Expenses net of voluntary waivers, if any

2.00% A

2.05% A

Expenses net of all reductions

1.92% A

2.01% A

Net investment income (loss)

(.82)% A

(1.28)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 33,817

$ 15,527

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Financial Highlights - Class C

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.49

$ 10.00

Income from Investment Operations

Net investment income (loss) E

(.05)

(.06)

Net realized and unrealized gain (loss)

.33

2.55

Total from investment operations

.28

2.49

Net asset value, end of period

$ 12.77

$ 12.49

Total Return B, C, D

2.24%

24.90%

Ratios to Average Net Assets G

Expenses before expense reductions

2.11% A

2.53% A

Expenses net of voluntary waivers, if any

2.00% A

2.05% A

Expenses net of all reductions

1.92% A

2.01% A

Net investment income (loss)

(.82)% A

(1.28)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 56,436

$ 17,822

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Financial Highlights - Institutional Class

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 E

Selected Per-Share Data

Net asset value, beginning of period

$ 12.54

$ 10.00

Income from Investment Operations

Net investment income (loss) D

.01

(.01)

Net realized and unrealized gain (loss)

.33

2.55

Total from investment operations

.34

2.54

Distributions from net realized gain

(.01)

-

Net asset value, end of period

$ 12.87

$ 12.54

Total Return B, C

2.71%

25.40%

Ratios to Average Net Assets F

Expenses before expense reductions

1.09% A

1.38% A

Expenses net of voluntary waivers, if any

1.02% A

1.05% A

Expenses net of all reductions

.94% A

1.01% A

Net investment income (loss)

.16% A

(.28)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 80,227

$ 6,757

Portfolio turnover rate

118% A

40% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

E For the period August 12, 2004 (commencement of operations) to December 31, 2004.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2005 (Unaudited)

1. Significant Accounting Policies.

Fidelity Advisor Mid Cap II 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, 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 expense reductions also differ by class.

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

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.

Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Foreign Currency - continued

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

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. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

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. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions 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.

Semiannual Report

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses 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

$ 37,088,409

Unrealized depreciation

(12,680,625)

Net unrealized appreciation (depreciation)

$ 24,407,784

Cost for federal income tax purposes

$ 418,396,782

2. Operating Policies.

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

3. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $431,334,691 and $151,943,579, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the fund's average net assets and a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .57% of the fund's average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

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, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

Distribution
Fee

Service
Fee

Paid to
FDC

Retained
by FDC

Class A

0%

.25%

$ 79,103

$ 804

Class T

.25%

.25%

288,222

35,304

Class B

.75%

.25%

127,353

96,146

Class C

.75%

.25%

175,719

126,474

$ 670,397

$ 258,728

Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries 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 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.

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

Retained
by FDC

Class A

$ 254,213

Class T

46,741

Class B*

15,506

Class C*

2,696

$ 319,156

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

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the

Semiannual Report

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

respective classes of the fund. FIIOC pays 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, were as follows:

Amount

% of
Average
Net Assets

Class A

$ 116,549

.37 *

Class T

149,939

.26 *

Class B

48,031

.38 *

Class C

64,861

.37 *

Institutional Class

69,151

.34 *

$ 448,531

* Annualized

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Money Market Central Funds seek preservation of capital and current income. The Central Funds do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $352,519 for the period.

Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $17,292 for the period.

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. During the period, there were no borrowings on this line of credit.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Security Lending.

The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.

7. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.

Expense
Limitations

Reimbursement
from adviser

Class A

1.30% - 1.25%*

$ 36,716

Class T

1.55% - 1.50%*

2,667

Class B

2.05% - 2.00%*

15,378

Class C

2.05% - 2.00%*

18,769

Institutional Class

1.05% - 1.00%*

14,229

$ 87,759

* Expense limitation in effect at period end.

Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $107,172 for the period. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $256.

Semiannual Report

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.

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30,
2005

Period ended
December 31,
2004A

From net realized gain

Class A

$ 35,334

$ -

Class T

31,905

-

Institutional Class

7,242

-

Total

$ 74,481

$ -

A For the period August 12, 2004 (commencement of operations) to December 31, 2004.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Share Transactions.

Transactions for each class of shares were as follows:

Shares

Dollars

Six months ended June 30,
2005

Period ended
December 31,
2004 A

Six months ended
June 30,
2005

Period ended
December 31,
2004 A

Class A

Shares sold

5,116,545

2,793,502

$ 64,173,462

$ 31,810,120

Reinvestment of distributions

2,634

-

33,112

-

Shares redeemed

(396,607)

(43,346)

(5,004,929)

(510,122)

Net increase (decrease)

4,722,572

2,750,156

$ 59,201,645

$ 31,299,998

Class T

Shares sold

9,424,251

5,009,964

$ 117,815,332

$ 56,923,971

Reinvestment of distributions

2,451

-

30,782

-

Shares redeemed

(677,683)

(204,179)

(8,482,964)

(2,350,782)

Net increase (decrease)

8,749,019

4,805,785

$ 109,363,150

$ 54,573,189

Class B

Shares sold

1,708,580

1,266,901

$ 21,291,063

$ 14,392,485

Shares redeemed

(302,139)

(23,048)

(3,776,666)

(277,523)

Net increase (decrease)

1,406,441

1,243,853

$ 17,514,397

$ 14,114,962

Class C

Shares sold

3,198,568

1,436,802

$ 39,829,450

$ 16,336,650

Shares redeemed

(204,889)

(9,738)

(2,579,466)

(115,404)

Net increase (decrease)

2,993,679

1,427,064

$ 37,249,984

$ 16,221,246

Institutional Class

Shares sold

6,018,989

552,710

$ 76,154,680

$ 6,208,664

Reinvestment of distributions

471

-

5,930

-

Shares redeemed

(324,624)

(13,733)

(4,072,165)

(164,035)

Net increase (decrease)

5,694,836

538,977

$ 72,088,445

$ 6,044,629

A For the period August 12, 2004 (commencement of operations) to December 31, 2004.

Semiannual Report

Proxy Voting Results

A special meeting of the fund's shareholders was held on March 16, 2005. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval. A

# of
Votes

% of
Votes

Affirmative

6,491,014,660.12

68.216

Against

1,110,401,588.77

11.670

Abstain

364,285,629.16

3.828

Broker
Non-Votes

1,549,650,136.89

16.286

TOTAL

9,515,352,014.94

100.000

PROPOSAL 2

To elect a Board of Trustees. A

# of
Votes

% of
Votes

Laura B. Cronin

Affirmative

9,191,010,795.38

96.591

Withheld

324,341,219.56

3.409

TOTAL

9,515,352,014.94

100.000

Dennis J. Dirks

Affirmative

9,199,049,001.28

96.676

Withheld

316,303,013.66

3.324

TOTAL

9,515,352,014.94

100.000

Robert M. Gates

Affirmative

9,189,372,083.98

96.574

Withheld

325,979,930.96

3.426

TOTAL

9,515,352,014.94

100.000

George H. Heilmeier

Affirmative

9,191,183,741.44

96.593

Withheld

324,168,273.50

3.407

TOTAL

9,515,352,014.94

100.000

Abigail P. Johnson

Affirmative

9,174,139,780.45

96.414

Withheld

341,212,234.49

3.586

TOTAL

9,515,352,014.94

100.000

# of
Votes

% of
Votes

Edward C. Johnson 3d

Affirmative

9,167,856,276.61

96.348

Withheld

347,495,738.33

3.652

TOTAL

9,515,352,014.94

100.000

Marie L. Knowles

Affirmative

9,196,147,863.00

96.645

Withheld

319,204,151.94

3.355

TOTAL

9,515,352,014.94

100.000

Ned C. Lautenbach

Affirmative

9,193,561,981.00

96.618

Withheld

321,790,033.94

3.382

TOTAL

9,515,352,014.94

100.000

Marvin L. Mann

Affirmative

9,184,085,149.84

96.519

Withheld

331,266,865.10

3.481

TOTAL

9,515,352,014.94

100.000

William O. McCoy

Affirmative

9,187,317,991.01

96.553

Withheld

328,034,023.93

3.447

TOTAL

9,515,352,014.94

100.000

Robert L. Reynolds

Affirmative

9,193,543,677.54

96.618

Withheld

321,808,337.40

3.382

TOTAL

9,515,352,014.94

100.000

Cornelia M. Small

Affirmative

9,193,853,155.26

96.621

Withheld

321,498,859.68

3.379

TOTAL

9,515,352,014.94

100.000

William S. Stavropoulos

Affirmative

9,191,672,816.31

96.598

Withheld

323,679,198.63

3.402

TOTAL

9,515,352,014.94

100.000

Kenneth L. Wolfe

Affirmative

9,193,356,513.29

96.616

Withheld

321,995,501.650

3.384

TOTAL

9,515,352,014.94

100.000

A Denotes trust-wide proposals and voting results.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

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

Citibank, N.A.

New York, NY

AMP-USAN-0805
1.801445.100

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

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

Mid Cap II

Fund - Institutional Class

Semiannual Report

June 30, 2005

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

Ned Johnson's message to shareholders.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Proxy Voting Results

<Click Here>

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 Commission'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 Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent 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

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.

First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.

Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.

Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.

For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.

Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2005 to June 30, 2005).

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.

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.

Semiannual Report

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.

Beginning
Account Value
January 1, 2005

Ending
Account Value
June 30, 2005

Expenses Paid
During Period*
January 1, 2005
to June 30, 2005

Class A

Actual

$ 1,000.00

$ 1,026.40

$ 6.28

HypotheticalA

$ 1,000.00

$ 1,018.60

$ 6.26

Class T

Actual

$ 1,000.00

$ 1,024.40

$ 7.53

HypotheticalA

$ 1,000.00

$ 1,017.36

$ 7.50

Class B

Actual

$ 1,000.00

$ 1,022.40

$ 10.03

HypotheticalA

$ 1,000.00

$ 1,014.88

$ 9.99

Class C

Actual

$ 1,000.00

$ 1,022.40

$ 10.03

HypotheticalA

$ 1,000.00

$ 1,014.88

$ 9.99

Institutional Class

Actual

$ 1,000.00

$ 1,027.10

$ 5.13

HypotheticalA

$ 1,000.00

$ 1,019.74

$ 5.11

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

1.25%

Class T

1.50%

Class B

2.00%

Class C

2.00%

Institutional Class

1.02%

Semiannual Report

Investment Changes

Top Ten Stocks as of June 30, 2005

% of fund's
net assets

% of fund's net assets
6 months ago

Invitrogen Corp.

3.0

2.6

Assurant, Inc.

1.8

0.9

NVIDIA Corp.

1.7

0.6

Newmont Mining Corp.

1.7

2.7

NII Holdings, Inc.

1.3

0.4

QIAGEN NV

1.2

1.2

CONSOL Energy, Inc.

1.1

0.8

Valero Energy Corp.

1.1

0.9

Caremark Rx, Inc.

1.1

1.2

Freeport-McMoRan Copper & Gold, Inc. Class B

1.1

1.3

15.1

Top Five Market Sectors as of June 30, 2005

% of fund's
net assets

% of fund's net assets
6 months ago

Health Care

17.3

15.6

Energy

15.3

13.6

Information Technology

14.1

9.1

Consumer Discretionary

13.1

10.7

Industrials

10.3

10.8

Asset Allocation (% of fund's net assets)

As of June 30, 2005 *

As of December 31, 2004 * *

Stocks 95.4%

Stocks 96.4%

Short-Term
Investments and
Net Other Assets 4.6%

Short-Term
Investments and
Net Other Assets 3.6%

* Foreign
investments

24.4%

** Foreign
investments

27.0%



Semiannual Report

Investments June 30, 2005 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 95.3%

Shares

Value (Note 1)

CONSUMER DISCRETIONARY - 13.0%

Auto Components - 1.7%

Autoliv, Inc.

30

$ 1,314

Bharat Forge Ltd.

4

133

BorgWarner, Inc.

17,300

928,491

Gentex Corp.

57,800

1,051,960

IMPCO Technologies, Inc. (a)

156,400

752,284

LKQ Corp. (a)

109,213

2,965,133

New Focus Auto Tech Holdings Ltd.

1,016,000

132,050

Nokian Tyres Ltd.

95,020

1,731,726

7,563,091

Automobiles - 0.4%

Bajaj Auto Ltd.

33,171

1,055,673

Geely Automobile Holdings Ltd.

4,095,000

263,480

Hero Honda Motors Ltd.

6

80

Mahindra & Mahindra Ltd.

5,100

65,429

Maruti Udyog Ltd.

26,753

285,929

1,670,591

Distributors - 0.0%

Eicher Motors Ltd.

30,058

210,147

Diversified Consumer Services - 0.8%

Bright Horizons Family Solutions, Inc. (a)

79,972

3,256,460

Princeton Review, Inc. (a)

31,145

181,575

3,438,035

Hotels, Restaurants & Leisure - 2.1%

Buffalo Wild Wings, Inc. (a)

17,860

557,232

Outback Steakhouse, Inc.

50,000

2,262,000

Red Robin Gourmet Burgers, Inc. (a)

9,800

607,404

Royal Caribbean Cruises Ltd.

39,200

1,895,712

Sonic Corp. (a)

133,600

4,078,808

TAJ GVK Hotels & Resorts Ltd.

7,529

75,065

9,476,221

Household Durables - 0.5%

Alba PLC

19

127

LG Electronics, Inc.

15,620

993,520

Rational AG

3,900

420,043

Sekisui House Ltd.

86,000

869,267

2,282,957

Internet & Catalog Retail - 0.2%

Alloy, Inc. (a)

1,700

8,738

Common Stocks - continued

Shares

Value (Note 1)

CONSUMER DISCRETIONARY - continued

Internet & Catalog Retail - continued

Provide Commerce, Inc. (a)

5,100

$ 110,109

Rakuten, Inc.

813

651,690

770,537

Leisure Equipment & Products - 0.8%

Beneteau SA

3,600

279,472

Jumbo SA (a)

64,500

665,026

Oakley, Inc.

64,300

1,095,029

RC2 Corp. (a)

600

22,542

Sega Sammy Holdings, Inc.

12,300

754,159

Trigano SA

7,100

618,199

3,434,427

Media - 1.2%

Astral Media, Inc. Class A (non-vtg.)

34,100

878,106

Clear Media Ltd. (a)

1,000

869

Getty Images, Inc. (a)

500

37,130

Harris Interactive, Inc. (a)

165,358

805,293

JC Decaux SA (a)

24,200

613,534

Omnicom Group, Inc.

12,700

1,014,222

Salem Communications Corp. Class A (a)

11,200

222,208

Univision Communications, Inc. Class A (a)

38,400

1,057,920

Zee Telefilms Ltd.

140,097

500,933

5,130,215

Multiline Retail - 0.1%

Don Quijote Co. Ltd. (d)

6,000

326,766

Pantaloon Retail India Ltd.

6,611

209,507

PT Mitra Adiperkasa Tbk

238,000

27,074

563,347

Specialty Retail - 4.2%

Abercrombie & Fitch Co. Class A

500

34,350

AC Moore Arts & Crafts, Inc. (a)

90,706

2,867,217

Advance Auto Parts, Inc. (a)

8,000

516,400

Best Buy Co., Inc.

40,100

2,748,855

CarMax, Inc. (a)

50,900

1,356,485

Dixons Group PLC

494,600

1,391,294

Edgars Consolidated Stores Ltd.

11,800

514,498

GameStop Corp.:

Class A (a)

4,500

147,195

Class B (a)

45,400

1,357,460

GOME Electrical Appliances Holdings Ltd.

629,000

542,311

Common Stocks - continued

Shares

Value (Note 1)

CONSUMER DISCRETIONARY - continued

Specialty Retail - continued

Guitar Center, Inc. (a)

12,001

$ 700,498

Hot Topic, Inc. (a)

37,300

713,176

KOMERI Co. Ltd.

66,000

1,779,361

Nitori Co. Ltd.

22,400

1,605,699

Peacock Group PLC

115,700

528,614

PETsMART, Inc.

41,200

1,250,420

Ross Stores, Inc.

4,400

127,204

Tiffany & Co., Inc.

5,700

186,732

18,367,769

Textiles, Apparel & Luxury Goods - 1.0%

Columbia Sportswear Co. (a)

30,100

1,486,639

Quiksilver, Inc. (a)

108,800

1,738,624

Ted Baker PLC

115,140

1,032,513

4,257,776

TOTAL CONSUMER DISCRETIONARY

57,165,113

CONSUMER STAPLES - 5.5%

Beverages - 0.1%

Grupo Modelo SA de CV Series C

25,400

79,841

Jones Soda Co. (a)

24,000

144,000

223,841

Food & Staples Retailing - 0.7%

Heng Tai Consumables Group Ltd.

796,000

151,600

Massmart Holdings Ltd.

77,600

522,429

Metro AG

20,300

1,007,454

Plant Co. Ltd.

9,800

123,533

Shinsegae Co. Ltd.

160

50,575

Sugi Pharmacy Co. Ltd.

20,400

610,685

Whole Foods Market, Inc.

4,800

567,840

3,034,116

Food Products - 3.2%

Barry Callebaut AG

5

1,268

Bunge Ltd.

43,200

2,738,880

Chaoda Modern Agriculture (Holdings) Ltd.

491,700

194,567

Corn Products International, Inc.

34,500

819,720

Glanbia PLC

64,200

217,537

Green Mountain Coffee Roasters, Inc. (a)

7,739

262,584

Groupe Danone (d)

20,500

1,803,547

Common Stocks - continued

Shares

Value (Note 1)

CONSUMER STAPLES - continued

Food Products - continued

Groupe Danone sponsored ADR

57,800

$ 1,011,500

Hershey Co.

32,900

2,043,090

IAWS Group PLC (Ireland)

700

9,793

Lindt & Spruengli AG

36

551,804

Lindt & Spruengli AG (participation certificate)

272

405,989

McCormick & Co., Inc. (non-vtg.)

48,300

1,578,444

People's Food Holdings Ltd.

1,175,000

606,371

Poore Brothers, Inc. (a)

70,200

313,794

PT Indofood Sukses Makmur Tbk

5,373,500

605,773

Smithfield Foods, Inc. (a)

6,700

182,709

Wimm-Bill-Dann Foods OJSC sponsored ADR (a)

4,000

65,720

Wm. Wrigley Jr. Co.

12,800

881,152

14,294,242

Household Products - 0.0%

Godrej Consumer Products Ltd.

13,000

97,212

Personal Products - 1.5%

Avon Products, Inc.

110,700

4,189,995

Beauty China Holdings Ltd.

401,000

230,726

Hengan International Group Co. Ltd.

1,666,000

1,157,689

Natura Cosmeticos SA

23,000

733,063

Ojsc Concern Kalina sponsored ADR

3,000

85,950

Shiseido Co. Ltd. sponsored ADR

27,500

343,750

6,741,173

TOTAL CONSUMER STAPLES

24,390,584

ENERGY - 15.3%

Energy Equipment & Services - 9.3%

Cal Dive International, Inc. (a)

46,900

2,456,153

Cooper Cameron Corp. (a)

39,500

2,450,975

Core Laboratories NV (a)

56,200

1,507,284

FMC Technologies, Inc. (a)

38,100

1,218,057

Global Industries Ltd. (a)

264,400

2,247,400

GlobalSantaFe Corp.

73,000

2,978,400

Gulf Island Fabrication, Inc.

20,900

415,492

Halliburton Co.

21,400

1,023,348

Helmerich & Payne, Inc.

21,700

1,018,164

Nabors Industries Ltd. (a)

47,300

2,867,326

National Oilwell Varco, Inc. (a)

41,611

1,978,187

Noble Corp.

47,900

2,946,329

Common Stocks - continued

Shares

Value (Note 1)

ENERGY - continued

Energy Equipment & Services - continued

Oceaneering International, Inc. (a)

37,800

$ 1,460,970

Parker Drilling Co. (a)

366,100

2,566,361

Pason Systems, Inc.

148,000

2,572,968

Patterson-UTI Energy, Inc.

28,700

798,721

Precision Drilling Corp. (a)

43,500

1,714,508

Pride International, Inc. (a)

46,500

1,195,050

Rowan Companies, Inc.

65,600

1,948,976

Smith International, Inc.

20,600

1,312,220

Superior Energy Services, Inc. (a)

48,500

863,300

Transocean, Inc. (a)

47,900

2,585,163

Weatherford International Ltd. (a)

10,700

620,386

40,745,738

Oil, Gas & Consumable Fuels - 6.0%

Arch Coal, Inc.

18,400

1,002,248

Comstock Resources, Inc. (a)

47,300

1,196,217

CONSOL Energy, Inc.

94,600

5,068,668

Forest Oil Corp. (a)

17,100

718,200

Golar LNG Ltd. (Nasdaq) (a)

377

4,524

Massey Energy Co.

44,106

1,663,678

Newfield Exploration Co. (a)

28,700

1,144,843

Nippon Oil Corp.

107,000

726,487

Peabody Energy Corp.

46,800

2,435,472

Premcor, Inc.

21,000

1,557,780

Southwestern Energy Co. (a)

90,800

4,265,784

Tesoro Petroleum Corp.

19,400

902,488

TransMontaigne, Inc. (a)

70,000

735,000

Valero Energy Corp.

63,800

5,047,218

World Fuel Services Corp.

3,100

72,571

26,541,178

TOTAL ENERGY

67,286,916

FINANCIALS - 9.9%

Capital Markets - 0.2%

Matsui Securities Co. Ltd. (d)

38,800

417,020

Mitsubishi Securities Co. Ltd.

39,000

345,674

762,694

Commercial Banks - 3.5%

Banco Itau Holding Financeira SA sponsored ADR (non-vtg.)

5,200

481,000

Banco Pastor SA (Reg.)

37,100

1,481,587

Common Stocks - continued

Shares

Value (Note 1)

FINANCIALS - continued

Commercial Banks - continued

Bank Austria Creditanstalt AG

31,500

$ 3,287,445

Bank of Baroda

118,334

546,500

Bank of Fukuoka Ltd.

250,000

1,480,997

Bank of India

646,919

1,540,106

Bank of Yokohama Ltd.

239,000

1,381,353

Boston Private Financial Holdings, Inc.

9,800

246,960

Canara Bank

78,404

381,425

Center Financial Corp., California

4,100

101,803

Colonial Bancgroup, Inc.

21,500

474,290

Commerce Bancorp, Inc., New Jersey

17,300

524,363

Corp. Bank

7,279

60,802

HDFC Bank Ltd. sponsored ADR

8,100

376,731

Hiroshima Bank Ltd.

155,100

707,638

ICICI Bank Ltd. sponsored ADR

6,100

133,285

Juroku Bank Ltd.

42,000

227,600

PrivateBancorp, Inc.

2,200

77,836

State Bank of India

60,650

1,062,278

The Keiyo Bank Ltd.

54,000

276,074

Wintrust Financial Corp.

9,800

513,030

15,363,103

Consumer Finance - 0.0%

EZCORP, Inc. Class A (a)

16,755

179,614

Diversified Financial Services - 0.4%

Kotak Mahindra Bank Ltd.

53,264

481,306

Moody's Corp.

10,400

467,584

TSX Group, Inc.

29,300

873,117

1,822,007

Insurance - 4.5%

AFLAC, Inc.

105,400

4,561,712

American International Group, Inc.

14,900

865,690

Assurant, Inc.

219,900

7,938,390

Brown & Brown, Inc.

2,400

107,856

Mercury General Corp.

2,800

152,656

Ohio Casualty Corp.

10,000

241,800

Ping An Insurance (Group) Co. of China, Ltd. (H Shares)

572,500

920,892

Progressive Corp.

8,900

879,409

Reinsurance Group of America, Inc.

22,300

1,037,173

Universal American Financial Corp. (a)

1,600

36,192

Common Stocks - continued

Shares

Value (Note 1)

FINANCIALS - continued

Insurance - continued

USI Holdings Corp. (a)

16,900

$ 217,672

W.R. Berkley Corp.

79,650

2,841,912

19,801,354

Real Estate - 0.9%

CBL & Associates Properties, Inc.

2,800

120,596

Equity Office Properties Trust

41,200

1,363,720

Pan Pacific Retail Properties, Inc.

10,500

696,990

Plum Creek Timber Co., Inc.

13,800

500,940

United Dominion Realty Trust, Inc. (SBI)

51,100

1,228,955

3,911,201

Thrifts & Mortgage Finance - 0.4%

Doral Financial Corp.

14,600

241,484

Golden West Financial Corp., Delaware

7,700

495,726

Housing Development Finance Corp. Ltd.

13,692

280,564

NetBank, Inc.

93,429

870,758

1,888,532

TOTAL FINANCIALS

43,728,505

HEALTH CARE - 17.3%

Biotechnology - 6.0%

Affymetrix, Inc. (a)

21,400

1,154,102

Albany Molecular Research, Inc. (a)

121,800

1,705,200

Charles River Laboratories International, Inc. (a)

32,524

1,569,283

Genentech, Inc. (a)

2,200

176,616

Harvard Bioscience, Inc. (a)

263,711

828,053

ImmunoGen, Inc. (a)

4,600

26,634

Invitrogen Corp. (a)

160,400

13,359,717

Martek Biosciences (a)(d)

13,598

516,044

Neogen Corp. (a)

1,600

22,880

QIAGEN NV (a)(d)

473,700

5,466,498

Stratagene Corp. (a)

138,212

1,201,062

Strategic Diagnostics, Inc. (a)

101,900

349,517

26,375,606

Health Care Equipment & Supplies - 2.7%

Beckman Coulter, Inc.

70,000

4,449,900

Bio-Rad Laboratories, Inc. Class A (a)

8,100

479,601

BioLase Technology, Inc.

5,100

32,232

Bruker BioSciences Corp. (a)

2,000

7,980

Common Stocks - continued

Shares

Value (Note 1)

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Endocare, Inc. (a)

7,500

$ 30,000

Epix Pharmaceuticals, Inc. (a)

17,200

152,220

Gen-Probe, Inc. (a)

1,800

65,214

IDEXX Laboratories, Inc. (a)

8,900

554,737

Kinetic Concepts, Inc. (a)

3,700

222,000

Meridian Bioscience, Inc.

40,900

775,055

Millipore Corp. (a)

51,300

2,910,249

Molecular Devices Corp. (a)

20

433

Synthes, Inc.

6,752

741,237

Thermo Electron Corp. (a)

24,300

652,941

Waters Corp. (a)

24,600

914,382

11,988,181

Health Care Providers & Services - 7.1%

Aetna, Inc.

42,900

3,552,978

Allscripts Healthcare Solutions, Inc. (a)

48,500

805,585

Caremark Rx, Inc. (a)

110,600

4,923,912

Cerner Corp. (a)

10,100

686,497

Community Health Systems, Inc. (a)

13,800

521,502

Covance, Inc. (a)

89,700

4,024,839

Eclipsys Corp. (a)

52,200

734,454

HealthExtras, Inc. (a)

22,900

459,603

Humana, Inc. (a)

39,200

1,557,808

ICON PLC sponsored ADR (a)

15,700

544,790

IMS Health, Inc.

127,600

3,160,652

Lifeline Systems, Inc. (a)

10,200

327,624

Omnicare, Inc.

23,100

980,133

Pharmaceutical Product Development, Inc. (a)

64,200

3,008,412

ProxyMed, Inc. (a)

39,388

308,802

ResCare, Inc. (a)

87,900

1,191,924

Sunrise Senior Living, Inc. (a)(d)

30,800

1,662,584

Triad Hospitals, Inc. (a)

9,300

508,152

TriZetto Group, Inc. (a)

18,000

252,180

VCA Antech, Inc. (a)

10,000

242,500

VistaCare, Inc. Class A (a)

28,900

533,783

WebMD Corp. (a)

120,600

1,238,562

31,227,276

Pharmaceuticals - 1.5%

Bentley Pharmaceuticals, Inc. (a)

19,700

215,715

Connetics Corp. (a)

30,100

530,964

Dr. Reddy's Laboratories Ltd. sponsored ADR

10,300

174,276

Common Stocks - continued

Shares

Value (Note 1)

HEALTH CARE - continued

Pharmaceuticals - continued

Hi-Tech Pharmacal Co., Inc. (a)

80

$ 2,549

Merck KGaA

32,300

2,574,716

Ranbaxy Laboratories Ltd. sponsored GDR

27,006

668,399

Roche Holding AG:

(participation certificate)

14,165

1,792,660

sponsored ADR

5,800

365,922

6,325,201

TOTAL HEALTH CARE

75,916,264

INDUSTRIALS - 10.3%

Aerospace & Defense - 0.8%

DRS Technologies, Inc.

13,000

666,640

Esterline Technologies Corp. (a)

23,500

941,880

L-3 Communications Holdings, Inc.

21,700

1,661,786

3,270,306

Air Freight & Logistics - 0.5%

C.H. Robinson Worldwide, Inc.

10,854

631,703

Hub Group, Inc. Class A (a)

59,088

1,480,154

2,111,857

Airlines - 0.2%

ACE Aviation Holdings, Inc. Class A (a)

25,700

835,900

Building Products - 0.0%

Quixote Corp.

6,900

135,309

Commercial Services & Supplies - 1.0%

Bennett Environmental, Inc. (a)

1,600

4,871

ChoicePoint, Inc. (a)

24,800

993,240

Fullcast Co. Ltd.

573

1,451,810

Randstad Holdings NV

7,000

241,933

Societe Generale de Surveillance Holding SA (SGS) (Reg.)

1,188

816,162

Stericycle, Inc. (a)

20,442

1,028,641

4,536,657

Construction & Engineering - 1.7%

Chicago Bridge & Iron Co. NV (NY Shares)

51,600

1,179,576

Dycom Industries, Inc. (a)

12,300

243,663

Foster Wheeler Ltd. (a)

40,995

805,962

Jacobs Engineering Group, Inc. (a)

41,200

2,317,912

Shaw Group, Inc. (a)

101,600

2,185,416

Common Stocks - continued

Shares

Value (Note 1)

INDUSTRIALS - continued

Construction & Engineering - continued

United Group Ltd.

65,100

$ 477,984

United Group Ltd. New (a)

14,000

100,766

7,311,279

Electrical Equipment - 1.5%

Baldor Electric Co.

10,900

265,088

C&D Technologies, Inc.

49,200

452,148

Crompton Greaves Ltd.

8,700

88,061

Rockwell Automation, Inc.

88,100

4,291,351

Roper Industries, Inc.

22,200

1,584,414

6,681,062

Industrial Conglomerates - 0.6%

Max India Ltd. (a)

14,252

174,843

Teleflex, Inc.

43,200

2,564,784

2,739,627

Machinery - 3.6%

AGCO Corp. (a)

180,600

3,453,072

Dover Corp.

20,400

742,152

Flowserve Corp. (a)

111,300

3,367,938

Gardner Denver, Inc. (a)

18,400

645,472

Harsco Corp.

47,300

2,580,215

Heidelberger Druckmaschinen AG

16,600

486,141

Krones AG

190

22,993

Tata Motors Ltd.

45,134

441,685

Terex Corp. (a)

24,900

981,060

Wabtec Corp.

16,500

354,420

Watts Water Technologies, Inc. Class A

63,600

2,129,964

Zenon Environmental, Inc. (a)

28,800

581,077

15,786,189

Marine - 0.1%

Alexander & Baldwin, Inc.

13,200

611,820

Hanjin Shipping Co. Ltd.

10

251

612,071

Road & Rail - 0.2%

Landstar System, Inc. (a)

26,300

792,156

Trading Companies & Distributors - 0.1%

MSC Industrial Direct Co., Inc. Class A

11,000

371,250

TOTAL INDUSTRIALS

45,183,663

Common Stocks - continued

Shares

Value (Note 1)

INFORMATION TECHNOLOGY - 14.1%

Communications Equipment - 1.5%

C-COR, Inc. (a)

144,370

$ 988,935

NETGEAR, Inc. (a)

74,596

1,387,486

Plantronics, Inc.

58,600

2,130,696

TANDBERG ASA

214,200

2,294,660

6,801,777

Computers & Peripherals - 1.4%

Apple Computer, Inc. (a)

115,051

4,235,027

iCAD, Inc. (a)

72,140

322,466

SanDisk Corp. (a)

69,800

1,656,354

6,213,847

Electronic Equipment & Instruments - 3.7%

CDW Corp.

64,920

3,706,283

Elec & Eltek International Co. Ltd.

160,000

406,400

Hon Hai Precision Industries Co. Ltd.

881,000

4,575,359

KEMET Corp. (a)

77,100

485,730

Keyence Corp.

1,400

313,818

Measurement Specialties, Inc. (a)

10,600

246,026

Mettler-Toledo International, Inc. (a)

19,900

926,942

Symbol Technologies, Inc.

400,400

3,951,948

Vishay Intertechnology, Inc. (a)

145,900

1,731,833

Xyratex Ltd.

1,800

27,918

16,372,257

Internet Software & Services - 1.1%

aQuantive, Inc. (a)

17,450

309,214

eCollege.com (a)

9,100

108,290

RealNetworks, Inc. (a)

367,272

1,825,342

Sohu.com, Inc. (a)

3,900

85,488

ValueClick, Inc. (a)

75,309

928,560

VeriSign, Inc. (a)

24,700

710,372

Yahoo! Japan Corp.

329

691,195

4,658,461

IT Services - 1.6%

Affiliated Computer Services, Inc. Class A (a)

14,384

735,022

Anteon International Corp. (a)

36,500

1,665,130

Lionbridge Technologies, Inc. (a)

89,500

606,810

ManTech International Corp. Class A (a)

18,000

558,720

Maximus, Inc.

31,300

1,104,577

Net One Systems Co. Ltd.

5

12,894

Obic Co. Ltd.

6,100

1,035,688

Common Stocks - continued

Shares

Value (Note 1)

INFORMATION TECHNOLOGY - continued

IT Services - continued

SI International, Inc. (a)

27,408

$ 821,144

TIS, Inc.

15,000

512,601

7,052,586

Office Electronics - 0.1%

Neopost SA

2,600

228,900

Semiconductors & Semiconductor Equipment - 3.0%

Analog Devices, Inc.

31,500

1,175,265

Cabot Microelectronics Corp. (a)

13,800

400,062

Credence Systems Corp. (a)

91,700

829,885

IXYS Corp. (a)

34,300

486,374

LSI Logic Corp. (a)

221,000

1,876,290

NVIDIA Corp. (a)

283,856

7,584,632

Skyworks Solutions, Inc. (a)

26,400

194,568

Varian Semiconductor Equipment Associates, Inc. (a)

13,900

514,300

13,061,376

Software - 1.7%

Activision, Inc. (a)

51,200

845,824

Adobe Systems, Inc.

14,500

414,990

Electronic Arts, Inc. (a)

8,600

486,846

Intuit, Inc. (a)

6,183

278,915

Macrovision Corp. (a)

26,341

593,726

NAVTEQ Corp.

14,400

535,392

Open Solutions, Inc. (a)

45,000

913,950

Renaissance Learning, Inc.

41,623

844,947

RSA Security, Inc. (a)(d)

81,400

934,472

Salesforce.com, Inc.

1,300

26,624

Synopsys, Inc. (a)

44,400

740,148

THQ, Inc. (a)

30,000

878,100

7,493,934

TOTAL INFORMATION TECHNOLOGY

61,883,138

MATERIALS - 7.4%

Chemicals - 2.3%

Airgas, Inc.

58,000

1,430,860

Asian Paints India Ltd.

32,396

306,262

Crompton Corp.

89,300

1,263,595

Ecolab, Inc.

39,900

1,291,164

K&S AG

4,600

254,843

Monsanto Co.

27,000

1,697,490

Common Stocks - continued

Shares

Value (Note 1)

MATERIALS - continued

Chemicals - continued

Nitto Denko Corp.

16,900

$ 969,154

Olin Corp.

29,300

534,432

Praxair, Inc.

5,800

270,280

Sinopec Shanghai Petrochemical Co. Ltd. sponsored ADR

3,800

131,100

Tokuyama Corp.

127,000

904,648

Tosoh Corp.

274,500

1,141,017

United Phosphorous Ltd.

9

168

10,195,013

Construction Materials - 0.2%

Florida Rock Industries, Inc.

9,300

682,155

Containers & Packaging - 0.0%

Essel Propack Ltd.

23,235

170,354

Silgan Holdings, Inc.

94

5,287

175,641

Metals & Mining - 4.6%

Agnico-Eagle Mines Ltd.

109,900

1,375,096

Compania de Minas Buenaventura SA sponsored ADR

45,300

1,041,447

Fording Canadian Coal Trust

3,200

292,994

Freeport-McMoRan Copper & Gold, Inc. Class B

127,300

4,766,112

Goldcorp, Inc.

13,200

209,980

Golden Star Resources Ltd. (a)

4,700

14,577

Harmony Gold Mining Co. Ltd.

105,200

900,512

High River Gold Mines Ltd. (a)

138,800

152,938

Kinross Gold Corp. (a)

393,800

2,410,627

Newmont Mining Corp.

192,700

7,521,081

Nippon Steel Corp.

307,300

714,877

Teck Cominco Ltd. Class B (sub. vtg.)

27,400

924,515

20,324,756

Paper & Forest Products - 0.3%

Lee & Man Paper Manufacturing Ltd. (a)

968,000

822,134

Sino-Forest Corp. (a)

222,900

502,125

1,324,259

TOTAL MATERIALS

32,701,824

TELECOMMUNICATION SERVICES - 1.8%

Diversified Telecommunication Services - 0.3%

Philippine Long Distance Telephone Co. sponsored ADR

43,000

1,249,150

Common Stocks - continued

Shares

Value (Note 1)

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - 1.5%

America Movil SA de CV Series L sponsored ADR

12,100

$ 721,281

Bharti Televentures Ltd. (a)

40,647

235,851

NII Holdings, Inc. (a)

89,903

5,748,398

6,705,530

TOTAL TELECOMMUNICATION SERVICES

7,954,680

UTILITIES - 0.7%

Gas Utilities - 0.2%

SEMCO Energy, Inc. (a)

161,800

969,182

Independent Power Producers & Energy Traders - 0.5%

AES Corp. (a)

126,800

2,076,984

TOTAL UTILITIES

3,046,166

TOTAL COMMON STOCKS

(Cost $392,565,426)

419,256,853

Nonconvertible Preferred Stocks - 0.1%

CONSUMER DISCRETIONARY - 0.1%

Automobiles - 0.1%

Porsche AG (non-vtg.)(Cost $499,486)

700

526,594

Money Market Funds - 5.2%

Fidelity Cash Central Fund, 3.21% (b)

18,943,034

18,943,034

Fidelity Securities Lending Cash Central Fund, 3.23% (b)(c)

4,078,085

4,078,085

TOTAL MONEY MARKET FUNDS

(Cost $23,021,119)

23,021,119

TOTAL INVESTMENT PORTFOLIO - 100.6%

(Cost $416,086,031)

442,804,566

NET OTHER ASSETS - (0.6)%

(2,759,066)

NET ASSETS - 100%

$ 440,045,500

Legend

(a) Non-income producing

(b) 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 listing of the fund's holdings as of its most recent quarter end is available upon request.

(c) Investment made with cash collateral received from securities on loan.

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

Other Information

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

United States of America

75.6%

Japan

5.0%

Canada

3.0%

India

1.9%

Netherlands

1.9%

Cayman Islands

1.8%

Germany

1.1%

Taiwan

1.0%

France

1.0%

Others (individually less than 1%)

7.7%

100.0%

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

June 30, 2005 (Unaudited)

Assets

Investment in securities, at value (including securities loaned of $3,883,010) (cost $416,086,031) - See accompanying schedule

$ 442,804,566

Foreign currency held at value (cost $228,083)

226,635

Receivable for investments sold

2,561,871

Receivable for foreign currency contracts

1,385,316

Receivable for fund shares sold

2,913,794

Dividends receivable

229,037

Interest receivable

75,054

Prepaid expenses

6,518

Other receivables

110,032

Total assets

450,312,823

Liabilities

Payable to custodian bank

$ 282,681

Payable for investments purchased

3,552,498

Payable for foreign currency contracts

1,274,939

Payable for fund shares redeemed

471,895

Accrued management fee

205,330

Distribution fees payable

159,015

Other affiliated payables

112,710

Other payables and accrued expenses

130,170

Collateral on securities loaned, at value

4,078,085

Total liabilities

10,267,323

Net Assets

$ 440,045,500

Net Assets consist of:

Paid in capital

$ 417,671,645

Accumulated net investment loss

(428,714)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(3,814,890)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

26,617,459

Net Assets

$ 440,045,500

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

Semiannual Report

Statement of Assets and Liabilities - continued

June 30, 2005 (Unaudited)

Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($95,931,315 ÷ 7,472,728 shares)

$ 12.84

Maximum offering price per share (100/94.25 of $12.84)

$ 13.62

Class T:
Net Asset Value and redemption price per share ($173,634,589 ÷ 13,554,804 shares)

$ 12.81

Maximum offering price per share (100/96.50 of $12.81)

$ 13.27

Class B:
Net Asset Value and offering price per share ($33,817,151 ÷ 2,650,294 shares)A

$ 12.76

Class C:
Net Asset Value and offering price per share ($56,435,856 ÷ 4,420,743 shares)A

$ 12.77

Institutional Class:
Net Asset Value, offering price and redemption price per share ($80,226,589 ÷ 6,233,813 shares)

$ 12.87

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

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Six months ended June 30, 2005 (Unaudited)

Investment Income

Dividends

$ 1,185,582

Interest

354,107

Security lending

24,035

Total income

1,563,724

Expenses

Management fee

$ 801,185

Transfer agent fees

448,531

Distribution fees

670,397

Accounting and security lending fees

57,907

Independent trustees' compensation

518

Custodian fees and expenses

73,416

Registration fees

112,734

Audit

19,709

Legal

596

Miscellaneous

167

Total expenses before reductions

2,185,160

Expense reductions

(195,187)

1,989,973

Net investment income (loss)

(426,249)

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities

(3,533,330)

Foreign currency transactions

(27,004)

Total net realized gain (loss)

(3,560,334)

Change in net unrealized appreciation (depreciation) on:

Investment securities (net of increase in deferred foreign taxes of $61,790)

14,041,668

Assets and liabilities in foreign currencies

(4,148)

Total change in net unrealized appreciation (depreciation)

14,037,520

Net gain (loss)

10,477,186

Net increase (decrease) in net assets resulting from operations

$ 10,050,937

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

Semiannual Report

Statement of Changes in Net Assets

Six months ended
June 30, 2005
(Unaudited)

For the period August 12, 2004 (commencement
of operations) to
December 31, 2004

Increase (Decrease) in Net Assets

Operations

Net investment income (loss)

$ (426,249)

$ (194,575)

Net realized gain (loss)

(3,560,334)

12,035

Change in net unrealized appreciation (depreciation)

14,037,520

12,579,939

Net increase (decrease) in net assets resulting
from operations

10,050,937

12,397,399

Distributions to shareholders from net realized gain

(74,481)

-

Share transactions - net increase (decrease)

295,417,621

122,254,024

Total increase (decrease) in net assets

305,394,077

134,651,423

Net Assets

Beginning of period

134,651,423

-

End of period (including accumulated net investment loss of $428,714 and accumulated net investment loss of $2,465, respectively)

$ 440,045,500

$ 134,651,423

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

Semiannual Report

Financial Highlights - Class A

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.52

$ 10.00

Income from Investment Operations

Net investment income (loss) E

- H

(.02)

Net realized and unrealized gain (loss)

.33

2.54

Total from investment operations

.33

2.52

Distributions from net realized gain

(.01)

-

Net asset value, end of period

$ 12.84

$ 12.52

Total Return B, C, D

2.64%

25.20%

Ratios to Average Net Assets G

Expenses before expense reductions

1.37% A

1.79% A

Expenses net of voluntary waivers, if any

1.25% A

1.30% A

Expenses net of all reductions

1.17% A

1.26% A

Net investment income (loss)

(.07)% A

(.53)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 95,931

$ 34,438

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

H Amount represents less than $.01 per share.

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

Semiannual Report

Financial Highlights - Class T

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.51

$ 10.00

Income from Investment Operations

Net investment income (loss) E

(.02)

(.03)

Net realized and unrealized gain (loss)

.33

2.54

Total from investment operations

.31

2.51

Distributions from net realized gain

(.01)

-

Net asset value, end of period

$ 12.81

$ 12.51

Total Return B, C, D

2.44%

25.10%

Ratios to Average Net Assets G

Expenses before expense reductions

1.51% A

1.96% A

Expenses net of voluntary waivers, if any

1.50% A

1.55% A

Expenses net of all reductions

1.43% A

1.51% A

Net investment income (loss)

(.32)% A

(.78)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 173,635

$ 60,107

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Financial Highlights - Class B

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.48

$ 10.00

Income from Investment Operations

Net investment income (loss) E

(.05)

(.06)

Net realized and unrealized gain (loss)

.33

2.54

Total from investment operations

.28

2.48

Net asset value, end of period

$ 12.76

$ 12.48

Total Return B, C, D

2.24%

24.80%

Ratios to Average Net Assets G

Expenses before expense reductions

2.12% A

2.61% A

Expenses net of voluntary waivers, if any

2.00% A

2.05% A

Expenses net of all reductions

1.92% A

2.01% A

Net investment income (loss)

(.82)% A

(1.28)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 33,817

$ 15,527

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Financial Highlights - Class C

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 F

Selected Per-Share Data

Net asset value, beginning of period

$ 12.49

$ 10.00

Income from Investment Operations

Net investment income (loss) E

(.05)

(.06)

Net realized and unrealized gain (loss)

.33

2.55

Total from investment operations

.28

2.49

Net asset value, end of period

$ 12.77

$ 12.49

Total Return B, C, D

2.24%

24.90%

Ratios to Average Net Assets G

Expenses before expense reductions

2.11% A

2.53% A

Expenses net of voluntary waivers, if any

2.00% A

2.05% A

Expenses net of all reductions

1.92% A

2.01% A

Net investment income (loss)

(.82)% A

(1.28)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 56,436

$ 17,822

Portfolio turnover rate

118% A

40% A

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 For the period August 12, 2004 (commencement of operations) to December 31, 2004.

G 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Financial Highlights - Institutional Class

Six months ended June 30, 2005

Period ended December 31,

(Unaudited)

2004 E

Selected Per-Share Data

Net asset value, beginning of period

$ 12.54

$ 10.00

Income from Investment Operations

Net investment income (loss) D

.01

(.01)

Net realized and unrealized gain (loss)

.33

2.55

Total from investment operations

.34

2.54

Distributions from net realized gain

(.01)

-

Net asset value, end of period

$ 12.87

$ 12.54

Total Return B, C

2.71%

25.40%

Ratios to Average Net Assets F

Expenses before expense reductions

1.09% A

1.38% A

Expenses net of voluntary waivers, if any

1.02% A

1.05% A

Expenses net of all reductions

.94% A

1.01% A

Net investment income (loss)

.16% A

(.28)% A

Supplemental Data

Net assets, end of period (000 omitted)

$ 80,227

$ 6,757

Portfolio turnover rate

118% A

40% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

E For the period August 12, 2004 (commencement of operations) to December 31, 2004.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2005 (Unaudited)

1. Significant Accounting Policies.

Fidelity Advisor Mid Cap II 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, 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 expense reductions also differ by class.

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

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.

Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Foreign Currency - continued

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

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. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

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. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions 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.

Semiannual Report

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses 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

$ 37,088,409

Unrealized depreciation

(12,680,625)

Net unrealized appreciation (depreciation)

$ 24,407,784

Cost for federal income tax purposes

$ 418,396,782

2. Operating Policies.

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

3. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $431,334,691 and $151,943,579, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the fund's average net assets and a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .57% of the fund's average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

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, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

Distribution
Fee

Service
Fee

Paid to
FDC

Retained
by FDC

Class A

0%

.25%

$ 79,103

$ 804

Class T

.25%

.25%

288,222

35,304

Class B

.75%

.25%

127,353

96,146

Class C

.75%

.25%

175,719

126,474

$ 670,397

$ 258,728

Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries 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 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.

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

Retained
by FDC

Class A

$ 254,213

Class T

46,741

Class B*

15,506

Class C*

2,696

$ 319,156

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

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the

Semiannual Report

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

respective classes of the fund. FIIOC pays 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, were as follows:

Amount

% of
Average
Net Assets

Class A

$ 116,549

.37 *

Class T

149,939

.26 *

Class B

48,031

.38 *

Class C

64,861

.37 *

Institutional Class

69,151

.34 *

$ 448,531

* Annualized

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Money Market Central Funds seek preservation of capital and current income. The Central Funds do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $352,519 for the period.

Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $17,292 for the period.

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. During the period, there were no borrowings on this line of credit.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Security Lending.

The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.

7. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.

Expense
Limitations

Reimbursement
from adviser

Class A

1.30% - 1.25%*

$ 36,716

Class T

1.55% - 1.50%*

2,667

Class B

2.05% - 2.00%*

15,378

Class C

2.05% - 2.00%*

18,769

Institutional Class

1.05% - 1.00%*

14,229

$ 87,759

* Expense limitation in effect at period end.

Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $107,172 for the period. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $256.

Semiannual Report

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.

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30,
2005

Period ended
December 31,
2004A

From net realized gain

Class A

$ 35,334

$ -

Class T

31,905

-

Institutional Class

7,242

-

Total

$ 74,481

$ -

A For the period August 12, 2004 (commencement of operations) to December 31, 2004.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Share Transactions.

Transactions for each class of shares were as follows:

Shares

Dollars

Six months ended June 30,
2005

Period ended
December 31,
2004 A

Six months ended
June 30,
2005

Period ended
December 31,
2004 A

Class A

Shares sold

5,116,545

2,793,502

$ 64,173,462

$ 31,810,120

Reinvestment of distributions

2,634

-

33,112

-

Shares redeemed

(396,607)

(43,346)

(5,004,929)

(510,122)

Net increase (decrease)

4,722,572

2,750,156

$ 59,201,645

$ 31,299,998

Class T

Shares sold

9,424,251

5,009,964

$ 117,815,332

$ 56,923,971

Reinvestment of distributions

2,451

-

30,782

-

Shares redeemed

(677,683)

(204,179)

(8,482,964)

(2,350,782)

Net increase (decrease)

8,749,019

4,805,785

$ 109,363,150

$ 54,573,189

Class B

Shares sold

1,708,580

1,266,901

$ 21,291,063

$ 14,392,485

Shares redeemed

(302,139)

(23,048)

(3,776,666)

(277,523)

Net increase (decrease)

1,406,441

1,243,853

$ 17,514,397

$ 14,114,962

Class C

Shares sold

3,198,568

1,436,802

$ 39,829,450

$ 16,336,650

Shares redeemed

(204,889)

(9,738)

(2,579,466)

(115,404)

Net increase (decrease)

2,993,679

1,427,064

$ 37,249,984

$ 16,221,246

Institutional Class

Shares sold

6,018,989

552,710

$ 76,154,680

$ 6,208,664

Reinvestment of distributions

471

-

5,930

-

Shares redeemed

(324,624)

(13,733)

(4,072,165)

(164,035)

Net increase (decrease)

5,694,836

538,977

$ 72,088,445

$ 6,044,629

A For the period August 12, 2004 (commencement of operations) to December 31, 2004.

Semiannual Report

Proxy Voting Results

A special meeting of the fund's shareholders was held on March 16, 2005. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval. A

# of
Votes

% of
Votes

Affirmative

6,491,014,660.12

68.216

Against

1,110,401,588.77

11.670

Abstain

364,285,629.16

3.828

Broker
Non-Votes

1,549,650,136.89

16.286

TOTAL

9,515,352,014.94

100.000

PROPOSAL 2

To elect a Board of Trustees. A

# of
Votes

% of
Votes

Laura B. Cronin

Affirmative

9,191,010,795.38

96.591

Withheld

324,341,219.56

3.409

TOTAL

9,515,352,014.94

100.000

Dennis J. Dirks

Affirmative

9,199,049,001.28

96.676

Withheld

316,303,013.66

3.324

TOTAL

9,515,352,014.94

100.000

Robert M. Gates

Affirmative

9,189,372,083.98

96.574

Withheld

325,979,930.96

3.426

TOTAL

9,515,352,014.94

100.000

George H. Heilmeier

Affirmative

9,191,183,741.44

96.593

Withheld

324,168,273.50

3.407

TOTAL

9,515,352,014.94

100.000

Abigail P. Johnson

Affirmative

9,174,139,780.45

96.414

Withheld

341,212,234.49

3.586

TOTAL

9,515,352,014.94

100.000

# of
Votes

% of
Votes

Edward C. Johnson 3d

Affirmative

9,167,856,276.61

96.348

Withheld

347,495,738.33

3.652

TOTAL

9,515,352,014.94

100.000

Marie L. Knowles

Affirmative

9,196,147,863.00

96.645

Withheld

319,204,151.94

3.355

TOTAL

9,515,352,014.94

100.000

Ned C. Lautenbach

Affirmative

9,193,561,981.00

96.618

Withheld

321,790,033.94

3.382

TOTAL

9,515,352,014.94

100.000

Marvin L. Mann

Affirmative

9,184,085,149.84

96.519

Withheld

331,266,865.10

3.481

TOTAL

9,515,352,014.94

100.000

William O. McCoy

Affirmative

9,187,317,991.01

96.553

Withheld

328,034,023.93

3.447

TOTAL

9,515,352,014.94

100.000

Robert L. Reynolds

Affirmative

9,193,543,677.54

96.618

Withheld

321,808,337.40

3.382

TOTAL

9,515,352,014.94

100.000

Cornelia M. Small

Affirmative

9,193,853,155.26

96.621

Withheld

321,498,859.68

3.379

TOTAL

9,515,352,014.94

100.000

William S. Stavropoulos

Affirmative

9,191,672,816.31

96.598

Withheld

323,679,198.63

3.402

TOTAL

9,515,352,014.94

100.000

Kenneth L. Wolfe

Affirmative

9,193,356,513.29

96.616

Withheld

321,995,501.650

3.384

TOTAL

9,515,352,014.94

100.000

A Denotes trust-wide proposals and voting results.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

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

Citibank, N.A.

New York, NY

AMPI-USAN-0805
1.801447.100

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

(Fidelity Investment logo)(registered trademark)
FidelityAdvisor

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

Semiannual Report

June 30, 2005

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

Ned Johnson's message to shareholders.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Proxy Voting Results

<Click Here>

Board Approval of Investment Advisory Contracts and Management Fees

<Click Here>

Central Fund Investments

<Click Here>

Complete list of investments for Fidelity's fixed-income central funds.

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 Commission'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 Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent 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

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.

First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.

Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.

Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.

For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.

Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2005 to June 30, 2005).

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.

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.

Semiannual Report

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.

Beginning
Account Value
January 1, 2005

Ending
Account Value
June 30, 2005

Expenses Paid
During Period*
January 1, 2005
to June 30, 2005

Class A

Actual

$ 1,000.00

$ 1,012.00

$ 4.99

Hypothetical A

$ 1,000.00

$ 1,019.84

$ 5.01

Class T

Actual

$ 1,000.00

$ 1,012.40

$ 5.34

Hypothetical A

$ 1,000.00

$ 1,019.49

$ 5.36

Class B

Actual

$ 1,000.00

$ 1,008.20

$ 8.71

Hypothetical A

$ 1,000.00

$ 1,016.12

$ 8.75

Class C

Actual

$ 1,000.00

$ 1,007.70

$ 9.16

Hypothetical A

$ 1,000.00

$ 1,015.67

$ 9.20

Institutional Class

Actual

$ 1,000.00

$ 1,012.70

$ 4.09

Hypothetical A

$ 1,000.00

$ 1,020.73

$ 4.11

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

1.00%

Class T

1.07%

Class B

1.75%

Class C

1.84%

Institutional Class

.82%

Semiannual Report

Investment Changes

Top Five Holdings as of June 30, 2005

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

U.S. Treasury Obligations

15.5

13.2

Fannie Mae

5.6

3.5

German Federal Republic

2.8

5.1

Freddie Mac

2.5

1.6

Brazilian Federative Republic

2.3

2.5

28.7

Top Five Market Sectors as of June 30, 2005

% of fund's
net assets

% of fund's net assets
6 months ago

Consumer Discretionary

12.0

11.3

Telecommunication Services

8.4

9.5

Energy

4.8

5.1

Financials

4.3

6.8

Materials

3.8

4.9

Quality Diversification (% of fund's net assets)

As of June 30, 2005

As of December 31, 2004

U.S. Government and U.S. Government
Agency
Obligations 24.8%

U.S. Government and
U.S. Government
Agency
Obligations 19.6%

AAA, AA, A 10.8%

AAA, AA, A 14.8%

BBB 4.7%

BBB 4.0%

BB 13.1%

BB 14.9%

B 24.4%

B 27.8%

CCC, CC, C 7.4%

CCC, CC, C 8.3%

Not Rated 2.2%

Not Rated 2.3%

Equities 1.2%

Equities 1.4%

Short-Term
Investments and
Net Other Assets 11.4%

Short-Term
Investments and
Net Other Assets 6.9%



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

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

Asset Allocation (% of fund's net assets)

As of June 30, 2005 *

As of December 31, 2004 **

Corporate Bonds 40.7%

Corporate Bonds 47.1%

U.S. Government and U.S. Government
Agency
Obligations 24.8%

U.S. Government and
U.S. Government
Agency
Obligations 19.6%

Foreign Government
& Government
Agency
Obligations 19.0%

Foreign Government
& Government
Agency
Obligations 22.8%

Stocks 1.2%

Stocks 1.4%

Other Investments 2.9%

Other Investments 2.2%

Short-Term
Investments and
Net Other Assets*** 11.4%

Short-Term
Investments and
Net Other Assets 6.9%

* Foreign investments

29.9%

** Foreign investments

36.2%

*** Includes short-term foreign government obligations of .3%.



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

Semiannual Report

Investments June 30, 2005 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 40.6%

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Convertible Bonds - 0.1%

INFORMATION TECHNOLOGY - 0.1%

Semiconductors & Semiconductor Equipment - 0.1%

Atmel Corp. 0% 5/23/21

$ 4,190

$ 1,946

ON Semiconductor Corp. 0% 4/15/24

450

323

2,269

Nonconvertible Bonds - 40.5%

CONSUMER DISCRETIONARY - 10.7%

Auto Components - 0.9%

Affinia Group, Inc. 9% 11/30/14 (f)

6,760

5,678

Delco Remy International, Inc.:

8.625% 12/15/07

2,066

2,014

9.375% 4/15/12

705

575

11% 5/1/09

1,810

1,665

Intermet Corp. 9.75% 6/15/09 (c)

2,240

963

Stoneridge, Inc. 11.5% 5/1/12

35

36

Tenneco Automotive, Inc. 8.625% 11/15/14

5,980

6,010

TRW Automotive Acquisition Corp.:

9.375% 2/15/13

2,503

2,766

11% 2/15/13

2,988

3,421

United Components, Inc. 9.375% 6/15/13

360

363

Visteon Corp. 7% 3/10/14

3,640

3,003

26,494

Automobiles - 0.1%

Fiat Finance & Trade Ltd. 5.75% 5/25/06

EUR

1,000

1,213

Renault SA 0.3338% 4/23/07 (i)

JPY

200,000

1,794

3,007

Diversified Consumer Services - 0.2%

Service Corp. International (SCI):

6.75% 4/1/16

2,800

2,849

7% 6/15/17 (f)

2,420

2,493

5,342

Hotels, Restaurants & Leisure - 2.7%

Carrols Corp. 9% 1/15/13 (f)

7,595

7,690

Chukchansi Economic Development Authority 14.5% 6/15/09 (f)

490

599

Domino's, Inc. 8.25% 7/1/11

516

552

Gaylord Entertainment Co.:

6.75% 11/15/14

3,710

3,599

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Hotels, Restaurants & Leisure - continued

Gaylord Entertainment Co.: - continued

8% 11/15/13

$ 920

$ 968

Herbst Gaming, Inc.:

7% 11/15/14

2,500

2,506

8.125% 6/1/12

835

887

ITT Corp. 7.375% 11/15/15

2,560

2,842

Landry's Seafood Restaurants, Inc. 7.5% 12/15/14

5,170

5,015

Mandalay Resort Group:

6.375% 12/15/11

1,220

1,232

6.5% 7/31/09

1,995

2,037

MGM MIRAGE:

6% 10/1/09

1,050

1,059

6.625% 7/15/15 (f)

5,280

5,333

6.75% 9/1/12

1,310

1,349

8.5% 9/15/10

435

482

Mohegan Tribal Gaming Authority 6.875% 2/15/15 (f)

2,140

2,188

Morton's Restaurant Group, Inc. 7.5% 7/1/10

1,215

1,191

Penn National Gaming, Inc.:

6.75% 3/1/15 (f)

4,375

4,353

8.875% 3/15/10

1,105

1,182

Scientific Games Corp. 6.25% 12/15/12 (f)

660

663

Speedway Motorsports, Inc. 6.75% 6/1/13

3,495

3,600

Starwood Hotels & Resorts Worldwide, Inc.:

7.375% 5/1/07

1,480

1,545

7.875% 5/1/12

985

1,108

Station Casinos, Inc.:

6% 4/1/12

1,790

1,817

6.5% 2/1/14

1,670

1,710

Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11

3,735

3,992

Town Sports International Holdings, Inc. 0% 2/1/14 (d)

5,035

2,895

Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10

5,760

6,610

Uno Restaurant Corp. 10% 2/15/11 (f)

2,690

2,542

Vail Resorts, Inc. 6.75% 2/15/14

5,060

5,136

Virgin River Casino Corp./RBG LLC/B&BB, Inc.:

0% 1/15/13 (d)(f)

1,200

840

9% 1/15/12 (f)

710

740

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Hotels, Restaurants & Leisure - continued

Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (f)

$ 529

$ 571

Wheeling Island Gaming, Inc. 10.125% 12/15/09

735

779

79,612

Household Durables - 1.0%

D.R. Horton, Inc. 7.875% 8/15/11

170

190

Goodman Global Holdings, Inc.:

6.41% 6/15/12 (f)(i)

680

663

7.875% 12/15/12 (f)

13,850

12,811

K. Hovnanian Enterprises, Inc.:

6% 1/15/10

730

715

6.25% 1/15/15

1,320

1,300

7.75% 5/15/13

3,480

3,654

KB Home 8.625% 12/15/08

1,350

1,458

Meritage Homes Corp. 6.25% 3/15/15

1,790

1,665

Norcraft Holdings LP/Norcraft Capital Corp. 0% 9/1/12 (d)

1,910

1,318

Standard Pacific Corp.:

7.75% 3/15/13

750

782

9.25% 4/15/12

1,240

1,364

Technical Olympic USA, Inc. 7.5% 1/15/15

2,000

1,770

Tempur-Pedic, Inc./Tempur Production USA, Inc. 10.25% 8/15/10

1,015

1,132

28,822

Leisure Equipment & Products - 0.0%

Riddell Bell Holdings, Inc. 8.375% 10/1/12

720

720

Media - 5.3%

Cablevision Systems Corp. 8% 4/15/12

14,265

13,944

CanWest Media, Inc. 8% 9/15/12

860

903

Charter Communications Holding II LLC/Charter Communications Holdings II Capital Corp. 10.25% 9/15/10

2,720

2,747

Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:

0% 5/15/11 (d)

830

548

10% 4/1/09

535

413

10.75% 10/1/09

1,670

1,303

11.75% 1/15/10

505

394

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Media - continued

Charter Communications Operating LLC/Charter Communications Operating Capital Corp. 8% 4/30/12 (f)

$ 2,110

$ 2,110

Cinemark USA, Inc. 9% 2/1/13

200

207

Corus Entertainment, Inc. 8.75% 3/1/12

1,970

2,118

CSC Holdings, Inc.:

6.75% 4/15/12 (f)

3,730

3,506

7.625% 4/1/11

2,580

2,541

7.625% 7/15/18

12,970

12,451

7.875% 2/15/18

8,295

8,067

Dex Media, Inc. 8% 11/15/13

8,615

9,132

EchoStar DBS Corp.:

6.375% 10/1/11

3,705

3,673

6.625% 10/1/14

9,095

8,981

9.125% 1/15/09

42

45

Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14

1,505

1,565

Entravision Communications Corp. 8.125% 3/15/09

1,930

2,007

Haights Cross Communications, Inc. 0% 8/15/11 (d)

1,550

946

Haights Cross Operating Co. 11.75% 8/15/11

1,790

1,951

Houghton Mifflin Co.:

0% 10/15/13 (d)

11,050

8,011

8.25% 2/1/11

1,905

1,972

9.875% 2/1/13

6,890

7,286

IMAX Corp. 9.625% 12/1/10

1,810

1,901

Innova S. de R.L. 9.375% 9/19/13

9,135

10,265

Lamar Media Corp. 7.25% 1/1/13

370

389

Liberty Media Corp.:

5.7% 5/15/13

5,315

4,943

8.5% 7/15/29

5,320

5,375

Livent, Inc. yankee 9.375% 10/15/04 (c)

300

9

Marquee Holdings, Inc. 0% 8/15/14 (d)

2,650

1,603

PanAmSat Corp. 6.375% 1/15/08

490

497

R.H. Donnelley Corp. 6.875% 1/15/13

6,750

6,885

Radio One, Inc.:

6.375% 2/15/13 (f)

3,810

3,743

8.875% 7/1/11

2,065

2,215

Rainbow National LLC & RNS Co. Corp.:

8.75% 9/1/12 (f)

3,280

3,583

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Media - continued

Rainbow National LLC & RNS Co. Corp.: - continued

10.375% 9/1/14 (f)

$ 7,590

$ 8,729

Rogers Cable, Inc.:

5.5% 3/15/14

650

611

6.25% 6/15/13

2,090

2,080

6.75% 3/15/15

800

820

Sun Media Corp. Canada 7.625% 2/15/13

635

672

Susquehanna Media Co. 7.375% 4/15/13

770

801

The Reader's Digest Association, Inc. 6.5% 3/1/11

3,670

3,707

Videotron Ltee 6.875% 1/15/14

550

557

156,206

Multiline Retail - 0.1%

Marks & Spencer Group PLC 5.125% 11/7/06

EUR

2,000

2,503

Pinault Printemps-Redoute SA 5% 1/23/09

EUR

2,000

2,581

5,084

Specialty Retail - 0.1%

AutoNation, Inc. 9% 8/1/08

1,850

2,026

CSK Automotive, Inc. 7% 1/15/14

410

390

2,416

Textiles, Apparel & Luxury Goods - 0.3%

AAC Group Holding Corp. 0% 10/1/12 (d)(f)

5,165

3,461

Jostens Holding Corp. 0% 12/1/13 (d)

1,560

1,096

Levi Strauss & Co. 9.75% 1/15/15

3,880

3,832

8,389

TOTAL CONSUMER DISCRETIONARY

316,092

CONSUMER STAPLES - 0.7%

Food & Staples Retailing - 0.4%

Ahold Finance USA, Inc.:

6.5% 3/14/17

GBP

1,500

2,624

8.25% 7/15/10

3,755

4,136

J. Sainsbury PLC 5.25% 5/17/07

GBP

1,000

1,802

Reddy Ice Holdings, Inc. 0% 11/1/12 (d)(f)

3,250

2,373

Southern States Cooperative, Inc. 10.5% 11/1/10 (f)

925

920

11,855

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 0.3%

Dean Foods Co.:

6.625% 5/15/09

$ 90

$ 94

6.9% 10/15/17

979

1,023

Doane Pet Care Co. 10.75% 3/1/10

800

856

Hines Nurseries, Inc. 10.25% 10/1/11

370

374

Michael Foods, Inc. 8% 11/15/13

420

429

National Beef Packing Co. LLC/National Beef Finance Corp. 10.5% 8/1/11

1,730

1,652

Philipp Brothers Chemicals, Inc. 9.875% 6/1/08

1,909

1,814

Tate & Lyle International Finance PLC 5.75% 10/6/06

EUR

800

1,007

7,249

Household Products - 0.0%

Central Garden & Pet Co. 9.125% 2/1/13

260

279

Personal Products - 0.0%

Elizabeth Arden, Inc. 7.75% 1/15/14

470

489

TOTAL CONSUMER STAPLES

19,872

ENERGY - 4.6%

Energy Equipment & Services - 0.6%

CHC Helicopter Corp. 7.375% 5/1/14

3,185

3,185

Grant Prideco, Inc. 9% 12/15/09

170

185

Hanover Compressor Co.:

8.625% 12/15/10

490

515

9% 6/1/14

1,260

1,342

Ocean Rig Norway AS 8.375% 7/1/13 (f)

1,020

1,035

Petroliam Nasional BHD (Petronas) 7.625% 10/15/26 (Reg. S)

5,030

6,413

Seabulk International, Inc. 9.5% 8/15/13

3,290

3,697

SESI LLC 8.875% 5/15/11

60

64

16,436

Oil, Gas & Consumable Fuels - 4.0%

ANR Pipeline, Inc. 8.875% 3/15/10

2,520

2,759

Chesapeake Energy Corp.:

6.875% 1/15/16

2,879

2,994

7% 8/15/14

865

915

7.5% 6/15/14

850

918

7.75% 1/15/15

615

663

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

El Paso Corp. 7.625% 8/16/07 (f)

$ 1,280

$ 1,312

El Paso Production Holding Co. 7.75% 6/1/13

4,000

4,280

Encore Acquisition Co.:

6.25% 4/15/14

1,500

1,493

8.375% 6/15/12

755

823

Energy Partners Ltd. 8.75% 8/1/10

3,530

3,707

EXCO Resources, Inc. 7.25% 1/15/11

570

567

Forest Oil Corp. 8% 12/15/11

480

529

General Maritime Corp. 10% 3/15/13

2,945

3,195

Harvest Operations Corp. 7.875% 10/15/11

1,170

1,123

Houston Exploration Co. 7% 6/15/13

410

422

Hurricane Finance BV:

9.625% 2/12/10 (f)

300

329

9.625% 2/12/10 (Reg. S)

2,055

2,250

InterNorth, Inc. 9.625% 3/15/06 (c)

935

305

Luscar Coal Ltd. 9.75% 10/15/11

1,350

1,485

Markwest Energy Partners LP/ Markwest Energy Finance Corp. 6.875% 11/1/14 (f)

525

522

Massey Energy Co. 6.625% 11/15/10

2,850

2,893

OAO Gazprom:

9.625% 3/1/13

6,350

7,770

10.5% 10/21/09

3,620

4,335

Pan American Energy LLC 7.125% 10/27/09 (f)

2,880

2,945

Pemex Project Funding Master Trust:

4.71% 6/15/10 (f)(i)

7,455

7,686

5.5% 2/24/25 (f)

EUR

750

887

7.75% 9/28/49

4,216

4,332

8.625% 2/1/22

7,150

8,777

Petrobras Energia SA 9.375% 10/30/13

2,715

2,959

Plains Exploration & Production Co. 8.75% 7/1/12

1,610

1,747

Range Resources Corp. 7.375% 7/15/13

2,190

2,310

Ship Finance International Ltd. 8.5% 12/15/13

5,015

4,814

Teekay Shipping Corp. 8.875% 7/15/11

5,635

6,424

The Coastal Corp.:

6.375% 2/1/09

230

226

7.75% 6/15/10

2,180

2,226

7.75% 10/15/35

235

220

Venoco, Inc. 8.75% 12/15/11

1,470

1,441

Vintage Petroleum, Inc. 8.25% 5/1/12

1,000

1,080

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Williams Co., Inc. Credit Linked Certificate Trust III 6.75% 4/15/09 (f)

$ 1,820

$ 1,886

Williams Companies, Inc.:

7.125% 9/1/11

675

729

7.625% 7/15/19

9,487

10,673

7.75% 6/15/31

1,235

1,355

7.875% 9/1/21

2,950

3,359

8.125% 3/15/12

515

585

8.75% 3/15/32

2,510

3,012

YPF SA:

10% 11/2/28

845

1,027

yankee 9.125% 2/24/09

1,385

1,513

117,802

TOTAL ENERGY

134,238

FINANCIALS - 3.9%

Capital Markets - 0.3%

Banco BPI SA 0.105% 2/12/07 (i)

JPY

100,000

895

Bank of Scotland International Australia Ltd. 2.7071% 9/7/06 (i)

CAD

1,500

1,225

Macquarie Bank Ltd. 0.2038% 2/10/06 (i)

JPY

200,000

1,802

Merrill Lynch & Co., Inc. 0.3744% 5/28/08 (i)

JPY

200,000

1,813

UFJ Bank Ltd. 0.6794% 5/29/11 (i)

JPY

200,000

1,807

7,542

Commercial Banks - 0.9%

Australia & New Zealand Banking Group Ltd. 2.7329% 12/29/06 (i)

CAD

1,500

1,225

Banca Popolare di Lodi Investment Trust 6.742% 6/30/49 (i)

EUR

1,650

2,065

Banque Federative du Credit Mutuel (BFCM) 2.233% 7/24/06 (i)

EUR

500

604

Commonwealth Bank of Australia 2.7443% 11/28/06 (i)

CAD

1,750

1,429

Dresdner Bank AG for Kyivstar GSM 7.75% 4/27/12 (f)

1,050

1,051

European Investment Bank 4% 10/15/37

EUR

2,600

3,252

Export-Import Bank of Korea 0.1519% 11/4/05 (i)

JPY

500,000

4,504

Korea Development Bank (Reg.) 0.87% 6/28/10

JPY

300,000

2,707

Rabobank Nederland 2.6929% 2/23/07 (i)

CAD

250

204

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

FINANCIALS - continued

Commercial Banks - continued

San Paolo IMI Spa 2.404% 6/28/16 (i)

EUR

1,000

$ 1,213

Standard Bank London Ltd. 8.125% 9/30/09

2,900

3,052

Standard Chartered Bank PLC 3.625% 2/3/17 (e)

EUR

385

473

UBS Luxembourg SA for Vimpel Communications 10% 6/16/09

4,200

4,520

Westpac Banking Corp. 2.6971% 1/27/06 (i)

CAD

1,500

1,225

27,524

Consumer Finance - 0.4%

Countrywide Home Loans, Inc. 2.8371% 3/7/06 (i)

CAD

1,500

1,225

Ford Credit Europe PLC 3.103% 9/30/09 (i)

EUR

1,500

1,599

Ford Motor Credit Co. 6.625% 6/16/08

7,925

7,826

General Motors Acceptance Corp. 3.897% 7/5/05 (i)

EUR

1,000

1,210

GMAC International Finance BV 3.997% 10/3/05 (i)

EUR

1,000

1,211

Metris Companies, Inc. 10.125% 7/15/06

215

217

13,288

Diversified Financial Services - 1.0%

Aries Vermogensverwaltngs GmbH 9.6% 10/25/14 (f)

1,500

1,939

BAT International Finance PLC:

2.997% 4/3/06 (i)

EUR

1,500

1,823

3.625% 6/29/12

EUR

2,000

2,417

Caixa Finance BV 2.175% 11/21/06 (i)

EUR

1,000

1,210

Canada Housing Trust No. 1 4.65% 9/15/09

CAD

16,600

14,272

CCO Holdings LLC/CCO Holdings Capital Corp. 8.75% 11/15/13

955

938

Citigroup, Inc. 4.25% 2/25/30 (i)

EUR

1,500

1,806

Global Cash Access LLC/Global Cash Access Finance Corp. 8.75% 3/15/12

3,090

3,360

Santander International Debt SA 2.164% 12/14/06 (i)

EUR

500

605

Volkswagen International Finance NV 0.3875% 11/30/07 (i)

JPY

200,000

1,795

30,165

Insurance - 0.1%

AIG SunAmerica Institutional Funding III Ltd. 5.5% 3/7/11

EUR

1,000

1,365

Eureko BV 5.125% 6/29/49 (i)

EUR

350

430

1,795

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

FINANCIALS - continued

Real Estate - 0.9%

American Real Estate Partners/American Real Estate Finance Corp.:

7.125% 2/15/13 (f)

$ 3,630

$ 3,576

8.125% 6/1/12

4,955

5,116

BF Saul REIT 7.5% 3/1/14

3,400

3,536

Crescent Real Estate Equities LP/Crescent Finance Co. 9.25% 4/15/09

3,225

3,419

Senior Housing Properties Trust:

7.875% 4/15/15

4,040

4,323

8.625% 1/15/12

4,370

4,883

WT Finance Aust Pty Ltd./Westfield Europe Finance PLC/WEA Finance 3.625% 6/27/12

EUR

1,000

1,219

26,072

Thrifts & Mortgage Finance - 0.3%

Credit Logement SA 2.711% 12/2/49 (i)

EUR

500

605

Nationwide Building Society 0.0788% 3/3/06 (i)

JPY

200,000

1,803

Residential Capital Corp.:

6.375% 6/30/10 (f)

6,985

7,028

6.875% 6/30/15 (f)

485

497

9,933

TOTAL FINANCIALS

116,319

HEALTH CARE - 1.8%

Biotechnology - 0.0%

Polypore, Inc. 8.75% 5/15/12

1,675

1,570

Health Care Equipment & Supplies - 0.1%

Bio-Rad Laboratories, Inc. 7.5% 8/15/13

1,770

1,894

Health Care Providers & Services - 1.4%

AmeriPath, Inc. 10.5% 4/1/13

2,805

2,819

AmerisourceBergen Corp.:

7.25% 11/15/12

670

737

8.125% 9/1/08

465

502

Beverly Enterprises, Inc. 7.875% 6/15/14

5,285

5,761

Fresenius Medical Care Capital Trust IV 7.875% 6/15/11

1,000

1,075

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

HEALTH CARE - continued

Health Care Providers & Services - continued

HCA, Inc.:

5.75% 3/15/14

$ 5,020

$ 4,970

6.75% 7/15/13

3,715

3,906

National Nephrology Associates, Inc. 9% 11/1/11 (f)

490

550

PacifiCare Health Systems, Inc. 10.75% 6/1/09

908

999

Psychiatric Solutions, Inc. 10.625% 6/15/13

197

219

Rural/Metro Corp. 9.875% 3/15/15 (f)

1,700

1,645

Triad Hospitals, Inc. 7% 11/15/13

4,205

4,321

U.S. Oncology, Inc. 9% 8/15/12

1,300

1,391

Vanguard Health Holding Co. I 0% 10/1/15 (d)

2,450

1,743

Vanguard Health Holding Co. II LLC 9% 10/1/14

9,070

9,773

40,411

Pharmaceuticals - 0.3%

CDRV Investors, Inc. 0% 1/1/15 (d)(f)

3,760

1,861

Elan Finance PLC/Elan Finance Corp. 7.75% 11/15/11 (f)

1,585

1,363

Leiner Health Products, Inc. 11% 6/1/12

1,885

1,828

VWR International, Inc.:

6.875% 4/15/12

115

114

8% 4/15/14

330

315

Warner Chilcott Corp. 8.75% 2/1/15 (f)

2,525

2,449

7,930

TOTAL HEALTH CARE

51,805

INDUSTRIALS - 2.9%

Aerospace & Defense - 0.3%

Alliant Techsystems, Inc. 8.5% 5/15/11

2,020

2,151

Bombardier, Inc. 6.25% 2/23/06

GBP

750

1,358

Hexcel Corp. 6.75% 2/1/15

2,350

2,338

Orbimage Holdings, Inc. 13.19% 7/1/12 (f)(i)

1,720

1,802

7,649

Airlines - 0.5%

American Airlines, Inc. pass thru trust certificates:

7.377% 5/23/19

2,355

1,649

7.379% 5/23/16

842

589

AMR Corp.:

9% 8/1/12

1,100

858

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INDUSTRIALS - continued

Airlines - continued

AMR Corp.: - continued

9% 9/15/16

$ 1,290

$ 1,026

Continental Airlines, Inc. pass thru trust certificates:

6.748% 9/15/18

97

78

6.9% 7/2/18

695

577

8.312% 10/2/12

603

464

8.388% 5/1/22

920

773

Delta Air Lines, Inc.:

7.9% 12/15/09

3,345

1,179

8.3% 12/15/29

4,730

1,253

Delta Air Lines, Inc. pass thru trust certificates:

7.57% 11/18/10

1,280

1,204

7.711% 9/18/11

320

179

7.92% 5/18/12

3,340

1,837

10.06% 1/2/16

170

85

Northwest Airlines Corp. 10% 2/1/09

1,270

559

Northwest Airlines, Inc.:

7.875% 3/15/08

1,252

507

9.875% 3/15/07

570

294

10.5% 4/1/09

287

129

Northwest Airlines, Inc. pass thru trust certificates:

7.248% 7/2/14

313

166

7.691% 4/1/17

33

22

7.95% 9/1/16

44

32

8.07% 1/2/15

1,346

633

8.304% 9/1/10

196

139

NWA Trust 10.23% 6/21/14

258

209

14,441

Building Products - 0.3%

Jacuzzi Brands, Inc. 9.625% 7/1/10

3,915

4,267

Maax Holdings, Inc. 0% 12/15/12 (d)(f)

4,470

2,012

NTK Holdings, Inc. 0% 3/1/14 (d)(f)

6,135

2,945

9,224

Commercial Services & Supplies - 0.3%

Allied Security Escrow Corp. 11.375% 7/15/11

2,255

2,187

Allied Waste North America, Inc. 6.5% 11/15/10

830

820

Browning-Ferris Industries, Inc.:

7.4% 9/15/35

1,640

1,410

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INDUSTRIALS - continued

Commercial Services & Supplies - continued

Browning-Ferris Industries, Inc.: - continued

9.25% 5/1/21

$ 680

$ 682

JohnsonDiversey, Inc. 9.625% 5/15/12

2,845

2,873

R.H. Donnelley Finance Corp. I:

8.875% 12/15/10 (f)

350

382

10.875% 12/15/12 (f)

550

639

8,993

Construction & Engineering - 0.0%

Blount, Inc. 8.875% 8/1/12

1,250

1,338

Electrical Equipment - 0.3%

FIMEP SA 10.5% 2/15/13

2,885

3,303

General Cable Corp. 9.5% 11/15/10

3,055

3,269

Polypore, Inc. 0% 10/1/12 (d)(f)

5,840

3,183

9,755

Machinery - 0.2%

Cummins, Inc.:

7.125% 3/1/28

2,250

2,250

9.5% 12/1/10 (i)

320

352

Navistar International Corp.:

6.25% 3/1/12 (f)

2,040

1,964

7.5% 6/15/11

650

663

5,229

Marine - 0.3%

American Commercial Lines LLC/ACL Finance Corp. 9.5% 2/15/15 (f)

800

844

H-Lines Finance Holding Corp. 0% 4/1/13 (d)(f)

2,210

1,713

OMI Corp. 7.625% 12/1/13

4,625

4,602

Ultrapetrol Bahamas Ltd. 9% 11/24/14

1,795

1,598

8,757

Road & Rail - 0.5%

Grupo TMM SA de CV 10.5% 8/1/07 (f)

1,551

1,481

Kansas City Southern Railway Co.:

7.5% 6/15/09

3,165

3,244

9.5% 10/1/08

1,350

1,472

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INDUSTRIALS - continued

Road & Rail - continued

TFM SA de CV:

9.375% 5/1/12 (f)

$ 7,435

$ 7,770

yankee 10.25% 6/15/07

865

921

14,888

Trading Companies & Distributors - 0.2%

Neff Rent LLC/Neff Finance Corp. 11.25% 6/15/12 (f)

4,490

4,580

TOTAL INDUSTRIALS

84,854

INFORMATION TECHNOLOGY - 2.7%

Communications Equipment - 0.3%

Lucent Technologies, Inc.:

6.45% 3/15/29

10,845

9,679

6.5% 1/15/28

190

169

9,848

Electronic Equipment & Instruments - 0.4%

Altra Industrial Motion, Inc. 9% 12/1/11 (f)

970

917

Celestica, Inc. 7.875% 7/1/11

9,010

9,235

10,152

IT Services - 0.5%

Iron Mountain, Inc.:

6.625% 1/1/16

10,955

10,079

7.75% 1/15/15

1,330

1,343

8.25% 7/1/11

535

546

8.625% 4/1/13

2,900

3,002

14,970

Office Electronics - 1.0%

Xerox Capital Trust I 8% 2/1/27

4,585

4,734

Xerox Corp.:

6.875% 8/15/11

3,240

3,434

7.125% 6/15/10

3,720

3,957

7.2% 4/1/16

3,345

3,613

7.625% 6/15/13

12,425

13,357

29,095

Semiconductors & Semiconductor Equipment - 0.5%

Freescale Semiconductor, Inc. 7.125% 7/15/14

5,740

6,142

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co.:

6.66% 12/15/11 (f)(i)

$ 670

$ 663

6.875% 12/15/11 (f)

1,865

1,837

8% 12/15/14 (f)

520

499

New ASAT Finance Ltd. 9.25% 2/1/11

2,100

1,733

Semiconductor Note Participation Trust 0% 8/4/11 (f)

500

750

Viasystems, Inc. 10.5% 1/15/11

4,065

3,719

15,343

TOTAL INFORMATION TECHNOLOGY

79,408

MATERIALS - 3.7%

Chemicals - 1.5%

America Rock Salt Co. LLC 9.5% 3/15/14

3,940

3,999

BCP Crystal U.S. Holdings Corp. 9.625% 6/15/14

8,045

9,010

Braskem SA 11.75% 1/22/14 (f)

850

1,024

Compass Minerals Group, Inc. 10% 8/15/11

1,120

1,221

Crystal US Holding 3 LLC/Crystal US Sub 3 Corp.:

Series A, 0% 10/1/14 (d)

1,380

980

Series B, 0% 10/1/14 (d)

10,975

7,683

Equistar Chemicals LP/Equistar Funding Corp. 10.625% 5/1/11

910

1,007

Huntsman Advanced Materials LLC:

10.89% 7/15/08 (i)

940

987

11% 7/15/10

750

855

Huntsman ICI Chemicals LLC 10.125% 7/1/09

1,809

1,863

Huntsman LLC:

10.6406% 7/15/11 (i)

630

669

11.625% 10/15/10

466

545

JohnsonDiversey Holdings, Inc. 0% 5/15/13 (d)

4,800

3,372

Lanxess Finance BV 4.125% 6/21/12

EUR

1,115

1,352

Lyondell Chemical Co. 11.125% 7/15/12

930

1,053

Millennium America, Inc. 9.25% 6/15/08

2,515

2,732

Phibro Animal Health Corp.:

Series AO, 13% 12/1/07 unit

280

300

13% 12/1/07 unit

1,295

1,386

Resolution Performance Products LLC/RPP Capital Corp. 9.5% 4/15/10

2,470

2,556

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

MATERIALS - continued

Chemicals - continued

Solutia, Inc.:

6.72% 10/15/37 (c)

$ 1,145

$ 933

7.375% 10/15/27 (c)

2,370

1,932

45,459

Construction Materials - 0.0%

Texas Industries, Inc. 7.25% 7/15/13 (f)

630

646

Containers & Packaging - 0.8%

AEP Industries, Inc. 7.875% 3/15/13 (f)

640

640

BWAY Corp. 10% 10/15/10

1,175

1,222

Crown Cork & Seal, Inc.:

7.375% 12/15/26

1,110

1,005

7.5% 12/15/96

690

531

8% 4/15/23

3,915

3,739

Crown European Holdings SA:

9.5% 3/1/11

2,330

2,575

10.875% 3/1/13

1,520

1,790

Owens-Brockway Glass Container, Inc.:

6.75% 12/1/14

895

904

7.75% 5/15/11

320

339

8.25% 5/15/13

3,390

3,644

8.75% 11/15/12

2,325

2,563

8.875% 2/15/09

1,170

1,243

Sealed Air Finance 5.625% 7/19/06

EUR

250

311

Tekni-Plex, Inc.:

8.75% 11/15/13 (f)

1,600

1,396

10.875% 8/15/12 (f)

980

1,063

22,965

Metals & Mining - 0.8%

Aleris International, Inc. 9% 11/15/14

430

446

Compass Minerals International, Inc.:

0% 12/15/12 (d)

1,330

1,164

0% 6/1/13 (d)

2,260

1,887

CSN Islands VIII Corp. 9.75% 12/16/13 (f)

3,560

3,845

Edgen Acquisition Corp. 9.875% 2/1/11 (f)

1,340

1,300

Freeport-McMoRan Copper & Gold, Inc.:

6.875% 2/1/14

4,200

4,116

10.125% 2/1/10

2,400

2,676

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

MATERIALS - continued

Metals & Mining - continued

Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11

$ 1,335

$ 1,445

International Steel Group, Inc. 6.5% 4/15/14

4,720

4,531

Ispat Inland ULC 9.75% 4/1/14

932

1,086

Steel Dynamics, Inc.:

9.5% 3/15/09

65

69

9.5% 3/15/09

2,090

2,226

24,791

Paper & Forest Products - 0.6%

Georgia-Pacific Corp.:

7.375% 12/1/25

2,095

2,260

8% 1/15/24

4,215

4,837

8.875% 5/15/31

1,095

1,358

9.375% 2/1/13

2,540

2,870

Millar Western Forest Products Ltd. 7.75% 11/15/13

1,835

1,725

NewPage Corp.:

9.46% 5/1/12 (f)(i)

1,770

1,770

12% 5/1/13 (f)

1,930

1,916

16,736

TOTAL MATERIALS

110,597

TELECOMMUNICATION SERVICES - 7.8%

Diversified Telecommunication Services - 4.2%

AT&T Corp. 9.75% 11/15/31

10,230

13,254

Deutsche Telekom International Finance BV 6.25% 12/9/10

GBP

250

478

Empresa Brasileira de Telecomm SA 11% 12/15/08

5,486

6,254

Eschelon Operating Co. 8.375% 3/15/10

1,330

1,157

Level 3 Financing, Inc. 10.75% 10/15/11 (f)

2,525

2,146

MCI, Inc.:

6.688% 5/1/09

102

106

8.735% 5/1/14 (i)

4,435

4,973

Mobifon Holdings BV 12.5% 7/31/10

7,225

8,598

New Skies Satellites BV:

8.5388% 11/1/11 (f)(i)

750

767

9.125% 11/1/12 (f)

3,145

3,161

NTL Cable PLC 8.75% 4/15/14

13,365

14,067

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

TELECOMMUNICATION SERVICES - continued

Diversified Telecommunication Services - continued

PanAmSat Holding Corp. 0% 11/1/14 (d)

$ 3,600

$ 2,448

Qwest Corp.:

6.6706% 6/15/13 (f)(i)

6,970

7,136

7.875% 9/1/11

2,980

3,092

8.875% 3/15/12

25,740

27,992

Qwest Services Corp. 14% 12/15/14

1,105

1,326

Telecom Egypt SAE:

10.7% 2/4/10 (i)

EGP

3,565

617

10.95% 2/4/10

EGP

3,565

622

Telefonica de Argentina SA 9.125% 11/7/10

3,967

4,284

Telenet Group Holding NV 0% 6/15/14 (d)(f)

11,720

9,142

U.S. West Communications:

6.875% 9/15/33

5,398

4,669

7.125% 11/15/43

220

186

7.2% 11/10/26

3,115

2,788

7.25% 9/15/25

1,780

1,647

7.25% 10/15/35

1,300

1,149

7.5% 6/15/23

1,880

1,725

8.875% 6/1/31

340

344

124,128

Wireless Telecommunication Services - 3.6%

American Tower Corp. 7.125% 10/15/12

10,745

11,336

Centennial Cellular Operating Co./Centennial Communications Corp. 10.125% 6/15/13

7,015

7,927

Centennial Communications Corp./Centennial Cellular Operating Co. LLC/Centennial Puerto Rico Operations Corp. 8.125% 2/1/14 (i)

2,460

2,620

DirecTV Holdings LLC/DirecTV Financing, Inc.:

6.375% 6/15/15 (f)

3,960

3,935

8.375% 3/15/13

1,474

1,632

Globe Telecom, Inc. 9.75% 4/15/12

980

1,078

Inmarsat Finance II PLC 0% 11/15/12 (d)

17,010

13,395

Inmarsat Finance PLC 7.625% 6/30/12

645

680

Intelsat Ltd. 7.805% 1/15/12 (f)(i)

4,860

4,969

Kyivstar GSM 10.375% 8/17/09 (f)

4,000

4,430

Millicom International Cellular SA 10% 12/1/13

5,695

5,667

Mobile Telesystems Finance SA:

8% 1/28/12 (f)

8,240

8,343

8.375% 10/14/10 (f)

7,120

7,396

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - continued

Nextel Communications, Inc.:

5.95% 3/15/14

$ 1,150

$ 1,196

6.875% 10/31/13

6,365

6,779

7.375% 8/1/15

15,530

16,695

Rogers Communications, Inc. 6.535% 12/15/10 (i)

1,740

1,810

Rural Cellular Corp. 9.875% 2/1/10

2,355

2,420

Telemig Cellular SA/Amazonia Cellular SA 8.75% 1/20/09 (f)

1,010

1,055

UbiquiTel Operating Co. 9.875% 3/1/11

1,705

1,858

105,221

TOTAL TELECOMMUNICATION SERVICES

229,349

UTILITIES - 1.7%

Electric Utilities - 0.5%

AES Gener SA 7.5% 3/25/14

3,410

3,470

Chivor SA E.S.P. 9.75% 12/30/14 (f)

3,255

3,450

MSW Energy Holdings II LLC/MSW Finance Co. II, Inc. 7.375% 9/1/10

1,170

1,199

TECO Energy, Inc. 6.75% 5/1/15 (f)

1,020

1,076

Texas Genco LLC/Texas Genco Financing Corp. 6.875% 12/15/14 (f)

4,735

4,972

14,167

Gas Utilities - 1.0%

Northwest Pipeline Corp.:

6.625% 12/1/07

285

295

8.125% 3/1/10

400

432

Southern Natural Gas Co.:

7.35% 2/15/31

7,350

7,791

8% 3/1/32

4,170

4,754

8.875% 3/15/10

2,600

2,847

Tennessee Gas Pipeline Co.:

7% 10/15/28

550

561

7.5% 4/1/17

7,600

8,275

7.625% 4/1/37

1,035

1,133

8.375% 6/15/32

1,155

1,344

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

UTILITIES - continued

Gas Utilities - continued

Transcontinental Gas Pipe Line Corp.:

7% 8/15/11

$ 330

$ 357

8.875% 7/15/12

1,455

1,742

29,531

Independent Power Producers & Energy Traders - 0.2%

Calpine Corp. 8.75% 7/15/13 (f)

2,300

1,702

Enron Corp.:

6.4% 7/15/06 (c)

545

178

6.625% 11/15/05 (c)

2,200

718

6.725% 11/17/08 (c)(i)

684

221

6.75% 8/1/09 (c)

550

179

6.875% 10/15/07 (c)

1,330

434

6.95% 7/15/28 (c)

1,204

388

7.125% 5/15/07 (c)

235

77

7.375% 5/15/19 (c)

1,400

455

7.875% 6/15/03 (c)

235

77

8.375% 5/23/05 (c)

2,500

769

9.125% 4/1/03 (c)

50

16

9.875% 6/15/03 (c)

220

72

Tenaska Alabama Partners LP 7% 6/30/21 (f)

1,175

1,199

6,485

TOTAL UTILITIES

50,183

TOTAL NONCONVERTIBLE BONDS

1,192,717

TOTAL CORPORATE BONDS

(Cost $1,167,182)

1,194,986

U.S. Government and Government Agency Obligations - 22.2%

U.S. Government Agency Obligations - 6.7%

Fannie Mae:

0% 9/28/05

12,000

11,900

3.25% 1/15/08

9,330

9,202

3.25% 2/15/09

6,040

5,901

3.625% 3/15/07

220

219

3.75% 5/17/07

2,520

2,512

U.S. Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

U.S. Government Agency Obligations - continued

Fannie Mae: - continued

3.875% 5/15/07

$ 10,000

$ 10,023

4.625% 10/15/14

13,000

13,332

5.125% 1/2/14

8,000

8,344

6% 5/15/11

7,675

8,441

6.125% 3/15/12

900

1,006

6.25% 2/1/11

380

416

6.375% 6/15/09

16,590

18,051

Federal Home Loan Bank:

2.25% 5/15/06

16,150

15,943

3.75% 9/28/06

1,825

1,821

3.8% 12/22/06

450

449

5.8% 9/2/08

2,920

3,084

Freddie Mac:

2.75% 8/15/06

350

346

2.875% 12/15/06

2,810

2,774

4.125% 7/12/10

32,000

32,146

4.25% 7/15/09

6,995

7,071

4.5% 7/15/13

250

255

4.875% 11/15/13

5,480

5,734

7% 3/15/10

24,053

27,129

Government Loan Trusts (assets of Trust guaranteed by U.S. Government through Agency for International Development) Series 1-B, 8.5% 4/1/06

36

37

Israeli State (guaranteed by U.S. Government through Agency for International Development) 5.5% 9/18/23

4,750

5,324

Private Export Funding Corp.:

secured 5.685% 5/15/12

1,285

1,403

4.974% 8/15/13

1,515

1,595

Small Business Administration guaranteed development participation certificates Series 2003 P10B, 5.136% 8/10/13

1,804

1,844

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS

196,302

U.S. Treasury Inflation Protected Obligations - 4.4%

U.S. Treasury Inflation-Indexed Bonds 3.625% 4/15/28

13,208

17,746

U.S. Treasury Inflation-Indexed Notes:

0.875% 4/15/10

22,080

21,535

U.S. Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

U.S. Treasury Inflation Protected Obligations - continued

U.S. Treasury Inflation-Indexed Notes: - continued

1.875% 7/15/13

$ 66,513

$ 67,926

2% 1/15/14

21,796

22,451

TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS

129,658

U.S. Treasury Obligations - 11.1%

U.S. Treasury Bonds:

6.125% 8/15/29

44,500

56,819

9% 11/15/18

2,000

2,988

11.25% 2/15/15

2,900

4,578

U.S. Treasury Notes:

1.625% 2/28/06

11,600

11,463

2.375% 8/31/06

26,000

25,647

2.75% 6/30/06

29,827

29,597

2.75% 7/31/06

50,000

49,576

3.375% 9/15/09

37,724

37,219

3.625% 4/30/07

31,452

31,435

4.25% 8/15/13

5,243

5,374

4.25% 11/15/13

7,930

8,124

4.25% 8/15/14

24,500

25,086

4.75% 5/15/14

38,000

40,322

TOTAL U.S. TREASURY OBLIGATIONS

328,228

TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS

(Cost $642,553)

654,188

U.S. Government Agency - Mortgage Securities - 2.6%

Fannie Mae - 2.6%

4% 3/1/19 to 7/1/19 (h)

8,076

7,915

4% 7/1/20 (g)(h)

2,324

2,275

4% 7/1/20 (g)(h)

1,500

1,469

4.5% 12/1/18

8,104

8,073

4.5% 7/1/20 (g)

12,000

11,936

5% 3/1/18 to 7/1/18

4,877

4,936

5% 8/1/35 (g)

20,418

20,367

5.5% 5/1/11 to 6/1/20

16,744

17,201

6% 8/1/13 to 1/1/26

140

145

6.5% 6/1/24 to 9/1/32

722

749

U.S. Government Agency - Mortgage Securities - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Fannie Mae - continued

7% 9/1/25

$ 9

$ 10

7.5% 1/1/28 to 5/1/28

127

136

TOTAL FANNIE MAE

75,212

Freddie Mac - 0.0%

8.5% 3/1/20

28

30

Government National Mortgage Association - 0.0%

6% 1/15/09 to 5/15/09

86

89

6.5% 4/15/26 to 5/15/26

74

77

7% 9/15/25 to 8/15/31

231

245

7.5% 2/15/22 to 8/15/28

272

293

8% 9/15/26 to 12/15/26

42

45

TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

749

TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES

(Cost $75,756)

75,991

Asset-Backed Securities - 0.2%

Cumbernauld Funding 5.2% 3/16/09

GBP

450

819

Driver One Gmbh Series 1 Class B, 2.334% 5/21/10 (i)

EUR

600

726

MBNA Credit Card Master Note Trust Series 2003-B4, 5.45% 9/17/13

GBP

1,500

2,765

Punch Taverns Finance PLC 5.2506% 4/15/09 (i)

GBP

797

1,426

Sedna Finance Corp. 2.861% 3/15/16 (i)

EUR

1,150

1,387

Unique Public Finance Co. PLC Series A4, 5.659% 6/30/27

GBP

60

115

TOTAL ASSET-BACKED SECURITIES

(Cost $7,580)

7,238

Collateralized Mortgage Obligations - 0.1%

Private Sponsor - 0.1%

Granite Mortgages PLC 2.504% 1/20/43 (i)

EUR

400

486

Holmes Financing No. 8 PLC floater Series 3 Class C, 2.988% 7/15/40 (i)

EUR

500

611

Collateralized Mortgage Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Private Sponsor - continued

Mortgages PLC Series 6 Class A1, 5.0588% 1/31/27 (i)

GBP

1,549

$ 2,776

Permanent Financing No. 1 PLC 5.1% 6/10/09 (i)

EUR

400

510

TOTAL PRIVATE SPONSOR

4,383

U.S. Government Agency - 0.0%

Freddie Mac planned amortization class Series 2351 Class PX, 6.5% 7/15/30

127

128

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS

(Cost $4,691)

4,511

Commercial Mortgage Securities - 0.2%

Opera Finance PLC 5.1888% 7/31/13 (i)

GBP

1,000

1,792

Real Estate Capital Foundation Ltd. Series 3 Class A, 5.2085% 7/15/16 (i)

GBP

2,000

3,573

TOTAL COMMERCIAL MORTGAGE SECURITIES

(Cost $5,446)

5,365

Foreign Government and Government Agency Obligations - 19.3%

Arab Republic 8.8773% to 9.862% 8/2/05 to 6/13/06

EGP

8,405

1,395

Argentine Republic:

Inflation-Indexed par 0.63% 12/31/38 unit (e)(j)

ARS

1,518

204

3% 4/30/13 (i)

1,400

1,131

3.01% 8/3/12 (i)

16,150

14,400

discount 8.28% (with partial capitalization through 12/31/2013) 12/31/33 unit (j)

3,843

3,538

Inflation-Indexed discount 5.83% (with partial capitalization through 12/31/2013) 12/31/33 unit (j)

ARS

3,474

1,239

Austrian Republic 5% 12/20/24 (f)

CAD

2,000

1,726

Banco Central del Uruguay:

Brady par A 6.75% 2/19/21

1,000

1,000

value recovery A rights 1/2/21 (k)

1,000,000

0

value recovery B rights 1/2/21 (k)

750,000

0

Brazilian Federative Republic:

Brady:

capitalization bond 8% 4/15/14

25,205

25,804

debt conversion bond 4.3125% 4/15/12 (i)

4,476

4,302

par Z-L 6% 4/15/24

2,260

2,189

10.5% 7/14/14

2,060

2,444

11% 1/11/12

1,545

1,846

11% 8/17/40

14,360

17,289

Foreign Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Brazilian Federative Republic: - continued

12.25% 3/6/30

$ 4,745

$ 6,358

12.75% 1/15/20

2,880

3,931

14.5% 10/15/09

3,160

4,108

Canadian Government:

3% 6/1/06

CAD

14,750

12,074

5.25% 6/1/12

CAD

9,450

8,484

5.5% 6/1/09

CAD

5,500

4,875

5.75% 6/1/29

CAD

11,250

11,194

Central Bank of Nigeria:

Brady 6.25% 11/15/20

2,000

1,980

promissory note 5.092% 1/5/10

4,179

4,156

warrants 11/15/20 (a)(k)

2,750

83

City of Kiev 8.75% 8/8/08

2,980

3,159

Colombian Republic:

10.75% 1/15/13

5,210

6,335

11.75% 3/1/10

COP

4,416,000

2,014

11.75% 2/25/20

2,560

3,366

Danish Kingdom 3.125% 10/15/10

EUR

3,000

3,728

Dominican Republic:

Brady 3.9425% 8/30/09 (i)

4,331

4,157

4.375% 8/30/24 (i)

6,033

5,520

Ecuador Republic:

8% 8/15/30 (Reg. S) (e)

1,870

1,571

12% 11/15/12 (Reg. S)

1,831

1,739

euro par 5% 2/28/25

645

461

Finnish Government 2.75% 9/15/10

EUR

1,000

1,223

French Government:

OAT 5.25% 4/25/08

EUR

1,200

1,573

3.5% 4/25/15

EUR

25,875

32,283

4% 4/25/55

EUR

750

967

4.75% 4/25/35

EUR

5,000

7,203

German Federal Republic:

2.5% 3/23/07

EUR

2,000

2,441

2.75% 6/23/06

EUR

16,000

19,508

3.75% 1/4/15

EUR

23,100

29,478

4.25% 1/4/14

EUR

22,530

29,814

Indonesian Republic 7.25% 4/20/15 (f)

970

982

Israeli State 7.5% 3/31/14

ILS

8,615

2,022

Japan Government:

0.2% 7/20/06

JPY

1,080,000

9,757

1.5% 3/20/14

JPY

2,615,000

24,592

Foreign Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Japan Government: - continued

2.4% 12/20/34

JPY

600,000

$ 5,634

Lebanese Republic:

6.77% 11/30/09 (f)(i)

1,840

1,808

6.77% 11/30/09 (i)

725

712

Malaysian Government 4.72% 9/30/15

MYR

17,500

4,776

Panamanian Republic Brady discount 2.6925% 7/17/26 (i)

125

116

Peruvian Republic:

3% 3/7/27 (e)

900

660

9.125% 2/21/12

2,860

3,375

9.875% 2/6/15

1,865

2,303

9.91% 5/5/15

PEN

6,040

2,060

Philippine Republic:

Brady principal collateralized interest reduction bond 6.5% 12/1/17

4,770

4,758

8.375% 2/15/11

9,215

9,561

9% 2/15/13

4,925

5,196

9.875% 1/15/19

1,800

1,946

10.625% 3/16/25

3,190

3,573

Republic of Serbia 3.75% 11/1/24 (e)(f)

615

530

Russian Federation:

5% 3/31/30 (e)(f)

3,900

4,368

5% 3/31/30 (Reg. S) (e)

22,840

25,581

11% 7/24/18 (Reg. S)

1,500

2,241

12.75% 6/24/28 (Reg. S)

3,855

6,978

South African Republic:

8.5% 6/23/17

860

1,112

13% 8/31/10

ZAR

10,420

1,924

State of Qatar 9.75% 6/15/30 (Reg. S)

1,195

1,855

Turkish Republic:

11% 1/14/13

4,250

5,387

11.5% 1/23/12

895

1,143

11.75% 6/15/10

5,715

7,101

11.875% 1/15/30

5,025

7,274

15.5488% to 20.5644% 7/5/06 to 1/24/07

TRY

10,715

6,638

Ukraine Government 6.365% 8/5/09 (i)

7,880

8,510

United Kingdom, Great Britain & Northern Ireland:

Index-Linked 2.5% 7/17/24

GBP

2,946

6,071

4.75% 9/7/15

GBP

1,950

3,662

5% 3/7/25

GBP

65

129

5.75% 12/7/09

GBP

2,000

3,827

Foreign Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

United Kingdom, Great Britain & Northern Ireland: - continued

6% 12/7/28

GBP

2,135

$ 4,841

8% 6/7/21

GBP

6,500

16,718

United Mexican States:

7.5% 4/8/33

13,135

15,138

8.125% 12/30/19

2,525

3,102

9.69% 12/8/05

MXN

31,775

2,832

11.5% 5/15/26

8,070

12,952

Uruguay Republic:

7.25% 2/15/11

2,470

2,485

17.75% 2/4/06

UYU

41,200

1,749

Venezuelan Republic:

Discount A, 4.25% 3/31/20 (i)

3,775

3,700

oil recovery rights 4/15/20 (k)

3,260

77

4.15% 4/20/11 (i)

1,990

1,821

5.375% 8/7/10

4,380

4,073

9.25% 9/15/27

4,345

4,569

10.75% 9/19/13

7,435

8,699

13.625% 8/15/18

3,440

4,630

euro Brady:

par W-A 6.75% 3/31/20

6,150

6,165

par W-B 6.75% 3/31/20

2,070

2,075

Vietnamese Socialist Republic Brady par 3.75% 3/12/28 (e)

2,685

2,007

TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS

(Cost $531,119)

568,085

Common Stocks - 1.1%

Shares

CONSUMER DISCRETIONARY - 0.6%

Diversified Consumer Services - 0.2%

Coinmach Service Corp. unit

330,000

4,445

Hotels, Restaurants & Leisure - 0.1%

Centerplate, Inc. unit

165,925

2,116

Common Stocks - continued

Shares

Value (Note 1)
(000s)

CONSUMER DISCRETIONARY - continued

Media - 0.3%

NTL, Inc. (a)

140,401

$ 9,606

NTL, Inc. Class A warrants 1/13/11 (a)

6

0

9,606

TOTAL CONSUMER DISCRETIONARY

16,167

HEALTH CARE - 0.0%

Health Care Providers & Services - 0.0%

Fountain View, Inc. (l)

98

2

TELECOMMUNICATION SERVICES - 0.5%

Diversified Telecommunication Services - 0.5%

Telewest Global, Inc. (a)

693,453

15,797

Wireless Telecommunication Services - 0.0%

DigitalGlobe, Inc. (a)(f)

895

1

TOTAL TELECOMMUNICATION SERVICES

15,798

TOTAL COMMON STOCKS

(Cost $21,770)

31,967

Preferred Stocks - 0.1%

Convertible Preferred Stocks - 0.0%

MATERIALS - 0.0%

Chemicals - 0.0%

Celanese Corp. 4.25%

6,600

160

Nonconvertible Preferred Stocks - 0.1%

CONSUMER DISCRETIONARY - 0.1%

Media - 0.1%

Spanish Broadcasting System, Inc. Class B, 10.75%

1,646

1,802

Specialty Retail - 0.0%

GNC Corp. Series A, 12.00% (a)

1,170

772

TOTAL CONSUMER DISCRETIONARY

2,574

FINANCIALS - 0.0%

Insurance - 0.0%

American Annuity Group Capital Trust II 8.875% (a)

240

250

Preferred Stocks - continued

Shares

Value (Note 1)
(000s)

Nonconvertible Preferred Stocks - continued

HEALTH CARE - 0.0%

Health Care Providers & Services - 0.0%

Fresenius Medical Care Capital Trust II 7.875%

1,260

$ 1,351

TELECOMMUNICATION SERVICES - 0.0%

Diversified Telecommunication Services - 0.0%

PTV, Inc. Series A, 10.00%

119

0

TOTAL NONCONVERTIBLE PREFERRED STOCKS

4,175

TOTAL PREFERRED STOCKS

(Cost $4,521)

4,335

Floating Rate Loans - 1.0%

Principal Amount (000s)(m)

CONSUMER DISCRETIONARY - 0.2%

Auto Components - 0.0%

Goodyear Tire & Rubber Co. Tranche 2, term loan 5.89% 4/30/10 (i)

$ 400

400

Automobiles - 0.1%

AM General LLC:

Tranche B1, term loan 7.7428% 11/1/11 (i)

2,470

2,563

Tranche C2, term loan 12.41% 5/2/12 (i)

1,300

1,372

3,935

Hotels, Restaurants & Leisure - 0.1%

Hilton Head Communications LP Tranche B, term loan 7.5% 3/31/08 (i)

1,800

1,746

Media - 0.0%

UPC Broadband Holding BV Tranche H2, term loan 5.752% 9/30/12 (i)

1,050

1,053

TOTAL CONSUMER DISCRETIONARY

7,134

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Coffeyville Resources LLC:

Credit-Linked Deposit 6.063% 7/8/11 (i)

180

171

Floating Rate Loans - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Coffeyville Resources LLC: - continued

Tranche 2, term loan 10.3125% 7/8/13 (i)

$ 2,020

$ 2,055

Tranche B1, term loan 6.063% 7/8/12 (i)

270

273

2,499

FINANCIALS - 0.2%

Diversified Financial Services - 0.2%

MGM Holdings II, Inc. Tranche B, term loan 5.74% 4/8/12 (i)

2,310

2,316

Olympus Cable Holdings LLC Tranche B, term loan 8.25% 9/30/10 (i)

2,720

2,683

4,999

HEALTH CARE - 0.3%

Health Care Providers & Services - 0.2%

DaVita, Inc. Tranche B, term loan LIBOR + 2.25% 7/30/12 (i)

5,345

5,412

Pharmaceuticals - 0.1%

Warner Chilcott Corp. term loan 5.9939% 1/18/12 (i)

3,991

4,001

TOTAL HEALTH CARE

9,413

INDUSTRIALS - 0.0%

Commercial Services & Supplies - 0.0%

Allied Waste Industries, Inc.:

term loan 5.3731% 1/15/12 (i)

566

567

Tranche A, Credit-Linked Deposit 5.34% 1/15/12 (i)

216

216

783

INFORMATION TECHNOLOGY - 0.2%

Software - 0.2%

Infor Global Solutions AG:

Tranche 1, term loan 6.712% 4/18/11 (i)

2,310

2,316

Tranche 2, term loan 10.712% 4/18/12 (i)

2,160

2,155

4,471

TOTAL FLOATING RATE LOANS

(Cost $28,422)

29,299

Sovereign Loan Participations - 0.2%

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Indonesian Republic loan participation:

- Barclays Bank 4.375% 3/28/13 (i)

$ 207

$ 192

- Citibank 4.375% 3/28/13 (i)

726

672

- Credit Suisse First Boston:

4.375% 3/28/13 (i)

1,859

1,720

4.50% 12/14/19 (i)

1,190

1,003

- Deutsche Bank:

4.375% 3/28/13 (i)

932

863

0.955% 3/28/13 (i)

JPY

89,394

721

TOTAL SOVEREIGN LOAN PARTICIPATIONS

(Cost $4,955)

5,171

Fixed-Income Funds - 1.4%

Shares

Fidelity Floating Rate Central Investment Portfolio (b)
(Cost $40,280)

402,424

40,295

Money Market Funds - 11.3%

Fidelity Cash Central Fund, 3.21% (b)
(Cost $333,649)

333,648,614

333,649

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $2,867,924)

2,955,080

NET OTHER ASSETS - (0.3)%

(10,178)

NET ASSETS - 100%

$ 2,944,902

Currency Abbreviations

ARS

-

Argentine peso

CAD

-

Canadian dollar

COP

-

Colombian peso

EGP

-

Egyptian pound

EUR

-

European Monetary Unit

GBP

-

British pound

ILS

-

Israeli shekel

JPY

-

Japanese yen

MXN

-

Mexican peso

MYR

-

Malyasian ringgit

PEN

-

Peruvian new sol

TRY

-

New Turkish Lira

UYU

-

Uruguay peso

ZAR

-

South African rand

Legend

(a) Non-income producing

(b) 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 listing of the money market fund's holdings as of its most recent quarter end is available upon request. A complete listing of the fixed-income central fund's holdings is provided at the end of the report.

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

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

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

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $236,025,000 or 8.0% of net assets.

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

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

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

(j) Includes attached Argentine Republic Gross Domestic Product-Linked Securities, expiring 12/15/35.

(k) Quantity represents share amount.

(l) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $2,000 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

Fountain View, Inc.

8/19/03 - 1/22/04

$ 0

(m) Principal amount is stated in United States dollars unless otherwise noted.

Other Information

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

United States of America

70.1%

United Kingdom

3.3%

Germany

2.9%

Canada

2.8%

Brazil

2.5%

France

1.9%

Mexico

1.9%

Russia

1.9%

Japan

1.4%

Venezuela

1.3%

Argentina

1.0%

Others (individually less than 1%)

9.0%

100.0%

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

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)

June 30, 2005 (Unaudited)

Assets

Investment in securities, at value (cost $2,867,924) - See accompanying schedule

$ 2,955,080

Commitment to sell securities on a delayed delivery basis

$ (11,524)

Receivable for securities sold on a delayed delivery basis

11,535

11

Receivable for investments sold, regular delivery

10,178

Cash

1,458

Receivable for fund shares sold

13,126

Dividends receivable

11

Interest receivable

37,330

Prepaid expenses

4

Receivable from investment adviser for expense reductions

2

Other receivables

109

Total assets

3,017,309

Liabilities

Payable for investments purchased
Regular delivery

$ 25,665

Delayed delivery

36,040

Payable for fund shares redeemed

6,081

Distributions payable

1,579

Accrued management fee

1,370

Distribution fees payable

939

Other affiliated payables

490

Other payables and accrued expenses

243

Total liabilities

72,407

Net Assets

$ 2,944,902

Net Assets consist of:

Paid in capital

$ 2,837,407

Undistributed net investment income

23,919

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(3,496)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

87,072

Net Assets

$ 2,944,902

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

Semiannual Report

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)

June 30, 2005 (Unaudited)

Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($517,392 ÷ 44,231 shares)

$ 11.70

Maximum offering price per share (100/95.25 of $11.70)

$ 12.28

Class T:
Net Asset Value and redemption price per share ($1,132,683 ÷ 96,851 shares)

$ 11.70

Maximum offering price per share (100/96.50 of $11.70)

$ 12.12

Class B:
Net Asset Value and offering price per share ($340,837 ÷ 29,077 shares) A

$ 11.72

Class C:
Net Asset Value and offering price per share ($487,395 ÷ 41,717 shares) A

$ 11.68

Institutional Class:
Net Asset Value, offering price and redemption price per share ($466,595 ÷ 39,582 shares)

$ 11.79

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

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands

Six months ended June 30, 2005 (Unaudited)

Investment Income

Dividends

$ 545

Interest

75,580

Total income

76,125

Expenses

Management fee

$ 7,440

Transfer agent fees

2,327

Distribution fees

5,185

Accounting fees and expenses

444

Independent trustees' compensation

6

Custodian fees and expenses

146

Registration fees

182

Audit

34

Legal

5

Miscellaneous

211

Total expenses before reductions

15,980

Expense reductions

(148)

15,832

Net investment income

60,293

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities

13,671

Foreign currency transactions

(770)

Swap agreements

(42)

Total net realized gain (loss)

12,859

Change in net unrealized appreciation (depreciation) on:

Investment securities

(41,958)

Assets and liabilities in foreign currencies

445

Delayed delivery commitments

11

Total change in net unrealized appreciation (depreciation)

(41,502)

Net gain (loss)

(28,643)

Net increase (decrease) in net assets resulting from operations

$ 31,650

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

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands

Six months ended
June 30, 2005
(Unaudited)

Year ended
December 31, 2004

Increase (Decrease) in Net Assets

Operations

Net investment income

$ 60,293

$ 92,795

Net realized gain (loss)

12,859

59,820

Change in net unrealized appreciation (depreciation)

(41,502)

22,719

Net increase (decrease) in net assets resulting
from operations

31,650

175,334

Distributions to shareholders from net investment income

(55,163)

(88,523)

Distributions to shareholders from net realized gain

(21,336)

(32,409)

Total distributions

(76,499)

(120,932)

Share transactions - net increase (decrease)

661,485

715,583

Total increase (decrease) in net assets

616,636

769,985

Net Assets

Beginning of period

2,328,266

1,558,281

End of period (including undistributed net investment income of $23,919 and undistributed net investment income of $25,324, respectively)

$ 2,944,902

$ 2,328,266

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

Semiannual Report

Financial Highlights - Class A

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.93

$ 11.63

$ 10.34

$ 10.11

$ 10.12

$ 10.47

Income from Investment Operations

Net investment income E

.284

.600

.617

.668

.730 G

.793

Net realized and unrealized gain (loss)

(.146)

.445

1.321

.214

(.081) G

(.434)

Total from investment operations

.138

1.045

1.938

.882

.649

.359

Distributions from net investment income

(.263)

(.575)

(.648)

(.652)

(.659)

(.709)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.368)

(.745)

(.648)

(.652)

(.659)

(.709)

Net asset value, end of period

$ 11.70

$ 11.93

$ 11.63

$ 10.34

$ 10.11

$ 10.12

Total Return B, C, D

1.20%

9.31%

19.20%

9.09%

6.53%

3.58%

Ratios to Average Net Assets F

Expenses before expense reductions

1.01% A

1.00%

1.01%

1.04%

1.07%

1.08%

Expenses net of voluntary waivers, if any

1.00% A

1.00%

1.01%

1.04%

1.07%

1.08%

Expenses net of all reductions

1.00% A

1.00%

1.00%

1.04%

1.07%

1.08%

Net investment income

4.93% A

5.20%

5.58%

6.65%

7.18% G

7.76%

Supplemental Data

Net assets, end of period (in millions)

$ 517

$ 372

$ 187

$ 57

$ 33

$ 18

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Class T

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.92

$ 11.62

$ 10.33

$ 10.11

$ 10.11

$ 10.47

Income from Investment Operations

Net investment income E

.279

.593

.604

.660

.725 G

.788

Net realized and unrealized gain (loss)

(.135)

.443

1.322

.203

(.074) G

(.445)

Total from investment operations

.144

1.036

1.926

.863

.651

.343

Distributions from net investment income

(.259)

(.566)

(.636)

(.643)

(.651)

(.703)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.364)

(.736)

(.636)

(.643)

(.651)

(.703)

Net asset value, end of period

$ 11.70

$ 11.92

$ 11.62

$ 10.33

$ 10.11

$ 10.11

Total Return B, C, D

1.24%

9.23%

19.09%

8.89%

6.55%

3.42%

Ratios to Average Net Assets F

Expenses before expense reductions

1.07% A

1.07%

1.11%

1.13%

1.15%

1.14%

Expenses net of voluntary waivers, if any

1.07% A

1.07%

1.11%

1.13%

1.15%

1.14%

Expenses net of all reductions

1.07% A

1.07%

1.11%

1.13%

1.15%

1.14%

Net investment income

4.85% A

5.13%

5.47%

6.57%

7.10% G

7.70%

Supplemental Data

Net assets, end of period (in millions)

$ 1,133

$ 808

$ 515

$ 279

$ 238

$ 207

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 21, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Class B

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.95

$ 11.65

$ 10.35

$ 10.12

$ 10.13

$ 10.49

Income from Investment Operations

Net investment income E

.242

.513

.533

.595

.658 G

.722

Net realized and unrealized gain (loss)

(.147)

.441

1.330

.212

(.085) G

(.447)

Total from investment operations

.095

.954

1.863

.807

.573

.275

Distributions from net investment income

(.220)

(.484)

(.563)

(.577)

(.583)

(.635)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.325)

(.654)

(.563)

(.577)

(.583)

(.635)

Net asset value, end of period

$ 11.72

$ 11.95

$ 11.65

$ 10.35

$ 10.12

$ 10.13

Total Return B, C, D

.82%

8.45%

18.38%

8.28%

5.74%

2.73%

Ratios to Average Net Assets F

Expenses before expense reductions

1.80% A

1.78%

1.77%

1.78%

1.81%

1.80%

Expenses net of voluntary waivers, if any

1.75% A

1.78%

1.77%

1.78%

1.81%

1.80%

Expenses net of all reductions

1.75% A

1.78%

1.77%

1.78%

1.81%

1.80%

Net investment income

4.18% A

4.42%

4.81%

5.91%

6.44% G

7.04%

Supplemental Data

Net assets, end of period (in millions)

$ 341

$ 319

$ 287

$ 147

$ 116

$ 88

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Class C

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.91

$ 11.61

$ 10.32

$ 10.10

$ 10.11

$ 10.46

Income from Investment Operations

Net investment income E

.236

.505

.525

.585

.647 G

.707

Net realized and unrealized gain (loss)

(.146)

.444

1.320

.204

(.082) G

(.432)

Total from investment operations

.090

.949

1.845

.789

.565

.275

Distributions from net investment income

(.215)

(.479)

(.555)

(.569)

(.575)

(.625)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.320)

(.649)

(.555)

(.569)

(.575)

(.625)

Net asset value, end of period

$ 11.68

$ 11.91

$ 11.61

$ 10.32

$ 10.10

$ 10.11

Total Return B, C, D

.77%

8.43%

18.24%

8.10%

5.67%

2.74%

Ratios to Average Net Assets F

Expenses before expense reductions

1.85% A

1.82%

1.84%

1.87%

1.89%

1.91%

Expenses net of voluntary waivers, if any

1.84% A

1.82%

1.84%

1.87%

1.89%

1.91%

Expenses net of all reductions

1.84% A

1.82%

1.84%

1.87%

1.89%

1.90%

Net investment income

4.08% A

4.37%

4.74%

5.83%

6.35% G

6.94%

Supplemental Data

Net assets, end of period (in millions)

$ 487

$ 405

$ 277

$ 68

$ 40

$ 26

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Institutional Class

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 12.02

$ 11.71

$ 10.40

$ 10.17

$ 10.18

$ 10.53

Income from Investment Operations

Net investment income D

.297

.627

.635

.685

.725 F

.816

Net realized and unrealized gain (loss)

(.149)

.449

1.338

.210

(.059) F

(.437)

Total from investment operations

.148

1.076

1.973

.895

.666

.379

Distributions from net investment income

(.273)

(.596)

(.663)

(.665)

(.676)

(.729)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.378)

(.766)

(.663)

(.665)

(.676)

(.729)

Net asset value, end of period

$ 11.79

$ 12.02

$ 11.71

$ 10.40

$ 10.17

$ 10.18

Total Return B, C

1.27%

9.53%

19.44%

9.17%

6.67%

3.76%

Ratios to Average Net Assets E

Expenses before expense reductions

.82% A

.81%

.87%

.92%

.94%

.90%

Expenses net of voluntary waivers, if any

.82% A

.81%

.87%

.92%

.94%

.90%

Expenses net of all reductions

.82% A

.81%

.87%

.92%

.94%

.90%

Net investment income

5.10% A

5.38%

5.71%

6.78%

7.31% F

7.95%

Supplemental Data

Net assets, end of period (in millions)

$ 467

$ 424

$ 291

$ 120

$ 42

$ 4

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2005 (Unaudited)

(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Advisor Strategic 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, 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 expense reductions also differ by class.

The fund may invest in affiliated fixed-income and money market central funds (Underlying Funds) managed by affiliates of Fidelity Management & Research Company (FMR). The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund and underlying fixed-income funds (funds):

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

1. Significant Accounting Policies - continued

Security Valuation - continued

Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies, including Underlying Funds, are valued at their net asset value each business day.

Foreign Currency. Certain funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. Security transactions, including the fund's investment activity in the Underlying Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including income from the Underlying Funds, is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

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.

Semiannual Report

1. Significant Accounting Policies - continued

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. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income 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 foreign currency transactions, prior period premium and discount on debt securities, defaulted bonds, market discount, non-taxable dividends, swap agreements, 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

$ 121,218

Unrealized depreciation

(31,739)

Net unrealized appreciation (depreciation)

$ 89,479

Cost for federal income tax purposes

$ 2,865,601

2. Operating Policies.

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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities. Certain funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. Certain funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. The payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the fund's Statement of Assets and Liabilities under the caption "Delayed delivery". Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. Certain funds 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. Certain funds 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 contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

Swap Agreements. Certain funds may invest in swaps for the purpose of managing their exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. Periodic payments received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses,

Semiannual Report

2. Operating Policies - continued

Swap Agreements - continued

respectively. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts.

Mortgage Dollar Rolls. To earn additional income, certain funds may employ trading strategies which involve the sale and simultaneous agreement to repurchase similar securities ("mortgage dollar rolls") or the purchase and simultaneous agreement to sell similar securities ("reverse mortgage dollar rolls"). The securities traded are mortgage securities and bear the same interest rate but may be collateralized by different pools of mortgages. During the period between the sale and repurchase in a mortgage dollar roll transaction, a fund will not be entitled to receive interest and principal payments on the securities sold but will invest the proceeds of the sale in other securities which may enhance the yield and total return. In addition, the difference between the sale price and the future purchase price is recorded as an adjustment to investment income. During the period between the purchase and subsequent sale in a reverse mortgage dollar roll transaction a fund is entitled to interest and principal payments on the securities purchased. The price differential between the purchase and sale is recorded as an adjustment to investment income. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, a fund's right to repurchase or sell securities may be limited.

3. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $938,155 and $732,534, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

increases as assets under management decrease. For the period, the total annualized management fee rate was .58% 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, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

Distribution
Fee

Service
Fee

Paid to
FDC

Retained
by FDC

Class A

0%

.15%

$ 322

$ 3

Class T

0%

.25%

1,194

51

Class B

.65%

.25%

1,467

1,063

Class C

.75%

.25%

2,202

743

$ 5,185

$ 1,860

Sales Load. FDC receives a front-end sales charge of up to 4.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries 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 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.

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

Retained
by FDC

Class A

$ 432

Class T

140

Class B*

335

Class C*

47

$ 954

* 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.

Semiannual Report

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. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays 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, were as follows:

Amount

% of
Average
Net Assets

Class A

$ 427

.20*

Class T

767

.16*

Class B

382

.24*

Class C

394

.18*

Institutional Class

357

.16*

$ 2,327

* Annualized

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month.

Central Funds. Certain funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), Fidelity Management & Research Company, Inc. (FMRC), affiliates of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Money Market Central Funds seek preservation of capital and current income. The Floating Rate Central Investment Portfolio seeks a high level of income. The Central Funds do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $4,053 for the period.

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. During the period, there were no borrowings on this line of credit.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

6. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.

Expense
Limitations

Reimbursement
from adviser

Class A

1.25% -1.00%*

$ 29

Class B

2.00% -1.75%*

91

Class C

2.10% -1.85%*

18

$ 138

* Expense limitation in effect at period end.

In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $10.

7. Credit Risk.

The fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the fund's investments and the income they generate, as well as the fund's ability to repatriate such amounts.

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.

Semiannual Report

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30,
2005

Year ended
December 31,
2004

From net investment income

Class A

$ 9,630

$ 13,359

Class T

21,151

30,575

Class B

6,109

12,524

Class C

8,058

14,127

Institutional Class

10,215

17,938

Total

$ 55,163

$ 88,523

From net realized gain

Class A

$ 3,432

$ 5,220

Class T

7,595

11,202

Class B

2,834

4,464

Class C

3,698

5,646

Institutional Class

3,777

5,877

Total

$ 21,336

$ 32,409

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

10. Share Transactions.

Transactions for each class of shares were as follows:

Shares

Dollars

Six months ended
June 30,
2005

Year ended
December 31,
2004

Six months ended
June 30,
2005

Year ended
December 31,
2004

Class A

Shares sold

17,659

21,816

$ 206,463

$ 253,900

Reinvestment of distributions

900

1,282

10,542

15,021

Shares redeemed

(5,543)

(7,979)

(64,860)

(92,071)

Net increase (decrease)

13,016

15,119

$ 152,145

$ 176,850

Class T

Shares sold

36,627

39,956

$ 428,189

$ 465,339

Reinvestment of distributions

2,295

3,278

26,876

38,371

Shares redeemed

(9,820)

(19,779)

(114,604)

(229,093)

Net increase (decrease)

29,102

23,455

$ 340,461

$ 274,617

Class B

Shares sold

5,134

7,321

$ 60,058

$ 85,374

Reinvestment of distributions

561

1,045

6,585

12,249

Shares redeemed

(3,349)

(6,307)

(39,194)

(72,776)

Net increase (decrease)

2,346

2,059

$ 27,449

$ 24,847

Class C

Shares sold

11,287

16,778

$ 131,874

$ 195,224

Reinvestment of distributions

710

1,180

8,309

13,804

Shares redeemed

(4,234)

(7,887)

(49,369)

(90,740)

Net increase (decrease)

7,763

10,071

$ 90,814

$ 118,288

Institutional Class

Shares sold

7,576

15,202

$ 89,252

$ 176,823

Reinvestment of distributions

1,023

1,760

12,072

20,742

Shares redeemed

(4,307)

(6,561)

(50,708)

(76,584)

Net increase (decrease)

4,292

10,401

$ 50,616

$ 120,981

Semiannual Report

Proxy Voting Results

A special meeting of the fund's shareholders was held on March 16, 2005. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval. A

# of
Votes

% of
Votes

Affirmative

6,491,014,660.12

68.216

Against

1,110,401,588.77

11.670

Abstain

364,285,629.16

3.828

Broker
Non-Votes

1,549,650,136.89

16.286

TOTAL

9,515,352,014.94

100.000

PROPOSAL 2

To elect a Board of Trustees. A

# of
Votes

% of
Votes

Laura B. Cronin

Affirmative

9,191,010,795.38

96.591

Withheld

324,341,219.56

3.409

TOTAL

9,515,352,014.94

100.000

Dennis J. Dirks

Affirmative

9,199,049,001.28

96.676

Withheld

316,303,013.66

3.324

TOTAL

9,515,352,014.94

100.000

Robert M. Gates

Affirmative

9,189,372,083.98

96.574

Withheld

325,979,930.96

3.426

TOTAL

9,515,352,014.94

100.000

George H. Heilmeier

Affirmative

9,191,183,741.44

96.593

Withheld

324,168,273.50

3.407

TOTAL

9,515,352,014.94

100.000

# of
Votes

% of
Votes

Abigail P. Johnson

Affirmative

9,174,139,780.45

96.414

Withheld

341,212,234.49

3.586

TOTAL

9,515,352,014.94

100.000

Edward C. Johnson 3d

Affirmative

9,167,856,276.61

96.348

Withheld

347,495,738.33

3.652

TOTAL

9,515,352,014.94

100.000

Marie L. Knowles

Affirmative

9,196,147,863.00

96.645

Withheld

319,204,151.94

3.355

TOTAL

9,515,352,014.94

100.000

Ned C. Lautenbach

Affirmative

9,193,561,981.00

96.618

Withheld

321,790,033.94

3.382

TOTAL

9,515,352,014.94

100.000

Marvin L. Mann

Affirmative

9,184,085,149.84

96.519

Withheld

331,266,865.10

3.481

TOTAL

9,515,352,014.94

100.000

William O. McCoy

Affirmative

9,187,317,991.01

96.553

Withheld

328,034,023.93

3.447

TOTAL

9,515,352,014.94

100.000

Robert L. Reynolds

Affirmative

9,193,543,677.54

96.618

Withheld

321,808,337.40

3.382

TOTAL

9,515,352,014.94

100.000

Cornelia M. Small

Affirmative

9,193,853,155.26

96.621

Withheld

321,498,859.68

3.379

TOTAL

9,515,352,014.94

100.000

# of
Votes

% of
Votes

William S. Stavropoulos

Affirmative

9,191,672,816.31

96.598

Withheld

323,679,198.63

3.402

TOTAL

9,515,352,014.94

100.000

Kenneth L. Wolfe

Affirmative

9,193,356,513.29

96.616

Withheld

321,995,501.65

3.384

TOTAL

9,515,352,014.94

100.000

A Denotes trust-wide proposals and voting results.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Advisor Strategic Income Fund

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

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders by Fidelity. At the time of the renewal, the Board had 11 standing committees, each composed of independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically during the first six months of each year and as necessary to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the independent Trustees concerning, the approval and annual review of the Advisory Contracts.

At its June 2005 meeting, the Board of Trustees, including the independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (1) the nature, extent, and quality of the services to be provided to the fund and its shareholders by Fidelity (including the investment performance of the fund); (2) the competitiveness of the management fee and total expenses of the fund; (3) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (4) the extent to which economies of scale would be realized as the fund grows; and (5) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

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

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

Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians. The Board reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services. The Board also considered that Fidelity voluntarily decided in 2004 to stop using "soft" commission dollars to pay for market data and, instead, to pay for that data out of its own resources. The Board also considered the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

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

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying an additional sales charge. The Board noted that, since the last Advisory Contract renewals in June 2004, Fidelity has taken a number of actions that benefited particular funds, including (i) voluntarily deciding in 2004 to stop using "soft" commission dollars to pay for market data and, instead, to pay for that data out of its own resources, (ii) contractually agreeing to impose management fee reductions and expense limitations on its five Spartan stock index funds and its stock index fund available through variable insurance products, (iii) contractually agreeing to eliminate the management fees on the Fidelity Freedom Funds and the Fidelity Advisor Freedom Funds, (iv) contractually agreeing to reduce the management fees on most of its investment-grade taxable bond funds, and (v) contractually agreeing to impose expense limitations on its retail and Spartan investment-grade taxable bond funds.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2004, the returns of Class C and Institutional Class of the fund, the returns of a broad-based securities market index ("benchmark"), and a range of returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Class C and Institutional Class represent the performance of classes with the highest and lowest 12b-1 fees, respectively (not necessarily with the highest and lowest total expenses). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the Lipper peer group. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the Lipper peer group whose performance was equal to or lower than that of the class indicated.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued



The Board noted that the relative investment performance of Institutional Class of the fund has compared favorably to its Lipper peer group over time. The Board also noted that the relative investment performance of Institutional Class of the fund has compared favorably to its benchmark over time, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

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

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

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 27% would mean that 73% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile ("quadrant") in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Semiannual Report



The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2004. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board noted that the total expenses of each of Class A, Class T, Class B, and Institutional Class ranked below its competitive median for 2004, and the total expenses of Class C ranked above its competitive median for 2004. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

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

Based on its review, the Board concluded that the total expenses for each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

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

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

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

Semiannual Report

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business. In addition, a special committee of the Board reviewed services provided to Fidelity by its affiliates and determined that the fees that Fidelity paid for such services were reasonable.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower fee rates as total fund assets under FMR's management increase, and for higher fee rates as total fund assets under FMR's management decrease. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Advisory Contracts, the Board requested additional information regarding (i) Fidelity's fund profitability methodology, including additional detail on various cost allocations; (ii) fall-out benefits to Fidelity; and (iii) compensation of portfolio managers and research analysts.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

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

Semiannual Report

The following is a complete listing of investments for Fidelity's
fixed-income central funds as of June 30, 2005 which are direct or indirect investments of Fidelity Advisor Strategic Income Fund.

Semiannual Report

Fidelity Floating Rate Central Investment Portfolio

Investments June 30, 2005 (Unaudited)

Showing Percentage of Net Assets

Floating Rate Loans (c) - 90.9%

Principal
Amount

Value

Automotive - 4.7%

Accuride Corp. term loan 5.6453% 1/31/12 (b)

$ 2,425,227

$ 2,431,290

AM General LLC Tranche B1, term loan 7.7428% 11/1/11 (b)

3,848,718

3,993,045

Goodyear Tire & Rubber Co.:

Tranche 1, 4.7852% 4/30/10 (b)

1,060,000

1,060,000

Tranche 2, term loan 5.89% 4/30/10 (b)

1,480,000

1,478,150

Travelcenters of America, Inc. Tranche B, term loan 5.09% 12/1/11 (b)

7,916,840

7,986,112

TRW Automotive Holdings Corp. Tranche B, term loan 4.375% 6/30/12 (b)

2,777,696

2,788,113

19,736,710

Broadcasting - 2.0%

Cumulus Media, Inc.:

Tranche E, term loan 5.125% 3/28/10 (b)

1,989,950

1,989,950

Tranche F, term loan 4.875% 3/28/10 (b)

987,525

987,525

Nexstar Broadcasting, Inc. Tranche B, term loan 4.87% 10/1/12 (b)

3,900,000

3,919,500

Spanish Broadcasting System, Inc. Tranche 1, term loan 5.49% 6/7/12 (b)

1,571,063

1,586,773

8,483,748

Building Materials - 1.1%

Euramax International, Inc./Euramax International Holdings BV Tranche 1, term loan 5.875% 6/29/12 (b)

1,850,000

1,875,438

Goodman Global Holdings, Inc. term loan 5.5% 12/23/11 (b)

1,213,900

1,232,109

Masonite International Corp. term loan 5.2153% 4/5/13 (b)

1,466,325

1,462,659

4,570,206

Cable TV - 6.2%

Adelphia Communications Corp. Tranche B, term loan 5.375% 3/31/06 (b)

2,450,000

2,462,250

Century Cable Holdings LLC Tranche B, term loan 8.25% 6/30/09 (b)

3,000,000

2,970,000

Charter Communications Operating LLC:

Tranche A, term loan 6.19% 4/27/10 (b)

2,642,875

2,606,536

Tranche B, term loan 6.44% 4/7/11 (b)

1,994,962

1,977,506

DIRECTV Holdings LLC Tranche B, term loan 4.7363% 4/13/13 (b)

2,260,000

2,274,125

NTL Investment Holdings Ltd. Tranche B, term loan 6.41% 6/13/12 (b)

3,000,000

3,015,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Cable TV - continued

UPC Broadband Holding BV Tranche H2, term loan 5.752% 9/30/12 (b)

$ 3,940,000

$ 3,949,850

UPC Distribution Holdings BV Tranche F, term loan 6.6% 12/31/11 (b)

4,000,000

4,045,000

WideOpenWest Illinois, Inc. Tranche B, term loan 6.3027% 6/22/11 (b)

2,593,451

2,619,385

25,919,652

Capital Goods - 1.0%

Alliance Laundry Systems LLC term loan 5.59% 1/27/12 (b)

1,950,000

1,974,375

GenTek, Inc. term loan 6.0754% 2/28/11 (b)

1,995,000

1,985,025

Hexcel Corp. Tranche B, term loan 4.9125% 3/1/12 (b)

370,000

372,775

4,332,175

Chemicals - 1.8%

Celanese Holding LLC term loan 5.74% 4/6/11 (b)

2,340,526

2,369,782

Mosaic Co. Tranche B, term loan 5.0036% 2/21/12 (b)

1,895,250

1,914,203

PQ Corp. term loan 5.5% 2/11/12 (b)

3,291,750

3,308,209

7,592,194

Consumer Products - 1.7%

Burt's Bees, Inc. term loan 6.2397% 3/28/10 (b)

399,000

402,990

Central Garden & Pet Co. Tranche B, term loan 5.0279% 5/14/09 (b)

397,983

401,963

Del Laboratories, Inc. term loan 5.4683% 7/27/11 (b)

547,250

548,618

Fender Musical Instrument Corp. Tranche B, term loan 5.46% 4/1/12 (b)

810,000

820,125

Jostens IH Corp. Tranche A, term loan 5.64% 10/4/10 (b)

2,250,000

2,278,125

Rayovac Corp. term loan 5.2082% 2/7/12 (b)

498,750

503,738

Simmons Bedding Co. Tranche C, term loan 5.9099% 12/19/11 (b)

1,976,462

1,981,404

6,936,963

Containers - 0.2%

Berry Plastics Corp. term loan 5.6004% 12/2/11 (b)

950,000

964,250

Diversified Financial Services - 0.7%

Refco Finance Holdings LLC term loan 5.3144% 8/5/11 (b)

2,981,481

2,988,935

Diversified Media - 1.3%

Lamar Media Corp.:

Tranche A, term loan 4.4375% 6/30/09 (b)

925,000

925,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Diversified Media - continued

Lamar Media Corp.:

Tranche C, term loan 5.0625% 6/30/10 (b)

$ 2,985,000

$ 3,011,119

R.H. Donnelley Corp. Tranche A3, term loan 5.1509% 12/31/09 (b)

1,468,667

1,479,682

5,415,801

Electric Utilities - 3.1%

Covanta Energy Corp. Tranche 1:

Credit-Linked Deposit 6.46% 6/24/12 (b)

2,211,382

2,227,967

term loan 6.46% 6/24/12 (b)

1,788,618

1,802,033

NRG Energy, Inc.:

Credit-Linked Deposit 5.265% 12/24/11 (b)

1,706,250

1,714,781

term loan 5.2554% 12/24/11 (b)

2,182,781

2,193,695

Reliant Energy, Inc. term loan 6.0579% 4/30/10 (b)

1,995,000

2,012,456

Texas Genco LLC term loan 5.4098% 12/14/11 (b)

2,985,000

3,026,044

12,976,976

Energy - 6.6%

Coffeyville Resources LLC:

Credit-Linked Deposit 6.063% 7/8/11 (b)

704,000

668,800

Tranche B1, term loan 6.063% 7/8/12 (b)

1,056,000

1,069,200

El Paso Corp. Credit-Linked Deposit 5.855% 11/22/09 (b)

6,000,000

6,022,500

Energy Transfer Partners LP term loan 6.47% 6/16/08 (b)

5,000,000

5,025,000

Kerr-McGee Corp. Tranche B, term loan 5.79% 5/24/11 (b)

10,000,000

10,162,500

LB Pacific LP term loan 6.1471% 3/3/12 (b)

3,990,000

4,024,913

Universal Compression, Inc. term loan 5.24% 2/15/12 (b)

897,750

908,972

27,881,885

Entertainment/Film - 2.0%

MGM Holdings II, Inc. Tranche B, term loan 5.74% 4/8/12 (b)

8,550,000

8,571,375

Environmental - 1.6%

Allied Waste Industries, Inc.:

term loan 5.3731% 1/15/12 (b)

2,088,868

2,091,479

Tranche A, Credit-Linked Deposit 5.34% 1/15/12 (b)

797,297

798,294

Envirocare of Utah, Inc. Tranche 1, term loan 6.11% 4/13/10 (b)

3,818,182

3,832,500

6,722,273

Floating Rate Loans (c) - continued

Principal
Amount

Value

Food/Beverage/Tobacco - 3.2%

Centerplate, Inc. term loan 6.43% 10/1/10 (b)

$ 4,920,000

$ 4,944,600

Commonwealth Brands, Inc. term loan 6.625% 8/28/07 (b)

165,210

167,275

Constellation Brands, Inc. Tranche B, term loan 5.1451% 11/30/11 (b)

6,438,958

6,511,397

Herbalife International, Inc. term loan 5.16% 12/21/10 (b)

1,640,000

1,648,200

13,271,472

Gaming - 2.0%

Green Valley Ranch Gaming LLC term loan 5.49% 12/17/11 (b)

2,187,019

2,211,623

Herbst Gaming, Inc. term loan 5.6275% 1/7/11 (b)

399,000

401,993

Isle of Capri Casinos, Inc. term loan 5.0179% 2/4/11 (b)

199,000

200,990

Marina District Finance Co., Inc. term loan 5.185% 10/14/11 (b)

3,980,000

4,004,875

Resorts International Hotel & Casino, Inc. Tranche B1, term loan 5.83% 4/26/12 (b)

785,433

796,233

Venetian Casino Resort LLC Tranche B, term loan 5.24% 6/15/11 (b)

900,000

906,750

8,522,464

Healthcare - 14.5%

AMR HoldCo, Inc./ EmCare HoldCo, Inc. term loan 5.6734% 2/7/12 (b)

3,291,750

3,337,012

Community Health Systems, Inc. term loan 5.07% 8/19/11 (b)

3,974,975

4,014,725

CRC Health Corp. term loan 6.24% 5/11/11 (b)

950,000

961,875

DaVita, Inc. Tranche B, term loan LIBOR + 2.25% 7/30/12 (b)

8,000,000

8,100,000

HCA, Inc. term loan 4.33% 11/9/09 (b)

11,000,000

10,917,491

HealthSouth Corp.:

Credit-Linked Deposit 5.7235% 6/14/07 (b)

807,500

816,584

term loan 5.82% 6/14/07 (b)

2,992,500

3,022,425

LifePoint Hospitals, Inc. Tranche B, term loan 4.845% 4/15/12 (b)

5,940,000

5,954,850

Newquest, Inc. Tranche A, term loan 6.66% 3/1/11 (b)

487,500

489,938

PacifiCare Health Systems, Inc. Tranche B, term loan 5.0656% 12/6/10 (b)

6,947,500

6,999,606

Select Medical Holdings Corp. Tranche B, term loan 5.0419% 2/24/12 (b)

3,990,000

3,994,988

Skilled Healthcare Group, Inc. Tranche 2, term loan 10.74% 12/15/12 (b)

3,000,000

3,015,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Healthcare - continued

Vicar Operating, Inc. term loan 4.875% 5/16/11 (b)

$ 5,040,000

$ 5,052,600

Warner Chilcott Corp. term loan 5.9939% 1/18/12 (b)

3,992,057

4,002,037

60,679,131

Homebuilding/Real Estate - 5.3%

CB Richard Ellis Services, Inc. term loan 5.3167% 3/31/10 (b)

1,445,902

1,456,747

General Growth Properties, Inc. Tranche B, term loan 5.58% 11/12/08 (b)

5,971,575

6,023,826

Lake Las Vegas LLC Tranche 1, term loan 6.0887% 11/1/09 (b)

3,926,873

3,936,690

LNR Property Corp. Tranche B, term loan 6.3396% 2/3/08 (b)

3,919,880

3,934,580

Maguire Properties, Inc. Tranche B, term loan 4.9% 3/15/10 (b)

4,611,111

4,634,167

Shea Mountain House LLC Tranche B, term loan 5.27% 5/11/11 (b)

2,430,000

2,436,075

22,422,085

Hotels - 1.7%

Starwood Hotels & Resorts Worldwide, Inc. term loan 4.58% 10/9/06 (b)

5,151,815

5,151,815

Wyndham International, Inc. Tranche 1:

Credit-Linked Deposit 6.435% 5/6/11 (b)

172,415

172,846

term loan 6.5% 5/6/11 (b)

1,823,017

1,827,575

7,152,236

Insurance - 1.2%

Marsh & McLennan Companies, Inc. term loan 4.1875% 12/31/06 (b)

5,000,000

5,006,250

Leisure - 0.7%

24 Hour Fitness Worldwide, Inc. Tranche B, term loan 6.19% 6/8/12 (b)

3,000,000

3,037,500

Metals/Mining - 2.5%

Murray Energy Corp. Tranche 1, term loan 6.33% 1/28/10 (b)

498,750

501,244

Novelis, Inc. term loan 4.96% 1/7/12 (b)

3,461,538

3,491,827

Peabody Energy Corp. term loan 4.431% 3/21/10 (b)

2,955,664

2,959,358

Trout Coal Holdings LLC / Dakota Tranche 1, term loan 5.9736% 3/23/11 (b)

3,690,750

3,699,977

10,652,406

Floating Rate Loans (c) - continued

Principal
Amount

Value

Paper - 3.2%

Escanaba Timber LLC term loan 6% 5/2/08 (b)

$ 520,000

$ 528,450

Georgia-Pacific Corp. term loan 4.78% 7/2/09 (b)

1,000,000

1,000,000

Koch Cellulose LLC:

term loan 5.24% 5/7/11 (b)

1,958,517

1,980,550

Credit-Linked Deposit 4.6113% 5/7/11 (b)

602,945

609,728

Smurfit-Stone Container Enterprises, Inc.:

Credit-Linked Deposit 3.0888% 11/1/10 (b)

655,111

662,481

Tranche B, term loan 5.4158% 11/1/11 (b)

5,221,241

5,279,980

Tranche C, term loan 5.2921% 11/1/11 (b)

1,927,849

1,949,538

Xerium Technologies, Inc. Tranche B, term loan 5.49% 5/18/12 (b)

1,500,000

1,515,000

13,525,727

Publishing/Printing - 2.7%

Dex Media West LLC/Dex Media West Finance Co. Tranche B, term loan 4.9282% 9/9/10 (b)

6,618,287

6,667,924

Liberty Group Operating, Inc. Tranche B, term loan 5.4436% 2/28/12 (b)

197,006

197,499

R.H. Donnelley Corp. Tranche B2, term loan 5.0536% 6/30/11 (b)

4,298,142

4,330,378

11,195,801

Railroad - 1.4%

Kansas City Southern Railway Co. Tranche B1, term loan 5.1572% 3/30/08 (b)

2,788,360

2,823,214

RailAmerica, Inc. term loan 5.3125% 9/29/11 (b)

2,972,505

3,013,376

5,836,590

Restaurants - 2.4%

Domino's, Inc. term loan 5.25% 6/25/10 (b)

4,809,121

4,857,213

Jack in the Box, Inc. term loan 4.9463% 1/8/11 (b)

3,125,659

3,160,823

Landry's Seafood Restaurants, Inc. term loan 5.2387% 12/28/10 (b)

1,457,675

1,474,074

Ruth's Chris Steak House, Inc. term loan 6.25% 3/11/11 (b)

480,952

480,952

9,973,062

Services - 5.2%

Coinstar, Inc. term loan 5.55% 7/1/11 (b)

827,233

839,642

DynCorp term loan 6.0625% 2/11/11 (b)

2,000,000

2,010,000

Iron Mountain, Inc.:

term loan 5.125% 4/2/11 (b)

3,722,242

3,759,464

Tranche R, term loan 4.9816% 4/2/11 (b)

4,975,000

5,024,750

JohnsonDiversey, Inc. Tranche B, term loan 4.9578% 11/3/09 (b)

336,005

338,525

Floating Rate Loans (c) - continued

Principal
Amount

Value

Services - continued

Knowledge Learning Corp. term loan 5.99% 1/7/12 (b)

$ 4,061,111

$ 4,081,417

Rural/Metro Corp.:

Credit-Linked Deposit 5.65% 3/4/11 (b)

520,882

524,789

term loan 6.0297% 3/4/11 (b)

1,904,941

1,919,228

United Rentals, Inc.:

term loan 5.5742% 2/14/11 (b)

2,843,979

2,875,974

Tranche B, Credit-Linked Deposit 4.8224% 2/14/11 (b)

575,996

581,756

21,955,545

Shipping - 0.1%

Baker Tanks, Inc. term loan 5.8793% 1/30/11 (b)

249,375

251,869

Technology - 4.5%

AMI Semiconductor, Inc. term loan 4.83% 4/1/12 (b)

1,596,000

1,599,990

Fairchild Semiconductor Corp. Tranche B3, term loan 5.354% 12/31/10 (b)

2,060,334

2,080,937

Fidelity National Information Solutions, Inc. Tranche B, term loan 4.96% 3/9/13 (b)

5,719,500

5,698,052

Infor Global Solutions AG Tranche 1, term loan 6.712% 4/18/11 (b)

6,000,000

6,015,000

ON Semiconductor Corp. Tranche G, term loan 6.5% 12/15/11 (b)

2,985,000

2,992,463

UGS Holdings, Inc. Tranche C, term loan 5.1462% 3/31/12 (b)

475,172

479,924

18,866,366

Telecommunications - 6.0%

Alaska Communications Systems Holding term loan 5.49% 2/1/12 (b)

7,100,000

7,153,250

American Tower LP Tranche C, term loan 5.2099% 8/31/11 (b)

2,573,550

2,599,286

Conversant Holdings, Inc. Tranche B, term loan 7.3351% 3/31/11 (b)

1,962,500

1,945,328

Hawaiian Telcom Communications, Inc. Tranche B, term loan 5.73% 10/31/12 (b)

3,000,000

3,030,000

Intelsat Ltd. term loan 5.25% 7/28/11 (b)

3,236,542

3,264,862

New Skies Satellites BV term loan 5.4375% 5/2/11 (b)

1,490,609

1,511,105

NTELOS, Inc.:

term loan 8.33% 2/24/12 (b)

200,000

196,000

Tranche B, term loan 5.83% 8/24/11 (b)

995,000

995,000

Qwest Corp. Tranche A, term loan 7.9338% 6/30/07 (b)

1,600,000

1,648,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Telecommunications - continued

SpectraSite Communications, Inc. Tranche B, term loan 4.91% 5/19/12 (b)

$ 1,990,000

$ 2,004,925

Valor Telecommunications Enterprises LLC/Valor Finance Corp. Tranche B, term loan 5.392% 2/14/12 (b)

784,000

793,800

25,141,556

Textiles & Apparel - 0.3%

St. John Knits International, Inc. Tranche B, term loan 6% 3/23/12 (b)

498,750

503,114

William Carter Co. term loan 5.08% 6/29/12 (b)

850,000

860,625

1,363,739

TOTAL FLOATING RATE LOANS

(Cost $381,285,882)

381,946,942

Nonconvertible Bonds - 8.1%

Automotive - 3.5%

General Motors Acceptance Corp.:

4.145% 5/18/06 (b)

2,000,000

1,990,538

4.3948% 10/20/05 (b)

5,000,000

5,004,260

4.6019% 9/23/08 (b)

3,000,000

2,773,467

6.75% 1/15/06

2,000,000

2,015,780

7.5% 7/15/05

3,000,000

3,001,296

14,785,341

Diversified Financial Services - 1.2%

Residential Capital Corp. 4.835% 6/29/07 (a)(b)

5,000,000

5,001,880

Technology - 1.2%

Nortel Networks Corp. 6.125% 2/15/06

5,000,000

5,025,000

Telecommunications - 2.2%

Qwest Corp. 6.6706% 6/15/13 (a)(b)

2,840,000

2,907,450

Rogers Communications, Inc. 6.535% 12/15/10 (b)

6,000,000

6,240,000

9,147,450

TOTAL NONCONVERTIBLE BONDS

(Cost $34,062,076)

33,959,671

Cash Equivalents - 4.8%

Maturity
Amount

Value

Investments in repurchase agreements (Collateralized by U.S. Government Obligations, in a joint trading account at 3.42%, dated 6/30/05 due 7/1/05)
(Cost $19,961,000)

$ 19,962,899

$ 19,961,000

TOTAL INVESTMENT PORTFOLIO - 103.8%

(Cost $435,308,958)

435,867,613

NET OTHER ASSETS - (3.8)%

(15,788,511)

NET ASSETS - 100%

$ 420,079,102

Legend

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $7,909,330 or 1.9% of net assets.

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

(c) 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.

Income Tax Information

At June 30, 2005, the aggregate cost of investment securities for income tax purposes was $435,285,647. Net unrealized appreciation aggregated $581,966, of which $1,609,203 related to appreciated investment securities and $1,027,237 related to depreciated investment securities.

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Management & Research
(Far East) Inc.

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

Fidelity Investments Money Management, Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York

New York, NY

SI-USAN-0805
1.787775.102

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

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

Strategic Income
Fund - Institutional Class

Semiannual Report

June 30, 2005

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

Ned Johnson's message to shareholders.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Proxy Voting Results

<Click Here>

Board Approval of Investment Advisory Contracts and Management Fees

<Click Here>

Central Fund Investments

<Click Here>

Complete list of investments for Fidelity's fixed-income central funds.

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 Commission'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 Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent 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

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.

First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.

Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.

Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.

For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.

Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2005 to June 30, 2005).

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.

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.

Semiannual Report

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.

Beginning
Account Value
January 1, 2005

Ending
Account Value
June 30, 2005

Expenses Paid
During Period*
January 1, 2005
to June 30, 2005

Class A

Actual

$ 1,000.00

$ 1,012.00

$ 4.99

Hypothetical A

$ 1,000.00

$ 1,019.84

$ 5.01

Class T

Actual

$ 1,000.00

$ 1,012.40

$ 5.34

Hypothetical A

$ 1,000.00

$ 1,019.49

$ 5.36

Class B

Actual

$ 1,000.00

$ 1,008.20

$ 8.71

Hypothetical A

$ 1,000.00

$ 1,016.12

$ 8.75

Class C

Actual

$ 1,000.00

$ 1,007.70

$ 9.16

Hypothetical A

$ 1,000.00

$ 1,015.67

$ 9.20

Institutional Class

Actual

$ 1,000.00

$ 1,012.70

$ 4.09

Hypothetical A

$ 1,000.00

$ 1,020.73

$ 4.11

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

1.00%

Class T

1.07%

Class B

1.75%

Class C

1.84%

Institutional Class

.82%

Semiannual Report

Investment Changes

Top Five Holdings as of June 30, 2005

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

U.S. Treasury Obligations

15.5

13.2

Fannie Mae

5.6

3.5

German Federal Republic

2.8

5.1

Freddie Mac

2.5

1.6

Brazilian Federative Republic

2.3

2.5

28.7

Top Five Market Sectors as of June 30, 2005

% of fund's
net assets

% of fund's net assets
6 months ago

Consumer Discretionary

12.0

11.3

Telecommunication Services

8.4

9.5

Energy

4.8

5.1

Financials

4.3

6.8

Materials

3.8

4.9

Quality Diversification (% of fund's net assets)

As of June 30, 2005

As of December 31, 2004

U.S. Government and U.S. Government
Agency
Obligations 24.8%

U.S. Government and
U.S. Government
Agency
Obligations 19.6%

AAA, AA, A 10.8%

AAA, AA, A 14.8%

BBB 4.7%

BBB 4.0%

BB 13.1%

BB 14.9%

B 24.4%

B 27.8%

CCC, CC, C 7.4%

CCC, CC, C 8.3%

Not Rated 2.2%

Not Rated 2.3%

Equities 1.2%

Equities 1.4%

Short-Term
Investments and
Net Other Assets 11.4%

Short-Term
Investments and
Net Other Assets 6.9%



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

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

Asset Allocation (% of fund's net assets)

As of June 30, 2005 *

As of December 31, 2004 **

Corporate Bonds 40.7%

Corporate Bonds 47.1%

U.S. Government and U.S. Government
Agency
Obligations 24.8%

U.S. Government and
U.S. Government
Agency
Obligations 19.6%

Foreign Government
& Government
Agency
Obligations 19.0%

Foreign Government
& Government
Agency
Obligations 22.8%

Stocks 1.2%

Stocks 1.4%

Other Investments 2.9%

Other Investments 2.2%

Short-Term
Investments and
Net Other Assets*** 11.4%

Short-Term
Investments and
Net Other Assets 6.9%

* Foreign investments

29.9%

** Foreign investments

36.2%

*** Includes short-term foreign government obligations of .3%.



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

Semiannual Report

Investments June 30, 2005 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 40.6%

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Convertible Bonds - 0.1%

INFORMATION TECHNOLOGY - 0.1%

Semiconductors & Semiconductor Equipment - 0.1%

Atmel Corp. 0% 5/23/21

$ 4,190

$ 1,946

ON Semiconductor Corp. 0% 4/15/24

450

323

2,269

Nonconvertible Bonds - 40.5%

CONSUMER DISCRETIONARY - 10.7%

Auto Components - 0.9%

Affinia Group, Inc. 9% 11/30/14 (f)

6,760

5,678

Delco Remy International, Inc.:

8.625% 12/15/07

2,066

2,014

9.375% 4/15/12

705

575

11% 5/1/09

1,810

1,665

Intermet Corp. 9.75% 6/15/09 (c)

2,240

963

Stoneridge, Inc. 11.5% 5/1/12

35

36

Tenneco Automotive, Inc. 8.625% 11/15/14

5,980

6,010

TRW Automotive Acquisition Corp.:

9.375% 2/15/13

2,503

2,766

11% 2/15/13

2,988

3,421

United Components, Inc. 9.375% 6/15/13

360

363

Visteon Corp. 7% 3/10/14

3,640

3,003

26,494

Automobiles - 0.1%

Fiat Finance & Trade Ltd. 5.75% 5/25/06

EUR

1,000

1,213

Renault SA 0.3338% 4/23/07 (i)

JPY

200,000

1,794

3,007

Diversified Consumer Services - 0.2%

Service Corp. International (SCI):

6.75% 4/1/16

2,800

2,849

7% 6/15/17 (f)

2,420

2,493

5,342

Hotels, Restaurants & Leisure - 2.7%

Carrols Corp. 9% 1/15/13 (f)

7,595

7,690

Chukchansi Economic Development Authority 14.5% 6/15/09 (f)

490

599

Domino's, Inc. 8.25% 7/1/11

516

552

Gaylord Entertainment Co.:

6.75% 11/15/14

3,710

3,599

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Hotels, Restaurants & Leisure - continued

Gaylord Entertainment Co.: - continued

8% 11/15/13

$ 920

$ 968

Herbst Gaming, Inc.:

7% 11/15/14

2,500

2,506

8.125% 6/1/12

835

887

ITT Corp. 7.375% 11/15/15

2,560

2,842

Landry's Seafood Restaurants, Inc. 7.5% 12/15/14

5,170

5,015

Mandalay Resort Group:

6.375% 12/15/11

1,220

1,232

6.5% 7/31/09

1,995

2,037

MGM MIRAGE:

6% 10/1/09

1,050

1,059

6.625% 7/15/15 (f)

5,280

5,333

6.75% 9/1/12

1,310

1,349

8.5% 9/15/10

435

482

Mohegan Tribal Gaming Authority 6.875% 2/15/15 (f)

2,140

2,188

Morton's Restaurant Group, Inc. 7.5% 7/1/10

1,215

1,191

Penn National Gaming, Inc.:

6.75% 3/1/15 (f)

4,375

4,353

8.875% 3/15/10

1,105

1,182

Scientific Games Corp. 6.25% 12/15/12 (f)

660

663

Speedway Motorsports, Inc. 6.75% 6/1/13

3,495

3,600

Starwood Hotels & Resorts Worldwide, Inc.:

7.375% 5/1/07

1,480

1,545

7.875% 5/1/12

985

1,108

Station Casinos, Inc.:

6% 4/1/12

1,790

1,817

6.5% 2/1/14

1,670

1,710

Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11

3,735

3,992

Town Sports International Holdings, Inc. 0% 2/1/14 (d)

5,035

2,895

Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10

5,760

6,610

Uno Restaurant Corp. 10% 2/15/11 (f)

2,690

2,542

Vail Resorts, Inc. 6.75% 2/15/14

5,060

5,136

Virgin River Casino Corp./RBG LLC/B&BB, Inc.:

0% 1/15/13 (d)(f)

1,200

840

9% 1/15/12 (f)

710

740

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Hotels, Restaurants & Leisure - continued

Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (f)

$ 529

$ 571

Wheeling Island Gaming, Inc. 10.125% 12/15/09

735

779

79,612

Household Durables - 1.0%

D.R. Horton, Inc. 7.875% 8/15/11

170

190

Goodman Global Holdings, Inc.:

6.41% 6/15/12 (f)(i)

680

663

7.875% 12/15/12 (f)

13,850

12,811

K. Hovnanian Enterprises, Inc.:

6% 1/15/10

730

715

6.25% 1/15/15

1,320

1,300

7.75% 5/15/13

3,480

3,654

KB Home 8.625% 12/15/08

1,350

1,458

Meritage Homes Corp. 6.25% 3/15/15

1,790

1,665

Norcraft Holdings LP/Norcraft Capital Corp. 0% 9/1/12 (d)

1,910

1,318

Standard Pacific Corp.:

7.75% 3/15/13

750

782

9.25% 4/15/12

1,240

1,364

Technical Olympic USA, Inc. 7.5% 1/15/15

2,000

1,770

Tempur-Pedic, Inc./Tempur Production USA, Inc. 10.25% 8/15/10

1,015

1,132

28,822

Leisure Equipment & Products - 0.0%

Riddell Bell Holdings, Inc. 8.375% 10/1/12

720

720

Media - 5.3%

Cablevision Systems Corp. 8% 4/15/12

14,265

13,944

CanWest Media, Inc. 8% 9/15/12

860

903

Charter Communications Holding II LLC/Charter Communications Holdings II Capital Corp. 10.25% 9/15/10

2,720

2,747

Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:

0% 5/15/11 (d)

830

548

10% 4/1/09

535

413

10.75% 10/1/09

1,670

1,303

11.75% 1/15/10

505

394

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Media - continued

Charter Communications Operating LLC/Charter Communications Operating Capital Corp. 8% 4/30/12 (f)

$ 2,110

$ 2,110

Cinemark USA, Inc. 9% 2/1/13

200

207

Corus Entertainment, Inc. 8.75% 3/1/12

1,970

2,118

CSC Holdings, Inc.:

6.75% 4/15/12 (f)

3,730

3,506

7.625% 4/1/11

2,580

2,541

7.625% 7/15/18

12,970

12,451

7.875% 2/15/18

8,295

8,067

Dex Media, Inc. 8% 11/15/13

8,615

9,132

EchoStar DBS Corp.:

6.375% 10/1/11

3,705

3,673

6.625% 10/1/14

9,095

8,981

9.125% 1/15/09

42

45

Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14

1,505

1,565

Entravision Communications Corp. 8.125% 3/15/09

1,930

2,007

Haights Cross Communications, Inc. 0% 8/15/11 (d)

1,550

946

Haights Cross Operating Co. 11.75% 8/15/11

1,790

1,951

Houghton Mifflin Co.:

0% 10/15/13 (d)

11,050

8,011

8.25% 2/1/11

1,905

1,972

9.875% 2/1/13

6,890

7,286

IMAX Corp. 9.625% 12/1/10

1,810

1,901

Innova S. de R.L. 9.375% 9/19/13

9,135

10,265

Lamar Media Corp. 7.25% 1/1/13

370

389

Liberty Media Corp.:

5.7% 5/15/13

5,315

4,943

8.5% 7/15/29

5,320

5,375

Livent, Inc. yankee 9.375% 10/15/04 (c)

300

9

Marquee Holdings, Inc. 0% 8/15/14 (d)

2,650

1,603

PanAmSat Corp. 6.375% 1/15/08

490

497

R.H. Donnelley Corp. 6.875% 1/15/13

6,750

6,885

Radio One, Inc.:

6.375% 2/15/13 (f)

3,810

3,743

8.875% 7/1/11

2,065

2,215

Rainbow National LLC & RNS Co. Corp.:

8.75% 9/1/12 (f)

3,280

3,583

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER DISCRETIONARY - continued

Media - continued

Rainbow National LLC & RNS Co. Corp.: - continued

10.375% 9/1/14 (f)

$ 7,590

$ 8,729

Rogers Cable, Inc.:

5.5% 3/15/14

650

611

6.25% 6/15/13

2,090

2,080

6.75% 3/15/15

800

820

Sun Media Corp. Canada 7.625% 2/15/13

635

672

Susquehanna Media Co. 7.375% 4/15/13

770

801

The Reader's Digest Association, Inc. 6.5% 3/1/11

3,670

3,707

Videotron Ltee 6.875% 1/15/14

550

557

156,206

Multiline Retail - 0.1%

Marks & Spencer Group PLC 5.125% 11/7/06

EUR

2,000

2,503

Pinault Printemps-Redoute SA 5% 1/23/09

EUR

2,000

2,581

5,084

Specialty Retail - 0.1%

AutoNation, Inc. 9% 8/1/08

1,850

2,026

CSK Automotive, Inc. 7% 1/15/14

410

390

2,416

Textiles, Apparel & Luxury Goods - 0.3%

AAC Group Holding Corp. 0% 10/1/12 (d)(f)

5,165

3,461

Jostens Holding Corp. 0% 12/1/13 (d)

1,560

1,096

Levi Strauss & Co. 9.75% 1/15/15

3,880

3,832

8,389

TOTAL CONSUMER DISCRETIONARY

316,092

CONSUMER STAPLES - 0.7%

Food & Staples Retailing - 0.4%

Ahold Finance USA, Inc.:

6.5% 3/14/17

GBP

1,500

2,624

8.25% 7/15/10

3,755

4,136

J. Sainsbury PLC 5.25% 5/17/07

GBP

1,000

1,802

Reddy Ice Holdings, Inc. 0% 11/1/12 (d)(f)

3,250

2,373

Southern States Cooperative, Inc. 10.5% 11/1/10 (f)

925

920

11,855

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 0.3%

Dean Foods Co.:

6.625% 5/15/09

$ 90

$ 94

6.9% 10/15/17

979

1,023

Doane Pet Care Co. 10.75% 3/1/10

800

856

Hines Nurseries, Inc. 10.25% 10/1/11

370

374

Michael Foods, Inc. 8% 11/15/13

420

429

National Beef Packing Co. LLC/National Beef Finance Corp. 10.5% 8/1/11

1,730

1,652

Philipp Brothers Chemicals, Inc. 9.875% 6/1/08

1,909

1,814

Tate & Lyle International Finance PLC 5.75% 10/6/06

EUR

800

1,007

7,249

Household Products - 0.0%

Central Garden & Pet Co. 9.125% 2/1/13

260

279

Personal Products - 0.0%

Elizabeth Arden, Inc. 7.75% 1/15/14

470

489

TOTAL CONSUMER STAPLES

19,872

ENERGY - 4.6%

Energy Equipment & Services - 0.6%

CHC Helicopter Corp. 7.375% 5/1/14

3,185

3,185

Grant Prideco, Inc. 9% 12/15/09

170

185

Hanover Compressor Co.:

8.625% 12/15/10

490

515

9% 6/1/14

1,260

1,342

Ocean Rig Norway AS 8.375% 7/1/13 (f)

1,020

1,035

Petroliam Nasional BHD (Petronas) 7.625% 10/15/26 (Reg. S)

5,030

6,413

Seabulk International, Inc. 9.5% 8/15/13

3,290

3,697

SESI LLC 8.875% 5/15/11

60

64

16,436

Oil, Gas & Consumable Fuels - 4.0%

ANR Pipeline, Inc. 8.875% 3/15/10

2,520

2,759

Chesapeake Energy Corp.:

6.875% 1/15/16

2,879

2,994

7% 8/15/14

865

915

7.5% 6/15/14

850

918

7.75% 1/15/15

615

663

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

El Paso Corp. 7.625% 8/16/07 (f)

$ 1,280

$ 1,312

El Paso Production Holding Co. 7.75% 6/1/13

4,000

4,280

Encore Acquisition Co.:

6.25% 4/15/14

1,500

1,493

8.375% 6/15/12

755

823

Energy Partners Ltd. 8.75% 8/1/10

3,530

3,707

EXCO Resources, Inc. 7.25% 1/15/11

570

567

Forest Oil Corp. 8% 12/15/11

480

529

General Maritime Corp. 10% 3/15/13

2,945

3,195

Harvest Operations Corp. 7.875% 10/15/11

1,170

1,123

Houston Exploration Co. 7% 6/15/13

410

422

Hurricane Finance BV:

9.625% 2/12/10 (f)

300

329

9.625% 2/12/10 (Reg. S)

2,055

2,250

InterNorth, Inc. 9.625% 3/15/06 (c)

935

305

Luscar Coal Ltd. 9.75% 10/15/11

1,350

1,485

Markwest Energy Partners LP/ Markwest Energy Finance Corp. 6.875% 11/1/14 (f)

525

522

Massey Energy Co. 6.625% 11/15/10

2,850

2,893

OAO Gazprom:

9.625% 3/1/13

6,350

7,770

10.5% 10/21/09

3,620

4,335

Pan American Energy LLC 7.125% 10/27/09 (f)

2,880

2,945

Pemex Project Funding Master Trust:

4.71% 6/15/10 (f)(i)

7,455

7,686

5.5% 2/24/25 (f)

EUR

750

887

7.75% 9/28/49

4,216

4,332

8.625% 2/1/22

7,150

8,777

Petrobras Energia SA 9.375% 10/30/13

2,715

2,959

Plains Exploration & Production Co. 8.75% 7/1/12

1,610

1,747

Range Resources Corp. 7.375% 7/15/13

2,190

2,310

Ship Finance International Ltd. 8.5% 12/15/13

5,015

4,814

Teekay Shipping Corp. 8.875% 7/15/11

5,635

6,424

The Coastal Corp.:

6.375% 2/1/09

230

226

7.75% 6/15/10

2,180

2,226

7.75% 10/15/35

235

220

Venoco, Inc. 8.75% 12/15/11

1,470

1,441

Vintage Petroleum, Inc. 8.25% 5/1/12

1,000

1,080

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Williams Co., Inc. Credit Linked Certificate Trust III 6.75% 4/15/09 (f)

$ 1,820

$ 1,886

Williams Companies, Inc.:

7.125% 9/1/11

675

729

7.625% 7/15/19

9,487

10,673

7.75% 6/15/31

1,235

1,355

7.875% 9/1/21

2,950

3,359

8.125% 3/15/12

515

585

8.75% 3/15/32

2,510

3,012

YPF SA:

10% 11/2/28

845

1,027

yankee 9.125% 2/24/09

1,385

1,513

117,802

TOTAL ENERGY

134,238

FINANCIALS - 3.9%

Capital Markets - 0.3%

Banco BPI SA 0.105% 2/12/07 (i)

JPY

100,000

895

Bank of Scotland International Australia Ltd. 2.7071% 9/7/06 (i)

CAD

1,500

1,225

Macquarie Bank Ltd. 0.2038% 2/10/06 (i)

JPY

200,000

1,802

Merrill Lynch & Co., Inc. 0.3744% 5/28/08 (i)

JPY

200,000

1,813

UFJ Bank Ltd. 0.6794% 5/29/11 (i)

JPY

200,000

1,807

7,542

Commercial Banks - 0.9%

Australia & New Zealand Banking Group Ltd. 2.7329% 12/29/06 (i)

CAD

1,500

1,225

Banca Popolare di Lodi Investment Trust 6.742% 6/30/49 (i)

EUR

1,650

2,065

Banque Federative du Credit Mutuel (BFCM) 2.233% 7/24/06 (i)

EUR

500

604

Commonwealth Bank of Australia 2.7443% 11/28/06 (i)

CAD

1,750

1,429

Dresdner Bank AG for Kyivstar GSM 7.75% 4/27/12 (f)

1,050

1,051

European Investment Bank 4% 10/15/37

EUR

2,600

3,252

Export-Import Bank of Korea 0.1519% 11/4/05 (i)

JPY

500,000

4,504

Korea Development Bank (Reg.) 0.87% 6/28/10

JPY

300,000

2,707

Rabobank Nederland 2.6929% 2/23/07 (i)

CAD

250

204

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

FINANCIALS - continued

Commercial Banks - continued

San Paolo IMI Spa 2.404% 6/28/16 (i)

EUR

1,000

$ 1,213

Standard Bank London Ltd. 8.125% 9/30/09

2,900

3,052

Standard Chartered Bank PLC 3.625% 2/3/17 (e)

EUR

385

473

UBS Luxembourg SA for Vimpel Communications 10% 6/16/09

4,200

4,520

Westpac Banking Corp. 2.6971% 1/27/06 (i)

CAD

1,500

1,225

27,524

Consumer Finance - 0.4%

Countrywide Home Loans, Inc. 2.8371% 3/7/06 (i)

CAD

1,500

1,225

Ford Credit Europe PLC 3.103% 9/30/09 (i)

EUR

1,500

1,599

Ford Motor Credit Co. 6.625% 6/16/08

7,925

7,826

General Motors Acceptance Corp. 3.897% 7/5/05 (i)

EUR

1,000

1,210

GMAC International Finance BV 3.997% 10/3/05 (i)

EUR

1,000

1,211

Metris Companies, Inc. 10.125% 7/15/06

215

217

13,288

Diversified Financial Services - 1.0%

Aries Vermogensverwaltngs GmbH 9.6% 10/25/14 (f)

1,500

1,939

BAT International Finance PLC:

2.997% 4/3/06 (i)

EUR

1,500

1,823

3.625% 6/29/12

EUR

2,000

2,417

Caixa Finance BV 2.175% 11/21/06 (i)

EUR

1,000

1,210

Canada Housing Trust No. 1 4.65% 9/15/09

CAD

16,600

14,272

CCO Holdings LLC/CCO Holdings Capital Corp. 8.75% 11/15/13

955

938

Citigroup, Inc. 4.25% 2/25/30 (i)

EUR

1,500

1,806

Global Cash Access LLC/Global Cash Access Finance Corp. 8.75% 3/15/12

3,090

3,360

Santander International Debt SA 2.164% 12/14/06 (i)

EUR

500

605

Volkswagen International Finance NV 0.3875% 11/30/07 (i)

JPY

200,000

1,795

30,165

Insurance - 0.1%

AIG SunAmerica Institutional Funding III Ltd. 5.5% 3/7/11

EUR

1,000

1,365

Eureko BV 5.125% 6/29/49 (i)

EUR

350

430

1,795

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

FINANCIALS - continued

Real Estate - 0.9%

American Real Estate Partners/American Real Estate Finance Corp.:

7.125% 2/15/13 (f)

$ 3,630

$ 3,576

8.125% 6/1/12

4,955

5,116

BF Saul REIT 7.5% 3/1/14

3,400

3,536

Crescent Real Estate Equities LP/Crescent Finance Co. 9.25% 4/15/09

3,225

3,419

Senior Housing Properties Trust:

7.875% 4/15/15

4,040

4,323

8.625% 1/15/12

4,370

4,883

WT Finance Aust Pty Ltd./Westfield Europe Finance PLC/WEA Finance 3.625% 6/27/12

EUR

1,000

1,219

26,072

Thrifts & Mortgage Finance - 0.3%

Credit Logement SA 2.711% 12/2/49 (i)

EUR

500

605

Nationwide Building Society 0.0788% 3/3/06 (i)

JPY

200,000

1,803

Residential Capital Corp.:

6.375% 6/30/10 (f)

6,985

7,028

6.875% 6/30/15 (f)

485

497

9,933

TOTAL FINANCIALS

116,319

HEALTH CARE - 1.8%

Biotechnology - 0.0%

Polypore, Inc. 8.75% 5/15/12

1,675

1,570

Health Care Equipment & Supplies - 0.1%

Bio-Rad Laboratories, Inc. 7.5% 8/15/13

1,770

1,894

Health Care Providers & Services - 1.4%

AmeriPath, Inc. 10.5% 4/1/13

2,805

2,819

AmerisourceBergen Corp.:

7.25% 11/15/12

670

737

8.125% 9/1/08

465

502

Beverly Enterprises, Inc. 7.875% 6/15/14

5,285

5,761

Fresenius Medical Care Capital Trust IV 7.875% 6/15/11

1,000

1,075

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

HEALTH CARE - continued

Health Care Providers & Services - continued

HCA, Inc.:

5.75% 3/15/14

$ 5,020

$ 4,970

6.75% 7/15/13

3,715

3,906

National Nephrology Associates, Inc. 9% 11/1/11 (f)

490

550

PacifiCare Health Systems, Inc. 10.75% 6/1/09

908

999

Psychiatric Solutions, Inc. 10.625% 6/15/13

197

219

Rural/Metro Corp. 9.875% 3/15/15 (f)

1,700

1,645

Triad Hospitals, Inc. 7% 11/15/13

4,205

4,321

U.S. Oncology, Inc. 9% 8/15/12

1,300

1,391

Vanguard Health Holding Co. I 0% 10/1/15 (d)

2,450

1,743

Vanguard Health Holding Co. II LLC 9% 10/1/14

9,070

9,773

40,411

Pharmaceuticals - 0.3%

CDRV Investors, Inc. 0% 1/1/15 (d)(f)

3,760

1,861

Elan Finance PLC/Elan Finance Corp. 7.75% 11/15/11 (f)

1,585

1,363

Leiner Health Products, Inc. 11% 6/1/12

1,885

1,828

VWR International, Inc.:

6.875% 4/15/12

115

114

8% 4/15/14

330

315

Warner Chilcott Corp. 8.75% 2/1/15 (f)

2,525

2,449

7,930

TOTAL HEALTH CARE

51,805

INDUSTRIALS - 2.9%

Aerospace & Defense - 0.3%

Alliant Techsystems, Inc. 8.5% 5/15/11

2,020

2,151

Bombardier, Inc. 6.25% 2/23/06

GBP

750

1,358

Hexcel Corp. 6.75% 2/1/15

2,350

2,338

Orbimage Holdings, Inc. 13.19% 7/1/12 (f)(i)

1,720

1,802

7,649

Airlines - 0.5%

American Airlines, Inc. pass thru trust certificates:

7.377% 5/23/19

2,355

1,649

7.379% 5/23/16

842

589

AMR Corp.:

9% 8/1/12

1,100

858

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INDUSTRIALS - continued

Airlines - continued

AMR Corp.: - continued

9% 9/15/16

$ 1,290

$ 1,026

Continental Airlines, Inc. pass thru trust certificates:

6.748% 9/15/18

97

78

6.9% 7/2/18

695

577

8.312% 10/2/12

603

464

8.388% 5/1/22

920

773

Delta Air Lines, Inc.:

7.9% 12/15/09

3,345

1,179

8.3% 12/15/29

4,730

1,253

Delta Air Lines, Inc. pass thru trust certificates:

7.57% 11/18/10

1,280

1,204

7.711% 9/18/11

320

179

7.92% 5/18/12

3,340

1,837

10.06% 1/2/16

170

85

Northwest Airlines Corp. 10% 2/1/09

1,270

559

Northwest Airlines, Inc.:

7.875% 3/15/08

1,252

507

9.875% 3/15/07

570

294

10.5% 4/1/09

287

129

Northwest Airlines, Inc. pass thru trust certificates:

7.248% 7/2/14

313

166

7.691% 4/1/17

33

22

7.95% 9/1/16

44

32

8.07% 1/2/15

1,346

633

8.304% 9/1/10

196

139

NWA Trust 10.23% 6/21/14

258

209

14,441

Building Products - 0.3%

Jacuzzi Brands, Inc. 9.625% 7/1/10

3,915

4,267

Maax Holdings, Inc. 0% 12/15/12 (d)(f)

4,470

2,012

NTK Holdings, Inc. 0% 3/1/14 (d)(f)

6,135

2,945

9,224

Commercial Services & Supplies - 0.3%

Allied Security Escrow Corp. 11.375% 7/15/11

2,255

2,187

Allied Waste North America, Inc. 6.5% 11/15/10

830

820

Browning-Ferris Industries, Inc.:

7.4% 9/15/35

1,640

1,410

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INDUSTRIALS - continued

Commercial Services & Supplies - continued

Browning-Ferris Industries, Inc.: - continued

9.25% 5/1/21

$ 680

$ 682

JohnsonDiversey, Inc. 9.625% 5/15/12

2,845

2,873

R.H. Donnelley Finance Corp. I:

8.875% 12/15/10 (f)

350

382

10.875% 12/15/12 (f)

550

639

8,993

Construction & Engineering - 0.0%

Blount, Inc. 8.875% 8/1/12

1,250

1,338

Electrical Equipment - 0.3%

FIMEP SA 10.5% 2/15/13

2,885

3,303

General Cable Corp. 9.5% 11/15/10

3,055

3,269

Polypore, Inc. 0% 10/1/12 (d)(f)

5,840

3,183

9,755

Machinery - 0.2%

Cummins, Inc.:

7.125% 3/1/28

2,250

2,250

9.5% 12/1/10 (i)

320

352

Navistar International Corp.:

6.25% 3/1/12 (f)

2,040

1,964

7.5% 6/15/11

650

663

5,229

Marine - 0.3%

American Commercial Lines LLC/ACL Finance Corp. 9.5% 2/15/15 (f)

800

844

H-Lines Finance Holding Corp. 0% 4/1/13 (d)(f)

2,210

1,713

OMI Corp. 7.625% 12/1/13

4,625

4,602

Ultrapetrol Bahamas Ltd. 9% 11/24/14

1,795

1,598

8,757

Road & Rail - 0.5%

Grupo TMM SA de CV 10.5% 8/1/07 (f)

1,551

1,481

Kansas City Southern Railway Co.:

7.5% 6/15/09

3,165

3,244

9.5% 10/1/08

1,350

1,472

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INDUSTRIALS - continued

Road & Rail - continued

TFM SA de CV:

9.375% 5/1/12 (f)

$ 7,435

$ 7,770

yankee 10.25% 6/15/07

865

921

14,888

Trading Companies & Distributors - 0.2%

Neff Rent LLC/Neff Finance Corp. 11.25% 6/15/12 (f)

4,490

4,580

TOTAL INDUSTRIALS

84,854

INFORMATION TECHNOLOGY - 2.7%

Communications Equipment - 0.3%

Lucent Technologies, Inc.:

6.45% 3/15/29

10,845

9,679

6.5% 1/15/28

190

169

9,848

Electronic Equipment & Instruments - 0.4%

Altra Industrial Motion, Inc. 9% 12/1/11 (f)

970

917

Celestica, Inc. 7.875% 7/1/11

9,010

9,235

10,152

IT Services - 0.5%

Iron Mountain, Inc.:

6.625% 1/1/16

10,955

10,079

7.75% 1/15/15

1,330

1,343

8.25% 7/1/11

535

546

8.625% 4/1/13

2,900

3,002

14,970

Office Electronics - 1.0%

Xerox Capital Trust I 8% 2/1/27

4,585

4,734

Xerox Corp.:

6.875% 8/15/11

3,240

3,434

7.125% 6/15/10

3,720

3,957

7.2% 4/1/16

3,345

3,613

7.625% 6/15/13

12,425

13,357

29,095

Semiconductors & Semiconductor Equipment - 0.5%

Freescale Semiconductor, Inc. 7.125% 7/15/14

5,740

6,142

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co.:

6.66% 12/15/11 (f)(i)

$ 670

$ 663

6.875% 12/15/11 (f)

1,865

1,837

8% 12/15/14 (f)

520

499

New ASAT Finance Ltd. 9.25% 2/1/11

2,100

1,733

Semiconductor Note Participation Trust 0% 8/4/11 (f)

500

750

Viasystems, Inc. 10.5% 1/15/11

4,065

3,719

15,343

TOTAL INFORMATION TECHNOLOGY

79,408

MATERIALS - 3.7%

Chemicals - 1.5%

America Rock Salt Co. LLC 9.5% 3/15/14

3,940

3,999

BCP Crystal U.S. Holdings Corp. 9.625% 6/15/14

8,045

9,010

Braskem SA 11.75% 1/22/14 (f)

850

1,024

Compass Minerals Group, Inc. 10% 8/15/11

1,120

1,221

Crystal US Holding 3 LLC/Crystal US Sub 3 Corp.:

Series A, 0% 10/1/14 (d)

1,380

980

Series B, 0% 10/1/14 (d)

10,975

7,683

Equistar Chemicals LP/Equistar Funding Corp. 10.625% 5/1/11

910

1,007

Huntsman Advanced Materials LLC:

10.89% 7/15/08 (i)

940

987

11% 7/15/10

750

855

Huntsman ICI Chemicals LLC 10.125% 7/1/09

1,809

1,863

Huntsman LLC:

10.6406% 7/15/11 (i)

630

669

11.625% 10/15/10

466

545

JohnsonDiversey Holdings, Inc. 0% 5/15/13 (d)

4,800

3,372

Lanxess Finance BV 4.125% 6/21/12

EUR

1,115

1,352

Lyondell Chemical Co. 11.125% 7/15/12

930

1,053

Millennium America, Inc. 9.25% 6/15/08

2,515

2,732

Phibro Animal Health Corp.:

Series AO, 13% 12/1/07 unit

280

300

13% 12/1/07 unit

1,295

1,386

Resolution Performance Products LLC/RPP Capital Corp. 9.5% 4/15/10

2,470

2,556

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

MATERIALS - continued

Chemicals - continued

Solutia, Inc.:

6.72% 10/15/37 (c)

$ 1,145

$ 933

7.375% 10/15/27 (c)

2,370

1,932

45,459

Construction Materials - 0.0%

Texas Industries, Inc. 7.25% 7/15/13 (f)

630

646

Containers & Packaging - 0.8%

AEP Industries, Inc. 7.875% 3/15/13 (f)

640

640

BWAY Corp. 10% 10/15/10

1,175

1,222

Crown Cork & Seal, Inc.:

7.375% 12/15/26

1,110

1,005

7.5% 12/15/96

690

531

8% 4/15/23

3,915

3,739

Crown European Holdings SA:

9.5% 3/1/11

2,330

2,575

10.875% 3/1/13

1,520

1,790

Owens-Brockway Glass Container, Inc.:

6.75% 12/1/14

895

904

7.75% 5/15/11

320

339

8.25% 5/15/13

3,390

3,644

8.75% 11/15/12

2,325

2,563

8.875% 2/15/09

1,170

1,243

Sealed Air Finance 5.625% 7/19/06

EUR

250

311

Tekni-Plex, Inc.:

8.75% 11/15/13 (f)

1,600

1,396

10.875% 8/15/12 (f)

980

1,063

22,965

Metals & Mining - 0.8%

Aleris International, Inc. 9% 11/15/14

430

446

Compass Minerals International, Inc.:

0% 12/15/12 (d)

1,330

1,164

0% 6/1/13 (d)

2,260

1,887

CSN Islands VIII Corp. 9.75% 12/16/13 (f)

3,560

3,845

Edgen Acquisition Corp. 9.875% 2/1/11 (f)

1,340

1,300

Freeport-McMoRan Copper & Gold, Inc.:

6.875% 2/1/14

4,200

4,116

10.125% 2/1/10

2,400

2,676

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

MATERIALS - continued

Metals & Mining - continued

Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11

$ 1,335

$ 1,445

International Steel Group, Inc. 6.5% 4/15/14

4,720

4,531

Ispat Inland ULC 9.75% 4/1/14

932

1,086

Steel Dynamics, Inc.:

9.5% 3/15/09

65

69

9.5% 3/15/09

2,090

2,226

24,791

Paper & Forest Products - 0.6%

Georgia-Pacific Corp.:

7.375% 12/1/25

2,095

2,260

8% 1/15/24

4,215

4,837

8.875% 5/15/31

1,095

1,358

9.375% 2/1/13

2,540

2,870

Millar Western Forest Products Ltd. 7.75% 11/15/13

1,835

1,725

NewPage Corp.:

9.46% 5/1/12 (f)(i)

1,770

1,770

12% 5/1/13 (f)

1,930

1,916

16,736

TOTAL MATERIALS

110,597

TELECOMMUNICATION SERVICES - 7.8%

Diversified Telecommunication Services - 4.2%

AT&T Corp. 9.75% 11/15/31

10,230

13,254

Deutsche Telekom International Finance BV 6.25% 12/9/10

GBP

250

478

Empresa Brasileira de Telecomm SA 11% 12/15/08

5,486

6,254

Eschelon Operating Co. 8.375% 3/15/10

1,330

1,157

Level 3 Financing, Inc. 10.75% 10/15/11 (f)

2,525

2,146

MCI, Inc.:

6.688% 5/1/09

102

106

8.735% 5/1/14 (i)

4,435

4,973

Mobifon Holdings BV 12.5% 7/31/10

7,225

8,598

New Skies Satellites BV:

8.5388% 11/1/11 (f)(i)

750

767

9.125% 11/1/12 (f)

3,145

3,161

NTL Cable PLC 8.75% 4/15/14

13,365

14,067

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

TELECOMMUNICATION SERVICES - continued

Diversified Telecommunication Services - continued

PanAmSat Holding Corp. 0% 11/1/14 (d)

$ 3,600

$ 2,448

Qwest Corp.:

6.6706% 6/15/13 (f)(i)

6,970

7,136

7.875% 9/1/11

2,980

3,092

8.875% 3/15/12

25,740

27,992

Qwest Services Corp. 14% 12/15/14

1,105

1,326

Telecom Egypt SAE:

10.7% 2/4/10 (i)

EGP

3,565

617

10.95% 2/4/10

EGP

3,565

622

Telefonica de Argentina SA 9.125% 11/7/10

3,967

4,284

Telenet Group Holding NV 0% 6/15/14 (d)(f)

11,720

9,142

U.S. West Communications:

6.875% 9/15/33

5,398

4,669

7.125% 11/15/43

220

186

7.2% 11/10/26

3,115

2,788

7.25% 9/15/25

1,780

1,647

7.25% 10/15/35

1,300

1,149

7.5% 6/15/23

1,880

1,725

8.875% 6/1/31

340

344

124,128

Wireless Telecommunication Services - 3.6%

American Tower Corp. 7.125% 10/15/12

10,745

11,336

Centennial Cellular Operating Co./Centennial Communications Corp. 10.125% 6/15/13

7,015

7,927

Centennial Communications Corp./Centennial Cellular Operating Co. LLC/Centennial Puerto Rico Operations Corp. 8.125% 2/1/14 (i)

2,460

2,620

DirecTV Holdings LLC/DirecTV Financing, Inc.:

6.375% 6/15/15 (f)

3,960

3,935

8.375% 3/15/13

1,474

1,632

Globe Telecom, Inc. 9.75% 4/15/12

980

1,078

Inmarsat Finance II PLC 0% 11/15/12 (d)

17,010

13,395

Inmarsat Finance PLC 7.625% 6/30/12

645

680

Intelsat Ltd. 7.805% 1/15/12 (f)(i)

4,860

4,969

Kyivstar GSM 10.375% 8/17/09 (f)

4,000

4,430

Millicom International Cellular SA 10% 12/1/13

5,695

5,667

Mobile Telesystems Finance SA:

8% 1/28/12 (f)

8,240

8,343

8.375% 10/14/10 (f)

7,120

7,396

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - continued

Nextel Communications, Inc.:

5.95% 3/15/14

$ 1,150

$ 1,196

6.875% 10/31/13

6,365

6,779

7.375% 8/1/15

15,530

16,695

Rogers Communications, Inc. 6.535% 12/15/10 (i)

1,740

1,810

Rural Cellular Corp. 9.875% 2/1/10

2,355

2,420

Telemig Cellular SA/Amazonia Cellular SA 8.75% 1/20/09 (f)

1,010

1,055

UbiquiTel Operating Co. 9.875% 3/1/11

1,705

1,858

105,221

TOTAL TELECOMMUNICATION SERVICES

229,349

UTILITIES - 1.7%

Electric Utilities - 0.5%

AES Gener SA 7.5% 3/25/14

3,410

3,470

Chivor SA E.S.P. 9.75% 12/30/14 (f)

3,255

3,450

MSW Energy Holdings II LLC/MSW Finance Co. II, Inc. 7.375% 9/1/10

1,170

1,199

TECO Energy, Inc. 6.75% 5/1/15 (f)

1,020

1,076

Texas Genco LLC/Texas Genco Financing Corp. 6.875% 12/15/14 (f)

4,735

4,972

14,167

Gas Utilities - 1.0%

Northwest Pipeline Corp.:

6.625% 12/1/07

285

295

8.125% 3/1/10

400

432

Southern Natural Gas Co.:

7.35% 2/15/31

7,350

7,791

8% 3/1/32

4,170

4,754

8.875% 3/15/10

2,600

2,847

Tennessee Gas Pipeline Co.:

7% 10/15/28

550

561

7.5% 4/1/17

7,600

8,275

7.625% 4/1/37

1,035

1,133

8.375% 6/15/32

1,155

1,344

Corporate Bonds - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Nonconvertible Bonds - continued

UTILITIES - continued

Gas Utilities - continued

Transcontinental Gas Pipe Line Corp.:

7% 8/15/11

$ 330

$ 357

8.875% 7/15/12

1,455

1,742

29,531

Independent Power Producers & Energy Traders - 0.2%

Calpine Corp. 8.75% 7/15/13 (f)

2,300

1,702

Enron Corp.:

6.4% 7/15/06 (c)

545

178

6.625% 11/15/05 (c)

2,200

718

6.725% 11/17/08 (c)(i)

684

221

6.75% 8/1/09 (c)

550

179

6.875% 10/15/07 (c)

1,330

434

6.95% 7/15/28 (c)

1,204

388

7.125% 5/15/07 (c)

235

77

7.375% 5/15/19 (c)

1,400

455

7.875% 6/15/03 (c)

235

77

8.375% 5/23/05 (c)

2,500

769

9.125% 4/1/03 (c)

50

16

9.875% 6/15/03 (c)

220

72

Tenaska Alabama Partners LP 7% 6/30/21 (f)

1,175

1,199

6,485

TOTAL UTILITIES

50,183

TOTAL NONCONVERTIBLE BONDS

1,192,717

TOTAL CORPORATE BONDS

(Cost $1,167,182)

1,194,986

U.S. Government and Government Agency Obligations - 22.2%

U.S. Government Agency Obligations - 6.7%

Fannie Mae:

0% 9/28/05

12,000

11,900

3.25% 1/15/08

9,330

9,202

3.25% 2/15/09

6,040

5,901

3.625% 3/15/07

220

219

3.75% 5/17/07

2,520

2,512

U.S. Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

U.S. Government Agency Obligations - continued

Fannie Mae: - continued

3.875% 5/15/07

$ 10,000

$ 10,023

4.625% 10/15/14

13,000

13,332

5.125% 1/2/14

8,000

8,344

6% 5/15/11

7,675

8,441

6.125% 3/15/12

900

1,006

6.25% 2/1/11

380

416

6.375% 6/15/09

16,590

18,051

Federal Home Loan Bank:

2.25% 5/15/06

16,150

15,943

3.75% 9/28/06

1,825

1,821

3.8% 12/22/06

450

449

5.8% 9/2/08

2,920

3,084

Freddie Mac:

2.75% 8/15/06

350

346

2.875% 12/15/06

2,810

2,774

4.125% 7/12/10

32,000

32,146

4.25% 7/15/09

6,995

7,071

4.5% 7/15/13

250

255

4.875% 11/15/13

5,480

5,734

7% 3/15/10

24,053

27,129

Government Loan Trusts (assets of Trust guaranteed by U.S. Government through Agency for International Development) Series 1-B, 8.5% 4/1/06

36

37

Israeli State (guaranteed by U.S. Government through Agency for International Development) 5.5% 9/18/23

4,750

5,324

Private Export Funding Corp.:

secured 5.685% 5/15/12

1,285

1,403

4.974% 8/15/13

1,515

1,595

Small Business Administration guaranteed development participation certificates Series 2003 P10B, 5.136% 8/10/13

1,804

1,844

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS

196,302

U.S. Treasury Inflation Protected Obligations - 4.4%

U.S. Treasury Inflation-Indexed Bonds 3.625% 4/15/28

13,208

17,746

U.S. Treasury Inflation-Indexed Notes:

0.875% 4/15/10

22,080

21,535

U.S. Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

U.S. Treasury Inflation Protected Obligations - continued

U.S. Treasury Inflation-Indexed Notes: - continued

1.875% 7/15/13

$ 66,513

$ 67,926

2% 1/15/14

21,796

22,451

TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS

129,658

U.S. Treasury Obligations - 11.1%

U.S. Treasury Bonds:

6.125% 8/15/29

44,500

56,819

9% 11/15/18

2,000

2,988

11.25% 2/15/15

2,900

4,578

U.S. Treasury Notes:

1.625% 2/28/06

11,600

11,463

2.375% 8/31/06

26,000

25,647

2.75% 6/30/06

29,827

29,597

2.75% 7/31/06

50,000

49,576

3.375% 9/15/09

37,724

37,219

3.625% 4/30/07

31,452

31,435

4.25% 8/15/13

5,243

5,374

4.25% 11/15/13

7,930

8,124

4.25% 8/15/14

24,500

25,086

4.75% 5/15/14

38,000

40,322

TOTAL U.S. TREASURY OBLIGATIONS

328,228

TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS

(Cost $642,553)

654,188

U.S. Government Agency - Mortgage Securities - 2.6%

Fannie Mae - 2.6%

4% 3/1/19 to 7/1/19 (h)

8,076

7,915

4% 7/1/20 (g)(h)

2,324

2,275

4% 7/1/20 (g)(h)

1,500

1,469

4.5% 12/1/18

8,104

8,073

4.5% 7/1/20 (g)

12,000

11,936

5% 3/1/18 to 7/1/18

4,877

4,936

5% 8/1/35 (g)

20,418

20,367

5.5% 5/1/11 to 6/1/20

16,744

17,201

6% 8/1/13 to 1/1/26

140

145

6.5% 6/1/24 to 9/1/32

722

749

U.S. Government Agency - Mortgage Securities - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Fannie Mae - continued

7% 9/1/25

$ 9

$ 10

7.5% 1/1/28 to 5/1/28

127

136

TOTAL FANNIE MAE

75,212

Freddie Mac - 0.0%

8.5% 3/1/20

28

30

Government National Mortgage Association - 0.0%

6% 1/15/09 to 5/15/09

86

89

6.5% 4/15/26 to 5/15/26

74

77

7% 9/15/25 to 8/15/31

231

245

7.5% 2/15/22 to 8/15/28

272

293

8% 9/15/26 to 12/15/26

42

45

TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

749

TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES

(Cost $75,756)

75,991

Asset-Backed Securities - 0.2%

Cumbernauld Funding 5.2% 3/16/09

GBP

450

819

Driver One Gmbh Series 1 Class B, 2.334% 5/21/10 (i)

EUR

600

726

MBNA Credit Card Master Note Trust Series 2003-B4, 5.45% 9/17/13

GBP

1,500

2,765

Punch Taverns Finance PLC 5.2506% 4/15/09 (i)

GBP

797

1,426

Sedna Finance Corp. 2.861% 3/15/16 (i)

EUR

1,150

1,387

Unique Public Finance Co. PLC Series A4, 5.659% 6/30/27

GBP

60

115

TOTAL ASSET-BACKED SECURITIES

(Cost $7,580)

7,238

Collateralized Mortgage Obligations - 0.1%

Private Sponsor - 0.1%

Granite Mortgages PLC 2.504% 1/20/43 (i)

EUR

400

486

Holmes Financing No. 8 PLC floater Series 3 Class C, 2.988% 7/15/40 (i)

EUR

500

611

Collateralized Mortgage Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Private Sponsor - continued

Mortgages PLC Series 6 Class A1, 5.0588% 1/31/27 (i)

GBP

1,549

$ 2,776

Permanent Financing No. 1 PLC 5.1% 6/10/09 (i)

EUR

400

510

TOTAL PRIVATE SPONSOR

4,383

U.S. Government Agency - 0.0%

Freddie Mac planned amortization class Series 2351 Class PX, 6.5% 7/15/30

127

128

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS

(Cost $4,691)

4,511

Commercial Mortgage Securities - 0.2%

Opera Finance PLC 5.1888% 7/31/13 (i)

GBP

1,000

1,792

Real Estate Capital Foundation Ltd. Series 3 Class A, 5.2085% 7/15/16 (i)

GBP

2,000

3,573

TOTAL COMMERCIAL MORTGAGE SECURITIES

(Cost $5,446)

5,365

Foreign Government and Government Agency Obligations - 19.3%

Arab Republic 8.8773% to 9.862% 8/2/05 to 6/13/06

EGP

8,405

1,395

Argentine Republic:

Inflation-Indexed par 0.63% 12/31/38 unit (e)(j)

ARS

1,518

204

3% 4/30/13 (i)

1,400

1,131

3.01% 8/3/12 (i)

16,150

14,400

discount 8.28% (with partial capitalization through 12/31/2013) 12/31/33 unit (j)

3,843

3,538

Inflation-Indexed discount 5.83% (with partial capitalization through 12/31/2013) 12/31/33 unit (j)

ARS

3,474

1,239

Austrian Republic 5% 12/20/24 (f)

CAD

2,000

1,726

Banco Central del Uruguay:

Brady par A 6.75% 2/19/21

1,000

1,000

value recovery A rights 1/2/21 (k)

1,000,000

0

value recovery B rights 1/2/21 (k)

750,000

0

Brazilian Federative Republic:

Brady:

capitalization bond 8% 4/15/14

25,205

25,804

debt conversion bond 4.3125% 4/15/12 (i)

4,476

4,302

par Z-L 6% 4/15/24

2,260

2,189

10.5% 7/14/14

2,060

2,444

11% 1/11/12

1,545

1,846

11% 8/17/40

14,360

17,289

Foreign Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Brazilian Federative Republic: - continued

12.25% 3/6/30

$ 4,745

$ 6,358

12.75% 1/15/20

2,880

3,931

14.5% 10/15/09

3,160

4,108

Canadian Government:

3% 6/1/06

CAD

14,750

12,074

5.25% 6/1/12

CAD

9,450

8,484

5.5% 6/1/09

CAD

5,500

4,875

5.75% 6/1/29

CAD

11,250

11,194

Central Bank of Nigeria:

Brady 6.25% 11/15/20

2,000

1,980

promissory note 5.092% 1/5/10

4,179

4,156

warrants 11/15/20 (a)(k)

2,750

83

City of Kiev 8.75% 8/8/08

2,980

3,159

Colombian Republic:

10.75% 1/15/13

5,210

6,335

11.75% 3/1/10

COP

4,416,000

2,014

11.75% 2/25/20

2,560

3,366

Danish Kingdom 3.125% 10/15/10

EUR

3,000

3,728

Dominican Republic:

Brady 3.9425% 8/30/09 (i)

4,331

4,157

4.375% 8/30/24 (i)

6,033

5,520

Ecuador Republic:

8% 8/15/30 (Reg. S) (e)

1,870

1,571

12% 11/15/12 (Reg. S)

1,831

1,739

euro par 5% 2/28/25

645

461

Finnish Government 2.75% 9/15/10

EUR

1,000

1,223

French Government:

OAT 5.25% 4/25/08

EUR

1,200

1,573

3.5% 4/25/15

EUR

25,875

32,283

4% 4/25/55

EUR

750

967

4.75% 4/25/35

EUR

5,000

7,203

German Federal Republic:

2.5% 3/23/07

EUR

2,000

2,441

2.75% 6/23/06

EUR

16,000

19,508

3.75% 1/4/15

EUR

23,100

29,478

4.25% 1/4/14

EUR

22,530

29,814

Indonesian Republic 7.25% 4/20/15 (f)

970

982

Israeli State 7.5% 3/31/14

ILS

8,615

2,022

Japan Government:

0.2% 7/20/06

JPY

1,080,000

9,757

1.5% 3/20/14

JPY

2,615,000

24,592

Foreign Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Japan Government: - continued

2.4% 12/20/34

JPY

600,000

$ 5,634

Lebanese Republic:

6.77% 11/30/09 (f)(i)

1,840

1,808

6.77% 11/30/09 (i)

725

712

Malaysian Government 4.72% 9/30/15

MYR

17,500

4,776

Panamanian Republic Brady discount 2.6925% 7/17/26 (i)

125

116

Peruvian Republic:

3% 3/7/27 (e)

900

660

9.125% 2/21/12

2,860

3,375

9.875% 2/6/15

1,865

2,303

9.91% 5/5/15

PEN

6,040

2,060

Philippine Republic:

Brady principal collateralized interest reduction bond 6.5% 12/1/17

4,770

4,758

8.375% 2/15/11

9,215

9,561

9% 2/15/13

4,925

5,196

9.875% 1/15/19

1,800

1,946

10.625% 3/16/25

3,190

3,573

Republic of Serbia 3.75% 11/1/24 (e)(f)

615

530

Russian Federation:

5% 3/31/30 (e)(f)

3,900

4,368

5% 3/31/30 (Reg. S) (e)

22,840

25,581

11% 7/24/18 (Reg. S)

1,500

2,241

12.75% 6/24/28 (Reg. S)

3,855

6,978

South African Republic:

8.5% 6/23/17

860

1,112

13% 8/31/10

ZAR

10,420

1,924

State of Qatar 9.75% 6/15/30 (Reg. S)

1,195

1,855

Turkish Republic:

11% 1/14/13

4,250

5,387

11.5% 1/23/12

895

1,143

11.75% 6/15/10

5,715

7,101

11.875% 1/15/30

5,025

7,274

15.5488% to 20.5644% 7/5/06 to 1/24/07

TRY

10,715

6,638

Ukraine Government 6.365% 8/5/09 (i)

7,880

8,510

United Kingdom, Great Britain & Northern Ireland:

Index-Linked 2.5% 7/17/24

GBP

2,946

6,071

4.75% 9/7/15

GBP

1,950

3,662

5% 3/7/25

GBP

65

129

5.75% 12/7/09

GBP

2,000

3,827

Foreign Government and Government Agency Obligations - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

United Kingdom, Great Britain & Northern Ireland: - continued

6% 12/7/28

GBP

2,135

$ 4,841

8% 6/7/21

GBP

6,500

16,718

United Mexican States:

7.5% 4/8/33

13,135

15,138

8.125% 12/30/19

2,525

3,102

9.69% 12/8/05

MXN

31,775

2,832

11.5% 5/15/26

8,070

12,952

Uruguay Republic:

7.25% 2/15/11

2,470

2,485

17.75% 2/4/06

UYU

41,200

1,749

Venezuelan Republic:

Discount A, 4.25% 3/31/20 (i)

3,775

3,700

oil recovery rights 4/15/20 (k)

3,260

77

4.15% 4/20/11 (i)

1,990

1,821

5.375% 8/7/10

4,380

4,073

9.25% 9/15/27

4,345

4,569

10.75% 9/19/13

7,435

8,699

13.625% 8/15/18

3,440

4,630

euro Brady:

par W-A 6.75% 3/31/20

6,150

6,165

par W-B 6.75% 3/31/20

2,070

2,075

Vietnamese Socialist Republic Brady par 3.75% 3/12/28 (e)

2,685

2,007

TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS

(Cost $531,119)

568,085

Common Stocks - 1.1%

Shares

CONSUMER DISCRETIONARY - 0.6%

Diversified Consumer Services - 0.2%

Coinmach Service Corp. unit

330,000

4,445

Hotels, Restaurants & Leisure - 0.1%

Centerplate, Inc. unit

165,925

2,116

Common Stocks - continued

Shares

Value (Note 1)
(000s)

CONSUMER DISCRETIONARY - continued

Media - 0.3%

NTL, Inc. (a)

140,401

$ 9,606

NTL, Inc. Class A warrants 1/13/11 (a)

6

0

9,606

TOTAL CONSUMER DISCRETIONARY

16,167

HEALTH CARE - 0.0%

Health Care Providers & Services - 0.0%

Fountain View, Inc. (l)

98

2

TELECOMMUNICATION SERVICES - 0.5%

Diversified Telecommunication Services - 0.5%

Telewest Global, Inc. (a)

693,453

15,797

Wireless Telecommunication Services - 0.0%

DigitalGlobe, Inc. (a)(f)

895

1

TOTAL TELECOMMUNICATION SERVICES

15,798

TOTAL COMMON STOCKS

(Cost $21,770)

31,967

Preferred Stocks - 0.1%

Convertible Preferred Stocks - 0.0%

MATERIALS - 0.0%

Chemicals - 0.0%

Celanese Corp. 4.25%

6,600

160

Nonconvertible Preferred Stocks - 0.1%

CONSUMER DISCRETIONARY - 0.1%

Media - 0.1%

Spanish Broadcasting System, Inc. Class B, 10.75%

1,646

1,802

Specialty Retail - 0.0%

GNC Corp. Series A, 12.00% (a)

1,170

772

TOTAL CONSUMER DISCRETIONARY

2,574

FINANCIALS - 0.0%

Insurance - 0.0%

American Annuity Group Capital Trust II 8.875% (a)

240

250

Preferred Stocks - continued

Shares

Value (Note 1)
(000s)

Nonconvertible Preferred Stocks - continued

HEALTH CARE - 0.0%

Health Care Providers & Services - 0.0%

Fresenius Medical Care Capital Trust II 7.875%

1,260

$ 1,351

TELECOMMUNICATION SERVICES - 0.0%

Diversified Telecommunication Services - 0.0%

PTV, Inc. Series A, 10.00%

119

0

TOTAL NONCONVERTIBLE PREFERRED STOCKS

4,175

TOTAL PREFERRED STOCKS

(Cost $4,521)

4,335

Floating Rate Loans - 1.0%

Principal Amount (000s)(m)

CONSUMER DISCRETIONARY - 0.2%

Auto Components - 0.0%

Goodyear Tire & Rubber Co. Tranche 2, term loan 5.89% 4/30/10 (i)

$ 400

400

Automobiles - 0.1%

AM General LLC:

Tranche B1, term loan 7.7428% 11/1/11 (i)

2,470

2,563

Tranche C2, term loan 12.41% 5/2/12 (i)

1,300

1,372

3,935

Hotels, Restaurants & Leisure - 0.1%

Hilton Head Communications LP Tranche B, term loan 7.5% 3/31/08 (i)

1,800

1,746

Media - 0.0%

UPC Broadband Holding BV Tranche H2, term loan 5.752% 9/30/12 (i)

1,050

1,053

TOTAL CONSUMER DISCRETIONARY

7,134

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Coffeyville Resources LLC:

Credit-Linked Deposit 6.063% 7/8/11 (i)

180

171

Floating Rate Loans - continued

Principal Amount (000s)(m)

Value (Note 1)
(000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Coffeyville Resources LLC: - continued

Tranche 2, term loan 10.3125% 7/8/13 (i)

$ 2,020

$ 2,055

Tranche B1, term loan 6.063% 7/8/12 (i)

270

273

2,499

FINANCIALS - 0.2%

Diversified Financial Services - 0.2%

MGM Holdings II, Inc. Tranche B, term loan 5.74% 4/8/12 (i)

2,310

2,316

Olympus Cable Holdings LLC Tranche B, term loan 8.25% 9/30/10 (i)

2,720

2,683

4,999

HEALTH CARE - 0.3%

Health Care Providers & Services - 0.2%

DaVita, Inc. Tranche B, term loan LIBOR + 2.25% 7/30/12 (i)

5,345

5,412

Pharmaceuticals - 0.1%

Warner Chilcott Corp. term loan 5.9939% 1/18/12 (i)

3,991

4,001

TOTAL HEALTH CARE

9,413

INDUSTRIALS - 0.0%

Commercial Services & Supplies - 0.0%

Allied Waste Industries, Inc.:

term loan 5.3731% 1/15/12 (i)

566

567

Tranche A, Credit-Linked Deposit 5.34% 1/15/12 (i)

216

216

783

INFORMATION TECHNOLOGY - 0.2%

Software - 0.2%

Infor Global Solutions AG:

Tranche 1, term loan 6.712% 4/18/11 (i)

2,310

2,316

Tranche 2, term loan 10.712% 4/18/12 (i)

2,160

2,155

4,471

TOTAL FLOATING RATE LOANS

(Cost $28,422)

29,299

Sovereign Loan Participations - 0.2%

Principal Amount (000s)(m)

Value (Note 1)
(000s)

Indonesian Republic loan participation:

- Barclays Bank 4.375% 3/28/13 (i)

$ 207

$ 192

- Citibank 4.375% 3/28/13 (i)

726

672

- Credit Suisse First Boston:

4.375% 3/28/13 (i)

1,859

1,720

4.50% 12/14/19 (i)

1,190

1,003

- Deutsche Bank:

4.375% 3/28/13 (i)

932

863

0.955% 3/28/13 (i)

JPY

89,394

721

TOTAL SOVEREIGN LOAN PARTICIPATIONS

(Cost $4,955)

5,171

Fixed-Income Funds - 1.4%

Shares

Fidelity Floating Rate Central Investment Portfolio (b)
(Cost $40,280)

402,424

40,295

Money Market Funds - 11.3%

Fidelity Cash Central Fund, 3.21% (b)
(Cost $333,649)

333,648,614

333,649

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $2,867,924)

2,955,080

NET OTHER ASSETS - (0.3)%

(10,178)

NET ASSETS - 100%

$ 2,944,902

Currency Abbreviations

ARS

-

Argentine peso

CAD

-

Canadian dollar

COP

-

Colombian peso

EGP

-

Egyptian pound

EUR

-

European Monetary Unit

GBP

-

British pound

ILS

-

Israeli shekel

JPY

-

Japanese yen

MXN

-

Mexican peso

MYR

-

Malyasian ringgit

PEN

-

Peruvian new sol

TRY

-

New Turkish Lira

UYU

-

Uruguay peso

ZAR

-

South African rand

Legend

(a) Non-income producing

(b) 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 listing of the money market fund's holdings as of its most recent quarter end is available upon request. A complete listing of the fixed-income central fund's holdings is provided at the end of the report.

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

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

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

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $236,025,000 or 8.0% of net assets.

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

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

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

(j) Includes attached Argentine Republic Gross Domestic Product-Linked Securities, expiring 12/15/35.

(k) Quantity represents share amount.

(l) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $2,000 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

Fountain View, Inc.

8/19/03 - 1/22/04

$ 0

(m) Principal amount is stated in United States dollars unless otherwise noted.

Other Information

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

United States of America

70.1%

United Kingdom

3.3%

Germany

2.9%

Canada

2.8%

Brazil

2.5%

France

1.9%

Mexico

1.9%

Russia

1.9%

Japan

1.4%

Venezuela

1.3%

Argentina

1.0%

Others (individually less than 1%)

9.0%

100.0%

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

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)

June 30, 2005 (Unaudited)

Assets

Investment in securities, at value (cost $2,867,924) - See accompanying schedule

$ 2,955,080

Commitment to sell securities on a delayed delivery basis

$ (11,524)

Receivable for securities sold on a delayed delivery basis

11,535

11

Receivable for investments sold, regular delivery

10,178

Cash

1,458

Receivable for fund shares sold

13,126

Dividends receivable

11

Interest receivable

37,330

Prepaid expenses

4

Receivable from investment adviser for expense reductions

2

Other receivables

109

Total assets

3,017,309

Liabilities

Payable for investments purchased
Regular delivery

$ 25,665

Delayed delivery

36,040

Payable for fund shares redeemed

6,081

Distributions payable

1,579

Accrued management fee

1,370

Distribution fees payable

939

Other affiliated payables

490

Other payables and accrued expenses

243

Total liabilities

72,407

Net Assets

$ 2,944,902

Net Assets consist of:

Paid in capital

$ 2,837,407

Undistributed net investment income

23,919

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(3,496)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

87,072

Net Assets

$ 2,944,902

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

Semiannual Report

Statement of Assets and Liabilities - continued

Amounts in thousands (except per-share amounts)

June 30, 2005 (Unaudited)

Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($517,392 ÷ 44,231 shares)

$ 11.70

Maximum offering price per share (100/95.25 of $11.70)

$ 12.28

Class T:
Net Asset Value and redemption price per share ($1,132,683 ÷ 96,851 shares)

$ 11.70

Maximum offering price per share (100/96.50 of $11.70)

$ 12.12

Class B:
Net Asset Value and offering price per share ($340,837 ÷ 29,077 shares) A

$ 11.72

Class C:
Net Asset Value and offering price per share ($487,395 ÷ 41,717 shares) A

$ 11.68

Institutional Class:
Net Asset Value, offering price and redemption price per share ($466,595 ÷ 39,582 shares)

$ 11.79

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

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands

Six months ended June 30, 2005 (Unaudited)

Investment Income

Dividends

$ 545

Interest

75,580

Total income

76,125

Expenses

Management fee

$ 7,440

Transfer agent fees

2,327

Distribution fees

5,185

Accounting fees and expenses

444

Independent trustees' compensation

6

Custodian fees and expenses

146

Registration fees

182

Audit

34

Legal

5

Miscellaneous

211

Total expenses before reductions

15,980

Expense reductions

(148)

15,832

Net investment income

60,293

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities

13,671

Foreign currency transactions

(770)

Swap agreements

(42)

Total net realized gain (loss)

12,859

Change in net unrealized appreciation (depreciation) on:

Investment securities

(41,958)

Assets and liabilities in foreign currencies

445

Delayed delivery commitments

11

Total change in net unrealized appreciation (depreciation)

(41,502)

Net gain (loss)

(28,643)

Net increase (decrease) in net assets resulting from operations

$ 31,650

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

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands

Six months ended
June 30, 2005
(Unaudited)

Year ended
December 31, 2004

Increase (Decrease) in Net Assets

Operations

Net investment income

$ 60,293

$ 92,795

Net realized gain (loss)

12,859

59,820

Change in net unrealized appreciation (depreciation)

(41,502)

22,719

Net increase (decrease) in net assets resulting
from operations

31,650

175,334

Distributions to shareholders from net investment income

(55,163)

(88,523)

Distributions to shareholders from net realized gain

(21,336)

(32,409)

Total distributions

(76,499)

(120,932)

Share transactions - net increase (decrease)

661,485

715,583

Total increase (decrease) in net assets

616,636

769,985

Net Assets

Beginning of period

2,328,266

1,558,281

End of period (including undistributed net investment income of $23,919 and undistributed net investment income of $25,324, respectively)

$ 2,944,902

$ 2,328,266

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

Semiannual Report

Financial Highlights - Class A

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.93

$ 11.63

$ 10.34

$ 10.11

$ 10.12

$ 10.47

Income from Investment Operations

Net investment income E

.284

.600

.617

.668

.730 G

.793

Net realized and unrealized gain (loss)

(.146)

.445

1.321

.214

(.081) G

(.434)

Total from investment operations

.138

1.045

1.938

.882

.649

.359

Distributions from net investment income

(.263)

(.575)

(.648)

(.652)

(.659)

(.709)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.368)

(.745)

(.648)

(.652)

(.659)

(.709)

Net asset value, end of period

$ 11.70

$ 11.93

$ 11.63

$ 10.34

$ 10.11

$ 10.12

Total Return B, C, D

1.20%

9.31%

19.20%

9.09%

6.53%

3.58%

Ratios to Average Net Assets F

Expenses before expense reductions

1.01% A

1.00%

1.01%

1.04%

1.07%

1.08%

Expenses net of voluntary waivers, if any

1.00% A

1.00%

1.01%

1.04%

1.07%

1.08%

Expenses net of all reductions

1.00% A

1.00%

1.00%

1.04%

1.07%

1.08%

Net investment income

4.93% A

5.20%

5.58%

6.65%

7.18% G

7.76%

Supplemental Data

Net assets, end of period (in millions)

$ 517

$ 372

$ 187

$ 57

$ 33

$ 18

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Class T

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.92

$ 11.62

$ 10.33

$ 10.11

$ 10.11

$ 10.47

Income from Investment Operations

Net investment income E

.279

.593

.604

.660

.725 G

.788

Net realized and unrealized gain (loss)

(.135)

.443

1.322

.203

(.074) G

(.445)

Total from investment operations

.144

1.036

1.926

.863

.651

.343

Distributions from net investment income

(.259)

(.566)

(.636)

(.643)

(.651)

(.703)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.364)

(.736)

(.636)

(.643)

(.651)

(.703)

Net asset value, end of period

$ 11.70

$ 11.92

$ 11.62

$ 10.33

$ 10.11

$ 10.11

Total Return B, C, D

1.24%

9.23%

19.09%

8.89%

6.55%

3.42%

Ratios to Average Net Assets F

Expenses before expense reductions

1.07% A

1.07%

1.11%

1.13%

1.15%

1.14%

Expenses net of voluntary waivers, if any

1.07% A

1.07%

1.11%

1.13%

1.15%

1.14%

Expenses net of all reductions

1.07% A

1.07%

1.11%

1.13%

1.15%

1.14%

Net investment income

4.85% A

5.13%

5.47%

6.57%

7.10% G

7.70%

Supplemental Data

Net assets, end of period (in millions)

$ 1,133

$ 808

$ 515

$ 279

$ 238

$ 207

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 21, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Class B

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.95

$ 11.65

$ 10.35

$ 10.12

$ 10.13

$ 10.49

Income from Investment Operations

Net investment income E

.242

.513

.533

.595

.658 G

.722

Net realized and unrealized gain (loss)

(.147)

.441

1.330

.212

(.085) G

(.447)

Total from investment operations

.095

.954

1.863

.807

.573

.275

Distributions from net investment income

(.220)

(.484)

(.563)

(.577)

(.583)

(.635)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.325)

(.654)

(.563)

(.577)

(.583)

(.635)

Net asset value, end of period

$ 11.72

$ 11.95

$ 11.65

$ 10.35

$ 10.12

$ 10.13

Total Return B, C, D

.82%

8.45%

18.38%

8.28%

5.74%

2.73%

Ratios to Average Net Assets F

Expenses before expense reductions

1.80% A

1.78%

1.77%

1.78%

1.81%

1.80%

Expenses net of voluntary waivers, if any

1.75% A

1.78%

1.77%

1.78%

1.81%

1.80%

Expenses net of all reductions

1.75% A

1.78%

1.77%

1.78%

1.81%

1.80%

Net investment income

4.18% A

4.42%

4.81%

5.91%

6.44% G

7.04%

Supplemental Data

Net assets, end of period (in millions)

$ 341

$ 319

$ 287

$ 147

$ 116

$ 88

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Class C

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 11.91

$ 11.61

$ 10.32

$ 10.10

$ 10.11

$ 10.46

Income from Investment Operations

Net investment income E

.236

.505

.525

.585

.647 G

.707

Net realized and unrealized gain (loss)

(.146)

.444

1.320

.204

(.082) G

(.432)

Total from investment operations

.090

.949

1.845

.789

.565

.275

Distributions from net investment income

(.215)

(.479)

(.555)

(.569)

(.575)

(.625)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.320)

(.649)

(.555)

(.569)

(.575)

(.625)

Net asset value, end of period

$ 11.68

$ 11.91

$ 11.61

$ 10.32

$ 10.10

$ 10.11

Total Return B, C, D

.77%

8.43%

18.24%

8.10%

5.67%

2.74%

Ratios to Average Net Assets F

Expenses before expense reductions

1.85% A

1.82%

1.84%

1.87%

1.89%

1.91%

Expenses net of voluntary waivers, if any

1.84% A

1.82%

1.84%

1.87%

1.89%

1.91%

Expenses net of all reductions

1.84% A

1.82%

1.84%

1.87%

1.89%

1.90%

Net investment income

4.08% A

4.37%

4.74%

5.83%

6.35% G

6.94%

Supplemental Data

Net assets, end of period (in millions)

$ 487

$ 405

$ 277

$ 68

$ 40

$ 26

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Financial Highlights - Institutional Class

Six months ended
June 30, 2005

Years ended December 31,

(Unaudited)

2004

2003

2002

2001

2000

Selected Per-Share Data

Net asset value, beginning of period

$ 12.02

$ 11.71

$ 10.40

$ 10.17

$ 10.18

$ 10.53

Income from Investment Operations

Net investment income D

.297

.627

.635

.685

.725 F

.816

Net realized and unrealized gain (loss)

(.149)

.449

1.338

.210

(.059) F

(.437)

Total from investment operations

.148

1.076

1.973

.895

.666

.379

Distributions from net investment income

(.273)

(.596)

(.663)

(.665)

(.676)

(.729)

Distributions from net realized gain

(.105)

(.170)

-

-

-

-

Total distributions

(.378)

(.766)

(.663)

(.665)

(.676)

(.729)

Net asset value, end of period

$ 11.79

$ 12.02

$ 11.71

$ 10.40

$ 10.17

$ 10.18

Total Return B, C

1.27%

9.53%

19.44%

9.17%

6.67%

3.76%

Ratios to Average Net Assets E

Expenses before expense reductions

.82% A

.81%

.87%

.92%

.94%

.90%

Expenses net of voluntary waivers, if any

.82% A

.81%

.87%

.92%

.94%

.90%

Expenses net of all reductions

.82% A

.81%

.87%

.92%

.94%

.90%

Net investment income

5.10% A

5.38%

5.71%

6.78%

7.31% F

7.95%

Supplemental Data

Net assets, end of period (in millions)

$ 467

$ 424

$ 291

$ 120

$ 42

$ 4

Portfolio turnover rate

97% A

94%

153%

111%

120%

99%

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 any voluntary 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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2005 (Unaudited)

(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Advisor Strategic 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, 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 expense reductions also differ by class.

The fund may invest in affiliated fixed-income and money market central funds (Underlying Funds) managed by affiliates of Fidelity Management & Research Company (FMR). The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund and underlying fixed-income funds (funds):

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities, including restricted securities, for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

1. Significant Accounting Policies - continued

Security Valuation - continued

Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies, including Underlying Funds, are valued at their net asset value each business day.

Foreign Currency. Certain funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. Security transactions, including the fund's investment activity in the Underlying Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including income from the Underlying Funds, is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

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.

Semiannual Report

1. Significant Accounting Policies - continued

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. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income 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 foreign currency transactions, prior period premium and discount on debt securities, defaulted bonds, market discount, non-taxable dividends, swap agreements, 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

$ 121,218

Unrealized depreciation

(31,739)

Net unrealized appreciation (depreciation)

$ 89,479

Cost for federal income tax purposes

$ 2,865,601

2. Operating Policies.

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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities. Certain funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. Certain funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. The payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the fund's Statement of Assets and Liabilities under the caption "Delayed delivery". Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. Certain funds 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. Certain funds 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 contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

Swap Agreements. Certain funds may invest in swaps for the purpose of managing their exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. Periodic payments received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses,

Semiannual Report

2. Operating Policies - continued

Swap Agreements - continued

respectively. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts.

Mortgage Dollar Rolls. To earn additional income, certain funds may employ trading strategies which involve the sale and simultaneous agreement to repurchase similar securities ("mortgage dollar rolls") or the purchase and simultaneous agreement to sell similar securities ("reverse mortgage dollar rolls"). The securities traded are mortgage securities and bear the same interest rate but may be collateralized by different pools of mortgages. During the period between the sale and repurchase in a mortgage dollar roll transaction, a fund will not be entitled to receive interest and principal payments on the securities sold but will invest the proceeds of the sale in other securities which may enhance the yield and total return. In addition, the difference between the sale price and the future purchase price is recorded as an adjustment to investment income. During the period between the purchase and subsequent sale in a reverse mortgage dollar roll transaction a fund is entitled to interest and principal payments on the securities purchased. The price differential between the purchase and sale is recorded as an adjustment to investment income. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, a fund's right to repurchase or sell securities may be limited.

3. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $938,155 and $732,534, respectively.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

increases as assets under management decrease. For the period, the total annualized management fee rate was .58% 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, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

Distribution
Fee

Service
Fee

Paid to
FDC

Retained
by FDC

Class A

0%

.15%

$ 322

$ 3

Class T

0%

.25%

1,194

51

Class B

.65%

.25%

1,467

1,063

Class C

.75%

.25%

2,202

743

$ 5,185

$ 1,860

Sales Load. FDC receives a front-end sales charge of up to 4.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries 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 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.

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

Retained
by FDC

Class A

$ 432

Class T

140

Class B*

335

Class C*

47

$ 954

* 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.

Semiannual Report

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. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays 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, were as follows:

Amount

% of
Average
Net Assets

Class A

$ 427

.20*

Class T

767

.16*

Class B

382

.24*

Class C

394

.18*

Institutional Class

357

.16*

$ 2,327

* Annualized

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month.

Central Funds. Certain funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), Fidelity Management & Research Company, Inc. (FMRC), affiliates of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Money Market Central Funds seek preservation of capital and current income. The Floating Rate Central Investment Portfolio seeks a high level of income. The Central Funds do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $4,053 for the period.

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. During the period, there were no borrowings on this line of credit.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

6. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.

Expense
Limitations

Reimbursement
from adviser

Class A

1.25% -1.00%*

$ 29

Class B

2.00% -1.75%*

91

Class C

2.10% -1.85%*

18

$ 138

* Expense limitation in effect at period end.

In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $10.

7. Credit Risk.

The fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the fund's investments and the income they generate, as well as the fund's ability to repatriate such amounts.

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.

Semiannual Report

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30,
2005

Year ended
December 31,
2004

From net investment income

Class A

$ 9,630

$ 13,359

Class T

21,151

30,575

Class B

6,109

12,524

Class C

8,058

14,127

Institutional Class

10,215

17,938

Total

$ 55,163

$ 88,523

From net realized gain

Class A

$ 3,432

$ 5,220

Class T

7,595

11,202

Class B

2,834

4,464

Class C

3,698

5,646

Institutional Class

3,777

5,877

Total

$ 21,336

$ 32,409

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

10. Share Transactions.

Transactions for each class of shares were as follows:

Shares

Dollars

Six months ended
June 30,
2005

Year ended
December 31,
2004

Six months ended
June 30,
2005

Year ended
December 31,
2004

Class A

Shares sold

17,659

21,816

$ 206,463

$ 253,900

Reinvestment of distributions

900

1,282

10,542

15,021

Shares redeemed

(5,543)

(7,979)

(64,860)

(92,071)

Net increase (decrease)

13,016

15,119

$ 152,145

$ 176,850

Class T

Shares sold

36,627

39,956

$ 428,189

$ 465,339

Reinvestment of distributions

2,295

3,278

26,876

38,371

Shares redeemed

(9,820)

(19,779)

(114,604)

(229,093)

Net increase (decrease)

29,102

23,455

$ 340,461

$ 274,617

Class B

Shares sold

5,134

7,321

$ 60,058

$ 85,374

Reinvestment of distributions

561

1,045

6,585

12,249

Shares redeemed

(3,349)

(6,307)

(39,194)

(72,776)

Net increase (decrease)

2,346

2,059

$ 27,449

$ 24,847

Class C

Shares sold

11,287

16,778

$ 131,874

$ 195,224

Reinvestment of distributions

710

1,180

8,309

13,804

Shares redeemed

(4,234)

(7,887)

(49,369)

(90,740)

Net increase (decrease)

7,763

10,071

$ 90,814

$ 118,288

Institutional Class

Shares sold

7,576

15,202

$ 89,252

$ 176,823

Reinvestment of distributions

1,023

1,760

12,072

20,742

Shares redeemed

(4,307)

(6,561)

(50,708)

(76,584)

Net increase (decrease)

4,292

10,401

$ 50,616

$ 120,981

Semiannual Report

Proxy Voting Results

A special meeting of the fund's shareholders was held on March 16, 2005. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval. A

# of
Votes

% of
Votes

Affirmative

6,491,014,660.12

68.216

Against

1,110,401,588.77

11.670

Abstain

364,285,629.16

3.828

Broker
Non-Votes

1,549,650,136.89

16.286

TOTAL

9,515,352,014.94

100.000

PROPOSAL 2

To elect a Board of Trustees. A

# of
Votes

% of
Votes

Laura B. Cronin

Affirmative

9,191,010,795.38

96.591

Withheld

324,341,219.56

3.409

TOTAL

9,515,352,014.94

100.000

Dennis J. Dirks

Affirmative

9,199,049,001.28

96.676

Withheld

316,303,013.66

3.324

TOTAL

9,515,352,014.94

100.000

Robert M. Gates

Affirmative

9,189,372,083.98

96.574

Withheld

325,979,930.96

3.426

TOTAL

9,515,352,014.94

100.000

George H. Heilmeier

Affirmative

9,191,183,741.44

96.593

Withheld

324,168,273.50

3.407

TOTAL

9,515,352,014.94

100.000

# of
Votes

% of
Votes

Abigail P. Johnson

Affirmative

9,174,139,780.45

96.414

Withheld

341,212,234.49

3.586

TOTAL

9,515,352,014.94

100.000

Edward C. Johnson 3d

Affirmative

9,167,856,276.61

96.348

Withheld

347,495,738.33

3.652

TOTAL

9,515,352,014.94

100.000

Marie L. Knowles

Affirmative

9,196,147,863.00

96.645

Withheld

319,204,151.94

3.355

TOTAL

9,515,352,014.94

100.000

Ned C. Lautenbach

Affirmative

9,193,561,981.00

96.618

Withheld

321,790,033.94

3.382

TOTAL

9,515,352,014.94

100.000

Marvin L. Mann

Affirmative

9,184,085,149.84

96.519

Withheld

331,266,865.10

3.481

TOTAL

9,515,352,014.94

100.000

William O. McCoy

Affirmative

9,187,317,991.01

96.553

Withheld

328,034,023.93

3.447

TOTAL

9,515,352,014.94

100.000

Robert L. Reynolds

Affirmative

9,193,543,677.54

96.618

Withheld

321,808,337.40

3.382

TOTAL

9,515,352,014.94

100.000

Cornelia M. Small

Affirmative

9,193,853,155.26

96.621

Withheld

321,498,859.68

3.379

TOTAL

9,515,352,014.94

100.000

# of
Votes

% of
Votes

William S. Stavropoulos

Affirmative

9,191,672,816.31

96.598

Withheld

323,679,198.63

3.402

TOTAL

9,515,352,014.94

100.000

Kenneth L. Wolfe

Affirmative

9,193,356,513.29

96.616

Withheld

321,995,501.65

3.384

TOTAL

9,515,352,014.94

100.000

A Denotes trust-wide proposals and voting results.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Advisor Strategic Income Fund

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

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders by Fidelity. At the time of the renewal, the Board had 11 standing committees, each composed of independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically during the first six months of each year and as necessary to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the independent Trustees concerning, the approval and annual review of the Advisory Contracts.

At its June 2005 meeting, the Board of Trustees, including the independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (1) the nature, extent, and quality of the services to be provided to the fund and its shareholders by Fidelity (including the investment performance of the fund); (2) the competitiveness of the management fee and total expenses of the fund; (3) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (4) the extent to which economies of scale would be realized as the fund grows; and (5) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

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

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

Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians. The Board reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services. The Board also considered that Fidelity voluntarily decided in 2004 to stop using "soft" commission dollars to pay for market data and, instead, to pay for that data out of its own resources. The Board also considered the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

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

Semiannual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying an additional sales charge. The Board noted that, since the last Advisory Contract renewals in June 2004, Fidelity has taken a number of actions that benefited particular funds, including (i) voluntarily deciding in 2004 to stop using "soft" commission dollars to pay for market data and, instead, to pay for that data out of its own resources, (ii) contractually agreeing to impose management fee reductions and expense limitations on its five Spartan stock index funds and its stock index fund available through variable insurance products, (iii) contractually agreeing to eliminate the management fees on the Fidelity Freedom Funds and the Fidelity Advisor Freedom Funds, (iv) contractually agreeing to reduce the management fees on most of its investment-grade taxable bond funds, and (v) contractually agreeing to impose expense limitations on its retail and Spartan investment-grade taxable bond funds.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2004, the returns of Class C and Institutional Class of the fund, the returns of a broad-based securities market index ("benchmark"), and a range of returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Class C and Institutional Class represent the performance of classes with the highest and lowest 12b-1 fees, respectively (not necessarily with the highest and lowest total expenses). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the Lipper peer group. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the Lipper peer group whose performance was equal to or lower than that of the class indicated.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued



The Board noted that the relative investment performance of Institutional Class of the fund has compared favorably to its Lipper peer group over time. The Board also noted that the relative investment performance of Institutional Class of the fund has compared favorably to its benchmark over time, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

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

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

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 27% would mean that 73% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile ("quadrant") in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Semiannual Report



The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2004. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board noted that the total expenses of each of Class A, Class T, Class B, and Institutional Class ranked below its competitive median for 2004, and the total expenses of Class C ranked above its competitive median for 2004. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

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

Based on its review, the Board concluded that the total expenses for each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

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

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

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

Semiannual Report

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business. In addition, a special committee of the Board reviewed services provided to Fidelity by its affiliates and determined that the fees that Fidelity paid for such services were reasonable.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower fee rates as total fund assets under FMR's management increase, and for higher fee rates as total fund assets under FMR's management decrease. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Advisory Contracts, the Board requested additional information regarding (i) Fidelity's fund profitability methodology, including additional detail on various cost allocations; (ii) fall-out benefits to Fidelity; and (iii) compensation of portfolio managers and research analysts.

Semiannual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

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

Semiannual Report

The following is a complete listing of investments for Fidelity's
fixed-income central funds as of June 30, 2005 which are direct or indirect investments of Fidelity Advisor Strategic Income Fund.

Semiannual Report

Fidelity Floating Rate Central Investment Portfolio

Investments June 30, 2005 (Unaudited)

Showing Percentage of Net Assets

Floating Rate Loans (c) - 90.9%

Principal
Amount

Value

Automotive - 4.7%

Accuride Corp. term loan 5.6453% 1/31/12 (b)

$ 2,425,227

$ 2,431,290

AM General LLC Tranche B1, term loan 7.7428% 11/1/11 (b)

3,848,718

3,993,045

Goodyear Tire & Rubber Co.:

Tranche 1, 4.7852% 4/30/10 (b)

1,060,000

1,060,000

Tranche 2, term loan 5.89% 4/30/10 (b)

1,480,000

1,478,150

Travelcenters of America, Inc. Tranche B, term loan 5.09% 12/1/11 (b)

7,916,840

7,986,112

TRW Automotive Holdings Corp. Tranche B, term loan 4.375% 6/30/12 (b)

2,777,696

2,788,113

19,736,710

Broadcasting - 2.0%

Cumulus Media, Inc.:

Tranche E, term loan 5.125% 3/28/10 (b)

1,989,950

1,989,950

Tranche F, term loan 4.875% 3/28/10 (b)

987,525

987,525

Nexstar Broadcasting, Inc. Tranche B, term loan 4.87% 10/1/12 (b)

3,900,000

3,919,500

Spanish Broadcasting System, Inc. Tranche 1, term loan 5.49% 6/7/12 (b)

1,571,063

1,586,773

8,483,748

Building Materials - 1.1%

Euramax International, Inc./Euramax International Holdings BV Tranche 1, term loan 5.875% 6/29/12 (b)

1,850,000

1,875,438

Goodman Global Holdings, Inc. term loan 5.5% 12/23/11 (b)

1,213,900

1,232,109

Masonite International Corp. term loan 5.2153% 4/5/13 (b)

1,466,325

1,462,659

4,570,206

Cable TV - 6.2%

Adelphia Communications Corp. Tranche B, term loan 5.375% 3/31/06 (b)

2,450,000

2,462,250

Century Cable Holdings LLC Tranche B, term loan 8.25% 6/30/09 (b)

3,000,000

2,970,000

Charter Communications Operating LLC:

Tranche A, term loan 6.19% 4/27/10 (b)

2,642,875

2,606,536

Tranche B, term loan 6.44% 4/7/11 (b)

1,994,962

1,977,506

DIRECTV Holdings LLC Tranche B, term loan 4.7363% 4/13/13 (b)

2,260,000

2,274,125

NTL Investment Holdings Ltd. Tranche B, term loan 6.41% 6/13/12 (b)

3,000,000

3,015,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Cable TV - continued

UPC Broadband Holding BV Tranche H2, term loan 5.752% 9/30/12 (b)

$ 3,940,000

$ 3,949,850

UPC Distribution Holdings BV Tranche F, term loan 6.6% 12/31/11 (b)

4,000,000

4,045,000

WideOpenWest Illinois, Inc. Tranche B, term loan 6.3027% 6/22/11 (b)

2,593,451

2,619,385

25,919,652

Capital Goods - 1.0%

Alliance Laundry Systems LLC term loan 5.59% 1/27/12 (b)

1,950,000

1,974,375

GenTek, Inc. term loan 6.0754% 2/28/11 (b)

1,995,000

1,985,025

Hexcel Corp. Tranche B, term loan 4.9125% 3/1/12 (b)

370,000

372,775

4,332,175

Chemicals - 1.8%

Celanese Holding LLC term loan 5.74% 4/6/11 (b)

2,340,526

2,369,782

Mosaic Co. Tranche B, term loan 5.0036% 2/21/12 (b)

1,895,250

1,914,203

PQ Corp. term loan 5.5% 2/11/12 (b)

3,291,750

3,308,209

7,592,194

Consumer Products - 1.7%

Burt's Bees, Inc. term loan 6.2397% 3/28/10 (b)

399,000

402,990

Central Garden & Pet Co. Tranche B, term loan 5.0279% 5/14/09 (b)

397,983

401,963

Del Laboratories, Inc. term loan 5.4683% 7/27/11 (b)

547,250

548,618

Fender Musical Instrument Corp. Tranche B, term loan 5.46% 4/1/12 (b)

810,000

820,125

Jostens IH Corp. Tranche A, term loan 5.64% 10/4/10 (b)

2,250,000

2,278,125

Rayovac Corp. term loan 5.2082% 2/7/12 (b)

498,750

503,738

Simmons Bedding Co. Tranche C, term loan 5.9099% 12/19/11 (b)

1,976,462

1,981,404

6,936,963

Containers - 0.2%

Berry Plastics Corp. term loan 5.6004% 12/2/11 (b)

950,000

964,250

Diversified Financial Services - 0.7%

Refco Finance Holdings LLC term loan 5.3144% 8/5/11 (b)

2,981,481

2,988,935

Diversified Media - 1.3%

Lamar Media Corp.:

Tranche A, term loan 4.4375% 6/30/09 (b)

925,000

925,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Diversified Media - continued

Lamar Media Corp.:

Tranche C, term loan 5.0625% 6/30/10 (b)

$ 2,985,000

$ 3,011,119

R.H. Donnelley Corp. Tranche A3, term loan 5.1509% 12/31/09 (b)

1,468,667

1,479,682

5,415,801

Electric Utilities - 3.1%

Covanta Energy Corp. Tranche 1:

Credit-Linked Deposit 6.46% 6/24/12 (b)

2,211,382

2,227,967

term loan 6.46% 6/24/12 (b)

1,788,618

1,802,033

NRG Energy, Inc.:

Credit-Linked Deposit 5.265% 12/24/11 (b)

1,706,250

1,714,781

term loan 5.2554% 12/24/11 (b)

2,182,781

2,193,695

Reliant Energy, Inc. term loan 6.0579% 4/30/10 (b)

1,995,000

2,012,456

Texas Genco LLC term loan 5.4098% 12/14/11 (b)

2,985,000

3,026,044

12,976,976

Energy - 6.6%

Coffeyville Resources LLC:

Credit-Linked Deposit 6.063% 7/8/11 (b)

704,000

668,800

Tranche B1, term loan 6.063% 7/8/12 (b)

1,056,000

1,069,200

El Paso Corp. Credit-Linked Deposit 5.855% 11/22/09 (b)

6,000,000

6,022,500

Energy Transfer Partners LP term loan 6.47% 6/16/08 (b)

5,000,000

5,025,000

Kerr-McGee Corp. Tranche B, term loan 5.79% 5/24/11 (b)

10,000,000

10,162,500

LB Pacific LP term loan 6.1471% 3/3/12 (b)

3,990,000

4,024,913

Universal Compression, Inc. term loan 5.24% 2/15/12 (b)

897,750

908,972

27,881,885

Entertainment/Film - 2.0%

MGM Holdings II, Inc. Tranche B, term loan 5.74% 4/8/12 (b)

8,550,000

8,571,375

Environmental - 1.6%

Allied Waste Industries, Inc.:

term loan 5.3731% 1/15/12 (b)

2,088,868

2,091,479

Tranche A, Credit-Linked Deposit 5.34% 1/15/12 (b)

797,297

798,294

Envirocare of Utah, Inc. Tranche 1, term loan 6.11% 4/13/10 (b)

3,818,182

3,832,500

6,722,273

Floating Rate Loans (c) - continued

Principal
Amount

Value

Food/Beverage/Tobacco - 3.2%

Centerplate, Inc. term loan 6.43% 10/1/10 (b)

$ 4,920,000

$ 4,944,600

Commonwealth Brands, Inc. term loan 6.625% 8/28/07 (b)

165,210

167,275

Constellation Brands, Inc. Tranche B, term loan 5.1451% 11/30/11 (b)

6,438,958

6,511,397

Herbalife International, Inc. term loan 5.16% 12/21/10 (b)

1,640,000

1,648,200

13,271,472

Gaming - 2.0%

Green Valley Ranch Gaming LLC term loan 5.49% 12/17/11 (b)

2,187,019

2,211,623

Herbst Gaming, Inc. term loan 5.6275% 1/7/11 (b)

399,000

401,993

Isle of Capri Casinos, Inc. term loan 5.0179% 2/4/11 (b)

199,000

200,990

Marina District Finance Co., Inc. term loan 5.185% 10/14/11 (b)

3,980,000

4,004,875

Resorts International Hotel & Casino, Inc. Tranche B1, term loan 5.83% 4/26/12 (b)

785,433

796,233

Venetian Casino Resort LLC Tranche B, term loan 5.24% 6/15/11 (b)

900,000

906,750

8,522,464

Healthcare - 14.5%

AMR HoldCo, Inc./ EmCare HoldCo, Inc. term loan 5.6734% 2/7/12 (b)

3,291,750

3,337,012

Community Health Systems, Inc. term loan 5.07% 8/19/11 (b)

3,974,975

4,014,725

CRC Health Corp. term loan 6.24% 5/11/11 (b)

950,000

961,875

DaVita, Inc. Tranche B, term loan LIBOR + 2.25% 7/30/12 (b)

8,000,000

8,100,000

HCA, Inc. term loan 4.33% 11/9/09 (b)

11,000,000

10,917,491

HealthSouth Corp.:

Credit-Linked Deposit 5.7235% 6/14/07 (b)

807,500

816,584

term loan 5.82% 6/14/07 (b)

2,992,500

3,022,425

LifePoint Hospitals, Inc. Tranche B, term loan 4.845% 4/15/12 (b)

5,940,000

5,954,850

Newquest, Inc. Tranche A, term loan 6.66% 3/1/11 (b)

487,500

489,938

PacifiCare Health Systems, Inc. Tranche B, term loan 5.0656% 12/6/10 (b)

6,947,500

6,999,606

Select Medical Holdings Corp. Tranche B, term loan 5.0419% 2/24/12 (b)

3,990,000

3,994,988

Skilled Healthcare Group, Inc. Tranche 2, term loan 10.74% 12/15/12 (b)

3,000,000

3,015,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Healthcare - continued

Vicar Operating, Inc. term loan 4.875% 5/16/11 (b)

$ 5,040,000

$ 5,052,600

Warner Chilcott Corp. term loan 5.9939% 1/18/12 (b)

3,992,057

4,002,037

60,679,131

Homebuilding/Real Estate - 5.3%

CB Richard Ellis Services, Inc. term loan 5.3167% 3/31/10 (b)

1,445,902

1,456,747

General Growth Properties, Inc. Tranche B, term loan 5.58% 11/12/08 (b)

5,971,575

6,023,826

Lake Las Vegas LLC Tranche 1, term loan 6.0887% 11/1/09 (b)

3,926,873

3,936,690

LNR Property Corp. Tranche B, term loan 6.3396% 2/3/08 (b)

3,919,880

3,934,580

Maguire Properties, Inc. Tranche B, term loan 4.9% 3/15/10 (b)

4,611,111

4,634,167

Shea Mountain House LLC Tranche B, term loan 5.27% 5/11/11 (b)

2,430,000

2,436,075

22,422,085

Hotels - 1.7%

Starwood Hotels & Resorts Worldwide, Inc. term loan 4.58% 10/9/06 (b)

5,151,815

5,151,815

Wyndham International, Inc. Tranche 1:

Credit-Linked Deposit 6.435% 5/6/11 (b)

172,415

172,846

term loan 6.5% 5/6/11 (b)

1,823,017

1,827,575

7,152,236

Insurance - 1.2%

Marsh & McLennan Companies, Inc. term loan 4.1875% 12/31/06 (b)

5,000,000

5,006,250

Leisure - 0.7%

24 Hour Fitness Worldwide, Inc. Tranche B, term loan 6.19% 6/8/12 (b)

3,000,000

3,037,500

Metals/Mining - 2.5%

Murray Energy Corp. Tranche 1, term loan 6.33% 1/28/10 (b)

498,750

501,244

Novelis, Inc. term loan 4.96% 1/7/12 (b)

3,461,538

3,491,827

Peabody Energy Corp. term loan 4.431% 3/21/10 (b)

2,955,664

2,959,358

Trout Coal Holdings LLC / Dakota Tranche 1, term loan 5.9736% 3/23/11 (b)

3,690,750

3,699,977

10,652,406

Floating Rate Loans (c) - continued

Principal
Amount

Value

Paper - 3.2%

Escanaba Timber LLC term loan 6% 5/2/08 (b)

$ 520,000

$ 528,450

Georgia-Pacific Corp. term loan 4.78% 7/2/09 (b)

1,000,000

1,000,000

Koch Cellulose LLC:

term loan 5.24% 5/7/11 (b)

1,958,517

1,980,550

Credit-Linked Deposit 4.6113% 5/7/11 (b)

602,945

609,728

Smurfit-Stone Container Enterprises, Inc.:

Credit-Linked Deposit 3.0888% 11/1/10 (b)

655,111

662,481

Tranche B, term loan 5.4158% 11/1/11 (b)

5,221,241

5,279,980

Tranche C, term loan 5.2921% 11/1/11 (b)

1,927,849

1,949,538

Xerium Technologies, Inc. Tranche B, term loan 5.49% 5/18/12 (b)

1,500,000

1,515,000

13,525,727

Publishing/Printing - 2.7%

Dex Media West LLC/Dex Media West Finance Co. Tranche B, term loan 4.9282% 9/9/10 (b)

6,618,287

6,667,924

Liberty Group Operating, Inc. Tranche B, term loan 5.4436% 2/28/12 (b)

197,006

197,499

R.H. Donnelley Corp. Tranche B2, term loan 5.0536% 6/30/11 (b)

4,298,142

4,330,378

11,195,801

Railroad - 1.4%

Kansas City Southern Railway Co. Tranche B1, term loan 5.1572% 3/30/08 (b)

2,788,360

2,823,214

RailAmerica, Inc. term loan 5.3125% 9/29/11 (b)

2,972,505

3,013,376

5,836,590

Restaurants - 2.4%

Domino's, Inc. term loan 5.25% 6/25/10 (b)

4,809,121

4,857,213

Jack in the Box, Inc. term loan 4.9463% 1/8/11 (b)

3,125,659

3,160,823

Landry's Seafood Restaurants, Inc. term loan 5.2387% 12/28/10 (b)

1,457,675

1,474,074

Ruth's Chris Steak House, Inc. term loan 6.25% 3/11/11 (b)

480,952

480,952

9,973,062

Services - 5.2%

Coinstar, Inc. term loan 5.55% 7/1/11 (b)

827,233

839,642

DynCorp term loan 6.0625% 2/11/11 (b)

2,000,000

2,010,000

Iron Mountain, Inc.:

term loan 5.125% 4/2/11 (b)

3,722,242

3,759,464

Tranche R, term loan 4.9816% 4/2/11 (b)

4,975,000

5,024,750

JohnsonDiversey, Inc. Tranche B, term loan 4.9578% 11/3/09 (b)

336,005

338,525

Floating Rate Loans (c) - continued

Principal
Amount

Value

Services - continued

Knowledge Learning Corp. term loan 5.99% 1/7/12 (b)

$ 4,061,111

$ 4,081,417

Rural/Metro Corp.:

Credit-Linked Deposit 5.65% 3/4/11 (b)

520,882

524,789

term loan 6.0297% 3/4/11 (b)

1,904,941

1,919,228

United Rentals, Inc.:

term loan 5.5742% 2/14/11 (b)

2,843,979

2,875,974

Tranche B, Credit-Linked Deposit 4.8224% 2/14/11 (b)

575,996

581,756

21,955,545

Shipping - 0.1%

Baker Tanks, Inc. term loan 5.8793% 1/30/11 (b)

249,375

251,869

Technology - 4.5%

AMI Semiconductor, Inc. term loan 4.83% 4/1/12 (b)

1,596,000

1,599,990

Fairchild Semiconductor Corp. Tranche B3, term loan 5.354% 12/31/10 (b)

2,060,334

2,080,937

Fidelity National Information Solutions, Inc. Tranche B, term loan 4.96% 3/9/13 (b)

5,719,500

5,698,052

Infor Global Solutions AG Tranche 1, term loan 6.712% 4/18/11 (b)

6,000,000

6,015,000

ON Semiconductor Corp. Tranche G, term loan 6.5% 12/15/11 (b)

2,985,000

2,992,463

UGS Holdings, Inc. Tranche C, term loan 5.1462% 3/31/12 (b)

475,172

479,924

18,866,366

Telecommunications - 6.0%

Alaska Communications Systems Holding term loan 5.49% 2/1/12 (b)

7,100,000

7,153,250

American Tower LP Tranche C, term loan 5.2099% 8/31/11 (b)

2,573,550

2,599,286

Conversant Holdings, Inc. Tranche B, term loan 7.3351% 3/31/11 (b)

1,962,500

1,945,328

Hawaiian Telcom Communications, Inc. Tranche B, term loan 5.73% 10/31/12 (b)

3,000,000

3,030,000

Intelsat Ltd. term loan 5.25% 7/28/11 (b)

3,236,542

3,264,862

New Skies Satellites BV term loan 5.4375% 5/2/11 (b)

1,490,609

1,511,105

NTELOS, Inc.:

term loan 8.33% 2/24/12 (b)

200,000

196,000

Tranche B, term loan 5.83% 8/24/11 (b)

995,000

995,000

Qwest Corp. Tranche A, term loan 7.9338% 6/30/07 (b)

1,600,000

1,648,000

Floating Rate Loans (c) - continued

Principal
Amount

Value

Telecommunications - continued

SpectraSite Communications, Inc. Tranche B, term loan 4.91% 5/19/12 (b)

$ 1,990,000

$ 2,004,925

Valor Telecommunications Enterprises LLC/Valor Finance Corp. Tranche B, term loan 5.392% 2/14/12 (b)

784,000

793,800

25,141,556

Textiles & Apparel - 0.3%

St. John Knits International, Inc. Tranche B, term loan 6% 3/23/12 (b)

498,750

503,114

William Carter Co. term loan 5.08% 6/29/12 (b)

850,000

860,625

1,363,739

TOTAL FLOATING RATE LOANS

(Cost $381,285,882)

381,946,942

Nonconvertible Bonds - 8.1%

Automotive - 3.5%

General Motors Acceptance Corp.:

4.145% 5/18/06 (b)

2,000,000

1,990,538

4.3948% 10/20/05 (b)

5,000,000

5,004,260

4.6019% 9/23/08 (b)

3,000,000

2,773,467

6.75% 1/15/06

2,000,000

2,015,780

7.5% 7/15/05

3,000,000

3,001,296

14,785,341

Diversified Financial Services - 1.2%

Residential Capital Corp. 4.835% 6/29/07 (a)(b)

5,000,000

5,001,880

Technology - 1.2%

Nortel Networks Corp. 6.125% 2/15/06

5,000,000

5,025,000

Telecommunications - 2.2%

Qwest Corp. 6.6706% 6/15/13 (a)(b)

2,840,000

2,907,450

Rogers Communications, Inc. 6.535% 12/15/10 (b)

6,000,000

6,240,000

9,147,450

TOTAL NONCONVERTIBLE BONDS

(Cost $34,062,076)

33,959,671

Cash Equivalents - 4.8%

Maturity
Amount

Value

Investments in repurchase agreements (Collateralized by U.S. Government Obligations, in a joint trading account at 3.42%, dated 6/30/05 due 7/1/05)
(Cost $19,961,000)

$ 19,962,899

$ 19,961,000

TOTAL INVESTMENT PORTFOLIO - 103.8%

(Cost $435,308,958)

435,867,613

NET OTHER ASSETS - (3.8)%

(15,788,511)

NET ASSETS - 100%

$ 420,079,102

Legend

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $7,909,330 or 1.9% of net assets.

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

(c) 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.

Income Tax Information

At June 30, 2005, the aggregate cost of investment securities for income tax purposes was $435,285,647. Net unrealized appreciation aggregated $581,966, of which $1,609,203 related to appreciated investment securities and $1,027,237 related to depreciated investment securities.

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Management & Research
(Far East) Inc.

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

Fidelity Investments Money Management, Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York

New York, NY

SII-USAN-0805
1.787776.102

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

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'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's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

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

Item 12. Exhibits

(a)

(1)

Not applicable.

(a)

(2)

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

(a)

(3)

Not applicable.

(b)

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

SIGNATURES

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

Fidelity Advisor Series II

By:

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

Date:

August 23, 2005

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:

August 23, 2005

By:

/s/Timothy F. Hayes

Timothy F. Hayes

Chief Financial Officer

Date:

August 23, 2005