Fidelity Government Income Fund NCSR Certified annual shareholder report (management investment company)

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-4085

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

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

Marc Bryant, Secretary

245 Summer St.

Boston, Massachusetts 02210
(Name and address of agent for service)

Registrant's telephone number, including area code:

617-563-7000


Date of fiscal year end:	August 31

Date of reporting period:	August 31, 2016

Item 1.

Reports to Stockholders

Fidelity Advisor® Government Income Fund -

Class A, Class T, Class C and Class I

Annual Report

August 31, 2016

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

Contents

Performance
Management's Discussion of Fund Performance
Investment Summary
Investments
Financial Statements
Notes to Financial Statements
Report of Independent Registered Public Accounting Firm
Trustees and Officers
Shareholder Expense Example
Distributions
Proxy Voting Results

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.

You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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

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

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

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.

For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE

Neither the Fund nor Fidelity Distributors Corporation is a bank.

Performance: The Bottom Line

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

Average Annual Total Returns

For the periods ended August 31, 2016	Past 1 year	Past 5 years	Past 10 years
Class A (incl. 4.00% sales charge)	(0.24)%	1.29%	3.72%
Class T (incl. 4.00% sales charge)	(0.23)%	1.30%	3.73%
Class C (incl. contingent deferred sales charge)	2.12%	1.34%	3.37%
Class I	4.19%	2.39%	4.41%

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

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

Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on October 24, 2006. Returns prior to October 24, 2006, are those of Fidelity® Government Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class C's 12b-1 fee been reflected, returns prior to October 24, 2006, would have been lower.

Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.

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

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Government Income Fund - Class A on August 31, 2006, and the current 4.00% sales charge was paid.

The chart shows how the value of your investment would have changed, and also shows how the Barclays® U.S. Government Bond Index performed over the same period.

See previous page for additional information regarding the performance of Class A.

	Period Ending Values
	$14,402	Fidelity Advisor® Government Income Fund - Class A
	$15,446	Barclays® U.S. Government Bond Index

Management's Discussion of Fund Performance

Market Recap: Taxable investment-grade bonds gained solidly for the 12 months ending August 31, 2016, a volatile period marked by persistent concern about global growth, divergent global monetary policies and Brexit – the U.K.’s late-June referendum vote to leave the European Union. The Barclays^® U.S. Aggregate Index rose 5.97% the past year, gaining significant ground in the mid-to-late stages of the period. The return primarily was driven by bond-price gains, partly as foreign investors sought the relatively higher yields and stability of U.S. fixed-income securities. Bond yields trended lower and the yield curve flattened for much of the period, especially in early 2016, soon after the U.S. Federal Reserve raised policy interest rates. Still, U.S. yields remained higher than those in most industrial countries, especially in Japan and parts of Europe, where rates largely were negative. Within the Barclays index, investment-grade corporate bonds led all major market segments by far, with a return of 9.64%. U.S. Treasuries, meanwhile, lagged many spread-based sectors, returning 5.14%. Commercial mortgage-backed securities topped the index, returning 6.72%, although most other securitized sectors fell short. Riskier, non-core fixed-income segments, including emerging-markets debt, led the broader market amid a strong surge in the period’s second half.

Comments from Lead Portfolio Manager William Irving: For the year, most of the fund’s share classes (excluding sales charges, if applicable), posted gains ranging from slightly above to slightly below 4%, trailing, net of fees, the 4.74% return of the Barclays 75% U.S. Government/25% U.S. MBS Blended Index. The fund’s out-of-index exposure to Treasury Inflation-Protected Securities hurt performance. These holdings, which we eliminated from the portfolio in March, performed poorly when we owned them as investors shunned inflation protection. We also lost a bit of ground relative to the benchmark from security selection among residential mortgage-backed securities. Here, our stake in TBA (to be announced) securities worked against. We paired these securities with floating-rate securities to synthesize mortgage exposure. However, this strategy underperformed: the floaters dropped in price and the TBAs got more expensive to buy forward. In contrast, holdings in out-of-benchmark commercial mortgage-backed securities (CMBS) issued by Freddie Mac aided our relative result, as they outpaced most other government bond sectors in the benchmark. Our positioning within the government agency debentures sector—with a bias toward comparatively high-yielding niche issuers—also added value.

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

Investment Summary (Unaudited)

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.

Coupon Distribution as of August 31, 2016

	% of fund's investments	% of fund's investments 6 months ago
Zero coupon bonds	0.0	0.0
0.01 - 0.99%	7.9	11.9
1 - 1.99%	26.9	27.6
2 - 2.99%	16.8	14.9
3 - 3.99%	23.2	21.6
4 - 4.99%	15.0	13.6
5 - 5.99%	8.6	9.0
6 - 6.99%	0.4	0.5
7 - 7.99%	0.1	0.0
8% and above	0.4	0.6

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

Asset Allocation (% of fund's net assets)

As of August 31, 2016^,^*
	Mortgage Securities	31.5%
	CMOs and Other Mortgage Related Securities	22.1%
	U.S. Treasury Obligations	44.9%
	U.S. Government Agency Obligations^***	3.1%
	Foreign Government & Government Agency Obligations	3.3%
	Short-Term Investments and Net Other Assets (Liabilities)^†	(4.9)%

* Foreign investments - 3.3%

** Futures and Swaps - 1.1%

*** Includes NCUA Guaranteed Notes

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

As of February 29, 2016^,^*
	Mortgage Securities	23.9%
	CMOs and Other Mortgage Related Securities	24.0%
	U.S. Treasury Obligations	46.3%
	U.S. Government Agency Obligations^***	3.2%
	Foreign Government & Government Agency Obligations	3.4%
	Short-Term Investments and Net Other Assets (Liabilities)^†	(0.8)%

* Foreign investments - 3.4%

** Futures and Swaps - 0.7%

*** Includes NCUA Guaranteed Notes

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

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

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

Investments August 31, 2016

Showing Percentage of Net Assets

U.S. Government and Government Agency Obligations - 48.0%
	Principal Amount (000s)	Value (000s)
U.S. Government Agency Obligations - 1.4%
Fannie Mae:
0.875% 8/2/19	$131	$130
1% 2/26/19	326	326
1.125% 12/14/18	240	241
Small Business Administration guaranteed development participation certificates:
Series 2002-20J Class 1, 4.75% 10/1/22	948	996
Series 2002-20K Class 1, 5.08% 11/1/22	1,368	1,461
Series 2004-20H Class 1, 5.17% 8/1/24	592	641
Tennessee Valley Authority:
1.75% 10/15/18	23,006	23,380
4.25% 9/15/65	25,633	31,132
5.25% 9/15/39	2,807	3,957
5.375% 4/1/56	3,438	4,953
		67,217
U.S. Treasury Obligations - 44.9%
U.S. Treasury Bonds:
2.25% 8/15/46	9,071	9,103
2.5% 2/15/46	18,500	19,542
2.5% 5/15/46	21,500	22,751
2.875% 8/15/45	119,495	135,879
3% 11/15/44	29,032	33,791
3% 11/15/45	40,000	46,602
3.625% 2/15/44	45,031	58,503
4.375% 2/15/38	78,154	110,893
4.375% 5/15/40	4,000	5,690
5% 5/15/37 (a)(b)	41,142	62,708
U.S. Treasury Notes:
0.75% 2/28/18	4,631	4,629
0.75% 4/30/18	18,000	17,986
0.75% 7/31/18	21,000	20,975
0.75% 8/31/18	85,000	84,894
0.75% 7/15/19	15,000	14,927
0.75% 8/15/19	64,855	64,523
0.875% 7/15/18	228	228
0.875% 6/15/19	50,303	50,240
1% 5/31/18	34,635	34,747
1.125% 1/15/19	25,562	25,710
1.125% 7/31/21(c)	45,586	45,403
1.125% 8/31/21	30,000	29,895
1.25% 11/30/18	15,000	15,131
1.375% 7/31/18	14,780	14,935
1.375% 9/30/18	17,526	17,718
1.375% 2/28/19	69,770	70,620
1.375% 3/31/20	144,474	146,102
1.375% 4/30/20	4,172	4,219
1.375% 8/31/20	5,000	5,049
1.375% 1/31/21	27,500	27,731
1.375% 4/30/21	20,000	20,159
1.375% 5/31/21	20,000	20,166
1.375% 8/31/23	57,341	57,043
1.5% 12/31/18	10,768	10,924
1.5% 1/31/19	6,408	6,503
1.5% 10/31/19	5,655	5,746
1.5% 1/31/22	54,399	54,990
1.5% 2/28/23	58,062	58,375
1.5% 3/31/23	30,000	30,145
1.5% 8/15/26	15,000	14,890
1.625% 4/30/19	11,603	11,824
1.625% 6/30/19	51,223	52,229
1.625% 12/31/19	41,368	42,197
1.625% 6/30/20	4,710	4,803
1.625% 7/31/20	30,000	30,593
1.625% 2/15/26	15,000	15,047
1.625% 5/15/26	26,000	26,075
1.75% 9/30/19	58,087	59,473
1.75% 10/31/20	18,000	18,435
1.75% 12/31/20	119,701	122,633
1.75% 2/28/22	5,000	5,118
2% 9/30/20	107,107	110,760
2% 7/31/22	18,845	19,541
2% 11/30/22	61,423	63,664
2% 8/15/25	65,444	67,783
2.125% 6/30/21	22,000	22,938
2.125% 12/31/21	2,000	2,087
2.25% 7/31/21	26,021	27,289
2.25% 11/15/25	34,249	36,210
		2,218,764
Other Government Related - 1.7%
National Credit Union Administration Guaranteed Notes:
Series 2010-A1 Class A, 1.0146% 12/7/20 (NCUA Guaranteed) (d)	3,648	3,638
Series 2011-R4 Class 1A, 0.8739% 3/6/20 (NCUA Guaranteed) (d)	1,835	1,834
National Credit Union Administration Guaranteed Notes Master Trust 3.45% 6/12/21 (NCUA Guaranteed)	74,000	80,580
		86,052
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,273,912)		2,372,033

U.S. Government Agency - Mortgage Securities - 6.3%
Fannie Mae - 4.8%
2.272% 7/1/35 (d)	60	62
2.276% 2/1/33 (d)	67	69
2.29% 11/1/33 (d)	82	86
2.298% 3/1/35 (d)	78	81
2.32% 12/1/34 (d)	180	186
2.35% 10/1/33 (d)	118	122
2.413% 10/1/33 (d)	54	56
2.453% 2/1/44 (d)	568	587
2.502% 4/1/44 (d)	890	919
2.523% 2/1/44 (d)	520	537
2.54% 6/1/42 (d)	309	322
2.551% 1/1/44 (d)	913	943
2.557% 10/1/33 (d)	112	118
2.574% 7/1/34 (d)	103	107
2.582% 3/1/36 (d)	413	431
2.6% 5/1/44 (d)	997	1,030
2.626% 5/1/44 (d)	1,520	1,579
2.627% 3/1/40 (d)	1,663	1,753
2.662% 7/1/35 (d)	202	213
2.678% 4/1/44 (d)	2,144	2,217
2.69% 3/1/37 (d)	115	120
2.693% 2/1/42 (d)	1,884	1,968
2.715% 2/1/36 (d)	48	51
2.751% 1/1/42 (d)	1,561	1,627
2.801% 11/1/36 (d)	84	88
2.803% 6/1/36 (d)	159	166
2.833% 3/1/35 (d)	79	83
2.951% 11/1/40 (d)	170	179
2.98% 9/1/41 (d)	203	212
2.991% 10/1/41 (d)	98	103
3% 6/1/45 to 11/1/45	2,870	2,980
3% 9/1/46 (e)	4,500	4,666
3% 9/1/46 (e)	3,770	3,909
3% 9/1/46 (e)	8,800	9,125
3% 10/1/46 (e)	4,500	4,657
3% 10/1/46 (e)	8,800	9,107
3% 10/1/46 (e)	3,770	3,902
3.007% 5/1/36 (d)	115	122
3.229% 7/1/41 (d)	302	318
3.352% 10/1/41 (d)	159	167
3.5% 9/1/46 (e)	92,000	96,923
3.557% 7/1/41 (d)	389	409
4% 5/1/29 to 2/1/42	61,992	66,267
4.5% 7/1/33 to 4/1/39	3,978	4,393
5% 7/1/35	8,326	9,288
5.5% 1/1/29	1,751	1,968
6.5% 2/1/17 to 5/1/27	313	358
9.5% 10/1/20	9	10
11.5% 1/15/21	1	1
		234,585
Freddie Mac - 0.6%
2.32% 3/1/35 (d)	294	303
2.582% 5/1/37 (d)	220	229
2.71% 2/1/36 (d)	22	24
2.823% 10/1/42 (d)	1,329	1,405
2.916% 3/1/33 (d)	7	8
2.975% 10/1/41 (d)	2,685	2,824
2.99% 6/1/35 (d)	168	177
3% 2/1/31 to 2/1/43	15,769	16,568
3.067% 7/1/35 (d)	866	922
3.068% 9/1/41 (d)	1,824	1,909
3.193% 9/1/41 (d)	222	233
3.231% 4/1/41 (d)	228	238
3.286% 6/1/41 (d)	236	248
3.295% 7/1/36 (d)	309	329
3.417% 5/1/41 (d)	183	192
3.581% 10/1/35 (d)	153	164
3.627% 6/1/41 (d)	339	356
3.704% 5/1/41 (d)	299	315
4.5% 5/1/39 to 10/1/41	3,344	3,706
5.5% 7/1/29	36	41
6% 1/1/24	1,308	1,436
9.5% 6/1/18 to 8/1/21	11	12
		31,639
Ginnie Mae - 0.9%
4.3% 8/20/61 (f)	4,073	4,216
4.649% 2/20/62 (f)	2,912	3,065
4.682% 2/20/62 (f)	3,867	4,053
4.684% 1/20/62 (f)	22,772	23,853
5.47% 8/20/59 (f)	677	688
5.5% 11/15/35	2,107	2,427
5.612% 4/20/58 (f)	66	66
6% 6/15/36	4,656	5,411
		43,779
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES
(Cost $308,096)		310,003

Collateralized Mortgage Obligations - 15.8%
U.S. Government Agency - 15.8%
Fannie Mae:
floater:
Series 2001-38 Class QF, 1.5044% 8/25/31 (d)	111	113
Series 2002-49 Class FB, 1.1074% 11/18/31 (d)	99	99
Series 2002-60 Class FV, 1.5244% 4/25/32 (d)	43	43
Series 2002-75 Class FA, 1.5244% 11/25/32 (d)	87	89
Series 2010-15 Class FJ, 1.4544% 6/25/36 (d)	6,636	6,719
planned amortization class:
Series 2005-19 Class PA, 5.5% 7/25/34	1,951	2,078
Series 2005-27 Class NE, 5.5% 5/25/34	1,067	1,087
Series 2005-64 Class PX, 5.5% 6/25/35	2,034	2,232
Series 2005-68 Class CZ, 5.5% 8/25/35	4,837	5,460
Series 2006-45 Class OP, 6/25/36(g)	917	834
Series 2010-118 Class PB, 4.5% 10/25/40	7,053	7,704
sequential payer:
Series 2003-117 Class MD, 5% 12/25/23	1,046	1,130
Series 2004-91 Class Z, 5% 12/25/34	6,450	7,182
Series 2005-117 Class JN, 4.5% 1/25/36	645	692
Series 2005-14 Class ZB, 5% 3/25/35	1,947	2,169
Series 2006-72 Class CY, 6% 8/25/26	4,030	4,423
Series 2009-59 Class HB, 5% 8/25/39	2,729	3,038
Series 2010-97 Class CX, 4.5% 9/25/25	10,927	12,057
Series 2009-85 Class IB, 4.5% 8/25/24 (h)	379	25
Series 2009-93 Class IC, 4.5% 9/25/24 (h)	567	36
Series 2010-139 Class NI, 4.5% 2/25/40 (h)	4,497	566
Series 2010-39 Class FG, 1.4444% 3/25/36 (d)	4,088	4,164
Series 2010-97 Class CI, 4.5% 8/25/25 (h)	1,282	71
Series 2012-27 Class EZ, 4.25% 3/25/42	7,913	8,684
Series 2016-26 Class CG, 3% 5/25/46	26,470	27,563
Freddie Mac:
floater:
Series 2530 Class FE, 1.1077% 2/15/32 (d)	57	58
Series 2630 Class FL, 1.0077% 6/15/18 (d)	28	28
Series 2682 Class FB, 1.4077% 10/15/33 (d)	3,710	3,756
Series 2711 Class FC, 1.4077% 2/15/33 (d)	2,047	2,072
planned amortization class:
Series 1141 Class G, 9% 9/15/21	43	48
Series 2356 Class GD, 6% 9/15/16	0	0
Series 2376 Class JE, 5.5% 11/15/16	11	11
Series 2381 Class OG, 5.5% 11/15/16	1	1
Series 2682 Class LD, 4.5% 10/15/33	777	840
Series 3415 Class PC, 5% 12/15/37	611	666
Series 3763 Class QA, 4% 4/15/34	1,497	1,523
Series 3840 Class VA, 4.5% 9/15/27	4,162	4,388
planned amortization class sequential payer Series 2005-2963 Class VB, 5% 11/15/34	575	577
sequential payer:
Series 2004-2802 Class ZG, 5.5% 5/15/34	8,822	10,022
Series 2587 Class AD, 4.71% 3/15/33	3,856	4,124
Series 2773 Class HC, 4.5% 4/15/19	328	336
Series 2877 Class ZD, 5% 10/15/34	7,766	8,633
Series 3007 Class EW, 5.5% 7/15/25	6,242	6,816
Series 3745 Class KV, 4.5% 12/15/26	6,824	7,449
Series 3806 Class L, 3.5% 2/15/26	8,900	9,705
Series 3871 Class KB, 5.5% 6/15/41	13,870	15,607
Series 3889 Class DZ, 4% 1/15/41	33,433	37,090
Series 3843 Class PZ, 5% 4/15/41	2,434	3,026
Freddie Mac Multi-family Structured pass-thru certificates sequential payer:
Series 4335 Class AL, 4.25% 3/15/40	9,042	9,662
Series 4341 Class ML, 3.5% 11/15/31	12,563	13,285
Ginnie Mae guaranteed REMIC pass-thru certificates:
floater:
Series 2008-2 Class FD, 0.9924% 1/20/38 (d)	298	299
Series 2008-73 Class FA, 1.3724% 8/20/38 (d)	2,234	2,270
Series 2008-83 Class FB, 1.4124% 9/20/38 (d)	2,044	2,080
Series 2009-108 Class CF, 1.1067% 11/16/39 (d)	1,300	1,309
Series 2011-H20 Class FA, 1.0176% 9/20/61 (d)(f)	9,520	9,501
Series 2011-H21 Class FA, 1.0676% 10/20/61 (d)(f)	6,439	6,438
Series 2012-H01 Class FA, 1.1676% 11/20/61 (d)(f)	5,530	5,550
Series 2012-H03 Class FA, 1.1676% 1/20/62 (d)(f)	3,435	3,447
Series 2012-H06 Class FA, 1.0976% 1/20/62 (d)(f)	5,299	5,304
Series 2012-H07 Class FA, 1.0976% 3/20/62 (d)(f)	3,119	3,122
Series 2013-H19:
Class FC, 1.0676% 8/20/63 (d)(f)	1,176	1,176
Class FD, 1.0676% 8/20/63 (d)(f)	3,100	3,099
Series 2014-H02 Class FB, 1.1176% 12/20/63 (d)(f)	38,399	38,476
Series 2014-H03 Class FA, 1.0676% 1/20/64 (d)(f)	15,346	15,344
Series 2015-H07 Class FA, 0.3% 3/20/65 (d)(f)	21,864	21,784
Series 2015-H13 Class FL, 0.7476% 5/20/63 (d)(f)	28,397	28,293
Series 2015-H19 Class FA, 0.6676% 4/20/63 (d)(f)	27,411	27,282
floater sequential payer Series 2011-150 Class D, 3% 4/20/37	21	21
planned amortization class Series 2010-31 Class BP, 5% 3/20/40	11,191	12,953
sequential payer:
Series 2011-69 Class GX, 4.5% 5/16/40	10,205	11,326
Series 2013-H06 Class HA, 1.65% 1/20/63 (f)	5,989	5,975
Series 2013-H26 Class HA, 3.5% 9/20/63 (f)	48,661	50,553
Series 2014-H12 Class KA, 2.75% 5/20/64 (f)	6,268	6,441
Series 2016-H02 Class FM, 0.9676% 9/20/62 (d)(f)	23,955	23,946
Series 2016-H04 Class FE, 1.1176% 11/20/65 (d)(f)	6,909	6,921
Series 2010-H15 Class TP, 5.15% 8/20/60 (f)	16,467	17,321
Series 2010-H17 Class XP, 5.2989% 7/20/60 (d)(f)	20,210	21,200
Series 2010-H18 Class PL, 5.01% 9/20/60 (d)(f)	15,200	15,959
Series 2011-71 Class ZB, 5.5% 8/20/34	13,279	15,069
Series 2012-64 Class KB, 14.4687% 5/20/41 (d)	247	329
Series 2013-124:
Class ES, 7.9834% 4/20/39 (d)(i)	6,202	6,665
Class ST, 8.1168% 8/20/39 (d)(i)	11,908	13,092
Series 2015-H17 Class HA, 2.5% 5/20/65 (f)	16,172	16,398
Series 2015-H21:
Class HA, 2.5% 6/20/63 (f)	50,497	51,042
Class JA, 2.5% 6/20/65 (f)	6,032	6,100
Series 2015-H30 Class HA, 1.75% 9/20/62 (d)(f)	45,866	45,764
Series 2016-H13 Class FB, 1.18% 5/20/66 (d)(f)	27,355	27,332
Series 2090-118 Class XZ, 5% 12/20/39	13,406	16,309
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $780,920)		783,471

Commercial Mortgage Securities - 4.2%
Freddie Mac:
pass-thru certificates sequential payer Series K011 Class A2, 4.084% 11/25/20	3,740	4,098
sequential payer:
Series K027 Class A2, 2.637% 1/25/23	6,437	6,764
Series K029 Class A2, 3.32% 2/25/23 (d)	3,110	3,398
Series K034 Class A1, 2.669% 2/25/23	13,736	14,104
Series K037 Class A2, 3.49% 1/25/24	11,281	12,492
Series K710 Class A2, 1.883% 5/25/19	8,456	8,572
Series K717 Class A2, 2.991% 9/25/21	4,531	4,818
Series K032 Class A1, 3.016% 2/25/23	23,173	24,241
Series K039 Class A2, 3.303% 7/25/24	24,645	27,028
Series K042 Class A2, 2.67% 12/25/24	22,200	23,360
Series K501 Class A2, 1.655% 11/25/16	2,944	2,944
2.313% 3/25/20	5,437	5,601
Freddie Mac Multi-family Structured pass-thru certificates:
sequential payer Series K038 Class A2, 3.389% 3/25/24	7,000	7,709
Series K044 Class A2, 2.811% 1/25/25	58,600	62,266
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $201,013)		207,395

Foreign Government and Government Agency Obligations - 3.3%
Israeli State:
(guaranteed by U.S. Government through Agency for International Development):
5.5% 9/18/23	72,266	90,054
5.5% 12/4/23	48	60
5.5% 4/26/24	6,065	7,658
Jordanian Kingdom:
2.503% 10/30/20	41,050	42,991
3% 6/30/25	19,267	21,114
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $142,762)		161,877
	Shares	Value (000s)

Fixed-Income Funds - 24.8%
Fidelity Mortgage Backed Securities Central Fund (j)
(Cost $1,160,952)	11,060,897	1,224,994

Money Market Funds - 0.1%
Fidelity Cash Central Fund, 0.42% (k)
(Cost $6,187)	6,187,275	6,187
	Maturity Amount (000s)	Value (000s)

Cash Equivalents - 0.9%
Investments in repurchase agreements in a joint trading account at 0.5%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Government Obligations) # (l)
(Cost $44,792)	44,793	44,792
TOTAL INVESTMENT PORTFOLIO - 103.4%
(Cost $4,918,634)		5,110,752
NET OTHER ASSETS (LIABILITIES) - (3.4)%		(169,418)
NET ASSETS - 100%		$4,941,334

TBA Sale Commitments
	Principal Amount (000s)	Value (000s)
Fannie Mae
3% 9/1/46	$(4,500)	$(4,666)
3% 9/1/46	(8,800)	(9,126)
3% 9/1/46	(3,770)	(3,909)
3.5% 9/1/46	(70,200)	(73,957)
TOTAL TBA SALE COMMITMENTS
(Proceeds $91,690)		$(91,658)

Futures Contracts
	Expiration Date	Underlying Face Amount at Value (000s)	Unrealized Appreciation/(Depreciation) (000s)
Purchased
Treasury Contracts
57 CBOT 2-Year U.S. Treasury Note Contracts (United States)	Dec. 2016	12,444	$(12)

The face value of futures purchased as a percentage of Net Assets is 0.3%

Swaps

Clearinghouse/Counterparty(1)	Expiration Date	Notional Amount (000s)(1)	Payment Received	Payment Paid	Value (000s)	Upfront Premium Received/(Paid) (000s)(2)	Unrealized Appreciation/(Depreciation) (000s)
Interest Rate Swaps
CME	Sep. 2026	USD 23,200	2.25%	3-month LIBOR	$364	$0	$364
CME	Sep. 2046	1,120	2.75%	3-month LIBOR	101	0	101

TOTAL INTEREST RATE SWAPS					$465	$0	$465

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

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

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

Legend

(a) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $59,000.

(b) Security or a portion of the security was pledged to cover margin requirements for centrally cleared OTC swaps. At period end, the value of securities pledged amounted to $1,100,000

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

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

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

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

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

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

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

(k) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.

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

Affiliated Central Funds

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

Fund	Income earned
	(Amounts in thousands)
Fidelity Cash Central Fund	$43
Fidelity Mortgage Backed Securities Central Fund	26,745
Total	$26,788

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

Fund (Amounts in thousands)	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Mortgage Backed Securities Central Fund	$1,044,642	$164,891	$--	$1,224,994	16.7%
Total	$1,044,642	$164,891	$--	$1,224,994

Investment Valuation

The following is a summary of the inputs used, as of August 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs at Reporting Date:
Description	Total	Level 1	Level 2	Level 3
(Amounts in thousands)
Investments in Securities:
U.S. Government and Government Agency Obligations	$2,372,033	$--	$2,372,033	$--
U.S. Government Agency - Mortgage Securities	310,003	--	310,003	--
Collateralized Mortgage Obligations	783,471	--	783,471	--
Commercial Mortgage Securities	207,395	--	207,395	--
Foreign Government and Government Agency Obligations	161,877	--	161,877	--
Fixed-Income Funds	1,224,994	1,224,994	--	--
Money Market Funds	6,187	6,187	--	--
Cash Equivalents	44,792	--	44,792	--
Total Investments in Securities:	$5,110,752	$1,231,181	$3,879,571	$--
Derivative Instruments:
Assets
Swaps	$465	$--	$465	$--
Total Assets	$465	$--	$465	$--
Liabilities
Futures Contracts	$(12)	$(12)	$--	$--
Total Liabilities	$(12)	$(12)	$--	$--
Total Derivative Instruments:	$453	$(12)	$465	$--
Other Financial Instruments:
TBA Sale Commitments	$(91,658)	$--	$(91,658)	$--
Total Other Financial Instruments:	$(91,658)	$--	$(91,658)	$--

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Primary Risk Exposure / Derivative Type	Value (000s)
	Asset	Liability
Interest Rate Risk
Futures Contracts(a)	$0	$(12)
Swaps(b)	465	0
Total Value of Derivatives	$465	$(12)

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

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

Other Information

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

Repurchase Agreement / Counterparty	Value (000s)
$44,792,000 due 9/01/16 at 0.50%
Commerz Markets LLC	$44,792
	$44,792

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

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amounts)		August 31, 2016
Assets
Investment in securities, at value (including securities loaned of $43,823 and repurchase agreements of $44,792) — See accompanying schedule: Unaffiliated issuers (cost $3,751,495)	$3,879,571
Fidelity Central Funds (cost $1,167,139)	1,231,181
Total Investments (cost $4,918,634)		$5,110,752
Receivable for investments sold		249,346
Receivable for TBA sale commitments		91,690
Receivable for fund shares sold		3,238
Interest receivable		13,307
Distributions receivable from Fidelity Central Funds		17
Other receivables		50
Total assets		5,468,400
Liabilities
Payable for investments purchased
Regular delivery	$251,545
Delayed delivery	132,322
TBA sale commitments, at value	91,658
Payable for fund shares redeemed	4,384
Distributions payable	234
Accrued management fee	1,274
Distribution and service plan fees payable	174
Payable for daily variation margin for derivative instruments	9
Other affiliated payables	625
Other payables and accrued expenses	49
Collateral on securities loaned, at value	44,792
Total liabilities		527,066
Net Assets		$4,941,334
Net Assets consist of:
Paid in capital		$4,788,760
Distributions in excess of net investment income		(8,402)
Accumulated undistributed net realized gain (loss) on investments		(31,627)
Net unrealized appreciation (depreciation) on investments		192,603
Net Assets		$4,941,334
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($261,290 ÷ 24,506 shares)		$10.66
Maximum offering price per share (100/96.00 of $10.66)		$11.10
Class T:
Net Asset Value and redemption price per share ($196,507 ÷ 18,432 shares)		$10.66
Maximum offering price per share (100/96.00 of $10.66)		$11.10
Class C:
Net Asset Value and offering price per share ($93,974 ÷ 8,818 shares)^(a)		$10.66
Government Income:
Net Asset Value, offering price and redemption price per share ($3,895,882 ÷ 365,905 shares)		$10.65
Class I:
Net Asset Value, offering price and redemption price per share ($493,681 ÷ 46,293 shares)		$10.66

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

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

Statement of Operations

Amounts in thousands		Year ended August 31, 2016
Investment Income
Interest		$67,521
Income from Fidelity Central Funds		26,788
Total income		94,309
Expenses
Management fee	$14,336
Transfer agent fees	5,192
Distribution and service plan fees	1,893
Fund wide operations fee	1,798
Independent trustees' fees and expenses	21
Miscellaneous	15
Total expenses before reductions	23,255
Expense reductions	(38)	23,217
Net investment income (loss)		71,092
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	17,551
Futures contracts	(1,372)
Swaps	814
Total net realized gain (loss)		16,993
Change in net unrealized appreciation (depreciation) on: Investment securities	102,117
Futures contracts	1,133
Swaps	1,151
Delayed delivery commitments	(54)
Total change in net unrealized appreciation (depreciation)		104,347
Net gain (loss)		121,340
Net increase (decrease) in net assets resulting from operations		$192,432

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

Statement of Changes in Net Assets

Amounts in thousands	Year ended August 31, 2016	Year ended August 31, 2015
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$71,092	$61,673
Net realized gain (loss)	16,993	33,390
Change in net unrealized appreciation (depreciation)	104,347	(23,553)
Net increase (decrease) in net assets resulting from operations	192,432	71,510
Distributions to shareholders from net investment income	(77,548)	(57,747)
Distributions to shareholders from net realized gain	(39,904)	(10,638)
Total distributions	(117,452)	(68,385)
Share transactions - net increase (decrease)	502,872	395,804
Total increase (decrease) in net assets	577,852	398,929
Net Assets
Beginning of period	4,363,482	3,964,553
End of period	$4,941,334	$4,363,482
Other Information
Distributions in excess of net investment income end of period	$(8,402)	$(1,257)

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

Financial Highlights — Fidelity Government Income Fund Class A

Years ended August 31,	2016	2015	2014	2013	2012
Selected Per–Share Data
Net asset value, beginning of period	$10.50	$10.47	$10.20	$10.97	$10.90
Income from Investment Operations
Net investment income (loss)^A	.135	.126	.138	.105	.141
Net realized and unrealized gain (loss)	.270	.048	.278	(.454)	.327
Total from investment operations	.405	.174	.416	(.349)	.468
Distributions from net investment income	(.150)	(.116)	(.139)	(.099)	(.135)
Distributions from net realized gain	(.095)	(.028)	(.007)	(.322)	(.263)
Total distributions	(.245)	(.144)	(.146)	(.421)	(.398)
Net asset value, end of period	$10.66	$10.50	$10.47	$10.20	$10.97
Total Return^B,^C	3.92%	1.67%	4.10%	(3.29)%	4.39%
Ratios to Average Net Assets^D,^E
Expenses before reductions	.76%	.77%	.77%	.77%	.77%
Expenses net of fee waivers, if any	.76%	.77%	.77%	.77%	.77%
Expenses net of all reductions	.76%	.77%	.77%	.77%	.77%
Net investment income (loss)	1.28%	1.20%	1.34%	.99%	1.30%
Supplemental Data
Net assets, end of period (in millions)	$261	$222	$246	$291	$380
Portfolio turnover rate^F	93%	83%	131%	192%	222%

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

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

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

^D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.

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

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

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

Financial Highlights — Fidelity Government Income Fund Class T

Years ended August 31,	2016	2015	2014	2013	2012
Selected Per–Share Data
Net asset value, beginning of period	$10.50	$10.47	$10.20	$10.97	$10.90
Income from Investment Operations
Net investment income (loss)^A	.135	.127	.140	.107	.143
Net realized and unrealized gain (loss)	.270	.048	.277	(.454)	.327
Total from investment operations	.405	.175	.417	(.347)	.470
Distributions from net investment income	(.150)	(.117)	(.140)	(.101)	(.137)
Distributions from net realized gain	(.095)	(.028)	(.007)	(.322)	(.263)
Total distributions	(.245)	(.145)	(.147)	(.423)	(.400)
Net asset value, end of period	$10.66	$10.50	$10.47	$10.20	$10.97
Total Return^B,^C	3.92%	1.68%	4.12%	(3.27)%	4.41%
Ratios to Average Net Assets^D,^E
Expenses before reductions	.76%	.76%	.76%	.75%	.75%
Expenses net of fee waivers, if any	.76%	.76%	.76%	.75%	.75%
Expenses net of all reductions	.76%	.76%	.76%	.75%	.75%
Net investment income (loss)	1.28%	1.20%	1.36%	1.01%	1.32%
Supplemental Data
Net assets, end of period (in millions)	$197	$181	$196	$228	$309
Portfolio turnover rate^F	93%	83%	131%	192%	222%

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

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

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

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

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

Financial Highlights — Fidelity Government Income Fund Class C

Years ended August 31,	2016	2015	2014	2013	2012
Selected Per–Share Data
Net asset value, beginning of period	$10.50	$10.47	$10.20	$10.96	$10.90
Income from Investment Operations
Net investment income (loss)^A	.053	.044	.059	.025	.060
Net realized and unrealized gain (loss)	.270	.048	.278	(.443)	.318
Total from investment operations	.323	.092	.337	(.418)	.378
Distributions from net investment income	(.068)	(.034)	(.060)	(.020)	(.055)
Distributions from net realized gain	(.095)	(.028)	(.007)	(.322)	(.263)
Total distributions	(.163)	(.062)	(.067)	(.342)	(.318)
Net asset value, end of period	$10.66	$10.50	$10.47	$10.20	$10.96
Total Return^B,^C	3.12%	.88%	3.32%	(3.93)%	3.53%
Ratios to Average Net Assets^D,^E
Expenses before reductions	1.54%	1.55%	1.54%	1.52%	1.51%
Expenses net of fee waivers, if any	1.54%	1.55%	1.54%	1.52%	1.51%
Expenses net of all reductions	1.54%	1.55%	1.54%	1.52%	1.51%
Net investment income (loss)	.50%	.42%	.57%	.24%	.56%
Supplemental Data
Net assets, end of period (in millions)	$94	$54	$58	$73	$98
Portfolio turnover rate^F	93%	83%	131%	192%	222%

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

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

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

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

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

Financial Highlights — Fidelity Government Income Fund

Years ended August 31,	2016	2015	2014	2013	2012
Selected Per–Share Data
Net asset value, beginning of period	$10.48	$10.45	$10.18	$10.95	$10.88
Income from Investment Operations
Net investment income (loss)^A	.167	.159	.171	.138	.175
Net realized and unrealized gain (loss)	.281	.048	.278	(.453)	.328
Total from investment operations	.448	.207	.449	(.315)	.503
Distributions from net investment income	(.183)	(.149)	(.172)	(.133)	(.170)
Distributions from net realized gain	(.095)	(.028)	(.007)	(.322)	(.263)
Total distributions	(.278)	(.177)	(.179)	(.455)	(.433)
Net asset value, end of period	$10.65	$10.48	$10.45	$10.18	$10.95
Total Return^B	4.35%	1.99%	4.45%	(2.99)%	4.73%
Ratios to Average Net Assets^C,^D
Expenses before reductions	.45%	.45%	.45%	.45%	.45%
Expenses net of fee waivers, if any	.45%	.45%	.45%	.45%	.45%
Expenses net of all reductions	.45%	.45%	.45%	.45%	.45%
Net investment income (loss)	1.59%	1.51%	1.66%	1.31%	1.62%
Supplemental Data
Net assets, end of period (in millions)	$3,896	$3,489	$3,157	$3,412	$4,313
Portfolio turnover rate^E	93%	83%	131%	192%	222%

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

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

^C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.

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

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

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

Financial Highlights — Fidelity Government Income Fund Class I

Years ended August 31,	2016	2015	2014	2013	2012
Selected Per–Share Data
Net asset value, beginning of period	$10.50	$10.47	$10.20	$10.97	$10.90
Income from Investment Operations
Net investment income (loss)^A	.162	.154	.166	.133	.169
Net realized and unrealized gain (loss)	.271	.048	.277	(.454)	.327
Total from investment operations	.433	.202	.443	(.321)	.496
Distributions from net investment income	(.178)	(.144)	(.166)	(.127)	(.163)
Distributions from net realized gain	(.095)	(.028)	(.007)	(.322)	(.263)
Total distributions	(.273)	(.172)	(.173)	(.449)	(.426)
Net asset value, end of period	$10.66	$10.50	$10.47	$10.20	$10.97
Total Return^B	4.19%	1.94%	4.38%	(3.03)%	4.66%
Ratios to Average Net Assets^C,^D
Expenses before reductions	.50%	.50%	.51%	.51%	.51%
Expenses net of fee waivers, if any	.50%	.50%	.51%	.51%	.51%
Expenses net of all reductions	.50%	.50%	.51%	.51%	.51%
Net investment income (loss)	1.54%	1.46%	1.61%	1.26%	1.56%
Supplemental Data
Net assets, end of period (in millions)	$494	$412	$298	$296	$334
Portfolio turnover rate^E	93%	83%	131%	192%	222%

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

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

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

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

Notes to Financial Statements

For the period ended August 31, 2016
(Amounts in thousands except percentages)

1. Organization.

Fidelity Government Income Fund (the Fund) is a fund of Fidelity Income Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Government Income and Class I 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.

After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period March 1, 2016 through June 24, 2016.

2. Investments in Fidelity Central Funds.

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

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

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

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

An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or advisor.fidelity.com, as applicable. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.

3. Significant Accounting Policies.

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

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

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

Level 1 – quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of August 31, 2016 is included at the end of the Fund's Schedule of Investments.

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

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

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

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

Gross unrealized appreciation	$141,816
Gross unrealized depreciation	(8,624)
Net unrealized appreciation (depreciation) on securities	$133,192
Tax Cost	$4,977,560

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

Undistributed ordinary income	$8,521
Undistributed long-term capital gain	$10,475
Net unrealized appreciation (depreciation) on securities and other investments	$133,630

The tax character of distributions paid was as follows:

	August 31, 2016	August 31, 2015
Ordinary Income	$96,027	$ 61,170
Long-term Capital Gains	21,425	7,215
Total	$ 117,452	$ 68,385

Repurchase Agreements. Pursuant to an Exemptive Order issued by the SEC, the Fund along with other registered investment companies having management contracts with FMR, or other affiliated entities of FMR, are permitted to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

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

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

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

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

4. Derivative Instruments.

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

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

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

Interest Rate Risk

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

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

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

Primary Risk Exposure / Derivative Type	Net Realized Gain (Loss)	Change in Net Unrealized Appreciation (Depreciation)
Interest Rate Risk
Futures Contracts	$(1,372)	$1,133
Swaps	814	1,151
Totals	$(558)	$2,284

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

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

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

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

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

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

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

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

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

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $164,891 and $0, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged 11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .31% of the Fund's average net assets.

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

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

	Distribution Fee	Service Fee	Total Fees	Retained by FDC
Class A	-%	.25%	$604	$–
Class T	-%	.25%	477	–
Class B	.65%	.25%	30	22
Class C	.75%	.25%	782	142
			$1,893	$164

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

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

	Retained by FDC
Class A	$38
Class T	8
Class B^(a)	1
Class C^(a)	16
	$63

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

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of each respective class of the Fund, with the exception of Government Income. FIIOC receives an asset-based fee of .10% of Government Income's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

	Amount	% of Class-Level Average Net Assets
Class A	$396	.16
Class T	309	.16
Class B	8	.23
Class C	148	.19
Government Income	3,649	.10
Class I	682	.15
	$5,192

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

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

7. Committed Line of Credit.

The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is maintained at the Fund's custodian and/or invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Total security lending income during the period amounted to $162.

9. Expense Reductions.

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 $6.

In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $32.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Year ended August 31, 2016	Year ended August 31, 2015
From net investment income
Class A	$3,406	$2,625
Class T	2,723	2,118
Class B	26	28
Class C	480	195
Government Income	63,334	47,788
Class I	7,579	4,993
Total	$77,548	$57,747
From net realized gain
Class A	$2,025	$646
Class T	1,660	523
Class B	49	22
Class C	503	154
Government Income	31,846	8,467
Class I	3,821	826
Total	$39,904	$10,638

11. Share Transactions.

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

	Shares	Shares	Dollars	Dollars
	Year ended August 31, 2016	Year ended August 31, 2015	Year ended August 31, 2016	Year ended August 31, 2015
Class A
Shares sold	12,026	6,410	$126,485	$67,517
Reinvestment of distributions	498	298	5,224	3,143
Shares redeemed	(9,122)	(9,109)	(95,982)	(95,762)
Net increase (decrease)	3,402	(2,401)	$35,727	$(25,102)
Class T
Shares sold	6,849	5,058	$71,986	$53,356
Reinvestment of distributions	404	244	4,234	2,573
Shares redeemed	(6,031)	(6,808)	(63,433)	(71,811)
Net increase (decrease)	1,222	(1,506)	$12,787	$(15,882)
Class B
Shares sold	17	30	$174	$319
Reinvestment of distributions	6	4	62	40
Shares redeemed	(584)	(303)	(6,152)	(3,186)
Net increase (decrease)	(561)	(269)	$(5,916)	$(2,827)
Class C
Shares sold	5,790	2,397	$60,776	$25,389
Reinvestment of distributions	81	27	844	282
Shares redeemed	(2,223)	(2,806)	(23,431)	(29,497)
Net increase (decrease)	3,648	(382)	$38,189	$(3,826)
Government Income
Shares sold	91,465	102,857	$961,380	$1,086,736
Reinvestment of distributions	8,754	5,138	91,724	54,081
Shares redeemed	(67,217)	(77,145)	(705,341)	(811,762)
Net increase (decrease)	33,002	30,850	$347,763	$329,055
Class I
Shares sold	14,937	22,692	$157,175	$240,263
Reinvestment of distributions	1,055	536	11,077	5,652
Shares redeemed	(8,950)	(12,486)	(93,930)	(131,528)
Net increase (decrease)	7,042	10,742	$74,322	$114,387

12. Other.

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

Report of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Government Income Fund (a fund of Fidelity Income Fund) at August 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Government Income Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts
October 19, 2016

Trustees and Officers

The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jennifer Toolin McAuliffe and Mark A. Murray, each of the Trustees oversees 244 funds. Ms. McAuliffe and Mr. Murray each oversees 191 funds.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

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

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

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

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

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

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

Interested Trustees*:

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

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Abigail P. Johnson (1961)

Year of Election or Appointment: 2009

Trustee

Chairman of the Board of Trustees

Ms. Johnson also serves as Trustee of other Fidelity^® funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC (diversified financial services company), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (investment adviser firm, 2011-present), Chairman and Director of FMR (investment adviser firm, 2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc. (investment adviser firm), and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity^® funds (2001-2005), and managed a number of Fidelity^® funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.

Jennifer Toolin McAuliffe (1959)

Year of Election or Appointment: 2016

Trustee

Ms. McAuliffe also serves as Trustee or Member of the Advisory Board of other Fidelity^® funds. Ms. McAuliffe previously served as Co-Head of Fixed Income of Fidelity Investments Limited (now known as FIL Limited (FIL)) (diversified financial services company). Earlier roles at FIL included Director of Research for FIL’s credit and quantitative teams in London, Hong Kong and Tokyo. Ms. McAuliffe also was the Director of Research for taxable and municipal bonds at Fidelity Investments Money Management, Inc. Ms. McAuliffe is also a director or trustee of several not-for-profit entities.

* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.

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

Independent Trustees:

Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Elizabeth S. Acton (1951)

Year of Election or Appointment: 2013

Trustee

Ms. Acton also serves as Trustee of other Fidelity^® funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). Previously, Ms. Acton served as a Member of the Advisory Board of certain Fidelity^® funds (2013-2016).

John Engler (1948)

Year of Election or Appointment: 2014

Trustee

Mr. Engler also serves as Trustee of other Fidelity^® funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present) and K12 Inc. (technology-based education company, 2012-present). Previously, Mr. Engler served as a Member of the Advisory Board of certain Fidelity^® funds (2014-2016), a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011), member of the Board of Trustees of the Annie E. Casey Foundation (2004-2015), and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association.

Albert R. Gamper, Jr. (1942)

Year of Election or Appointment: 2006

Trustee

Mr. Gamper also serves as Trustee of other Fidelity^® funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Chairman (2012-2015) and Vice Chairman (2011-2012) of the Independent Trustees of certain Fidelity^® funds and as Chairman of the Board of Governors, Rutgers University (2004-2007).

Robert F. Gartland (1951)

Year of Election or Appointment: 2010

Trustee

Mr. Gartland also serves as Trustee of other Fidelity^® funds. Mr. Gartland is Chairman and an investor in Gartland & Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007).

Arthur E. Johnson (1947)

Year of Election or Appointment: 2008

Trustee

Vice Chairman of the Independent Trustees

Mr. Johnson also serves as Trustee of other Fidelity^® funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson.

Michael E. Kenneally (1954)

Year of Election or Appointment: 2009

Trustee

Mr. Kenneally also serves as Trustee of other Fidelity^® funds. Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991.

James H. Keyes (1940)

Year of Election or Appointment: 2007

Trustee

Mr. Keyes also serves as Trustee of other Fidelity^® funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008).

Marie L. Knowles (1946)

Year of Election or Appointment: 2001

Trustee

Chairman of the Independent Trustees

Ms. Knowles also serves as Trustee of other Fidelity^® funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company (pipeline and tanker operations). Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Santa Catalina Island Company (real estate, 2009-present). Ms. Knowles is a Member of the Investment Company Institute Board of Governors and a Member of the Governing Council of the Independent Directors Council (2014-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). Ms. Knowles previously served as Vice Chairman of the Independent Trustees of certain Fidelity^® funds (2012-2015).

Mark A. Murray (1954)

Year of Election or Appointment: 2016

Trustee

Mr. Murray also serves as Trustee or Member of the Advisory Board of other Fidelity^® funds. Mr. Murray is Vice Chairman (2013-present) of Meijer, Inc. (regional retail chain). Previously, Mr. Murray served as Co-Chief Executive Officer (2013-2016) and President (2006-2013) of Meijer, Inc. Mr. Murray serves as a member of the Board of Directors and Nuclear Review and Public Policy and Responsibility Committees of DTE Energy Company (diversified energy company, 2009-present). Mr. Murray also serves as a member of the Board of Directors of Spectrum Health (not-for-profit health system, 2015-present). Mr. Murray previously served as President of Grand Valley State University (2001-2006), Treasurer for the State of Michigan (1999-2001), Vice President of Finance and Administration for Michigan State University (1998-1999), and a member of the Board of Directors and Audit Committee and Chairman of the Nominating and Corporate Governance Committee of Universal Forest Products, Inc. (manufacturer and distributor of wood and wood-alternative products, 2004-2016). Mr. Murray is also a director or trustee of many community and professional organizations.

Advisory Board Members and Officers:

Correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Marc R. Bryant (1966)

Year of Election or Appointment: 2015

Secretary and Chief Legal Officer (CLO)

Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (U.K.) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).

Jeffrey S. Christian (1961)

Year of Election or Appointment: 2016

Assistant Treasurer

Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).

Jonathan Davis (1968)

Year of Election or Appointment: 2010

Assistant Treasurer

Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2010

Assistant Treasurer

Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.

Stephanie J. Dorsey (1969)

Year of Election or Appointment: 2013

President and Treasurer

Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.

Howard J. Galligan III (1966)

Year of Election or Appointment: 2014

Chief Financial Officer

Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).

Scott C. Goebel (1968)

Year of Election or Appointment: 2015

Vice President

Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Mr. Goebel serves as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present). Previously, Mr. Goebel served as Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity^® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).

Colm A. Hogan (1973)

Year of Election or Appointment: 2016

Assistant Treasurer

Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present).

Chris Maher (1972)

Year of Election or Appointment: 2013

Assistant Treasurer

Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).

John B. McGinty, Jr. (1962)

Year of Election or Appointment: 2016

Chief Compliance Officer

Mr. McGinty also serves as Chief Compliance Officer of other funds. Mr. McGinty is Senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2016-present). Mr. McGinty previously served as Vice President, Senior Attorney at Eaton Vance Management (investment management firm, 2015-2016), and prior to Eaton Vance as global CCO for all firm operations and registered investment companies at GMO LLC (investment management firm, 2009-2015). Before joining GMO LLC, Mr. McGinty served as Senior Vice President, Deputy General Counsel for Fidelity Investments (2007-2009).

John F. Papandrea (1972)

Year of Election or Appointment: 2016

Anti-Money Laundering (AML) Officer

Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).

Jason P. Pogorelec (1975)

Year of Election or Appointment: 2015

Assistant Secretary

Mr. Pogorelec also serves as Assistant Secretary of other funds. Mr. Pogorelec serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2006-present).

Nancy D. Prior (1967)

Year of Election or Appointment: 2014

Vice President

Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present), President (2016-present) and Director (2014-present) of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm), President, Fixed Income (2014-present), Vice Chairman of FIAM LLC (investment adviser firm, 2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond Group of Fidelity Management & Research (FMR) (investment adviser firm, 2013-2014), President, Money Market Group of FMR (2011-2013), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of certain Fidelity^® funds (2008-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Assistant Treasurer

Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity^® funds (2013-2016).

Renee Stagnone (1975)

Year of Election or Appointment: 2016

Assistant Treasurer

Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity^® funds (2013-2016).

Christine J. Thompson (1958)

Year of Election or Appointment: 2015

Vice President of Fidelity's Bond Funds

Ms. Thompson also serves as Vice President of other funds. Ms. Thompson also serves as Chief Investment Officer of FMR's Bond Group (2010-present) and is an employee of Fidelity Investments (1985-present). Previously, Ms. Thompson served as Vice President of Fidelity's Bond Funds (2010-2012).

Shareholder Expense Example

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2016 to August 31, 2016).

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Annualized Expense Ratio-^A	Beginning Account Value March 1, 2016	Ending Account Value August 31, 2016	Expenses Paid During Period-^B March 1, 2016 to August 31, 2016
Class A	.76%
Actual		$1,000.00	$1,016.90	$3.85
Hypothetical-^C		$1,000.00	$1,021.32	$3.86
Class T	.76%
Actual		$1,000.00	$1,016.90	$3.85
Hypothetical-^C		$1,000.00	$1,021.32	$3.86
Class C	1.53%
Actual		$1,000.00	$1,012.90	$7.74
Hypothetical-^C		$1,000.00	$1,017.44	$7.76
Government Income	.45%
Actual		$1,000.00	$1,019.40	$2.28
Hypothetical-^C		$1,000.00	$1,022.87	$2.29
Class I	.50%
Actual		$1,000.00	$1,018.20	$2.54
Hypothetical-^C		$1,000.00	$1,022.62	$2.54

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

^B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio. In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying non-money market Fidelity Central Funds as of their most recent fiscal half year were less than .005%.

^C 5% return per year before expenses

Distributions (Unaudited)

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

	Pay Date	Record Date	Capital Gains
Fidelity Government Income Fund
Class A	10/17/2016	10/14/2016	$0.049
Class T	10/17/2016	10/14/2016	$0.049
Class C	10/17/2016	10/14/2016	$0.049
Government Income	10/17/2016	10/14/2016	$0.049
Class I	10/17/2016	10/14/2016	$0.049

The fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2016, $13,319,006, or, if subsequently determined to be different, the net capital gain of such year.

A total of 37.54% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.

The fund designates $48,261,184 of distributions paid during the period January 1, 2016 to August 31, 2016 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.

The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.

Proxy Voting Results

A special meeting of shareholders was held on April 13, 2016. The results of votes taken among shareholders on the proposal 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 elect a Board of Trustees.
	# of Votes	% of Votes
Elizabeth S. Acton
Affirmative	23,485,695,172.82	97.873
Withheld	510,412,850.89	2.127
TOTAL	23,996,108,023.71	100.000
John Engler
Affirmative	23,396,775,263.01	97.503
Withheld	599,332,760.70	2.497
TOTAL	23,996,108,023.71	100.000
Albert R. Gamper, Jr.
Affirmative	23,408,625,557.99	97.552
Withheld	587,482,465.72	2.448
TOTAL	23,996,108,023.71	100.000
Robert F. Gartland
Affirmative	23,466,064,780.31	97.792
Withheld	530,043,243.40	2.208
TOTAL	23,996,108,023.71	100.000
Abigail P. Johnson
Affirmative	23,449,693,125.04	97.723
Withheld	546,414,898.67	2.277
TOTAL	23,996,108,023.71	100.000
Arthur E. Johnson
Affirmative	23,433,937,136.83	97.658
Withheld	562,170,886.88	2.342
TOTAL	23,996,108,023.71	100.000
Michael E. Kenneally
Affirmative	23,472,891,022.59	97.820
Withheld	523,217,001.12	2.180
TOTAL	23,996,108,023.71	100.000
James H. Keyes
Affirmative	23,409,640,697.18	97.556
Withheld	586,467,326.53	2.444
TOTAL	23,996,108,023.71	100.000
Marie L. Knowles
Affirmative	23,434,534,070.88	97.660
Withheld	561,573,952.83	2.340
TOTAL	23,996,108,023.71	100.000
Geoffrey A. von Kuhn
Affirmative	23,442,506,227.29	97.693
Withheld	553,601,796.42	2.307
TOTAL	23,996,108,023.71	100.000
Proposal 1 reflects trust wide proposal and voting results.

Fidelity Investments

AGVT-ANN-1016
1.834242.110

Fidelity® Government Income Fund

Annual Report

August 31, 2016

Contents

Performance
Management's Discussion of Fund Performance
Investment Summary
Investments
Financial Statements
Notes to Financial Statements
Report of Independent Registered Public Accounting Firm
Trustees and Officers
Shareholder Expense Example
Distributions
Proxy Voting Results

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

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

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

NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE

Neither the Fund nor Fidelity Distributors Corporation is a bank.

Performance: The Bottom Line

Average Annual Total Returns

For the periods ended August 31, 2016	Past 1 year	Past 5 years	Past 10 years
Fidelity® Government Income Fund	4.35%	2.46%	4.47%

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity® Government Income Fund, a class of the fund, on August 31, 2006.

The chart shows how the value of your investment would have changed, and also shows how the Barclays® U.S. Government Bond Index performed over the same period.

	Period Ending Values
	$15,479	Fidelity® Government Income Fund
	$15,446	Barclays® U.S. Government Bond Index

Management's Discussion of Fund Performance

Investment Summary (Unaudited)

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.

Coupon Distribution as of August 31, 2016

	% of fund's investments	% of fund's investments 6 months ago
Zero coupon bonds	0.0	0.0
0.01 - 0.99%	7.9	11.9
1 - 1.99%	26.9	27.6
2 - 2.99%	16.8	14.9
3 - 3.99%	23.2	21.6
4 - 4.99%	15.0	13.6
5 - 5.99%	8.6	9.0
6 - 6.99%	0.4	0.5
7 - 7.99%	0.1	0.0
8% and above	0.4	0.6

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

Asset Allocation (% of fund's net assets)

As of August 31, 2016^,^*
	Mortgage Securities	31.5%
	CMOs and Other Mortgage Related Securities	22.1%
	U.S. Treasury Obligations	44.9%
	U.S. Government Agency Obligations^***	3.1%
	Foreign Government & Government Agency Obligations	3.3%
	Short-Term Investments and Net Other Assets (Liabilities)^†	(4.9)%

* Foreign investments - 3.3%

** Futures and Swaps - 1.1%

*** Includes NCUA Guaranteed Notes

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

As of February 29, 2016^,^*
	Mortgage Securities	23.9%
	CMOs and Other Mortgage Related Securities	24.0%
	U.S. Treasury Obligations	46.3%
	U.S. Government Agency Obligations^***	3.2%
	Foreign Government & Government Agency Obligations	3.4%
	Short-Term Investments and Net Other Assets (Liabilities)^†	(0.8)%

* Foreign investments - 3.4%

** Futures and Swaps - 0.7%

*** Includes NCUA Guaranteed Notes

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

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

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

Investments August 31, 2016

Showing Percentage of Net Assets

U.S. Government and Government Agency Obligations - 48.0%
	Principal Amount (000s)	Value (000s)
U.S. Government Agency Obligations - 1.4%
Fannie Mae:
0.875% 8/2/19	$131	$130
1% 2/26/19	326	326
1.125% 12/14/18	240	241
Small Business Administration guaranteed development participation certificates:
Series 2002-20J Class 1, 4.75% 10/1/22	948	996
Series 2002-20K Class 1, 5.08% 11/1/22	1,368	1,461
Series 2004-20H Class 1, 5.17% 8/1/24	592	641
Tennessee Valley Authority:
1.75% 10/15/18	23,006	23,380
4.25% 9/15/65	25,633	31,132
5.25% 9/15/39	2,807	3,957
5.375% 4/1/56	3,438	4,953
		67,217
U.S. Treasury Obligations - 44.9%
U.S. Treasury Bonds:
2.25% 8/15/46	9,071	9,103
2.5% 2/15/46	18,500	19,542
2.5% 5/15/46	21,500	22,751
2.875% 8/15/45	119,495	135,879
3% 11/15/44	29,032	33,791
3% 11/15/45	40,000	46,602
3.625% 2/15/44	45,031	58,503
4.375% 2/15/38	78,154	110,893
4.375% 5/15/40	4,000	5,690
5% 5/15/37 (a)(b)	41,142	62,708
U.S. Treasury Notes:
0.75% 2/28/18	4,631	4,629
0.75% 4/30/18	18,000	17,986
0.75% 7/31/18	21,000	20,975
0.75% 8/31/18	85,000	84,894
0.75% 7/15/19	15,000	14,927
0.75% 8/15/19	64,855	64,523
0.875% 7/15/18	228	228
0.875% 6/15/19	50,303	50,240
1% 5/31/18	34,635	34,747
1.125% 1/15/19	25,562	25,710
1.125% 7/31/21(c)	45,586	45,403
1.125% 8/31/21	30,000	29,895
1.25% 11/30/18	15,000	15,131
1.375% 7/31/18	14,780	14,935
1.375% 9/30/18	17,526	17,718
1.375% 2/28/19	69,770	70,620
1.375% 3/31/20	144,474	146,102
1.375% 4/30/20	4,172	4,219
1.375% 8/31/20	5,000	5,049
1.375% 1/31/21	27,500	27,731
1.375% 4/30/21	20,000	20,159
1.375% 5/31/21	20,000	20,166
1.375% 8/31/23	57,341	57,043
1.5% 12/31/18	10,768	10,924
1.5% 1/31/19	6,408	6,503
1.5% 10/31/19	5,655	5,746
1.5% 1/31/22	54,399	54,990
1.5% 2/28/23	58,062	58,375
1.5% 3/31/23	30,000	30,145
1.5% 8/15/26	15,000	14,890
1.625% 4/30/19	11,603	11,824
1.625% 6/30/19	51,223	52,229
1.625% 12/31/19	41,368	42,197
1.625% 6/30/20	4,710	4,803
1.625% 7/31/20	30,000	30,593
1.625% 2/15/26	15,000	15,047
1.625% 5/15/26	26,000	26,075
1.75% 9/30/19	58,087	59,473
1.75% 10/31/20	18,000	18,435
1.75% 12/31/20	119,701	122,633
1.75% 2/28/22	5,000	5,118
2% 9/30/20	107,107	110,760
2% 7/31/22	18,845	19,541
2% 11/30/22	61,423	63,664
2% 8/15/25	65,444	67,783
2.125% 6/30/21	22,000	22,938
2.125% 12/31/21	2,000	2,087
2.25% 7/31/21	26,021	27,289
2.25% 11/15/25	34,249	36,210
		2,218,764
Other Government Related - 1.7%
National Credit Union Administration Guaranteed Notes:
Series 2010-A1 Class A, 1.0146% 12/7/20 (NCUA Guaranteed) (d)	3,648	3,638
Series 2011-R4 Class 1A, 0.8739% 3/6/20 (NCUA Guaranteed) (d)	1,835	1,834
National Credit Union Administration Guaranteed Notes Master Trust 3.45% 6/12/21 (NCUA Guaranteed)	74,000	80,580
		86,052
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS		��
(Cost $2,273,912)		2,372,033

U.S. Government Agency - Mortgage Securities - 6.3%
Fannie Mae - 4.8%
2.272% 7/1/35 (d)	60	62
2.276% 2/1/33 (d)	67	69
2.29% 11/1/33 (d)	82	86
2.298% 3/1/35 (d)	78	81
2.32% 12/1/34 (d)	180	186
2.35% 10/1/33 (d)	118	122
2.413% 10/1/33 (d)	54	56
2.453% 2/1/44 (d)	568	587
2.502% 4/1/44 (d)	890	919
2.523% 2/1/44 (d)	520	537
2.54% 6/1/42 (d)	309	322
2.551% 1/1/44 (d)	913	943
2.557% 10/1/33 (d)	112	118
2.574% 7/1/34 (d)	103	107
2.582% 3/1/36 (d)	413	431
2.6% 5/1/44 (d)	997	1,030
2.626% 5/1/44 (d)	1,520	1,579
2.627% 3/1/40 (d)	1,663	1,753
2.662% 7/1/35 (d)	202	213
2.678% 4/1/44 (d)	2,144	2,217
2.69% 3/1/37 (d)	115	120
2.693% 2/1/42 (d)	1,884	1,968
2.715% 2/1/36 (d)	48	51
2.751% 1/1/42 (d)	1,561	1,627
2.801% 11/1/36 (d)	84	88
2.803% 6/1/36 (d)	159	166
2.833% 3/1/35 (d)	79	83
2.951% 11/1/40 (d)	170	179
2.98% 9/1/41 (d)	203	212
2.991% 10/1/41 (d)	98	103
3% 6/1/45 to 11/1/45	2,870	2,980
3% 9/1/46 (e)	4,500	4,666
3% 9/1/46 (e)	3,770	3,909
3% 9/1/46 (e)	8,800	9,125
3% 10/1/46 (e)	4,500	4,657
3% 10/1/46 (e)	8,800	9,107
3% 10/1/46 (e)	3,770	3,902
3.007% 5/1/36 (d)	115	122
3.229% 7/1/41 (d)	302	318
3.352% 10/1/41 (d)	159	167
3.5% 9/1/46 (e)	92,000	96,923
3.557% 7/1/41 (d)	389	409
4% 5/1/29 to 2/1/42	61,992	66,267
4.5% 7/1/33 to 4/1/39	3,978	4,393
5% 7/1/35	8,326	9,288
5.5% 1/1/29	1,751	1,968
6.5% 2/1/17 to 5/1/27	313	358
9.5% 10/1/20	9	10
11.5% 1/15/21	1	1
		234,585
Freddie Mac - 0.6%
2.32% 3/1/35 (d)	294	303
2.582% 5/1/37 (d)	220	229
2.71% 2/1/36 (d)	22	24
2.823% 10/1/42 (d)	1,329	1,405
2.916% 3/1/33 (d)	7	8
2.975% 10/1/41 (d)	2,685	2,824
2.99% 6/1/35 (d)	168	177
3% 2/1/31 to 2/1/43	15,769	16,568
3.067% 7/1/35 (d)	866	922
3.068% 9/1/41 (d)	1,824	1,909
3.193% 9/1/41 (d)	222	233
3.231% 4/1/41 (d)	228	238
3.286% 6/1/41 (d)	236	248
3.295% 7/1/36 (d)	309	329
3.417% 5/1/41 (d)	183	192
3.581% 10/1/35 (d)	153	164
3.627% 6/1/41 (d)	339	356
3.704% 5/1/41 (d)	299	315
4.5% 5/1/39 to 10/1/41	3,344	3,706
5.5% 7/1/29	36	41
6% 1/1/24	1,308	1,436
9.5% 6/1/18 to 8/1/21	11	12
		31,639
Ginnie Mae - 0.9%
4.3% 8/20/61 (f)	4,073	4,216
4.649% 2/20/62 (f)	2,912	3,065
4.682% 2/20/62 (f)	3,867	4,053
4.684% 1/20/62 (f)	22,772	23,853
5.47% 8/20/59 (f)	677	688
5.5% 11/15/35	2,107	2,427
5.612% 4/20/58 (f)	66	66
6% 6/15/36	4,656	5,411
		43,779
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES
(Cost $308,096)		310,003

Collateralized Mortgage Obligations - 15.8%
U.S. Government Agency - 15.8%
Fannie Mae:
floater:
Series 2001-38 Class QF, 1.5044% 8/25/31 (d)	111	113
Series 2002-49 Class FB, 1.1074% 11/18/31 (d)	99	99
Series 2002-60 Class FV, 1.5244% 4/25/32 (d)	43	43
Series 2002-75 Class FA, 1.5244% 11/25/32 (d)	87	89
Series 2010-15 Class FJ, 1.4544% 6/25/36 (d)	6,636	6,719
planned amortization class:
Series 2005-19 Class PA, 5.5% 7/25/34	1,951	2,078
Series 2005-27 Class NE, 5.5% 5/25/34	1,067	1,087
Series 2005-64 Class PX, 5.5% 6/25/35	2,034	2,232
Series 2005-68 Class CZ, 5.5% 8/25/35	4,837	5,460
Series 2006-45 Class OP, 6/25/36(g)	917	834
Series 2010-118 Class PB, 4.5% 10/25/40	7,053	7,704
sequential payer:
Series 2003-117 Class MD, 5% 12/25/23	1,046	1,130
Series 2004-91 Class Z, 5% 12/25/34	6,450	7,182
Series 2005-117 Class JN, 4.5% 1/25/36	645	692
Series 2005-14 Class ZB, 5% 3/25/35	1,947	2,169
Series 2006-72 Class CY, 6% 8/25/26	4,030	4,423
Series 2009-59 Class HB, 5% 8/25/39	2,729	3,038
Series 2010-97 Class CX, 4.5% 9/25/25	10,927	12,057
Series 2009-85 Class IB, 4.5% 8/25/24 (h)	379	25
Series 2009-93 Class IC, 4.5% 9/25/24 (h)	567	36
Series 2010-139 Class NI, 4.5% 2/25/40 (h)	4,497	566
Series 2010-39 Class FG, 1.4444% 3/25/36 (d)	4,088	4,164
Series 2010-97 Class CI, 4.5% 8/25/25 (h)	1,282	71
Series 2012-27 Class EZ, 4.25% 3/25/42	7,913	8,684
Series 2016-26 Class CG, 3% 5/25/46	26,470	27,563
Freddie Mac:
floater:
Series 2530 Class FE, 1.1077% 2/15/32 (d)	57	58
Series 2630 Class FL, 1.0077% 6/15/18 (d)	28	28
Series 2682 Class FB, 1.4077% 10/15/33 (d)	3,710	3,756
Series 2711 Class FC, 1.4077% 2/15/33 (d)	2,047	2,072
planned amortization class:
Series 1141 Class G, 9% 9/15/21	43	48
Series 2356 Class GD, 6% 9/15/16	0	0
Series 2376 Class JE, 5.5% 11/15/16	11	11
Series 2381 Class OG, 5.5% 11/15/16	1	1
Series 2682 Class LD, 4.5% 10/15/33	777	840
Series 3415 Class PC, 5% 12/15/37	611	666
Series 3763 Class QA, 4% 4/15/34	1,497	1,523
Series 3840 Class VA, 4.5% 9/15/27	4,162	4,388
planned amortization class sequential payer Series 2005-2963 Class VB, 5% 11/15/34	575	577
sequential payer:
Series 2004-2802 Class ZG, 5.5% 5/15/34	8,822	10,022
Series 2587 Class AD, 4.71% 3/15/33	3,856	4,124
Series 2773 Class HC, 4.5% 4/15/19	328	336
Series 2877 Class ZD, 5% 10/15/34	7,766	8,633
Series 3007 Class EW, 5.5% 7/15/25	6,242	6,816
Series 3745 Class KV, 4.5% 12/15/26	6,824	7,449
Series 3806 Class L, 3.5% 2/15/26	8,900	9,705
Series 3871 Class KB, 5.5% 6/15/41	13,870	15,607
Series 3889 Class DZ, 4% 1/15/41	33,433	37,090
Series 3843 Class PZ, 5% 4/15/41	2,434	3,026
Freddie Mac Multi-family Structured pass-thru certificates sequential payer:
Series 4335 Class AL, 4.25% 3/15/40	9,042	9,662
Series 4341 Class ML, 3.5% 11/15/31	12,563	13,285
Ginnie Mae guaranteed REMIC pass-thru certificates:
floater:
Series 2008-2 Class FD, 0.9924% 1/20/38 (d)	298	299
Series 2008-73 Class FA, 1.3724% 8/20/38 (d)	2,234	2,270
Series 2008-83 Class FB, 1.4124% 9/20/38 (d)	2,044	2,080
Series 2009-108 Class CF, 1.1067% 11/16/39 (d)	1,300	1,309
Series 2011-H20 Class FA, 1.0176% 9/20/61 (d)(f)	9,520	9,501
Series 2011-H21 Class FA, 1.0676% 10/20/61 (d)(f)	6,439	6,438
Series 2012-H01 Class FA, 1.1676% 11/20/61 (d)(f)	5,530	5,550
Series 2012-H03 Class FA, 1.1676% 1/20/62 (d)(f)	3,435	3,447
Series 2012-H06 Class FA, 1.0976% 1/20/62 (d)(f)	5,299	5,304
Series 2012-H07 Class FA, 1.0976% 3/20/62 (d)(f)	3,119	3,122
Series 2013-H19:
Class FC, 1.0676% 8/20/63 (d)(f)	1,176	1,176
Class FD, 1.0676% 8/20/63 (d)(f)	3,100	3,099
Series 2014-H02 Class FB, 1.1176% 12/20/63 (d)(f)	38,399	38,476
Series 2014-H03 Class FA, 1.0676% 1/20/64 (d)(f)	15,346	15,344
Series 2015-H07 Class FA, 0.3% 3/20/65 (d)(f)	21,864	21,784
Series 2015-H13 Class FL, 0.7476% 5/20/63 (d)(f)	28,397	28,293
Series 2015-H19 Class FA, 0.6676% 4/20/63 (d)(f)	27,411	27,282
floater sequential payer Series 2011-150 Class D, 3% 4/20/37	21	21
planned amortization class Series 2010-31 Class BP, 5% 3/20/40	11,191	12,953
sequential payer:
Series 2011-69 Class GX, 4.5% 5/16/40	10,205	11,326
Series 2013-H06 Class HA, 1.65% 1/20/63 (f)	5,989	5,975
Series 2013-H26 Class HA, 3.5% 9/20/63 (f)	48,661	50,553
Series 2014-H12 Class KA, 2.75% 5/20/64 (f)	6,268	6,441
Series 2016-H02 Class FM, 0.9676% 9/20/62 (d)(f)	23,955	23,946
Series 2016-H04 Class FE, 1.1176% 11/20/65 (d)(f)	6,909	6,921
Series 2010-H15 Class TP, 5.15% 8/20/60 (f)	16,467	17,321
Series 2010-H17 Class XP, 5.2989% 7/20/60 (d)(f)	20,210	21,200
Series 2010-H18 Class PL, 5.01% 9/20/60 (d)(f)	15,200	15,959
Series 2011-71 Class ZB, 5.5% 8/20/34	13,279	15,069
Series 2012-64 Class KB, 14.4687% 5/20/41 (d)	247	329
Series 2013-124:
Class ES, 7.9834% 4/20/39 (d)(i)	6,202	6,665
Class ST, 8.1168% 8/20/39 (d)(i)	11,908	13,092
Series 2015-H17 Class HA, 2.5% 5/20/65 (f)	16,172	16,398
Series 2015-H21:
Class HA, 2.5% 6/20/63 (f)	50,497	51,042
Class JA, 2.5% 6/20/65 (f)	6,032	6,100
Series 2015-H30 Class HA, 1.75% 9/20/62 (d)(f)	45,866	45,764
Series 2016-H13 Class FB, 1.18% 5/20/66 (d)(f)	27,355	27,332
Series 2090-118 Class XZ, 5% 12/20/39	13,406	16,309
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $780,920)		783,471

Commercial Mortgage Securities - 4.2%
Freddie Mac:
pass-thru certificates sequential payer Series K011 Class A2, 4.084% 11/25/20	3,740	4,098
sequential payer:
Series K027 Class A2, 2.637% 1/25/23	6,437	6,764
Series K029 Class A2, 3.32% 2/25/23 (d)	3,110	3,398
Series K034 Class A1, 2.669% 2/25/23	13,736	14,104
Series K037 Class A2, 3.49% 1/25/24	11,281	12,492
Series K710 Class A2, 1.883% 5/25/19	8,456	8,572
Series K717 Class A2, 2.991% 9/25/21	4,531	4,818
Series K032 Class A1, 3.016% 2/25/23	23,173	24,241
Series K039 Class A2, 3.303% 7/25/24	24,645	27,028
Series K042 Class A2, 2.67% 12/25/24	22,200	23,360
Series K501 Class A2, 1.655% 11/25/16	2,944	2,944
2.313% 3/25/20	5,437	5,601
Freddie Mac Multi-family Structured pass-thru certificates:
sequential payer Series K038 Class A2, 3.389% 3/25/24	7,000	7,709
Series K044 Class A2, 2.811% 1/25/25	58,600	62,266
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $201,013)		207,395

Foreign Government and Government Agency Obligations - 3.3%
Israeli State:
(guaranteed by U.S. Government through Agency for International Development):
5.5% 9/18/23	72,266	90,054
5.5% 12/4/23	48	60
5.5% 4/26/24	6,065	7,658
Jordanian Kingdom:
2.503% 10/30/20	41,050	42,991
3% 6/30/25	19,267	21,114
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $142,762)		161,877
	Shares	Value (000s)

Fixed-Income Funds - 24.8%
Fidelity Mortgage Backed Securities Central Fund (j)
(Cost $1,160,952)	11,060,897	1,224,994

Money Market Funds - 0.1%
Fidelity Cash Central Fund, 0.42% (k)
(Cost $6,187)	6,187,275	6,187
	Maturity Amount (000s)	Value (000s)

Cash Equivalents - 0.9%
Investments in repurchase agreements in a joint trading account at 0.5%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Government Obligations) # (l)
(Cost $44,792)	44,793	44,792
TOTAL INVESTMENT PORTFOLIO - 103.4%
(Cost $4,918,634)		5,110,752
NET OTHER ASSETS (LIABILITIES) - (3.4)%		(169,418)
NET ASSETS - 100%		$4,941,334

TBA Sale Commitments
	Principal Amount (000s)	Value (000s)
Fannie Mae
3% 9/1/46	$(4,500)	$(4,666)
3% 9/1/46	(8,800)	(9,126)
3% 9/1/46	(3,770)	(3,909)
3.5% 9/1/46	(70,200)	(73,957)
TOTAL TBA SALE COMMITMENTS
(Proceeds $91,690)		$(91,658)

Futures Contracts
	Expiration Date	Underlying Face Amount at Value (000s)	Unrealized Appreciation/(Depreciation) (000s)
Purchased
Treasury Contracts
57 CBOT 2-Year U.S. Treasury Note Contracts (United States)	Dec. 2016	12,444	$(12)

The face value of futures purchased as a percentage of Net Assets is 0.3%

Swaps

Clearinghouse/Counterparty(1)	Expiration Date	Notional Amount (000s)(1)	Payment Received	Payment Paid	Value (000s)	Upfront Premium Received/(Paid) (000s)(2)	Unrealized Appreciation/(Depreciation) (000s)
Interest Rate Swaps
CME	Sep. 2026	USD 23,200	2.25%	3-month LIBOR	$364	$0	$364
CME	Sep. 2046	1,120	2.75%	3-month LIBOR	101	0	101

TOTAL INTEREST RATE SWAPS					$465	$0	$465